New BLM Fracking Rule will Cost Drillers Nearly $100K per Well
So just how much will the proposed new fracking rule (for wells fracked on public lands) from the Bureau of Land Management cost drillers? The Western Energy Alliance hired the respected economics firm John Dunham & Associates to run the numbers. What they found was that if the new rule goes into effect as written, it will cost drillers an extra $96,913 per well on average, making it cost prohibitive to even bother drilling some wells. Perhaps that’s the intent? The new BLM rule will likely not affect Marcellus and Utica Shale drilling because there is very little federal/public land in the northeast. So why bother to report on it? Because Obama administration officials have expressed their desire to one day “encourage” (i.e. force) the new BLM rule to be used for drilling on private land as well (see Feds ‘Hope’ States will Use BLM Rules for ALL Fracking).
The press release from the Western Energy Alliance, along with the full economic analysis from John Dunham & Associates: