Original Story: wkms.org
The energy that lights up, turns on, cools and heats our lives leaves a trail of waste. Natural gas is no exception. The waste from the gas drilling known as “fracking” is often radioactive. The gas industry produces thousands of tons of this “hot” waste and companies and state regulators throughout the Ohio River valley and Marcellus Shale gas region struggle to find safe ways to get rid of it. One option to consider is chemical holding tanks.
Last August a convoy of trucks carrying a concentrated form of this waste traveled from northern West Virginia to Irvine, Kentucky. The small town in Estill County lies near the Kentucky River, where Appalachian hills give way to rolling farm country.
The trucks were headed for a municipal waste facility called Blue Ridge Landfill. Just across Highway 89 from the landfill is the home where Denny and Vivian Smith live on property where their ancestors have lived since the 1800s. This may need a Tulsa Environmental Lawyer to sort things out.
“This is our home place,” Vivian Smith said from her sun porch. “This is roots for us.”
From their sun porch, facing east, the Smiths can see the entrance to Blue Ridge Landfill. From their front door, facing west, they can see Estill County High School and Estill County Middle School, with a combined enrollment of about 1,200 students.
The trucks that arrived in Irvine last summer left more than 400 tons of low-level radioactive waste in a facility that was not engineered or permitted to accept that sort of material. That has left the community, the parents of schoolchildren, and especially the Smiths with a lot of questions and concerns. -- “We are getting older and we feel like we’re kind of vulnerable to illnesses with what’s going on at the landfill,” Vivian Smith said. A South Jersey Environmental Lawyer is watching the case closely.
The question now reverberating through Irvine and the state agencies investigating the incident: How did this happen?
The answer, in part, lies in the weak federal oversight and patchwork of state regulations regarding this type of waste.
A report from the Center for Public Integrity calls the radioactive waste stream from horizontal oil and gas operations “orphan waste” because no single government agency is fully managing it. Each state is left to figure out its own plan. Ohio, for example, hasn’t formalized waste rules, while New York, which banned fracking, still allows waste disposal “with little oversight,” according to the Center.
Antero Resources petroleum engineer Tom Waltz points to eight, green, 16,000-gallon above-ground storage tanks at the edge of a drilling pad in Doddridge County, West Virginia.
“They hold produced water that the producing wells make,” he explained.
Produced water is one form of drilling waste. It’s salty water laced with chemicals, metals, and naturally occurring radioactive elements that come up thousands of feet along with the gas and oil. Antero is the country’s eighth-largest gas drilling company and operates hundreds of sites like this, producing hundreds of thousands of barrels of waste.
The easiest way to get rid of wastewater is to inject it back into the ground, but that can lead to pollution and even earthquakes. One of Antero’s lead civil engineers, Conrad Baston, says processing the wastewater – separating it into salt, sludge, and water – is becoming more attractive.
No Easy Solutions
Antero is spending $275 million to construct a wastewater facility in West Virginia which is scheduled to begin operation in September, 2017. At its peak, the facility could see up to 600 trucks a day, processing 60,000 barrels of wastewater.
A filtering system would recover about two-thirds of the water, which could be reused in drilling. But that filtration system leaves behind thousands of tons of salt and hundreds of tons of sludge from the sediment, which concentrates the radioactive materials. Baston said that sludge — as much as 180 tons a day — will be disposed of elsewhere.
“Given some of the flux in the regulatory environment with regard to those sludges,” he said, “we’ve elected to take those sludges to a landfill that’s currently licensed to accept it.”
Baston couldn’t say which facilities or where, but he said Antero is exploring options across the country. West Virginia’s Department of Environmental Protection said no approved facilities exist in the state. That would mean the waste will have to cross state lines. An Antero spokesperson said waste from their facility will go only to approved and vetted landfills.
The Center for Public Integrity report shows that regulators acknowledge that this waste is effectively being “shopped around” by companies hoping for affordable disposal. Antero officials maintain that industry has no other choice. A Denver Environmental Litigation Lawyer says this step is critical.
