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Marcellus Shale Talk
Marcellus Shale Talk 
Our group the CHS Business Department Point of view from the business aspect for our opinions overall is it is constantly bringing in more business for the around and make more jobs. But not only that, but it is bringing in their own businesses and creating more jobs than we have ever had before. This also has its downfalls though. The natural gas companies need to hire more of the local residents instead of bringing in people from out of the area, and stop sending our locals out of this area. One big thing that is in many of the articles we read on the Marcellus e shale forum is that this drilling is taking our green lands and destroying them. Our advisor for this project interviewed a particular business that built and stocked up on special clothing and everything that you would need to go onto a site and this local business said that “ there stocking and business could not be any better and they are making money more than ever”. But, our personal opinions on this are that what if the gas wells and gas industry companies decide to pack up and leave now? These local businesses are over stocked of inventory with the gas industry and now they cannot get rid of it and now are losing money. Another view would be from the water truck business of gas wells. The natural gas companies are finding new and improved ways to frack so, they don’t need as much water which is causing the locals and out of state or town people that has invested millions of dollars into buying water tankers and trucks and paying massive payments are not basically as we calling them “sitting ducks” and are losing money and are causing these companies to have to sell out because they can’t make enough money to keep them going. Giving you all this information our group thinks that this drilling should be permitted because just like everything else in life, everything has its problems and its advantages.
Bros 4 Life
Hey hello everybody, we just wanted to take the time to state our opinion on your situation. We agreed with most of your response. But, we as a matter of fact believe that even though it is a good idea to hire local employees to work for the Cobalt Gas Company. But, we think that this is a really difficult goal to fullfill in such a short period of time because fracking is a complicated process that requires months if not years of training and work. That process would cost more money for Cobalt that we don’t believe they are willing to invest. Also, bringing employees from Philadelphia or other areas would improve local bsuiness sales and consumer economy. We hope that this aids in your future business and wish you all the luck in fixing these problems safely, proficently, and most importantly safely.
Bros 4 LIfe,
Do you believe that over time the locals could be introduced into the jobs that foreigners once filled? If the fracking process takes time the local jobs being introduced could then be given to the youngsters looking for jobs in the community.
– John Smith
there are many people from our community that work on gas wells and work for different companies. we are from bradford county where the gas industry is booming. i know hundreds of local people that are making good money on the gas industry. sincerely, CHS
There are locals already working for the gas industry but they need to bring in more. It don’t take as long as you think to learn the esentials on fracking. We locals can do just of good of a job as the out of towners. We are in the dead center of the industry. Our economy is relativly well so far but again there are the difficulties, no offence but we see more of what is happening than what you do.
We have a rather large fracking company who set up regional headquarters right next to our school. Many from out of the area followed the company to our loaction, but the company is over time training and hiring many local individuals. The timeline is not that intense for one who really wants a job in the industry and the industry is very willing to train those who are good potential employees. Therefore, with respect to the scenario presented, we would encourage a permit being granted for the drilling scenario. This drill site is not far from our school and therefore will continue to potentially help our economy. Hojo
CHS,
DO you think the government can do something for giving back to the local businesses? What I was thinking is the locals gain the right to collect taxes from the companies, therefore building a large inventory for when the economy gets worse in the town, such as when the fracking ends.
– John Smith
Are you saying that the businesses should get a portion of the money being made by the companies considering what they are doing for our busineses? If so honestly i think the businesses are getting enough money because of the products that are being sold on the shelevs. Therefore creating more profit.
There hasn’t been any slump in the business dept. at all. All businesses are still busy. People won’t be leaving our area any time soon, especially bradford county. Things such as mini marts, clothing stores and even coffee shops are full because of all of this.
Dear CHS Business Department
Your paper discusses two problems or concerns with natural gas drilling yet still supports the permit process. Please share your reasons and research what you believe are the advantages for the local businesses in the area so we can better understand the reasons for your decision.
We permitted this because there is always going to be problems with any recourse, we may have our ups and downs about gas well drilling but we really have no say. yes it is doing good for our business.
