Oil and Stimulate West Economic and Job Growth

Oil and natural gas are driving the U.S. economy through a major energy boom and that boom is rippling through the economy of , supporting business activity across the state. This finding grows out of a new American Petroleum Institute survey of domestic oil and natural gas $5.8 BILLION vendors,1 which offers a glimpse into the job and business creation engine that is the current oil and natural gas industry. The survey shows that at least 230 THE INDUSTRY CONTRIBUTES TO businesses, spread across all eight of West Virginia’s congressional districts, are WEST VIRGINIA’S ECONOMY part of the larger oil and natural gas supply chain.

The survey’s snapshot of state-by-state activity Virginia across all industries and sectors is reinforces the impressive level of industry success $39,519, the average oil and gas industry throughout the country that is documented in a salary (excluding gas stations) is substantially recent PriceWaterhouseCoopers study conducted higher—$74,450 annually.4 Overall the industry for the American Petroleum Institute.2 That study supports $5.8 billion of the West Virginia 80,400 found that the oil and natural gas industry in West economy. That’s 8.7 percent of the state’s total Virginia supports some 80,400 jobs, which is economic activity. 8.9 percent of the state’s total employment. The WEST VIRGINIA JOBS amount of West Virginia labor income supported Although West Virginia ranks 20th in oil 5 by the oil and natural gas industry comes to production, it is 9th in natural gas production. $3.64 billion annually. That’s 8.8 percent of the That makes it one of the nation’s top energy- SUPPORTED BY OIL AND state’s total labor income. producing states. NATURAL GAS INDUSTRY

These job and labor income figures demonstrate West Virginia particularly benefits from the that the people of West Virginia enjoy significant production of oil and natural gas from shales benefits from energy development. The benefits and so-called “tight formations,” energy AVERAGE ANNUAL SALARY COMPARISON show up in the state’s salary statistics as well.3 development that uses the proven engineering Thus, while the average annual salary in West technologies of hydraulic fracturing, or 100k

90k 1. American Petroleum Institute, “API Onshore Oil and Gas Vendor Identification Survey,” Washington, D.C., 2014. The survey was distributed to API members in January 2014 to collect information for the period October 2012 to September 2013. Included are 80k companies that provide goods and services for onshore oil and natural gas development, whether as operators, contractors, service $74,450 companies, suppliers, or vendors. 2. PriceWaterhouseCoopers, “Economic Impacts of the Oil and Natural Gas Industry on the U.S. Economy in 2011,” Washington, D.C., 70k July 2013. Prepared for API using the IMPLAN input-output modeling system, based on 2011 U.S. Bureau of Economic Analysis data. 60k 3. Information cited in this paragraph comes from the Bureau of Labor Statistics, Quarterly Census of Employment and Wages (prelimi- nary data for 2013 accessed July 2014); and PriceWaterhouseCoopers, “The Economic Impacts of the Oil and Natural Gas Industry on the U.S. Economy: Employment, Labor Income and Value Added,” 7/12/13 (based on 2012 IMPLAN database). 50k 4. Data includes NAICS code 324, which may count some product manufacturing jobs. 5. EIA, “Rankings: Crude Oil Production, April 2014 (thousand barrels),” accessed 7/31/2014. http://www.eia.gov/state/ $39,519 40k ranking/?sid=UA#/series/46. EIA, “Rankings: Natural Gas Marketed Production, 2012 (million cubic feet),” accessed 7/31/2014. http://www.eia.gov/state/rankings/?sid=US#/series/47. 30k

Avg. Annual Avg. Oil and Gas West Virginia Salary Industry Salary Visit API.org for more information and follow us on Twitter@EnergyTomorrow. State: West Virginia West Virginia Vendors by Congressional District Vendors by Congressional District District Location ●

Congressional District Total Congressional District 1 119 Congressional District 2 88 Congressional District 3 23 Grand Total 230

