Petrochemical development in the Houston, Texas area

COVID-19 and the oil & gas industry

COVID-19 and the oil and gas industry are at odds. Air pollution created by oil and gas activities make people more vulnerable to viruses like COVID-19. Simultaneously, the economic impact of the pandemic is posing major challenges to oil and gas companies that were already struggling to meet their bottom line. In responding to these challenges, will our elected leaders agree on a stimulus package that prioritizes people over profits?

Health Impacts of COVID-19 and Oil & Gas 

People living in areas with poor air quality may be more vulnerable to COVID-19, a disease that affects the lungs. Poor air quality is linked to higher rates of asthma and chronic obstructive pulmonary disease (COPD), even without a pandemic.

Air pollution from oil and gas development can come from compressor stations, condensate tanks, construction activity, dehydrators, engines, fugitive emissions, pits, vehicles, and venting and flaring. The impact is so severe that for every three job years created by fracking in the Marcellus Shale, one year of life is lost due to increased exposure to pollution. 

Yes, air quality has improved in certain areas of China and elsewhere due to decreased traffic during the COVID-19 pandemic. But despite our eagerness for good news, sightings of dolphins in Italian waterways does not mean that mother earth has forgiven us or “hit the reset button.”

Significant environmental health concerns persist, despite some improvements in air quality. During the 2003 SARS outbreak, which was caused by another coronavirus, patients from areas with the high levels of air pollution were twice as likely to die from SARS compared to those who lived in places with little pollution.

On March 8th, Stanford University environmental resource economist Marshall Burke looked at the impacts of air quality improvements under COVID-19, and offered this important caveat: 

“It seems clearly incorrect and foolhardy to conclude that pandemics are good for health. Again I emphasize that the effects calculated above are just the health benefits of the air pollution changes, and do not account for the many other short- or long-term negative consequences of social and economic disruption on health or other outcomes; these harms could exceed any health benefits from reduced air pollution.  But the calculation is perhaps a useful reminder of the often-hidden health consequences of the status quo, i.e. the substantial costs that our current way of doing things exacts on our health and livelihoods.”

This is an environmental justice issue. Higher levels of air pollution tend to be in communities with more poverty, people of color, and immigrants. Other health impacts related to oil and gas activities, from cancer to negative birth outcomes, compromise people’s health, making them more vulnerable to COVID-19. Plus, marginalized communities experience disproportionate barriers to healthcare as well as a heavier economic toll during city-wide lockdowns.

Financial Instability of the Oil & Gas Industry in the Face of COVID-19 

The COVID-19 health crisis is setting off major changes in the oil and gas industry. The situation may thwart plans for additional petrochemical expansion and cause investors to turn away from fracking for good.

Persistent Negative Returns 

Oil, gas, and petrochemical producers were facing financial uncertainties even before COVID-19 began to spread internationally. Now, the economics have never been worse

In 2019, shale-focused oil and gas producers ended the year with net losses of $6.7 billion. This capped off the decade of the “shale revolution,” during which oil and gas companies spent $189 billion more on drilling and other capital expenses than they brought in through sales. This negative cash flow is a huge red flag for investors.  

“North America’s shale industry has never succeeded in producing positive free cash flows for any full year since the practice of fracking became widespread.” IEEFA

 

Plummeting Prices

Shale companies in the United States produce more natural gas than they can sell, to the extent that they frequently resort to burning gas straight into the atmosphere. This oversupply drives down prices, a phenomenon that industry refers to as a “price glut.”

The oil-price war between Russia and Saudi Arabia has been taking a toll on oil and gas prices as well. Saudi Arabia plans to increase oil production by 2 – 3 million barrels per day in April, bringing the global total to 102 million barrels produced per day. But with the global COVID-19 lockdown, transportation has decreased considerably, and the world may only need 90 million barrels per day

If you’ve taken Econ 101, you know that when production increases as demand decreases, prices plummet. Some analysts estimate that the price of oil will soon fall to as low as $5 per barrel, (compared to the OPEC+ intended price of $60 per barrel). 

Corporate welfare vs. public health and safety

Oil and gas industry lobbyists have asked Congress for financial support in response to COVID-19. Two stimulus bills in both the House and Senate are currently competing for aid.

Speaker McConnell’s bill seeks to provide corporate welfare with a $415 billion fund. This would largely benefit industries like oil and gas, airlines, and cruise ships. Friends of the Earth gauged the potential bailout to the fracking industry at $26.287 billion. In another approach, the GOP Senate is seeking to raise oil prices by directly purchasing for the Strategic Petroleum Reserve, the nation’s emergency oil supply.

Speaker Pelosi’s proposed stimulus bill includes $250 billion in emergency funding with stricter conditions on corporate use, but doesn’t contain strong enough language to prevent a massive bailout to oil and gas companies.

Hopefully with public pressure, Democrats will take a firmer stance and push for economic stimulus to be directed to healthcare, paid sick leave, stronger unemployment insurance, free COVID-19 testing, and food security. 

Grasping at straws

Fracking companies were struggling to stay afloat before COVID-19 even with generous government subsidies. It’s becoming very clear that the fracking boom is finally busting. In an attempt to make use of the oversupply of gas and win back investors, the petrochemical industry is expanding rapidly. There are currently plans for $164 billion of new infrastructure in the United States that would turn fracked natural gas into plastic. 

Belmont Cracker Plant - Potential Petrochemical Infrastructure in the Ohio River Valley

The location of the proposed PTTGC Ethane Cracker in Belmont, Ohio. Go to this map.

There are several fundamental flaws with this plan. One is that the price of plastic is falling. A new report by the Institute for Energy Economics and Financial Analysis (IEEFA) states that the price of plastic today is 40% lower than industry projections in 2010-2013. This is around the time that plans started for a $5.7 billion petrochemical complex in Belmont County, Ohio. This would be the second major infrastructural addition to the planned petrochemical buildout in the Ohio River Valley, the first being the multi-billion dollar ethane cracker plant in Beaver County, Pennsylvania.

Secondly, there is more national and global competition than anticipated, both in supply and production. Natural gas and petrochemical companies have invested in infrastructure in an attempt to take advantage of cheap natural gas, creating an oversupply of plastic, again decreasing prices and revenue. Plus, governments around the world are banning single-use plastics, and McKinsey & Company estimates that up to 60% of plastic production could be based on reuse and recycling by 2050. 

Sharp declines in feedstock prices do not lead to rising demand for petrochemical end products.

Third, oil and gas companies were overly optimistic in their projections of national economic growth. The IMF recently projected that GDP growth will slow down in China and the United States in the coming years. And this was before the historic drop in oil prices and the COVID-19 outbreak.

“The risks are becoming insurmountable. The price of plastics is sinking and the market is already oversupplied due to industry overbuilding and increased competition,” said Tom Sanzillo, IEEFA’s director of finance and author of the report.

 

 

The Show’s Over for Oil & Gas 

Oil, gas, and petrochemical companies are facing perilous prospects from demand and supply sides. Increasing supply does not match up with decreasing demand, and as a result the price of oil and plastics are dropping quickly. Tens of thousands of oil and gas workers are being fired, and more than 200 oil and gas companies have filed for bankruptcy in North America in the past five years. Investors are no longer interested in propping up failing companies.

Natural gas accounts for 44% of electricity generation in the United States – more than any other source. Despite that, the cost per megawatt hour of electricity for renewable energy power plants is now cheaper than that of natural gas power plants. At this point, the economy is bound to move towards cleaner and more economically sustainable energy solutions. 

It’s not always necessary or appropriate to find a “silver lining” in crises, and it’s wrong to celebrate reduced pollution or renewable energy achievements that come as the direct result of illness and death. Everyone’s first priority must be their health and the health of their community. Yet the pandemic has exposed fundamental flaws in our energy system, and given elected leaders a moment to pause and consider how we should move forward.

It is a pivotal moment in terms of global energy production. With determination, the United States can exercise the political willpower to prioritize people over profits– in this case, public health over fossil fuel companies.

Top photo of petrochemical activity in the Houston, Texas area. By Ted Auch, FracTracker Alliance. Aerial assistance provided by LightHawk. 

Support this work

Stay in the know

Overhead view of injection well

The Hidden Inefficiencies and Environmental Costs of Fracking in Ohio

Ohio continues to increase fracked gas production, facilitated by access to freshwater and lax radioactive waste disposal requirements.

View map fullscreen | How FracTracker maps work

Map: Ohio Quarterly Utica Oil and Gas Production along with Quarterly Wastewater Disposal

Well Volumes

A little under a year ago, FracTracker released a map and associated analysis, “A Disturbing Tale of Diminishing Returns in Ohio,” with respect to Utica oil and gas production, highlighting the increasing volume of waste injected in wastewater disposal wells, and trends in lateral length in fracked wells from 2010 to 2018. In this article, I’ll provide an update on Ohio’s Utica oil and gas production in 2018 and 2019, the demands on freshwater, and waste disposal. After looking at the data, I recommend that we holistically price our water resources and the ways in which we dispose of the industry’s radioactive waste in order to minimize negative externalities.