Shaletalk 2
Please provide details from the research on the E forum on how the local businesses are flourishing. I am glad to hear you are doing well but tell us the facts please.
The local busineses are flourishing because they were able to expand their business and bring in many new items and be able to make much more profit then when they were not here. They are needing to hire new people just to keep the businesses going because they are doing so well.
The gas well industry brings in business for everything anywhere from restaurants to clothing stores and mini marts. It helps everyone in our community, any problems that ARE caused by the gas industry are paid for by the gas industry. There isn’t really a negative thing about them with helping businesses out. Some companies such as talisman energy and chesapeake even donate money to the towns to help make them better. -luke warmwater
Dear Luke Warmwater
It would be helpful if you could share some specific examples of how the companies have donated money to the local communities to support various causes. Specific examples and facts will broaden everyone’s understanding.
From reading your post, my understanding is that you are for gas well drilling. I agree that it does bring in good money, but it costs a lot to keep this business going. It costs to repair the roads to our businesses. Yes, the businesses are making money because they are bringing in newer products. Even though they are making money, it costs a lot to keep everything in stock
My group and I completely disagree with CHS Business Department. We believe the people coming into the towns for these jobs are just problems that will make the future even worse for the industry of gas well drilling. These people from the South are not natives to our area in Pennsylvania what so ever. Thanks you for the topic though, please give us your perspective.
Bobby Bouché
Dear Shaletalk2
It is true that many gas drillers travel for their jobs. How does this “make the future even worse for the industry of gas well drilling?” I don’t see the connection. Please explain.
CHS Business Department,
I do agree with you. While the towns affected are prospering now, what happens in the future when the economy is struggling again because the gas companies have to move again, leaving the companies that were flourishing struggling to get by? The income and revenue are very helpful right now and hopefully some of it can carry over into the future if such a tragedy does ever occur. I can attest that most of what is occuring now is good and I just hope it stays that way.
The Town Mayor
Bros 4 Life
Hey helllo everybody, we are the representatives for the local businesses in Lycoming County. We are overly positive about the idea of hydraulic fracturing in our area. Natural gas is a “clean” source of energy. When natural gas is burned, it emits only half the amount of CO2 (carbon dioxide) compared to coal. If natural gas from the Marcellus Shale replaces some of the coal and oil used for energy in the U.S., emissions of greenhouse gases CO2 and some of the chemicals that contribute to acid rain when coal is burned SO2 can be reduced. Our local markets, here aren’t really flourishing, and this new proposal would attract a lot of new customers, and would therefore be really good for us. A Penn State University estimate shows that there is now enough gas in the Marcellus Shale to supply the entire U.S. for more than 14 years. Obviously, the Shale is not going to be tapped all at once and will not be the sole source of gas in the U.S., meaning that wells in Pennsylvania will provide a source of natural gas for decades. It is estimated that natural gas exploration could lead to more than 100,000 jobs statewide. This is an example of how hydraulic fracturing helps local communities and businesses like us. We would like to give the rights to drill in our area to Cobalt Gas company.
I agree with your support of the shale development but please could you state how this will help local business. With the amount of natural gas being exploited it is a boom. Similar to the gold rush, this shale gas will run out causing a decrease in business.
Could you produce the source of your job statistic in, “lead to more than 100,000 jobs statewide”? Also, could you adress how the natural gas drilling in Lycoming County directly impacts your buisnesses? Giving examples of different buisnesses that would be impacted could be more helpful for persuading people to your cause.
Oh my! I am so sorry it was just a typo thanks for pointing that out friend! You are correct there are 200,000 jobs being created over the next 10 years, thanks for pointing it out. If you want to read more about this you can read this fun and interesting article.
http://www.post-gazette.com/stories/local/neighborhoods-south/natural-gas-could-fuel-job-boom-250516/
I am part of the Chs business Department group and I agree that Natural Gas is one of the cleanest recources around but it is still very bad for our enviroment. I think that you need to focus more on the business aspect of this situation and not on how well drilling is or not. and not only on the jobs it may bring but also the good and bad on the business itself and surrounding it. Such as parking lots on the space and the traffic it causes for the business and also focus on the inside of the business too like what is in the place too whats on the shevles and what will happen if the gas wells just up and leave what would happen.
