Steve Hedrick, MATRIC CEOOn Thursday, March 23, 2016, MATRIC President and Chief Executive Officer Steve Hedrick stood before more than 350 people in Charleston, W. Va., and delivered a clear message. The quad-state region – including Kentucky, Ohio, Pennsylvania and West Virginia — needs substantial underground storage of the highest-value and broadly used raw materials available from the Marcellus, Rogersville and Utica Shales, specifically ethane, in order to create an Appalachian Storage Hub.

Excerpts from Mr. Hedrick’s speech are available below:
 “We need to revisit the entirety of the value chain again. We need to engage the oil and gas production community. We need to engage the midstream. We need to continue to communicate and educate. We must not lose sight of the opportunity for value-creating manufacturing based within our states on these efforts upstream. Maybe part of what’s missing […] is that we still have not created the linkage across the entirety of the value chain.”

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“The raw materials available to us in the Marcellus Shale alone have a reported estimated value in excess of two trillion dollars, of which some experts report 15 percent is estimated to be natural gas liquids that are extensively utilized in the petrochemical industry. These are things like ethane, propane and butane. And the petrochemical industry, according to the American Chemistry Council, creates an additional five jobs in their communities for each of its own manufacturing jobs. So, we may well be talking about adding value to a base of about 300 billion dollars in raw materials. This is a game worth playing.”

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“The shale gas revolution has created a tremendous opportunity, but one that some believe has begun to stagnate. As I said earlier, it’s been more than six years since we started talking about this. Many citizens, possibly even business leaders, have begun to tire from the consistent drumbeat of those who embrace the opportunity before us. But is the topic so stale?  Is that drumbeat… and this speech for that matter… simply rhetoric? I believe it’s not.”

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“We cannot take advantage of the Utica, Rogersville and Marcellus shale opportunity without infrastructure to support the demands and needs of the associated industries, to the benefit of our region and our country.

The infrastructure requirements associated with new build-outs that will allow this diversification must be delivered by multiple parties. It won’t be easy. It won’t be cheap. We’ll need cooperation and support from the federal and state governments, private equity, and existing business platforms. All to their mutual benefit.  I’m here to tell you, all parties will gain substantially from a unified approach. “

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“We, therefore, must have substantial underground storage of the highest-value and broadly-used raw materials — specifically ethane – and create an Appalachian Storage Hub. This can be safely and efficiently done in naturally occurring underground caverns, in depleted natural gas extraction points or even in depleted salt domes. And, I’m sure you won’t be surprised to learn that the brightest minds in geological formations are currently studying the best location for the Appalachian Storage Hub.”

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“Because, clearly, tremendous opportunity is here for us. We cannot give up on it. It’s not in our nature. People who are born in this region are resilient. We’re not quitters. We’re tough. And, if I’m being completely honest, we’re also a bit stubborn. But I see value in this stubbornness.”

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For more information, contact chemical-catalyst-catalyst-testing-chemical-catalyst-chemical-pilot-plant-demonstration-plant-solids-processing-chemical-separations(at)www.matricinnovates.com.