Professional Documents
Culture Documents
Summary
Taniya Thomas
Sergio Mino
Table of Contents
3. Marcellus Shale
3
4. Hydraulic Fracturing
4
5. Vertical vs. Horizontal Drilling
5
6. Regulations 5
7. Evaluation of Benefits 6
i. Resource Assessment
6
ii. Oil and Coal Comparison
8
iii. Economic Benefits and Job Creations
9
8. Evaluation of Threats
11
i. Water Usage
11
ii. Chemicals Used for Hydraulic Fracturing
12
iii. Risk Assessment
13
iv. Flowback Water
15 v. Impact on Land
16
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Sergio Mino & Taniya Thomas
Analysis of the Benefits, Impacts, and Trade-Offs with Developing the Marcellus Shale
Gas Potential in Broome County, NY
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Sergio Mino & Taniya Thomas
Analysis of the Benefits, Impacts, and Trade-Offs with Developing the Marcellus Shale
Gas Potential in Broome County, NY
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Sergio Mino & Taniya Thomas
Analysis of the Benefits, Impacts, and Trade-Offs with Developing the Marcellus Shale
Gas Potential in Broome County, NY
4. Hydraulic Fracturing
Hydrocarbon and gas reservoirs depend highly on permeability in
order to provide acceptable yields of production. Once a mature
reservoir starts lowering production rates then a well stimulation
operation is necessary in order to enhance the recovery. On the other
hand, a conventional reservoir is characterized for having a geological
connectivity and permeability that allows recovery by conventional and
economical techniques for oil or gas. Recent technological
development can change the status of a reservoir and convert the
once unconventional reservoir to a conventional one. For the case of
shale formations, the gas is trapped inside fractures and pores of the
shale, as the shale itself is characterized as a very low permeability
formation because it is in the form of fine grains. This allows the shale
to be cracked easily without disintegrating it when it is humidified.
Hydraulic fracturing is a well stimulation technique used to
enhance recovery of mature reservoirs as well as to make
economically and technically feasible to recover gas or oil from
unconventional reservoirs. The basis of the technique is to enhance the
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Sergio Mino & Taniya Thomas
Analysis of the Benefits, Impacts, and Trade-Offs with Developing the Marcellus Shale
Gas Potential in Broome County, NY
and cementing the annulus. Then, the well is drilled even further down
into the formation. At that point different tests are made to make sure
the resource will be productive.
With horizontal drilling, drilling is initiated using the same
method as vertical, but at some point the drilling is turned horizontally
by using a mud motor. The mud motor is a device that contains a rotor
and a stator inside it that is turned by the force of drilling mud and is
able to remain in an established direction. Horizontal drilling can
extend up to 5,000 ft in the horizontal plane. For this reason the
fracturing is done in sections but surface contact of the wellbore with
the formation is notably increased. This also results in a higher use of
hydraulic fluid per well.
Between 2006 and 2010, 2000 wells have been drilled in the
Marcellus Shale. 710 of these wells were drilled in 2009 alone, of which
508 were horizontal wells.14
6. Regulations
At the federal level there are various regulations that apply to oil
and gas drilling operations. These regulations are dependent on the
waste that is to be regulated or the possible receptor of an emission
and depend upon a department of the government, such as the
Environmental Protection Agency (EPA), the Bureau of Land
Management (BLM) or the Bureau of Ocean Energy Management and
Enforcement (BOEMRE).
There have also been many laws passed in order to regulate
certain emissions and other consequences of drilling. These include the
Resource Conservation and Recovery Act (RCRA), the Clean Water Act
and the Safe Drinking Water Act. The RCRA regulates the release of
hazardous wastes. However, in 2005, Congress decided to exempt the
oil and gas industries from compliance of Subtitle C, Section 3001(b)(2)
(A) and Section 8002(m), pending more studies and regulatory
determination by EPA.15 The Clean Water Act requires that a permit
issued by the National Pollutant Elimination System (NPES) must
authorize any discharge of pollutants to the surface water.
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Analysis of the Benefits, Impacts, and Trade-Offs with Developing the Marcellus Shale
Gas Potential in Broome County, NY
Shale spans between 54,000 square miles and 95,000 square miles.
