Things to be Thankful for this Holiday: Friends, Family and Savings from Fracking

There’s much to be thankful for this time of year: friends, family, good food and, of course, football. Just as importantly, we should all be thankful for improved U.S. energy security. Thanks to advancements in American energy production such as hydraulic fracturing and horizontal drilling, the United States is now awash with oil and natural gas, helping to bring families together, keep them warm and put money back in their pockets.

According to the American Automobile Association (AAA), this Thanksgiving week will see the largest number of travelers since 2004. Projecting that roughly 51 million Americans will trek at least 50 miles from home between Wednesday and Sunday – 89 percent of which will be driving – low prices at the pump will have an enormous impact this year. While AAA expects the average gasoline price to be slightly higher than 2016 at $2.54 per gallon, it’s still significantly less than the $2.79 average seen in 2014. Some back of the envelope math shows that with an average fuel efficiency of 25.2 miles per gallon, U.S. drivers will save over $22.5 million on gasoline this week alone compared to 2014.

But it’s not just at the pump where Americans will see savings this Thanksgiving. A report from the Business Council for Sustainable Energy and Bloomberg New Energy finds American consumers are now spending less of their incomes on energy than ever before in the modern era. Covering across-the-board benefits of the rise in natural gas use across the United States, the report finds that shale natural gas production has increased nearly 80 percent since 2011, while overall U.S. natural gas production jumped by 12 percent. Such a massive increase in natural gas supply, along with the addition of 39 gigawatts of natural gas fired generation capacity over the past five years, has helped lower average electricity prices by three percent nationally. Some states have experienced even larger decreases, with retail electricity prices dropping over 10 percent in Texas, New York and Florida during this same time.

In addition to lower electricity prices, the meteoric rise in American natural gas production is helping Americans save when heating their homes or cooking their turkeys. For example, a new study from University of Pennsylvania found that with Pennsylvania’s 2,800 percent increase in natural gas production between 2007 and 2016, gas bills in the state dropped 40 percent over that same period, while the price that utilities are charging customers declined by 75 percent. Nationwide, the report finds, average natural gas prices for the electric power sector declined by 65 percent, while residential gas customers saw a 34 percent decrease in their gas bills. These findings are in line with a A recent Harvard Business School analysis that found, because of shale development, American households have realized low-cost natural gas savings of $800 per household.

As far as overall household energy costs, a 2016 EIA analysis shows that since 2008, roughly the start of the energy renaissance, average annual energy costs per household in the United States have dropped by more than 14 percent.

Businesses are also feeling huge benefits from the significant growth in U.S. natural gas development. According to an American Gas Association report published at the beginning of this year, affordable natural gas from shale development has dropped commercial sector natural gas bills by nearly 50 percent. This reduction translates to a savings of roughly $76 billion since 2009.

These energy savings are currently being enjoyed across the United States despite record oil and natural exports, standing in direct contradiction to what opponents have claimed about exports increasing domestic prices. Total U.S. natural gas exports have more than doubled since 2010, growing by roughly 1.2 trillion cubic feet from 2010 to 2016, with the United States becoming a net exporter of natural gas for the first time in almost six decades. Further, crude oil and petroleum product export reached record levels in the first half of 2017, as crude oil exports grew by more than 300,000 barrels per day from the first half of 2016 to reach 0.9 million barrels per day in the first six months of 2017.

This year while watching the game on TV in your warm house, driving to your in-laws’ house, or pulling that delicious turkey out of your oven, give a little thanks to fracking for not only making these things possible, but saving you money while doing them.

Have a safe and happy Thanksgiving weekend!