Recently, I’ve been inspired by the works of Colin Woodward[1] and Marvin Harris, who outline the struggle between liberty and the common good. They relate this to the role that commodities and increasing resource intensity play in maintaining or enhancing living standards. This quote from Harris’s “Cannibals and Kings” struck me as the 122 words that most effectively illustrate the impacts of the fracking boom that started more than a decade ago in Central Appalachia:

“Regardless of its immediate cause, intensification is always counterproductive. In the absence of technological change, it leads inevitably to the depletion of the environment and the lowering of the efficiency of production since the increased effort sooner or later must be applied to more remote, less reliable, and less bountiful animals, plants, soils, minerals, and sources of energy. Declining efficiency in turn leads to low living standards – precisely the opposite of the desired result. But this process does not simply end with everybody getting less food, shelter, and other necessities in return for more work. As living standards decline, successful cultures invent new and more efficient means of production which sooner or later again lead to the depletion of the natural environment.” From Chapter 1, page 5 of Marvin Harris’ “Cannibals and Kings: The Origins of Cultures, 1977

In reflecting on Harris’s quote as it pertains to fracking, I thought it was high time I updated several of our most critical data sets. The maps and data I present here speak to intensification and the fact that the industry is increasingly leaning on cheap water withdrawals, landscape impacts, and waste disposal methods to avoid addressing their increasingly gluttonous ways. To this point, the relationship between intensification and resource utilization is not just the purview of activists, academics, and journalists anymore; industry collaborators like IHS Markit admitting as much in their latest analysis pointing to the fact that oil and gas operators “will have to drill substantially more wells just to maintain current production levels and even more to grow production”. Insert Red Queen Hypothesis analogy here!

Oil and Gas Production in Ohio

The four updated data sets presented here are: 1) oil, gas, and wastewater production, 2) surface and groundwater withdrawal rates for the fracking industry, 3) freshwater usage by individual Ohio fracked wells, and 3) wastewater disposal well (also referred to as Class II injection wells) rates.

Below are the most important developments from these data updates as it pertains to intensification and what we can expect to see in the future, with or without the ethane cracker plants being trumpeted throughout Appalachia.

From a production standpoint, total oil production has increased by 30%, while natural gas production has increased by 50% year over year between the last time we updated this data and Q2-2019 (Table 1).

According to the data we’ve compiled, the rate of growth for wastewater production has exceeded oil and is nearly equal to natural gas at 48% from 2017 to 2018.  On average the 2,398 fracked wells we have compiled data for are producing 27% more wastewater per well now than they did at the end of 2017.

————–2017————– ————–2019————–
Oil (million barrels) Gas (million Mcf) Brine (million barrels) Oil (million barrels) Gas (million Mcf) Brine (million barrels)
Max 0.51 12.92 0.23 0.62 17.57 0.32
Total 83.14 5,768.47 76.01 108.15 8,679.12 112.28
Mean 0.40 2.79 0.37 0.45 3.62 0.47

Table 1. Summary statistics for 2,398  fracked wells in Ohio from a production perspective from 2017 to Q2 2019.

 

Total fracked gas produced per quarter and average fracked gas produced per well in Ohio from 2013 to Q2-2019.

Figure 1. Total fracked gas produced per quarter and average fracked gas produced per well in Ohio from 2013 to Q2-2019.

The increasing amount of resources and number of wells necessary to achieve marginal increases in oil and gas production is a critical factor to considered when assessing industry viability and other long-term implications. As an example, in Ohio’s Utica Shale, we see that total production is increasing, but as IHS Markit admits, this is only possibly by increasing the total number of producing wells at a faster rate. As is evidenced in Figure 1, somewhere around the Winter of 2017-2018, the production rate per well began to flatline and since then it has begun to decrease.

Water demands for oil and gas production in Ohio

Since last we updated the industry’s water withdrawal rates, the Ohio Department of Natural Resources (ODNR) has begun to report groundwater rates in addition to surface water. The former now account for nine sites in seven counties, but amount to a fraction of reported withdrawals to date (around 00.01% per year in 2017 and 2018). The more disturbing developments with respect to intensification are:

1) Since we last updated this data, 59 new withdrawal sites have come online. There are currently 569 sites in total in ODNR’s database. This amounts to a nearly 12% increase in the total number of sites since 2017. With this additional inventory, the average withdrawal rate across all sites has increased by 13% (Table 2).

2) Since 2010, the demand for freshwater to be used in fracking has increased by 15.6% or 693 million gallons per year (Figure 2).

3) We expect to see an inflection point when water production will increase to accommodate the petrochemical buildout with cracker plants in Dilles Bottom, OH; Beaver County, PA; and elsewhere. In 2018 alone, the oil and gas industry pulled 4.69 billion gallons of water from the Ohio River Valley. Since 2010, the industry has permanently removed 22.96 billion gallons of freshwater from the Ohio River Valley. It would take the entire population of Ohio five years to use the 2018 rate in their homes.[2]

As we and others have mentioned in the past, this trend is largely due to the bargain basement price at which we sell water to the oil and gas sector throughout Appalachia.[3] To increase their nominal production returns, companies construct longer laterals with orders of magnitude more water, sand, and chemicals.  At this rate, the fracking industry’s freshwater demand will have doubled to around 8.8-.9.5 billion gallons per year by around 2023.  Figure 3 demonstrates that average fracked lateral length continues to increase to the tune of +15.7-21.2% (+1,564-2,107 feet) per quarter per lateral. This trend alone is more than 2.5 times the rate of growth in oil production and roughly 24% greater than the rate of growth in natural gas production (See Table 1).

4. The verdict is even more concerning than it was a couple years ago with respect to water demand increasing by 30% per quarter per well or an average of 4.73 million gallons (Figure 4). The last time we did this analysis >1.5 years ago demand was rising by 25% per quarter or 3.84 million gallons. At that point I wouldn’t have guessed that this exponential rate of water demand would have increased but that is exactly what has happened. Very immediate conversations must start taking place in Columbus and at the region’s primary distributor of freshwater, The Muskingum Watershed Conservancy District (MWCD), as to why this is happening and how to push back against the unsustainable trend.

2017 2018
Sites 510 569
Maximum (billion gallons) 1.059 1.661
Sum (billion gallons) 18.267 22.957
Mean (billion gallons) 0.358 0.404

Table 2. Summary of fracking water demands throughout Ohio in 2017 when we last updated this data as well as how those rates changed in 2018.

Hydraulic fracturing freshwater demand in total across 560+ sites in Ohio from 2010 to 2018 (Million Gallons Per Year).

Figure 2. Hydraulic fracturing freshwater demand in total across 560+ sites in Ohio from 2010 to 2018 (million gallons per year).

Average lateral length for all of Ohio’s permitted hydraulically fractured laterals from from Q3-2010 to Q4-2019, along with average rates of growth from a linear and exponential standpoint (Feet).

Figure 3. Average lateral length for all of Ohio’s permitted hydraulically fractured laterals from from Q3-2010 to Q4-2019, along with average rates of growth from a linear and exponential standpoint (feet).

Average Freshwater Demand Per Unconventional Well in Ohio from Q3-2011 to Q3-2019 (Million Gallons).

Figure 4. Average Freshwater Demand Per Unconventional Well in Ohio from Q3-2011 to Q3-2019 (million gallons).

 

Waste Disposal

When it comes to fracking wastewater disposal, the picture is equally disturbing. Average disposal rates across Ohio’s 220+ wastewater disposal wells increased by 12.1% between Q3-2018 and Q3-2019 (Table 3). Interestingly, this change nearly identically mirrors the change in water withdrawals during the same period. What goes down– freshwater – eventually comes back up.

Across all of Ohio’s wastewater disposal wells, total volumes increased by nearly 22% between 2018 and the second half of 2019. However, the more disturbing trend is the increasing focus on the top 20 most active wastewater disposal wells, which saw  an annual increase of 17-18%. These wells account for nearly 50% of all waste and the concern here is that many of the pending wastewater disposal well permits are located on these sites, within close proximity, and/or are proposed by the same operators that operate the top 20.

When we plot cumulative and average disposal rates per well, we see a continued exponential increase. If we look back at the last time, we conducted this analysis, the only positive we see in the data is that at that time, average rates of disposal per well were set to double by the Fall of 2020. However, that trend has tapered off slightly — rates are now set to double by 2022.

Each wastewater disposal well is seeing demand for its services increase by 2.42 to 2.94 million gallons of wastewater per quarter (Figure 5). Put another way, Ohio’s wastewater disposal wells are rapidly approaching their capacity, if they haven’t already.  Hence why the oil and gas industry has been frantically submitting proposals for additional waste disposal wells. If these wells materialize, it means that Ohio will continue to be relied on as the primary waste receptacle for the fracking industry throughout Appalachia.

