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Bakken shale

Harvard Study Confirms Shale’s Benefits
Just a few months in, 2013 is proving to be a very frustrating year for ideologically motivated environmental activists seeking to ban hydraulic fracturing. Now, a new report from researchers at Harvard makes clear why activists’ efforts are failing -- and will likely continue to do so.

johnkrohnJD
Communications Director

 Just a few months in, 2013 is proving to be a very frustrating year for ideologically motivated environmental activists seeking to ban hydraulic fracturing. So far, they have been confronted with three important facts: a plurality of Americans supports the technology, politicians in both parties are accepting it as a means to improve both the economy and environment, and the President’s nominees to lead the Department of Energy and Environmental Protection Agency have both declared that natural gas, and by extension hydraulic fracturing, is a key component of the nation’s energy future.

Now, compounding this frustration, a new report from researchers at Harvard’s Belfer Center for Science and International Affairs makes clear why activists’ efforts are failing — and will likely continue to do so. Specifically, the report found that, on a global scale, “a long-term domestic supply of natural gas is expected to yield environmental benefits,” as the fuel “has the lowest carbon dioxide emission factor at combustion of any fossil fuel.” The study also observes that shale development is certain to continue well into the future, noting that “unconventional fossil fuel extraction from shale formations has already transformed the U.S. energy portfolio,” and that, as a result, “unconventional oil and gas are poised to dominate the U.S. market in the coming decades.”

The study also took a closer look at development in the Bakken, Barnett and Marcellus shale basins to identify environmental concerns and whether or not practices are being implemented to mitigate those concerns. Here again, activists were served a bitter pill. Even though the researchers suggested the industry typically has a “slow rate of adoption” of environmental mitigation (which simply isn’t true), they nonetheless concluded that “the degree of adoption across available technologies highlights characteristics of successful environmental mitigation strategies.” In other words, the industry is proactively addressing environmental concerns through the rapid advancement of new technology.

Now, that’s not to say the study didn’t find any areas in need of improvement. Indeed, there were about twenty items — ranging from “laying reusable mats over well pad site and planned access routes, rather than laying gravel” to “setting surface casing at greater depths.” But, as you can see, the suggestions offered by the researchers don’t point to any inherently troubling concerns with hydraulic fracturing and shale gas development. A few examples:

What ties these (and many others in the report) together is that they’re already being implemented across the country, something that the Harvard researchers also noted. Closed-loop systems are in use in the Marcellus, and many operators are already recycling fluids and drilling muds. Operators have also begun implementing central water conveyance systems in many areas, and green completions are also increasingly being utilized (MIT previously found that such technology had been adopted at a far higher rate than previous studies had estimated). Green completions will also be required for nearly all natural gas wells beginning in 2015.

So, in summation, one of the nation’s pre-eminent academic institutions took a closer look at a process that fringe environmental groups describe as being an “inherently dirty and dangerous process that decimates entire landscapes.” Because they were interested in facts instead of hysteria, they came to a completely different conclusion. Indeed, their review indicated that shale development will provide significant environmental benefits, and that reducing environmental footprints even further is not only possible, but is actually a task already in progress.

In sum, the Harvard study is good news for those of us who view shale development as a valuable part of our energy future, as well as those of us who are interested in solutions and progress. In that sense, it’s yet another reminder that those who want to demagogue “fracking” in order to raise funds from wealthy donors are actually arguing against expert consensus.

Jobs and Opportunity: Stories from the Bakken

Brian Carpenter
EID Guest Columnist; Sturgis, S.D.
 
 
 

Sturgis, South Dakota sits on the northern end of the Black Hills, about 30 miles from Rapid City and an hour north of Mount Rushmore.  It’s probably best known for the Sturgis Motorcycle Rally held each August.  This event is internationally renowned with up to half a million motorcyclists from all over the world attending the rally for a week of fun and entertainment.

But the rest of the year Sturgis is a quiet town with a population of 6,500.  Like many small towns across America, economic opportunities can be hard to come by, especially in recent times.  Good paying jobs here are scarce, and many young people find it necessary to move away to pursue a future filled with promise.  It is a sad realization when one discovers they must travel away from their home and family; sometimes long distances, to make an honest and successful living. That’s why many people here see the economic activity generated by North Dakota’s Bakken play as a tremendous opportunity.  Even though the Bakken formation itself is about a five hour drive north of Sturgis, it’s having a dramatic impact on the lives of many people in this area.

One such individual is Bailey Cleland.  Bailey is a 21 year old native of Sturgis.  He had planned on going into the Navy after high school, but a knee injury disqualified him from service.  After some searching he found a good job with Paragon Water Solutions, a North Dakota based company.  Paragon treats both the salt and fresh water used in the oil and natural gas development process, removing the drill cuttings from the water and allowing it to be re-circulated throughout well development.  They pioneered the use of a vacuum filtration device to clean rig water. During the three or four days it takes them to clean the water in a rig’s reservoir, Cleland and his crew live in trailers at the well site.

Paragon pays $17 per hour to start, with a raise usually offered after three months.  The crew works twelve hours per day, eighty-four hours per week.  They work for two weeks and then get two weeks off, during which time Cleland returns to Sturgis.  Workers get overtime pay for every hour after forty hours. You can see how this compensation can add up quickly or in Cleland’s words “That’s how you really make your money.”

When asked about his opinion regarding oil and natural gas development in North Dakota Cleland said:

“This is an opportunity to change your life.  It’s an opportunity to make a lot of money and get ahead and save for your future.”

Cleland said that he enjoys the hard work, the mechanical experience he is gaining, and the problem solving skills he is developing as part of his job.  He realizes the work may not last forever and he hopes to work in the industry for approximately five years or just long enough to save up enough money to start his own welding shop.

Jacob Evans tells a similar story.  Evans, also a 21 year old Sturgis native, used to work for a local pizza restaurant.  Now he works for Marquis Alliance Energy Group.  He is responsible for waste material disposal and centrifuge operations.  His job involves stabilizing the solid waste material from the well development process.  The cuttings recovered are mixed with fly ash and other substances which render them safe for disposal.  This mixture is then trucked away to a central site for burial. When asked how he likes his job he said, “I love it!  I get to work with heavy equipment, and I make really good money.”

While Evans likes his job he will be the first to tell you the hours are long and the work is hard.  He works twelve hours per day and seven days per week during his time on the rig.  He says the hard work and long hours are worth it.  Evans stated that after less than three months of employment he is making $3,600 per month, plus $50 per day in per diem pay as well as a $100 per day rig bonus for every day he is on the rig.  When asked how this new opportunity has shaped his life Evans had some profound and reflective words to share:

“I kind of got into some trouble before,” he said.  “This has enabled me to pay off some things and make a new start.  It’s a golden opportunity to make a future for yourself.  There are more jobs than people, and you can make more money than anything else in the area.”

Evans also brought up a point that is often overlooked.  The Bakken Shale does not discriminate and provides good jobs for all citizens.  In fact, Evans said it was an especially good opportunity for those who did not plan, or are unable, to go to college.

Jenn Tobin’s husband, Wade, also works in the North Dakota oil and gas fields. The Tobin’s have been married for thirteen years and have three children.  They moved to Sturgis from Clear Lake, SD in August of this year.  Wade has a degree in industrial engineering.  He had worked for a company in Watertown, SD for several years, but a bad business climate led to layoffs and he lost his job.  After a couple of other engineering jobs, Wade took a job with Halliburton.  Using the knowledge he gained at Halliburton he recently left to open his own business as an independent contractor.

The Tobin family places a high priority on Jenn being able to stay at home with her children during their most formative years.  They also wanted to send the kids to a Christian school.  The good salary that Wade earns through his employment in the oil and gas industry enabled this to come true with Jenn at home and the children being enrolled at a Christian school in a nearby town.  In this case it is clear that the oil and gas industry’s presence here allowed the Tobin’s to reach important goals they set for their family. Jenn is excited about the situation and the opportunity it presents her family.

