Hydraulic Fracturing

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    New Arkansas Study Finds Fracking Does NOT Affect Streams

    We caught sight of an interesting new study just published in the journal BMC Microbiology by researchers at the University of Arkansas/Fayetteville. Researchers studied (did in the field studies) of streams both near and far from fracking activities in the Arkansas Fayetteville Shale. No, the research is not directly about the Marcellus/Utica, although our shale plays are mentioned several times in the study. However, the research and its results apply to our region as well as all shale plays. In the study just published titled, “Do biofilm communities respond to the chemical signatures of fracking? A test involving streams in North-central Arkansas” (full copy below), researchers looked to see if the chemistry of streams was altered by nearby fracking activity. They evaluated “benthic biofilm community composition as a proxy for stream chemistry” to see if bacteria and other tiny critters that show up under a microscope display differences between the streams near fracking, and those not near fracking activity. What did they find? No difference. No change. No impacts from fracking on streams and the microbiology of those streams. What they did find is that streams are affected by agriculture and urbanization…
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    Debate & Misinformation re Frack Chemical Disclosure Rages in VA

    Two weeks ago MDN told you about an effort in Virginia to ensure new changes in Virginia’s environmental regulations that require “mandatory disclosure of fracking chemicals, baseline water testing and monitoring, and spill prevention and response planning” would still protect trade secrets–the exact combinations of chemicals used by drillers when fracking (see Proposed VA Law Would Protect Frack Chemical Trade Secrets). As we said at the time, Big Green groups are demagoging the issue, claiming drillers want to keep fracking chemicals secret from first responders and doctors. Not true. But that doesn’t stop the headlines from continuing, like “Citizens have a right to know about fracking chemicals” and “King George supervisors lobby for disclosure of fracking chemicals.” Ah, sorry to burst the anti bubble, but fracking chemicals ARE required to be disclosed. The proposed law that modifies the regulations doesn’t change that. The new law only shields the exact combinations of chemicals from being disclosed–and even the exact combination can/will still be exposed for doctors and first responders…
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    Heinz Endowments Gives Prof $48K to Find Frack Water Contamination

    Make no mistake. When the Heinz Endowments, a left-leaning, big-moneyed nonprofit invests its money via grants into programs that have anything to do with shale drilling, it is for one purpose and one purpose only: to smear the reputation of fracking and to make oil and gas look bad. They fund all sorts of “research” efforts that mysteriously always come to the same conclusion: fracking is bad. Funny how that works. So it was with interest we noted they’ve purchased for themselves another academic researcher rather cheaply–just $48,000–with a mission to test water wells near fracking sites. The aim? To prove that fracking contaminates water wells. Which is the claim made by groups like Heinz for years–and has never been proven. Millions of wells fracked, with a small number where methane has migrated into those wells (a fixable condition). NEVER has there been chemical transmission from fracking into groundwater wells. But that doesn’t stop Heinz from trying to manufacture evidence. Here’s their latest effort…
    Read More “Heinz Endowments Gives Prof $48K to Find Frack Water Contamination”

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    PA DEP Rejects Revisions to Regs re Drilling Near Coal Mines

    Here’s a story we admittedly don’t know much about, a story that kind of came out of left field. It may affect some shale drillers in southwest PA. Sometimes drillers want to lease and drill under coal mines. Since coal mines sink large holes in the ground, there are existing guidelines in place for how closely an oil/gas well can be drilled on or under a coal mine–guidelines put in place in 1957. As a result of legislation passed in 2011 called Act 2, a review was conducted to see if the standards for oil/gas drilling near coal mines might be modified–we’re assuming “relaxed,” allowing such drilling to happen in conditions not currently allowed. A column of rock called a pillar needs to be of a certain size/width in order for drilling to take place. An independent study to review the size of pillars, called “Gas Well Pillar Study Update, PO 4300311202 and 4300400813,” was completed in March 2016. The PA Dept. of Environmental Protection (DEP) recently completed its own review of that study (copy of the DEP review below) and has rejected changing existing 1957 standards for pillar dimensions. Yeah, kind of technical. Short version: DEP is keeping super-strict standards in place claiming it’s safer for coal miners, limiting options for shale drilling under some coal mines…
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    Proposed VA Law Would Protect Frack Chemical Trade Secrets

