Green Field Powers Eagle Ford Fracking Solely with LNG

Lafayette, La.-based Green Field Energy Services has successfully completed over 60 hydraulic fracturing stages on a well series in South Texas' Eagle Ford shale play using only liquefied natural gas (LNG), Green Field reported April 17.

The company had up to four turbine fracturing pump (FTP) units operating during each fracturing stage; each TFP consistently pumped five barrels per minute at a pressure of 7,500 pounds per square inch.

"We continue to push the envelope in the use of gas as a fuel source in pressure pumping," said Green Field Energy Services President Rick Fontova in a statement. "This application is yet another step closer to our soon-to-be-realized vision of using field gags to power our Turbine Frac Pumps."

Green Field has been using custom turbine technology to offer hydraulic fracturing pumps that can run solely and cost effectively on natural gas, including LNG and compressed natural gas.

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Green Field Powers Eagle Ford Fracking Solely with LNG

Lafayette, La.-based Green Field Energy Services has successfully completed over 60 hydraulic fracturing stages on a well series in South Texas' Eagle Ford shale play using only liquefied natural gas (LNG), Green Field reported April 17.

The company had up to four turbine fracturing pump (FTP) units operating during each fracturing stage; each TFP consistently pumped five barrels per minute at a pressure of 7,500 pounds per square inch.

"We continue to push the envelope in the use of gas as a fuel source in pressure pumping," said Green Field Energy Services President Rick Fontova in a statement. "This application is yet another step closer to our soon-to-be-realized vision of using field gags to power our Turbine Frac Pumps."

Green Field has been using custom turbine technology to offer hydraulic fracturing pumps that can run solely and cost effectively on natural gas, including LNG and compressed natural gas.

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Fracking Commences at President Energy's Argentina Concessions

President Energy PLC announced that fracking operations have commenced at its Puesto Guardian concession in Argentina.

The work-over rig is now in location having previously been delayed due to bad weather and upgrading. Work-over operations have started on a first phase three well program as a necessary prelude to fracking equipment arriving on site. Work-over and fracking will operate in tandem with the first results now expected in early June.

The three wells subject to the first phase are in order of operation: Wells PE7 and PE8 at the Pozo Escondido Field and Well DP1001 at the Dos Puntitas Field.

Wells PE7 and PE8 have both been shut in for some 20 years and previously successfully produced from the A6 sands whilst showing unrecovered oil from the Carbonates above. Both show original pressure and are not near water. While the forthcoming fracking operations will be centered on the unproduced oil in the Carbonates it can also be expected to propagate into the previous prolific A6 sands. 

DP1001 is a relatively new well producing circa 80bopd free flow from both the A6 sands and the higher Carbonate interval. The frac will target primarily this Carbonate interval of some 82 feet (25 meters).

The commencement of the fracking campaign follows the previously announced results from the 3D seismic survey recently carried out. Following this survey management estimated that at Pozo Escondido, an increase in stock tank oil initially in place (STOIIP) of 215 percent from 20 to 63 million barrels. At the Dos Puntitas field, the reprocessing has validated the existing STOIIP of 15 million barrels and six undrilled highs have been identified.

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Study: Fracking May Boost California's Economy, Adding 2.8M Jobs

Development of California's Monterey shale formation can play the major role in the state's future economic well-being, noted a recent study, "Powering California: The Monterey Shale and California's Economic Future", released by the University of Southern California (USC) and Los Angeles-based think tank Communications Institute.

California's Monterey shale is estimated to hold 15 billion barrels of oil and development of the 1,750-square mile formation in central California could generate half a million new jobs by 2015 and 2.5 million jobs by 2020.

"This report provides an indication that there is one potential bright spot in California's economic future: the increased production of energy," the report stated. "California has long served as the incubator for emerging energy sources and technologies, as the state has taken advantage of both technology and its natural resources to become a leader in the generation of renewable energy. Now, these same technological and resource advantages can allow the state to return to leadership in the production of oil."

The Monterey/Santos play, a prolific source rock for many of California's large oil fields, is considered by far the largest shale oil formation in the United States, roughly two-thirds of total oil shale potential. By those numbers, the Monterey reserves trump the Bakken and Eagle Ford fields.

This new onshore oil play can easily pump up the nation's oil output by 25 percent in just a few years and help the state's local energy picture. California has more recoverable reserves in shale than nearby big oil-producing countries, according to a July 2012 report issued by the U.S. Energy Information Administration (EIA).

To tap this prolific shale play, horizontal drilling and hydraulic fracturing would most likely be used, which has riled environmentalists to oppose this widely-used drilling technique. And much pressure has been placed on California's Governor Jerry Brown, a Democrat, but the opposite has occurred.

"We want to get the greenhouse gas emissions down, but we also want to keep our economy going," he said at a March 13 press conference, Reuters reported. "That's the balance that's required. The fossil fuel deposits in California are incredible, the potential is extraordinary. But between now and development lies a lot of questions that need to be answered."

The study forecasts that the state could greatly benefit, about $4.5 billion in oil-related tax revenue in 2015 and $24.6 billion by 2020. California boasts perhaps the largest deep-shale reserves in the world – reserves that, unlike elsewhere, hold the promise for an unprecedented volume of advanced crude oil production, the study noted. California's well-known offshore reserves contain more than 10 billion barrels of oil and nearly 12 trillion cubic feet of natural gas but the onshore play is projected to hold even more oil – more than 15 billion barrels, according to the EIA.

"Gov. Brown is trying to do what he feels is best for California and he realizes that much of the negative publicity was not based on an understanding of the facts," stated Don Clarke, a Los Angeles consulting geologist, in an interview with Rigzone. "We must protect the environment and any Monterey development can only be done with proper consideration to the environment and especially the groundwater."

Development of the oil-shale deposits may boost the state's economic activity by as much as 14.3 percent, the study said. And with that, increasing the state's per-capita gross domestic product (GDP).

"California, whose Monterey Formation alone is estimated to be four times larger than North Dakota's Bakken reserve, has chosen… to sharply limit its fossil-fuel industry. As a result, it has generated barely one-tenth the new fossil-fuel jobs in archrival Texas. Not surprisingly, California … lagged behind in GDP and income growth, while the energy states have for the most part enjoyed the strongest gains," author Joel Kotkin said Dec. 7 in the Daily Beast.

With more than 10 years of journalism experience, Robin Dupre specializes in the offshore sector of the oil and gas industry. Email Robin at rdupre@rigzone.com.

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Study: Fracking May Boost California's Economy, Adding 2.8M Jobs

Development of California's Monterey shale formation can play the major role in the state's future economic well-being, noted a recent study, "Powering California: The Monterey Shale and California's Economic Future", released by the University of Southern California (USC) and Los Angeles-based think tank Communications Institute.

California's Monterey shale is estimated to hold 15 billion barrels of oil and development of the 1,750-square mile formation in central California could generate half a million new jobs by 2015 and 2.5 million jobs by 2020.

"This report provides an indication that there is one potential bright spot in California's economic future: the increased production of energy," the report stated. "California has long served as the incubator for emerging energy sources and technologies, as the state has taken advantage of both technology and its natural resources to become a leader in the generation of renewable energy. Now, these same technological and resource advantages can allow the state to return to leadership in the production of oil."

The Monterey/Santos play, a prolific source rock for many of California's large oil fields, is considered by far the largest shale oil formation in the United States, roughly two-thirds of total oil shale potential. By those numbers, the Monterey reserves trump the Bakken and Eagle Ford fields.

