The newly elected Governor of New York, Andrew Cuomo, delivered his first State of the State address Wednesday, eschewing the state Capitol to speak at the convention center of the Empire State Plaza in Albany.

Gov. Cuomo did not mention manufacturing in his remarks, which were mostly about government and the state’s budget crisis. He did decry the state’s high taxes, concentrating on property taxes: “We have to hold the line on taxes for now and reduce taxes in the future. New York has no future as the tax capital of the nation. Our young people will not stay. Our business will not come. This has to change.”

Otherwise, Cuomo’s business-related proposals showed a reliance on government. From the transcript:

We are going to establish economic regional councils. Ten economic regional councils all across the State. They are going to be chaired by Lieutenant Governor Bob Duffy. These will be public private sector partnerships the focus of which is to create jobs, jobs, jobs in those regions. It starts with the premise that there is no top down template to create jobs. You have different regions in this State with different assets and different abilities and these plans are going to have to come from the bottom up and let’s empower the local communities to plan their future and help themselves.

Higher education will be the key economic driver. We look to partner with our great SUNY system, especially across upstate New York in making this a reality. They will provide both intergovernmental and intra-governmental coordination and be one stop shops. State government, county government, local government will all be on one board and all the State agencies will be on that one board. If you need to get something done in that region, it’s a one stop shop and the government will actually cooperate with each other rather than conflict with each other.

These councils will have two main functions. First they will coordinate all the existing economic development money that goes into that region, primarily through ESDC. But second, they will be able to come up with job development plans and then compete against the other councils – to compete for up to $200 million in funding. Competition works. Let them come up with their best plans, compete against the other regions and we will fund the most creative plans.

The strategy will be familiar to followers of state government: Councils, coordination, one-stop shops, seed money, higher education as an economic-development engine. Some private-sector jobs might result, eventually.

Gov. Cuomo missed what would be a far more effective strategy for jobs: developing natural gas deposits in the Marcellus Shale formation, already a proven engine of growth in Pennsylvania. Now that would have a been a striking call an end to business as usual: “We will embrace the potential of the Marcellus Shale, moving forward with development a vibrant natural gas industry homegrown in New York State, creating jobs and providing the affordable energy that will boost industry and save money for New York consumers.”

The new NBC procedural, Law and Order: Los Angeles has so far avoided the politically correct scolding that made the original series so tiresome its last decade or so. The episode Wednesday featured an “equal-opportunity killing,” as The Los Angeles Times’ reviewer summarized it.

Still, something rang false in the show, “Hondo Field.” The episode guide summarizes:

It’s 4:00 a.m. and two teens are skinny-dipping at an El Segundo Beach, where they discover a drowned corpse. Dawn has broken by the time TJ and Winters arrive to check out the body of Freddy Ramirez. He’s got oil on his clothes, oil in his mouth, and an account at GoldShore Oil Credit Union. TJ looks up to spy an offshore drilling rig five miles out to sea. After her investigation, the coroner knows Freddy was drunk when he died, which was before he hit the water. Since the oil company records claim roughneck Freddy punched into the Hondo Field rig where he worked at 2:36 a.m., the detectives visit GoldShore’s VP, who claims jurisdiction for all oil rig accidents belongs to the Bureau of Ocean Energy Management.

A drilling rig, five miles off the coast of Southern California? Don’t think so.

Aside from that fundamental mistake, good episode. We stuck with it, as opposed to the enervated CBS series, CSI: Crime Scene Investigation, which on Thursday fictionalized the already fictional “Gasland” movie to come up with this plot in an episode entitled, “Fracked“: “Two men are murdered right before exposing a natural gas company for poisoning residents in a farming town, and the CSIs must discover who is responsible for their deaths.”

Yes, yes, it’s fiction, a procedural drama, and writers are allowed a little artistic license. Perhaps at the end of the episode, the alienists explained the error of their ways. Somehow we doubt it.

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Whenever traveling in Oregon, we’re struck by news about the counterproductive economic policies the state — and sometimes, its voters – pursues to be fair and green, green and fair. The pay-off is a broken state budget and joblessness.

But sometimes the news is good for industry, employment and the economy, and it’s only fair to note those occasions, too. The Coos Bay World includes two such reports on its front page today.

“Company Acquires Westport“:

The recent acquisition of a company exploring methane in Coos Bay coalbeds indicates renewed interest in a dormant project.