Variable ——————-All Wells——————- ——————-Top 20——————-
To Q3-2018 To Q3-2019 % Change To Q3-2018 To Q3-2019 % Change
Number of Wells 223 243 +9.0 ——- ——- ——-
Max (MMbbl) 1.12 1.20 +7.1 ——- ——- ——-
Sum (MMbbl) 203.19 247.05 +21.6 101.43 119.31 +17.6
Average (MMbbl) 0.91 1.02 +12.1 5.07 5.97 +17.8

Table 3. Summary Statistics for Ohio’s Wastewater Disposal Wells (millions of barrels (MMbbl)).

Average Fracking Waste Disposal across all of Ohio’s Class II Injection Wells and the cumulative amount of fracking waste disposed of in these wells from Q3-2010 to Q2-2019 (Million Barrels).

Figure 5. Average Fracking Waste Disposal across all of Ohio’s Wastewater Disposal Wells and the cumulative amount of fracking waste disposed of in these wells from Q3-2010 to Q2-2019 (million barrels).

Using the Pennsylvania natural gas data merged with the Ohio wastewater data, we were able to put a finer point on how much wastewater would be produced with a 100,000 barrel ethane cracker like the one PTT Global Chemical has proposed for Dilles Bottom, Ohio. The following are our best estimate calculations assuming 1 barrel of condensate is 20-40% ethane. These calculations required that we take some liberties with the merge of the ratio of gas to wastewater in Ohio with the ratio of gas to condensate in Pennsylvania:

  1. For 2,064 producing Ohio fracked wells, the ratio of gas to wastewater is 64.76 thousand cubic feet (Mcf) of gas produced per barrel of wastewater.
  2. Assuming 40% ethane, the ratio of gas to condensate in Washington County, PA wells for the first half of 2019 was 320.08 Mcf of gas per barrel of ethane condensate. For 100,000 barrels of ethane needed per cracker per day, that would result in 494,285 barrels (20.76 million gallons) of brine per day.
  3. Assuming 20% ethane, the ratio of gas to condensate in Washington County, PA wells for the first half of 2019 was 640.15 Mcf per barrel of ethane condensate = For 100,000 barrels of ethane needed per cracker per day that would result in 988,571 barrels/41.52 million gallons of wastewater per day.

But wait, here is the real stunner:

  1. The 40% assumption result is 3.81 times the daily rates of wastewater taken in by our current inventory of wastewater disposal wells and 5.37 times the daily rates of brine taken in by the top 20 wells (Note: the top 20 wastewater disposal wells account for 71% of all wastewater  waste taken in by all of the state’s disposal wells).
  2. The 20% assumption result is 7.62 times the daily rates of wastewater taken in by our current inventory of wastewater disposal wells and 10.74 times the daily rates of wastewater taken in by the top 20 wells.

Therefore, we estimate the fracked wells supplying the proposed PTTGC ethane cracker will generate between 20.76 million and 41.52 million gallons of wastewater per day. That is 3.8 to 7.6 times the amount of wastewater currently received by Ohio’s wastewater disposal wells.

What does this means in terms of truck traffic? We can assume that  at least 80% of the trucks that transport wastewater are the short/baby bottle trucks which haul 110 barrels per trip. This means that our wastewater estimates would require between 4,493 and 8,987 truck trips per day, respectively. The pressures this amount of traffic will put on Appalachian roads and communities will be hard to measure and given the current state of state and federal politics and/or oversight it will be even harder to measure the impact inevitable spills and accidents will have on the region’s waterways.

Conclusion

There is no reason to believe these trends will not persist and become more intractable as the industry increasingly leans on cheap waste disposal and water as a crutch. The fracking industry will continue to present shareholders with the illusion of a robust business model, even in the face of rapid resource depletion and precipitous production declines on a per well basis.

I am going to go out on a limb and guess that unless we more holistically price our water resources and the ways in which we dispose of the industry’s radioactive waste, there will be no other supply-side signal that we could send that would cause the oil and gas industry to change its ways. Until we reach that point, we will continue to compile data sets like the ones described above and included in the map below, because as Supreme Court Justice Louis Brandeis once said, “Sunlight is the best disinfectant!”

By Ted Auch, Great Lakes Program Coordinator, FracTracker Alliance with invaluable data compilation assistance from Gary Allison

[1] Colin Woodward’s “American Character: A history of the epic struggle between individual liberty and the common good” is a must read on the topic of resource utilization and expropriation.

[2] https://pubs.er.usgs.gov/publication/cir1441

[3] In Ohio the major purveyor of water for the fracking industry is the Muskingum Watershed Conservancy District (MCWD) and as we’ve pointed out in the past they sell water for roughly $4.50 to $6.50 per thousand gallons. Meanwhile across The Ohio River the average price of water for fracking industry in West Virginia in the nine primary counties where fracking occurs is roughly $8.38 per thousand gallons.

Data Downloads

Quarterly oil, gas, brine, and days in production for 2,390+ Unconventional Utica/Point Pleasant Wells in Ohio from 2010 to Q2-2019

https://www.fractracker.org/a5ej20sjfwe/wp-content/uploads/2019/12/Production_To_Q2_2019_WithExcel.zip

Ohio Hydraulic Fracturing Freshwater and Groundwater Withdrawals from 2010 to 2018

https://www.fractracker.org/a5ej20sjfwe/wp-content/uploads/2019/12/OH_WaterWithdrawals_2010_2018_WithExcel.zip

Lateral length (Feet) for 3,200+ Fracked Utica/Point Pleasant Wells in Ohio up to and including wells permitted in December, 2019

https://www.fractracker.org/a5ej20sjfwe/wp-content/uploads/2020/01/OH_Utica_December_2019_StatePlane_Laterals.zip

Freshwater Use for 2,700+ Unconventional Wells in Ohio from Q3-2011 to Q3-2019

https://www.fractracker.org/a5ej20sjfwe/wp-content/uploads/2019/12/OH_FracFocus_December_2019_WithExcel.zip

Quarterly Volume Disposal (Barrels) for 220+ Ohio Class II Salt Water Disposal Wells from 2010 to Q4-2019

https://www.fractracker.org/a5ej20sjfwe/wp-content/uploads/2019/12/OH_ClassII_Loc_Vols_10_Q4_2019_WithExcel.zi

Support this work

Stay in the know

Freiburg Recycling

The Circular Economy: What it means for Fracking and Plastic

Who Pays? Health and Economic Impacts of Fracking in Pennsylvania

Since the advent of unconventional shale gas drilling, some effects have been immediate, some have emerged over time, and some are just becoming apparent. Two reports recently published by the Delaware Riverkeeper Network advance our understanding of the breadth of the impacts of fracking in Pennsylvania. The first report, written by FracTracker, reviews research on the ways fracking impacts the health of Pennsylvanians. The second report by ECONorthwest calculates the economic costs of the industry.

“Fracking is heavily impacting Pennsylvania in multiple ways but the burden is not being fairly and openly calculated. These reports reveal the health effects and economic costs of fracking and the astounding burdens people and communities are carrying,” said Maya van Rossum, the Delaware Riverkeeper.

Learn what the latest science and analysis tells us about the costs of fracking, who is paying now, and what the future price is forecasted to be.

Access the full reports here:

 

Health Impact Report

“Categorical Review of Health Reports on Unconventional Oil and Gas Development; Impacts in Pennsylvania,”  FracTracker Alliance, 2019 Issue Paper

Economic Impact Report

“The Economic Costs of Fracking in Pennsylvania,” ECONorthwest, 2019 Issue Paper

 

From the Experts

“The FracTracker Alliance conducted a review of the literature studying the impact of unconventional oil and gas on health. Findings of this review show a dramatic increase in the breadth and volume of literature published since 2016, with 89% of the literature reporting that drilling proximity has human health effects. Pennsylvanian communities were the most studied sample populations with 49% of reviewed journal articles focused on Marcellus Shale development. These studies showed health impacts including cancer, infant mortality, depression, pneumonia, asthma, skin-related hospitalizations, and other general health symptoms were correlated with living near unconventional oil and gas development for Pennsylvania and other frontline communities.”

Kyle Ferrar, FracTracker Alliance Western Program Coordinator

 

Rig and house. Westwood Lake Park. Photo by J Williams, 2013.

“Fracking wells have an extensive presence across Pennsylvania’s landscape – 20 percent of residents live within 2 miles of a well. This is close enough to cause adverse health outcomes. Collectively we found annual costs of current fracking activity over $1 billion, with cumulative costs given continued fracking activity over the next 20 years of over $50 billion in net present value for the effects that we can monetize. The regional economic benefits also seem to be less than stated, as the long-term benefits for local economies are quite low, and can disrupt more sustainable and beneficial economic trajectories that might not be available after a community has embraced fracking.”

Mark Buckley, Senior Economist at the natural resource practice at
ECONorthwest

 

These reports on the health effects and economic impacts of unconventional oil and natural gas development yield disheartening results. There are risks of extremely serious health issues for families in impacted areas, and the long term economic returns for communities are negative.