This new onshore oil play can easily pump up the nation's oil output by 25 percent in just a few years and help the state's local energy picture. California has more recoverable reserves in shale than nearby big oil-producing countries, according to a July 2012 report issued by the U.S. Energy Information Administration (EIA).

To tap this prolific shale play, horizontal drilling and hydraulic fracturing would most likely be used, which has riled environmentalists to oppose this widely-used drilling technique. And much pressure has been placed on California's Governor Jerry Brown, a Democrat, but the opposite has occurred.

"We want to get the greenhouse gas emissions down, but we also want to keep our economy going," he said at a March 13 press conference, Reuters reported. "That's the balance that's required. The fossil fuel deposits in California are incredible, the potential is extraordinary. But between now and development lies a lot of questions that need to be answered."

The study forecasts that the state could greatly benefit, about $4.5 billion in oil-related tax revenue in 2015 and $24.6 billion by 2020. California boasts perhaps the largest deep-shale reserves in the world – reserves that, unlike elsewhere, hold the promise for an unprecedented volume of advanced crude oil production, the study noted. California's well-known offshore reserves contain more than 10 billion barrels of oil and nearly 12 trillion cubic feet of natural gas but the onshore play is projected to hold even more oil – more than 15 billion barrels, according to the EIA.

"Gov. Brown is trying to do what he feels is best for California and he realizes that much of the negative publicity was not based on an understanding of the facts," stated Don Clarke, a Los Angeles consulting geologist, in an interview with Rigzone. "We must protect the environment and any Monterey development can only be done with proper consideration to the environment and especially the groundwater."

Development of the oil-shale deposits may boost the state's economic activity by as much as 14.3 percent, the study said. And with that, increasing the state's per-capita gross domestic product (GDP).

"California, whose Monterey Formation alone is estimated to be four times larger than North Dakota's Bakken reserve, has chosen… to sharply limit its fossil-fuel industry. As a result, it has generated barely one-tenth the new fossil-fuel jobs in archrival Texas. Not surprisingly, California … lagged behind in GDP and income growth, while the energy states have for the most part enjoyed the strongest gains," author Joel Kotkin said Dec. 7 in the Daily Beast.

With more than 10 years of journalism experience, Robin Dupre specializes in the offshore sector of the oil and gas industry. Email Robin at rdupre@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Study: Fracking May Boost California's Economy, Adding 2.8M Jobs

Development of California's Monterey shale formation can play the major role in the state's future economic well-being, noted a recent study, "Powering California: The Monterey Shale and California's Economic Future", released by the University of Southern California (USC) and Los Angeles-based think tank Communications Institute.

California's Monterey shale is estimated to hold 15 billion barrels of oil and development of the 1,750-square mile formation in central California could generate half a million new jobs by 2015 and 2.5 million jobs by 2020.

"This report provides an indication that there is one potential bright spot in California's economic future: the increased production of energy," the report stated. "California has long served as the incubator for emerging energy sources and technologies, as the state has taken advantage of both technology and its natural resources to become a leader in the generation of renewable energy. Now, these same technological and resource advantages can allow the state to return to leadership in the production of oil."

The Monterey/Santos play, a prolific source rock for many of California's large oil fields, is considered by far the largest shale oil formation in the United States, roughly two-thirds of total oil shale potential. By those numbers, the Monterey reserves trump the Bakken and Eagle Ford fields.

This new onshore oil play can easily pump up the nation's oil output by 25 percent in just a few years and help the state's local energy picture. California has more recoverable reserves in shale than nearby big oil-producing countries, according to a July 2012 report issued by the U.S. Energy Information Administration (EIA).

To tap this prolific shale play, horizontal drilling and hydraulic fracturing would most likely be used, which has riled environmentalists to oppose this widely-used drilling technique. And much pressure has been placed on California's Governor Jerry Brown, a Democrat, but the opposite has occurred.

"We want to get the greenhouse gas emissions down, but we also want to keep our economy going," he said at a March 13 press conference, Reuters reported. "That's the balance that's required. The fossil fuel deposits in California are incredible, the potential is extraordinary. But between now and development lies a lot of questions that need to be answered."

The study forecasts that the state could greatly benefit, about $4.5 billion in oil-related tax revenue in 2015 and $24.6 billion by 2020. California boasts perhaps the largest deep-shale reserves in the world – reserves that, unlike elsewhere, hold the promise for an unprecedented volume of advanced crude oil production, the study noted. California's well-known offshore reserves contain more than 10 billion barrels of oil and nearly 12 trillion cubic feet of natural gas but the onshore play is projected to hold even more oil – more than 15 billion barrels, according to the EIA.

"Gov. Brown is trying to do what he feels is best for California and he realizes that much of the negative publicity was not based on an understanding of the facts," stated Don Clarke, a Los Angeles consulting geologist, in an interview with Rigzone. "We must protect the environment and any Monterey development can only be done with proper consideration to the environment and especially the groundwater."

Development of the oil-shale deposits may boost the state's economic activity by as much as 14.3 percent, the study said. And with that, increasing the state's per-capita gross domestic product (GDP).

"California, whose Monterey Formation alone is estimated to be four times larger than North Dakota's Bakken reserve, has chosen… to sharply limit its fossil-fuel industry. As a result, it has generated barely one-tenth the new fossil-fuel jobs in archrival Texas. Not surprisingly, California … lagged behind in GDP and income growth, while the energy states have for the most part enjoyed the strongest gains," author Joel Kotkin said Dec. 7 in the Daily Beast.

With more than 10 years of journalism experience, Robin Dupre specializes in the offshore sector of the oil and gas industry. Email Robin at rdupre@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

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UK Explorer Cuadrilla Delays Fracking Plans Until 2014

LONDON - U.K. shale gas explorer Cuadrilla Resources Ltd. said Wednesday it was delaying its plans to begin hydraulic fracturing at its Bowland shale project in Lancashire, England, to 2014 while it conducts an environmental impact assessment for the site of each exploration well.

Cuadrilla had planned to start hydraulic fracturing, a controversial process used to release natural gas from the rock, this summer. The delay will be a setback for U.K. government ambitions to replicate the North American shale gas revolution that has transformed the U.S. energy market.

"We recognize that within the complex U.K. regulatory framework governing planning this process can prove lengthy but we are determined to spare no effort in meeting our exploration targets in an environmentally and socially sustainable manner," Cuadrilla Chief Executive Francis Egan said.

At the end of last year, the U.K. government lifted a moratorium on hydraulic fracturing, or fracking, as part of plans to stimulate renewed investment in Britain's energy sector and reduce dependence on gas imports as its aging North Sea oil and gas fields start to run dry.

Exploration is still at an early stage in the U.K., making a reliable estimate of the country's reserves difficult. There has been no commercial shale gas production in the U.K. so far.

Cuadrilla said that technical analysis of the Bowland Shale confirms the company's previous estimate that the license area holds at least 200 trillion cubic feet of gas resources.

Cuadrilla, which is the only company using the controversial technology to explore for shale gas onshore in the U.K., halted fracking in May 2011 after two small seismic tremors were detected near their operations.

Cuadrilla is jointly owned by U.S. private-equity firm Riverstone LLC and Australian mining group AJ Lucas and management.

Copyright (c) 2012 Dow Jones & Company, Inc.

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UK Explorer Cuadrilla Delays Fracking Plans Until 2014

LONDON - U.K. shale gas explorer Cuadrilla Resources Ltd. said Wednesday it was delaying its plans to begin hydraulic fracturing at its Bowland shale project in Lancashire, England, to 2014 while it conducts an environmental impact assessment for the site of each exploration well.

Cuadrilla had planned to start hydraulic fracturing, a controversial process used to release natural gas from the rock, this summer. The delay will be a setback for U.K. government ambitions to replicate the North American shale gas revolution that has transformed the U.S. energy market.

"We recognize that within the complex U.K. regulatory framework governing planning this process can prove lengthy but we are determined to spare no effort in meeting our exploration targets in an environmentally and socially sustainable manner," Cuadrilla Chief Executive Francis Egan said.

At the end of last year, the U.K. government lifted a moratorium on hydraulic fracturing, or fracking, as part of plans to stimulate renewed investment in Britain's energy sector and reduce dependence on gas imports as its aging North Sea oil and gas fields start to run dry.

Exploration is still at an early stage in the U.K., making a reliable estimate of the country's reserves difficult. There has been no commercial shale gas production in the U.K. so far.

Cuadrilla said that technical analysis of the Bowland Shale confirms the company's previous estimate that the license area holds at least 200 trillion cubic feet of gas resources.

Cuadrilla, which is the only company using the controversial technology to explore for shale gas onshore in the U.K., halted fracking in May 2011 after two small seismic tremors were detected near their operations.

Cuadrilla is jointly owned by U.S. private-equity firm Riverstone LLC and Australian mining group AJ Lucas and management.

Copyright (c) 2012 Dow Jones & Company, Inc.

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Halliburton Launches New Recycling Service for Fracking Water

Halliburton announced the commercialization of its H2OForwardSM service. The new technology allows customers to recycle waste streams of produced water for use in well completions.

A part of Halliburton's Multi-Chem business line, the Water Management Solutions group formulates stable fracture fluids that have the ability to work with any waste stream, including water containing total dissolved solids (TDS) with values as high as 285,000 parts per million, for use in hydraulic fracturing operations.

"The H2OForward service provides a cost-effective customer solution that combines chemistry and innovative engineered technology," said James Archer, vice president of Halliburton's Multi-Chem business line.

"The product offerings from Water Management Solutions, including the CleanWave system and CleanStream service as well as our advancements in high TDS fluids are part of Halliburton's investment to further the sustainable development of the oil and gas industry," said Archer.

The new integrated service delivers technological advancements in fluid chemistry, water treatment and scale inhibition by using Halliburton's CleanWave system to treat the water, customizing both slickwater and crosslinked fracture fluid systems to work effectively with the high-TDS produced treated water, and reducing liquid biocides with Halliburton's CleanStream service technology.

"We believe the H2OForward service, especially the high-TDS fracture fluid formulations, is a paradigm shift that negates the use of fresh water and meets the supply chain needs of the customer," said Halliburton Global Strategic Business Manager – Water Management Solutions Walter Dale.

"This is no longer a technical issue; this is a function of logistics. Customers can now use produced water on unconventional wells with no loss of well productivity at a net economic benefit while minimizing the overall environmental impact," said Dale.

To date, Halliburton has completed more than 60 wells and 280 fracturing stages in the Permian and Bakken using its H2OForward services approach.

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Germany Debates Fracking as Energy Costs Rise

BERLIN - Germany is debating whether to allow hydraulic fracturing, a controversial drilling technique to extract natural gas from shale, amid growing concern that rising energy costs in the country could threaten its industrial backbone.

The German public is deeply suspicious of the drilling practice, commonly known as fracking. Many Germans worry that the process, which involves using a high-pressure mixture of water, sand and chemicals to break apart energy-rich rocks, could contaminate underground water supplies.

This week the government unveiled a proposal that it hopes can bridge the gap between pro-fracking advocates in industry and environmentally conscious voters. Through a change to existing laws, the government is proposing banning fracking near any water supply and in all national parks and conservation areas. Drilling anywhere else would be subject to approval based on an environmental-impact study.

The fracking debate comes as Germany is pursuing a radical restructuring of its energy sector. In the wake of the Fukushima nuclear disaster in Japan in 2011, Chancellor Angela Merkel abruptly declared that Germany would abandon nuclear power and transition to renewable energy sources such as wind and solar. As the use of nuclear power declines, Germany is filling the gap with a combination of renewable energy and coal-fired plants.

Yet Ms. Merkel's "energy revolution," as the shift away from nuclear has been dubbed, is having unexpected side effects.

Subsidies for renewable-energy producers that are financed in part through household electricity bills are causing electricity prices for ordinary consumers and industry to rise. Germany's biggest industrial power consumers have seen electricity prices per kilowatt hour rise nearly 40% in the past five years, according to the Cologne Institute for Economic Research, also known as IW. Electricity prices for industry are nearly 15% higher than the average in the 27-nation European Union, IW said.

"We have reached the pain threshold," said Michael Huther, IW's director. He added that data show that energy-intensive industries are already beginning to curtail investment in Germany because of higher electricity charges.

"We are beginning to observe a creeping disinvestment," he said.

As the country turns its back on nuclear power, it is also seeing its carbon emissions rise. Long a leader in cutting CO2 emissions, Germany's emissions rose 1.6% last year, according to the Environment Ministry, the first rise in years.

It is unclear what immediate impact increased natural-gas supplies would have on German electricity bills. Still, the availability of cheaper natural gas could help avert a large-scale return to coal in 2020. That is the year that Germany will shut down about six nuclear power stations and many of the country's coal-fired power plants will also shut down due to age. A plentiful supply of domestic natural gas could provide a better bridge fuel to replace nuclear power as Germany continues to build its alternative energy supply, say analysts.

If fracking is ultimately banned in Germany, analysts warn that Germany could miss out on a broader European energy boom. Eastern European countries like Poland and Ukraine have large shale deposits and are keen to exploit them.

Experts don't believe Germany has the kind of massive shale-gas deposits that are transforming the U.S. energy market. But there could be enough natural gas trapped underground to meet Germany's gas needs for about 50 years, based on the current rate of gas consumption, at costs below what Germany now pays for imported gas, analysts say.

So far, Ms. Merkel has sided with her wary public, expressing doubts about the viability of fracking in Germany and pledging to allow it only if it can be proven entirely safe. Ms. Merkel is trying to please the broader public, which surveys show is frightened by fracking, while not alienating industry, which is lobbying the government to do something about Germany's soaring energy costs.

"The compromise here is to allow for pilot projects to do testing," said Miranda Schreurs, director of the Berlin-based Environmental Policy Research Center and an adviser to the German government on the issue. "The government is trying to keep the door open for fracking to be able to say that if they do it, it will be safe."

Germany's energy industry welcomed the fact that the government has shied away from an outright ban on any fracking. The government's proposals are a compromise between the environment minister, who initially wanted to ban fracking, and the economy minister, who wants to allow it. Industry sees the compromise as a step that would allow for some testing and which could help determine whether fracking is harmful to the environment.

"Only at the end [of testing] will we be able to judge using all relevant criteria whether this makes sense-economically, environmentally, and regarding its acceptance by society," a spokesman for chemical and energy group BASF AG said. "To do that, we need the framework which is now being established."

Germany's powerful environmental lobby says the government's proposals don't go far enough and demand an outright ban. The opposition Green Party called the government's move a smoke screen. "It's like banning skiing in the Sahara," said Oliver Krischer, a Green Party member of parliament. "An environmental-impact study, which is also embraced by the gas industry, will do little."

Copyright (c) 2012 Dow Jones & Company, Inc.

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Expiry of NY Fracking Regulations Not Major Setback for Industry

Regulations proposed in September 2011 to govern hydraulic fracturing in New York State will expire Feb. 27, but contrary to media reports, this does not mean that the ban on hydraulic fracturing will be extended another year, said an attorney who represents oil and gas company interests in New York State.