Records filed with the West Virginia Bureau for Public Health show that a company Antero had contracted with to process its wastewater, Fairmont Brine, was the source of the waste that wound up in Blue Ridge Landfill in Irvine, Kentucky. Antero officials said their company is not responsible for how that waste was disposed of. Officials at Fairmont Brine did not respond to requests to comment for this story.
Waiting for Answers
Since reporters at the Louisville Courier-Journal first reported on the improper dumping of fracking waste in Kentucky, community leaders in Irvine have been asking for answers. The landfill is under investigation by multiple state agencies for accepting the waste.
“Knowing that there was nothing going on to protect us,” Vivian Smith said, “I think it’s like the henhouse was not guarded and the fox got in.”
The Smiths have had their share of illnesses and they wonder what effect the radioactive waste might have on them or on the children who attend school nearby. This low-level radioactive waste is not as hazardous as the wastes from nuclear power. But according the the Environmental Protection Agency, the radioactive materials in drilling waste do present risks. Radioactive dust is potentially harmful and it would be bad if the radioactive leachate, or liquid that oozes out from the landfill, were to contaminate groundwater over time. Radioactive waste can last centuries — far longer than the engineered lifespan of the liners in many landfills. A San Antonio Environmental Lawyer may need to be contacted.
Officials with Blue Ridge Landfill’s parent company, Advanced Disposal, declined to comment while under investigation. The Smiths hope that investigation will shed light on any risks they might be living with because of the hot mess left next door.
Showing posts with label fracking. Show all posts
Showing posts with label fracking. Show all posts
Wednesday, June 22, 2016
Friday, April 25, 2014
MAJOR OIL, GAS FIRM TO LIST FRACKING CHEMICALS
Original Story: USAToday.com
PITTSBURGH (AP) — A major supplier to the oil and gas industry says it will begin disclosing 100% of the chemicals used in hydraulic fracturing fluid, with no exemptions for trade secrets. The move by Baker Hughes of Houston is a shift for a major firm; it's unclear if others will follow suit.
The oil and gas industry has said the fracking chemicals are disclosed at tens of thousands of wells, but environmental and health groups and government regulators say a loophole that allows companies to hide chemical "trade secrets" has been a major problem.
A statement on the Baker Hughes website said the company believes it's possible to disclose 100% "of the chemical ingredients we use in hydraulic fracturing fluids without compromising our formulations," to increase public trust.
"This really good news. It's a step in the right direction," said Dr. Bernard Goldstein, the former dean of the University of Pittsburgh Graduate School of Public Health. "One hopes that the entire industry goes along with it."
But Goldstein noted one "major hedge" in the Baker Hughes position, since the company said it will provide complete lists of the products and chemical ingredients used in frack fluids "where accepted by our customers and relevant governmental authorities."
Still, Goldstein said the Baker Hughes language sets a new standard for transparency and "clearly distinguishes them from Halliburton," another major industry supplier.
Baker Hughes spokeswoman Melanie Kania wrote in an email that it will take "several months" for the new policy to take effect. She said the end result will be a "single list" that provides "all the chemical constituents" for frack fluids, with no trade secrets.
Amy Mall, a policy analyst for the Natural Resources Defense Council, said the Baker Hughes move is a positive step, and that "if one company can do it, it's very clear all companies can do it." Mall said NRDC doesn't believe companies should use the trade secret argument to hide drilling chemicals.
A spokeswoman for Houston-based Halliburton, another major oil and gas supplier, did not immediately respond to requests for comment.
A boom in drilling has led to tens of thousands of new wells being drilled in recent years using the fracking process. A mix of water, sand and chemicals is forced into deep underground formations to break rock apart and free oil and gas. That's led to major economic benefits but also fears that the chemicals used in the process could spread to water supplies.
The mix of chemicals varies by company and region — and some of the chemicals are toxic and could cause health problems in significant doses — so the lack of full transparency has worried landowners and public health experts.
Many companies voluntarily disclose the contents of their fracking fluids through FracFocus.org, a website partially funded by the oil and gas industry that tracks fracking operations nationwide. But critics say the website has loose reporting standards and allows companies to avoid disclosure by declaring certain chemicals as trade secrets.
