WASHINGTON – Shale gas exploration “ranks as the most significant energy innovation so far this century” according to a report published by IHS/Cambridge Energy Research Associates (CERA) and released this week in Houston – and hydraulic fracturing, the decades-old technology that’s being used today to unlock these unconventional resources, has “always been regulated at the state level” ably, aggressively and while ensuring proper safeguard for air, water and the surrounding environment.

Subsequent to the release of the report, Energy In Depth executive director Lee Fuller issued the following statement:

“It’s long been said that America’s enormous shale gas resources have the potential to fundamentally recast our nation’s energy and economic future for the better; today’s report from CERA provides new evidence that such a transformation is already well underway. It also reminds us to what we owe the recognition for making this energy revolution possible – specifically, the critical role that hydraulic fracturing technology continues to play in positioning our country to seize on these historic opportunities.

“More relevant to the underlying policy debate, though, is the information in this report highlighting the processes, procedures and regulations in place to ensure this work continues to be done safely and while protecting and preserving the surrounding environment. Contrary to the suggestions of some, hydraulic fracturing is not a new technology, it’s not an untested one, and it’s certainly not a process exempt from stringent regulation. The reality is actually quite the opposite, and this report tells that story in a detailed and comprehensive way – and one that’s accessible for a broader audience.”

What follows are several of the key excerpts culled from the study:

On Supply, Price, Jobs:

Shale gas exploration “ranks as the most significant energy innovation so far this century … It has the potential, at least, of a paradigm shift in the fueling of North America’s energy future.”

“At the national level IHS Global Insight has estimated that the overall natural gas industry employed 550,000 workers in 2008 and was responsible for the creation of an additional 2.4 million jobs in supporting industries, adding over $400 billion to the US economy.”

“The abundance and relative low cost of the natural gas resource base have transformative implications for North American natural gas markets.”

“In fact the robust prospects for shale gas will help to stabilize long-term natural gas markets.”

On Water Use:

“Shale gas production is considerably less water intensive than other types of energy production. Ten times as much water is used to produce the equivalent amount of energy from coal, and ethanol production can use as much as a thousand times more water to yield the same amount of energy.”

On Water Safety:

“Shale gas deposits are typically located several thousand feet below the deepest potential underground source of drinking water, and the low permeability of shale rock and other intervening formations restricts upward flow of fraccing fluids into drinking water aquifers.”

“At present there is no evidence that liquids used for hydraulic fracturing of deep shales can migrate upward to contaminate drinking water aquifers, and there are strong geological arguments to the contrary.”

“Oil and gas operations are widespread throughout North America and drinking water supplies have been appropriately safeguarded from contamination from these activities for many years. This suggests that the risks can be managed and that shale gas development can proceed safely, with proper industry management and regulatory safeguards in place.”

On State Regulation:

“Hydraulic fracturing has always been regulated at the state level by the agencies that regulate all natural gas production in the state.”

“The focus of state regulation is the protection of groundwater resources, and the mechanism for this protection is proper well construction.”

“A properly installed well includes steel casing surrounded by concrete to separate the well from freshwater aquifers above the shale gas zone. The surface casing extends at least 50 to 100 feet below the deepest potential source of drinking water—the required depth is established by regulations in each state. Regulatory inspections ensure that the well is structurally sound before fracturing occurs.”

On the Environment:

“The positive environmental attributes of shale gas are many. … The climate change benefits of natural gas get the most attention, but emissions of local air pollutants also decrease, including sulfur dioxides, nitrogen oxides, mercury, and particulates.”

TODAY’S CLAIM: “Under normal circumstances, Volz does not talk in alarmed sound bites.”(11/13/08)

VOLZ FLASHBACK: “We have no control — we have absolutely no control — over our region’s water destiny.” (11/13/08)

Yesterday, U.S. Rep. Michael McMahon (D-N.Y.) fired off a letter to Gov. David Paterson demanding that the state institute a blanket ban on the use of hydraulic fracturing technology in developing clean-burning natural gas resources on roughly one million acres of mostly private land in New York State.

According to the congressman, and five other members of the state’s congressional delegation who signed on as well, hydraulic fracturing – a technology that’s been used for decades in New York to safely and responsibly develop both oil and natural gas – “endangers the drinking water of more than 9 million New Yorkers.” And so, in their view, it must be stopped before it even begins – notwithstanding “any potential economic benefits” that may accrue to his constituents in the form of new jobs, new revenue, and the promise of a clean and affordable energy future.

At 531 words, the McMahon letter is brief – tight, to the point, and serially inaccurate. Let’s see how well it holds up under an EID fact check?

While some maintain that hydraulic fracturing is a new technology and is not effectively regulated (or regulated at all), such claims are unsupported by the facts. Energy-producing states closely and tightly regulate this technology, which has been in use for more than 60 years. In fact, 9 out of 10 wells produced nationwide use this technology. And it’s never – not once – contaminated groundwater.

But what exactly is hydraulic fracturing and why is to so important to America’s long-term energy and economic security? Great question.

Are you a “visual” learner, or just interested in seeing exactly how the fracturing process actually works? Well, you’re in luck. Chesapeake Energy has produce an informative web video about this critical process. And the American Petroleum Institute (API) also has an excellent web video explaining the fracturing process, and the steps taken to ensure minimal environmental and land disturbance occurs. Both videos, and other helpful resources, are available on Energy In Depth’s multimedia page.

But despite this technology’s long and clear record of effectiveness and environmental safety, some in Washington are working to impede the production of homegrown, job-creating energy.

