Showing posts with label Fracturing. Show all posts
Showing posts with label Fracturing. Show all posts

Sunday, August 4, 2013

Revised Hydraulic Fracturing Rule Available for Comment Period

Industry Execs See Higher Costs, Improved Safety with New Regulations

An updated draft rule that would empower the Bureau of Land Management (BLM) to regulate hydraulic fracturing on U.S. federal and Indian lands will be made available for an additional 30-day public comment period before the rule is finalized.

The "common sense" regulatory update is needed to bring rules originally written in the time of Sony Walkmans and Atari video games into the 21st century, Secretary of the Interior Sally Jewell told reporters in a conference call on Thursday.

"Regulations need to keep pace with advances in technology," said Jewell, noting her oil and gas industry experience and knowledge of how hydraulic fracturing works and the need to safely tap U.S. oil and gas resources.

BLM, an agency within the Department of Interior (DOI), initiated plans to update federal hydraulic fracturing regulations in late November 2010, when federal and state officials and NGO representatives discussed the need to modernize hydraulic fracturing regulations. Using information gathered from eight public forums across the United States and consultation with tribal officials, an initial proposed rule was written and released in May 2012, said DOI Deputy Secretary David J. Hayes during the conference call.

The updated proposed rule takes into account the more than 177,000 comments gathered in a 120-day comment period last year from the oil and gas industry, tribal officials, and other stakeholders. In January, BLM said it would publish an updated proposal to maximize flexibility, facilitate coordination with state practices and ensure operators utilize best practices on public lands.

"We look forward to receiving additional comments, and feel it is important to move forward as stewards of the state with sound regulations," Hayes noted.

The updated rule focuses solely on hydraulic fracturing and retains the three main components of the original proposal, requiring operators to disclose the chemicals they use in hydraulic fracturing, improving assurances for wellbore integrity to confirm that fluids are not contaminating groundwater, and requiring oil and gas operators to have a water management plan in place to handle flowback water.


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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

Saturday, August 3, 2013

Revised Hydraulic Fracturing Rule Available for Comment Period

Industry Execs See Higher Costs, Improved Safety with New Regulations

An updated draft rule that would empower the Bureau of Land Management (BLM) to regulate hydraulic fracturing on U.S. federal and Indian lands will be made available for an additional 30-day public comment period before the rule is finalized.

The "common sense" regulatory update is needed to bring rules originally written in the time of Sony Walkmans and Atari video games into the 21st century, Secretary of the Interior Sally Jewell told reporters in a conference call on Thursday.

"Regulations need to keep pace with advances in technology," said Jewell, noting her oil and gas industry experience and knowledge of how hydraulic fracturing works and the need to safely tap U.S. oil and gas resources.

BLM, an agency within the Department of Interior (DOI), initiated plans to update federal hydraulic fracturing regulations in late November 2010, when federal and state officials and NGO representatives discussed the need to modernize hydraulic fracturing regulations. Using information gathered from eight public forums across the United States and consultation with tribal officials, an initial proposed rule was written and released in May 2012, said DOI Deputy Secretary David J. Hayes during the conference call.

The updated proposed rule takes into account the more than 177,000 comments gathered in a 120-day comment period last year from the oil and gas industry, tribal officials, and other stakeholders. In January, BLM said it would publish an updated proposal to maximize flexibility, facilitate coordination with state practices and ensure operators utilize best practices on public lands.

"We look forward to receiving additional comments, and feel it is important to move forward as stewards of the state with sound regulations," Hayes noted.

The updated rule focuses solely on hydraulic fracturing and retains the three main components of the original proposal, requiring operators to disclose the chemicals they use in hydraulic fracturing, improving assurances for wellbore integrity to confirm that fluids are not contaminating groundwater, and requiring oil and gas operators to have a water management plan in place to handle flowback water.


1234

View Full Article

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

Tuesday, June 4, 2013

TRC Adopts New Hydraulic Fracturing Water Reuse Rules

The Texas Railroad Commission (TRC) Tuesday adopted new rules to encourage Texas operators to continue their efforts at conserving water used in the hydraulic fracturing process for oil and gas wells, even though hydraulic fracturing and total mining use accounts for less than 1 percent of statewide water use, with irrigation, municipalities and manufacturing making up state’s top three water consumers.

