Drilling rig in Ohio, December 2015

Oil and Gas Drilling 101


Oil and Gas Drilling 101

While conventional oil and gas drilling (O&G) for commercial purposes has been occurring in the United States for over 150 years, recent processes utilize a variety of unconventional extraction techniques such as fracking to improve the return of hydrocarbons to the surface.

According to the U.S. Environmental Protection Agency (EPA):

Natural gas is a fossil fuel formed when layers of buried plants and animals are exposed to intense heat and pressure over thousands of years. The energy that the plants and animals originally obtained from the sun is stored in the form of carbon in natural gas. Natural gas is combusted to generate electricity, enabling this stored energy to be transformed into usable power.

Oil

As with other fossil fuels, oil is found in underground reservoirs. It is the end product of the decomposition of organic materials that have been subjected to geologic heat and pressure over millions of years.

Natural Gas

When first obtained from the ground, natural gas is composed of primarily methane with other alkanes typically mixed in, and possibly also carbon dioxide, nitrogen, and hydrogen sulfide. Shale gas, specifically, is natural gas trapped within shale geologic formations (a type of sedimentary rock).

Both oil and natural gas are considered non-renewable resources since they cannot be replenished on a human timeframe.

Current Methods of Extraction

Recently, oil and gas companies have been extracting these resources from unconventional reservoirs, such as shale formations. These “reservoirs” of gas do not connote underground lagoons; in fact, shale gas is held in tiny bubbles in the rock, and requires a combination of technologies to liberate that gas. The process typically involves directionally drilling wells, not just vertically, and often using additional techniques to “stimulate” the reservoir to increase production from the new or existing wells.

Hydraulic fracturing or “fracking” is one form of stimulation used to facilitate the production of underground resources such as oil and natural gas wells, geothermal energy, and water. Another form of well stimulation is called acidizing and will be discussed later.

For unconventional O&G drilling, the process begins with vertical drilling, and then turns horizontal (often at depths greater than 6,800 feet and below) traveling 6,300-6,400 lateral feet.

Explore this process by watching the following TED-Ed video by Mia Nacamulli, animation by Sharon Colman:


How many wells have been stimulated (e.g. fracked) in the U.S.?

This question is a common one that we receive here at FracTracker. Unfortunately, the answer is simple and not so simple at the same time.

Short Answer: No one knows – exactly.

Long Answer: We estimate that there are ~1.3 million active oil and gas facilities in the United States (map below). How many are being unconventionally drilled – utilizing technologies such as directional drilling, acidizing, or hydraulic fracturing – is a much tougher number to determine because of serious gaps in both reporting requirements and data formats. Most of these active wells are likely receiving some sort of advanced stimulation techniques, however. This article explains the topic and caveats in further detail.

If you notice an error or omission in this section, please let us know.

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Clearing land for shale gas pipeline in PA

Resistance Mounts to Northeast Energy Direct Pipeline Across MA and NH

By Karen Edelstein, NY Program Coordinator

As the pressure to move domestic natural gas to market from sources in Pennsylvania and beyond, residents in Massachusetts have been learning about a planned project that would cross the northern portion of the state.

Gas infrastructure build-out on the radar

The proposed Kinder Morgan/Tennessee Gas Pipeline Expansion, known as the “Berkshire Pipeline,” or more recently as “Northeast Energy Direct,” would link existing pipeline infrastructure near the New York-Massachusetts border and Dracut, MA, north of Boston. TX-based Tennessee Gas Pipeline Co. says that the 250-mile-long, 36-inch diameter pipeline construction would temporarily create about 3000 jobs, and deliver upwards of 2.2 billion cubic feet per day of natural gas to the northeastern United States. Along the course of the proposed pipeline, 50 miles of the run would use existing Tennessee Gas Pipeline rights-of-way. Nevertheless, 129 miles of the new pipeline would be located in “greenfield” areas: locations that had previously not seen disruption by pipeline infrastructure. If approved, construction would begin in April 2017, with a targeted completion date of November 2018.

In addition to the main pipeline, the project would also include meter stations, at least two new compressor stations in Massachusetts and one in New Hampshire, and modifications to existing pipeline infrastructure. Part of a growing web of pipelines that are moving Marcellus Shale and other gas across the continent, this project would have further connections to the Spectra Energy’s Maritimes and Northeast Pipeline that goes through Maine to the Canadian Maritime provinces, to terminals on the Atlantic coast. In addition, six lateral lines off the main pipeline include:

  • Nashua Lateral (Pepperell, MA into Hollis, NH)
  • Worcester Lateral
  • Pittsfield Lateral
  • Haverhill Lateral
  • Fitchburg Lateral Extension
  • Lynnfield Lateral

Municipalities React, Resistance Mounts

The plan was announced in late January 2014. Despite the endorsements of governors in six states in the Northeast to increase the region’s supply of natural gas, more than three dozen Massachusetts towns in the path of the pipeline have passed resolutions opposing the project (map below). After the December 8, 2014 release of a substantially revised route that would run 71 miles of the pipeline through New Hampshire rather than northern Massachusetts, Granite State municipalities have also raised their voices in opposition. Residents have cited concerns about the accidental releases of gas or chemicals used in during hydraulic fracturing in general, as well as the direct impacts that the pipeline would have on sensitive wetlands, conservation lands, state parks, private properties, and other critical habitats in Massachusetts, including crossing under or over the Connecticut River. We’ve also included point locations of federally designated National Wetlands Inventory sites on or adjacent to the current and newly-described pipeline routes, as well as other environmental assets such as waterways, lakes, state parks and forest lands.

Proposed Pipeline Paths and Opposition Resolutions


For a full-screen view of this map, with a legend, click here.

Currently, approximately 37% of residents contacted by Tennessee Gas for the pipeline rights-of-way have agreed to surveys of their lands. Massachusetts towns likely to be in the path of the pipeline include Richmond, Lenox, Pittsfield, and Dalton. In addition, Hancock, Hinsdale, Peru, Savoy, Stockbridge, Washington, West Stockbridge and Windsor counties are expected to be in the path.