Fortunately, many leaders in Washington appreciate how vital fracturing is to the nation, how it’s well regulated by the states, and how it’s helping to create jobs and economic activity throughout the country. And they’re fighting hard to see that Washington does not strip states of their ability to manage and regulate this technology, knowing that jobs, economic growth and energy security are at risk.

In a recent Shreveport Times op-ed (which was cross-posted on EID’s blog) entitled “Misguided policies threaten job creation,” Louisiana Congressman Steve Scalise – a member of the House Energy and Commerce – writes this:

“Thanks to fracturing, which has been safely used for 60 years, Louisiana’s energy industry created almost 33,000 jobs and generated $3.2 billion into our state’s economy.

“Some in Washington are even working to strip energy-producing states of their ability to regulate fracturing. Turning this authority over to the Environmental Protection Agency (EPA) would threaten energy production altogether and could severely hurt job creation and economic activity at a time when we absolutely need it.

“Fracturing is not only a safe way of increasing our nation’s domestic energy supply, but it is a proven way to reduce our dependence on Middle Eastern oil, create good American jobs and keep energy prices stable for struggling families, senior citizens and small businesses.”

Congressman Scalise has a strong congressional delegation partner in Congressman John Fleming, who’s be a fierce supporter of shale gas development enabled by hydraulic fracturing. The folks at The Hayride, a Louisiana policy and politics blog, noticed this strong partnership, too.

Under the headline “Scalise, Fleming, La. House To Waxman, Markey: Go Away And Leave Us Alone,” The Hayride reports:

While the U.S. House Committee on Energy and Commerce awaits responses to letters it sent to natural gas producers as a precursor to hearings later this month on whether federal regulation is warranted on hydraulic fracturing, Louisiana’s congressional delegation and state legislators are taking a very vigorous and aggressive stance in fighting Washington’s attempts to interfere with the promise of the mammoth Haynesville Shale natural gas play and the coming energy boom it can mean for the state.

At a time when people are asking “where are the jobs,” thousands of high-paying jobs are waiting to be created in America’s energy industry. Jobs can be created today by further developing America’s natural resources such as oil and natural gas and expanding on new technologies such as hydraulic fracturing or “fracing,” a critical tool in tapping the huge potential of our country’s natural gas supply.

Instead of a comprehensive national energy policy that would create jobs, this administration and the liberals running Congress are trying to ram through a “cap and trade” national energy tax that would ship millions of jobs overseas and raise energy prices on American families. And these same people continue to threaten our energy security through attempts to put an end to critical technologies like fracturing.

In Louisiana, the energy industry is among our top employers; and we are proud to be one of the largest producers of domestic energy in the United States. Louisiana has the second-largest refining capacity in the U.S., with 2,300 active oil and natural gas platforms in the Gulf of Mexico and 19 crude oil refineries. More than 80 percent of the nation’s offshore oil and natural gas is produced off our coast.

And, more recently, our state has seen huge successes in the Haynesville Shale in northwest Louisiana. By using environmentally sound energy production technologies such as fracturing and horizontal drilling, we are safely unlocking huge amounts of clean-burning, job-creating natural gas. In fact, thanks to fracturing, which has been safely used for 60 years, Louisiana’s energy industry created almost 33,000 jobs and generated $3.2 billion into our state’s economy.

Unfortunately, this economic activity and job creation is threatened by misguided Washington policies such as “cap and trade” and billions in new, burdensome taxes on homegrown energy exploration.

Some in Washington are even working to strip energy-producing states of their ability to regulate fracturing. Turning this authority over to the Environmental Protection Agency (EPA) would threaten energy production altogether and could severely hurt job creation and economic activity at a time when we absolutely need it.

Louisiana’s Legislature formally urged Congress to ensure that fracturing remains tightly regulated by the states, as it has for 60 years. A number of other energy-producing states that share Louisiana’s common-sense approach to allow states to effectively regulate fracturing have passed similar resolutions.

Turning the regulation of fracturing over to the EPA is not only unnecessary but would represent nothing more than a one-size-fits-all power grab by those who oppose responsible, 21st-century American energy production. Louisiana, along with virtually every other energy-producing state, already has comprehensive laws in place to protect drinking water sources and ensure that shale gas production does not compromise the environment.

Because of these effective state protections — and the commitment from industry — fracturing has been used in more than 1 million wells throughout the U.S. without a single case of groundwater contamination. Not one in 60 years. The EPA confirmed this fact at a recent Senate hearing. And just weeks ago, a top EPA drinking-water official said, “State regulators are doing a good job overseeing hydrofracking, and there’s no evidence the process causes water contamination.”

Fracturing is not only a safe way of increasing our nation’s domestic energy supply, but it is a proven way to reduce our dependence on Middle Eastern oil, create good American jobs and keep energy prices stable for struggling families, senior citizens and small businesses.

The American people deserve common-sense solutions that will help redirect our weakened economy. We should promote ideas that create jobs and harness — not stifle — the American ingenuity that has helped us become the greatest nation in the world.

U.S. Rep. Steve Scalise represents Louisiana’s 1st Congressional District and serves on the House Energy and Commerce Committee and Energy and Environment subcommittee. His Web site is www.scalise.house.gov.

NOTE: Congressman Scalise’s post also appeared in today’s Shreveport (LA) Times. Click HERE to view the column on-line.