“I love being at home,” Jenn says.  “There are some challenges to being alone sometimes, like when the snow blower is broken and the sidewalk needs to be shoveled. But I am the only child of a single mother.  I’ve always been independent and been able to manage.  I appreciate the sacrifice my husband is making for his family and the opportunity the natural gas and oil industry has provided us. This is a much needed stepping stone to achieve our long-term goals and provide for our family.”

 

*Update II* Fracturing Technology Lowering Energy Prices – Even In Areas It’s Not Used

Try as some folks might, it’s just getting tougher and tougher to avoid/ignore/deny the reality of responsible shale development qua massive creator of jobs, revenue and American opportunity. Just this week, the Associated Press highlighted the significant employment gains being made right now in the Buckeye State — where natural gas development is re-invigorating the U.S. steel industry and pumping literally billions of dollars back into communities that could sure use the lift right now.

Of course, you could also look west to North Dakota, where the state is enjoying a nation leading 3.5% unemployment rate thanks to the development of the Bakken.  And as those development activities have continued across the country, another benefit is making itself known to the American consumer: significant cost savings in the form of lower energy bills.

In a recent article in the Buffalo News, Gary Marchiori, President of Energy Mark, a local energy services firm in upstate New York, summed this up quite succinctly stating:

Whether they realize it or not, consumers in the Buffalo Niagara region are benefiting from natural gas production in the Marcellus Shale every time they turn their furnace on.

Here, he’s talking about how the responsible development of the Marcellus Shale – and other tight reservoirs in the east – has had the effect of driving down natural gas prices across the entire country, reducing the cost of heating homes, cooking your food and manufacturing just about anything in the world that matters.

In New York, this trend is borne out in estimates for heating costs this year put forward by the National Fuel Company.  The company declared that the typical residential household will have winter heating costs of approximately $719 which is a $350 decrease from prices paid just two years ago.

Sounds nice right? Just to make sure, we thought we’d give Mr. Marchiori a call ourselves, having never spoken to the man previous to seeing him quoted in the newspaper. And guess what? Turns out Gary’s a great guy who knows a great deal about energy markets in western New York, and beyond. According to Gary:

Due to excess surplus from shale, you should have [natural gas] stored and retained throughout the year, keeping prices low well through next year.  Adding to this stability is presence of major natural gas producers, whose additional exploration and production can be expected to lead to a more predictable supply, thus removing significant market volatility and also helping to keep prices low for the consumer.”

Of course, these benefits are not limited to New York.  In fact, the UGI corporation, one of the largest utilities on the east coast providing natural gas to approximately 56,000 customers, also announced that it would be lowering its natural gas prices resulting in cost savings on average of 13.5% to residential customers. While a rate decrease of this magnitude may not seem significant, with this decrease natural gas costs for UGI customers will be about 27% less than they were just three short years ago.  This good news may just end up meaning an extra present or two below the Christmas tree this year in many homes thanks to cost savings brought about by shale development.

According to Vicki O. Ebner, Senior Vice President, Customer & Government Relations at UGI, this all attributable to the safe and responsible development of our nation’s shale resources:

The increase of supplies of natural gas from Marcellus Shale has helped create continued downward price pressure on natural gas. We are pleased to pass this cost savings on to our customers as we approach the winter heating season, especially in the midst of extreme price volatility for other energy sources. Now more than ever, natural gas is an affordable, efficient and reliable American fuel, and the energy source of choice for homes and businesses.

All of this comes on top of news released earlier this year from the Energy Information Administration (EIA).  EIA stated earlier this year that throughout the northeast, wholesale natural gas prices were down between 2% and 15% over the summer, reflecting both lower regional demands and growing natural gas production from the Marcellus Shale.

Benefits like these can’t be trivialized easily by those opposing natural gas development as it means the chance to breathe a bit easier for our nation’s neediest families. After all with announcements earlier this year indicating that  16 million U.S. children are living below the poverty level this year (highest level since 1962) we are pretty sure that many families appreciate cost savings wherever they can be found.  Thanks to natural gas development one place to look is your monthly utility bill.

Update 1- December 1, 2011

Today, the Scranton Times Tribune also featured the cost-savings brought about in northeast Pennsylvania thanks to Marcellus development.  The paper adds to this already great story, stating:

Update II- December 2, 2011

The hits just keep on coming.  Today, the Des Moines Register confirmed that shale gas is significantly bringing down consumer prices of natural in the Hawkeye State and across the continental United States.  The article, titled “Natural Gas Story Warm and Fuzzy” highlighted the benefits shale development is bringing to folks in Iowa, among many other places.  Specifically informing Iowans that while they may be preparing for their first sub-freezing temperatures of the year staying warm may be just a bit less costly as:

 the price of natural gas, the prime heating fuel in the state, is running at a five-year low thanks to expanded domestic production.

Iowa joins Pennsylvania, New York, Rhode Island (and just about all of New England for that matter) and countless other states enjoying reduced utility bills this winter thanks to the safe and responsible development of our natural gas resources.  As our nation continues to struggle with stubbornly high unemployment rates for many Americans struggling to make ends meet it is  likely comforting to know that staying warm will cost less and that continued production should keep this the case for some time.

The Amazing Energy Future that the Federal Government Wants to Prevent

Shale oil development in places like North Dakota means ‘OPEC’s days are numbered,’ but federal regulators pursue alternative future with potentially devastating results.

In 2004, North Dakota was the ninth largest oil producing state in the country, producing less than half as much oil per year as the state of New Mexico. In 2010, a mere six years later, North Dakota had climbed to the fourth largest, surpassing energy rich Oklahoma and Louisiana. What happened?

Two words: shale oil. The Bakken formation in the western part of the state, which the U.S. Geological Survey predicted in 1995 had only 151 million barrels of oil, turned out to be one of the largest onshore oil fields ever discovered in the United States — in 2008 the USGS famously revised its estimate upward by an amazing 25-fold, projecting that the Bakken could hold more than four billion barrels of oil.

This incredible story was told in detail this weekend in the Wall Street Journal‘s weekend interview, ” How North Dakota Became Saudi Arabia,” which focused on Harold Hamm, the oil man credited with discovering the massive energy potential in the Bakken:

[S]ince 2005 America truly has been in the midst of a revolution in oil and natural gas, which is the nation’s fastest-growing manufacturing sector. No one is more responsible for that resurgence than Mr. Hamm. He was the original discoverer of the gigantic and prolific Bakken oil fields of Montana and North Dakota that have already helped move the U.S. into third place among world oil producers.

How much oil does Bakken have? The official estimate of the U.S. Geological Survey a few years ago was between four and five billion barrels. Mr. Hamm disagrees: “No way. We estimate that the entire field, fully developed, in Bakken is 24 billion barrels.”

Of course, none of this would have been possible were it not for horizontal drilling and hydraulic fracturing, both of which are needed to unlock the vast deposits of oil and natural gas in shale deposits across the country.

Yet even with this amazing success story, the America’s ability to reduce its reliance on OPEC is far from written in stone, and indeed seems to be under attack by federal regulators whose actions could undermine this renaissance just as its getting started. As the WSJ further explains:

[Hamm's] only beef these days is with Washington. Mr. Hamm was invited to the White House for a “giving summit” with wealthy Americans who have pledged to donate at least half their wealth to charity. (He’s given tens of millions of dollars already to schools like Oklahoma State and for diabetes research.) “Bill Gates, Warren Buffett, they were all there,” he recalls.

When it was Mr. Hamm’s turn to talk briefly with President Obama, “I told him of the revolution in the oil and gas industry and how we have the capacity to produce enough oil to enable America to replace OPEC. I wanted to make sure he knew about this.”

The president’s reaction? “He turned to me and said, ‘Oil and gas will be important for the next few years. But we need to go on to green and alternative energy. [Energy] Secretary [Steven] Chu has assured me that within five years, we can have a battery developed that will make a car with the equivalent of 130 miles per gallon.’” Mr. Hamm holds his head in his hands and says, “Even if you believed that, why would you want to stop oil and gas development? It was pretty disappointing.”