Last Friday, Carbonics Capital Corp. announced its purchase of Westport Energy LLC — a company that has been leasing about 104,000 acres in the Coos County basin. Carbonics, based in New York, became the third company to invest in the county’s potential to produce natural gas from coalbeds.

In 2003, Methane Energy Corp. identified the basin as a hotbed for methane activity with about 1.5 trillion cubic feet of gas in deeply-buried coalbeds — enough to supply Coos County for 6,000 years.

And, “Train track funding hits crossroads“:

REEDSPORT — $7.8 million: Port officials think it’s enough to restore rail service to the South Coast by spring 2011.

Gov. Ted Kulongoski announced that the state would award them that much Wednesday morning at American Bridge Manufacturing — a company that has committed to using the rail — in Reedsport.

Georgia Pacific in Coos Bay and Southport Lumber Products LCC in North Bend also have said they will use the rail service, which closed in September 2007 due to unsafe tunnels. The mills have had to truck materials since then.

American Bridge Manufacturing produces large bridge components at its Reedsport, Ore., plant, huge metal pieces that move much more cost-effectively on rail than truck. More at The Register-Guard newspaper, “Coos Bay gains rail line grant.” Excellent example of useful infrastructure investment.

Farther up the Oregon Coast, there’s even more good news supporting jobs and a competitive manufacturing economy, “Clatsop County approves LNG pipeline.”

Bloomberg, “North Dakota Passes Oklahoma in Drilling Rigs as Baker Hughes Count Rises“: “North Dakota overtook Oklahoma this week as the third-most active state in drilling for oil and natural gas, according to data published by Baker Hughes Inc. The number of North Dakota rigs exploring for and producing oil and gas jumped by two to 128, Baker Hughes said.”

Job Service North Dakota, July 20, “North Dakota’s Unemployment Rate 4.1% for June“: “Job Service North Dakota (JSND) reported that labor statistics released today show North Dakota’s June not seasonally adjusted unemployment rate was 4.1 percent. The rate is 0.9 percentage points higher than May (3.2 percent), and 0.6 percentage points below the same period of prior year (4.7 percent).”

Job Service North Dakota, August 2, “Oilfield Jobs in North Dakota”: “Looking for work in the oil industry? lick on this article for an overview of the industry, wage information, frequently asked questions, and more.”

Bloomberg, August 3, “New York Weighs State Drilling Ban on Natural Gas From Shale“: “Aug. 3 (Bloomberg) — Companies led by Chesapeake Energy Corp. would be banned temporarily from drilling for natural gas in shale in New York under state legislation proposed because of disputes over environmental risks.”

New York State Department of Labor, July 15, Unemployment Rate Dropped to 8.2% in June, Lowest Since April ’09“: “New York State’s seasonally adjusted unemployment rate dropped from 8.3% in May to 8.2% in June 2010, the State Labor Department reported today. This was the state’s lowest unemployment rate since April 2009, when it was 8.1%. …New York State’s economy lost 8,500 private sector jobs (-0.1%) in June 2010, on a seasonally adjusted basis. This was the state’s second straight monthly decline in private sector jobs.”

If lithium-battery-powered vehicles are the future, then why is the Obama Administration pursuing new regulations that would make shipping the batteries so burdensome and expensive? We’ve examined the issue before here and here, and were pleased to see The Washington Post cover the issue in its Saturday edition, “Everyday lithium batteries at center of debate about cargo handling.” Excerpt:

The new regulations could affect a massive web of companies, including manufacturers, shippers and retailers. They say costs would be staggering. UPS told PHMSA that complying with the rules would cost the company at minimum $264 million in the first year. And the company said each subsequent year would cost an additional $185 million.

Best Buy submitted a long list of products that would be affected, including portable GPS devices, portable DVD players and TVs, cellphones, cordless headphones, universal remote controls, cameras, camcorders, even electric razors and toothbrushes.

In today’s Post, Robert Samuelson digs into natural gas and hydrofracturing today in his column, “Shale gas: Hope for our energy future.” Good and necessary introduction to the issue. We recommend it to whoever writes and edits the editorial page for The Philadelphia Inquirer, who should be ashamed for the bizarre attack against former Gov. Tom Ridge.

Ridge was hired last week to advise and represent the Marcellus Shale Coalition, companies and groups involved with the production of natural gas from the Marcellus Shale formation in Pennsylvania. In an editorial Friday, “Shale’s shill,” The Inquirer throws out the term “shill,” when describing advocacy for a major and growing contributor to the state’s economy and employment.