U.S. Natural Gas Hockey Stick: The Technology-Driven Energy Boom. Seeking Alpha, Prof. Mark Perry. “The Energy Information Administration released final data Tuesday for 2009 domestic natural gas production (data here), and the graph above shows that production hit a new record level in 2009, breaking the previous record set in 2008. … This surge in domestic natural gas production over the last three years has enabled the United States to overtake Russia as the world’s No. 1 producer of natural gas, and is all due to advanced drilling methods now being used to drill for gas through a type of rock known as shale.

Instead of increased oil tax, look to natural gas. Washington Times, LTE. “Fortunately, because much of our oil consumption is used for transportation, domestically produced natural gas provides a reasonable, clean and practical alternative. Many buses and trucks – and even some cars – are powered by natural gas. America has an abundance of natural gas from conventional stocks, and new extraction methods have increased those supplies. Unconventional sources hold the promise of a virtually unlimited supply. … Clean, safe and abundant, domestically produced natural gas is the practical and economical alternative energy source to reduce our use of foreign oil.

‘La. Way’ not perfect blueprint. Shreveport Times, Editorial. “The Louisiana Way, of course, also is made possible by blessings that aren’t man-made. This oil-producing state during the 2008 energy crisis added millions to state revenue. The Haynesville Shale has done the same for state and local government, as well as landowners, and created almost 500 direct jobs. Overall, it’s a bit too early to evaluate Jindal’s economic approach. He credits his policies with creating more than 35,000 direct and indirect jobs and generating $4.6 billion in new capital investment. We do like the attention the administration is paying to the needs of existing industry and that it is looking beyond traditional manufacturing sectors for economic opportunities of the future.

Beige book: Region’s economy improving. Pittsburgh Post-Gazette. “Economic conditions in the Pittsburgh region continued to show signs of improvement “although overall activity remains significantly below pre-recession levels,” the Federal Reserve said in a report Wednesday. The Fed’s latest Beige Book report said the economy improved, albeit modestly, in nine of its 12 districts, including the Fourth District, which includes Western Pennsylvania, Ohio, the northern panhandle of West Virginia and eastern Kentucky. … There were two positive trends noted in the Fourth District report: Natural gas drilling may get a boost from recent investments made in Marcellus Shale reserves, and some businesses are beginning to recall laid-off workers.

Reed: Health care needs ‘common-sense reforms’. Olean (NY) Times Herald. “Mr. Reed said he supports exploration for natural gas in the Marcellus shale formation that runs across the Southern Tier “in a safe and reliable manner.” He said the hydrofracking method of extracting oil and natural gas has been in use here for decades. Horizontal drilling uses new technology, however. Mr. Reed  said groundwater contamination from hydrofracking ”is an extremely remote situation.” He said the state and local governments were best suited to regulate the drilling, but acknowledged concerns expressed by the U.S. Environmental Protection Agency (EPA) over the state’s  environmental hydrofracking process.

Officials OK plan to drill Marcellus shale for natural gas. Pittsburgh Post-Gazette. “Officials in North Fayette and Robinson, Washington County, have approved an energy company’s plans to drill the Marcellus shale field, which contains natural gas. Oklahoma-based Chesapeake Appalachia LLC will create five natural gas wells on land that straddles the neighboring townships. The formerly strip-mined site, owned by Champion Processing Inc., is in an industrial zone bordered by Route 980, Steubenville Pike, Beech Hollow Road and Candor Road.

POGAM to merge with another industry group in light of Marcellus Shale drilling. Bradford (PA) Era. “Due to industry attention from the Marcellus Shale drilling, the Pennsylvania Oil and Gas Association (POGAM) plans to merge with the Independent Oil and Gas Association of Pennsylvania. Together, the organizations will create the Pennsylvania Independent Oil and Gas Association. Debbie Salinas, IOGA-PA membership coordinator, said the organizations will hold a vote Monday at the Knights of Columbus in Wexford. POGAM members will meet at 10:30 a.m., followed by the IOGA-PA meeting at 1 p.m.

Gazprom Sees LNG Competing With Shale Gas, Targets U.S. Market. Bloomberg. “OAO Gazprom expects liquefied natural gas shipments to compete with rising output of shale gas in the U.S. as the Russian producer aims to expand into the world’s biggest energy market. “Shale gas and LNG are competitive in one price range,” Gazprom Deputy Chief Executive Officer Alexander Medvedev said in an interview in Paris yesterday. “The market will say who will be in the market and with what.” Gazprom, the world’s biggest gas producer, plans to gain as much as 10 percent of the U.S. market by 2020. … U.S. shale gas could displace significant volumes of LNG, potentially growing to a similar scale as the entire current global LNG market by 2015, JPMorgan Chase & Co. said in a report on Feb. 9. The unconventional resource is “a complete game changer” in the U.S., BP Plc CEO Tony Hayward said in January at the World Economic Forum in Davos, Switzerland.

Deals in US onshore natural gas play grow in scope. Financial Times. “The ways in which foreign companies can benefit from the boom in US onshore natural gas is growing beyond those drilling and producing the energy. StatoilHydro, the Norwegian oil and gas company, has already done a deal to get into the exploration and production side of things. And on Tuesday it said it had entered into deals to deliver gas produced in the Marcellus shale field to New Jersey and New York.

Cramer Calls Anadarko Up to Majors. CNBC’s Mad Money. “Cramer reiterated his buy call on Anadarko Petroleum after its hard-hitting investor conference call today. The Mad Money host thinks APC doesn’t get enough credit from Wall Street and is widely viewed as a relatively small independent oil and gas producer. But the company “belongs with the likes of Chevron and Occidental Petroleum,” he said, “and should be called a major.”