Washington keeps “sticking a regulatory boot at our necks and then turns around and asks: ‘Why aren’t you creating more jobs,’” he says. He roils at the Interior Department delays of months and sometimes years to get permits for drilling. “These delays kill projects,” he says. Even the Securities and Exchange Commission is now tightening the screws on the oil industry, requiring companies like Continental to report their production and federal royalties on thousands of individual leases under the Sarbanes-Oxley accounting rules. “I could go to jail because a local operator misreported the production in the field,” he says.

The impact of the “regulatory boot” and federal delays have a greater cost than hamstringing America’s capacity to produce energy. They also undermine the type of job creation and economic growth that a struggling economy so desperately needs:

Mr. Hamm believes that if Mr. Obama truly wants more job creation, he should study North Dakota, the state with the lowest unemployment rate in the nation at 3.5%. He swears that number is overstated: “We can’t find any unemployed people up there. The state has 18,000 unfilled jobs,” Mr. Hamm insists. “And these are jobs that pay $60,000 to $80,000 a year.” The economy is expanding so fast that North Dakota has a housing shortage. Thanks to the oil boom—Continental pays more than $50 million in state taxes a year—the state has a budget surplus and is considering ending income and property taxes.

Less reliance on OPEC. More high-paying jobs. Budget surpluses. Lower tax burdens for everyone. These are undeniable benefits of responsible oil and gas production — particularly in states with significant shale resources such as Pennsylvania (Marcellus shale), Texas (Eagle Ford shale), Louisiana (Haynesville shale), and now Ohio (Utica shale) — that the federal government should be encouraging. Instead, members of Congress are pushing for the Environmental Protection Agency to ban hydraulic fracturing, thereby cutting off at the knees America’s energy revolution. The President, meanwhile, is threatening to curb domestic oil and gas production through higher taxes.

Instead of trying to shut down North Dakota’s model of more American energy production, more jobs, and more public revenue, maybe the federal government should be taking lessons from it.

Just The Facts: University of Pitt. Prof. Sets the Record Straight on Hydraulic Fracturing

Just The Facts: University of Pitt. Prof. Sets the Record Straight on Hydraulic Fracturing
Positive benefits created by fracture stimulation technology continue to pour in from coast to coast

In an interview with KDKA radio’s Mike Pintet, Professor Radisav Vidic of the University of Pittsburgh’s Department of Civil and Environmental Engineering, sets the record straight on hydraulic fracturing – the 60 year-old energy stimulation technology that has been safely used to produced domestic oil and gas over 1.1 million times. Dr. Vidic, who holds a Ph.D. in environmental engineering, underscores hydraulic fracturing’s tight regulations and long and clear record of environmental safety.

On Hydraulic Fracturing’s Clear, Long Record of Protecting Groundwater: “There hasn’t been any proven case”

On Hydraulic Fracturing Fluid Disclosure: “Go on the DEP’s website”

On GasLand Claims About Flaming Faucets: “It’s not caused by drilling”

What are others saying about domestic oil and natural gas production enabled by hydraulic fracturing? We’re glad you asked.

 

 

 

 

ICYMI – Senior House Democrat to Speaker Pelosi: “Regulation of hydraulic fracturing is best left to the states”

EPA may halt oil activity
Pomeroy asks to turn down regulations
By Eloise Ogden
Minot (N.D.) Daily News
July 17, 2010

Rep. Earl Pomeroy, D-N.D., is asking House leadership to turn down any new regulations on hydraulic fracturing.

A state minerals expert also says any new regulations on hydraulic fracturing would have a catastrophic impact on the oil development in North Dakota.

Pomeroy sent a letter Friday to Speaker Nancy Pelosi urging her to reject any proposals that would place burdensome, new regulations on hydraulic fracturing in legislation

 

 

aimed at responding to the Gulf oil spill.

Some members of Congress have discussed attempting to attach new regulations on hydraulic fracturing to legislation aimed at addressing that tragedy, according to Pomeroy.

Lynn Helms, director of the N.D. Department of Mineral Resources, during a presentation in Minot in May, spoke about if the Environmental Protection Agency decides to regulate hydraulic fracturing.

“We really have got to stop that from happening,” he said. He said his department put together a document which tells how North Dakota regulates it and has gone to EPA headquarters and Gov. John Hoeven.

“If this happens, I can tell you that our Bakken and Three Forks drilling will have to stop for two to three years,” he said. He said when it happened to Alabama for coalbed methane, “they completely had to shut the door” for two years.

“By the time they got the rules written, the play had moved on and it has never been what it was before,” he said. “So that’s a huge cloud sitting over our industry a major impact. It would just reduce our activity to almost zero for two to three years.”

In his letter to Pelosi, Pomeroy said, “I believe that this would be a mistake and would find little support in the Senate. The EPA is currently undergoing a congressionally mandated study into hydraulic fracturing that is expected to be completed in 2012.”

Pomeroy called it “irresponsible” for Congress to enact new regulations

 

 

 

before the results of that study are known.

“Imposing new regulations now will do nothing to protect drinking water and will only serve to slow down development resulting in the loss of thousands of jobs and more imported oil. It is critical that any legislation related to the Gulf oil spill focus on responding to that tragedy and not include additional burdens on hydraulic fracturing,” he said.

Pomeroy pointed out that over the past two years, North Dakota has significantly increased its oil production, rising from the ninth largest oil producing state to the fourth. “This increase in production has resulted in a significant state budget surplus and the nation’s lowest unemployment rate,” he said.

Pomeroy toured oil-field operations in the Stanley area last week. “During these visits I saw firsthand the significant safeguards that are put into place to protect groundwater during hydraulic fracturing operations,” he said.

He said North Dakota currently has strong regulations on oil and gas development that more than adequately protect groundwater.

“These requirements include strict safety requirements on the storage and disposal of hydraulic fracturing fluid and on encasing the well to avoid leaks. The initial phases of wells are encased in several layers of cement from the surface to below the level of the deepest potable water source and below that level, wells are encased in an additional layer of cement to ensure that groundwater is in no danger of contamination,” he said.

Pomeroy said the regulation of hydraulic fracturing is best left to the states

 

 

 

. “Regulators in each individual state have a better idea of what steps are necessary to protect their residents and environment. Additionally, they are better equipped to implement commonsense regulations that fit their states unique needs than a catchall Environmental Protection Agency regulation,” he said.

NOTE: Click HERE to view this article online and HERE to view Rep. Pomeroy’s letter to Speaker Pelosi.

March Madness: Small Group in Congress Renews Efforts That Could Cost Jobs, Undercut American Energy Security

Unable to pass the bill in the previous two sessions of Congress, or secure even a single committee hearing during that time, proponents of the so-called FRAC Act re-introduced legislation earlier this week that seeks to fundamentally re-write a 37-year-old federal statute – with an eye on assigning the Environmental Protection Agency (EPA) direct authority over the regulation of hydraulic fracturing for the first time in the history of the Act, the technology, or the agency itself.

In a statement, Energy In Depth’s Lee Fuller underscored the potential impact this far-reaching, Washington-knows-best policy could have on America’s economy and job creators, as well as our nation’s energy security:

“Hydraulic fracturing is one of the most critical processes that occurs at the wellsite; it’s also among the most stringently regulated. With this technology, it’s possible that literally quadrillions of cubic feet of clean-burning natural gas can be rendered available for American consumers in the future, resources that would otherwise be too deep and diffuse to access. It’s a technology that’s been around a long time, stretching all the way back to the Truman administration. But it’s also a technology that’s never been more important to our nation’s economic and environmental future than it is today. Unfortunately, somewhere along the way, it became a victim of its own success. If hydraulic fracturing weren’t as patently effective as it is, it’s tough to imagine it’d be as strangely controversial as it has become.”

