Posts Tagged ‘Energy In Depth’
EID: “We are hopeful and it is our expectation that this study – if based on objective, scientific analysis – will serve as an opportunity to highlight the host of steps taken at every wellsite that make certain groundwater is properly protected”
WASHINGTON – Today, the Environmental Protection Agency (EPA) announced that it will begin a new, comprehensive study on hydraulic fracturing, the critical and heavily regulated 60-year old technology used to stimulate energy production in 9 out of 10 wells throughout the United States. Following the announcement, Lee Fuller, executive director of Energy In Depth, released this statement:
“We are hopeful and it is our expectation that this study – if based on objective, scientific analysis – will serve as an opportunity to highlight the host of steps taken at every wellsite that make certain groundwater is properly protected. The energy industry, as well as state regulatory agencies, are eager to work with EPA throughout this fact-based examination. Further, efforts underway in Congress to give EPA outright authority to regulate fracturing – which could hamper domestic energy production and job growth – should come to a standstill until this study is completed.
“Adding another study to the impressive list of those that have already been conducted and completed is a welcome exercise. Hydraulic fracturing is one of the U.S. oil and gas industry’s crowning achievements, enabling us to produce energy supplies at enormous depths with surgical precision and unrivaled environmental safety records. And, simply put, new innovations are making these technologies better and better by the day – a fact widely recognized by the agencies that regulate hydraulic fracturing in energy-producing states.
“Fracturing has a long and clear record of safely leveraging otherwise unreachable homegrown, clean-burning, job-creating energy reserves. Today, the responsible development of America’s shale gas resources represents a crucial turning point for our nation’s long-term energy security. Hydraulic fracturing is the tool that can safely make this possible, and can continue to help lead us on a path toward stronger energy independence and economic competitiveness.”
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Last night, the anti-American natural gas film GasLand premiered in Washington, DC. The event was as well-attended as it was light on actual facts regarding hydraulic fracturing, the 60-year old energy production technology that has been safely used in more than 1 millions wells across the United States. Despite claims, this critical technology has never contaminated groundwater – a fact confirmed by Steve Heare, director of EPA’s Drinking Water Protection Division just weeks ago.
The movie – which is supported by a host of mainstream organizations (sarcasm people) such as the Damascus Citizens, Earth Justice, Environmental Working Group, National Resources Defense Council, Oil and Gas Accountability Project – was on the receiving end of a minute-by-minute Energy In Depth fact-check last night via Twitter.
And today, experts and scientists from just about every university in Pittsburgh (except Point Park) and a petroleum engineer with a PhD weigh-in on effective, environmentally sound, well-regulated natural gas production through the use of hydraulic fracturing.
The Pittsburgh Tribune-Review’s Rick Stouffer reports this under the headline “Gas companies eager to tap Marcellus Shale”:
This rush to develop the Marcellus region, which has an abundance of the fossil fuel 6,000 feet below much of the state, could lead to an influx of new companies in Western Pennsylvania to take advantage of low-cost energy and a boom in blue-collar jobs, the experts said.
“This region will become self-sufficient in terms of energy. There’s enough natural gas in the Marcellus to power this state for 180 years,” said Kent Moors, director of Duquesne University’s Energy Policy Research Group.
Carnegie Mellon’s Lester Lave says a “blue-collar boom” in western Pennsylvania is on the way, thanks to fracturing:
“Short term, there will be fair number of jobs developed in this area to drill the wells,” said Lester Lave, a Carnegie Mellon University professor and co-director of the university’s Electricity Industry Center.
Long term, Lave believes the lure of cheap, close-by natural gas could make this region the place to relocate for those needing cheap power to operate.
“You could have a blue-collar boom here. Cheap gas really could stimulate industry, everything from glass making, to fertilizer, to power plants — a lot of industries run on cheap fuel,” Lave said.
A Penn State University study last year projected that Marcellus-related activity by 2020 could translate into $13.5 billion of economic impact and nearly 175,000 related jobs.
Prof. Lave adds that fracturing does not affect groundwater “because it’s performed well below the water table”:
“I don’t think fracking bothers the water table because it’s performed well below the water table,” Lave said. “Companies use a lot of water to frack, but Pennsylvania has been blessed with a lot of water, so I don’t think we will run into a lot of water problems.”