Statoil eyes New York markets. UPI. “A deal to transport shale gas from the Northern Marcellus shale gas play in Pennsylvania gives Norway’s Statoil access to key U.S. markets, the company said. Statoil Natural Gas, the U.S. subsidiary of Norwegian energy giant Statoil, brokered a deal with Tennessee Gas Pipeline and Texas Eastern Transmission to move 70 billion cubic feet of shale gas to the New Jersey and New York City areas. … “These agreements secure access to some of the main pipeline systems for gas in the New York City area and thereby help maximize the value of our gas produced in the Marcellus shale,” he said.

East gives $50000 to 4-H. Wellsboro (PA) Gazette. “East Resources, Inc. today signed an agreement with Penn State’s Cooperative Extension Service to create a new 4-H endowment fund for Tioga County. East created the endowment with an initial principal investment of $50,000. The fund will be used to supplement financial support for the Tioga County 4-H program and may include educational awards for 4-H members. “East Resources has a major stake in Tioga County’s future through its oil and gas interests, and our contribution to this endowment reflects East’s commitment to help sustain that future,” says Bob Long, the company’s executive vice president.

Marcellus shale meeting in Hopewell. Pittsburgh Post-Gazette. “The president of the Marcellus Shale Coalition will join energy and government officials in a free public session about Marcellus shale issues in Beaver County from 8 to 10 a.m. Friday in Shadow Lakes Country Club, 2000 Beaver Lakes Blvd., Hopewell. Speakers from various organizations will discuss topics including water issues, transportation, natural gas rates, impact on local landowners and distribution of natural gas extracted from Marcellus shale. The meeting is sponsored by state Rep. Jim Christiana, R-Beaver.

A riddle, a rant, and the virtues of natural gas. Christian Science Monitor. “The Nat Gas Act is essentially the most intelligent thing that’s come before our elected officials in decades. It is a bill that will stimulate the conversion and new building of heavy vehicle fleets that run on our most abundant and clean-burning fuel, natural gas. Think city buses, 18-wheelers, sanitation trucks, etc. The legislation will provide tax credits and subsidies to help facilitate the necessary infrastructure build-out and lead to networks of nat gas fueling stations, eliminating the principal roadblock toward an energy-independent future.

Oil & Gas Expo sets registration deadline for May business event. Washington (PA) Observer-Reporter. “Regional businesses looking to market their services to the oil and gas industry are invited to attend the second annual Tri-County Oil & Gas Expo Business-to-Business event, scheduled for 10 a.m. to 3 p.m. May 8, at Washington County Agricultural Fair and Expo Center. Offering networking opportunities and a direct connection to the oil and gas companies working locally to develop the Marcellus Shale gas field, the business-to-business event will feature vendor exhibit space and informational break-out sessions presented by industry experts. Indoor and outdoor exhibit space is available for $150 a booth. The deadline to register for the event has been extended to March 15.

EID’s Lee Fuller: “Plain Dealer readers should also be aware that earlier this week, a top EPA drinking-water official stated the same thing — suggesting further that states, and not the federal government, are best positioned to regulate this critical technology in a way that balances the imperative of responsible energy exploration with the safeguarding of our environment. … The fluids used in the process are made of 99.5 percent water and sand — with the slight remainder comprised of household materials you’re just as likely to find in the kitchen cupboard and beneath the kitchen sink.” (Cleveland Plain Dealer, 2/20/10)

EID’s Jeff Eshelman: “Pennsylvania saw an increase of nearly 50,000 jobs last year alone thanks to safe, responsible, well-regulated natural gas production in the Marcellus Shale. Unfortunately, when it comes to hydraulic fracturing – the 60-year old energy production technology used in nine out of 10 wells in America – the congressman’s claims are simply unsupported by the facts. Fracturing has never been regulated by the federal government. … Instead, ground water protection has been effectively regulated by the state government. The bipartisan 2005 energy bill – which was supported by then-Sen. Barack Obama – simply clarified Congress’ intent of the Safe Drinking Water Act. So how could something earn an exemption, or a “loophole,” from a law that it was never regulated by?” (The Daily Local, 2/27/10)

LOGA’s Don Briggs: “For decades this process has been effectively regulated by the states. In 2009, the Groundwater Protection Council released a study on the regulation of oil and gas field activities saying, “The regulation of oil and gas field activities, including hydraulic fracturing, is best accomplished at the state level where regional and local conditions are best understood. …” If hydraulic fracturing were to be regulated by the EPA, President Obama could easily shut down the development of the Haynesville Shale, resulting in the loss of thousands of jobs and billions of dollars in investment.” (The Daily Advertiser, 2/21/10)

Okla. Independent Petroleum Assoc.’s Mike Terry: “The major components of hydraulic fracturing fluid are well-known, with water and sand accounting for up to 99 percent of the solution. The remaining additives are the same compounds found in soaps, detergents, cosmetics, medications and chemicals commonly found in households. … Hydraulic fracturing has been used commercially since 1949, and there have been no known cases of drinking water contamination. … Increased regulations will lead to a decrease in competition.” (The Oklahoman, 2/23/10)

Chesapeake’s Aubrey McClendon: “McClendon defended the process, saying that … Chesapeake Energy has employed hydraulic fracturing more than 25,000 times since the company started in 1989, including 1,000 wells drilled inside Fort Worth’s city limits, with no ill effects on groundwater.” (Harvard University Gazette, 2/25/10)