According to the US Energy Information Administration (EIA), 50% of New England’s electric power supply comes from natural gas, with a mere 9.3% sourced from renewable resources. Opponents of the project, such as the citizen group No Fracked Gas in Mass, are pushing for more resources and policy-planning to focus on alternative, renewable energy, rather than enhancing fossil fuel dependencies.

Additional concern has come from the Massachusetts Land Trust Coalition (MLTC). MLTC sent a letter to Governor Deval Patrick expressing their alarm that while Tennessee Gas has asserted that they will be using existing gas pipeline rights-of-way, landowners across the northern tier of Massachusetts have received letters from the gas company asking for permission to use their land. Were the pipeline to go this route, MLTC says, it would also run directly through public- and privately-owned stretches of conservation land.

In early August 2014, Massachusetts Governor Deval Patrick indicated to opponents of the pipeline his growing skepticism about the plan. A few days later, the New England States Committee on Electricity filed for an extension of a schedule looking at a proposal that would levy new tariffs on electric customers in order to finance projects such as this pipeline.

Additional Resources

NOTE: This article was updated on December 27, 2014, to include information about the revised pipeline route that we were not aware of when this article was originally released earlier in the month.

Updated PA Data and Trends

By Matt Kelso, Manager of Data and Technology

The FracTracker Alliance periodically takes a deeper look into the unconventional oil and gas data in Pennsylvania, in order to provide updates for some frequently requested statistics on the industry. Here we provide updated PA data and trends as of December 4, 2014. Since unconventional drilling began in the Commonwealth permits have been issued to drill 15,573 unconventional wells, according to data from the Pennsylvania DEP. Many – 8,696 (56%) – of those permits have actually been drilled. In terms of violations, there have been 5,983 entries on the statewide Compliance Report for unconventional wells throughout the state, which are attributed to 1,790 distinct wells.

Pennsylvania Shale Viewer Map


Please click here for the full screen version, with additional map tools and controls.

Additional Stats

The number of permits, wells, and violations vary significantly from month to month, but each category is well off of its peak. The largest number of unconventional permits issued in a single month was 402, which was in December 2010, more than twice as many as were issued last month. In that year, there were six months with 300 or more permits issued, whereas there has only been one such month to date in 2014.

PA unconventional O&G activity per month from Jan. 2009 to Nov. 2014.  Source:  PADEP

PA unconventional O&G activity per month from Jan. 2009 to Nov. 2014. Source: PADEP

The 210 wells spudded (drilled) in August 2011 represents the high water mark, and is more than two times the amount of wells drilled last month. In the 28 months between March 2010 and June 2012, the industry failed to spud 100 wells only once, reaching 98 in April 2011. In the first 11 months of 2014, that plateau was missed three times, with a low of 58 spuds in February.

There was a significant spike in violations appearing on the compliance report from December 2009 through August 2011. More than 100 violations were issued in 17 out of 21 months, including 196 in March 2010. The number of violations issued has slowed down considerably since then, with November 2014 being the 34th straight month with fewer than 100 violations. Only 14 violations were issued in June 2014.

Violations per Well (VpW)

Unconventional violations per well by county in PA, showing the 10 counties with the largest number of violations.  Counties with an above average Violations per Well (VpW) score are highlighted in red.

Unconventional violations per well by county in PA, showing the 10 counties with the largest number of violations. Counties with an above average Violations per Well (VpW) score are highlighted in red.

We often ask whether drilling is more problematic in some areas than others. Since the number of wells varies depending upon the location, we must approach this question by looking at the number of violations issued per well drilled (VpW). However, there is an important caveat to consider. Put simply, what is a violation? The Pennsylvania DEP publishes a Compliance Report for unconventional wells, which has 5,983 incidents listed from 2000 through December 4, 2014. However, it used to be common for the DEP to lump several incidents into the same Violation ID number, although this is not the case for more recent infractions. When the DEP counts violations issued, they look at the total number of unique Violation ID numbers that have been issued, not the total number of incidents on the report. Here, we include the more inclusive list of items on the compliance report.

Of the 10 counties with the largest number of violations issued, only 3 counties have a violations per well mark below the statewide average. Notably, each of those three counties are located in Southwestern Pennsylvania. It is unclear from these numbers what is going on in Potter County, but clearly there is a significant problem in that location – with almost three violations issued per well drilled, Potter County has a VpW score 4.3 times the statewide average.

Operator Trends

Before we look at the operators with the most violations, there is an additional caveat to consider: It is relatively common for wells to change hands over their operational lifetimes. This characteristic could be due to one company buying another out, or simply transferring some of their assets. Still, wells changing from one operator to another is a normal aspect of the oil and gas industry. Such a fact matters for this analysis because while violations issued always stick with the responsible party in the DEP data, the name of the operator changes on the Spud Report to the current operator.

Unconventional violations per well by operator in PA, showing the 10 operators with the largest number of violations.  Operators with an above average Violations per Well (VpW) score are highlighted in red.

Unconventional violations per well by operator in PA, showing the 10 operators with the largest number of violations. Operators with an above average Violations per Well (VpW) score are highlighted in red.

Because of how these datasets are maintained, we see that East Resources has 261 violations for zero wells, which is of course an impossibly large ratio. That is because East sold off its stake in the Marcellus to Royal Dutch Shell, which does business as SWEPI in Pennsylvania. SWEPI, by the way, is 13th on the list of violations in its own right, with 154 violations for 675 wells, resulting in a 0.23 VpW. If the legacy violations for the old East wells were included, the result would be a 0.61 ViW score, which is almost three times as high, but still below the statewide average. FracTracker doesn’t do the analysis that way, both because it is unfair to the new operator to charge them with violations that they had nothing to do with, as well as being nearly impossible to keep track of the various transactions that result in wells changing hands over the years.


Cover image by Pete Stern, 2013.

