Quotulatiousness

August 17, 2013

Fracking and the environment

Filed under: Environment, Media, Technology — Tags: , , , , — Nicholas @ 09:03

Matt Ridley debunks five common myths about environmental issues with fracking:

The movie Gasland showed a case of entirely natural gas contamination of water and the director knew it, but he still pretended it might have been caused by fracking. Ernest Moniz, the US Energy Secretary, said earlier this month: “I still have not seen any evidence of fracking per se contaminating groundwater.” Tens of thousands of wells drilled, two million fracking operations completed and not a single proven case of groundwater contamination. Not one. It may happen one day, of course, but there’s few industries that can claim a pollution record that good.

Next comes the claim that shale gas production results in more methane release to the atmosphere and hence could be as bad for climate change as coal. (Methane is a more powerful greenhouse gas than carbon dioxide, but stays in the atmosphere for a shorter time and its concentration is not currently rising fast.) This claim originated with a Cornell biology professor with an axe to grind. Study after study has refuted it. As a team from Massachusetts Institute of Technology put it: “It is incorrect to suggest that shale gas-related hydraulic fracturing has substantially altered the overall [greenhouse gas] intensity of natural gas production.”

Third comes the claim that fracking uses too much water. The Guardian carried a report this week implying that a town in Texas is running dry because of the water used for fracking. Yet in Texas 1% of water use is for fracking, in the United States as a whole 0.3% — less than is used by golf courses. If parts of Texas run out of water, blame farming, by far the biggest user.

Fourth, the ever-so-neutral BBC in a background briefing this week described fracking as releasing “hundreds of chemicals” into the rock. Out by an order of magnitude, Auntie. Fracking fluid is 99.51% water and sand. In the remaining 0.49% there are just 13 chemicals, all of which can be found in your kitchen, garage or bathroom: citric acid (lemon juice), hydrochloric acid (swimming pools), glutaraldehyde (disinfectant), guar (ice cream), dimethylformamide (plastics), isopropanol (deodorant), borate (hand soap); ammonium persulphate (hair dye); potassium chloride (intravenous drips), sodium carbonate (detergent), ethylene glycol (de-icer), ammonium bisulphite (cosmetics), petroleum distillate (cosmetics).

As for earthquakes, Durham University’s definitive survey of all induced earthquakes over many decades concluded that “almost all of the resultant seismic activity [from fracking] was on such a small scale that only geoscientists would be able to detect it” and that mining, geothermal activity or reservoir water storage causes more and bigger tremors.

(more…)

July 6, 2013

Matt Ridley on the “shale cornucopia”

Filed under: Business, USA — Tags: , , , , , — Nicholas @ 10:15

It’s a big deal. A really big deal:

A new report (The Shale Oil Boom: a US Phenomenon) by Leonardo Maugeri, of Harvard University, sets out just how astonishing this second shale revolution already is. After falling for 30 years, US oil production rocketed upwards in the past three years. In 1995 the Bakken field was reckoned by the US Geological Survey to hold a trivial 151 million barrels of recoverable oil. In 2008 this was revised upwards to nearly 4 billion barrels; two months ago that number was doubled. It is a safe bet that it will be revised upwards again.

The big reason for the upwards revisions is technology rather than discovery. Thanks to faster and cheaper drilling (which means less-rich rocks can be profitable) and things such as “zipper fracturing”, where two parallel wells are drilled and alternately fractured to help to release oil for each other, the oil recovery rate is rising from 2 per cent towards 10 per cent in places. Gas is now nearer 30 per cent. Well productivity has doubled in five years.

Now the Bakken is being eclipsed by an even more productive shale formation in southern Texas called the Eagle Ford. Texas, which already produces conventional oil, has doubled its oil production in just over two years and by the end of this year will exceed Venezuela, Kuwait, Mexico and Iraq as an oil “nation”.

[. . .]

Mr Maugeri calculates that at $85 a barrel most shale oil wells repay their capital costs in a year. He estimates that even if oil prices fall steadily to $65 in five years, shale oil production will treble in the US because of increasing productivity per well and the easing of transport bottlenecks. By 2017, he thinks, America will be producing nearly 11 billion barrels a day [correction 11 million], equal to its previous peak in 1970. It would need much less in the way of imports. US oil imports peaked at 60 per cent in 2005 and will be below 40 per cent this year.

Internationally the effect is very different for oil compared with gas. Gas is costly to export by sea, requiring liquefaction. This roughly doubles the cost of it, meaning that America’s cheap shale gas boosts its economy at home, and gives it a competitive advantage in attracting energy-intensive industries. (US gas prices are a third or a quarter of what they are here.) Mexico, too, is benefiting because of having a land border with America and pipelines.

[. . .]

There would be losers. America’s falling appetite for imports may hit Nigeria and Angola harder than the Middle East because of the types of oil they produce, while Canada and Venezuela, whose tarry oil sands are high-cost, would also suffer if oil prices fell. But every oil producer would eventually feel the effect of this falling US demand, so there is no doubting the downward pressure on world oil prices that this revolution is likely to cause.

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