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)
Last week, the not-for-profit organization known as the State Review of Oil and Natural Gas Environmental Regulations (STRONGER) issued its latest report examining the strength of state-based hydraulic fracturing regulatory programs – this time, singling out the state of Louisiana and its regulators for executing a “well-managed” program across the state.
STRONGER is a non-profit, multi-stakeholder organization tasked by the Interstate Oil Compact Commission (IOCC) and the U.S. Environmental Protection Agency to review the effectiveness of various states’ oil and gas regulatory structures.
Among the things highlighted in the latest STRONGER report:
“Hydraulic fracturing has been conducted in Louisiana since the 1960s. The State of Louisiana has not identified any instances where hydraulic fracturing has harmed groundwater.” (page 8)
“[The Haynesville Shale] contains an estimated 251 TCF of recoverable natural gas.” (page 8)
“The review team has concluded that the Louisiana program is, over all, well-managed, professional and meeting its program objectives.” (page 4)
STRONGER also commends Louisiana for its dedication to clean water, public outreach and safety:
- “In addition to advising operators to use sources of water other than the Carrizo-Wilcox aquifer, in a separate letter to operators, the Commissioner [of Conservation, Department of Natural Resources] instituted [an additional] requirement…As a result of those actions, water demand for the year from October 1, 2009 to September 30, 2010 was met primarily (78 percent) by surface water. Through these actions, the Office of Conservation is confident that long-term adverse impacts to the Carrizo-Wilcox aquifer have been prevented.” (page 16)
- “The use of alternate sources of water and recycling of E&P waste fluids for hydraulic fracturing in the Haynesville Shale are encouraged.” (page 17)
- “The Office of Conservation has a good public outreach program in place that includes participation in industry meetings, workshops for the public, and the DNR web site. The Office of Conservation has been involved in a number of local meetings and forums on well construction, water use, and hydraulic fracturing operations.” (page 6)
- “The Office of Conservation indicated that staffing levels are sufficient to address hydraulic fracturing and other oil and gas activities. Field staff levels were increased prior to the development of the Haynesville Shale. There is no expectation of staff cuts due to budget issues.” (page 14)
- “Standards are in place for the placement and pressure testing of casing and cement. The minimum surface casing depth is based on the total depth of the well. District managers can require more than minimum casing based on the regional or local geology and other factors. A minimum of 1,800 feet of surface casing is required for Haynesville Shale wells.” (page 10)
- “Operators are required to provide at least 12-hours notice to the district office prior to hydraulic fracturing operations. This provides the opportunity for the state to witness the activity.” (page 10)
This is just the latest in a growing string of similar STRONGER reports – each commending various states for their well-managed regulation of hydraulic fracturing, including in Oklahoma, Pennsylvania and Ohio.
Of course, the interesting little wrinkle here is that the STRONGER panel includes representatives not only from those involved in industry, but from federal agencies such as the Dept. of Energy and EPA and environmental groups such as the Oil and Gas Accountability Project – not typically regarded as a friend of responsible shale development.
In fact, not only did OGAP counsel Bruce Baizel participate in the review process, he actually served as one of the three official “team members” who drew up the recommendations. Imagine that?!
From what we understand, the folks over at STRONGER will be releasing additional reports in the coming months. And when they do, you can find them here on EID.
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:
- Bakken used as model for other oil plays. Associated Press. “Know-how gained from North Dakota’s once-perplexing Bakken shale formation is being used to exploit other onerous oil plays across the globe. Pushed by high crude prices, companies in just four years have nearly perfected technology to tap oil trapped in a thin layer of dense rock nearly two miles beneath the surface in western North Dakota. Unlocking the Bakken using advanced horizontal drilling and hydraulic fracturing techniques has propelled the state from the nation’s ninth-largest oil producer in 2006 to its fourth-largest today. A record number of rigs are piercing the state’s oil patch.
