1. INTRODUCTION
The world is increasingly taking interest in the potential for a shale gas revolution. Australia is no exception to this trend. The key question for Federal, State and Local Government is, assuming a shale gas revolution is seen as desirable, what policy measures maybe taken in order to achieve this end and what should any debate over shale gas policy be focusing upon? This brief paper sets the context of the shale gas revolution. It then outlines the characteristics present in the USA that generated their shale gas revolution. In the context of Australia, there are a great many barriers to reproducing these characteristics. The paper considers what policy options are available to reduce such barriers and lead to an Australian shale gas revolution.
2. THE “SHALE GAS REVOLUTION” IN THE USA
a. A BRIEF HISTORY
The shale gas revolution in the USA is based upon the application of two main technologies – horizontal drilling and hydraulic fracturing (frack ing). Neither is new technology. Horizontal drilling was developed in the 1930s and the first well was fracced in the USA in 1947. The revolution has been reflected in the dramatic increase in the production of shale gas. In 2000 shale accounted for less than 1 percent of US domestic gas production. In 2007 it was 8 percent and only four years later, in 2011, it was 30 percent. However, a key point is that this American “revolution” in reality happened over a long period of time – well over 20 years in the making, although it is only in the last five years or so that the share of shale gas in domestic production has increased significantly. Furthermore, this growing role of shale gas is expected to continue. The EIA suggests shale gas will supply 42 percent o...
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...ns manufacturer invested on coal seam gas in the Southern Cooper basin with Strike energy with a long term gas supply contract of 0.15 tcf over 20 years . Such developments are really helpful to ensure the long term gas supply for the major manufacturing industries particularly due to the uncertainty of gas supply with increasing LNG commitments. In USA, Shale gas has provided the much needed recovery for the manufacturing industry with a major resource boost they required in order to make their products cheaper and competitive in the overseas markets. This will not be straight forward in terms of the Australian shale. However, long term perspective should be to establish shale as a prominent energy source at a competitive price level to cater the baseload demand. Shale gas developments would definitely add more security to the baseload energy generation potential.
In the video “Fracking Hell: The Untold Story” by Link TV explains how natural gas has been a huge problem not only for the earth in general but for everyone and everything living in it. The video explains how North East of Pennsylvania is having difficulties to conserve a healthy environment and people. North East of Pennsylvania is the main sources to extract gas and send it throughout the United States for gasoline and so on. However, this action is wonderful for the cost of gas, but has a huge impact on the environment and the people living in Pennsylvania. A lot of people in this state are worried having health issues because everything is not usable is being thrown out to the rivers where they get their fresh water.
On January 10th 1901 the discovery of oil at Spindletop would lead to the greatest economy boom the world has ever encountered. The amount of oil that would be discovered across Texas would be more than enough to power America through the next several decades. The effects of having oil would completely change Texas culture, lifestyle, and business tremendously. In the book of Oil In Texas, will prove that America would change completely from agriculture nation to an industrial nation after the discovery of oil in Texas.
The documentary ‘Gasland” is a telling tale of the terrible consequences of natural gas mining in the US. The filmmaker, Josh Fox, travels around the country visiting different homes that are in very close proximity of natural gas drilling sites after receiving a $100,000 offer from a natural gas company to use his land as a drilling site . The film focuses on how the drilling sites not only leave ugly scars on the land, but also the horrendous health problems people get from drinking the contaminated groundwater.
In today's global economy, energy is one of the most crucial and sought after commodities. Who supplies it and how much they supply determines how much influence they have over other countries as well as the global economy. This is why hydraulic fracturing is currently such an important and controversial topic in the United States. Hydraulic fracturing, more commonly known as "fracking" or hydrofracturing, is the process of using pressurized liquids to fracture rocks and release hydrocarbons such as shale gas, which burns more efficiently than coal. This booming process of energy production provides a much needed economic boost, creating jobs and providing gas energy for Americans.
The United States has an immense amount of proven natural gas reserves that could become a major source for the nation's energy future (1). The mining of the natural gas resources have become feasible and cheaper due to the advancement of hydraulic fracturing technologies which have increased the amount the extraction and enabled “greater access to gas in shale formations” (2). Hydraulic fracturing, or fracking of shale formations has positive benefits that includes economic growth and the natural gas extracted is cleaner than coal and oil, however it has caused serious environmental problems and possibly could be the cause of recent seismic activity in areas where fracking operations exist (3).
