A Gold Rush for Natural Gas

  • If land leases are any indication, Michigan will be seeing a lot of these things dotting the landscape. A horizontal drilling rig in Appalachia. (Creative Commons photo by user Meridithw)

Michigan is getting ready for a potential new boom in drilling for natural gas, and some people say: what’s not to love? It’s home grown fuel. It can mean new jobs. It’s much cleaner burning and emits less carbon dioxide than coal or oil.

Listen to a Michigan Watch series on natural gas drilling

An investigative series by ProPublica

The EPA’s fracking page

Transcript

Doug Houck is a spokesman for EnCana Corporation. That’s a Canadian company that’s been exploring for gas in Michigan.

“You know, natural gas is the cleanest burning fossil fuel we have, it’s very plentiful. Natural gas is going to be a key part of our energy portfolio for many, many years to come.”

Okay, so he’s a gas guy… so you’d expect him to be talking it up. But a lot of scientists and even some environmentalists agree with him.

Hugh McDiarmid is with the Michigan Environmental Council.

“There are lots of benefits to this in terms of using homegrown energy that we extract and you know, natural gas is a less polluting fuel than some of the traditional fossil fuels.”

But he’s watching this latest buzz around natural gas with some caution. We’ve been drilling for gas at shallow levels in Michigan for 80 years… but there’s a new game in town.

It’s because of gas reserves that have been discovered much farther down. The gas is trapped in tight shale rock formations. To get to the gas, drillers use something called horizontal hydraulic fracturing, or fracking for short.

Horizontal fracking pumps millions of gallons of water, sand and chemicals into a well under high pressure to force open the rock and extract the gas.

Hugh McDiarmid says he’s worried about that.

“It’s going to use a lot more water, it’s going to require the transport of a lot more dangerous chemicals. And a lot of these endeavors are exempt from a lot of the pollution laws other industries have to follow.”

Gas companies don’t have to tell us the exact chemicals they’re pumping into the wells. The Environmental Protection Agency is trying to get that information. Officials are asking the companies to just tell them, voluntarily.

And even the EPA doesn’t know what the risks are to drinking water. It’s just now starting to study that.

Even with any risks, some experts say natural gas is the best way to go for energy security and jobs.

Terry Engelder is a professor of geosciences at Pennsylvania State University. He thinks drilling for these new gas reserves deep underground is worth it. But he says the industry needs to do more to reassure the public.

“What we need is a situation where industry understands the public has zero tolerance for pollution, particularly water pollution. This is a heavy industry that will have an effect.”

So he says if you decide to lease your land for gas drilling… you’re going to notice it. Some trees will be cleared from your land and there will be a lot of noise and truck traffic.

And some people say although natural gas IS cleaner than coal or oil… it’s still a fossil fuel. So we’re still burning a fuel that’s releasing carbon dioxide… and adding to the global warming problem.

Cyndi Roper is the Michigan Director of the group Clean Water Action. She says she’d like the U-S to get off fossil fuels. But she’s not completely against using natural gas as a bridge away from coal and oil… moving toward more wind and solar power.

“So we’re willing to look at this as a part of a plan for moving away from the dependence. In order to do that we want to make sure it’s safe and we are not putting these communities and the people in jeopardy.”

State officials say we’re ready for this new kind of drilling… and it can be done safely.

But Cyndi Roper says before a drilling boom happens… she wants to make sure the regulations that are in place will be strong enough.

On Thursday, we’ll hear from landowners in Northern Michigan who have mixed feelings about gas drilling.

Challenging the Drilling Ban in Shallow Waters

  • The drillers say there’s a big difference between BP’s Deepwater Horizon, drilling at 5000 feet, and the rigs they operate in water less than a thousand feet. (Photo courtesy of Jann CC-BY)

Some smaller companies want to keep drilling in the Gulf of Mexico. Lester Graham reports… a group called the Shallow Water Energy Security Coalition says its members’ rigs are different than the BP operation that’s polluting the Gulf.

Transcript

Some smaller companies want to keep drilling in the Gulf of Mexico. Lester Graham reports… a group called the Shallow Water Energy Security Coalition says its members’ rigs are different than the BP operation that’s polluting the Gulf.