 

Source: Energy In Depth

 

Adding NatGas for Transportation: Clean Energy Expands LNG and CNG Users

Ryder System Inc. will add 20 LNG trucks for Toyota’s largest U.S. manufacturing plant; Clean Energy will provide fueling station for the trucks Ryder System Inc. (ticker: R) has awarded Clean Energy Fuels Corp. (ticker: CLNE) a four-year fueling contract. The contract is for a fleet of LNG heavy-duty trucks that move goods for Toyota Motor Manufacturing, Kentucky, Inc. (TMMK).[Read More…]
Source: Oil & Gas 360

 

Talos Energy LLC to Combine with Stone Energy Corporation

New company name and NYSE ticker Talos Energy LLC and Stone Energy Corporation (ticker: SGY) announced today that their boards of directors have unanimously approved the combination of Talos and Stone in an all-stock transaction, creating an offshore-focused E&P company. The new company will be named Talos Energy, Inc. and the NYSE ticker will be “TALO.” Combined company highlights Pro[Read More…]
Source: Oil & Gas 360

 

Talos, Stone Energy Merger Builds Gulf Of Mexico Dreadnought

Readying an E&P broadside at the Gulf of Mexico (GoM), Talos Energy LLC and Stone Energy Corp. (NYSE: SGY) said Nov. 21 they will merge in an all-stock transaction that the companies say represents an equity value of $1.9 billion.

The combined company will be named Talos Energy Inc. and stocked with pro forma proved reserves of about 136 million barrels of oil equivalent (boe) of which 70% is oil. The reserves have a strip-priced PV-10 value of $2.28 billion, the companies said.

A Talos-Stone leviathan would give the company reign over 1.2 million combined gross acres, including 160,000 acres offshore Mexico.
Source: Oil & Gas Investor

 

Chaparral Energy Closes EOR Sale for $170 Million

Chaparral Energy, Inc. (ticker: CHPE) closed the sale of its North Burbank and Texas Panhandle enhanced oil recovery (EOR) assets. The properties sold to Perdure Petroleum LLC represented approximately 5,700 BOEPD of the company’s 24,500 BOEPD of total production. “We are pleased to announce that the close of this sale effectively completes Chaparral’s transition to a pure-play STACK operator,” said[Read More…]
Source: Oil & Gas 360

 

Venezuela Arrests Head Of U.S. Refiner Citgo In Graft Sweep

Venezuelan authorities on Nov. 21 arrested the acting president of its U.S.-based refiner Citgo and five of the subsidiary’s top executives as part of a spiraling corruption purge in the OPEC country’s oil industry.

Military intelligence agents detained Jose Pereira during an event at state oil company PDVSA’s headquarters in Caracas, two sources told Reuters, in the latest of dozens of high-level arrests in the last few months.

State Prosecutor Tarek Saab has declared a “crusade” against “organized crime” within PDVSA, and has now arrested around 50 oil managers since taking office in August.

In the case of Texas-based Citgo, Saab told a news conference that his office had uncovered a roughly $4 billion planned deal with foreign firms, offering the refiner as guarantee in a detrimental deal for Venezuela.
Source: Oil & Gas Investor

 

Report: Ohio Counties Have Received More Than $300 Million For Road Improvements From Utica Shale Operators

A new report by Energy In Depth and the Ohio Oil and Gas Association (OOGA) finds that oil and gas operators have paid more than $302.6 million for road, bridge and culvert improvements via the Road Use Maintenance Agreement (RUMA), which is used by Ohio counties to ensure road damages by heavy equipment being moved for shale drilling and pipeline work are either prevented or repaired.

The report finds that RUMA funds were used to improve more than 639 miles of roadways from 2011-2017 in Ohio’s eight Utica Shale counties: Belmont, Carroll, Columbiana, Guernsey, Harrison, Jefferson, Monroe and Noble. Columbiana County Engineer Bert Dawson explained to EID,

“Besides being an economic boom for eastern Ohio, the recent oil and gas activity has fostered millions of dollars of road improvements that have been much needed but unaffordable to cost strapped local government.”