It is a known fact Pennsylvania is greatly impacted by the Marcellus Shale. The Marcellus Shale is a layer of black shale located under the Appalachian basin from Prehistoric times. Natural gas and oil are being extracted from this layer for their increasing economic value, with natural gas having a worth of $10 for every thousand cubic feet of it. Furthermore, improved technology such as “hydraulic fracturing” and “horizontal wells” has made Marcellus drilling more efficient and has increased the implementation of the drilling as a source of economic opportunity for not only drilling companies but for the whole state of Pennsylvania (“Marcellus Shale”). An important part of this Marcellus activity is that “most drilling is occurring in rural areas” according to Joseph Morris, a poll analyzer from Mercyhurst College (Begos, Kevin. “Gas”). Amid the economic opportunity, farmers in these areas are resistant to signing over their farmland to drilling companies. Bradford County farmer Carol French, who wrote an editorial in The Patriot News, stated, “Has anyone considered how these gas developments and industrial uses on farmland will impact agriculture production for years to come if a farmer does not have the necessary means or information to negotiate protection measures?” She fears that drilling will ruin rural property and thus unnecessarily change or hurt farmers’ economic way of life (French). However, because of the vital economic benefits that Marcellus Shale drilling has for Pennsylvania, farmers in rural areas of the state should choose to allow drilling on their property.
Pennsylvania, along with being rich in coal, is now receiving kudos for its participation in the production of natural gas. An article composed by Madelon...
A lot of questions surrounds fracking, questions involving national government and job creation, local municipalities and job opportunities, economists and revenue, relevant infrastructure concerning local economy, local developers, current land owners and property value, food security, social and moral decline in society, local governments feeling towards Ubuntu and the list goes on and on. Although the list of potential problems is long, there is also some benefits in this industry as well. The state of South Africa now has a new form of revenue that will be collected by tax and permits. All cities and small town in the Karoo will benefit from all the new business brought on by the new drilling operators. All the farmers owning mineral rights will be financially rewarded by the gas industry leasing those rights (Potter & Rashid, 2013).
In the past couple of years the word fracking has been prevalent in the media whether its been mentioned in the news or in the movie Matt Damon stared in titled “Promised Land”. Many people know it as a method of extracting gas from the earth and don’t inquire further into what hydraulic fracturing actually is. Before the process is explained we should understand why it has become prevalent in the last decade. The reason Hydraulic fracturing has become so popular in the last couple of years is because of the passage of the energy policy act of 2005, which contained the Halliburton loophole. The Halliburton loophole stripped the Environmental Protection Agency of its authority to regulate hydraulic fracturing (New York Times 2009). Allowing Hydraulic Fracturing allowed companies to finally access the abundant sources of natural gas legally. This act made it possible to access the vast amounts of natural gas contained in the Marcellus Shale, which created a boom in hydraulic fracturing. What exactly is hydraulic fracturing? Hydraulic fracturing is a method of extracting oil and gas, that is not accessible by conventional drilling methods. The process, injects chemically treated water and sand at high pressures into shale rock to release the oil and gas (Pritchard 2013).
Every resource on our planet is limited. This is not surprising information as humans have known this since the beginning of existence. Eventually, oil and other resources will no longer be viable sources of energy because they will be depleted. The simple answer to this inevitable issue is hydraulic fracturing. It is currently a controversial means of finding energy and was argued both ways by Josh Fox in his film Gasland as well as Phelim McAleer in his documentary FrackNation. Hydraulic fracturing, better known as “fracking”, is a safe and efficient way to acquire the copious amounts of energy needed to power the earth.
Before one can see the devastating effects of fracking, one must first understand how fracking works. As previously stated, the main intent of hydro-fracking is to access and harvest natural gas that lies below the surface of the Earth. Having formed over 400 million years ago by the collision of tectonic plates (Marsa 3), the Marcellus Shale plays host to a gold mine of natural gas, which is currently at the center of the fracking debate in the Northeastern region of the United States. Unfortunately, access...
In 1821, Shale gas was first time extracted from under ground as an energy resource in Fredonia, New York state. The shale gas technology has been developed from 1930s, and the first shale gas developing well was established in 1947. The scale shale gas industry was began at 1970s; during that time, the United State government had to fund into shale gas in order to face the decline of nature gas recourse capacity. Thanks to this situation and the investment, some unavoidable technologies’ develop such as: directional well and horizontal well technology, seismic imaging technology and large hydraulic fracturing technology.
Janise Miescke 5/6/2017 Assignment 3 When Money Speaks Louder than Obligation Texas has always been one to hold the belief ‘everything is bigger in Texas’.
The United States relies on imports for about forty percent of its crude oil, which is the lowest rate of dependency since 1991 according to the U.S Energy Information Administration. Today our country is trying to keep on track in becoming less and less dependent. When it comes to the topic of the future ways the United States will get its fuel, most of us readily agree that the United States should become more independent by using natural gas that is already here on our land. Where this argument usually ends, however, is on the question of the consequences drilling for natural gas brings. Whereas some are convinced drilling is safe, others maintain that it is actually in fact dangerous. Hydraulic fracturing or "fracking", the terms for drilling for natural gas, is dangerous to our public health and to the environment because of the water contamination it causes. Therefore, it is not something that should become a project for alternative fuel used by the United States.
environmental damage mounting, the practice of fracking has only quietly expanded and profited. This concealed expansion into the nation’s backyard has only