The majority of FracTracker’s posts are generally considered articles. These may include analysis around data, embedded maps, summaries of partner collaborations, highlights of a publication or project, guest posts, etc.
By Isabelle Weber, FracTracker Alliance Spring 2019 Intern
Feature photo of oil and gas drilling in North Dakota, and is by by Nick Lund, NPCA, 2014
Although there are some federal regulations in place to protect the environment indirectly from fracking in the United States, the regulations that try to keep fracking in check are largely implemented at the state governing level. This has led to a patchwork of regulations that differ in strictness from state to state. This leads to the concern that there will be a race to the bottom where states lower the strictness of their regulations in order to draw in more fracking. While it might be tempting to welcome an industry that often creates a temporary economic spike, the costs of mitigating the environmental damage from fracking far out-weighs the profit gained. Germany, Scotland, and France are examples of countries that have taken more appropriate regulatory measures to protect their populations from the risks involved in unconventional oil and gas development.
The Shortfalls of State by State Regulations
For a detailed overview of how fracking regulation differs between states, check out the Resources for the Future report, The State of State Shale Gas Regulation, which analyzes 25 regulatory elements and how they differ between states. Two of their maps that attest to this vast difference in regulation are the “Fracturing Fluid Disclosure Requirements” map as well as the “Venting Regulations” map.
The “Fracturing Fluid Disclosure Requirements” map shows regulatory differences between states regarding whether or not the chemical mixture used to break up rock formations must be made known to the public. “Disclosure” means that the chemical mixture is made known to the public and “No Regulation” means that there is nothing that obligates companies to share this information, which usually implies this information is not available.
Fig 1. Map of fracking fluid disclosure requirements by state, from Resources for the Future’s report, “The State of State Shale Gas Regulation.” Original data from US Energy Information Administration.
Note from the editor: There are several exemptions that allow states to limit the scope of reporting chemicals used in underground fluid injection for fracking. For example, all states that require chemical disclosure are entitled to exemptions for chemicals that are considered trade secrets.
Concealing the identity of chemicals increases the risk of harm from chemical exposure for people and the environment. Emergency first responders are especially at risk, as they may have to act quickly to put out a fracking-induced fire without knowing the safety measures necessary to avoid exposure to dangerous chemicals. The population at large is at risk of exposure though several pathways such as leaks, spills, and air emissions. Partnership for Policy Integrity, along with data analysis by FracTracker, investigated the implications of keeping the identity of certain fracking chemicals secret in two states, Ohio and Pennsylvania. These reports point to evidence that exposure to concealed fracking chemicals could have serious health effects including blood toxicity, developmental toxicity, liver toxicity and neurotoxicity.
The second map, “Venting Regulations,” shows which states have regulations that limit or ban venting and which do not. Venting is the direct release of methane from the well site into the atmosphere. Methane has 30 times the green-house gas effect as carbon dioxide. Given methane’s severe impact on the environment, no venting whatsoever should be allowed at well sites.
Fig 2. Map of fracking venting regulations by state, from Resources for the Future’s report, “The State of State Shale Gas Regulation.” Original data from US Energy Information Administration.
Having overarching federal regulatory infrastructure to regulate fracking would help to avoid risks such as toxic chemical exposure and accelerated climate change. Although leaving regulation development to states allows for more specialized laws, there are certain aspects of environmental protection that apply to every area in the United States and are necessary as standard protection against the effects of fracking.
How do other countries regulate fracking?
Stronger federal regulation of fracking has worked well in the past and can be seen in several other countries.
Germany
In 2017, Germany passed new legislation that largely banned unconventional hydraulic fracking. The ban on unconventional fracking excludes four experimental wells per state that will be commissioned by the German government to an independent expert commission to identify knowledge gaps and risks with regards to fracking. Conventional fracking also received tighter regulations including a ban on fracking near drinking water sources. In 2021, the ban will be reevaluated, taking into account research results, public perception, long term damage to residents and the environment, and technological advances. This is a perfect example of how a country can use overarching federal regulation to make informed decisions about industry action.
Scotland
In 2015, Scotland placed a moratorium into effect that halted all fracking in the country. Since 2017, the government has held that the moratorium will stand indefinitely as an effective ban on fracking in the country, but the country is still working on the legislature that will officially ban fracking. Meanwhile, the Scottish government conducted one of the most far-reaching investigations into unconventional oil and gas development, which included a four-month public consultation period. This public consultation garnered 65,000 responses, 65% of which were from former coal mining communities targeted by the fracking industry. Of those responses, 99% of responses opposed fracking.
The Scottish people should be applauded for holding their federal government accountable in fulfilling its responsibility to protect its people and its environment against the effects of fracking.
France
In December 2017, France passed a law that bans exploration and production of all oil and natural gas by the year 2040. This applies to mainland France as well as all French territories. Although France has limited natural gas resources, it is hoped that the ban will be contagious and spread to other countries. This is a prime example of a country making a decision to protect their environment through regulation.
Although France’s banning of fracking was largely symbolic and may not result in a considerable reduction of greenhouse gases related to natural gas exploration, the country is sending a message to the world that we need to facilitate the end of the fossil fuel era and a move toward renewables.
Back to the US, the world’s leading producer of natural gas
Federal regulation on fracking should be holding the oil and gas industry in check by requiring states to meet basic measures to protect people and the environment. States could then develop more stringent regulations as they see fit. It is important that we come to a national consensus on the environmental and health hazards of fracking, and consequently, to adopt appropriate federal regulations.
By Isabelle Weber, FracTracker Alliance Spring 2019 Intern
https://www.fractracker.org/a5ej20sjfwe/wp-content/uploads/2019/10/Oil-and-gas-drilling-in-ND.-Photo-by-Nick-Lund-NPCA-2014-feature-scaled.jpg6671500Intern FracTrackerhttps://www.fractracker.org/a5ej20sjfwe/wp-content/uploads/2021/04/2021-FracTracker-logo-horizontal.pngIntern FracTracker2019-10-10 11:50:142021-04-28 11:55:45How State Regulations Hold Us back and What Other Countries are doing about Fracking
Pennsylvania’s fracking industry is producing record amounts of toxic waste — where does it all go?
