EID

All Wet: Pitt. Professor’s Claims on Shale Gas, Water Use Don’t Quite Reflect Reality

Pitt. Professor’s Claims on Shale Gas, Water Use Don’t Quite Reflect Reality

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

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

Return to Sender

McMahon Letter to Gov. Paterson Decrying Hydraulic Fracturing Short on Facts, Long on Hysteria

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

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

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

WHAT THEY’RE SAYING: America’s Shale Gas, with Help from Hydraulic Fracturing, Turning “Rags into Riches”

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)

Energy In Depth: Today’s News

Fleming: Hydraulic regulations could hurt Haynesville Shale. Alexandria (LA) Town Talk. “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. Rep. Henry Waxman, D-Calif., chairman of the Energy and Commerce Committee, recently wrote to eight oil and gas companies, questioning them about the chemicals they use for hydraulic fracturing, a process that uses pressure from water-based fluids to extract natural gas from shale. … 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.” NOTE: The Bossier (LA) Press-Tribune also reports.

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

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

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

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

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

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

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

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

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

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

Marcellus Development, Hydraulic Fracturing Helping to Deliver Positive Economic News, Jobs to Appalachia

The production of clean-burning, American shale gas, enabled by the 60-year old critical energy technology called hydraulic fracturing, is not only helping to drive down energy prices for families and small businesses that are struggling through this economic downturn, but this safe and effectively-regulated homegrown energy production continues to represent a shining light of economic activity in an otherwise downtrodden economy.

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

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

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

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

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

In the Cleveland Plain Dealer, Fuller writes:

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

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

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

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

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

Closing strongly, Styles adds:

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

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

ICYMI: Fmr. chief counsel for PA DEP, current Chief VP: Marcellus shale “a valuable resource for the commonwealth”

Click HERE to view this video on Energy In Depth’s YouTube page.

• “Pennsylvania has had gas wells for 150 years. And in the last probably decade, many, many vertical wells have been drilled into the tight sandstone formations, and they have been fracked. So it’s not like this was just something invented for the Marcellus shale.

   

• “There is nobody in the industry … who objects to disclosing the content of the frack fluid. In fact, you can go on DEP’s website and you can see what’s in the frack fluid.

• “You can’t just say benzene’s a carcinogen at any exposure, because if it is, please stop putting gasoline in your car. Because you’re probably exposed to 10,000 parts per billion every time you fill up your gas tank.

•  “We want to develop the gas, there’s no doubt about it. And we think it’s a valuable resource for the commonwealth. But, we’re committed to doing it the right way. Being involved in our community. Having local employment, either directly or through contractors. So, that’s what we’re all about.” 

Dimock, PA resident Ted Jules:

• “If they do [the gas drilling] right, I’m for it.”

READ MORE

• Release: EPA Water Chief: States Doing “A Good Job Already” in Regulation of Key Energy Technology
• Fox News: PA Marcellus Shale Development, Job Creation Featured on Fox
• WHAT THEY’RE SAYING: Safe, Well-Regulated Development of Clean-Burning Shale Gas “The Single Biggest Thing That’s Ever Happened to this Area”
• Fact Sheet: HF Opponents Say the Darndest Things
• Penn State: An Emerging Giant: Prospects and Economic Impacts of Developing the Marcellus Shale
• GWPC Study: State Oil and Natural Gas Regulations Designed to Protect Water Resources
• Graphic: What’s In Frac Fluids?

EMPTY NEST

Local PA Audubon Society Chief Grouses over Responsible Shale Gas Exploration – His Cardinal Sin? No Facts

Here at Energy In Depth, we’ve seen our fair share of outrageous claims directed at the responsible development of clean-burning natural gas in the Marcellus shale. But rarely have we come across a single newspaper column that anthologizes them as exhaustively as the one we recently saw in the Wilkes-Barre (Pa.) Times Leader — penned by Greater Wyoming Valley Audubon Society chief Robert Wasilewski.

Take a look for yourself — if you’re looking for a thorough list of half-truths, distortions and outright misrepresentations related to the work being done right now in Pennsylvania to convert the state’s abundant energy resources into thousands of jobs and billions in local revenue, this is as complete as it gets.

Thankfully — and at the same time, regrettably — we’ve been down this road before. What follows is a quick side-by-side comparing Mr. Wasilewski’s claims with the actual facts as they exist:

Marcellus Shale-Related Jobs Headed to Ohio by the Hundreds

Good news for southeastern Ohio’s struggling economy: 350 good-paying jobs – directly tied to the safe, responsible development of the Marcellus shale – are coming to the region.

The Youngstown Vindicator went with the headline “The area could use some good news, and it got it” in an editorial today hailing the expansion of V&M Star Steel, which will initially produce 350,000 tons of steel tubing a year in support of Marcellus shale gas development in Pennsylvania, West Virginia and Ohio.

This from the editorial:

“The area could use some good news, and it got it …The facility will provide new, well paying jobs to 350 people. They will be producing oil-country tubular goods, a product that has a bright future as long as there is a need to extract energy from the ground. And as much as everyone talks about new, green sources of power, we’ll be running on fossil fuels for some time to come.”

According the Youngstown-Warren Regional Chamber of Commerce, this expansion is a “defining moment” and “a pivotal step in the rebirth of the Mahoning Valley’s economy.”

V&M Star President Roger Lindgren told WYTV News that “We are ideally situated to serve the Marcellus Shale,” in a segment entitled “Steel Is Back.”

Lindgren adds this: “We are going to build a state of the art mill here in Youngstown and Girard to supply the growing market for the smaller OD [outside diameter] pipe used for the shale drilling. It will be high-grade pipe for the very challenging requirements of shale drilling.”

U.S. Congressman Tim Ryan (D-OH), a member of the powerful Energy and Water Development appropriations panel, called the shale-gas related economic development “a game-changer.”

Here are several local news articles about this announcement:

V&M Star to Officially Expand, Create 350 Jobs
WYTV, 2/16/10

“For a French company to recognize this as a place they want to make a $650 million investment, is a game-changer for us,” said Congressman Tim Ryan (D-OH).

The mill should be fully running by the end of 2012. About 350 jobs will be created once production begins.

“It’s jobs, first and foremost,” said Ryan. “There are people, families who are going to go work, get off the unemployment line, make a good living. These wages, benefits, vacations. These are well-paying jobs.”

Youngstown area to get 350 more jobs when new steel tube plant opens
Cleveland Plain Dealer, 2/15/10

In addition to the manufacturing jobs, which are expected to pay more than $50,000 per year, many indirect jobs will be created in other areas like construction, shipping and the service industry.

“We’re talking about thousands of jobs that are going to be created here,” said U.S. Rep. Tim Ryan, a Democrat whose district includes the region. “It’s going to be transformational for the Mahoning Valley.”

Williams, Melfi: Success shows value of regional cooperation
Youngstown Vindicator, 2/16/10

The expansion will create 400 construction jobs. When the plant opens, there will be 230 employees working directly for V&M and 120 specialized service providers who’ll work at the plant.

“I hope that we all recognize that when we work together and do things together and check our egos at the door in the best interests of our community, great things happen,” said U.S. Rep. Tim Ryan of Niles, D-17th, whose office was involved heavily in the negotiations.

V&M announces $650M Youngstown expansion
Salem News, 2/16/10

U.S. Rep. Timothy J. Ryan, D-Niles, said the announcement marks another turning point away from the Mahoning Valley’s image as a Rust Belt area. “Today’s unprecedented announcement by Vallourec is a watershed event for the Mahoning Valley,” he said in a statement.

“This $650 million investment will result in 350 new jobs, and sends a clear message that we have a world-class work force and a globally competitive business climate.

“Simply put, this is the game-changer for the Mahoning Valley.”

GUEST BLOG: An Open Letter to the Citizens of New York State

By Jerry R. Simmons

To my friends in New York: With all of the recent discussion about development of the Marcellus Shale gas, and the idea that this will lead to dire environmental consequences in your state, realize the true discussion should be about energy consumption versus production in the Northeast. And the question you should be asking is, where is the origin of the energy you are consuming … your state … another state … a foreign country? Where do you want to spend your energy dollars – boosting New York State’s economy or that of Texas?

We will get to the environment question in a minute. But first let’s take a look at sources of electricity generation in New York State. My assumption is all of you use electricity in some form: at home, work, school etc.; for lighting, heat, traffic signals, phones, TV, cooking, computers, life support; and on and on and on — a form of energy which is familiar to all of us.

Take a look at the electric energy generated in your state and where it comes from.

The following information is from the Energy Information Administration (EIA) Annual Electric Power Generation by Primary Energy Source Report for 2007, the most recent year reported. We also assume that most of this generated electricity is utilized in-state, though some obviously moves across state lines in both directions. The EIA information goes back years, and the 2007 numbers are representative of the trend of the past decade. The percent numbers total more than 100%, but .5%, as pumped storage, is a negative number that makes the total = 100%.

