At a time when a national debate is raging about the best way to increase the wagers of low income, relatively unskilled workers, a study done by Texas A&M Kingsville shows that one sure fire way to increase wages is to encourage economic development, Newsradio 1200 WOAI reports. Thomas Krueger, a professor of finance at TAMK, says since the fracking boom began in 2010, the wages paid to individuals in the Eagle Ford region of south Texas have gone up between 3 and 20 percent a year, well ahead of the national inflation rate of roughly 2 percent. “The annualized average wage increase from 2010 to 2014 was five percent,” Krueger said. This means that wage increases in the Eagle Ford have more than doubled the national average over that time. And Krueger says the increases are by no means limited to ‘the one percent,’ the top people at the oil and drilling companies. Nor is it limited to individuals who are employed in the oil fields at all. “Take somebody like a beautician, or a person who cuts hair, that person has seen a significant rise.”
via Eagle Ford Prosperity Helping Raise All Wages | News Radio 1200 WOAI.
Tom Banks isn’t interested in chasing work in the Marcellus shale.Instead, he wants the business that Marcellus pipeline contractors have left behind.“We’re really good at what we do in the city,” said Banks, owner of Banks Gas Services, a gas line contractor in North Versailles. “I don’t want to leave our strengths to go into the Marcellus.”The past five years have brought constant expansion for Banks. His company, which has grown from about 10 employees in 2008 to more than 50, works with utilities such as Columbia Gas and Peoples to upgrade the gas distribution lines running through neighborhood streets.
via Banks Gas Services finds success in jobs outside shale industry | TribLIVE.
In March 2013, Saudi Arabia’s Petroleum and Mineral Resources Minister Ali Al-Naimi announced plans to drill seven test wells to extract shale gas as part of a program to develop the Kingdom’s unconventional Oil and Gas reserves. While the US Unconventional Oil & Gas boom has made “Unconventional” a buzzword among energy and business analysts over the last few years, the move to develop this unconventional resource in a country renowned for its conventional oil and gas reserves can seem like a curious contrast. But on further analysis, the development of a national shale gas network can be seen as a strategic move for the Saudi government to drive the economic growth of the country and secure future employment and revenue streams.While shale gas has gained prominence with the general public due to the development of reserves in the US, few understand what the development of this resource actually entails. Essentially, pockets of natural gas trapped in dense, impermeable sedimentary rock, shale gas production is a complex business involving intense seismological study, complex extraction systems and multifaceted distribution infrastructures. Similar to nuclear and renewable energy, the development of shale gas will depend not only on the availability of resources, but also on supportive fiscal measures and skilled talent. There is good news for Saudi Arabia in this respect. Minister Ali Al-Naimi has forecast 600 trillion cubic feet tcf of shale reserves in the Kingdom, equivalent to over 100 million barrels of oil. Saudi Arabia’s shale reserves exceed that of Mexico 545 tcf, Australia 437 tcf and Russia 287 tcf. Saudi Arabia has identified substantial shale gas formations in the northwest of the country, the South Ghawar the world’s largest conventional oil field and the Rub’al-Khali. A recent report by Accenture International development of unconventional resources: If, where and how fast stated that the development of the unconventional energy infrastructure in Saudi Arabia will enable it to meet its domestic gas needs and increase oil exports.
via Saudi shale boom to shift energy narrative | Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more..
US states that embraced hydraulic fracturing and horizontal drilling staged stronger economic recoveries than those that did not since 2008 when the country plunged into recession, an economist told a House Energy and Commerce subcommittee.”In those states that have chosen to pursue energy development, output and jobs have grown faster than in most other states, while their unemployment rates are well below the US average of 6.1%,” Bernard L. Weinstein, associate director of the Maguire Energy Institute at Southern Methodist University’s Cox School of Business in Dallas, said to the committee’s Energy and Power Subcommittee on July 24.Texas, which aggressively developed its tight oil and gas formations, witnessed a 100% increase in its crude production since 2010 and has the lowest unemployment rate, 5.1%, of any large state, Weinstein said in written testimony for the subcommittee’s hearing on state energy policies’ economic impacts.”By contrast, New York, whose southern tier sits atop one of the ‘sweet spots’ of the Marcellus shale, has imposed a ban on hydraulic fracturing with the result that oil and gas production has plummeted in recent years, while the state’s unemployment rate is currently at 6.7%, with some upstate counties as high as 7.5%,” Weinstein said.Communities in Montana and North Dakota saw jobs rise dramatically in sectors beyond oil and gas as the Bakken shale was developed, another witness testified. “The streets of Sidney and Williston are crowded with petroleum engineers, drilling managers, environmental specialists, and other natural resource workers,” said Paul Potzin, director emeritus at the University of Montana’s Bureau of Business and Economic Research in Missoula. “But these high-paying specialties are not the only ones to benefit from the boom. Almost all sectors of the local economies are experiencing greater-than-expected growth in employment opportunities and wages.”
via States with fracing are economically stronger, House panel told – Oil & Gas Journal.