Major changes adopted to the Commission’s water recycling rules include eliminating the need for a Commission recycling permit if operators are recycling fluid on their own leases or transferring their fluids to another operator’s lease for recycling. The changes adopted by the Commission today also clearly identify recycling permit application requirements and reflect existing standard field conditions for recycling permits.

Chairman Barry Smitherman said, "By removing regulatory hurdles, these new amendments will help foster the recycling efforts by oil and gas operators who continue to examine ways to reduce freshwater use when hydraulically fracturing well."

Commissioner David Porter said, "Water use has been a major concern examined by my Eagle Ford Shale Task Force, and I commend our staff for working to streamline our rules to encourage more recycling."

Commissioner Christi Craddick said, "Just as our operators have used technology to bring us into this modern day boom of oil production, they are also using technology to reduce their fresh water use. The changes adopted today will assist in those efforts."

The rule amendment also establishes five categories of commercial recycling permits to reflect industry practices in the field:

On-lease Commercial Solid Oil and Gas Waste Recycling

Off-lease or Centralized Commercial Solid Oil and Gas Waste Recycling

Stationary Commercial Solid Oil and Gas Waste Recycling

Off-lease Commercial Recycling of Fluid; and

Stationary Commercial Recycling of Fluid

The changes to the rule also establish a tiered approach for the reuse of treated fluid, including both authorized reuse of treated fluids in oil and gas operations and provisions for reusing the fluid for other non-oilfield related uses.

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

Monday, June 3, 2013

TRC Adopts New Hydraulic Fracturing Water Reuse Rules

The Texas Railroad Commission (TRC) Tuesday adopted new rules to encourage Texas operators to continue their efforts at conserving water used in the hydraulic fracturing process for oil and gas wells, even though hydraulic fracturing and total mining use accounts for less than 1 percent of statewide water use, with irrigation, municipalities and manufacturing making up state’s top three water consumers.

Major changes adopted to the Commission’s water recycling rules include eliminating the need for a Commission recycling permit if operators are recycling fluid on their own leases or transferring their fluids to another operator’s lease for recycling. The changes adopted by the Commission today also clearly identify recycling permit application requirements and reflect existing standard field conditions for recycling permits.

Chairman Barry Smitherman said, "By removing regulatory hurdles, these new amendments will help foster the recycling efforts by oil and gas operators who continue to examine ways to reduce freshwater use when hydraulically fracturing well."

Commissioner David Porter said, "Water use has been a major concern examined by my Eagle Ford Shale Task Force, and I commend our staff for working to streamline our rules to encourage more recycling."

Commissioner Christi Craddick said, "Just as our operators have used technology to bring us into this modern day boom of oil production, they are also using technology to reduce their fresh water use. The changes adopted today will assist in those efforts."

The rule amendment also establishes five categories of commercial recycling permits to reflect industry practices in the field:

On-lease Commercial Solid Oil and Gas Waste Recycling

Off-lease or Centralized Commercial Solid Oil and Gas Waste Recycling

Stationary Commercial Solid Oil and Gas Waste Recycling

Off-lease Commercial Recycling of Fluid; and

Stationary Commercial Recycling of Fluid

The changes to the rule also establish a tiered approach for the reuse of treated fluid, including both authorized reuse of treated fluids in oil and gas operations and provisions for reusing the fluid for other non-oilfield related uses.

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

Saturday, June 1, 2013

EPA Advisory Board Forms Panel to Peer Review Hydraulic Fracturing

The Environmental Protection Agency (EPA) has formed the Hydraulic Fracturing Research Advisory panel, consisting of an independent body to peer-review the agency’s research on hydraulic fracturing and its potential impact on drinking water resources.

"Serious concerns have been raised by citizens and their representatives about the potential impact of hydraulic fracturing on drinking water, human health and the environment,” EPA said on their website. “These concerns demand further study."

The Hydraulic Fracturing Research Advisory Panel, made up of 31 nationwide academics and experts, was created by EPA’s Science Advisory Board (SAB) to review a congressionally ordered 2014 draft report looking at the potential health impacts of hydraulic fracturing on drinking water resources.

EPA said it will conduct research using the best available science through independent sources of information, and will conduct the study in consultation with others using a transparent, peer-reviewed process. Furthermore, EPA noted that this study is intended to both provide the data where there is a lack of adequate information and to contribute to resolving scientific uncertainties.