Regulations proposed in 2011 would have implemented recommendations of the draft Supplemental Generic Environmental Impact Statement (SGEIS). New York Gov. Andrew Cuomo decided he wanted to implement hydraulic fracturing regulations based on recommendations made in the draft SGEIS because that's what environmentalists wanted, said Thomas S. West, founder and managing partner with The West Firm, an upstate New York-based law firm.

The regulations introduced in September 2011 faced adverse commentary from the oil and gas industry, who found the regulations poorly drafted, duplicative and unnecessarily stringent without any flexibility, West told Rigzone in an interview.

Under the state's administrative procedure act, the proposed regulations introduced in 2011 had to be finished within one year of the dated last hearing. A 90-day extension was granted for the regulations in November 2012, but no additional extensions are available, meaning that the proposed regulations will lapse at the end of this month.

While the rulemaking process will have to start over once the regulations expire, it doesn't affect the SGEIS, and a new rulemaking process could be proposed at any time, West noted.

New York Department of Health Commission Dr. Nirav R. Shah announced Feb. 12 that he would need a few more weeks to finish his health review on the impacts of hydraulic fracturing in New York in order to meet with the U.S. Environmental Protection Agency and those at the University of Pennsylvania and Geisinger Health Systems who are conducting studies on high volume hydraulic fracturing. Shah will then present his finding to Department of Environmental Conservation Commissioner Joe Martens.

Martens said in a statement that if Shah determines the SGEIS to have adequately addressed health concerns, and is adopted by Martens on that basis, then DEC can accept and process high volume hydraulic fracturing permit applications 10 days after the issuance of the SGEIS.

While the expiry of the regulations will delay the process further, it's not a significant setback because once the SGEIS is finalized, the DEC can process and issue permits.

“Whether permits will be issued before new regulations are proposed and finalized remains an open issue,” West said. "Theoretically, they could finish a new rulemaking before they could issue the permits because it will take 6 to 9 months for the first permits to be issued under the complex requirements recommended in the SGEIS."

From the industry's perspective, the lapsing of the proposed regulations is a good thing. While there some improvements in the regulations, they were still inflexible.

"We look forward to Dr. Shah's report, which will pave the way for the DEC to issue the SGEIS and begin processing permits as early as next month," West commented.

It is unlikely that drilling will take place before early next year, given that it will take six to nine months for the first permit applications to get through the process, West said.

"Once the first group of applications has been processed, we expect that the process will get more streamlined and could take as little as two to three months, assuming that resource surveys have been conducted."

Operators such as Chesapeake Energy have acquired acreage in New York State with plans to drill in the Marcellus shale play. The play, which has transformed the economic landscape of Pennsylvania, also extends across the border into southern New York.

However, environmental groups and other groups opposed to hydraulic fracturing, including Yoko Ono, have sought to block hydraulic fracturing in the state, citing concerns over hydraulic fracturing's impact on local water supplies and the environment.

New York Gov. Andrew Cuomo refuted a suggestion Wednesday that his administration was playing politics in further delaying a decision on hydraulic fracturing, saying the issue is "too important to make a mistake," according to an Associated Press report.

"For more than four years, the state has kept the Southern Tier waiting for an answer to the economic struggles that have caused people to leave, family farms to go under and small businesses to go bankrupt," said Karen Moreau, executive director for the New York State Petroleum Council, a division of the American Petroleum Institute, in a statement.

However, "Given the DEC Commission's assurances that this delay will not mean delays for issuing permits, we respect the administration's needs to finish this last study and finally come to a resolution," Moreau commented. "We also know that it can and must end with a decision to move forward with creating jobs in the Southern Tier."

In 2011, the U.S. Geological Survey (USGS) estimated the Marcellus shale gas to contain approximately 84 trillion cubic feet of undiscovered, technically recoverable natural gas and 3.4 billion barrels of undiscovered, technically recoverable natural gas liquids. The USGS Marcellus assessment covered parts of Pennsylvania, New York, West Virginia, Ohio, Kentucky, Maryland and Tennessee.

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com.

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Expiry of NY Fracking Regulations Not Major Setback for Industry

Regulations proposed in September 2011 to govern hydraulic fracturing in New York State will expire Feb. 27, but contrary to media reports, this does not mean that the ban on hydraulic fracturing will be extended another year, said an attorney who represents oil and gas company interests in New York State.

Regulations proposed in 2011 would have implemented recommendations of the draft Supplemental Generic Environmental Impact Statement (SGEIS). New York Gov. Andrew Cuomo decided he wanted to implement hydraulic fracturing regulations based on recommendations made in the draft SGEIS because that's what environmentalists wanted, said Thomas S. West, founder and managing partner with The West Firm, an upstate New York-based law firm.

The regulations introduced in September 2011 faced adverse commentary from the oil and gas industry, who found the regulations poorly drafted, duplicative and unnecessarily stringent without any flexibility, West told Rigzone in an interview.

Under the state's administrative procedure act, the proposed regulations introduced in 2011 had to be finished within one year of the dated last hearing. A 90-day extension was granted for the regulations in November 2012, but no additional extensions are available, meaning that the proposed regulations will lapse at the end of this month.

While the rulemaking process will have to start over once the regulations expire, it doesn't affect the SGEIS, and a new rulemaking process could be proposed at any time, West noted.

New York Department of Health Commission Dr. Nirav R. Shah announced Feb. 12 that he would need a few more weeks to finish his health review on the impacts of hydraulic fracturing in New York in order to meet with the U.S. Environmental Protection Agency and those at the University of Pennsylvania and Geisinger Health Systems who are conducting studies on high volume hydraulic fracturing. Shah will then present his finding to Department of Environmental Conservation Commissioner Joe Martens.

Martens said in a statement that if Shah determines the SGEIS to have adequately addressed health concerns, and is adopted by Martens on that basis, then DEC can accept and process high volume hydraulic fracturing permit applications 10 days after the issuance of the SGEIS.

While the expiry of the regulations will delay the process further, it's not a significant setback because once the SGEIS is finalized, the DEC can process and issue permits.

“Whether permits will be issued before new regulations are proposed and finalized remains an open issue,” West said. "Theoretically, they could finish a new rulemaking before they could issue the permits because it will take 6 to 9 months for the first permits to be issued under the complex requirements recommended in the SGEIS."

From the industry's perspective, the lapsing of the proposed regulations is a good thing. While there some improvements in the regulations, they were still inflexible.

"We look forward to Dr. Shah's report, which will pave the way for the DEC to issue the SGEIS and begin processing permits as early as next month," West commented.

It is unlikely that drilling will take place before early next year, given that it will take six to nine months for the first permit applications to get through the process, West said.

"Once the first group of applications has been processed, we expect that the process will get more streamlined and could take as little as two to three months, assuming that resource surveys have been conducted."

Operators such as Chesapeake Energy have acquired acreage in New York State with plans to drill in the Marcellus shale play. The play, which has transformed the economic landscape of Pennsylvania, also extends across the border into southern New York.

However, environmental groups and other groups opposed to hydraulic fracturing, including Yoko Ono, have sought to block hydraulic fracturing in the state, citing concerns over hydraulic fracturing's impact on local water supplies and the environment.

New York Gov. Andrew Cuomo refuted a suggestion Wednesday that his administration was playing politics in further delaying a decision on hydraulic fracturing, saying the issue is "too important to make a mistake," according to an Associated Press report.

