Thursday, June 30, 2016

Fracking and Total U.S. Energy Consumption (with Graphs)


Fracking and Total U.S. Energy Consumption (with Graphs)

EIA Energy Data shows that about 50% of current U.S. oil production and 67% of current U.S. natural gas production is via high volume hydraulic fracturing (fracking) combined with horizontal drilling. Some also comes from fracking vertical wells. Thus, fracking currently accounts for about 58% of U.S. natural gas and oil production. New EIA data show that oil and natural gas combined make up 64% of the energy consumed in the U.S. (using 2014 data). Fossil hydrocarbons (oil, natural gas, and coal) make up 80% of U.S. energy consumption (using 2014 data) and about 87% of global energy consumption. The current political debates about banning fracking do not seem to take this into account. In terms of percentage of U.S energy consumption (using 2014 data) fracking accounts for 37% while wind and solar (the only really expandable and lowest emissions renewable energy sources) account for a combined 2.2%. Fracking has achieved this remarkable energy source dominance in less than 10 years. In that short amount of time fracking has come to produce nearly 17 times the amount of energy from wind and solar combined, nearly 21 times the amount from wind and nearly 93 times the amount from solar. The percentage of the U.S. oil and gas mix produced by fracking will continue to increase since more than 85% of new gas production comes from fracking while conventional gas and oil production continue to drop. Since oil and gas production efficiency has increased significantly over the last few years the ability to extract more gas and oil quickly if the price supports it has also increased. Reserve estimations in the unconventional plays have also increased significantly. U.S. gas and oil will remain inexpensive and abundant energy sources for some time. Natural gas will continue to replace coal in power plants while gas prices are low. Currently, some power plants are able to switch from gas back to coal if gas prices rise enough but if the Clean Power Plan goes into full effect that will not happen nearly as much. Over the last few years the oil and gas industry has come to an historical halt due to oversupply so that for about the last 15-20% of this period of gaining energy dominance the industry has been virtually at a standstill with bankruptcies and massive job losses. Coal currently produces 18% of U.S. energy consumption (using 2014 data) and gas is set to continue replacing coal in power plants as more coal plants are retired. Gas is also replacing fuel oil as a source of home heating, replacing gasoline and diesel in transportation fuels in long haul trucking, ships, trains, cars, and other engines. All this is resulting in lower carbon emissions so that the percentage of U.S. energy consumption from fracking will continue to increase from 37% on upward and the percentage from coal and conventional oil and gas will continue to decrease.
  
While there are some environmental concerns with fracking, the economic benefits are astounding. The U.S. was short on natural gas supply just before the shale revolution and was set to begin importing gas from countries like Qatar and Russia. The U.S. was also set to continue importing large amounts of oil from OPEC countries. We are new exporting gas as LNG, natural gas liquids, refined products, and crude oil. We are no longer energy dependent on countries that have abysmal human rights records, few environmental controls, and those that use their energy leverage unfairly. The shale revolution has saved Americans thousands of dollars every year over a future without it. Our economy would undoubtedly be far worse without it. We have also been able to reduce carbon emissions more than any other country in the world by far due mainly to switching power plant fuel from coal to gas. Gas now makes up to 35% of our electricity and this will continue to grow. This switching has also improved air quality drastically overall. Newer efficient and low emissions combined cycle gas turbine plants are state-of-the-art and can better integrate and support renewable energy.

The environmental issues associated with fracking, while present, have been overhyped. The biggest risk is from spills since far more wastewater is being produced and processed. Spill detection and response technologies and protocols are being advanced. Explosions are always a risk with gas and flammable hydrocarbons but leak detection, corrosion detection, and safety technologies are being advanced. While methane emissions are a greenhouse gas issue the percentage of methane released per amount of gas produced has dropped since fracking came about. The leak rates for dry gas wells are among the lowest in the nation. There is currently quite a bit of confusion about leakage rates but it should be pointed out that large leaks are the most economic to fix. Leaks will be better assessed in the near future. Current and pending rules, reduction of flaring, and new leak detection and repair technologies will reduce rates significantly further. The same technologies that reduce methane leakage will also reduce volatile organic compound (VOC) leakage rates, improving air quality around wells, compressors, and processing facilities. The oil and gas industry is continuing to evolve in response to public and government demands for safer and more environmentally responsible practices. Water contamination from fracking is probably the most over-hyped environmental danger. Most of the issues are confined to certain areas, geological and hydrological situations, and the migration of methane into water wells via drilling and inadequate casing cementing. Most of the problems occurred early and have been solved, although individual incidents will likely continue to occur. Occasional induced seismicity from wastewater injection wells and rarely from the fracking process is now much better understood and can be better prevented. Water contamination from the hydraulic fracturing process itself is virtually non-existent. Leaks from pits and impoundments can be mitigated by requiring closed loop systems and better construction, monitoring, and lining for impoundments. Solid waste with NORM/TENORM radioactivity is typically low level and can be disposed of safely. Less coal burned also means less coal ash waste as well as less greenhouse gases and air pollutants. Logic dictates that the benefits of fracking outweigh the detriments.

New state and total energy data below:


Chart 1 shows percentages of U.S. energy consumption by source (using 2014 data
(Renewables includes hydro, wind, solar, wood and waste biomass, geothermal, and fuel ethanol)

Chart 2 shows percentages of U.S. energy consumption (using 2014 data) via fracking vs. expandable renewables (ie. wind and solar)

Chart 3 is a pie chart of chart 2: Fracking vs. Wind and Solar

Chart 4 shows percentages of different sources of the renewable energy mix (using 2014 data)

 




    

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