REPOST: California fracking foes see drought as new weapon in heated battle

Fracking opponents came up with a new argument to stop the development of massive state oil reserves. Read more from this article:

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SAN FRANCISCO, Feb 10 (Reuters) - California fracking opponents aiming to stop development of massive state oil reserves are focusing their drive this year around the state's record-breaking drought, arguing oil production would suck sorely needed water from farms and homes.

California assemblyman Marc Levine told Reuters last week that he will co-author an upcoming bill that would place a moratorium on hydraulic fracturing in the state, and said he will use the drought, which could be the state's worst ever, to bolster his position.

"The drought is a game changer on fracking," Levine said. "We have to decide what our most precious commodity is - water or oil? This is the year to make the case that it's water."

A moratorium bill failed last year on a vote of 37 to 24, although another bill requiring greater disclosure on fracking, including water use, passed.

State Senator Holly Mitchell, Levine's co-sponsor on the bill, is not planning to focus on the drought, but environmentalists already are capitalizing on it, picketing Governor Jerry Brown at events including his announcement of the drought.

"Fracking uses water we just can't spare," said Dan Jacobson, legislative director for environmental lobby group Environment California.

Fracking has created an energy boom in the U.S. and has the potential to drastically increase oil production in California Monterey Shale deposit, which federal officials have estimated holds up to 15 billion gallons of oil, more than most estimates for Alaska's Arctic National Wildlife Refuge and twice the reserves of North Dakota's Bakken shale oil deposit.

Fracking works by injecting pressurized water and some chemicals deep underground to break up rock and release oil and natural gas. Opponents to the practice have mostly centered their arguments around the idea that it could contaminate below-ground drinking water supplies and that the fossil fuels it produces will accelerate climate change.

California does not do much fracking, yet, and it is not clear how much water the oil industry uses for each well.

State figures suggest the whole industry used about as much as 300 households in 2013 - about 300 acre-feet or nearly 1 million gallons, according to the Department of Conservation.

Regulations requiring oil companies to report fracking went into place on Jan. 1, but experts believe it will continue or pick up this year.

The eastern United States has a different geology which allows horizontal drilling that can go for miles underground, using millions gallons of water during a single frack job in a process that may take days or weeks.

In California, much less water is used and the period of pressuring the reservoir rock is much shorter, Department of Conservation chief deputy director Jason Marshall said.

"Hydraulic fracturing in California uses very small amounts of water," said Dave Quast California Director for Energy Indepth, an oil industry-backed group. "However, oil producers are very sensitive to the competing demands for water resources and will make whatever adjustments are necessary to adapt to drought conditions."

Environmentalists say state figures are based on voluntary submission and not are verified. "We just don't how much water fracking has used or will use," said Zack Malitz of San Francisco-based progressive group Credo, whose group has helped organize dozens of rallies against fracking in California.

In any case, the industry would have to increase fracking and water use substantially to develop the shale oil in a significant way.

Governor Brown opposed a moratorium on fracking last year, arguing it was best for California to produce the oil it uses, and his spokesman Evan Westrup declined to comment on whether the drought had changed the governor's mind.

Environmentalists concede that getting the bill through the state legislature this year will be difficult given the wide margin it failed by in the state Assembly last year, but they plan to keep pressing the issue.

"If Governor Brown wants to be a climate leader, he is going to have to walk the walk and stop fracking in California, which would dramatically increase carbon pollution and lead to more severe droughts," said Credo's Malitz.

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A look back at the work of George Mitchell and the development of fracking

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George Mitchell is not the inventor of hydraulic fracturing but earned the fond title “father of fracking” after pioneering the economic extraction of shale gas. The method was first used in the late 1940s and it was further developed in the 1970s in cooperation with the Department of Energy. Before Mitchell’s innovation, however, no other company used the method to free natural gas from shale.

It was in 1981 when Mitchell, already one of the most influential businessmen in Texas, decided to explore for gas in an unlikely area. He had set his sights on the Barnett Shale, which was located deep under a thick layer of rock around Fort Worth. Previously, other oil and gas companies had already brought up fuel from above and below the shale. That time, Mitchell drilled into the shale and fractured it with highly pressurized fluids to free natural gas and draw it to the surface.

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Many of his peers thought that the decision to use fracking was a mistake. For Mitchell, however, it was a necessary risk because his wells in North Texas were drying up. Mitchell Energy struggled for 15 years to prove that producing reliable and economical gas was possible with fracking.

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It was only in 1997 that one of the company’s shale gas wells, which drilled in water, sand, and chemical mixture, finally established that fracking can be financially viable over the long term. That time, fracking was building momentum in resurrecting the nation’s oil and gas industry.

Today, credit is given to Mitchell, his perseverance amid 15 years of failure and his courage to look beyond common knowledge for the widespread commercial use of hydraulic fracturing.