The report, entitled “The Utica Shale Local Support Series: Ohio’s Oil and Gas Industry Road Improvement Payments,” also finds that the oil and gas industry is leaving Ohio infrastructure in “better condition than they were before the introduction of the industry.” In fact, an Ohio University Voinovich School of Leadership and Public Affairs study released earlier this year found that,

[A]lmost all interviewees stated that county roads under the purview of a Road-Use Maintenance Agreement (RUMA) were left in better condition than they were before the introduction of the industry. Increases in tax revenue from the industry led to infrastructure expansion like water and sewer upgrades, railroad revitalization, and new police vehicles. And, a majority of interviewees stated that the industry was good to work with; private industry often paid up-front costs for infrastructure improvements that benefited both their own industry operations and the local community.” (Emphasis added)

Below are the report’s key findings, by the numbers:

Key Findings for Ohio Shale Counties:

  • Total Investment Made in Ohio Infrastructure: More than $300 Million
  • Total Number of Road Miles Improved: More than 630 Miles
  • Amount of Investment Directly to Local Communities: 100 Percent

This report is a first of its kind – previous research only used estimates to calculate the cost associated with the Road Use Maintenance Agreement (RUMA), at least partially due to the lack of a central clearinghouse for information, making it challenging to collect this data.  EID and OOGA used the Freedom of Information Act, worked with county engineers from all eight counties, and collected data from the majority of Ohio’s oil and gas operators to arrive at these findings.

The report also provides a robust history of the RUMA process in Ohio – something EID has been tracking and reporting on for years. In fact, Ed Looman, then Executive Director or Progress Alliance said in a 2012 EID guest blog post,

“Local efforts began when the Jefferson County commissioners stepped forward and created a road use maintenance agreement. The agreement is working here and already a major drilling company has invested millions to repair county and township roads.”

In the years since that statement, and up until this report was released, it has remained unclear how many “millions” have been realized or how many miles have been improved. For some of these eight counties, the numbers are staggering.

In Carroll County, for example, $12 million was spent in just one year, which is about three times the amount of their entire county engineer’s budget!

Similar to the last report in this Utica Shale Local Support Series that looked at actual numbers and data on property taxes paid on production of oil and natural gas, this latest report does not use “estimates” or “predictions” of things to come. The data show real money already invested in local communities in Ohio, where 100 percent of the investment stays within the local community where shale development is occurring — at no cost to the taxpayer. Together, these two reports in the Utica Shale Local Support Series have collectively found that Ohio communities have realized a benefit of $343 million in taxes and road improvements thus far.

RUMAs are just another example of how the natural gas industry is a good neighbor and is providing support (along with jobs & revenue) to our local governments.

Source: Energy In Depth

 

Transcanada Starts Excavation Work After South Dakota Pipeline Leak

TransCanada Corp. (NYSE: TRP) has started initial excavation work at the site of an oil spill on its Keystone pipeline in South Dakota but has not yet pinpointed where the leak came from, a state official said on Nov. 20.

The 590,000 barrel per day Keystone pipeline, which links Alberta’s oil sands to U.S. refineries, was shut down on Nov. 16 after a 5,000 barrel spill.

Calgary-based TransCanada is working through the clean-up process, said Brian Walsh, environmental scientist manager for the South Dakota Department of Environment and Natural Resources.
Source: Oil & Gas Investor

 

Oil Prices Steady As Caution Sets In Ahead Of OPEC Meeting

Oil prices were only slightly firmer on Nov. 21 as traders looked ahead to a meeting next week at which major crude exporters are expected to extend production cuts but the prospect of rising U.S. output capped gains.

Brent crude oil was up 12 cents at $62.34 a barrel (bbl) at 5:45 a.m. CST (11:45 GMT). U.S. West Texas Intermediate (WTI) light crude was at $56.56, up 14 cents.