For each area, a maximum and minimum for total natural gas was
calculated assuming that 70% of the land was usable. For the
minimum value, calculations were based on 0.5 BCF gas production of
a well per 80 acres and for the maximum value, 2.5 BCF was used over
the same area. Table 1 shows the results of these calculations.
Table 1. Natural Gas from the Marcellus Shale
Area (Square Minimum (TCF) Maximum (TCF)
Miles)
54000 151.2 756
95000 266 1330
Since there is not enough data on production, recoverable natural
gas is based upon various assumptions and calculations (Appendix VI)
The Federal Energy Regulatory Commission’s (FERC) estimate for
recoverable natural gas from the Marcellus Shale is within the smaller
area range at 262 TCF.19 However, as previously mentioned, Engelder
predicts the recoverable natural gas from Marcellus to be 489 TCF.
Both of these values fall within the total range from Table 1.
The total natural gas available in Broome County was calculated
using similar methods as above. These results can be found in Table 2.
(Appendix VII)
Table 2. Natural Gas from the Marcellus Shale – Broome County
Area (Square Minimum (TCF) Maximum (TCF)
Miles)
707 1.98 9.90
ii. Oil and Coal Comparison
Petroleum (crude oil) is of important use to the United States. In
2009 about half of crude oil came from Texas, Alaska, California, North
Dakota and Louisiana.20 57% of petroleum is imported to the United
States from Canada, Saudi Arabia, Venezuela, Nigeria and Mexico.21
The United States is currently the largest consumer of petroleum and
consumes close to 19.5 MMbbl a day.21 However, when petroleum
products are burned, they can have emit harmful products into the
environment such as carbon dioxide, carbon monoxide, sulfur dioxide,
nitrogen oxides, volatile organic compounds (VOC), particulate matter
and lead to name a few.20
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Analysis of the Benefits, Impacts, and Trade-Offs with Developing the Marcellus Shale
Gas Potential in Broome County, NY
percent of the total.1 For this reason, the GHG emissions for coal seem
much lower than that for natural gas, on a percent basis, coal emits
more than natural gas. (Appendix VIII)
iii. Economic Benefits and Job Creations
From current trends, it is expected that gas production in the
Marcellus Shale will continue to expand as natural gas continues to be
used in a variety of ways. As mentioned earlier, horizontal drilling can
produce substantially more gas than vertical drilling.
Natural gas prices have varied substantially and are projected to
grow for the next two decades.25 The Marcellus Shale prices are lower
in comparison to other shale formations for two main reasons: drilling
costs are lower than for other shale as a result of gas deposits being
closer to the surface and the installation of the Millennium Pipeline.17
Recently, like in many counties across the country, Broome
County has reported negative economic growth.17 Developing the
Marcellus Shale can bring economic stimulation to the county since
prices for natural gas are expected to rise. Additionally, there will be
continued demand for natural gas in transportation, residential and
industrial uses.17
The Marcellus Shale itself can bring anywhere from $588 billion
to $5.2 trillion based upon the total possible natural gas extracted
using the current price of natural gas ($3.79/MM BTU on November 19,
2010).
For Broome County, the total possible revenue ranges from $7.7
billion to $38.5 billion. While it is unknown exactly how many wells will
be drilled in Broome County, the maximum estimated is 3959 wells
with eight wells per 640 acres (Appendix IX). That means that each
well can bring between $1,946,165 and $9,730,825 to the County.
However, spending costs must also be taken into account. These costs
will include such things as leasing land, exploration, cost to drill wells,
operating costs and royalties to name a few.
From the production and time relation graph, it is concluded that
it will take about 30 years for all the resources in the Marcellus Shale in
Broome County to be depleted (Figure 2). This is a within the typical
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Analysis of the Benefits, Impacts, and Trade-Offs with Developing the Marcellus Shale
Gas Potential in Broome County, NY
time frame for natural gas wells that normally have a 20-30 year
lifespan.