Drilling for methane and other fossil fuels is an energy-intensive process with many associated environmental costs. In addition to the gas that is produced through high volume hydraulic fracturing (“unconventional drilling,” or “fracking”), the process generates a great deal of waste at the drill site. These waste products may include several dozen tons of drill cutting at every well that is directionally drilled, in addition to liner materials, contaminated soil, fracking fluid, and other substances that must be removed from the site.
In 2018, Pennsylvania’s oil and gas industry (including both unconventional and conventional wells) produced over 2.9 billion gallons (nearly 69 million barrels) of liquid waste, and 1,442,465 tons of solid waste. In this article, we take a look at where this waste (and its toxic components) end up and how waste values have changed in recent years. We also explore how New York State, despite its reputation for being anti-fracking, isn’t exempt from the toxic legacy of this industry.
Waste that comes back to haunt us
According to a study by Physicians, Scientists and Engineers, over 80% of all waste from oil and gas drilling stays within the state of Pennsylvania. But once drilling wastes are sent to landfills, is that the end of them? Absolutely not!
Drilling waste also gets into the environment through secondary means. According to a recent report by investigative journalists at Public Herald, on average, 800,000 tons of fracking waste from Pennsylvania is sent to Pennsylvania landfills. When this waste is sent to landfills, radioactivity and other chemicals can percolate through the landfill, and are collected as leachate, which is then shipped to treatment plants.
Public Herald documented how fourteen sewage treatment plants in Pennsylvania have been permitted by Pennsylvania’s Department of Environmental Protection (PA DEP) to process and discharge radioactive wastes into more than a dozen Pennsylvania waterways.
Public Herald’s article includes an in-depth analysis of the issue. Their work is supported by a map of the discharge sites, created by FracTracker.
Trends over time
Pennsylvania Department of Environmental Protection maintains a rich database of oil and gas waste and production records associated with their Oil and Gas Reporting Website. The changes in waste disposal from Pennsylvania’s unconventional drilling reveal a number of interesting stories.
Let’s look first at overall unconventional drilling waste.
According to data from the federal Energy Information Administration, gas production in Pennsylvania began a steep increase around 2010, with the implementation of high volume hydraulic fracturing in the Marcellus Shale (see Figure 1). The long lateral drilling techniques allowed industry to exploit exponentially more of the tight shale via single well than was ever before possible with conventional, vertical drilling.
Figure 1. Data summary from FracTracker.org, based on EIA data.
The more recently an individual well is drilled, the more robust the production. We see an overall increase in gas production over time in Pennsylvania over the past decade. Paradoxically, the actual number of new wells drilled each year in the past 4-5 years are less than half of the number drilled in 2011 (see Figure 2).
Figure 2: Data summary from FracTracker.org, based on PA DEP data
Why is this? The longer laterals —some approaching 3 miles or more—associated with new wells allow for more gas to be extracted per site.
With this uptick in gas production values from the Marcellus and Utica Formations come more waste products, including copious amounts drilling waste, “produced water,” and other byproducts of intensive industrial operations across PA’s Northern Tier and southwestern counties.
Comparing apples and oranges?
When we look at the available gas production data compared with data on waste products from the extraction process, some trends emerge. First of all, it’s readily apparent that waste production does not track directly with gas production in a way one would expect.
Recall that dry gas production has increased annually since 2006 (see Figure 1). However, the reported waste quantities from industry have not followed that same trend.
In the following charts, we’ve split out waste from unconventional drilling by solid waste in tons (Figure 3) and liquid waste, in barrels (Figure 4).
Figure 3: Annual tonnage of solid waste from the unconventional oil and gas industry, organized by the state it is disposed in. Data source: PA DEP, processed by FracTracker Alliance
Figure 4: Annual volume of liquid waste from the unconventional oil and gas development, organized by state it is disposed in. One barrel is equivalent to 42 gallons. Data source: PA DEP, processed by FracTracker Alliance
Note the striking difference in disposal information for solid waste, compared with liquid waste, coming from Pennsylvania.
“Disposal Location Unknown”
Until just the last year, often more than 50% of the known liquid waste generated in PA was disposed of at unknown locations. The PA DEP waste report lists waste quantity and method for these unknown sites,depending on the year: “Reuse without processing at a permitted facility,” “Reuse for hydraulic fracturing,” “Reuse for diagnostic purposes,” “Reuse for drilling or recovery,” “Reuse for enhanced recovery,” and exclusively in more recent years (2014-2016), “Reuse other than road-spreading.”
In 2011, of the 20.5 million barrels of liquid waste generated from unconventional drilling, about 56% was allegedly reused on other drilling sites. However, over 9 million barrels—or 44% of all liquid waste—were not identified with a final destination or disposal method. Identified liquid waste disposal locations included “Centralized treatment plant for recycle,” which received about a third of the non-solid waste products.
In 2012, the quantity of the unaccounted-for fracking fluid waste dropped to about 40%. By 2013, the percentage of unaccounted waste coming from fracking fluid dropped to just over 21%, with nearly 75% coming from produced fluid, which is briny, but containing fewer “proprietary”—typically undisclosed—chemicals.
By 2017, accounting had tightened up further. PA DEP data show that 99% of all waste delivered to undisclosed locations was produced fluid shipped to locations outside of Pennsylvania. By 2018, all waste disposal was fully accounted for, according to DEP’s records.
In looking more closely at the data, we see that:
Prior to 2018, well drillers did not consistently report the locations at which produced water was disposed of or reused. Between 2012 and 2016, a greater volume of unconventional liquid waste went unaccounted for than was listed for disposal in all other locations, combined.
In Ohio, injection wells, where liquid waste is injected into underground porous rock formations, accounted for the majority of the increase in waste accepted there: 2.9 million barrels in 2017, and 5.7 million barrels in 2018 (a jump of 97%).
