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Shale “Exempt” From Federal Laws? Um, Not Even Close.
For years, opponents of hydraulic fracturing have perpetuated the claim that shale development is somehow “exempt” from federal laws. Far from being “exempt,” shale producers have been held to even higher standards, complying with overlapping federal and state regulations, and held accountable by state regulators who are far better equipped to oversee the process.

Katie-Brown-EIDKatie
Researcher

For years, opponents of hydraulic fracturing have perpetuated the claim that shale development is somehow “exempt” from federal laws. One of the most persistent exponents of this talking point is Amy Mall of the Natural Resources Defense Council (NRDC), who constantly pushes the fallacious assertion that oil and gas corporations “enjoy exemptions from critical protective environmental provisions in the Safe Drinking Water Act and Clean Water Act.” Dr. George Peridas of the NRDC, in opening remarks at last year’s SXSW Eco Conference, echoed Mall’s sentiments, characterizing shale development as “an unregulated free for all,” claiming that the “industry is exempt from RCRA, the Clean Air Act, the Clean Water Act, the Safe Drinking Water Act.”

First of all, the idea that any industry would be allowed to run amok as an “unregulated free for all” is just absurd.  Second, while states have (and have always had) primary regulatory authority over hydraulic fracturing, oil and gas producers also have to abide by a whole host of federal laws – in fact, every step of the way they are regulated at the federal, state, and local levels, often at multiple levels simultaneously.

A report released by the Government Accountability Office (GAO) in September 2012 should finally set the record straight on opponents’ claims. In it, the independent agency makes clear that oil and gas developers are required to comply with no fewer than eight federal regulations. From that report:

As with conventional oil and gas development, requirements from eight federal environmental and public health laws apply to unconventional oil and gas development. For example, the Clean Water Act (CWA) regulates discharges of pollutants into surface waters.  Among other things, CWA requires oil and gas well site operators to obtain permits for discharges of produced water – which includes fluids used for hydraulic fracturing, as well as water the occurs naturally in oil- or gas-bearing formations – to surface waters.  In addition, the Resource Conservation and Recovery Act (RCRA) governs the management and disposal of hazardous wastes, among other things.

The report goes on to cite the specific federal environmental and public health laws that govern the development of oil and gas, which include: the Safe Drinking Water Act (SDWA) (for disposal wells); Clean Water Act (CWA); Clean Air Act (CAA); Resources Conservation and Recovery Act (RCRA); Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA); Emergency Planning and Community Right-to-Know Act (EPCRA); Toxic Substances Control Act (TSCA); and Federal Insecticide, Fungicide and Rodenticide Act (FIFRA) – all laws that opponents continually claim are, somehow, “exemptions.”

So, not only do oil and gas producers have to comply with overarching federal laws, they must do so on top of a slew of stringent state regulations.  To cite one example, let’s look at Ohio: after going through the process required to obtain the initial permit from the Ohio Department of Natural Resources (ODNR), companies must then acquire a number of additional federal and state permits before they can even think about drilling the well.  Our EID colleague in Ohio, Shawn Bennett, has the full story, but just to summarize a few points here:

First, operators must be approved by the Army Corps of Engineers and the U.S. EPA for Clean Water Act 401 and 404 permits for wetlands and water quality.  If they receive the green light on these permits, then ODNR begins a technical review of the drilling permit to ensure the cementing plan is sufficient.  If this plan is approved, water testing is completed for all homes within 1,500-feet of the wellhead, with results distributed to the landowners, ODNR and the company. Next, the company must work with the U.S. EPA and the Ohio EPA to file a Spill, Prevention, Control and Countermeasure (SPCC) plan.  Then, companies must also file a permit to install and operate (PTIO) with the Ohio EPA for their production facilities that will be onsite.  The PTIO regulates emissions from a production site under the Clean Air Act.  Only after companies jump through all these hoops successfully can they begin to think about actually drilling a well.

