1. Hydraulic Shale Fracturing Kyle Koliba Robert Stroud http://scm-l3.technorati.com/11/10/25/54757/Fracking-diagram-jpg-800x1000-q100.jpg?t=20111025110408

2. Contents Overview Impact on Energy & Economy Health & Safety Concerns Future of Industry http://www.marketoracle.co.uk/images/2010/Apr/natural-gas-shale-1.jpg

3. Overview – “Fracking” Fluid is pumped underground at high pressure after an oil well is drilled The high pressure fractures porous shale rock, liberating the natural gas http://geohistory.valdosta.edu/basics/images_basics/rocks/basic_rocks/shale/shaleTS.gif Cross Section of Porous Shale

4. Overview – History First used in 1947 to stimulate wells Initially uneconomic because of vertical drilling methods Addition of “proppants” in 1952 increased natural gas flow by physically keeping fractures open. http://en.wikipedia.org/wiki/Hydraulic_fracturing http://i.ytimg.com/vi/fGj4ALfHaXE/0.jpg

5. Overview – Drilling Drilling Mud is used to regulate well pressure, drill bit temperature, and lift cuttings to surface. Cement casing intervals. http://www.seadrill.com/tcp/stream_file.asp?iEntityId=879 P T

6. Overview – Modern Techniques Horizontal Drilling (1998) Explosive Charges Parallel Well lines http://blog.aapg.org/learn/wp-content/uploads/2010/08/LaFollettePic1.jpg

7. Impact on Energy & Economy http://i.imgur.com/0rimQ.png

8. Impact on Energy & Economy Shale fracturing has lead to an increase in natural gas use for electricity production in lieu of coal. Methane burns cleaner than coal Price of methane is comparable to price of coal (~$3.00/MMBtu) http://sweetcrudereports.com/wp-content/uploads/2012/05/Gas-fired-power-plant.jpg

9. Impact on Energy & Economy - Downstream Surplus of ethane from recent shale fracturing boom. This ethane is starting to replace naphtha as the primary precursor for ethylene production. http://chembites.files.wordpress.com/2011/06/1.jpeg

10. Heath & Safety Concerns Drinking Water Flow back water/Wastewater Fracking chemicals used The amount of water used

11. Heath & Safety Concerns - Contaminated Water There have been as many as 100 reported cases of contaminated drinking water where drilling has occurred Many of those claiming contaminated water wells blame the flow-back water waste or the drilling process itself

12. Heath & Safety Concerns - Water Consumption 2,859 GRADUATE Average of 5.5 million gallons per well Can be an issue in drought prone areas Ex. Eagle-ford Shale in southern Texas

13. Heath & Safety Concerns - Wastewater 60% to 80% of water used (80% of 5.5 million gallons) Contaminated waste No clear evidence whether wastewater is the cause of the contaminated drinking water

14. Heath & Safety Concerns - Fracking Fluid Chemicals

15. Industry Response to Concerns Insulated jacket installed around pipe to a depth of 800 feet. This layer is a precautionary device to isolate any leaks in the pipe from reaching any public water sources. 7 layers of protection in the well to protect the underground water sources

16. Industry Response to Concerns The fracturing occurs at 6,200 feet below sea level, and Fresh water is approximately 800 feet below sea level 5400 foot difference in position. Industry claims at this depth, cracks of gas will not seep into the fresh water chambers

17. Industry Response to Concerns Swellable organosilica media –99% extraction from hydrocarbons and BTEX (Mineral Oil) –50% dissolved non-ionic surfactants

18. Congressional Response to Concerns SWDA (Safe Water Drinking Act) is currently the primary law protecting the drinking water In 2004 the EPA (Environment Protection Agency) conducted a study on fracking environment impacts, and claimed that it is perfectly safe SWDA makes EPA administer the chemicals in the fracking fluid FRAC Act 2009 Public disclosure of chemicals used EPA study currently underway http://www.propane.pro/wp-content/uploads/2011/11/wyoming_fracking.jpg

19. Heath & Safety Concerns – On-site Safety BOP (blow out preventer) During implementation there are usually around 600 safety meetings –Shift Change –Hazard Change About 180 new safety procedures JSA (Job Safety Analysis) examine the risk analysis of the well during drilling –A binder is created every day stating all the risks, and the appropriate ways to handle them

20. Future of Industry Methane is a good “bridge fuel” By 2035, shale gas is expected to contribute towards ~45% of the USA’s electricity Extends time for petroleum dependent countries to seek out alternative energy sources http://www.thecommentator.com/uploads/article/crop_inner/4fcf86bec823119189d906 7984f4b0d18f977c61.jpg

21. Future of Industry – Price of Natural Gas http://www.eia.gov/todayinenergy/detail.cfm?id=7710

22. Future of the Industry – “Greenness” Studies (many from A&M) are being conducted to remove acids and alcohols from the water used. More recycle of fracking fluid, –Reduced amount of water needed –Net decrease in amount of water contamination Additional EPA study still ongoing to determine the actual environmental hazards of the fracking fluid. http://stateimpact.npr.org/pennsylvania/files/2011/09/bradford-co-076-620x465.jpg

23. Future of Industry - Expansion Large reserves internationally New shale tracts are being discovered rapidly The shale fracturing industry is expected to grow rapidly over the next century. http://www.roperld.com/science/minerals/ShaleGasWorld.jpg

24. References 1.Sakmar, S.L. "Shale Gas Developments in North America: An Overview of the Regulatory and Environmental Challenges Facing the Industry." SPE International. (2011): 1-14. Web. 26 Sep. 2012.. 2.Demong, Karl, Ron Hands, and Brad Affleck. "Advancements in Efficiency in Horn River Shale Stimulation." Society of Petroleum Engineers. (2011): n. page. Web. 26 Sep. 2012. 3.United States. U.S. Energy Information Administration.Natural Gas Futures. Washington, D.C.:, 2012. Web.

25. THANK YOU