And in a Binghamton, NY Press & Sun Bulletin column today, Scott Cline – a PhD in petroleum engineering – writes this under the headline “The Coming Age of Natural Gas”:
Heretofore unimagined technologies have now thrust themselves upon human history that will permit the safe extraction of this relatively clean domestic energy resource from the tight grip of the earth. The sheer abundance will also provide long-term downward price pressure on energy making the structural shift even more compelling. Miraculously America sits atop much of those resources and the fruits of that extraction will once again help propel America to energy prosperity and security. Dominant global competitive advantage, jobs, tax revenue and prosperity may result for many generations to come.
Dr. Cline adds writes this about unsubstantiated claims regarding the environmental impacts of shale gas development, like the ones featured in GasLand:
Fears of environmental ruin, undrinkable water, pollution and the like are largely unfounded, exaggerated and commingled with uninformed concerns about processes not unique to shale gas development. Horizontal drilling and [fracture] stimulation is safe.
While the public still debates and frets, industry has been busy and is already quickly approaching near 100% reuse and recycling of waste water through high technology filtering and treatment technologies using relatively little energy.
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WASHINGTON – We might not have been entirely sure whether mobile devices were actually permitted in the theater last night, but that didn’t stop Energy In Depth from live-blogging (via Twitter) the Washington, D.C. premiere of GasLand – an anti-energy documentary that’s short on facts, but long on hyperbole, distortion and serially hilarious inaccuracies.
The movie, with a run-time of 107 minutes, elicited nearly 30 separate entries from EID on its Twitter page online (that’s one tweet every 3.8 minutes!). Below is a transcript of the night’s proceedings:
- live blogging from “gasland” showing — the anti-natural gas film. stay tune for more! about 16 hours ago via mobile web
- josh fox told us no copies for sale – guess he doesnt want an EID fact ck about 16 hours ago via mobile web
- gasland claims frac fluids unknown – ck pa’s website, and EID for these fluids, made of 99 about 16 hours ago via mobile web
- percent water and sand. fact about 16 hours ago via mobile web
- josh should know theres good info on gas drilling at EID, if hes truly interested about 16 hours ago via mobile web
- gasland claim: 05 energy bill exempted HF. fact: HF has never been reg by the feds. ever. about 15 hours ago via mobile web
- no mention of recycled water technologies in gasland — why are we not surprised? about 15 hours ago via mobile web
- gasland interviews thoe colborn: call the credibility police about 15 hours ago via mobile web
- again, frac fluids not “secret” – visit EID to find em all about 15 hours ago via mobile web
- colborn: gas producers dont know whats in frac fluids. what are MSDS sheets again? about 15 hours ago via mobile web
- gasland demonizes US energy industry … very sad, esp since 9 million americans work in the industry about 15 hours ago via mobile web
- his barnett “expert”? an envir defense fund academic. just the facts, huh? about 15 hours ago via mobile web
- enter mayor tillman … we had a feeling about 15 hours ago via mobile web
- tillman’s own “study” cited in gasland. remember, the one thats been flatly dismissed? about 15 hours ago via mobile web
- attack on LA’s oil, gas industry. wonder what the 50k folks there that work in industry think? about 15 hours ago via mobile web
- gasland cites fish killed in dunkard creek. too bad EPA’s dismissed that one, too. about 15 hours ago via mobile web
- gasland says PADEP had massive staff cutbacks. fact: rendell just added 68 new staff to oversee gas production about 15 hours ago via mobile web
- gasland claim: frac act simply removes HF “exemption.” fact: HF has never been regulated by EPA about 14 hours ago via mobile web
- DeGette the darling of gasland. about 14 hours ago via mobile web
- degette mischaracterizes own bill. says frac just about “disclosure.” failed to mention epa would have to issue permits about 14 hours ago via mobile web
- audience howls at petroleum distillates. wonder if anyone here is eating gummy bears? about 14 hours ago via mobile web
- @LoveCanal2020 05 bipartisan energy bill clarified congress’ original intent of SDWA. fact. about 14 hours ago via mobile web
- also, dont forget fmr epa chief browner’s letter in 95 saying HF never reg by fed govt. ck EID for memo about 14 hours ago via mobile web
- josh fox says nat gas industry operating without regulations. news to us. about 14 hours ago via
- woman asks: is robert kennedy jr doing anything to ban HF, since he has a record of going after EPA? interesting. about 14 hours ago via mobile web
- ask if prices will go up if frac act is passed? fox says yes. he’s right for once tonight about 14 hours ago via mobile web
- fox says “everywhere he went he saw water contamination” — where exactly did he go again? about 14 hours ago via mobile web
- hanna from philly bashing corbet for supporting gas production. does hanna know shale gas created 48k jobs last yr in PA about 14 hours ago via mobile web
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We’ll give you a couple clues: Most recently, they were crowned Big East tournament champions in men’s basketball. Its notable alumni include Don Knotts of Three’s Company and the Andy Griffith Show, and Billy Mays – who, may he rest in peace, would quite literally sell you the shirt off his back. Give up? It’s West Virginia University.