    We have to chuckle. It was just two months ago, in November 2016, that Virginia Gov. Terry McAuliffe approved changes to environmental regulations that requires “mandatory disclosure of fracking chemicals, baseline water testing and monitoring, and spill prevention and response planning” (see Virginia Adopts New Frack Chemical Regs – Fracking to Begin?). In other words, drillers would have to disclose all fracking chemicals. While leftie Big Green groups love the new rules, the drilling industry set about to ensure trade secrets (exact combinations of chemicals) can’t be discovered by using Freedom of Information Act laws. Two new bills have already been introduced in the Virginia legislature this year–House Bill (HB) 1678 HB 1679 (copies below)–that will ensure trade secrets are kept safe. Big Green groups like the Southern Environmental Law Center are having a cow, claiming death and destruction await if the bills are passed…
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    What Do Kitty Litter and Shale Drilling Have in Common?

    GN Shale Shaker – Mini Mud Recycling System

    This is kind of an offbeat story for a Friday. What do kitty litter and fracking have in common? It’s not a trick question! They both use something called bentonite. Over 90% of all bentonite mined is mined in the U.S. Some half of all bentonite worldwide (found in volcanic ash) comes from one state: Wyoming. Bentonite, which is nontoxic, is called the mineral of 1,000 uses: “It clarifies wine and other alcoholic beverages, forms an impervious liner to keep landfills from leaking, removes ink during paper recycling, and goes into a slew of homeopathic remedies.” However, the two biggest uses for bentonite are (yep) kitty litter and drilling mud used to drill conventional and unconventional (shale) oil and gas wells. Bentonite keeps the drill bit cool and carries cuttings (dirt and rock chips) to the surface. You’ll find big tanks full of the stuff sitting on drill pads. Drilling mud gets recycled on location…
    Read More “What Do Kitty Litter and Shale Drilling Have in Common?”

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    Maryland Democrat Lawmakers Continue to Torpedo Fracking

    Maryland is a lot like New York–populated with lefty liberals who love to tell other people how to live their lives. Maryland went through a years-long process, just like New York, and eventually released what would likely be the strictest drilling regulations in the nation, in late 2014 (see Fracking in Maryland (!) in 2015? Quite Possibly). On his way out of office, then-Gov. Martin O’Malley (a Democrat) published the regs and prepared the state to frack (see Maryland Gets Ready to Frack! Gov O’Malley Files New Regulations). But then the Maryland legislature passed a temporary moratorium which the newly elected Republican Governor, Larry Hogan, allowed to become law (see Maryland’s Pusillanimous Gov Allows Frack Moratorium to Become Law). Hogan and the Maryland Dept. of the Environment (MDE) returned with more tweaks which tightened the proposed regs even more–to the point no one would want to drill and frack anyway. But still the crazies objected (see Maryland Holds Hearings on Fracking, Crazies Turn Out to Complain). Maryland legislators, almost all of them liberal Democrats, want to ensure there is never any fracking in Maryland. So they’ve they’ve placed a “temporary” hold on new regulations that allow fracking. The new General Assembly kicked off its 2017 session yesterday, and while the House and Senate are quibbling over what to call it (a ban or a moratorium), one thing is clear: Maryland Democrat legislators are out to torpedo fracking in Maryland…
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    Make Marcellus Drilling Better – by Using a Math Formula?!

    Can you actually use a mathematical formula to figure out better ways to plan how to drill shale gas wells? It turns out the answer to that question is a resounding, “Yes!” A chemical engineering professor at Carnegie Mellon University, along with several Ph.D. students have, working with EQT, pioneered research that figured out how to turn 14,000 water truck trips to a well site into 1,400 trips–an “order of magnitude” difference. That is a big deal in the drilling industry. Using mathematical formulas–something called “mixed-integer optimization”–Professor Ignacio Grossmann and the other researchers tackled how to make processes in the shale gas industry more efficient. They published a paper in the AIChE Journal in 2016 titled, “Strategic Planning, Design and Development of the Shale Gas Supply Chain Network” (full copy below). The paper “presents a mixed-integer nonlinear programming (MINLP) model to optimally determine the number of wells to drill at every location, the size of gas processing plants, the section and length of pipelines for gathering raw gas and delivering processed gas and by-products, the power of gas compressors, and the amount of freshwater required from reservoirs for drilling and hydraulic fracturing so as to maximize the economics of the project.” Er, right. As you can tell, it’s complex. But it’s also very interesting and relevant for drillers and others in the industry, which is why we bring it to you. Below is a quick summary/overview of the paper, a video of Prof. Grossmann describing the research, and a copy of the paper itself…
    Read More “Make Marcellus Drilling Better – by Using a Math Formula?!”