- New firm opens, plans to employ 140 people. Williamsport Sun-Gazette. “Meadville-based Universal Well Services Inc., a natural gas and oil well services company, has opened a new facility on Arch Street and has plans to hire 140 people within the next 12 months. Already on staff here are 70 employees, according to Bob Garland, senior technical adviser at Universal’s corporate office. The company brought some employees from its existing facilities, but most of the individuals hired here are locals, he said. “We are attempting to hire locals as much as we can because that is important,” Garland said.
- Marcellus Shale Brings Promise Of New Jobs To Region. WPXI-TV. “Experts are predicting the Marcellus Shale industry will be around in western Pennsylvania for at least the next 50 years and thousands of people will be needed to work here. On Friday, educators met at Waynesburg University to figure out how to give students the education they need to get those jobs. “We are talking to the superintendents of schools and counselors about an energy education looks like,” said Barbara Kirby of Waynesburg University. … The Marcellus Shale is booming. … A recent Penn State University study shows the impact of Marcellus drilling jobs in Pennsylvania. The numbers have increased every year and will reach an estimated 107,000 jobs in 2010.
- DeSoto library pays off bond two years early. Shreveport Times. “The Library Board of Control recently authorized the payoff of a 2002 property tax that funded construction of new library branch buildings in Pelican and Stonewall. Paying the slightly more than $1 million left in the bond issue saved taxpayers $410,000 in interest. The bonds officially will be paid Nov. 15. “We have saved a lot of money,” board President Katherine Freeman said. Construction is under way on a new branch location in Logansport. But it’s being paid with cash on hand. The library board, like other governing entities in the parish, has the extra money because of the development connected to the Haynesville Shale.
Last week was quite a week for shale gas production enabled by hydraulic fracturing, a 60-year old tightly regulated technology used to stimulate oil and gas production in 9 out of 10 wells nationwide.
There was plenty of positive and welcomed economic news. An updated Penn State University economic impact study released last Tuesday finds that the development of the Marcellus Shale’s clean-burning natural gas reserves, through the use of fracturing, has the potential to add an additional 212,000 new jobs to the state’s employment rolls over the next decade. Energy In Depth’s executive director, Lee Fuller, said this about the study:
“The release of this report from Penn State today serves to reinforce that status in a modern context, and also make clear to those who oppose this critical work on political or ideological grounds that, at least on practical economic grounds, that opposition could lead to fewer jobs, greater dependence, and a lot less revenue for the state.”
But Appalachia isn’t the only region of the country that is booming thanks to fracturing. The Shreveport Times reports this under the headline “Haynesville Shale spares local economy”:
The huge amounts of money injected into the local economy via the Haynesville Shale activity has spared northwest Louisiana from the worst effects of the national slowdown, according to an economist whose second-year study of the industry was released Tuesday.
In the report, Dr. Loren C. Scott pointed out that the seven firms participating in his study “pumped an amazing $7 billion into the state’s economy” in just one year. That sizeable injection of new money into the state can be equated to tossing a boulder into a pond.
Scott’s study serves as tangible evidence to the “tremendous economic benefits of natural gas extraction operations in northwest Louisiana,” said Don Briggs, Louisiana Oil and Gas Association president.
And in a report yesterday from KENS 5-TV, “Texas oil and gas boom paying dividends for San Antonio,” thanks to 21st century fracture stimulation technologies. This from the region’s CBS affiliate:
A huge, underground oil and gas field is promising big results, and that’s having an economic impact on San Antonio.
“I wish I had a crystal ball.” No one knows, no one knows. They just pick up the phone and start ordering equipment,” said Chase Hooker, Director of new business development for APPCO; a company that makes equipment called Frac-Sanders.
These huge, $250,000 machines deliver a special sand mixture to a well. The “frac” sand helps force fossil fuels out of the ground. Despite making a dozen of these 25-ton machines a month, APPCO is back-ordered through 2011.