Figure 2. Production vs. Time Graph for Minimum and
Maximum Value
8. Evaluation of Threats
i. Water Usage
Water usage for hydraulic fracturing of a horizontal well is
between three to five million gallons per well.28 There are claims that
the available water in the Marcellus Shale region is ideal for shale gas
development in the area mainly because the annual precipitations
ranges between 710 billion and 1,250 billion gallons of water.29
However, the New York State Department of Environmental
Conservation states in its “Water Impact Assessment” that the actual
water demand for gas operations will only be known after applications
are received, reviewed and approved or rejected by the appropriate
regulatory agencies.30 But for projection purposes, data from the
current applications approved for shale gas operations in horizontal
drilling have been studied.
The NYS DEC states that the Delaware River Basin(DRB)
Commission received applications requesting up to one million gallons
per day (MGD) to support development and extraction activities in the
Delaware Basin. The Susquehanna River Basin (SRB) Commission has
approved up to 8.86 MGD to 9.24 MGD for almost 20 different locations
in Pennsylvania. Typically, range of water usage approval for this basin
has been between 0.041 MGD to 3 MGD.
The DEC report considered this usage low comparing other
current daily usages approved in the SRBC as the largest identified use
is for water supply at approximately 325 million gallons per day (MGD),
followed by power generation at 150 MGD and recreation with 150
MGD. While the current estimate for water usage in gas operations
related to the Marcellus Shale is about 30 MGD or near 6% of the total
use for water supply.
The Susquehanna Basin comprises a south part of New York that
includes the areas of the Chenango, Otsego, Delaware, Tioga and
Broome Counties. The consumptive use for the upper Susquehanna
region, which is where Broome County is located, is estimated to be
41.4 MGD and projected to be 110.5 MGD.
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Sergio Mino & Taniya Thomas
Analysis of the Benefits, Impacts, and Trade-Offs with Developing the Marcellus Shale
Gas Potential in Broome County, NY
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Analysis of the Benefits, Impacts, and Trade-Offs with Developing the Marcellus Shale
Gas Potential in Broome County, NY
Data from EPA Region 9 Superfund Program; Arthur et. al 2008 and Karl 2003
To understand the tap water value, it is compared with the
value for sodium cyanide, which is known as a hazardous chemical.
The tap water concentration for sodium cyanide according to the same
EPA source is 1.5x103µ g/L. This value serves to predict that if the
corrosion inhibitor dimethylformamide is released in groundwater, it
will be a chemical of partial concern as its tap water concentration is
double the sodium cyanide concentration.
Toxicity analysis by itself is not enough to address the likelihood
of contaminated groundwater because of hydraulic fracturing, because
toxicity only accounts for the negative effects when humans are
directly exposed to the chemicals. To address the likelihood of
transport to the exposed humans we address a qualitative analysis of
the likelihood of the chemicals to migrate to groundwater by an
exposure analysis.
Exposure Analysis
The feasibility of the chemicals to migrate from the shale
formation to the groundwater is governed by their transport conditions
through the porous media.
The factor that influences transport is the dissolution of the chemical
in the aquifer. This dissolution may be dependant on the relative
affinity of the chemical to the solid phase. This affinity for an
organically rich formation can be measured with the organic carbon
partition coefficient (Koc), Table 5.
Table 5. Total Analysis for Release of Chemicals in Broome
County33
Amount per Total in
Koc
Additive Identity well Broome
(L/kg)
(Gallons) County (MG)
Acid Hydrochloric Acid - 5000 19.796
Breaker Ethylene Glycol 1 - -
Biocide Glutaraldehyde 1 1,000.00000 3.95920
Friction Reducer Bacterial Cellulose - 10,000.00 39.59200
Dimethylformamid
Corrosion Inhibitor e 1 5,000.00 19.79600
Total 5,032.14320
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Analysis of the Benefits, Impacts, and Trade-Offs with Developing the Marcellus Shale
Gas Potential in Broome County, NY
if their physical and chemical conditions allow it, otherwise they must
be disposed according to the regulations and standards for the
industry.
The new proposed regulation for horizontal wells is going to
require the operator detailed information about the disposal process of
flowback water, including inventories of the amounts managed,
storage tanks information, facilities for treatment or disposal near the
PADs and other information related to waste handling.
v. Impact on Land
i. State of land after drilling is completed
After the production well finishes its life cycle, it is expected that
the operator return the leased site to the owner in an acceptable state.