Dr. Ali Ghalambor is the author, co-author, and editor of several books and more than 160 technical articles and manuals on hydraulic fracturing and related topics. For more articles about the development of the natural gas industry, visit this Facebook page.

The difficulty of widespread water recycling implementation in the fracking industry

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For fracking operations to continue in the future without running against much opposition, more oil and gas producing companies must also consider the environmental effects of their operations. Among the pressing issues in the industry is the heavy use of clean water that could severely deplete the supply in an area. There have been efforts to make the recycling of water used in fracking more widespread but the costs involved have discouraged many companies from implementing such measures.

Oil and gas companies can easily obtain fresh water at a low price. In some estimates, the cost is a little over one cent per gallon. Additionally, in some states like Texas, the disposal of wastewater is much cheaper than the costs of recycling. In comparison, recycling adds costs for additional processes and transport and many companies are unwilling to take those on.

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Necessity has forced many to reconsider, however. For instance, a drought in Texas has convinced more companies to consider produced wastewater as an asset rather than a liability. Meanwhile, the presence of water recyclers in oil fields is noticeably growing but there is still a long way to go before recycling becomes mainstream. With more improvements in this necessary step, what was once considered a revenue-draining requirement may be turned into an opportunity for additional profits.

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Dr. Ali Ghalambor is the author, co-author, and editor of several books and more than 160 technical articles and manuals on hydraulic fracturing and related topics. For more updates on the natural gas industry, visit this Facebook page.

A model for continued fracking operations

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If there is a model state for sustainable oil and gas drilling operations, the current bet is Wyoming. The state encourages oil and gas companies to continue with their fracking operations to extract natural gas, but requires them to do so carefully.

Without a doubt, fracking operations and harvesting natural gas lead to significant economic gains. However, as environmentalists fear, the economic boon could be offset by the dangers the method poses to the environment. Done improperly, fracking could adversely affect the clean water supply in a particular area.

For many states, the choice is between a clean environment and energy. For the energy-friendly state, however, there is a need and desire for both. Wyoming currently ranks at around fourth among states in natural gas production. How has it achieved balance?

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Recently, state legislators approved another energy production regulation issued by Wyoming. It involves one of the country’s strongest requirements for testing water wells around drilling sites to address fears of water contamination due to drilling operations. Previously, Wyoming also became the first state that required the disclosure of some of the chemicals used in the hydraulic fracturing process. It also recently implemented a measure that required drilling companies to monitor air pollutants at oil and gas production sites.

Implementing a regulation after another may give the impression that Wyoming is making operations hard for oil and gas companies. The aim, however, is to keep the oil and gas industry running smoothly.

Environmental groups are asking for more change but in comparison with other major oil and gas producing states, Wyoming is ahead with its regulations.

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Dr. Ali Ghalambor is the author of the “Well Productivity Handbook,” a reference for petroleum engineers for modeling oil and gas production wells. For more updates on the natural gas industry, visit this Twitter page.

Study disputes gas leak concern on fracking

Hydraulic fracturing, also known as fracking, is a process of extracting natural gas or oil applying pressurized fluid deep into the ground so that fractures in rocks will be formed. This process increases rock permeability, which provides pathways for natural gas or oil to move upward.

Image Source: geology.com

At a certain extent, hydraulic fracturing generates concerns and contestation within the country and around the world. Some skeptical individuals and organizations hold their ground until other alternative techniques come up.

For instance, many fear that drilling for shale gas causes huge amounts of gas leaks into the air. However, The New York Times presents a study that contests this. Conducted by the University of Texas and supported by the Environmental Defense Fund and nine petroleum companies, the study reinforces the uses and advantages of hydraulic fracturing, as advocated by several groups that stand strong on their belief that shale gas is a better energy source than coal.

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The study showed that fracking makes significantly smaller leaks of methane gas than the Environmental Protection Agency had estimated and shale gas detractors had thought. Furthermore, it stated that 99 percent of methane gas that escapes from new wells is captured through containment measures.

While the researchers of the study expect questions of objectivity, petroleum experts believe that the research and its proponents are reputable and reliable.

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The fracking debate in the UK

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The use of hydraulic fracturing to extract shale gas remains a tricky prospect to mainstream. While this is a groundbreaking (literally) manner of harvesting oil or natural gas, it is also decried as an environmental threat by concerned groups.

In the U.K., there are recent reports of this clash. Protesters are rising up against an exploratory oil drilling project at Balcombe. The worries of activists are the same: water contamination and seismic tremors, which fracking could trigger. Apart from these, environmental groups are also against the industrialization of Britain’s countryside and how the influx of industrialists and their equipment and facilities will adversely affect the communities there.

Image Source: theguardian.com

Meanwhile, British Prime Minister David Cameron has voiced his support for the technology, trumpeting potential economic benefits such as lower energy bills and the generation of more jobs. Other proponents of fracking in the U.K. look to the U.S., which demonstrated that exploiting natural gas reserves can reduce fossil fuel emissions.

