Wednesday, February 29, 2012

Increasing Pressure On The Bit And Cranking Up The RPM's

A little tounge-in- cheek humor......but a lot of truth.  Don't shoot me, I'm just the messenger.

Drill, Barry, Drill

by John Ransom
So let’s you, me and the New York Times agree that Obama really doesn’t have an energy policy. Recently Obama reinforced that notion, when he tried to sell us on the idea that he's responsible for increased oil production. Please.
You see, Obama was against oil production before his newest, bestest policy, just recently embraced 72 hours ago, that- to paraphrase him- says: “Drill, Barry, drill.”
His change of heart , or lack thereof, has come about in wake of the administration’s latest self-inflicted gunshot wound to the economy, rising oil prices… again.

(Isn't it interesting, Mr. Bernanke, that the increasing price of oil coincides with the increasing money supply?  Quantitative easing or massive inflation?  I'll be thinking of you next time I fill my gas tank, or heaven forbid, plug in my electric vehicle.  Peter)

John Ransom

John Ransom

John Ransom is the Finance Editor for Townhall Finance. You can follow him on twitter @bamransom and on Facebook: bamransom.

Southwestern Energy (SWN): Venturing Into New Territory, Lower Smackover, Southern Arkansas

The following article is an unusually detailed and well-written description of an oil and gas company's exploration efforts in a new area.  In this case Southwestern Energy (SWN) has drilled a horizontal well into the Lower Smackover Brown Dense Zone, between two apparently water bearing zones.  They have hydraulicly fracked the well in multiple stages and are producing back frac fluid, oil and gas.

This represents a great success by my book, for an initial try, and they are far from done testing.  It tells me they know how to carefully and accurately drill and steer a well, and then successfully frac it.  However, apparently investors aren't as enthusiastic.  I think they are wrong.  Southwestern has an excellent track record.  This is a new play I'll be keeping my eye on.  We all should.

See the following article for a very good description of horizontal drilling and hydraulic fracturing in an exciting new oil play.  I only wish all oil companies were as open and generous with their operations as Southwestern is.  It would help the entire industry because in a way , we're all in this together and can learn from each other.  This kind of exploration play is different from the old super secretive "wildcatting" days.  Let's wish them the best.

Southwestern Energy - Street Proves Dense Regarding New Play


by Steve Zachritx
Yesterday, Southwestern Energy (SWN) released their first early results from the Lower Smackover Brown Dense play in southern Arkansas and northern Louisiana and the Street was less than impressed. Southwestern's first well, the Roberson 18-19 #1-15H in Columbia County, AR, is still recovering frac fluid and has been on production/flow back for 20 days with a best rate in a 24 hour period so far of 103 barrels of oil, 200 Mcf of gas and was at the time producing 1,009 barrels of water per day from 8 stages out of an 11 stage design.

  • To be clear, the 1,009 barrels of water production listed in SWN's press release for that same 24 hour period are:
    • Frac water, NOT formation water.
    • And definitely not water from the Smackover B wet zone above the Lower Smackover which had been an early concern here.
    • As the load water falls off (45% of load recovered as of yesterday) the oil production has come up as expected but the well is still in the process of cleaning up and this may take 10 more days or it could take another month or two. This is their first well in the play and they don't know exactly how frac load recovery will behave.
    • At this point there is no point in venturing a guess at a stabilized oil production rate. People shouldn't think of this "IP" as "initial production" but rather as an "in progress" rate.
(continued here)

About the author:
Steve Zachritz, "Zman", is an investor/trader who specializes in the energy sector. He has managed small cap growth portfolios, been an energy banker, and a sell side exploration and production analyst (Prudential and Jefferies) in his 20 years in the financial markets. His daily writeups address developments in that sector and the potential impact on publicly traded stocks, options, and futures.

Visit his site: Zman's Energy Brain

Tuesday, February 28, 2012

Do We Have Much Oil And Gas Left In The United States?

Just look at this map.  And this is just the lower 48 for Obama's sake!  Someone tell him or his advisors (handlers).  Didn't he say something like "we can't drill our way" out of this energy crisis?  Sometimes I wonder what he is really smoking.  Look at this map closely.  There is oil and gs all over the place, not all of it easy to recover, but give us a chance Mr. Obama, please?  I? know it's there, I didn't create this map , but I know it's there, I've studied all these places.  Please, let us help you pay your bills and get out of debt.  Please Mr. President, before it is too late.