If the operator fails to treat drilling fluids and flowback water properly,
the site is likely to be polluted.
ii. Impact on property value
Based on the experience with the Barnett Shale, it can be
inferred that the impact on property value will change with time.37
When natural gas is being extracted it is expected that the prices of
property increases due to more demand for housing and offices, and
because of higher income and expectation on leases from the natural
gas companies. There is evidence that certain industrial activities may
cause environmental stigma and therefore a decrease in property
value relative to the properties where there was not fracturing
operations. The decrease on property value can be from 8 to 20
percent in total.38
vi. Greenhouse Gas Emissions Methane Release
A recent study suggests the GHG emissions of natural gas from
hydraulic fracturing may be 2.4 times higher that the carbon dioxide
released in the combustion of natural gas.39 In this process 13.7 grams
C of CO2 per million joules are released, compared to 18.6 grams for
gasoline and 24.0 grams for bituminous coal combustion.40
Methane leakage during natural gas extraction from the
Marcellus Shale, can substantially increase the GHG emissions.39 In the
preliminary estimates this would make natural gas less competitive in
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Analysis of the Benefits, Impacts, and Trade-Offs with Developing the Marcellus Shale
Gas Potential in Broome County, NY
References
1. NYSERDA: Patterns and Trends: New York State Energy Profiles: 1994 -2008, January
2010
2. "International Energy Statistics." U.S. Energy Information Administration - EIA –
Independent Statistics and Analysis. Web. 10 Nov. 2010.
<http://www.eia.gov/cfapps/ipdbproject/IEDIndex3.cfm?tid=3&pid=26&aid=2>.
3. "International Energy Statistics." U.S. Energy Information Administration - EIA -
Independent Statistics and Analysis. Web. 10 Nov. 2010.
<http://www.eia.gov/cfapps/ipdbproject/IEDIndex3.cfm?tid=3&pid=26&aid=2>.
4. "U.S. Natural Gas Consumption by End Use." U.S. Energy Information Administration -
EIA - Independent Statistics and Analysis. Web. 10 Nov. 2010.
<http://www.eia.gov/dnav/ng/ng_cons_sum_dcu_nus_a.htm>.
5. NYSERDA: Patterns and Trends: New York State Energy Profiles: 1994 -2008, January
2010
6. "Marcellus Shale Gas: New Research Results Surprise Geologists!" Geology.com - Earth
Science News, Maps, Dictionary, Articles, Jobs. Web. 12 Nov. 2010.
<http://geology.com/articles/marcellus-shale.shtml>.
7. Arthur, Daniel, Brian Bohm, and Mark Layne. "Hydraulic Fracturing Considerations for
Natural Gas Wells of the Marcellus Shale." Proceedings of the 2008 Ground Water
Protection Council Annual Forum, Cincinnati, Ohio . ALL Consulting. Print.
8. Presentation from Broome County Health Dept. Division of Environmental Health
Services.
9. Engelder, Terry, Gary G. Lash, and Redescal S. Uzcátegui. "Joint Sets That Enhance
Production from Middle and Upper Devonian Gas Shales of the Appalachian Basin." AAPG
Bulletin 93.7 (2009): 857-89. Print.1
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Sergio Mino & Taniya Thomas
Analysis of the Benefits, Impacts, and Trade-Offs with Developing the Marcellus Shale
Gas Potential in Broome County, NY
10. Couturier, Greg, and Terry Engelder. "Marcellus Shale Appalachian Play Poised for
'break Out' Year in '08." Natural Gas Week 24 Dec. 2007. Print.
11. Yost / DOE,METC, A. B., R. L. Mazza / Petroleum COnsulting Services, and G. B. Gerh /
Natural Gas Resources Corp. "CO2/Sand Fracturing in Devonian Shales." Proceedings:
1993 Eastern Regional Conference & Exhibition, Pittsburgh, Pennsylvania, November 2-4,
1993. Vol. I. [Richardson, TX]: Society, 1993. 353-62. Print. Ser. 931145
12. Moss / GRD External Minerals and Energy Coordinator, Kerry, Carol McCoy / GRD
Branch Chief, and Pat O’Dell / GRD Petroleum Engineer. Development of the Natural Gas
Resources in the Marcellus Shale New York, Pennsylvania, Virginia, West Virginia, Ohio,
Tennessee, and Maryland. Rep. Denver, CO: National Park Service U.S. Department of the
Interior, 2009. Print. 13. Sergio -Need to Cite
14. National Energy Technology Laboratory, Summer 2010 Oil and Gas Program
Newsletter
15. "Federal Regulations: Environmental Protection Agency." Web. 15 Nov. 2010.
