Virginia’s Energy Region
Virginia Coalfield Economic Virginia Coalfield Economic Development AuthorityDevelopment Authority
Joint Meeting of the Commission on Electric Utility Restructuring and the Coal and Energy
Commission
September 8, 2004
Virginia’s Energy Region
VIRGINIA COALFIELD ECONOMIC DEVELOPMENT AUTHORITY
Employment by Major Industry—12/31/91vs. 12/31/01
Employment Sectors
Virginia Employment Commission: 9,025 Jobs Gained; 6,053 Mining Jobs Lost; 779 Net Jobs Gained in these Sectors.
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3/31/19913/31/2003
Virginia’s Energy Region
Sector GainsSector Gains• Services—3,819 jobs gained (41%
increase)
• Government—1,848 jobs gained (15% increase)
• Trade—1,713 jobs gained (13% increase)
Virginia’s Energy Region
Sector LossesSector Losses
• Mining—6,053 jobs lost (52% decrease)
• Manufacturing—2,026 jobs lost (28% decrease)
Virginia’s Energy Region
Mining Industry TransitionMining Industry TransitionCoal production and employment:
1991 2001
Production (thousand short tons)
42,336 32,601
Production employment 9,756 5,261
Production wages
(in thousands of dollars)
268,177 194,741
Average productivity (tons per worker hour)
2.5 3.33
Source: Virginia Energy Patterns and Trends website, Virginia DMME, Division of Mines
Virginia’s Energy Region
Mining Industry TransitionMining Industry TransitionLargest employers
1991 2003Island Creek Coal Company (963 employed)
Paramont Coal Company Virginia, LLC (670 employed)
Clinchfield Coal Company (834 employed)
Consolidation Coal Company (391 employed)
Westmoreland Coal Company (556 employed)
A&G Coal Corporation (354 employed)
Virginia’s Energy Region
Virginia Coal Production, 1814- 1999Virginia Coal Production, 1814- 1999
Virginia’s Energy Region
Coal Industry EmploymentCoal Industry EmploymentYear Annual Employment Annual Average Weekly Wage
2003 5,288 $930
2002 5,737 $874
2001 6,236 $874
2000 5,989 $848
1999 5,985 $806
1998 6,832 $803
1997 7,747 $771
1996 7,413 $772
1995 8,139 $753
1994 9,032 $744
1993 9,964 $699
1992 10,543 $720
1991 11,192 $677
1990 12,260 $647
1989 12,770 No data
1988 12,707 No data
Source: Virginia Employment Commission ES-202 Annual Average Weekly Wage by Size Code and Annual Average Employment by Size Code. Note: 1999-2003 data is based on NAICS codes: 1988-1998 data is based on SIC codes.
Virginia’s Energy Region
Natural Gas ProductionNatural Gas Production
Source: Virginia Energy Patterns and Trends website
Virginia’s Energy Region
Natural Gas ProductionNatural Gas Production
1991 2001
Number of producing wells
886 3,521
Dry production (million cubic feet)
14,906 71,543
Source: Virginia Energy Patterns and Trends website, Virginia DMME, Division of Gas and oil
Largest companies:Equitable Resources/EREXConsol, Inc.Pocahontas Gas Partnership
Virginia’s Energy Region
Non-traditional economic Non-traditional economic development investmentsdevelopment investments
• Appalachian School of Law--$1 million loan
• Grundy Town Relocation—$1.5 million loan
• University of Appalachia School of Pharmacy—$3 million in matching loan funds
• Dickenson Community Hospital—$1,765,000 loan
Virginia’s Energy Region
Loans and grants as of Loans and grants as of 12/31/0312/31/03
Locality
Severance Tax Receipts
7/1/88-12/31/03% Total Funds
Approved%
TotalTotal Projects
Buchanan $22,155,738 44.3% $25,420,974 38.8% 46
Dickenson $8,752,244 17.5% $10,305,062 15.7% 18
Lee $1,095,017 2.2% $1,656,028 2.5% 11
Russell $1,927,800 3.9% $5,513,888 8.4% 14
Scott $17,657 0.04% $1,198,686 1.8% 3
Tazewell $1,913,269 3.8% $4,858,815 7.4% 20
Wise/Norton $14,170,314 28.3% $16,393,971 25.0% 30
Regional N/A N/A $100,000 0.2% 1
TOTAL $50,032,039 100.0% $65,447,424 100.0% 144
Virginia’s Energy Region
VCEDA Approved Funds 1988-VCEDA Approved Funds 1988-20032003
Property Acquisition, 3,552,444, 5.9%
New Industry, 28,616,463, 47.6%
Tourism, 756,083, 1.3%Site Dev. & Infra., 9,660,586, 16.1%
Miscellaneous, 377,961, 0.6%
Shell Buildings, 9,587,120, 16.0%
Existing Industry, 7,118,037, 11.8%
Planning/Feasibility, 405,939, 0.7%
This chart shows the amount of funds approved for loans and grants from 7/1/88-6/30/03, categorized by purpose.
Virginia’s Energy Region
Re-Branding of RegionRe-Branding of Region
• Consolidate into one organization– Drop Virginia Southwest Promise
• Simplify and unify VCEDA brand
• Slogan, “Virginia’s Energy Region”– Reflects natural resource history of
region while focusing on the skill and ingenuity of the workforce for present and future industries.
Virginia’s Energy Region
Target IndustriesTarget Industries• Automotive• Wood Products • Customer Contact Industry• Electronics• Metal Fabrication• Independent Power Producers
Virginia’s Energy Region
Industry AnnouncementsIndustry Announcements20042004
• New Industry– AOL/Virtus Marketing, Norton, VA
• 67 Jobs - $500,000 Investment
– Blue Ridge Wood Products, Bluefield, VA• 160 Jobs - $3,600,000 Investment
• Expansions– VFP, Duffield, VA
• 72 Jobs - $650,000 Investment
– Joy Manufacturing, Duffield, VA• 45 Jobs - $1,400,000 Investment
Virginia’s Energy Region
VCEDAVCEDADiversification HistoryDiversification History
• Since 1988, 61 companies have been recruited to the Coalfield region.–18 Information Technology & related
companies–4 Automotive companies–9 Wood Products companies–3 Electronic & related companies–11 Textile & related–14 Other
Virginia’s Energy Region
VCEDA Diversification History VCEDA Diversification History cont’dcont’d
• More than 9,298 jobs have been created as a result of these recruitment efforts
• Investment in these industries exceeds $184,327,540
• 31 Existing industry expansions have occurred, creating 2,098 new jobs and investing $81,867,956