Oil Trains Passing Through Pittsburgh

A Pilot Train Count

By Samantha Malone – Manager of Education, Communications, & Partnerships

FracTracker Alliance and the CREATE Lab at CMU recently launched a pilot project to track the transportation of volatile crude oil as it passes through Pennsylvania and specifically the Pittsburgh region.

For a bit of background, we were specifically interested in how many cars marked with either a 1075 or 1267 placard (shown below). 1075 placards designate cars that are carrying or recently carried (not yet cleaned out) butane, LPG, propane, or a flammable gas. Alternatively, 1267 placards are warning signs for cars carrying petroleum crude oil or some sort of flammable liquid.

DOT Placard 1075 Butane, LPG, Propane, Flammable Gas, Class 2

DOT Placard 1075 Butane, LPG, Propane, Flammable Gas, Class 2

D.O.T. Placard 1267 Petroleum Crude Oil, Flammable Liquid, Class 3

DOT Placard 1267 Petroleum Crude Oil, Flammable Liquid, Class 3

Oil Train Counts

Over 11 hours we counted 28 trains, 10 of which contained at least one car with the 1075 or 1267 placard. Most of these trains were quite long, with 28 trains hauling 2,874 cars.

The largest inbound train with the 1267 placard that we identified and estimated to be full was hauling 97 crude tankers. If they were indeed full, this train carried between 2.5 and 3.4 million gallons of crude oil. As a point of reference, the Lac-Mégantic derailment that occurred in 2013 in Quebec and killed 47 people was only carrying 74 Bakken crude cars.

Of the 2,874 cars that we counted, 360 were carrying some sort of oil product. Of those oil cars, approximately 70% were of the 1267 variety (Figure 1).

Ratio of oil cars to total over 11 hours

Figure 1. Ratio of oil cars to total documented by volunteers in Pittsburgh, PA over 11 hours

Speed Matters

The fastest oil train that we observed was going approximately 50 MPH. This train was likely full, based on load estimates and the direction it was traveling. This speed violates a voluntary compliance that crude trains run <40 MPH through high-threat areas. A train that derailed in Lynchburg, VA in April was traveling just 24 mph. Our counting location would likely qualify as a high-threat area, as we were near Neville Island, relatively close to ALCOSAN and the City of Pittsburgh, and just a few yards from the Ohio River and residential homes.

While Pittsburgh certainly has its share of oil trains, concern over the dangers that these trains pose to towns along its tracks extends far beyond the Pittsburgh area. Groups as far as California have gathered together to monitor train traffic. We hope that by tracking and monitoring the number of oil trains over time, we can begin to understand the risks that these trains pose should an incident occur.

The Data Collection Process

 

Here is how we collected the above data: On October 21st our staff, interns, and generous volunteers spent designated shifts observing the passing of trains and the contents of their cars between about 7:30 AM and 6:30 PM. Under the cover of a pop-up shelter, teams of at least three participants videotaped trains as they passed in either direction, counted and recorded the number of cars that they carried, and most importantly identified and counted specific placards that labeled individual cars as oil-carrying.

Many thanks to the groups who helped with this pilot count: volunteer citizens, Group Against Smog and Pollution, Three Rivers Waterkeeper, Women for a Healthy Environment, our interns from Pitt and Duquesne, and CMU staff.

The CREATE Lab then reviewed and analyzed the collected information and video feed. You can take a look at some of the high-resolution video feed they were able to collect with their BreatheCam. If you have specific questions about the train counting protocol or would like to set up one of your own, please contact us.

About Us

FracTracker Alliance is a non-profit with an office in the Pittsburgh area whose mission is to share maps, data, and analyses to communicate impacts of the global oil and gas industry and to inform actions that positively shape our energy future. www.fractracker.org

The Community Robotics, Education and Technology Empowerment Lab (CREATE Lab) explores socially meaningful innovation and deployment of robotic technologies and is based out of Carnegie Mellon University. www.cmucreatelab.org

Hydraulic fracturing, stimulations, & oil & gas drilling unjustly burden Hispanic & non-white students

By Kyle Ferrar, CA Program Coordinator, FracTracker Alliance

As my first year in The Bay Area of California comes to a conclusion and the summer once again turns into fall I realize how much more this time of year meant for me living on the east coast. For us lucky ducks living in the Bay Area, fall is perpetual. With the California drought seasons blur together, but back home in Pennsylvania and New York, fall marks a much appreciated relief from 90°F+ days. Regardless of where you live certain fall activities are universal, including hockey, postseason baseball, football, and most importantly for kids – going back to school.

In California alone, almost 6.24 million students from kindergarten to 12th grade are enrolled and attend classes at one of the 10,366 state “campuses.” State-recognized schools range in size from under a dozen students to a maximum 2013/2014 enrollment of 5,229. When so many children are together in one space, they share much more than just the scholarship, social development, and the occasional but inevitable flu virus. They share the same environmental media (air, water, soil) and are therefore exposed to the same environmental contaminants.

To understand who among this vulnerable population is subject to potential health impacts, the FracTracker Alliance has put together a report analyzing the demographic characteristics of schools located near oil and gas extraction activity. An interactive map of the data that was analyzed is shown below, as are the points of the report. The full report can be found here:

 Disproportionate Burdens for Hispanic and Non-White Students in California

and here in Spanish:

Las Estimulaciones por Fracturación Hidráulica y la Perforación Petrolífera Cerca de las Escuelas y dentro de los Distritos Escolares de California son una Carga Desproporcionada para los Estudiantes Hispanos y Estudiantes No Blancos.

Fracked well near elementary school

Sequoia Elementary School located in Shafter, CA.

In the background, less than 1,200 feet from the school is
an oil well (API 403043765) that was hydraulically fractured.