Institute for Energy Research: “Hydraulic fracturing has been in use for more than 60 years and has been deployed more than a million times without contaminating drinking water. This is possible for a few reasons. Energy-producing states heavily regulate the practice, employing teams of qualified professionals that monitor, inspect, and enforce state law to ensure the public’s safety. In addition, the fracturing of these wells occurs 6,000 to 9,000 feet below our feet and thousands of layers of impermeable rock.” (Boston Globe, 2/19/10)

Lenape Resources’ John Holko: “According to Penn State University, more than 48,000 high-wage jobs were created in Pennsylvania in 2009 alone as a direct result of Marcellus exploration. Total economic output tied to this work topped $3.8 billion. And more than $400 million was sent to state and local governments in the form of taxes and revenues — again, just in a single year.” (Times Union, 2/11/10)

Newspapers Speak Out: Waxman’s Latest “Inquiry” on Hydraulic Fracturing Could be a “Witch Hunt”

The Oklahoman: “Yet they seem to have bought into the fear-mongering extant over fracturing. The technique involves injecting water, sand and chemicals into shale formations. This cracks open the shale and facilitates natural gas production. … This could be a responsible, objective examination. Or it could be a witch hunt. The Environmental Protection Agency, which said six years ago that hydraulic fracturing doesn’t threaten the water supply, wants to spend more than $4 million to study fracturing. … If America is to move toward greater energy independence, natural gas is a key component. And hydraulic fracturing is a key method for making that happen.” (Editorial, 2/23/10)

Washington Examiner’s Mark Tapscott: “Already the initial drilling of Marcellus Shale in Pennsylvania is causing an economic boom in small Pennsylvania towns that have been in dire economic straits for decades. Public support for expanding Marcellus Shale exploration and production is growing there, as well as in New York. But that’s exactly why environmentalists and their liberal Democrat allies in Congress, the media, the non-profit advocacy communities, and the universities are targeting hydraulic fracturing for elimination, seeking to turn it into the next hook for nationwide environmental fear-mongering. They claim – with virtually no credible evidence to back it up – that hydraulic fracturing represents a dire threat to the drinking water millions of Americans in places like New York City and Philadelphia must depend upon every day.” (Editorial, 2/20/10)

The Washington Observer-Reporter: “Natural gas drilling in the Marcellus Shale could provide an economic shot in the arm for this region and Pennsylvania as a whole. … Natural gas has potential as an energy source and a jobs-provider, no doubt about it.” (Editorial, 3/2/10)

Washington Post: “The resurgence of gas comes through the discovery of massive deposits in Appalachian shale formations and elsewhere — a reserve that offers the prospect of stable domestic supplies and relatively low prices.” (Editorial, 2/28/10)

Academics Confirm Critical Role that Hydraulic Fracturing Will Play in Long-Term U.S. Energy Security

Univ. of Mich.-Flint Prof. Mark Perry: “Thanks to a breakthrough in drilling technology, involving the use of three-dimensional seismic imaging and hydraulic fracturing of shale rock, huge amounts of natural gas are being produced in New York, Pennsylvania, Texas, Louisiana and other states. Instead of declining, domestic natural gas production is booming to record-high levels. … But these exciting energy developments may not last if natural gas companies are burdened by excessive regulation and heavy taxes. Environmental groups are lobbying Congress to shift regulation of hydraulic fracturing from state governments to the Environmental Protection Agency, claiming that the process poses a risk to groundwater supplies. But the fact is, hydraulic fracturing is done about 1,000 feet below underground aquifers and separated from the water supply by thick rock.” (Investor’s Business Daily, 2/19/10) 

Members of Congress, State Legislators Continue to Weigh-In: Fracutring is Safe, Effectively Regulated by States

Congressman John Fleming (LA): 

• “He said the extra federal regulation would increase costs, reduce production and eliminate jobs.”Production would essentially grind to a halt, and billions of dollars in federal and state tax revenue would be at risk.” (Alexandria Town Talk, 3/1/10)
• “This action would have a far-reaching negative impact on energy producers and consumers alike, particularly in formations such as the Haynesville Shale in my district which depend on hydraulic fracturing to produce. In 2008, production in the Haynesville Shale pumped $4.5 billion into Louisiana’s economy and created over 32,000 jobs. Adding additional layers of regulations to hydraulic fracturing would not only result in a sharp increase in costs to small and independent producers, it would dramatically decrease output and job creation.” (Bossier Press-Tribune, 2/26/10)
• “If Congress is serious about tackling this country’s energy crisis and ending our dependence on foreign oil then it is crucial they recognize what resources, such as the Haynesville Shale, will play in our long-term economic and national security. More burdensome federal regulation will only serve to hinder production and feed this country’s addiction to foreign energy.” (Bossier Press-Tribune, 2/26/10)

Okla. state Rep. Mike Thompson: “Hydraulic fracturing is a safe and successful drilling method in which water, sand and chemicals are injected at high speeds into a well to fracture rock and free up natural gas. This is a method that has increasingly been used in many shale formations across the country and has led to the discovery of increased levels of domestic natural gas. … The Interstate Oil and Gas Compact Commission conducted a survey that found there were no known cases of groundwater contamination associated with hydraulic fracturing.” (The Oklahoman, 2/27/10)

Rust Belt No More: Shale Gas Exploration Powers Economic Growth in OH, PA

Manufacturing Jobs Coming to Ohio: 

