Fracking Improves U.S. Energy Independence, Reduces GHG Emissions and Pollution, Provides Good Jobs, and Saves Us Money: It’s
Hard to Deny the Facts
U.S. oil production has more than doubled since 2011 thanks
to the ‘shale revolution’ dependent on high-volume hydraulic fracturing and
horizontal drilling. It’s been 20 years now since George Mitchell and company
first proved up the modern process in its crude form by accelerating production
of the Barnett Shale in the Fort Worth Basin.
Below is a chart of increasing U.S. oil production that shows we have overtaken both Russia and Saudi Arabia to become the world's largest oil producer:
The U.S. has also become the world's largest natural gas producer. The graph below from EIA data shows the increase in U.S. natural gas production over the last decade:
Benefits vs. Risks
Not only has fracking solved for the foreseeable future our
past problem of a shortage of natural gas, allowing us not to become dependent
on nations like Russia and Qatar, but also has increased our oil independence
so we have become far less reliant on countries like Saudi Arabia, Venezuela,
Iraq, and Nigeria for oil. It has allowed us to move away from coal in
electricity generation, providing cleaner air and less greenhouse gas
emissions. In fact, U’S carbon emissions are nearly 14% lower than they were in
2005 and fracking, or rather gas availability for replacing coal in power plants,
is the main reason why. The U.S. economy grew by 20% during that time period so
environmentalists who previously attempted to credit the 2008 economic downturn
and renewable energy as the reasons for the decline have been proven to be
incorrect. It has made electricity much cheaper
than it otherwise would have been. In 2017 U.S. carbon emissions reductions continued
by dropping 0.9% while European emissions rose by 1.6%.
The oil & gas industry provides good-paying jobs in the
regions it is produced. It has also helped to make gasoline and oil distillate
products cheaper. With Obama’s lifting of oil export restrictions oil producers
have more strategic options for selling oil. Liquified natural gas (LNG) and
natural gas liquids (NGLs) are being increasingly exported from the U.S. around
the world as well. Natural gas power generation has gotten more efficient with modern
combined-cycle plants and offers superior back-up generation for intermittent
wind and solar, especially with the addition of peaker plants with digitization
and battery power for quick start-up. New processes like the Allam Cycle
indicate that gas plants are the most economic to equip with carbon capture
technologies. Natural gas is also very functional to incorporate into
microgrids for reliable back-up power. Air quality has improved drastically in
areas where gas has replaced coal, fuel oil, and wood for heat and power
generation. There is also much potential to reduce pollution and carbon
emissions from trains, ships, long-haul trucks, fleet vehicles, and heavy
equipment from switching from diesel to natural gas. Low natural gas prices predicted
into the future mean that the cost for such conversions will be recovered with
lower operating costs. Fracking and related activities like building pipelines
have also been very good to state and local tax revenue. The bigger companies also
donate large sums to local development, schools, facilities, disaster relief, environmental
causes, and wildlife restoration. Landowners, rich or poor, have reaped the
monetary rewards of leasing and drilling. Cabot Oil & Gas, who operates in
one county in Pennsylvania recently recognized the milestone of paying out $1
billion in royalties to mineral owners. Those are the benefits. The risks are
mainly accidents in the form of spills, leaks, and explosions. These happen but
data show that they have not increased since fracking-based U.S. oil and natural
gas production have drastically increased. The risk of methane leakage, which
does have a high global warming potential in the short-term, is manageable and
many companies have committed to reduce such leakage to levels at or below current
government standards. Water contamination is an ongoing risk, particularly from
spills but that risk is manageable and has yet to cause any widespread issues.
The risk of induced seismicity (small earthquakes) from wastewater injection (and
hydraulic fracturing in certain areas) is now much better understood and can
and will be mitigated as current strategies to reduce such events are working.