West Virginia’s acceptance of liquid waste increased significantly in 2018 over 2017 levels, a jump of over a million barrels, up from only 55,000. This was almost entirely due to unreported reuse at well pads.
In 2018, reporting, in general, appears to be more thorough than it was in previous years. For example, in 2017, nearly 692,000 barrels of waste were reused at well pads outside PA, but those locations were not disclosed. Almost 7000 more barrels were also disposed of at unknown locations. In 2018, there were no such ambiguities.
A closer look at Pennsylvania’s fracking waste shipped to New York State
Despite a reputation for being resistant to the fracking industry, for most of this decade, the state of New York has been accepting considerable amounts of fracking waste from Pennsylvania. The greatest percentage shipped to New York State is in the form of drilling waste solids that go to a variety of landfills throughout Central and Western New York.
Looking closely at the bar charts above, it’s easy to notice that the biggest recipients of Pennsylvania’s unconventional liquid drilling waste are Pennsylvania itself, Ohio, as well as a significant quantity of unaccounted-for barrels between 2011 and 2016 (“Disposal location unknown”). The data for disposal of solid waste in New York tells a different story, however. In this case, Pennsylvania, Ohio, and New York State all play a role. We’ll take a look specifically at the story of New York, and illustrate the data in the interactive map that follows.
In this map, source locations in Pennsylvania are symbolized with the same color marker as the facility in New York that received the waste from the originating well pad. In the “Full Screen” view, use the “Layers” drop down menu to turn on and off data from separate years.
From the early days of unconventional drilling in Pennsylvania, New York State’s landfills provided convenient disposal sites due to their proximity to the unconventional drilling occurring in Pennsylvania’s Northern tier of counties. Pennsylvania and Ohio took the majority of solid wastes from unconventional drilling waste from Pennsylvania. New York State, particularly between 2011-2015, was impacted far more heavily than all other states, combined (Figure 5, below).
Figure 5: Known disposal locations (excluding PA and OH) of Pennsylvania’s solid waste. Data source: PA DEP, processed by FracTracker Alliance
Here’s the breakdown of locations in New York to where waste was sent. Solid waste disposal into New York’s landfills also dropped by half, following the state’s ban on unconventional drilling in 2014. Most of the waste after 2012 went to the Chemung County Landfill in Lowman, New York, 10 miles southeast of Elmira.
Figure 6: Solid waste from unconventional drilling, sent to facilities in NYS. Data source: PA DEP, processed by FracTracker Alliance
Is waste immobilized once it’s landfilled?
The fate of New York State’s landfill leachate that originates from unconventional drilling waste is a core concern, since landfill waste is not inert. If drilling waste contains radioactivity, fracking chemicals, and heavy metals that percolate through the landfill, and the resulting leachate is sent to municipal wastewater treatment plants, will traditional water treatment methods remove those wastes? If not, what will be the impact on public and environmental health in the water body that receives the “treated” wastewater? In Pennsylvania, for example, a case is currently under investigation relating to pollution discharges into the Monongahela River near Pittsburgh. “That water was contaminated with diesel fuels, it’s alleged, carcinogens and other pollutants,” said Rich Bower, Fayette County District Attorney.
Currently, a controversial expansion of the Hakes Landfill in Painted Post, New York is in the news. Sierra Club and others were concerned about oversight of radium and radon in the landfill’s leachate and air emissions, presumably stemming from years of receiving drill cuttings. The leachate from the landfill is sent to the Bath Wastewater Treatment plant, which is not equipped to remove radioactivity. “Treated” wastewater from the plant is then discharged into the Cohocton River, a tributary of the Chesapeake Bay. In April 2019, these environmental groups filed a law suit against Hakes C&D Landfill and the Town of Campbell, New York, in an effort to block the expansion.
Similar levels of radioactivity in leachate have also been noted in leachate produced at the Chemung County Landfill, according to Gary McCaslin, President of People for a Healthy Environment, Inc.
In recent years, much of the solid unconventional waste arriving in New York State has gone to the Chemung County Landfill (see Figure 6, above). Over the course of several years, this site requested permission to expand significantly from 180,000 tons per year to 417,000 tons per year. However, by 2016, the expansion was deemed unnecessary, and according, the plans were put on hold, in part “…because of a decline in the amount of waste being generated due to a slower economy and more recycling than when the expansion was first planned years ago.” The data in Figure 5 above also parallel this story, with unconventional drilling waste disposed in New York State dropping from over 200,000 tons in 2011 to just over 20,000 tons in 2018.
Liquid waste transported to New York State
The story about liquid unconventional drilling waste exported from Pennsylvania to states other than Ohio is not completely clear (see Figure 7, below). Note that the data indicate more than a 2000% increase in waste liquids going from Pennsylvania to West Virginia after 2017. While it has not been officially documented, FracTracker has been anecdotally informed that a great deal of waste was already going to West Virginia, but that the record-keeping prior to 2018 was simply not strongly enforced.
Figure 7: Known disposal locations (excluding Pennsylvania and Ohio) of Pennsylvania’s liquid waste. Data source: PA DEP, processed by FracTracker Alliance
Beginning in the very early years of the Pennsylvania unconventional fracking boom, a variety of landfills in New York State have also accepted liquid wastes originating in Pennsylvania, including produced water and flowback fluids (see Figure 8, below).
Figure 8: Liquid waste from unconventional drilling, sent to facilities in New York State. Data source: PA DEP, processed by FracTracker Alliance
In addition, while this information doesn’t even appear in the PA DEP records (which are publicly available back to 2010), numerous wastewater treatment plants did accept some quantity, despite being fully unequipped to process the highly saline waste before it was discharged back into the environment.
One such facility was the wastewater treatment plant in Cayuga Heights, Tompkins County, which accepted more than 3 million gallons in 2008. Another was the wastewater treatment plant in Auburn, Cayuga County, where the practice of accepting drilling wastewater was initially banned in July 2011, but the decision was reversed in March 2012 to accept vertical drilling waste, despite strong public dissent. Another wastewater treatment plant in Watertown, Jefferson County, accepted 35,000 gallons in 2009.