Of course, since opponents’ claims about the Clean Air Act and the Clean Water Act have turned out to be a pretty hard sell, they continue to recite their talking points on the Safe Drinking Water Act ad nauseum.  So let’s clear the air one more time on that: hydraulic fracturing was not “exempted” from the Safe Drinking Water Act.  The SDWA became the law of the land in 1974, long after the first use of hydraulic fracturing, which occurred in the 1940s. Since then, the Act has been amended and updated more than a half-dozen times – and still has very little to say about hydraulic fracturing. How can a process be “exempt” from something that never covered — and was not designed to cover — it in the first place? Your guess is as good as ours.

This fracturing process is, however, aggressively regulated by the states, and this regulatory framework has resulted in a successful record of enforcement for over sixty years.  Even officials from the Obama administration have admitted that state regulators are far more capable in this task than the federal government.  As Carol Browner, President Clinton’s EPA Administrator said in 1995, “EPA does not regulate – and does not believe it is legally required to regulate – the hydraulic fracturing of methane gas production wells…”  President Obama’s former EPA chief Lisa Jackson has also recognized the effectiveness of states taking the lead.  As she said in 2011, “We have no data right now that lead us to believe one way or the other that there needs to be specific federal regulation of the fracking process” – and in February last year, she reaffirmed this position saying, “Let me speak really plainly: There is no EPA setup that allows us to oversee each and every well that’s drilled.”

What have been the results?  Going back to our example of Ohio, of the 329 wells that have already been developed in the Utica shale, there hasn’t been a single environmental violation.  Ohio is simply building on the record of success that has been repeated throughout the country for decades.

So, far from being “exempt,” shale producers have been held to even higher standards, complying with overlapping federal and state regulations, and held accountable by state regulators who are far better equipped to oversee the process.

*UPDATE* Shale Delivers for Middle (and Middle-Class) America
In the ongoing conversation over America’s abundance of natural gas, one thing is becoming very clear: The continued development of our nation’s oil and natural gas resources is helping advance our economy where it matters most – in the pocketbooks of middle class Americans.

johnkrohnJD
Communications Director

 

UPDATE (5/03/2013; 9:43 A.M. ET):The Atlantic and Business Insider filed reports this week that make abundantly clear the profound economic impacts oil and natural gas development provides to middle class Americans. Reporting on the economic advancements in two states that couldn’t be more different – North Dakota and Pennsylvania – the reviews provided a succinct picture of how shale development is not only transforming U.S. energy prospects, but is also dramatically improving the quality of life for the nation’s blue collar workers.

The Atlantic reports the entire economic landscape has changed for many residents in the Peace Garden State:

The Bureau of Labor Statistics recently produced a breakdown of job growth during North Dakota’s oil rush, and it’s pretty remarkable. In counties where oil rigs have sprouted up to drill from the Bakken Shale Formation — a few of which are actually in Montana — employment grew by 35.9 percent from 2007 to 2011, from about 78,000 jobs to more than 105,000. But much as in Texas’s shale country, the impact on local job growth has actually been dwarfed by the impact on local income. Total wages more than doubled from $2.6 billion to $5.4 billion. Average pay jumped by more than half, from $33,040 to $50,553.

Blue-collar men suddenly finding high-paying work in the fields is a big part of the story. But jobs and paychecks have surged across industries.

While this story is compelling, it’s not unique. Business Insider also took a closer look at the economic benefits shale development has provided one formerly rural poor Pennsylvania county. According to reporters who visited the area, “lots of people [are] grateful for the infusion of commerce injected into a local economy that had stagnated.” From Business Insider:

The 35-year-old Susquehanna County, Penn. native was scraping by supplying construction contractors with cut bluestone when the gas industry arrived to his sleepy corner of Pennsylvania in 2009.

Four years later, Diaz now owns seven different companies, including a home furnishings manufacturer and a timber harvester — that bring in $50 million a year and employs 250 people.