An excellent piece appeared recently in the Washington
Examiner as an op-ed by Seth Whitehead, who writes on behalf of Independent
Petroleum Association of America (IPAA)-funded industry advocacy group Energy
In Depth. He laid out the benefits and risks of fracking and correctly concluded
that the benefits by far outweigh the risks. The economic benefits far outweigh
the economic risks. The environmental benefits far outweigh the environmental
risks. The benefits to consumers, to energy security, and to employment are
very significant. That is not to say there are no risks. There are. However,
the risks have been far overblown by anti-fracking and ani-fossil fuel
interests. As mentioned in the article some of the claims are unfounded and
some of the headlines are ridiculous, for instance, claims about fracking
affecting health of people who live near well sites. In reality, overall air
quality has improved dramatically due to gas replacing coal in power plants. Some
of these studies were funded by anti-fracking groups. The Colorado Dept. of
Public Health and the Environment in a 2017 study of air quality near oil and
gas well sites concluded after collection and analysis of 10,000 air samples that
“The risk of harmful health effects is low for residents living [near] oil and
gas operations.” The Obama-era EPA concluded that there is no widespread effect
on drinking water due to oil and gas operations even in areas where there is
more risk due to the proximity of gas-bearing zones to freshwater-bearing zones
– although there was some backlash by EPA’s Science Advisory Board (which at
the time did not include any members associated with industry). Yes, there were
some local water sources affected by methane migration and by spills, but the
problem is not widespread nor is the damage permanent.
Local Economic Benefits for the Appalachian Region
The Appalachian region that includes the Marcellus Shale,
the Upper Devonian Burkett Shale, and the Utica Shale is the premier low-cost
natural gas producing region in the U.S. In the last decade the region went from
producing less than 1% of U.S. gas supply to about 30% and the economics and new
pipeline capacity suggest that this percentage will continue to grow
incrementally. It is a simple fact that cheaper energy saves people and
businesses money. Affordable energy is a foundation for a successful economy. A
recent report by Consumer Energy Alliance in Pennsylvania claims that low
natural gas prices have saved residents and businesses $30.5 billion in the
last decade. $13.3 billion was saved by residents and $17.2 billion was saved
by businesses. That is about $400 per year per family for residents and even
more for the companies they work for. A similar report for Ohio showed $40.2
billion in savings over the decade, $15 billion saved by residential customers
and $25.3 billion saved by commercial customers. Some of those business savings
certainly went into wages and jobs. Thus, in addition to the direct and
ancillary jobs the oil & gas industry provides there are also jobs and better
wages provided by energy savings by businesses. Businesses also have more money
to invest in order to keep people working. Residential savings have a greater positive
impact on the poor who spend higher percentages of their income on energy, heat,
and electricity. Cheaper gasoline and diesel helped by American tight oil from fracked
shale has a similar impact. The higher wages associated with the Appalachian
natural gas industry also help to build up a local middle class. There is also
massive investment underway and much more in the planning stages as part of the
developing Appalachian storage and petrochemical hub that will be fed by local
natural gas and natural gas liquids.
Environmental Risks Overstated
The Pennsylvania DEP has noted that more wellsite inspections
have been conducted in 2017 and full compliance is at 95% which is at a maximum
compared to previous years. (violations are not necessarily willful violations
as some are due to accidents, misunderstanding of regulations, or outside contractor
errors). PA’s Annual Oil & Gas Report also noted no direct impacts from
fracking to water supplies although they of course acknowledge incidents of
stray gas, also known as methane migration. Many other studies have shown no
impact to water supplies. Recently, I was asked whether some low-income friends
should lease their minerals as they were most worried about well water contamination.
I indicated they should as the risk is low and they could really use the money.
Other PADEP reports indicate no impacts to headwater streams, effective well
integrity practices to prevent groundwater contamination, and two reports
issued by the PA Dept. of Health suggest no negative health impacts from shale
development. One was an air quality study in Washington County where shale
development has been extensive and a widespread air monitoring network was set
up. Monitoring air for VOCs, formaldehyde, ozone, carbon monoxide (CO) benzene,
2.5 particulate matter, and nitrogen oxide (NO2) showed no increases over comparable
PA air quality and well below the national ambient air quality standards (NAAQS).
Other studies showed similar results.
Anti-Fracking Activists Out of Touch with Reality
Anti-fracking activists continue to deny the clear benefits
of fracking. As I mentioned elsewhere, one might call them ‘fracking benefit
deniers’ in a similar fashion as some deride “climate deniers” which is a thinly
veiled reference to the absurdity promoted by anti-Semitic “holocaust deniers.”
There are still media sites like Eco Watch and DeSmog Blog that post any
anti-fracking information and propaganda they can find, including every accident
and every negative article. There are still ridiculous sensationalized headlines
by these groups that distort scientific studies to fit their narrative. Far
left politicians like Bernie Sanders, Dennis Kucinich, and others still call
for nationwide or statewide fracking bans. Activists scientists are still supporting
those efforts with misleading rhetoric. In some places businesses still openly
display anti-fracking propaganda. Anecdotal accounts of people poisoned by
fracking still occur and are collected and reported by anti-fracking activists.
