hydraulic fracturing

Post image for New York State Geologist Rebuts Fracking Alarmism

In an interview last week with the Albany Times Union, New York’s state geologist, Dr. Taury Smith, a self-described liberal Democrat, called the state’s natural gas deposits “a huge gift.” Over the last decade, the natural gas industry has been revolutionized by the rapid development of a drilling process known as hydraulic fracturing. In that time, economically recoverable reserves in the U.S. roughly doubled. New York could be among the biggest beneficiaries, as it sits upon huge deposits of gas, known as Marcellus Shale, that are now recoverable. Environmentalists, however, oppose hydraulic fracturing because they oppose all fossil fuels, and they have waged a misinformation campaign against the practice. They allege, without evidence, that it threatens to contaminate water supplies. On the basis of these unsubstantiated claims, environmentalists frightened New York lawmakers into enacting a moratorium on hydraulic fracturing. Dr. Smith dismisses the environmentalists’ allegations as being “exaggerated,” and “the worst spin.”

Post image for Primer: President Obama’s War on Domestic Energy Production

Coal

Clean Water Act: The EPA has invented a “pollutant”— salinity—in order to stop surface coal mining in Appalachia.  It claims that this “pollutant” harms an order of short-lived insect, the Mayfly, which has not been proposed for listing as an endangered species.  The EPA has set a numeric water quality standard for salinity which effectively bars new surface coal mining permits.

Surface Mining Control and Reclamation Act: Despite the fact that the 1977 SMCRA explicitly authorizes “valley fills” (a necessary byproduct of surface coal mining in the steep terrain of Appalachia), the Department of the Interior is working on a re-interpretation of the so-called “100 feet buffer rule,” a regulation derivative of SMCRA, which would effectively outlaw valley fills, and, as a result, Appalachian surface coal mining.

Oil and gas

Red Tape: The de jure moratorium on deepwater drilling permits in the Western Gulf ended on 22 October 2011, but the de facto moratorium remains.  Two weeks ago, a federal judge in eastern Louisiana (the same one who overturned the first moratorium, and who then found the Department of the Interior in contempt for issuing an identical, second moratorium), ordered the Interior Department to act on 5 pending permits within 30 days.  Interior is also slow-walking shallow water permits.

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The New York State Assembly this week voted 93 – 43 to temporarily ban a natural gas drilling technique known as hydraulic fracturing. The moratorium lasts until May, 2011, but state regulators weren’t expected to start issuing drilling permits until summer, so the legislation is largely symbolic. New York State is home to huge natural gas deposits that only recently become economically recoverable, thanks to the emergence of hydraulic fracturing technology, which is also known as “fracking.” Environmentalists oppose the practice on the grounds that it could affect groundwater supplies, although there is no credible evidence to support these claims.

There has been a technological revolution in the natural gas industry over the last decade. In that time, a drilling process known as hydraulic fracturing, or “fracking,” has become economically viable, thereby allowing for the exploitation of huge natural gas reserves that had been too expensive to recover. As a result, America’s natural gas supply has roughly doubled.

In his post-election address last Wednesday, President Barack Obama indicated support for the fracking revolution. His administration’s record, however, is decidedly mixed on the issue.

On the one hand, the State Department is a big proponent of the technology, which it sees as a long term deterrent for Russia. As I’ve noted elsewhere, environmentalist policies in some European countries-but especially Germany-have rendered them increasingly reliant on Russian natural gas, even as Russia has proven willing to use its energy resources as a geopolitical bargaining chip. By exporting the fracking revolution to continental Europe, the State Department hopes to weaken Russia’s influence.

Moreover, Obama’s EPA has kept away from regulating fracking, although it easily could. Indeed, with the Clean Water Act precedent set by the its assault on mountain top removal mining, the EPA could shut down whatever industry it wants to in all of Appalachia, which is home to the largest and most promising natural gas resources made available by fracking-the Marcelus Shale in Pennsylvania and New York.

On the other hand, different agencies within the Obama administration are cracking down on fracking. The Bureau for Land Management (within the Department of the Interior), for example, refuses to grant leases to drill natural gas along the Rocky Mountains. Under a new Interior Department instruction memo for implementing the 1987 Federal Onshore Oil and Gas Leasing Act, the BLM can (and is) withholding scores of millions of dollars of leases, pending completion of National Environmental Protection Act litigation. Contemporaneously, the Council of Environmental Quality is making NEPA challenges even easier.

So what to make of these conflicting signals? At first I thought that Obama saw himself as a visionary problem solver, and that his vision was to address supposed global warming by embracing gas at the expense of coal. Now, I’m not so sure. It looks like he’s being jerked around by people who know better how the executive branch works.