Key Findings of School Analysis:

  • There are 485 active/new oil and gas wells within 1 mile of a school and 177 active/new oil and gas wells within 0.5 miles of a school.
  • There are 352,784 students who attend school within 1 mile of an oil or gas well, and 121,903 student who attend school within 0.5 miles of an oil or gas well.
  • There are 78 stimulated wells drilled within 1 mile of a school and 14 stimulated wells drilled within 0.5 miles of a school.
  • There are 61,612 students who attend school within 1 mile of a stimulated oil or gas well, and 12,362 students who attend school within 0.5 miles of a stimulated oil or gas well.
  • School Districts with greater Hispanic and non-white student enrollment are more likely to contain more oil and gas drilling and stimulation.
  • Schools campuses with greater Hispanic and non-white student enrollment are more likely to be closer to more oil and gas drilling and stimulation.
  • Students attending school within 1 mile of oil and gas wells are predominantly non-white (79.6%), and 60.3% are Hispanic.
  • The top 11 school districts with the highest well counts are located the San Joaquin Valley with 10 districts in Kern County and the other just north of Kern in Fresno County.
  • The two districts with the highest well counts are in Kern County; Taft Union High School District, host to 33,155 oil and gas wells, and Kern Union High School District, host to 19,800 oil and gas wells.
  • Of the schools with the most wells within a 1 mile radius, 8/10 are located in Los Angeles County.

Report Map

The interactive map below allows the user to compare the demographical profiles of school districts with oil and gas drilling and stimulation activity. Non-white enrollment percentages of school districts are displayed in shades of blue. Overlaid with red are the relative counts of stimulated and/or non-stimulated oil and gas wells. The highest counts of wells are hosted in school districts located in the Central (San Joaquin) Valley and along California’s south coast. Geologically, these areas lay above the Monterey Shale – the 50 million year sedimentary basin producing California’s oil reserves.

The Water-Energy Nexus in Ohio, Part II

OH Utica Production, Water Usage, and Waste Disposal by County
Part II of a Multi-part Series
By Ted Auch, Great Lakes Program Coordinator, FracTracker Alliance

In this part of our ongoing “Water-Energy Nexus” series focusing on Water and Water Use, we are looking at how counties in Ohio differ between how much oil and gas are produced, as well as the amount of water used and waste produced. This analysis also highlights how the OH DNR’s initial Utica projections differ dramatically from the current state of affairs. In the first article in this series, we conducted an analysis of OH’s water-energy nexus showing that Utica wells are using an ave. of 5 million gallons/well. As lateral well lengths increase, so does water use. In this analysis we demonstrate that:

  1. Drillers have to use more water, at higher pressures, to extract the same unit of oil or gas that they did years ago,
  2. Where production is relatively high, water usage is lower,
  3. As fracking operations move to the perimeter of a marginally productive play – and smaller LLCs and MLPs become a larger component of the landscape – operators are finding minimal returns on $6-8 million in well pad development costs,
  4. Market forces and Muskingum Watershed Conservancy District (MWCD) policy has allowed industry to exploit OH’s freshwater resources at bargain basement prices relative to commonly agreed upon water pricing schemes.

At current prices1, the shale gas industry is allocating < 0.27% of total well pad costs to current – and growing – freshwater requirements. It stands to reason that this multi-part series could be a jumping off point for a more holistic discussion of how we price our “endless” freshwater resources here in OH.

In an effort to better understand the inter-county differences in water usage, waste production, and hydrocarbon productivity across OH’s 19 Utica Shale counties we compiled a data-set for 500+ Utica wells which was previously used to look at differenced in these metrics across the state’s primary industry players. The results from Table 1 below are discussed in detail in the subsequent sections.

Table 1. Hydrocarbon production totals and per day values with top three producers in bold

County

# Wells

Total

Per Day

Oil

Gas

Brine

Production

Days

Oil

Gas

Brine

Ashland

1

0

0

23,598

102

0

0

231

Belmont

32

55,017

39,564,446

450,134

4,667

20

8,578

125

Carroll

256

3,715,771

121,812,758

2,432,022

66,935

67

2,092

58

Columbiana

26

165,316

9,759,353

189,140

6,093

20

2,178

65

Coshocton

1

949

0

23,953

66

14

0

363

Guernsey

29

726,149

7,495,066

275,617

7,060

147

1,413

49

Harrison

74

2,200,863

31,256,851

1,082,239

17,335

136

1,840

118

Jefferson

14

8,396

9,102,302

79,428

2,819

2

2,447

147

Knox

1

0

0

9,078

44

0

0

206

Mahoning

3

2,562

0

4,124

287

9

0

14

Medina

1

0

0

20,217

75

0

0

270

Monroe

12

28,683

13,077,480

165,424

2,045

22

7,348

130

Muskingum

1

18,298

89,689

14,073

455

40

197

31

Noble

39

1,326,326

18,251,742

390,791

7,731

268

3,379

267

Portage

2

2,369

75,749

10,442

245

19

168

228

Stark

1

17,271

166,592

14,285

602

29

277

24

Trumbull

8

48,802

742,164

127,222

1,320

36

566

100

Tuscarawas

1

9,219

77,234

2,117

369

25

209

6

Washington

3

18,976

372,885

67,768

368

59

1,268

192

Production

Total

It will come as no surprise to the reader that OH’s Utica oil and gas production is being led by Carroll County, followed distantly by Harrison, Noble, Belmont, Guernsey and Columbiana counties. Carroll has produced 3.7 million barrels of oil to date, while the latter have combined to produce an additional 4.5 million barrels. Carroll wells have been in production for nearly 67,000 days2, while the aforementioned county wells have been producing for 42,886 days. The remaining counties are home to 49 wells that have been in production for nearly 8,800 days or 7% of total production days in Ohio.

Combined with the state’s remaining 49 producing wells spread across 13 counties, OH’s Utica Shale has produced 8.3 million barrels of oil as well as 251,844,311 Mcf3 of natural gas and 5.4 million barrels of brine. Oil and natural gas together have an estimated value of $2.99 billion ($213 million per quarter)4 assuming average oil and natural gas prices of $96 per barrel and $8.67 per Mcf during the current period of production (2011 to Q2-2014), respectively.

Potential Revenue at Different Severance Tax Rates:

  • Current production tax, 0.5-0.8%: $19 million ($1.4 Million Per Quarter (MPQ). At this rate it would take the oil and gas industry 35 years to generate the $4.6 billion in tax revenue they proposed would be generated by 2020.
  • Proposed, 1% gas and 4% oil: At Governor Kasich’s proposed tax rate, $2.99 billion translates into $54 million ($3.9 MPQ). It would still take 21 years to return the aforementioned $4.6 billion to the state’s coffers.
  • Proposed, 5-7%: Even at the proposed rate of 5-7% by Policy Matters OH and northeastern OH Democrats, the industry would only have generated $179 million ($12.8 MPQ) to date. It would take 11 years to generate the remaining $4.42 billion in tax revenue promised by OH Oil and Gas Association’s (OOGA) partners at IHS “Energy Oil & Gas Industry Solutions” (NYSE: IHS).5

The bottom-line is that a production tax of 11-25% or more ($24-53 MPQ) would be necessary to generate the kind of tax revenue proposed by the end of 2020. This type of O&G taxation regime is employed in the states of Alaska and Oklahoma.

From an outreach and monitoring perspective, effects on air and water quality are two of the biggest gaps in our understanding of shale gas from a socioeconomic, health, and environmental perspective. Pulling out a mere 1% from any of these tax regimes would generate what we’ll call an “Environmental Monitoring Fee.” Available monitoring funds would range between $194,261 and $1.8 million ($16 million at 55%). These monies would be used to purchase 2-21 mobile air quality devices and 10-97 stream quantity/quality gauges to be deployed throughout the state’s primary shale counties to fill in the aforementioned data gaps.

Per-Day Production

On a per-day oil production basis, Belmont and Columbiana (20 barrels per day (BPD)) are overshadowed by Washington (59 BPD) and Muskingum (40 BPD) counties’ four giant Utica wells. Carroll is able to maintain such a high level of production relative to the other 15 counties by shear volume of producing wells; Noble (268 BPD), Guernsey (147 BPD), and Harrison (136 BPD) counties exceed Carroll’s production on a per-day basis. The bottom of the league table includes three oil-free wells in Ashland, Knox, and Medina, as well as seventeen <10 BPD wells in Jefferson and Mahoning counties.

With respect to natural gas, Harrison (1,840 Mcf per day (MPD)) and Guernsey counties are replaced by Monroe (7,348 MPD) and Jefferson (2,447 MPD) counties’ 26 Utica wells. The range of production rates for natural gas is represented by the king of natural gas producers, Belmont County, producing 8,578 MPD on the high end and Mahoning and Coshocton counties in addition to the aforementioned oil dry counties on the low end. Four of the five oil- or gas-dry counties produce the least amount of brine each day (BrPD). Coshocton, Medina, and Noble county Utica wells are currently generating 267-363 barrels of BrPD, with an additional seven counties generating 100-200 BrPD. Only four counties – 1.2% of OH Utica wells – are home to unconventional wells that generate ≤ 30 BrPD.

Water Usage

Freshwater is needed for the hydraulic fracturing process during well stimulation. For counties where we had compiled a respectable sample size we found that Monroe and Noble counties are home to the Utica wells requiring the greatest amount of freshwater to obtain acceptable levels of productivity (Figure 1). Monroe and Noble wells are using 10.6 and 8.8 million gallons (MGs) of water per well. Coshocton is home to a well that required 10.8 MGs, while Muskingum and Washington counties are home to wells that have utilized 10.2 and 9.5 MGs, respectively. Belmont, Guernsey, and Harrison reflect the current average state of freshwater usage by the Utica Shale industry in OH, with average requirements of 6.4, 6.9, and 7.2 MGs per well. Wells in eight other counties have used an average of 3.8 (Mahoning) to 5.4 MGs (Tuscarawas). The counties of Ashland, Knox, and Medina are home to wells requiring the least amount of freshwater in the range of 2.2-2.9 MGs. Overall freshwater demand on a per well basis is increasing by 220,500-333,300 gallons per quarter in Ohio with percent recycled water actually declining by 00.54% from an already trivial average of 6-7% in 2011 (Figure 2).

Water and production (Mcf and barrels of oil per day) in OH’s Utica Shale.

Figure 1. Average water usage (gallons) per Utica well by county

Average water usage (gallons) on a per well basis by OH’s Utica Shale industry, shown quarterly between Q3-2010 and Q2-2014.

Figure 2. Average water usage (gallons) on per well basis by OH Utica Shale industry, shown quarterly between Q3-2010 & Q2-2014.

Belmont County’s 30+ Utica wells are the least efficient with respect to oil recovery relative to freshwater requirements, averaging 7,190 gallons of water per gallon of oil (Figure 3). A distant second is Jefferson County’s 14 wells, which have required on average 3,205 gallons of water per gallon of oil. Columbiana’s 26 Utica wells are in third place requiring 1,093 gallons of freshwater. Coshocton, Mahoning, Monroe, and Portage counties are home to wells requiring 146-473 gallons for each gallon of oil produced.

Belmont County’s 14 Utica wells are the least efficient with respect to natural gas recovery relative to freshwater requirements (Figure 4). They average 1,306 gallons of water per Mcf. A distant second is Carroll County’s 250+ wells, which have injected 520 gallons of water 7,000+ feet below the earth’s service to produce a single Mcf of natural gas. Muskingum’s Utica well and Noble County’s 39 wells are the only other wells requiring more than 100 gallons of freshwater per Mcf. The remaining nine counties’ wells require 15-92 gallons of water to produce an Mcf of natural gas.

Water and production (Mcf and barrels of oil per day) in OH’s Utica Shale – Average Water Usage Per Unit of Oil Produced (Gallons of Water Per Gallon of Oil).