And today’s Wheeling News-Register reports this on the misguided legislation:

Lee Fuller, executive director of Energy In Depth, went further than Klaber, saying the FRAC Act is “based on fundamentally incorrect information,” noting the Safe Drinking Water Act was never used to regulate fracking. “Its backers say it’s about forcing companies to disclose the composition of the … solution that’s not water and sand, even though just about every state regulatory agency in the country will attest that such information is already available,” Fuller added.

Those responsible for regulating oil and natural gas development, and fracture stimulation technologies, are in agreement with energy producers on the facts: this 60 year old technology has never impacted groundwater, thanks in large part to the industry’s commitment to protecting the environment and the common sense state regulations and laws in place. This from Oklahoma’s News On 6 (also on EID’s YouTube page):

Chesapeake Energy’s Chairman and CEO, Aubrey McClendon, said he welcomes the study. “I think the EPA will do a good job of examining it,” McClendon stated, “and if we’re doing something wrong…somehow hurting the environment and we don’t know about it, then we want to fix what we’re doing wrong.”

But McClendon said Chesapeake has hydraulically fractured formations 14,000 times since 1989, and the record shows there isn’t anything wrong.

Larry Nichols, Devon Energy Executive Chairman, agrees. “Show us one single well where hydraulic fracturing has caused any problem,” Nichols said. “I’ve said that in testimony before Congress, and no one has yet to come up with one single well where hydraulic fracturing has caused a problem, that anyone can document with any scientific accuracy.”

The Oklahoma Corporation Commission has oversight of all drilling in the state, including fracking. Commissioner Bob Anthony believes the EPA study is a political scare tactic. “The facts are,” Anthony said in a written statement, “that hydraulic fracturing has been used in Oklahoma about 100,000 times in the last 60 years, with no documented cases of groundwater contamination.”

Nichols worries that the Obama administration’s goal, through the EPA study, is to wrest control of onshore drilling from the states. His fear is that they would then do to onshore drilling what they’ve done to offshore — “Shut it down,” he said.

A quick look around the U.S. at the overwhelmingly positive impacts that hydraulic fracturing – which is tightly and aggressively regulated by energy-producing states – continues to have, all of which would be jeopardized if the FRAC Act were to become law:

MT Gov. Brian Schweitzer, Western Governors Association chair, and fmr. Democratic Governors Association chair: “We’re increasing in Montana by thousands of jobs in drilling in what’s called the Bakken (Shale Formation) in eastern Montana,” the state’s Governor Brian Schweitzer told Fox News. “It is the richest geologic structure in all of the United States. Recent estimates are that there’s about 25 billion barrels of recoverable oil in the Bakken in North Dakota and Montana. To put that in perspective we import about 4 billion barrels a year. We use about 6 billon barrels a year. So this one structure in North Dakota and Montana could be one of the keys to energy independence in the short term.” (Fox News, 3/17/11)

Louisiana Association of Business and Industry (LABI) President Daniel Juneau: The second factor that can greatly expand economic activity in the state is for the federal government to stay out of regulating shale oil and gas drilling activities. In 2004, the EPA concluded a 5-year study that concluded that the hydraulic fracturing process used in shale drilling was safe. Now the current EPA wants to go back and revisit the issue. If the EPA outlaws hydraulic fracturing, it will be the death-knell for shale oil and gas production. There is currently a tremendous amount of economic activity going on in northwest Louisiana from shale gas drilling in the Haynesville Shale play. Across central Louisiana, there is a potential for as much as 70 billion barrels of crude oil from the Tuscaloosa Shale play. Production from these shale plays can be a real shot in the arm to jobs and investment in our state. (Bastrop Daily Enterprise Op-Ed, 3/16/11)

“Penn State study shows sales tax revenue higher in Marcellus counties”: A new Penn State University publication examines state tax collection data and specifically compares counties where there is drilling and production activity in the Marcellus shale play with that of non-Marcellus counties. … The data indicates that local spending has increased in counties with major Marcellus activity. State tax collections of the personal income tax and realty transfer tax show similar differences between Marcellus and non-Marcellus counties. (Oil & Gas Journal, 3/16/11)

“Why North Dakota Is Booming: They’re drilling for oil, attracting high tech, and keeping the tax burden moderate. Result: 3.8% unemployment.” Living on the harsh, wind-swept northern Great Plains, North Dakotans lean towards the practical in economic development. Finding themselves sitting on prodigious pools of oil—estimated by the state’s Department of Mineral Resources at least 4.3 billion barrels—they are out drilling like mad. And the state is booming. Unemployment is 3.8%, and according to a Gallup survey last month, North Dakota has the best job market in the country. Its economy “sticks out like a diamond in a bowl of cherry pits,” says Ron Wirtz, editor of the Minneapolis Fed’s newspaper, fedgazette. (Wall Street Journal Op-Ed, 3/15/11)

PA State Rep.: Marcellus Shale’s “powerful [economic] ripple effects are spreading throughout the commonwealth”: And in those once-depressed counties where clean natural gas trapped in the deep shale rock is now being reached for energy consumers through high-technology horizontal drilling and hydraulic fracturing, residents are enjoying a dramatic rebirth of jobs, business growth, and income. And, as a result, the Pennsylvania state treasury and the municipal governments in those regions are already receiving significant boosts in tax revenue … Pennsylvania natural gas is creating jobs, generating income, and boosting tax revenues. And while much of the economic activity remains concentrated in the Marcellus Shale regions, powerful ripple effects are spreading throughout the commonwealth. (The Sentinel Op-Ed, 3/12/11)

“Increased Drilling Creates Jobs”: An oil drilling boom across the American West is creating a wealth of job opportunities at a time when most segments of the economy remain sluggish. The boom is the result of new and updated technologies allowing companies to go after oil reserves that until recently were trapped in shale formations, making them too expensive and difficult to tap even five or ten years ago. “This is solid rock, so it’s not like a conventional resource where you just drill a well and the oil starts to flow,” Kathleen Sgamma, Director of Government and Public Affairs for The Western Energy Alliance, explained. “We have to crack that rock through a process that we call hydraulic fracturing where we pump high pressure water and a mixture, and sand down into the formation to crack the rock and create micro-fissures in the rock and prop it open with sand.” (Fox News, 3/17/11)

“This is an employment opportunity for the region. It’s going to provide a new workforce opportunity”: This summer, Clarion University’s Venango Campus will begin offering a natural gas technology program. “Obviously the Marcellus Shale industry is emerging in Pennsylvania and beyond, and it is going to be requiring a huge workforce,” said Christopher Reber, Executive Dean of Clarion University-Venango Campus. “There’s already been a phenomenal investment in Pennsylvania.” … “This is an employment opportunity for the region. It’s going to provide a new workforce opportunity, and certainly we’re committed to promoting economic development for the whole area,” Reber said. (WYFX-TV, 3/16/11)

ND’s Oil Boom Has “has created a $1 billion state budget surplus”: North Dakota, the state with the nation’s lowest unemployment rate, capped a decade of economic prosperity with dramatic population growth in its biggest cities. … North Dakota is enjoying an oil boom in the western part of the state, drawing workers from across the country. Williston, in oil country, grew 17.6% to 14,716. The oil windfall has created a $1 billion state budget surplus. … “We feel extremely fortunate for the position we’re in,” says North Dakota Commerce Commissioner Paul Govig. (USA Today, 3/17/11)

Hydraulic Fracturing, American Oil Production Creating Blue Collar Jobs: Increased drilling in the Niobrara Shale Formation in eastern Wyoming and Colorado is also creating job opportunities. “Currently, Noble Energy has over 60 jobs that are available in this area,” according to Stephen Flaherty, Director of Government Relations for Noble Energy. “The opportunities range from field pumpers, which just require a high school degree and no oil field service all the way up to petroleum engineers and everything in between; information technology services and accounting, just about every discipline.” (Fox News, 3/17/11)

From Williamsport to Watford City: Thanks to HF, “Anyone in the region who wants a job can find one”

Thanks to advancements in horizontal drilling and hydraulic fracturing technology, America’s oil and natural gas industry is doing its part to put folks back to work by leveraging our nation’s vast energy reserves into jobs, revenue and opportunity for those who need it. Whether it’s natural gas from the Marcellus or oil from the Bakken, thousands of jobs are being created, local economies are suddenly flourishing and America is strengthening its energy security by the day.

