Posts Tagged ‘Shale Gas’

Agency convenes hearing in Canonsburg tomorrow to discuss scope of upcoming hydraulic fracturing study. But has EPA forgotten about its 2004 report?

Tomorrow night in Canonsburg, the EPA will convene its third public hearing on its upcoming study on hydraulic fracturing, a key technology that’s been used to produce energy in Pennsylvania for more than a half-century, but one that’s become especially important lately as efforts to convert the enormous potential of the Marcellus into jobs and revenues for Pennsylvanians move forward across the Commonwealth.

But for those keeping tally at home, this new study by EPA isn’t the first time the agency has looked into the safety and performance of fracturing technology. In a report released by EPA in June 2004, federal officials found the fracturing of coalbed methane formations “poses little or no threat” to underground sources of drinking water – despite that fact that coal seams generally reside close to formations carrying drinking water underground. In remarks set to be delivered at tomorrow’s hearing, MSC president and executive director Kathryn Klaber lays out some additional details (and context) associated with this landmark study:

In that report — the product of an intensive, four-year course of study first initiated under the Clinton administration — EPA found “no evidence” suggesting the fracturing of shallow coalbed methane reserves posed a threat to underground drinking water supplies. Certainly you’re aware that coalbed methane strata residethousands of feet closer to the water table than shale formations, and that the technology used today to access clean-burning natural gas from these formations is much more advanced and sophisticated than what was available in the past.

For their part, natural gas critics contend that EPA’s 2004 study on fracturing’s application to coalbed methane reserves somehow isn’t relevant to the current conversation about the Marcellus Shale. Come again? If the fracturing of shallow coalbeds near the water table was found to be safe by EPA, how is it that the fracturing of deep shale formations is any less so? After all, we’re talking about shale strata that reside thousands and thousands of feet below both the water table and the coal beds themselves.

Thursday’s forum in Canonsburg is expected to address some of these questions, and more generally lay out the direction that EPA will take in engaging in its second study on hydraulic fracturing in 70 months. And you know what? It’s an effort we support in full. With fracturing, we’re talking about a technology that’s been deployed more than 1.1 million times in the 60-plus years in which it’s been in commercial use. And in all that time, not a single government regulator – including the EPA – has made a single claim suggesting it’s a threat to groundwater. Assuming this new study is science-based and peer-reviewed, there’s no reason to believe its findings will diverge from what the agency has consistently found in the past.

So what will the latest installment of EPA’s hydraulic fracturing study series look like when it hits the shelves sometime in the next two or three years? Tough to say for sure, but if it ends up drawing on the testimony of regulators in the states, experts in the field, and everyday Americans whose lives are being made better and more prosperous thanks to the once-in-a-lifetime opportunity of shale gas in America – it should be quite a page-turner indeed.

In the meantime, folks interested in coming out to tell EPA what they think of responsible shale gas development in Pennsylvania have a few outstanding tasks to complete before they arrive tomorrow night. First order of business: Register for the meeting, which is easily accomplished by navigating to this page. Second: Make sure to stock up on all the facts. MSC fact sheets have been developed on a range of topics likely to be addressed in some form – from the full disclosure of materials involved in the fracturing process, to the many ways in which natural gas can be used as a workhorse in PA to deliver a clean, secure and affordable energy future. The full arsenal can be accessed here.

So that should just about do it. Pre-registration for the event starts at 5:00 p.m. sharp, and the address for the Hilton Garden Inn is 1000 Corporate Drive in Canonsburg. Hope to see you out there.

Copyright: Marcelluscoalition.org

• MSC President Kathryn Klaber: “[W]e need an updated and modernized regulatory and legislative framework, and a fair tax strategy that keeps our state ahead of the curve in attracting the investment needed to bring these resources to the surface
  
• [Severance] tax should not be set in a “vacuum” but as part of a “comprehensive evaluation” of laws and regulations governing the industry.

