Friday, June 29, 2012

A Letter From a Fan

Dennis in Pittsburgh sent me this letter via email today...

"Wish you had time to listen to the Marty Griffin show today.  There was a representative from Range Resources on his show.  Just as you have said over and over, salaries for jobs in the Shale Industry average about $70,000.00 a year.  They were talking about the training and how to apply for a job.  From what I heard they did not mention your place by name but they did make a reference that people can go through State job placement agencies.  Training can cost as much as $7800.00 to $0 if you’re unemployed and qualify for the funding. 
They also stated that the main problem for Range Resources and Employment services is that people cannot pass the drug test.  Gave an example…they had 100 people apply for an interview…50 showed up.  Out of that 50 only 3 passed the drug test.

Again they stressed there are jobs out there that they cannot find people to fill!  They also touched on what you have been saying on your show: If people have to pay $8000.00 for training to get a job starting out at $70,000.00 a year with benefits, compare that to $80,000.00 to $100,000.00  in student loans for college just to get  a job making the same or less after graduation.

Wish you could have heard it!"


Thursday, June 21, 2012

Do State Budgets Really Impact Job Growth?

It's the most wonderful time of the year...

Well, not really. It is again that time when State governments will haggle over line items, spending cuts and appropriations.  What does it all really mean in relation to job growth, unemployment and the economy?  Throughout the month of July, Career Talk will examine this very issue.  We begin with the blog, will coordinate related webinars (via www.thealbertinstitute.com) and ultimately interview special guest PA Representative Dan Deasy on the July airing of Career Talk on KQV Radio.

Let's start with an examination of recent job growth.  According to ADP, the private sector added 133,000 new jobs in May of 2012...up from 119,000 in April of 2012.  Job growth in the private sector has slowly but consistently grown since February of 2009 with small, community-based businesses leading the way.  These are the backbone of American business and employ more than 50% of workers in the private sector.  Companies of just 49 workers or less accounted for 67,000 of the 133,000 new jobs created in May.

As the private sector slowly grows, the public sector remains...without question...the drain on the nation's economy.  Since February of 2009, the nation has lost more than 600,000 public sector jobs.  The unemployment rate would be approximately 2.5% less if we still had those jobs.  Philadelphia Mayor Michael Nutter recently appeared on Fox News and discussed recent layoffs 100's of Philadelphia police officers, teachers and fire fighters.  As he spoke, Fox ran all of the positive private sector job stats along the ticker.

So, to get back to the original point, I have to ask: Do State budgets help the private sector and subsequently contribute to job growth?  In PA, we have certainly seen how a mismanaged budget can contribute to job loss.  Our State funded colleges, facing a potential 30% funding cut, may feel the sting this year.  But, these losses have primarily been private sector losses.  Perhaps this all lends itself to a much large question: Is America's economy struggling because we no longer 'make/produce' anything or is it struggling because modern-day politics has interfered with public sector growth?

Thursday, June 14, 2012

Tell Me What's Really Goin On - Conclusion

Well, it is obvious to me that drilling and mining is a way of life here in Central WV.  They are not experiencing anything new like we are in SW Pennsylvania.  In fact, it would probably be a cultural and economic shock if this type of work left this region.

I did have dinner tonight with a colleague from Parkersburg, West Virginia, which sits in the mid-Ohio Valley across the river from Marietta, OH.   She says they are seeing first-hand evidence of a Marcellus Shale boom.  In fact, the Marietta campground, she says, is full of campers that are occupied by shale workers from all over the country.

So, in short my finding is this: It's business as usual in Gilmer and Braxton Counties, but it is a shale phenomenon in SWPA and SEOH.  I just hope Ohio and Pennsylvania do as good of a job disguising drilling as West Virginia has done.  As I mentioned in last night's report, the mountains and woods down here appear as beautiful as I have seen them.  Eventually, like West Virginia, PA and OH will adopt this new culture of work.  Until our workforce development initiatives in those areas began to pay off, I guess we will continue to see campers filling up the state campgrounds. 

In conclusion I would like to say that the people of West Virginia are some of the kindest, most gracious folks I have ever met.  My colleagues at FCI Gilmer today prepared an excellent Bean & Cornbread lunch for me and the other visitors.  The nice lady at the local Rite Aid carded me for beer, which reminder me that my license expires next week...thanks again to her for thinking I might be under 21.  And, despite the brilliance of my GPS, I did get lost a couple of times.  To every person from whom I asked directions, thank you for not treating me like some lost city kid.