<http://web.ead.anl.gov/dwm/regs/federal/epa/index.cfm>.
16. "Federal Regulations: Bureau of Land Management." Drilling Waste Management
Information System. Web. 20 Nov. 2010.
<http://web.ead.anl.gov/dwm/regs/federal/blm/index.cfm>.
17. Weinstein, Bernard L., and Terry L. Clower. "Potential Economic and Fiscal Impacts
from Natural Gas Production in Broome County, NY." (Sept. 2009).
18. National Energy Technology Laboratory, Summer 2009 Oil and Gas Program
Newsletter
19. "Making A Big Productions: Shale's Growing Share of US Natural Gas Resource Base."
NaturalGas.org. Web. 20 Nov. 2010.
<http://www.naturalgas.org/shale/growingshare.asp>.
20. "EIA Energy - Oil (petroleum)." U.S. Energy Information Administration - EIA -
Independent Statistics and Analysis. Web. 21 Nov. 2010.
<http://www.eia.doe.gov/kids/energy.cfm?page=oil_home-basics>.
21. "EIA's Energy in Brief: How Dependent Are We on Foreign Oil?" U.S. Energy
Information Administration - EIA - Independent Statistics and Analysis. Web. 19 Nov.
2010. <http://www.eia.doe.gov/energy_in_brief/foreign_oil_dependence.cfm>.
22. "Impacts of Electric Power Industry Restructuring on the Coal Industry." U.S. Energy
Information Administration - EIA - Independent Statistics and Analysis. Web. 19 Nov.
2010. <http://www.eia.doe.gov/cneaf/electricity/chg_str_fuel/html/chapter1.html>.
23. "U.S. Coal Supply and Demand." U.S. Energy Information Administration - EIA -
Independent Statistics and Analysis. Web. 20 Nov. 2010.
<http://www.eia.doe.gov/cneaf/coal/page/special/tbl3.html>.
24. "U.S. Coal Supply and Demand." U.S. Energy Information Administration - EIA -
Independent Statistics and Analysis. Web. 21 Nov. 2010.
<http://www.eia.doe.gov/cneaf/coal/page/special/feature.html>.
25. "Natural Gas Demand." U.S. Energy Information Administration - EIA - Independent
Statistics and Analysis. Web. 19 Nov. 2010. <http://www.eia.doe.gov/oiaf/aeo/gas.html>.
26. Campbell, Jon. "Broome County Legislature Rejects Inflection's $7.8M Gas Offer."
Press Connects [Binghamton] 18 Nov. 2010.
27. Considine, Timothy J. "The Economic Impact of the Marcellus Shale Implications for
New York, Pennsylvania, and West Virginia." Report to The American Petroleum Institute
(July 2010).
28. "Hydraulic Fracturing | Hydraulic Fracturing | US EPA." EPA Office of Water Home |
Water | US EPA. Web. 24 Nov.
2010.<http://water.epa.gov/type/groundwater/uic/class2/hydraulicfracturing/index.cfm>.
29. Arthur, Daniel, Brian Bohm, and Mark Layne. "Hydraulic Fracturing Considerations for
Natural Gas Wells of the Marcellus Shale." Proceedings of the 2008 Ground Water
Protection Council Annual Forum, Cincinnati, Ohio . ALL Consulting. Print.
30. United States of America. New York State Department of Environmental Conservation.
Division of Mineral Resources. Draft Supplemental Generic Environmental Impact
Statement on the Oil, Gas and Solution Mining Regulatory Program: Well Permit Issuance
for Horizontal Drilling and High-volume Hydraulic Fracturing to Develop the Marcellus
Shale and Other Low-permeability Gas Reservoirs, September 2009. Albany, NY: New York
State, Dept. of Environmental Conservation, Division of Mineral Resources, Bureau of Oil
and Gas Regulation, 2009.
