Fracking

FSEM Group 4
 Benefits
•Creates more jobs in many parts of the country, such as
Pennsylvania, West Virginia, Ohio, and New York

•Tens of thousands of jobs have already been created, and

there is still room for growth

•Helps the US become more dependent on its domestic

energy
 Benefits
•Fracking makes it easier to extract gas from the shale
deposits

•It also makes it cheaper to extract gas

•This allows for the energy to be bought and used at

cheaper prices

•Americans will pay less for their energy and families can
heat their home more cheaply
 Benefits
•Allows us to use more natural gas and less coal and oil

•Emits half of the emissions that CO2 emits with coal and
oil

•Gets rid of much of the harmful pollutants that come from

coal such as sulfur dioxide, mercury, and radioactive
emissions
 Disadvantages
(1) Use of unsafe chemicals
o Gas-drilling companies are not required by law to
disclose the kinds of chemicals they use
o "Cheney Loophole"
o Studies have shown that of these harmful chemicals,
25% can cause cancer, 40-50% can disrupt the
nervous and endocrine systems, and more than
75% can affect sensory organs and the respiratory
system
(2) Water Pollution
o from leaks, blowouts, illegal dumping
o aquifer/groundwater contamination
(i.e. Pavillion, WY)
o wastewater contains natural contaminants (salts,
barium, strontium, NORM, benzene, toulene)
o disposal is an issue; specialized treatment needed
(3) Air Pollution
o generators & compressors + trucking in/out
equipment & materials releases emissions
o hazardous air pollutants: methanol, formaldehyde,
carbon disulfide, VOCs*

(4) Earthquakes
5) Environmental Hazards
o spillage can endanger surrounding habitats/wildlife
i.e. Drimock, PA -- wetland, fishkill
o habitat degradation

(6) Freshwater Scarcity

o Colorado Oil and Gas Association est. 6.5 trillion
gallons of water will be used in 2012
o commoditization of water
o agriculture > fracking
 Economic Feasibility

How much does it cost to get at this stuff?

A study, conducted by the University of Pittsburgh in 2011, found that
gas obtained from wells that use hydraulic fracturing costs
approximately 90 percent more than gas from more traditional wells.
Other industry analysts simply state that the cost from these
“unconventional” sources will add a dollar or two per MMBtu to
production costs.
The Pitt study found that the average cost of developing a well that
utilized hydraulic fracturing was approximately $7.6 million in direct
costs (others place that cost as high as $10.5 million per well)—as
compared with $4 to $5 million for more traditional wells.
 cost of drilling a gas well
• Area
• Depth of formation
• Local taxes and restrictions
• The availability and price of fresh water
• Frac sand
1. Infrastructures
-- Acquiring land
-- Installing a pipeline distribution system
-- Build gathering stations
-- Compressor stations
-- Other infrastructures

2. Signing bonuses and royalties

-- signing bonuses fluctuates from location to
location
-- Special Use Permits (SUPs)
-- the industry offers a 25% royalty to the
landowner(s).

3. Unanticipated costs
-- well blows out
-- spills
-- pipe casing fails
-- pipeline rupture
-- expiry date of wells
 Some points to consider
• Not all Gas is created Equal

• In for a Penny, in for a Pound

• I’ll Gladly Pay you Tuesday for a Hamburger Today

• The Gas Bubble

• Renewables