Natural Gas, A Real "Alternative" Fuel For Vehicles

Natural gas, because of its clean burning characteristics, has long been used to power vehicles such as fork lift trucks inside warehouses.  Consider how clean burning natural gas is, many of us cook our food over natural gas stoves in our enclosed kitchens.  Now that we have an abundance of gas, thanks to the combined technologies of horizontal drilling and hydraulic fracturing, why not use this gas to power our cars and trucks, in addition to generating electricity and heating our homes as is already being done.  It makes sense to me and many others.

Now this gas is being used to power vehicles in Louisiana, by EnCana, ironically, a Canadian company.  They produce a lot of gas in Louisiana from horizontal wells drilled in the Haynesville Shale.  (Some of which I proudly helped steer while drilling.)  The following article comes from "The Shreveport Times" and shows and describes what EnCana has going.  This was not done because of Federal government subsidies, or even encouragement for that matter, just intelligent free market enterprise.  Do you hear that Mr. Obama?  This is economic activity, job creation, and wealth building you can count on.  Fire all your current advisers, they don't have any idea what they are doing.


DeSoto LNG station first in Louisiana

NEAR FRIERSON — A liquefied natural gas fueling station formally opened Friday by EnCana Natural Gas Inc. at the Relay Station holds the distinction of many "firsts." It's the first:
  • LNG station open in Louisiana.
  • Public LNG station in the U.S.
  • Location for Heckmann Water Resources to use LNG trucks.
And when the Relay Station in a couple of months opens its compressed natural gas pumps, the facility will be the first in the state to offer four fueling options: LNG, compressed natural gas, or CNG, gasoline and diesel.


What Goes Into The Price Of Gasoline

This is a question that goes through nearly everyone's mind at some point when they fill their vehicle with gasoline at the pump.  As prices rise this also fuels much passion, often in the form of anger directed at the "big oil companies" who are "ripping us off", or worse.  Does the average person understand what really goes into, or determines the price of a gallon of gasoline?  No.

It turns out that the price of the raw material, in this case crude oil,  amounts to around 80% of the cost of gasoline.  Simply put, if oil goes up, gasoline goes up.  Are there other factors?  Yes, many, such as refining, transportation, marketing, and of course taxes.  But the oil companies control all those things, right?  Again, no.  It is more complicated than that.  Many different, independent companies and factors come into play as crude oil comes from the Earth and follows a path to end up as gasoline in the fuel tank of your car.  The following article goes into more detail on this.

The key point here, and the one I want to emphasize, and of which I know the most, is what goes into the price of crude oil.  Oil must be found (discovered), produced, and delivered to a refinery where it is transformed into gasoline and many other important fuels and products.  So it is a case of supply and demand.  Economics 101.  To lower the price supply must increase or demand must decrease.

First, understand that the market for oil is worldwide; everyone wants it and no one country or company controls all of it, though many might like to.  The demand for oil cannot really be controlled.  People all over the world find motor vehicles more efficient than walking or using animal power.  They also like things like light, heat and air conditioning, to name just a few of the uses of crude oil and its products.  So to have much of an effect on the price of crude oil and thus gasoline, supply becomes the key factor.  It amazes me how few people understand this.  We must increase the supply of crude oil if we are to lower the cost of gasoline.  It really is as simple as that.

Geologists and geophysicists know how to find oil.  Engineers know how to drill wells, move the oil to refineries, transform it to fuels, and deliver it to consumers.  What is the problem then?  The problem is anything that restricts supply.  This usually means politics and governments, from local, to state to Federal (National), to international.  So if you want lower gasoline prices, get involved in the politics of increasing the supply of crude oil.  If you don't get involved, bite your tongue and take a back seat.

Solar energy can't replace crude oil, nor can wind, geothermal, nuclear, coal, or Obama's recent ludicrous suggestion, algae-derived bio-fuel.  Educate yourselves on this subject and become active, and then vote.  Don't leave this all up to politicians, because they often want what is best for them, not us.

The following article comes from ExxonMobil and in detail, breaks down in what goes into the price of gasoline.  I think it is accurate and very well done.  My opinion is mine alone.

What am I paying for in the price of a gallon of gasoline?

January 27, 2012 | Posted by Ken Cohen

I’m asked this question a lot. And I know a lot of drivers ask themselves this question whent they pull up to the pump.
The answer is based on the economics of supply and demand and how products are manufactured and sold – along with what the government takes in taxes. Let’s take a look, based on the U.S. Energy Information Administration’s breakdown of the estimated average price of a gallon of gas in December 2011, which was $3.27.

