Virtual Stringline: Natural Gas Site Work is Booming

by Harry O. Ward PE

April 28, 2011

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Construction companies are involved in natural gas exploration projects at every aspect.

As I’ve mentioned in my previous columns, the construction market seems to be turning around—or rather—companies are finding ways to rebuild their business models to be effective in this economy based on where opportunities exist. Many construction firms seem to be doing quite well in specific disciplines, such as energy, for example.

Natural gas exploration has absolutely exploded in the industry. With the need for alternative energy, prices for natural gas have been fairly high. Combine the motives of profit plus its status as one of the government’s most-favored promotions, and you have a winning endeavor. Many firms are performing surveying, design, geotechnical and construction services related to energy.

In the five-year period from 2004 to 2009, the number of gas wells has risen almost 20 percent, according to the Pennsylvania Department of Environmental Protection. Nationwide, we are up to 500,000 wells and counting, as of 2009. As evidenced by our clients of Harken-Reidar in Virginia, Pennsylvania and West Virginia, 2010 was a banner year for drilling. Many people we trained under the Virginia Workforce Investment Act have found work in the natural gas exploration field.

Lots of Work to Go Around

Contractors do not need special software or equipment for these projects, because the work is fairly traditional.

Some of the engineering firms I work with are on mandatory overtime to keep up with the demand for the design of new drill sites. Construction companies are involved in natural gas exploration projects at every aspect—roadwork, site work, pond construction, construction surveying, etc. No special software or equipment is needed per se, because the work is fairly traditional. If you have dozers, excavators and trucks, you can get the job done. Additionally, the study of subsurface conditions keeps geologists and geotechnical engineers busy.

Engineers and technicians are working to perform site layout, grading, access road design, trenching and earthwork computations. Other design work consists of pads for wellheads, production facilities, a liquid/gas separation device, artificial lighting and typically a 2-acre or more detention pond for recovered water used for fracking the shale. All of this is site specific and can vary.

Pennsylvania has about 60,000 producing well sites; West Virginia has more than 51,000; and Texas has 95,000, almost half of which surround Fort Worth. Much of the design work is being done by the engineering and survey community, and local contractors are doing the construction.

Adapting to the New Work

Shane Gordon, the CEO and president of Ventures Contracting in Sunset, Texas, believes we have more than 100 years of technically recoverable gas in the United States and Canada with an estimated total market growth rate of 18 percent.

I spoke to Shane Gordon, the CEO and president of Ventures Contracting in Sunset, Texas, and asked him some questions about the nature of gas drillpad construction to see if it differs markedly from other general site construction. Ventures Contracting is a full-service site contracting firm that recently added natural gas site work to the services offered.

“Ordinarily, site preparation for an oil and gas well is similar to other construction sites; the scale and duration of trenching and excavating are site-specific,” Gordon says. “On some drilling sites, a below-ground level cellar may be excavated, where the main borehole is to be drilled. A reserve pit and settling pits may be excavated and are used for water or drilling fluid (mud) discharges.”

Gordon says it was easy for his company to take on the natural gas site work. “Our company’s performance is strong in engineering, surveying, erosion and sediment permitting planning and obtaining approvals,” he says. “The company has ready access to crushed stone quarries, concrete and asphalt batch plants as well as pre- and post-construction erosion control monitoring, which increases our competitiveness. In short, we have the necessary resources and over 17 years of experience.”

As far as needing additional safety training for working on these sites, Gordon says the company treats safety requirements the same as they would on any other jobsite.

“Under OSHA standards, our employees are required to be knowledgeable about company safety policies and procedures, as well as how to identify workplace hazards,” he says. “We limit certain job assignments to employees who have had specialized training. Managers, foremen and all other employees are required to attend safety, health and environmental training programs.”

Gordon believes we have more than 100 years of technically recoverable gas in the United States and Canada with an estimated total market growth rate of 18 percent. He believes construction for natural gas will continue to be in demand as the need for energy is continually increasing.

To me, this is evidence that things change, markets fluctuate and work opportunities shift. Take the skills you currently have and re-evaluate where they can best be applied. You may find markets opening up where you didn’t know they existed 10 years ago.

Right now, there is work in the energy field, and they need engineers, surveyors and contractors to get the job done.

Sidebar: Getting Involved with Natural Gas Work

Natural gas exploration projects require a variety of construction tasks and materials. Depending on the size and company capabilities, many of these services can be parsed out for specialization or they can be performed turnkey.

Engineering and Permitting

• Surveying, data collection for existing conditions, property/boundary surveys, as-builts, permitting and earthworks

• Erosion and sediment permitting, planning and approval

• Site civil, take-off planning and 3D model data preparation

• Pre/post construction erosion control monitoring

• Reclamation

• Monitoring and reporting services

Site Construction

• Clearing the land

• Grading and excavation

• Access road construction

• Pipeline and utilities trenching and installation

• Pad construction

• Sump hole excavation

• Hydroseeding and soil stabilization

• Frac pond construction, geosynthetic liner installation

• Offsite natural gas conveyance

Construction Materials

• Crushed stone

• Concrete

• Asphalt

• Fill material

• Water

References

http://www.dep.state.pa.us/dep/deputate/minres/oilgas/new_forms/marcellus/marcellus.htm

Figures attributed to: www.marcellus-shale.us/gas-pipelines.htm

Harry O. Ward PE
Harry O. Ward, PE, is president of Harken-Reidar Inc. He has been a member of the engineering faculty at George Mason University since 1997 and was named “Outstanding Adjunct Professor” for GMU in 2010. He can be reached at hward@harken-reidar.com or hward@gmu.edu.

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