Analysts said Brent was expected to fluctuate in a narrow range, between $61 and $63, as the market awaited the outcome of OPEC’s meeting on Nov. 30.
Source: Oil & Gas Investor

 

Crazy – The Topsy-Turvy World of Mexican Gas Supply

Mexico’s natural gas supply situation is in a state of flux, to say the least. Gas production within Mexico continues to decline, but there’s hope it can rebound in the country’s Burgos Shale region. Gas demand is rising fast, and new gas pipelines are being built to deliver Permian and other U.S. gas to new Mexican power plants. At the same time, though, delays in completing some of these new pipes have forced Mexico’s electricity authority to turn to LNG imports to keep gas supply and demand in balance. And yet, plans are afoot to export LNG to Asia from Mexico’s west coast by the early 2020s — gas that, by the way, would initially originate in Texas. Today, we explore recent developments in the Mexican gas arena.

Source: RBN Energy

 

GE CEO Flannery Talks Baker Hughes – GE Future

The history of GE dates back to Thomas A. Edison. In 1876 Edison opened his Menlo Park, NJ, laboratory, from which came perhaps the greatest invention of the age – a successful incandescent electric lamp. In 1890, Edison established the Edison General Electric Company by bringing his various businesses together. Two years later Edison’s company combined with a competitor. They called[Read More…]
Source: Oil & Gas 360

 

OECD Member Countries Use Less Electricity: Here’s Why

GDP growth rates historically have been tied to electricity usage due to population growth and the need to generate more goods and services to serve the growing populations, but traditional metrics are changing. This relationship between energy usage and economic growth has changed in recent times for several reasons, according to a new study by the EIA. The EIA said[Read More…]
Source: Oil & Gas 360

 

The Week Ahead For Crude Oil, Gas and NGLs Markets – 11/20/2017

CRUDE OIL

• US crude oil inventories increased by 1.9 MMBbl, according to the weekly EIA report. Inventories of gasoline showed a build of 0.9 MMBbl while distillates declined 0.8 MMBbl. For the first time in over a month, total petroleum inventories posted an increase, rising 2.8 MMBbl/d. US production was estimated to be up 25 MBbl/d with the lower 48 production rising 20 MBbl/d. Imports increased 524 MBbl/d versus the week prior to an average of 7.9 MMBbl/d.
• Prices softened at the beginning of last week after establishing a new recent high the week prior. This profit-taking action was expected as the prompt month contract starts to head into expiration. Bullish sentiment triggered by the geopolitical instability in the Middle-East was offset with IEA’s latest report, as they lowered their oil demand forecast by 100 MBbl/d for 2017 and 2018. The group stated that warmer temperatures could reduce consumption while increasing output from some countries may cause the crude market to be oversupplied in the first half of 2018.
• The recent rally in WTI prices has been fueled by speculation by traders and not the fundamental aspects of the market. This speculative positioning is confirmed with the latest two CFTC reports (one last Monday and another last Friday) which showed the speculative Managed Money long position gaining 36,684 contracts since October 31st. These gains have taken the speculative position to 16.5% of total open interest. As long positions have been increasing, additional gains have been met by the speculative (Managed Money) short positions, which has covered an additional 40,323 contracts and now represents only 2.3% of total open interest. To put the speculative length in perspective, as a percentage of open interest, the speculative length position lags the largest sector (producer short – hedging) by only 3.4% or 91,049 contracts. This is a long term unsustainable position as this group is subject to adjustments in position on price action causing the potential for serious volatility.
• As discussed prices declined during the week, falling to near term support at $55 and trading down to $54.81 before catching a bid and ended the week on strength, closing at $56.55. Prices started the week weaker as the market is being cautious ahead of the OPEC meeting next week. Russia indicated they may not be interested in joining another deal extension as current prices support the country’s plans making the market skeptical for the OPEC meeting.
• With the level of open interest being held by speculators and the market clearly leaning to one side of the ship, the WTI market is setting itself up for a potential violent period of volatility. Should any event in the Middle East or the upcoming OPEC meeting compromise the expectations of the bullish trade, prices will face downward pressure moving forward. If the market continues its ascent to the expected $60, it is unlikely to stay there long as IEA’s latest report and increasing US production also signals that the fundamentals are not fully supporting the price level.
• Over the last two and a half months the bias for crude prices has clearly entered and maintained a bullish stature. However, along with IEA’s latest report, and US production not showing signs of slowing down, market is beginning to pay attention to fundamentals again. Drillinginfo expects the trade to return to the established range $50-$55 for the near term.