 Raw materials = $2.62

The cost of the raw materials used to make a product has a major impact on the final product price. The raw material for gasoline is crude oil. The price of crude oil is set by global markets, where buyers and sellers constantly react to supply and demand factors. Oil is just one of many commodities traded every day in the global market. Others are the corn that affects the price of food and the cotton that affects the price of clothing.
Crude oil is by far the largest factor in the price of a gallon of gasoline – accounting for 80 percent of the $3.27 average retail price per gallon in December, according to the EIA.

To put that in another way – about $2.62 of the average gallon of gas in this example is set before a refiner even touches the raw material.
Where I find many people get confused is that they assume oil companies are producing all the oil that goes into their own refineries – and therefore can control gas prices by controlling the supply chain. That’s not the case.

U.S. crude oil production in 2010 was 5.5 million barrels per day. But U.S. refineries processed 15.2 million barrels of oil per day – almost three times more oil than was produced in the U.S. That means U.S. refiners, like ExxonMobil, have to purchase millions of barrels of crude oil – at market prices – to produce gasoline and other products for American consumers. For example, in 2010, ExxonMobil spent $198 billion purchasing oil around the world for its refining operations.
Manufacturing the product

Like any product, there are costs to manufacture it – so the manufacturer tries to recover those costs, plus make a profit, when it goes to sell the product.
The refining portion of a gallon of gasoline has, on average, accounted for about 11 percent of the price in 2011, according to the EIA data through December. That means a little less than 40 cents per gallon would be due to refiners’ costs – wages, equipment, financing and others – plus their profits.

As the EIA figures show, however, refining doesn’t always produce a profit. In December, the data indicate that the U.S. market price for gasoline coming out of refineries was on average about 7 cents per gallon (-2 percent) below the refiners’ cost of crude oil alone, and before accounting for their costs of upgrading the crude into gasoline. In other words, refineries faced a market where domestic gasoline prices were very weak relative to global crude prices.
How does that happen? Refiners are “price takers” that operate on relatively low profit margins that are highly dependent on the market demand for petroleum products. That means at times, the value of a petroleum product coming out of the refinery isn’t enough to cover the costs of obtaining and refining the crude oil.

Distributing and marketing the product = $0.33
Products then have to get from the manufacturing site to the retail site. When gasoline leaves the refinery, it is shipped largely via pipelines to local terminals. There, distributors load their trucks and transport the gasoline to a service station. Naturally, each step in the distribution chain includes labor, capital equipment and other expenses that must be recovered by operators. Of course, these operators must also compete to sustain their profitability while also paying taxes.

Retailers then set the price at the pump, based on recovering these costs of getting gasoline to the service station and the costs of marketing it to consumers. They also have to generate enough money to pay their taxes and make a profit to keep their business running. And on top of that, they have to collect mandatory state and federal gasoline taxes from the consumer (which we’ll break down in the next section).
So who are the retailers setting the prices? When consumers pull into an Exxon or Mobil station, they assume it’s ExxonMobil. But we own only about 5 percent of the stations with our name on them. About 95 percent of the stations carrying the Exxon or Mobil brand are actually owned by network retailers or local business owners – not ExxonMobil.

Taxes = $0.39
So how much does the government make on a gallon of gas?

In this example, retailers collected state and federal gasoline taxes of 39 cents per gallon on average. Total gas taxes per gallon range by state – from lows of less than 30 cents per gallon to highs of more than 60 cents per gallon in places like New York and California.
How does this compare to what a company like ExxonMobil makes on a gallon of gasoline? As we saw earlier, sometimes a company or an operation may lose money. Other times, it may make money. A competitive market just provides an opportunity, not a guaranteed profit. In the first two quarters of 2011, for example, ExxonMobil made 7 cents and 8 cents a gallon , respectively, on the gasoline, diesel and other petroleum products it refined and sold in the United States.

What actions could help lower gas prices?
Again, let’s go back to the economics of supply and demand that govern the crude oil market, since it’s the largest determinant of the price at the pump.

There are many global factors that affect the crude oil market. But adding more supplies of crude oil to the global marketplace can help put downward pressure on the price of a barrel of oil. The United States has abundant supplies of oil, from the deep-water regions of the Gulf of Mexico to the tight oil resources throughout North Dakota and Montana. Combined with Canada’s oil resources (one of the largest in the world), North America has enormous potential to add new reliable supplies to the market. And, the U.S. has one of the largest and most advanced refinery systems in the world.
But first, the oil needs to get to market. There, we’ve often seen economics trumped by politics – even as the U.S. economy remains weak. The recent moratorium in the Gulf of Mexico, as well as the decision to deny the permit for the Keystone XL pipeline from Canada to U.S. refineries, are just two examples of U.S. political decisions that serve to keep supplies out of the market.