"For more than four years, the state has kept the Southern Tier waiting for an answer to the economic struggles that have caused people to leave, family farms to go under and small businesses to go bankrupt," said Karen Moreau, executive director for the New York State Petroleum Council, a division of the American Petroleum Institute, in a statement.

However, "Given the DEC Commission's assurances that this delay will not mean delays for issuing permits, we respect the administration's needs to finish this last study and finally come to a resolution," Moreau commented. "We also know that it can and must end with a decision to move forward with creating jobs in the Southern Tier."

In 2011, the U.S. Geological Survey (USGS) estimated the Marcellus shale gas to contain approximately 84 trillion cubic feet of undiscovered, technically recoverable natural gas and 3.4 billion barrels of undiscovered, technically recoverable natural gas liquids. The USGS Marcellus assessment covered parts of Pennsylvania, New York, West Virginia, Ohio, Kentucky, Maryland and Tennessee.

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Expiry of NY Fracking Regulations Not Major Setback for Industry

Regulations proposed in September 2011 to govern hydraulic fracturing in New York State will expire Feb. 27, but contrary to media reports, this does not mean that the ban on hydraulic fracturing will be extended another year, said an attorney who represents oil and gas company interests in New York State.

Regulations proposed in 2011 would have implemented recommendations of the draft Supplemental Generic Environmental Impact Statement (SGEIS). New York Gov. Andrew Cuomo decided he wanted to implement hydraulic fracturing regulations based on recommendations made in the draft SGEIS because that's what environmentalists wanted, said Thomas S. West, founder and managing partner with The West Firm, an upstate New York-based law firm.

The regulations introduced in September 2011 faced adverse commentary from the oil and gas industry, who found the regulations poorly drafted, duplicative and unnecessarily stringent without any flexibility, West told Rigzone in an interview.

Under the state's administrative procedure act, the proposed regulations introduced in 2011 had to be finished within one year of the dated last hearing. A 90-day extension was granted for the regulations in November 2012, but no additional extensions are available, meaning that the proposed regulations will lapse at the end of this month.

While the rulemaking process will have to start over once the regulations expire, it doesn't affect the SGEIS, and a new rulemaking process could be proposed at any time, West noted.

New York Department of Health Commission Dr. Nirav R. Shah announced Feb. 12 that he would need a few more weeks to finish his health review on the impacts of hydraulic fracturing in New York in order to meet with the U.S. Environmental Protection Agency and those at the University of Pennsylvania and Geisinger Health Systems who are conducting studies on high volume hydraulic fracturing. Shah will then present his finding to Department of Environmental Conservation Commissioner Joe Martens.

Martens said in a statement that if Shah determines the SGEIS to have adequately addressed health concerns, and is adopted by Martens on that basis, then DEC can accept and process high volume hydraulic fracturing permit applications 10 days after the issuance of the SGEIS.

While the expiry of the regulations will delay the process further, it's not a significant setback because once the SGEIS is finalized, the DEC can process and issue permits.

“Whether permits will be issued before new regulations are proposed and finalized remains an open issue,” West said. "Theoretically, they could finish a new rulemaking before they could issue the permits because it will take 6 to 9 months for the first permits to be issued under the complex requirements recommended in the SGEIS."

From the industry's perspective, the lapsing of the proposed regulations is a good thing. While there some improvements in the regulations, they were still inflexible.

"We look forward to Dr. Shah's report, which will pave the way for the DEC to issue the SGEIS and begin processing permits as early as next month," West commented.

It is unlikely that drilling will take place before early next year, given that it will take six to nine months for the first permit applications to get through the process, West said.

"Once the first group of applications has been processed, we expect that the process will get more streamlined and could take as little as two to three months, assuming that resource surveys have been conducted."

Operators such as Chesapeake Energy have acquired acreage in New York State with plans to drill in the Marcellus shale play. The play, which has transformed the economic landscape of Pennsylvania, also extends across the border into southern New York.

However, environmental groups and other groups opposed to hydraulic fracturing, including Yoko Ono, have sought to block hydraulic fracturing in the state, citing concerns over hydraulic fracturing's impact on local water supplies and the environment.

New York Gov. Andrew Cuomo refuted a suggestion Wednesday that his administration was playing politics in further delaying a decision on hydraulic fracturing, saying the issue is "too important to make a mistake," according to an Associated Press report.

"For more than four years, the state has kept the Southern Tier waiting for an answer to the economic struggles that have caused people to leave, family farms to go under and small businesses to go bankrupt," said Karen Moreau, executive director for the New York State Petroleum Council, a division of the American Petroleum Institute, in a statement.

However, "Given the DEC Commission's assurances that this delay will not mean delays for issuing permits, we respect the administration's needs to finish this last study and finally come to a resolution," Moreau commented. "We also know that it can and must end with a decision to move forward with creating jobs in the Southern Tier."

In 2011, the U.S. Geological Survey (USGS) estimated the Marcellus shale gas to contain approximately 84 trillion cubic feet of undiscovered, technically recoverable natural gas and 3.4 billion barrels of undiscovered, technically recoverable natural gas liquids. The USGS Marcellus assessment covered parts of Pennsylvania, New York, West Virginia, Ohio, Kentucky, Maryland and Tennessee.

Karen Boman has more than 10 years of experience covering the upstream oil and gas sector. Email Karen at kboman@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

UK Fracking: A Safe Regulatory Environment?

Hydraulic fracturing operations are back on in the UK after the country's government declared in early December that it had lifted a temporary ban on the practice. But the controversy surrounding the safety of shale gas fracking has not gone away despite the announcement from the Chancellor of the Exchequer that the Department of Energy and Climate Change would establish an Office for Unconventional Gas and Oil.

The news was followed in January by an announcement from Cuadrilla Resources that it plans to submit a planning application to Lancashire County Council, in northwest England, to conduct hydraulic fracturing and flow testing at a well site near the village of Banks. In December, Rigzone reported that the British Geological Society believes shale deposits in the Bowland Basin area of Lancashire could amount to 300 trillion cubic feet of gas.

One of the conditions for the UK government's relenting over shale gas fracking was that it would be subject to new controls to mitigate the risks of seismic activity.

Fracking was originally suspended in the UK in May 2011 after two small seismic tremors were detected in Lancashire near what was then the country's only fracking operation.

As a result, companies planning to carry out hydraulic fracking must now:

Conduct a prior review before fracking begins to assess seismic risk and the existence of faultsSubmit a fracking plan to the Department of Energy and Climate Change (DECC) showing how seismic risks will be addressedCarry out seismic monitoring before, during and after fracking

The government also insists that a new traffic light system is employed to categorize seismic activity and direct appropriate responses, with a trigger mechanism being used to stop fracking operations in certain conditions.

Cuadrilla, meanwhile, appears to be taking the seismic issue very seriously. Late January, the company announced plans to install the same sensitive monitoring technology around its Anna's Road site that the company had already installed at the Banks site last year.

However, the new focus on monitoring seismic activity connected to fracking is not nearly enough to make the practice safe, according to several groups. As soon as the government decision to allow fracking was made in December, Friends of the Earth Executive Director Andy Atkins issued a statement in which he accused the government of being reckless and that the decision "threatens to contaminate our air and water".

Greenpeace UK added that Freedom of Information requests had revealed that the UK Environment Agency privately expressed fears to the government over threats to drinking water near proposed fracking sites in Sussex, England.

Greenpeace and Friends of the Earth are two organizations fundamentally opposed to any technology that will see an increased use in fossil fuels – even if it means the increased use of natural gas (which is cleaner in terms of carbon emissions than oil and coal). But there are other voices, friendlier to the oil and gas industry, who believe that the government has got it wrong when it comes to its approach to fracking.

