API: Obama's Jobs Plan a 'Missed Opportunity'

- API: Obama's Jobs Plan a 'Missed Opportunity'

Friday, September 09, 2011
American Petroleum Institute

API President and CEO Jack Gerard called the president's jobs plan a 'missed opportunity' and said the oil and natural gas industry could create more than a million new jobs for Americans and more revenue for our government with a few sensible changes in national energy policy.

"The president missed an opportunity to pick the low hanging fruit of job creation," said Gerard. "Allowing the responsible development of more of America's vast domestic oil and natural gas resources could generate more than one million new jobs in just seven years, with thousands of shovel-ready jobs that could be created almost immediately."

Gerard cited a study released this week by Wood Mackenzie (PDF file), sponsored by API, that shows the oil and natural gas industry can create 1.4 million additional jobs and more than $800 billion in additional government revenue by 2030.

"Raising taxes on an industry that already contributes more than $86 million every day to the federal government takes us in the wrong direction," Gerard said. "It could put American jobs at risk, decrease oil and natural gas production, harm millions of retirees who rely on income from energy companies, and actually reduce revenue to the government over time."

The oil and natural gas industry actually created jobs in August, a month when there were zero net jobs created in the overall economy, according to the Bureau of Labor Statistics.

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Editorial: A Jobs Plan that Really Works

- Editorial: A Jobs Plan that Really Works

Friday, September 09, 2011
Louisiana Oil & Gas Association

Last night, President Obama addressed a joint session of Congress to discuss his plan to generate jobs, instill some sense of confidence in the market, and give a greatly needed jolt to the U.S. economy. What was meant to be the "speech of all speeches" turned out to be politically charged campaign rhetoric designed to place the deteriorating economic situation on a do-nothing Congress.

For the first time, the President acknowledged the fact that our nation's economy has stalled. And in an effort to get it going again, President Obama will propose his "American Jobs Act" as the solution to our stagnant economy.

From what was relayed in his speech, the "American Jobs Act" calls for approximately $450 billion to be spent over the next year on a number of initiatives that include infrastructure projects, tax credits for employee raises, an extension of jobless insurance, and money for the hiring of teachers nationwide.

First, let's discuss the positives. To the President's credit, he showed a willingness to work side by side with American businesses and acknowledged that there are many over-burdensome regulations that hinder business growth. His jobs plan calls for tax credits for business owners that hire unemployed workers and a 50% payroll tax cut for small businesses. These are certainly positive solutions that will support our business community and stimulate the economy.

Now, let's talk about the bad news. What was missing from the speech was an explanation as to how he will find the money to pay for these initiatives. How do we generate nearly one-and-a-half trillion dollars at the same time the Congressional "Super Committee" searches for over $1.5 trillion in cuts? Have we forgotten that our nation is bankrupt? Have we also forgotten that nearly 42% of Americans aren’t paying any taxes?

Let's take a look at some numbers. Currently, there are 14 million Americans that are unemployed. Approximately, 7.17 million of those potential workers are collecting unemployment insurance. Nearly 2.4 million jobs have been lost since President Obama took the oval office. The jobless rate in the U.S. has hovered around 9.0% or higher for 26 of the past 28 months. A good sign of how bad things are is the fact that long-term unemployment is at its highest levels since the Great Depression of the 1930s.
So, for the sake of the argument, let's assume that President Obama’s re-election depends on gaining back those jobs that have been lost. Let’s also assume that raising taxes in an economic depression is political suicide. With that said, what if an industry could offer cutting those unemployment numbers in half?

Releasing the stranglehold on America's oil and gas industry can generate those jobs and ensure sound economic growth without one tax increase.

In its recent study, the American Petroleum Institute found that U.S. policies which encourage the development and exploration of natural resources could, by 2030, increase domestic oil and natural gas production by over 10 million boed, generate 1.4 million jobs, and raise over $800 billion in government revenue.

In his speech, President Obama called for more products sold around the world stamped with the slogan, "Made in America." While our manufacturing sector has a long way to go, let's start simple by ensuring that the energy we consume here at home has the stamp, "Produced in America."

West Wing Week: 9/9/11 or "American Jobs Act"


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API: Policy Shift Could Create 1.4 Million New Jobs

- API: Policy Shift Could Create 1.4 Million New Jobs

Wednesday, September 07, 2011
American Petroleum Institute

U.S. oil and natural gas policy changes could generate more than 1.4 million new jobs, $800 billion in additional government revenue, and 10 million barrels worth of added daily oil and natural gas production by 2030, according to a study by Wood Mackenzie released Wednesday by API. New jobs could be added in every state.

"Our industry has kept more than 9 million Americans employed through some of the toughest economic times in America's history, and we created thousands of jobs just last month," said API President and CEO Jack Gerard. "The study shows we could provide another 1.4 million jobs, with as many as one million created in just the next 7 years, and thousands of shovel-ready jobs available next year. It's time our national energy policy let America take advantage of this opportunity."

"The creation of these jobs is within the president's control," Gerard added. "The policy changes involve actions he can take unilaterally. They do not require a super committee of Congress, and they do not require new legislation."

The policy changes include opening non-park federal onshore and offshore areas to development where now prohibited, returning permitting in the Gulf of Mexico to historical levels, approving the Keystone XL and other pipelines, and establishing a regulatory environment that permits full development of the nation's oil and gas resources, including those locked in shale formations.

U.S. oil and natural gas consumption would not necessarily increase as a result, according to API. The changes would allow America to produce at home a much larger percentage of the oil and natural gas it consumes, reducing imports. "If the full potential of domestic oil and gas production could be achieved while also increasing imports of Canadian oil, all of America's liquid fuels could come from secure North American sources within 15 years," Gerard said.

Wood Mackenzie is a Scotland-headquartered consulting firm with extensive experience analyzing oil and natural gas industry issues. API sponsored the study.

API represents more than 480 oil and natural gas companies, leaders of a technology-driven industry that supplies most of America's energy, supports 9.2 million U.S. jobs and 7.7 percent of the U.S. economy, delivers more than $86 million a day in revenue to our government, and, since 2000, has invested more than $2 trillion in U.S. capital projects to advance all forms of energy, including alternatives.

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Penn State Study Finds Smaller Marcellus Jobs Impact; 'Still Big Numbers'

- Penn State Study Finds Smaller Marcellus Jobs Impact; 'Still Big Numbers'

Tuesday, August 30, 2011
Pittsburgh Post-Gazette
by Bill Toland

Jobs related to natural gas drilling in Pennsylvania's Marcellus Shale field were about half what previous studies had estimated for 2009, but the industry still supported about 23,500 jobs that year, according to a new study issued by Penn State researchers.

"It's still big numbers," said Timothy W. Kelsey, professor of agricultural economics with Penn State's College of Agricultural Sciences, and one of the study's authors.

"It's just not as big as what the industry is talking about."

The study, issued Monday by the Marcellus Shale Education & Training Center, a partnership of the Pennsylvania College of Technology and the Penn State Extension, also said that about half of the land being leased by drillers was owned by people living in those counties in 2009 -- the rest was owned by people or firms based out of state or elsewhere in Pennsylvania, or owned by the state itself.

That means much of the leasing and royalty money derived from drilling goes out of the county in which the drilling takes place, according to the study.

It's an economics phenomenon known as "leakage" -- money that looks as if it is benefitting a particular area is actually going elsewhere. And it's not an economic phenomenon native to gas drilling: Coal interests, limestone and gravel deposits and other mineral-related economic activity is subject to the same kind of leakage.

The study, "Economic Impacts of Marcellus Shale in Pennsylvania: Employment and Income in 2009," bills itself as the first paper to look at not just the number of jobs and amount of revenue generated by drilling but also where that money is going and how quickly it's being spent.

The jobs figure, as with previous studies, accounts for actual jobs created -- front office jobs, drilling jobs, engineering jobs -- as well as "induced" and "indirect" jobs, which are those not created by the industry itself but by the money the industry spreads around to local suppliers, hotels and restaurants, for example.

The study suggested that the industry generated around $3.1 billion in economic activity -- $1.2 billion in income and $1.9 billion in "added value."

Also of note was that locals who benefit from the gas play do not spend their lease and royalty checks immediately, meaning the money is not a direct, immediate benefit to the local economy. By surveying landowners in Bradford and Tioga counties, the study's authors estimate that leaseholders save or invest about 55 percent of leasing proceeds and about 66 percent of royalty payments in the year they are received, instead of spending the money.

The study's attempt to get a more accurate read on who -- and which areas -- benefit from drilling activity was hampered, Mr. Kelsey said, by the absence of any state or county database for who owns mineral rights (and thus owns the royalty rights to gas and shale deposits).

While it was relatively easier to find out who owns the land being leased -- about 51 percent of drilling plots are owned by people in that county -- it's far less clear who owns the rights to the gas below the surface and where those people live. The researchers, in calculating the economic benefits of the shale play, assumed an identical local ownership share (51 percent) for the mineral rights as well as the surface rights.

"We know that's not accurate," Mr. Kelsey said. "But there isn't anybody who has that data."

In many cases, mineral rights were separated from surface rights decades ago. It's more likely, he said, that the mineral rights owner lives out of state than the actual landowners, which means that it's also more likely gas royalty payments are going out of state.

But suspecting that and finding data to prove it are two different things, he said.

The state and county assessment offices need to do a better job of tracking that information if they want to have a more accurate picture of where mineral rights royalties are going, he said.

The study also surveyed 2,000 randomly selected businesses in Bradford and Washington counties to "identify the impacts they are experiencing from Marcellus Shale development." The responses "indicated positive economic impacts are occurring broadly across the economy in the communities where drilling is very actively occurring."

About 23 percent of Washington County business respondents said that natural gas drilling had helped to improve sales, while only 2 percent of respondents said that the drilling had hurt sales.

The full paper is available at http://extension.psu.edu/naturalgas/publications.

The study was paid for by funding from state Department of Community and Economic Development and money from Penn State and the Pennsylvania College of Technology.

(c)2011 the Pittsburgh Post-Gazette. Distributed by MCT Information Services.


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Aker Solutions to Create 500 UK Jobs Next Year

- Aker Solutions to Create 500 UK Jobs Next Year

Friday, August 19, 2011
Aker Solutions

Aker Solutions aims to create 500 new UK jobs over the next year. In a bid to grow its business substantially, Norway-listed Aker Solutions is set to recruit 300 staff to its Aberdeen operation and create 200 positions at the company's newly established west-London engineering office.

The move follows a successful start to the year for the oil and gas engineering and technology services company, which has increased its order backlog by 19 percent since January 1st. It said that market outlook for both the UK and Norwegian North Sea as well as Brazil, West Africa and Asia Pacific remains strong.

"Last year we decided to take a much more proactive recruitment approach. Since then our strategy has been to man up ahead of the big waves of work that we know are coming. That offers much greater predictability for our customers and ourselves," said Alan Brunnen, a managing director with Aker Solutions in Aberdeen. The company aims to recruit 300 new employees in Aberdeen alone.