The economics behind a gallon of gas are pretty straightforward. It’s the policies behind access to U.S. energy resources that are less certain – but critical to our energy future.

Monday, February 27, 2012

Exposing The Myth Of "Gasland"...It Is Just So Much Flatulence

A hat tip and thanks to Jim Kinser for this link to an important and very much-needed documentary reporting on the positive aspects of hydraulic fracturing.  Almost as important as "fracking" is to the production of oil and gas from "unconventional", previously uneconomic shale rocks is the film's exposure of the notoiously inaccurrate, distorted, inflamatory (pun intended) recent documentary film titled "Gasland".

From Jim Kinser, "FYI, there is also a documentary in post-production right now that claims to present our side of the fracking story entitled FrackNation and is soliciting contributions to finish the project. It's purpose is to counter Gasland's propaganda and deception. Check it out at"

Gasland is, sad to say, is as biased and phony as Al Gore's now completely discredited documentary film, "An Inconvenient Truth".  See here for more on Al Gore and his decades-long hoax and pillage of the public's pocketbooks.

This new, pro-truth documentary about hydraulic fracturing sounds like a very worthwhile project and I encourage all who can to support it.  If we don't fight for the truth, who will?  Certainly not the environmental extremists who want to further damage America's economy.

As a personal aside, one of my first jobs in the oil and gas business was the exploration for, drilling and fracking of wells in the Wasatch Formation in Utah's Uinta Basin about 30 YEARS ago!
Pass this around.  People need to know the truth, or at least the other side of the story.

Al Gore should have been exposed and discredited long before he caused so much harm.  Nobel Peace Prize, Acadamy Award?  What a collasal joke!

Sunday, February 26, 2012

Geologists Selling A Prospect Idea

Any geologist who has ever tried to sell a prospect to his boss or supervisor can relate to the following video about selling advertising.  Imagine the first geologists and engineers proposing a "horizontal well", or using "hydraulic fracturing".  I am certain they didn't have an easy time of it.  Yet look how far we have come. 

Watch the following video, I had to laugh and I bet you will too.  I think it is funny.  A geologist must be creative and creativity can sometimes be very difficult to sell.  We all know a snotty little supervisor like the character portrayed by Tom Cruise in the video.  Have a laugh and follow the links.  (oh, and join the Fellowship Of Scientific Truth

The TRUTH About Advertising

Clever, funny, and maybe with a bit of truth. We've all had a boss or a supervisor like young Tom Cruise. Click on the following youtube link.

the truth about advertising.....(funny and clever)

Friday, February 24, 2012

Recognizing The Success And Development Of Gas Production From The Marcellus Shale

The development and application of the resources and technology to drill and produce gas and oil from formerly uneconomic rock formations like the Marcellus Shale is very, very significant and should be applauded.  The more this is recognized and shared, the more likely some of our political leaders will wake up and begin to create a better plan for America's energy needs.  I do believe we, geologists, engineers, investors.......everyone can play a role in creating a better future for America by educating others about how important this revolutionary ability to produce oil and gas from shale rocks really is.

An immediate hurdle is getting over the opposition to hydraulic fracturing.  Everyone knows that, but it is difficult overcoming the fear the so-called environmentalists are so adept at creating.  I think it can be done, by careful, patient, and clear education.

February 23, 2012 | PERMALINK | @MarcellusGas

MSC Founder and First Chairman, Ray Walker, Named “Engineer of Year”
Engineers' Society of Western Pa. honors Range’s Walker for outstanding Marcellus achievements
Pittsburgh, PA – At its 128th Annual Banquet, the Engineers' Society of Western Pennsylvania (ESWP) last night named Ray N. Walker, Jr. “Engineer of Year” for his pioneering Marcellus Shale natural gas development work. Walker, who co-founded the Marcellus Shale Coalition (MSC) and served as the organization’s first chairman, is Senior Vice President and Chief Operating Officer at Range Resources Corporation. Led by Walker, Range successfully drilled and completed the first Marcellus Shale natural gas well.