Shale gas development, enabled by new, cutting-edge horizontal drilling techniques coupled with the 60-year old energy production technology called hydraulic fracturing, is helping to unlock America’s estimated 100 years supply of clean-burning natural gas. This fracturing process requires relatively large amounts of water, however. And just as technologies in the telecommunications, healthcare and automotive industries continue to advance, getting better and smarter, so too are technologies required for producing homegrown, job-creating energy reserves. These advancements – which continue to progress almost daily – help safeguard air, water and overall environmental quality, and bring down operating costs, too.
Paul Ziemkiewicz and Jen Fulton, environmental scientists at West Virginia University’s Water Research Institute are “trying to find a better, more environmentally sound way to drill for natural gas in the Marcellus Shale formation,” with assistance from the U.S. Department of Energy. West Virginia Public Broadcasting’s Emily Corio reports this today under the headline “Researchers test way to reuse Marcellus drilling water”:
“Marcellus Shale gas development in West Virginia is going to explode over the next couple of years that is the rate of gas development, the size of the reserve; it’s just going to be a very big new industry for the state,” said Ziemkiewicz, director of the Water Research Institute. “Dealing with the water issue is something we need to do up front rather than wait till we have to play catch up and we’ve really got some problems.”
Companies can now drill in Marcellus shale because of a relatively new technique called hydraulic fracturing where water is forced down into a gas well; the shale is fractured from the water pressure and sand is used to prop open the cracks so the natural gas can escape.
Ziemkiewicz says the filter system they’re testing would not clean the water so that it could be returned to waterways but he says the water would be clean enough for drillers to reuse it.
Jen Fulton, program coordinator with the Water Research Institute, says companies are interested in the research because they’re spending a lot of money trucking the water to underground injection site or special treatment plants.
“We’ve gotten a lot of enthusiasm from the industry because they want to be able to reuse the water onsite. They, at this point, need to collect fresh water and bring it to the next site they go to so if they could just use the water they already have, it would really help,” Fulton said.
While these technological advancements are encouraging, many operators – especially in the Marcellus Shale – are already recycling 100 percent of the water used in the hydraulic fracturing process.
The Pittsburgh Tribune-Review reported this back in October under the headline “Range Resources recycles all waste water from Washington drilling”:
Range Resources Corp. announced today that it is now recycling all of the waste water produced by its natural gas drilling operations. … “Range’s recycling program is helping to eliminate wastewater, lower drilling costs, reduce consumptive water needs by 25 percent, and lessen local truck traffic,” said Jeff Ventura, Range’s president and chief operating officer, in a statement. … Recycling won’t be the only long-term water treatment option in reducing waste water from drilling, but it will play a significant role, Ventura added.
State regulators are well-aware of these recycling efforts, as well. In fact, in New York State’s draft regulatory blueprint for shale gas production, this is laid out on page 495 of the document:
It is beneficial to the operators to implement water conservation and recycling practices because of the potential difficulties obtaining the large volumes of water needed for hydraulic fracturing. Most or all operators will recycle or reuse flowback water to reduce the need for fresh water.
The Pennsylvania’s Department of Environmental Protection’s Allen Eichler said this about water use and treatment, as it relates to fracturing, in February:
Now most of the fluids in the process are either lost in the formation or recycled.
And in a February release, the Marcellus Shale Coalition stated this about recycled water efforts:
The industry currently treats or recycles all of its flowback water. Recycling accounts for approximately 60 percent of the water used to complete Marcellus Shale wells, with greater percentages predicted for the future. There are more than a dozen approved water treatment facilities available to treat flowback water, with plans for additional capacity in the future.
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EID: Boren/Murphy letter fills “factual and historical holes that were unfortunately left agape subsequent to the release of the Waxman memorandum.”
WASHINGTON – Less than a month after Chairman Henry Waxman (D-Calif.) sent letters to nine separate service companies seeking additional information on the processes and technologies involved in producing America’s enormous reserves of clean-burning shale gas, U.S. Reps. Dan Boren (D-Okla.) and Tim Murphy (R-Pa.) submitted a letter of their own this past week, reminding the chairman that shale gas is a “proven and powerful engine of economic growth – and one this Congress idles at the peril of those it represents.”
