Sample Technology Essay on Drilling Feasibility Study

Executive summary

This report provide documentation on whether drilling is bad or good for the housing sector in the region. Instead, the report will provide a description and characterization of the some of the observed effects of in the areas where the activities of natural gas drilling are already in progress in housing.

Assessment criteria

Inasmuch it is still unclear on how drilling may contribute of fail to take place in the state of New York, there is a common assumption that there will be numerous similarities between the way drilling activities have in the past been conducted in other regions and that which is conducted in the state of New York.

Possible Solutions

The natural gas drilling companies in collaboration with the local government and the investors have been able to mitigate challenges arising from housing problems is through the construction of modern hoses that meet the divergent demands of different employees with disposable income to spend on housing.

 

Analysis of the Solutions

The decision by the local government and the drilling companies to allow their employees to seek hosing facilities in New York counties such as Ithaca does not necessarily mean that there will be even development in all the countries.

Stakeholder Concerns

The major stakeholders in this situation include the Chesapeake Energy, the local government the local investors in the housing sector. An increase in the population of workers drawn from nearby counties or other states would mean that the housing departments will face challenges in relation to its ability to provide affordable and sustainable housing infrastructures.

Recommendations/conclusion

Timely collection and sharing of information between government agencies, private developers in the housing sector and the drilling company can helps in developing accommodation facilities. This will be enhanced by their ability to contact officials in other areas within the country facing similar challenges and the development of lasting sol

Introduction

The main aim of this study is to provide an in-depth analysis of the effects of Marcellus Shale natural gas drilling activities on the quality, availability and the cost of housing for residents in the environment. This report does not aim at providing a documentation on whether drilling is bad or good for the housing sector in the region. Instead, the report will provide a description and characterization of the some of the observed effects of in the areas where the activities of natural gas drilling are already in progress. The effects will be identified with the aim of identifying the potential for communities in the state of New York. In contrast to other aspects that are related to the activities of drilling, the issues that share some relationship with drilling will be at the level of the local government. It is therefore essentially important that the local government be informed concerning the effects of drilling on housing (Wilber 113). This will help in the development of an effective plan to handle all the negative foreseeable effects while enhancing the positive ones. This will also allow the drilling companies and the local government to identify the best methodology of responding as novel and untested scenarios develop.

Assessment of Criteria

This study will not only be effective in the characterization of housing impacts, it will also play a role in the process of providing essential suggestions on the best ways of mitigating some of the potentially negative impacts. This does not provide the implication that all or most of the effects of drilling on the housing infrastructure will be negative. Instead, the study seeks to find out and suggest the best methodologies that governments can use in ensuring the protection of the most vulnerable members of the community (Gilmore 535). Inasmuch it is still unclear on how drilling may contribute of fail to take place in the state of New York, there is a common assumption that there will be numerous similarities between the way drilling activities have in the past been conducted in other regions and that which is conducted in the state of New York (Reuther 34). Existing case studies in the state of Pennsylvania seem to provide the most accurate image of natural gas drilling and development in the state of New York. The accuracy has been attributed to the perceived similarities in the demographics, landscape, geographical features ad land uses compared to those of Texas and other states within the United States (Gilmore 535).

Map showing Median household income by Census Tract (Lepori 2000)

An annual population change of about 1,000 people for instance might have a massive impact on a smaller population. However, the impact of this population on a large urban area might have little or no effect. When assessing the effects of the housing situation in relation to drilling of natural gas in the state of New York, it is possible to argue that this is an aspect that is largely affected by the availability of vacant houses. The proportion or renters to those of house owners, income distribution of the community and the degree and length of time of the natural gas drilling development among other factors are important factors (Gilmore 536). The combination of these factors plays an essential role in the determination of the character of any hosing related effects on the community during the natural gas drilling and developments period in the state of New York.

For this reason, it will be important to consider the effects that can be observed but also the possibility of developing an understanding on the context in which they occur. This is one way of ensuring that more accurate comparisons are developed to fulfill the possibility of achieving more desirable impacts (Gilmore 539).