“It’s a real privilege to receive this recognition, and I thank the Engineers' Society of Western Pennsylvania for its great work. More than anything, though, this award is truly a testament to and an affirmation of the tremendous talent and dedicated professionals we are fortunate to have at Range, including some of the industry’s best and brightest engineers,” said Walker. “Natural gas development from the Marcellus Shale has proven to be one of the most transformative and pivotal energy breakthroughs of our lifetime. It’s been an incredible experience, both professionally and personally, to be so closely involved in this positive progress for the region and our nation.”

“Ray’s enthusiasm for the responsible development of clean, American natural gas is matched only by his passion to ensure that our industry remains committed to getting this historic opportunity right,” said Marcellus Shale Coalition president Kathryn Klaber. “This important recognition is well-deserved, and on behalf of the organization he helped to build, I thank Ray again for the enormous steps forward our industry has made, and continues to make, because of his thoughtful leadership and vision.”
Ray_Walker_ESWP_Award 2
Click HERE to watch the tribute video
presented at last night’s ceremony.
Marcellus Shale Coalition | 4000 Town Center Boulevard | Canonsburg, PA 15317 |

Thursday, February 23, 2012

"Unconventional" Resources? No, New And Exciting!

Exactly what we need, a multidisciplinary approach, people working together and solving problems, making the world a better place.  Bravo.  I would love to see you all there.

Unconventional Resources Technology Conference — a new event from SPE, AAPG and SEG
Tulsa, OK, February 22, 2012: Three of the world’s leading oil and gas professional societies will launch the Unconventional Resources Technology Conference (URTeC) 12-14 August 2013 at the Colorado Convention Center in Denver. A joint venture between the Society of Petroleum Engineers (SPE), the Society of Exploration Geophysicists (SEG), and the American Association of Petroleum Geologists (AAPG), URTeC will for the first time bring together the key disciplines and technologies engaged in the development of North American unconventional resource plays.
“URTeC will offer multidisciplinary technical and applied science sessions of broad interest,” said Ganesh Thakur, SPE 2012 President “and the accompanying exhibition will showcase cutting-edge developments in applications such as horizontal drilling, fracture technology, testing, logging and geophysics.”
“Successful resource plays demand a multidisciplinary approach; it’s the way we’re all working,” said SEG President Bob Hardage. “Geology, geophysics and engineering are essential components, but individual expertise is no longer enough. In order to effectively develop these resources, our members must collaborate across disciplines. URTeC is designed to support that objective.”
The URTeC concept was developed with direction from an industry advisory group led by representatives from Chesapeake, Devon, Anadarko, Shell, Statoil, ConocoPhillips, Schlumberger and many others.
“The oil and gas industry has been encouraging AAPG, SPE and SEG to collaborate in this area for some time,” said Paul Weimer, AAPG President. “Although our societies frequently work together, URTeC may rank as our most significant joint venture in the United States since we all joined the Offshore Technology Conference in the late 1960s.” Collectively, the three societies represent more than 170,000 members worldwide.
Recruitment for the URTeC technical program committee is under way. For more information and/or to participate on the committee visit the URTeC website at
About the societies
American Association of Petroleum Geologists
AAPG has been a leading organization for the science of geology worldwide. AAPG fosters scientific research and promotes technology in the field of geology. The Association serves members in more than 120 countries with publications, meetings, professional development and networking opportunities.
Society of Exploration Geophysicists
SEG promotes the science of exploration geophysics and related fields, including applications and research, fosters the common scientific interests of geophysicists, and maintains a high professional standing among its members. The Society, which has members in 138 countries, fulfills its mission through its publications, conferences, forums, website, and educational opportunities.
Society of Petroleum Engineers
SPE serves more than 104,000 members in 123 countries. SPE is a key resource for technical knowledge related to the oil and gas exploration and production industry and provides services through its publications, conferences, workshops and forums.

URTeC is managed by the American Association of Petroleum Geologists
1444 S. Boulder Ave. | Tulsa, OK 74119-3604 USA

Peak Oil? What Peak Oil? When?

Basically I think the following ten points about oil and gas production are correct.  The relatively new process of combining horizontal drilling to provide much greater access to oil and gas reservoirs, combined with multi-stage hydraulic fracturing to enhance flow rates is, as they say, a dramatic "game changer" in America's quest for energy independence.

It is not just the technology that makes this so exciting.  From this geologists perspective, what is really significant is this production is coming from organic-rich shales, arguably the most abundant sedimentary rock type on Earth.  Throw out all the old rules of exploration requiring source rock, maturation, migration, reservoir, structural trapping mechanism, and sealing rocks.  It is much simpler now.  What "Peak Oil"?  It's a brand new ball game.  Re-set the scoreboard, go long the drillers and oil field service companies.  Gentlemen (and women), start your engines.