31. Evaluation of Impacts to Underground Source of Drinking Water by Hydraulic
Fracturing of Coalbed Methane Reservoirs. Rep. no. EPA 816-R-04-003. Washington D.C.,
2004.
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Sergio Mino & Taniya Thomas
Analysis of the Benefits, Impacts, and Trade-Offs with Developing the Marcellus Shale
Gas Potential in Broome County, NY
32. Fink, Johannes Karl. "Chapter 17: Hydraulic Fracturing." Oil Field Chemicals.
Amsterdam: Gulf Professional Pub., 2003. And "Regional Screening Levels | Region 9:
Superfund | US EPA." US Environmental Protection Agency. Web. 15 Nov. 2010.
<http://www.epa.gov/region9/superfund/prg/>.
33. United States. E.P.A. Supplemental Guidance for Developing Soil Screening Levels for
Superfund Sites. Washington, D.C.: U.S. Environmental Protection Agency, 2002. Print.
and
Baes, C. F. "A Proposal for Estimation of Soil Leaching and Leaching Constants for Use in
Assessment Models." Journal of Environmental Quality January-March 12.1 (1983).
34. Smith, Langhorne B., and James Leone. "Integrated Characterization of Utica and
Marcellus Black Shale Gas Plays, New York State." Search and Discovery. 31 Aug. 2010.
Web. 15 Nov. 2010.
35. Smith, Langhorne B., and James Leone. "Integrated Characterization of Utica and
Marcellus Black Shale Gas Plays, New York State." Search and Discovery. 31 Aug. 2010.
Web. 15 Nov. 2010. Figure 7
<http://www.searchanddiscovery.net/documents/2010/50289smith/ndx_smith.pdf>.
36. United States. U.S. E.P.A. Office of Research and Development. Hydraulic Fracturing
Research Study. Washington, D.C.: U.S. Environmental Protection Agency, Office of
Research and Development, 2010. Print.
37. Baker, Sandra. "Barnett Shale Rig Report." Fort Worth Star Telegram. 19 Nov. 2010.
Web. 24 Nov. 2010. <http://www.star-telegram.com/2010/11/19/2646322/barnett-shale-
rig-report.html>.
38. Reichert, Alan K. "Impact of a Toxic Waste Superfund Site on Property Values."
Appraisal Journal 1 Oct. 1997. and Hite, Diane, Wern Chern, Fred Hitzhusen, and Alan
Randall. "Property-Value Impacts of an Environmental Disamenity: The Case of Landfills."
The Journal of Real Estate Finance and Economics 0895-5638 22.2 (2001).
39. Howarth, Robert W. "Preliminary Assessment of the Greenhouse Gas Emissions from
Natural Gas Obtained by Hydraulic Fracturing." Technology Review. Web. 15 Nov. 2010.
<http://www.technologyreview.com/blog/energy/files/39646/GHG.emissions.from.Marcellu
s.Shale.April12010%20draft.pdf>.
40."Voluntary Reporting of Greenhouse Gases Program Fuel Carbon Dioxide Emission
Coefficients." U.S. Energy Information Administration - EIA - Independent Statistics and
Analysis. Web. 16 Nov. 2010. <http://www.eia.doe.gov/oiaf/1605/coefficients.html>.
41. Anderson, Brooklynn J., and Gene L. Theodori. "LOCAL LEADERS’ PERCEPTIONS OF
ENERGY DEVELOPMENT IN THE BARNETT SHALE." Southern Rural Sociology 24.1 (2009):
113-29.
From the Patterns and Trends Study of NYSERDA 2008 the total energy
consumption in TBtu is 4,027 and the total for natural gas consumption
is 1,209.20 TBtu and for petroleum products is 1,504.60 TBtu.
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Sergio Mino & Taniya Thomas
Analysis of the Benefits, Impacts, and Trade-Offs with Developing the Marcellus Shale
Gas Potential in Broome County, NY
Appendix III
Source: Arthur, Daniel, Brian Bohm, and Mark Layne. "Hydraulic Fracturing
Considerations for Natural Gas Wells of the Marcellus Shale." Proceedings of
the 2008 Ground Water Protection Council Annual Forum, Cincinnati, Ohio .
ALL Consulting. Print.
