workforce implications from natural gas development - chenango
TRANSCRIPT
New York Association of TownsBinghamton, NY June 24th, 2011
Jeffrey Jacquet Cornell University Dept. of Natural Resources
Workforce Implications from Natural Gas Development
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Name of Study Number of Jobs
Considine et al 2009 98,000 Jobs inPennsylvania!!!
PA Labor and Industry 2011
72,000 New Hires in one Year!!!
Weinstien and Clower 2009
20,000 Jobs in Broome County!!!
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JOB CREATION
It is Complicated!Direct Workforce
Indirect WorkforceInduced Workforce
Resident and Non-Resident Workforce
Short Term and Long Term Workforce
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I/O Modeling (IMPLAN), very simply
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Input amount of money spent on drilling (and wages and royalties)
Program uses regional economic profile to estimate how much money is absorbed and respent locally
Creates indirect and induced job “multipliers” based on this local stimulus
But: drilling costs change rapidly, local economic profiles change, spending patterns are not well known, workers may be non-local, and royalties may not be spent locally.
Name of Study
Direct Jobs
IndirectJobs
Induced Jobs
Total Jobs
Considine et al.2010Pennsylvania 700 Wells
21,778 8,732 13,587 44,098
Labor and Industry 2011 PA New Hires In 2010
8,273 63,453 71,726
Considine 2010New York 314 Wells 8,196 2,992 4,540 15,727Weinstein and Clower 2009New York 400 Wells
1,627 438 2,065
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L & I Report Fine Print(not only all new hires, but indirect industries include): “Marcellus Shale Ancillary Industries (NAICS): Fossil Fuel Electric Power Generation (221112); Natural Gas Distribution (221210); Water Supply & Irrigation Systems (221310); Sewage Treatment Facilities (221320); Water & Sewer Line & Related Structures Construction (237110); Nonresidential Site Preparation Contractors (238912); Industrial Gas Manufacturing (325120);Iron & Steel Mills (331111); Iron & Steel Pipe & Tube Manufacturing from Purchased Steel(331210); Mining Machinery & Equipment Manufacturing (333131); Oil & Gas Field Machinery &Equipment Manufacturing (333132); Specialized Freight Trucking, Local (484220); Specialized Freight Trucking, Long-Distance (484230); Lessors of Other Real Property (531190); Construction, Mining & Forestry Machinery & Equipment Rental & Leasing (532412); Engineering Services (541330); Geophysical Surveying & Mapping Services (541360); Testing Laboratories (541380); Environmental Consulting Services (541620); Remediation Services (562910); Commercial & Industrial Machinery & Equipment Repair & Maintenance (811310).”
“While the vast majority of Marcellus Shale employment can be found in these industries, not all establishments in these industries are necessarily involved in Marcellus Shale. “12
Name of Study
Direct Jobs
IndirectJobs
Induced Jobs
Total Jobs
Considine et al.2010Pennsylvania 700 Wells
21,778 8,732 13,587 44,098
Labor and Industry 2011 PA New Hires In 2010
8,273 63,453 71,726
Considine 2010New York 314 Wells 8,196 2,992 4,540 15,727Weinstein and Clower 2009New York 400 Wells
1,627 438 2,065
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“Broome County Study”
16,272 “Person-Years” Over 10 years = 1,672 Jobs for 10 Years
Why So Low? Assumes Economic and Worker “Leakage”
Meanwhile, Considine Studies Assume All Royalty spending will be local and immediate
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Phases of Development
Drilling/Development (months/well, years for entire region)•Construct access roads, well pad, local collection pipeline•Drill & fracture well
Production (decades)• Truck water from well site, monitor natural gas production• Refracture well if necessary• Reclaim some disturbance
Reclamation• Remove surface equipment, plug well• Restore landscape
(Source: Jacquet)18
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Drilling &Development Phase
Only needed when and where drilling is occurring
Long hours,Tough WorkGood Pay
© Copyright 2005 Tim Matsui www.timmatsui.com
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Production Phase
Needed for as long as gas is produced
Safe Stable job, long term,SmallerWorkforce
What Kind of Jobs?
MSETC STUDIES FOUND:
420 Individuals Perform 150 Occupations to Drill one 1 Well.
11.53 Drilling Phase FTE’s Per Well
0.18 Production Phase FTE’s Per Well
98% of Jobs related to Drilling Phase Only.
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•Industry will hire local workers if they are available.
•Jobs are not for everyone!
•Require very long hours
•Require Specialized Training
•But do not require advanced degrees
In General:
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•Training Programs:
•Offer “Orientation to the Industry”•Work Schedules•Terminology•Types of Equipment
•Safety Classes designed for industry
•Basic Skills classes such as heavy machinery, CDL, Instrumentation, Mechanics, Welding
•Many focus on long term “production jobs”
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Students perform gas well operator functions on training equipment located on the Western Wyoming Community College Campus in Rock Springs, Wyoming. (http://www.wwcc.wy.edu)