Tag: "fracking"

New York Primary “Fracking” Fight

Bernie Sanders is demanding a nation-wide ban on hydraulic fracturing or “fracking” while he campaigns in the state of New York against Hillary Clinton, using the anti-fracking position of the state of New York to sway more voters over to his side.

Bernie’s campaign aligning with the anti-fracking effort claims that the drilling process has extremely hazardous effects. However, some very extensive studies prove otherwise.

Last year the Environmental Protection Agency (EPA) conducted an extensive study on the effects of hydraulic fracturing on drinking water. The study:

  • Did not find evidence that these mechanisms have led to widespread, systemic impacts on drinking water resources in the United States.
  • Of the potential mechanisms identified in this report, there were specific instances where one or more mechanisms led to impacts on drinking water resources, including contamination of drinking water wells.
  • The number of identified cases, the study concluded however, was small compared to the number of hydraulically fractured wells.

In addition to the EPA’s findings, the processes of hydraulic fracturing and horizontal drilling created an energy/economic boom in the United States.

Apr 13, 2016 | 3 comments | by

Available and Off-Limits Offshore U.S. Oil and Natural Gas Resources

Despite the fact that the federal government has made it clear that all oil and natural gas drilling along the Atlantic coast is off limits, oil and natural gas companies are still going ahead with seismic surveys to see just how much oil is resting off of our eastern coast.

Close to 87 percent of all federally controlled offshore acreage are off-limits to offshore oil and natural gas development. If included in the federal government’s next five-year leasing program and lease sales beginning in 2018, exploratory drilling could start the following year with commercial production expected as early as 2023.

Opening the Atlantic Outer Continental Shelf, the Pacific Outer Continental Shelf and the Eastern Gulf of Mexico to offshore oil and natural gas development could have remarkable benefits. By 2035, this opportunity could:

  • Create nearly 840,000 new jobs along coasts and across the country.
  • Add about 3.5 million barrels of oil equivalent per day to domestic energy production.
  • Generate more than $200 billion in cumulative revenue for the government.
  • Lead to nearly $450 billion in new private sector spending.
  • Contribute more than $70 billion per year to the U.S. economy.

Specifically, increasing access to offshore oil and natural gas resources in the Atlantic with an investment of an estimated $195 billion cumulative between 2017 and 2035, could by 2035:

  • Produce an incremental 1.3 million barrels of oil equivalent per day (MMboe/d).
  • Add nearly 280,000 jobs.
  • Contribute up to $23.5 billion per year to the U.S. economy.
  • Generate $51 billion in cumulative government revenue.

If seismic activity were to begin in 2017 and lease sales in 2018, first production could be expected as early as 2026.

Mar 30, 2016 | Leave a Comment | by

NCPA Nationwide Survey of Anti-Fracking Activism – the “Frac Map”

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The NCPA completed a nationwide survey of successful anti-fracking activism that we presented to state legislators, energy associations and think tanks. This map demonstrates the threat of misguided activism to oil and gas production, the key to continuing our economic recovery, addressing the national debt, lowering the trade deficit and preserving U.S. superpower status into the future.

The NCPA “Frac Map” was also featured at the Washington Post.

 

 

Aug 10, 2015 | Leave a Comment | by

Natural Gas Production by State

From the American Legislative Exchange Council (ALEC):

One of the greatest achievements of the American 21st Century has been the advances made in hydraulic fracturing and horizontal drilling technologies. These innovative well stimulation and extraction techniques have made enormous quantities of hydrocarbons that have been locked away in shale rock accessible now for the first time.

Between 2000 and today, domestic natural gas withdrawals have increased by roughly 25 percent, leading to an abundant supply of inexpensive fuel that can be used to generate electricity and provide space heat. A decade ago, policymakers were discussing the need to import liquefied natural gas (LNG) in order to meet American energy demands. Today, LNG export terminals are under construction in Maryland, Louisiana and Texas.

2015-05-07-Map-Energy-Production-Natural-Gas-2

The map above shows total natural gas production by state in 2013, the most recent year for which data is available. Unsurprisingly, the difference between Pennsylvania and New York — both of which lie on top of the gas-rich Marcellus shale play — is stark. Pennsylvania, having embraced hydraulic fracturing currently produces roughly 140 times more natural gas compared to New York, which has implemented a statewide ban on the well stimulation technique.