Unfortunately, some in Washington – despite this overwhelmingly positive economic news in an otherwise struggling national economy – believe that the energy-producing states should be stripped of their proven ability to effectively regulate fracturing.
Last week, Colorado Rep. Dianna DeGette, an advocate for burdensome, duplicative and potentially devastating federal regulations on American energy production, offered and withdrew an amendment at a House Energy and Commerce Committee mark-up that would have stripped energy-producing states of their ability to effectively regulate fracturing. Like her bill, the FRAC Act, Ms. DeGette’s amendment would give the federal government – for the first time ever – authority to oversee this critical and heavily regulated practice.
Thankfully the amendment was withdrawn amidst pressure from Energy In Depth, the U.S. Chamber of Commerce, the National Association of Manufacturers and scores of Democrats and Republicans on the panel.
EID’s Fuller wrote this in a letter to members of the committee leading up to the hearing:
The fact is, hydraulic fracturing has been ably and aggressively regulated by the states almost since the moment of its invention, with regulators compiling an impressive record of enforcement and oversight during that time. It’s a record that continues to be acknowledged by regulators and lawmakers on the federal level as well, most recently by EPA’s director of drinking water protection, who told a reporter in February that there existed “no evidence” that “states aren’t doing a good job already” when it comes to regulating fracturing activities.
But it’s not just America’s energy producers and job-creators speaking out about fracturing’s long and clear record of effectiveness and safety. Major newspapers are speaking out, too. Today’s Investor’s Businesses Daily writes this in an editorial:
Environmentalists, aided and abetted by Democratic Sen. Bob Casey of Pennsylvania, now want to stop us from unlocking our vast reserves of natural gas locked up in shale using a technique called hydraulic fracturing or “fracking.” The technique involves injecting liquids under pressure, 95% of which is water, into the shale rock to release the trapped gas.
Casey has introduced legislation to remove fracking’s long-standing exemption in the Safe Drinking Water Act that allows energy companies to use the process. He claims the process endangers America’s drinking water, though fracking is done thousands of feet below the groundwater table and there’s never been a case of groundwater contamination caused by fracking.
“This 60-year-old technique has been responsible for 7 billion barrels of oil and 600 trillion cubic feet of natural gas,” according to Sen. James Inhofe, ranking member of the Environment and Public Works Committee. “In hydraulic fracturing’s 60-year-history, there has not been a single documented case of contamination.”
Hydraulic Fracturing: Read (And Watch) All About It
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.
Louisiana Congressman: Misguided policies threaten job creation
By Congressman Steve Scalise (LA-1)
At a time when people are asking “where are the jobs,” thousands of high-paying jobs are waiting to be created in America’s energy industry. Jobs can be created today by further developing America’s natural resources such as oil and natural gas and expanding on new technologies such as hydraulic fracturing or “fracing,” a critical tool in tapping the huge potential of our country’s natural gas supply.
Instead of a comprehensive national energy policy that would create jobs, this administration and the liberals running Congress are trying to ram through a “cap and trade” national energy tax that would ship millions of jobs overseas and raise energy prices on American families. And these same people continue to threaten our energy security through attempts to put an end to critical technologies like fracturing.
In Louisiana, the energy industry is among our top employers; and we are proud to be one of the largest producers of domestic energy in the United States. Louisiana has the second-largest refining capacity in the U.S., with 2,300 active oil and natural gas platforms in the Gulf of Mexico and 19 crude oil refineries. More than 80 percent of the nation’s offshore oil and natural gas is produced off our coast.
And, more recently, our state has seen huge successes in the Haynesville Shale in northwest Louisiana. By using environmentally sound energy production technologies such as fracturing and horizontal drilling, we are safely unlocking huge amounts of clean-burning, job-creating natural gas. In fact, thanks to fracturing, which has been safely used for 60 years, Louisiana’s energy industry created almost 33,000 jobs and generated $3.2 billion into our state’s economy.
