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Severance tax would backfire, Pennsylvania association leaders warn

WASHINGTON, DC, Dec. 17 12/17/2014 Enacting a severance tax aimed at Pennsylvania’s unconventional natural gas activity would substantially harm the commonwealth beyond the industry itself, three oil and gas trade association officials warned. Gov.-Elect Tom Wolf (D) made such a tax a major part of his campaign as a relatively quick way to increase revenue and begin bringing Pennsylvania’s budget in line. But the commonwealth’s economy has flourished as gas activity grew under the existing system, Associated Petroleum Industries of Pennsylvania Executive Director Stephanie Catarino Wissman said. “Energy development is sustaining families with new jobs and generating more income for communities,” she said during a Dec. 16 teleconference with reporters. “Don’t fix what is not broken. Don’t break the economic backbone of the commonwealth.” “The revenue projections that were out there during campaign season were wildly overestimated and can’t be supported by facts,” added Marcellus Shale Coalition Pres. Dave […]

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Cheap Natural Gas Lures Private Equity to Power Industry

The companies most bullish on U.S. power aren’t from the energy industry . They are private equity firms, and here’s why: natural gas. Firms from Panda Power Funds to Energy Investors Funds are financing about 10 gigawatts of new gas-fired plants over the next five years in the 13-state mid-Atlantic grid. That’s enough power to run New York City on all but the hottest summer days. Traditional power companies are building less than 4 gigawatts. Part of the electric grid sits atop the Marcellus shale formation in Pennsylvania , which supplies 18 percent of U.S. gas production, up from 1.8 percent in 2007. Gas from the Marcellus shale deposit is helping boost U.S. production to a record for a fourth year. Growing supplies have cut gas prices in half over the past six years, double the drop in power, leaving investors with a healthy profit margin. Gas plants will […]

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Methane Emissions from Two Main Sources says UT Study

Study points to the greatest threat from methane emissions Natural Gas Emissions A new study led by researchers from The University of Texas hopes to provide clues to better understand the correlation between well technology and methane emissions during the natural gas production process. The findings, published December 9th in Environmental Science & Technology , indicate that the overwhelming majority of methane emissions are from two types of wells; those that use pneumatic devices and those that use liquid unloading. According to the study, 19% of Pneumatic Devices were responsible for 95% of methane emissions and were highest in the Gulf Coast Region, which was a similar result to the first part of the study conducted in 2013 . As for Liquid Unloading, 20% of these devices account for 65-85% emissions. Conversely, this finding showed emissions were highest (~50%) in the Rocky Mountain Region due to the higher number […]

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Texas study finds chink in U.S. shale gas armor

Texas study finds shale natural gas future may not be as bright as rival analyses predict. UPI/Gary C. Caskey AUSTIN, Texas, Dec. 4 (UPI) — A study of shale natural gas plays in the United States finds some of the predictions for long-term growth may be overly optimistic, the journal Nature reports. The U.S. Energy Information Administration expects shale natural gas production to increase through 2040. Advances in hydraulic fracturing, the drilling practice known commonly as fracking, has given energy companies a way to coax gas out of shale rock deposits that were previously out of reach. Tad Patzek, director of petroleum engineering at the University of Texas at Austin, said a detailed analysis of U.S. shale plays may be "bad news" for forecasters, describing the EIA’s forecast as optimistic. Policymakers on Capitol Hill have said the glut of natural gas means the United States should transform itself as […]

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Natural gas: The fracking fallacy

A rig drills for natural gas using hydraulic-fracturing methods in a Pennsylvania shale formation. Jim Lo Scalzo/EPA/Alamy When US President Barack Obama talks about the future, he foresees a thriving US economy fuelled to a large degree by vast amounts of natural gas pouring from domestic wells. “We have a supply of natural gas that can last America nearly 100 years,” he declared in his 2012 State of the Union address. Obama’s statement reflects an optimism that has permeated the United States. It is all thanks to fracking — or hydraulic fracturing — which has made it possible to coax natural gas at a relatively low price out of the fine-grained rock known as shale. Around the country, terms such as ‘shale revolution’ and ‘energy abundance’ echo through corporate boardrooms. Companies are betting big on forecasts of cheap, plentiful natural gas. Over the next 20 years, US industry and […]

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Hard Times in a Boom Town: Pennsylvanians Describe Costs of Fracking

