We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you!
Presentation is loading. Please wait.
Published byAlly Kinder
Modified about 1 year ago
© 2011 Strategic Innovations, LLC Northwest Pennsylvania Oil and Gas Hub Business 2 Business Forum 6/28/11
Natural gas exploration is driving torrid growth in PA Gross Economic Impact Revenues: All Industries$4,226 million Revenues: Manufacturing$376 million Manufacturing Jobs>800 Natural Gas Potential489 trillion ft 3 (2008 dollars) Sources: Pennsylvania State University Department of Energy and Mineral Engineering, Pittsburgh Business Times, Team analysis. p. 2 © 2011 Strategic Innovations, LLC
Notable projects highlight “where the action is.” Appalachian Gateway Owner: Dominion Purpose: to transport new Appalachian gas supplies (mainly from the Marcellus) to the market Scope: 110 miles of 20”, 30” and 40” diameter pipelines cut through West Virginia and Western Pennsylvania; 4 new gas compressor stations Timeline: transportation to begin in September 2012 Status: pending Federal Energy Regulatory Commission approval Mariner Project Owners: Markwest Liberty Midstream Resources, Sunoco Logistics Partners; supports producers Range & Chesapeake Purpose: to transport 50,000 barrels/day of Marcellus to Gulf Coast markets Scope: construction of 45- mile pipeline from Houston, PA plant (Markwest) to Delmont, PA (Sunoco) to process and fractionate gas Timeline: service to begin by the 2nd quarter of 2012 Laurel Mountain Midstream Owners: Williams and Atlas Pipeline Partners; serves Atlas Energy and other, third-party producers Purpose: natural gas pipeline expansion Keystone Pipeline Owner: Dominion Purpose: will take natural gas from Southwestern Pennsylvania to Chester County, where it will connect to several other lines Other Owner: Tennessee Gas Purpose: expand capacity to accommodate growing volumes of gas from the Marcellus Shale Scope: install 128 miles of pipeline in Eastern Pennsylvania and New Jersey to serve the northeastern US p. 3 © 2011 Strategic Innovations, LLC Sources: team analysis.
Know the game: “E&P 101” Natural gas (e.g., Marcellus Shale) exploration is based on deep well, horizontal drilling, which differs from traditional shallow well, vertical drilling. “E&Ps” or “exploration & production” companies lease land in order to explore and/or produce natural gas. E&Ps are like “general contractors”—primarily manage project, lease land and operate sites after completion. Pre-production phases of E&P: site preparation, drilling, completion & reclamation. Sites operate 24 hrs/day, generally Monday – Saturday Drill sites demand high response & service by $65K/day operating costs dictate minimal downtime. p. 4 © 2011 Strategic Innovations, LLC Sources: Range Resources speaker notes, 2011; team analysis.
Drilling & Completion are where the most goods and labor are consumed. What? Geologic investigations Site leasing & production agreements, permitting Contracting for construction Well operations & refining (long-term) Product sales Who? Consol Energy Range Resources Atlas (Chevron) Chesapeake Energy 2010 Revenues (est.): $4.5-$5B Exploration & Production Transmission & Distribution End Users What? Product transport from wells to treatment & distribution facilities Transmission (longer range)to end markets Who? Markwest Dominion Sunoco Logistics Partners Drilling & Completions What? Site preparation—roads, rig setup Drilling—around the clock to gas formation, casings installation Fracking—liquid pumped into well to fracture provide conduit for gas to flow to surface Completion—wellhead and production equipment installed Who? (MS wells drilled) Talisman (260). Chesapeake (181) Shell (180) Range Resources (133) Others (205) 2010 Revenues (est.): $0.9-$1B Sources: Pennsylvania State University Department of Energy and Mineral Engineering, Pittsburgh Business Times, Team analysis. Key industry forces play out here… ➡ LABOR AVAILABILITY ➡ GOVERNMENT POLICY ➡ PUBLIC PERCEPTION p. 5 © 2011 Strategic Innovations, LLC
Statistics highlight opportunities for service, material, equipment providers. Pipe: steel drill pipe (5” diameter), other tubular goods, aluminum (fresh water) yellow mine pipe, black HDPE. Water: for fracking (350K gallons per impoundment, 3 wells per impoundment); 3000 loads per month. Sand: (40-50K lb loads)—14K loads / month. Auxiliary equipment: tanks, solar panels, electronic systems. Service: field machine shops—high response (within an hour). Fuel & Transportation: diesel electric rigs burn 2000 gal/day, 148 rigs currently in operation statewide moving rigs from site to site. Warehousing & logistics: all equipment. Engineering: environmental and process design and compliance. Business services: insurance and finance. p. 6 In most cases, suppliers will contract with suppliers to the E&Ps, not the E&Ps themselves. © 2011 Strategic Innovations, LLC Sources: Range Resources speaker notes, 2011; team analysis.