Figure 3. Average water usage (gallons) per unit of oil (gallons) produced across 19 Ohio Utica counties

Water and production (Mcf and barrels of oil per day) in OH’s Utica Shale – Average Water Usage Per Unit of Gas Produced (Gallons of Water Per MCF of Gas)

Figure 4. Average water usage (gallons) per unit of gas produced (Mcf) across 19 Ohio Utica counties

Waste Production

The aforementioned Jefferson wells are the least efficient with respect to waste vs. product produced. Jefferson wells are generating 12,728 gallons of brine per gallon of oil (Figure 5).6 Wells from this county are followed distantly by the 32 Belmont and 26 Columbiana county wells, which are generating 5,830 and 3,976 gallons of brine per unit of oil.5 The remaining counties (for which we have data) are using 8-927 gallons of brine per unit of oil; six counties’ wells are generating <38 gallons of brine per gallon of oil.

Water and production (Mcf and barrels of oil per day) in OH’s Utica Shale – Average Brine Production Per Unit of Oil Produced (Gallons of Brine Per Gallon of Oil)

Figure 5. Average brine production (gallons) per gallon of oil produced per day across 19 Ohio Utica Counties

The average Utica well in OH is generating 820 gallons of fracking waste per unit of product produced. Across all OH Utica wells, an average of 0.078 gallons of brine is being generated for every gallon of freshwater used. This figure amounts to a current total of 233.9 MGs of brine waste produce statewide. Over the next five years this trend will result in the generation of one billion gallons (BGs) of brine waste and 12.8 BGs of freshwater required in OH. Put another way…

233.9 MGs is equivalent to the annual waste production of 5.2 million Ohioans – or 45% of the state’s current population. 

Due to the low costs incurred by industry when they choose to dispose of their fracking waste in OH, drillers will have only to incur $100 million over the next five years to pay for the injection of the above 1.0 BGs of brine. Ohioans, however, will pay at least $1.5 billion in the same time period to dispose of their municipal solid waste. The average fee to dispose of every ton of waste is $32, which means that the $100 million figure is at the very least $33.5 million – and as much as $250.6 million – less than we should expect industry should be paying to offset the costs.

Environmental Accounting

In summary, there are two ways to look at the potential “energy revolution” that is shale gas:

  1. Using the same traditional supply-side economics metrics we have used in the past (e.g., globalization, Efficient Market Hypothesis, Trickle Down Economics, Bubbles Don’t Exist) to socialize long-term externalities and privatize short-term windfall profits, or
  2. We can begin to incorporate into the national dialogue issues pertaining to watershed resilience, ecosystem services, and the more nuanced valuation of our ecosystems via Ecological Economics.

The latter will require a more real-time and granular understanding of water resource utilization and fracking waste production at the watershed and regional scale, especially as it relates to headline production and the often-trumpeted job generating numbers.

We hope to shed further light on this new “environmental accounting” as it relates to more thorough and responsible energy development policy at the state, federal, and global levels. The life cycle costs of shale gas drilling have all too often been ignored and can’t be if we are to generate the types of energy our country demands while also stewarding our ecosystems. As Mark Twain is reported to have said “Whiskey is for drinking; water is for fighting over.” In order to avoid such a battle over the water-energy nexus in the long run it is imperative that we price in the shale gas industry’s water-use footprint in the near term. As we have demonstrated so far with this series this issue is far from settled here in OH and as they say so goes Ohio so goes the nation!

A Moving Target

ODNR projection map of potential Utica productivity from Spring, 2012

Figure 6. ODNR projection map of potential Utica productivity from spring 2012

OH’s Department of Natural Resources (ODNR) originally claimed a big red – and nearly continuous – blob of Utica productivity existed. The projection originally stretched from Ashtabula and Trumbull counties south-southwest to Tuscarawas, Guernsey, and Coshocton along the Appalachian Plateau (See Figure 6).

However, our analysis demonstrates that (Figures 7 and 8):

  1. This is a rapidly moving target,
  2. The big red blob isn’t as big – or continuous – as once projected, and
  3. It might not even include many of the counties once thought to be the heart of the OH Utica shale play.

This last point is important because counties, families, investors, and outside interests were developing investment and/or savings strategies based on this map and a 30+ year timeframe – neither of which may be even remotely close according to our model.

An Ohio Utica Shale oil production model for Q1-2013 using an interpolative Geostatistical technique called Empirical Bayesian Kriging.

Figure 7a. An Ohio Utica Shale oil production model using Kriging6 for Q1-2013

An Ohio Utica Shale oil production model for Q2-2014 using an interpolative Geostatistical technique called Empirical Bayesian Kriging.

Figure 7b. An Ohio Utica Shale oil production model using Kriging for Q2-2014

An Ohio Utica Shale gas production model for Q1-2013 using an interpolative Geostatistical technique called Empirical Bayesian Kriging.

Figure 8a. An Ohio Utica Shale gas production model using Kriging for Q1-2013

An Ohio Utica Shale gas production model for Q2-2014 using an interpolative Geostatistical technique called Empirical Bayesian Kriging.

Figure 8b. An Ohio Utica Shale gas production model using Kriging for Q2-2014


Footnotes

  1. $4.25 per 1,000 gallons, which is the current going rate for freshwater at OH’s MWCD New Philadelphia headquarters, is 4.7-8.2 times less than residential water costs at the city level according to Global Water Intelligence.
  2. Carroll County wells have seen days in production jump from 36-62 days in 2011-2012 to 68-78 in 2014 across 256 producing wells as of Q2-2014.
  3. One Mcf is a unit of measurement for natural gas referring to 1,000 cubic feet, which is approximately enough gas to run an American household (e.g. heat, water heater, cooking) for four days.
  4. Assuming average oil and natural gas prices of $96 per barrel and $8.67 per Mcf during the current period of production (2011 to Q2-2014), respectively
  5. IHS’ share price has increased by $1.7 per month since publishing a report about the potential of US shale gas as a job creator and revenue generator
  6. On a per-API# basis or even regional basis we have not found drilling muds data. We do have it – and are in the process of making sense of it – at the Solid Waste District level.
  7. An interpolative Geostatistical technique formally called Empirical Bayesian Kriging.

Comparison of Oil and Gas Violations and the Sale of Wells

Well pad spill, wetland. Photo courtesy of WV Host Farms Program (http://www.wvhostfarms.org)

Well pad spill, wetland. Photo courtesy of WV Host Farms Program

By Matt Unger, FracTracker GIS Intern

When the unconventional oil and gas extraction boom hit Pennsylvania in the mid-2000s small, local operators were among the first on the scene. As shale plays continued to develop, many of these smaller companies were bought out by larger, national corporations. Larger oil and gas development companies often maintain that they are better able to handle the expected regulatory requirements, and so FracTracker wanted to determine if there was a change in the compliance record for wells that changed hands. Does having more resources available to them translate into stronger compliance standards for oil and gas drillers, better training for their employees, and a greater burden to get things right? Investigating these questions by looking into compliance data and the sale of wells, however, was no easy task.

Analysis Methods

There are no indications in either the drilled wells or permits datasets available from the DEP that a well has changed hands; in both of these sources, one operator’s name is simply substituted for the other. It is possible to comb through old news stories, and find that East Resources sold its assets to Shell in 2010, for example. However, this approach is piecemeal, and would not lead to satisfactory results on an industry-wide analysis.

Major obstacles to our analysis included:

  • Lack of information on the transfer of oil and gas wells from one operator to another
  • There is often a lag time between the time violations occur and when they are reported
  • Errors in compliance reporting. For example, one API Number was found to have the operator listed as “Not Assigned” (It was later discovered that this well was never sold).

Results

Unlike wells and permits, any items on the compliance dataset are attributed to whichever company was operating the well at the time the violation was issued. So while FracTracker could not do the analysis that we wanted to because of the limitations of available data, we were able to isolate 30 wells that have changed hands between January 1, 2000 and November 4, 2014 (Table 1). One well has been bought and sold twice, with each of the three operators being issued violations.

In some instances the original well owner was reported to be out of compliance more times than the second owner. For example, API Number 013-20012 had 11 violations reported under its first owner and only 1 since it has been sold. The contrary also occurred, however, such as in the case of API Number 065-26481, which had 4 violations reported under its first owner and 14 under its second owner. There are not enough data points to determine which scenario is the trend in the data – if in fact there is one.

Due to limitations in the data, we cannot currently evaluate whether the notion that larger companies can improve the track record of problematic wells. In fact, many of the wells that were issued violations for multiple operators really just changed hands from one big operator who wanted to get out of the Marcellus to another big operator who wanted to get in. Our small sample doesn’t include any of the wells that were issued violations to only one company, of all the wells that changed hands over the years. To accurately assess the scenario, more data would have to be released, specifically the date when wells changed hands from one company to another.

Table 1. Wells with violations by API number that have changed ownership

API Number First Owner Last Known Date Of Ownership Second Owner First Known Date Of Ownership Third Owner First Known Date Of Ownership
013-20012 Chief Oil & Gas LLC 5/24/10 Chevron Appalachia LLC 2/5/13
015-20033 Belden & Blake Corp 4/10/09 Chesapeake Appalachia LLC 12/7/11
015-20051 Consol Gas Co 6/16/04 Range Resources Appalachia LLC 8/9/05 Talisman Energy USA Inc 11/16/11
019-21494 Phillips Exploration Inc 6/10/08 XTO Energy Inc 7/24/13
019-21680 Phillips Exploration Inc 4/6/10 XTO Energy Inc 3/13/13
065-26481 Dannic Energy Corp 5/11/11 Mieka LLC 11/10/11
065-26832 Dannic Energy Corp 3/2/11 Mieka LLC 4/11/12
081-20062 Chief Oil & Gas LLC 1/6/09 Exco Resources Pa LLC 8/16/11
081-20069 Chief Oil & Gas LLC 5/21/08 Exco Resources Pa LLC 3/28/11
081-20128 Chief Oil & Gas LLC 11/15/10 Exco Resources Pa LLC 6/27/11
081-20144 Chief Oil & Gas LLC 7/21/10 Exco Resources Pa LLC 3/15/12
081-20149 Chief Oil & Gas LLC 1/10/11 Exco Resources Pa LLC 2/21/12
081-20244 Chief Oil & Gas LLC 5/20/10 Exco Resources Pa LLC 11/15/12
081-20255 Chief Oil & Gas LLC 11/15/10 Exco Resources Pa LLC 11/29/11
081-20279 Chief Oil & Gas LLC 12/3/10 Exco Resources Pa LLC 4/20/12
081-20298 Chief Oil & Gas LLC 5/26/10 Exco Resources Pa LLC 6/27/11
083-53843 Anschutz Exploration Corp 4/7/09 Chesapeake Appalachia LLC 3/20/13
113-20025 Chief Oil & Gas LLC 2/15/11 Exco Resources Pa LLC 3/16/11
113-20049 Chief Oil & Gas LLC 11/30/10 Exco Resources Pa LLC 4/13/11
115-20052 Turm Oil Inc 9/24/08 Chesapeake Appalachia LLC 8/21/14
115-20169 Alta Opr Co LLC 11/24/09 WPX Energy Appalachia LLC 4/13/11
115-20174 Alta Opr Co LLC 4/16/10 Wpx Energy Appalachia LLC 4/29/11
115-20191 Alta Opr Co LLC 12/1/09 Wpx Energy Appalachia LLC 6/1/11
115-20214 Alta Opr Co LLC 7/19/10 Wpx Energy Appalachia LLC 8/16/10
115-20231 Alta Opr Co LLC 4/8/10 Wpx Energy Appalachia LLC 6/1/11
117-20197 East Resources Inc 4/8/08 Talisman Energy USA Inc 1/26/11
117-20280 East Resources Inc 5/19/10 Swepi LP 8/28/14
117-20330 East Resources Inc 12/18/09 Talisman Energy USA Inc 2/20/13
117-20394 East Resources Inc 12/14/09 Swepi LP 10/25/11
117-20538 East Resources Inc 12/18/10 Swepi LP 5/27/10

 

Conventional and unconventional wells in PA

Over 1.2 Million Pennsylvanians Within 1/2 Mile of a Well

Aging well in McKean County, PA. Source: saveourstreamspa.org

One of the potentially troubling aspects of oil and gas development is that there are usually people who live in the vicinity of the wells. Pennsylvania now has over 8,000 active unconventional wells; there are any number of issues that can occur with these modern, industrial-scale sites, including road degradation, contaminated water, and health impacts, among others. In addition, there are over 93,000 of the smaller, conventional wells in operation throughout the Commonwealth. While these garner far less attention than their unconventional counterparts, they are also prone to producing similar impacts, not to mention that since many of them are older wells, they not only have potentially been subject to deterioration and occasional neglect, but were constructed during a period with less stringent requirements than are currently expected.

