...ENGR 2595 | Shale Oil | A Controversial Energy Source | | Gabriel Lessard-Kragen, Daylon Hutton, Nikolai Sie | 12/4/2014 | | Table of Contents Table of Figures i Introduction 1 What is Hydraulic Fracturing? 1 Socio-Economic Impacts 3 Local Economic Impacts 3 U.S. National Economic Impacts 5 International Economic Impacts 6 Environmental Issues 8 Water Impacts 9 Greenhouse Gases 11 Liability 12 Conclusion 13 Bibliography 14 Table of Figures Figure 1: Marcellus Shale 10 Figure 2: GHG Eissions Associated with Oil Extraction 12 Figure 3: Deepwaater Horizon Impacts 12 Introduction The topic of this document is shale oil and gas, and the issues surrounding their extraction and usage. The terms oil and gas are used interchangeably in this article, however they technically are different substances. The issues and economics attached to the two substances are similar, and thus are discussed as a group. This document will begin with an analysis of what hydraulic fracturing (fracking) actually is, as a lot of controversy and misinformation has been released around it. Afterwards the economics of the shale boom will be analyzed, from both a local, national, and international perspective. Finally the environmental impact of shale gas will be discussed, as this is the major concern surrounding the technology. What is Hydraulic Fracturing? Fracking is the term most often used to describe the process of hydraulic fracturing. Unknown...
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...Hydrofracking in Marcellus shale: The Consequences of America’s Gas Rush Introduction Demand for fossil fuels in America has led to a flurry of unorthodox methods for the extraction of natural gas. Fracking or hydrofracking in the U.S.A has proven to be an efficient way of extracting natural gas from permeable rock. A new large scale hydrofracking operation has been proposed in the eastern states of Ohio, Pennsylvania and New York. This method of extraction is highly controversial, and is thought to have severe environmental and potential health consequences. This essay will provide further insight into the practice of Fracking in an area of shale known as Marcellus shale, and help to expose the environmental and human implications. What is Hydrofracking? Hydraulic Fracturing is an un-conventional process used in the extraction of gas in permeable rock (David 1973). A horizontal well is drilled into permeable rock such as shale and is injected with millions of gallons a high pressure fluid known as frac-fluid, this fluid is a mixture of sand, water, and an array of lubricating chemicals (Deutch 2011). The high pressure frac-fluid forces open fishers (cracks) within the rock which are kept open with sand granules; this allows pockets of gas to flow more easily from the shale (David 1973). Once the well is depleted all fluid that can be recycled is extracted, and the well is capped to stop any unused gas escaping (David 1973). The process of fracking is expensive and requires...
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...Natural Gas Markets in Asia, Europe and North America Analyzing the differences between the natural gas markets in these regions Introduction The advent of shale gas is reshaping the global energy market, challenging the existing investment assumptions of utilities and generating new opportunities. (Bain & Company, 2013) Unconventional gas has altered the North American energy landscape and now it’s shifting energy dynamics across the globe. (Bain & Company, 2013) In analyzing the differences between the natural gas markets in Asia, Europe and North America, each has a different market structure resulting from the degree of market maturity, the sources of supply, the dependence on imports and other geographical and political factors. (MIT, 2011) These regional markets set natural gas prices in different ways: 1. The U.S. has gas-on-gas competition and open access to pipeline transportation and manages risk through spot and derivatives markets. 2. The European market relies more heavily on long-term contracts with price terms based on a mix of competing fuels, e.g., fuel oil, and access to their pipeline is restricted; and 3. Asia uses crude oil as a benchmark for natural gas prices (News, n.d.) and favors long-term contracts; this structure has kept LNG prices in Europe and Asia high relative to other regions. (MIT, 2011) These market features, along with the availability of domestic natural gas resources and geopolitical interests, establish...
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...Radostina Rubenstein | 3/23/2014 | | Contents: Intro 3 Shale Gas in Bulgaria 3 Overview 4 Mounting concern as production rises 5 Water Supplies 5 Surface impacts 6 Land 6 Water 6 Noise 7 Frack Quakes 8 Social acceptance 8 FRACKING IN BULGARIA 8 IS THERE A BUBBLE IN THE SHALE GAS INDUSTRY? 10 Diminishing returns 11 The drilling treadmill 11 Unsustainable prices 11 A shale bubble 11 Regulate or Ban? Movement Divisions 12 Bibliography: 13 Intro In the beginning of 2009, South-East Europe suffered several external shocks: an extended period of cold weather, disruption in natural gas supplies from the Russian federation and financial crisis. The disruption of natural gas supply from the Russian Federation was particularly devastating for all countries with gas infrastructure. The region is supplied with natural gas from Russia by three different itineraries and three sub-regions are served by three different sets of gas infrastructure (see Appendix 1). Romania, Bulgaria, Greece and FYROM are supplied by a system of transit pipelines from Ukraine. Serbia and Bosnia and Herzegovina are supplied from Ukraine via Hungary, while Croatia is supplied via Austria and Slovenia. These three supply systems are not connected which in itself presents a problem. With nearly 98% gas import dependency, however, Bulgaria’s biggest issue is that all the its complete dependence on Russian gas and oil. While it is debatable, whether this issue has more...
