According to recent US Energy Information Administration (EIA) estimates, the production of natural gas from shale formations now accounts for 23% of total onshore domestic natural gas production. EIA also now estimates total technically recoverable natural gas from US shale at 862 Tcf – a mind-boggling total that has the potential to enhance energy security and drastically reduce domestic emissions of greenhouse gas.
As citizens of Pennsylvania, Texas, and other states know, with shale plays come job creation, investment, tax revenue, and economic development. Generations of Americans have wondered what it would be like to have the energy resources of Saudi Arabia. Is it possible for the US to squander this opportunity?
The recent shale boom has been made possible by technological advancements in the decades-old method of hydraulic fracturing. Hydraulic fracturing involves injecting water (typically 99.5% of the solution), sand, and fracing fluids into deep geological formations of reservoir rock to create small cracks that allow natural gas to flow into the wellbore.
While fracing has long been regulated by state agencies, concerns about fracing have now become a cause c?l?bre for the environmental community and the media. Most of the claims revolve around potential risks to drinking water. And yet, underneath the hype lies the fact that hydraulic fracturing in shale occurs at depths thousands of feet below where usable groundwater is likely to be found.
Undaunted by the lack of any documented groundwater contamination from fracing, multiple Federal efforts are under way to examine the safety of the hydraulic fracturing process, including EPA's study on the method, which is not scheduled to be completed until 2014, and a review by the US Department of the Interior of potential further permitting requirements for fracing on Federal lands.
In addition, recent attention has fallen on the US Department of Energy (DOE) where Secretary Chu has been charged by President Obama with establishing a subcommittee to examine fracing issues and identify both immediate and long-term steps that can be taken to improve the safety and environmental performance of the fracing process. How can the DOE help ensure continued shale gas production while providing increased assurance to the public on environmental safety? First, increased disclosure of the chemicals contained in fracing fluid has been a major focus of the environmental community and regulators. Industry has responded to these concerns by participating in the creation of Frac-Focus – a joint project of the Ground Water Protection Council and the Interstate Oil and Gas Compact Commission. FracFocus is an online registry through which operators can publicly disclose the chemicals used in fracing. Montana and Texas already have concluded that local operators can meet their regulatory requirements by using FracFocus, and other states may soon follow. DOE can lead this effort by recommending to the President that FracFocus become the basis for state disclosure requirements. A second major focus of the DOE subcommittee has been the development of best practices within the industry to better prevent accidents and ensure appropriate standards are upheld. On this issue, DOE can look inward by recommending to the President that existing interstate nonprofit entities – some of which were established with DOE funds – be strengthened. Organizations such as the Groundwater Protection Council and the Interstate Oil and Gas Compact Commission are:
Already engaged in ensuring best practices within the industry;
Much more nimble and able to react to ongoing technological developments; and
Better able to adjust recommendations to account for local and regional factors. These recommended steps can go a long way toward achieving President Obama's aim of increasing energy security, growing the economy, and ensuring that gas production is accomplished in a manner that protects public health and the environment. Technological achievements combined with natural resources have given this country a great gift. It is one that should be gratefully – and responsibly – accepted.
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