In March 2010, EPA announced that Congress directed the organization to conduct the study. The draft study plan was submitted to EPA’s Science Advisory Board (SAB) for review in March 2011 with a final draft report expected for release for public comment and peer review in late 2014.

"Our final report on the potential impacts of hydraulic fracturing on drinking water resources must be based on sound science and take into account the latest practices being used by the industry,” Acting Administrator Bob Perciasepe said in a written statement. “We have worked to ensure that the study process be open and transparent throughout, and the SAB panel is another example of our approach of openness and scientific rigor."

The SAB sought public nominations of nationally and internationally recognized scientists and engineers having experience and expertise related to hydraulic fracturing in an August 2012 Federal Register notice.

SAB is scheduled to convene on May 7 and 8, 2013 to provide feedback from the panel members regarding EPA’s 2012 progress report on the study. The public will also have the opportunity to provide comments for the panel’s consideration, noted EPA.

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

Tuesday, March 19, 2013

Bill Seeks to Lift Ban on Hydraulic Fracturing in North Carolina

A North Carolina state senator has introduced legislation that would lift the state's ban on issuing permits for shale exploration and production in a move to spur economic development within the state.

Senate Bill (SB) 76, the Domestic Energy Jobs Act, would authorize the state's Department of Environment and Natural Resources to issue permits on or after March 1, 2015 for oil and gas exploration and production in North Carolina, including the use of horizontal drilling and hydraulic fracturing.

The bill, introduced into the state's General Assembly earlier this month, also directs North Carolina's Mining and Energy Commission, with the assistance of the state's Department of Environment and Natural Resources, to study development of a comprehensive environmental permit for oil and gas exploration and development activities that involve horizontal drilling and hydraulic fracturing.

This permit would encompass well construction, siting, and closure requirements, hydraulic fracturing treatments, including subsurface injection of fluids; water quality, and management and regulation of water resources, waste and air emissions.

The Department of Natural Resources will also seek needed approvals from the U.S. Environmental Protection Agency for a coordinated permitting program to allow a single comprehensive environmental permit for oil and gas exploration and development activities using horizontal drilling and hydraulic fracturing treatments.

The Mining and Energy Commission will report its findings and recommendations to the Environmental Review Commission and the Joint Legislative Commission on Energy Policy on or before Oct. 1, 2013.

SB 76 would modify appointments to the state's Mining and Energy Commission and modify provisions in the state's Oil and Gas Conservation Act concerning the Mining and Energy Commission's authority to set allowables, or to allocate or pro-rate production.

Additionally, SB 76 would appropriate money from the state's mineral interest fund to the Department of Environment and Natural Resources to operate the Mining and Energy Commission and for related expenditures, and assign future revenue from energy exploration and production to preserve North Carolina's natural resources, cultural heritage and quality of life.

The bill would also:

Eliminate the registration requirements for people conducting landmen activities in the stateEstablish a tax for energy produced from the state's soil and gas waterRepeal outdated oil and gas tax statutes, and authorize suspension of permits for failure to file a return for severance taxesEncourage the Governor to Develop the Regional Interstate Offshore Energy Policy CompactAmend the Energy Policy Act of 1975 and the Energy Policy CouncilDirect the medical care commission to adopt rules authorizing facilities licensed by the Department of Health and Human Services to use compressed natural gas as an emergency fuel

In July 2012, North Carolina's General Assembly ratified the Clean Energy and Economic Security Act, which reorganized the state's Mining Commission as the North Carolina Mining and Energy Commission, and directed the commission and other state regulatory agencies to develop a modern regulatory program for the management of oil and gas activity in the state, including horizontal drilling and hydraulic fracturing.

This bill also authorized horizontal drilling and hydraulic fracturing, but prohibited permits for these activities being issued pending subsequent legislative action. This bill also sought to enhance landowner and public protections related to horizontal drilling and hydraulic fracturing, and called for establishment of a joint legislative commission on energy policy.

The U.S. Geological Survey in 2011 estimated that mean undiscovered natural gas resources of 3,860 billion cubic feet and a mean undiscovered gas liquids resource of 135 million barrels existed in continuous accumulations within five of the U.S. East Coast Mesozoic basins. These basins include the Deep River, Dan River-Danville and Richmond basins within North Carolina's Piedmont Province.

