Covering Hydraulic Fracturing and Its Impact on the Economy and the Environment. July 17, 2014

Transcription

1 Covering Hydraulic Fracturing and Its Impact on the Economy and the Environment July 17, 2014

2 Welcome to the Webinar This is an event from Poynter s News University, journalism s e-learning leader Host: Vicki Krueger Director of interactive learning & NewsU Use the Q&A pod to ask questions of the presenter Join us on Twitter: #nuwebinar

3 Thank You Harnisch Foundation For funding our Webinar equipment Knight Foundation For its support of News University

4 A Special Thank You to The McCormick Foundation For funding our Specialized Reporting Institute To see more from McCormick s Specialized Reporting Institute on Covering Hydraulic Fracturing, visit the Resources Page

5 Today s Presenter Bobby Magill Senior science writer, Climate Central Formerly covered oil and gas as environment reporter for Fort Collins Coloradoan and Grand Junction Daily Sentinel in Colorado

6 Today s Agenda What is hydraulic fracturing and how does it work? Where is fracking happening and why? What are the environmental and community impacts of fracking? What are the best ways to cover fracking? Where to learn more about fracking

7 Fracking in a Nutshell The U.S. is amid a crude oil and natural gas boom This boom is enabled by advancements in drilling and hydraulic fracturing, or fracking, technology Fracking allows energy companies to tap oil and gas deposits that were previously thought unreachable

8 Fracking in a Nutshell The boom is making the U.S. more energy independent and boosting the economy in many regions But there are costs A natural gas flare in North Dakota s Bakken Shale Credit: Alan Graham McQuillan/flickr Creative Commons

9 Fracking Costs in a Nutshell Fracking means more climate-changing carbon dioxide and methane emissions Fracking industrializes entire regions Fracking could lead to air and water pollution and possibly earthquakes Scientists are just beginning to understand public health impacts

10 What Is Fracking?

11 What Is Fracking? The term fracking is often used as a shorthand term for the entire process of crude oil and natural gas exploration, drilling and production But it s really a small and perhaps the most critical part of the modern oil and gas drilling and production process

12 What Is Fracking? Fracking is short for hydraulic fracturing, the process used to crack, or fracture, underground sedimentary rocks, such as shale and sandstone, to release trapped crude oil and natural gas into wells The process is also called fracing hydrofracturing or hydrofracking. AP style is fracking.

13 What Is Fracking? Fracking has been around for decades But without recent advances in fracking technology, today s oil and gas boom would not be occurring in its current form

14 What Is Fracking? The oil and gas deposits in the tight sandstone layers are called unconventional resources They require new technology to extract This technology includes fracking Also known as enhanced recovery Uses well bores that run horizontal to the surface of the earth or at an angle

15 What Is Fracking? The layers of shale/sandstone often thin Layers are tight, which means they re not porous. The oil/gas doesn t easily flow. Tech advances allow wells be drilled horizontally. U.S. DOE

16 What Is Fracking? This is what a modern drilling rig looks like Credit: Jeff Sandquist/flickr

17 What Is Fracking? Source: NETL

18 What Is Fracking? When a well is drilled, it is lined with a steel casing and cemented in place to prevent drilling fluids from leaking into underground aquifers

19 What Is Fracking? After the well bore is completed and cased, the it is perforated at the end When the well is fracked, the water, sand and chemicals are injected into the well at high pressure The fluids are forced out of the perforations, fracturing the surrounding rock formation and allowing the oil and gas to flow into the well bore

20

21 What is Fracking? The fracturing of the shale or sandstone stimulate the flow of oil and gas. Sand is used to prop open the fractures Wells often produce a lot of oil and gas to begin with then production trails off

22 What is Fracking? Wells can be drilled more than 1 mile beneath the surface Up to half of the fracking fluid injected into the well bore returns to the surface and is either recycled or disposed Some is injected underground in wastewater disposal or injection wells

23 What is Fracking? This is what fracking looks like from the surface Credit: Flickr

24 What Is Fracking? More than a decade ago, it wasn t possible to drill a well bore at an angle or make a 90 degree turn underground But advances in drilling technology allow drilling new wells horizontally Or at an angle Through thin layers of shale or sandstone

25 What Is Fracking? Drilling a well bore hole at an angle is called directional drilling When the well bore hole runs horizontal to the surface, it s called horizontal drilling These technologies help make the current energy boom possible.