At a public hearing yesterday (click HERE for video) in Williamsport, Pa., members of the state senate heard from local economic and workforce development officials on the economic impact that the natural gas industry is having on the state’s economy. Larry Michael, executive director of Penn College’s Workforce & Economic Development program, summed it up best in this morning’s Williamsport Sun-Gazette:

“We believe that the economic and workforce opportunities are huge,” he said. “The magnitude of this opportunity will not only transform this region of the state but will provide the foundation resources to greatly enhance the overall economic health and job creation opportunities of the commonwealth.”

Industry representatives testifying at the hearing laid out in detail the number of jobs being created:

Perry Harris, northeast U.S. district manager of Halliburton, said the company has 750 state residents on its payroll and is looking for new workers every day. He noted recent development by the company with its facility near Montgomery, where 181 people are employed, and more will be hired.

Michael Narcavage, manager of corporate development for the Chesapeake Energy Corp., said… In the past year, the company has expanded its statewide workforce from about 250 full-time personnel to more than 1,100, many of those jobs in Bradford County, where the majority of the company’s operations are located.

Just to the west of Williamsport in Clinton County, the Lock Haven Express reports today that hundreds of new jobs have arrived in their community as well, thanks entirely to the responsible development of shale gas:

The Marcellus Shale natural gas play dominated Wednesday’s Clinton County Economic Partnership meeting. Partnership President and CEO Mike Flanagan reported about a dozen Marcellus gas-related companies have located in Clinton County, resulting in 200 new direct jobs and having a positive, indirect impact on trucking and construction-related companies in the area.

So what’s at stake if Washington moves to halt or restrict the use of HF?

U.S. Sen. Byron Dorgan (D-N.D.), senior member of the Energy and Natural Resources panel, summed it up best yesterday on the Senate floor: Domestic oil and gas development “will stop very quickly if we can’t continue what is called hydraulic fracturing”

Click HERE to watch this speech

“There is up to 4.3 billion barrels of recoverable oil using today’s technology [in the Bakken formation], according to the U.S. Geological Survey. That, plus the gas shale plays in much of the country and others, we’re beginning to produce a bit more oil and gas at this point in the country. That will stop very quickly if we can’t continue what is called hydraulic fracturing. That’s a big problem that we have to deal with.”

He went on to defend the safety record of 60-year-old fracturing technology, citing its importance to all states that rely on the successful production of our nation’s natural resources:

“I think most of us in this Senate who come from areas where we produce this fossil energy believe that [hydraulic fracturing] has been done for 50 years without a problem and now it is under some siege. … But we need to continue — and we will — with the production of oil in this country and natural gas.”

Clean Meets Green: U.S. Natural Gas Production Helping to Slash CO2, Create American Jobs

How does the United States start down the path of seriously addressing its nation’s energy crisis, reduce its deep and growing dependence on unstable regions of the world for energy, and at the same time maintain our competitive edge in the global marketplace? And oh, how do we put tens of thousands of Americans back to work who are struggling during one of the most drawn out economic downturns in a generation?

Keep Reading »

EID Reinforces the Imperative to Continue to “Let states handle fracking” Effectively

As the debate over responsible oil and natural gas development continues, particularly as it relates to the 60 year old process called hydraulic fracturing – the critical technology used more than 1.1 million times nationally in energy-producing states without ever impacting groundwater – Energy In Depth remains at the tip of the spear. In a Casper Star-Tribune letter to the editor today, EID’s executive director Lee Fuller writes this under the headline “Let states handle fracking”:

Tom Doll, supervisor of Wyoming’s Oil and Gas Conservation Commission, understands that hydraulic fracturing is an effective, environmentally sound and critical energy production technology. “The Commission has regulated hydraulic fracturing since 1954,” Mr. Doll, a petroleum engineer, has said. “Contrary to what has recently been in the press, the Commission has no documented cases of hydraulic fracturing negatively impacting ground water.”

What does Mr. Doll think about a one-size-fits all Washington, D.C., takeover of hydraulic fracturing currently being pursued by some in Congress? “We feel that we should administer our rules and regulate [fracturing] and we don’t need the help of the federal government in this regard,” Doll says, adding that states are “doing a good job.”

Wyoming, and a host of other energy-producing states, are doing a good job of regulating fracturing. Fracturing has been used to stimulate oil and natural gas production in more than 1.1 million wells since it came into commercial use in 1949 and it has never impacted or contaminated groundwater. The EPA, top state environmental regulators and a host of independent academics and energy experts have also confirmed this fact.

Mr. Fuller’s comments follow similar comments from the top energy production watchdog in North Dakota. This from the Minot Daily Times over the weekend:

“The Industrial Commission and the Department of Mineral Resources have made it no secret that we don’t think the EPA should regulate hydraulic fracturing. This is a way for the average citizen of North Dakota, if they feel that way or if they feel the opposite way, to voice their opinions to EPA,” Lynn Helms [director of the Department of Mineral Resources] said.

You see, individual states are best positioned and situated to regulate fracturing, as state regulators have the best ‘know-how’ of local and regional geology. And energy-producing states are taking commonsense steps to ensure that this process is tightly and effectively regulated. This from the Associated Press under the headline “Arkanasas board set to create rule on fracking”

Commission Director Larry Bengal says under the Arkansas rule, the operator would report the specific names and concentrations of the chemicals used during fracking. That information would be on the commission’s website. The rule also would require operators to provide information before starting the fracking process to prove that well casings can withstand pressure and won’t leak.

The hydraulic fracturing process uses millions of gallons of water, mixed with chemicals and sand, which are pumped at high pressure thousands of feet underground to create fissures in the rock — known as shale — and release the gas. According to the Oil and Gas Commission’s website, 99.5 percent of fracking fluid is sand and water. But small amounts of chemicals also are used to reduce bacteria buildup in the well, reduce friction and prevent corrosion.

This is a story of American ingenuity, driven by technological advancements. The results? Expanded access to reliable supplies of homegrown oil and natural gas and tens of thousands of good-paying American jobs at a time when they’re most needed. Here’s what they’re saying:

What Budget Shortfall?

Spiraling deficits, worker furloughs, budget cuts, and tax and fee hikes are common these days in state capitals across the nation. Unemployment remains near double-digits nationally, home foreclosures continue to skyrocket and a fear of a double-dip recession persists. And as economic growth continues to lag, stagflation remains a very serious threat to our economy, and to American families.

Thanks to the tightly-regulated 60 year-old oil and natural gas stimulation technology called hydraulic fracturing, however, tens of thousands of good-paying Americans jobs are being created and billions in much-needed revenues are being generated. At the same time, enormous amounts of reliable homegrown energy resources are being safely delivered to American consumers and small businesses, helping to drive down our nation’s dependence on unstable regions of the world to fuel our economy.

In North Dakota, where there’s virtual full employment, the responsible development of the state’s oil-rich Bakken Shale formation, enabled by hydraulic fracturing, continues to be an economic boon for the region. This from a Minot (ND) Daily News story this week under the headline “Oil revenue plays big role in state budget”:

Tax collections from oil and gas totaled nearly $583 million in 2010, a 43 percent increase from 2009 and a 250 percent increase since 2006, said Cory Fong, state tax commissioner. Biennium oil and gas tax collections are expected to total $1.4 billion for 2009-2011 and more than $2 billion during 2011-2013, he said. The state’s general fund budget this biennium is $2.7 billion.

Oil and gas tax revenues that have helped create a $1 billion state surplus also are pulling duty to support several spending areas, from property tax relief to schools and local infrastructure.

And in Pennsylvania, where the Mighty Marcellus Shale – the second largest natural gas field in the entire world – is being responsibly developed thanks to fracture stimulation technologies, the Associated Press reports today that the Commonwealth’s “unemployment rate fell for a second straight month in September, as employers added more than 7,000 jobs to their payrolls.”

Today’s Wilkes-Barre Times-Leader puts the historic economic opportunity into perspective, reporting this under the headline “Drilling backer sees 90,000 new Pa. jobs by end of year”:

Natural gas drilling in the Marcellus Shale is not a “flash-in-the-pan gold rush,” Klaber said, but an industry that will add 90,000 jobs to Pennsylvania’s work force by the end of the year and will produce steady employment for decades to come.

Such activity will not only produce drill site jobs, which Klaber said will move from site to site, but will also create careers at drilling company regional offices, many of which have already opened shop in Pennsylvania.

“I think it has happened quickly, but I think the coverage of it has been pervasive. I mean the interest in it has made it seem faster than it really is,” Marcellus Shale Coalition President Kathryn Klaber told The Times Leader on Wednesday.

As the Nat’l Economy Continues to Struggle, 25k Jobs on the Horizon in ND Thanks to Hydraulic FracturingPanel

This morning, the U.S. Department of Labor issued the nation’s monthly jobs report. These headlines speak to the bleak results:

But it’s not all gloom and doom. You see, because of technologies like hydraulic fracturing – a tightly regulated 60 year-old oil and natural gas stimulation process – thousands of good-paying private sector jobs continue to be created at a time when they’re most needed. At the same time, because of this work enable by fracture stimulation technologies, abundant supplies of homegrown, reliable sources of oil and natural gas are coming to market, helping to keep energy costs stable for struggling American consumers, families and small businesses.

Unfortunately, “the federal government has something in the works that, if approved, could paralyze North Dakota’s oil patch,” according to the state’s Department of Mineral Resources chief. It’s called the FRAC Act, and this misguided legislation – which would strip individual energy-producing states of their “commendable” ability to tightly regulate fracturing would deliver a major blow to job growth and domestic energy production without adding any additional environmental benefits.

“University of Pittsburgh environmental engineering professor Radisav Vidic said there is no evidence that fracking alone creates any environmental hazards, as long as all other safety measures are followed,” reports West Virginia’s Wheeling Intelligencer. The FRAC Act is simply another ‘Washington solution’ in search of a problem.

But here’s a quick look at the staggering rates of economic growth in North Dakota, where the responsible development of oil-rich Bakken Shale is putting thousands of Americans to work, as the state’s “oil rig count matches record set in 1981.”

The Dickinson Press: Experts discuss North Dakota oil possibilities (10/7/10)

Williston Herald: Bakken basics: Town hall meeting highlights oil industry activity (10/7/10)

KFYR-TV: Western Oil Development (10/7/10)

The biggest problem facing North Dakotans, aside from the threat posed by the FRAC Act, which could shut down this responsible and tightly regulated development, according to the Associated Press? “The money problem is how to spend it,” where there’s “virtual full employment, according to economists.”

Backyard Brawl: WVU, Pitt Profs. Confirm Hydraulic Fracturing’s Environmental Safety Record

AP: “The number of millionaires in ND rose by more than 40 percent in one year alone”, thanks to fracturing

Last week, PA’s DEP secretary, John Hanger, once again confirmed the fact that hydraulic fracturing has never impacted groundwater, a fact that a host of PADEP officials continue to reinforce. And last night, in a KDKA-TV segment, Sec. Hanger once again confirmed that fact that fracturing – a tightly regulated, 60 year-old technology used to stimulate oil and natural gas production – has never contaminated groundwater, which is what top EPA officials told a U.S. Senate panel this year.

And earlier this week, Radisav Vidic – a University of Pittsburgh professor with a Ph.D. in environmental engineering – told the Wheeling News Register that he has “not seen any evidence that fracturing itself poses a danger to the environment. The process has been around since the 1950s.”

 

Not to be outdone, though, West Virginia University’s Donald Lyons, an engineering professor, writes about the economic potentials of responsible Marcellus Shale development, fracturing’s long and clear record of safety, and the devastating impact that the FRAC Act could have on job creation and domestic energy production in a Charleston Gazette op-ed this week entitled “Natural gas means more jobs”:

Underlying West Virginia is the Marcellus Shale, which is another great source of natural gas. Last year, shale-gas drilling in the Marcellus provided 57,000 new jobs — mainly here in West Virginia and Pennsylvania. An economic study estimated that drilling throughout the Marcellus Shale, which extends from Kentucky to upstate New York, could create 280,000 new jobs and add $6 billion in tax revenues over the next decade.

State agencies do a commendable job of overseeing the process of hydraulic fracturing, a technology that has been used for decades to produce oil and natural gas, to assure the process is done safely and without a negative impact on the environment.

Opponents of shale-gas drilling … want regulatory oversight to be shifted to the U.S. Environmental Protection Agency, which is conducting a study of hydraulic fracturing practices at the direction of Congress. But adding one more layer of bureaucratic red tape will stall natural gas production by raising drilling costs by as much as $100,000 per well, without making shale-gas production any safer than it already is. This could force most of the independent companies that account for the bulk of natural gas production to shut down their operations. In that event, gas production would drop 45 percent within five years, according to an industry study, and thousands of jobs would be lost. Shale gas production should be increased, not decreased.

So what does the public think about this historic opportunity? Well, according to a Lycoming College poll released yesterday, folks in the communities where Marcellus production is underway overwhelmingly support this activity and believe strongly – nearly 80 percent – that “the creation of many jobs was very likely.”

But hydraulic fracturing is not just helping to create thousands of good-paying jobs, stable supplies of homegrown energy for consumers, and much-needed economic activity in the Rust Belt exclusively. In North Dakota, through the responsible development the Bakken Shale’s abundant, job-creating oil reserves, small towns are expected to “double in the next 5 years,” according to a WDAY news report this week. This from their dispatch under the headline “Workers needed to fill thousands of jobs in western North Dakota”:

Williston’s Economic Development Executive Director Tom Rolfstad says the surge out west is not an oil boom, but an oil industry, saying it isn’t going away anytime soon. He expects Williston and other western towns in the Bakken Shale to double in the next 5 years. It’ll leave them in need of everything from oil workers, to doctors, bakers, and waitresses.

It’s a problem much of the country would like to have. Tom Rolfstad is pleading for workers.

“We need a lot of help! How are we going to grow this fast?” He says he needs thousands of people. It’s part of the “Invest in the West to Fund the Rest” campaign. Rolfstad and other economic development leaders are trying to get more North Dakota workers out west to fill about 3-thousand jobs.

The Associated Press also reports on the incredible amount of economic opportunity, job creation and prosperity that fracturing is helping to make possible for North Dakotans:

In recent years, oil companies have been extracting oil from the Bakken shale deposit, the largest such formation ever surveyed in the United States by the U.S. Geological Survey.

The number of millionaires in North Dakota rose by more than 40 percent in one year alone, to 388 in 2006.

What They’re Saying: Engineering Experts, Economists Confirm Fracturing’s Long, Clear Record of Environmental Safety

Experts say FRAC Act “will have a far-reaching effect on all Americans,” Will “curtail” job-creating domestic energy production

Keep Reading »

Read All About It: The Facts About Hydraulic Fracturing’s Record of Safety Continue to Mount

The positive and overwhelming economic and energy security benefits enabled by hydraulic fracturing – a tightly regulated 60-year old energy stimulation technology – continue to be realized across the nation. These benefits – affordable supplies of reliable homegrown energy and thousands of good-paying jobs – are a reality in major energy-producing states, particularly North Dakota and Texas.

And while New York was the birthplace of natural gas production, a de facto ban on Marcellus Shale production through the use of 21st century horizontal drilling technology continues to deny landowners their right to responsibly develop privately-owned, clean-burning, job-creating resources.

Facts are stubborn things, as they say. So for your edification, here are a few about fracturing.

