Chesapeake Energy, the No. 1 driller in Ohio’s Utica Shale formation, projected an estimated ultimate recovery (EUR) of 5 billion to 10 billion cubic feet of equivalents over the lifetime of each of its wells drilled into the Utica Shale in Carroll County and the surrounding areas. Those EUR estimates are pointedly higher than what has been reported from wells drilled in the Marcellus Shale formation in Pennsylvania, where Chesapeake Energy has only reported EURs as high as 4.2 billion cubic feet of equivalents and the U.S. Geological Survey has reported an average EUR of 1.1 billion cubic feet of equivalents.
The Charleston Gazette reports that Kureha PGA is making a product in its Belle facility that may be used by oil and gas companies. The product is a polyglycolic acid resin (PGA) called Kuredux, a high-performance polymer that has been certified as a biodegradable plastic in the U. S., Europe and Japan. Kureha PGA indicates that the product will help to minimize the damage caused to subterranean formations during production of oil and gas and will also help to minimize the number of operating steps necessary to bring wells on-line faster. According to the article, the product is meant to be used underground until it serves it purpose, and then biodegrades.
West Virginia Public Broadcasting reports that a new study has begun regarding the use of water in hydraulic fracturing in the Marcellus Shale in West Virginia, Pennsylvania, and Ohio. The Robert and Patricia Switzer Foundation is providing funding for the study, which is being undertaken by Downstream Strategies and the non-profit organization Earthworks, as well as Switzer Foundation scholars. The goal of the study is to develop a life cycle analysis of water involved in drilling and hydraulic fracturing. In addition to the amount of water used, the study will identify the source and the final destination of the water in order to compare water use for hydraulic fracturing to the water used for other types of energy production. The findings of the study are expected to be available by the end of 2013.
The fate of New York’s fracking moratorium remains uncertain. According to the Huffington Post, if the rules proposed by the New York State Department of Environmental Conservation (DEC) are not finalized by February 27, 2013, the proposal will expire and create an opportunity for another round of public comment. Whether the new rules will be issued by the deadline remains uncertain. DEC Commissioner Joe Martens recently testified before state legislators that DEC “[does] not have a timetable” for completing the environmental impact review related to the regulations. Martens indicated that DEC’s completion of the rules is dependent upon a forthcoming report from the Department of Health. Martens added that completing the rules could take even longer if the Health report recommends modifications to the proposed rules. A coalition of New York state lawmakers has demanded that DEC provide an opportunity for the public to comment on the health aspects of the impact review. This could delay the completion of the rules even further. Based on a recent telephone poll of approximately 1,200 registered voters in New York, there is an even divide among New Yorkers on whether to lift the 4 ½ year-long moratorium.
New York State Comptroller Thomas DiNapoli has announced that Cabot Oil and Gas Corporation has agreed to disclose its policies and procedures for reducing and eliminating toxic substances associated with its hydraulic fracturing fluids. DiNapoli commended Cabot Oil and Gas in the announcement, stating “Cabot has taken a positive step to reduce risk to shareholders, the environment and the communities in which it operates . . . This agreement means that Cabot will publicly release what it is doing to use less toxic substances in its hydraulic fracturing fluids and detail how it is ensuring these efforts are being carried out.” DiNapoli has also reached agreements with Hess Corp., Range Resources and SM Energy to disclose potential risks associated with their respective hydraulic fracturing activities.
The Associated Press reports on continued efforts by the oil and gas industry to develop alternative formulations of fluids used to hydraulically fracture wells that include non-toxic and food-grade substances. In particular, the AP’s report spotlights a new fracturing fluid known as CleanStim that is produced by Halliburton Inc. and is made with ingredients sourced from the food industry. According to Halliburton’s website, “acquiring the ingredients from the food industry provides an extra margin of safety to people, animals and the environment in the unlikely occurrence of an incident at the wellsite.”
As we anticipated in a previous post, the U.S. Department of the Interior, Bureau of Land Management (BLM), has reportedly submitted to the White House Office of Management and Budget its revised proposal for regulation of hydraulic fracturing on federal lands. The original proposal released in May 2012 prompted significant criticism from industry representatives, state regulators, and environmental groups alike. BLM expects to release its new proposal sometime in the first quarter of 2013.
Industry experts believe that horizontal drilling of shallow wells could be an opportunity for small family-owned drillers, the Pittsburgh Tribune-Review reports. Shallow horizontal wells and fracking are more affordable than in the past due to improved technology and a larger workforce trained in the process. According to the Tribune-Review, PENNECO became the first company to horizontally drill and frack a well for oil out of a conventional formation in Pennsylvania when it completed a well in Lower Burrell in early 2011.
The U.S. Department of the Interior Bureau of Land Management (BLM) recently announced that it will revise its draft proposal to regulate fracking on federal lands. According to BLM, approximately 90 percent of wells drilled on federal and Indian lands utilize hydraulic fracking. BLM is seeking to address concerns raised in over 170,000 comments it received in response to its May 2012 proposal. Revisions will reportedly be sent to the Office of Management and Budget next week for review. BLM spokesman Blake Androff reportedly stated that the agency is improving the draft proposal “in order to maximize flexibility, facilitate coordination with state practices and ensure that operators on public lands implement best practices.” BLM expects to release the revisions by March 31, 2013, and will seek comments on the revised proposal.
A one-year moratorium on hydraulic fracturing in New Jersey ended yesterday, the Star-Ledger reports. Gas resources are projected to be limited in New Jersey, and a New Jersey Department of Environmental Protection spokesman reported that no applications or interest from exploration and production companies had been received. However, anti-fracking advocates have pushed for New Jersey to extend the moratium.
Pennsylvania state Senator Daylin Leach (D-Montgomery County) recently circulated a memorandum to state senators stating that he would re-introduce legislation in the 2013-2014 Regular Session to amend portions of Act 13 of 2012 that relate to disclosure of confidential hydraulic fracturing constituents to health professionals. Act 13 contains provisions regarding when chemicals used in hydraulic fracturing and considered proprietary by an operator may be disclosed to health professionals and limiting the disclosures. In his memorandum, Senator Leach stated that the provisions of Act 13 on this issue are “poorly drafted” and that his bill would provide “clarifying language” regarding circumstances when such information can be requested and disclosed by a health professional.
On December 21, 2012, EPA released a much-anticipated progress report as part of its major hydraulic fracturing study. EPA began research in 2011 under its “Plan to Study the Potential Impacts of Hydraulic Fracturing on Drinking Water Resources,” in order to assess the potential impacts, if any, of hydraulic fracturing on drinking water. In the 278-page progress report, EPA outlines past and future research efforts but avoids drawing any preliminary conclusions. EPA expects to release draft research results in late 2014.