NATURAL GAS
• Natural gas dry production was largely flat to the previous week gaining 70 MMcf/d on average. The profile for dry production last week settled into a tight range on either side of 76 Bcf/d suggesting that the growth from the expansion pipelines has largely been accounted and registered. Canadian imports were down slightly, losing 130 MMcf/d.
• On the demand side, Res/Com demand continued the gains of the week before as temperatures declined, rising 2.01 Bcf/d. Power demand backed off the previous week’s gains, declining 1.25 Bcf/d on average for the week. Industrial demand continued its recent gains rising 150 MMcf/d. LNG exports were down 270 MMcf/d, but started to climb back up to recent normal levels around 3 Bcf/d at the end of the week. Mexico exports rose 60 MMcf/d leaving total demand up 770 MMcf/d while total supply was down 60 MMcf/d.
• The storage report last week came with a slightly higher withdrawal than expected with a draw of 18 Bcf. Prices declined, after a small rally on the release, trading down to test the support from two weeks ago. The upcoming release should be another withdrawal well above last year (an injection) and the 5-year average withdrawal.
• Prices started the week rising very briefly before correcting downward and testing the gap from the previous week. The rally in the previous week was a forced short covering rally as discussed last week. Looking at the chart below, notice that the short open interest from the Nov expiration had extended well above its recent levels. When prices started to rally, the speculative short position was forced to cover some of their positions which led to the gains to $3.23. That rally was not combined with additional length from the speculative long sector. Rallies based solely on short covering are not long for duration and for additional gains in prices, open interest needs to gain along with prices and volume. Last week’s decline in prices may have provided additional speculative shorts which, as shown two weeks ago, can lead to volatile trade in the future.

• Last week’s declines were likely the result of moderating forecast changes by some of the models during the week. Expecting a consolidation type of range trade likely last week, the market decided to test the gap left from the previous week ($3.051-$2.998) and traded down to $3.046 before additional buying came in and carried the prices higher to the weekly close. Price action is expected to continue be driven by the changes in forecasts near term. A problem with this is the models seem to change over-night and have little or no confidence for the trade to take longer term positions either up or down.

• The volatility may increase this week with the shortened holiday week. As long as the gap remains from earlier November it should be considered major support. Driven by forecasts, the weather will have to shift much warmer into December with higher confidence levels to break below the $3.00 area. Should the market continue last week’s range trade, expect the highs of $3.23 to hold prompt near term.

NGLs
• Construction on the EPIC NGL pipeline began last week. The pipeline will span 650 miles from Southeast New Mexico to Corpus Christi and carry 375 MBbl/d of y-grade from the Permian and Eagle Ford basins to petrochemical companies and export markets.

Propane
• Inventories decreased 2.5 MMBbl in last week’s EIA report. Propane stocks now sit at 74.7 MMBbl, roughly 26.1 MMBbl lower than this time last year. However, propane stocks are still above the five-year average of 67.9 MMBbl for this time of year prior to 2015 (before the crude price crash).
• Propane prices have been trending upward since June, mostly supported by export demand. With the winter months approaching we expect prices to continue posting gains on higher demand.


Source: Drilling Info

 

Fort Myers News-Press Editorial Uses Misinformation to Support Call for Fracking Ban

Treasure Coast Newspapers (TCN), which includes the Fort Myers News-Press, recently published an editorial that called for a ban on fracking in the Sunshine State. But the editorial board’s rationale was based on a seriously flawed and inaccurate understanding of the practice and studies surrounding it.

The TCN editorial board made it clear that it supports recently proposed legislation that would not only ban fracking in Florida, but also be detrimental to the existing oil and gas industry, which has a proven record of success in the state. Let’s review how the editorial chooses to stoke fear in its readers when addressing issues about which they might be genuinely concerned.