The majority of positions in Aberdeen are for the subsea technology business where 200 new posts will be created. A further 70 positions are being recruited to support work for maintaining and upgrading North Sea oil platforms in order to extend their field life. Aker Solutions' well service business, which provides technologies and services aimed at increasing oil recovery from producing wells, requires a number of technical and ancillary personnel. As does the drilling technology business, which provides drilling systems and life-cycle services to support new generation drilling assets that are entering the UK North Sea.

New London office

By tapping into the London oil and gas market, Aker Solutions in the next year aims to hire approximately 200 engineering personnel to its new London offices with a target of 500 by the end of 2015. Located in Chiswick Park, this global engineering hub will support field development projects for the North Sea and worldwide.

"Our company has had a historical presence in London, so this is a re-entry to an engineering market we know very well. So far we have received more than 2 000 job applications, which underlines that there is scope to grow this business rapidly," said Valborg Lundegaard, head of engineering in Aker Solutions.

Alan Brunnen added, "We anticipate that workload levels will remain high over the coming years, which is why we are staffing up our UK organization now. We want to be well placed to capitalize on future opportunities that arise in our markets".

Aker Solutions is one of Scotland's largest employers with a workforce of more than 2 500 people. In addition the company has smaller offices and facilities in Great Yarmouth, Maidenhead, Stockton-on-Tees and Whitstable. The company employs 17 000 employees plus 6 000 contract staff in 30 countries worldwide, and has annual revenues of approximately GBP 3.9 billion.

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Texas Oil, Gas Jobs Rebound

- Texas Oil, Gas Jobs Rebound

Wednesday, July 27, 2011
Houston Chronicle
by Tom Fowler

Employment in Texas' oil and gas industry rebounded to its pre-recession highs while oil production solidified its return to the top of the fossil fuel ladder for the first time in more than a decade, according to an index of state energy activity.

The Lone Star State employed 224,200 workers in exploration and production in June, according to the Texas Petro Index -- more than the 223,200 at the height of the last energy boom in October 2008 and nearly 15 percent more than in June 2010, said Karr Ingham, the Midland economist who created and maintains the index.

Oil production also beat out natural gas as the dominant Texas fossil fuel product by value during the first six months of 2011, reversing a trend that started in 1997 when natural gas began to dominate the state's energy production.

"In the past 12 months, the industry has added more than 28,600 jobs, which is nearly 13 percent of all jobs added to the Texas economy," Ingham said.

Oversized impact

The oil and gas industry only accounts for about 2 percent of the state's entire workforce payroll, Ingham says, but it tends to have an oversized impact on the entire state economy because it is so capital-intensive. By some estimates, as much as two-thirds of Texas' job creation in the past year could be tied directly and indirectly to the oil and gas exploration business.

"That's really an accomplishment, considering the TPI in June indicates the industry still has not recovered to the level of economic health that created the last jobs milestone," Ingham said.

Unemployment was 8.2 percent in Texas in June. Nationally, the unemployment rate is 9.2 percent.

The Texas Petro Index is a composite based on economic indicators such as commodity prices, production volumes, employment and drilling data. The index starts with 1995 as the base year, with a score of 100.

The Texas Petro Index grew in June for the 18th consecutive month to 243.5, from a low in December 2009 of 186.6. It has not yet returned to its peak, 286.0, recorded in September and October 2008, and isn't expected to reach that point again for many months, Ingham said.

That's because other elements of the index, such as natural gas prices, the number of drilling rigs active and the number of wells completed, continue to lag behind the historic highs.

Crude prices, however, have risen significantly, helping push the value of Texas-produced oil to nearly $3.16 billion in June, 29.5 percent more than in June 2010.

Natural gas production was worth $2.46 billion in June, up slightly from June 2010, but the value of Texas' natural gas production for the first six months of 2011 was down more than 17 percent from the prior year, to $14.4 billion.

A return to its roots

The current energy industry growth spurt is different than the boom from 2002 to 2008, Ingham said.

Back then the growth largely was due to the expansion of drilling and production in natural gas shales, thanks to industry perfecting a combination of horizontal drilling and hydraulic fracturing.

"In the current expansion, the industry has returned to its crude oil roots," Ingham said, but it's hardly a repeat of the oil booms in the early 1980s and 1990s.

"In the current expansion, the industry has returned to its crude oil roots," Ingham said, but it's hardly a repeat of the oil booms in the early 1980s and 1990s.

Instead, the same technological improvements that fueled the recent expansion of natural gas production is allowing producers to tap previously unavailable oil reservoirs in plays including the Eagle Ford in South Texas and the Wolfberry in West Texas.

Copyright (c) 2011, Houston Chronicle

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Area Restores Many of Its Lost Jobs

- Area Restores Many of Its Lost Jobs

Monday, July 25, 2011
Houston Chronicle
by Ronnie Crocker

Powered by gains in oil and natural gas and manufacturing and a recent uptick in heavy construction, the Houston metro area has regained nearly 70 percent of the private-sector jobs it lost during the Great Recession, a local analyst says.

"To put it bluntly, that's just phenomenal," said Patrick Jankowski, vice president of research at the Greater Houston Partnership.

Acknowledging lingering concerns in the real estate and government sectors, Jankowski nonetheless was encouraged by the economy's overall resilience. He predicted the strong showing in private industry "will eventually start to influence the public sector."

Others also took heart in the monthly employment figures released Friday by the Texas Workforce Commission.

The report shows unemployment in the Houston region grew to 9 percent in June, up from 8.2 percent a month earlier. Statewide, unemployment rose to 8.2 percent, from 8 percent the previous month. The nation's unemployment rate for the month was a percentage point higher at 9.2 percent.

Part of this can be attributed to the annual influx of teachers and college and high school students into the workforce; the unemployment rate has gone up five of the last six Junes. But Jankowski said that, because of the way the rate is calculated, this particular increase might be yet another signal of an improving economy.