An Energy Department task force report issued in March that found that 84% of the wells registered on FracFocus invoked a trade secret exemption for at least one chemical. The Task Force said it "favors full disclosure of all known constituents added to fracturing fluid with few, if any exceptions."
The FracFocus website is managed by the Ground Water Protection Council and Interstate Oil and Gas Compact Commission, both based in Oklahoma, and is funded by industry and the Energy Department.
Gerry Baker of the Oil and Gas Compact said he doesn't know of any other major supplier that has made a pledge similar to the one from Baker Hughes.
"It's a business decision on their part," Baker said. "Somehow, they've committed to this at the highest levels" of disclosure.
The Interior Department is expected to finalize proposed regulation for hydraulic fracturing on public lands by the end of the year. The measure would apply to some 700 million acres of federal lands and 56 million acres of lands controlled by federally recognized Indian tribes.
The rule proposed last year would require companies drilling for oil and natural gas to disclose chemicals used in fracking operations. The information would be made public.
The DOE said 25 states now mandate public disclosure of the chemicals used in hydraulic fracturing, including 15 that use FracFocus as a reporting tool.
Industry groups oppose the disclosure rule, saying it would be costly for businesses, with little environmental or safety benefit. The American Petroleum Institute, the oil industry's top lobbying group, has praised the efforts of states to adopt the FracFocus database for disclosing chemicals, but has said additional federal regulations could jeopardize economic growth.
Asked about the Baker Hughes plan, API spokesman Zachary Cikanek said in an email that they "also welcome additional efforts by individual companies to increase public engagement and transparency."
PITTSBURGH (AP) — A major supplier to the oil and gas industry says it will begin disclosing 100% of the chemicals used in hydraulic fracturing fluid, with no exemptions for trade secrets. The move by Baker Hughes of Houston is a shift for a major firm; it's unclear if others will follow suit.
The oil and gas industry has said the fracking chemicals are disclosed at tens of thousands of wells, but environmental and health groups and government regulators say a loophole that allows companies to hide chemical "trade secrets" has been a major problem.
A statement on the Baker Hughes website said the company believes it's possible to disclose 100% "of the chemical ingredients we use in hydraulic fracturing fluids without compromising our formulations," to increase public trust.
"This really good news. It's a step in the right direction," said Dr. Bernard Goldstein, the former dean of the University of Pittsburgh Graduate School of Public Health. "One hopes that the entire industry goes along with it."
But Goldstein noted one "major hedge" in the Baker Hughes position, since the company said it will provide complete lists of the products and chemical ingredients used in frack fluids "where accepted by our customers and relevant governmental authorities."
Still, Goldstein said the Baker Hughes language sets a new standard for transparency and "clearly distinguishes them from Halliburton," another major industry supplier.
Baker Hughes spokeswoman Melanie Kania wrote in an email that it will take "several months" for the new policy to take effect. She said the end result will be a "single list" that provides "all the chemical constituents" for frack fluids, with no trade secrets.
Amy Mall, a policy analyst for the Natural Resources Defense Council, said the Baker Hughes move is a positive step, and that "if one company can do it, it's very clear all companies can do it." Mall said NRDC doesn't believe companies should use the trade secret argument to hide drilling chemicals.
A spokeswoman for Houston-based Halliburton, another major oil and gas supplier, did not immediately respond to requests for comment.
A boom in drilling has led to tens of thousands of new wells being drilled in recent years using the fracking process. A mix of water, sand and chemicals is forced into deep underground formations to break rock apart and free oil and gas. That's led to major economic benefits but also fears that the chemicals used in the process could spread to water supplies.
The mix of chemicals varies by company and region — and some of the chemicals are toxic and could cause health problems in significant doses — so the lack of full transparency has worried landowners and public health experts.
Many companies voluntarily disclose the contents of their fracking fluids through FracFocus.org, a website partially funded by the oil and gas industry that tracks fracking operations nationwide. But critics say the website has loose reporting standards and allows companies to avoid disclosure by declaring certain chemicals as trade secrets.