Public Health

The editorial says:

“A new report published in ‘Reviews on Environmental Health’ found pollutants released during fracking could pose a health risk to infants and children.”

While we are all concerned about the health of infants and children (and adults), the editorial doesn’t mention that this report was a highly selective literature review that failed to prove causation. The report merely identified chemicals associated with oil and gas development — many of which can also be found in common household items — with no context regarding dose or reasonable exposure pathways, two essential components of any honest discussion about potential health impacts. Furthermore, the report’s authors (and the editor of the journal it appeared in) all have direct ties to some pretty big players that blatantly oppose fracking — Center for Environmental Health – which works actively to“[i]mpose moratoriums or bans that delay fracking,”; Physicians for Social Responsibility – which is funded by the anti-fracking Park Foundation and has a stated goal of banning fracking; Concerned Health Professionals of New York – which sent out multiple letters to New York Gov. Andrew Cuomo demanding a moratorium on fracking; and Physicians, Scientists, and Engineers for Healthy Energy (PSE) – a group founded by “ban fracking” activist Anthony Ingraffea that has produced similar “research” targeting children.

As EID recently explained, this report is part of a deliberate media strategy targeting children that was concocted by the leader of a group that one of the report’s authors happens to be a part of. The end goal of the media strategy is to drive regulations aimed at curtailing oil and gas development by generating headlines via emotional arguments — not by making substantive contributions to the scientific debate. And while the report itself did not generate many headlines, news outlets like TCN apparently still considered it legitimate science.

In light of these ties, the report’s so-called “finding” is not surprising. The authors even admitted their selection bias, noting that they “did not include a formal quality assessment of the literature.”

Notably, the report included a 2012 study on elevated benzene emissions from oil and gas operations that was thoroughly debunked by the Colorado Department of Public Health and Environment (CDPHE) for a variety of flaws, including the fact that the study failed to account for upwind emissions from a major interstate just one mile away.

Another 2015 study’s original findings made the cut for the literature review with no mention that it was later retracted, and then re-released with completely different findings that showed emissions are well below the level the U.S. Environmental Protection Agency (EPA) says would be harmful to public health. Further, not only were the updated findings absent from the literature review, but so was the CDPHE’s 2017 health assessment that collected over 10,000 air samples in parts of Colorado with “substantial” oil and gas operations, and found “low risk of harmful health effects from combined exposure to all substances during oil and gas development.”

As if that’s not enough reason to disregard this report’s usefulness in advancing a legitimate scientific discussion in Florida or elsewhere, the authors of this report even conceded that, “Currently, only a small number of studies document a causal relationship between pollution created by unconventional oil and gas operations and undesirable health outcomes.” If any studies of that nature exist – and that’s a big “if” considering that environmental research group Resources For the Future’s recent review of the 32 most prominent studies of health impacts from fracking foundthe literature does not provide strong evidence regarding specific health impacts” – they weren’t included in the report referenced by TCN.

Earthquakes

The editorial gets this one very wrong, claiming that:

“Scientists have established a strong link between fracking and earthquakes in Texas.”

This is simply not true. Most earthquakes in Texas are natural, and those that are induced have been associated with disposal wells, not fracking.

In June, The Academy of Medicine, Engineering and Science of Texas (TAMEST) released its two-year study analyzing the overall impacts oil and gas development has had on Texas. In addition to identifying positive impacts the industry has had in the state, it also noted areas of concern, including seismicity.

TAMEST found that “the vast majority of earthquakes are tectonic – due to natural stresses” and that those earthquakes that are potentially induced and felt at the surface “have been associated with fluid disposal in Class II disposal wells, not with the hydraulic fracturing process.” It also identified that Texas is leading the way in research surrounding induced seismicity, explaining:

“Government, industry, and academic representatives from Texas have all been active participants in these studies, putting Texas on the forefront of exploring, assessing, and mitigating the relationships between induced seismicity and oil and gas operations.” (pg. 45)

That’s because, contrary to the TCN claim, as the United States Geological Survey (USGS) has explained on numerous occasions, “fracking is NOT causing most of the induced earthquakes” and “not all wastewater injection wells induce earthquakes.” That includes in Texas.