The drillers want the Interior Secretary Ken Salazar to lift the moratorium on drilling in the shallow waters. In an article for Greenwire, Mike Soraghan reports… they’re getting support in letters from members of Congress.

“They’ve got about ten senators that have signed on and about 50 House members, including Ken Salazar’s brother who’s a member of Congress from Colorado, John Salazar.”

The drillers say there’s a big difference between BP’s Deepwater Horizon, drilling at 5000 feet… and the rigs they operate in water less than a thousand feet.

“They would argue that what you’ve heard in the past few weeks from BP officials is, you know, if this was in 200 feet of water, we’ve could have dealt with it a long time ago.”

Interior Secretary Salazar is to send the White House a report on the drilling moratorium by this Friday – the same day President Obama will be visiting Louisiana.

For The Environment Report, I’m Lester Graham.

Related Links

Gulf Oil Spill and Hurricane Season

  • Hurricane Rita in the Gulf of Mexico in 2005. (Photo courtesy of Jeff Schmaltz, NASA/GSFC )

Hurricane season starts soon. Experts predict an active season with four “major” hurricanes. What happens if a storm hits while there’s still an oil spill in the Gulf of Mexico? Tanya Ott reports.

Transcript

Hurricane season starts soon. Experts predict an active season with four “major” hurricanes. What happens if a storm hits while there’s still an oil spill in the Gulf of Mexico? Tanya Ott reports.

If a tropical storm hits while there’s still oil in the water, it could disastrous for the coastline and several miles inland. Mark Wysocki is a Cornell University climatologist.

“All that oil would get into the marshlands and some of the homeowners’ properties and so forth and that would make it very difficult then to remove that oil from those types of locations.”

When Katrina hit Louisiana it destroyed some of the oil distributor piping, and they’re still cleaning up in some of the wetland areas.

Wysocki says the one upside is that oil makes it harder for water to evaporate. Tropical storms need evaporation to build strength. So an oil spill might actually keep storms smaller.

For The Environment Report, I”m Tanya Ott.

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Drilling for Climate Change

  • President Obama lifted the moratorium on offshore drilling last week, against the wishes of environmental groups. (Photo Courtesy of the US Minerals Management Service, Lee Tilton)

There’s been lots of speculation about why President Obama is allowing expanded gas and oil drilling offshore. Many environmentalists don’t like it. Lester Graham reports the move might be part of a larger strategy to get a climate bill passed in the Senate.

Transcript

There’s been lots of speculation about why President Obama is allowing expanded gas and oil drilling offshore. Many environmentalists don’t like it. Lester Graham reports the move might be part of a larger strategy to get a climate bill passed in the Senate.

President Obama never ruled out expanding drilling offshore, but it still caught a lot of people off-guard last week when he lifted the moratorium. John Prandato thinks he knows why he did. Prandato writes for the Partnership for a Secure America. In a recent article he argues it’s about the climate change and energy bill being pieced together by Senators John Kerry, Joesph Lieberman and Lindsey Graham. Senator Graham has said a carbon cap-and-trade scheme such as the one in the House climate bill… is dead in the Senate. But maybe not… now…

“Graham has been a proponent of offshore drilling and he has said any climate change and energy bill would have to include expanded offshore drilling, which Obama has now made that concession. So, with any luck, this concession could revive cap-and-trade in the Senate. But, we’ll just have to see.”

Senator Graham says offshore drilling should be expanded further. The White House says the President is not “horse trading” to get a climate bill out of the Senate.

For The Environment Report, I’m Lester Graham.

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Obama Opts for Offshore Drilling

  • President Obama says we need to harness traditional sources of fuel even as we increase production of new sources of renewable energy. (Photo courtesy of the US Mineral Management Service)

President Barack Obama is lifting a moratorium on gas and oil drilling off the nation’s coasts in certain areas. Lester Graham reports some environmentalists don’t like it. And conservatives don’t like it either.

Transcript

President Barack Obama is lifting a moratorium on gas and oil drilling off the nation’s coasts in certain areas. Lester Graham reports some environmentalists don’t like it. And conservatives don’t like it either.

Environmentalists say allowing drilling in the eastern Gulf of Mexico, off the coast Virginia, and areas of the Arctic Ocean north of Alaska is a disaster for wildlife and climate change.

