Energy Industry Supporting 3.5 million Jobs by 2035

With the current unemployment rate at a low of 7.9%, who wouldn't be excited to hear that any one industry could potentially support 3.5 million jobs by 2035? In our current economic position, statistics like that sound extremely appealing.

According to API President and CEO Jack Gerard, development of the United States' unconventional oil and gas resources could create 2 million new jobs over the next two decades. The energy industry could potentially be the main component in getting our nation back to where it was economically ten years ago. According to another article on America's Natural Gas Alliance, shale gas alone is expected to add 1 million new jobs not only in the field but also in related industries. This news sounds incredible, and I believe is completely attainable if and only if we continue hydraulic fracturing operations throughout America.

A major part of unconventional oil and gas operations is shale gas drilling. When drilling into shale, very little oil and gas will be produced unless the well is hydraulically fractured, "fracced." To make each of the wells profitable when they begin to produce, they must be fracced.  Knowing this, it is obvious that the industry will only be profitable and create new jobs if these wells are economically profitable once drilled.

What I am trying to get at in this post is that America needs hydraulic fracturing until there is a new technology developed to get the oil and gas out of the shale. If we slow down or discontinue fraccing operations, as a nation, we will not be able to produce nearly as much domestic oil and gas and will continue relying on other countries more and more.

-Aubrey Bagley

More on Pavilion, WY

Last week Adam wrote a post about the water contamination in Pavilion, Wyoming. This post contained a lot of information and summarized much of what the report said; however, because of the length of this report and the significant amount of information it entailed, I would like to add onto what Adam said and give more information regarding the report.

Location of Pavilion, Wyoming

People in Pavilion had noticed a foul taste and smell to their drinking water, so they notified the Environmental Protection Agency (EPA) about this and complained until they said they would come out and conduct a study. In this study, many hydrocarbons and other compounds that can be related to hydraulic fracturing and natural gas production were found in the soil as well as the water.

These compounds were found to most likely be from hydraulic fracturing and surface pits used during drilling. When a well is drilled, surface pits are used for drilling wastes and produced and flowback waters. These are usually man made and should be cleaned up once the well has been drilled.

So this may make hydraulic fracturing sound like a horrible process and encourage us to discontinue it. However, there is more to consider while reading this report.

First, these wells were drilled in the 1950's. Much has changed since then including drilling technology and certain standards needing to be met. Information was lacking in the well design of these wells in Pavilion, so it is hard to know exactly how they were drilled.  Secondly, these wells were only a few hundred feet beneath the surface. In my research, I have never heard of a single well being that shallow. From my experience working at BP America this summer, each of the wells we discussed were all a few thousand feet beneath the surface. Because the wells in Pavilion are so shallow, it is a lot easier for methane and other hydrocarbons to migrate to the water table. Third, the surface casing of these wells "do not extend below the maximum depth of domestic wells in the area of investigation." This goes along with the shallowness of these wells. Finally, there is no baseline information to compare the results from this study to what would have been before hydraulic fracturing occurred.

Overall, these downfalls related to hydraulic fracturing are easy to fix. Simply drill deeper wells to avoid the effects hydraulic fracturing had here.

Currently the EPA is working on getting the water and soil in Pavilion cleaned up. It is difficult to get the funding because there is still no proof of the exact source of these compounds.

I realize this post is long. There is merely too much to say and too little room to say it. If there is any questions about anything that I said, feel free to ask.

-Aubrey Bagley

The Future of Fracturing

Ahh.... it is election season. Who doesn't love following the 'extremely well-informed' political status updates and debates on Facebook and getting to watch all of the lovely political ads on TV? All sarcasm aside, there are a lot of campaigns revolving around the oil and gas industry, and no matter what your stance is, it is important to become informed on the issues that will be on your local ballot!

As Bill mentioned in his blog post on September 24th, there are a lot of concerns about oil and gas operations in residential areas in Longmont, Colorado. Longmont is a part of Boulder County, which has two oil and gas issues on the ballot. One, question 2A, concerns gas utility service franchise and the other, question 300, is about hydraulic fracturing. As Bill discussed, Longmont is voting on prohibiting hydraulic fracturing within city limits. Main Street Longmont, a group fighting this question, by calling it an "unreasonable job killer." There is a lot of scrutiny over the funding of this group, where the oil and gas industry has already donated $447,500. This group also has a link posted on its website to a Denver Post Editorial that discusses how a draft of Colorado's new hydraulic fracturing rules and regulations is headed in the right and "enlightened" direction. My guess is that this is to show that the restrictions in Longmont are not necessary, and that progress is being made on the state level. The article also states that "Those who would like to stop fracking altogether of course won't be placated." Is this really the case though? If question 300 is passed, no hydraulic fracturing will be allowed in the city of Longmont.

We put together a video of our opinion on this topic. We realize that the oil and gas industry is full of some real characters, but believe that they mean well and wouldn't purposefully endanger the community. Safety is a high priority in the industry and the importance of it isn't lost on anyone.

Fraccing With Two C's residential drilling video.

If you guys have any questions about hydraulic fracturing, feel free to comment on the blog or check out these great Colorado Oil and Gas Conservation Commission resources: Hydraulic Fracturing Presentation and Information on Hydraulic Fracturing.

-Fraccing With Two C's Bloggers