Arming ourselves with knowledge is an important first step towards the renewable energy transformation that is so clearly needed. The stakes are too high to allow the oil and natural gas industries to dictate the physical, social, and economic health of Pennsylvanians.

The Hidden Costs of a Plastic Planet

Plastic has been getting a lot of negative press lately.

It’s killing marine life, forming vortexes in the ocean, and being burned instead of recycled. But until recently, most of the attention has focused on plastic pollution – the waste that turns up after a product has served its purpose.

Now that’s changed- the Center for International Environmental Law (CIEL) has recently released “Hidden Costs of a Plastic Planet;” two reports that show us the consequences of plastic across its entire lifecycle. The first, Plastic & Health, explores human health impacts, while the second Plastic & Climate, tackles greenhouse gas emissions.

For the first time, we know the full scope of plastic’s impact – and it’s not looking good.

FracTracker is proud to partner with CIEL and several other organizations, including Earthworks, 5 Gyres, TEJAS, UPSTREAM, GAIA, Exeter University, and Environmental Integrity Project to release these reports.

Access the full reports and executives summaries here:

 

You know, now what?

These reports make it clear: the impacts of plastic are serious, and they’re everywhere. We have the evidence to justify an immediate global move away from our disposable, single-use lifestyle. Tackling this toxic crisis will require action across all levels of society- corporations must consider the full life cycle of their products, policy makers must enact plastic reduction measures, and of course, industry needs to rectify its toxic impacts. Eager to encourage these entities to take action, the FracTracker team is committed to doing our own part to solve this plastics problem, and we hope that it inspires individuals, companies, community leaders, and politicians to join in.

Here’s what we’re doing to help the world #BreakFreeFromPlastic:

1. Continue working towards a world free from oil and gas.

Since over 99% of plastic is made from oil and gas, keeping fossil fuels in the ground is the only way to eliminate all of plastic’s toxic impacts. Plastic & Climate found that extracting and transporting oil and gas for plastic production releases over 100 million metric tons of carbon dioxide equivalents per year. There are many opportunities for these releases to occur, including from methane leakage and flaring, the drilling process, deforestation of forests for pipelines and well pads, and emissions from truck traffic.

Pipeline construction causes deforestation, releasing carbon stored in trees and preventing further carbon sequestration

The FracTracker team will continue to study, map, and analyze the risks of this industry to encourage both a switch to renewable energy and a movement away from plastic production.

2. Expose the risks of the fracking-driven plastics boom in the Gulf Coast & Ohio River Valley

Unconventional technology has opened up access to large reserves of natural gas liquids, such as ethane, and plastic manufacturing is one way to increase demand for this glut. In fact, the oil and gas industry is hoping to increase demand for plastic worldwide by 40%! Two regions with access to natural gas liquids that are rapidly expanding plastics manufacturing capacity are the Gulf Coast and the Ohio River Valley.

Eager to justify this build-out, politicians and industries tout the ways plastic is part of a sustainable future. They say that without investing in plastic, we’re not taking full advantage of our resources, and that by using natural gas to make plastic instead of burning it, we’re keeping greenhouse gasses from entering the atmosphere. Speaking on manufacturing plastic from natural gas with public radio station WHYY, Pennsylvania’s Governor Wolf stated:

“I want to move to a point where what we’re using the gas for is for products that go into that sustainable energy future: lightweight products…so that we’re not burning this, we’re actually creating products that would make that energy future that we all want, that would address the issues of climate change in an effective way.”

The Shell Ethane Cracker in Pennsylvania is projected to produce 1.6 million tons of plastic per year, which Governor Wolf states is part of a “sustainable energy future.” Photo by Ted Auch, aerial assistance by LightHawk.

But the data say otherwise.

Plastic does not address the issues of climate change. In fact, using natural gas for plastic perpetuates climate change. Climate & Plastics found that this year, “the production and incineration of plastic will add more than 850 million metric tons of greenhouse gases to the atmosphere—equal to the emissions from 136 one-thousand-megawatt coal power plants.” If plastic production grows as currently predicted, by 2030, emissions could reach 1.34 gigatons per year, or 291 new coal plants.

The rate of plastic production is directly at odds with global carbon emissions targets.

While plastic can be used for lightweight parts of electric vehicles or reusable materials, the plastic being produced by the current build out is primarily polyethylene plastic, most commonly used for packaging and single use products- plastic bags, bottles, jugs, containers, and plastic films and linings; products that countries and cities are phasing out.

3. Encourage plastic alternatives

While renewable energy is becoming increasingly available, so too are plastic alternatives. Across the world, communities are rethinking the products we use everyday. Thanks to historic legislation, zero waste stores,  and towns, and plastic-free bloggers, it’s never been a better time to cut back on plastic – and the FracTracker team is doing our part.

Rebecca, our Administrative and Human Resources Specialist, has cut her plastic use by switching to toothpaste tablets and bars of soap. Karen, our Eastern Program Coordinator, makes her own reusable beeswax food wraps. And Erica Jackson and Isabelle Weber in the Pittsburgh office keep reusable utensils in their backpacks. The whole team is cutting back on single-use plastic products, and are always on the look-out for non oil and gas-based products.

We also realize that with companies like Coca Cola selling 3,000 plastic bottles every second, and Nestlé  producing 1.7 million tons of plastic packaging a year, corporations play a key role in this movement.

Through the Story of Stuff’s #Messageinabottle project and Greenpeace’s #Isthisyours campaign, we’re also encouraging corporations to reimagine how the package and transport products.

Now YOU know, what will you do to help your company, community, or yourself #BreakFreeFromPlastic?

Bird's eye view of an injection well (oil and gas waste disposal)

A Disturbing Tale of Diminishing Returns in Ohio

Utica oil and gas production, Class II injection well volumes, and lateral length trends from 2010-2018

The US Energy Information Administration (EIA) recently announced that Ohio’s recoverable shale gas reserves have magically increased by 11,076 billion cubic feet (BCF). This increase ranks the Buckeye State in the top 5 for changes in recoverable shale natural gas reserves between 2016 and 2017 (pages 31- 32 here). After reading the predictable and superficial media coverage, we thought it was time to revisit the data to ask a pertinent question: What is the fracking industry costing Ohio?

Recent Shale Gas Trends in Ohio

According to the EIA’s report, Ohio currently sits at #7 on their list of proven reserves. It is estimated there are 27,021 BCF of shale gas beneath the state (Figure 1).

Graph of natural gas reserves in different states 2016-2017

Figure 1. Proven and change in proven natural gas reserves from 2016 to 2017 for the top 11 states and the Gulf of Mexico (calculated from EIA’s “U.S. Crude Oil and Natural Gas Proved Reserves, Year-End 2017”).

There are a few variations in the way the oil and gas industry defines proven reserves:

…an estimated quantity of all hydrocarbons statistically defined as crude oil or natural gas, which geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions. Reservoirs are considered proven if economic producibility is supported by either actual production or conclusive formation testing. – The Organization of Petroleum Exporting Countries

… the quantity of natural resources that a company reasonably expects to extract from a given formation… Proven reserves are classified as having a 90% or greater likelihood of being present and economically viable for extraction in current conditions… Proven reserves also take into account the current technology being used for extraction, regional regulations and market conditions as part of the estimation process. For this reason, proven reserves can seemingly take unexpected leaps and drops. Depending on the regional disclosure regulations, extraction companies might only disclose proven reserves even though they will have estimates for probable and possible reserves. – Investopedia

What’s missing from this picture?

Neither of the definitions above address the large volume of water or wastewater infrastructure required to tap into “proven reserves.” While compiling data for unconventional wells and injection wells, we noticed that the high-volume hydraulic fracturing (HVHF) industry is at a concerning crossroads. In terms of “energy return on energy invested,” HVHF is requiring more and more resources to stay afloat.

OH quarterly Utica oil & gas production along with quarterly Class II injection well volumes:

The map below shows oil and gas production from Utica wells (the primary form of shale gas drilling in Ohio). It also shows the volume of wastewater disposed in Class II salt water disposal injection wells.


 View map fullscreen | How FracTracker maps work

Publications like the aforementioned EIA article and language out of Columbus highlight the nominal increases in fracking productivity. They greatly diminish, or more often than not ignore, how resource demand and waste production are also increasing. The data speak to a story of diminishing returns – an industry requiring more resources to keep up gross production while simultaneously driving net production off a cliff (Figure 2).

Graph of Utica permits in Ohio on a cumulative and monthly basis along with the average price of West Texas Intermediate (WTI) and Brent Crude oil per barrel from September, 2010 to December, 2018

Figure 2. Number of Utica permits in Ohio on a cumulative and monthly basis along with the average price of West Texas Intermediate (WTI) and Brent Crude oil per barrel from September 2010 to December 2018

The Great Decoupling of New Year’s 2013

In the following analysis, we look at the declining efficiency of the HVHF industry throughout Ohio. The data spans the end of 2010 to middle of 2018. We worked with Columbus-area volunteer Gary Allison to conduct this analysis; without Gary’s help this work and resulting map, would not have been possible.