Shale Coalition Wants “Fair Tax” & Modernized Rules. Marcellus Shale Coalition President Kathryn Klaber says the fiscal code language about the severance tax proposal includes a commitment by elected leaders to conduct a comprehensive evaluation of “how best to seize on the opportunities of the Marcellus in the future, and do so in a manner that benefits all Pennsylvanians.” Klaber called on state lawmakers not to look at the severance tax in a vacuum, that there is more at stake than putting a little extra money in state coffers…..”we need an updated and modernized regulatory and legislative framework, and a fair tax strategy that keeps our state ahead of the curve in attracting the investment needed to bring these resources to the surface.” (WDUQ Radio, 7/7/10)

Pennsylvania needs to stay “ahead of the curve in terms of investment”: “The Marcellus Shale is not the only shale play that is under development in the United States, said Kathryn Klaber, president and executive director the Marcellus Shale Coalition.”There is a lot of competition for dollars” to develop gas wells, she said. Pennsylvania needs to stay “ahead of the curve in terms of investment” in gas drilling, Klaber said in a conference call with reporters on Tuesday. (Towanda Daily Review, 7/7/10)

Marcellus Shale represent[s] a tremendous opportunity: “The rich natural gas deposits in the Marcellus Shale represent a tremendous opportunity in the form of new jobs and economic stimulus to mostly rural communities across the commonwealth,” said Governor Rendell. “We have a responsibility to ensure that the economic benefits are balanced with the need to protect the local environment and the residents of communities where the work is being done.” (Pocono News, 7/7/10)

Gas rush has generated a frenzy: In some corners of the energy industry, tapping the shale gas has become every bit as enticing and adventurous as exploring in the Arctic and the deep waters of the Gulf of Mexico. The gas rush has generated a frenzy in the region over the past two years. In some corners of the energy industry, tapping the shale gas has become every bit as enticing and adventurous as exploring in the Arctic and the deep waters of the Gulf of Mexico. (New York Times, 7/7/10)

Comprehensive Evaluation of State Natural Gas Laws Needed: Now that the legislature has agreed in principle on the tax, energy industry leaders are hoping to influence the debate on the tax and regulation in coming months. The Marcellus Shale Coalition, an industry group, said on Tuesday the tax should not be set in a “vacuum” but as part of a “comprehensive evaluation” of laws and regulations governing the industry. Klaber argued that a “fair tax strategy,” coupled with laws and regulations that recognize the industry’s recent technological gains, would allow Pennsylvania to compete for new investment in the booming industry. (Reuters, 7/7/10)

For Mom, it’s just overwhelming: On a farm north of this old timber town that stretches out along the banks of the Susquehanna River, Perry Landon’s 82-year-old mother confronts the promises and trepidation of a new era of energy wealth. “For Mom, it’s just overwhelming,” Landon says. “She grew up in the Depression. Her parents were very poor. It’s hard for her to get her mind around this amount of money, and that you would get it for doing nothing.” Gas is testing oil’s position as the most sought-after energy commodity, as the global hunt for black gold faces technological limits, environmental risk and relentless political instability in oil-rich regions. (New York Times, 7/7/10)

The economic benefits associated with the responsible and environmentally sound development of the Marcellus Shale’s abundant, clean-burning natural gas reserves are overwhelming. Tens of thousands of good-paying jobs are being created across the Commonweal of Pennsylvania, where Marcellus development has been underway for several years. Hundreds of millions of dollars in tax revenues are being generated to local and state government. And Pennsylvania consumers, who continue to struggle with nearly double-digit unemployment rates, are seeing the benefits of shale gas development in the form of lower energy costs.

However, the story of the Marcellus Shale in New York State is a very different one. You see, in terms of geology, the Marcellus Shale formation is not considerably different in New York than it is in Pennsylvania. The technologies used to safely and effectively reach thesejob-creating resources are the same, too. But environmental regulators there have kept this production off-limits, denying the creation of thousands of jobs and countless other economic benefits to the region, despite the fact that the nation’s first natural gas well was completed in Fredonia, NY in 1821. At the same time, some elected state leaders are also working to implement an even more far-reaching moratorium on shale gas development.

Recognizing how critical this development is for Upstate New York’s struggling economy, and for our nation’s energy security, Marcellus Shale Coalition (MSC) president Kathryn Klaber joined a broad group of organizations this week in a letter to the State Assembly urging their support to move forward with responsible shale gas development: Here are key highlights from that letter:

We need your support for this compelling economic development opportunity, one that could benefit the State and localities significantly for years to come. We should embrace our State’s ability to bring New York-produced gas to New York customers, and by so doing create new opportunity and prosperity in our own State.