Workforce development will be a key to supporting the industry’s growth. NEEDS “Drilling” workforce demands are varied, with a majority associated with field work. Environmental & economic policies, as well as public perception, are dynamic and uncertain. Differentiated workforce development partners will be those with the functional expertise, efficient delivery and timely content to ensure compliant, efficient and uninterrupted operations. Sources: Marcellus Shale Workforce Needs Assessment, Southwestern Pennsylvania; team analysis. p. 7 © 2011 Strategic Innovations, LLC
Experience demonstrates the importance of knowledge and relationships. Examples Launch of software products business for transportation safety, compliance and more efficient operation. Introduction of a seasonal driver service to add important capacity in cold weather months. p. 8 © 2011 Strategic Innovations, LLC Success Factors Subject matter expertise. Current awareness of issues, needs. Visible, professional and service-oriented image. Industry dedication, investment.
Strategies to accelerate learning, support market entry Leverage existing relationships (customers, suppliers, etc.) as development & entry partners for products & services. (Is anything you already offer have value?) Avoid knee-jerk entry. Don’t forget who was here first (oil, gas, coal)—might become ‘white space.’ Engage industry consortia to more efficiently network, evaluate opportunities, test ideas and stay up-to date. Consider use of subject matter experts to accelerate relationships, exposure and efficient use of resources. p. 9 © 2011 Strategic Innovations, LLC
p. 10 © 2011 Strategic Innovations, LLC
DISCLAIMER The findings and recommendations contained in this report are based on Strategic Innovations' independent analysis, but also rely on information supplied by sources believed to be reliable. While every effort is made to use Strategic Innovations' knowledge and experience in the industry to prepare this report, and Strategic Innovations warrants that it has and will perform its duties in a workmanlike manner in accordance with commercially reasonable standards, Strategic Innovations does not guarantee the accuracy, adequacy, or completeness of any information provided by Strategic Innovations or other sources and Strategic Innovations is not responsible for any errors or omissions, or the results obtained from the use of such information that is provided by this report. The information in this report is provided without warranty, express or implied, including but not limited to any implied warranties of merchantability or fitness for a particular purpose, and is used at the user’s own risk. The opinions contained in this report and all Strategic Innovations communications reflect our judgment at the time of writing and are subject to change without notice, including without limitation in connection with changes in the laws and regulations cited in this report. IN NO EVENT SHALL STRATEGIC INNOVATIONS BE LIABLE FOR CONSEQUENTIAL, INCIDENTAL, PUNITIVE, SPECIAL, EXEMPLARY OR INDIRECT DAMAGES OR EXPENSES (INCLUDING, WITHOUT LIMITATION, LOST PROFITS OR OTHER ECONOMIC LOSS, LOST REIMBURSEMENTS, LOST DATA, OR LOST SAVINGS), EVEN IF STRATEGIC INNOVATIONS WAS ADVISED OF THE POSSIBILITY OF THE OCCURRENCE OF SUCH DAMAGES. p. 11 © 2011 Strategic Innovations, LLC
1 The Path and Safety Challenge Associated With the Marcellus Shale in Pennsylvania Stephanie Catarino Wissman Executive Director Pennsylvania Governors.