10 Points To Consider When Examining The U.S. Quest For Energy Independence

We are currently at a time when domestic gasoline and diesel prices follow global fundamentals rather than domestic supply / demand dynamics. We are also at a juncture where natural gas is set to either remain a domestic fuel or become a global piece of the puzzle through LNG exports. At this time of uncertainty, it is good to take a step back and review the facts and forecasts to consider whether the U.S. can become energy dependent, and even if it does, will prices still be dictated on a global scale?

1) Oil production in North Dakota, has surpassed that of Opec member Ecuador, and is set to become the second largest oil producing state in the U.S. this year, surpassing Alaska and California.

2) EIA states that U.S. oil imports in 2005 = 60% of total consumption, U.S. oil imports in 2010 = 49%, U.S. oil imports In 2035 = 36%.

(Click to expand)


3) Bentek states over the next five years the U.S. will see 75 oil pipeline expansions, 25 railroad expansions, and 7 refinery expansions

4) The new kids on the block in terms of shale plays over the next five years taking over from Bakken, Marcellus, and Eagle Ford include Utica in Ohio, Niobrara in Colorado, and Monterey in California.  (Don't forget the father of them all, the Barnett Shale under me here in the Fort Worth Basin.  Peter)

5) EIA slashed the estimate for Marcellus gas shale reserves in its latest 2012 outlook, from 410 Tcf to 141 Tcf.

6) This led to a huge write-down in total U.S. gas shale reserves from 827 Tcf in last year's report to 482 Tcf in the 2012 report

7) According to Reuters / EIA, China is one of the largest holders of gas shale reserves at 1,275 Tcf

8) According to research by IHS CERA, 600k jobs have been created by shale in the U.S., with that set to reach 870k in 2015. This number is set to nearly double to 1.6mln by 2035.  (Someone explain this to the Obama Administration quick.....please.)

9) EIA is calling for shale to make up 49% of natural gas supply by 2035. IHS CERA is calling for this number to be more like 60%

10) EIA expects U.S. oil production to increase by 1.2mbd from 5.5mbpd in 2010 to 6.7mbpd in 2020. Bentek is somewhat more bullish, calling for an additional 2.2mbpd by 2016.

These 10 facts and stats all bode well for the U.S. (...even no.7, as multinational companies pump money into the U.S. / Canada to cut their teeth on joint ventures, before taking what they have learned and applying it globally). As for the downward revisions of estimates of natural gas reserves, they will continue to be revised up and down, but nevertheless new discoveries will be made.

It is impossible to predict whether prices will be dictated by global fundamentals in the future; all that can be said is that the U.S. is becoming increasing less reliant on other countries, and more reliant on itself. That has to be a good thing.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. 

About the author: Energy Burrito

Energy Burrito picture
Matt Smith spent his twenties working in investment management in London, England, before swapping his bowler hat for a banjo and moving to Louisville, KY, and Summit Energy. Matt is a Commodity Analyst at Summit, and produces a number of pieces of research across a number of global commodities.... More

Friday, February 17, 2012

No Evidence Of Groundwater Contamination From Hydraulic Fracturing

For those interested in the facts and real life applications and experience relating to the practice of hydraulic fracturing, the following study is excellent.

New Study Shows No Evidence of Groundwater
Contamination from Hydraulic Fracturing

MSC Statement on New University of Texas Report Confirming Fracturing's Safety Record  

Canonsburg, PA – A new report commissioned and funded by the University of Texas at Austin’s Energy Institute provides further, science-based confirmation that hydraulic fracturing “has no direct connection to reports of groundwater contamination.” The group of independent academic experts, along with input from the Environmental Defense Fund, also determined that “Media coverage of hydraulic fracturing is decidedly negative, and few news reports mention scientific research related to the practice,” which is tightly regulated.

Marcellus Shale Coalition (MSC) president Kathryn Z. Klaber issued the following statement regarding the new fact-based study:

“Entirely too often, the debate surrounding the responsible development of shale gas is clouded by rhetoric that is unsupported by the facts, proven data and substantiated science. This new study, however, aims to objectively separate fact from fiction, and does so effectively.

“Not surprisingly, though disappointingly, the study also captures the negative and one-sided nature of the media coverage surrounding shale gas development. Nonetheless, and as laid out in our Guiding Principles, our organization will continue to ‘encourage spirited public dialogue and fact-based education about responsible shale gas development.’”

: Click HERE to view the Energy Institute’s press release and HERE for the full study.