Saturday, June 6, 2009

Hydraulic Fracturing To Produce Shale Gas

http://all-llc.com/shale/GWPCMarcellusFinal.pdf
Federal Regulation of Hydraulic Fracturing?
June 6, 2009 Reuters

Two members of Congress are working on a bill that would give the federal government regulatory authority over hydraulic fracturing. They are motivated by a concern for ground water protection. Drillers are concerned that new federal regulations will cause permitting delays and increased costs.

Federal Government Regulation of Fracing Shale Gas Wells?

This is an issue worth following. I imagine the average person can be quite alarmed at the idea of an oil and gas company pumping enough water and chemicals into the Earth to fracture rocks enough to produce oil and gas. This technique is referred to in the industry as "fracing" and it is a common practice, but as its use spreads more people are becoming aware of it.

The question here is do we really need Federal regulation of the process of fracing? The states already regulate this activity and it has not been a problem. Why is there this sudden concern now? Is it part of a larger overall plan to hamper oil and gas production? Aren't we trying to limit our dependence on foreign oil and gas?
Peter

House Natural Resources Committee hearing testimony on shale gas drilling today

9:01 AM Thu, Jun 04, 2009
Dave Michaels/Reporter (source)

A hearing of the House Natural Resources Committee this morning will focus on the art of hydraulic fracturing and, more broadly, shale gas production. Some Democrats, including Rep. Diana DeGette of Colorado, have charged that hydraulic fracturing can cause groundwater contamination and should be regulated by the Environmental Protection Agency. (Gas drilling is currently regulated by state agencies.) A couple weeks ago, EPA Administrator Lisa Jackson suggested her agency might reexamine the impact of drilling on drinking water. This further spooked the industry.

Even though DeGette has yet to introduce her bill, the industry has launched a preemptive strike with a coalition called Energy in Depth. Its case got a boost last week, when a report by the Ground Water Protection Council said state regulation was adequate. There are no known cases of contamination due to gas drilling in Texas, according to the Texas Railroad Commission and the Texas Groundwater Protection Committee.

The witnesses include Douglas Duncan of the U.S. Geological Survey; Scott Kell of the Groundwater Protection Council; and Mike John of Chesapeake Energy, a major player in the Barnett Shale. You can watch the hearing here