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Marcellus & Utica Shale Supply Chain Opportunities

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A tutorial explaining opportunities for businesses to sell their products and services into the shale "supply chain" or industry, in both the upstream (exploration & production) and midstream …

A tutorial explaining opportunities for businesses to sell their products and services into the shale "supply chain" or industry, in both the upstream (exploration & production) and midstream (pipelines & processing plants) sectors. The tutorial is aimed at helping businesses in the Marcellus and Utica Shale but will work for any region. This tutorial first appeared in Volume 3 of the 2012 Marcellus and Utica Shale Databook, published in January 2013. It may be freely reproduced and redistributed as long as attribution for MarcellusDrilling.com is kept on all slides.

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  • 1. Marcellus/Utica Shale Supply Chain Opportunities Exploration Lease, Acquisition, Permits Site Construction Drilling & Well Construction Hydraulic Fracturing Well Completion Production & Pipeline MARCELLUS/UTICA SHALE SUPPLY CHAIN What Opportunities Exist for Your Business? Introduction One of the most frequent questions asked of Jim Willis, founder and editor of Marcellus Drilling News, is “How can my business plug into the Marcellus/Utica Shale supply chain?” The short answer is—there is no short answer! There is no one path to scoring business in this fast-moving, rapidly-expanding shale drilling industry. But don’t despair! This is an exciting time if you own or work for a business in the northeast—anywhere in or near the Marcellus or Utica Shale region. If you can successfully crack into the shale drilling market—i.e. “the supply chain”—you stand a great chance to make a lot of money. This new section of the Databook is our attempt to help you along the path to selling your products and/or services to the shale drilling industry. On the following pages we break down the drilling process from the beginning to the end so you have a deep and complete understanding of what happens at each stage. We’ve mapped to each stage the products and services used in that stage, so you can easily identify whether or not your business fits into the picture. Finally, we list “supply chain opportunities” which are business types by NAICS code/description. Please be aware that we believe our treatment of this topic is thorough, but it is not comprehensive. Just because you don’t see your “type” of business in the list doesn’t mean there isn’t a market for your products and services. We simply can’t list every possible product or service or business! The descriptions and listings on the following pages are meant to educate and inspire you so you can imagine your own possibilities and where your business “fits in” to the picture. After you study the following pages and get an understanding of how drilling a well works, we’ll conclude with a tutorial on how to locate the right person to talk to about selling your products and services. Hold on for the ride! ©Marcellus Drilling News | You May Redistribute for FREE – Must Credit MarcellusDrilling.com as Source Page 1
  • 2. Marcellus/Utica Shale Supply Chain Opportunities Exploration Lease, Acquisition, Permits Site Construction What Happens During This Stage: o o o o Seismic company obtains necessary permission/permits to conduct surveys Seismic company conducts seismic surveys by: - Run conductive cables along roads & over land to record signals - Set explosive charges and/or use thumper trucks - Record vibration results/data Seismic company (or GIS company) creates 2D & 3D maps from data collected Geologists read & interpret results Drilling & Well Construction Hydraulic Fracturing Well Completion Production & Pipeline Supply Chain Opportunities: 213112 - Geophysical exploration for oil and gas on a contract basis 541330 - Geophysical engineering services 541360 - Seismic geophysical surveying services 541370 - Geographic information system (GIS) base mapping services 541712 - Geological research and development laboratories or services 561320 - Temporary employment services Products & Services Used: Seismic surveying Geographic Information Systems (GIS) Geologists Day/temporary workers to run lines, dig holes, drive trucks ©Marcellus Drilling News | You May Redistribute for FREE – Must Credit MarcellusDrilling.com as Source Page 2
