1. Energy and Pittsburgh:
A Long History
Bill Flanagan
Executive Vice President-Corporate Relations
March 17, 2014

2. A Snapshot of the Pittsburgh Region
10 counties = 7,200 sq. mi
Population = 2.6 million
Gross Regional Product =
$119 billion
“Pittsburgh stands as a bold example of how to create new
jobs and industries while transitioning to a 21st century
economy. As a city that has transformed itself from the city
of steel to a center for high-tech innovation... Pittsburgh will
provide both a beautiful backdrop and a powerful example
for our work.”
-President Barack Obama,
Pittsburgh (G-20) Summit

3. • “Hell with the lid
off.”
• Streetlights at noon
• Extra white shirts to
work
The Steel City (1870s-1970s)

4. Renaissance City 1940s-1970s
•Public-private partnership
•Smoke control
•Urban redevelopment
A Story of Transformation
The Renaissance began in the 1940s with the formation of the
Allegheny Conference on Community Development, a non-
profit organization designed to bring together private sector
leadership to work in partnership with government to improve
the region. Together they cleaned the skies and rivers and
transformed the city itself with the first urban redevelopment
programs in the United States.

5. The Steel Bust
•Foreign imports
•Industry restructuring
•National recession
•Regional depression
A Big Setback in the 1980s

6. 1,050,000
1,100,000
1,150,000
1,200,000
1,250,000
1,300,000
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013*
* 12 month rolling average through June 2013.
Source: US Bureau of Labor Statistics, Local Area Unemployment Statistics, 10-county region
1,082,300
1,285,400
A Great American Comeback
Total Employment Reaches Record High, 1970-June 2013

7. We’re Hiring!
24,000 Open Jobs!

8. The World is Paying Attention

9. What’s Ahead?
• Enormous Opportunity
• A portfolio approach
• Collaboration to innovate
• In a word:

10. Our Rich Energy History

11. Our Rich Energy History

13. A New Center of American Energy

14. Opportunities in Our Energy Economy

15. Energy Companies Growing in the
Pittsburgh Region

16. We Are an Energy Innovator
$1 billion +
Government Universities Corporate
NETL Bettis
Pitt
CMU CONSOL
Westing-
house
Eaton
WVU
Penn
State
Coal Nuclear Systems
Source: Allegheny Conference analysis
PPG

17. National Energy Technology Laboratory
• Full service DOE federal lab
• Dedicated to energy R&D, domestic
energy resources
– Fossil energy
– Support offices of electricity and energy
efficiency
• Fundamental science through
technology demonstration
• Unique industry-academia-government
collaboration
• Tech Transfer Program
– Transfer of research and patented
technologies to industry, entrepreneurs,
universities and other government
agencies
NETL Program Areas:
Strategic Center for Coal
Carbon Capture, Carbon Storage,
Advanced Energy Systems, Cross-
Cutting Research
Strategic Center for Natural Gas
Deep & Ultra Deep Water Oil,
Unconventional Gas, Methane
Hydrates, Enhanced Oil Recovery
Project Management Center
Building Technologies, Distributed
Energy, Vehicle Technologies,
Weatherization

18. Marcellus Shale
• The Marcellus Shale geological
formation is one of the largest
unconventional natural gas
reserves in the world:
– Pittsburgh is the largest metro atop the
Marcellus Shale
– 95,000 square miles of approx. 60% of
Pennsylvania’s land mass
– Marcellus Shale contains 141 trillion
cubic feet of recoverable natural gas
– In the Marcellus Shale play alone, an
estimated 7,000+ wells will be drilled
between 2011-2014
– Prompted 150+ companies to expand
their exploration, drilling or service
operations in the Pittsburgh region
since 2007

19. Utica Shale –
The Natural Gas Giant Below the Marcellus Shale
• The Utica Shale is located a few
thousand feet below the Marcellus
Shale
– Potential to become an enormous
natural gas resource
• More geographically extensive and
thicker than Marcellus Shale
• Already proven its ability to support
commercial production
– Liquids-rich play…oil
– Early testing indicates it will be a very
significant resource
• The Utica Shale has a much higher
carbonate content and a lower clay
mineral content than the Marcellus
Shale