Unfortunately, this economic activity and job creation is threatened by misguided Washington policies such as “cap and trade” and billions in new, burdensome taxes on homegrown energy exploration.
Some in Washington are even working to strip energy-producing states of their ability to regulate fracturing. Turning this authority over to the Environmental Protection Agency (EPA) would threaten energy production altogether and could severely hurt job creation and economic activity at a time when we absolutely need it.
Louisiana’s Legislature formally urged Congress to ensure that fracturing remains tightly regulated by the states, as it has for 60 years. A number of other energy-producing states that share Louisiana’s common-sense approach to allow states to effectively regulate fracturing have passed similar resolutions.
Turning the regulation of fracturing over to the EPA is not only unnecessary but would represent nothing more than a one-size-fits-all power grab by those who oppose responsible, 21st-century American energy production. Louisiana, along with virtually every other energy-producing state, already has comprehensive laws in place to protect drinking water sources and ensure that shale gas production does not compromise the environment.
Because of these effective state protections — and the commitment from industry — fracturing has been used in more than 1 million wells throughout the U.S. without a single case of groundwater contamination. Not one in 60 years. The EPA confirmed this fact at a recent Senate hearing. And just weeks ago, a top EPA drinking-water official said, “State regulators are doing a good job overseeing hydrofracking, and there’s no evidence the process causes water contamination.”
Fracturing is not only a safe way of increasing our nation’s domestic energy supply, but it is a proven way to reduce our dependence on Middle Eastern oil, create good American jobs and keep energy prices stable for struggling families, senior citizens and small businesses.
The American people deserve common-sense solutions that will help redirect our weakened economy. We should promote ideas that create jobs and harness — not stifle — the American ingenuity that has helped us become the greatest nation in the world.
U.S. Rep. Steve Scalise represents Louisiana’s 1st Congressional District and serves on the House Energy and Commerce Committee and Energy and Environment subcommittee. His Web site is www.scalise.house.gov.
NOTE: Congressman Scalise’s post also appeared in today’s Shreveport (LA) Times. Click HERE to view the column on-line.
Name That Congressman! (Who Supports a Commonsense Approach to Regulating Hydraulic Fracturing)
First elected to the U.S. House in 2008, this congressman’s district encompasses the Haynesville shale in northwest Louisiana. He served in the Navy as a medical doctor before starting a private practice. He currently serves on the House Natural Resources Committee, and is a member of the Energy and Mineral Resources panel.
Give up?
It’s Congressman John Fleming, of Louisiana’s fighting 4th district.
As we’ve blogged about here before, although Mr. Fleming is still relatively new to Congress, he understands the economic benefits, as well as anyone, that are associated with safe, responsible, well-regulated, 21st century shale gas production.
In a recent speech on the floor of the U.S. House, the congressman discussed hydraulic fracturing – the 60-year old technology that is used to stimulate energy production in 9 out of 10 wells produced in America. Most importantly, though, the Mr. Fleming weighed in on the potentially devastating consequences of a one-size-fits-all, top-down approach to regulating fracturing, especially as it relates job creation and economic activity.
This from the speech:
This action would have a far-reaching negative impact on energy producers and consumers alike, particularly in formations such as the Haynesville Shale in my district which depend on hydraulic fracturing to produce.
In 2008, production in the Haynesville Shale pumped $4.5 billion into Louisiana’s economy and created over 32,000 jobs.
Adding additional layers of regulations to hydraulic fracturing would not only result in a sharp increase in costs to small and independent producers, it would dramatically decrease output and job creation.
Production would essentially grind to a halt and billions of dollars in federal and state tax revenue would be at risk.
If Congress is serious about tackling this country’s energy crisis and ending our dependence on foreign oil then it is crucial they recognize what resources, such as the Haynesville Shale, will play in our long-term economic and national security.