An Energy Department task force report issued in March that found that 84% of the wells registered on FracFocus invoked a trade secret exemption for at least one chemical. The Task Force said it "favors full disclosure of all known constituents added to fracturing fluid with few, if any exceptions."
The FracFocus website is managed by the Ground Water Protection Council and Interstate Oil and Gas Compact Commission, both based in Oklahoma, and is funded by industry and the Energy Department.
Gerry Baker of the Oil and Gas Compact said he doesn't know of any other major supplier that has made a pledge similar to the one from Baker Hughes.
"It's a business decision on their part," Baker said. "Somehow, they've committed to this at the highest levels" of disclosure.
The Interior Department is expected to finalize proposed regulation for hydraulic fracturing on public lands by the end of the year. The measure would apply to some 700 million acres of federal lands and 56 million acres of lands controlled by federally recognized Indian tribes.
The rule proposed last year would require companies drilling for oil and natural gas to disclose chemicals used in fracking operations. The information would be made public.
The DOE said 25 states now mandate public disclosure of the chemicals used in hydraulic fracturing, including 15 that use FracFocus as a reporting tool.
Industry groups oppose the disclosure rule, saying it would be costly for businesses, with little environmental or safety benefit. The American Petroleum Institute, the oil industry's top lobbying group, has praised the efforts of states to adopt the FracFocus database for disclosing chemicals, but has said additional federal regulations could jeopardize economic growth.
Asked about the Baker Hughes plan, API spokesman Zachary Cikanek said in an email that they "also welcome additional efforts by individual companies to increase public engagement and transparency."
Tuesday, February 12, 2013
Fracking Resolution Opposed
Story first appeared on Medina Gazette -
Business leaders spoke out against a proposed anti-fracking resolution at Monday night’s City Council meeting.
Michael Baach, president and CEO of Philpott Rubber, urged Council to reconsider the resolution, which would put the city on record opposing state laws regulating hydraulic fracturing, better known as “fracking,” throughout Ohio.
The resolution cites concerns over chemicals used in the fracturing process and the infringement of the city’s home rule authority by the state.
Baach said his company is concerned about the resolution because one of Philpott’s subsidiaries is Petco, which creates one of the chemical solutions used in the wells.
Baach said he feared the resolution might deter companies that supply hydraulic fracturing products from moving or keeping their operations in Brunswick.
“We’re here, we’re loyal and we’re a part of the community,” Baach told the Council. “The publicity (passage of the resolution would bring) would put a huge burden on us.”
Baach said Philpott will be celebrating 125 years in business this year. Petco, which was started in 2012, now comprises 25 percent of his total business.
He said the products he manufactures are safe, and he thinks Brunswick’s industrial parks could be a key location for other businesses related to hydraulic fracturing.
Baach said the resolution would send the wrong message.
“Anti-anything can be received as anti-everything if you’re not careful,” he said.
While the geology of rock formations doesn’t favor drilling in Medina County, Baach said Brunswick is an ideal location for suppliers of companies drilling in eastern Ohio, such as Carroll County.
Drilling work in eastern Ohio has driven demand for every service up in areas closest to the wells, he said.
Hotel costs have skyrocketed along with local property values.
But Brunswick is close enough to support drilling work.
“I’d be putting up billboards advertising our location,” Baach said.
Ken Schlick of the Brunswick Chamber of Commerce, joined Baach in opposing the resolution, saying it might damage Brunswick’s image as a friendly place for business.
Mike Chadsey, of Energy In Depth Ohio Campaign, said he represents oil and gas companies throughout Ohio and offered Council members the opportunity to visit well sites and ask questions.
One resident addressed Council in support of the resolution.
Richard Prospal said he had serious concerns about the safety of the water supply and said the industry’s term “brine water” used to describe the solution injected into hydraulic fracturing wells was deceiving and could include other chemicals not disclosed by well operators.
“I think preservation of our water supply is tantamount,” Prospal said. “I support the resolution on the books.”
Council took no action on the resolution, saying more time was needed before making a decision.
The ordinance initially was proposed by Councilwoman Pat Hanek, at large.
She was joined by several other Council members who said they would support the ordinance.