Natural gas is the cleanest fossil fuel known to man – is a solution to reducing our nation’s carbon footprint, and it will greatly improve New York’s and America’s energy independence. … And natural gas is abundant; the Marcellus Shale alone could supply natural gas to the entire United States for 20 years or more.

Based on economic projections in Pennsylvania, where the Marcellus is now being explored, Marcellus Shale development in New York will generate more than $1.4 billion in annual economic impact, based on 300 wells drilled – including more than $100 million in lease payments to landowners, $32 million in state tax revenue and tens of thousands of new jobs over time. In Broome County, a recent study that showed that 2,000 wells would annually generate more than $7.4 billion in economic activity, and nearly $400 million in wages, salaries and benefits. Also, more than $600 million in property tax income and $22 million and $20 million in state and local taxes would be generated. All of this – in just one county.

The folks in New York, especially those along the Southern Tier where Marcellus development would occur, are doing their part to educate, engage and inform the public, and key stakeholders, about the overwhelmingly positive benefits associated with shale gas production and how safe the process actually is. Last night, a group of elected officials, academics, landowners, and energy and labor representatives met in Binghamton to discuss these benefits, and to dispel the myths about the production of shale gas. The Ithaca Journal reports this today under the headline “Meeting touts benefits of tapping into Marcellus Shale”:

According to Syracuse University Earth Sciences professor Don Siegel, these concerns are more myth than reality. “This is the first environmental issue that I’ve thrown my hat into the ring on,” he said. “As a hydrogeologist, I really am almost offended by some of the opposition that’s trying to paint a picture of what groundwater resources are like that is completely wrong.”

“New investments will be made in a region where multimillion — and even multibillion — dollar investments have not been seen to this level in years,” said Broome County Executive Barbara Fiala,” and we can do all this while protecting the environment.”

“Our campus was one of the fastest-growing campuses in the United States, and virtually all of our graduates were going out into very good-paying energy industry jobs,” Drumm said. “The energy industry creates great jobs — lots of jobs — and we were heavily involved in our colleges in training for those jobs.”

Labor unions are also speaking out for responsible shale gas development in New York on behalf of their members. This from a WICZ-TV report:

Local union representatives were on hand as well, supporting the notion that jobs and money are on the coat tails of hydro-fracking.

Alex Barillo of Laborers Local 785 says he’s seen the benefits of drilling south of the border in Pennsylvania, and on the Millenium Pipeline where he says workers have seen a gross income of approximately 35 million dollars.

“That’s $35 million in gross wages that went to local workers right here so that they could have health insurance, they can have retirement, and they could pay their mortgages and so that they can do the things they do every day in their communities,” Barillo said.

We encourage you, your employees, colleagues, businesses associates, friends and family to visit Marcelluscoalition.org/get-involved, and join this fight for a more prosperous economy that leverages these resources into permanent, family-supporting jobs and stable supplies of domestic energy. Becoming a “Friend of Marcellus” will help ensure that you are informed and educated about the opportunities and critical issues surrounding this development, especially as it relates to moving forward with Marcellus development in New York.

Copyright: Marcelluscoalition.org

Both vertical and horizontal wells are used in shale gas drilling and completion; however, horizontal wells are the increasing trend due to both environmental concerns and economic efficiency (DOE, 2009). Horizontal drilling allows more exposure within the formation to optimize capture of natural gas as well as reducing the environmental footprint of drilling activity (DOE, 2009). The United States Department of Energy’s recently released document on shale gas development in the United States explains that “a vertical well may be exposed to as little as 50 ft of formation while a horizontal well may have a lateral wellbore extending in length from 2,000 to 6,000 ft within the 50-300 ft thick formation” (DOE, 2009, p.47). As such, surface disturbance and impacts to wildlife and communities are reduced while providing optimal gas recovery; considering 16 vertical wells per 640-acre section of land would disturb 77 acres, the equivalent in horizontal wells (4- horizontal wells) would disturb approximately 7.4 acres (DOE, 2009). In addition to reductions in surface disturbance, horizontal wells allow for development in areas previously considered unavailable, primarily urban and environmentally sensitive or protected areas. Well pads can be located away, or ‘setback’, from residences, roadways, wildlife habitats and other protected areas without hampering access to available gas reserves.