The process of assessing the impact of natural gas drilling on the housing challenges will be addressed using available secondary data. This will be through an understanding of the formal studies of housing in drilling areas especially on the challenges associated with the development of sustainable and affordable infrastructure. It will also be essential in the determination of the speed with which the drilling companies operate or change the mode of operations (Reuther 39). This must also be studied in relation to the time frame that constitutes the period through which the drilling companies will be operating in the locality. In the process of assessing these activities it will be important for secondary sources to be cross checked and corroborated with other studies where necessary(Pa. House. Urban Affairs and Housing Committee 29)

Possible Solutions

The possible effects of natural gas drilling activities on housing largely occur due to unpredictable shifts in the income of the local population in relation to their demands for of housing services. In Pennsylvania, these gas drilling companies spurred economic development in the state. This is because of the provision of employments opportunities to both permanent and transit workers. One possible effect of this approach would be an increase in terms of the population of the area (Reuther 39). This was however assumed to present some form of unpredictable and largely uncontrollable outcomes has made it relatively complex for the local government and other investors to capture the benefits or in some situations mitigate the possible consequences in this environment (Jacquet 43).

Map showing Rental housing stock at Bradford County

One way by which the natural gas drilling companies in collaboration with the local government and the investors have been able to mitigate challenges arising from housing problems is through the construction of modern hoses that meet the divergent demands of different employees with disposable income to spend on housing. Drilling has become a major contributor to the reduction of unemployment situation in Pennsylvania from 10% to 7%. This is an indication of a relatively higher population with the ability to operate in an environment that allows them to access high quality houses (Jacquet 47).

Prior to the introduction of natural gas drilling activities in Pennsylvania the renters were in command of the pricing strategy that owners could charge. However, with the introduction of drilling activities there has been an increase in demand of houses and a relatively low supply. This is an indication that hosing prices would increase (Reuther 40). One way by which the investors in collaboration with the local government was able to reduce any form of exploitation of the renters especially those working for the drilling company and the less fortunate was through the introduction of laws that seek to harmonize housing standards and the prices that the house owners can charge of their houses (Jacquet 49). The main objective of this activity was also aimed at ensuring that the most vulnerable and possible members of the society received better services even in the presence of the developmental initiatives proposed by the company.

The process of determining the relationship between housing development and the effect of the coming of a natural gas drilling company must be determined by intensity of development. This will be through the development of assessments between the overall number of hydraulic fractures, the pipelines being built and the rate at which these infrastructures are being debated. Such deliberations will provide the government and the company with the ability to gauge the contribution of the industry to the overall development of the locality (Jacquet 55). Drilling activities that occur in remote site may lead to the creation of demand of a large workforce in terms of the provision of food, housing and other needs that may not be feasible. This may compel the workers to seek help in nearby communities or they may be compelled to travel longer distances to work to ensure that they live in the surroundings that they desire (Trehab 20). The introduction of drilling wells in Bradford County led to an increase in the population hence the demand for more housing services. Shortage in housing services led to the desire by different individual in workforce to seek these services in away from their working areas (Pa. House. Urban Affairs and Housing Committee 29).

The decision by the drilling companies to grant workers permission to seek services in relatively far away destination was based on the understanding that the cost and the availability of houses in relation to the income received and their positions of employment (Jacquet 53). The living standards of a surrounding community and the possibility are essential determinants of the economic level of the company. This in most cases is affected by unpredictability of housing locations will affect the possibility of dispersing the growth rate and the possible impacts of the selected community.

Analysis of these above Solutions

The choices of housing facilities among workers are dependent on numerous factors that are relatively unpredictable been with the complete knowledge of the drilling patterns of the natural gas drilling companies. It is important to note that economic growth patterns of any locality may not in most cases coincide with the jurisdictional boundaries. This is based on the understanding that different communities in Southern tier New York have begun the process of experiencing some form of growth due to the decision by workers to choose to live in the surrounding New York communities (Jacquet 60). The decision by the local government and the drilling companies to allow their employees to seek hosing facilities in New York counties such as Ithaca does not necessarily mean that there will be even development in all the counties. For instance development may be experienced in Tompkins County. This however, cannot be used to mean that other counties such as Ithaca will experience similar impact s in terms other development (Trehab 67). It is possible that workers will be deterred with the seemingly high rent rates charged in these localities which are often a result of market saturation by different populations such as students. this can be used in affirming the assertion that most attempts of modeling housing trends in the face of natural gas drilling activities have had limited success at best (Reuther 44).