Former governors can choose many career paths. Some of them become college presidents. Some go on the lecture circuit.

And then there’s Tom Ridge, who is set to become a paid shill for the natural-gas drillers swarming his native state.

The Inquirer’s argument boils down to “there’s something obnoxious” about a former governor representing an industry “that poses serious environmental risks, and has already spent millions on lobbying to forestall paying its fair share of state business taxes.” Risk! Risk! If there’s risk, we must never act! As for taxes, well, that’s a matter of dispute.

It’s always bizarre to read newspaper writers who are offended by the exercise of the First Amendment, which is what Ridge has been hired to do — express a point of view and petition the government. One’s almost tempted to call the paper’s editorialists “hacks,” but that would be lowering ourselves to their level.

So we’ll just close by referring the editorialists to the Oil & Gas Journal’s recent story, “Study projects boost in Marcellus shale jobs, economy.”

How dare they report that!

President Obama visited Youngstown, Ohio, in mid-May to promote the Administration’s economic policies, pointing to the stimulus bill’s success in encouraging investment and job creation. To illustrate his argument, he appeared at V&M Star, a manufacturing of steel tubular goods, embarking on a $650 million expansion.

In the President’s remarks, he hailed the new railroad spur that encouraged the company’s expansion.

So as a result of this investment, V&M Star’s parent company decided to invest $650 million of its own money — its own money — (applause) — to build a new one-million-square-foot mill right here in Youngstown, the largest industrial plant built in the valley since GM built its plant over in Lordstown in the 1960s.  Think about that — biggest investment since the 1960s — 50 years.  (Applause.)  So right here, in the heart of the old steel corridor, where some never thought we’d see an investment like this again, they’re placing a bet on American manufacturing and on this community.

And that bet is going to pay off for 400 construction jobs once they break ground this summer; 350 new manufacturing jobs once the mill comes online, which doubles the current workforce.

Infrastructure investment is critical to the manufacturing sector, of course. It was one of the key elements of a Milken Institute study, “Jobs for America: Investments and Policies for Economic Growth and Competitiveness,” sponsored by the National Association of Manufacturers.

But there better be an economic reason to justify the infrastructure, some underlying demand that inspires the investment. Unfortunately, President Obama made only one passing reference to the basic reason for V&M Star’s expansion — natural gas, that is, shale gas, that is, the Marcellus Shale, made accessible by hydrofracturing technology.

Groundbreaking ceremonies were held at V&M Star the end of June, and the local newspaper, The Vindicator, reported on the event. From “V&M Star’s $650m expansion gets rolling“:

Philippe Crouzet, chairman of the Vallourec Management Board, praised the private- and public-sector cooperation that made V&M’s expansion possible. [Vallourec is the French parent company.]

“Every aspect of our endeavor is coming together remarkably well,” Crouzet said. “There was an unprecedented collaboration between elected leaders, government professionals and the business community.”

The expansion will allow V&M Star to respond to the growing demands of its natural-gas customers in the Marcellus Shale, Crouzet said. The shale, a natural-gas formation the size of Greece located under Pennsylvania, New York, West Virginia and Ohio, could contain as much as 489 trillion cubic feet of recoverable gas.

“We are building the future in a market that has great opportunities,” Crouzet said. “V&M is well-positioned to serve as a bridge between this demand and supply.”

In case there was any doubt about the connection between economic activity, jobs and the Marcellus Shale, the American Petroleum Institute has released a new study that documents the value of natural gas. From the news release, “New Study Finds Natural Gas in Marcellus Shale Region Worth 280,000 Jobs, $6 Billion in Government Revenue“: (continue reading…)

The White House is promoting President Obama’s visit to the Youngstown, Ohio, manufacturer of steel tubing, V & M Ohio, as demonstrating the value of last year’s stimulus legislation. Fair enough, but V & M’s expansion would not be happening without the development of the Marcellus Shale’s natural gas, one of the great energy stories happening today.

Thanks to technological advances in hydraulic fracturing and directional drilling, and private-sector investment, the Marcellus Shale is producing wealth and jobs.

As The Cleveland Plain-Dealer reports, “President Obama’s destination: A Youngstown-area steel plant expanding with stimulus help“:

V&M is a subsidiary of Vallourec SA, a large European steel maker. The Plain Dealer described the expansion in February, saying the company plans to enter the growing market for small diameter steel tubes used to extract natural gas from shale deposits across the United States. To do that, the company is building a new factory next door to its existing facility in Youngstown that already employs about 500.