26 What Is Fracking? Though often associated with shale gas extraction, fracking is used to extract both crude oil and natural gas Some wells produce mostly crude oil Some produce mostly natural gas or natural gas liquids Some produce a lot of both

27 What s in Fracking Fluid? Fracking fluid is made of sand, surfactants, disinfecting agents, water, other chemicals and sometimes radioactive tracers These allow drillers to gather data about how the well is being fracked

28 What s in Fracking Fluid? Some of the ingredients of fracking fluid are proprietary and considered trade secrets Some states, such as Colorado, require companies to disclose the chemical constituents of proprietary ingredients to state officials in an emergency

29 What s in Fracking Fluid? No two fracking operations are the same Some use millions of gallons of water and a few of chemicals Some use much less water and a lot chemicals Here are some examples from FracFocus.org:

30

31 Fracking Fluid: A Closer Look Example Well 1: Malo (Noble Energy) Location: Weld County, Colorado Fracked: April 4, 2012 Water used: 149,394 gallons Types of chemicals used: Acidizers, biocides, breakers, buffers, clay controllers, corrosion inhibiters, crosslinkers, friction reducers, gelling agents, proppants, surfactants, etc. Ingredients: 59, including 21 listed as a trade secret: Water; hydrochloric acid; 2,2-Dibromo-3, Nitrilopropionamide; Ammonium Persulphate; Crystalline Silica Quartz; Potassium Carbonate; Potassium Hydroxide; Choline Chloride; Aromatic Aldehyde; Benzyl Chloride; Cyclic Alkanes; Formic Acid; Isopropanol; Methanol; Sulfur; Oxyalkylated Fatty Acid; Quaternary ammonium compound; petroleum distillates; boric acid; and dozens of others Source: FracFocus

32 Fracking Fluid: A Closer Look Example Well 2: Black Hollow H (Marathon Oil) Location: Weld County, Colorado Fracked: July 31, 2012 Water used: 2.3 million gallons Types of chemicals used: Biocides, breakers, buffers, clay controllers, crosslinkers, gelling agents, friction reducers, proppants and surfactants Ingredients: 52, including 12 listed as a trade secret: Water; tetrakis(hydroxymethyl) phosphonium sulfate; ammonium persulfate; tryptone; yeast extract; silica quartz; potassium carbonate; potassium hydroxide; choline chloride; petroleum distillates; boric acid; methanol; 1-butoxy-2-propanol; parafinnic petroleum distillate; guar gum; isotridecanol, ethoxylated; hexamethylenetetramine; essential oils and other distillates, resins and proppants. Source: FracFocus

33 Fracking Fluid: A Closer Look Example Well 3: Gremmel 6H (Southwestern Energy) Location: Susquehanna County, Pennsylvania Fracked: April 3, 2013 Water used: 5.1 million gallons Types of chemicals used: Water, proppant, friction reducer, biocide, scale inhibitor and corrosion inhibitor. Ingredients: Only 10, including two listed as proprietary: Silica sand; Hydrochloric acid; Friction Reducer-B; Dibromoacetonitrile; 2,2-Dibromo-3-nitrilopropionamide; Polyethylene Glycol, proprietary blend surfactants, short-chained glycol ether; and ethoxylated alcohol Source: FracFocus

34 Where Is Fracking Happening? Major areas of energy development in a common geologic formation are called plays They are usually named for the underground rock formation that is producing the most oil and gas

35

36 This is where the growth is Oil and gas are produced in many places in the U.S. But early all growth in oil and gas production since 2011 has come from six Source: EIA regions across a dozen states

37 America s Biggest Shale Oil Plays The Bakken Shale (North Dakota) The Eagle Ford Shale (Texas) The Permian Basin (Texas, New Mexico) The Niobrara shale (Colorado, Wyoming)