  • 3. Marcellus/Utica Shale Supply Chain Opportunities Exploration Lease, Acquisition, Permits Site Construction Drilling & Well Construction What Happens During This Stage: o o o o o o o o o o o Landowner may seek a property appraisal prior to dealmaking Landowner is approached for a deal: - List land availability with a real estate agent or representative, or - Seeks a collective deal with other landowners via a coalition, or - May be approached directly/individually by a landman Landman negotiates lease terms, royalty rates, bonus payments, pipeline right-of-ways with landowner(s) Landman performs initial title research and then files mineral lease with county courthouse Abstractor performs a detailed title search on the property Lawyer (or abstactor) resolves outstanding issues like extra signatures needed (curative title & development) Driller obtains permits to drill Driller pays required bonding, erosion/sediment control fees Driller creates an erosion/sediment control plan and a water management plan for drilling & fracking Driller obtains storm water runoff permit (if needed) Driller obtains road bonds to allow overweight vehicles to use public roads & permits to use private roads Hydraulic Fracturing Well Completion Production & Pipeline Supply Chain Opportunities: 522110 - Banks, commercial or savings 523930 - Certified financial planners, investment advisory services 531390 - Landman services 531210 - Real estate brokerages (including residential, commercial) 531320 - Real estate appraisal services 541110 - Attorneys' offices (including oil & gas, tax, real estate) 541191 - Title abstract/search companies, real estate 541211 - Certified public accountants' (CPAs) offices 541219 - Accounting services (except CPAs) 541370 - Topographic, land, hydrographic surveying services Products & Services Used: Real estate appraisers Real estate brokers/agents Landmen Attorneys Surveying GIS/mapping Title abstractors Environmental engineers Wealth management, tax planning CPAs, accountants Banking ©Marcellus Drilling News | You May Redistribute for FREE – Must Credit MarcellusDrilling.com as Source Page 3
  • 4. Marcellus/Utica Shale Supply Chain Opportunities Exploration Lease, Acquisition, Permits Site Construction What Happens During This Stage: o o o o o o o o o o o Survey, design, plan the site "One call" to mark existing utility lines (electric, water, sewer) Install erosion barriers Equipment moved to the site (mobilized) Build access roads Remove shrubs and trees ("stripping and grubbing") Level/excavate the site, build berm around the site Construct water/frack pond (if nedeed) Construct well pad from aggregate (rock) Install matting & seeding for erosion control on berm and surrounding slopes Equipment removed (mobilized off) Products & Services Used: Drilling & Well Construction Hydraulic Fracturing Well Completion Production & Pipeline Supply Chain Opportunities: 213112 - Drilling site preparation at oil and gas fields on a contract basis 212321 - Sand and gravel quarrying (construction grade) 237310 - Road construction 237990 - Earth retention (frack pond) system construction 238910 - Excavation contractors 238910 - Heavy equipment rental with operator - bulldozer, backhoe, crawler, etc. 238990 - Fencing contractors, installation 423810 - Construction and Mining Machinery & Equipment Merchant Wholesalers 424910 - Agricultural supplies: mulch, fertilizer, grass seed 444190 - Fencing, construction materials suppliers 484220 - Trucking (gravel, sand, top soil, equipment) 532412 - Heavy equipment rental without operator - bulldozer, backhoe, crawler, etc. 541330 - Civil/construction engineering services 541360 - Aerial geophysical surveying services 541370 - Topographic, land, hydrographic surveying services 561320 - General labor contractors (i.e., personnel suppliers) 561730 - Tree removal, landscaping services 811310 - Heavy machinery and equipment repair and maintenance services Aerial mapping services Surveyors Civil engineers Construction engineers Excavation equipment Aggregate (gravel, etc.) Fencing Construction materials Plastic liners & installation Agricultural supplies: mulch, fertilizer, grass seed Trucking (move equipment & supplies, haul dirt & rock) Heavy equipment: backhoes, graders, bulldozers, etc. ©Marcellus Drilling News | You May Redistribute for FREE – Must Credit MarcellusDrilling.com as Source Page 4