I can hear you asking: what’s the point? Well, let’s see. The number one source for electric power generation in New York State is natural gas … natural gas that has been produced outside the state of New York. According to the New York State Department of Environmental Conservation (DEC), geologists estimate that the entire Marcellus Shale formation contains between 168 trillion to 516 trillion cubic feet of natural gas throughout its entire extent. Other experts have estimated as high as 1,300 trillion cubic feet (tcf). Although it’s not yet known how much gas will be commercially recoverable from the Marcellus in New York, the state ranks about third in the amount of acreage underlain by the formation. To put this into context, New York State uses about 1.1 trillion cubic feet of natural gas a year.

Yet there is currently a raging debate in New York about the safety of developing a significant source of natural gas within your state. 

You, no doubt, have heard that there are hundreds, if not thousands, of drinking water contamination cases across the country. A claim of contamination is not proof of contamination.

In every instance, state and federal regulatory agencies investigate the claim and utilize the power of state and federal laws to ensure any problem has been addressed and is not a risk to human health and the environment. Numerous studies have been conducted. To date, the processes of horizontal drilling and hydraulic fracturing have not been proved to have resulted in contaminating an underground source of drinking water.

Make no mistake, oil and gas drilling and production are industrial operations and accidents can and do occur. The question is, just like with any other industrial operation, are sufficient safeguards already in place to protect health and the environment?

New Yorkers: ask those of us living in the states where thousands of gas wells have been drilled, if we are being harmed by the development of the resource. Ask us if our water is safe to drink. Ask us if our children live normal healthy lives or are somehow adversely affected by natural gas. Ask us if our rivers, streams, forests, farms, ranches or urban areas have been decimated by the drilling and production of natural gas. Ask how many of us have heard of, or been adversely affected by, the drilling, fracturing and completion of a natural gas well. Ask us “regular Americans” — not representatives of some group that is anti-development, or paid consultants involved in law suits.

Let’s be honest. Looking at the numbers from EIA, are you guys building any new nuclear plants? Didn’t think so. How about new dams for hydro? Nope? Well, shucks. Want more coal and oil-fired plants? You’ve got lots of coal close by. 

Ahh …  renewables!

You could burn a bunch more trees (I mean a big bunch). Put up more wind and solar, right? Let’s be generous and say the entire 2% of renewable electricity generated currently in New York is all wind and solar. Can you double the number of windmills and solar panels? Heck let’s quadruple the number of windmills and solar panels in place today. How long will that take? You are now at 8% of your electric generation needs, and I hope the sun shines and the wind blows non-stop — otherwise you will need a back up for that 8% (most likely using fossil fuels) or a mega storage system that does not yet exist.

As you can see, in electricity generation alone, New Yorkers manage to use more than a little fossil fuel energy. Think of your total energy usage when you include transportation fuels, industrial processes, etc., that are not electric. By the way, if everyone in New York had electric cars, about 50% of the electricity used to recharge their batteries would come from fossil fuels.

In the end, as its citizens debate development of New York shale gas, it might be prudent and practical to cut through the environmental scare rhetoric and renewable energy dreams not yet achievable, to consider the following: Do you want to have responsible development of an available and valuable New York natural resource; collect the associated taxes; employ New York people and keep the lights on if there’s a disruption in supply?

Or, if you prefer, your state can continue to use gas from elsewhere and let others benefit from the production revenue, employment and taxes.  We don’t really care what you decide. We have been supplying your energy needs for decades and those northeast dollars sure do bolster our economies in the “Oil Patch.”

Mr. Simmons is the executive director of the Tulsa, Oklahoma-based National Association of Royalty Owners, Inc. (NARO). Visit www.naro-us.org to learn more.

HF 101: As Cornell Begins Study of Shale Gas Exploration, Energy In Depth Offers Itself Up as Resource for Ad Hoc Panel

Group highlights hydraulic fracturing’s long, clear safety record; enormous economic benefits associated with responsible development in NY

WASHINGTON – As reported by the Cornell Daily Sun last week, Cornell University is creating an “ad hoc advisory committee” to examine the science and mechanics of hydraulic fracturing, the key technology used to safely unlock clean-burning natural gas reserves from the Marcellus shale.

In an effort to ensure the committee has ample access to all the relevant facts associated with shale gas exploration in New York, Energy In Depth wrote to the panel last week to offer its expertise and to hopefully begin a “substantive dialogue between our organization and the members of your panel.”