Petroleum engineers are now capable of drilling horizontally for tens of thousands of feet. For the most part, however, this technology is employed to maximize production, rather than to ameliorate impacts on people who live near the product. But who are these people? To help to answer this question, the FracTracker Alliance calculated the number of people living in a half-mile radius around active wells in the state.

More than 1.2 million Pennsylvanians live within the impact area.

Of the 93,754 wells that have been drilled in the state since 1950 that have not yet been plugged, the Pennsylvania DEP only has location data for 79,118 of them. All but one of the 14,636 missing locations are for wells that are categorized as Conventional. While one must presume that there is some overlap in coverage within the half-mile zone, the extent of this region – and therefore the population that lives within it – cannot be determined.


Fig. 1. PA Populations Near Oil and Gas Wells. Click here to access written description and additional map tools.

To maximize the reliability of our calculations, this map was created using a custom Albers equal-area projection centered on Pennsylvania. A half-mile buffer around each well type was created, and the resulting layer was clipped to Census tract data. The ratio of the smaller clipped area to the full Census tract area was calculated, and that ratio was then multiplied by the population totals from the 2010 Census to obtain our population estimates of the half-mile zone. The area in the study area is larger than six states, while the calculated population is larger than that of eight states.

Of the 79,118 active oil and gas wells in PA for which location data are available, we determined the area and estimated the population within a half mile radius. Note that some regions are with a half-mile of both conventional and unconventional wells.

Fig. 2. Number of people in PA near oil and gas wells (79,118 active wells for which location data are available). Note that some regions are with a half-mile of both conventional and unconventional wells.

The county most impacted, in terms of area, for unconventional wells is Bradford, with 353 square miles (See Figure 2). Washington County had the most people living in the zone, however, with 20,566. For conventional wells, the drilling landscape is the largest in Indiana County, affecting 761 square miles, while Erie County has the most people in the half-mile zone, with 212,900. When considering all wells together, the numbers are almost identical to conventional wells. Indiana County leads with 762 square miles, while the drill zone in Erie County represents 211,903 people, or 76% of the county’s population in 2010.

Clearing land for shale gas pipeline in PA

International Pipelines and Proposals


This map shows all proposed and existing hydrocarbon pipelines outside of the U.S. A very detailed map of North American pipelines and proposed pipelines can be found here.

Map Last Updated: November 2017


This is an evolving map of existing and proposed oil and gas pipeline proposals across the globe, as well as an inventory of all 355+ currently-operating oil refineries. It was last updated in November of 2017. If you have questions about this map, please email us: info@fractracker.org.

Gas Trucks Blocking Roads

Companies Lack Truck Traffic Coordination

Recently, I was observing how Statoil was managing their gas well traffic, how well it was moving, and whether local residential traffic was being significantly delayed.

Figure 1. Road map referred to throughout text

Figure 1. Road map referred to throughout text

In Wetzel County, WV, gas trucks travel 4.5 miles from a Statoil pipe yard (Fig 1. Location A) in Uniontown to the Statoil Kuhn well pad (E). This trip can take at least 15 minutes for each truck. Rockford is also doing pipeline work along this route (B and D).

The roadway Statoil is using, even though it is small gravel lane, is a public route. Routine well pad traffic was moving between the pad and pipe yard. When I attempted to travel out to the well pad, I noticed some issues around the pipeline crossing. A large truck was blocking the road and all traffic was stopped. At 3:59 pm, a large dump truck hauling drill cuttings left the well pad coming towards the pipeline. Statoil personnel radioed the flagger at the pipe yard to stop traffic there.

The dump truck was stopped at the pipeline crossing, point D at 4:09 pm, where the road was blocked. It was not until 4:34 pm that traffic was finally able to proceed. This section of road was closed for 35 minutes, as was the lower road at the pipe yard.

For the past few days, Statoil has been stopping all traffic as soon as any truck leaves the well pad, whether the pipeliners have the road blocked or not.

Associated Issues

There are three serious factors that significantly hamper traffic flow along this route:

Statoil's Kugh Well Pad

Statoil’s Kugh Well Pad

  1. Statoil has flagger-radio personnel stationed at the pipe yard and at the pad, but not at the top of the hill (C) about a mile from the pipe yard. As a result, there was no way to allow any local traffic to come up the hill even when they intend to continue heading west or southeast. With a flagger-radio at the top of the hill, local traffic could be up the hill and long gone before any large trucks got to there. (Note: After a few weeks a traffic person was then stationed at the top of the hill).
  2. Not all Statoil subcontractors trucks are equipped with CB radios, so it is impossible to track their progress or location on this road.
  3. Rockford and Statoil do not use any common radio band. They do not appear to communicate with each other even though they are working along this same truck route.

This traffic block incident luckily did not include emergency vehicle traffic. If there had been any accident on or near the well pad or the pipeline right of way, no one would have been able to get through. It would seem that it is in the best interest of the companies and their employees to make sure the road is clear, all the time. When I discussed this with the tool pusher* on the well pad, he agreed. He was also concerned that there was no helicopter landing area nearby in the event of a serious accident. He runs a safe well drilling operation but wanted to be certain that an emergency vehicle could get through.

* A tool pusher is the boss man who runs the whole drilling operation as a subcontractor to the gas operator.


By Bill Hughes, WV Community Liaison, FracTracker Alliance
Read more Field Diary articles.