Hey Bros 4 Life!
I’m a hunter. So I’m not too keen on this drilling for Marcellus Shale. However, I can see how you support the drilling for natural gas because it is cleaner to burn rather than coal or oil. That’s good for the environment, and I like the environment. Now, I need a little help with some specifics here. You said that it will provide 200,000 jobs over the next 10 years. That’s crazy! How exactly will that happen, though? Also, I know you’re representing the local businesses of Lycoming County, but I’m curious as to what businesses you represent exactly? Other than that, I can see your point on how Marcellus Shale could positively affect local businesses.
PA Hunter,
Ronald Rubarb
Bros 4 Life,
You did a good job in showing how your businesses are doing well if the drilling takes place in your area of land. I am an employee to the environmental protection agency. If this drilling is clean to our atmosphere like you have said, than it is fine with me to keep the drilling going, as long as it doesn’t cause damage to our environment.
Bros 4 Life,
I agree with you completely. I am a town mayor and in my town the drilling has really improved our economy. I also agree that natural gas can be safer and cleaner than other forms of drilling or extracting. The amount of pollution created from these drilling can be substantially less than others. This can also create a drop in the more toxic substances put into our air from other sources of fossil fuels. If you would like a reference to where I found this information you can look at:
http://www.pickensplan.com/natural_gas/
Billy Timmons, Hotel Owner
As a the owner of the newest hotel in the Marcellus Shale region I am grateful for the Marcellus Shale coming into the area. These people working for the shale companies are staying at my hotel for months at a time. The demand for rooms in my hotel and other hotels are overwhelming. Before the drilling company came into the area we would of never even thought for a second of putting a hotel in the area where we are now. Then after seeing the the hotels in this area thrive we built a hotel there and now we are booked almost every night and are bringing in a lot of money.
Our new hotel in the Marcellus Shale region is one of our most reliable sources of income. We are starting to think about developing more hotels in other Marcellus Shale areas. Here are some impacts the Marcellus shale has on the local economy. Recent studies show that there are about 489 trillion cubic feet of gas can that can be taken in from the Marcellus shale formation in Pennsylvania.This can then end up to be a total gross value of $1.46 trillion. The Pennsylvania economy in 2008 was about was $499 billion. That is a total personal income. The relative local economic amount will be bigger than this although because counties with Marcellus are a usually small amount of the commonwealth’s economy, and is adding up for only $207 billion. State law says that gas rights owners be paid at the least one-eighth of the value of production from gas wells, which means a large amount of the value will go straight to them.
All of this information may be confusing. In the end all of that information means that we are making money. It shows that all of the money is coming back into the local economy. For example on any given night you can walk around in the small downtown area around my hotel and you will see lines out the door for the local business and restaurants. This is great and the city is really thriving. Another example that shows that the local economy is doing better is that the small restaurant in our hotel next to the lobby is doing amazing and is filled up all night. The other hotel restaurants that we have are in much larger cities and do not have nearly as many visitors and do not make as much money. The city may also be in need of another hotel soon. The one issue that we do have with all of this is we don’t know where we will be in ten years. We don’t know if all of the gas and drilling will be here in a couple years. If all of the drilling companies leave the economy will be going down to where it was before and we will have a hotel that will not be filled. Overall though the local economy is doing much better currently because of all the drilling.
Hi, Billy we read your post. We respect your business, but we believe that there are better ways to generate revenue without relying on the Marcellus Shale drilling. Perhaps you could find alternate ways of succeeding from business standpoint because the drilling is causing environmental damage and costs unnecessary amounts of money to the government. We believe that better promotion of your businesses could increase the amount of customers without negatively affecting the environment. On one last note, where are you finding these statistics? Is your information accurate?