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

Saturday, February 9, 2013

Musings: Hydraulic Fracturing Issue Encounters Protests And Movies

USGS: Estimate of Conventional Gas Resources Grows Internationally

On Friday, January 11, a 30-day public comment period in New York State on the issue of hydraulic fracturing ended, but not without a certain amount of high-drama. The wife and son of the late Beatles star John Lennon, Yoko Ono and Sean Lennon, led a group of protestors on a visit to the Albany office of New York Governor Andrew Cuomo (Dem) and the Department of Environmental Conservation. At the latter stop, the duo, who founded Artists Against Fracking last July, delivered 50 boxes reportedly containing 204,000 comments about hydraulic fracturing.

Around the same time, Ms. Ono had an op-ed published in the Albany Times Union in which she wrote, "My husband, John Lennon, and I bought a beautiful farm in rural New York more than 30 years ago. Like the rest of our state, this peaceful farming community is threatened by fracking for gas. She went on to say, “Governor Cuomo, please don’t frack New York. Don’t allow our beautiful landscapes to be ruined, or our precious and famous clean water to be dirtied."

Sean Lennon has made the point that his father’s home, which was purchased for its beauty and serenity, would be threatened by the possible construction of a pipeline to haul natural gas from Northeastern Pennsylvania (the Marcellus formation) to New York City and New England. While he is not stating that the property would be the site of drilling and fracturing activity, but the pipeline would be needed if fracturing was allowed to occur in the region near their home.

Gov. Cuomo has been wrestling with the fracking issue for over a year while watching upstate New York’s economy languish due to fallout from the financial crisis and resulting recession. In his recent State of the State message, Gov. Cuomo made the following point about the problems of that region. "We need an additional focus on upstate New York. There have been decades of decline in upstate New York. When you look at the job growth in upstate New York, frankly, it is sad and troubling."

The Governor has been reminded of the economic benefits of shale development from a leading Democrat, former Pennsylvania Governor Ed Rendell (Dem), who allowed development of the Marcellus Shale in his state, which has contributed significantly to that state’s economic recovery. The economic benefits of shale’s development were recently pointed out by Rachael Colley and Joe Massaro, field directors with Energy in Depth, a public outreach campaign funded by the Independent Petroleum Association of America, who said, "The ‘state’ of New York State is grim. Natural-gas development could be the light at the end of the gloomy tunnel."

Gov. Cuomo says he is working on an overall energy development plan for the state and suggests that his silence on the issue and reluctance to release an environmental study on the health impacts from hydraulic fracturing should not be taken as a sign that he has reached a decision. He did, however, recently hire Richard L. Kauffman, a former adviser to U.S. Energy Secretary Steven Chu, to serve as New York’s new energy secretary. Some are interpreting the move as an indication that Gov. Cuomo is prepared to take dramatic steps on energy policy.

The Governor should recognize that a decision to support fracturing, even if restricted to just those few New York State counties that border the Pennsylvania shale development activity, will not be popular with many citizens such as those following Ms. Ono and Mr. Lennon. Ms. Ono told supporters and Rolling Stone magazine that "If they do this, there will be a class action, and the class action is going to hit everybody who is doing this. It’s going to go on and on and on. Do we want that?"

We’re not sure whether Gov. Cuomo was holding off his decision in anticipation that Matt Damon’s movie, Promised Land, would bring some clarity to the fracking issue. The much anticipated movie, which released a trailer last fall to tease potential viewers about the message of the film, arrived with a whimper – and not many positive reviews. We’ll leave the acting reviews to Hollywood-types, but having seen the movie during its second weekend of release, we suggest you save your $8 ticket money.

The movie is cute and delivers a twist at the end, which we interpreted as an attempt by Mr. Damon, who both co-authored the script and was the lead actor, to garner sympathy from the anti-fracking people in the audience. It is presented as a morality play with Mr. Damon as the "bad" guy who eventually becomes a "good guy only to suffer at the hands of both the owners of the land whose mineral rights he is trying to lease and his bosses at Global, the $9-billion-a-year natural gas company. The discussions about hydraulic fracturing are incomplete and largely inaccurate, so one should not hold out hope that the topic would be advanced by the movie.