The development of natural gas is often accompanied not only with population increase but also with the availability of more employments opportunities, the existence of disposable income and the possibility of a rise in real estate development (Wilber 111). Chesapeake Energy, a natural gas drilling company for example has been able to provide to employments opportunities from than 1,000 resident of the state of New York. One of the possible effects in the rise of the economic situation of different members of the population is on the increase in competing needs from developable land that can be used for commercial, residential and industrial development (Trehab 34). Without proper policies within the location it will be relatively difficult for the natural gas drilling companies and their employees to ensure that they are involved in transparent purchasing of land for development purposes. In addition, the process of determining land for housing must be done in relation to the possibility that the company will continue operating its services on long or short-term. Such determination is considered crucial in teh development of the best ways to allocate and distribute land for housing development among residents (Pa. House. Urban Affairs and Housing Committee 29).

The idea by the local government in collaboration with the natural gas drilling company in Bradford County is based on the understanding that it is will be less inconveniencing for workers to seek housing services in neighboring counties at affordable prices in situations where the houses in Bradford are not sufficient for housing these individuals (Jacquet 67). this supposition is however incomprehensible on the assumption that it is relatively expensive considering the commuter prices and the possibility that the counties within the system of New York may be overwhelmed with the problem of housing considering an influx in the number of students seeking development. A solution to this problem would be for the local government together with the local investors to begin developing proper housing infrastructure within the county in areas to ensure the comfort of the working population within the county (Pa. House. Urban Affairs and Housing Committee 30).

The decision by the local government to collaborate with local investors and the natural gas drilling company to develop the housing industry can be viewed as an effective way through which the private entities and government agencies can operate with the objective of providing high quality houses at relatively lower prices (Pa. House. Urban Affairs and Housing Committee 30). Inasmuch as private developers may seem to be acquiring low profit margins, it is important to note that in the long term their profits may increase when perceived in the cumulative sense. Through this approach, the employees will be motivated to work considering that their company is focused on the realization of matters concerned with their wellbeing (Reuther 45).

Stakeholder Concerns

The major stakeholders in this situation include the Chesapeake Energy, the local government the local investors in the housing sector. An increase in the population of workers drawn from nearby counties or other states would mean that the housing departments will face challenges in relation to its ability to provide affordable and sustainable housing infrastructures. The Marcellus Shale natural gas drilling in Bradford is a promise to be a long term drilling activity (Legere 60). This is an indication that the Chesapeake Energy company has the responsibility of ensuring that the welfare of its employees is maintained at a level that will ensure that the employees are motivated to work. in addition, through such an approach it will be easier for the manages to develop an understanding on the best possible approach that can be used in providing sustainable housing as an approach towards the realization of employee and company objectives in the region (Reuther 47).

The biggest problem for the Chesapeake Energy company would be finds a way of ensuring that it employee are provided with better housing by the local government in collaboration with local stakeholders. This is based on the understanding that the company is a major tax payer to the local government. The decision to seek housing services in the neighboring communities can be used in explaining additional consist that the company must provide to its employees in terms of commuter and hose allowances (Legere 61).

The major concern of the local government will be to seek ways on how to collaborate with the local investors in ways that will ensure that they provide cheaper housing facilities that are in accordance with the hosing standards of the county. This will involve a reduction in the tariffs and the taxes to be remitted to the government. This will also compel the government to reduce strict regulations on the process of licensing of different businesses that are concerned with the provision of housing services (Reuther 51).

For the local investors in the housing department their major concern will be to determine the type of housing infrastructure that is to be developed in the locality in relation to the ability of the target customers to pay for the houses. In addition, more concern will be on the ability of the investors to acquire profits after investing in the housing project. This is often determined by the duration in which the drilling company envisions to stay in the location (Legere 62). In addition, the number of employees and their economic capabilities can also be cited as one of the most essential determinants of the type of housing facilities that the investments companies will provide to the workforce. The role of the government in the view of the employees will be to provide an economic environment that allows for the easy and relatively faster construction of the housing facilities to ensure that they are timely in terms of their ability to house the target customers in the period of their service to the drilling company (Pa. House. Urban Affairs and Housing Committee 35).