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...McKinsey Global Institute July 2013 Game changers: Five opportunities for US growth and renewal The McKinsey Global Institute The McKinsey Global Institute (MGI), the business and economics research arm of McKinsey & Company, was established in 1990 to develop a deeper understanding of the evolving global economy. Our goal is to provide leaders in the commercial, public, and social sectors with the facts and insights on which to base management and policy decisions. MGI research combines the disciplines of economics and management, employing the analytical tools of economics with the insights of business leaders. Our “micro-to-macro” methodology examines microeconomic industry trends to better understand the broad macroeconomic forces affecting business strategy and public policy. MGI’s in-depth reports have covered more than 20 countries and 30 industries. Current research focuses on six themes: productivity and growth; natural resources; labor markets; the evolution of global financial markets; the economic impact of technology and innovation; and urbanization. Recent reports have assessed job creation, resource productivity, cities of the future, the economic impact of the Internet, and the future of manufacturing. MGI is led by two McKinsey & Company directors: Richard Dobbs and James Manyika. Michael Chui, Susan Lund, and Jaana Remes serve as MGI principals. Project teams are led by the MGI principals and a group of senior fellows, and include consultants from...
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...The future global economy is likely to consume ever more energy, especially with the rising energy demand of developing countries such as China and India. On top of this, energy demand is expected to grow by almost half over the next two decades. The charts below shows the trends of worldwide energy consumption and the energy consumption of three big giants, USA, China and India till 2040. At present, we rely on coal, oil and gas (the fossil fuels) for over 80% of our current energy needs – a situation which shows little sign of changing over the medium-term without drastic policy changes. The problems associated with an over reliance of non-renewable energy sources is the fear that our energy resources are starting to run out, with devastating consequences for the global economy and global quality of life. At the same time, the tremendous risk of climate change associated with the use of fossil fuels makes supplying this energy increasingly difficult. While the potential for a crisis if we run out of energy is very real, but there is still time before that occurs. In the past two decades proven gas reserves have increased by 70% and proven oil reserves by 40%. At expected rates of demand growth we have enough for thirty years supply. Moreover, better technology means that new oil and gas fields are being discovered all the time while enhanced recovery techniques are opening up a potentially huge array of unconventional sources, including tar sands, shale gas and ultra-deep...
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...methane gas and toxic chemicals and contaminate groundwater. “Hydraulic fracturing is used after the drilled hole is completed. Put simply, hydraulic fracturing is the use of fluid and material to create or restore small fractures in a formation in order to stimulate production from new and existing oil and gas wells. This creates paths that increase the rate at which fluids can be produced from the reservoir formations, in some cases by many hundreds of percent.” (Pennsylvania Department of Environmental Protection, 2010) This process allows production in older oil and natural gas fields. Hydraulic fracturing has been used in the United States since the 1940’s. “The U.S. has vast reserves of natural gas that are commercially viable as a result of advances in horizontal drilling and hydraulic fracturing technologies enabling greater access to gas in shale formations. Responsible development of America's shale gas resources offers important economic, energy security, and environmental benefits.” (United States Environmental Protection Agency, 2013) Fractures in Onshore shale and Tight Rock formations are oil fracking. It can be natural or man-made through rock. The fluid includes water, sand, ceramic and often chemicals. “High-pressure Fracking is done from a wellbore drilled into reservoir rock formations to increase the rate and ultimate recovery of Shale Oil and Light Tight Oil. Most times a Shale Oil formation only needs to be Fracked once, where as a Natural Gas formation...
