Shale gas development could create half a million jobs.

Opportunities abound in the Marcellus shale, and the Pittsburgh Regional Alliance believes Houston companies are in a prime position to cash in.

The group hosted a program at the Petroleum Club in Houston on Oct. 27, 2010, to raise awareness about the business opportunities in the Pittsburgh area.

According to Dennis Yablonsky, CEO of the Allegheny Conference on Community Development, “The size of the pie is increasing so rapidly there are plenty of opportunities for new players.”

Kathryn Klaber, president and executive director of the Marcellus Shale Coalition agrees. “There’s enough to go around,” she said, noting that the play holds an estimated 500 Tcf equivalent in reserves. Daily production at present is more than 1 Bcf, she said.

Murry Gerber, executive chairman of EQT Corp., the largest land owner and producer in Appalachia, is a believer in the potential of the region. “The Marcellus shale is the real thing,” he said. “This is a massive find.”

At present, Gerber estimates that 30% of the gas in place is being produced. Clearly, he said, that leaves incredible room for growth. “The resource is just now being evaluated,” he said.

The Marcellus does not only offer considerable reserves. The economics are exceptional as well. “This is without question the basin with the lowest finding and development cost in the country,” Gerber said. “If gas is going to be produced in this country, it will be in the Marcellus shale.”

Development on this scale would be a boon to Pennsylvania, Gerber explained, and it is in the interest of companies looking for growth opportunities to consider expanding operations into the Marcellus.

Part of the goal of the trip to Houston, Yablonsky said, is to encourage gas companies to consider working in the northeast. The end goal, he said, “is to expand the economic impact this resource has on our region.”

“The most important thing we can do is create a job,” Gerber said.

EQT Corp. and other companies working in Pennsylvania have done just that. According to Klaber, close to 90,000 jobs will be created by the end of this year, and the potential for perhaps hundreds of thousands more is in place.

“It is not unrealistic to think half a million jobs will be created from developing the Marcellus region,” Gerber said.