The Penn State Workforce Education and Development Initiative conducted an analysis recently of the economic impacts of gas and oil extraction and refining in McKean County and released the  Economic and Workforce Brief, “Role of Gas & Oil Extraction & Refining in the Economy of McKean County.” The Brief quantifies the role of every 100 workers employed by the gas and oil extraction and refining industry in generating jobs, compensation, and property taxes in the region.   
 
The analysis in the Brief focuses on the impact of the gas and oil extraction and refining industry in McKean County. The gas and oil extraction and refining industry was created for the Brief by combining information available separately for oil and gas extraction, drilling oil and gas wells, support activities for oil and gas operations, and petroleum refineries. Data from the 2002 Economic Census, the most recent economic census available, indicate that:

  • There were 152 establishments in the Pennsylvania involved in oil and gas extraction that generated $583 million in receipts (0.5% of US receipts in oil and gas extraction) with 1,640 employees (1.6% of US employees in oil and gas extraction) and an annual payroll of $81.4 million (1.5% of US payroll in oil and gas extraction).
  • There were 48 establishments in the Pennsylvania involved in drilling oil and gas wells that generated $101.8 billion in receipts (1.1% of US receipts in drilling oil and gas wells) with 789 employees (1.3% of US employees in drilling oil and gas wells) and an annual payroll of $31.8 million (1.3% of US payroll in drilling oil and gas wells).
  • There were 80 establishments in the Pennsylvania involved in support activities for oil and gas operations that generated $105.2 million in receipts (0.9% of US receipts in support activities for oil and gas operations) with 1,007 employees (0.9% of US employees in support activities for oil and gas operations) and an annual payroll of $36.3 million (0.9% of US payroll in support activities for oil and gas operations).
  • There were 9 establishments in the Pennsylvania involved in petroleum refineries that generated $10.4 billion in receipts (5.4% of US receipts in petroleum refineries) with 3,482 employees (5.7% of US employees in petroleum refineries) and an annual payroll of $229.4 million (5.3% of US payroll in petroleum refineries). 

An exemplary firm involved within the gas and oil extraction and refining cluster is American Refining Group, Inc. located in Bradford, PA. The refining facility is located on about 131 acres in McKean County just off of U.S. Route 219. The company is mainly engaged in refining 100% pure Pennsylvania grade crude oil, which carries the trademark name “PENN-GRADE™”. Other products manufactured by the company are petroleum resins, petroleum extracts, slack waxes, and petrolatums under the Kendex® product name. Specialty PENN-GRADE™ naphthas and distillates under the Kensol® product name are also created by American Refining Group, Inc. For more information about American Refining Group, Inc., refer to the following website:
http://amref.com

An analysis behind a Penn State Economic & Workforce Brief targets an industry (a group of establishments providing similar products or services), not an individual firm. As a result, economic and workforce impacts calculated for a Brief represent an industry average, not the impacts generated by an individual firm.
 
For additional information about this Brief or about the work of the Penn State Workforce Education and Development Initiative, contact Rose M. Baker (814.865.9919; rmb194@psu.edu) or David L. Passmore (814.863.2583; dlp@psu.edu). To view other Brief reports produced about other Pennsylvania industries and regions, navigate to:
http://PSUBrief.notlong.com
Order a Brief for your area using a form provided on this web site.