Upstream and midstream developments have boosted Pennsylvania’s national energy standing. Now, the time has come for the state to conquer the downstream sector. The Shell Chemicals ethane cracker plant helps accomplish that. The plant is a $6 billion investment for the state. But it’s also the beginning of a petrochemical revolution in the commonwealth.

That was the impetus behind a March 2017 study conducted by IHS Markit, a leading market research firm. The study was sponsored by Team Pennsylvania, a nonprofit partnership between the private and public sectors supporting education and economic development.

“One petrochemical facility in the form of Shell is great, but we think there is opportunity for much more here in Pennsylvania,” Team Pennsylvania President and CEO Ryan Unger told The Stream during a wide-ranging interview in November.

Now streaming: Energy updates from The Stream Team

Natural gas pipeline inspection dogs make a ‘ruff’ job easier:  These days, even dogs are finding natural gas-related jobs.

Canine pipeline inspections offer an alternative to traditional inspection methods, Susan Hagberg, president of CDIS K9 Pipeline Leak Inspection in Chicago Ridge, Illinois, told The Stream.

“It’s an environmentally friendly, cost-effective approach,” Hagberg said. “We quickly find the leak and save [the pipeline owner] money, all by using a trained dog.”

Shale spotlight: Natural gas in the news

Here’s a look at key energy headlines from November.

• On the eve of split from Consol, CNX Resources speeding up growth plans. The new gas company is moving up its plans to add a new drilling rig to its operations.
• How shale gas extraction is fueling a manufacturing renaissance. The growth of U.S. shale gas extraction is offering a big boost to the plastics manufacturing sector.
• Pennsylvania gas activity climbs along with Marcellus production. Gas production from the Pennsylvania portions of the Marcellus field reached a record high in October, according to the Energy Information Administration.
• ‘We’re hiring,’ oil and gas companies say. For the first time in four years, the oil and gas industry expects to hire more people than it lays off in 2018, according to a recent study.
• Why Philly oil refiners want to dump ethanol mandates. They’re stepping up a campaign to persuade the federal government to relax ethanol-blending rules for Northeast states.
• China Energy Investment signs MOU for $83.7 billion in W.Va. projects. The world’s largest power company by asset value plans to invest $83.7 billion in shale gas, power and chemical projects in West Virginia.
• U.S. oil and gas ‘resurgence’ expected as global demand grows. Oil will continue growing as a source of energy for over two decades, with the U.S. set to become the undisputed leader in crude and gas production.
• Perry urges collaboration among U.S., Canada and Mexico on energy. Energy Secretary Rick Perry said U.S. officials and their counterparts in Canada and Mexico must collaborate to speed the development of the continent’s vast energy resources and remove regulatory roadblocks to cross-border energy infrastructure projects.
• Northumberland County portion of Atlantic Sunrise pipeline begins. The first work in Northumberland County for the Atlantic Sunrise pipeline project is underway. The 42-inch pipeline will run from Columbia County across approximately 10 miles of Northumberland County south into Schuylkill County.
• Natural gas tax comes up for debate in Pa. House. Legislation to impose a tax on Marcellus Shale natural gas production is getting closer to a vote in Pennsylvania’s House of Representatives, although the long-sought tax faces hurdles in the nation’s No. 2 gas state.

The Stream: What’s in the pipeline

Coming up in December, we’ll explore programs that make it more affordable to heat your home this winter. We’ll also identify some trends to look for in the energy industry as we head into the new year.

Want more updates on the energy industry? Sign up for The Stream’s newsletter, delivered daily to your inbox. It’s free!

Shell Chemicals’ $6 billion investment in western Pennsylvania is quite the boon for the region. But for Team Pennsylvania President and CEO Ryan Unger, it’s only the beginning of what could be a petrochemical revolution in the commonwealth.

“One petrochemical facility in the form of Shell is great, but we think there is opportunity for much more here in Pennsylvania,” Unger said during a recent interview with The Stream.

A March 2017 study conducted by IHS Markit, a leading market research firm, found the Marcellus and Utica shales could support five ethane cracker plants, not just the one complex that Shell is building in Beaver County. The study was sponsored by Team Pennsylvania, a nonprofit partnership between the private and public sectors that supports education and economic development.

The IHS Markit study came after Shell Chemicals announced its Beaver County plans in June 2016. The findings were eye-opening for Unger and many others in the economic development community.

“We, as a commonwealth and as leaders in economic development, decided to be proactive and say, ‘What next?’” Unger said.