Water Contamination

The TCN editorial claims:

“The Sunshine State has a high water table and the chemicals used in hydraulic fracturing — several of which are known carcinogens — could contaminate water supplies.”

There is no mention that more than 25 studies have concluded fracking does not pose a major risk of groundwater pollution and that this fear is misplaced.

The list of these studies includes three from 2017 alone – the TAMEST report, a report led by the USGS, and a report led by researchers from Duke University (funded by the National Resources Defense Council) – and the EPA’s landmark study that the editorial mentions. Following the EPA study’s release in 2016, former EPA Deputy Assistant Administrator Thomas Burke told CBS This Morning that “the overall incidence of impacts is low,” confirming the regulatory agency did not reverse course on its 2015 draft findings that there was no evidence of “widespread, systemic impacts” from fracking.

Furthermore, following CDPHE’s release of its health assessment that found that “the risk of harmful health effects is low for residents living [near] oil and gas operations,” and that “results from exposure and health effect studies do not indicate the need for immediate public health action,” the agency’s head of environmental epidemiology Dr. Mike Van Dyke explained why the level of exposure is key, not just the fact that a substance may or may not be present in a solution,

“Each can be a health concern at some level of exposure.”

This is especially true because of the number of substances that CDPHE examined that are also emitted by sources other than oil and natural gas development – including vehicle traffic and consumer products such as nail polish, detergents, sealants, aerosol antiperspirants and deodorants. Dr. Van Dyke concluded,

“What’s important in terms of exposure to these hazardous substances is how much you’re exposed to.”

As CDPHE and numerous other studies have found, the alarming level of exposure that TCN and anti-fracking activists fear isn’t occurring.

Water Use

The editorial states,

“Fracking also requires huge volumes of water for each well, and water is a precious commodity in our state.”

Actually, technological innovation has decreased the amount of freshwater used for fracking, and overall water use for the process accounts for less than one percent of total U.S. water use, according to 2015 studies led by Duke University and the U.S. Government Accountability Office.

The amount of water used to hydraulically fracture a well differs across oil and natural gas basins and thanks to improved technology it takes less and less freshwater. That’s because operators in places like Pennsylvania’s Marcellus Shale and Texas’ Barnett Shale are recycling flowback and production fluid to be reused in future operations, and even using acid mine drainage or other brackish water to complete wells.

Even a 2016 report from Ceres, a Boston-based green “investors” group backed by prominent anti-fossil fuel organizations, found that the amount of water used for fracking is significantly declining.

So yes, as the name implies, hydraulic fracturing does use water, but not in any volume that should scare Floridians.

Conclusion

For a media outlet to make the bold recommendation to “Ban fracking in Florida,” as TCN did – one would hope the editors would have at least done the research to back up the claims behind their recommendation. Unfortunately, they did not do this and chose to scare their readers using the debunked or exaggerated claims of anti-industry activists. While fracking is not currently used in Florida, the language of the proposed ban is so broad that it would impact existing, productive oil and gas development in the state. Floridians deserve to know the facts when one of the state’s successful industries is threatened.

Source: Energy In Depth

 

Earthstone Energy Agrees To Sell Bakken Assets For $27 Million

Earthstone Energy Inc. (NYSE: ESTE) is ditching its nonop position in the Bakken Shale as the company continues to narrow its focus on the “highly economic” Midland Basin, Earthstone said Nov. 20.

The Woodlands, Texas-based company agreed to sell the Bakken assets for about $27 million in cash to an unaffiliated party. As of Nov. 3, Earthstone reported its Bakken position, which is nonoperated, covered about 5,900 net core aces predominantly in McKenzie and Dunn counties, N.D.

Earthstone did not disclose the buyer or specify other details of the transaction. The company did not immediately respond to an email question seeking additional information.
Source: Oil & Gas Investor