After reviewing the letter, Lee Fuller, executive director of Energy In Depth, released the following statement:
“With more attention being paid on Capitol Hill to the critical role that shale gas can play in securing our nation’s economic and environmental future, it’s natural that additional questions will be raised, and additional information will need to be provided so that lawmakers have access to all the facts, and a full appreciation of the context within which they reside. This letter from Congressmen Boren and Murphy addresses both of those needs, all while filling-in several factual and historical holes that were unfortunately left agape subsequent to the release of the Waxman memorandum.”
The following excerpts were taken directly from the Boren/Murphy letter, which can be downloaded in full here:
On Jobs:
“Consider that in just the past few years, more than 100,000 high-wage jobs have been created in Oklahoma and Pennsylvania alone, all of them tied to the responsible development of American natural gas, and every bit of that made possible thanks to the safe and steady deployment of fracturing technology.”
“At a time of unprecedented economic uncertainty, and in a year in which four million Americans lost their jobs, shale gas exploration represents a proven and powerful engine of economic growth – and one this Congress idles at the peril of those it represents.”
On Shortcomings of the Waxman Memo:
“While a number of the elements contained in your memorandum appear to be sufficiently-researched and adequately sourced, we were nonetheless disappointed to find in the eleven-page document only a single reference to the landmark 2004 study on hydraulic fracturing done by EPA, a reference that does not even acknowledge the core findings and conclusions of the actual report.”
On Relationship between Committee Investigation and EPA’s Pending Study:
“While the agency has yet to formally release details indicating the scope and methodology of that research, it seems likely that much of the information you intend to gather pursuant to your investigation will also be sought, compiled and analyzed by EPA. It’s our hope that you work does not in any way interfere with that process, and our expectation that your course of study meets the same rigorous standards of science, evaluation and peer-review as historically observed by the agency.”
On Waxman Assertion that Fracturing Solutions are Unknown:
“[C]ertainly you must know that federal law mandates that Material Safety Data Sheets (MSDS) be kept on-hand at every wellsite in America when chemicals are present, and further, that those sheets include an accounting of the identities of those chemicals with identified risks used in the fracturing process. Indeed, the vast majority of these information sheets can be found readily and easily on the Internet. As you indicate, a number of states today post this information in full view of the public online.”
On the Critical Role that Well Integrity Plays in Safeguarding Drinking Water:
“Unfortunately, those who support the FRAC Act appear to believe the mere existence of small amounts of chemical additives in the fracturing solution represents a circumstance sufficient for public drinking water supplies to become contaminated.
“The reality, however, is that these materials are well known to those who regulate the process, and are managed in a way that eliminates virtually any risk of those components coming into contact with shallow reservoirs bearing potable water. Wells drilled today incorporate thousands of feet (and many layers) of steel casing, and thousands of pounds of cement – every bit of that installed using a time-tested engineering process and precise instrumentation to ensure what’s happening inside the wellbore remains in complete isolation from what naturally exists outside of it.”
Click here to view the letter online.
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If you’re one of the few who happen to oppose the responsible development of shale gas general, and the key technology needed to produce it — hydraulic fracturing — in particular, chances are you’ve spun yourself around one or both of the following talking points: 1) That the solutions used in the fracturing process are “secret,” and 2) notwithstanding that apparent “secrecy,” you happen to know for a fact that they’re dangerous. And further: that their mere existence equals instant water contamination.
Be honest: Do you fall into one of these categories? If so, please, read on. Turns out a recent memo to Congressman Henry Waxman – chairman of the powerful House Energy & Commerce Committee – from the co-chairs of the bipartisan House Natural Gas Caucus gives an unvarnished overview of fracturing’s long and clear record of safety and transparency. In the memo authored by Congressmen Dan Boren (Okla.) and Tim Murphy (Pa.), the duo writes this at it relates to fracturing fluids:
“[C]ertainly you must know that federal law mandates that Material Safety Data Sheets (MSDS) be kept on-hand at every wellsite in America when chemicals are present, and further, that those sheets include an accounting of the identities of those chemicals with identified risks used in the fracturing process. Indeed, the vast majority of these information sheets can be found readily and easily on the Internet. As you indicate, a number of states today post this information in full view of the public online.”