(Equation
1)
Where
Pb is the fracture initialization pressure
3sH,min is the minimal horizontal stress
sH,max is the maximal horizontal stress = minimal horizontal stress +
tectonic stress.
T is the tensile strength of the rock
P is the pore pressure
Kd = Koc*foc (Equation
2)
Where:
Kd is the soil-water partition coefficient
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Sergio Mino & Taniya Thomas
Analysis of the Benefits, Impacts, and Trade-Offs with Developing the Marcellus Shale
Gas Potential in Broome County, NY
The main New York State regulations for Oil and Gas operations are the
fallowing stated in the 6 NYCRR parts from 550 to 559.
The main issues regulated regarding drilling activity are the fallowing:
Source: http://www.dec.ny.gov/regs/4466.html
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Analysis of the Benefits, Impacts, and Trade-Offs with Developing the Marcellus Shale
Gas Potential in Broome County, NY
Source: http://www.dec.ny.gov/regs/4465.html
Source: http://www.dec.ny.gov/regs/4464.html
Source: http://www.dec.ny.gov/regs/4463.html
Source: http://www.dec.ny.gov/regs/4462.html
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This chapter establishes practices for oil and gas wells strictly.
Specifying requirements for the operation of the wells, for
vacuum pumps, rules for safety assurance, requirements for
pollution disposal, rules for the lease of the well, and
requirements for pool and field names.
Source: http://www.dec.ny.gov/regs/4461.html
Source: http://www.dec.ny.gov/regs/4460.html
• 558 Transportation
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Analysis of the Benefits, Impacts, and Trade-Offs with Developing the Marcellus Shale
Gas Potential in Broome County, NY
*Only about 70% of total area can be used for reason including highly
populated towns, conservation, schools, etc.
Gas Production:
Minimum: 0.5 BCF per 80 acres
Maximum: 2.5 BCF per 80 acres
Equations:
Minimum = ((Total Area x 0.70) x 0.5 BCF)/80 Acres
Maximum = ((Total Area x 0.70) x 2.5 BCF)/80 Acres
Using the information above and data from Figure 1, CO2 Emissions for
Each Fuel Type was calculated.
Figure 3. CO2 emissions for NY based on sector and fuel type.
Sector Total CO2 CO2 Natural CO2 Coal CO2
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Sergio Mino & Taniya Thomas
Analysis of the Benefits, Impacts, and Trade-Offs with Developing the Marcellus Shale
Gas Potential in Broome County, NY
Figure 5. NY Fuel
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Sergio Mino & Taniya Thomas
Analysis of the Benefits, Impacts, and Trade-Offs with Developing the Marcellus Shale
Gas Potential in Broome County, NY
NPV Calculation:
Data and Assumptions:
Sales Price = $3.89/mcf
Cost per Well = $3.5 MM
Tax = 5%
Discount Rate = 10%
Acids
Breakers
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Analysis of the Benefits, Impacts, and Trade-Offs with Developing the Marcellus Shale
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Biocides.
Friction Reducers
Corrosion Inhibitors
With the corrosive agents that can attack steel, like acids, a corrosion
inhibitor is needed. Acetone is a common chemical used as corrosion
inhibitor. These chemicals are considered hazardous in their undiluted
form. The dilution concentration is of 1 gallon per 1,000 gallons. (EPA
816-R-04003.)
Proppants
the average used is a range between 10,000 and 20,000 gallons per
stage. A total from 11,000 to 25,000 pounds of proppant are placed in
the formation. (ALL Consulting 2008, and EPA 816-R-04003)
Amount of Chemicals Released in Broome County
39
The following is the opinion about this claiming from Terry Engelder,
professor of the Pennsylvania State University. (Taken as a forwarded
message from Lawrence Cathles, Cornell University to Sergio Mino)
Sergio,
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Sergio Mino & Taniya Thomas
Analysis of the Benefits, Impacts, and Trade-Offs with Developing the Marcellus Shale
Gas Potential in Broome County, NY
Here is the email and link from Engelder. I’ve not looked at it closely.
Hope it helps.
Larry
Question #1:
http://www.pressconnects.com/apps/pbcs.dll/article?