District 01

District 58,244 02 WEST VIRGINIA JOBS BY 2035 FROM HYDRAULIC FRACTURING AND HORIZONTAL DRILLING District 03 Top Cities Moundsville = 31 77% Charleston = 27 OF AMERICANS SUPPORT INCREASED PRODUCTION OF OIL Sources: Esri, DeLorme, NAVTEQ, TomTom, Intermap, increment P Corp., GEBCO, USGS,FAO, NPS, NRCAN, GeoBase, IGN, Kadaster NL, Ordnance AND NATURAL GAS IN THE U.S. Survey, Esri , METI, Esri China (Hong Kong), and the GIS User Community

“fracking,” and horizontal drilling. Total jobs found that 77 percent of Americans, regardless of supported by these activities in West Virginia party affiliation, support increased production of reached 11,884 in 2012. The job total is expected oil and natural gas resources located in the United to rise to 29,656 in 2020 and to 58,244 in 2035.6 States.7

And Americans, including the people of West Virginia, get it. A telephone poll of 1,012 registered voters across the country, conducted on behalf of the American Petroleum Institute, Vendor Profile8 Southern Hydrocarbon Corporation Southern Hydrocarbon Corporation is a drilling 6. IHS Inc., “America’s New Energy Future: The Unconventional Oil and Gas Revolution and the U.S. Economy,” Washington, D.C., December 2012. and completion consulting firm. The company 7. “What America is Thinking on Energy Issues.”http://www.api.org/news-and-media/news/newsitems/2014/july-2014/voters-say-us- offers services throughout the entire field-check, should-do-more-to-develop-oil-natural-gas” the results of a national poll conducted by Harris for API July 10-13, 2014. Click on drilling-completion, and production process, with an “national poll” to see how percentages of voters answered this and other questions. emphasis on safety and budget. The company also provides environmental products, analytical services, soap sticks, and drilling foamers to the oil and gas industry.

To find out more, visit API.org

8. From the 2014 “API Onshore Oil and Gas Vendor Identifi- for more information and follow us on cation Survey” returns. Twitter@EnergyTomorrow. VENDOR SURVEY FINDINGS REPORT