A little more than five years ago today, a significant shift took place in Ohio, as the number of producing gas wells increased while oil well numbers leveled off. The industry’s permitting high-water mark came in June of 2014 with 101 Utica permits that month (a level the industry hasn’t come close to since). The current six-month permitting average is 25 per month.

As the ball dropped in Times Square ringing in 2014, in Ohio, a decoupling between oil and gas wells was underway and continues to this day. The number of wells coming online annually increased by 229 oil wells and 414 gas wells.

Graph showing Number of producing oil and gas wells in Ohio’s Utica Shale Basin from 2011 to Q2-2018

Figure 3. Number of producing oil and gas wells in Ohio’s Utica Shale Basin from 2011 to Q2-2018

Graph of Producing oil and gas wells as a percentage of permitted wells in Ohio’s Utica Shale Basin from 2011 to Q2-2018

Figure 4. Producing oil and gas wells as a percentage of permitted wells in Ohio’s Utica Shale Basin from 2011 to Q2-2018

Permits

The ringing in of 2014 also saw an increase in the number of producing wells as a percentage of those permitted. In 2014, the general philosophy was that the HVHF industry needed to permit roughly 5.5 oil wells or 7 gas wells to generate one producing well. Since 2014, however, this ratio has dropped to 2.2 for oil and 1.4 for gas well permits.

Put another way, the industry’s ability to avoid dry wells has increased by 13% for oil and 18% for gas per year. As of Q2-2018, viable oil wells stood at 44% of permitted wells while viable gas wells amounted to 71% of the permitted inventory (Figure 4).

Production declines

from the top-left to the bottom-right

To understand how quickly production is declining in Ohio, we compiled annual (2011-2012) and quarterly (Q1-2013 to Q2-2018) production data from 2,064 unconventional laterals.

First, we present average data for the nine oldest wells with respect to oil and gas production on a per day basis (Note: Two of the nine wells we examined, the Geatches MAH 3H and Hosey POR 6H-X laterals, only produced in 2011-2012 when data was collected on an annual basis preventing their incorporation into Figures 6 and 7 belwo). From an oil perspective, these nine wells exhibited 44% declines from year 1 to years 2-3 and 91% declines by 2018 (Figure 5). With respect to natural gas, these nine wells exhibited 34% declines from year 1 to years 2-3 and 79% declines by 2018 (Figure 5).

Figure 5. Average daily oil and gas production decline curves for the above seven hydraulically fractured laterals in Ohio’s Utica Shale Basin, 2011 to Q2-2018

Four of the nine wells demonstrated 71% declines by the second and third years and nearly 98% declines by by Q2-2018 (Figure 6). These declines lend credence to recent headlines like Fracking’s Secret Problem—Oil Wells Aren’t Producing as Much as Forecast in the January 2nd issue of The Wall Street Journal. Four of the nine wells demonstrated 49% declines by the second and third years and nearly 81% declines by Q2-2018 (Figure 7).

Figure 6. Oil production decline curves for seven hydraulically fractured laterals in Ohio’s Utica Shale Basin from 2011 to Q2-2018

Figure 7. Natural gas production decline curves for seven hydraulically fractured laterals in Ohio’s Utica Shale Basin from 2011 to Q2-2018

Fracking waste, lateral length, and water demand

from bottom-left to the top-right

An analysis of fracking’s environmental and economic impact is incomplete if it ignores waste production and disposal. In Ohio, there are 226 active Class II Salt Water Disposal (SWD) wells. Why so many?

  1. Ohio’s Class II well inventory serves as the primary receptacle for HVHF liquid waste for Pennsylvania, West Virginia, and Ohio.
  2. The Class II network is situated in a crescent shape around the state’s unconventional wells. This expands the geographic impact of HVHF to counties like Ashtabula, Trumbull, and Portage to the northeast and Washington, Athens, and Muskingum to the south (Figure 8).
Map of Ohio showing cumulative production of unconventional wells and waste disposal volume of injection wells

Figure 8. Ohio’s unconventional gas laterals and Class II salt water disposal injection wells. Weighted by cumulative production and waste disposal volumes to Q3-2018.

Disposal Rates

We graphed average per well (barrels) and cumulative (million barrels) disposal rates from Q3-2010 to Q3-2018 for these wells. The data shows an average increase of 24,822 barrels (+1.05 million gallons) per well, each year.

That’s a 51% per year increase (Figure 9).

A deeper dive into the data reveals that the top 20 most active Class II wells are accepting more waste than ever before: an astounding annual per well increase of 728,811 barrels (+30.61 million gallons) or a 230% per year increase (Figure 10). This divergence resulted in the top 20 wells disposing of 4.95 times the statewide average between Q3-2010 and Q2-2013. They disposed 13.82 times the statewide average as recently as Q3-2018 (Figure 11).

All of this means that we are putting an increasing amount of pressure on fewer and fewer wells. The trickle out, down, and up of this dynamic will foist a myriad of environmental and economic costs to areas surrounding wells. As an example, the images below are injection wells currently under construction in Brookfield, Ohio, outside Warren and minutes from the Pennsylvania border.

More concerning is the fact that areas of Ohio that are injection well hotspots, like Warren, are proposing new fracking-friendly legislation. These disturbing bills would lubricate the wheels for continued expansion of fracking waste disposal and permitting. House bills 578 and 393 and Senate Bill 165 monetize and/or commodify fracking waste by giving townships a share of the revenue. Such bills “…would only incentivize communities to encourage more waste to come into their existing inventory of Class II… wells, creating yet another race to the bottom.” Co-sponsors of the bills include Democratic Reps. Michael O’Brien, Glenn Holms, John Patterson, and Craig Riefel.

Lateral Lengths

The above trends reflect an equally disturbing trend in lateral length. Ohio’s unconventional laterals are growing at a rate of 9.1 to 15.6%, depending on whether you buy that this trend is linear or exponential (Figure 12). This author believes the trend is exponential for the foreseeable future. Furthermore, it’s likely that “super laterals” in excess of 3-3.5 miles will have a profound impact on the trend. (See The Freshwater and Liquid Waste Impact of Unconventional Oil and Gas in Ohio and West Virginia.)

This lateral length increase substantially increases water demand per lateral. It also impacts Class II well disposal rates. The increase accounts for 76% of the former and 88% of the latter when graphed against each other (Figure 13).

Figure 12. Ohio Utica unconventional lateral length from Q3-2010 to Q4-2018

Figure 13. Ohio Utica unconventional water demand and Class II SWD injection well disposal volumes vs lateral length from Q3-2010 to Q4-2018.

Conclusion

This relationship between production, resource demand, and waste disposal rates should disturb policymakers, citizens, and the industry. One way to this problem is to more holistically price resource utilization (or stop oil and gas development entirely).

Unfortunately, states like Ohio are practically giving water away to the industry.

Politicians are constructing legislation that would unleash injection well expansion. This would allow disposal to proceed at rates that don’t address supply-side concerns. It’s startling that an industry and political landscape that puts such a premium on “market forces” is unwilling to address these trends with market mechanisms.

We will continue to monitor these trends and hope to spread these insights to states like Oklahoma and Texas in the future.

By Ted Auch, Great Lakes Program Coordinator, FracTracker Alliance – with invaluable data compilation assistance from Gary Allison


Data Downloads

FracTracker is a proponent of data transparency, and so we often share the data we use to construct our maps analyses. Click on the links below to download the data associated with the present analysis:

  • OH Utica laterals

    Ohio’s Utica HVHF laterals as of December 2018 in length (feet) (zip file)
  • Wastewater disposal volumes

    Inventory of volumes disposed on a quarterly basis from 2010 to Q3-2018 for all 223 active Class II Salt Water Disposal (SWD) Injection wells in Ohio (zip file)
Photo by Liz Hafalia, The Chronicle

Governor Brown’s Climate Summit Heats up Political Climate

Overview

California has become a battleground for real climate action. The state Governor, Jerry Brown prides himself in his own climate leadership, and California has pushed EU nations and countries worldwide to take climate change seriously. As a final tribute to his own tenure as a term-limited governor, Brown has organized and hosted a Global Climate Action Summit, September 12-14th. The summit convenes an international invitation list of “climate leaders” to, in their words:

“Take Ambition to the Next Level.” It will be a moment to celebrate the extraordinary achievements of states, regions, cities, companies, investors and citizens with respect to climate action. It will also be a launchpad for deeper worldwide commitments and accelerated action from countries—supported by all sectors of society—that can put the globe on track to prevent dangerous climate change and realize the historic Paris Agreement.