  • 5. Marcellus/Utica Shale Supply Chain Opportunities Exploration Lease, Acquisition, Permits Site Construction Drilling & Well Construction Vertical "air rig" (uses air and not fluid for drilling) is mobilized/brought to site Air rig is set up and used to drill a vertical wellbore to a point just above the shale layer Several casings (metal pipe, cement) are placed into the wellbore to protect the water aquifer After all casings are in place & cemented, a wellhead is placed at top to prevent casing movement Air rig is mobilized out (removed) A much larger horizontal rig using drilling mud (water or oil-based drilling fluid) is mobilized in Water used for drilling is trucked in and stored in a pit or special tanks Downhole motors and electromagnetic survey equipment is used to drill the wellbore The wellbore is drilled in a curve, then horizontally through the shale layer Steel pipe is inserted and cemented in place Both drill rigs are contained in a special area encased with pit liners to guard against fluid spills As drilling is done, drill cuttings (rock, dirt and fluids) are removed and trucked away Geologists & engineers collaborate with drilling crews to analyze and fine tune the drilling process When the horizontal wellbore is done, the horizontal rig is mobilized out (removed) to next job Products & Services Used: Drilling contractor (owns rigs & equipment) Daywork drillers Drill site management Pit liners Steel pipes/casings Cement Wellhead equipment Float equipment, centralizers, baskets, etc. Drill bits, reamers, tools, power tongs Drilling mud & chemicals Fuel to operate the rig Diesel generators (power supply) Off-road diesel fuel to operate generators Trucking - equipment, water Short-line railroads - move equipment Well Completion Production & Pipeline Supply Chain Opportunities: What Happens During This Stage: o o o o o o o o o o o o o o Hydraulic Fracturing Water pipelines Water tanks (frack tanks) Geologists Engineering consultant Portable toilets Portable trailers, used for offices, living quarters Catering - food for workers Apartment rentals RV parks Hotels/motels Misc tools, services & rentals Onsite security Secure storage containers (for equipment) Bus service to shuttle workers Garbage hauling 213111 - Gas well drilling on a contract basis 213112 - Geological exploration for oil and gas on a contract basis 213112 - Mud service for oil field drilling on a contract basis 213112 - Cementing oil and gas well casings on a contract basis 213112 - Building, erecting, repairing, and dismantling oil and gas field rigs 238320 - Engineering structure painting (e.g., oil storage tank, water tower) 238990 - Crane rental with operator 238990 - Manufactured (mobile) home set up and tie down 331210 - Well casings made from purchased iron or steel 332420 - Water tanks, heavy gauge metal, manufacturing 332420 - Bulk storage tanks, heavy gauge metal (secure), manufacturing 333132 - Gas well machinery and equipment, including drill bits, reamers, etc. 336211 - Tank trucks (e.g., water) assembling on purchased chassis 423320 - Cement merchant wholesalers 423610 - Generators, electrical, merchant wholesalers 424340 - Boots (safety/work) merchant wholesalers 424690 - Drilling muds merchant wholesalers 424720 - Petroleum and petroleum products merchant wholesalers (diesel fuel) 482112 - Short-line railroads 484220 - Mobile home/office towing services, local 484220 - Trucking services (equipment, drill cuttings, water) 485510 - Bus charter services 531110 - Apartment rental or leasing 531190 - Mobile (manufactured) home/office rental or leasing 531190 - Trailer/RV park or court, residential 532120 - Truck trailer rental or leasing 532310 - General rental centers (construction tools, etc.) 532412 - Oil & gas well drilling machinery and equipment rental or leasing 532412 - Crane rental or leasing without operator 532490 - Generator rental or leasing 541330 - Engineering services (geological, petroleum, environmental) 561612 - Security guard services 561990 - Support Services: Pit Liners 562111 - Garbage collection services 562991 - Portable toilet renting and/or servicing 721110 - Hotels & motels 722320 - Catering services 812332 - Protective apparel supply services 812332 - Work clothing and uniform supply services, industrial 812332 - Laundry services, industrial ©Marcellus Drilling News | You May Redistribute for FREE – Must Credit MarcellusDrilling.com as Source Page 5