 

 

Recommendations/Conclusion

The above study is a demonstration that natural gas drilling by the Chesapeake Energy company can have significant effects on the availability, quality and cost on the housing options for residents and the working population in the region. These effects range from the impact of the company’s activities on the economic development on the region, increase in rents and the possibility of additional investments in housing (Jacquet 45). An appropriate understanding of these impacts can be important in the development workable plans for future natural gas drilling activities that may occur in the state of New York. One of the recommendations that the local government, the investor and unnatural gas drilling companies can use in reducing negative effects while promoting positive effects include

Timely collection and sharing of information between government agencies, private developers in the housing sector and the drilling company can helps in developing accommodation facilities. This will be enhanced by their ability to contact officials in other areas within the country facing similar challenges and the development of lasting solutions. Particularly it will be important to ensure that such developmental initiatives do not affect the vulnerable population considering that any volatility in terms of housing prices wills adverse effect on this population (Jacquet 48).

The creation of a regional task force can also be an essential approach towards mitigating any possible negative effects that may arise from the introduction of natural gas drilling activities. In the absence of unpredictable developmental activities such as natural gas drilling, the housing companies often focus on the needs of a specific population (Legere 60). It is important for the local governments together with the drilling company and the local investors in the housing industry to engage in a process of identifying and collecting information from different sectors that will help in the development of a better understanding on collective needs in housing. Such collaborations will also allow for the determination of how these needs are to be met through collaboration of the stakeholders. These will ensure the realization of their housing goals through active participation in the decision making and advisory process (Legere 61).

It will also be important for the stakeholders to possess some level of awareness of development scenarios. There are studies that focus on boomtowns in different states and countries were there has been gas drilling. Such areas have experiences on the long term effects of gas drilling on housing and can therefore be resourceful in providing learning areas. By so doing it will be critical for the stakeholders in Bradford County to focus on specific contextual factors that have been important in improving the hosing scenario (Reuther 45).

The creation of projection and mitigation strategies can be important in improving the ability of the stakeholders to ensure that matters of affordable and high quality hosing are addressed beforehand. These strategies van be developed by observing the trends in regions with a history of natural gas development. This will enable the establishment of a baseline of growth expectation (Legere 63). An understanding of the expectations will provide a platform of developing mitigation strategies in advance. These include deliberations on the ability of the Bradford County to solve housing problems through teh development of new structures, refurbishing older ones or seeking other solutions. The process of determining the best plan will also depend on the ability of the available resource to support the investment initiatives (Reuther 47).

Planning for the long term can also serve as a possible technique through for stakeholders can be able to handle the problem of housing. It is possible for the natural gas drilling company to create highly volatile economies and housing markets. Marcellus Shall is an extensive gas reserve that has the ability to develop for many years. It is therefore not viable to the stakeholders to wait for the impact of the development process (Wilber 112). As natural gas developments expand many areas within the locality will require more housing services due to an increase in the workforce. It will therefore be important for the stakeholders to pair effective land use strategize with the existing housing plans as a way of ensuring that there is long term hosing stability within the county ((Reuther 55)

References

Gilmore, J. S. “Boom Towns May Hinder Energy Resource Development: Isolated Rural

Communities Cannot Handle Sudden Industrialization and Growth Without Help.” Science 191 (1976): 535-540.

Jacquet, Jeffrey. Energy Boomtowns & Natural Gas: Implications for Marcellus Shale Local

Governments & Rural Communities. Edited by The Northeast Regional Center for Rural Development. NERCRD Rural Development Paper 43. http://nercrd.psu.edu/Publications/rdppapers/rdp43.pdf

Legere, Laura. “Gas Drilling Having Substantial, and Sometimes Surprising, Economic Impact.”

The Times-Tribune, April 25, 2010. http://thetimes-tribune.com/news/business/gasdrilling-having-substantial-and-sometimes-surprising-economic-impact-1.739031

Pa. House. Urban Affairs and Housing Committee. Public Hearing on Impact of the Natural Gas

Industry on Housing in North Central Pennsylvania., (Pa. Jan 2010) http://senatorgeneyaw.com/urban-affairs/2010/012110/agenda.htm

Pa. House. Urban Affairs and Housing Committee. Public Hearing on Impact of the Natural Gas

Industry on Housing in North Central Pennsylvania., (Pa. Sept 2010) http://senatorgeneyaw.com/urban-affairs/2010/092810/agenda.htm

Reuther, Mike. “Gas Industry Ripple Effect Pricing Some Out of Homes.” Sun Gazette, February

7, 2010. http://www.sungazette.com/page/content.detail/id/539069/Gas-industry-rippleeffect-pricing-some-out-of-homes.html?nav=5019

Trehab. Trehab to Pennsylvania Housing Finance Agency, Market Study/Housing Needs

Assessment. (Nov 2010). http://www.cce.cornell.edu/EnergyClimateChange/NaturalGasDev/Documents/City%20a      nd%20Regional%20Planning%20Student%20Papers/CRP5072_Housing_Final%20Report.pdf.