Mike Hill, an engineer who lives in the area where Cuadrilla is carrying out its fracking operations, has been lobbying the UK government for a more rigorous approach to regulating the activity. Having worked in the oil and gas sector himself, and now a director of Gemini Control & Automation, he takes a more sober view of fracking but wants to see operations thoroughly checked to ensure it is done safely.

"I got involved in this about two years ago simply because, when I heard that fracking was coming to the UK, I knew that if it is not regulated properly the risks are fairly high," he told Rigzone in a recent interview.

After getting in touch with the UK's Health and Safety Executive (HSE) and the Environment Agency two years ago, Hill expected these bodies to be "very hot" when it came to regulating fracking.

"I was really expecting that was going to be the case but the responses I got at the time… were absolutely atrocious. It was breathtakingly complacent. Well, breathtakingly complacent from the HSE and, quite frankly, incompetent from the Environment Agency," he said.

"They didn't know what they were talking about. They don't understand oil and gas. They've never had to with [UK] oil companies being offshore and out of their scope and remit."

A key criticism Hill has is that these agencies – which are charged with health and safety, as well as environmental protection, in the UK – have been approaching the practice of fracking "with an offshore bent".

While acknowledging that the UK has sufficient regulations to ensure that its offshore oil and gas sector cannot cause another Deepwater Horizon or Exxon Valdez disaster, Hill believes that the problem with applying these same regulations onshore is that they do not take the public into account.

"There is no public offshore," he said.

"Cuadrilla is fracking 250 meters [820 feet] from the largest housing estate in Lytham St. Annes, with 2,000 homes on it. There is a public – a big one. And you can't ignore that fact."

"I live in the fracking zone. My kids live in the fracking zone. If this [activity] is properly regulated, I've no issue with it. I am not anti-fracking at all. But if you don't regulate this industry properly, introduce some specific onshore shale gas exploration regs and do proper inspections, then I do have a problem with it."

Hill, who has met with various government advisers involved with fracking (as well as Cuadrilla itself) several times during the past two years, has made it clear to them that he feels the offshore regulations developed in the 1990s, (following the North Sea’s Piper Alpha disaster in 1988) are not sufficient to address the issues with onshore drilling, exploration and production.

He wants to see regulations that cover the quality of cement used in onshore drilling, including onsite sampling and laboratory testing, along with several other regulations that will cover good safety practices such as: surface methane detection, post tremor actions, publication of which fracking chemicals are used at each well and the storage and disposal of flow-back water.

Hill also insists that well site inspections should be required and that they be random so that the Environment Agency or Health and Safety Executive can go and check which chemicals are being put down shale fracking wells "because, believe it or not, they don't check".

"You've got to have independent regulation. You can't just rely on self-regulation because, when push comes to shove, this is a very expensive business and if [a company] gets an issue that's going to cost it, say, three million pounds to resolve, or they can do it for 30,000 but in a slightly naughty manner, which option is it going to take when it knows categorically that no-one is inspecting and it absolutely won't be caught out? These are private companies that are there to make a profit."

The HSE confirmed to Rigzone that it made an inspection visit to Cuadrilla's Preese Hall and Grange Hill sites in March 2011 and that, as part of its well notification process, it has held six "inspection meetings" with Cuadrilla at both the firm's offices and at the HSE's own offices. The body also insists that it has well inspectors who "maintain regular contact" with Cuadrilla so that they are kept up to date with shale gas operations.

The HSE also made the point that well site visits, whether planned or unannounced, "can be of very limited value on their own in assessing well integrity and the management of well risks". Instead, it said that given the complexity of oil and gas wells "the key to well integrity inspection is to ensure that the operator is managing risks effectively throughout the life cycle of the well".

Hill is sticking to his guns, however, and believes a set of onshore drilling proper regulations are required to prevent a major incident.

"I think unless that happens we are going to have some sort of disaster at some point in time – our own version of Gaslands. There will be a public outcry and shale gas will then be banned in the UK. So we won't get that shale gas out of the ground and the UK won't benefit from the energy security it would provide."

A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

UK Fracking: A Safe Regulatory Environment?

Hydraulic fracturing operations are back on in the UK after the country's government declared in early December that it had lifted a temporary ban on the practice. But the controversy surrounding the safety of shale gas fracking has not gone away despite the announcement from the Chancellor of the Exchequer that the Department of Energy and Climate Change would establish an Office for Unconventional Gas and Oil.

The news was followed in January by an announcement from Cuadrilla Resources that it plans to submit a planning application to Lancashire County Council, in northwest England, to conduct hydraulic fracturing and flow testing at a well site near the village of Banks. In December, Rigzone reported that the British Geological Society believes shale deposits in the Bowland Basin area of Lancashire could amount to 300 trillion cubic feet of gas.

One of the conditions for the UK government's relenting over shale gas fracking was that it would be subject to new controls to mitigate the risks of seismic activity.

Fracking was originally suspended in the UK in May 2011 after two small seismic tremors were detected in Lancashire near what was then the country's only fracking operation.

As a result, companies planning to carry out hydraulic fracking must now:

Conduct a prior review before fracking begins to assess seismic risk and the existence of faultsSubmit a fracking plan to the Department of Energy and Climate Change (DECC) showing how seismic risks will be addressedCarry out seismic monitoring before, during and after fracking

The government also insists that a new traffic light system is employed to categorize seismic activity and direct appropriate responses, with a trigger mechanism being used to stop fracking operations in certain conditions.

Cuadrilla, meanwhile, appears to be taking the seismic issue very seriously. Late January, the company announced plans to install the same sensitive monitoring technology around its Anna's Road site that the company had already installed at the Banks site last year.

However, the new focus on monitoring seismic activity connected to fracking is not nearly enough to make the practice safe, according to several groups. As soon as the government decision to allow fracking was made in December, Friends of the Earth Executive Director Andy Atkins issued a statement in which he accused the government of being reckless and that the decision "threatens to contaminate our air and water".

Greenpeace UK added that Freedom of Information requests had revealed that the UK Environment Agency privately expressed fears to the government over threats to drinking water near proposed fracking sites in Sussex, England.

Greenpeace and Friends of the Earth are two organizations fundamentally opposed to any technology that will see an increased use in fossil fuels – even if it means the increased use of natural gas (which is cleaner in terms of carbon emissions than oil and coal). But there are other voices, friendlier to the oil and gas industry, who believe that the government has got it wrong when it comes to its approach to fracking.

Mike Hill, an engineer who lives in the area where Cuadrilla is carrying out its fracking operations, has been lobbying the UK government for a more rigorous approach to regulating the activity. Having worked in the oil and gas sector himself, and now a director of Gemini Control & Automation, he takes a more sober view of fracking but wants to see operations thoroughly checked to ensure it is done safely.

"I got involved in this about two years ago simply because, when I heard that fracking was coming to the UK, I knew that if it is not regulated properly the risks are fairly high," he told Rigzone in a recent interview.

After getting in touch with the UK's Health and Safety Executive (HSE) and the Environment Agency two years ago, Hill expected these bodies to be "very hot" when it came to regulating fracking.

"I was really expecting that was going to be the case but the responses I got at the time… were absolutely atrocious. It was breathtakingly complacent. Well, breathtakingly complacent from the HSE and, quite frankly, incompetent from the Environment Agency," he said.

"They didn't know what they were talking about. They don't understand oil and gas. They've never had to with [UK] oil companies being offshore and out of their scope and remit."