In a Fort Worth Business Press column today, Bruce Vincent, chairman of the Independent Petroleum Association of American (IPAA) and president of Swift Energy, underscores the critical role that fracture stimulation has played, and continues to play, in safely producing homegrown, job-creating energy oil and natural gas resources over the past 60 years. Here are key excerpts from Vincent’s column, which speaks directly to the devastating consequences that bills like the FRAC Act would introduce to American consumers:

This process is tightly regulated by energy-producing states, and is subject to a host of federal laws and regulations as well. In fact, federal law mandates that these fluids – which as stated, are made up of more than 99.5 percent water and sand – be disclosed at every single well-site. Many states even provide these lists online.

In commercial use since 1949, hydraulic fracturing has been – and continues to be – the linchpin to American oil and natural gas production. With surgical-like precision, using high-pressure fluids made up of more than 99.5 percent water and sand, with a small percentage of everyday additives used to kill bacteria and reduce wellbore friction, fracturing stimulates oil and gas production thousands of feet below ground, allowing increased amounts of energy to be produced.

But is it safe, and what steps do producers take to ensure groundwater protection? The short answer: yes, and many.

Unfortunately, some members of Congress believe that they know better than Texas, and that Washington bureaucrats ought to regulate fracturing, rather than individual energy-producing states who understand the geology best and have amassed an impressive track record of overseeing this critical technology. These advocates say their legislation is about disclosure of fracturing fluids. At its core, though, these efforts are aimed at stopping fracturing altogether, which would significantly blunt the positive economic growth and job creation in Texas, as well as in other energy-producing states, and ultimately, increase the cost of energy for America.

More than 1,500 miles away from Ft. Worth, in bucolic Syracuse, NY, folks are also talking about fracturing’s long and clear record of environmental safety and effectiveness. In yesterday’s Syracuse Post-Standard, Alfred Station, NY-native Chris Kulander – who holds a Ph.D. in geophysics with a focus on petroleum seismology – write this about fracture stimulation, and the benefits this proven technology stands to help generate through responsibly developing New York’s portion of the Marcellus Shale:

No evidence directly connects injection of fracking fluid into shale with aquifer contamination. In 2004, the U.S. Environmental Protection Agency released a study finding no confirmed instances of drinking water contamination by fracking fluids in the ground. This finding is not surprising, as fracking fluid is pumped through heavy steel pipe surrounded by a concrete liner to formations thousands of feet below aquifers.

Fracking has made production from the Marcellus Shale possible and created thousands of jobs.

An unfortunate push exists in New York to ban all fracking, purportedly until the technology can be “proven” safe, and to require federal oversight of fracking.

While a responsive state regulatory framework and vigorous, impartial enforcement of those regulations are necessary, draconian measures such as rolling moratoriums or federal oversight of fracking are not. New York is well able to regulate fracking while at the same time allowing development of natural gas and enjoying the jobs and revenue it brings.

ICYMI – GasLand debunked (again) in Okla. Paper

With so much talk in Washington these days from politicians about “plans” aimed at redirecting our struggling economy and putting Americans back to work, not as much attention has been paid to the incredible economic force that America’s oil and natural gas producers continue to bring to bear in so many regions across the country.

Unfortunately though, some leaders in Washington are working to advance misguided policies that seek to severely undercut producers’ ability to safely deliver the energy resources needed to fuel our economy. Naturally, the less energy produced, the fewer jobs created – and tougher it is to make good on the promise of America’s homegrown (and growing) energy potential.

Consider the potential consequences of the FRAC Act, which could strip energy-producing states of their ability to determine the regulatory landscape associated with hydraulic fracturing – a 60-year old technology that’s used to enhance energy production in 90 percent of the nation’s oil and natural gas wells.

While some opponents of responsible American energy production contend that Washington ought to step in and brush aside the authority and expertise of the states in this area, Energy In Depth continues to provide the facts, history and data needed to better understand and appreciate the record of achievement to which state officials continue to lay claim after 60 years of successful oversight.

In today’s Bismark Tribune, EID’s Lee Fuller shares some additional insight on this record:

Here are the actual facts: Fracturing has been used safely in the United States for more than 60 years, and has never in that time been directly regulated by the EPA. For decades, that responsibility has remained with states, which continue to compile a remarkable record of oversight and enforcement.

How good? In 60 years, not a single case of groundwater contamination has been credibly tied to hydraulic fracturing. Don’t believe us? Just ask the EPA — it confirmed as much to the U.S. Senate earlier this year.

Rep. Earl Pomeroy said recently that the “regulation of hydraulic fracturing is best left to the states,” and that new efforts to turn that authority over to the federal government “will do nothing to protect drinking water and will only serve to slow down development resulting in the loss of thousands of jobs and more imported oil.”

Sen. Byron Dorgan confirms that “hydraulic fracturing is not a problem,” noting there have been “many studies” that “show that it does not contaminate groundwater,” including one by the EPA in 2004.

Thanks to the Bakken Shale, North Dakota’s unemployment rate is currently at 3.6 percent. Compare that to the national rate of 9.5 percent. And what about the North Dakota budget? Thanks to the Bakken, it currently enjoys a surplus of $500 million.

Here’s what others are saying about oil and natural gas production enabled by tightly-regulated fracture stimulation technology:

ON FRACTURING’S RECORD OF SAFETY, ENVIRONMENTAL BENEFITS

ON JOB CREATION, ECONOMIC GROWTH

 

ON EXANDED SUPPLIES OF AFFORDABLE, RELIABLE ENERGY

ICYMI: Hydraulic Fracturing a Key Cog in Delivering Jobs, Revenue and Clean-Energy Future for America

With so much talk in Washington these days from politicians about “plans” aimed at redirecting our struggling economy and putting Americans back to work, not as much attention has been paid to the incredible economic force that America’s oil and natural gas producers continue to bring to bear in so many regions across the country.

Keep Reading »

Hydraulic Fracturing Key to Job Growth Across the Nation

For 60 years, energy-producing states have used hydraulic fracturing – a tightly regulated energy stimulation technology – to access and increase domestic oil and natural gas production. Without this technology, much of America’s job-creating energy resources would simply be unreachable. And today, thanks to advancements in horizontal drilling techniques coupled with fracture stimulation, enormous amounts of homegrown energy are being leveraged in stable supplies of America-made energy and tens of thousands of good-paying jobs.

North Dakota’s Bakken Shaleformation is a shining example of how fracturing is positively impacting not only the state, but the nation’s energy security altogether. As national unemployment rates continue to hover near double digits, and with millions still without steady work, North Dakota’s economy, and its workforce, have never been stronger — thanks in large part to hydraulic fracturing.

This from Reuters today:

North Dakota and Alaska have added the most jobs, while Nevada, California and Florida have lost the most, in the last five years, according to research released on Monday. … In first place, North Dakota added 21,300 jobs, and Alaska followed by adding 10,100 jobs from 2005 to 2010, it said. North Dakota saw an increase of 3,200 jobs in the last year alone, it said.

Some in Washington, unfortunately, continue to work to increase layers of unnecessary bureaucratic red tape aimed to stripping energy-producing states of their ability to effectively regulate fracturing. You see, fracturing has always been – and continues to be – ably and closely regulated by individual states, who are best equipped to oversee this critical process. Recognizing the devastating economic and national security threats posed by such actions, some members of Congress – including North Dakota Congressman Earl Pomeroy – continue to fight back.

“Shutting Down the Bakken?” is how North Dakota’s KFYR-TV describes these efforts in Washington. This from the new report:

It may not look like much, but hydraulic fracturing is what makes drilling in North Dakota possible. The process, also known as hydro fracking or just fracking, breaks up rocks two miles below the ground, allowing rigs to bring the oil to the surface. “Without fracking, we can`t get the Bakken oil out, period,” says Rep. Earl Pomeroy, D-North Dakota. That’s what has Pomeroy and oil workers in our state so concerned about proposals in Congress to add new regulations for hydraulic fracturing. Pomeroy says cutting down on fracking on land is no way to address concerns raised by the Gulf oil spill. He believes ending what frack crews do would be devastating for North Dakota.

And from Oklahoma to Upstate New York, major newspapers and energy industry experts are also speaking about attempts in Washington to discredit fracturing’s long and clear record of environmental safety and effectiveness.

