Tag Archives: fracking

To Frack or Not to Frack?

By Barry Rascovar

Feb. 27, 2016–With apologies to W. Shakespeare, the continuing battle over gas exploration in Maryland’s far-western Garrett County reads like this:

“To frack or not to frack, that is the question.

“Whether ‘tis nobler in the mind to suffer environmentalists’ slings and arrows of an outrageous drilling ban or take arms against a sea of troubles and, by opposing them, let the state moratorium lapse, crack open Marcellus shale and unleash the fortunes flowing from natural gas.”

It’s a furious dispute which has dragged on for years.

Environmentalists view hydraulic fracturing of black Marcellus shale in mountainous Garrett County as pure evil sure to pollute drinking water, pristine streams, the health of citizens and lay waste to 100,000 acres in the state’s most remote county.

Proponents say that’s buncombe. Done safely and with plenty of state oversight, “fracking” as it is called can be accomplished – and is accomplished all over the country – without damning side effects.

(Fracking has been used in well production since 1950, but didn’t become the superstar of oil drilling until this century, thanks to recent advances in petro-geology, fluid dynamics, engineering, computing, horizontal drilling and 3D seismic imaging.)

Cracking Open Shale

Today, one-half of all U.S. crude oil production and two-thirds of all natural gas production comes from wells that employ fracking – sending a mix of high-pressure water, sand and chemicals through underground pipes drilled horizontally that cracks open ancient layers of shale, thus releasing previously unreachable pools of petroleum liquids.

Yet in Maryland, the “shale revolution” hasn’t happened.

Under intense pressure from a core Democratic voting group – environmentalists – Gov. Martin O’Malley declared a moratorium in 2011 while a scientific study was undertaken.

Much to the activists’ dismay, the panel concluded fracking could be done safely if the state imposed strong regulations. This led O’Malley to promulgate tough, restrictive rules for fracking in 2014.

Unsatisfied, anti-frackers got the legislature to approve another two-year moratorium in 2015. Gov. Larry Hogan refused to sign the bill but didn’t stop it from becoming law.

That led to new state regulations now awaiting approval by a joint legislative panel. Meanwhile, the moratorium runs out in October.

Push for Complete Ban

Environmentalists are determined to push through a permanent fracking ban in Maryland this legislative session. Whether there would be enough votes to overturn a likely Hogan veto remains in question.

Forgotten in this bitter back-and-forth are the land owners of isolated Garrett County who sorely need the financial boost that could come through drilling on their lands.

Farming communities in Pennsylvania and West Virginia have reaped huge lease and royalty payments from oil companies who hit pay dirt in those two states.

In fact, Pennsylvania now ranks No. 1 in shale gas production (ahead of Texas) and West Virginia ranks No. 3. They are the prime beneficiaries of the massive amounts of Marcellus shale under land in that part of the country.

But petroleum firms no longer show interest in Maryland.

Deterrents to Fracking

First there’s the regulatory and legislative uncertainty. No company wants to risk tens of millions of dollars in a state where the door could be slammed shut at any time.

Second, there’s the extremely low price of natural gas, a trend that shows no signs of abating, possibly for decades.

Third, there’s the small amount of reachable petroleum liquids in the Marcellus shale beneath Garrett County and a portion of neighboring Alleghany County. The numbers just don’t add up for oil companies.

Tapping into shale formations with new technologies revolutionized this nation’s energy situation. Fracked wells tripled in just five years. Drilling has been most intense in North Dakota, Montana, Texas, Pennsylvania and West Virginia.

But this fracking phenomenon also has driven down the price of natural gas to such low levels that exploration in questionable regions like Maryland is uneconomic.

A law permanently banning fracking in Maryland would foreclose any chance of Garrett landowners ever benefiting from higher natural gas prices and breakthroughs in drilling technologies that might make hydraulic fracturing safe and secure.

Events beyond the state’s control already have determined that fracking won’t happen in Maryland any time soon. That plus Hogan’s new regulations – said to be the toughest in the country – appear to provide assurance that environmentalists’ worst nightmares won’t come true.

