The economic vitality created by just one natural gas well may have steady, active job production for up to 20 years. A typical gas well will produce both gas and a certain amount of oil or condensate. Most wells require a chemical treatment program. The chemicals used address problems from scaling and paraffin build up to H2S treatments. It is quite normal to have some type of field compression for enhanced or better rates of recovery from the reservoir. Naturally, everyone is interested in measuring the amount of gas and associated oil or condensate produced as to calculate the revenue from the well’s production.
From these various functions and components it is contended here that a typical well contributes to the livelihoods of 115 people. (Click below for the full report that describes how this figure is derived.) Each of these 115 jobs directly associated with the economic job engine of a producing well supports the livelihood of three more people as these paychecks are brought home and become consumer dollars.
There are also considerable economic benefits in the form of excise taxes into the coffers of state and local governments and royalty payments to the mineral owners.
Economic models established to justify other community activity are excellent tools for the oil and gas industry to utilize in demonstrating the economic stimulus our endeavors create. At a time when every job has value, we can never lose focus on the high value jobs that the oil and gas industry supply to our nation.
About the Author: Mark Goloby is president of TC Technologies, which delivers wireless data-monitoring tools for oil and gas production and assets needed to support production. He can be reached at firstname.lastname@example.org.
Download Mark Goloby’s full report, “The Oil and Gas Job Multiplier:” theoilandgasjobmultiplier
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