Fortunately, most New York State wastewater treatment plant operators were wise enough to not even consider adding a brew of unknown and/or proprietary chemicals to their wastewater treatment stream. Numerous municipalities and several counties banned fracking waste, and once the ban on fracking in New York State was instituted in 2014, nearly all importation of liquid unconventional drilling waste into the state ceased.
Nevertheless, conventional, or vertical well drilling also generates briny produced water, which the New York State Department of Environmental Conservation (DEC) permits communities in New York to accept for ice and dust control on largely rural roads. These so-called “beneficial use determinations” (BUDs) of liquid drilling waste have changed significantly over the past several years. During the height of the Marcellus drilling in around 2011, all sorts of liquid waste was permitted into New York State (see FracTracker’s map of affected areas) and was spread on roads. As a result, the chemicals—many of them proprietary, of unknown constituents, or radioactive—were indirectly discharged into surface waters via roadspreading.
Overall, in the years after the ban in 2014 on high volume hydraulic fracturing was implemented, restrictions on Marcellus waste coming into New York have strengthened. Very little liquid waste entered New York’s landfills after 2013, and what did come in was sent to a holding facility owned by Environmental Services of Vermont. This facility is located outside Syracuse, New York.
New York State says “no” to this toxic legacy
Fortunately, not long after these issues of fracking fluid disposal at wastewater treatment facilities in New York State came to light, the practice was terminated on a local level. The 2014 ban on fracking in New York State officially prevented the disposal of Marcellus fluids in municipal wastewater treatment facilities and required extra permits if it were to be road-spread.
In New York State, the State Senate—after 8 years of deadlock—in early May 2019, passed key legislation that would close a loophole that had previously allowed dangerous oil and gas waste to bypass hazardous waste regulation. Read the press release from Senator Rachel May’s office here. However, despite strong support from both the Senate, and the Assembly, as well as many key environmental groups, the Legislature adjourned for the 2019 session without bringing the law to a final vote. Said Elizabeth Moran, of the New York Public Interest Research Group (NYPIRG), “I want to believe it was primarily a question of timing… Sadly, a dangerous practice is now going to continue for at least another year.”
See Earthworks’ recent three part in-depth reporting on national, New York, and Pennsylvania oil and gas waste, with mapping support by FracTracker Alliance.
All part of the big picture
As long as hydrocarbon extraction continues, the issues of waste disposal—in addition to carbon increases in the atmosphere from combustion and leakage—will result in impacts on human and environmental health. Communities downstream and downwind will bear the brunt of landfill expansions, water contamination, and air pollution. Impacts of climate chaos will be felt globally, with the greatest impacts at low latitudes and in the Arctic.
Transitioning to net-zero carbon emissions cannot be a gradual endeavor. Science has shown that in order to stay under the 1.5 °C warming targets, it must happen now, and it requires the governmental buy-in to the Paris Climate Agreement by every economic power in the world.
No exceptions. Life on our planet requires it.
We have, at most, 12 years to make a difference for generations to come.
Guest Blog by Josh Eisenfeld, Director of Marketing with Fair Shake Environmental Legal Services
Fair Shake Environmental Legal Services looks maps the origin of their intake calls and reflects on their geographic distribution as it relates to areas with heavy environmental burdens.
Over the last five years, Fair Shake Environmental Legal Services has worked in Ohio and Pennsylvania to promote environmental justice by providing legal services at income-based rates. Our service area has a long history of extraction, from timbering, conventional drilling for oil, multiple forms of mining, and unconventional drilling for natural gas. Because of our proximity to these resources, we also have a long history of industrial manufacturing, which can be evidenced by the many oil refineries, steel production facilities, power plants, cement factories, factory farms, and chemical production facilities. Fair Shake offers counsel and representation in environmental law with accessible, sliding scale fees, and we receive a continuous stream of phone calls from those on the front lines. We were curious to see if our intake calls correlated with geographic areas with heavy environmental burdens in order to allocate our limited resources to those regions most efficiently.
With the help of Ted Auch from FracTracker Alliance we collected zip codes from nearly 600 of intake calls received by Fair Shake and placed them on the map below.
In general, our intakes in Pennsylvania mirror the Marcellus Shale formation. Over the last decade and a half, technical advancements in drilling have transformed the Marcellus Shale formation from a nonproducing region to the largest producing natural gas formation by volume in the world. Entering 2005, only 13 “unconventional” wells had been drilled in the Marcellus Shale region of Pennsylvania, where today there are roughly 12,000 wells according to FracTracker’s PA Shale Viewer Map. Reduced regulations for unconventional drilling and infrastructure have facilitated this rush for production, resulting in an influx of compressor stations, gathering lines, pump stations, processing plants, wastewater impoundments, wastewater treatment facilities, wastewater injection wells, and more.
We believe that this map indicates that these 12,000 wells place a significant burden on residents living within this region. Speaking broadly, reduced regulation has left loopholes in major environmental laws that have to get justice when their rights have been violated and, even more concerning, when harm has occurred.
One of the most prominent manifestations of this burden is the contamination of private drinking water sources near drilling and wastewater sites. Our region’s history of extraction and industrial enterprise and the pollution associated with these industries makes it extremely difficult to prove, in court, that drilling activity is the sole cause of damage to private wells. The fact is that our groundwater (and therefore private drinking wells) has been contaminated over and over again. Polluters use this to their advantage, leaning on the uncertainty of what caused the contaminants in question to get there. Simply put, water contamination is not a question of whether contaminants exist (they do) it’s a question of how can you prove that it was a given industry when there are many other possible culprits.
One thing we do know is that the number of reports for well contamination has increased in conjunction with the increase in drilling activity. The graph below, created by FracTracker and The Public Herald, shows the correlation of wells drilled, complaints to the Department of Environmental Protection, and complaints specifically about water.