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    Univ Chicago, Princeton & MIT Study: Fracking Benefits Everyone

    A new study by researchers at the University of Chicago, Princeton University, and the Massachusetts Institute of Technology (MIT) finds that the benefits of fracking outweigh the costs. You read that right. Three big lefty schools have released a study saying fracking benefits everyone. “The Local Economic and Welfare Consequences of Hydraulic Fracturing” (full copy below) looked at nine different shale basins. The authors say fracking activity yields $1,300 to $1,900 per year on average to each household in those basins. That’s a $64 billion yearly benefit–from fracking. So says the libs. Fracking benefits include, “a 7 percent increase in average income, driven by rises in wages and royalty payments, a 10 percent increase in employment, and a 6 percent increase in housing prices.” It is the largest and most comprehensive study of its kind…
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    3 Parents Give Birth to New Fracking Co: BJ Services

    Update: MDN’s headline and opening graf below are a tad confusing. As we pointed out in our previous story (here) BJ Services used to exist as a standalone company before it was purchased by, and merged into, Baker Hughes in 2009–for $5.5 billion. Now BH is spinning what is left of the company–an internal division–back into a standalone company once again. So perhaps our tongue-in-cheek analogy of a new company being “born” with “3 parents” is confusing. Our apologies! And our thanks to a sharp MDN reader for pointing out the confusion.

    A quick post to note the birth of a new fracking company. As we noted in November, Baker Hughes, Goldman Sachs, and CSL Capital Management pledged to combine investments and assets to form BJ Services, a “pressure pumping” (i.e. fracking) company (see Baker Hughes, CSL & GS Form New US Fracking Co: BJ Services). Baby BJ has officially arrived and is now open for business. Yes, baby BJ has three parents. Hey, if three parents worked for Bridget Jones’s Baby, it can work for a fracker…
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    Fracking Added $3.5 Trillion, 4.6M Jobs to Economy in 3 Years

    New research from the National Bureau of Economic Research (NBER) reveals a couple of astonishing facts: From 2012-2014, hydraulic fracturing was responsible for creating $3.5 trillion worth of new wealth. We can’t even get our brains around that number! Another fact: From 2012-2014, fracking create 4.6 million new jobs. Although we’ve experienced a big downturn since 2014, can you imagine how the fracking industry will come back under President Trump? Happy day are here again! More from the latest research report by NBER, titled “Fracking, Drilling, and Asset Pricing: Estimating the Economic Benefits of the Shale Revolution”…
    Read More “Fracking Added $3.5 Trillion, 4.6M Jobs to Economy in 3 Years”

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    Obama EPA One Last Swipe at Fossil Fuels, Changes Fracking Report

    We now know that it’s possible to bribe people who work for the federal Environmental Protection Agency. That is, big money donors DO have a say in how “science” is presented by the agency. The one great, huge, towering problem that anti-drillers have is that there is no scientific evidence that supports their wild claims that fracking contaminates water–which is their favorite lie to spread. When the Environmental Protection Agency arrived at the same conclusion–fracking doesn’t pollute water–after four years of studying it, that really took the wind out of the sails of rabid fossil fuel haters (see EPA Draft Report Says Fracking Doesn’t Pollute Groundwater Supplies). The EPA reviewed research from over 950 studies and even conducted nine of their own primary studies. Conclusion: fracking doesn’t pollute water supplies. What’s a good fossil fuel hater to do? Pressure the EPA to change the outcome of their study. And pressure they did. So much so that in the final version of the report just released (full copy below), the EPA slightly modified the language. In the original draft report, the language says, “hydraulic fracturing activities have not led to widespread, systemic impacts to drinking water resources.” The final report deletes that statement and provides language that says “under some circumstances” the fracking process can harm local water supplies, but because there are “gaps” in the data, the EPA can’t say how often or how much such impacts happen. In other words, all of the science is still the same. There is no evidence that fracking hurts water. The EPA simply gave their Big Green friends some headlines to play with for a few days. Perhaps it’s no coincidence the report is 666 pages long…
    Read More “Obama EPA One Last Swipe at Fossil Fuels, Changes Fracking Report”

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    EPA Final Fracking Report (May) Say Fracking Doesn’t Harm Water