The text of the letter to Cornell University Hydrofracking Committee is available on-line HERE and copied below:

February 12, 2010

Dr. Susan Riha
Director, New York State Water Resources Institute
Charles L. Pack Research Professor of Forest Soils
Dept. of Earth and Atmospheric Sciences
Cornell University
1110 Bradfield
Ithaca, NY 14850 

Jean-Yves Parlange, Ph.D.
Professor of Agricultural and Biological Engineering
Dept. of Biological and Environmental Engineering
Cornell University
228 Riley Robb
Ithaca, NY 14850 

Dear Professors:

Following the University’s recent announcement of the formation of an ad hoc advisory committee charged with examining the science, practice and potential benefits associated with natural gas development in New York’s portion of the Marcellus Shale, I have the privilege of writing to you today to first thank you for your willingness to engage this critical work, and second, to offer up myself and my organization as a potential resource for your panel as it examines both the technical and practical implications of shale gas exploration in New York.

I should mention at the outset that my professional background is one of an engineer, and the focus of the organization of which I serve as executive director, Energy In Depth, is one of education and public engagement. Formed last year as a subset of a broader educational campaign of America’s small and independent oil and natural gas producers, Energy In Depth, based in Washington, D.C., has worked hard over the past several months to explain the mechanics involved in deploying the latest innovations in technology in service of responsible energy production, and on occasion, to correct the myriad misconceptions that exist surrounding the record of safety, performance and environmental sensitivity to which these technologies lay claim.

My understanding is that your committee is specifically interested in assessing whether to recommend to your president that a portion of the nearly 420,000 acres owned by Cornell University be considered for potential lease; naturally, a thorough examination of the potential costs and benefits associated with such an action would seem an appropriate and requisite course. Toward that end, I’d like to take this opportunity to share just a few facts that I hope will serve to inform your investigation moving forward. Again, it’s my hope that this correspondence marks the beginning of a substantive dialogue between our organization and the members of your panel, especially on issues related to the safety and environmental performance of hydraulic fracturing.

In an attempt to be brief, I would identify just a few of top-of-mind considerations that may be of interest to your committee:

• Natural gas exploration is not new to New York, and neither is hydraulic fracturing. Contrary to how this issue has been characterized in the press, natural gas exploration has taken place in the state of New York, safely and efficiently, for longer than 150 years. In fact, the world’s first-ever commercial natural gas well was drilled in Fredonia, New York in 1829. And although hydraulic fracturing hasn’t been around for quite that long, it has been in commercial use nationwide now for more than 60 years – and has safely been deployed in New York for decades.

• In 60 years of use, hydraulic fracturing has not been shown to pose discernable risk to drinking water. Hydraulic fracturing has been used for generations to stimulate the flow of energy resources far beneath our feet, and in that time, has not once been credibly tied to the contamination of drinking water – a fact that has been corroborated by EPA (numerous times), the Ground Water Protection Council, and various other state and federal agencies. The continued and aggressive regulation of the process by state regulators is in part responsible for this impressive record of safety; but so too is the fact that the formations we fracture reside thousands of feet below formations that support potable water, separated by millions of tons of impermeable rock.

• The solutions used in the fracturing process are composed almost entirely of water and sand. As experts in the fields of subsurface hydrology (Dr. Parlange) and eco-hydrology (Dr. Riha), it’s certainly our anticipation that issues related to water – both subsurface and in its disposition – will likely be central to your panel’s examination. As your study proceeds, it’s my hope you take note of the fact that greater than 99.5 percent of the fluid used in the fracturing process is comprised of water and sand, with the remaining additives generally categorized as benign gels and friction reducers commonly found in everyday household items. Recognizing that your panel may have specific questions related to these additives, I will once again extend an offer to conference with you on this subject, or otherwise respond in writing to any questions that you may have.

• The economic potential that shale gas exploration presents to New York is extraordinary. Cornell University is an institution whose scholarship informs and enlightens the world, but it’s also an institution with an obligation to the communities of which it is a member. We don’t believe it hyperbolic to suggest that the responsible development of New York’s shale gas, with the help of a well-regulated fracture stimulation process, can be an economic game-changer for the people who live and work in the Southern Tier, with the potential to create hundreds of thousands of high-wage jobs throughout the state, and direct billions of dollars a year to Albany to help your state provide essential services to those in need. On this subject, I would commend to you attention a 2009 study compiled at the request of lawmakers in Broome Co., N. Y. A copy of that text is available on our website, http://energyindepth.org.

With that, I will once again extend my thanks, and those of my organization, to you and your fellow committee members for taking the time to conduct an objective and science-based assessment of the potential for shale gas exploration on lands owned by the University. It’s my hope that you will consider this correspondence an invitation, and in fact a request, to continue this dialogue as your examination proceeds. And it’s my further hope that you will not hesitate to contact me directly should you encounter any questions, concerns or suggestions. Thank you in advance for your consideration.

Sincerely,

Lee Fuller
Executive Director
Energy In Depth

Vice President
Independent Petroleum Association of America

CC: Provost Kent Fuchs, President David Skorton