Download
1 / 28
320 likes | 576 Views
Unconventional Natural Gas. Hayley Dutka Colleen O’Callaghan Cord Pennell. REVIEW. Unconventional natural gas is gas that is coaxed from rock (shale, tight sandstone) or sources >15,000' feet below the earth's surface.
E N D
Unconventional Natural Gas Hayley Dutka Colleen O’Callaghan Cord Pennell
REVIEW • Unconventional natural gas is gas that is coaxed from rock (shale, tight sandstone) or sources >15,000' feet below the earth's surface. • Our local form of natural gas is Marcellus shale, which is providing a significant amount of natural gas that is being shipped to various parts of the country to power electrical plants, heat homes, or be used by various industries.
REVIEW • It is a cleaner domestic alternative to other fuels like coal and oil. • It is a fossil fuel, and does create some greenhouse gas emissions.
More about Marcellus Shale… • Underlies an area of 95,000 square miles from southern New York across Pennsylvania, and into western Maryland, West Virginia and eastern Ohio. • It is wedge-shaped as it is thicker in the east and thins to the west. • The thicker sections are composed of sandstone, siltstone, and shale while the thinner sections consist of finer grained organic rich black shale interblended with organic lean gray shale.
Economic Matters • factors that affect shale gas production: • day-to-day production costs • the costs of leasing land • the productivity of the wells drilled • and the mix of natural gas produced
Economic Matters • Expected future revenues depend on how much a typical well is likely to produce over its lifetime and future prices. • For example, wells that produce crude oil as well tend to be more profitable than wells producing just natural gas
Economics of Different Types • Recent studies have estimated the total economic impacts of the development and exploration in the Haynesville, Barnett, Fayetteville and Marcellus shales. • Loren C. Scott and Associates estimated that the Haynesville Shale extraction activities in Louisiana generated approximately $10.6 billion in new business sales in 2009.
Job Market • Barnett Shale in the Fort Worth, Texas area in 2008 generated 111,131 permanent jobs. • There have also been employment due to Marcellus Shale development in Pennsylvania and West Virginia. • Considine concluded that this development created over 57,000 jobs in Pennsylvania and West Virginia in 2009.
Job Market • Considine also estimated the economic impact of Marcellus Shale development in New York, Pennsylvania, and West Virginia in 2020. • His analysis shows a total employment impact in 2020 at between 101,000 and 283,000 jobs.
International Matters • U.S. oil and gas production is on the rise due to the remarkable surge in unconventional oil and gas development. • By the end of 2013, the U.S. is likely to become the world’s top producer of crude oil and natural gas. • This means that the U.S. is producing more hydrocarbons than Russia and Saudi Arabia.
International Matters • In 2010, unconventional gas production reached around 15% of global gas production. • Most of this comes from North America. • The output of shale gas increased by a factor of 11 over the last decade, just under one-third of total unconventional gas production in 2010.
International Matters • Soaring unconventional gas production led to a drop in import of Liquid Natural Gas (LNG) requirements and revised expectations in the United States has had a significant impact on global gas demand. • In 2008, it was widely viewed that the import of LNG in the U.S. was likely to increase in the coming decades.
International Matters • This led to what is called a “gas glut” where there was more gas on the markets than was needed and gas spot prices in the U.S. and in Europe consequently dropped. • Since 2010, global demand has recovered, but LNG imports have remained low in the U.S. due to growth in cheap domestic gas production. • Because of this, the U.S. is no longer importing from the LNG market, but considering exporting LNG from places like Texas.
International Matters • Although many countries are years behind the U.S., some have made great efforts in exploring their own unconventional gas sources. • Australia has good Coal Bed Methane (CBM) potential, but is most likely to success in projects focusing on LNG from CBM. • China, India, and Indonesia have produced small amounts of unconventional gas and are looking at ways to increase their respective volumes. • Countries like Argentina, Algeria, and Mexico may also have large shale gas potential.
UNG and the Environment “The Department of Environmental Protection (DEP), Office of Oil and Gas Management regulates the safe exploration, development and recovery of Marcellus Shale natural gas reservoirs in a manner that will protect the commonwealth’s natural resources and the environment.” Commonwealth of Pennsylvania Department of Environmental Protection www.depweb.state.pa.us
Possible Pollution… • The extraction and use of shale gas can affect the environment through: • the leaking of extraction chemicals and waste into water supplies • the leaking of greenhouse gases during extraction • the pollution caused by the improper processing of natural gas
Data • Several studies show a wide range of leakage rates: • from less than 1% of total production to nearly 8%. • Using data from the EPA’s most recent Greenhouse Gas Inventory yields a methane leakage rate of about 1.4% • down from 2.3% from the EPA’s previous Inventory.
Interesting Alternative • Besides using water and chemicals however, it is also possible to frack shale gas with only liquified propane gas. This reduces the environmental degradation considerably. The method was invented by GasFrac, of Alberta, Canada.
Habitat Fragmentation… • Where coal exploration requires altering landscapes far beyond the area where the coal is, aboveground natural gas equipment takes up just one percent of the total surface land area from where gas will be extracted.
In the Community… • http://www.alternet.org/fracking/us-sues-exxon-fracker-pennsylvania-over-polluted-drinking-water
Videos • https://www.youtube.com/watch?feature=player_embedded&v=dZe1AeH0Qz8 • https://www.youtube.com/watch?v=nDjCsAlgSKc&feature=player_embedded
Weighing the Options… PROS CONS • Abundant fracking gas stabilizes energy prices • Availability of gas improves energy security • Gas, when replacing coal, improves environmental performance • Wealth creation and growth due to selling drilling rights • Industry growth through access to convenient and cost-efficient fuel • Stimulates jobs & economy • Fracking gas gives more options to balance a variable, renewable-based electricity system. • Creates minor earthquakes (2 on the Richter scale) • Possible future earthquakes with structural damage to buildings • Methane is a potent greenhouse gas, contributing the global warming • Low-cost gas stops efforts on energy efficiency • Fracking uses vast amounts of water and acids • Risk of contaminating water supplies • Water needs to be cleaned
Works Cited • “County oil and gas leasing just goes on & on,” The Athens (OH) News, December 15, 2011. • http://codes.ohio.gov/orc/5749. • World Energy Council, “Survey of Energy Resources: Focus on Shale Gas,” 2010, page 14. • http://www.worldenergy.org/documents/shalegasreport.pdf • Chesapeake Energy, 2010 Annual Report, page 4. http://phx.corporate- ir.net/External.File?item=UGFyZW50SUQ9OTEzODB8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1 • P. Kennedy, A Guide to Econometrics, 6th Ed., (Malden, MA: Blackwell Publishing 2009), pp. 173-76. • U.S. Energy Information Administration, Natural Gas Annual, 2011. • http://www.iea.org/aboutus/faqs/gas/ • http://www.theguardian.com/environment/2013/oct/11/fracking-us-climate-credibility-shale-gas