The rate is based on a survey, and only respondents actively seeking work are counted as unemployed. Jankowski said it's likely that some people who had given up during the recession have seen the continued positive jobs reports and rejoined the search for work.

He noted that the Houston region added 10,200 jobs in June, while adding 20,800 people to the workforce.

Statewide, there were 32,000 new nonfarm jobs in June.

In announcing the results, Workforce Commissioner Ronny Congleton, who represents labor on the three-member panel, noted that the state has added 117,600 jobs since January.

"While no state is immune from tough economic times, we're still putting many Texans back to work," Congleton said in a statement.

Jankowski, who has tracked the local employment scene since 1990, said the private sector in the Houston region shed 165,400 jobs by the time the recession bottomed out in January 2010. Since then, he said, the region has added 113,500 private jobs, or 68.6 percent of the number lost.

He cited several positive signs in the Workforce Commission statistics, which are based on local hiring over the past 12 months:

The oil and gas industry added 6,600 jobs, with a ripple of economic benefits that include a boost in the production of durable goods such as oil field equipment and heavy machinery.

Manufacturing added 8,900 jobs. Workers who were not laid off during the recession are getting more overtime pay, as their average work weeks have increased to 50 hours, up from 42 hours at the beginning of the recession.

From auto dealers to clothing stores, retail has added 5,400 jobs, although these increases have slowed during the past couple of months.

Restaurants and bars have added 8,400 jobs, attributable in part to population growth and increased consumer optimism.

There has even been an uptick in heavy construction. Jankowski said the addition of 3,400 jobs in this area is important because of the variety of goods and services associated with large projects such as building refineries and chemical plants.

Jobs tied to real estate continue to lag, the analyst said, along with home sales and commercial leasing.

Also under strain is the government sector. The latest figures show some declines, but Jankowski said he suspects the overall numbers will be revised downward as more data become available.

And while the decline in public-education jobs, at both the local school district and university levels, was about the same as it was last June, a typical seasonal drop-off as school years end, it won't be clear until the fall how many of those job losses are permanent, the result of layoffs brought on by budget cuts.

Copyright (c) 2011, Houston Chronicle

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GOM Regulatory Regime Delays Cost Revenue, Jobs, Oil Supplies - Study

- GOM Regulatory Regime Delays Cost Revenue, Jobs, Oil Supplies - Study

Friday, July 22, 2011
Rigzone Staff
by Barbara Saunders

Bottlenecks in oil and gas plan and permit approval activity in the Gulf of Mexico (GOM) since 2010's Macondo well disaster are costing some $44 billion in U.S. gross domestic product and 230,000 jobs, according to a new IHS CERA/IHS Global Insight study.

The study, Restarting "the Engine" — Securing American Jobs, Investment and Energy Security, examined the "activity gap," or the difference between the investment capacity of oil and gas companies and the regulatory capacity to process and oversee this activity. Based on data from the Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE), the study identified a growing backlog of exploration and development plan applications awaiting approval and a significant reduction in plan and drill permit approvals.

The costs of delays in the regulatory "new regime" are "economically significant and not just in Gulf states" such as Texas and Louisiana, said Daniel Yergin, chairman of IHS CERA and author of the Pulitzer prize-winning book on the oil industry, The Prize, during a press conference on the new study.

Daniel Yergin – Regulatory delays take "economically significant" toll outside Gulf States

The leading states outside of the GOM to benefit from oilfield supply, service and software jobs would be California, followed by New York, Florida, Illinois and Georgia, the study found. Other manufacturing-dependent economies such as Pennsylvania and Ohio also would receive significant benefits.

"There is a need to better align the new regulatory environment with industry capacity, as the current pace of plan and permit approval is congested," said Jim Burkhard, IHS CERA managing director for global oil. "With that alignment, then the country can realize the economic and energy security benefits of a restarted Gulf of Mexico."

Among the study's key findings, the lost opportunity from an inability to close the activity gap would amount to:

• 150 million barrels of oil next year, or 411,000 barrels of oil per day (bopd) from the deepwater Gulf of Mexico alone– five times the amount recently released from the U.S. Strategic Petroleum Reserve.
• $44 billion of U.S. gross domestic product growth in 2012
• 230,000 additional jobs in 2012
• $22 billion improvement in 2012 wages and compensation
• Realizing $19 billion in pent-up capital investment over a three-year period
• $18.6 billion more of federal, state and local, royalties, bonuses and rents tax payments over the next three years

The study also found that one billion barrels of oil reserves that the Gulf of Mexico in the form of new discoveries were not realized in the past 12 months. This could affect the future production outlook, IHS CERA noted.

Federal agencies that regulate energy exploration were restructured last year and the regulatory approval process has not returned to previous levels, IHS CERA reported. "Each month that passes without closing the gap reduces the potential economic benefits," the company said in a statement.

The study examined plan and permit activity levels in the six months since the lifting of the moratorium in the GOM in October, 2010. The analysis found:

• 86 percent decline in the pace of regulatory approvals for plans
• 38 percent increase in the time to reach each regulatory approval for plans
• 250 percent increase in the backlog of deepwater plans pending approval (from an average of 18 per year to a current pace of 67 per year)
• 60 percent decline in drill permits (combined shallow water and deepwater)

"An increase in oil and gas activity reverberates throughout the broader economy," said James Diffley, senior director of IHS Global Insight's U.S. Regional Economic Group. "Each new hire of a platform worker, machinist or other specialist to work in the Gulf's oil and gas industry results, on average, in more than three additional jobs in an array of industries around the country, whether it be in the Gulf region or a subsea power cable provider in Ohio, a steel manufacturer in Pittsburgh or a software firm in California's Silicon Valley."