In other action Monday, members approved amending a contract between Zaremba and Associates and the city until May 26 to provide more time to negotiate how to transfer Zaremba’s 67 lots in Brunswick Lakes to Drees homes.
City Law Director Ken Fisher said the timeline for repaying the debt to the city would stay the same.
Zaremba owes $394,090 that was supposed to be repaid to the city when he developed the lots.
Council’s Committee-of-the-Whole also agreed to put a request from Giant Eagle for a 922-square-foot extension of its cafe restaurant on Council’s agenda.
The proposal was given a first reading. A final vote was expected after the extension goes before the city Planning Commission.
Business leaders spoke out against a proposed anti-fracking resolution at Monday night’s City Council meeting.
Michael Baach, president and CEO of Philpott Rubber, urged Council to reconsider the resolution, which would put the city on record opposing state laws regulating hydraulic fracturing, better known as “fracking,” throughout Ohio.
The resolution cites concerns over chemicals used in the fracturing process and the infringement of the city’s home rule authority by the state.
Baach said his company is concerned about the resolution because one of Philpott’s subsidiaries is Petco, which creates one of the chemical solutions used in the wells.
Baach said he feared the resolution might deter companies that supply hydraulic fracturing products from moving or keeping their operations in Brunswick.
“We’re here, we’re loyal and we’re a part of the community,” Baach told the Council. “The publicity (passage of the resolution would bring) would put a huge burden on us.”
Baach said Philpott will be celebrating 125 years in business this year. Petco, which was started in 2012, now comprises 25 percent of his total business.
He said the products he manufactures are safe, and he thinks Brunswick’s industrial parks could be a key location for other businesses related to hydraulic fracturing.
Baach said the resolution would send the wrong message.
“Anti-anything can be received as anti-everything if you’re not careful,” he said.
While the geology of rock formations doesn’t favor drilling in Medina County, Baach said Brunswick is an ideal location for suppliers of companies drilling in eastern Ohio, such as Carroll County.
Drilling work in eastern Ohio has driven demand for every service up in areas closest to the wells, he said.
Hotel costs have skyrocketed along with local property values.
But Brunswick is close enough to support drilling work.
“I’d be putting up billboards advertising our location,” Baach said.
Ken Schlick of the Brunswick Chamber of Commerce, joined Baach in opposing the resolution, saying it might damage Brunswick’s image as a friendly place for business.
Mike Chadsey, of Energy In Depth Ohio Campaign, said he represents oil and gas companies throughout Ohio and offered Council members the opportunity to visit well sites and ask questions.
One resident addressed Council in support of the resolution.
Richard Prospal said he had serious concerns about the safety of the water supply and said the industry’s term “brine water” used to describe the solution injected into hydraulic fracturing wells was deceiving and could include other chemicals not disclosed by well operators.
“I think preservation of our water supply is tantamount,” Prospal said. “I support the resolution on the books.”
Council took no action on the resolution, saying more time was needed before making a decision.
The ordinance initially was proposed by Councilwoman Pat Hanek, at large.
She was joined by several other Council members who said they would support the ordinance.
In other action Monday, members approved amending a contract between Zaremba and Associates and the city until May 26 to provide more time to negotiate how to transfer Zaremba’s 67 lots in Brunswick Lakes to Drees homes.
City Law Director Ken Fisher said the timeline for repaying the debt to the city would stay the same.
Zaremba owes $394,090 that was supposed to be repaid to the city when he developed the lots.
Council’s Committee-of-the-Whole also agreed to put a request from Giant Eagle for a 922-square-foot extension of its cafe restaurant on Council’s agenda.
The proposal was given a first reading. A final vote was expected after the extension goes before the city Planning Commission.
Friday, February 8, 2013
The U.S. Shale Gas Revolution
Story first appeared on Fox Business News -
The United States is enjoying an energy bonanza thanks to shale gas, making it a magnet for industry, reducing import dependence and challenging Europe as it battles to dig itself out of recession, energy officials say.
Panelists at a weekend security conference in Munich warned Europe must develop a strategy on how to tap its own resources in order to keep energy costs competitive, or risk seeing power-intensive industries locate elsewhere.
