Fracking heats up the job market

Fracking, also know as hydraulic fracturing, is pretty controversial among environmentalists. The process threatens groundwater, but then natural gas burns much cleaner than coal.

Another issue affecting the fracking debate involves jobs. With the natural gas boom fueled by fracking, we’re now seeing a ton of drilling for gas, and also oil, and that’s creating many jobs.

On the East Coast, abundant natural gas flowing from the Marcellus Shale formation, which runs through New York, Pennsylvania, and Ohio, is enriching farmers who lease their lands to production companies and is estimated to have created 60,000 jobs in the region, with another 200,000 possible by 2015.

Cheap domestic energy is also good news for the manufacturing sector. “The discovery and development of North America’s shale resources has the potential to be the most remarkable source of economic growth and prosperity that any of us are likely to encounter in our lifetimes,” U.S. Steel CEO John Surma told the Congressional Steel Caucus in a late March hearing. It’s a virtuous cycle: More drilling requires more steel, and lower energy costs give U.S. steel producers a cost edge. This at a time when the Department of Energy reports that the energy intensity of U.S. steel companies is now among the lowest in the world.

In St. James Parish near Baton Rouge, ground was broken last year for a $3.4 billion steel plant being built by Nucor Steel (NUE), the first major facility built in the U.S. in decades. U.S. Steel is investing in a new facility in Lorain, Ohio, and V&M Star Steel (the North American subsidiary of the French pipemaker Vallourec) plans to spend $650 million on a small-diameter rolling mill in Youngstown, Ohio.

It’s not just Big Steel that will benefit. Feedstock made from cheap natural gas is a boon for the petrochemical industry. Citing “the improved outlook for U.S. natural-gas supply from shale,” Dow Chemical (DOW) says it will build an ethylene plant for startup in 2017. (Ethylene is used to make things like plastic bottles and toys.) Dow will also restart its ethylene plant near Hahnville, La. Shell, which is building a new petrochemical refinery in Pennsylvania, is also considering a $10 billion Louisiana plant to convert natural gas to diesel. “Low-cost natural gas is the elixir, the sweetness, the juice, the Viagra,” says Don Logan, president of the Louisiana Oil and Gas Association. “What it’s doing is changing the U.S. back into the industrial power of the day.”

Studies show that fracking will support millions of jobs. Of course some will argue that green jobs are even better for the economy, and the environment, in today’s economy we can’t be too picky.

Green Jobs Growing

Green Jobs_II

The Bureau of Labor Statistics has two definitions for green jobs. A green job is one that produces goods or provides services that benefit the environment or conserve natural resources. Green jobs are also jobs in which workers’ duties involve making their establishment’s production processes more environmentally friendly or use fewer natural resources. Green jobs can be found in industry sectors such as construction, natural resources and mining, public transportation, trade, transportation and utilities, manufacturing, public administration, education and health services, information, and professional and business services.

The number of establishments in these sectors is close to 2.2 million, which means, the number of opportunities for aspiring green collar workers is promising. According to a recent Wall Street Journal report, which discusses a study by Next 10, a San Mateo, Calif.-based independent research organization, the opportunities for green jobs are greatest in certain parts of California.

The strongest growth in green jobs has been in the San Francisco Bay area, with 109% growth since 1995, the study said. The region is home to 28% of the jobs in the sector. Second in that statistic is the Sacramento area, where green jobs grew by 103%. In Los Angeles, green employment is up by just 20% since 1995, but it still comprises 23% of the sector’s jobs in the state.

As of 2010, there were more than 890,000 green jobs across the U.S. By 2015, this figure is expected to grow to nearly 1.4 million. This growth represents a CAGR (compound annual growth rate) of 9.2% between 2010-2015. It is important to note that these figures do not include the renewable energy and energy efficiency (RE&EE) industries, which represented 9 million jobs and $1,045 billion in U.S. revenue in 2007. The renewable energy industry grew three times as fast as the U.S. economy with 25%+ annual revenue growth in the solar thermal, photovoltaic, biodiesel, and ethanol sectors.

 If you are interested in a green collar job, read How to Land a Green Collar Job: 15 ways to rev up for a job that’s good for the environment, fills your wallet, and makes a difference by The American Solar Energy Society.

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