The President says we can’t get from fossil fuels to renewable fuels overnight.

“And the only way this transition will succeed is if it strengthens our economy in the short term and the long run. To fail to recognize this reality would be a mistake.”

Conservatives say all offshore waters should be opened to drilling. The President says that still wouldn’t solve the problem.

“Drilling alone can’t come close to meeting our long-term energy needs. And for the sake of our planet and our energy independence, we need to begin the transition to cleaner fuels now.”

The President stressed we need to use all energy options to become energy independent.

For The Environment Report, I’m Lester Graham.

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Mixed Messages on Oil and Gas Drilling

  • Interior Secretary Ken Salazar announced that there would be more auctions for drilling leases this year. (Photo courtesy of NOAA)

The federal government leases public
land to oil and natural gas companies
for drilling. For at least the last
decade, energy companies have called
the shots. The Obama Administration
has indicated things are different now.
Conrad Wilson reports, there are some
inconsistencies in the Obama Administration’s
plan to reign in the industry:

Transcript

The federal government leases public
land to oil and natural gas companies
for drilling. For at least the last
decade, energy companies have called
the shots. The Obama Administration
has indicated things are different now.
Conrad Wilson reports, there are some
inconsistencies in the Obama Administration’s
plan to reign in the industry:

Because of the recession, we’re not using as much energy. For the last
several months, there’s been a glut of oil and natural gas. Big oil and
natural gas companies saw record profits a couple of years ago – but those
profits are down now.

If you ask the energy companies, it would seem the biggest culprit is not
the economy, but the federal government.

For instance, Interior Secretary Ken Salazar is blamed for energy
companies’ falling profits. That’s because he’s criticized oil and gas
companies for acting like they have a right to drill on as much public land
as they want.

“Trade groups for the oil and gas industry repeatedly launch attacks that
have all the poison and deception of election year politics. Trade groups
for the oil and gas industry need to understand that they do not own the
nation’s public lands, tax payers do.”

That sounds like tough talk, right? And in many ways it is. There have
been some major reforms that change the way business is done between the
government and and oil and gas drillers.

But behind all this stick waving, the industry’s also getting a carrot. In
a conciliatory gesture, Salazar announced that there would be more auctions
for drilling leases this year.

The industry says it needs access to even more land. Kathleen Sgamma
directs government affairs for the Denver-based trade group Independent
Petroleum Association of Mountain States. In November, her office issued a
report criticizing the Department of Interior. Among the many concerns, was
the amount of land offered for lease.

“Our full paper looked at all of the things that the Interior Department is
doing to make it more difficult to develop American natural gas and oil on
federal lands. And one of those things is a slow down in permitting.”

But the government says a slow down in permits and leases is not causing
lower profits for oil and gas. As it is, companies are not drilling or
pumping where they already have leases – because there’s a glut of
supplies.

In Western Colorado, the Thompson Divide Coalition wants to cancel leases
and prevent drilling. Lisa Moreno heads up the alliance of ranchers,
hunters, and conservationists.

“The fact of the matter is, is the industry has a huge amount of acreage
under lease that they haven’t developed.”

Moreno says energy companies have leased about 47 million acres, but the
oil and gas companies are only using about one-third of that land right
now.

So why do oil and gas companies want more land? Even if energy companies
don’t use the lands for drilling, they’re still an important asset.

Jeremy Nichols is Climate and Energy Program Director for WildEarth
Guardians. Nichols says leases represent assets and are used to attract
investors.

“And so drilling is just part of what they do. They’re also basically land
holding companies. You know, they’re buying and selling each other left and
right. And so it’s more than just to drill or not to drill. It’s a lot
more, it’s a lot more complicated than that.”

If that’s the case, why is the government opening more leases?

Well, Jeremy Nichols thinks Interior Secretary Ken Salazar is trying to
kiss and make up.

“You know, I’ll be honest I think Salazar appearing conciliatory. But the
oil and gas industry is going to be critical no matter what Salazar does.
The oil and gas industry just doesn’t like to be regulated; they don’t like
to be told what to do. And so they’re going to complain no matter what.”

And so, more of the public’s land will be held by oil and gas drillers who
won’t be producing much until the economy recovers, prices go up and they
can make more money.

For The Environment Report, I’m Conrad Wilson.