Exploratory drilling for gas and oil around Britain has been on-going since 2011, but hasn’t commercially produced shale gas on-shore. Observers doubt there will be major developments within the decade. The opposition is stronger in the U.K. and there are still many details to be worked out by British lawmakers and private corporations. Without a solid agenda for how it will extract and export natural gas, the U.K. may end up missing out on the economic benefits that it has set out to attain.

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Dr. Ali Ghalambor has co-authored several books on hydraulic fracturing and well productivity. Learn more about hydraulic fracturing and how it has affected the global oil and gas market by following this Twitter page.

The 'Peak Oil' theory: Effectively rebutted?

'Peak Oil' is the theory that fossil fuel demand will reach a summit at some point in the future. As is the wont of supply and demand forces, peak demand will necessarily bring about supply shortage and steep prices. The proponents of this theory believe that worldwide peak of oil production will be reached. In the US, analysts predict the situation will arise sooner, if not for the mitigating effects of shale and natural gas production.

Image Source: priceofoil.org

David Blackmon, writer of this Forbes article thinks otherwise. He points out that as fracking activities increase with the discovery of more oil shale reservoirs in the United States, the ‘Peak Oil’ theory no longer holds. He explains that the ‘Peak Oil’ theory came into widespread acceptance in the oil and gas environment, but is now on the brink of extinction when the global market shifted interest in massive oil shale reservoirs. The rise of hydraulic fracturing has largely defused the near-apocalyptic scenario put forward by Peak Oil theorists.

Image Source: cnbc.com

The article further notes that ‘Peak Oil’ advocates have largely disregarded the role that technology plays in discovering untapped oil resources, accessing known but previously unexploitable resources, and extracting oil through secondary and tertiary recovery techniques. He also attacks the obstinacy of “Peak Oil” advocates in their belief in the fixity of oil and gas resources.

British Petroleum’s chief executive Bob Dudley could not have agreed more with this write-up when he said that the warnings that the world is headed for ‘Peak Oil’ are becoming increasingly unreasonable.
 

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Making people understand fracking

 Image Source: potomacriverkeeper.org

Hydrofracturing, or fracking as it is commonly known, is a controversial topic. Although many are skeptical about the practice, there are still those who believe that fracking is good for the country, especially since its end products are natural gas and shale gas—cheaply produced hydrocarbons that are also cleaner than traditional hydrocarbons, such as petroleum and coal. Moreover, fracking also contributes to the economy by creating hundreds of jobs. Conversely, skeptics believe that fracking is a dangerous process, wherein the fluids may trickle into underground fresh water reservoirs, which are sources of drinking water for most people.

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However, both beliefs are eclipsed by the fact that, according to a recent survey by the George Mason University Center for Climate Change, most people do not even know what fracking is.

Educating people about the pros and cons of fracking and making information about the practice readily available are important, as public opinion is crucial, especially now that there are different groups disagreeing on whether to subject a particular land to fracking or not. Furthermore, companies should be transparent with regard to the chemicals used, including the amounts, during the fracking process to help raise awareness on the advantages and disadvantages of this practice.

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REPOST: Why such hysteria over fracking?

How important is it for the regulators to continue reviewing the rules that apply to hydraulic fracturing? This Los Angeles article will help us understand the issue. 

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Is hydraulic fracturing — used for more than 60 years to produce oil and natural gas — safe?

The "safe fracking" question has been asked and answered many times over by government regulators, scientists and other technical experts, and they have concluded that hydraulic fracturing is a fundamentally safe technology. Interior secretaries and EPA heads have repeatedly said that fracking can be done, and is being done, so that it doesn't present environmental or public health problems.

That's been the case for decades, Interior Secretary Sally Jewell, a former petroleum engineer and a former president of REI, the outdoor equipment retailer, said in May. Jewell's predecessor, Ken Salazar, testified to Congress that hydraulic fracturing "has been done safely hundreds of thousands of times" and warned lawmakers against anti-fracking "hysteria."

As far back as 1995, the Environmental Protection Agency studied whether hydraulic fracturing contaminated drinking water. The EPA studied a site in Alabama at the request of environmentalists and found "no evidence" of "any contamination or endangerment of underground sources of drinking water." In 2004, the agency conducted a broader study and also found fracking "poses little or no threat" to water supplies.

In 2009, another study from the U.S. Department of Energy and the Ground Water Protection Council — an interstate body of environmental regulators — concluded that fracking is a "safe and effective" technology for producing energy from deep geological formations like California's Monterey Shale.

