For those of you new to the hydraulic fracturing or “hydro-fracking” process used to extract natural gas in shale, here is an excellent power point presentation to introduce you.
Marcellus Shale Map
Oil and natural gas exploration in the US and in Her offshore waters is and has always been fraught with controversy. Natural gas is a fossil fuel which consists primarily of methane. It is an important fuel source and also a component of fertilizer.
Of course along with natural gas mining and production comes a wealth of jobs. From site preparation, the extraction process, safety of the environment, transportation and then the refining process. Many of these gas deposits lay near the surface of the earth but others lay deep within the rock called “shale.” The problem with shale is it has insufficient permeability to allow enough fluid flow to a well bore. One analyst has estimated that as much as one half of US gas production by the year 2020 could come from shale gas.
Because of the unique properties of shale, the extraction of natural gas in these areas requires a different method called “hydraulic fracking.” This “fracking” or “fracturing” of the rock can be either natural or man-made and is extended by internal fluid pressure which opens the fracture and causes it to grow into the rock. Man-made fractures are created by pumping a cocktail of various chemicals through a bore hole. The fracture must then be kept open, usually by sand. This “fracking” process is highly controversial and many environmentalists as well as citizens are opposed to it.
Parts of New York and Ohio, a good portion of Pennsylvania, and most of West Virginia sit on what is called the “Marcellus Shale.” Above is a map of the Marcellus Shale (gray). [Modified after: United States Geological Survey, Open-File Report 2006-1237, Assessment of Appalachian Basin oil and gas resources: Devonian Shale-Middle and Upper Paleozoic Total Petroleum System, by Robert Milici and Christopher Swezey.]
Despite all the wealth of jobs and revenue natural gas exploration has provided the state of New York, citizens were able to convince the NY Assembly to pass a bill which would have halted all hydro-fracking and potential natural gas and oil exploration in the state. However, Governor Paterson vetoed the bill last week and instead Executive Ordered in his own moratorium which bans drilling at least until May 15, on horizontal drilling only, not vertical drilling.
The Independent Oil and Gas Association of New York (IOGA of NY) praises Paterson for his courage to veto the legislation.
U.S. Energy’s president Douglas Welch said had the bill become law, his company would have been severely impacted, resulting in loss of thousands of jobs and revenue.
“This year is our 30th anniversary as a company, and our operations in New York State could have come to a standstill if the moratorium bill had become law,” Walch said. “On behalf of our employees and the landowners with whom we work every day, we appreciate Governor Paterson’s thoughtful examination of this bill, and his decisive leadership.”
The Governor said in a radio interview his concern was the legislation would have banned both the horizontal and vertical processes however the horizontal method of drilling would be more of an intrusive threat to the environment. Paterson’s budget office estimated that such a broad ban would “cost thousands of industry jobs, stop landowner payments and significantly reduce state and local revenues from permit fees and taxes.”
Environmental groups and energy companies are both claiming victory. Even though the moratorium only applies to the horizontal fracking, this could indeed prove too onerous and oil and gas companies could pick up and move south to Pennsylvania where they are enjoying an economic boom thanks to natural gas exploration.
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