Upon closer examination of the intake map, we saw a higher density of cases in more populated areas of Allegheny County, which actually has very little fracking activity (less than 170 drilled wells). But Allegheny is also one of the most polluted counties in America. The American Lung Association gave the county all F’s on its air quality and ranked it as 7th worst air quality in the nation according to the association’s state of the air. Allegheny County is also home to two of the most polluted rivers in our country: the Monongahela and the Ohio. Over a century of industrial activity and coal mining have impaired the water but most recently sewer overflows from the city of Pittsburgh have sent dangerous levels of raw sewage into the surrounding waterways.
The population density combined with the very poor air and water quality could be the explanation for the anomaly. Furthermore, Allegheny County is also where our Pittsburgh office is located, which is perhaps the reason that we see so many cases in this region and not in other regions of high population density such as Philadelphia, Harrisburg, or Scranton.
When we started this project, we thought we would discover a correlation between intakes and regions with the heaviest environmental burdens. This could allow us to allocate our limited resources to those regions most efficiently. Unfortunately, the problem is not so simple.
As evidenced by the intake map, resource extraction in Ohio and Pennsylvania is spread over a very large area. That is troubling because the bigger the problem geographically the harder it becomes to deal with. We need to devote far more resources to protecting individuals who face spills, emissions, erosion, impacts to wetland, etc. By speaking more openly about how pervasive these environmental risks are, and how that risk plays into the bigger picture of the climate emergency, we hope we can incite folks to give their time, effort, and resources to defending their health and environment.
By Josh Eisenfeld, Marketing Director at Fair Shake Environmental Legal Services
Guest blog by Natalia N. Romanzo, graduate student, Binghamton University, Binghamton, NY
Innovations in geospatial remote sensing technology developed by a research team at Binghamton University’s Geophysics and Remote Sensing Laboratory allow for improved detection of unplugged oil and gas wells. Implementing this technology would allow responsible agencies to more efficiently locate, and then plug, the 30,000+ undocumented oil and gas wells in New York State. Plugging these wells would help residents to assess risks of any wells on or near their property, improve air quality, and keep New York State on track to reaching its greenhouse gas emissions targets.
Dangers of Unplugged Orphan Oil and Gas Wells
In 2018, the United States Environmental Protection Agency (EPA) estimated that nationwide, there were 3.11 million abandoned oil and gas wells. Sixty-nine percent — or 2.15 million — of these wells are not even plugged. Many were drilled prior to the existence of state regulatory programs, subsequently abandoned by their original owners or operators over a century ago, and then left unplugged or poorly plugged. State and federal regulators are in the process of plugging these wells, but the process is slow; many are still unplugged today.
Anthropogenic methane is the cause of a quarter of today’s global warming, and the oil and gas industry is a leading source of these emissions. Every year, oil and gas companies release an estimated 75 million metric tons of methane globally, an amount of gas sufficient to provide electricity for all of Africa twice over. Unplugged wells are often high emitters contributing to this energy waste. A study of almost 140 wells in Wyoming, Colorado, Utah, and Ohio found that more than 40% of unplugged wells leak methane, compared to less than 1% of plugged wells.
Unplugged, incorrectly plugged, as well as active wells can all leak methane. Methane-leaking wells are especially problematic when their locations are undocumented or unknown. Until they are located, undocumented wells that remain unplugged can continue to emit methane into the atmosphere and into drinking water. For example, in Pennsylvania, methane was detected in water samples at average concentrations six times higher in homes less than one kilometer from oil and gas wells. The potential negative impact of unplugged orphan oil and gas wells makes this a pressing environmental concern.
Of the more than 3 million problematic oil and gas wells nationwide, over 35,000 unplugged oil and gas wells may exist in New York State alone. Unplugged or improperly plugged wells that leak methane can pose direct threats to New York State residents, especially for people living nearby to these wells. Many New York State residents are unaware that they have an unplugged well on their property, and could be at risk of potential exposure to uncontrolled releases of gas or fluids from unplugged orphan wells. In one case in Rushville, New York, two dozen unplugged wells emitted methane at explosive levels. An unplugged well in Rome, New York discharged brine to the land surface for decade at a rate of 5 gallons per minute, killing an acre of wetland vegetation. If these wells had been located and assessed, property owners would be better informed and safer.
In addition to directly harming New York State residents and contributing to climate change, unplugged orphan wells also impact New York State’s ability to reach its 2030 emissions targets. New York State recently set ambitious statewide greenhouse gas emissions targets through the Climate Leadership and Community Protection Act to lower emissions by 85% by 2050. However, New York State has only reduced emissions 8% from 1990-2015 levels. If New York State is to reach its emissions targets, it must continue and improve its efforts to locate, assess, and ultimately plug all its orphan oil and gas wells.
Inaccurate Records and Inefficient Detection Methods
The New York State Department of Environmental Conservation (DEC) is responsible for task of mitigating and preventing damage caused by oil and gas wells. Unfortunately, flaws in record keeping have made it difficult to locate undocumented wells. The DEC began record keeping of oil and gas wells in 1983 and took on regulatory authority over wells drilled in the state after 1983. There are strict rules and regulations for plugging wells drilled after 1983, and wells drilled prior to 1983 must comply with applicable regulations. Nevertheless, many older wells are still unaccounted for. In their external review in 1994, staff estimated that 61,000 wells had been developed prior to 1983. However, the agency only has records on about 30,000 of them. Because accurate records do not exist for old wells, it is difficult to monitor, and even locate, them.
Click here for a full-screen view of FracTracker Alliance’s map of all known wells in New York State (data current as of October 2018, to be updated soon).
Despite inaccurate records, the DEC does try to locate, assess, and plug old wells using maps created by drilling companies in the late 1800s. A section of one such map can be seen in Figure 1. This map shows proposed oil and gas drilling sites in Cattaraugus County, New York in the late 1800s. It has been georeferenced using ArcGIS mapping software to assign present day coordinates to hand drawn features.