More recently, Stanford University geophysicist Mark Zoback, who's also served as an advisor to the Obama administration, confirmed that fluids used in hydraulic fracturing "have not contaminated any water supply," and with more than a mile of rock separating deep shale formations and shallow drinking water aquifers, "it is very unlikely they could." In California, it is worth noting, more than 80% of hydraulic fracturing occurs in parts of Kern County where there is no potable groundwater.

Anti-fracking forces respond to such good news by finding new ways to scare the public. That's why you hear more and more allegations about air quality, water use and earthquakes. On air quality, they are ignoring that California's oil and gas industry already operates under some of the world's tightest emissions controls, and such controls have worked well in states where fracking and drilling are more widespread than in California.

For example, in Colorado, regulators have reported "decreases in the levels of many organic pollutants associated with oil and gas operations" during a dramatic rise in energy production. And in Texas in recent years, regulators responded to air quality fears in the Dallas-Fort Worth area with round-the-clock monitoring, and found "no levels of concern for any chemicals" and "no immediate health concerns from air quality."

Next, activists exaggerate problems associated with water usage and wastewater disposal associated with hydraulic fracturing. In states where hydraulic fracturing is used much more frequently, and where many times as much water is used as in California, the process accounts for less than 1% of total water demand, according to the Department of Energy and the Groundwater Protection Council. In addition, wastewater can be treated and reused, minimizing both issues.

In California, we use much less water than other states because of our geology. For perspective, the amount of water used in all of the hydraulic fracturing jobs in California last year was about the same amount of water that the state's golf courses consumed in half a day.

As for earthquakes, a yearlong study released in 2012, the first of its kind in the state, at the Inglewood Oil Field in the Baldwin Hills area found "no detectable effects on vibration" — and no water or air quality problems either — from hydraulic fracturing. Perhaps that's because, as Zoback has explained, the amount of seismic energy released during hydraulic fracturing is about the same as "as a gallon of milk falling off a kitchen counter." In fact, the National Research Council concluded last year that hydraulic fracturing does not pose a high risk of inducing earthquakes. The separate process of injecting oil and gas wastewater into deep disposal wells, while it does carry some risk, has never triggered an earthquake in California.

Despite the sound bipartisan defeat of legislation that would impose a moratorium on hydraulic fracturing, some activist groups are still pressing lawmakers to ban the technology. There is no reason to impose a moratorium or ban on a technology that is fundamentally safe, will lead to more jobs and economic growth and will reduce our dependence on foreign oil.

Regulators should continue to review the rules that apply to hydraulic fracturing, and find ways to improve them to ensure that the public has the information it needs about the process. The facts clearly show that this technology can be used safely while regulatory updates are made.

Internationally renowned for his expertise and remarkable contributions, Dr. Ali Ghalambor has worked with the finest universities and organizations such as the University of Louisiana, the Tenneco Oil Company, and the United Nations.Follow this Twitter page for more updates.

Exploring the potentials of fracking

Fracking has been nothing less but controversial in the United States. There have been many people who are greatly opposed to this practice, citing that the environmental damages that it may incur can bring forth drastic changes that can impair the ecosystem as a whole. 

Image Source: guardian.co.uk

What they fail to see, however, is the other side of the coin—the many advantages that this practice may bring forth in terms of energy and economy.

First and foremost, the main reason why fracking is seen as an advantage is because the country has the natural capacity to support it. Unbeknownst to many, America is abundant in natural resources, and it is only through fracking that these may be harnessed to support the many needs and wants of men. 

Image Source: .entrepreneur.com

How much of these resources can be obtained by fracking? According to the Energy Information Agency, there’s approximately 750 cubic trillion feet of potentially recoverable shale gas in the country. This translates to approximately 24 billion barrels of shale oil for human consumption. Apart from slaking fuel demands unlocking these resources via fracking can also translate to more jobs, thus contributing to the solution in the longstanding unemployment crisis.

More than anything, this draws a clear and brighter picture of the US economy as a world leader—self-sufficient and energy independent.

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REPOST: Fracking bills flop after gusher of opposition cash, report says

Several bills on hydraulic fracturing have been opposed by the California Legislature. This Los Angeles Times article has the story.



Campaign contributions from the oil industry flooded into the California Legislature before it killed several bills that would have closely regulated the use of hydraulic fracturing, or fracking, to get oil and gas from the ground, a nonprofit group reports.

In the two years ending Dec. 31, 2012, oil companies Chevron, British Petroleum, ExxonMobil and Valero Energy contributed $464,450 to state legislators, according to MapLight, a nonprofit, nonpartisan research organization.

Of 12 bills on fracking, 10 stalled or were voted down by the deadline last month, including one, AB 1323, that would have imposed a moratorium.

Interest groups opposing AB 1323 contributed 7.1 times as much money as groups supporting it, MapLight concluded, using data from the National Institute of Money in State Politics.

State lawmakers voting against the bill received, on average, 31 times as much money from opposing groups as supporting groups, MapLight found.