Several local newspapers highlighted the congressman’s commitment to commonsense fracturing regulations. The Alexandria Town Talk reports this under the headline “Fleming: Hydraulic regulations could hurt Haynesville Shale”:
U.S. Rep. John Fleming is blasting Democrats on a House committee for launching an investigation into the safety of hydraulic fracturing. “The same team that brought America the job-killing, tax-hiking cap-and-trade legislation appear to be at it again,” Fleming, R-Minden, said in a speech last week on the House floor.
He said the extra federal regulation would increase costs, reduce production and eliminate jobs. “Production would essentially grind to a halt, and billions of dollars in federal and state tax revenue would be at risk,” he said. Don Briggs, president of the Louisiana Oil and Gas Association, called the investigation into fracturing a “witch hunt.”
And under the headline “Fleming to Congress: More regulation will hinder production,” the Bossier Press-Tribune reports this:
Representative John Fleming, M.D. addressed the House of Representatives Wednesday, expressing his disapproval of a recent Committee investigation by Reps. Henry Waxman (CA) and Ed Markey (MA) aimed towards giving the EPA unprecedented power to enact oppressive regulations on hydraulic fracturing, the technology that allows producers to reach natural gas.
Other legislators, especially those from energy-producing states that understand how effectively fracturing is currently regulated, are speaking out, too. In a recent column, Oklahoma state representative Mike Thompson – who chairs the Energy & Utility Regulation Committee – writes this in The Oklahoman:
Hydraulic fracturing is a safe and successful drilling method in which water, sand and chemicals are injected at high speeds into a well to fracture rock and free up natural gas.
Approximately 35,000 wells are hydraulically fractured annually in the United States and close to 1 million domestic wells have been hydraulically fractured since the inception of the technique, with no known harm to groundwater.
Regulation of hydraulic fracturing under the Safe Drinking Water Act would impose significant administrative costs on Oklahoma and substantially increase the cost of drilling oil and gas wells with no resulting environmental benefits. More importantly, the regulation of hydraulic fracturing would increase energy costs to the consumer.
Despite the recent growth seen in hydraulic fracturing, there have been no instances of drinking water contamination….
States have a long and clear record of safely and effectively regulating fracturing. If you agree that producing more homegrown energy must be a key element in addressing our long-term energy solutions, and that we must continue to foster job creation and economic activity through producing American energy reserves, then send Congress the message the hydraulic fracturing is effectively regulated by the states.
Natural Gas Production Brings Jobs, Growth and Revenue to Northwest Louisiana
Sometimes numbers help put things in perspective. A new report prepared for the Louisiana Natural Resources Department, “Economic Impact of the Haynesville Shale on the Louisiana Economy in 2008,” found that energy development in Northwest Louisiana is having providing some pretty serious economic growth.
The Shreveport Times reports the study found that as a result of those activities:
- About $2.4 billion in business sales have been created in the state;
- Nearly $3.9 billion in household earnings were created, including almost $3.2 billion in lease and royalty payments to private landowners. The figure represents about 70 percent of the total expenditures associated with extraction activity in northwest Louisiana natural gas formation and is mostly in the form of mineral lease and royalty payments.
- About 32,742 jobs were created, equal to slightly more than the total employment of all of Louisiana’s banks and credit unions.
- State and local sales tax revenue increased by at least $153.3 million, with Red River Parish reporting tax collections up 300 percent in the first quarter of this year.
Natural Resources Secretary Scott Angelle said: the “study indicates that the Haynesville Shale may be every bit the game changer for our state that we all hoped it might be…I think we are entering the golden age of natural gas. And Louisiana has the opportunity to take the lead in supplying it and showing the rest of the nation how to make the best use of it.”
The article goes on to say that the Haynesville Shale play has “somewhat insulated the local economy from the national doldrums.”
Other states-New York, Pennsylvania and West Virginia, to name a few-have vast natural gas resources, just like Louisiana. In the coming years, they have the chance to experience the same benefits of the folks in the Bayou State.