Thank you for commenting on my post. As a hotel owner this is the best way to generate revenue in the rural areas. As for the stastistics they are all accurate and can be found online.
-Billy
As landowners we think in your article you have to include how much money that landowner should get individually. We also think that you should explain in more detail why the economy would go down if all the marcellus shale drillers went away? About how long will the miners stay in the area?
Thank you for commenting on my post. You can go to the landowners page for information on the landowners. If the drillers go out of the area it will be like the gold rush going out of the California.
-Billy
Are there any plans for the future when the boom is over? Have you prepared at all for when this event occurs? Also, how does your hotel in this area compare to your other hotels in other cities.? We hope your business thirves for many years to come.
Thank you for commenting on my post. Yes there are plans for when the boom is over. One example is the size of the hotels in the boom area are much smaller than the hotels in the cities. We could make them bigger but we know the boom will eventually end. We also plan on using the hotel as a conference center when the boom is over. Thanks,
-Billy
Dear Billy, I am from the CHS business group. I think you should just stick with the one hotel. It would be great to have more hotels and make more money, but then again, when the gas industry leaves you will lose thousands of dollars and your hotels will be empty. It would be great for the moment but in the long run you’ll have to ask yourself if it would really be worth it. You will do what you think is best!
Sincerely, Luke Warmwater
Also, Billy, I’m just curious as to where you live and how busy the gas industry is, please let me know.
Thank you, Luke Warmwater
I understand that you are making money by having this hotel but what will happen if the gas wells just up and leave? Will you lose all that money and have to go bankrupt? or what will happen?
Mr. Timmons, this is what we want to see. A local business in a small town thriving because of natural gas. I understand in today’s economy that small businesses are having trouble, and I believe this a solution to fix it. Not only will Billy’s hotels revenue increase but everyone’s in that area. This will cause people to have more money which they will use to buy cars and other various items.
Governor Robert “Bob” Jones
Local Businesses: BEN Corporation
Marcellus Shale is a new development in our environment. Fracking is an on-going developing process within Marcellus shale. It affects many of the local business as well. Fracking is very good for business in the areas it takes place in because there are not many people or animals. So local businesses and infrastructure are all affected and improved by this development.
First, local businesses are very affected by this development. With this development occurring, people are open to job opportunities with good money. As more people come to do so, local businesses are helped. Grocery stores and restaurants are all needed to provide food for the workers. With more workers coming in, the grocery store and restaurants money will increase helping the businesses to prosper. Then hotels, apartments and housing developments will also benefit. People need a place to stay so many will buy apartments and houses. Or stay in hotels and leave on weekends to visit family. Either way these retail and hotel local businesses, will benefit as money increases with more employees and people coming.
Second, road development and electrical work is a huge process for a place that may now need to be industrialized in a short period of time. It will require many workers who may not have that much work in such a rural area. So therefore, fracturing makes a huge demand for construction workers to build and pave roads, engineers to design and build the wells, and electricians to make sure there is enough light for when it gets dark, whether it be stadium lights for the well itself, or street lights for the way home.
Lastly, Marcellus Shale coming to a city would greatly increase both the morale of the city and the city’s economy. For example, hotels that were barely getting any business would now be getting more business because of it. There are workers who are in need of a place to stay, and once place that logically makes sense would be to stay in a hotel. Staying in a hotel offers a cheap way to be sheltered for a temporary amount of time. Because there are more people staying in these hotels, there are going to need to be more workers in the hotel which would also help the economy. There would be a need for more maids, more people to cook food, and more people to sit in the lobby at the check-in desk.
Amazing job!! Perfect explanation!! Nailed it!! Can we hear more on your thoughts??
Local businesses are sure to benefit for the short term but what about long term economic boosts? Any ideas or thoughts how businesses can prepare for the eventual decline? I am intriqued by the housing/rental/hotel aspect. Rents in Bradford County were raised drastically(almost doubled) for the gas workers. Although this benefited the owners, this left many locals without access to reasonably priced places to live. Any thoughts or solutions? Many hotels are also being built to accommodate the industry and will provide numerous minimum wage jobs but for how long? What will become of these establishments when the “rush” is over?