In a movie of this type, you would expect some interesting scenes, characters and dialogue. There were a few, but often we wound up shaking our head at the illogical events and explanations or outright mischaracterization of facts. However, we found one scene early in the movie quite funny. As Mr. Damon and Frances McDormand, playing his assistant, were driving through the Pennsylvania country-side on the way to visit a local farmer, he comments on how the landscape looks like Kentucky. We laughed because when we first saw the scenery, my wife leaned over to me and said “it looks like Kentucky,” based on the farmland of the Whiskey Trail that we drove last year on our way to Rhode Island. Having Mr. Damon make the same claim literally seconds after my wife did was very funny.

The new year will certainly not lessen the focus on shale development and the role played by hydraulic fracturing. President Barack Obama’s emphasis on climate change and environmental stewardship in his inaugural address means the federal government will be energized to resolve the science of fracking and set forth a path to a cleaner and cooler environment. For a president focused on his legacy, this mission offers many opportunities to legislate, if not to govern through executive order, Mr. Obama’s preferred way to deal with an uncooperative Congress. Mr. Obama certainly hopes the message of his second inauguration day will be looked back upon much as how Walter Cronkite used to close his 1950s "You Are There" history shows: "What sort of day was it? A day like all days, filled with those events that alter and illuminate our times … and you were there."

G. Allen Brooks works as the Managing Director at PPHB LP. Reprinted with permission of PPHB.

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

Sunday, April 8, 2012

Hydraulic Fracturing and Regulation

Shale oil and natural gas development in the United States has been a clear economic success story during a time when successes have been few.  Our industry has been producing energy, jobs and revenue at a strong clip.  And yet we’ve only begun to realize the benefits of energy from shale.  

The industry is committed to producing this energy safely and responsibly, and in addition to strong industry standards, there are appropriate federal and state regulations in place for oil and natural gas operations, including those that employ hydraulic fracturing.  And many state rules have recently been strengthened. 

So it is a concern that there are now 10 separate federal government agencies looking to study and potentially add new and unnecessary layers of regulations on hydraulic fracturing, the technology on which 70 percent of future gas wells depend. 

Unnecessary layers of federal regulation could increase costs and delays for operators, which could harm new projects, sacrificing thousands of new jobs and depriving government of billions in revenue.

We are strongly encouraging policymakers and elected officials to keep shale energy development moving forward.  So during this election year, we will encourage voters to learn more about energy and about the candidates’ positions on energy policies, and to make energy a ballot box decision in 2012.

The benefits of shale energy development are indisputable.

Just yesterday, a new study in Ohio said development of the Utica Shale could mean 65,000 new jobs in the next two years.In Pennsylvania, development of the Marcellus Shale created 72,000 new jobs from late 2009 to early 2011.   In North Dakota, shale development helped drive down unemployment in the state to the lowest level in the nation, helped produce a state budget surplus of $1 billion, and elevated North Dakota to the nation’s fourth largest oil producer.  In Arkansas, shale development has boosted state revenue by more than $1.5 billion over the last few years. Houston is the first metropolitan area in the United States to regain all of the jobs lost during the recession, an analysis by the Texas Workforce Commission has concluded.  Many of the new jobs likely relate to the oil and natural gas industry and to shale development.A study by former Census officials of U.S. household income in nine geographic regions between 2007 and 2010 found it increasing only in the four-state oil patch region: Louisiana, Texas, Oklahoma and Arkansas – all centers of shale energy development.Nationwide, shale gas development was supporting 600,000 jobs in 2010, according to a December IHS-Global Insight report.Also, natural gas prices have fallen by half from their level three years ago.  That is benefiting families that heat their homes with natural gas, as well as businesses and consumers that buy their electricity from utilities that generate it with natural gas.  Low natural gas prices are also benefiting chemical manufacturers and other businesses that use natural gas a raw material, and they are encouraging businesses to locate new facilities in America rather than overseas.  Dow Chemical, for example, plans to reopen an ethylene production plant near Hahnville, Louisiana, this year and build another one on the Gulf coast by 2017.  It also plans to build a new propylene plant in Texas by 2015.

And there is every reason to believe we could see more of all of these benefits in the future.  The IHS-Global Insight study estimates that the shale gas industry alone could support 1.6 million jobs by 2035, driven by capital investment approaching $2 trillion.

Finally, an analysis from PricewaterhouseCoopers concludes that shale gas development – and more affordable natural gas supplies – could support about one million U.S. manufacturing jobs in 2025.

To realize the full extent of this promise, therefore, we must be thoughtful about any changes to an already robust regulatory structure for hydraulic fracturing.  We don’t need unnecessary or duplicative rules from multiple federal agencies. 