It also said lawmakers who didn't vote at all received five times as much money from opposing groups as from supporting groups. All of those who withheld their votes are Democrats.

The issue is not dead for the year.

One of the bills still pending, SB 4 by Sen Fran Pavley (D-Agoura Hills), would require public notice and groundwater testing on fracking projects, but Pavley has agreed to remove from the bill a requirement for a moratorium if a study of the practice is not completed by 2015.


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Rethinking arguments against fracking

Environmentalists are clear about their opposition to fracking. It is better to ban the process entirely instead of treading into unknown territory only to end up with a mistake that could pollute other valuable resources.

Image Source: inhabitat.com

In some parts of the globe where oil supply is abundant, however, hydraulic fracturing is already widely accepted and the energy industry forges ahead without much opposition. The benefits of accepting the process with proper regulations are also becoming clearer with explorations of underground shale gas reserves underway. In using a proven method to harvest this resource, many countries have a chance at creating more jobs and increasing energy security.

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Still, it would take time before many countries can lift their moratoriums on fracking. More studies and examples would have to be presented to convince the majority that the process can be used without dire consequences for the environment.

Meanwhile, many nations are already looking at the US for models in regulating fracking. Many are worried about whether fracking can be done safely and about how such an outcome can be achieved. To answer these concerns, experts maintain that the way to reap the economic benefits of hydraulic fracturing and large-scale oil and gas production without adversely affecting the environment and the health of the people is through strict regulation which can be formulated through the cooperation of industry experts and environmental groups.

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Dr. Ali Ghalambor has previously served as the head consultant to more than 50 petroleum production and service companies. Stay abreast on the developments in the energy industry by following this Twitter page.

Fracking regulations: Balancing economic growth and environmental protection

The use of hydraulic fracturing for high-volume oil and gas production presents the nation with large opportunities that may come with dire consequences to the state of the environment.

Image Source: guardian.co.uk

For one thing, pursuing developments in this area of the energy industry could generate thousands of jobs. Meanwhile, the abundant supply of domestically produced oil and gas can be used to offer alternatives that could help them recover faster from the effects of the recession. There may also be more than enough supply, thus opening up opportunities for export.

However, those who oppose the use of fracking to produce natural gas point out that the effects of the process are still unclear. Many studies need to be conducted to determine the health and environmental impact of fracking because many fear that it could cause pollution and it may significantly deplete water resources.

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While the debate goes on, lawmakers in Illinois have gone ahead with a measure to create strict regulations for high-volume oil and gas drilling. The legislation was created through collaboration between some key players in the energy industry and an environmental group.

Strict regulations are seen as a way for the energy industry to move ahead and take advantage of the opportunity presented by the abundant supply of natural gas in several areas while taking measures to protect the environment and the health of the people.

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Dr. Ali Ghalambor is the author, co-author, and editor of several books and more than 160 technical articles and manuals that discuss various aspects of petroleum production. Find more updates on the developments in the energy industry on this Twitter page.

REPOST: U.S. oil and gas reserves up by a third, new report says

A new data says U.S. oil and gas reserves are up by about a third due to hydraulic fracturing. Neela Banerjee of Los Angeles Times has the story.

Image Source: latimes.com

WASHINGTON -- Reserves of oil and gas that can be developed using current technology are 35% greater in 2013 than in 2011, according to a new report by the Energy Information Administration, the research branch of the Energy Department.

The rise in estimated domestic reserves to 223 billion barrels of oil equivalents, which include crude oil and gas, stems in large part from the inclusion of reserves found in shale formations. Increased use of production methods such as horizontal drilling and hydraulic fracturing, or fracking, have made oil and gas trapped in tight geological formations economically recoverable.

The United States is second to Russia in the amount of technically recoverable barrels of shale oil, at 58 billion. It is fourth among countries with reserves of technically recoverable shale gas reserves, with 665 trillion cubic feet. China has the largest shale gas reserves, 1,115 trillion cubic feet.

The Energy Information Administration said “32% of the total estimated natural gas resources are in shale formations, while 10% of estimated oil resources are in shale or tight formations.”

"Today's report indicates a significant potential for international shale oil and shale gas, though the extent to which technically recoverable shale resources will prove to be economically recoverable is not yet clear," EIA Administrator Adam Sieminski said.

The data bolster predictions that the U.S. will be able to decrease imports of fossil fuels as it ramps up domestic production, including oil in North Dakota and the Eagle Ford formation in Texas and natural gas in the Marcellus shale formation in western Pennsylvania.

But the energy boom has unlocked controversy along with opportunity. Dozens of communities around the country have passed limits on fracking because of concerns about possible air and water pollution and heavy truck traffic.

Fracking involves shooting water laced with chemicals and sand deep underground to shatter rock formations and tap deposits of oil and gas. Many communities have expressed worries that the process could lead to contamination of local water resources with fracking fluid or the migration of methane and other gases and minerals into water supplies.