A key criticism Hill has is that these agencies – which are charged with health and safety, as well as environmental protection, in the UK – have been approaching the practice of fracking "with an offshore bent".

While acknowledging that the UK has sufficient regulations to ensure that its offshore oil and gas sector cannot cause another Deepwater Horizon or Exxon Valdez disaster, Hill believes that the problem with applying these same regulations onshore is that they do not take the public into account.

"There is no public offshore," he said.

"Cuadrilla is fracking 250 meters [820 feet] from the largest housing estate in Lytham St. Annes, with 2,000 homes on it. There is a public – a big one. And you can't ignore that fact."

"I live in the fracking zone. My kids live in the fracking zone. If this [activity] is properly regulated, I've no issue with it. I am not anti-fracking at all. But if you don't regulate this industry properly, introduce some specific onshore shale gas exploration regs and do proper inspections, then I do have a problem with it."

Hill, who has met with various government advisers involved with fracking (as well as Cuadrilla itself) several times during the past two years, has made it clear to them that he feels the offshore regulations developed in the 1990s, (following the North Sea’s Piper Alpha disaster in 1988) are not sufficient to address the issues with onshore drilling, exploration and production.

He wants to see regulations that cover the quality of cement used in onshore drilling, including onsite sampling and laboratory testing, along with several other regulations that will cover good safety practices such as: surface methane detection, post tremor actions, publication of which fracking chemicals are used at each well and the storage and disposal of flow-back water.

Hill also insists that well site inspections should be required and that they be random so that the Environment Agency or Health and Safety Executive can go and check which chemicals are being put down shale fracking wells "because, believe it or not, they don't check".

"You've got to have independent regulation. You can't just rely on self-regulation because, when push comes to shove, this is a very expensive business and if [a company] gets an issue that's going to cost it, say, three million pounds to resolve, or they can do it for 30,000 but in a slightly naughty manner, which option is it going to take when it knows categorically that no-one is inspecting and it absolutely won't be caught out? These are private companies that are there to make a profit."

The HSE confirmed to Rigzone that it made an inspection visit to Cuadrilla's Preese Hall and Grange Hill sites in March 2011 and that, as part of its well notification process, it has held six "inspection meetings" with Cuadrilla at both the firm's offices and at the HSE's own offices. The body also insists that it has well inspectors who "maintain regular contact" with Cuadrilla so that they are kept up to date with shale gas operations.

The HSE also made the point that well site visits, whether planned or unannounced, "can be of very limited value on their own in assessing well integrity and the management of well risks". Instead, it said that given the complexity of oil and gas wells "the key to well integrity inspection is to ensure that the operator is managing risks effectively throughout the life cycle of the well".

Hill is sticking to his guns, however, and believes a set of onshore drilling proper regulations are required to prevent a major incident.

"I think unless that happens we are going to have some sort of disaster at some point in time – our own version of Gaslands. There will be a public outcry and shale gas will then be banned in the UK. So we won't get that shale gas out of the ground and the UK won't benefit from the energy security it would provide."

A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

UK Fracking: A Safe Regulatory Environment?

Hydraulic fracturing operations are back on in the UK after the country's government declared in early December that it had lifted a temporary ban on the practice. But the controversy surrounding the safety of shale gas fracking has not gone away despite the announcement from the Chancellor of the Exchequer that the Department of Energy and Climate Change would establish an Office for Unconventional Gas and Oil.

The news was followed in January by an announcement from Cuadrilla Resources that it plans to submit a planning application to Lancashire County Council, in northwest England, to conduct hydraulic fracturing and flow testing at a well site near the village of Banks. In December, Rigzone reported that the British Geological Society believes shale deposits in the Bowland Basin area of Lancashire could amount to 300 trillion cubic feet of gas.

One of the conditions for the UK government's relenting over shale gas fracking was that it would be subject to new controls to mitigate the risks of seismic activity.

Fracking was originally suspended in the UK in May 2011 after two small seismic tremors were detected in Lancashire near what was then the country's only fracking operation.

As a result, companies planning to carry out hydraulic fracking must now:

Conduct a prior review before fracking begins to assess seismic risk and the existence of faultsSubmit a fracking plan to the Department of Energy and Climate Change (DECC) showing how seismic risks will be addressedCarry out seismic monitoring before, during and after fracking

The government also insists that a new traffic light system is employed to categorize seismic activity and direct appropriate responses, with a trigger mechanism being used to stop fracking operations in certain conditions.

Cuadrilla, meanwhile, appears to be taking the seismic issue very seriously. Late January, the company announced plans to install the same sensitive monitoring technology around its Anna's Road site that the company had already installed at the Banks site last year.

However, the new focus on monitoring seismic activity connected to fracking is not nearly enough to make the practice safe, according to several groups. As soon as the government decision to allow fracking was made in December, Friends of the Earth Executive Director Andy Atkins issued a statement in which he accused the government of being reckless and that the decision "threatens to contaminate our air and water".

Greenpeace UK added that Freedom of Information requests had revealed that the UK Environment Agency privately expressed fears to the government over threats to drinking water near proposed fracking sites in Sussex, England.

Greenpeace and Friends of the Earth are two organizations fundamentally opposed to any technology that will see an increased use in fossil fuels – even if it means the increased use of natural gas (which is cleaner in terms of carbon emissions than oil and coal). But there are other voices, friendlier to the oil and gas industry, who believe that the government has got it wrong when it comes to its approach to fracking.

Mike Hill, an engineer who lives in the area where Cuadrilla is carrying out its fracking operations, has been lobbying the UK government for a more rigorous approach to regulating the activity. Having worked in the oil and gas sector himself, and now a director of Gemini Control & Automation, he takes a more sober view of fracking but wants to see operations thoroughly checked to ensure it is done safely.

"I got involved in this about two years ago simply because, when I heard that fracking was coming to the UK, I knew that if it is not regulated properly the risks are fairly high," he told Rigzone in a recent interview.

After getting in touch with the UK's Health and Safety Executive (HSE) and the Environment Agency two years ago, Hill expected these bodies to be "very hot" when it came to regulating fracking.

"I was really expecting that was going to be the case but the responses I got at the time… were absolutely atrocious. It was breathtakingly complacent. Well, breathtakingly complacent from the HSE and, quite frankly, incompetent from the Environment Agency," he said.

"They didn't know what they were talking about. They don't understand oil and gas. They've never had to with [UK] oil companies being offshore and out of their scope and remit."

A key criticism Hill has is that these agencies – which are charged with health and safety, as well as environmental protection, in the UK – have been approaching the practice of fracking "with an offshore bent".

While acknowledging that the UK has sufficient regulations to ensure that its offshore oil and gas sector cannot cause another Deepwater Horizon or Exxon Valdez disaster, Hill believes that the problem with applying these same regulations onshore is that they do not take the public into account.

"There is no public offshore," he said.

"Cuadrilla is fracking 250 meters [820 feet] from the largest housing estate in Lytham St. Annes, with 2,000 homes on it. There is a public – a big one. And you can't ignore that fact."

"I live in the fracking zone. My kids live in the fracking zone. If this [activity] is properly regulated, I've no issue with it. I am not anti-fracking at all. But if you don't regulate this industry properly, introduce some specific onshore shale gas exploration regs and do proper inspections, then I do have a problem with it."

Hill, who has met with various government advisers involved with fracking (as well as Cuadrilla itself) several times during the past two years, has made it clear to them that he feels the offshore regulations developed in the 1990s, (following the North Sea’s Piper Alpha disaster in 1988) are not sufficient to address the issues with onshore drilling, exploration and production.

