A study by Penn State University on the development of natural gas in the Marcellus Shale paints a bright future for the region both in terms of the economy and job creation.

The gas industry pumped $3.8 billion into the state's economy, generated more than 29,000 jobs and produced $240 million in state and local taxes in 2008, according to the study, titled "An Emerging Giant: Prospects and Economic Impacts of Developing Marcellus Shale Natural Gas Play."

Those numbers are expected to be $3.8 billion, $400 million in taxes and 48,000 jobs for 2009, it said.

However, another study reveals that for the area's workers to capitalize on natural gas development, a trained workforce is needed that may not, at least for now, be available.

The latter study, "The Marcellus Shale Workforce Needs Assessment," conducted by the Marcellus Shale Education and Training Center, a collaboration between the Penn State Cooperative Extension and Pennsylvania College of Technology, was done with the help of gas industry representatives who were interviewed about their workforce needs, according to Thomas Murphy, an educator with the Penn State Cooperative Extension of Lycoming County.

The assessment divided workforce needs into three categories: direct, indirect and induced labor jobs.

Direct labor jobs include jobs generated during the drilling and production phase of gas development and include jobs such as staking, scoping, permitting, engineering, logging, clearing, drilling, finishing, cementing and fracturing, as well as jobs needed to build and complete the pipeline infrastructure.

Indirect labor jobs are those generated by supply chain industries such as quarries, real estate and machinery manufacturers, according to the study.

Induced labor jobs include housing, food and drink, higher education and other needs of workers, it said.

150 occupations per well

According to the assessment, about 410 workers from about 150 different occupations are needed to develop each well. Eleven full-time jobs are produced during the development and drilling phase of the well, it said.

Once a well is in production, about 17 full-time jobs are created for every 100 producing wells, according to the study.

Workers in the short-term drilling and pre-drilling phase of gas development comprise the lion's share of the industry workforce. A comparatively small number of workers will be required for the long-term production phase of gas development.

According to Murphy, the assessment took into account job creation "on a per-well basis."

"We started to see more and more wells drilled and determined approximately how many people would be needed," Murphy said.

There is little doubt gas exploration in central and northern Pennsylvania is going to increase significantly, Murphy said.

There are hundreds of wells already drilled in the Marcellus Shale. That number could swell to the thousands in the not-too-distant future, he said.

The degree of drilling expansion in the near future depends on the price of natural gas and the upswing of the economy, Murphy said.

According to the assessment, the demand for workers will grow commensurate with that expansion. However, the local workforce may not have the skills needed to meet that demand.

"Company respondents indicated that finding workers with the unique skill sets, knowledge and work ethic gained from experience in the gas industry remains a significant barrier to finding adequate local workforces," it said.

That may mean the required work force may be imported from areas of the country were gas exploration activity has begun to cool.

Murphy said some out-of-state workers will, no doubt, relocate permanently to this area. However, most will probably return to their homes once drilling picks up there, he said. That will open the door for the local workers to step into vacant jobs, he said.

An upswing in the economy and natural gas prices also will spur gas drilling, creating a demand for workers that an out-of-state workforce cannot sustain, he said.

Demand for skills to grow

"A lot of (gas workers) are moving to Pennsylvania to work here. As the demand for (natural gas) picks up and prices increase, the demand for skilled employees will increase and will likely outstrip the available workforce," Murphy said.

According to the assessment, educational institutions need to develop programs that will train local workers to fill the jobs.

"You just have to have the skill set," Murphy said. "(An energy company) is looking for 30 welders in Towanda, but if you want to do that you have to learn it. (Truck drivers) have to have not only a CDL license but an off-road component to a CDL license. There is training involved."

"It's not just about knocking on a door and applying for a job," he said.

According to Pennsylvania College of Technology, the college is developing courses to prepare local workers for employment in the gas industry.

Non-credit courses include welding, commercial driving, safety, electrical, electronics and other courses that would prepare someone for an entry-level gas industry job, according to the college.