Anti-corporate law firms are still trying to enact local ordinances against oil
& gas activity. Since as time has gone on there have been no widespread
impacts one might think such activity would wane but the activists often
cushion themselves with their own facts and narratives so the danger is still
there for public outrage when accidents or negligence occur. For this reason and
other reasons of public reputation many oil & gas companies are more vigilant
about full compliance and developing cultures of compliance which is a win for
everybody, except maybe the activists.
Decarbonization Still Happening and Natural Gas is a Part of the
Picture
Of course, the economic and relative environmental
advantages of fracking do not mean that a transition to carbon-free energy is
not inevitable. Fossil fuels are still a finite resource even though we have
found ways to produce more reliably and inexpensively and likely will continue
to do so for a while. Wind, solar, and battery storage continue to improve
incrementally and that is likely to continue as well. As time goes on, more
data on climate may cement the more catastrophic predictions of climate change.
If that happens, then decarbonization will be accelerated which will favor
renewables. Even in that case natural gas will still play a big part as a
partner to intermittent wind and solar. Utility executives are still committed
to decarbonization and in most areas that includes building more wind and solar
generation and battery storage. Economics (more and more as time goes on),
customer expectations, and policy (incentives and subsidies) have driven and
will continue to drive decarbonization, says Excel Energy planning executive,
Jonathan Adelman. He states that in some places even now the incremental cost
of renewables is cheaper than the embedded cost of fossil fuels, notably coal.
Ongoing Federal Monitoring and Studies on Fracking Impacts
Many studies of fracking impacts are ongoing at the federal
level. The National Science Foundation has an ongoing study integrating food,
water, and energy systems in the northern Great Plains where the population is
low but energy and especially agricultural production are high. Both are water
intensive. Other federal agencies such as the USGS, the EPA, and the DOE are
investigating things like the composition of flowback and produced water
(USGS), potential impacts from spills and gas migration on drinking water
sources (EPA), and possible exposure routes of fluids and chemicals from
wellbores and tanks (DOE). There are also well sites being used as 'testing
laboratories' by the DOE where all systems are monitored including water
use, possibility of contamination,
possible leaching of heavy metals and radioactivity of drill cuttings, etc.
References:
An Anniversary of History Being Made: The Birth of Modern Fracking – by
David Bahnsen, in Forbes, Aug. 8. 2018
New EIA Data Show Shale Drove U.S. Energy Costs to Record Low Levels in
2016 – by Seth Whitehead, in Energy In Depth, Aug. 14, 20
Fracking, 10 Years Late: Its Benefits Far Outweigh its Risks – by Seth
Whitehead, Op-Ed in The Washington Examiner, Aug. 28, 2018
Like That Cleaner Air You’re Breathing? Fracking Says, ‘You’re Welcome!’
– by David Blackmon, in Forbes, Sept. 5. 2018
Report: Pennsylvanians Saved More Than $30B Over Last Decade from Lower
Natural Gas Prices – by Mike Larson, in Pittsburgh Business Times, Sept. 7,
2018
Consumer Energy Alliance – Everyday Energy for Pennsylvania, report https://consumerenergyalliance.org/cms/wp-content/uploads/2018/08/CEA-Pennsylvania-Report.pdf,
Aug. 8. 2018
Pa. Agencies Find Shale Development Has Little Risk of Harming Public
Health – by Nicole Jacobs, in Energy In Depth, July 24, 2018
Pa. Annual Oil and Gas Report: No Evidence Fracking Having Direct
Impacts To Water Supplies – by Nicole Jacobs, in Energy In Depth, Sept. 5, 2018
Consumer Energy Alliance - The Benefits of Ohio’s Natural Gas
Production to Energy Consumers and Job Creators https://consumerenergyalliance.org/cms/wp-content/uploads/2018/08/080718_OH-CFAE-Natural-Gas-Report_FINAL.pdf
Xcel Resource Planning Executive: We Can Buy New Renewables Cheaper
Than Existing Fossil Fuels – by Juan Monge, in Green Tech Media, Sept. 11. 2018
When oil and water mix: Understanding the environmental impacts of
shale development – by Daniel J. Soeder and Douglas B. Kent, in Geological
Society of America, GSA Today, Vol 28, Issue 9, September 2018
