Western Pennsylvania workers make inroads in landing shale gas jobs
Western Pennsylvania building contractors and tradespeople say they're gradually making inroads into the shale gas business — meaning fewer Texas and Oklahoma contractors' license plates are spotted on area roads these days.
About 1,600 of the 30,000 laborers, pipefitters, electricians and operators in the Pittsburgh Regional Building and Construction Trades Council's territory work for Marcellus or Utica shale natural gas producers, midstream businesses that build and run pipelines or other industry players, said Rich Stanizzo, the council's business manager and chairman of the Builders Guild of Western Pennsylvania.
“We weren't getting any of this work when they first came into town” about four years ago, Stanizzo said on Tuesday as the guild and the Marcellus Shale Coalition hosted a forum in the South Side for about 100 contractors and workers on how to land opportunities in shale development.
Pennsylvania produces about 10 percent of the nation's gas supply, said Dave Spigelmyer, chairman of the shale coalition. About 1,300 wells will be drilled statewide this year, he added.
The industry has created about 234,000 jobs in Pennsylvania, state figures show, and the coalition estimates 93 percent of recent hires are from the state or nearby states in the Appalachian Basin.
Unions “are doing better on the west side (of the state) than the east side,” Stanizzo said, with pipeline companies such as MarkWest Energy Partners LP employing union workers.
Some cite room for improvement.
“We're getting 5 or 10 percent of the work? Why shouldn't we be doing 40 or 50?” said Ken Broadbent, business manager for Steamfitters Local 449, referring to mechanical contractors in the region.
The issue may not indicate an aversion to using union labor, he said, but that companies from the South are more comfortable with contractors they know. “It doesn't make sense to bring workers from Texas and Oklahoma up here to live in hotels and trailer parks, when you've got laid-off building trades workers” here, he said.
McCarl's Inc., an industrial contractor in Beaver Falls, tried for more than six months to win jobs and has about 1,300 employees working on compressor stations and processing plants for customers such as National Fuel Gas and MarkWest.
“We're getting more opportunities,” said Daniel Rains, general manager for business development, adding that while drilling has slowed, construction of infrastructure needed to transport and process gas remains strong.
The gas industry has a long history in the region, but “It's still new to many people in Pittsburgh,” Allegheny County Executive Rich Fitzgerald told the contractors, adding that work must strictly follow safety rules. “All it takes is one problem” to sway opinions.
The county recently signed a $500 million deal with Consol Energy Inc. to produce gas on part of Pittsburgh International Airport's property. Fitzgerald said the deal is a “no brainer” in terms of benefits to taxpayers, but it generated controversy.
Consol, which will start drilling work at the airport in the second quarter of 2014, employs more than 1,200 contractors, said contract manager Ryan Litwinovich. That's double the number from 2008, when the Cecil-based energy company drilled its first Marcellus well.
Kim Leonard is a staff writer for Trib Total Media. She can be reached at 412-380-5606 or email@example.com.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Calgon Carbon poised for explosive growth
- Rural communities can’t shake effects of subprime crisis
- Amid struggles, top fiscal executive to leave EDMC
- FedEx investing another $1.2B in growth projects at FedEx Ground in Moon
- Chevron puts $20M into educating, training Appalachian workers
- Highmark to increase premiums, limit access to health care in new plans
- Proposed limestone mine would straddle Armstrong, Butler counties
- PNC posts higher 3Q profit despite lower revenue
- HBO unleashes streaming HBO Go from cable contracts
- BNY Mellon profits up in third quarter