A leader in the oil and gas sector, Dr. Ali Ghalambor has over 35 years of industrial and academic merits. He has also provided consultation services to petroleum production and service organizations in both private and government sectors. More about Dr. Ghalambor and industry-related updates can be found on this Facebook page.

REPOST: Make sure fracking is done right

Fracking can be done safely, but rules must be in place to regulate it, says Michael Levi in this CNN.com article.

Video Source: edition.cnn.com



(CNN) -- American energy production is skyrocketing, and pundits are promising everything from millions of jobs to energy independence. All of this could be put in jeopardy, though, if we don't get serious about the accompanying risks and make sure that oil and gas development is done right.

The United States is now the world's largest producer of natural gas. Meanwhile U.S. oil production increased last year by over 300 million barrels -- its biggest jump since the industry began in 1859. There's good reason to believe that these changes have created hundreds of thousands of jobs. Meanwhile increased production of cleaner burning natural gas has helped cut U.S. greenhouse gas emissions to their lowest level in more than a decade. And while claims of looming "energy independence" are wildly over the top, there's no question that the oil and gas boom is making the country more secure in the world.

These changes are driven by a technique known as "fracking," short for hydraulic fracturing, which is being used to produce oil and gas trapped in dense shale rock.

Drillers dig down thousands of feet underground, take a sharp turn, and then bore thousands of feet further sideways. Then they pump a mix of water, sand, and chemicals into the new L-shaped well, and detonate explosives to create tiny cracks in the surrounding shale. Oil and gas flows through those cracks and eventually up to the surface where it can be collected, shipped, and sold.

The practice has raised alarm in many of the communities where it's used. People fear that their water will be contaminated by the chemicals that are used in fracking. They worry about earthquakes that have been reported near some places where disposal of water from fracking occurs. And they often bristle at how a sudden surge of workers and wealth transforms their neighborhoods overnight. These concerns have led to a moratorium on fracking in New York State, and efforts to pass similar restrictions by state and local governments elsewhere, from Colorado to Texas.

People are right to insist that fracking is done safely, but they're wrong if they conclude that it can't be. The key is to drill down on the biggest problems and require drillers to address them. The first risk has to do with water. The problem isn't so much what's pumped underground -- it's borderline impossible for fracking chemicals to seep up from thousands of feet beneath the earth and into water supplies -- but what comes back out.

When oil and gas are produced, they're accompanied by "flowback water", which contains a mix of toxic chemicals found underground. If drillers cut corners and don't dispose of that water right, it can contaminate local water supplies. Rules need to be in place -- and enforced aggressively -- to ensure that doesn't happen.

The second danger has to do with air. Some drillers power their operations using diesel; others let gas seep out from their equipment. Both practices lead to local air pollution. And while the emissions from a single well might not be big, the impact of dozens of wells operating in the same area can be bad. These problems can be fixed -- diesel generators can be replaced with equipment that uses clean-burning gas, and leaks can be plugged -- but the rules need to be right.

Perhaps the toughest challenge, though, is fitting fracking into communities that aren't used to intense industrial development. It's no surprise that concerns about fracking began to really rise in 2009, when the practice migrated from states like Texas and Louisiana, where oil and gas development is commonplace, to Pennsylvania, where oil production peaked in 1891. If local authorities do things like make sure roads are maintained, help workers get training so that they can join the oil and gas business if they want to, and protect people on pensions who often struggle with rising living costs in boom towns, everyone can win. If they don't, though, the intense fights that result between winners and losers from energy production can be paralyzing.

A lot of enthusiasts for oil and gas are hostile to new rules. They say that companies are already doing the right thing and warn that extra costs could kill the industry. It's true that many companies are ahead of the curve when it comes to social and environmental responsibility; some are even working actively with local and environmental groups to ensure that they pursue development right. But the dangers don't come from the good guys -- they come from the laggards who screw things up. Reining them in can't be done just through voluntary steps.

That makes it a relief that, while dumb regulation could indeed be crushing, smart rules would not. (By one estimate, a suite of twenty-two tough requirements, including greater disclosure of fracking fluids and tighter standards for cementing wells, would add at most 7% to the cost of a well.)

The biggest risk for fracking, and to all the benefits it brings, isn't that drillers will have to spend a bit more to make sure that oil and gas production proceeds safely. It's that they won't -- and that the resulting backlash when things inevitably go wrong will deal the U.S. power surge a far more severe blow.


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GE to invest billions in fracking improvements

In recent years, fracking has found a lucrative niche in the mineral industry, and a corporate giant is set to follow up on this trend by shelling out billions of dollars to bolster its improvement.