AID=/201003280000/VIEWPOINTS/3280320
1
Sergio Mino & Taniya Thomas
Analysis of the Benefits, Impacts, and Trade-Offs with Developing the Marcellus Shale
Gas Potential in Broome County, NY
Question #2:
Science knows very well that the carbon footprint of burning natural
gas is less than that for coal or petroleum. There is a very famous
paper in Science (the publication) that talks about the Stabilization
Wedges (see attached). Natural gas is a substitute for coal in electrical
generating plants. Furthermore, compressed gas can replace diesel
fuel for interstate truck traffic. Large fleets of city trucks and buses are
now run on compressed natural gas. Converting interstate truck traffic
to CNG would virtually eliminate the need to import middle eastern oil
(thereby eliminating the need for a large military presence in the
region). This would reduce our imbalance of trade and focus the
remaining cash for fuel back into the USA where more cash in
circulation will create jobs (This sounds like Presidents Reagan, Bush,
Clinton, Bush, and Obama and it is true).
Worried about how much gas is present? I attach the best estimate
for how much gas can be produced from the Marcellus. These are hard
figures with which few can argue. It may also surprise you to learn
that the combined total of all potentially recoverable gas in the USA
will allow decades of supply without having to rely on imported natural
gas.
As for the article that you attached by Mrs. Barth, it was not peered
reviewed. Mrs. Barth’s agenda may be revealed in what Mr. Barth
wrote in the blogger shouting match that followed my Inquirer
Commentary. Check it out.
http://www.philly.com/inquirer/opinion/20100428_Gas_drilling_yields_a
_gusher_of_hogwash.html
1
Sergio Mino & Taniya Thomas
Analysis of the Benefits, Impacts, and Trade-Offs with Developing the Marcellus Shale
Gas Potential in Broome County, NY
Terry
Terry Engelder
Professor of Geosciences
Department of Geosciences
334 A Deike Building
The Pennsylvania State University
University Park, PA 16802
Phone: 814-865-3620
Thank you for providing your email for questions.Can you please cite
your source for the following statements:“one New York academic
recently wrote that exploiting Marcellus Shale gas is comparable to
burning coal in terms of greenhouse-gas emissions. This is simply not
the case.” - To my knowledge there has not been published data on
the total carbon footprint of hydrofracking. If there is, can you point me
towards it? “It is a gift to the people of Pennsylvania and the greatest
opportunity they will ever have to move away from foreign oil and
toward a fuel with a smaller global-warming footprint. “ - What is the
basis of this statement? Natural gas is not a substitute for oil. It cannot
be used as a direct substitute and as far as I know, the amount of
natural gas in the Marcellus Shale will not be enough to migrate the US
from its dependency on foreign crude oil. Again, I don’t think science
has proven what the carbon footprint will be so I think it is premature
to say it will have a smaller global-warming footprint. Additionally,
there is data available to show that the economic advantage for areas
experiencing a “boom” is short lived and is actually less than that of a
similar region that diversifies its core businesses and grows its
economy in a slower steadier rate. Please refer to to the report cited
in this newspaper article.
http://www.pressconnects.com/article/20100401/NEWS01/4010400/Ne
1
Sergio Mino & Taniya Thomas
Analysis of the Benefits, Impacts, and Trade-Offs with Developing the Marcellus Shale
Gas Potential in Broome County, NY
w+report+shows+natural+gas+economic+impact+will+be+minimal
Thank you and I look forward to your reply. Sincerely,Deborah Cipolla-
Dennis
The total water available for gas drilling for the following years is 30
MGD.
Water Consumption per well: Five million gallons a day. This represents
the upper limit, and is taken as a conservative value. Source:
"Hydraulic Fracturing | Hydraulic Fracturing | US EPA." EPA Office of
Water Home | Water | US EPA. Web. 24 Nov. 2010.
Total available water from the Susquehanna River Basin (SRB): 882.5
MGD
Total available water from Delaware River Basin (DRB): 8,736 MGD
Total available water: (882.5 + 8736) = 9,618.5 MGD
Total water available for both basins: 30 MGD + 300 MGD = 330 MGD
2
Sergio Mino & Taniya Thomas
Analysis of the Benefits, Impacts, and Trade-Offs with Developing the Marcellus Shale
Gas Potential in Broome County, NY