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...What is Hydraulic Fracturing? Hydraulic fracturing is the process of drilling for natural gas and oil underneath the ground. Hydraulic fracturing is a procedure that can increase the flow of oil or gas from a well (what is Fracking, 2013). Hydraulic Fracturing Process It is done by pumping liquids down a well into subsurface rock units under pressures that are high enough to fracture the rock and release the gas. The goal is to create a network of interconnected fractures that will serve as pore spaces for the movement of oil and natural gas to the well bore (King, 2013). Hydraulic Fracturing in the United States, Europe and South America The first use of hydraulic fracturing to stimulate oil and natural gas wells in the United States was in the 1940s (King, 2013). This process used in nine out of 10 natural gas wells in the United States. In December 2012 the British government gave the approval for exploratory hydraulic fracturing to extract natural gas from shale-rock deposits (Reed, 2012). In 2011, a horizontal well with multi-stage hydraulic fracturing was completed in the Neuquén Basin of Argentina. It was the first horizontal gas shale well and the deepest shale gas well in South America (Halliburton, 2013). Economic Impact/Concern of Hydraulic Fracturing According to the Global Fund Exchange, there are a number of environmental concerns related to hydraulic fracturing. Hydraulic fracturing fluids...
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...Impact of Shale Gas Production on the Market Fundamentals and Energy Security of Certain Countries ICCG Think Tank Map: a worldwide observatory on climate think tanks IMPACT OF SHALE GAS PRODUCTION ON THE MARKET FUNDAMENTALS AND ENERGY SECURITY OF CERTAIN COUNTRIES Ekaterina Zelenovskaya, ICCG 1 Impact of Shale Gas Production on the Market Fundamentals and Energy Security of Certain Countries Impact of Shale Gas Production on the Market Fundamentals and Energy Security of Certain Countries Ekaterina Zelenovskaya, ICCG Abstract The world’s unconventional gas base such as tight gas, coalbed methane (CBM) and shale gas are estimated to be as abundant as conventional gas resources. The recent start of shale gas production in the North America has significantly influenced major regional gas markets around the world. This article intends to examine the impact of shale gas production to the situation with the energy markets and energy security of particular countries, such as United States and countries of Continental Europe. 2 Overview of Shale Gas Production Activities and their Impact on Regional Energy Security Shale Gas and Energy Security Energy production and use have various environmental implications since energy represents about 1 65% of global anthropogenic greenhouse-gas emissions. The general belief/opinion is that fossil fuels will remain the dominant source of primary energy in the following decades. However, natural...
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...PROSPECTS OF SHALE GAS DEVELOPMENT IN INDIA: A term paper by Tejal Johri (MPE1296) and Shruti Sharma (MPE1293) for Semester 1 Course: Environment and Development Department of Policy Studies, The Energy and Resource Institute (New Delhi) Submitted on 9th December 2012 Table of Contents Executive Summary 1 Literature Review 4 Scope 6 Conclusion 10 Works Cited 11 Executive Summary The gradual shift of the US gas sector- from one of deficit to one of surplus has gathered appreciative appraisals from the rest of the world and initiated talks about the prospect of harnessing shale gas in other countries, as US reached the lowest CO2 emission level in the last 20 years due to shift to natural gas. It has been referred to as “the biggest energy innovation of the decade”, in light of the growing need for suitable alternatives to conventional oil and gas with increasing pressure on energy over time. 90% of global shale gas is currently produced by the US. India meets two-thirds of its petroleum requirements by importing of fuels that include coal, and this figure is expected to rise in the future in spite of India being a coal-rich country. Even with introduction of more efficient technologies and cases of higher CO2 emission reduction, our country’s import dependence on petrol, oil and gas will significantly rise in the future, raising the pressure on the resources. This concern for energy security calls for further research in technological solutions for greater...
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...to fracking operations, in hopes of achieving a 95% reduction in VOC emissions from fracked gas wells. These regulations neither require individual permits nor impose a technology-based emissions standard. Instead, they impose operational performance standards—specified procedures designed to minimize emissions, including standards governing well completion"' following fracking operations. For example, the rules require "green" well completion, a series of measures that separate salable natural gas from liquids and provide combustion of gas that would otherwise be vented. The rules also specify leak control...