Image Source: mnn.com

And unexpected as this fact is to many, the corporate giant that’s decided to dabble into fracking is General Electric (GE) Co. Just recently, it has opened a new laboratory in Oklahoma, acquired related companies, and laid down a big amount for the improvement of the cutting-edge fracking science—all of which aim to improve profits for clients all while mitigating the potential health and environmental disadvantages that might accompany the boom.

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GE is not really known for drilling wells or oil production, but it has decided to put its money on this boom because it plays well into the company’s strengths. Mark Little, the company’s senior vice president, admitted that GE had nothing to do with the oil industry a little over a decade ago. But with changing times come changing game plans, and just in the past few years, it has already invested over $15 billion in the industry.

“We like the oil and gas base because we see the need for resources for a long time to come,” Little claims. “I think the world needs all of these kinds of systems.”

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Dr. Ali Ghalambor is one of the most distinguished figures in the oil and natural gas industry. For more information on his body of work, log on to this Twitter page.

REPOST: Germany drops fracking law until after September's election

Plans to regulate fracking in Germany were  postponed until after September's election. Find out the reason behind it in this Reuters.com article.

* Fracking in Germany hampered by legal uncertainty

* With environmental concerns, technology splits opinion

* Plan for national regulations scrapped for now

BERLIN, June 4 (Reuters) - The German government has suspended plans to regulate fracking until after September's election, prolonging the uncertainty that has hampered development of the gas extraction technology in Europe's biggest economy.

Hydraulic fracturing, which involves pumping water and chemicals at high pressure into the ground, is criticised by environmentalists, who warn of potential seismic effects and water pollution, and political opinion is split on whether to embrace it as a path to cheaper energy.

Angela Merkel's centre-right government had drawn up legislation laying out the conditions for exploration and imposing restrictions on where drilling could take place, but that has now been put on hold.

"The fracking law has failed," Horst Meierhofer, a member of the pro-business Free Democrats (FDP) who share power with Merkel's conservatives, told Reuters. Senior conservatives also said the plans had been put on hold.

The law was unlikely to have passed, given resistance from opposition Social Democrats (SPD) and Greens who could block it in the upper house of parliament.

Merkel, riding high in the polls, is seeking a third term in Sept. 22 elections, but it is unclear what sort of a coalition she may be able to form and it is possible she will have to join forces with parties currently in opposition.


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In defense: LNG as a domestic and export product

Various environmentalist groups are calling for a stop to all fracking operations because of the environmental risks involved, and this is likely where most of the opposition to liquefied natural gas (LNG) as a domestic and export product is coming from. Advocates of the product, however, insist that the product itself is not as unsafe as most of the public would think.




Video Source: youtube.com


Peter Micciche, manager of ConocoPhillips’ Kenai LNG Facility in Alaska, previously shared some facts about LNG that could change how the public perceives it. In his demo, he points out that LNG is less volatile than other hydrocarbon products. As such, a predominant misconception about it leading to massive explosions due to transport mishaps is unlikely to happen.

To liquefy natural gas, it needs to be cooled in a processing facility to about minus 260 degrees Fahrenheit, and then it can be transported to an insulated container. As long as the container releases pressure, the LNG is not going to explode.

Image Source: gasdetection.com

Micciche also demonstrates in the video above how safe the supercooled substance is. One demonstration, which involved pouring LNG into a fish bowl, should serve to dispel fears in transport that are linked to some major oil spills that have occurred in the past.

Meanwhile, LNG retains its appeal to oil and gas companies which are pushing for the widespread use of the product as an industrial and transport fuel. Many also see that with the abundant supply, LNG could also be pushed as an export product.

Image Source: lngworldnews.com

Dr. Ali Ghalambor has worked with more than 50 petroleum production and service companies as a top consultant for petroleum engineering matters. Find the latest developments in the natural gas industry on this Twitter page.

New rules for fracking on public lands

The US Department of the Interior has recently released an updated draft proposal for a new set of rules that would govern hydraulic fracturing for oil and gas on public lands. This update on the proposal drafted about a year ago is reported to be a part of the Obama Administration’s all-of-the-above strategy to support safe and responsible domestic energy production.

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The update on the draft proposal has kept the three main components of the proposal in 2012. Operators still need to: disclose the chemicals they use in fracturing activities on public lands, run well-bore integrity tests to make sure that the fluids used during operations don’t contaminate groundwater, and have a water management plan to ensure that fluids that flow back to the surface are handled properly.

Image Source: ecowatch.com

While the proposal is still subject to a 30-day public comment period, however, it has already drawn the ire of environmentalist groups for the allowances it gives to operators. With the new rule, operators have the option to keep some components (such as proprietary compounds) secret, and well-integrity tests can be done on a representative well instead of all wells in the field.

In light of the criticism, the Interior maintains that the new proposal ensures that best practices will be used to ensure steady development in the industry while protecting human health and the environment. And while several groups oppose the use of fracking, the fact still remains that it has been done safely for decades and that it has great potential in significantly increasing domestic resources and improving the economy.

