Background Reports & Initiatives

Transcription

1 Emerging Issues

2 Background Reports & Initiatives Appalachian Coal Industry, Power Generation, and Supply Chain - ARC Prospects to Enhance Pennsylvania s Opportunities in Petrochemical Manufacturing Team PA Foundation, PA DCED ARC Power Grant/Next Generation Sector Partnerships

3 Appalachian Coal Industry, Power Generation, and Supply Chain asp?report_id=121

4 U.S. Coal Mining Production and Consumption 1949 to 2014 Source: Energy Information Administration (EIA), Monthly Energy Review Source: Energy Information Administration (EIA), Monthly Energy Review

5 Coal Mining Production 1985 to 2015 (millions of short tons) Source: Energy Information Administration (EIA), Monthly Production Source: Energy Information Administration (EIA), Monthly Production

6 Coal Production in Appalachia by State, 2000 and 2015 Source: U.S. Department of Labor, Mine Safety and Health Administration (MSHA)

7 Coal Mining Production by County in Appalachia 2015 (thousands of short tons)

8 Coal Mining Jobs by State in Appalachia, 2000 and 2015 Source: U.S. Department of Labor, Mine Safety and Health Administration (MSHA)

9 Coal Mining Job Growth/Loss 2000 to 2015 Of the 26,432 coal mining jobs lost in the U.S. from 2011 to 2015, 87.2 percent of them were in Appalachia, a loss of 23,058 direct jobs in mining in the Region Source: U.S. Department of Labor, Mine Safety and Health Administration (MSHA)

10 Coal Mining Employment by County (2015) and Change (2011 to 2015)

11 Coal Mining Industry Concentration (Location Quotient) by County, 2014

12 U.S. Energy Generation by Source, History and Projections 2000 to 2040 Source: Energy Information Administration (EIA)

13 Generating Capacity of Retirements of Coal- Fueled Electricity Plants by State, percent of the net summer generating capacity that power companies retired or plan to retire from 2012 through 2025 is located in four states OH (14%), PA (11%), KY (7%), and WV (6%). Source: GAO Analysis of SNL Financial Data; Map Resources (Map); GAO

14 Coal Share of All Rail Movements by Value and Tons (2012) Source: Federal Highway Administration (FHWA), Freight Analysis Framework (FAF)

15 Prospects to Enhance Pennsylvania s Opportunities in Petrochemical Manufacturing

16 MARCELLUS SHALE EXPLORATION & PRODUCTION ~10,000 wells drilled 1 6

17 $12 BILLION PIPELINE BUILDOUT Northeast Energy Direct (New England Markets) Constitution (New England Markets) Line N West Side Expansion (East Coast Markets) Sunbury (East Coast Markets) Atlantic Sunrise (Southern and East Coast Markets) Leidy Southeast (East Coast Markets) PennEast (East Coast Markets) Mariner East II (Marcus Hook, Delaware County) 1 7

18 INFRASTRUCTURE ACTIVITY AROUND NGL SUPPLY Source: IHS Markit 1 8

19 WHERE ARE THE NGLs GOING? Utopia Mariner West Mariner East Appalachian-Texas (ATEX) 1 9

20 CATALYST: SHELL S BEAVER COUNTY SITE What Next? $6 Billion 6,000 construction jobs 600 permanent jobs 6

21 UNDERSTAND THE MARKET & OPPORTUNITIES Pennsylvania s Competitiveness in Petrochemical Manufacturing 1) Evaluate the supply of NGLs* in the Marcellus and Utica basins 2) Evaluate the viability of additional NGL cracker investments 3) Identify and recommend other proposed downstream uses 4) Recommend actions to support economic development strategy 21

22 ETHANE AVAILABILITY 22

23 COST ADVANTAGE 23

24 GLOBAL COMPETITIVENESS Pennsylvania will out-compete most of the world on HDPE MIDWEST EAST COAST WESTERN EUROPE EASTERN CHINA 24

25 DEMAND 25

26 PLASTICS IN NORTH AMERICA 26

27 PLASTICS IN PA 27

28 SITES 28

29 THREATS Other markets want our ethane. Pennsylvania is currently exporting 100% of our ethane. As additional production occurs, we must be ready or it will simply be exported out of the state Utopia Mariner West Mariner East Appalachian-Texas (ATEX) 29

30 THE VALUE CHAIN There is greater economic development impact to the Commonwealth to manufacture and process NGLs right here in Pennsylvania. 30

31 ARC POWER PROJECT Economic Gardening Freight & Logistics More discussion between the Freight and Logistics and the Economic Development Community Great Opportunity

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33 PENNSYLVANIA NEXT GENERATION SECTOR PARTNERSHIPS Next Generation Sector Partnerships are partnerships of businesses, from the same industry and in a shared labor market region, who work with education, workforce development, economic development and community organizations to address competitiveness needs of the targeted industry.

34 Next Gen Sector Partnerships An action-orientated forum to come together with other businesses in your industry to tackle issues that you all care about and impact your bottom line. A business-driven agenda means that as business leaders you determine the priorities and lead your partnership forward. Priorities that other partnerships have addressed include workforce, marketing, infrastructure, supply chain coordination, and others. A common table to partner with public partners from workforce development, economic development, and education. Public partners want to work with you at one table and reduce the multiple asks they have of business leaders.

35 Next Generation Sector Partnership Co-Conveners Freight & Logistics The Southwestern Pennsylvania Commission Southwest Corner Workforce Investment Board Pennsylvania Department of Community and Economic Development Pennsylvania Department of Labor and Industry Team PA Foundation

36 Lew Villotti, Director of Planning and Development ext. 302