Shale gas development, enabled by properly-regulated hydraulic fracturing, continues to be a potent job-creation engine, even during this generational economic downturn. To that, the congressmen write:
“Consider that in just the past few years, more than 100,000 high-wage jobs have been created in Oklahoma and Pennsylvania alone, all of them tied to the responsible development of American natural gas, and every bit of that made possible thanks to the safe and steady deployment of fracturing technology.”
“At a time of unprecedented economic uncertainty, and in a year in which four million Americans lost their jobs, shale gas exploration represents a proven and powerful engine of economic growth – and one this Congress idles at the peril of those it represents.”
As for the FRAC Act – that would for the first time in U.S. history give the federal government carte blanch to regulated hydraulic fracturing – the Natural Gas Caucus co-chairmen lay out these facts:
“Unfortunately, those who support the FRAC Act appear to believe the mere existence of small amounts of chemical additives in the fracturing solution represents a circumstance sufficient for public drinking water supplies to become contaminated.
“The reality, however, is that these materials are well known to those who regulate the process, and are managed in a way that eliminates virtually any risk of those components coming into contact with shallow reservoirs bearing potable water. Wells drilled today incorporate thousands of feet (and many layers) of steel casing, and thousands of pounds of cement – every bit of that installed using a time-tested engineering process and precise instrumentation to ensure what’s happening inside the wellbore remains in complete isolation from what naturally exists outside of it.”
So what are other independent professionals, regulators and major newspapers saying about hydraulic fracturing? In a Buffalo News column today entitled “We must take full advantage of Marcellus Shale,” petroleum geologist David Copley writes this:
“Notwithstanding exaggerated fears of damage to ground water systems, the ramp-up in shale-gas production has been the best economic and environmental news in years. Thanks to the use of new drilling techniques combined with a decades-old process known as hydraulic fracturing, energy companies are now able to access deposits of shale gas that were considered out of reach a few years ago. … New York State is also beefing up its regulation of hydraulic fracturing to ensure that the risk to ground water supplies is extremely remote. In fact, there have not been any documented cases of ground water contamination from hydraulic fracturing, according to Steve Heare, director of the U. S. Environmental Protection Agency’s Drinking Water Protection Division.
In yesterday’s Gillette (WY) News Record, Tom Doll, supervisor of the Wyoming Oil and Gas Conservation Commission, says “Federal regulation is unnecessary because Wyoming already closely regulates it.” This from the article:
“We feel that we should administer our rules and regulate this and we don’t need the help of the federal government in this regard,” Doll said. “We’re doing a good job.” Federal regulations on top of state regulations would cause a lot more time and money for drilling companies that is unnecessary. Strengthening Wyoming’s rule might help keep that from happening.
And today’s Houston Chronicle, under the headline “The natural gas story,” the paper editorializes that fracturing can help “create jobs, lessen dependence on foreign energy, cut our defense costs, change our balance-of-payments picture for the better and make our air cleaner.”
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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.”
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Shale gas, hydraulic fracturing, jobs, revenues, energy security. There’s a lot of chatter these days about these important issues — especially just over the past few days.
While some maintain that hydraulic fracturing is a new technology and is not effectively regulated (or regulated at all), such claims are unsupported by the facts. Energy-producing states closely and tightly regulate this technology, which has been in use for more than 60 years. In fact, 9 out of 10 wells produced nationwide use this technology. And it’s never – not once – contaminated groundwater.
But what exactly is hydraulic fracturing and why is to so important to America’s long-term energy and economic security? Great question.
Are you a “visual” learner, or just interested in seeing exactly how the fracturing process actually works? Well, you’re in luck. Chesapeake Energy has produce an informative web video about this critical process. And the American Petroleum Institute (API) also has an excellent web video explaining the fracturing process, and the steps taken to ensure minimal environmental and land disturbance occurs. Both videos, and other helpful resources, are available on Energy In Depth’s multimedia page.
But despite this technology’s long and clear record of effectiveness and environmental safety, some in Washington are working to impede the production of homegrown, job-creating energy.
Fortunately, many leaders in Washington appreciate how vital fracturing is to the nation, how it’s well regulated by the states, and how it’s helping to create jobs and economic activity throughout the country. And they’re fighting hard to see that Washington does not strip states of their ability to manage and regulate this technology, knowing that jobs, economic growth and energy security are at risk.
In a recent Shreveport Times op-ed (which was cross-posted on EID’s blog) entitled “Misguided policies threaten job creation,” Louisiana Congressman Steve Scalise – a member of the House Energy and Commerce – writes this:
“Thanks to fracturing, which has been safely used for 60 years, Louisiana’s energy industry created almost 33,000 jobs and generated $3.2 billion into our state’s economy.