In a recent editorial, under the headline “Rep. Henry Waxman seems obsessed by fracturing concerns,” The Oklahoman writes this:

Hydraulic fracturing’s effect on water supplies has been examined for years and likely will be until the last syllable of this administration’s executive orders is written. Tomorrow and tomorrow can’t come soon enough for energy executives. No adverse impact from fracturing has been proven. Shaking up rock through fracturing is essential for releasing natural gas from shale formations; natural gas is essential for transitioning power generation away from coal. Gas is also key (along with offshore oil drilling) in reducing dependence on foreign supplies.

And IOGA-NY’s Michelle Blackley took to the pages of the Syracuse Post-Standard to highlight the important role that fracturing plays in job creation and energy security. Under the headline “Hydrofracking has safe record and spurs economy,” Ms. Blackley writes this:

Hydrofracking is an environmentally responsible way to stimulate the flow of energy from new and existing oil and gas wells. It is well-regulated and has been employed over 1 million times without a single incident of drinking water contamination. Hydrofracking’s record of safety and impressive ability to help make the most of our domestic energy resources designate it as one of the most important tools in our nation’s effort to achieve greater energy independence.

Tex. Gov, ND Congressman Underscore How Critical, Safe Hydraulic Fracturing is as Waxman-Casey Duo Work to Stop It

To say that Congressman Earl Pomeroy, a North Dakota Democrat, and Rick Perry, the Lone Star state’s conservative Republican governor, don’t see eye-to-eye on a host of issues would certainly be fair. But when it comes to creating jobs, delivering stable supplies of homegrown energy, the odd-couple, of sorts, couldn’t be more aligned.

You see, hydraulic fracturing – which has been used to stimulate energy production in America for more than six decades – has always been, and continues to be, effectively and tightly regulated by energy-producing states.

But some in Washington (and their allies “in the arts”) — who oppose the responsible development of domestic oil and natural gas — are working to erect unnecessary regulatory barriers. If the EPA were to be given outright authority to oversee this process, and given the directive to issue permits for fracturing, production of American oil and natural gas would be dramatically undercut in the best case scenario, and altogether halted in the worst.

Henry Waxman, the Beverly Hills congressman who chairs the powerful Energy & Commerce Committee, continues to kick around the idea of giving EPA authority to regulate fracturing. At the same time, Sen. Bob Casey (D-Pa.) has made his intentions and beliefs clear that unelected Washington bureaucrats know better than folks in Pennsylvania when it comes to regulating fracturing, which is principally responsible for creating tens of thousands of jobs across the Commonwealth.

But when it comes to protecting their states from an onslaught off Washington attacks that threaten jobs and economic activity, Earl Pomeroy and Rick Perry are not standing by idly.

The Minot (N.D.) Daily News reports this about a recent letter the Pomeroy sent to Speaker Pelosi:

Pomeroy called it “irresponsible” for Congress to enact new [fracturing] regulations before the results of that study are known.

“Imposing new regulations now will do nothing to protect drinking water and will only serve to slow down development resulting in the loss of thousands of jobs and more imported oil. It is critical that any legislation related to the Gulf oil spill focus on responding to that tragedy and not include additional burdens on hydraulic fracturing,” he said.

Pomeroy pointed out that over the past two years, North Dakota has significantly increased its oil production, rising from the ninth largest oil producing state to the fourth. “This increase in production has resulted in a significant state budget surplus and the nation’s lowest unemployment rate,” he said.

Pomeroy said the regulation of hydraulic fracturing is best left to the states

 

 

. “Regulators in each individual state have a better idea of what steps are necessary to protect their residents and environment. Additionally, they are better equipped to implement commonsense regulations that fit their states unique needs than a catchall Environmental Protection Agency regulation,” he said.

And in a speech yesterday, Gov. Perry didn’t mince his words:

Perry dismissed questions about the safety of hydraulic fracturing. …”I am a very strong advocate of hydraulic fracking,” Perry said. “I’ve got great concerns that the federal government is trying to regulate that aspect of our drilling industry. It would basically shut down the oil and gas industry for hydraulic fracking to be outlawed or frankly, allow radical environmental interests to come in and have a say on how it … can be used by the federal government.”

Echoing Pomeroy’s comments, Perry adds this:

“I think the state of Texas is doing an appropriate job and I think we’re doing a pretty good job of making sure that companies that have misused the technique are being punished appropriately,” Perry said.

For its part, Energy In Depth continues to disseminate the facts about hydraulic fracturing’s long and clear record of safety. This from The Hill:

Energy in Depth, an industry-backed group fighting new regulation of fracking, had this to say about the new Waxman letters:

“The basic geological reality of shale gas exploration is the formations we fracture are separated from the formations carrying potable underground water by thousands and thousands of feet — and millions and millions of tons — of solid, impermeable rock. If the chairman is looking for some additional information on that scientific phenomenon, or on the steps that operators take at every wellsite in America to ensure what happens inside the wellbore has no way of communicating with what occurs outside it, that’s a conversation we look forward to being part of,” spokesman Chris Tucker said.

ICYMI – ND governor to EPA: “We can regulate fracturing very well, thank you very much”

“Environmentally sound” natural gas production bringing “a lot of jobs to the area”

Gov. Hoeven tells EPA that N.D. can handle fracturing
By Rebecca Beitsch
Bismarck Tribune
May 16, 2010

Gov. John Hoeven has had a series of meetings with Environmental Protection Agency leaders as the agency moves forward with a process that could end in its regulation of an oil drilling process known as fracturing.

The EPA is now studying the effect the process has on ground and drinking water and could potentially use the authority granted in the Clean Water Act to take over the permitting process from the states.

Fracturing, or “fracking,” involves pumping water and sand at high pressures to two miles beneath the surface using a series of pipes. The microseismic stimulations from the process loosen up oil tucked into crevices of the Bakken formation. But the concern lies in both in the process’ interaction with groundwater and what happens to the wastewater once the process is completed.

The message Hoeven wants to send to the EPA is “we can regulate fracturing very well, thank you very much.”

Lynn Helms, director of the Department of Mineral Resources, said he is opposed to the potential regulations, not because they would drastically change the process, but rather because he believes drilling through fracking would have to be abandoned until the new regulations were in place.

“I don’t expect more stringent rules, but I do expect a two- to three-year stoppage in North Dakota while the rules get put in place, and that’s a lot of unemployed people,” Helms said.

Helms said fracking is environmentally sound because of all the safeguards in place.

* * * * *

Life on a Drilling Rig
By Ryan Coyle
WNEP-TV
May 19, 2010

Natural gas drilling is changing the landscape of the northern tier in many ways.

At 4:30 p.m. most people are wrapping up the work day. Rick Woodbeck of Towanda is just getting started. Woodbeck is a natural gas driller with Chesapeake Energy. A roughneck, as they are called. He drills into the Marcellus shale gas deposits miles below the surface of the earth.

“I was in the Army National Guard and I came back from Iraq. Instead of going to sit behind a desk I decided to try something different and I had a friend who was on a rig. He told me about it and got me an interview. A couple weeks later I started out on a drilling rig,” Woodbeck said.

Woodbeck has been working on gas rigs for nearly three-and-a-half years and when the opportunity came to work close to home with Chesapeake, he couldn’t turn it down.

“I feel pretty good working at home. Still being able to see friends and be with my wife or family. So it’s a pretty good feeling,” the roughneck said.

“The pay is good. It’s better than probably most jobs you’re going to find in the area,” Woodbeck added. That’s one of the reasons why he is happy to see drilling coming to the northern tier.

“I believe it’s a good thing. The economy is not doing well right now. It did bring a lot of jobs to the area. Restaurants are doing better. Just the local economy is overall better,” Woodbeck said.

Not only that, he is seeing more people from the area getting these types of jobs. Six guys on his crew work the rig and four are from Pennsylvania. “There’s more jobs. I see more and more local guys on the rigs,” said Woodbeck.