The report also noted that the increased activity in the upstream oil and gas sector of the Gulf of Mexico will have substantial impact on income and would lead to increased consumer spending since oil and gas jobs are higher paying, on average, than wages paid to workers in many other sectors. In turn, more offshore development and the jobs it creates would lead to the enhancement of federal, state and local tax revenues by some $12 billion in 2012 and $20 billion through 2013, IHS CERA projected.

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Commodity Corner: WTI Loses 2.5% on Jobs Data

- Commodity Corner: WTI Loses 2.5% on Jobs Data

Friday, July 08, 2011
Rigzone Staff
by Matthew V. Veazey

Following the release of anemic U.S. employment growth figures Friday, the price of light sweet crude oil on the New York Mercantile Exchange fell 2.5 percent to end the day at $96.20 a barrel.

The U.S. Department of Labor reported a slight increase in non-farm payrolls for June: a net gain of only 18,000 non-farm payrolls. The figure is based on the addition of 57,000 private-sector jobs offset by a 39,000-job reduction by local, state, and federal governments during the period.

The net gain for June was far lower than what economists had expected. For instance, Bloomberg reported that its survey of economists anticipated 105,000 additional jobs under the most bearish scenario. Dampening the outlook for crude oil demand further, the Labor Department also reported that the national unemployment rate for June rose to 9.2 percent—a 0.1 percentage point increase from the previous month.

The WTI traded within a range from $95.60 to $99.18 Friday. The Brent futures contract on the IntercontinentalExchange lost 26 cents to settle at $118.33. The Brent price fluctuated from $117.18 to $119.79.

Natural gas futures ended the day higher, settling at $4.205 per thousand cubic feet. The 6.5-cent increase in the August contract price stems from weather forecast models anticipating above-normal temperatures from the Southwest to the Northeast well into next week.

Front-month natural gas peaked at $4.21 and bottomed out at $4.12.

Gasoline for August delivery settled at $3.09 a gallon. The contract price fluctuated from $3.07 to $3.13.

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Commodity Corner: Oil Declines on Lackluster Jobs News

- Commodity Corner: Oil Declines on Lackluster Jobs News

Friday, June 03, 2011
Rigzone Staff
by Matthew V. Veazey

Crude oil for July delivery lost 18 cents Friday to settle at $100.22 a barrel after the U.S. Department of Labor released data suggesting that reports of an economic recovery may be premature.

According to the federal agency, the U.S. economy added 54,000 nonfarm payroll jobs in May—well below what analysts had anticipated. By comparison, the Labor Department reported last month that the U.S. workforce added 244,000 nonfarm payroll jobs in April.

The Labor Department also reported Friday that the country's official unemployment rate edged upward 0.1 percentage point in May to 9.1 percent.

Front-month crude oil peaked at $100.87 and bottomed out at $98.12 Friday. For the week, oil is down 0.4 percent.

July natural gas also ended the day lower, falling eight cents to settle at $4.71 per thousand cubic feet. The decline stems from predictions of milder temperatures in the Midwest and Northeast, lessening demand for electricity to power air conditioners in the regions.

The July contract price for gas traded from $4.715 to $4.81 Friday. Overall, natural gas is up 4.2 percent for the week.

July gasoline gained two cents to end Friday's trading at $2.99 a gallon—the intraday high. The price floor for the session was $2.92, and gasoline is down 3.2 percent for the week.

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Drilling Generates 48,000 Jobs

- Drilling Generates 48,000 Jobs

Friday, June 03, 2011
Knight Ridder/Tribune Business News
by Joe Napsha, The Pittsburgh Tribune-Review

The boom in Marcellus shale natural-gas exploration and production created 48,000 jobs in Pennsylvania during the past 18 months, says a new state report.

"The numbers are absolutely staggering. We certainly project the jobs will grow as production continues to expand," said Travis Windle, a spokesman for the trade group Marcellus Shale Coalition in Cecil in Washington County.

The state's basic natural-gas exploration and production industries -- along with an extensive supply-chain network and support industry -- created the 48,000 jobs from October 2009 through this March, according to the report by the state Department of Labor and Industry. The total included hiring for 9,000 jobs during the three months ended March 31.

Of the 48,000 new jobs, about 71 percent were filled by Pennsylvania residents, the state said in a separate report.

"We have already seen tens of thousands of new jobs in Pennsylvania from the industry itself, as well as from new industries spawned to support it," state Department of Environmental Protection Secretary Michael Krancer said in testimony Thursday before the Congressional Natural Gas Caucus in Washington, D.C.

"These are good-paying jobs in many fields," Krancer said.

The study, the first issued by the state to summarize the impact of the Marcellus shale boom, backs up the wages.

The report shows that the average wage last year for jobs in the basic gas industry was $69,995, while the average wage in support industries -- such as construction, steel and engineering -- was $63,967. That compares with an average wage for all industries in the state of about $45,491.

Total employment in industries connected to Marcellus shale drilling and production was 141,000 workers as of Sept. 30, the state said. The figure represents 2 percent of total state employment.

Armstrong, Beaver, Butler, Fayette, Greene, Indiana, Washington and Westmoreland counties had about 5,280 jobs created during the 18-month period, most of which were in support industries. During that time, 371 Marcellus shale wells were drilled in those eight counties.

Employment in six basic natural-gas industries -- such as drilling, pipe production, pipeline construction and gas transportation -- increased by almost 94 percent from 2008 to Sept. 30, the report shows.

The 21 support industries -- such as iron and steel mills; water supply; oil and gas machinery equipment manufacturing; site preparation; and environmental services -- had employment increased just 2 percent.

Beaver, Greene and Washington counties had 1,200 new employees hired in the support industries, the highest number in six state regions tracked in the report.