Related Links

Part 3: Hydrofracking for Gas

  • Fracturing has increased available domestic natural gas supply by 35%. (Photo source: TheSilentPhotographer at Wikimedia Commons)

A new wave of natural gas drilling
is spreading across the country.
But the process is on hold in New
York state while regulators and
citizens debate the issue. Samara Freemark reports
that some New Yorkers see drilling
as a way to save the economy of a
particularly depressed part of the
state. But others say it could ruin
the economy for good:

Transcript

A new wave of natural gas drilling
is spreading across the country.
But the process is on hold in New
York state while regulators and
citizens debate the issue. Samara Freemark reports
that some New Yorkers see drilling
as a way to save the economy of a
particularly depressed part of the
state. But others say it could ruin
the economy for good:

When Kathy Colley heard that natural gas drillers were coming to upstate New York, it was kind of like someone had told her that the whole region had won the lottery.

“Here we have this wonderful god given opportunity. This is a blessing.”

That’s because Colley and her neighbors had learned that they had natural gas beneath their land.

New York State’s natural gas was supposed to be untappable- it was too far down, and it was suspended in tiny bubbles in shale rock. But a new technique called hydraulic fracturing made drilling possible in those kinds of shale fields. Fracturing has increased available domestic natural gas supply by 35%.

Drillers started moving into New York State last year. But officials there put a moratorium on the practice while regulators debated whether to allow fracturing.

For Kathy Colley, it’s a no-brainer. Drilling means saving a dying regional economy.

“It’s been such a depressed area. It’s struggling. The farmers are dying here. This is a time when it would just give people a life. Billions of dollars. Thousands of jobs. This is an opportunity to get healthy.”

A lot of local officials all across the country feel the same way. Gas drilling can mean tax revenues, and jobs, and economic development.

But some people say that while drilling may bring in some money at first, in the long run it’s a lousy way to develop a local economy.

“It’s an unsustainable form of economic development.”

That’s Adam Flint. He works with the Binghamton Regional Sustainability Coalition in upstate New York.

“However much gas is under the ground, it is unrenewable.”

And when the gas runs out, the jobs will go. So will the tax revenue. Flint estimates New York would get a couple of decades of gas production before the state’s fields are tapped dry.

That kind of boom and bust cycle is what Wes Gillingham is worried about. Gillingham is a farmer and environmentalist who heads an organization called Catskill Mountainkeeper. I met up with him and his family at his farm house.

He showed me a banjo he had bought cheap in Casper, Wyoming in the 1980s, at the end of an oil boom.

“I had never seen a place in my life that had so many pawnshops. And the pawnshops were just stuffed to the ceiling with really nice stuff- really nice stuff, at really cheap prices, cause everyone was just pawning everything they had.”

He’s afraid the same thing will happen in upstate New York.

“I always think about this when people say, ‘but we need the gas.’ Prices go up, companies come in, they put more rigs out, and there’s this huge influx of money and activity and then when the price drops back down they shut it all down. That has huge impacts on the community.”

And it’s not just the boom and bust. There are also environmental impacts like a legacy of water pollution, abandoned infrastructure, and habitat destruction.

Adam Flint says those kinds of problems would prevent upstate New York from ever developing any kind of stable long-term economy.

“It’s a question of which road to travel. We can have gas production and turn upstate New York into a major industrial zone. Or we can have tourism, agriculture, a green economy, alterative energy, jobs that all those things create. We can’t do both.”


New York state officials are almost certain to approve gas drilling this year – 2010. When they do, there’s a long line of community and environmental groups ready to challenge the state in court.

For The Environment Report, I’m Samara Freemark.

Related Links

Part 2: Hydrofracking for Gas

  • Frackers dig mile-deep wells and pump them with millions of gallons of water, sand, and chemicals. (Photo by Vera Scroggins)

Natural gas burns a lot cleaner than
oil and coal, so a lot of people are
excited about gas’s role in a greener
energy sector. But drilling for natural
gas? That’s not quite so green. Samara Freemark tells us that
as a new kind of drilling spreads across
the country, so do environmental
concerns:

Transcript

Natural gas burns a lot cleaner than
oil and coal, so a lot of people are
excited about gas’s role in a greener
energy sector. But drilling for natural
gas? That’s not quite so green. Samara Freemark tells us that
as a new kind of drilling spreads across
the country, so do environmental
concerns:

It’s been about a year and a half since drilling companies first broke ground on natural gas wells in Dimock, Pennsylvania, in the northeastern corner of the state.