“Some in Washington are even working to strip energy-producing states of their ability to regulate fracturing. Turning this authority over to the Environmental Protection Agency (EPA) would threaten energy production altogether and could severely hurt job creation and economic activity at a time when we absolutely need it.
“Fracturing is not only a safe way of increasing our nation’s domestic energy supply, but it is a proven way to reduce our dependence on Middle Eastern oil, create good American jobs and keep energy prices stable for struggling families, senior citizens and small businesses.”
Congressman Scalise has a strong congressional delegation partner in Congressman John Fleming, who’s be a fierce supporter of shale gas development enabled by hydraulic fracturing. The folks at The Hayride, a Louisiana policy and politics blog, noticed this strong partnership, too.
Under the headline “Scalise, Fleming, La. House To Waxman, Markey: Go Away And Leave Us Alone,” The Hayride reports:
While the U.S. House Committee on Energy and Commerce awaits responses to letters it sent to natural gas producers as a precursor to hearings later this month on whether federal regulation is warranted on hydraulic fracturing, Louisiana’s congressional delegation and state legislators are taking a very vigorous and aggressive stance in fighting Washington’s attempts to interfere with the promise of the mammoth Haynesville Shale natural gas play and the coming energy boom it can mean for the state.
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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.
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Experts Fact Check Recent Round of Scurrilous Claims Targeting Fracturing
EID’s Lee Fuller: “Plain Dealer readers should also be aware that earlier this week, a top EPA drinking-water official stated the same thing — suggesting further that states, and not the federal government, are best positioned to regulate this critical technology in a way that balances the imperative of responsible energy exploration with the safeguarding of our environment. … The fluids used in the process are made of 99.5 percent water and sand — with the slight remainder comprised of household materials you’re just as likely to find in the kitchen cupboard and beneath the kitchen sink.” (Cleveland Plain Dealer, 2/20/10)
EID’s Jeff Eshelman: “Pennsylvania saw an increase of nearly 50,000 jobs last year alone thanks to safe, responsible, well-regulated natural gas production in the Marcellus Shale. Unfortunately, when it comes to hydraulic fracturing – the 60-year old energy production technology used in nine out of 10 wells in America – the congressman’s claims are simply unsupported by the facts. Fracturing has never been regulated by the federal government. … Instead, ground water protection has been effectively regulated by the state government. The bipartisan 2005 energy bill – which was supported by then-Sen. Barack Obama – simply clarified Congress’ intent of the Safe Drinking Water Act. So how could something earn an exemption, or a “loophole,” from a law that it was never regulated by?” (The Daily Local, 2/27/10)
LOGA’s Don Briggs: “For decades this process has been effectively regulated by the states. In 2009, the Groundwater Protection Council released a study on the regulation of oil and gas field activities saying, “The regulation of oil and gas field activities, including hydraulic fracturing, is best accomplished at the state level where regional and local conditions are best understood. …” If hydraulic fracturing were to be regulated by the EPA, President Obama could easily shut down the development of the Haynesville Shale, resulting in the loss of thousands of jobs and billions of dollars in investment.” (The Daily Advertiser, 2/21/10)
Okla. Independent Petroleum Assoc.’s Mike Terry: “The major components of hydraulic fracturing fluid are well-known, with water and sand accounting for up to 99 percent of the solution. The remaining additives are the same compounds found in soaps, detergents, cosmetics, medications and chemicals commonly found in households. … Hydraulic fracturing has been used commercially since 1949, and there have been no known cases of drinking water contamination. … Increased regulations will lead to a decrease in competition.” (The Oklahoman, 2/23/10)
Chesapeake’s Aubrey McClendon: “McClendon defended the process, saying that … Chesapeake Energy has employed hydraulic fracturing more than 25,000 times since the company started in 1989, including 1,000 wells drilled inside Fort Worth’s city limits, with no ill effects on groundwater.” (Harvard University Gazette, 2/25/10)
Institute for Energy Research: “Hydraulic fracturing has been in use for more than 60 years and has been deployed more than a million times without contaminating drinking water. This is possible for a few reasons. Energy-producing states heavily regulate the practice, employing teams of qualified professionals that monitor, inspect, and enforce state law to ensure the public’s safety. In addition, the fracturing of these wells occurs 6,000 to 9,000 feet below our feet and thousands of layers of impermeable rock.” (Boston Globe, 2/19/10)