38 Biggest Natural Gas Plays The Marcellus shale (Pennsylvania) The Eagle Ford shale (Texas) The Niobrara (Colorado, Wyoming, Nebraska) The Haynesville shale (Texas, Louisiana, Arkansas) The Permian Basin (Texas, New Mexico)

39 Why Fracking Matters U.S. is on track to become the world s biggest oil producer and biggest gas producer Surpassing Saudi Arabia IEA: U.S. could become a net exporter of oil liquids by 2020 Shale oil and gas could raise U.S. GDP by an average of 3.5 percent annually through 2035, according to a 2013 Purdue University study Sources:

40 Fracking and Your State Economy Example: Colorado Home to 50,000+ oil/gas wells and Niobrara shale boom since 2009 Oil/gas industry supports 51,000 jobs in Colorado with average wages over $74,800 Industry generated $29.6 billion to state economy in 2012 and $1.6 billion in public revenue Source: Univ. of Colorado-Boulder Leeds School of Business,

41 Fracking and Your State Economy Example: North Dakota 2 nd -largest U.S. oil producer Home to ~10,000 oil/gas wells and Bakken shale boom Oil/gas: 9 percent of ND workforce, about 41,000 jobs in 2011 a 709 percent increase over 2005 May 2014 unemployment rate 2.6 percent lowest in U.S. Sources: 1. North Dakota State Industrial Commission 2. N.D. Petroleum Council 3. U.S. Dept. of Labor, Bureau of Labor Statistics

42 Why Fracking Matters Bottom line The U.S. oil and gas boom is contributing to energy independence and economic prosperity in energyproducing regions, and reducing U.S. reliance on coal for electricity. But fracking doesn t happen without possible costs

43 What Are the Impacts? The industrialization of residential areas An oil well and 300 barrel crude oil tank in a neighborhood north of Denver. Credit: Bobby Magill

44 What Are the Impacts? Air pollution and fugitive methane emissions, driving climate change Flaring Niobrara shale wells in Weld County, Colorado. Credit: Bobby Magill

45 What Are the Impacts? Wildlife habitat fragmentation Piceance Basin natural gas development near Parachute, Colo. Credit: SkyTruth/flickr

46 What Are the Impacts? Combusting fossil fuels is America s second-largest source of climate-change driving CO 2 emissions This includes crude oil used for the gasoline we put in our vehicles Some of which comes from the fracking boom Source: EPA

47 What are the impacts? Emissions Recent studies suggest methane emissions from shale oil/gas development differ from EPA inventories Studies: Abandoned wells in PA leak methane; some active Marcellus wells leak more depending on when/where drilled Depends on how emissions are estimated top down vs. bottom up

48 What Are the Impacts? Public health Increased noise, lights at night, industrial activity near homes Reports of physical health impacts from residents living near oil and gas wells Studies suggest a small increase in cancer risk for those who live near wells Possible increases in birth defects Possible well water contamination

49 Earthquakes Cornell University Study: Pumping fracking wastewater into ground correlates with Oklahoma s small quakes. Scientists can t confirm wastewater injection causes quakes Colorado and Ohio suspended injection after quakes as precaution

50 U.S. Earthquakes M2.5+ June 16-July 16, 2014 Wattenberg Field, Niobrara Play Oklahoma City

51 Earthquakes 2013 USGS/U-Okla./Columbia Study: Nov M5.7 quake in Okla. possibly induced by injection Felt in 17 states Two M5.0 aftershocks Quakes increasing concurrently with fracking; increases fluid pressure underground Fluid injection could cause quakes decades after the fact

52 Earthquakes Bottom Line: No proof yet, but science suggests that fracking and wastewater fluid injection may cause damaging earthquakes

53 What Don t We Know? A lot How much methane is leaking from wells and where is it coming from? Studies show it s leaking, but not enough info on rate, volume and location What chemicals are people living near wells exposed to and at what level? What specific kinds of oil and gas activities contribute to health problems?