Figure 1. Georeferenced Lease Map, Cattaraugus County, New York
Unfortunately, these maps are not entirely reliable. Some wells may be incorrectly documented on a map as drilled when, in fact, they were merely proposed but never drilled; some wells may have been drilled but never marked on a map. Other wells may have been both marked on a map and drilled, but due to inaccurate survey technologies of the past, the location on the ground is incorrect. As a result, DEC staff are left searching on foot for wells that may or may not be there. Working with limited equipment, in dense brush, and over uneven terrain make the task of finding the abandoned wells even more problematic.
These traditional methods of detection, which include referencing lease maps and searching for wells in the field, are not only time consuming, but are also costly. Using traditional methods of well detection, between 1988 and 2009, the United States Bureau of Land Management spent $3.8 million and only successfully reclaimed 295 well sites. It is clear that on both the federal and state levels, traditional well detecting methods are expensive, cumbersome, and inefficient.
Drones Pave the Way for Oil and Gas Well Detection
Recent improvements in geospatial remote sensing technology have opened opportunities for more efficient well detection. Previously, the battery life of drones and the weight of magnetometers prevented the two technologies from being used together to locate oil and gas wells. Furthermore, because drones must be flown high enough to clear vegetative canopies, methane sensors attached to drones are too far away from the source to accurately detect the location of the well. Due to these technological barriers, the DEC and other environmental departments and agencies have had to rely on inefficient, traditional methods of well detection described above.
At Binghamton University’s Geophysics and Remote Sensing Laboratory, a research team headed by Professors Timothy de Smet and Alex Nikulin, along with graduate student Natalia Romanzo, and undergraduate students Samantha Wong, Judy Li, and Ethan Penner, is taking on the task of developing a more efficient method to locate oil and gas wells. The Binghamton University research team deployed drones equipped with magnetometers to demonstrate that a high-resolution, low-altitude magnetic survey can successfully locate unmarked well sites.
Oil and gas wells have a characteristic magnetic signal that is generated by vertical metal piping fixed in the ground, making them identifiable in a magnetic survey.
Figure 2a. Oil and Gas Well Detected at 40m AGL showing LiDAR Total Horizontal Derivative of the site.
The magnetic signal generated by a well is shown in red in Figure 2b. At 40 meters above ground level (AGL), tree canopies are cleared, while the magnetic anomaly of the well is distinguishable. This drone-based magnetometer method has shown promising results.
Figure 2b. Magnetic Anomaly of an Oil and Gas Well Detected at 40m AGL, showing total magnetic intensity of the site.
To further test remote sensing techniques, the Binghamton University research team worked with Charles Dietrich and Nathan Graber from the NYS DEC to compare the efficiency of different survey methods. Currently, researchers are conducting fieldwork to compare the efficiency of traditional methods of well detection, well detection via a magnetic ground survey, and well detection via a drone-based magnetic survey. This research is showing that using drones equipped with magnetometers is a more efficient way to survey a wide area where wells may be present.
Remote sensing techniques can allow the DEC to more efficiently locate, and then plug, the 30,000+ undocumented oil and gas wells in New York State. Using this new method of well detection, the DEC will be able to inform residents who have unplugged wells on their property, assess the risks of the wells, and plug harmful wells. Residents with wells on or near their property will benefit directly. In addition, and more broadly, New Yorkers will enjoy improved air quality while New York State will be more on track to reaching its emissions targets.
FracTracker thanks Natalia Romanzo for her guest blog contribution. We feel that this technology holds promise for communities impacted by drilling across the nation.
For answers to specific questions about the project, you can email Natalia directly at nromanz1@binghamton.edu.
https://www.fractracker.org/a5ej20sjfwe/wp-content/uploads/2019/09/2018-NYS-Oil-and-Gas-Wells-feature-image-2-scaled.jpg6671500Guest Authorhttps://www.fractracker.org/a5ej20sjfwe/wp-content/uploads/2021/04/2021-FracTracker-logo-horizontal.pngGuest Author2019-09-17 09:00:492021-04-15 14:56:25New Method for Locating Abandoned Oil and Gas Wells is Tested in New York State
The Mountaineer State is one of the most stunningly beautiful states in all the United States, despite its complicated and unique relationship with fossil fuels dating back to the West Virginia Coal Wars of 1912 to 1921. This relationship has compromised the state’s distinctive ecosystems and its social cohesion. Instead of remediating or preventing the impacts of fossil fuels, the state’s elected officials have exploited them for political and monetary gain. Understanding this history and the potential next steps in the march of the fossil fuel industry will help those who continue to fight for an alternative future for West Virginia. At the same time, it is critical that we identify legislation that would perpetuate fossil fuel dependence, the individuals who are behind said legislation, and the current extent of the fossil fuel industry, especially considering the developing Appalachian Storage and Trading Hub (ASTH) that is supported by the elected officials in in D.C. and Charleston.
Ohio Power’s Mitchell (Foreground) and Kammer (Background) Coal Power Plants, Marshall County, Combined Capacity 2,345 MegaWatts. Photo by Ted Auch, aerial assistance provided by LightHawk
Impeding Fossil Fuel Developments Threaten West Virginia Once Again
West Virginia has a rich, complicated, and occasionally violent history with coal mining and now is at the vanguard of the High Volume Hydraulic Fracturing (HVHF) revolution. It also happens to sit at the heart of what Appalachian governors, senators, and even land-grant universities are touting is the panacea for all that ails the region: the Appalachian Storage and Trading Hub (ASTH), a key part of the Ohio River Valley petrochemical build out. This puts West Virginia in a peculiar position, with one foot longingly in the past with coal mining and one moving forward with investments in fracking and now the ASTH.
On the one hand, there is local optimism about King Coal’s return, stoked by Donald Trump and industry friends like Robert Murray. A closer look reveals they are sending decidedly different messages to Appalachian coal miners and their families, with the former stating repeatedly that he would bring coal back, and the latter agreeing but offering the caveat that “Trump can’t bring jobs back . . . [because] many of those jobs were lost to technology rather than regulation.”