Lenape Resources’ John Holko: “According to Penn State University, more than 48,000 high-wage jobs were created in Pennsylvania in 2009 alone as a direct result of Marcellus exploration. Total economic output tied to this work topped $3.8 billion. And more than $400 million was sent to state and local governments in the form of taxes and revenues — again, just in a single year.” (Times Union, 2/11/10)
Newspapers Speak Out: Waxman’s Latest “Inquiry” on Hydraulic Fracturing Could be a “Witch Hunt”
The Oklahoman: “Yet they seem to have bought into the fear-mongering extant over fracturing. The technique involves injecting water, sand and chemicals into shale formations. This cracks open the shale and facilitates natural gas production. … This could be a responsible, objective examination. Or it could be a witch hunt. The Environmental Protection Agency, which said six years ago that hydraulic fracturing doesn’t threaten the water supply, wants to spend more than $4 million to study fracturing. … If America is to move toward greater energy independence, natural gas is a key component. And hydraulic fracturing is a key method for making that happen.” (Editorial, 2/23/10)
Washington Examiner’s Mark Tapscott: “Already the initial drilling of Marcellus Shale in Pennsylvania is causing an economic boom in small Pennsylvania towns that have been in dire economic straits for decades. Public support for expanding Marcellus Shale exploration and production is growing there, as well as in New York. But that’s exactly why environmentalists and their liberal Democrat allies in Congress, the media, the non-profit advocacy communities, and the universities are targeting hydraulic fracturing for elimination, seeking to turn it into the next hook for nationwide environmental fear-mongering. They claim – with virtually no credible evidence to back it up – that hydraulic fracturing represents a dire threat to the drinking water millions of Americans in places like New York City and Philadelphia must depend upon every day.” (Editorial, 2/20/10)
The Washington Observer-Reporter: “Natural gas drilling in the Marcellus Shale could provide an economic shot in the arm for this region and Pennsylvania as a whole. … Natural gas has potential as an energy source and a jobs-provider, no doubt about it.” (Editorial, 3/2/10)
Washington Post: “The resurgence of gas comes through the discovery of massive deposits in Appalachian shale formations and elsewhere — a reserve that offers the prospect of stable domestic supplies and relatively low prices.” (Editorial, 2/28/10)
Academics Confirm Critical Role that Hydraulic Fracturing Will Play in Long-Term U.S. Energy Security
Univ. of Mich.-Flint Prof. Mark Perry: “Thanks to a breakthrough in drilling technology, involving the use of three-dimensional seismic imaging and hydraulic fracturing of shale rock, huge amounts of natural gas are being produced in New York, Pennsylvania, Texas, Louisiana and other states. Instead of declining, domestic natural gas production is booming to record-high levels. … But these exciting energy developments may not last if natural gas companies are burdened by excessive regulation and heavy taxes. Environmental groups are lobbying Congress to shift regulation of hydraulic fracturing from state governments to the Environmental Protection Agency, claiming that the process poses a risk to groundwater supplies. But the fact is, hydraulic fracturing is done about 1,000 feet below underground aquifers and separated from the water supply by thick rock.” (Investor’s Business Daily, 2/19/10)
Members of Congress, State Legislators Continue to Weigh-In: Fracutring is Safe, Effectively Regulated by States
Congressman John Fleming (LA):
- “He said the extra federal regulation would increase costs, reduce production and eliminate jobs.”Production would essentially grind to a halt, and billions of dollars in federal and state tax revenue would be at risk.” (Alexandria Town Talk, 3/1/10)
- “This action would have a far-reaching negative impact on energy producers and consumers alike, particularly in formations such as the Haynesville Shale in my district which depend on hydraulic fracturing to produce. In 2008, production in the Haynesville Shale pumped $4.5 billion into Louisiana’s economy and created over 32,000 jobs. Adding additional layers of regulations to hydraulic fracturing would not only result in a sharp increase in costs to small and independent producers, it would dramatically decrease output and job creation.” (Bossier Press-Tribune, 2/26/10)
- “If Congress is serious about tackling this country’s energy crisis and ending our dependence on foreign oil then it is crucial they recognize what resources, such as the Haynesville Shale, will play in our long-term economic and national security. More burdensome federal regulation will only serve to hinder production and feed this country’s addiction to foreign energy.” (Bossier Press-Tribune, 2/26/10)