One of the largest gas producers, Range Resources Inc., has 5,000 employees in Western Pennsylvania and could double those numbers in the coming years, spokesman Matt Pitzarella said.

Another large producer in the state, Chesapeake Energy Corp., has 1,341 employees in the state, spokeswoman Jacque Bland said.

Gas industry employers are seeking workers, particularly those with training. Of 12 students who graduated two weeks ago from a training program at Westmoreland County Community College in Youngwood, five already have job offers, said Byron Kohut, director of the ShaleNet's Western Hub of training programs.

"We anticipate all of the students will get jobs," as mechanics and roustabouts, Kohut said.

The industry is projected to create 212,000 new jobs by 2020, according to a forecast by Penn State University experts. The forecast is based on natural-gas production of 13 billion cubic feet from more than 3,500 gas wells drilled in 2020, according to their study funded by the Marcellus Shale Coalition.

Job growth, however, depends upon the drilling volume and where the jobs are within the energy sector, said energy expert Kent F. Moors, a Duquesne University professor and director of Duquesne's Energy Policy Research Group.

Copyright (c) 2011, The Pittsburgh Tribune-Review

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McKinley Seeks to Keep Marcellus Jobs in W.Va.

- McKinley Seeks to Keep Marcellus Jobs in W.Va.

Tuesday, May 31, 2011
Knight Ridder/Tribune Business News

Rep. David B. McKinley, RW.Wa., posted on Facebook last week that he is co-sponsoring legislation from Rep. Mark S. Critz, D-Pa., to augment on-the-job training programs for the Marcellus shale industry.

HR 1396 amends the Workforce Investment Act of 1998 to require the U.S. secretary of labor to make discretionary grants to local areas for adult on-the-job training or dislocated worker on-the-job training at worksites directly related to the exploration, production and transportation of natural gas from the Marcellus shale formation.

"Discovery of Marcellus shale has already created hundreds of jobs in northern West Virginia and we must protect those jobs for West Virginians," McKinley said. "We have seen our local hotels to capacity with out-of-state workers doing the same job that our workforce could handle with the proper training. The resources our state naturally has should be used for the benefit of the people from our state. ... We must do everything we can to get our state back to work and this piece of legislation is a step in the right direction for achieving that goal."

The posting notes that McKinley is also a founding member of the bipartisan Congressional Marcellus Shale Caucus, devoted to discussing how to best harness the economic development and energy independence potential of Shale gas production while providing reasonable protections for landowners and the environment.

Copyright (c) 2011, The Dominion Post, Morgantown, W.Va.

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U.S. Automakers Prepare for Massive Factory Hiring

U.S. Automakers Prepare for Massive Factory Hiring



May 31, 2011

General Motors (NYSE:GM), Ford (NYSE:F) and Chrysler (FIATY) are preparing for a massive factory hiring as the companies boost production to satisfy the returning appetite for new vehicles. All three automakers have recalled many laid-off workers after eliminating tens of thousands of hourly jobs during the downturn. All new entry-level workers from now on will start at about $14 an hour, about half the veteran wage, and less than the average U.S. manufacturing wage of $18.89 an hour, according to the Bureau of Labor Statistics.

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GM to announce $2 billion in update and expansion plans

GM to announce $2 billion in update and expansion plans



May 10, 2011

USA Today is reporting that GM is expected to announce today it will spend more than $2 billion on plant updates and expansion in eight states. The plan will create more than 4,000 jobs.
About half the hires will be at Detroit-Hamtramck Assembly Center, where GM builds the Chevrolet Volt and is in the expected last year of building the Buick Lucerne and Cadillac DTS sedans. It will be revamped later in the year to start building the 2013 Malibu.

The report says that CEO Dan Akerson will reveal the plans today at GM's Toledo, Ohio, transmission factory, which is where GM will spend about $250 million and add 250 jobs.

Hiring is expected to start this year and run through 2013, according to USA Today.

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API: Oil and Gas Industry Supports 2M Texas Jobs

API: Oil and Gas Industry Supports 2M Texas Jobs

Wednesday, May 04, 2011
American Petroleum Institute

The U.S. oil and natural gas industry supports two million jobs in Texas and 24 percent of the state's economy, according to a new study commissioned by API and conducted by PwC (PricewaterhouseCoopers LLP).

API President and CEO Jack Gerard said the president and Congress should keep the study's findings in mind as they debate greater access to domestic oil and natural gas and higher taxes on energy.

"Increasing energy taxes raises costs for businesses, which may impact consumers, and it threatens the two million jobs our industry supports in Texas," Gerard said. "Higher taxes would also depress energy production over the longer term, reducing royalties and income taxes collected by the government."

The new report updates data from a previous report and shows that, between 2007 and 2009, the economic activity supported by the industry nationwide actually increased in size as a percentage of U.S. GDP, from 7.5 to 7.7 percent. The industry supports 9.2 million jobs in the U.S.

"The people of the U.S. oil and natural gas industry are the backbone of our economy," Gerard said. "They provide most of the nation's energy, spurring job growth across America. Even during times of economic recession, the oil and natural gas industry stands strong."

Click here for a copy of the new study.

API represents more than 470 oil and natural gas companies, leaders of a technology-driven industry that supplies most of America's energy, supports 9.2 million U.S. jobs and 7.7 percent of the U.S. economy, delivers $85 million in revenue to our government every day, and, since 2000, has invested nearly $2 trillion in U.S. capital projects to advance all forms of energy, including alternatives.

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Gas Jobs Await Trained Work Force

Gas Jobs Await Trained Work Force

Tuesday, April 26, 2011
Knight Ridder/Tribune Business News
by Laura Legere, The Times-Tribune, Scranton, Pa.