  • 6. Marcellus/Utica Shale Supply Chain Opportunities Exploration Lease, Acquisition, Permits Site Construction Drilling & Well Construction o o o o o o The wellbore is cleaned out Water is trucked to the site and stored in a frack pond or in tanks Sand is trucked to the site Mobilize (bring) equipment to the site Coil tubing rig (or directional drill) inserts a perforating gun at the very end of the lateral (horizontal) section The first stage is perforated and the gun is removed The first fracturing phase begins by pumping water mixed with chemicals down the hole (12-18 large water pumps on tractor trailers used to do it) Fracking fluid (93% water, 6% sand, 1% other additives) is forced through the perforated holes The fracking fluid under pressure breaks apart/cracks the shale to release the gas Most of the sand stays behind in the fractures to "prop open" the cracks (called a "proppant") Once a stage is completed, a plug is inserted to prevent frack fluid from re-entering that area The plug also prevents gas from flowing to the surface while other stages are fracked The fracking process is repeated 10-20 times ("frack stages") until the entire horizontal lateral is fracked Products & Services Used: Trucking equipment to/from the site High pressure water lines Water tank rentals Diesel fuel to run water pumps (4,000 gal per stage) 4-5 million gal of water used in fracturing Frack sand (250 tons per 300 foot stage) Short-line railroads transport sand & equipment Chemicals used in frack fluid Hauling 4-5 million gal of water to the site Hauling sand to the site Hauling chemicals to the site Pressure washing/cleaning the rig Well Completion Production & Pipeline Supply Chain Opportunities: What Happens During This Stage: o o o o o o o Hydraulic Fracturing Garbage hauling Wireline unit Crane Pressure control equipment Catering - food for workers Apartment rentals RV parks Hotels/motels Misc tools, services & rentals Onsite security Secure storage containers (for equipment) Bus service to shuttle workers 212322 - Silica sand quarrying and/or beneficiating 213111 - Gas well drilling on a contract basis 213112 - Building, erecting, repairing, and dismantling oil and gas field rigs 213112 - Wireline services, oil and gas field, on a contract basis 238990 - Crane rental with operator 331210 - Water pipe made from purchased iron or steel 423610 - Generators, electrical, merchant wholesalers 424340 - Boots (safety/work) merchant wholesalers 424690 - Industrial chemicals merchant wholesalers 484220 - Trucking services (hauling water, sand, chemicals, equipment) 424720 - Petroleum and petroleum products merchant wholesalers (diesel fuel) 482112 - Short-line railroads 485510 - Bus charter services 531110 - Apartment rental or leasing 531190 - Mobile (manufactured) home/office rental or leasing 531190 - Trailer/RV park or court, residential 532310 - General rental centers (construction tools, etc.) 532411 - Water tank rental or leasing 532412 - Oil & gas well drilling machinery and equipment rental or leasing 532412 - Crane rental or leasing without operator 532490 - Generator rental or leasing 561612 - Security guard services 561790 - Pressure washing services 562111 - Garbage collection services 721110 - Hotels & motels 722320 - Catering services 562991 - Portable toilet renting and/or servicing 812332 - Protective apparel supply services 812332 - Work clothing and uniform supply services, industrial 812332 - Laundry services, industrial ©Marcellus Drilling News | You May Redistribute for FREE – Must Credit MarcellusDrilling.com as Source Page 6
  • 7. Marcellus/Utica Shale Supply Chain Opportunities Exploration Lease, Acquisition, Permits Site Construction Drilling & Well Construction What Happens During This Stage: o o o o o o o o o Drill out the inserted plugs, flow back (about 10-20% of the fracking fluid) returns to the surface Flow back must be disposed by: (1) recycling it onsite via a mobile unit to recondition/reuse the fluid for more fracking (2) trucked to a nearby temporary recycling facility to recondition/reuse the fluid for more fracking (3) trucked to special (permanent) treatment facility for processing and disposal via sewage plant (4) trucked to federally licensed deep injection well , pumped into the ground for long-term storage Finish cleaning out the wellbore Install the