Okla. state Rep. Mike Thompson: “Hydraulic fracturing is a safe and successful drilling method in which water, sand and chemicals are injected at high speeds into a well to fracture rock and free up natural gas. This is a method that has increasingly been used in many shale formations across the country and has led to the discovery of increased levels of domestic natural gas. … The Interstate Oil and Gas Compact Commission conducted a survey that found there were no known cases of groundwater contamination associated with hydraulic fracturing.” (The Oklahoman, 2/27/10)
Rust Belt No More: Shale Gas Exploration Powers Economic Growth in OH, PA
Manufacturing Jobs Coming to Ohio:
- “Pipe Dreams Come True Thanks to Marcellus Shale … After years of incentives, tireless work, political pressure, and labor concessions, what is bringing heavy steel manufacturing back to the Valley is a layer of rock deep beneath our feet. It’s called the Marcellus Shale, named after the town of Marcellus, New York, where there is an exposed outcropping. …This is creating the demand for high-quality steel pipe used to punch through the shale and into the gas deposits that is enticing V&M and TMK IPSCO to build or expand facilities here.” (WYTV-OH, 2/25/10)
- “An oil-and-gas pipe maker says it plans to open a new facility in Brookfield. TMK IPSCO said Tuesday it has signed a lease on a building where it plans to produce up to 100,000 tons of threaded pipe annually. The company said it expects to begin operations in the township in the coming months; up to 120 people could eventually be employed there. President and CEO Vicki Avril says the new facility is in direct response to the growing demand for infrastructure at Marcellus Shale well sites that are located under parts of Ohio and Pennsylvania.” (Tribune Chronicle, 2/23/10)
Tens of Thousands of Jobs Being Created in Pennsylvania:
- “New ventures in natural gas may take Tioga County from ‘rags to riches’ … “I think the fastest growing areas of the county are going to be Mansfield, Wellsboro and Lawrenceville,” he said, adding that he thinks the valley between Mansfield and Covington will “fill in” in the next few years, mainly because of the discovery of gas within the Marcellus Shale. … With that, jobs will come, and plenty of them, he said. Some of those jobs will be filled by local people, while others will move here with their families. … Before the natural gas industry discovered the gas trapped in the shale beneath Tioga County, it was considered to be a “slowly dying” county, Trask said.” (Williamsport Sun-Gazette, 2/18/10)
- “With the expansion, TMK IPSCO plans to take advantage of increased demand for pipe to be used for drilling in the Marcellus Shale formation. … “This is a move we’re taking to be more responsive to our clients who are flocking to Marcellus Shale,” Galitzine said. He said IPSCO has seen increased interest in possible Marcellus-related pipeline orders since 2008, and the company has refitted its lines in Ambridge and Koppel to manufacture 5.5-inch-wide pipe, an ideal width for use in the shale fields. … But the Marcellus field has changed the prospects, Galitzine said, both for IPSCO and its employees. The Brookfield plant is expected to immediately employ 50 people, which will increase to 120 employees.” (Beaver Co. Times, 2/25/10)
- “It’s one business. It’s 50 jobs. And they are almost all going to local people. Those are the pertinent details regarding approval last week by Montoursville Borough Council allowing Sooner Pipe to operate a pipe storage facility on the industrial section of the Williamsport-Lycoming County Airport. … And the best part is that this is probably just the tip of the proverbial gas industry iceberg. As the industry settles into the region, there will be needs for pipe manufacturing, cutting and storage, equipment providers, freight storage and other offshoot businesses and industries. They all will be employing people, often with unique, high-paying skills. Those people will be spending money on food, clothing and shelter. That is the root definition of economic development, private enterprise style. It’s the best kind of economic development.” (Williamsport Sun-Gazette, Editorial, 2/25/10)
- “Fracturing is an old technology already regulated by states. … A July 2009 study by Pennsylvania State University estimates developing the Marcellus shale basin added more than 48,000 jobs in the state last year” (Wall Street Journal, 2/27/10)
State Regulators Speak Out: List of Chemicals “Available on DEP’s Website”
PA DEP Water Management Chief: “Our job is to produce gas and protect the future,” said John Hines, deputy secretary for water management from DEP. He explained the Marcellus shale gas reserve could potentially hold “enough gas to fully supply the nation for 10 or more years.” Hines added producing that gas could create new wealth as well as new jobs, “but not at the sacrifice of our water resources.” … During his testimony, Hines attempted to dispel rumors that certain “secret” chemicals were used in the fracing process. He said that DEP distributed a list to the public of all the chemicals that were used. Hines said the Material Safety Data Sheets were also distributed to local emergency responders. The list is available on DEP’s Web site.” (Clearfield Progress, 2/19/10)
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