Meanwhile, frontline communities, community organizers, and grassroots organizations contest the perspective that real change has been made. While investors and green capitalists celebrate, frontline communities fight daily for clean air and water. In solidarity with and led by frontline communities, activists have protested the summit, in an attempt to hold policy makers accountable to those most affected by the fossil fuel industry.

Rise for Climate, Jobs, and Justice

One quarter of a million people worldwide, and well over 30,000 in San Francisco hit the streets during the Rise for Climate last Saturday, September 8th. With over 900 actions taking place simultaneously people worldwide demanded real climate action from their local leaders. FracTracker Alliance staff helped coordinate and participated in events nationwide.

In San Francisco, the march was led by members of the Indigenous community, making up the Indigenous Bloc, on the frontlines of the action. The day officially started with prayers from Indigenous leaders and a moment of silence for Indigenous Peoples that have been most harmed by the effects of climate change. Dozens of various other movements followed the Indigenous Bloc in a parade of support. FracTracker took the opportunity to document this monumental event, and photos from the march are shown below.

March Photos

For California and international “climate leaders” in attendance, Rise kicked off a long week of climate action culminating with the Global Action Climate Summit. The week is full of activities geared towards movement building, including the Solidarity to Solutions Summit (#sol2sol) by It Takes Roots; Women’s Assembly for Climate Justice, hosted by Women’s Earth and Climate Action Network; and mass actions including a march and occupation of the Global Climate Action Summit!

SB100

To mark such a momentous movement, the Brown administration signed a new bill into law, SB100. The new law, authored by Kevin De León (D-Los Angeles), pledges that all of California’s electricity will come from clean power sources by 2045. Brown said, “California is committed to doing whatever is necessary to meet the existential threat of climate change.” This is the most ambitious state climate policy in the U.S. The legislation barely passed the state Legislature after nearly two years of debate, with opponents arguing that it would lead to higher electric bills for all Californians.

Opposition from Eco-Activists

In opposition to the feel-good, pat-yourself-on-the-back feelings from delegates at the summit, frontline communities and activists respond that the SB100 legislation does nothing to stop harms to frontline communities caused by extraction and the supply side of the fossil fuel economy. The Against Climate Capitalism campaign is a coalition of Diablo Rising Tide teamed up with Idle No More SF Bay, the Ruckus Society, It Takes Roots, Indigenous Environmental Network and the Brown’s Last Chance. Members of the coalition have been outspoken proponents organizing in support of real climate leadership. The coalition is pushing for Governor Jerry Brown and the California legislature to end the extraction of new fossil fuels in California. The green groups making up these larger coalition networks encompass a broad range research and advocacy groups, from international groups like Greenpeace to local grassroots movements from Los Angeles and California’s Central Valley. FracTracker Alliance is also a campaign member.

The goal of the campaign is to keep fossil fuels in the ground, and supports a just transition from a fossil fuel economy to clean energy sources. A petition to pressure California Governor Jerry Brown to end fossil fuel extraction can be found on their website. The California legislature and the Brown administration has consistently failed to address the impacts of extraction in its own backyard. While frontline communities are suffering, the Brown administration continues to take the easy way out with future legislation such as SB100, which does nothing to address the environmental justice spector of actual oil drilling and production. In response to SB100, the campaign has issued response:

  • Governor Brown has consistently failed to address the supply side of oil and the drilling in California, which is an indispensable step to avoid the worst effects of climate destruction.
  • Some 5.4 million Californians live within a mile of at least one oil or gas well, and this includes hundreds of thousands of children. Many suffer illnesses from toxic exposure and cannot wait for action.
  • Brown’s failure to act on this issue is a massive moral failure from which no bill signing can distract. Despite his signing of an important and historical bill he did nothing to draft or support, Governor Brown can expect to be greeted with energetic and committed protest at the Global Climate Action summit this week.

With these poignant criticisms, it begs the question; how can Governor Jerry Brown continue to ignore the actual cause of climate change? Brown has passed legislation ensuring that everyday Californians will bear the costs for clean energy utilities, but has done nothing to hold accountable the actual culprits responsible for climate change, the oil and gas corporations extracting the 5.7 million barrels of oil per year from California soil.


By Kyle Ferrar, Western Program Coordinator

Cover photo: Brown’s Las Change Billboard. Photo by Liz Hafalia, The Chronicle

Behind in the Game Feature Image: Wind and farm. Creative Commons license.

Missouri’s clean energy is behind in the game, but at least they’re trying

Talking about fracking all day, every day, can be a bit of a downer. Here at FracTracker, we find hope in the advances of clean energy across the country and around the world. This time around, let’s see how Missouri’s clean energy sector is fairing. Long story short – while it seems their clean energy is a bit behind in the game, at least they are trying.

Background

The role of clean energy in Missouri’s economy is on the rise: Clean energy already supports 55,251 jobs, and the sector grew by 5.3 % over 2015-2016. This rate is over three times faster than overall jobs in Missouri. And in 2017, St. Louis approved a measure to transition to 100% clean, renewable energy by 2035, making it one of the largest cities to do so. St. Louis’ decision also puts it squarely in line with efforts from other cities to take the lead on renewable energy, especially in the face of larger federal inaction.

Clean Energy Progress in Missouri

In collaboration with our partners at Environmental Entrepreneurs (E2), FracTracker Alliance produced a series of maps investigating current clean energy businesses and sites where renewable energy is and can be generated. They aim to describe Missouri’s clean energy economy – and how much room it has to grow. Here is a sneak peak at some of these maps, below:

Map 1. Clean Energy Electric Generation

View map fullscreen | How FracTracker maps work

Map 1, above, shows clean renewable energy generation in Missouri. Solar and wind are the most dominant forms of renewable energy in Missouri. Missouri’s clean energy generating capacity is highest in the northwest corner of the state, where several large wind-energy projects are located. The state has 6 wind farms in this region including the newly-announced 100 MW Hawthorne Wind Farm and 49 MW High Prairie Wind Farm. In total, Missouri produces 1,000 MW of wind energy from about 500 turbines. Solar power is more dominant across the rest of the state, especially with schools’ solar energy generation around Kansas City and St. Louis and solar farms throughout the rest of the state, including Pulaski, Macon, and Bates counties. All in all, about 702 megawatts of wind and solar capacity are installed currently, with another 458 megawatts currently proposed to be built.

Map 2. Clean Energy Generation Potential

View map fullscreen | How FracTracker maps work

However, much more potential remains to be tapped as shown in Map 2, above. This holds true across solar, wind, and other renewable energy sources – particularly in the southwest corner of the state, where solar energy potential is the highest.

Missouri has up to 275,000 MW of wind potential energy, and these maps of energy potential show that overall, approximately 75% of the state has above-average potential for solar power. This is an important statistic since coal fueled 81% of Missouri’s electricity in 2017; only two other states burned more in 2017. Also, the new addition of bidirectional natural gas flow to the Rockies Express Pipeline means stiffer competition for renewables from the natural gas market.

Map 3. Clean Energy Businesses

View map fullscreen | How FracTracker maps work

It looks like the transition to clean energy in Missouri is happening, but there is always work to be done (nerdy “energy” joke). According to the E2 Missouri Clean Jobs Report, there is a lot of room for the clean energy sector to develop.

The potential does exist for the sector to drive economic growth in the state by being a major contributor to job growth. According the Environmental Entrepreneur’s Midwest Advocate Micaela Preskill, the industry in Missouri is slated to grow another 4.5% through 2019. Recent hires in the sector show that the workforce is very ethnically diverse, with the percentage of minority new hires doubling the average state demographics. Also 14% of new hires are veterans. Map 3, above, displays over 400 businesses, including energy efficiency contractors and renewable energy installers, which cover all 34 state senate districts. Surveys indicate that 80 percent of businesses working in clean energy in Missouri employ fewer than 25 individuals, illustrating the importance of small businesses in the clean-energy sector.

With the new state policies that support the transition from fossil fuels and the growing clean energy economy, Missouri is on a path to becoming more sustainably focused. This is particularly important because of the state’s past and present reliance on coal, and the availability of natural gas. More investment of state and federal resources in the clean energy sector could provide the boost that benefits state’s health, environment and economy through new jobs and manufacturing.


By Kyle Ferrar, Western Program Coordinator

Behind in the Game Feature Image: Wind and farm. Creative Commons license.

Divestment – A Necessary Step Towards a Climate Neutral Society

By Guest Author: Austin Sachs, Director and founder of Protect and Divest

In most major social movements where there is an imbalance power, divestment has been a necessary part for progress, whether in South Africa or now in the environmental movement against fossil fuels. Yet, too often in the environmental movement, divestment is only pursued when all other options have run their course and failed. If we want a climate neutral society for generations to come, we must pursue divestment alongside all other actions – and alongside this divestment, a reinvestment into a society we want to see.

So where does this all start? Divestment begins with each of us looking into our financial accounts and seeing who we are funding with them. And that is exactly what Protect and Divest did last year. We researched the funding of the Atlantic Coast, Mountain Valley, Sabal Trail and Atlantic Sunrise pipelines to know where our money was going.

