Ken Silverstein | Oct 23, 2012

Newfound shale gas deposits are getting touted as the next economic tidal wave that will carry the country to prosperity. True?

With both the U.S. Energy Information Administration and the industry’s Potential Gas Committee agreeing that there are 2,600 trillion cubic feet of shale gas beneath the ground, the possibilities would appear endless -- enough to supply homes and businesses for the next century. However, risks exist to both the air and water, including the potential for tainting surface and groundwater supplies resulting from the accidental release of chemicals.

“Oil and gas development, whether conventional or shale oil and gas, pose inherent environmental and public health risks, but the extent of these risks associated with shale oil and gas development is unknown, in part, because the studies GAO reviewed do not generally take into account the potential long-term, cumulative effects,” says the General Accountability Office that examined the environmental and public health risks with shale gas fracking.

In its report, the congressional watchdog agency points to the New York Department of Environmental Impact Statement saying that spilled, leaked or released chemicals or wastes could dirty drinking water. But the GAO analysis goes on to say that air and water conditions at each fracking site can vary. At the same time, its report quotes regulators from key states involved in overseeing the drilling process, all of whom say that fracking is not responsible for contaminating groundwater supplies.

What’s at stake? In 2011, 20 trillion cubic feet of shale gas was produced, representing 300 days of U.S. consumption, says the Energy Information Administration. Three-quarters of that came from four places: Barnett, Marcellus, Fayetteville and Haynesville. The nation’s shale gas supply grew from 6 percent in 2007 to 25 percent in 2011, it adds, projecting it to be 49 percent by 2035.

“According to a number of studies and publications we reviewed, shale oil and gas development pose risk to air quality,” says GAO’s report. “These risks are generally the result of engine exhaust from increased truck traffic, emissions from diesel-powered pumps used to power equipment, intentional flaring or venting of gas for operational reasons, and unintentional emissions of pollutants from faulty equipment or impoundments.”

Resistance Ahead

With respect to air quality, state regulators from Pennsylvania are of the view that the fracking process does little of consequence to hurt human health.

As for rivers, lakes and ponds, the GAO references a 2012 University of Texas study on drilling. There, the university says that withdrawing water could decrease flows downstream, making those watersheds susceptible to temperature changes. That, in turn, would hurt aquatic life. Similarly, if any of the chemical additives come into contact with either surface or groundwater, it could pose a hazard.

Other government, academic and nonprofit organizations have also examined water quality both before and after fracking. The GAO looked at three done in 2011: The Center for Rural Pennsylvania found that there were “no statistically significant increases in pollutants” and that the gas drilling had not adversely affected drinking water wells. Likewise, the Ground Water Protection Council found no incidents of groundwater contamination caused by fracking in Texas.

Meantime, Duke University reviewed groundwater systems in the Marcellus Shale in Pennsylvania and the Utica Shale in New York. It found that methane was detected in all watersheds, regardless of whether fracking had occurred. However, those levels were “substantially higher” closer to the shale gas wells, although the analysts cautioned that the source of the contamination could not be determined and that they found no evidence of fracking fluids.

“Regulatory officials we met with from eight states -- Arkansas, Colorado, Louisiana, North Dakota, Ohio, Oklahoma, Pennsylvania, and Texas -- told us that, based on state investigations, the hydraulic fracturing process has not been identified as a cause of groundwater contamination within their states,” GAO says.

But the watchdog agency is cautioning that there is insufficient data to definitively make that call. Essentially, the baseline info of where things started is missing, making it difficult to determine if such drilling is having a notable effect. Any degradation could be part of a natural occurrence, or it could be tied to fracking.

If shale gas is to reach its potential, developers must ensure that the drilling process is safe. The best way, say experts advising the U.S. Department of Energy, is more monitoring and greater transparency -- revealing the chemicals that they are using to frack. Industry has been resistant to that. But it is now softening its stance, realizing that producers must acquiesce to public demands to meet tomorrow’s energy needs.


EnergyBiz Insider has been awarded the Gold for Original Web Commentary presented by the American Society of Business Press Editors. The column is also the Winner of the 2011 Online Column category awarded by Media Industry News, MIN. Ken Silverstein has been named one of the Top Economics Journalists by Wall Street Economists and one of MIN’s Most Intriguing People in Media.

Twitter: @Ken_Silverstein

energybizinsider@energycentral.com

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