MSC 2012 Year-End Workforce Survey

August 20, 2013

1 | MARCELLUS SHALE COALITION

Responses

Best response rate since workforce survey initiated: 101 member companies

• 83% of executive board member companies • 67% of board member companies • 29% of associate member companies

Representing 13,099 employees dedicated to Marcellus & Utica Shale regions

2 | MARCELLUS SHALE COALITION

% Distribution of New Hires in 2012

8.4%

13.2%

10.8%

3.9%

29.8%

1.3%

3.6%

20.3%

1.1% 1.9% 3.3% 2.5%

3 | MARCELLUS SHALE COALITION

96% of New Hires originated from Marcellus/Utica Shale States in 2012

56.8%

12.7%

19.0%

2.0% 5.3% 4.2%

Pennsylvania West Virginia Ohio Maryland New York Other

4 | MARCELLUS SHALE COALITION

Of the most difficult positions to fill in 2012

• 49% were professional

• 15% were management

5 | MARCELLUS SHALE COALITION

Positions most difficult to fill in 2012

0

5

10

15

20

25

30

35

40

45

Management/Executive Professional Business Support Technicians Operators

6 | MARCELLUS SHALE COALITION

Top Three Challenges

• Qualified Talent (knowledge and experience)

• Competition for Qualified Talent

• Willingness to relocate

7 | MARCELLUS SHALE COALITION

Recruitment Challenges

0

10

20

30

40

50

60

70R

esis

tanc

e to

relo

catin

g to

Mar

cellu

s/U

tica

area

s

Com

pens

atio

n

Qua

lity

of li

fe

Indu

stry

Per

cept

ion

Typ

e of

wor

k / w

ork

cond

ition

Fai

led

back

grou

nd s

cree

ning

Fai

led

pre-

empl

oym

ent d

rug

test

Significant Somewhat Not at all

8 | MARCELLUS SHALE COALITION

Approximately 4000 new hires expected in 2013 …. in which locations?

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

9 | MARCELLUS SHALE COALITION

Approximately 4000 new hires expected in 2013 …. in which functions?

0

10

20

30

40

50

60

70

80

Management/Executive Professional Business Support Technicians Operators

10 | MARCELLUS SHALE COALITION

Outsourcing – which functions/services?

0

10

20

30

40

50

60

Some/Partial No Yes

11 | MARCELLUS SHALE COALITION

We need 4-year degree programs beyond what is currently available …

0

10

20

30

40

50

60

70

Hea

lth a

nd S

afet

y

Fina

nce

and

Busi

ness

Pip

elin

e En

gine

erin

g

Envi

ronm

enta

l/Reg

ulat

ory

– em

phas

is o

n Ai

r Qua

lity

Pet

role

um T

echn

olog

y

Geo

logy

Saf

ety

Eng

inee

ring

Phy

sica

l Sci

ence

s

Info

rmat

ion

Tech

nolo

gy

Hum

an R

esou

rces

Gov

ernm

ent a

nd P

ublic

Affa

irs

Do not agree

Agree Somewhat

Agree Strongly

12 | MARCELLUS SHALE COALITION

We need certificate programs beyond what is currently available…

0

10

20

30

40

50

60

70

Sup

ervi

sory

Com

mun

icat

ion

– em

phas

is o

n w

ritin

g

Com

pute

r pro

ficie

ncy

Gen

eral

O&

G b

asic

s(i.

e. c

ultu

re, p

roce

ss)

Con

flict

Res

olut

ion

Lead

ersh

ip

Agree Strongly Somewhat Do not Agree

13 | MARCELLUS SHALE COALITION

Diversity

80%

20%

76.20%

21.90%

White Non White Male Female

Compared to general population of PA : White, non-Hispanic: 83% Male: 53% Non White: 17% Female: 47%

14 | MARCELLUS SHALE COALITION

Top Recruiting Methods

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%C

ompa

ny w

ebsi

te

Car

eer w

ebsi

te /

job

porta

l

Soc

ial m

edia

- lin

kedi

n,fa

cebo

ok, e

tc

New

spap

er

PA

Car

eerli

nk /o

nest

op

Ref

erra

l

Sch

ool/t

rain

ing

cent

er

15 | MARCELLUS SHALE COALITION

Participants • Access Midstream • Accutest Laboratories • Anchor Drilling Fluids USA, Inc. • Apex Companies, LLC • Aqua • ARM Group Inc. • Atlas Energy LP • Baker Hughes • Bergmann Associates, Inc • Burleson LLP • Burnett Oil Co., Inc. • Cabot Oil & Gas Corporation • Carolyn Henn • Casella - CARES Water Treatment • Champion Technologies • Chesapeake Energy • Chevron • Chief Oil & Gas LLC • Cleveland Brothers Equipment Co. • CMS Energy • Columbia Pipeline Group • CONSOL Energy Inc. • D.A. Nolt, Inc. of PA • Deloitte LLP • Draeger Safety Inc • DTE Energy • E-Finity • Endeavour International • Energy Corporation of America • Entech Engineering, Inc. • Environmental Drilling Solutions, LLC • EQT Corporation • Eureka Resources, LLC

• Eurofins Lancaster Laboratories, Inc. • EXCO Resources (PA), LLC • FTS International • Fulbright & Jaworski L.L.P. • Geosyntec Consultants • GES • Glenn O. Hawbaker, Inc. • Groundwater & Environmental Services

Inc. (GES) • Halliburton Energy Services, • Heckmann Water Resources • Hoffman Construction Services, LLC • HomeWaters • HRG, Inc. • Hull & Associates, Inc. • Hunt Marcellus Operating Company • K&L Gates LLP • Keane Group • Kelchner, Inc. • LJ Stein & Company, Inc • Manko, Gold, Katcher & Fox, LLP • MarkWest Energy Partners, L.P. • Mascaro Construction Company, L.P. • Mccarl's Inc. • McClure Company • McNees Wallace & Nurick LLC • McTish, Kunkel & Associates • Michael Baker Corporation • Mitsui E&P USA LLC • Marcellus Shale Coalition • NBL • New Pig Energy • Noble Energy

• Paul C. Rizzo Associates, Inc • Penn E&R • Percheron LLC • PVR Partners • Range Resources • Reserved Environmental Services, LLC • RETTEW Associates, Inc. • Ridge Global • RT Energy Services, • SAIC • Schneider Downs & Co., Inc. • Schramm Incorporated • Seneca Resources Corporation • Sevenson Environmental Services, Inc. • Shell • Southwestern Energy • SuitKote Corporation • SWCA Environmental Consultants

Talisman Energy USA Inc. • TestAmerica Laboratories, Inc. • The Gateway Engineers, Inc. • The Keane Group • TRC • Triana Energy • Trumbull Energy Services Corporation • Twilight Services • Ultra Petroleum Corp. • Valerus • Weatherford • Weavertown Environmental Group • Weston Solutions, Inc. • Williams • WPX Energy • XTO Energy Inc.

16 | MARCELLUS SHALE COALITION

Thank you!

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17 | MARCELLUS SHALE COALITION