Along the entire East Coast, the TransCo Pipeline connects all these pipelines, but this infrastructure is also all connected by the same banks who are funding each and every single pipeline project. These banks range from the US banks of Wells Fargo, JP Morgan Chase, US Bank, CitiBank, and Bank of America to the International banks of the Royal Bank of Canada (RBC), Scotiabank and the Bank of Tokyo Mitsubishi UFJ. What we truly found is that no one bank is guilty alone – The entire financial industry is banking on the destruction of our beautiful home!

So where do we go if the banking industry is against a sustainable future? Well, luckily the entire industry is not against sustainability, and some heavily promote it. One of these options is Amalgamated Bank, who has promised to never invest depositor’s money into fossil fuels. Across this nation are countless credit unions doing the same for their members, who see money as a necessary tool of sustainability.

Protect and Divest has now launched our Divest the Commonwealth campaign to take our pledge one step further and move Virginia’s government funds out of fossil fuels, as well. Over $330 million dollars of the Virginia Retirement System is invested in fossil fuels. And of the stock of Duke Energy, one of the main builders of the Atlantic Coast Pipeline, 10 state pensions plans hold over $785 million in it. If the banks are guilty, so are our government pensions and funds. And it’s not like there are no sustainable options. Blackrock, the FTSE Group, and the National Resources Defense Council (NRDC) have come together to develop the FTSE ex-Fossil Fuels Index Series, a fossil fuel free index fund.

Divest the Commonwealth is working to build grassroots effort to move this money. We have started and are supporting city council resolutions from Harrisonburg, VA to Arlington, VA to Richmond, VA and are adding more weekly. Together, the cities and counties of Virginia will begin to bring about the future we want to see. Together, we will create a future we can be proud of.

Join us today and divest today! Every dollar, signature, and voice counts in making sure our money is where our mouth is. This is the way we create a world we want to live and one that we can tell our children about!


For more information visit: protectanddivest.weebly.com, or visit their Facebook page at: facebook.com/protectandivest.

Austin Sachs is the director and founder of Protect and Divest, created to build a market solution to climate change. Brought to the environmental movement by the Standing Rock crisis, Austin has worked endlessly to create a world we can all be proud within the economic and political models existing today!

US Farms and Agricultural Production near Drilling

Health vs. Power – Risking America’s Food for Energy

Over 50% of land in the United States is dedicated to agriculture. Oil and gas development, particularly hydraulic fracturing or “fracking,” is taking place near many of these farms.

Farms feed us, and unfortunately they are not protected from the impacts of fracking. Even if drilling can be done responsibly, accidents happen. In Colorado, for example, two spills occur on average per day, 15% of which result in water contamination. [1] Risking our food supply is not only a risk to our health – it’s a risk to national security.

Food Independence

Rocky Mountain Apple Orchard by Celia Roberts

Rocky Mountain apple orchard. Photo by Celia Roberts

Domestic oil and gas production has been promoted by the industry as a means to provide the U.S. with energy independence. The argument goes something like this: “We need to be a net exporter of energy so as to reduce our reliance on foreign countries for these resources, especially countries in the Middle East.” This ignores the point that for energy security we might want to keep rather than export fossil fuels.

However, energy independence and food independence are inextricably linked.

Considering that the basic human needs are clean water, food, shelter, and safety — along with energy — we need to think about self-reliance; we can’t be dependent on foreign countries for our food. The U.S. is currently a net exporter of agricultural products, and California produces 50% of the food consumed in the U.S. But what would happen if our foodsheds became contaminated?

Drilling Proximity – Why the concern?

Front Range, Colorado Working Landscape At Risk of Unconventional Oil & Gas Drilling by Rita Clagget

Front Range, Colorado working landscape at risk of unconventional oil & gas drilling. Photo by Rita Clagget

Over 58% of US agricultural market value and 74% of US farms – both conventional and organic – operate within shale basins, active shale plays, and the primary frac sand geologies.

Why is this so important? Why be concerned? Here are just a few reasons:

  1. People can be exposed to the compounds involved with oil and gas extraction through spills, emissions, and other processes. The top five health impacts associated with these chemicals are: respiratory, nervous system, birth defects, and reproductive problems, blood disorders, and cancer.[2]
  2. Rural gas gathering pipelines are unregulated; operators have no obligation to publicly report about incremental failures along the pipeline that may contaminate soil and water as long as they don’t require evacuations.[3]
  3. Oil and gas operators are exempt from certain provisions of several environmental laws designed to protect public health and safety, including the Safe Water Drinking Act, The Resource Conservation and Recovery Act, The Emergency Planning and Community Right-to-Know Act, The Clean Water Act, The Clean Air Act, and The Comprehensive Environmental Response, Compensation, and Liability Act. These exemptions, in a way, permit oil and gas operators to contaminate water supplies with chemicals from their operations, in particular hydraulic fracturing fluids and produced wastewater.[4]
  4. The gold standard of clean, chemical-free food is the USDA National Organic Program Standards, as governed by the Organic Foods Production Act. Unfortunately, organic certification does not require testing for oil and gas chemicals in water being used in organic production. The organic standard is satisfied as long as state, water, and food safety agencies deem the water safe. To our knowledge these agencies do not test for oil and gas chemicals.[5]
  5. Based on available data spills occur regularly. Recent research has identified that the mixture of chemicals from fracking fluid and produced wastewater interact in a way that can lead to soil accumulation of these chemicals. Potentially, then, the chemicals may be absorbed by plants.[6] Fifteen chemicals often used in fracking have been identified as toxic, persistent and fast-traveling.[7] Some farms – such as those in Southern California – are being irrigated with produced water from oil and gas operations. Additionally, every single farm in the San Jaoquin Valley is within eight miles of oil and gas operations.[8]
  6. There is significant Competition for water between natural gas production and agriculture. This includes growing commodity crops for energy, such as ethanol. Natural gas operations result in removing water quantity available for agriculture, and changing the water quality, which affects the agricultural product. In drought stricken areas, water scarcity is already an issue. In addition, extreme heat as a result of climate change is putting more stress on farmers operating in already depleted watersheds. Layered on all of this is the growing realization that precipitation regimes are gradually – and in many places dramatically – transitioning from many smaller and more predictable events to fewer, more intense, and less predictable rain and snow events which is are harder for the landscape to capture, process, and store for agricultural and/or other uses.
  7. Operating costs: Farmers are already operating under razor- thin margins, with the cost of inputs continually increasing and the resilience of the soils and watersheds they rely upon coming into question with unconventional oil and gas’ expansion across the Midwest and Great Plains.

Public Lands

Over 45% of lands in the Western United States are owned by the federal government. Opening up public lands—by the Bureau of Land Management, United State Forest Service in particular—is controversial on multiple levels. As it relates to food security and independence, the issue often missed is that many headwaters to prime farmland reside on federal lands, along with the majority of cattle grazing.

There isn’t enough private land in the West for oil and gas operators to reach their production goals. They have to drill on public lands in order to scale up production and develop an export market for domestic natural gas. This means that public lands, taxpayer funded public lands, could potentially be used to irreparably harm prime agricultural and grazing lands (foodsheds). More alarming, is that the Trump Administration is focused on unfettered development, extraction and distribution of natural gas resources, including opening up public lands to oil and gas leasing and gutting regulations that protect us from pollution and public health risks.

The map we have developed shows that many of the largest farms in the West are surrounded by public lands. Sixty-percent of Colorado farms are surrounded by public lands, which are within shale basins or active shale plays.  Four of the top natural gas producing counties in Colorado are also four of the top agricultural producing counties: Weld, Mesa, Montezuma, and LaPlata counties. The third, fifth, sixth, eighth and tenth agricultural producing counties in the State are surrounded by public lands within shale basins, respectively,: Larimer, Delta, El Paso, Montrose and Douglas counties. The 6,325 farms in these counties represent 17% of all Colorado farms, and 29% (nearly half) of Colorado at-risk farms for being surrounded by public lands and within shale basins.

Colorado: Public lands surround majority of farms.

Colorado: Public lands surround majority of farms.

Colorado: zoom into 3 of top agricultural producing and natural gas producing counties in Colorado, illustrating how they are surrounded by public lands.

Colorado: Map zoomed into 3 of top agricultural producing and natural gas producing counties in Colorado, illustrating how they are surrounded by public lands.

food-table

These farms, headwaters, and public lands need to be protected if we are to maintain food independence and security. Producing potentially contaminated food is neither food independence, nor food security.

Policy Implications

Why should policy makers and health insurers care? Chronic and terminal illnesses are on the rise. Healthcare costs have nowhere to go but up as long as the environment we live in, the food we eat, the water we drink, and the air we breathe continue to be polluted at such a large scale. Attempts to reduce healthcare costs by insuring all Americans will have no impact if they are all sick. The insurance model only works when there are more healthy people in the pool than unhealthy people.