By one count, county residents have taken in a total of $300 million in gas royalties.

Jay Agkinson, a lifelong county resident who runs Montrose’s Shell station, said morning fill-ups can sometimes resemble truck meets.

“A lot of people who never had money have money now,” he said.

In countless communities across the country, Americans are seeing their economic prospects transformed for the better thanks to the responsible development of the nation’s shale resources. That’s welcome news for thousands of blue collar Americans, many of whom have seen their incomes and opportunity stagnate and decline in recent years.

—Original post, February 20, 2013—

In the ongoing conversation over America’s abundance of natural gas, one thing is becoming very clear: The continued development of our nation’s oil and natural gas resources is helping advance our economy where it matters most – in the pocketbooks of middle class Americans.

In fact, a growing body of evidence highlights that oil and natural gas development is a key element in reaching the “North Star” that President Obama recently noted should be the goal of our nation’s economic policies; namely, a growing economy that creates good middle class jobs.

In 2011, the oil and natural gas industry provided $545 billion to the U.S. economy in the form of capital expenditures, wages and dividend payments. This supported nine percent of all new jobs that year, according to the World Economic Forum.

Such growth, in turn, is transforming entire regional economies. Take, for example, the city of Pittsburgh, Pa.  This once reveled blue-collar city was a symbol of U.S. economic strength until the collapse of U.S. steel and manufacturing in the early 1980s. Thereafter, the city struggled to right its course, with only limited success. But now wages are rising, unemployment is falling and many are attributing this growth, at least in part, to a stronger economy supported by Marcellus Shale development.

Kurt Rankin, an economist and assistant vice president at the PNC Financial Services Group, sees Marcellus development as “providing the defining force for Pittsburgh’s local economy,” according to a recent feature by E&E News. Other experts have similarly observed that shale development is boosting wealth, increasing local spending and reversing a “brain drain” that has plagued the region for years.

Rankin has good reason for his optimism, too. Houston, Tex. has seen rapid growth as major energy Companies have relocated to, or increased their presence in, the Space City due to  $120 billion worth of investments in refineries, pipelines and export terminals expected to be constructed along the Gulf Coast.

Similar expansions have been witnessed in smaller U.S. cities like Williamsport, Pa. This medium sized central Pennsylvania city, long known for hosting the Little League World Series, became the 7th fastest growing city in the United States in 2011 thanks to Marcellus Shale development.

Of course, these economic advancements haven’t just accrued in our nation’s metropolitan areas.  In fact, they are most evident in areas where a majority of middle class Americans reside: our nation’s rural and suburban communities. This was noted in a recent USA TODAY story, which found that oil and natural gas development is increasing personal income in small towns across the nation, reversing a decade’s long trend and shifting significant wealth toward areas of the country that can use the boost. Specifically, the USA TODAY analysis noted these areas saw their incomes rise by 3.8 percent, driven by spending in the nation’s oil and gas fields.

But the story doesn’t end there. A San Antonio Express-News review of economic data supported by Eagle Ford Shale development noted that income in LaSalle County, Tex., rose by 31 percent since shale development began.  In fact, the review found that counties hosting Eagle Ford development saw an average increase in per capita income of 13.62 percent between 2008 and 2011. These counties include Atascosa,Bee, DeWitt, Dimmit, Frio, Gonzales, Karnes, La Salle, Live Oak, Maverick, McMullen, Webb, Wilson, and Zavala. For comparison, Texas saw an increase in per capita income of 1.3 percent over that time.

Eagle Ford income rais chart

Eagle Ford Shale development drives personal income growth. source: http://bit.ly/Y75fxh

What’s making this rise possible is a significant increase in good paying jobs being provided by a growing domestic oil and natural gas industry.  A recent independent review found that wages for the mining, oil and natural gas sector increased by 5.8 percent between the last quarters of 2011 and 2012, an amount greater than any 12-month period since 2006. Examining employment data from two states makes this phenomenon very clear. In Pennsylvania, Marcellus Shale development is directly supporting more than 30,000 jobs in the state.  These jobs pay $89,116 per year, which exceeds the average compensation of all other Pennsylvania industries by $41,000 according to state data. According to the 2010 Census, this even exceeds the Keystone State’s average household income of $51,651.