Back to Pittsburgh tomorrow.  Monday morning, it's back to work on plans to open our Energy/Shale Career Center.  If nothing else, this trip has convinced me that my region does not have the working legacy to quickly adapt to drilling Marcellus Shale.  It's time to get to work on preparing our first generation of natural gas drillers!

Wednesday, June 13, 2012

Tell Me What's Really Goin' On - Part Two

After spending the day with the fine staff at FCI Gilmer (FCI is Federal Correctional Institution...for those of you not in the industry), I decided to embark on an observation mission. 

First, I picked up The Exponent Telegram, which is a local newspaper out of Clarksburg.  The headline from the Associated Press read, "US Coal Use On Fast Decline."  Being replaced of course by natural gas.  During the day, the locals had told me how natural gas drilling was slowly replacing coal mining in the area. This, unlike affordable natural gas, fueled my two hour exploration throughout Gilmer and Braxton Counties (see map.)  I did not see any active drilling sites, but still the signs were everywhere.

All sorts of energy companies have set up field offices and operations throughout the region.  EQT and XTO Energy are visible everywhere.  Work trucks from several contracting companies are parked in many, many driveways.  I did pass a compression station near the side of an old country road.  Still, I have to say that if drilling be goin on in them there hills, the trees, mountains and deer of West Virginia do not seem bothered; the state is as beautiful as ever. 

I also have to note this: Everywhere I spotted a new well head, I also observed a new home.  Coincidence perhaps?  I am not educated enough to say.  In fact, I cannot say with certainty that the new well heads were even Marcellus related.  As I stated earlier, this was merely an observation mission.

Tomorrow I will talk with local business owners about the impact of drilling and whether or not that has lead to increased spending.  All this after I complete day two of reentry related training at FCI Gilmer...of course.  More to come!

Tuesday, June 12, 2012

Tell Me What's Really Goin' On?

Tonight as John, Paul, George, Ringo and I pulled off of Interstate 79 and into Small Town, West Virginia, we were greeted by new construction and a fresh grown crop of 'Help Wanted' signs.  Not at all what I had anticipated.  Honestly, I believed that like Christian Slater in Young Guns II, I would encounter groups of American workers mining guano to earn a living.  Mostly, I expected this because I realize the economy has not been as bad in Pittsburgh as the media indicates it has been in Small Town America.

I must note that the boys from Liverpool and I passed hundreds of farms between Canonsburg, Pennsylvania and Glenville, West Virginia, but did not observe a single shale well springing up.  However, we did spot many EQT trucks parked in local driveways and quite a few 'Do You Have a Gas Well Yet?' signs plastered on local billboards. 

My quest to discover What's Really Goin' On continues this week.  I will be spending the remainder of the week in beautiful...and I mean beautiful...Glenville, WV.  I shall report my findings.

Wednesday, June 6, 2012

Marcellus Shale: The Urban Disconnect

The economic benefits of Marcellus Shale drilling have been well documented.  There will be thousands and thousands of new jobs.  Hotels, restaurants and such in small town USA are booming. Law firms and financial institutions are creating new divisions just to serve their new energy clients and the emerging number of Shaleionaires.  Everybody knows, right?  Wrong.

Last week I spoke to a high school class in a Pittsburgh urban neighborhood.  Out of forty students, none had heard of Range Resources, Halliburton or ConocoPhillips...all leading players in the natural gas industry.  When I asked what Consol Energy does, they told me that Consol Energy owns the arena in which the Pittsburgh Penguins play.  Prior to that presentation, I met a young man who asked me, "Who is Marcellus Shale?"  Earlier in the month, I attended a shale-related career fair; I did not see one young African-American male in attendance.

Just yesterday, a KDKA Radio host dedicated part of his show to Careers in Marcellus Shale, highlighting free training and education programs to help workers prepare. My KQV radio show this month will focus on the same topic as we interview two industry representatives about the growing number of new jobs related to this work.  All great information, but really?  How many young workers from inner-city Pittsburgh will be listening to KDKA or KQV radio? 

Urban America's young workers, specifically young black males, are missing out on these opportunities.  Perhaps what I am pointing out here speaks to a larger social issue.  Still, our local workforce development systems can make efforts to assure this trend does not continue.  I belong to a group in SW Pennsylvania that has been trying for two years to open an Energy Careers Center near the City of Pittsburgh so that residents of city neighborhoods have the opportunity to learn about, train for and go to work at jobs in this industry.  That project has been met with resistance and has not secured financial support.  Why?  Again, maybe this discussion relates to a much larger social issue.  Nonetheless, the discussion needs to start someplace.