Mapping Conventional & Organic U.S. Farms

Below is an interactive map showing agricultural production in the U.S. You can use the map to zoom in at the county level to understand better the type of agricultural production taking place, as well as the value of the agricultural products at the county level.

U.S. Conventional and Organic Farms and Their Productivity Near Shale Plays and Basins


View map fullscreen | How FracTracker maps work

This map excludes Alaska for a variety of reasons[9]. We include over 180 unique data points for each county across five categories: 1) Crops and Plants, 2) Economics, 3) Farms, 4) Livestock and Animals, and 5) Operators. We then break these major categories into 20 subcategories.

Table 1. Subcategories Utilized in the “US Shale Plays and Basins Along with Agricultural Productivity By County” map above

Categories Subcategories
Crops and Plants Field Crops Harvested
Fruits, Tree Nuts, Berries, Nursery and Greenhouse
Hay and Forage Crops Harvested
Seed Crops Harvested
Vegetables and Melons Harvested
Economics Buildings, Machinery and Equipment on Operation
Farm Production Expenses
Farm-Related Income and Direct Sales
Farms by Value of Sales
Market Value of Agricultural Products Sold
Farms Agricultural Chemicals Used
Farms
Farms by Size
Farms by Type of Organization
Land in Farms and Land Use
Livestock and Animals Livestock, Poultry, and Other Animals
Operators Characteristics of Farm Operators
Hired Farm Labor
Primary Occupation of Operator
Tenure of Farm Operators and Farm Operations

Analysis Results

In total, there are 589,922 and 1,369,961 farms in US Shale Plays and Basins, respectively, averaging between 589 and 646 acres in size and spread across 2,146 counties (Figure 1). These farm counties produce roughly $87.31- 218.32 billion in agricultural products each year with the highest value per-acre being the Monterey and Monterey-Temblor Formations of Southern California, the Niobrara Formation in North Central Colorado, Eastern Barnett in North Central Texas, the Antrim in Michigan, and the Northern Appalachian Shale Basins of Pennsylvania, New York, and Ohio (Figures 2a/2b). Roughly 52% of all agricultural revenue generated in US Shale Play counties comes from livestock, poultry, and derivative products vs. a national average of 44% (Figure 3).

Put another way, the value of US Shale Basin agricultural infrastructure would rank as the 9th largest economy worldwide, between Italy and Brazil.

Family-owned farms are at the greatest risk. While corporations tend to own larger acreage farms, only 8.2% of US farms are owned by corporations. This figure is nearly halved in US Shale Plays, with 4.5% of farms owned by corporations, or 95% owned by families or individuals.


Figures 1, 2a, 2b, and 3 above show the number of farms near drilling, as well as variations in the value of agricultural products produced in those regions.

Risk vs. Benefits in CO

Oil and gas activity is regulated on a somewhat patchwork basis, but generally it is overseen at the state level subject to federal laws. New York and Maryland are the only two states that ban fracking, while communities around the country have invoked zoning laws to ban fracking or impose moratoriums on a smaller scale. However, in Colorado, the Colorado Oil and Gas Conservation Commission has exclusive jurisdiction over oil and gas regulation in the State. There, fracking bans imposed by local communities, with a large number of farms, have been found to be unconstitutional by the Colorado Supreme Court.

Weld County is Colorado’s leading producer of cattle, grain, and sugar beets. Weld is the richest agricultural county in the U.S. east of the Rocky Mountains, the fourth richest overall nationally, and the largest natural gas producer in CO. Compare this to the North Fork Valley on the Western Slope of CO, which is home to the largest concentration of organic farms in the state, one of two viticultural (wine making) areas in the state, and has a reputation for being a farm-to-table hub. Delta County, in which the North Fork Valley is located, is known for its sustainable agriculture initiatives. Uniquely, Delta County is one of the few agricultural areas in the country so far untouched by the fracking boom – but that could all change. The Bureau of Land Management is considering opening 95% of BLM lands and minerals within and surrounding Delta County to oil and gas leasing.

Protecting Food Supplies

Oil and gas extraction is taking place on both private and public lands across the country. Prime and unique agricultural lands need to be protected from these industrial activities if we are to maintain food independence and ensure a healthy food supply. As demonstrated by the map above, agricultural communities in active shale plays may already in trouble. To prevent further damages on day-to-day food staples, it is imperative to increase awareness about this consequential issue.

How can people trust that the food they eat is safe to consume? Families trust farmers, food brands, school and office cafeterias, and restaurants to the extent that the food supply chain is regulated and maintained. If most of the food produced in the U.S. is within active shale plays, and the water/soil is not being tested for oil and gas chemicals, that supply chain is at risk. The secure production of our food – via clean air, water, and soil – is tantamount to lasting food independence.

Farming Testimonials

I am the leader of Slow Food Western Slope, which functions as a chapter of Slow Food USA. We envision a world in which all people can eat food that is good for them, good for the people who grow it and good for the planet: good, clean and fair food for all. Our chapter promotes and supports over 70 farmers, orchardists, ranchers, agricultural businesses and winemakers of the North Fork Valley – all of which depend on good and clean water, air and soil. With its industrial footprint and potential damage to landscape, air, water, soil and human health, extraction industries have no place in the future of the North Fork Valley. We can build a new economy around clean food, outdoor recreation, healthy lifestyle and small nonthreatening businesses.

Agricultural land is much more valuable in the long-run than the short-term gains promised from oil and gas extraction… As farmers we are attuned to crop, soil, and water conditions especially as a result of weather. If it’s too hot, too dry, too wet, too cold then there is no food. Natural gas extraction is an undeniable factor in changing climate and is incompatible with the practice of sustainable agriculture.


References and More Information

FracTracker Alliance raised awareness of this issue in 2015 when it mapped the proximity of organic farms to oil and gas wells. In that mapping analysis, it was discovered that 11% of organic farms are within ½ mile of oil and gas development. Did you know that less than 1% of agricultural lands in the United States are used to grow crops without chemicals, and that 42% of those organic farms produce food for human consumption?

Organic Farms Near Drilling Activity in the U.S.

View map fullscreen | How FracTracker maps work

This research prompted the question of what about the other 99% of agricultural lands used to grow crops and raise livestock utilizing chemicals and other conventional methods in the United States. The majority of dairy, grains, beef, poultry, fruits, vegetables, and animal feed for livestock are produced on conventional farms. Where are they located, and do we know how they are being impacted by oil and gas development?

The majority of the US population lives in urban centers and is disconnected from the American farm, including how and where food is produced. People trust their farmer, food brands, school and office cafeterias, and restaurants to the extent that they trust their supply chain, and to the extent that the farmers trust their water supply and soils. If the majority of the food produced in the U.S. is within active shale plays, and the water and soil are not being tested for oil and gas chemicals, this research questions how people can trust that their food is safe to consume. If we are to maintain our food independence and health, not only do consumers need to understand that the food supply is at risk in order to exercise their rights to protect it at the local, state, and federal levels, but policymakers need to be informed with this data to make better decisions around oil and gas development regulations and development proposals that impact our foodsheds.

References/Footnotes:

  1. 2015 Colorado Oil and Gas Toxic Release Tracker, Center for Western Priorities
  2. COMPENDIUM OF SCIENTIFIC, MEDICAL, AND MEDIA FINDINGS DEMONSTRATING RISKS AND HARMS OF FRACKING (UNCONVENTIONAL GAS AND OIL EXTRACTION), Fourth Edition, Physicians for Social Responsibility, November 17, 2016; Colborn T, Kwiatkowski C, Schultz K, Bachran M., Natural gas operations from a public health perspective, Human and Ecological Risk Assessment, 2011 17(5):1039-1056; Fracking Fumes: Air Pollution from Hydraulic Fracturing Threatens Public Health and Communities, NRDC Issue Brief, December 2014
  3. 49 CFR §192
  4. Brady, William J., Hydraulic Fracturing Regulation in the United States: The Laissez-Faire Approach of the Federal Government and Varying State Regulations, Vermont Journal of Environmental Law, Vol. 14 2012
  5. National Organic Program Standards, 7 CFR Part 205. Organic Foods Production Act, 7 U.S.C. Ch. 94
  6. Molly C. McLaughlin, Thomas Borch,, and Jens Blotevogel, Spills of Hydraulic Fracturing Chemicals on Agricultural Topsoil: Biodegradation, Sorption, and Co-contaminant Interactions, Environ. Sci. Technol. 2016, 50, 6071−6078
  7. AirWaterGas Sustainability Research Network, November 2016.
  8. Matthew Heberger and Kristina Donnelly, OIL, FOOD, AND WATER: Challenges and Opportunities for California Agriculture, Pacific Institute, December 2015.
  9. Issues with Alaskan agricultural data include incomplete reporting and large degrees of uncertainty in the data relative to the Lower 48.

By Natasha Léger, Interim Executive Director, Citizens for a Healthy Community and Ted Auch, Great Lakes Program Director, FracTracker Alliance