• “Pipe Dreams Come True Thanks to Marcellus Shale … After years of incentives, tireless work, political pressure, and labor concessions, what is bringing heavy steel manufacturing back to the Valley is a layer of rock deep beneath our feet.  It’s called the Marcellus Shale, named after the town of Marcellus, New York, where there is an exposed outcropping. …This is creating the demand for high-quality steel pipe used to punch through the shale and into the gas deposits that is enticing V&M and TMK IPSCO to build or expand facilities here.” (WYTV-OH, 2/25/10)
• “An oil-and-gas pipe maker says it plans to open a new facility in Brookfield. TMK IPSCO said Tuesday it has signed a lease on a building where it plans to produce up to 100,000 tons of threaded pipe annually. The company said it expects to begin operations in the township in the coming months; up to 120 people could eventually be employed there. President and CEO Vicki Avril says the new facility is in direct response to the growing demand for infrastructure at Marcellus Shale well sites that are located under parts of Ohio and Pennsylvania.” (Tribune Chronicle, 2/23/10)

Tens of Thousands of Jobs Being Created in Pennsylvania:

• “New ventures in natural gas may take Tioga County from ‘rags to riches’ … “I think the fastest growing areas of the county are going to be Mansfield, Wellsboro and Lawrenceville,” he said, adding that he thinks the valley between Mansfield and Covington will “fill in” in the next few years, mainly because of the discovery of gas within the Marcellus Shale. … With that, jobs will come, and plenty of them, he said. Some of those jobs will be filled by local people, while others will move here with their families. … Before the natural gas industry discovered the gas trapped in the shale beneath Tioga County, it was considered to be a “slowly dying” county, Trask said.” (Williamsport Sun-Gazette, 2/18/10)
• “With the expansion, TMK IPSCO plans to take advantage of increased demand for pipe to be used for drilling in the Marcellus Shale formation. … “This is a move we’re taking to be more responsive to our clients who are flocking to Marcellus Shale,” Galitzine said. He said IPSCO has seen increased interest in possible Marcellus-related pipeline orders since 2008, and the company has refitted its lines in Ambridge and Koppel to manufacture 5.5-inch-wide pipe, an ideal width for use in the shale fields. … But the Marcellus field has changed the prospects, Galitzine said, both for IPSCO and its employees. The Brookfield plant is expected to immediately employ 50 people, which will increase to 120 employees.” (Beaver Co. Times, 2/25/10)
• “It’s one business. It’s 50 jobs. And they are almost all going to local people. Those are the pertinent details regarding approval last week by Montoursville Borough Council allowing Sooner Pipe to operate a pipe storage facility on the industrial section of the Williamsport-Lycoming County Airport. … And the best part is that this is probably just the tip of the proverbial gas industry iceberg. As the industry settles into the region, there will be needs for pipe manufacturing, cutting and storage, equipment providers, freight storage and other offshoot businesses and industries. They all will be employing people, often with unique, high-paying skills. Those people will be spending money on food, clothing and shelter. That is the root definition of economic development, private enterprise style. It’s the best kind of economic development.” (Williamsport Sun-Gazette, Editorial, 2/25/10)
• “Fracturing is an old technology already regulated by states. … A July 2009 study by Pennsylvania State University estimates developing the Marcellus shale basin added more than 48,000 jobs in the state last year” (Wall Street Journal, 2/27/10)

State Regulators Speak Out: List of Chemicals “Available on DEP’s Website”

PA DEP Water Management Chief: “Our job is to produce gas and protect the future,” said John Hines, deputy secretary for water management from DEP. He explained the Marcellus shale gas reserve could potentially hold “enough gas to fully supply the nation for 10 or more years.” Hines added producing that gas could create new wealth as well as new jobs, “but not at the sacrifice of our water resources.” … During his testimony, Hines attempted to dispel rumors that certain “secret” chemicals were used in the fracing process. He said that DEP distributed a list to the public of all the chemicals that were used. Hines said the Material Safety Data Sheets were also distributed to local emergency responders. The list is available on DEP’s Web site.” (Clearfield Progress, 2/19/10)

Give up?

It’s Congressman John Fleming, of Louisiana’s fighting 4^th district.

As we’ve blogged about here before, although Mr. Fleming is still relatively new to Congress, he understands the economic benefits, as well as anyone, that are associated with safe, responsible, well-regulated, 21^st century shale gas production.

In a recent speech on the floor of the U.S. House, the congressman discussed hydraulic fracturing – the 60-year old technology that is used to stimulate energy production in 9 out of 10 wells produced in America. Most importantly, though, the Mr. Fleming weighed in on the potentially devastating consequences of a one-size-fits-all, top-down approach to regulating fracturing, especially as it relates job creation and economic activity.

This from the speech:

This action would have a far-reaching negative impact on energy producers and consumers alike, particularly in formations such as the Haynesville Shale in my district which depend on hydraulic fracturing to produce.

In 2008, production in the Haynesville Shale pumped $4.5 billion into Louisiana’s economy and created over 32,000 jobs.

Adding additional layers of regulations to hydraulic fracturing would not only result in a sharp increase in costs to small and independent producers, it would dramatically decrease output and job creation.

Production would essentially grind to a halt and billions of dollars in federal and state tax revenue would be at risk.

If Congress is serious about tackling this country’s energy crisis and ending our dependence on foreign oil then it is crucial they recognize what resources, such as the Haynesville Shale, will play in our long-term economic and national security.

Several local newspapers highlighted the congressman’s commitment to commonsense fracturing regulations. The Alexandria Town Talk reports this under the headline “Fleming: Hydraulic regulations could hurt Haynesville Shale”:

U.S. Rep. John Fleming is blasting Democrats on a House committee for launching an investigation into the safety of hydraulic fracturing. “The same team that brought America the job-killing, tax-hiking cap-and-trade legislation appear to be at it again,” Fleming, R-Minden, said in a speech last week on the House floor.