Economics and Financing of Geothermal Projects Presented by R. Gordon Bloomquist, Ph.D. Washington State University Extension Energy Program (Retired)
PLANNING THE AUDIT Individual audits must be properly planned to ensure: Appropriate and sufficient evidence is obtained to support the auditors opinion;
Logistic Management in Renewable Energy Industry e-Course Introduction ELOMPRES LdV Transfer of Innovation.
MFG Assessment Application: Assessment Criteria and Metrics 1 Performance assessment criteria and metrics may be used as the basis for determining the.
Opportunities for Green Investment 17th November 2008.
Measuring innovation TRAINING WORKSHOP ON SCIENCE, TECHNOLOGY AND INNOVATION INDICATORS Cairo, Egypt September 2009.
Microsoft Dynamics AX Name Title Microsoft Corporation Industrial Equipment Manufacturing.
By: Jacob L. How much money does an engineer make? Most make about 50,000 to 70,000 as beginners, but experienced and mid level engineers can make around.
UNIT I FUNDAMENTAL OF E-COMMERCE 1.1INTRODUCTION TO E-COMMERCE 1.2 DRIVING FORCES OF E-COMMERCE 1.3 BENEFITS AND LIMITATIONS OF E-COMMERCE 1.4 DATA MINING.
What is shaping the public sector industry. Current and future trends in Government. FOR HP INTERNAL USE ONLY.
January 25, 2010 Metropolitan Business Planning Initiative Project Kick-Off Meeting CONFIDENTIAL – for Internal Team & Partner Discussion ONLY.
Software Gets Smarter Artificial Intelligence in the Enterprise Dr Kaustubh Chokshi CEO, Intelligent Business Systems.
Page 1Company presentation INTERPIPE. Page 2Company presentation 7LLD09610_Client Screenshow The materials contained herein (the Materials) have been.
Beyond Fleet: Understanding The Strategic Value of Your Fleet Professional 1 Presentation © 2012 NAFA Fleet Management Association All Rights Reserved.
Permission to reprint or distribute any content from this presentation requires the prior written approval of Standard & Poors. Copyright © 2011 Standard.
REVIEW OF FERCS FINAL EIS REPORT BROADWATER LNG PROJECT (Project) Broadwater Energy LLC and Broadwater Pipeline LLC Docket Nos. PF-05-4, CP , and.
0 Case Study: Plum Point Energy Project Financing a Public Power Minority Investment in a Developer Sponsored Merchant Coal Plant Edward P. Meyers Goldman,
BUSINESS SENSITIVE 1 1 Battelle Technology Partnership Practice August 29, 2011 Ohio Third Frontier: Targeting Growth Opportunities for the Next 3 to 5.
Insert your company logo here (on slide master). Insert your company logo here (on slide master) Developed by the Department of Communications, Information.
Local Agency Certification Training The Nuts and Bolts of Insurance March 12, 2010 Ronda Hollis, CPCU ODOT Intergovernmental Agreements and Procurement.
The Regulatory Assistance Project 177 Water St. Gardiner, Maine USA Tel: Fax: State Street, Suite 3 Montpelier, Vermont.
© Copyright Pursuit Dynamics PLC PDX® Quarterly Briefing April 27 th 2010.
ISO INTRODUCTION In the present day, environmental matter is not limited only in one country or specific area. The environmental impact effects.
Aleš Tomek Faculty of Civil Engineering Department of Construction Engineering and Management CZECH TECHNICAL UNIVERSITY IN PRAGUE Nature of Construction.
Copyright © 2007 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Developed by Cool Pictures and MultiMedia Presentations PowerPoint.
The Project Cycle Management Course presented by Simon Pluess World Alliance of YMCAs.
Webinar #10: Trading Market Fundamentals Moderator:Sonia Hamel, New America Foundation Speakers:Olivia Hartridge, Morgan Stanley Gia Schneider, Credit.
July 2001 McKinsey Research Project A new regime for innovation and technology management in the E&P industry.
Copyright © 2007 Reverse Logistics Association Welcome Reverse Logistics Association Amsterdam Seminar June 25, 2007.
© 2016 SlidePlayer.com Inc. All rights reserved.