"The shale gas and oil boom is already underway. As Europe continues to debate it, North America is reaping the advantages," said Jorma Ollila, Chairman of Royal Dutch Shell .
Just a week ago Shell signed a $10 billion shale gas deal with Ukraine - the biggest contract yet in Europe - which could help Ukraine ease its reliance on Russian gas imports.
Ukraine is said to have Europe's third-largest shale gas reserves at 42 trillion cubic feet (1.2 trillion cubic meters), according to the U.S. Energy Information Administration.
Its reserves are dwarfed by those of France however, estimated to be Europe's largest at 180 trillion cubic feet.
France has banned the procedure, known as fracking which is used to extract shale gas and which involves pumping vast quantities of water and chemicals at high pressure through drill holes to prop open shale rocks.
Environmentalists fear it could increase seismic risks and pollute drinking water. U.S. officials question this and say that thanks to the higher proportion of gas use the United States has had its lowest carbon dioxide emissions in 20 years.
"Observing this from across the Atlantic it is really quite remarkable that there should be a ban or a go-slow on this development in Europe, really without any facts," said Daniel Yergin, Vice-Chairman of IHS Cambridge Energy Research.
Fracking is used to produce a third of U.S. natural gas he said, showing the environmental impact can be managed.
SHALE SCRAMBLE
World energy market flows already reflect North America's scramble to exploit shale oil and gas and highlight the potential prize Europe is ignoring.
"The U.S. internal energy revolution and the radical increases in production of oil and gas have boosted gas production by 25 percent and seen oil import dependence drop from 60 percent to 40 percent, and expected to decline further to 30 percent," said Carlos Pascual, the U.S. special envoy for energy affairs.
While Europe retains deep environmental concerns it also acknowledges that with the price of gas in the United States just a third of that in Germany, its industry is already suffering the effects.
German Economy Minister Philipp Roesler said: "Many German firms have opted for (relocation to) the United States, saying energy prices were the decisive factor...We are already seeing that we are suffering with our higher energy prices it affects our own competiveness."
Addressing the panel in Munich European Union Commissioner Guenther Oettinger said Europe should be in a position to produce enough shale gas to replace its depleting conventional gas reserves, so as not to become more dependent on imports.
RUSSIA UNAFRAID
A greater abundance of gas could threaten the dominance of Russia's gas exports and pressure prices. The United States seized Russia's spot as the world's largest gas producer in 2012, and is due to produce significantly more from 2015.
"I believe that the shale revolution is something positive, a chance for all of us to launch technologies, intensify competitiveness, make our countries more energy secure, and reduce costs," said Russian Energy Minister Alexander Novak.
Russia is focusing on boosting exports to energy-hungry Asia and developing infrastructure to transport gas eastwards.
A recent confidential study by the German intelligence agency (BND) suggested the United States could turn from being the world's greatest energy importer into an oil and gas exporter by 2020, reducing its dependence on the Middle East and thereby giving it much more freedom in policy making.
China by contrast would become much more dependent on Middle East oil to fuel its rapid expansion.
Illustrating just how rapidly the shale revolution has taken hold, shale gas accounted for just 1 percent of gas production in 2005, whereas today it is a third, and by 2040 it will be 50 percent, U.S. special envoy Pascual said.
"Developing a greater capacity to reduce import dependence does not diminish our commitment to stability," he stressed.
"It will not affect our engagement for global security, peace and security in the Middle East."
The United States is enjoying an energy bonanza thanks to shale gas, making it a magnet for industry, reducing import dependence and challenging Europe as it battles to dig itself out of recession, energy officials say.
Panelists at a weekend security conference in Munich warned Europe must develop a strategy on how to tap its own resources in order to keep energy costs competitive, or risk seeing power-intensive industries locate elsewhere.
"The shale gas and oil boom is already underway. As Europe continues to debate it, North America is reaping the advantages," said Jorma Ollila, Chairman of Royal Dutch Shell .
Just a week ago Shell signed a $10 billion shale gas deal with Ukraine - the biggest contract yet in Europe - which could help Ukraine ease its reliance on Russian gas imports.