wellhead that allows a controlled removal of hydrocarbons (includes multiple components like casing head, tubing head, and the “Christmas tree”) Mobilize/remove equipment from the site that was used to drill/frack Reclaim the land at the drill site – re-contour land, remove roads, spread topsoil, landscaping, replanting Remove water retention pond Install fencing around the small area left for ongoing production Repair public roadways if damaged Hydraulic Fracturing Well Completion Production & Pipeline Supply Chain Opportunities: 213111 - Gas well drilling on a contract basis 212313 - Crushed and broken stone mining and/or beneficiating 213112 - Building, erecting, repairing, and dismantling oil and gas field rigs 237310 - Road construction & repair 238990 - Fencing contractors, installation 333132 - Gas well machinery and equipment manufacturing 444190 - Fencing, construction materials suppliers 484220 - Trucking services (hauling wastewater/flowback, stone, equipment) 532412 - Oil & gas well drilling machinery and equipment rental or leasing 561730 - Landscaping services Products & Services Used: Drill bit for plugs Hauling wastewater/fracking fluid away from the site Mobile wastewater recycling unit for onsite (or nearby) Wellhead installation service Crushed stone for the wellhead pad Wellhead components: casing head, tubing head, Christmas tree Metering system Fencing company Landscaping services Road building/repair services Trucking (equipment, hauling wastewater) ©Marcellus Drilling News | You May Redistribute for FREE – Must Credit MarcellusDrilling.com as Source Page 7
  • 8. Marcellus/Utica Shale Supply Chain Opportunities Exploration Lease, Acquisition, Permits Site Construction Drilling & Well Construction What Happens During This Stage: o o o o o o o o o o o o Pipeline company negotiates with landowners for right-of-ways and easements to allow gathering pipeline Gathering pipeline is constructed Wells at a pad are connected to the gathering pipeline and the gas and liquids begin to flow Water/moisture in the gas is separated at the well site and stored in tanks that are emptied regularly Special metering equipment (powered by solar panels) is placed at the well to monitor/measure gas flow Measurements are used to calculate and periodically pay royalties to the landowner The well site is inspected on a regular basis to ensure safe, ongoing operation Gathering line may be connected direct to a transmission line if the well produces "dry gas" (methane-only) Otherwise, the gathering line is connected to a processing plant to separate out impurities and gas liquids Processing plants are connected to transmission lines and transmission lines transport the gas to market Compressor stations are needed every 40-100 miles along a transmission line to pressurize the gas Constructing a compressor plant or processing plant involves lots of heavy construction equipment, cement, construction materials, roads to be built, etc. and is beyond the scope of this supply chain analysis Products & Services Used: Landmen, to negotiate right-of-ways and easements Attorneys (for landowner and pipeline company) Surveying, civil engineers GIS/mapping Solar panels to operate metering equipment Natural gas metering equipment Pipelines Construction workers Construction equipment (backhoes, bulldozers, graders, etc.) Welders & welder helpers Welding supplies Pipeline inspection equipment (valves, meters, leak detection) Landscaping services Hydraulic Fracturing Well Completion Production & Pipeline Supply Chain Opportunities: 213112 - Pipe testing services, oil and gas field, on a contract basis 237120 - Pipeline, gas and oil, construction 238190 - Welding, on site, contractors 238910 - Heavy equipment rental with operator - bulldozer, backhoe, crawler, etc. 331210 - Pipe made from purchased iron or steel, manufacturing 334514 - Metering devices 334519 - Gas leak detectors 423690 - Solar cells merchant wholesalers 423810 - Construction and mining machinery & equipment merchant wholesalers 423830 - Welding machinery and equipment merchant wholesalers 423840 - Welding supplies merchant wholesalers 424910 - Agricultural supplies: mulch, fertilizer, grass seed 484220 - Trucking (gravel, sand, top soil, equipment) 486210 - Gas, natural, pipeline operation 486910 - Natural gas liquids pipeline transportation 531390 - Landman services 532412 - Welding equipment rental or leasing 532412 - Heavy equipment rental without operator - bulldozer, backhoe, crawler, etc. 541110 - Attorneys' offices (including oil & gas, tax, real estate) 561320 - General labor contractors (i.e., personnel suppliers) 541330 - Civil/construction engineering services 541360 - Aerial geophysical surveying services 541370 - Topographic, land, hydrographic surveying services 561730 - Landscaping services 541990 - Pipeline inspection (i.e., visual) services ©Marcellus Drilling News | You May Redistribute for FREE – Must Credit MarcellusDrilling.com as Source Page 8