Jul 29, 2015 | 1 comment | by

Strictest Frac Regulations Implemented in California

The first restrictions on hydraulic fracturing are about to be implemented in California. This follows the passage of Senate Bill 4, authored by Fran Pavley (D- Agoura Hills). Approved in 2013, the regulations will force oil companies to expand monitoring and reporting of water use and water quality, conduct rigorous analysis of potential seismic impacts of operations and disclose chemicals used in all operations. Abiding by these new laws will discourage future investments by oil and gas companies in the state.

Recently, the Division of Oil, Gas, and Geothermal Resources (DOGGR) ― California’s agency charged with enforcing such laws — has been coming under attack by lawmakers over its inadequate oversight over oil and gas operations. In the past, DOGGR has admitted to falling behind on monitoring oil field wastewater injections into federally protected aquifers, as well as missing deadlines imposed by legislators for providing data. Many doubt the agency’s ability to correctly implement and abide by these new regulations.

More importantly, the California Monterrey Shale formation could potentially hold the largest “tight oil” shale deposits in the United States. While oil and gas activity in the region could have boosted the California economy, new regulations will hurt potential economic growth in the state. Currently, it has been estimated that oil and gas contribute about $21.55 billion to the public coffers every year. Without such revenue, California will have to make some tough financial decisions and fire many state employees.

 

Jul 08, 2015 | Leave a Comment | by

Oklahoma Fracking Companies Could Face Earthquake Lawsuits

Last week, the Oklahoma Supreme Court ruled that earthquake injury lawsuits against oil and gas companies could now be heard in district courts. Previously, the oil industry had been trying to avoid such court cases and asked for them to be heard only through the Oklahoma Corporation Commission.

The State’s highest court rejected the request, stating:

The Commission, although possessing many of the powers of a court of record, is without the authority to entertain a suit for damages.

The court was in no way ruling that earthquakes are caused by companies using hydraulic fracturing technology to extract oil and natural gas.

Instead, the opinion spoke only of which court was best suited to hear such claims in Oklahoma. This opinion upheld the longstanding tradition of allowing district courts exclusive jurisdiction over private tort actions.

A recent flurry of earthquakes in Oklahoma have placed the state at the center of the fracking debate. A recent study by the University of Oklahoma, Columbia University, and the U.S. Geological Survey reported potential links between wastewater injection, a practice often used for the disposal of water waste in fracking, and earthquakes. The study has been heavily disputed and many conclude the earthquakes are simply a manifestation of natural causes.

 

Jul 06, 2015 | 1 comment | by

Study’s Conclusion Does Not Make New York Hydraulic Fracturing Ban Permanent

A conclusion of a seven year long review of hydraulic fracturing in the state of New York does not mean that a state wide hydraulic fracturing ban is permanent. The findings of the study might be the only thing that is official from Department of Environmental Conservation other than a speech made by the governor.

Joe Martens, head of the Department of Environmental Conservation:

After years of exhaustive research and examination of the science and facts, prohibiting high-volume hydraulic fracturing is the only reasonable alternative. High-volume hydraulic fracturing poses significant adverse impacts to land, air, water, natural resources and potential significant public health impacts that cannot be adequately mitigated.

New York governor Andrew M. Cuomo announced on December 17, 2014 that he would ban hydraulic fracturing in New York State by executive proclamation because of concerns over health risks, ending years of debate over a method of extracting natural gas. He was formally declaring a “ban” after his predecessor, Patterson, implemented a “moratorium” on hydraulic fracturing. The question of whether to allow hydraulic fracturing is occurring in many states and has been one of the most divisive public policy debates in New York in years. Environmental advocates, alarmed by the growth of the practice, pointed to New York’s decision as the first ban by a state with significant natural-gas resources.

There is no actual law in place that bans hydraulic fracturing in New York. Whereas there are laws in Texas and Oklahoma that ban local hydraulic fracturing bans in those two states. So, for now, hydraulic fracturing could be on hold in New York, but only temporarily.

 

Jul 01, 2015 | 4 comments | by

U.S. Now Top Oil Producer

The United States has officially surpassed both Saudi Arabia in terms of crude oil production. In 2014, the U.S. had already exceeded both Russia and Saudi Arabia in hydrocarbon, oil and natural gas, production. The U.S. Energy Information Administration (EIA) recently predicted that such high production is likely to continue into the future, with an expected 9.4 million barrels a day this year and 9.3 million barrels a day for 2016.

Adam Sieminski, U.S. EIA administrator, said:

Despite the large decline in crude oil prices since June 2004, this May’s estimated oil output in the United States is the highest for any month since 1972.

