Saturday, October 20, 2012

Morning over the Alleghenies

No time to parse, but some might want to see the latest promo piece (too long to be advertisement...  certainly not a documentary so I am not sure what to classify it as) from the MSC folks on all things Natural Gas in Pennsylvania:

If I were to  parse a bit I would start with the repeated story I heard in there again that shale gas development is creating some new boom in manufacturing employment in Pennsylvania.  Maybe in the future, but if someone wants to look at the recent trends in manufacturing employment in either Pennsylvania or even just the Pittsburgh MSA I just don't see how you can say it yet.. It clearly is usually stated in the present perfect continuous. That certainly is how people are taking it and a repeated conversation I will get into will be with folks who believe manufacturing employment in Pennsylvania is not just up, but up a lot in recent years because of shale gas related developments.  Actually if you check the previous links the the manufacturing employment in both Pennsylvania and Pittsburgh took pretty sizable hits just in the September data just out which is a story unto itself and there has not any palpable growth in years.

and Good Morning Wiz.


Anonymous Wiz said...

Good afternoon; this long distance bromance isn't working....we should do lunch.

There is no doubt that gas drilling has sparked a lot of manufacturig jobs. The problem is that the data you cited is too general as it is just "manufacturing" without breaking it down in more detail. It is entirely possible and even probable that as gas-related manufacturing has increased, coal related manufacturing has decreased.
Coal uses lots of specialized equipment like conveyors, graders, augers, heavy equipment, long-wall grinders, and more. As EPA restrictions come online and coal-fired electricl plants shut down a lot of the suppliers to the coal industry will suffer. It is probable that coal companies are already reducing orders as they anticipate reduced demand for coal.
Even gas-fired electrical generation plants use less equipment to operate than do coal-fired plants. You asked a year ago if anyone knew the differnce in man hours it was between coal and nat gas energy supplies. Same could be asked about the manufacturing supply stream for each industry.
All that being said, the lower energy costs of nat gas is causig an increase in manufacturing outside of the supply stream for the industry. And we are in the very early stages of that manufacturing boom. I have attended several seminars, and am going to one Monday, where economic development experts state that the next ten years will see a huge increase in manufacturing nation-wide due to nat gas and its related constituents.
To quote Range Resources...."Drilling is just the beginning."

Saturday, October 20, 2012 1:47:00 PM  
Blogger C. Briem said...

Next time I take the yacht to Bermuda I will stop in.

But thank you for the clarification. In fact, the next time I hear someone from the industry say that manufacuting is booming because of natural gas production I will send them to you to explain they should just be saying manufacturing related to shale gas is booming... not manufacturing broadly.

Yes... regulation is killing coal. Nothing to do with natural gas. I didn't believe any of that about substitutes in economics class myself either.

Saturday, October 20, 2012 2:01:00 PM  
Anonymous The Wiz said...

No need to be so snarky.... All I did was point out something you didn't....see if I try to help you again.


Sunday, October 21, 2012 1:44:00 PM  
Anonymous MH said...

Apparently, the guy who wrote about oil has now moved to gas. I can't actually read the article because I don't subscribe.

Tuesday, October 23, 2012 1:36:00 PM  

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