The drillers used a recently developed technique called hydraulic fracturing – or fracking. Frackers dig mile-deep wells and pump them with millions of gallons of water, sand, and chemicals.

Right now, fracking isn’t regulated by the federal government – though Congress is considering changing that.

So the process has generated a lot of concerns about pollution – in particular, fears that gas and chemicals could leach out into aquifers and groundwater.

Which is probably what happened in Dimock. Vera Scroggins is an anti-drilling activist who lives nearby.

“It started to happen pretty quickly because as they went down there, as they went through the aquifers they broke through the rock where the gas pockets are, and the gas got released into the aquifers and then it got into the water wells. So people started to notice like blackish, yellowish, bubbly water. So it’s been about 11 months that they haven’t drank their water.”

Since fracking started, Dimock has been plagued with environmental problems – chemical spills and leaks, gas found in drinking water, and fish kills in nearby streams. Dimock residents have filed suit against Cabot Oil and Gas, which controls most of the wells around Dimock.

And Scroggins says state authorities have penalized Cabot for spills and leaks.

“Cabot has been fined several times, even since September. They were closed down for two weeks for three spills in a two-week period. So it’s one accident after another.”

The drilling company says that doesn’t mean the problems were caused by drilling.

Ken Komoroski is a Cabot spokesman. He says the company is looking in to the incidents, but they haven’t found proof that fracking caused any problems.

“The company has not come to any conclusion as to whether or not its operations did cause contamination. It’s possible that it has, it’s also entirely possible that it has not.”

Many gas companies maintain that no one has ever proved conclusively that spills and leaks have harmed anyone. And it is hard to pin down figures on fracking accidents, since there’s no centralized database to keep track of incidents.

But problems have been reported at drilling sites across the country.

Many of the complaints center around the chemicals frackers mix with their pumping water.

Natural Resources Defense Council attorney Eric Goldstein showed me a list of those chemicals at an anti-drilling demonstration in New York City. The list was seven pages long – some 260 chemicals in all. Some seemed pretty harmless. But others were more troubling.

“I’m sure you could find a couple out of the 260 that you wouldn’t mind drinking. But you wouldn’t want to take any naphthalene, for example. Or petroleum naptha. Or any of the things we can’t pronounce here. You wouldn’t want to drink talc. Wouldn’t want to drink benzene. Why don’t we just stop right there. Ethyl benzene. That’s a known human carcinogen.”

Drilling companies say that while those chemicals might be dangerous, they’re used in such small quantities that they’re not harmful to people. And companies say they’ve developed protections that keep the chemicals from leaching out into aquifers. For example, drillers line their gas wells with cement casings to keep fracking fluid contained.

But Vera Scroggins – the activist from near Dimock – says she doesn’t believe companies have figured out how to drill safely.

“As they go along, they’re learning things. So we’re being experimented on.”

Until they’ve learned how to prevent all dangerous leaks and spills, Scroggins says, companies shouldn’t be allowed to drill at all.

For The Environment Report, I’m Samara Freemark.

Related Links

Part 1: Hydrofracking for Gas

  • Fracking has made billions of cubic feet of natural gas available. That’s fuel that can be used for cooking, heating, and some transportation. (Photo courtesy of Argonne National Laboratory)

A new technique for extracting
natural gas is making it profitable
to drill in new gas fields all over
the country. The technique is
called hydrofracking, and it has
raised the nation’s natural gas
reserves by 35%.
But hydrofracking is not without
its critics. Samara Freemark tells us why some people
say the industry is moving faster
than regulators can keep up:

Transcript

A new technique for extracting
natural gas is making it profitable
to drill in new gas fields all over
the country. The technique is
called hydrofracking, and it has
raised the nation’s natural gas
reserves by 35%.
But hydrofracking is not without
its critics. Samara Freemark tells us why some people
say the industry is moving faster
than regulators can keep up:

Ten years ago the American natural gas market wasn’t looking too hot.

“In theory, America was running out of natural gas.”