Ringo Star, Restaurant Owner
The business done by various natural gas drilling companies has experienced rapid growth in recent years, particularly within the Bradford County area. The target of these companies is subterranean deposits of natural gas that can be extracted from the Earth in rural areas such as those of our own state of Pennsylvania. The companies’ involvement in the surrounding areas has not been without controversy, however, for critics speak of the drilling’s potential to pollute imperative water sources such as the Delaware River (Rawlins, “Marcellus Shale: Feuding over Fracking”). As the owner of a local restaurant in the Bradford County area, I understand that these points are valid; however, the increase in natural gas drilling has led to a surge in business that is not just being observed within my own small establishment.
Before 2008, Bradford County was known for little more than its rural countryside landscapes and abundant wildlife. However, after drilling operations had fully begun to take form, so too did the small towns and cities that dot the Pennsylvanian country side (“Natural Gas Information”, Bradford County, PA). My own restaurant experienced a significant increase in business. Employees of the fracking companies often inhabit the surrounding area for several weeks at a time, staying in local hotels. The workers frequently drift downtown and find themselves at my restaurant or similar businesses. According to a study conducted by Penn State University, thirty-eight percent of food service establishments in Bradford county have experienced increases in sales, proving that the good fortune is stretching far beyond a mere one or two places of business. Bradford County is not the only area experiencing such economic growth, however. The same survey given by Penn State revealed that twenty-nine percent of restaurants found within Washington County have also been encountering an increase in business (“Local Business Impacts of Marcellus Shale Development: The Experience in Bradford and Washington Counties, 2010”, Marcellus Education Fact Sheet). With Pennsylvania’s current unemployment rate rising up to 7.9% this escalation in industry is beneficial for small business owners such as myself who are trying to make it in a failing economy (“Pennsylvania Unemployment Rate”, YCharts).
The employees working at the Bradford drilling sites are not the only new customers I find inhabiting my restaurant. The newcomers who populate the area for a short time act as effective advertising for my business among others. As the employees go home for their deserved hiatus they spread the word to friends and family as to their recommendations concerning hotels, stores and restaurants alike. Individuals traveling to experience Bradford County’s several tourist attractions now are more likely to have heard of my humble establishment via the employees of the now abundant drilling companies. Additionally, locals who see that the restaurant is busy are more apt to come themselves. That is simply human tendency, to gravitate towards those places that others are finding enjoyable.
The last three years have been prosperous times for Bradford County. The industrial boom has resulted in increased population in addition to the immigration of local as well as national drilling companies. Unfortunately, such an economic boom can not last forever. 2012 has shown a decrease in the amount of drilling activity within the county area. The focus of these natural gas companies has shifted to western Pennsylvania where the gas contains more profitable properties, however, drilling within the region does continue to exist (“Pennsylvania’s Busiest Drilling County: Bradford”, State Impact). I have faith that the increased industrialization will still prove to be beneficial for local businesses, such as my own, well into the future.
Works Cited
Kingsley, Jennifer. “Bradford County Residents See Marcellus Shale Development Changing Their Lives.” Press Connects. Gannett, n.d. Web. 31 Jan. 2013
“Local Business Impacts If Marcellus Shale Development: The Experience in Bradford and Washington Counties, 2010.” Marcellus Education Fact Sheet. Penn State University, 2011. Web. 31 Jan. 2013.
“Natural Gas Information.” Bradford County, PA. Bradford County, PA, 2013. Web. 31 Jan. 2013.
“Pennsylvania Unemployment Rate.” YCharts. YCharts, 18 Jan. 2013. Web. 31 Jan. 2013.
“Pennsylvania’s Busiest Drilling County: Bradford.” State Impact. Witf, 2013. Web. 31 Jan. 2013.
Rawlins, John. “Marcellus Shale: Feuding over Fracking.” Action News. ABC News, 25 Mar. 2011. Web. 31 Jan. 2013.
