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WV could attract more cracker plants and spin-off companies

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CHARLESTON, W.Va. — An industry analyst said with the amount of natural gas coming out of the ground, the United States needs at least a dozen more cracker plants to handle the load.

Tom Gellrich of Topline Analytics, explained that could mean more than one cracker plant in West Virginia.

Gellrich was a guest speaker at the Marcellus to Manufacturing Ethane Development Conference in Charleston.

Cracker plants, which can span hundreds of acres, use extreme heat to convert ethane separated from a natural gas stream into ethylene.

Antero Resources announced Wednesday it would be supplying the proposed cracker complex in Wood County with 30,000 gallons of natural gas each day.

With the amount of ethane available in West Virginia and at different shale sites around the country, Gellrich stressed a need for more cracker complexes—like the one near Parkersburg—and the industries that go along with it.

Read more: http://wvmetronews.com/2014/03/30/wv-could-attract-more-cracker-plants-and-spin-off-companies/

 
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U.S. Oil Production Now Over 10 Percent of World Total – Thanks to Shale

SONY DSCRecently, the U.S. Energy Information Administration (EIA) reported that the United States is producing over 10 percent of the world’s crude oil supply. This landmark is testament to how responsible shale development is changing not only the U.S. energy landscape, but the global outlook as well. From the report:

“U.S. tight oil production averaged 3.22 million barrels per day (MMbbl/d) in the fourth quarter of 2013 […]. This level was enough to push overall crude oil production in the United States to an average of 7.84 MMbbl/d, more than 10% of total world production, up from 9% in the fourth quarter of 2012. The United States and Canada are the only major producers of tight oil in the world.”

What does this mean for the United States? Less dependence on foreign nations for North America’s vital energy needs, and a more stable global energy market – not to mention all the jobs and economic opportunity that domestic oil production delivers for American families.

Advanced drilling and completion processes, such as hydraulic fracturing and horizontal drilling, have allowed the United States to produce previously unrecoverable resources from shale and other “tight” formations. These technologies have revived the U.S oil and gas industry—producing resources at record levels all while stimulating our manufacturing sector. Furthermore, domestic oil production has made significant impacts on the national trade deficit. According to an earlier report from the EIA:

“The drop in net imports of oil (crude and petroleum products combined) was the major contributor to the United States reaching its lowest net trade deficit in November 2013 since 2009.”

Additionally, “starting in 2011, the United States has been a net exporter of petroleum products.”

Read more: http://www.northcentralpa.com/feeditem/2014-03-27_us-oil-production-now-over-10-percent-world-total-%E2%80%93-thanks-shale

 
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Oil Trains Start Rumbling Into California

rail tracksChriss Street

Phillips 66, formerly a division of energy giant ConocoPhillips, recently filed a project proposal to bring mile-long crude oil trains from Canada and North Dakota to its refinery in California’s San Luis Obispo County.  If approved, the project would mean up to 250 trains a year will each haul 2 million gallons of crude oil into California and travel on the same tracks used for Amtrak commuter railtrains in the San Francisco Bay Area. With oil fracking increasing America’s domestic production by 60% in the last three years, political delays in building the Keystone XL Pipeline resulted in California having the only refining capacity available in America.  But a with horrible safety record, a political battle will heat up in California over oil trains.

America oil production since 2008 is up by about 60% to 2.7 billion barrels a year.In 2013, total U.S. crude oil production grew by 15% to 7.4 million barrels per day as fracking of underground shale formations in the Eagle Ford field of Texas and Bakken in North Dakota allowed both of those states to grow production by 29% for the year.  In three years, output grew in North Dakota by 177% and in Texas by 119%.

Railroads have been making fortunes carrying North Dakota crude oil from the Bakken field at an average of $17 a barrel of crude oil to Texas refineries versus an estimated $10 a barrel if the Keystone XL Pipeline had been built.  The key beneficiary of this bonanza has been Warren Buffet’s Berkshire Hathaway Corporation that purchased the Burlington Northern Railway (BNI) in 2009.  It had been assumed that by 2012 most of that crude oil would be shipped through the Keystone XL Pipeline.  But since Burlington’s purchase, BNI’s profits have grown by 30% a year to a record .37 billion in 2013.  Goldman Sachs recently reported that with existing oil pipelines fully congested, 200,000 more barrels will be shipped by rail and now oil trains are headed to California.

Read more: http://www.americanthinker.com/blog/2014/04/oil_trains_start_rumbling_into_california.html

 
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Labor Report Reveals Incredible Job Creation from Shale

Colleagues at container terminalShale development continues to be a huge economic driver and job creator for states where development is taking place. Recent reports in Pennsylvania and across the country show that states with shale development continue to reap the benefits of low unemployment and a surge in well-paying jobs that support economic growth.

The latest U.S. Bureau of Labor Statistics report shows the Marcellus Shale has created 15,114 direct jobs in Pennsylvania, marking an amazing 259.3 percent increase since 2007. While some believe this number should be higher, it’s important to note that these are only direct jobs.  According to the Bureau of Labor Statistics’ Quarterly Census of Employment and Wages report, direct jobs were only defined as the following:

(1)oil and gas extraction (North American Industry Classification System (NAICS) 211), which represents establishments that operate and develop oil and gas fields; (2) drilling oil and gas wells (NAICS 213111), which contains establishments that drill oil and gas wells, as well as contractors that specialize in directional drilling; and (3) support activities for oil and gas operations (NAICS 213112), which comprises establishments that perform support activities, such as exploring, building, and dismantling wells.

Read more:

http://www.northcentralpa.com/feeditem/2014-03-20_labor-report-reveals-incredible-job-creation-shale

 
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W.Va. gas industry ‘an awakening giant’

plant2By Caitlin Cook

CHARLESTON, W.Va. — Antero Resources announced Wednesday that it will supply nearly half of the ethane needed to support the proposed petrochemical complex in Wood County known as project Ascent — Appalachian Shale Cracker Enterprise.

Company President Paul Rady told a crowd of about 70 people at the Marcellus to Manufacturing Conference  recently at the Charleston Civic Center that Marcellus Shale is “an awakening giant.”

Rady was joined by Gov. Earl Ray Tomblin and Odebrecht Vice President David Peebles. Odebrecht announced in November that it would explore its options in developing a petrochemical complex that would include an ethane cracker plant, three polyethylene plants and associated infrastructure for water treatment and energy co-generation.

In January, Odebrecht announced that it purchased land in Wood County for the project.

“We want growth, jobs and prosperity in this region,” Rady said about the developments of project Ascent.

Antero will supply 30,000 barrels per day of ethane under the tentative agreement. The agreement is contingent on project Ascent moving forward after a multi-year feasibility study.

Read more: http://www.wvgazette.com/News/201403260249

 
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