Ukraine is said to have Europe's third-largest shale gas reserves at 42 trillion cubic feet (1.2 trillion cubic meters), according to the U.S. Energy Information Administration.
Its reserves are dwarfed by those of France however, estimated to be Europe's largest at 180 trillion cubic feet.
France has banned the procedure, known as fracking which is used to extract shale gas and which involves pumping vast quantities of water and chemicals at high pressure through drill holes to prop open shale rocks.
Environmentalists fear it could increase seismic risks and pollute drinking water. U.S. officials question this and say that thanks to the higher proportion of gas use the United States has had its lowest carbon dioxide emissions in 20 years.
"Observing this from across the Atlantic it is really quite remarkable that there should be a ban or a go-slow on this development in Europe, really without any facts," said Daniel Yergin, Vice-Chairman of IHS Cambridge Energy Research.
Fracking is used to produce a third of U.S. natural gas he said, showing the environmental impact can be managed.
SHALE SCRAMBLE
World energy market flows already reflect North America's scramble to exploit shale oil and gas and highlight the potential prize Europe is ignoring.
"The U.S. internal energy revolution and the radical increases in production of oil and gas have boosted gas production by 25 percent and seen oil import dependence drop from 60 percent to 40 percent, and expected to decline further to 30 percent," said Carlos Pascual, the U.S. special envoy for energy affairs.
While Europe retains deep environmental concerns it also acknowledges that with the price of gas in the United States just a third of that in Germany, its industry is already suffering the effects.
German Economy Minister Philipp Roesler said: "Many German firms have opted for (relocation to) the United States, saying energy prices were the decisive factor...We are already seeing that we are suffering with our higher energy prices it affects our own competiveness."
Addressing the panel in Munich European Union Commissioner Guenther Oettinger said Europe should be in a position to produce enough shale gas to replace its depleting conventional gas reserves, so as not to become more dependent on imports.
RUSSIA UNAFRAID
A greater abundance of gas could threaten the dominance of Russia's gas exports and pressure prices. The United States seized Russia's spot as the world's largest gas producer in 2012, and is due to produce significantly more from 2015.
"I believe that the shale revolution is something positive, a chance for all of us to launch technologies, intensify competitiveness, make our countries more energy secure, and reduce costs," said Russian Energy Minister Alexander Novak.
Russia is focusing on boosting exports to energy-hungry Asia and developing infrastructure to transport gas eastwards.
A recent confidential study by the German intelligence agency (BND) suggested the United States could turn from being the world's greatest energy importer into an oil and gas exporter by 2020, reducing its dependence on the Middle East and thereby giving it much more freedom in policy making.
China by contrast would become much more dependent on Middle East oil to fuel its rapid expansion.
Illustrating just how rapidly the shale revolution has taken hold, shale gas accounted for just 1 percent of gas production in 2005, whereas today it is a third, and by 2040 it will be 50 percent, U.S. special envoy Pascual said.
"Developing a greater capacity to reduce import dependence does not diminish our commitment to stability," he stressed.
"It will not affect our engagement for global security, peace and security in the Middle East."
Tuesday, May 29, 2012
Shale Gas Boom at Risk
Story first appeared in The Wall Street Journal.
Global exploitation of shale gas reserves could transform the world's energy supply by lowering prices, improving security and curbing carbon dioxide emissions, but the industry might be stopped in its tracks if it doesn't work harder to resolve environmental concerns, the International Energy Agency said Tuesday.
The IEA's report shows how the shale gas industry, which has already dramatically altered the energy landscape in the U.S., stands at a tipping point.
If the social and environmental impacts aren't addressed properly, there is a very real possibility that public opposition will halt the unconventional gas revolution in its tracks, according to Natural Gas Expert Witnesses.
The industry can win public support if it follows a set of "golden rules," including the careful choice of drilling sites to avoid earth tremors, using the highest standards of well design to avoid groundwater contamination, properly disposing of waste water and eliminating emissions of polluting gases from the well head, the IEA said.
For companies involved in the industry, this is an immediate issue that could have global implications. Adopting the rules would only add around 7% to operating costs.