  • 9. Marcellus/Utica Shale Supply Chain Opportunities Exploration Lease, Acquisition, Permits Site Construction Drilling & Well Construction Hydraulic Fracturing Well Completion Production & Pipeline MARCELLUS/UTICA SHALE SUPPLY CHAIN Locating Opportunities for Your Business “Companies need to be patient but persistent in order to become suppliers for the shale gas industry.” - Drew Cowley, procurement operations manager for Chevron Now that you have an idea of what stage in the process your business may be able to sell a product or service to the drilling industry, how do you go about finding the right person or people to talk to? What’s the first call to make, prospecting email to send or networking function to attend? We recommend the following strategy to identify the right person/people you need to speak with: 1. Get listed in directories 2. Get help from organizations & agencies set up to assist you 3. Identify the right person by using online directories—specifically LinkedIn 4. Get on the approved vendor list & be persistent ©Marcellus Drilling News | You May Redistribute for FREE – Must Credit MarcellusDrilling.com as Source Page 9
  • 10. Marcellus/Utica Shale Supply Chain Opportunities Exploration Lease, Acquisition, Permits Site Construction Drilling & Well Construction Hydraulic Fracturing Well Completion Production & Pipeline MARCELLUS/UTICA SHALE SUPPLY CHAIN Locating Opportunities for Your Business 1. Get listed in directories This is a “low grade ore” activity. Do it because it’s there, it’s free (or very low cost), and hey, you never know! You may get an inquiry from a driller or someone involved in the industry who needs a service or product just like yours. Just don’t expect a flood of calls to start coming in. This is a “cover all the bases” activity to get you started. Here are the online directories we recommend you list your company and it’s products/services with: • Marcellus on Main Street - marcellusonmainstreet.org ($25/year) • ShaleLink - shalelink.com (free) • Ohio Shale Energy - www.ohioshaleenergy.com (free) • PIOGA Members Service Directory www.pioga.org/service-directory (requires membership in PIOGA) • Shale Directories - www.shaledirectories.com (free?) ©Marcellus Drilling News | You May Redistribute for FREE – Must Credit MarcellusDrilling.com as Source Page 10
  • 11. Marcellus/Utica Shale Supply Chain Opportunities Exploration Lease, Acquisition, Permits Site Construction Drilling & Well Construction Hydraulic Fracturing Well Completion Production & Pipeline MARCELLUS/UTICA SHALE SUPPLY CHAIN Locating Opportunities for Your Business 2. Get help from organizations & agencies set up to assist you • Penn State Extension - extension.psu.edu/naturalgas - Full of great publications and great people to assist you • Marcellus Shale Coalition - marcelluscoalition.org - Dedicated people on staff to assist companies with supply chain • Chamber of Commerce - Join your local Chamber if you’re not a member, many have instituted shale supply chain initiatives • Marcellus Shale Chamber of Commerce - marcellusshalechamber.com - Dedicated division of the Southpointe PA Chamber • ASPOG (Appalachian Shale Play Oil & Gas) - www.aspog.com - Networking group for shale industry professionals • Government agencies - Often county and city governments have a department for economic development, some focus on shale • Economic development groups (private or government) - Local groups focused on regional economic development ©Marcellus Drilling News | You May Redistribute for FREE – Must Credit MarcellusDrilling.com as Source Page 11