Wilber, Tom. “New Report Shows Natural Gas Economic Impact Will Be.” Press & SunBulletin,

April 1, 2010. http://www.pressconnects.com/article/20100401/ NEWS01/4010400/New-report-shows-natural-gas-economic-impact-will-be-minimal

Appendix A: Additional Figures and Maps

The number of subdivisions applications in Bradford County has been declining since landowners have held on to property (Lepori 2000)

Graphs show the Census data from 2000 in the bottom graph labeled 1. the graph labeled 2 shows data from 2006 to 2008.

Appendix B: Interview with Brian Davis, Regulatory Compliance Manager- Chesapeake

Below are the complete questions and the answers during my personal interview on Monday July, 13, 2015

  1. What is the mandate of this company to the surrounding community

The involvement of the Chesapeake in the drilling initiatives of natural gas in the county of Bradford is bound to boost the economic condition of the county. This is because it will provide employments opportunities to the local population and contribute to the revenues collected by the local government. In addition, the company has also become an indirect employer of those who will offer goods and services to the employees of the company hence overall beneficial.

  1. How does the involvement of the company in natural gas drilling affect the provision of housing services?

An increase in the population will mean that there will be more demand for houses to accommodate the working population. The prices of the locally available houses are expected to rise to fill the demand. Housing developments will also be initiated by the gover4nmsnst and other local investors.

  1. What is the role of the Chesapeake Company in ensuring the provision of adequate houses?

Chesapeake Company, through the involvement of the government and other stakeholders in Bradford County, endeavors to ensure that the necessary financial and moral support is provided to ensure that sufficient houses are constructed to serve employees of the company in the long term.

  1. What are initiatives that the company is currently taking to fulfill these expectations?

The company is working together with the government in sponsoring housing projects as part of its corporate social development. This will ensure that part of the profit obtained from the sale of natural gas is given back to the community to ensure different forms of development. The company is currently engaged in talks with the government to deliberate on the best ways that can be used to ensure that the road networks are developed adequately.

Appendix C: Interview with Mike Lovegreen- Bradford County

Below are the complete questions and the answers that were provided during an information interview process

  1. How does natural gas drilling affect the housing situation in Bradford County?

There is currently an increase in the population of the county. This is because the natural gas drilling process has attracted different individuals from employments and other developmental initiatives. The prices of houses have risen due to their scarcity. There are employees who seek housing services in the neighboring counties.

  1. What are the initiatives that the local government has undertaken to solve the problem of housing?

The local government in collaboration with the state and the federal government is in the process of developing a strategy aimed at ensuring that all citizens are provided with adequate and affordable housing facilities. In addition, through the elimination of barriers and reduction of taxes on raw material and loans, the government through collaboration with financial institutions has made it easier for housing developers to acquire finances and raw material in a relatively easy way to boost the possibility of developing more housing facilities.

  1. How does the provision of housing facilities connect to the land question

Land is an essential resource in developing housing projects. the Land Commissions and the local, state and federal level have developed joint missions aimed at ensuring that the land records are streamlined to ensure that land that can be allocated or sold to housing developers are identified.

  1. How does the local government involve the concerned natural gas drilling companies?

The local government considered natural gas drilling companies such as Chesapeake Company as equal partners in the development of housing projects. This is because the companies are the providers of employment opportunities and therefore understanding the nature and type of employments opportunities available will enable the development of a perfect strategy of the types of houses to construct. Natural gas drilling companies such as Chesapeake are major financiers of these projects as part of their corporate social responsibility.

 

Appendix C: List of the criteria of the feasibility study

  • Long-term effectiveness and durability
  • Reduction of the rates of mobility
  • Implementability
  • Effectiveness in terms of cost
  • Local government acceptance
  • Community acceptance
  • Overall levels of protectiveness
  • Short-term efficiency