SBDC Shale Energy Services

Small businesses, regardless of proximity to a primary drilling location, may be able to take advantage of Marcellus Shale supply chain opportunities to grow their business. Through a strategic business plan to enter the market, savvy business owners are able to find new opportunities in this expanding industry in Pennsylvania.  Contact your local SBDC today or sign up for a Shale 101 workshop in your area to learn more.

Is your business a small manufacturer involved in the shale energy supply chain in Pennsylvania?  The Pennsylvania SBDC is looking for small firms to take part in its newly-launched Shale Supply Chain Services, which provides on-site recommendations for small businesses to improve efficiencies and output at their facilities.

Companies who participate will benefit from the Pennsylvania SBDC’s trained Environmental Management Assistance Program (EMAP) consultants who will advise program participants on source reduction and lean manufacturing concepts.  Utilizing EPA’s E3 (Energy, Environment, Economy) framework, recommendations will focus on continual improvement to the manufacturing operations with regard to productivity, energy and environmental performance.  

These no-cost services, offered through EMAP include:

• Conducting on-site assessments using existing simplified approaches specifically developed for small manufacturers in the shale energy supply chain to identify and prioritize opportunities to reduce costs, reduce waste, and improve productivity and efficiency.
• Conducting in-depth lean manufacturing assessments at manufacturers in the shale energy supply chain using EPA’s Lean Suppliers Network Technical Review process.
• Providing assistance through the Pennsylvania SBDC network for finding sources of financing for implementing source reduction, energy efficiency and pollution prevention projects.

SBDC Shale Energy Assistance

To date, the Pennsylvania SBDC has worked with more than 329 clients logging over 14,410 hours in 48 counties to acheive the following results:

• Investments - $48M
• Business Started or Expanded - 58
• Business Plans Completed  - 89
• Total Sales - $340M
• Jobs Added - 331
• Jobs Saved - 451

Below is a map showing clients assisted by Pennsylvania SBDC's Shale Energy Services:

Pennsylvania Shale Industry Outlook

• By 2020, the industry will provide a total economic impact of $18.8 billion and 211,000 jobs for the Commonwealth, along with nearly $1.8 billion in state and local tax revenues.
• Enormous economic impact on the state which can be both direct and indirect
• Reserves projected at nearly 500 trillion cubic feet
• Gas supply estimates: 30 – 100 years

Economic Impact

• $4 million is invested in producing each Marcellus Shale well
• At 2,500 produced annually, Pennsylvania can expect to see $10 billion invested in well site operations alone
• Each mile of Marcellus pipeline represents nearly a $1 million investment into PA’s economy
• For every $1 invested in the state by Marcellus producers, $1.90 in total economic output is generated  

Below is a map showing the Marcellus Shale in Pennsylvania:

Impact Studies

Marcellus Royalty Payments Rising Rapidly, Allegheny Institute, May  2013

The Economic Impact of the Value Chain of a Marcellus Shale Well, University of Pittsburgh, Joseph M. Katz Graduate School of Business, August 2011

The Pennsylvania Marcellus Natural Gas Industry: Status, Economic Impacts and Future Potential, The Pennsylvania State University, College of Earth and Mineral Sciences, Department of Energy and Mineral Engineering, July 2011

Pennsylvania Statewide Marcellus Shale Workforce Needs Assessment, Marcellus Shale Education & Training Center (MSETC), June 2011

The Economic Impacts of the Pennsylvania Marcellus Shale Natural Gas Play: An Update, The Pennsylvania State University, College of Earth and Mineral Sciences, Department of Energy and Mineral Engineering, May 2010