PA Income chart

PA wages comparison. Source: http://bit.ly/WuUVtW

A similar story is taking shape in Ohio, where Utica Shale development began ramping up in 2012.  According to a recent state report, shale development is directly employing nearly 7,300 individuals who are earning an average wage of $74,000 a year. This figure exceeds the wages of all other Ohio industries by approximately $30,000.

What’s making this development even more profound is that at the same time shale development is increasing wages, it’s also decreasing expenses for most Americans. Wholesale electricity prices in the United States have dropped more than 50 percent since 2008 thanks to affordable natural gas supplies made possible by shale development.  Another review by IHS-CERA found that lower natural gas prices are saving every American household an annual average of $926. All of this, and more, led the President to recently declare in the State of the Union, “We produce more natural gas than ever before — and nearly everyone’s energy bill is lower because of it.”

So, as it turns out, the President doesn’t need to look too far to find that North Star he referenced in the State of the Union Address. From providing millions of jobs, to increasing paychecks while decreasing expenses, our ability to develop our nation’s oil and natural gas resources seems to be the compass that is pointing to a stronger middle class.

 

Examining the Facts in Portage Co. Methane Case
Just this morning, the Today show ran a story about a family in northeast Ohio that blames oil and gas development on methane in their water well. But facts, the science, a 50-year-old report from the U.S. Geological Survey, and even Ohio’s top environmental regulatory agency all seem to disagree – and an even cursory review of the facts of the case lay out pretty clearly why they’re right.

Dan
EID Ohio, Communications Director

This week, a local NBC affiliate out of Cleveland did a story on a Portage County family (the Klines) concerned about the levels of methane in their water well, and pretty convinced that a natural gas well drilled more than 1,800 feet away from their property is the sole reason why it’s there.

To their credit, the producers in Cleveland did a pretty good job of laying out the situation in a pretty balanced way, noting several important facts (we’ll get to those in just a bit) that, taken together, render the notion of oil and gas development having anything to do with this event a virtual impossibility. Unfortunately, producers with the Today show in New York didn’t quite apply the same standard of accuracy in running with the story on its broadcast this morning, airing a piece that carefully avoids mention of the facts, even in the face of a mountain of evidence that directly contradicts its thesis.

Since the focus of NBC’s “investigative” report was on the presence of two substances (methane and chloride) in the Kline water well, let’s examine each of those with the kind of attention to detail to which we hope news outlets – and, separately, the Today show — will adhere in the future.

Methane

It’s important to note right up top that the operator of the nearby natural gas well in question conducted extensive baseline water testing before any development activities ever proceeded – sampling the Kline well even though it technically resides outside the “presumptive liability” zone of 1,500-feet from the well. A copy of those test results can be found here.

As you’ll see, methane was found in the Klines’ water well before the natural gas well was even drilled. Other baseline water tests focused on the area in question confirm that methane is commonly found in water wells throughout the region. Again, these findings come from samples taken before drilling began, meaning the methane detected is naturally occurring, and sometimes present in fairly high concentrations.

But perhaps the most important detail concerning the Klines’ water well is this: According to the Ohio Department of Natural Resources (ODNR), the Kline water well was actually drilled through the existing water aquifer and into a rock formation below called the “hard blue shale.” According to the statement that ODNR submitted to Today: “The water well in question was found to be drilled into shale, which is known to contain methane and is naturally occurring.”

In other words: natural gas was found in a water well that was drilled into a shale formation that contains natural gas.

