HARRISBURG, Pa. (7/18/13)--The Pennsylvania Credit Union Association is sponsoring a two-day extensive training course Aug. 5-6 on lending to small businesses that are a part of the Marcellus Shale supply chain.
Marcellus Shale refers to one of the largest natural gas fields in the world.
The Shale Gas Supply Chain: How to Lend to Small Businesses conference will meet at Canonsburg, Pa., and will feature shale industry leaders, who will discuss the operating cycle of a shale driller, the supply chain opportunities, as well as benefits and pitfalls, said PCUA (Life is a Highway July 16).
The opportunities stem from efforts by energy companies to tap three layers of gas-rich shale--Marcellus, Utica and Upper Devonian--that stack up hundreds of feet below the surface in the western part of the state, said PCUA. Workshop attendees also can tour a Marcellus Shale drilling site, for an additional fee.
The Marcellus Shale region stretches 95,000 square miles--from West Virginia through upper New York and is expected to generate 212,000 jobs. A "fairway" of the fields cover 40,000 to 50,000 square miles through Pennsylvania (News Now Aug. 18, 2011).
Credit unions are likely to see increased economic development as well as a mixed bag of opportunities and risk. One gas company has predicted that for every one of its employees, three or four employees of contractors also will work at each stage of developing the drilling wells.
As a result, credit unions in the region are expecting over the next two decades an influx of deposits from new jobs, mortgage loans with complex issues related to appraisals of property with wells and mineral rights, complex property leases, more complex tax income classifications and opportunities for small business loans.