If you’re looking for the shale gas boom, northeastern Pennsylvania is the place to start. The Marcellus is the largest and fastest growing shale gas play in the U.S. and more than half of its 50 most productive wells were drilled in Susquehanna County in the northeast. Susquehanna and neighboring Bradford County produced 41 percent of all Marcellus gas this June . While drilling is down in other shale gas plays across the US, with major oil companies selling off their stakes and CEO’s expressing regret for buying in, the Marcellus has bucked some of the downward trends so far. A recent report from the Post Carbon Institute, “ Drilling Deeper: A Reality Check on U.S. Government Forecasts for a Lasting Tight Oil and Shale Gas Boom ,” has grave warnings about the Energy Information Administration’s figures nationwide, concluding that two-fifths of the shale gas the agency expects to […]

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32% of natural gas pipeline capacity into the Northeast could be bidirectional by 2017

Republished December 2, 2014, 11:00 a.m. to update text. Spurred by growing natural gas production in Pennsylvania, West Virginia, and Ohio, the natural gas pipeline industry is planning to modify its systems to allow bidirectional flow to move up to 8.3 billion cubic feet per day (Bcf/d) out of the Northeast. As of 2013, the industry had the capacity to transport 25 Bcf/d of natural gas from Canada, the Midwest, and the Southeast into the Northeast. In addition to these bidirectional projects in the Northeast, the industry plans to expand existing systems and build new systems to transport natural gas produced in the Northeast to consuming markets outside the region. Flows on ANR Pipeline, Texas Eastern Transmission, Transcontinental Pipeline, Iroquois Gas Pipeline, Rockies Express Pipeline, and Tennessee Gas Pipeline accounted for 60% of flows to the Northeast in 2013. Flows on these pipelines in 2013 were between 21% and […]

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How the US shale gas industry has changed the global economy

The year 2014 will be remembered for an unprecedented juxtaposition of events. Two oil-producing countries in the Middle East were in a state of crisis. Relations between the West and Russia slumped to a new Cold War low. And oil prices have slumped, to $66 a barrel for Brent Crude this morning, half its recent peak. This didn’t used to happen. The modern history of oil prices is characterised by a series of spikes, each one coinciding with a crisis in the Middle East. It is a mark of how US shale gas and oil production has changed the oil market – and thus the prospects for the global economy. Never has a theory collapsed so quickly as Peak Oil, the idea that fossil fuel prices would rise inexorably as supply failed to keep track of demand. Even as late as 2011 the US had a trade deficit in […]

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Shale gas provides largest share of U.S. natural gas production in 2013

Republished November 25, 2014, 10:15 a.m. to clarify graph title. Total U.S. natural gas gross withdrawals reached a new high at 82 billion cubic feet per day (Bcf/d) in 2013, with shale gas wells becoming the largest source of total natural gas production. Natural gas gross withdrawals are a measure of full well stream production including all natural gas plant liquids and nonhydrocarbon gases after oil, lease condensate, and water have been removed. According to the Natural Gas Annual , gross withdrawals from shale gas wells increased from 5 Bcf/d in 2007 to 33 Bcf/d in 2013, representing 40% of total natural gas production, and surpassing production from nonshale natural gas wells. New technology has enabled producers to shift production to resources that are now easier to reach and have lower drilling costs. These trends have been reflected in a lower market price of natural gas. In 2007, shale […]

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The Real Cost of Fracking: How America’s Shale Gas Boom Is Threatening Our Families, Pets, and Food

Resilience Published on Resilience (http://www.resilience.org) The first researchers to systematically document ill health in livestock, pets, and people living near fracking drill sites were Michelle Bamberger and Robert Oswald. Bamberger, a veterinarian, and Oswald, a professor of molecular medicine at Cornell University, used a case study approach–looking at individual households–to search for possible effects (Bamberger and Oswald 2012). Many fracking chemicals are known carcinogens, endocrine disruptors or other classes of toxins (Colborn et al. 2011). Bamberger and Oswald’s studies, carried out during the ongoing fracking boom, uncovered serious adverse effects including respiratory, reproductive, and growth-related problems in animals and a spectrum of symptoms in humans that they termed “shale gas syndrome”. Ultimately, their research led them to consider fracking’s broader implications for farming and the food system (Bamberger and Oswald 2012 and 2014). Their new book, The Real Cost of Fracking: How America’s Shale Gas Boom Is Threatening Our […]

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