Sign in Subscribe
Petroleum

Hydraulic Fracturing Regulation Could Limit US Gas Production, Boost Costs

Strategic Insights

— 1 min read

The Environmental Protection Agency's (EPA) move to regulate hydraulic fracturing has raised concerns from the Department of Energy (DOE), which warns that such regulation could harm the nation's ability to produce affordable natural gas. The DOE points out that hydraulic fracturing is used in over 50% of gas wells and 30% of oil wells, and any restrictions could lead to a decline in domestic gas production.

Key Takeaways:

  • The DOE estimates that if drilling is halted by restrictions on hydraulic fracturing, Alabama's coalbed methane production, which accounts for 40% of the state's natural gas production, would decline quickly, impacting gas consumers in the East and Southeast.
  • 60%-80% of all new gas wells would require hydraulic fracturing, making it a critical component of domestic gas production.
  • Each year, nearly 25,000 oil and gas wells are hydraulically fractured, but there has never been a confirmed incident of drinking water contamination caused by hydraulic fracturing.
  • A DOE report finds that hydraulic fracturing benefits the environment by reducing the need for drilling additional wells, thereby reducing the amount of drilling waste requiring disposal.
  • A survey by the Ground Water Protection Council, a nonprofit organization, found no incidents of groundwater contamination from hydraulic fracturing.

Statistics:

  • The nation's natural gas demand is expected to spiral to 31 trillion cubic feet by 2015 from 21 Tcf in 1999.
  • Over 50% of gas wells and 30% of oil wells use hydraulic fracturing.
  • 25,000 oil and gas wells are hydraulically fractured each year.
  • 40% of Alabama's natural gas production comes from coalbed methane.
  • 60%-80% of all new gas wells would require hydraulic fracturing.

Sources:

  • U.S. Department of Energy data on hydraulic fracturing.
  • Peter Lagiovane, program manager, DOE Office of Fossil Energy, as quoted in the article.
  • U.S. Environmental Protection Agency data on natural gas demand.
  • Ground Water Protection Council survey on hydraulic fracturing risks.
  • DOE report on hydraulic fracturing benefits.

Read more