  • 12. Marcellus/Utica Shale Supply Chain Opportunities Exploration Lease, Acquisition, Permits Site Construction Drilling & Well Construction Hydraulic Fracturing Well Completion Production & Pipeline MARCELLUS/UTICA SHALE SUPPLY CHAIN Locating Opportunities for Your Business 3. Identify the right person by using online directories—specifically LinkedIn Don’t wait for others to assist you! Go out and find the right people. It will take some spade work, but in the end, it’s better to take your fate in your own hands. If other efforts like the aforementioned groups, or listings in directories help, excellent. But that’s no excuse for waiting around. Here’s a technique that you will only find explained right here in the Databook. Please be sure to try it. A. If you’re not already a member, join the online networking service called LinkedIn: www.linkedin.com. Just about everyone in a professional position has joined LinkedIn. Think of it as Facebook for business. The really great thing about LinkedIn is that profiles are created by individual professionals themselves who (most of the time) keep their details up to date. People change jobs and companies at an alarming rate. When they do, they update their profile details on LinkedIn. The LinkedIn service offers you the opportunity to search for people by company, job title, industry and geography. You’ll get great visibility into who they are if you’re connected to them directly, if you’re connected to them through someone else (called a 2nd or 3rd degree contact), or if you belong to the same “group” on LinkedIn. If you’re connected in some way, you get to see who they are. B. After joining LinkedIn, start “linking” with others. Send invites to real people that you actually know. Be careful about sending an invite to someone who does not know you—get your requests to link refused often enough and the LinkedIn service may curtail your ability to send new invites. Be sure to send an invite to James Allen Willis, Editor of Marcellus Drilling News. He’ll accept it! When you link with Jim, you’ll automatically become a 2nd degree contact with more than 1,000 people, giving you visibility into many gas industry professionals. ©Marcellus Drilling News | You May Redistribute for FREE – Must Credit MarcellusDrilling.com as Source Page 12
  • 13. Marcellus/Utica Shale Supply Chain Opportunities Exploration Lease, Acquisition, Permits Site Construction Drilling & Well Construction Hydraulic Fracturing Well Completion Production & Pipeline MARCELLUS/UTICA SHALE SUPPLY CHAIN Locating Opportunities for Your Business 3. LinkedIn, continued… C. Start joining groups. There are thousands of groups on the LinkedIn service—groups of people who share a similar interest. Some groups require you to be approved—send a request to join. Some will accept you automatically/immediately. Either way, join groups where you believe people you may want to contact for business belong—not necessarily to contact them directly using the LinkedIn service, but so you know who they are. When you join a group, all of its members and their basic details (name, job title, company, geography) become visible to you when searching, which we’ll discuss in the next section. Note: You may only join a maximum of 50 groups. Here’s a list of shale and energy-related groups MDN editor Jim Willis belongs to (groups you may want to join): Marcellus Drilling News America's Natural Gas Alliance American Petroleum and Energy Industries ASPOG Industry Networking Group Compressed Natural Gas (CNG) Downstream Natural Gas Pipelines & Compression Energy & Utilities Network Energy Industry Professionals ENERGY Management & Leadership Frac. Frontier & Unconventional Resources Global Gas Global Natural Gas Group Global Petroleum Forum Global Unconventional Gas Horizontal Directional Drilling Hydraulic Fracturing Linked:Energy (Energy industry expertise) Marcellus Shale Marcellus Shale Drillers Marcellus Shale Environmental and Regulatory Updates Marcellus Shale flowback water Marcellus Shale Formation Marcellus Shale Producers Midstream Oil & Gas Mineral Rights & Royalty Owners Oil & Gas IQ - Network for Oil & Gas Professionals ©Marcellus Drilling News | You May Redistribute for FREE – Must Credit MarcellusDrilling.com as Source Oil and Gas People Petroleum, Oil & Gas Industry Professionals Pipeline Professionals Shale Explorarion & Production Shale Gas & Unconventional Gas Innovators Shale Gas Drilling & Completions Society of Petroleum Engineers The Oil & Gas Explorationist Network Tri-State Shale Network - Utica/Marcellus Unconventional Gas Utica Shale Your Oil and Gas News Page 13