Here’s why that’s relevant: According to the U.S. Geological Survey (USGS), the relatively shallow shale rocks that underlie Portage Co. have long been known to house some pretty low-quality drinking water. In a report filed by USGS in 1966 – 56 years ago, mind you – the agency found that:

“the shale units in Portage County generally have not been used as a source of water because of either the poor quality of the water or its insufficient quantity.”

The fact that the Klines’ water well was drilled into one of those shales explains a lot about the composition and quality of their water.

One of the other points the reporter made sure to highlight in the Today show piece was that methane levels discovered in water sampling tests from December 2012 (based on tests conducted by ODNR) were higher than what was detected in the baseline samples collected in August 2012. So even if there were methane in the water beforehand – and lots of it – what could explain the increase in concentration?

Here, a 2008 report that appeared in a prominent scientific journal examining how and why levels of methane can change in groundwater might prove useful. That report, entitled “Spike-Like Concentration Change of Methane,” observed that it’s common for methane levels in groundwater to increase or decrease over time, as methane concentrations are “controlled by the hydrostatic pressure gradient in the aquifer.” According to the study, the pressure gradient can change for a number of reasons — not only due to withdrawals from the well, but also from atmospheric conditions, such as changes in barometric pressure. Because of this, changes in temperature can cause methane concentrations in groundwater to fluctuate.

The baseline tests were taken in the summer, whereas ODNR’s tests were taken in the late fall/winter.

Chloride

Another substance that came up in samples of the Kline water well was chloride. Once again, baseline water tests provide much-needed information in this case, including before and after measurements of chloride itself.

In those baseline tests, chloride was detected in the Klines’ water at a concentration of 414.8 mg/L. The U.S. EPA’s standard, however, is 250 mg/L, meaning the chloride concentration significantly exceeded the acceptable limit set by the EPA before drilling even began.

With all of these facts spread out on the table, NBC News chose only to say that, according to ODNR’s investigation, “the well water’s chloride levels were nearly twice the safe limit.” No mention of the baseline data, and certainly no mention of the fact that chloride levels far exceeded safe limits before the company ever drilled its natural gas well.

But chloride levels were slightly higher in ODNR’s tests (taken in December) than the baseline samples from August. How to explain that?

For one, a 2004 report on Ohio groundwater from USGS found elevated levels of chloride in Portage Co., specifically in the winter months. The reason, according to USGS, was the “direct application of deicing chemicals” to roadways. USGS added that “downgradient dissolved chloride concentrations (mean 124-345 mg/L) rarely returned to background concentrations (mean 7-37 mg/L) throughout the study period.” In Portage Co. specifically, two of the three wells sampled registered average chloride concentrations of between 406 mg/L and 534 mg/L, with some readings over 1,900 mg/L.

In other words, during the winter months, water aquifers in Portage Co. often experience spikes in chloride levels, and significant ones at that – a phenomenon that was observed, recorded and lamented in the area long before any shale development came to town.

There’s another element that may have contributed to the rise in chlorides, as detailed in a Nov. 2011 story in the Columbus Dispatch. The headline of that piece? “Stored road salt might have tainted well water.” Elsewhere, the New Hampshire Department of Environmental Services has recognized road salts and other de-icers as significant hazards to groundwater quality, identifying the threat of chloride leaking into water supplies as a key reason. The Washington Post put it more bluntly: “Road salt melts snow, but it contaminates groundwater and damages habitats.”

Notably, Portage Co. experienced a large snowstorm last month – the same month as ODNR’s tests.

Also worth noting: Another report from ODNR, this one issued in 1990, identified Portage County specifically as having a high risk for naturally induced water contamination: “The diversity of hydrogeologic conditions in Portage County,” ODNR observed, “produces settings with a wide range of vulnerability to ground water contamination.”

Conclusion

With all of these facts available, the Today show nonetheless chose to ignore each and every one of them, opting instead to focus on sensationalism and “expert analysis” from well-known anti-shale activist groups – even shoehorning in a quick interview with a Washington, D.C.-based staffer from the NRDC. The segment then officially jumped the shark by trying its level best to compare the Klines’ situation with the infamous “flaming faucet” scene in Josh Fox’s thoroughly discredited movie Gasland.