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...IMPACT OF THE DISCOVERY AND EXLORATIONOF UNCONVENTIONAL OIL ON CONVENTIONAL OIL OPEC STATES | BYNAME:STUDENT ID:MODULE: | | | Contents Contents 1 Introduction 2 OPEC (Organization of the Petroleum Exporting Countries) 2 UNCONVENTIONAL OIL 3 SOURCES OF UNCONVENTIONAL OIL 3 CONVENTIONAL OIL 4 PESTLE ANALYSIS 4 PESTLE ANALYSIS ON NIGERIA 4 PESTLE ANALAYSIS ON U.S 6 Conclusion 9 References 10 Bibliography 10 Introduction The producers of oil which are outside the OPEC (Organization of Petroleum Exporting Countries) are been recorded to be producing almost 60 percent of the oil used in the world with constant increase in the hurdles of production (Khadduri, n.d.). Some researchers have indicated that the Non-OPEC states is as a result of having less producing wells, high costs of new projects, older wells and in most cases the increase in the home demand of oil which may cut the oil for exportation (Nakhle, 2013). Increases in the prices resulted in the difficulty of oil project and making it lucrative, resulting in the increase of the production of unconventional oil. Though at a time, there’s declination in the Non-OPEC oil production as the investing in new production of oil becomes tougher as a result of tightening, volatility of oil price, resource nationalism and credit markets (Brendow, K;, 2003). Now the unconventional oil production by Non-OPEC states is coming up as originally projected as few of the producers are been expected to offset...
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...Independence How Government Intervention Impacts Economic Growth Howard Riley BUS 528 Energy Independence. When Rudy Giuliani campaigned for the Republican Nomination for the Presidency of the United States of America he touted the ability to achieve energy independence. Unfortunately for the former mayor of New York City this was received by the general public as nothing more than a pipe dream, trying to stir up a sense of patriotism to get voters to the polls. As it turns out, Rudy Giuliani was just able to see a little further down the line than everyone else. Energy Independence has transformed from a buzzword used by politicians and lobbyists to an actual plan to progress the United States presence in the global energy market. This has been made possible by capturing trapped hydrocarbons buried deep below the surface of the United States. Several thousand feet below the earth’s surface lies tightly packed rock formations, known as shale. The shale formation is very dense and traps the natural resources that lie within it very tightly making it previously difficult and costly to recover. The shale that lies below Pennsylvania is known as the Marcellus Shale. The Marcellus Shale is an organic-rich black shale that was deposited in an oxygen-deficient marine environment during the Middle Devonian Time (approximately 390 million years ago). The Marcellus is not just any shale formation either; it is the largest producing gas basin in the United States and accounts for...
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...CASE STUDY: FRACTURING THE ENERGY MARKET 1. Which industries gain and which industries lose from the availability of cheap natural gas produced from shale deposits? The industries that gain cheap natural gas produced from shale deposits are United States it is known for the largest deposit of shale gas. It is estimated to be nearly 500 trillion cubic feet of gas which is more than enough for America’s citizen to receive energy for 50 year or further. U.S. is the world’s largest economy that have a good prime market, political stability, military strength, foreign investment, international trade and many more. Plus it all started in 1932 when Joseph Schumpeter an American develop the innovation concept of fracking. France, Bulgaria and Poland have the largest shale reserves in European. France was banned fracking in 2001 due to environmental awareness and Bulgarian too banned in 2012 for the same reasons. Poland also has been banned from using fracking because they are protecting their quality water supplies and currently being managed by coal for power energy. Other than that, China also have a large shale gas reserve at about 1,275 trillion cubic feet. It have not yet been develop so China lose the availability of cheap natural gas. 2. Which countries gain and which countries lose from the availability of cheap natural gas? Based on the case study Germany has gradually shutter all its nuclear power plants and increase reliance on solar and wind energy because...
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...Introduction: Coal seam and shale gases are two commonly found forms of unconventional gas in Australia. Gas is a fossil fuel and is considered cleaner than coal as it produces up to 70% less greenhouse emissions when burned (Gardner, 2015). Coal seam and shale gases are also cheaper than other renewable energy sources, such as wind and solar. Coal seam and shale reserves are widely found across Australia, particularly in Eastern Australia. Fracking, or more commonly known as Hydraulic Fracturing, is the technique used to extract coal seam and shale gases from rock as it improves the flow of gases that are difficult to access (Pearson, 2015). With the ability to use the fracking method to extract coal seam and shale gases, the mining industry considers this a viable and practical mining technique. However, there are debates on the social and environmental impacts of this mining practice. What is Fracking: Fracking is the process by which heavy machinery drills down into the hard rock layer below the earth’s surface. Fluid is then injected into the ground through a pipeline, while methane gas and chemicals are used to hold open the cracks in the rock layer (Dong, 2014). High pressure water mixture, containing sand and chemicals, is then directed at the rock, releasing the gas inside. It is a procedure that has been available for over 60 years (globally), as an alternative to the traditional unconventional gas extraction methods, but was not considered a cost effective method...
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