Appalachia Development Group

'Virtually No Risk of Drilling Restrictions,' West Virginia Official Tells Fracking-Reliant Petrochemical Industry

Read time: 8 mins
A slide from a presentation by West Virginia official Michael Graney, who listed "virtually no risk of drilling restrictions" as a reason to bring fracked-gas reliant petrochemical development to the region.

This week, at an industry conference focused on wooing petrochemical producers to West Virginia, officials from the state and federal government made clear their support for continuing fracked shale gas extraction and petrochemical industry development near the natural gas-rich Marcellus Shale.

Why should petrochemical companies build in West Virginia, Pennsylvania, and Ohio? For one thing, don’t expect regulation of shale gas drilling, Michael Graney, executive director of the West Virginia Development Office, predicted in his presentation.

Climate Emissions From Gulf Coast’s New Petrochemical, Oil and Gas Projects Same as 29 New Coal Power Plants

Read time: 5 mins
Petrochemical plant in the Houston Ship Canal

In the last six years, officials in Texas and Louisiana issued permits allowing 74 petrochemical, oil, and gas projects to pump as much climate-warming pollution into the atmosphere as running 29 coal-fired power plants around the clock, according to numbers released September 26 by the nonprofit watchdog Environmental Integrity Project.

And construction appears to be speeding up, with over 40 percent of those projects permitted between 2016 and mid-2018. The 31 most recent projects combined will add 50 million tons of greenhouse gases — equal to 11 new coal-fired power plants — to the world’s atmosphere in a year, the watchdog adds.

$83 Billion West Virginia Petrochemical Deal with China on Skids Due to Trade War, Corruption Probe

Read time: 9 mins
Brian Anderson, Woody Thrasher, Jim Justice

Last November, China and West Virginia signed an $83.7 billion dollar, 20-year agreement to build a massive petrochemical hub in the state but that deal may be on hiatus in the midst of a de facto trade war spurred by President Donald Trump and a corruption investigation unfolding in the Mountain State. 

The deal would be worth more than the total gross domestic product of West Virginia, which was $76.8 billion in 2017. China's sizable investment would create a sprawling petrochemical center in West Virginia, focused on storing and refining natural gas obtained via hydraulic fracturing (“fracking”) in the Marcellus Shale. Full details are sealed in a yet-to-be-released Memorandum of Understanding (MOU), which was inked during a trade mission attended by Trump and Chinese President Xi Jinping last fall in Beijing, China.

China Is Financing a Petrochemical Hub in Appalachia. Meet its Powerful Backers.

Read time: 16 mins
U.S. President Trump, Chinese President Xi Jinping, and West Virginia Commerce Sec. Thrasher join in the Great Hall in Beijing for MOU signing for the Appalachian Development Hub  in November 2017

Over the past year, oil and gas industry plans to build a petrochemical refining and storage hub along the Ohio River have steadily gained traction. Proponents hope this potential hub, which would straddle Pennsylvania, Ohio, West Virginia, and Kentucky, could someday rival the industrial corridor found along the Gulf Coast in Texas and Louisiana.

Those plans center around creating what is known as the Appalachian Storage Hub, which received a major boost on November 9 during a trade mission to China attended by President Donald Trump and U.S. Secretary of Commerce Wilbur Ross. At that trade mission, also attended by Chinese President Xi Jinping, the China Energy Investment Corp. announced the signing of a memorandum of understanding (MOU) to invest $83.7 billion into the planned storage hub over 20 years. For comparison, West Virginia's gross domestic product (GDP) in 2016 was $72.9 billion.

Though called the Appalachian Storage Hub as a broad-sweeping term, in practice the hub could encompass natural gas liquids storage, a market trading index center, a key pipeline feeding epicenter, and a petrochemical refinery row. Its prospective development has been spurred by the current construction of a $6 billion petrochemical refining facility in Pennsylvania owned by Shell Oil.

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