Where Are the Gas Jobs?: Chesapeake’s Statewide Employment Claims Debated

Wheeling WV  Intelligencer
30 January 2011
By Casey Junkins, Staff Writer

WHEELING - More than 700 West Virginia residents are currently employed with Chesapeake Energy, company officials told the Sunday News-Register in response to claims that local residents are unable to find work in the burgeoning drilling industry.

Chesapeake provided the employment numbers after U.S. Sen. Joe Manchin, D-W.Va., criticized the drilling industry during a recent town hall meeting in Wheeling. Manchin said he was looking into why some West Virginia residents are having a hard time finding work with the natural gas companies.

Officials with Chesapeake, the most active gas driller and contractor in the local area, said the company currently employs 702 West Virginia residents over its entire operations.

Chesapeake Director of Corporate Development Stacey Brodak said the company plans to hire more West Virginia workers as development of Marcellus Shale continues.

"We have had great success in hiring a capable local work force, and we believe there are opportunities for continued growth," she said.

"Our rig floors in West Virginia and southwestern Pennsylvania are staffed with a majority of regional employees, and we've established a relationship with the Fred Eberle Center at Pierpont Community and Technical College (Fairmont, W.Va.), which provides the International Association of Drilling Contractors Rig Hand certification." Such a class would be useful for someone looking to work in the industry, Chesapeake said.

According to the college's website, classes for "Floorhand Training for Oil and Gas Drilling" begin on Feb. 7. Tuition is $500 for five sessions.

Manchin's Communications Director Emily Bittner said the senator has "met with and urged company executives to hire West Virginians."

"West Virginians have a long history of providing needed energy to our country, and they will play a critical role harnessing the resources that will lead to a secure energy future, boost the state's economy and create good-paying new jobs," she said.

During a recent conference in Charleston, Chesapeake CEO Aubrey McClendon said his company plans to invest as much as $50 billion in West Virginia to develop and extract natural gas over the next several years.

McClendon, however, also noted the company is having a hard time finding skilled employees to work on its West Virginia operations - even going so far as to say that about 30 percent of those applying for jobs with Chesapeake fail the firm's drug test.

Some in the local trades don't agree with Chesapeake's assessment. Ed Boone, representative of the West Virginia Pipe Trades Association, claimed the company's employment numbers are misleading.

"This is not bringing many jobs for West Virginia residents. Most of those paychecks are going back out of state," he said.

Keith Hughes, business manager for Ironworkers Local 549 in Wheeling, said his workers are qualified right now to work in the drilling industry.

"And if we are not qualified, we can teach our people how to do the work," he said.

Hughes said the natural gas industry has not provided as much work to West Virginia's workers as it should, but he did say those he represents did some work at Caiman Energy's Fort Beeler cryogenic facility.

"We are doing 5 to 10 percent of the work at the compressor stations," such as those built in Wetzel County, Hughes said. "We have been doing a little bit better with getting the pipeline jobs, but we are still waiting for more."

Hughes also said all of his workers are regularly tested for drugs, and would not count among the 30 percent who failed McClendon's tests.

Hughes emphasized that his union is also capable and willing to train people to work for the gas companies.

"Sure, it may take us a few days to catch on to the specifics of what they're doing, but we will get it and we will teach it." he said.

Both Hughes and Boone are hoping to see the West Virginia Legislature take action to require or encourage gas companies to hire more local workers. These potential new rules could include calling for gas companies to hire employees from within a certain radius of a drilling site.

"This Marcellus drilling can be a great thing for the state, but we have to keep this money at home. For every dollar that leaves our state, it hurts our schools and hurts our communities," Hughes said.