The list of want ads is long.

Project engineer, gas marketing administrator, landman, heavy equipment operator, compressor technician, business development director, regulatory clerk, petrophysicist.

In late March, the member companies of the Marcellus Shale Coalition advertised hundreds of open positions they want to fill in Pennsylvania or just over the border in New York. Three years into the gas-drilling boom, the job listings testify to the continued need for workers with a variety of skills to propel the growing industry.

Researchers with the Marcellus Shale Education and Training Center estimate shale drilling will require between 3,700 and 15,000 direct jobs in central and northern Pennsylvania by 2013 and an additional 8,100 to 13,500 direct jobs in southwestern Pennsylvania by 2014.

About 75 percent of the jobs will be blue-collar work, said the study's author, James Ladlee, director of Penn State Cooperative Extension in Clinton County. A significant amount, 20 percent, of the jobs can be characterized as general office work -- everything from information technology to receptionists.

"People think about the workers on the drilling rig and they think those are the only jobs out there," he said. "There are a whole bunch of people that are backing them up in a variety of ways to make sure that they are able to do their jobs out in the field."

The Education and Training Center, based at Pennsylvania College of Technology in Williamsport, has continued to adapt to the industry's work force needs, but the basic framework for many of the skills necessary for industry jobs are already available in general skills courses at most technical schools.

For example, many of the skills learned in a diesel mechanics course will apply to the diesel compressors used to push gas from wells into pipelines, Mr. Ladlee said.

Some higher-paying jobs will require more education. Engineers, a real need for the industry, will need four or more years of college education to acquire the necessary skills.

Larry Milliken, director of energy programs at Lackawanna College, said a certified pipeline welder can make more than $100,000 anywhere in the country because they are in such high demand.

"You can't get that skill in a year, but you can develop that skill in four years," he said. "And most of that is paid, on-the-job training after you get a two-year technical degree."

Prospective employees will need to accept a demanding schedule if they want to work in the gas industry, Mr. Milliken said. It is a hard truth he reiterates to the 50 students in the college's natural-gas technology program.

"A lot of people want to work an eight-hour day, go home, not work holidays or weekends and never be interrupted on their personal schedule. That's not the oil and gas business," he said.

"It's a 24-hours-a-day business. It is demanding. You've got to be available when the job calls."

General Motors Invests $100 Million to Add 30 Jobs in Rochester, N.Y.

General Motors Invests $100 Million to Add 30 Jobs in Rochester, N.Y.



General Motors (GM) announced Tuesday that it will invest $100 million towards more jobs and automotive components. The auto giant said it plans to add 30 jobs and purchase tooling and equipment for its GM Components Holdings Rochester Operation.

This would enable the facility to produce a new generation of fuel-efficient small block car and truck engines. The new jobs will be added to an existing workforce of 826 hourly and salaried employees at the Rochester facility.

GM's total investment in its new small block engine is now approximately $1.1 billion, creating or retaining more than 2,400 jobs. As far as where GM is sitting in the market, shares are up 0.19% to $30.83.

Keppel Secures Offshore, Marine Jobs Globally

Keppel Secures Offshore, Marine Jobs Globally

Tuesday, April 12, 2011
Keppel Corp. Ltd.

Keppel has clinched new contracts totaling S$240 million from international customers.

These entail building a new multi-purpose dive support construction vessel for SBM Offshore as well as modifying and upgrading a Floating Production Storage and Offloading (FPSO) vessel for Petrofac.

Mr. Nelson Yeo, Managing Director (Marine) of Keppel O&M, said, "These new contracts reflect the confidence of our customers in the capabilities of the Keppel O&M group. We are proud of the solid partnerships built with faithful customers who turn to our yards worldwide for their fleet expansion and upgrading needs.

"Looking ahead, I am confident that we will continue to strengthen the mutual trust and partnership with SBM Offshore and Petrofac with Keppel's commitment to quality and reliability."

Keppel Singmarine will build for SBM Offshore a prototype multi-purpose dive support construction vessel (DSCV) scheduled for delivery in 2Q 2013. This cutting-edge vessel combines capabilities of diving support, subsea construction and anchor handling, and features a DP III (Dynamically Positioned) system.

The DSCV will be equipped with a fully integrated 12-men saturation diving system that enables divers to work safely up to a depth of 300m, and a 250-tonne crane to support subsea oilfield development. It will also feature a 200-tonne double drum winch, four chain lockers and a stern roller for anchor handling functions.

Since 2000, sister company Keppel Shipyard has completed 13 FPSO and FSO projects for SBM Offshore with another four FPSO conversion projects currently underway.

Keppel Shipyard has also secured a fast-track project for the upgrading of a FPSO vessel from Petrofac International (UAE), a subsidiary of Petrofac. The upgrading of the ex-FPSO East Fortune includes refurbishment and life extension works, engineering, fabricating, installing and integrating new topside process modules, upgrading of spread mooring and auxiliary support systems.

Work has commenced in 1Q 2011. Designated for an oil and gas field offshore Peninsular Malaysia, this FPSO facility will be able to handle both oil and gas production.

The above contracts are not expected to have material impact on the net tangible assets and earnings per share of Keppel Corporation Limited for the current financial year.

Marcellus Panel Looks for Common Ground at First Meeting

Marcellus Panel Looks for Common Ground at First Meeting

Monday, March 28, 2011
Pittsburgh Post-Gazette
by  Laura Olson

The public comments at the end of Friday's inaugural meeting of the state Marcellus Shale Advisory Commission showed part of the challenge facing that panel during the next four months.