Petrochemicals: What’s next for the natural gas boom

As for what’s next, more petrochemical investments could be the answer. The study sparked international interest after it was released in March, Unger said.  

Now, it’s just a matter of spreading the word and using the study to bring more economic opportunities to Pennsylvania.

“We need to bring all the right players together,” Unger said. “We need to begin just talking about the industry and how we can, again, put Pennsylvania out there as a place for this type of investment.”

Unger said the Pennsylvania Department of Community and Economic Development is working with local partners to identify possible sites for petrochemical companies. It can be difficult to find suitable areas because most such facilities require access to deep channel water and approximately 1,000 acres of land.

But that doesn’t mean it’s impossible. It just takes a little creativity.

“If you were looking at where Shell located, there was a company there already,” Unger said. “It was a creative solution locally with good market intelligence partners.”

Much of the focus has been in western Pennsylvania, but other parts of the state could provide opportunities, too. For example, a project the size of the Shell plant might not work in Marcus Hook. But a smaller project might be perfectly suited there.

“There’s different types of projects,” Unger said. “The state and other local partners are exploring those opportunities with different companies to identify what they could be.”

Petrochemicals allow interstate alliances

Bringing more petrochemical facilities to the Marcellus Shale play will require working with the right local intelligence partners. It will also require forming alliances with organizations in Ohio and West Virginia. Team Pennsylvania and state economic development leaders are working on that.

“We’ve continued to work with Ohio and West Virginia on those areas that we feel it makes sense to move forward together on,” Unger said. “They’ve been great partners, and I think you’ll begin to see in the near future some other areas we can collaborate on.”

Specifically, Unger said his group is working across state lines to find regional solutions to infrastructure. The workforce “doesn’t know state boundaries,” he said.

At its height, construction of the Beaver County Shell Chemicals facility will see more than 6,000 workers. And those workers might see additional opportunities in the region. Thailand-based PTT Global recently purchased 167 acres in Belmont County, Ohio, as a possible site for a petrochemical facility. That site is only a half-hour drive west of the Pennsylvania-Ohio border.

“Those are predominately Pennsylvania electricians and workers looking for an additional opportunity in the region,” Unger said.

Pennsylvania has petrochemical competitive edge

Petrochemical facilities are essential for capitalizing on the Marcellus boom. Last month, former Allegheny Conference on Community Development CEO Dennis Yablonsky told The Stream that the Shell and PTT investments put western Pennsylvania in the “first or second inning of the downstream game.”

Unger said he hopes Pennsylvania uses the March report to get more points on the petrochemical board.

The report placed Pennsylvania among the most competitive petrochemical markets in the world. And Unger said that was an “oh, wow” moment.

“It really opened our eyes that we need to broaden the scope of the kind of companies we’re looking for and where we’re looking for them.”

The increase in domestic natural gas production has created thousands of new energy jobs and opportunities, not just for humans but for dogs, too.

Canine pipeline inspections offer an alternative to traditional inspection methods.

“It’s an environmentally friendly, cost-effective approach,” said Susan Hagberg, president of CDIS K9 Pipeline Leak Inspection in Chicago Ridge, Illinois. “We quickly find the leak and save [the pipeline owner] money, all by using a trained dog.”

Hagberg performed a demo of the company’s services at Midstream PA 2017 on Oct. 19 in State College, Pennsylvania. She also discussed canine natural gas pipeline inspections with The Stream.

How did you become involved in pipeline leak detection?

Since 1998, I have worked with dogs. We have two other companies — one is Wild Goose Chase Inc., a pest control service, and the other is for bedbug inspections. I saw that there’s a need for these types of pipeline inspections. Our dogs are trained at the K9 Pipeline Training Academy, which is the go-to trainer for these kinds of inspections.

What is the natural gas pipeline inspection process?

Once we are dispatched to a site, we inject a special odorant into the pipeline so that it will rise to the surface. We walk the dog along the pipeline right of way. When the dog smells the odorant — and they can smell it coming from a hairpin crack — they begin to dig as if they are looking for a ball. The dig spot is where the leak is coming from, and a crew can dig the area and make the necessary repairs. We’ll continue to walk the right of way to detect any other leaks and repeat the process as necessary.

What kinds of dogs work best for pipeline inspections?

You’ll find that there are a lot of lab mixes in this type of work. We use more outdoorsy dogs that have a lot of drive, since there will be a lot of walking. These dogs have been training since they were puppies for this type of work.

Right now, they’re using dogs to find invasive plant species and endangered wildlife. It’s exciting some of the things canines are being used to find.