That should have ended this rancorous discussion but it hasn’t. Environmentalists want a grand-slam home run that purges even the thought of fracking ever occurring in Maryland.

But forever is an awfully long time, a fact that may dissuade enough lawmakers from turning their backs totally on Garrett County land owners.

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Fracking Follies in Annapolis

By Barry Rascovar

March 30, 2015 — Shakespeare, as usual, had it right. “Full of sound and fury signifying nothing.” That describes the squabbling in Annapolis over hydraulic fracturing, commonly known as “fracking.”

It is Maryland’s phantom issue.

Environmentalists and do-gooder legislators are panicked that fracking will mean earthquakes, tainted drinking water, dirty air, despoliation of pristine farmland and other biblical plagues. They want to bar this drilling procedure forever in Maryland.

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Hydraulic Fracturing

 

Never mind that wide-spread fracking has been going on since 1950. In those 65 years, more than one million wells have been fracked, in which a combination of water, sand and chemicals is pumped under high pressure deep into shale formations. This fractures the rock and sends deposits of oil and/or natural gas gushing to the surface.

Low Oil Prices = No Fracking

There’s only a tiny part of Maryland where hydraulic fracturing into the gas-rich Marcellus Shale formation is viable — in far Western Maryland, i.e., portions of Garrett County and a bit of Allegany County. The number of farmers who might benefit from oil and gas royalties is very small.

Moreover, no oil or gas driller is interested in Maryland any longer. The steep plunge in oil and gas prices makes fracking in the state far too costly now or any time in the foreseeable future.

So the arguments in Annapolis are largely speculative.

Environmentalists continue to spout off about the doom and gloom that will descend on Maryland if fracking is allowed — part of a larger argument by environmental zealots who seek to ban coal and even gas-fired power plants, nuclear power plants, the export of liquified natural gas, as well as wind farms in state parks (they won that fight) and wind farms on the lower Eastern Shore.

O’Malley Study

The O’Malley administration, never a friend of business-development if it bumped up against the fears of the environmental community, forbid fracking for three years while it conducted a lengthy, in-depth, scientific study.

The results pleased no one: The research showed fracking could be done safely in Maryland, but only under very strict state supervision — the strictest rules in the nation.

Even that hasn’t made environmentalists happy. Nothing short of a permanent ban will satisfy them.

A bill imposing another three-year moratorium — totally meaningless in today’s low-cost energy world — has made it out of the House of Delegates. Prospects in the Senate are less certain. The bill calls for a 36-month study that would largely duplicate the O’Malley administration’s extensive research.

Meanwhile, a Senate bill, sponsored by Sen. Bobby Zirkin of Baltimore County, offers an even more extreme step that kills any possibility of fracking coming to Maryland.

It creates extraordinary legal liability standards, calling fracking “ultrahazardous and abnormally dangerous” and requires a $10 million insurance policy that must be in place for six years after drilling ends.

Few Side Effects

Funny thing: Over the past 65 years, fracking has been conducted without much in the way of negative side effects.

The industry has used fracking over 1 million times and the number of “ultrahazardous” outcomes has been tiny.

“Abnormally dangerous”? It would be hard to make that assertion stand up statistically.

It would be as if the Maryland legislature declared airplane travel “ultrahazardous and abnormally dangerous” due to a few highly publicized crashes — even though the odds of being killed this way are 1 in 30 million.

The fracking follies in Annapolis are a case of populist rhetoric run amuck. It’s a do-gooder attempt to outlaw something that is no longer on the radar screen in Maryland — and won’t be for years or decades to come.

Waste of Energy

Making it impossible for oil and natural gas companies to drill in Maryland — even under exceptionally close state supervision — is the sort of anti-business hostility Gov. Larry Hogan Jr. may not be able to tolerate.

A veto could await either the House bill or the Senate bill.

Still, all of this is academic — an exercise in wasted energy.

As long as oil and gas prices remain depressed, fracking has zero future in Maryland. The legislature has better things to do in its remaining days before its April 13 adjournment.

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