  • 14. Marcellus/Utica Shale Supply Chain Opportunities Exploration Lease, Acquisition, Permits Site Construction Drilling & Well Construction Hydraulic Fracturing Well Completion Production & Pipeline MARCELLUS/UTICA SHALE SUPPLY CHAIN Locating Opportunities for Your Business 3. LinkedIn, continued… D. Find the right person to speak with. Once you’ve connected with a few people and have joined some groups, you’re ready to begin searching. Go to: www.linkedin.com/search?trk=advsrch. Use the Databook maps to check out who’s drilling in the counties around you, select a driller name (like Chesapeake) and enter that into the Company field. In the Title field try entering “procurement” first, then try another search looking for “supply chain”. For a large company like Chesapeake you may get hundreds of results. Further limit the search by using a ZIP code for a city in your preferred region. Look for the person near you who hires or “procures” vendors for the “supply chain.” That’s the person that can help you get on the approved vendor list (see below). You won’t get an email or phone number in the LinkedIn search results list (unless you’re a 1 st degree contact with that person), but at least you can determine who the right person is, and get a good idea of where they are located. When you know who and where they are, it’s a simple matter of performing a Google search for the office where they work. You should be able to find a general phone number on the company website. Bonus Tip: We can often locate branch as well as main offices with phone and fax, and even contact names with emails, by using Don’s Directory - donsdirectory.com. Be sure to purchase access to the online directory (it’s not easy to find on the site!) ©Marcellus Drilling News | You May Redistribute for FREE – Must Credit MarcellusDrilling.com as Source Page 14
  • 15. Marcellus/Utica Shale Supply Chain Opportunities Exploration Lease, Acquisition, Permits Site Construction Drilling & Well Construction Hydraulic Fracturing Well Completion Production & Pipeline MARCELLUS/UTICA SHALE SUPPLY CHAIN Locating Opportunities for Your Business 4. Get on the approved vendor list & be persistent Even if you know which companies are looking to purchase the products and services your company offers, and even if you know who you need to talk to (the procurement/supply chain person), you still have hoops to jump through. MDN is told by supply chain experts that you need to get on a company’s “approved vendor list.” It’s a process to get on the list—company financials are reviewed, your company’s safety protocols and safety record are evaluated, certifications may be required, etc. Even when/if you get on the list, you still need to network and make connections and look for that first opportunity to prove your business can deliver. When that opportunity arrives, you need to ensure your company does an outstanding job. That’s how you’ll get repeat business. In other words, the Marcellus/Utica Shale supply chain business is real, it’s profitable and it’s there, but like any business opportunity, it takes hard work and persistence to make it happen. The natural gas industry is 24/7/365. Suppliers are expected to have the right people/products/services at the right place at the right time. You’ll work hard to earn the right to supply the industry, so when you get the opportunity, be sure you perform with excellence, and you’ll be handsomely rewarded. Good luck and good hunting! ©Marcellus Drilling News | You May Redistribute for FREE – Must Credit MarcellusDrilling.com as Source Page 15
  • 16. Marcellus and Utica Shale Databook 2013 Volume 1: 2013 Drilling Permits (Jan-Apr); 2011-2013 Trends by State & County, Drilling Contacts Publish Date: May 2013 Volume 2: 2013 Drilling Permits (May-Aug), List of Pipeline/Infrastructure Projects, Permits by Driller 2012-2013 Publish Date: Sep 2013 Volume 3: 2013 Drilling Permits (Sep-Dec), Waste Facility List, Calculating Well Decline Rates, Permits by Driller Publish Date: January 2014 Purchase Options Buy each volume individually for $149, or buy all three for $447 $298 Buy the 2012 3-volume series for $149 Site licenses/volume discounts also available, contact us for details To purchase, contact: Marcellus Drilling News Web: marcellusdrilling.com/databook Email: databook@marcellusdrilling.com Phone: (607) 218-2005 ©Marcellus Drilling News | You May Redistribute for FREE – Must Credit MarcellusDrilling.com as Source Page 16