    In 2015 the federal Environmental Protection Agency, after spending four years to evaluate 950 studies on hydraulic fracturing, conducted nine of their own original studies, and came to the conclusion that there is no “widespread, systemic impacts on drinking water” from fracking (see EPA Draft Report Says Fracking Doesn’t Pollute Groundwater Supplies). That finding caused anti-fossil fuel wackos to become apoplectic. Antis immediately began a campaign of bullying and intimidation against the EPA to get them to change the finding. That is, to cheat. It looked like it was working when the EPA appointed a special, stacked panel to review the original draft report, and (unsurprisingly) they questioned the original finding (see Will EPA Whore Itself to Antis and Change Fracking Water Study?). The final report is due to be released soon–before the Obamadroids leave town in January. Everyone is waiting to see what the EPA will say in the final report. Interestingly to us, the Institute for Policy Innovation (IPI) says the EPA will “likely” stick to the original conclusion–that fracking does not contaminate groundwater…
    Read More “EPA Final Fracking Report (May) Say Fracking Doesn’t Harm Water”

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    Penn State Goes Methane Migration Hunting – Using Big Data

    We’re always leery when we read about scientists doing data mining instead of real in-the-field research. So our radar was on alert when we read about the latest data mining project now under way at Penn State. Using a $1 million grant from the National Science Foundation, a cross-disciplinary team of Penn State computer scientists and geoscientists will study methane concentrations in the Pennsylvania’s streams, rivers and private water wells. They will look to see if wells and streams and rivers close to fracked Marcellus Shale wells have higher concentrations of methane than those not close to shale wells. In other words, does fracking cause methane to migrate into nearby water sources? That’s what they’re trying to prove, or disprove. The problem, from our perspective, is whether or not the data being analyzed contains readings of methane levels present in those wells, streams and rivers BEFORE any kind of shale drilling happened. If you don’t have the before and after, the data is useless. Drillers have discovered where the best locations are to drill–so that’s where they drill. (Brilliant, we know.) So it stands to reason naturally occurring methane already exists in those locations. Just because a nearby well or stream has higher levels of methane does not prove a shale well caused it. The methane may have already existed in the same quantities long before any shale drilling. You see the problem? At any rate, here’s the lowdown on another million dollar research project to give the Marcellus yet another anal exam…
    Read More “Penn State Goes Methane Migration Hunting – Using Big Data”

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    Feds Dole Out $4.8M to National Labs for Fracking Research

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    The feds are falling in love with fracking. Who knew?! The National Energy Technology Laboratory (NETL) has just awarded six research projects to U.S. Department of Energy (DOE) national laboratories to advance fundamental shale research. The two-year projects, totaling $4.8 million, “will investigate the processes associated with hydrocarbon extraction from unconventional shale reservoirs and lead to a better understanding of factors affecting prudent resource development.” Lawrence Berkeley National Laboratory has three of the projects. The other three go to Los Alamos National Laboratory, Sandia National Laboratories and the Stanford Linear Accelerator Center (SLAC) National Accelerator Laboratory. The projects aim to fill in “knowledge gaps” and will ultimately, hopefully, lead to fracking done more safely and in an “environmentally responsible” way. Here’s a description of the studies the grants will fund…
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    Baker Hughes, CSL & GS Form New US Fracking Co: BJ Services

    bj-servicesThe world’s third largest oilfield services company, Baker Hughes, has struggled to stay afloat given the radical reduction in revenue they get for the services they offer. BH’s recent third quarter update showed the company lost $430 million, which is down from losing $912 million in 3Q15, a positive sign we suppose (see Baker Hughes 3Q16: Bleeding Slows, but Hefty Loss of $430M). Halliburton tried to buy BH last year, but earlier this year the Obama DOJ killed the proposed merger (see Obama DOJ Kills Halliburton/Baker Hughes Merger, Deal “Terminated”). Last month GE Oil & Gas launched its own takeover/merger with BH (see Breaking: Who Needs Halliburton? Baker Hughes Merging with GE O&G). In the midst of all that, BH is not sitting on its hands. Yesterday the company announced it will spin off its North American shale fracking business into a new company, BJ Services. The deal involves investments and assets contributed from both Goldman Sachs and CSL Capital Management. Here’s the lowdown on BH’s new “pressure pumping” (i.e. fracking) deal, and the real reason BH is doing it…
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