Fracking jobs

December 14th, 2012 at 10:00 am by David Farrar

Rob Maetzing at Stuff reports:

Venture Taranaki has joined in on the debate, releasing a study that forecasts billions of dollars and thousands of jobs over the next decade if is allowed to continue. …

It claims fracking has the potential to annually deliver almost $800 million in GDP and create more than 7000 jobs under a growth scenario over the next 10 years.

But if a moratorium is introduced and fracking is banned, the GDP would reduce to $215 million and create fewer than 2000 jobs.

“In an industry where a single well strike can add $1 billion onto the nation’s balance sheet, the value in optimising the productivity of existing wells cannot be underestimated,” the report says.

The report criticises perceptions that profits from oil and gas activity in New Zealand disappear offshore or into a central royalties fund, that it employs few New Zealanders, and that the nation does not benefit. “This simply isn’t the case.

“The economic rewards from oil and gas extend far beyond royalties. The value that could be added by fracking lies in jobs, innovation, added-value manufacturing, regional growth, and greater energy security for our national economy.”

New Zealand’s base-load domestic energy demand is 160 to 170 petajoules a year.

By 2018 the country is forecast to experience a shortfall between demand and supply, which will require either increased imports, new discoveries, and/or embracing new technologies that will enable the extension of existing fields.

“Fracking is one of those technologies, and can help New Zealand meet the energy demands of current and future generations,” the report says.

And in the UK, the Government has just given fracking the go ahead.

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16 Responses to “Fracking jobs”

  1. tvb (4,208 comments) says:

    And if the greens had their way every job that has an environmental impact would be lost. They don’t mind spending the taxes they just do not have a damn clue how to produce the wealth that is taxed. Cracking promises to bring unheard of wealth. The US and others will become energy independent. But then the Greens will oppose that as well.

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  2. krazykiwi (9,189 comments) says:

    The combination of hydraulic fracturing and horizontal drilling is revolutionizing the global energy landscape. There is absolutely no question we need to go here. Sorry Greens, your Malthusian fantasies will need to be based on something other than energy poverty.

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  3. All_on_Red (1,368 comments) says:

    Its a concern that by 2018 we will have supply issues though. Unless we build a gas powered power station then we better start moving on building another Hydro dam to cover this impending shortfall.
    There is no doubt that cheap energy has a dramatic effect on alleviating poverty either through reduced personal living costs or through enabling industry to grow and provide jobs.
    We have six years to do it.
    The last thing we need is to be like the UK and Germany where the cost of energy is causing a lot of deaths during the winter

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  4. RRM (9,467 comments) says:

    Seven thousand jobs – really?

    I’m no anti-fracking campaigner but that sounds like propaganda… when I visited the Shell Todd terminal on a school trip 15 years ago there were just two or three guys sitting in a computer room controlling everything.

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  5. OTGO (512 comments) says:

    The jobs would be in building the terminal not in running it. But there would also be jobs created in programming software to run the thing on completion I guess.

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  6. dime (9,442 comments) says:

    RRM – i guessit depends on how much has to be built etc?!

    Devon oil in the US. revenue of 11 billion. employ 3500 or so.

    Marathon oil is similar from memory.

    both have benefited big from fracking. its been 6 months since i followed oil stock so you may have to check my stats!

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  7. Australis (99 comments) says:

    After a lengthy debate in Britain, Ed Davey (Lib Dem warmist Sec of Energy) has lifted the moratorium on fracking. The decision came after David Cameron’s strong hint that fracking might save the economy.

    Nothing of this major development appears in the Herald or Fairfax papers.

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  8. Spam (593 comments) says:

    I’m no anti-fracking campaigner but that sounds like propaganda… when I visited the Shell Todd terminal on a school trip 15 years ago there were just two or three guys sitting in a computer room controlling everything.

    Yep, but then there are also:
    * The people maintaining the facilities (breakdowns, preventative maintenance, inspections etc).
    * The people providing all the support services (HR, finance HSE, legal, catering, scaffolding, painting, helicopters, boats etc)
    * The people looking at debottlenecking and plant improvements as conditions change (engineers, construction staff and contractors)
    * The people looking at the subsurface side, squeezing the most out of the existing reservoirs (geologists, reservoir engineers, production technologists)
    * The people looking for near-field and infill opportunities (exploration people)
    * The people executing the new opportunities (engineers, drilling contractors and staff etc)

    They have an entire office block full of corporate overhead staff, and employ a crap load of contractors. Fracking spreads themselves will require a crapload of contract staff (not to mention thousands of environmental and legal consultants to tread through the minefield of getting the consents!)

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  9. TheRat (2 comments) says:

    And if the Green Party argue against this analysis they will undermine their favorite economic advisers BERL who they used to bolster their case against Asset Sales…

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  10. tvb (4,208 comments) says:

    Fracking may produce electricity cheaper than nuclear. So the greens may have to choose. It is always risky opposing something on hypothetical risk. But most people want facts based on true science.

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  11. jacob (16 comments) says:

    I always get a bit disappointed when the energy sector talks about jobs – by the logic that the sector creates jobs, more jobs per kWh would be a better thing, so the Greens would argue that wind and solar installations are ‘better’ (and boy do they).

    Energy is a lifeblood input to the economy, downstream of which the real jobs are created. If the energy sector need to employ huge numbers of people to deliver the power, this adds to the cost of that energy source. The ideal energy source would be completely free.

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  12. hj (6,359 comments) says:

    http://www.energybulletin.net/stories/2012-12-11/fossil-fuels-fracking-lies-spread-the-word

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  13. hj (6,359 comments) says:

    Venture Taranaki has joined in on the fracking debate, releasing a study that forecasts billions of dollars and thousands of jobs over the next decade if fracking is allowed to continue. …
    …..
    ah ha!
    expensive oil; just as the peak oil people predicted!

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  14. hmmokrightitis (1,511 comments) says:

    It’s not just the direct jobs impact, it’s the support industries as well. From food through to pipes and helicopters, look around New Plymouth – a significant number of people support the oil and gas industry. 7,000 over ten years? I’m not expert, but you double production of O & G here and watch the place go through the roof.

    And my property values go the same way :)

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  15. Fletch (6,026 comments) says:

    Matt Damon just starred in an anti-fracking movie, and during a question-and-answer session hosted by Apple was asked –

    “We hear a lot of criticism about sources of right-wing funding and right-wing projects,” McAleer continues, “my question is, how does it feel to be a fully paid advocate for an oil-rich Middle Eastern government?”

    It seems like he ummed a bit, and Apple cut the question from it’s Podcast of the session. Someone else filmed it though.

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  16. GregOutWest (1 comment) says:

    Right. I just wrote a longer detailed post but lost connection and can’t be bothered re-typing it.
    To summarise: 1/ To posters like TVB at top, if you’ve got nothing smarter to say than slagging the Greens, piss off. You’re as dumb as Phil Heatley 2/ Phil Heatley is a lightweight and will blow this opportunity. 3/ Are you familiar with Norway? They have manufacturing, employment, environmental and wealth management standards around oil industries we should be learning from. 4/ The stone age didn’t end because they ran out of stones. The found better technology. We should be taking the green’s clean-tech policies and thrashing them with it. Sure, use gas, but also embrace tidal, hydro, solar, landfill/methane, bio-waste etc. Many arrows to the quiver.

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