He said the extra federal regulation would increase costs, reduce production and eliminate jobs. “Production would essentially grind to a halt, and billions of dollars in federal and state tax revenue would be at risk,” he said. Don Briggs, president of the Louisiana Oil and Gas Association, called the investigation into fracturing a “witch hunt.”

And under the headline “Fleming to Congress: More regulation will hinder production,” the Bossier Press-Tribune reports this:

Representative John Fleming, M.D. addressed the House of Representatives Wednesday, expressing his disapproval of a recent Committee investigation by Reps. Henry Waxman (CA) and Ed Markey (MA) aimed towards giving the EPA unprecedented power to enact oppressive regulations on hydraulic fracturing, the technology that allows producers to reach natural gas.

Other legislators, especially those from energy-producing states that understand how effectively fracturing is currently regulated, are speaking out, too. In a recent column, Oklahoma state representative Mike Thompson – who chairs the Energy & Utility Regulation Committee – writes this in The Oklahoman:

Hydraulic fracturing is a safe and successful drilling method in which water, sand and chemicals are injected at high speeds into a well to fracture rock and free up natural gas.

Approximately 35,000 wells are hydraulically fractured annually in the United States and close to 1 million domestic wells have been hydraulically fractured since the inception of the technique, with no known harm to groundwater.

Regulation of hydraulic fracturing under the Safe Drinking Water Act would impose significant administrative costs on Oklahoma and substantially increase the cost of drilling oil and gas wells with no resulting environmental benefits. More importantly, the regulation of hydraulic fracturing would increase energy costs to the consumer.

Despite the recent growth seen in hydraulic fracturing, there have been no instances of drinking water contamination….

States have a long and clear record of safely and effectively regulating fracturing. If you agree that producing more homegrown energy must be a key element in addressing our long-term energy solutions, and that we must continue to foster job creation and economic activity through producing American energy reserves, then send Congress the message the hydraulic fracturing is effectively regulated by the states.

Marcellus shale could be a boon or bane for land owners. Pittsburgh Post-Gazette. “When CNX Gas Corp. was spun out of Consol Energy Inc. in 2005, the infant company began life as a coalbed methane producer with tens of thousands of acres of land. Only later did it realize it held 161,000 acres that could produce natural gas from the sprawling geographical formation called the Marcellus Shale. … A gas company does it own homework before ever offering the lease, first by identifying parcels of land that hold production potential. That potential involves more than determining the likely presence of gas. Other factors that may be involved include access to water for use in the hydraulic fracturing process, and access to the interstate network of pipelines that transport gas across the country.

Attempting to score political points. The Oklahoman, state Rep. Mike Thompson. “Hydraulic fracturing is a safe and successful drilling method in which water, sand and chemicals are injected at high speeds into a well to fracture rock and free up natural gas. This is a method that has increasingly been used in many shale formations across the country and has led to the discovery of increased levels of domestic natural gas. … There are a number of reasons why this investigation isn’t needed. …the Interstate Oil and Gas Compact Commission conducted a survey that found there were no known cases of groundwater contamination associated with hydraulic fracturing.

Frac fluid fears show capacity for inconsistency. Oil & Gas Journal, Op-Ed. “Controversy over hydraulic fracturing fluids and their possible effect on drinking water demonstrates the boundless human capacity for inconsistency. Although chances are low that injected frac fluid will find its way down anyone’s throat, fear persists in parts of the US about contamination of subsurface drinking water. It persists despite the tens of thousands of frac jobs producers have performed over 60 years without fouling groundwater. … A reason the fear persists is that people don’t know what’s in the small fraction of most frac fluid that isn’t sand and water. The ingredients, in many cases, are commercial secrets. …So an activity mysterious to people unfamiliar with it contains something unknown, which opponents of the activity spin into fear.

A Natural Choice. Washington Post, Editorial. “In America’s climate debate, one of the most promising developments of recent months has been the growing recognition in Washington that natural gas may play a key role in curbing carbon emissions. The resurgence of gas comes through the discovery of massive deposits in Appalachian shale formations and elsewhere — a reserve that offers the prospect of stable domestic supplies and relatively low prices. Since burning natural gas produces half the emissions of burning coal, switching the two fuels could put a significant dent in America’s carbon footprint.

Weak Economy Gives Energy a Jolt. Wall Street Journal. “Meanwhile, Congress will investigate the environmental impact of hydraulic fracturing, or “fracking,” crucial to burgeoning shale-gas production. A leak of radioactive material is the ostensible reason for Vermont senators’ ire. But this also may reflect posturing ahead of elections as well as price negotiations for a new power-purchase agreement. Fracturing is an old technology already regulated by states. … A July 2009 study by Pennsylvania State University estimates developing the Marcellus shale basin added more than 48,000 jobs in the state last year. Unemployment there was 540,900, or 8.9%, in December. Governors grappling with severe budget gaps also might note the forecast of an extra $12 billion in net present value terms for Pennsylvanian state and local taxes out to 2020. That is equivalent to half a year’s total state-tax revenue.

DEC standards high. Press & Sun-Bulletin (NY), LTE. “Given the scaremongering of the environmental extremists who have weighed in on this issue, the most important disclosure at this rally was the fact that more than 10,000 wells have been drilled in New York over the last two decades under present regulations with only one minor incident involving methane seepage which was corrected within three days. This safety record is a testament to the professionalism of the DEC and the high standards already incorporated into state law with respect to natural gas exploration and production.