That’s Susan Riha. She’s a professor of earth sciences at Cornell University. Riha says underground pools of traditional natural gas were starting to dry up.

But there’s another kind of gas – ‘unconventional’ natural gas. It’s suspended in tiny pockets in shale formations, like water in a sponge. And there’s unconventional natural gas all across the United States, especially in the Western states and Pennsylvania and New York.

But recovering large amounts of natural gas from shale formations was until recently, pretty much impossible.

“In the past, it’s been extremely difficult to get that gas out of that rock. They drill down, but the gas is only going to flow from right where they drill. But people began to put effort in to figuring out how to get this gas out. And maybe starting about a decade ago they began to get economically viable ways of recovering shale gas.”

The technique that drillers developed is called hydraulic fracturing – or fracking. Frackers dig mile-deep, L-shaped wells and blast them full of millions of gallons of water mixed with sand and chemicals. That solution holds open tiny fissures in the shale so the gas flows out.

The process raises some eyebrows in the environmental community, but we’ll get to their concerns in a second.

First let’s look at the upside.

Fracking has made billions of cubic feet of natural gas available. That’s fuel that can be used for cooking, heating, and some transportation.

And natural gas is a domestic energy source. It burns a whole lot cleaner than coal and oil. A lot of people say it could be a crucial part of the transition to greener energy.

Which is the point Thomas West made when I met up with him at a public hearing on gas drilling. West is a drilling advocate and attorney who represents gas companies in New York State.

“You have to realize that the shale plays, these unconventional resources, have changed the game in the United States. We now have a hundred years of capacity, which means we no longer have to rely on Mideastern oil. Gas is very usable, it doesn’t take much to make it usable, and it has a dramatic impact on air quality.”

But critics say fracking is a mixed bag.

“Things too good to be true, usually are.”


That’s Al Appleton. He’s an environmental consultant, and he says hydraulic fracking can cause all kinds of environmental problems – water contamination, ecosystem destruction, noise and air pollution.

And Appleton says the process is essentially unregulated. In 2005, Congress passed a law specifically exempting fracking from almost all federal environmental regulations.

“Basically what the law said is that things like the Safe Drinking Water Act, the Hazardous Waste Materials Act, the Clean Water Act, and other significant pieces of federal environmental legislation were not to be applied to the natural gas industry. So in essence, what your local dry cleaner has to comply to all sorts of regulations, the natural gas industry, they don’t have to follow these.”

Some members of Congress are trying to change that. They’ve introduced legislation to repeal fracking’s exemption, give the Environmental Protection Agency authority over the process, and require the industry to disclose what kinds of chemicals it injects into wells. As you might expect, the fracking industry is fighting the bill.

For The Environment Report, I’m Samara Freemark.

Related Links

Regulating Hydrofracking

  • Natural gas well drilling site. (Photo courtesy of Argonne National Laboratory)

A new drilling technique called
hydrofracking has opened up previously
inaccessible natural gas fields all
over the country and created a boom
in natural gas production. But it’s
also generated a lot of controversy,
since hydrofracking is exempt from
almost all federal regulations.
Samara Freemark reports
that legislation currently moving through
Congress would change that:

Transcript

A new drilling technique called
hydrofracking has opened up previously
inaccessible natural gas fields all
over the country and created a boom
in natural gas production. But it’s
also generated a lot of controversy,
since hydrofracking is exempt from
almost all federal regulations.
Samara Freemark reports
that legislation currently moving through
Congress would change that:

Hydrofracking involves pumping millions of gallons of water, sand, and chemicals a mile into the ground to break up rock and extract gas. But since 2005 the technique has been exempt from federal environmental legislation like the Clean Water Act and Safe Drinking Water Act.

Now some members of Congress have introduced a bill to restore federal oversight over fracking. Kate Sinding is with the Natural Resources Defense Council, which supports the bill.

“So what has been proposed is known as the FRAC act. And what that would do is restore regulatory authority over hydrolic fracturing which means we would have some federal standards about how to regulate this activity. And it would require the public disclosure of the fracturing fluids that are used in fracturing fluids.”

That’s an important point for fracking opponents, who say those chemicals have contaminated wells and groundwater across the nation.

For The Environment Report, I’m Samara Freemark.

Related Links