54 What Don t We Know? A lot How frequently is groundwater contaminated from fracking? Health effects of stress related to living in residential area seeing high levels of energy development on top of previous land uses Scientists concerned that too little data exist to fully assess health/environmental impacts of fracking

55 Polling Question How is oil and gas development affecting your town? It s booming, creating many new jobs It s booming, but with many concerns about environmental impact It s not there yet, but it s coming My area is unlikely to see any fracking

56 Reporters Resources FracFocus.org A chemical disclosure registry for fracking fluid ingredients Interactive map of fracked wells and basic overview of fracking A VERY valuable resource* *Not every fracked well is included

57

58 Reporters Resources FracTracker.org A wealth of maps and data tracking the impacts and spread of oil and gas development in U.S.

59 Reporters Resources State Regulators Websites Excellent for data mining, but Every state regulator s website offers different level of transparency Some difficult to navigate May require open records request (FOIA) to obtain necessary info.

60 Reporters Resources State Example: Colorado Oil and Gas Conservation Commission cogcc.state.co.us Incident data self-reported by energy companies

61

62 Reporters Resources State Example: Pennsylvania depweb.state.pa. us Each state has different kinds of data on O&G website

63 Reporters Resources Federal Government Energy Information Administration eia.gov Wealth of energy stats and production data EPA Latest info on rulemaking, overview of fracking process, description of some risks National Energy Technology Lab netl.doe.gov Wealth of info on technology Primers on energy production Good primer on how fracking works:

64 Reporters Resources Bureau of Land Management blm.gov Manages the federal mineral estate and conducts oil and gas leasing on all federal public lands including national parks and forests and BLM land in the West Publishes maps of upcoming lease sales USGS Wealth of geologic info on shale oil and gas, fracking Real-time earthquake info

65 Reporting Tips Mine regulators websites for data Localize fracking-related scientific studies Forge relationships with residents living in/near existing and future oil and gas fields FOIA state/federal data you can t get online. Scour legal ads for public hearings, permitting processes, real estate transactions

66 Reporting Tips Pay attention to energy company quarterly reports Get to know hazmat placards Basic reporting habits: Get out of the office and talk to residents, industry employees, land managers, etc. Approach fracking like you would any other beat: Mine for data, report the science, seek informed opinions.

67 Reporting Tips Fracking affects the economy, people s neighborhoods, property values, jobs, public health and the environment. Hold those involved in the process accountable like you would for any other issue Don t let energy boosterism prevent you from asking questions Don t let activists get in the way of reporting the benefits of the shale boom

68 Questions to Ask: How is energy development affecting housing values? What it s like to live next to an oil/gas well? What s on that train and where s it going? Does our local gasoline station carry gas produced from oil nearby?

69 Questions to Ask How is my county tax revenue affected by energy development? Where does water for fracking come from? How much is being used/sold? Where are those red Halliburton trucks going and what are they doing?

70 Questions to Ask Who decides where an oil well can be drilled and what happens if the landowner says no? How many landowners own their mineral rights in my community, and what power do they have to control drilling on their property?

71 Questions to Ask If there s a spill from a well, where does that spill flow to? How much money are energy companies contributing to schools? Political campaigns? Public infrastructure? How does my community benefit from severance taxes?

72 Polling Questions Where do you learn about nearby energy development? News sites Local government website Activists Industry

73 Contact Bobby Magill Climate Central 154 Grand St. New York, NY (646)

74 Thank You, Bobby We ll be going to Questions shortly We want to tell you about some other training

75 Webinar Replay Registration gives you access to the replay Available two days after the live Webinar Access it anytime

76 Upcoming Webinars New Ethics for News Managers July 22 at 2 p.m. Eastern Managing Creative People July 24 at 2 p.m. Eastern There s Math in My Journalism! Sept. 4 at 2 p.m. Eastern

77 Poynter Seminars TEDx PoynterInstitute: Disruption Paradigm shifts that cause a revolution of change are called disruption; some see in this disruption opportunity Join us as we tap into the minds of these people Take part in a dialogue about harnessing change to promote learning, inspiration and wonder August 19, 2014 Apply now!

78 Questions? Fire Away! Use the special Q&A pod to submit questions Questions are not posted to the public

79 Thank You for Attending Remember to visit Poynter s NewsU Journalism Training. Anytime. Anywhere. For Anybody.