$53 million Washington-Greene gas pipeline plan is topic of meeting. Pittsburgh Post-Gazette. “The Federal Energy Regulatory Commission will hold a public meeting Wednesday to accept comments and review the environmental impacts of a $53 million natural gas pipeline project proposal in Washington and Greene counties. The project proposed by National Fuel Gas Supply Corp. would increase capacity of existing pipelines by 150 million cubic feet a day and enable the system to better carry natural gas from the quickly multiplying number of Marcellus shale deep wells in southwestern Pennsylvania. “Local Marcellus shale producers need a way to get new production to market, and this will assist them,” said Sandra James, a spokeswoman for National Fuel Gas.

Natural gas workers boost real estate market. Pittsburgh Post-Gazette. “The Marcellus Shale field can be portrayed as a boon or a bane, depending on whom you talk to, but to the Realtors operating in Washington County, there’s not much of a downside. Natural gas drilling companies and firms related to the development of the shale are doing some hiring locally. But many of the field crews, engineering experts and front-office workers are imported from out of state because they have an expertise that the native work force doesn’t yet possess. They’ve been coming here since 2003, scouting drilling sites and establishing satellite offices. In 2008 and 2009, the pace of new arrivals has quickened. Their presence, and their need for housing, has helped keep afloat Washington County’s middling real estate market.

Atlas Energy Retains Jefferies to Sell Shale Stake. Bloomberg. “Atlas Energy Inc., the Pennsylvania- based natural-gas producer, retained Jefferies & Co. to sell a stake in as many as 584,000 acres it controls in the gas-rich Marcellus Shale, Chief Executive Officer Edward E. Cohen said. Atlas said Marcellus output reached the equivalent of 60 million cubic feet of gas in the fourth quarter from the company’s first 10 horizontal wells tapping the formation, all drilled last year. Producers are drilling sideways for more than 2,000 feet (610 meters) through the shale beds, fracturing rock with water, sand and chemicals to free trapped gas.

Marcellus by-product: Lots of legal work. Philadelphia Inquirer. “If there is such a thing as a typical small-town law practice, then Les Greevy’s could serve as the template. Or at least it might have a few years ago. Greevy, 66, has been practicing law in Williamsport in the state’s northern tier for more than 40 years, just as his father and grandfather had before him. His practice traditionally centered on representing municipal governments, insurance companies, and individual clients seeking advice on estate and trust matters. Then came the Marcellus Shale natural-gas discovery, and Greevy’s world was turned upside down.

Last week, we blogged about the nearly 350 jobs directly tied to responsible natural gas production from the Marcellus shale that are now en route to the struggling Ohio river valley. And this week comes word of yet another round of uplifting economic news from northeastern Ohio.

The Associated Press pipes in the good news via an item filed today:

An oil-and-gas pipe maker says it plans to open a new facility close to the Marcellus Shale natural gas reserve beneath Appalachia. TMK IPSCO said Tuesday it has signed a lease on a building where it plans to produce up to 100,000 tons of threaded pipe annually. The building is in Brookfield, Ohio, about 60 miles northwest of Pittsburgh. TMK IPSCO said it expects to begin operations there in the coming months. The company says up to 120 people could eventually be employed there. President and CEO Vicki Avril says the new facility is in direct response to the growing demand for infrastructure at Marcellus Shale well sites.

In Trumbull County, where the unemployment rate was recently as high as almost 14 percent, this uptick in economic activity is a welcome development to most, but not necessarily to all. Truth is, some folks continue to oppose the production of clean-burning, American natural gas on the grounds that hydraulic fracturing is not adequately regulated by the states. But these arguments continue to fall on the opposite side of the facts, especially as it relates to hydraulic fracturing’s long, clear and unmistakable record of safety.

Energy In Depth’s Lee Fuller appeared in two major, regional papers in just the past few days, responding to mischaracterizations about fracturing.

In the Cleveland Plain Dealer, Fuller writes:

Readers should also be aware that earlier this week, a top EPA drinking-water official stated the same thing — suggesting further that states, and not the federal government, are best positioned to regulate this critical technology in a way that balances the imperative of responsible energy exploration with the safeguarding of our environment.

And in the Wilkes-Barre (PA) Times Leader, Fuller notes:

Your readers should know that a top EPA official responsible for drinking water regulation recently said that “State regulators are doing a good job overseeing hydrofracking and there’s no evidence the process causes water contamination.”

Geoff Styles, an environmental consultant with an MBA and a chemical engineering degree to boot, blogs on Energy Collective about hydraulic fracturing, dispelling baseless attacks on this critical, safe and effective 60-year energy technology. In his post, Styles writes:

The key fact from the perspective of fracking safety is that the deepest of these aquifers lies no more than about 500 ft. below the surface, and typically less than a couple of hundred feet down. By contrast, the Marcellus Shale is found thousands of feet down–in many areas more than a mile below-ground–with a thickness of 250 feet or less. In addition, the gas-bearing layers are sealed in by impermeable rock, or the gas would eventually have migrated somewhere else. In other words, the shale gas reservoirs are isolated by geology and depth from the shallower layers where our underground drinking water is found.

Closing strongly, Styles adds:

The real choice here isn’t between energy and drinking water, as critics imply, but between tapping an abundant source of lower-emission domestic energy and what looked like a perpetually-increasing reliance on imported natural gas just a few years ago.

If you’re like us, and support producing more job-creating energy here at home – and agree with the EPA’s top drinking water regulator that states are effectively regulating fracturing – then send Washington the message to call off the unnecessary attacks on fracturing.