The new facility, which will be more than 1 million square-feet, will be above what used to be a mining operation.

Vallourec chose Youngtown, in part, because its in the middle of one of the largest shale formations in the world, called the Marcellus basin, and puts the company in close proximity to its potential customers. The deposit of brittle sedimentary rock, which contains a huge source of untapped natural gas, follows the path of the Appalachian mountains across New York, western Pennylvania, eastern Ohio, down to Maryland and West Virginia

The Marcellus Shale Coalition has a website with background, news and commentary on the development of this natural resources, including a report explaining hydraulic fracturing – the injection of high-pressure fluids into the shale formation to release the gas. On Wednesday, the coalition is holding a news conference in Duquesne, Pa.:

[Local] natural gas, steel manufacturing and transportation industry leaders will join elected officials to discuss to the positive and growing impact that responsible Marcellus Shale gas development is having on the region. Jointly hosted by the United States Steel Corporation (USS) and the Marcellus Shale Coalition (MSC), the event will focus on the extensive supply-chain network involved in producing this abundant, homegrown, clean-burning energy resource and its economic benefits throughout the region.

Good luck!

Leading up to the State of the Union address…

• USA Today, “Obama’s theme tonight: Jobs“
• Reuters, “US Govt pushes any drilling off Virginia past 2011“

David Holt, president of the Consumer Energy Alliance, issued a statement reacting to the news that the Interior Department will continue to delay the long-scheduled offshore energy lease sale in areas 50 miles off the Virginia coast:

When the governor of the commonwealth of Virginia asks the federal government to partner with his administration in an effort to convert the abundant reserves of energy off his shores into jobs, revenue and energy security for Virginians, you’d hope to see a sensible process move forward. If news today out of MMS is any indication, the federal government appears ready to delay that critical work for at least another year, meaning additional delays in creating jobs, reducing energy costs and getting the U.S. economy moving again.

The Administration should do more to show that it recognizes the tremendous economic opportunity that safe and responsible offshore energy exploration presents to the citizens of Virginia, and the nation at large.

We’re talking about thousands of high-wage jobs here, and billions in annual revenue that can be raised without imposing a single new tax. When it comes to promoting alternative energy resources offshore, the Administration has compiled an impressive record – and we applaud those efforts. This announcement signals that the Administration may not be looking to maximize our nation’s enormous oil and gas potential offshore with the same enthusiasm.  Those who support a balanced, commonsense national energy strategy look forward to continuing to work with the Administration to create jobs, improve our national and energy security and responsibly allow access to our abundant resources.

Bob McDonnell was sworn in Saturday as Governor of Virginia, and thus his first speech in office was an Inaugural Address, a tone-setting speech more philosophical than programmatic. (Text.) Still, we’ll include it among state of the state addresses we’ve been reviewing, reporting on whether governors mention “manufacturing,” “industry” or variants thereof.

McDonnell, a Republican, did indeed cite “industries” when stating his belief that developing domestic energy will lead to economic growth and jobs for Virginia.

In his speech to the State Chamber of Oklahoma on Thursday, National Association of Manufacturers’ President John Engler discussed jobs creation through energy, infrastructure and exports. On the energy front, he discussed the astonishing expansion of domestic natural gas production (and potential production), thanks to technological advances in hydrofracturing.

Following are his prepared remarks from that section:

In Oklahoma, a proud tradition of supporting energy has helped keep your unemployment 3 percentage points below the national average.

You’re one of the states benefiting from development of shale gas, in this case the Woodford Shale. In Texas, there’s the Barnett Shale; in Arkansas, the Fayetteville Shale; in Louisiana the Haynesville Shale. Since 2000, gas from shale has grown from less than 1 percent of the nation’s production to about 10 percent.

Perhaps the most promising development is the Marcellus Shale underneath Pennsylvania and New York and West Virginia. Analysts say the Marcellus alone has enough gas to meet the nation’s needs for at least 14 years.

These natural gas deposits are close to northeastern population and manufacturing centers – they could be a real boon to consumers and industry in the area. But environmental groups have stirred up opposition, for example, in New York State, where there’s a pitched battle going on over natural gas drilling.

Opponents play on people’s fears of a technology that’s actually been in use for decades –- hydrofracturing. Thanks to massive R&D by energy companies, the technology has been improved, made even safer, and combined with horizontal drilling to open these shale deposits.

Oklahoma’s unemployment rate in October was 7 percent.