Murray Energy’s Consolidation Coal Mine, Marshall County
This is not to suggest that there are hard feelings between Trump and Murray; a Document Investigations publication reveals an invitation from Murray Energy to host a Trump fundraiser on July 24, 2019 in Wheeling, West Virginia at WesBanco Arena with a cover charge of $150.00 made payable to Trump Victory, Donald Trump and the Republican National Committee’s joint presidential campaign fundraising. West Virginia Governor Jim Justice (who is uncoincidentally a leading booster of the ASTH) indicated he would be in attendance. Additionally, Murray in his rescheduling letter to the West Virginia governor indicated, “Present with us will be Governors Mike DeWine of Ohio, Jim Justice of West Virginia, and Matt Bevins of Kentucky; Senators Shelley Moore Capito and Rob Portman of these states; and Congressman Bill Johnson and Dave McKinley and the House Speaker and Senate President form the two states.”
Declining Jobs, Increasing Automation
After at least seventeen years of 5% declines in net coal production, and 3% increases in hiring, the coal mining industry in West Virginia had had enough. Starting in 2012, they turned the tide on labor by leaning into the automation revolution and in the process, mine labor has declined by 8% per year since then. Automation and an increasing reliance on more blunt methods of mining, including strip-mining and/or Mountaintop Removal, have allowed the mining industry to increase productivity per labor hour by 5.8% to 6.3% per year since 2012, according to data compiled by US Department of Labor’s Office of Mine Safety and Health Administration. All of these savings translate into Mergers And Acquisitions as well as hefty profits for the likes of Murray, private equity and large institutional investors that have no interest in the welfare of Appalachia, its people, and the constant undertone of labor vs. capital throughout the region.
Even with all the corporate, state, and federal subsidies we have still had a rash of bankruptcies in the last three months. Most recently, Revelation Energy and its affiliate Blackjewel, experts in “Vulture Capitalism,” filed for Chapter 11 on July 1st of this year causing countless bounced paychecks among their 1,700 employees across Virginia, Wyoming, Kentucky, and West Virginia.
So while King Coal continues to paint federal regulations as excessively burdensome and the primary impediment to their expansion, it is clear that the enemy of coal miners is not regulations, but rather automation and the urgent attempt to squeeze every last drop of profitability out of a dying industry. even as coal production nationally declines by nearly double digits annually, a signal that the end is near, mining companies are able to continue generating reliable profits thanks to automation and artificial intelligence. This might be why private equity climate change denying titans like Stephen Schwarzman are investing so heavily in the likes of MIT’s School of Artificial Intelligence. The growing discrepancy between coal production and coal jobs was pointed out in a recent Columbia University report on the failure of states, counties, and communities to prepare themselves for the day when their status as “company towns”[1] will switch from a point of pride to a curse. The Columbia researchers pointed out that:
“Employment in the coal mining industry declined by over 50 percent in West Virginia, Ohio, and Kentucky between 2011 and 2016. State-level impacts mask even more severe effects at local levels. In Mingo County, West Virginia, coal mining employed over 1,400 people at the end of 2011. By the end of 2016, that number had fallen below 500. Countywide, employment fell from 8,513 to 4,878 over this period . . . suggesting there could be important labor market spillovers from mining to the broader economy.”
A Bloody History Haunts West Virginia’s Coal Fields
The last time West Virginia experienced “important labor market spillovers” was during the West Virginia Coal Wars of 1912 to 1921. West Virginia University Press, in summarizing the book “Life, Work, and Rebellion in the Coal Fields: The Southern West Virginia Miners, 1880-1922” by David Alan Corbin, describes this violent moment in the state’s history:
“Between 1880 and 1922, the coal fields of southern West Virginia witnessed two bloody and protracted strikes, the formation of two competing unions, and the largest armed conflict in American labor history – a week-long battle between 20,000 coal miners and 5,000 state police, deputy sheriffs, and mine guards. These events resulted in an untold number of deaths, indictments of over 550 coal miners for insurrection and treason, and four declarations of martial law. Corbin argues that these violent events were collective and militant acts of aggression interconnected and conditioned by decades of oppression. His study goes a long way toward breaking down the old stereotypes of Appalachian and coal-mining culture”
The Coal Wars culminated in the August 1921 Battle of Blair Mountain, the largest labor uprising in United States history which resulted in a deadly standoff between 10,000 armed coal miners and 3,000 strikebreakers called the Logan Defenders. The battle resulted in a casualty range of 20 to 100 as well as the treason conviction of some 22+ United Mine Workers of America members. This crushed the union, and the larger effect was a chill throughout Appalachia for more than a decade.
A similar chill is beginning to percolate as part of the fear around resistance or questioning of the ASTH and its myriad tentacles. This chill is coupled with a growing ambivalence and resignation to the most recent colonization of the Ohio River Valley by yet another iteration of the fossil fuel industrial complex.
How Can Appalachia Escape the Tight Grip of the Hydrocarbon Industrial Complex?
The state’s historical labor strife is worth mentioning to emphasize that Appalachia has been thrown under the “natural resource curse” bus before, and it has not responded kindly (see documentary “Harlan County USA” directed by Barbara Kopple). This might be why industry stakeholders fund the likes of the Koch Brothers-backed American Legislative Executive Council in efforts to pass dubiously titled “critical infrastructure” bills that they’ve written in states including the ASTH states of Ohio, Pennsylvania, Kentucky, and West Virginia. [2] It also might be why West Virginia Senator Manchin is trying to separate himself from his prior optimism about the supposed $84 billion China would invest in ASTH related projects across the state and his willingness to compromise the safety of his own constituents for the sake of profiteering state-backed firms in China, Saudi Arabia, and Thailand.
It won’t be long before we start to hear echoes of Florence Reece’s 1931 labor resistance anthem “Which Side Are You On?” echoing out from every peak and holler in West Virginia in reference to Manchin and Justice. Their milquetoast response to questioning around the viability of the ASTH prompted the West Virginia Gazette editorial page to write:
“So far, the entire project, which was hailed as the salvation of West Virginia’s economy at the time, looks like nothing but smoke and confetti. There’s been no movement and the Justice administration rarely mentions it unless asked. The reply has typically been a guarded ‘it’s happening’ and not much else. It’s time for state government to level with the people of West Virginia on what exactly is happening here. Not only did the announcement raise false hopes, but the question of national security is valid and important. We urge the governor or someone in his administration to give an official update on the project.”
