Fracking Improves U.S. Energy Independence, Reduces GHG Emissions and Pollution, Provides Good Jobs, and Saves Us Money: It's Hard to Deny the Benefits

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