The administration has been advocating more oil and natural gas development.  It has also called for streamlining regulations.  We believe they could do much to achieve both objectives by taking a critical look at what its various agencies are proposing to do on hydraulic fracturing and shale energy development. 

The direction they’re headed in won’t be conducive to the development of energy we know our nation will need and the production of which could provide tremendous additional benefits to our economy. The administration needs to reconsider the wisdom of adding unnecessary layers of federal regulation on this truly game-changing opportunity.  A significant change of course is needed.


View the original article here

Thursday, March 22, 2012

Hydraulic Fracturing and Regulation

 

Shale oil and natural gas development in the United States has been a clear economic success story during a time when successes have been few.  Our industry has been producing energy, jobs and revenue at a strong clip.  And yet we’ve only begun to realize the benefits of energy from shale.  


The industry is committed to producing this energy safely and responsibly, and in addition to strong industry standards, there are appropriate federal and state regulations in place for oil and natural gas operations, including those that employ hydraulic fracturing.  And many state rules have recently been strengthened. 


So it is a concern that there are now 10 separate federal government agencies looking to study and potentially add new and unnecessary layers of regulations on hydraulic fracturing, the technology on which 70 percent of future gas wells depend. 


Unnecessary layers of federal regulation could increase costs and delays for operators, which could harm new projects, sacrificing thousands of new jobs and depriving government of billions in revenue.


We are strongly encouraging policymakers and elected officials to keep shale energy development moving forward.  So during this election year, we will encourage voters to learn more about energy and about the candidates’ positions on energy policies, and to make energy a ballot box decision in 2012.


The benefits of shale energy development are indisputable.

Just yesterday, a new study in Ohio said development of the Utica Shale could mean 65,000 new jobs in the next two years.In Pennsylvania, development of the Marcellus Shale created 72,000 new jobs from late 2009 to early 2011.   In North Dakota, shale development helped drive down unemployment in the state to the lowest level in the nation, helped produce a state budget surplus of $1 billion, and elevated North Dakota to the nation’s fourth largest oil producer.  In Arkansas, shale development has boosted state revenue by more than $1.5 billion over the last few years. Houston is the first metropolitan area in the United States to regain all of the jobs lost during the recession, an analysis by the Texas Workforce Commission has concluded.  Many of the new jobs likely relate to the oil and natural gas industry and to shale development.A study by former Census officials of U.S. household income in nine geographic regions between 2007 and 2010 found it increasing only in the four-state oil patch region: Louisiana, Texas, Oklahoma and Arkansas – all centers of shale energy development.Nationwide, shale gas development was supporting 600,000 jobs in 2010, according to a December IHS-Global Insight report.Also, natural gas prices have fallen by half from their level three years ago.  That is benefiting families that heat their homes with natural gas, as well as businesses and consumers that buy their electricity from utilities that generate it with natural gas.  Low natural gas prices are also benefiting chemical manufacturers and other businesses that use natural gas a raw material, and they are encouraging businesses to locate new facilities in America rather than overseas.  Dow Chemical, for example, plans to reopen an ethylene production plant near Hahnville, Louisiana, this year and build another one on the Gulf coast by 2017.  It also plans to build a new propylene plant in Texas by 2015.

And there is every reason to believe we could see more of all of these benefits in the future.  The IHS-Global Insight study estimates that the shale gas industry alone could support 1.6 million jobs by 2035, driven by capital investment approaching $2 trillion.


Finally, an analysis from PricewaterhouseCoopers concludes that shale gas development – and more affordable natural gas supplies – could support about one million U.S. manufacturing jobs in 2025.


To realize the full extent of this promise, therefore, we must be thoughtful about any changes to an already robust regulatory structure for hydraulic fracturing.  We don’t need unnecessary or duplicative rules from multiple federal agencies. 


The administration has been advocating more oil and natural gas development.  It has also called for streamlining regulations.  We believe they could do much to achieve both objectives by taking a critical look at what its various agencies are proposing to do on hydraulic fracturing and shale energy development. 


The direction they’re headed in won’t be conducive to the development of energy we know our nation will need and the production of which could provide tremendous additional benefits to our economy. The administration needs to reconsider the wisdom of adding unnecessary layers of federal regulation on this truly game-changing opportunity.  A significant change of course is needed.


View the original article here