IPAA advocates fact-based hydraulic fracturing study

Paula Dittrick
OGJ Senior Staff Writer

NEW ORLEANS, Nov. 6 -- The Independent Petroleum Association of America will work to ensure that an upcoming study on hydraulic fracturing is scientific, based on facts, and includes input from the oil and gas industry as well as state regulators.

Various speakers at IPAA’s annual meeting in New Orleans discussed the attention and concerns raised by some members of Congress and some environmental groups about fracing and its safety.

Water management issues have come into play because of suggestions by some industry critics that fracing chemicals might get into ground water. There has been no definitive evidence of that in various studies that have been done.

On Oct. 29, the US House of Representatives and US Senate approved a Department of Interior appropriations bill that includes a provision directing the Environmental Protection Agency to produce another study on hydraulic fracturing.

IPAA Chairman Bruce Vincent, president of Swift Energy Co., Houston, said no such study is necessary. Fracing is crucial to recovering gas from shale plays.

Vincent noted that state regulators have successfully monitored fracing operations for 60 years. He said ongoing congressional efforts to impose federal regulations could result in extensive, costly monitoring of chemicals throughout the life of a well.

“It’s the environmentalists wanting a way to further regulate our business,” Vincent said. “Antidevelopment movements based on misinformation and scare tactics cannot delay or deter the responsible development of American resources,” he said.

Vincent said other principal policy priorities for IPAA are resisting tax changes as proposed in US President Barack Obama’s 2010 budget. The Obama administration has proposed repealing numerous tax provisions, including percentage depletion and intangible drilling costs.

“There is still serious concern about the direction of energy policy in this country,” Vincent said, adding, “It’s clear to me that policy battles will remain front and center.”

Other areas of concern are increased oversight and regulation of financial markets along with gaining access to more oil and gas off the US, Vincent said.

Chemical disclosures
Lee O. Fuller, IPAA's vice-president of government relations, told OGJ on the sidelines of the IPAA meeting that he has never seen “an environmental issue with less substance behind it” as concerns about fracing chemicals contaminating ground water.

Well completions create a barrier around the wellbore to prevent the leeching of any chemicals, Fuller said, noting that industry has been doing this successfully for decades.

“There’s been no history of problems with hydraulic fracturing,” Fuller said. “It is a very orchestrated effort to try to diminish production.” He believes “people historically opposed to developing natural gas” are raising the concerns.

Some groups have called for oil and gas companies to disclose the chemicals that they use in fracturing. Most producers resist that, saying the chemical mixtures are proprietary information.

IPAA does not believe that companies should have to disclose the chemicals, Fuller said. If analysis were to show chemicals from a specific oil and gas operation getting into water, then IPAA would support getting the chemical information to regulators who could supply it to first responders, he said.

Industry comments
Separately from the IPAA meeting, Oklahoma City-based independent Chesapeake Energy Corp. issued an Oct. 28 news release saying that it supports efforts by the state of New York to require fracing vendors to register their products and disclose the chemicals used.

Chesapeake already has posted its fracing chemical mixture on the company web site, Chesapeake Chief Executive Officer Aubrey A. McClendon said.

“We fully support setting high environmental standards for the extraction of natural gas from the Marcellus shale, and we look forward to continuing that process with the state,” McClendon said.

On Oct. 23, Schlumberger Ltd. Chief Executive Officer Andrew Gould said he expects to see some new US drilling regulations, and he supports public discussion about disclosure of fracing ingredients.

“I’m pretty sure that there will be some form of new regulation in order to satisfy the authorities and the public’s desire to know that what is being done is safe,” Gould said during an Oct. 23 webcast on Schlumberger’s quarterly earnings.

Contact Paula Dittrick at paulad@ogjonline.com.

Related Articles

Rex purchases 207,000 net acres from Shell in deal that increases Appalachian leasehold

10/16/2014 Rex Energy Corp. has signed a $120 million deal to acquire 207,000 net acres prospective to the Marcellus, Upper Devonian Burkett, and Utica shales...

Southwestern Energy to acquire Marcellus, Utica assets for $5.375 billion

10/16/2014 Southwestern Energy Co., Houston, has agreed to acquire assets in the southern Marcellus shale and a portion of the eastern Utica shale in West Vir...

People

08/13/2014

American Energy Partners LP has hired Jeffrey L. Mobley to serve as senior vice-president, major acquisitions.

Chesapeake, RKI E&P agree on Powder River acreage exchange

07/29/2014 Chesapeake Energy Corp. and RKI Exploration & Production LLC (RKI), both of Oklahoma City, have agreed to exchange nonoperated interests in 440...

Chesapeake to spinoff oil field services unit, divest $4 billion in assets

05/16/2014 Chesapeake Energy Corp., Oklahoma City, has decided to proceed with spinning off its oil field services business, currently conducted through its w...

Chesapeake mulls spinoff, sale of oil field services division

02/24/2014 Chesapeake Energy Corp. reported it is considering a potential spin-off to Chesapeake shareholders or an outright sale of Chesapeake Oilfield Servi...

Chesapeake Appalachia settles federal water pollution charges

12/19/2013 A Chesapeake Energy Corp. subsidiary agreed to spend $6.5 million to restore 27 sites damaged by unauthorized discharges of fill material into stre...

Chesapeake Midstream names chief operating officer

12/16/2009 Chesapeake Midstream Partners LLC (CMP), the recently formed 50-50 partnership of Global Infrastructure Partners LP and Chesapeake Energy Corp., na...

ExxonMobil to boost unconventional focus by acquiring XTO

12/14/2009 ExxonMobil Corp. has agreed to buy XTO Energy Inc. in an all-stock deal valued at $41 billion that will be part of a strengthened focus by the ener...
White Papers

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...
Available Webcasts


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

When Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST



On Demand

Prevention, Detection and Mitigation of pipeline leaks in the modern world

Thu, Apr 30, 2015

Preventing, detecting and mitigating leaks or commodity releases from pipelines are a top priority for all pipeline companies. This presentation will look at various aspects related to preventing, detecting and mitigating pipeline commodity releases from a generic and conceptual point of view, while at the same time look at the variety of offerings available from Schneider Electric to meet some of the requirements associated with pipeline integrity management. 

register:WEBCAST


Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


US Midstream at a Crossroads

Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected