Pitt. Professor’s Claims on Shale Gas, Water Use Don’t Quite Reflect Reality
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)
McMahon Letter to Gov. Paterson Decrying Hydraulic Fracturing Short on Facts, Long on Hysteria
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?
A Note About Fracking. Pickens Plan. “The astonishing amount of natural gas which is now available in North America is largely due to relatively recent developments in recovering natural gas from shale deposits. Massive shale deposits under the continental United States in Texas, Louisiana, Arkansas and Appalachia contain enormous amounts of natural gas. But until fracking was developed to be a safe and efficient drilling technique, this natural gas was not available for commercial recovery. … Hydro-fracking is the safest, most efficient mechanism currently available for recovering that natural gas.
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: CERA study “reminds us to what we owe the recognition for making this energy revolution possible,” specifically hydraulic fracturing
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.”
“Fracturing is safe, effective and very much needed in the context of today’s enormous challenges
related to energy, the economy, and the environment”
WASHINGTON – Energy In Depth executive director Lee Fuller issued the following statement today subsequent to news from the House Energy & Commerce Committee that the panel is interested in learning more about a critical, 60-year-old energy technology known as hydraulic fracturing:
“Hydraulic fracturing is an essential component of producing clean-burning energy in America today, and to the extent the committee’s inquiry into this process helps clear up some of the misconceptions that have come to be associated with the technology, it’s a study we look forward to contributing to. In our view, the committee will benefit enormously from learning more about the procedures, practices and regulations in place to safeguard underground sources of drinking water – and in particular, the steps that are taken at every wellsite in America to ensure the proper casing and cementing acts as an effective barrier between the inside of the wellbore and the environment outside it.
“If the responsible development of shale gas represents a potential game-changer for the United States, hydraulic fracturing represents a non-negotiable tool needed to leverage that potential into reality – and the jobs, revenue and opportunity that come with it.
“It’s understandable that lawmakers would take an interest in learning more about this critical technology moving forward. But as they begin their latest study of the fracturing process, we’d also commend to their attention the various statements, studies and testimonials by and from organizations like EPA, the Department of Energy, and the Ground Water Protection Council – all of which have found, and consistently so, that fracturing is safe, effective and very much needed in the context of today’s enormous challenges related to energy, the economy and the environment.”
READ MORE
Comments by EPA’s Steve Heare aligns with past statements from agency, directly contradicts arguments in support of FRAC Act
WASHINGTON – States are doing “a good job already” when it comes to regulating a 61-year-old energy technology known as hydraulic fracturing, a top EPA water official said yesterday – directly contradicting those who support re-writing the Safe Drinking Water Act to impose EPA regulation over the process for the first time in the agency’s (or Act’s) history. Following comments made yesterday from Steve Heare, EPA’s director of EPA’s drinking water protection office, Energy In Depth executive director Lee Fuller issued the following statement:
“These comments from a key EPA drinking water protection official underscore the tremendous work that state regulators have done for decades, and continue to do today, to ensure the proper balance between responsible energy exploration and the safeguarding of our land, air and water. They also align seamlessly with every single official pronouncement that EPA has ever made on hydraulic fracturing; namely, that fracturing technology is safe, it’s incredibly effective, and that it poses no risk to drinking water supplies as currently regulated.”
In particular, Fuller pointed to testimony offered in December by several EPA water and compliance officials to a committee of the U.S. Senate, a hearing in which EPA’s Peter Silva, Cynthia Giles and Matthew Larsen were asked if they were aware of a single instance of water contamination tied to hydraulic fracturing. None were able to identify a single such case, according to the hearing transcript – a reality confirmed by EPA itself in 2004 when it found “no evidence” of alleged contamination after conducting an exhaustive study of the issue over the course of nearly five years.
Fuller also noted that EPA’s latest comments on hydraulic fracturing present a direct challenge to those who support the so-called FRAC Act currently being considered in Congress – legislation that would fundamentally re-write the 36-year-old Safe Drinking Water Act (SDWA) with an eye on shoehorning hydraulic fracturing into a potentially unworkable federal regulatory regime. Sponsors of the FRAC Act premise their support for the bill on the assertion that states cannot effectively regulate the fracturing process as currently constituted – a notion that stands in direct contradiction to comments made by Mr. Heare yesterday.
“It seems we have a bit of a disagreement to resolve here,” Fuller added. “If supporters of the FRAC Act believe that EPA’s drinking water official is wrong, they should say so – and be ready to defend that assertion. Alternatively, if they think he may right, they ought to take a second look at the legislation they’re trying to pass, and perhaps do a bit more research into how their individual states are effectively handling this important responsibility. I think they’ll be pleasantly surprised by how aggressively this process is being managed by experts on the ground and in the community.”
READ MORE