The economic impact of increased U.S. oil and gas output has spread beyond states hosting shale reserve areas, the vice chairman of consultant group IHS said.Members of the U.S. Senate’s Joint Economic Committee heard testimony Tuesday about the economic impact of the increase in U.S. oil and natural gas production from shale reserve areas like the Bakken play in North Dakota and the Eagle Ford shale area in Texas.North Dakota’s economy has grown in parallel with the increase in oil. Daniel Yergin, vice chairman of IHS, told Senate leaders the impacts are spreading beyond shale states.”When it comes to unconventional activity, a state does not need to have a major unconventional play within its geographic boundaries to benefit economically from the activity,” he testified.
via Shale economic gains spreading, analyst says – UPI.com.
The president of Lackawanna College pitched the school’s successful program to train workers for gas field jobs as a possible national model to members of Congress.College President Mark Volk appeared Tuesday before a subcommittee on Energy and Mineral Resources which took testimony regarding “American Energy Jobs: Opportunities for Education.”Mr. Volk offered an overview of the School of Petroleum & Natural Gas in New Milford in 2009, the beginning of the Marcellus Shale boom.“What we have successfully built in Susquehanna County should serve a model for how educational institutions can, through innovation and collaboration with the industry, respond to the needs of a changing economic landscape and create entirely new job prospects for students,” he said.Mr. Volk gave an overview of how school officials created the program, describing how they visited schools throughout the country with similar programs, collaborated with gas industry companies and hired instructors from the industry.Students gain practical experience in the field through internships and work, and nearly 100 percent of graduates get jobs in the industry, he said.
via Lackawanna College President Volk touts college's drilling programs – Business – The Times-Tribune.
Fracking – the pumping of liquid and sand into the ground to squeeze oil from rocks – is opposed by environmentalists worried about pollution. But it’s driven a boom in jobs and wages. Oil and gas workers earned an average 11% more an hour in April than they did a year ago, according to the Bureau of Labor Statistics. That’s more than five times the average gain across all industries.
via Pay raises going mostly to select industries | Pensacola News Journal | pnj.com.
The active shale plays across Texas are increasing the demand for essentials and supplies, adding to the already immense demand for additional truck drivers.”There is a severe shortage of truck drivers, which will only continue to compound as the shale plays continue, the driving work force ages and regulatory pressures increase. The market for experienced, qualified drivers is exceptionally tight,” said John D. Esparza, president and CEO, Texas Trucking Association.One of the fastest-growing sectors for the trucking industry right now is energy production.”While the demand is high in Texas, freight is also increasing across the country as well as the demand in shale plays outside of the state,” Esparza said.At the moment, there is a need for more than 30,000 drivers in the trucking industry, nationwide. Yet, speaking with trucking companies across the Lone Star State, they say they could use that many right here in Texas.”As the industry starts to haul more because demand goes up, we’ll need to add more drivers, nearly 100,000 annually over the next decade, in order to keep pace,” said Bob Costello, chief economist and vice president, American Trucking Association.
via Trucking industry on a roll with hiring, jobs – Houston Chronicle.
With the oil and gas boom in the area — and no real formal training offered to prepare workers for the industry — a new school, the Utica Shale Academy, will give students the tools they need to enter the workforce.There students learn the growing industry and founders hope it will keep young graduates in the area. Open to any student in grades 9-12 in the state of Ohio, the academy serves a vocational school role.Students will graduate with one of two certificates — a rig pass or a safety certificate in well management. Once completed, they will be able to step directly on the well pad and begin working.
via Oil and gas training school accepting applications – WTOV Steubenville-Wheeling – Top Stories.
For John LaRue, sand was the harbinger of the change. Several years ago, LaRue, the Port of Corpus Christi’s executive director, began seeing the smooth quartz grains arriving in bulk from Wisconsin and Minnesota. It’s used in fracking, one of the materials injected into shale-rock formations to free oil and natural gas and coax it topside.
None of that fracking is happening in this industrial port city down the Gulf Coast from Houston. Instead, Corpus Christi is the waypoint for the sand that’s trucked inland to the surging Eagle Ford Shale formation.
The inland energy boom is sending more than sand through the nation’s fifth-largest port. On a recent May morning, not far from from an airline-hangar-sized building filled with fracking sand, long rows of steel drilling pipe from Korea awaited shipment to Eagle Ford sites.
But what’s now coming from the Eagle Ford back into and through Corpus Christi is transforming the region even more. The trickle of crude oil flowing from the port has turned to a flood: Between 2010 and 2011, the port went from exporting 274,000 barrels to more than 2 million. Last year, the number of crude barrels headed outbound to other parts of the U.S. was 122.5 million and the port has expanded its docks to handle it all.
via A Fracking Boom Where There Is No Fracking – NationalJournal.com.