One county commissioner stood up to laud the number of jobs that gas drilling has brought to his community. He was followed by a northeastern resident who said her property value has plummeted because of the surrounding well pads, and another woman citing concerns about water quality.

"I moved up here to be at peace with nature," Wyoming County resident Joanne Fiorito told the panel. "You have now ripped my American dream apart, and I am appalled and outraged."

The 30-member panel has 120 days to assess how the state is managing natural gas drilling, as well as find some policy agreement between those skeptical of the booming business and those benefiting from it.

The group will report back to Gov. Tom Corbett in mid-July on what changes they recommend to balance job growth and environmental protection.

Their first task during the meeting, which lasted for more than four hours, was dividing the topics to be tackled among four work groups -- health, safety and environmental protection; economic and workforce development; infrastructure; and local impacts and emergency response.

Those groups will begin their work shortly, and give an update of their progress at the commission's next meeting on April 27.

A locally assessed impact fee on gas drillers will be part of those talks, said Lt. Gov. Jim Cawley, the commission's chairman. But a statewide severance tax, which the Corbett administration opposes, is "off the table," he added.

Several of the commission members -- who represent state government, local communities, environmental advocates, industry leaders and academia -- noted a need for some form of levy or fee to help local governments with rising costs.

Mr. Cawley said he'd like to see figures on what the drilling industry is costing municipalities and counties in additional road construction, staffing, emergency response calls and other growing demands.

Several on the panel talked about using a "fact-based" process to figure out how to responsibly grow the drilling industry, and to present Pennsylvania as the best place for drilling companies to invest.

"We have to win," said Nicholas Haden, vice president of Reserved Environmental Services, a wastewater treatment facility in New Stanton, Westmoreland County. "The Marcellus Shale is not the only shale play in the world."

Presenters giving a snapshot of the industry's activities relayed data on how much interest the Marcellus, and the state's other shale formations, already have garnered.

Southwestern Pennsylvania is near the forefront of activity, with Washington and Greene among the top five counties for number of wells. Department of Environmental Protection statistics show Washington with 305 wells drilled since 2007 and 179 in Greene, which puts them third and fourth behind Bradford and Tioga.

Those wells, and others in the works, are expected to bring more than 10,000 industry jobs to the state's southwest by 2014, said Tom Murphy, of Penn State's Marcellus Center for Outreach and Research.

But amid the presentations came questions to be discussed in the coming months: How should the state help non-drilling businesses, which are losing workers to higher-paying gas companies and having trouble filling the resulting openings?

And how many hotel rooms and apartment buildings should towns add to accommodate an industry that tends to move money and manpower quickly if markets shift?

Some lessons may be found in looking at the southern shale gas-producing states, said Teri Ooms, of the Institute for Public Policy and Economic Development.

A major complaint in Arkansas, and in some parts of Pennsylvania already, is road damage and congestion, said Ms. Ooms. She said one strategy that helped ease tensions was posting truck routes and advertising when those roads would have heavy traffic.

Other problems and solutions will be the source of much-welcomed debate by the commission and members of the public, said Mr. Cawley.

"We want to hear it from all sectors, because we want to provide a blueprint to Gov. Corbett in the middle of July that truly outlines all of the benefits as well as any potential impacts so that he can make an informed decision," he said.

Budget fuel price call by Welsh Tories and Lib Dems

23 March 2011 Last updated at 06:44 GMT

Chancellor George Osborne has been urged to help Welsh motorists with fuel prices when he delivers his Budget.

Mr Osborne has hinted that he may scrap a fuel duty rise due next month.

Conservative assembly group leader Nick Bourne said he had "to do what's right by the country" and hoped he could act on fuel.

The Chancellor has faced calls for action after a sharp rise in petrol prices

Welsh Liberal Democrat leader Kirsty Williams said household budgets were under pressure and called for the fuel duty increase to be scrapped.

The Tories and Lib Dems said the UK government had laid the foundations for economic growth by dealing with the deficit.

But the Welsh Assembly Government said spending cuts were too deep and too fast.

On Sunday, Mr Osborne told the BBC's The Andrew Marr Show that he was "looking very carefully" at freezing the duty in Wednesday's Budget.

With uncertainty in the Middle East and Libya contributing to increased oil prices, the cost of petrol has risen sharply.

Motoring organisations have called on the government to scrap the planned rise in duty. It is due to take effect in April when it will go up by inflation plus 1p, making a total rise of about 4p per litre.

The Welsh Lib Dem leader said last year's Budget was "difficult... but it laid the foundations for the sustained economic recovery that Wales needs", she said.

"Fuel duty is now a real issue for so many families, particularly in rural Wales," she added.

The Wales Office has asked the Treasury to cut the cost of petrol by up to 5p a litre in rural Wales.

Minister David Jones recently revealed that he asked for a proposed fuel duty rebate scheme to be extended to the Welsh countryside

Growing the economy

But Welsh Assembly Government Finance Minister Jane Hutt said: "My main message to the chancellor is that the cuts are too fast and too deep and they are putting families, communities and businesses at risk in Wales."

She said the Budget needed to take action to stop the UK sliding back into recession, adding: "We need to see that there is a clear plan for growth and jobs."

Prime Minister David Cameron has rejected claims that Wales has been unfairly targeted by spending cuts.
Plaid Cymru said the Westminster coalition government should have concentrated on growing the economy instead of cutting spending in its first budget last year.

Plaid MP Jonathan Edwards said: "Quite simply, they got it the wrong way around."

Trade union Unison said its research showed last October's spending review could deprive the Welsh economic of £3.6bn and warned of 52,000 job losses, with half coming from the private sector.

Unison Cymru secretary Paul O'Shea said: "The view that the private sector is going to mop up the job losses being experienced in the public sector is merely wishful thinking."

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