WEST VIRGINIA - VENDOR LIST West Virginia Vendors by Congressional District Congressional District 1 Hawkeye Research, Inc RW Products, LLC GA Covey Engineering PLLC Security America, Inc A&A Services, LLC Hobbs John R. Ryan Environmental, Inc GAI Consultants Shawn Tenney A&A Supply, LLC Howard Shackelford Seneca Technologies, Inc Gary Barnard Signet Stone & Soil, LLC A&P Trucking Heavy Hauling IMI Fabi, LLC Shelly A. & David W. Reinbeau Hardman Trucking, Inc Site Tech, LLC Adkins Jeremy S. Intelligencer & New Register Snider Gregory A. Harrison Transport & Hot Shot, Southern Hydrocarbon LLC Corporation Advantage A-1 Cleaning J&R Excavating, Inc Solo Construction, LLC Hefners Dozer Service, LLC Spilman Thomas & Battle PLLC Albert & Mary Hohman Jackson Surveying, Inc Staley Communication, Inc Helmick Bros Contracting, Inc Staretts Well Service, LLC American Title & Land Services, Javins Corporation Star Inspection, Inc LLC JDS Investments, LLC Steptoe & Johnson PLLC High Point Construction Group Steves Welding & Fabrication, LLC Anderson Excavating, LLC Knabenshue Sarah J. Stern Ronald Highlands Drilling, LLC Stewart Rhoades Appalachian Mineral Title Co, Land & Resource Mgmt, Inc Summit Environmental Services HNH Trucking, LLC LLC Teays Valley Engineering Laurel Aggregates, Inc Ten Mile Hot Shot & Transport Hydrocarbon Well Service, Inc Balderson Law Office PLLC The Dickirson Corporation Laurel Oil & Gas Corporation The Sherwin Williams Co Ioga - WV Beresford Randy Triple E Services Laurita, Inc Thrasher Engineering, Inc Iron Mountain Specialized, Inc Berryman Hall & Matheny PLLC Triple J Contractors, LLC Light Line Energy Services, Inc Triple H Enterprises Jackson Kelly PLLC Bethany College Viking Well Service, Inc Lightning Energy Services, LLC United Electrical Services, Inc Jonn Parsons Blair Motor Supply Company West Virginia Division of Lightning Trucking Services Vantacore Partners LP Kbash Hot Shot Service, LLC Blake Robert D. Kenneth Payne West Virginia Insurance Lori Michelle Druschel Vucelick George E. Commission Blue Dot Energy Services, LLC Latitude Land & Regulatory Lubbuck Energy, LLC Wayt Gary L. West Virginia Land Trust Blue Mountain, Inc Lewis Glasser Casey & Rollins Mac Enterprises, LLC Weekly Seth Wetzel County Landfill C&S Land Services, LLC Manahan Group, LLC Margaret Sue Kelley Wellington Development Wvdt, William Richardson Central Environmental Services LLC Marteney Dozer Service, Inc Marsh Ronald A. WV Service CM&I Products Mason Dixon Energy, LLC Williams Excavating, LLC McJunkin Red Man Corporation Cochran Diana Lynn Mason Ronald D. Wood Gregory K. Miss Utility of West Virginia, Inc Community Foundation For The Congressional District 3 Maysonet Jesus WVU Foundation Montgomery David B. ABB Process Analytics, Inc McGary Judith L. Young Charlene S. Mountaineer Metal Field Service Conner Howard T. Appalachian Leadership McGary Ricky Lee Mountaineer Welding Services Continuous Learning Group Education Melchiori Daniel G. Congressional District 2 Mountainstate Power Tong, LLC Cove Run Contracting, LLC Champion Graphic Michael Davis Advanced Electric, Inc Nathan Smarr Communications Cramer Clifford R. Missys Hotshot Service, LLC Aqua Clear, Inc Nicholas Pottmeyer Constance M Crow James E. Monroe Towing & Excavating, Arnold L. Schulberg Payzone Oil & Gas, LLC DD&S Contracting David & Sharon Hall & Berry LLC Bowles Rice LLP Performance Energy Services Doss Enterprises DDP Minerals, Inc Moundsville Daily Echo Broken Spoke Welding Petroleum Products, Inc Eugene Roberts & Son, Inc Diannas Cakes & Catering Mountain Service & Supply, LLC Chad Satterfield Potesta & Associates, Inc Gilbert Electrical Systems & Dieffenbauch & Hritz, LLC Produc Neels Chainlink Fence Co Clarence D. & Nancy C.T. Power Parts Supply, LLC DOB, LLC Aggregate, Inc Stamper Pray Construction Company GL Stone & Son, Inc Dobbs Daniel L. Olaf H. & Wanda M. Shafer Clinton Salyers Ralph Riffle Harold Porter Dolgovskij Nikolaj Oliverio Matthew A. Cox Well Service, LLC Randall Orsburn Jamie Adkins Dominion Transmission, Inc Patriot Oilfield Services, LLC Custom Wellhead Services, LLC Raynes & Sons Excavation, LLC Johnny May E&S Contracting, Inc Patterson Shirley L. Daniel Moore & Son, Inc Richard Chin Kris Aldridge Ecologic Environmental Pearson Deborah Ann Daniel Rucker Ringers, Inc Lorene Canterbury & William Edgel Thomas Jr Percheron Energy, LLC Delmar & Alice Light RL Laughlin & Company, Inc Malcom Slone Estate of Hilda S. Lyons Perkins Supply Derow Enterprises, LLC Robert A. & Cathy Campbell Norfolk Southern Railway Co Extreme Plastics Plus, Inc. Reilleys, Inc Donald Cogar Robert Schindler Ray McCallister Fairmont Tool, Inc Relyks, LLC Elk Well Services, LLC Robinson & Mcelwee PLLC Richards Albert T. Gal Land Co, Inc Richardson Copy Concepts Energy Corporation of America Rodney Greathouse Richwood Investment Castings Garcia Linda S. Ricochet, LLC Environmental Construction, Inc Ronnie Cunningham Robert Marsh Gold Khourey & Turak LC Rine Paul W. Francis Brothers, LLC Roustabout Services, LLC Terry & Dee Lambert & Hoover Grose Kevin E. Ritz Mark N. Frontier West Virginia, Inc Russell Robinson WR Murdock & Sons, Inc Hall Ora Lee WV Educational Broadcasting