Shale gas has only recently become a major energy source as a process called hydraulic fracturing, which releases gas from impermeable rock, has become more widespread. It has produced a natural gas boom in the U.S., driving prices to 10-year lows, but is only beginning to spread elsewhere.
But opposition is significant, particularly in Europe, from groups concerned about the risks of water contamination, earth tremors or the release of greenhouse gases. Hydraulic fracturing has been banned in France and Bulgaria and temporarily halted in the U.K.
Environmental group Greenpeace, which opposes all exploitation of unconventional gas reserves, criticized the IEA for failing to propose specific procedures for preventing many of the environmental hazards.
But the head of sustainability at the £142 billion ($222.7 billion) asset manager Scottish Widows Investment Partnership and a past critic of the shale gas industry, said the IEA's recommendations would make a big difference if widely adopted.
If its blueprint is followed, the IEA said that between 2010 and 2035 natural gas could be by far the fastest growing fuel, with consumption increasing by 50% to overtake coal as the second largest source of energy.
Countries that were net importers of natural gas in 2010 are likely to be the biggest winners as they increase domestic energy production, while natural gas prices would be around 30% lower in most major markets, the IEA said.
However, if lack of public acceptance stifles the industry at an early stage, global emissions of carbon dioxide would actually be 1.3% higher as coal would make up a greater share of global energy supplies, it said.
The IEA doesn't have any powers to enforce its recommendations on shale gas drilling, and it will be up to the governments of each country to determine how to regulate the industry, said Ms. Van der Hoeven.
Leaders of the Group of Eight leading nations agreed earlier this month to review the IEA's recommendations.
Global exploitation of shale gas reserves could transform the world's energy supply by lowering prices, improving security and curbing carbon dioxide emissions, but the industry might be stopped in its tracks if it doesn't work harder to resolve environmental concerns, the International Energy Agency said Tuesday.
The IEA's report shows how the shale gas industry, which has already dramatically altered the energy landscape in the U.S., stands at a tipping point.
If the social and environmental impacts aren't addressed properly, there is a very real possibility that public opposition will halt the unconventional gas revolution in its tracks, according to Natural Gas Expert Witnesses.
The industry can win public support if it follows a set of "golden rules," including the careful choice of drilling sites to avoid earth tremors, using the highest standards of well design to avoid groundwater contamination, properly disposing of waste water and eliminating emissions of polluting gases from the well head, the IEA said.
For companies involved in the industry, this is an immediate issue that could have global implications. Adopting the rules would only add around 7% to operating costs.
Shale gas has only recently become a major energy source as a process called hydraulic fracturing, which releases gas from impermeable rock, has become more widespread. It has produced a natural gas boom in the U.S., driving prices to 10-year lows, but is only beginning to spread elsewhere.
But opposition is significant, particularly in Europe, from groups concerned about the risks of water contamination, earth tremors or the release of greenhouse gases. Hydraulic fracturing has been banned in France and Bulgaria and temporarily halted in the U.K.
Environmental group Greenpeace, which opposes all exploitation of unconventional gas reserves, criticized the IEA for failing to propose specific procedures for preventing many of the environmental hazards.
But the head of sustainability at the £142 billion ($222.7 billion) asset manager Scottish Widows Investment Partnership and a past critic of the shale gas industry, said the IEA's recommendations would make a big difference if widely adopted.
If its blueprint is followed, the IEA said that between 2010 and 2035 natural gas could be by far the fastest growing fuel, with consumption increasing by 50% to overtake coal as the second largest source of energy.
Countries that were net importers of natural gas in 2010 are likely to be the biggest winners as they increase domestic energy production, while natural gas prices would be around 30% lower in most major markets, the IEA said.
However, if lack of public acceptance stifles the industry at an early stage, global emissions of carbon dioxide would actually be 1.3% higher as coal would make up a greater share of global energy supplies, it said.
The IEA doesn't have any powers to enforce its recommendations on shale gas drilling, and it will be up to the governments of each country to determine how to regulate the industry, said Ms. Van der Hoeven.
Leaders of the Group of Eight leading nations agreed earlier this month to review the IEA's recommendations.
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