But actually, linking the Portage Co. case with Gasland’s flaming faucet may be entirely fitting. As we remember, the initial reaction to that scene was to connect it to shale development, specifically the process of hydraulic fracturing. But according to an investigation by Colorado’s oil and gas regulators – whom Fox refused to allow in his documentary to explain the facts – the flaming faucet was “not related to oil and gas activity.”

Sounds familiar, huh?

How Earthworks Missed the Mark on State Regulation
Last week, Earthworks released a report that attempted to show lax state regulation of oil and gas development. The purpose was clear: build a case for more federal regulation, and by extension delay approval for additional production – if not ban it outright. Unfortunately for Earthworks, anyone with an Internet connection has access to information that proves Earthworks’ goal was not to shine on a light on a problem, but rather to repeat its old talking points in a new way.

Steve
Spokesman

 

Last week, Earthworks released a report that attempted to show lax state regulation of oil and gas development. The purpose was clear: build a case for more federal regulation, and by extension delay approval for additional production – if not ban it outright. Unfortunately for Earthworks, anyone with an Internet connection has access to information that proves Earthworks’ goal was not to shine on a light on a problem, but rather to repeat its old talking points in a new way.

That objective was hardly buried or hidden in the document, either. On the second page of the report, Earthworks says, “this work could not have been undertaken without the generous support of The Heinz Endowments.” For those unfamiliar with Heinz, they – along with the Park Foundation – have been one of the chief financial backers of efforts to stop natural gas development. To put this in poker terms, Earthworks revealed its hand before the betting even began.

What’s more amazing, though, is the sheer lack of understanding of the oil and natural gas industry that Earthworks put on display for everyone who read their report. From mischaracterizing state regulatory systems to failing to account for the fact that well pads often have multiple producing wells, Earthworks’ latest report stands high as a monument to mediocrity in the world of anti-drilling activism.

Below you’ll find a list of some of the biggest problems with Earthworks’ report. Feel free to add any other discrepancies or problems in the comments section at the end of the post.

–

PROBLEM 1: Manipulates and misstates data to achieve predetermined result.

FACT: A single inspection of a particular well pad can include multiple wells, and an honest look at the appropriate numbers tells a different story than the narrative Earthworks wants us to believe.

PROBLEM 2: Claims state regulatory bodies are ill-equipped and “unprepared” for future or even existing development.

FACT: Experts have confirmed that state regulatory bodies are well-managed and have the tools necessary to do their jobs – and do them right.

PROBLEM 3: Pushes for legal system defined by guilty until proven innocent.

FACT: Evidence doesn’t support accusations made by opponents, and the presumption of innocence has been a hallmark of the American legal system for more than 100 years.

PROBLEM 4: Claims spills and violations are increasing.

FACT: Spills in Colorado are decreasing, while violations in Ohio and Pennsylvania are on the decline.

PROBLEM 5: Wants to punish oil and gas development for government deficits.

FACT: Rules and regulations are designed to prevent problems, not merely to increase government funding. Additionally, oil and gas development is already a major source of public revenue.

–

So, in summation, the Earthworks “report” was essentially a rehash of common talking points used by critics of oil and gas development, many if not all of which have been widely debunked. Given that lack of seriousness, it’s unsurprising that the report arrived at conclusions contradicted by easily accessible data.

Did Earthworks think those who read the report would be unable to find that information, or were they merely hoping that readers wouldn’t?

The report is riddled with transparently baseless accusations, and its central recommendation that those accusations be considered valid by decree is absurd by any legal standard. Given these facts, perhaps the bigger question is how so many news outlets allowed themselves to be used as a promotional vehicle for Earthworks’ activism, all without giving the report the kind of critical analysis – or even cursory review – that one would expect.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Update 1- December 1, 2011

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

Update II- December 2, 2011

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

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

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