20. 150+ Natural Gas-Related Companies Have
Expanded into the Pittsburgh Region Since
2007
Accelergy Corporation
Allied Technology
Allis-Chalmers Energy, Inc.
Baker Hughes Oilfield Operations
BJ Services Co.
Bowles Rice, LLP
Burleson Cooke, LLP
Cabot Oil & Gas Corp.
Calfrac Well Services
Carrizo Oil & Gas, Inc.
Chesapeake Energy
Complete Production Services, Inc.
Core Laboratories, LP
Crescent Directional Drilling
Cudd Energy Services
Direct Energy
EOG Resources, Inc.
Express Energy Services, LP
Exterran Holdings, Inc.
Fagen, Inc.
Flotek Industries, Inc.
Flow Data, Inc.
FMC Technologies, Inc.
FTS International
Fulbright & Jaworski
Green Field Energy Services
Halliburton Energy Services
Hunting Energy Service
Key Energy Services, Inc.
Kimzey Casing Service, LLC
Kinder Morgan Energy Partners
Marathon Oil Co.
McJunkin Red Man Corporation
National Oilwell Varco
Newfield Exploration
Royal Dutch Shell
Sadler Law
Schlumberger Limited
Seneca Resources
Smith International
Spectra Energy Corp.
Stallion Oilfield Services
Swift Worldwide Resources
Talisman Energy, Inc.
Tennessee Gas Pipeline Co.
Texas Eastern Transmission, LP
The Williams Companies
Thomas Petroleum
TSI Flow Products, Inc.
Universal Pegasus International
Valerus Compression Services
Weatherford U.S., LP
Wilbros International
WPX Energy

21. Center for Sustainable Shale Development
(CSSD)
• Safe, sustainable shale resource development
– Continuous improvement and
innovative practices through 15
performance standards (air &
climate and surface & groundwater)
and third-party certification
• Unprecedented collaboration
– Serves as a forum for a diverse
group of stakeholders
(environmental organizations,
foundations, energy companies) to
share expertise with the common
objective of developing solutions
and serving as a center of
excellence for shale gas
development
STRATEGIC PARTNERS
Chevron
Citizens for Pennsylvania’s
Future
Clean Air Task Force
CONSOL Energy
Environmental Defense Fund
EQT Corporation
Group Against Smog and
Pollution
Heinz Endowments
Pennsylvania Environmental
Council
Shell
William Penn Foundation

22. Wet Gas Geology
Marcellus gas around Greater Pittsburgh is rich in
ethane, propane, other liquids
• Supply of “wet gas” could
lead to new petrochemical
production capacity in
Greater Pgh.
• Thousands of jobs, billions
of $$ of investment.

23. Initiative: Wet Gas Development
Natural gas production & supply chain
•Target is feedstock for petrochemicals, plastics.
•Creates high-value manufacturing jobs.
Upstream:
Exploration &
Production
Midstream:
Storage &
Transmission
Pipelines
Downstream:
Uses including
•Gas distribution
•Fuel
•Gas-to-Liquids
•Feedstock for
petrochemical,
plastics industries

24. What’s Next: Petrochemicals
•Land option for Beaver County site
•Further evaluation underway:
•Environmental analysis
•Engineering design studies
•Evaluation of ethane supply
•Economic viability
Proposed Shell Petrochemical Complex
Shell’s Singapore Cracker

25. Chemistry in the Pittsburgh Region
• Regional strengths
– 250+ chemistry firms
– HQs and/or corporate support
operations to industry leaders:
• Almatis, Axiall, Bayer, Calgon Carbon,
INDSPEC, Koppers, LANXESS, NOVA
Chemicals and PPG Industries
– Significant manufacturing presence:
• BASF, Eastman Chemical, Nalco
– Two dozen major chemistry research
facilities
– Chemicals represent the fourth largest
export from the Pittsburgh region –
more than $1 billion in 2011

26. Plastics in the Pittsburgh Region
• Regional strengths
– Home to 112 establishments employing
5,100 workers directly and 10,200
indirectly
– Contributes $1.6 billion in economic
activity
– Cutting edge plastics technologies –
from companies like ATRP Solutions
and Plextronics (both CMU spinouts) –
are using plastics in a whole new way

28. Emerging Priority – Workforce
Comprehensive workforce program targeting the natural gas and oil
industries
• Launched in 2010 with a $4.9 million Labor grant – 4 states, 71 counties
• Has since trained more than 5,047 people; 1,485 employed in the industry
• Received $14.96 million follow on grant in 2012 to expand curriculum nationally
o Applies to upstream, midstream and downstream occupations

29. For more information
Bill Flanagan, Executive Vice President
Allegheny Conference on Community Development
11 Stanwix Street
Pittsburgh, PA 15222
412-281-1890
bflanagan@alleghenyconference.org
www.alleghenyconference.org