U.S. producers have managed to maintain production levels by becoming more efficient and generating new cost savings. Lower prices have led to many labor cuts, with a loss of nearly 100,000 energy-related jobs. Some companies have cut up to 40 percent of their service and supply crews. By April 2015, only 750 rigs were still in operation compared to 1,596 in October 2014.

Industry insiders were not surprised by the EIA report and had previously expected production to keep steady while the growth rate slowed. With prices hovering around $60 a barrel, shale oil exploration is still profitable and will continue be an important source of production.

The Organization of Petroleum Exporting Countries’ (OPEC) plan to cut prices and hurt high-cost U.S. shale producers, however, remains unchanged. On June 7, OPEC announced it would keep production levels unchanged despite pressure from countries within the organization to lower production and increase price.

Fawad Razaqzada, a technical analyst at the trading website FOREX.com, commented on OPEC’s influence saying:

The cartel is losing some influence to the U.S. shale oil market and to a lesser degree Russia, but it still remains a dominant force ― just not as powerful as before.

 

Jun 15, 2015 | Leave a Comment | by

Farmers Hit Hard by the Estate “Death” Tax

On April 16, 2015, the House of Representatives voted to repeal the estate tax. The Internal Revenue Service defines the estate tax as, “a tax on your right to transfer property at your death.”

Advocates for the estate tax decry the perpetuation of inequality due to inherited wealth. The estate tax, often called the “death tax” by opponents, is ineffective in reducing inequality; it does, however, excel at destroying family business, especially agricultural operations. Unlike investments and cash, real estate cannot be as easily placed into trust. Thus, American farmers and small business owners are hardest hit by the tax, while cash-rich Americans avoid it.

The shale gas revolution has created economic booms from Pennsylvania to Texas to North Dakota, but it is a mixed blessing for American farmers. The sudden influx of money to rural areas is increasing the wealth of farms in America and complicating estate tax calculations for farms.

  • Many farm estates have increased in value due to the mineral rights to the land. Farmers saw land values appreciate immediately upon signing leases with natural gas producers and land values have continued to rise. In both Texas and Pennsylvania, land values increased from 1997 to 2012, even after several years of drilling.
  • The increase in land value due to the demand for mineral leases was followed by increases in farm estate values, as many farmers invested their royalties from gas extraction back into their farms. The Federal Reserve Bank of Kansas estimates that three-fourths of farms’ wealth accumulation from energy payments are through increases in land values.

As the U.S. Senate begins debate over the estate tax, it is obvious the stakes are higher than ever. With farms in Pennsylvania and Texas experiencing 10 percent or greater increases in household wealth, the estate tax is a continuing threat to farm families’ ability to pass their farms to their children.

Mike Gajewsky is a research associate at the National Center for Policy Analysis

Jun 15, 2015 | 1 comment | by

Oklahoma Follows Texas to Prohibit Hydraulic Fracturing Bans

On Friday, May 30, 2015, Oklahoma became the second state to officially ban local bans on hydraulic fracturing. The bill prohibits bans on hydraulic fracturing, as well as other oil and gas drilling operations. The three-person Oklahoma Corporation Commission will now continue to act as the main regulator of oil and gas operations in the state.

Governor Mary Fallin said:

Corporate Commissioners are elected by the people of Oklahoma to regulate the oil and gas industry. They are best equipped to make decisions about drilling and its effect on seismic activity, the environment and other sensitive issues.

The bill was written in response to proposals to increase oil and gas drilling regulations in major cities and as an increasing number of Oklahomans become disgruntled with the mounting number of earthquakes. Sponsored by leaders in the Oklahoma House and Senate, the bill passed the House by a vote of 64-32 and the Senate by 33-13. Amendments to the original bill will still allow cities and municipalities to place “reasonable” restrictions on oil and gas operations, such as setbacks, noise, traffic and fencing regulations.

The bill comes at a time of great controversy within Oklahoma as the Oklahoma Geological Survey recently said increases in earthquakes were “very unlikely to represent a naturally occurring process.” In February, the U.S. Geological Survey published a paper written by Oklahoma Seismologic Austin Holland stating that the increase in seismic activity in Oklahoma was from human-induced activities.

Kim Hatfield, chairman of the regulatory committee at the Oklahoma Independent Petroleum Association (OIPA) responded:

This is something the Oklahoma Geological Survey, Oklahoma Corporation Commissions and OIPA have been working on for well over a year. We knew this was a possibility.

Oklahoma’s oil and natural gas producers have a proven history of developing the state’s oil and natural gas resources in a safe and effective manner.

 

Jun 08, 2015 | 4 comments | by
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