In order to recover the shale gas after drilling a well, current industry practice is to hydraulic fracture the formation to stimulate the near wellbore area and facilitate the release of natural gas trapped within the shale. Hydraulic fracturing is a process whereby a fracturing fluid, primarily water, is pumped into the formation under pressure at a calculated rate to form fractures and cracks within the formation, providing a pathway for the gas to migrate to the wellhead for recovery. Sand or other granular materials are added to the fracturing fluid to help ‘prop’ open the newly created fractures after the fluid has been removed from the formation (ALL, 2008a). Additional chemicals may be added to the fracturing fluid for specific engineering purposes; these additions may include friction-reducing agents, biocides and various stabilizers to prevent corrosion of metal piping in the well (DOE, 2009; ALL, 2008a). Depending on the formation and well characteristics, multiple fracturing procedures may be performed in order to fully develop the well for gas recovery (DOE, 2009). While each well and geologic formation is unique, continuing advances in horizontal drilling and well completion practices provide additional reductions in environmental impacts from oil and gas activities while providing the nation’s critical energy supply.
Copyright: GoMarcellusshale.com

Natural gas captured from organic shale formations is not new to the oil and gas industry; shale gas has been produced since the early 1800s (DOE, 2009).  Most shale gas formations have historically been deemed economically impractical to drill due to the available technology and relative abundance of domestic conventional natural gas sources.  However, recent technological advances in horizontal drilling and hydraulic fracturing along with increasing demand for natural gas and recent price trends for natural gas, have allowed previously inaccessible reserves to become technologically feasible and economically efficient to recover (DOE, 2009).

The Annual Energy Outlook for 2009, recently released by the United States’ Energy Information Administration, projects an increase of 0.5% total primary energy consumption annually through 2030 (EIA, 2009).  The majority of this demand increase will come from the residential sector’s demand for additional electricity (EIA, 2009).  Currently, coal-fired electricity generation dominates the electricity generation sector at approximately 49% of total U.S. domestic generation capacity (EIA, 2009).  However, due to emerging concerns and public policy developments regarding greenhouse gases and renewable portfolio standards for a sustainable energy supply, lower carbon energy sources needed for electricity generation are expected to gain marketplace demand (EIA, 2009).  Unfortunately, conversion from a fossil fuel-dependent energy economy to a low-carbon energy economy will take time and significant capital investment for infrastructure development (DOE, 2009).  A recent Wall Street Journal article cites Carl Pope, executive director of the Sierra Club as viewing natural gas as a “bridge fuel” from carbon-intensive fossil fuels, such as coal and petroleum, to cleaner future fuel sources (Casselman, 2009).

In order to meet the expected increased demand for natural gas without increasing dependence on foreign imports, development of domestic unconventional natural gas sources will need to grow rapidly.  Production from unconventional natural gas sources, namely organic shales, tight sand formations, and coal-bed methane, currently account for approximately 50% of the total domestic natural gas production (DOE, 2009), this total production from unconventional resources was estimated at 8.9 trillion cubic feet (Tcf) per year in 2007 (ALL, 2008c).  Of the 8.9 Tcf of unconventional natural gas produced in the United States in 2007, 1.2 Tcf was from shale formations; however, shale gas production is expected to grow to 4.2 Tcf by 2030, accounting for an estimated 18% of the total U.S. gas production in 2030.  Unconventional sources combined are predicted to grow to nearly 56% of total U.S. domestic natural gas production (EIA, 2009).  To date, four evolving shale gas plays (Haynesville, Marcellus, Fayetteville and Woodford) are estimated to have over 550 Tcf of total recoverable gas resources, these formatiosn are expected to be capable of providing sustainable production of 2-4 Tcf of natural gas annually for decades (DOE, 2009).  Of these four, the Haynesville Shale and Marcellus Shale may have the most significant additions to domestic reserves of natural gas in recent decades.

Copyright: GoMarcellusshale.com

KINGSTON TWP. – A public meeting to discuss Marcellus shale drilling issues will be held at 7 p.m. today at the Kingston Township Municipal Building at 180 E. Center Street in Shavertown.

The meeting is sponsored by the newly formed group, Luzerne County Citizens for Clean Water, and will feature a presentation by Andrew Byers, a member of the Shaleshock Action Alliance. The lessons learned from other regions provide a valuable starting point for identifying areas in which local leaders and citizens can anticipate and begin planning for potential changes resulting from the development and extraction of Marcellus shale gas, according to the release.

Parking is in the rear of the building and across the street next to the athletic field.

Copyright: Times Leader