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Dr. Ali Ghalambor has delivered numerous technical presentations on various aspects of petroleum production such as drilling, well completion, well planning, and well integrity. For more updates on policies affecting the energy industry, follow this Twitter page.

REPOST: Some in Europe Are Rethinking Opposition to Fracking

Can hydro-fracturing be done safely? This New York Times article has the story.

AUSTIN, Texas — In oil-rich parts of Texas, hydraulic fracturing has almost become a way of life. Drilling rigs and pumping equipment pepper the landscape, and enormous trucks carrying oil field supplies rumble down narrow, dusty roads.

In Europe, things could hardly be more different. Opposition to hydraulic fracturing — the process of injecting water, sand and chemicals into the earth to blast apart rock and retrieve oil or natural gas — is widespread and entrenched. Some countries, including France, ban the practice, which is also known as fracking.

“There is a head of steam up against fracking,” said Jonathan Stern, chairman of the natural gas research program at the Oxford Institute for Energy Studies in England.

In Germany, beer brewers recently urged a ban on fracking, citing concerns about groundwater contamination, according to the newspaper Bild.

Europe’s opposition is being put to the test, however, as pro-fracking forces lobby for exploring underground shale gas reserves. They argue that locally drilled natural gas can create jobs and increase energy security — a potent argument for a continent uncomfortably reliant on natural gas from Russia. Last week, a group of British business leaders, the Institute of Directors, put out a report saying that developing shale gas reserves could lead to tens of thousands of jobs.

“Shale gas could be a new North Sea for Britain,” Corin Taylor, the report’s author, said in a statement accompanying its release.

Mr. Stern noted that fracking is a long way from happening on a major scale in Europe, and some early results have not been promising. Several major international companies have scaled back their work in Poland after operations proved disappointing.

Even so, some countries are lifting their moratoriums on fracking in the hope of good results. Britain did so in December, though the prospect of exploratory drilling has brought protests. Romania also recently lifted its moratorium, and the gas-rich Netherlands will decide soon about whether to do the same.

Dutch politicians are awaiting the results of an independent study on shale gas that is due to be released this summer. Then the country will re-evaluate its moratorium, according to Bart Visser, a spokesman for the minister of economic affairs.

The study is about whether or not to allow test drilling in shale rock, Coby van der Linde, director of the Clingendael International Energy Program in the Hague, said in an e-mail. It will also determine the conditions under which the shale gas could be produced, she said.

At least one key political group is on the fence, according to Ms. Van der Linde. And the Dutch pro-environment party GroenLinks is firmly opposed to fracking.

“Whether or not it is an independent inquiry remains to be seen,” said Liesbeth van Tongeren, a member of Parliament and spokeswoman for GroenLinks on energy issues. She expressed concerns about water, truck traffic and fracking’s effect on the climate.

Groups with “dollar signs in their eyes” are promoting fracking, she said.

Some guidance on fracking may also be forthcoming on the European Union level. By the end of the year, the European Commission will craft a shale gas initiative that could lead to a risk-management strategy for fracking. A meeting in Brussels is being held on this issue next week.

As Europe makes its decisions on fracking, some are looking to the United States for ideas about the regulation of fracking. Each state in the United States generally has its own approach, slightly different from the others, and national regulations, applying to federally owned lands, are still being formulated.

John Tintera, former executive director of the Railroad Commission of Texas, the curiously named agency that regulates drilling in the leading oil-producing state, said he had been to Romania twice already to discuss fracking, and would soon go to Ukraine and perhaps Turkey.

When talking to Europeans, “the first thing they want to know is, can hydro-fracturing be done safely?” said Mr. Tintera, who is now a partner at Sebree & Tintera, an energy consulting firm based in Texas. “The second thing they want to know is, how do you ensure that?”

The answers, Mr. Tintera said, are that fracking can be done safely and that a comprehensive regulatory framework is necessary. Such regulation includes “boots in the field,” or trained inspectors, he said.

Mr. Stern, of the Oxford Institute for Energy Studies, said that Europe had “massively overhyped” both the downsides and the upsides of fracking and shale gas exploration. Europeans hold a bifurcated view of what has happened in the United States, he said: Some Europeans admire the U.S. fracking successes and believe that Europe should follow its example, perhaps with additional caution. In others’ minds, fracking in the United States has “all been a big disaster.”

Asked to predict the future of fracking in Europe, Mr. Stern forecast that in five years’ time, a few countries would be producing “very modest amounts of shale gas.” Those countries might be Poland, Britain and perhaps Romania or Bulgaria.

But “if there are any environmental problems, the whole thing will stop and not restart,” he said.

Dr. Ali Ghalambor is the former Director of the Energy Institute at the University of Louisiana and Head of the Department of Petroleum Engineering. See this Twitter page for more updates on the oil and gas industry.