He wants to see regulations that cover the quality of cement used in onshore drilling, including onsite sampling and laboratory testing, along with several other regulations that will cover good safety practices such as: surface methane detection, post tremor actions, publication of which fracking chemicals are used at each well and the storage and disposal of flow-back water.

Hill also insists that well site inspections should be required and that they be random so that the Environment Agency or Health and Safety Executive can go and check which chemicals are being put down shale fracking wells "because, believe it or not, they don't check".

"You've got to have independent regulation. You can't just rely on self-regulation because, when push comes to shove, this is a very expensive business and if [a company] gets an issue that's going to cost it, say, three million pounds to resolve, or they can do it for 30,000 but in a slightly naughty manner, which option is it going to take when it knows categorically that no-one is inspecting and it absolutely won't be caught out? These are private companies that are there to make a profit."

The HSE confirmed to Rigzone that it made an inspection visit to Cuadrilla's Preese Hall and Grange Hill sites in March 2011 and that, as part of its well notification process, it has held six "inspection meetings" with Cuadrilla at both the firm's offices and at the HSE's own offices. The body also insists that it has well inspectors who "maintain regular contact" with Cuadrilla so that they are kept up to date with shale gas operations.

The HSE also made the point that well site visits, whether planned or unannounced, "can be of very limited value on their own in assessing well integrity and the management of well risks". Instead, it said that given the complexity of oil and gas wells "the key to well integrity inspection is to ensure that the operator is managing risks effectively throughout the life cycle of the well".

Hill is sticking to his guns, however, and believes a set of onshore drilling proper regulations are required to prevent a major incident.

"I think unless that happens we are going to have some sort of disaster at some point in time – our own version of Gaslands. There will be a public outcry and shale gas will then be banned in the UK. So we won't get that shale gas out of the ground and the UK won't benefit from the energy security it would provide."

A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Cabot Oil Agrees to Disclose Procedures for Fracking Fluids

New York State Comptroller Thomas P. DiNapoli said Cabot Oil & Gas Corp. has agreed to publicly disclose its policy and procedures for handling toxic substances in its hydraulic-fracturing fluids.

Oil companies have increasingly used hydraulic fracturing, or "fracking," to explore for oil and gas in shale rock formations. But environmentalists have said the technique--which blasts the rock with sand, chemicals and water--can contaminate groundwater.

Mr. DiNapoli said Tuesday he has withdrawn a shareholder proposal that called for a report on the use of these substances in Cabot's shale-energy operations.

Representatives for Cabot weren't immediately available for comment.

Mr. DiNapoli, as trustee of the $150.1 billion New York State Common Retirement Fund, has filed several resolutions over the past three years with oil and natural-gas companies concerning their disclosure of chemicals used in the hydraulic-fracturing process and reducing potential hazards associated with fracking.

The comptroller's office has also reached agreements with Hess Corp., Range Resources Corp. and SM Energy Co. under which the companies will disclose their hydraulic-fracturing activities.

Copyright (c) 2012 Dow Jones & Company, Inc.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

NY Budget Hearing Draws Fracking Opponents as Feb. Deadline Approaches

New York's Department of Environmental Conservation Commissioner Joe Martens met with state lawmakers for a budget hearing, which turned into a three-hour hydraulic fracturing discussion. The commissioner suggested Monday that the state may miss a Feb. 27 deadline to complete its proposed fracking regulations, further delaying the four-year review process.

If the Health Department recommends significant changes, the DEC process will be delayed by months. And if not finalized by the February deadline, DEC's proposed rules expire and would have to be reissued and subjected to another round of public comment.

At the hearing, Martens told legislators that there isn't a timetable for the Supplemental Generic Environmental Impact Statement's (SGEIS) environmental review of fracking, reported the Albany Times Union. Martens said that DEC is still waiting for the Department of Health to finalize its public health review.

"Everybody was under the understanding that the SGEIS would be done in February. So are you saying that is not happening?" Senator Tony Avella (Queens Democrat) asked Martens at the hearing.

"I have to wait until I get the health report until we make any decisions about whether we move forward or not," Martens replied.

The room that housed the hearing was filled with fracking opponents holding signs and openly commenting to Martens testimony, as well as politicians that have long opposed the drilling technique.

Assemblywoman Barbara Lifton, from Ithaca, stated, "people are extremely unsusceptible, to say the least, about the ability of New York state or any other state … that this industry can be adequately regulated … It is in fact dirty – it isn't a clean fuel. New York shouldn't be another guinea pig."

With more than 10 years of journalism experience, Robin Dupre specializes in the offshore sector of the oil and gas industry. Email Robin at rdupre@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

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NY Budget Hearing Draws Fracking Opponents as Feb. Deadline Approaches

New York's Department of Environmental Conservation Commissioner Joe Martens met with state lawmakers for a budget hearing, which turned into a three-hour hydraulic fracturing discussion. The commissioner suggested Monday that the state may miss a Feb. 27 deadline to complete its proposed fracking regulations, further delaying the four-year review process.

If the Health Department recommends significant changes, the DEC process will be delayed by months. And if not finalized by the February deadline, DEC's proposed rules expire and would have to be reissued and subjected to another round of public comment.

At the hearing, Martens told legislators that there isn't a timetable for the Supplemental Generic Environmental Impact Statement's (SGEIS) environmental review of fracking, reported the Albany Times Union. Martens said that DEC is still waiting for the Department of Health to finalize its public health review.

"Everybody was under the understanding that the SGEIS would be done in February. So are you saying that is not happening?" Senator Tony Avella (Queens Democrat) asked Martens at the hearing.

"I have to wait until I get the health report until we make any decisions about whether we move forward or not," Martens replied.

The room that housed the hearing was filled with fracking opponents holding signs and openly commenting to Martens testimony, as well as politicians that have long opposed the drilling technique.

Assemblywoman Barbara Lifton, from Ithaca, stated, "people are extremely unsusceptible, to say the least, about the ability of New York state or any other state … that this industry can be adequately regulated … It is in fact dirty – it isn't a clean fuel. New York shouldn't be another guinea pig."

With more than 10 years of journalism experience, Robin Dupre specializes in the offshore sector of the oil and gas industry. Email Robin at rdupre@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

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McMoRan Preps Davy Jones Well for Fracking Ops

McMoRan Exploration Co. updated the status of the Davy Jones No. 1 well on South Marsh Island Block 230. As previously reported, McMoRan is developing plans at the Davy Jones No. 1 well to pump a hydraulic fracture treatment including proppant to facilitate hydrocarbon movement into the wellbore. Future plans will incorporate data gained to date at Davy Jones as well as potential core and log data from the in progress well at Lineham Creek, located onshore approximately 50 miles northwest of Davy Jones. The rig is being moved off location for several months while a large scale hydraulic fracture treatment is designed to penetrate the Wilcox reservoirs.

As previously reported, the Davy Jones No. 1 well logged 200 net feet of pay in multiple Wilcox sands, which were all full to base. The Davy Jones offset appraisal well (Davy Jones No. 2), which is located 2.5 miles southwest of Davy Jones No. 1, confirmed 120 net feet of pay in multiple Wilcox sands, indicating continuity across the major structural features of the Davy Jones prospect, and also encountered 192 net feet of potential hydrocarbons in the Tuscaloosa and Lower Cretaceous carbonate sections.

McMoRan is the operator and holds a 63.4 percent working interest and a 50.2 percent net revenue interest in Davy Jones. Other working interest owners in Davy Jones include: Energy XXI (15.8%), JX Nippon Oil Exploration (Gulf) Limited (12%) and Moncrief Offshore LLC (8.8%).

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