Ringo,
The example of the town of Bradford gas been a similar trend throughout many of the towns of Northern Pennsylvania. I believe it also promotes good business ideas such as the discovery and expansion of a chain to other communities.
– John Smith
Hello again,
we really enjoyed your blog! it helped to prove our theory on the matter of fracking improving and increasing business profits. we figured the local business rates would improve with the new amount of workers entering the local economy. happy it worked out for your business!
Good job overall.
You say that gas wells aren’t gonna last forever and in 2012 they decreased but in the next year or two they are suppose to be coming back and things should be back up and booming again. And business have been doing fine. When gas wells start leaving Bradford County then stores should stop ordering so much stuff. They had to get use to them being here. They will just have to get use to them not being here anymore.
John Smith
I’m a local business owner that supports the development of the Marcellus shale because of the the drilling benefiting my business. I own a chain of businesses such as the local hotel, a restaurant and I’m a land owner. Workers coming to my area will utilize the land I have for drilling, and stay in my hotel, also eat at my restaurant. Due to the influx of workers I will make more money and I will get rich allowing me to expand my business and become a locally known owner within my town. Also the economy of my town will get better making my residents happier. All of these reasons give me justification toward supporting the drilling of the Marcellus shale in my town.
The shale’s development will employ around 8000 workers to the area. These workers will have to live in the vicinity of the drilling and participate in the community. This also means spending money for food at my local store and on my real estate for building. An increase of 8000 people are to be hired a loyalty income of $1 billion dollars to the local land and business owners (Economics powerpoint). These incomes include leasing local equipment such as cranes as well as leasing land from the locals for regional offices. In simple terms the companies are making investments locally. Chief workers will use my hotel when staying, promoting its use and increasing the income of the local workers of the hotel (“Economic Benefits of Marcellus Shale Development” 1). With increased workers living in the area, the local and state government are seeing an increase in revenue due to the 6 percent sales tax and the 3.07 percent income tax on all Pennsylvania workers. This revenue can then be redirected towards ideas and activities that would benefit the environment.
I feel bad for some of my friends because they might have less fishing or the farmers might lose some cattle. One rancher experienced a contamination within his cattle; 60 cattle had to be quarantined due to an increase in triethylene, reducing his cattle ranching to half (Rowan’s video). Fishing within the northeast has an income of $3.4 billion dollars within streams lakes and the ocean. This will greatly decrease because of the fracking fluids use by slowly decreasing the biodiversity of the aquatic biomes (Natalies Powerpoint).
I full heartedly support the new drilling coming to my town because of these reasons, although it may affect some town members in the community negatively, my own businesses will benefit.
As landowners, we think that the prosperity is short-lived. The miners will be gone within a few years, which at that point the prosperity will have take a horrible turn for the worst. Your business might go bankrupt due to so much business per day, then none the next. Landowners, though getting tax brakes for a suspended time, might also have too much money to know what to do with, which might cause us to spend it all in a short amount of time.
I completely agree with you on this, business will come and go, I see myself reaping the benefits while they are they (customers). But keep in mind the major developments in this town will also bring regular people to the community adding business that is long term.
John Smith
This is a good point! People need to be weary of a boom-and-bust economic plan. However, the gas located within the Marcellus Shale is still in plentiful supply. The gas company would be here for many years and not just a few years, allowing for an extended, or permanent, economic surplus.
Dear shaletalk6, I myself am a very wealthy landowner directly from the drilling sites being located on my land. I do not fully agree with your statement that prosperity is short-lived because often times miners stay at their drilling sites for more than just a couple years because it takes longer than you think to obtain the natural gas from the ground. In your previous comment, you also mention that the landowners will blow all their money at one time. I have first hand experience in telling you that every landowner i have known, including myself, have saved their incomes from Marcellus Shale and put them in the bank. This helps pay for college, mortgage loans, medical bills, and car payments. This in return helps boost the economy, which would be a positive long term effect of the natural gas drilling.
Charlie Gordon, Landowner