In the interim, West Virginia’s elected officials continue to prop up coal as the Mountaineer State’s salvation. But the gig will be up eventually. It appears that there are two ways to exit this zero-sum relationship with the fossil fuel industry according to the neoliberal economic model we espouse here in the United States: 1) A Glide Path strategy that will allow West Virginia to methodically transition to a more diversified economy, or 2) an extremely painful Jump Condition type transition over a much shorter period of time that will likely last no more than a couple of years and leave West Virginians very angry and looking for someone to blame.
Those of us that accept climate change as fact, advocate for the Green New Deals of the world, and work towards a renewable energy future can easily dismiss either pathway’s impacts on Appalachia with the mantra, “Hey, they [Appalachia] made their bed now they have to lie in it!” However, this would be counter to the social contract narrative we have created for this country and would be incredibly hypocritical given that the primary steroid that fueled American Exceptionalism/Capitalism was cheap and abundant domestic fossil fuels. As Kim Kelly of Teen Vogue so perfectly put it in laying out her very personal connections to the struggle between the need to pay bills and the environmental impacts of fossil fuel reliant jobs: “Make no mistake: The coal miner and pipeline worker know about the environmental costs of their labor, but when faced with the choice of feeding their kids or putting down their tools in the name of saving the planet, the pressures of capitalism tend to win; their choice is made for them.”
Cravat Coal Mine Slurry Pond, Marshall County, West Virginia
Americans rationalize our dependence on fossil fuels on one hand, while simultaneously hectoring those who work tirelessly to get the stuff out of the ground and invest in the companies that employ them by way of 401Ks or other investment vehicles. This hypocrisy is not lost on Appalachia nor should it be. Climate advocates should work with states like West Virginia to transition to a more just future that does not include a doubling down on fossil fuels by way of the ASTH and fracking. If not, the social and political divisions in this country will pale in comparison to what will likely result from a piecemeal and confrontational transition away from the fossil fuel industrial complex that we’ve been told we can’t live without.
Furthermore, we can’t address these issues without acknowledging the selective interventionist policy our government has deployed in the name of “nation building” in the Middle East and elsewhere. Folks like John Perkins, Naomi Klein, and Joseph Stiglitz have demonstrated that our interventionist policy is just a poor cover for the true modus operandi which would be resource control from Saudi Arabia to the most recent example being the effort by the Trump administration to foment opposition to Venezuelan leader Nicholas Maduro. If the latter example isn’t primarily about oil than why do the bi-partisan sanctions include exceptions to allow Chevron, Halliburton, and Schlumberger to continue to operate in Venezuela?
A Path Forward
The Green New Deal is a first step in establishing a path forward for the decarbonization of the US economy and it correctly includes calls for a transition that “would ensure protections for coal miners and other impacted fossil fuel workers.” While mostly nebulous and aspirational at this point, the Green New Deal offers much needed hope and guidance towards a future where economic growth is decoupled from CO2 emissions. Yet, it will have to address the underlying issues associated with economic inequality and the fact that states like West Virginia will have to be involved in the decision-making process rather than having the Green New Deal foisted on them. Otherwise, the Mountaineer State’s politicians in D.C. and Charleston will continue to get away with toying with their constituents’ hopes and dreams with proclamations that the ASTH and rumored infrastructure proposals will provide salvation. In reality, the ASTH is just another corporatist stunt to optimize shareholder return on the backs of Appalachians. This tension was summarized beautifully and succinctly by United Mine Workers of America spokesman Phil Smith who told Reuters, “We’ve heard words like ‘just transition’ before, but what does that really mean? Our members are worried about putting food on the table.”
“ . . . the need to maximize profits for a relatively small section of the U.S. population has shaped the development of America’s most powerful institutions . . . the need for higher profits and endless growth has intensified environmental destruction, resource depletion, instability, social and political inequality, and even global warming. These problems have become systemic and solutions therefore require long-term systemic change . . . [and the development of] alternative institutions. As these alternatives evolve and grow, they will place the U.S. economy on a path to a new system. Systemic change will come about gradually by the will of people who purposefully steer the development of the economic institutions in their communities in a positive and healthy direction. To this end Mindful Economics lays a foundation for building new alternatives that are democratic, locally-based and ecologically sustainable. Such alternatives are not only viable, they can be found all across the United States. Through a network of alternative institutions, people can begin to build alternatives to capitalism and provide hope for future generations.”
Ecotrust’s Conservation Economy website offers a road map for how Appalachia can move towards an alternative future that “integrates Social, Natural, and Economic Capital” (see the pattern map below). Appalachia has been stripped of much of its economic capital but it still has a bountiful supply of social and natural capital!
Conservation Economy’s Pattern Map
The Map
We constructed a map that illustrates West Virginia’s past, present, and future dependence on fossil fuels. The map shows 16,864 oil, gas, and coal parcels as well as those that are rumored to be of interest to the fossil fuel industrial complex in the near future. The parcels average 164 acres in size and amount to 2,770,310 acres or 4,329 square miles. These parcels amount to 17.9% of West Virginia but are largely concentrated in the counties of Boone, Kanawha, Logan, Wyoming, McDowell, Mingo, and Fayette.
Also included in this map are:
annual production data for 880 mines between 2001 and 2017 and
annual oil, natural gas, and natural gas liquid (NGL) production for 3,689 unconventional wells between 2002 and 2018.
By Ted Auch, Great Lakes Program Coordinator, FracTracker Alliance with invaluable data compilation assistance from Gary Allison
[1] If you aren’t familiar with this term I would refer you to Columbia University’s data for Boone County, West Virginia: “The numbers suggest that about a third of Boone County’s revenues directly depended on coal in the form of property taxes on coal mines and severance taxes. In 2015, 21 percent of Boone County’s labor force and 17 percent of its total personal income were tied to coal. Coal property (including both the mineral deposit and industrial equipment) amounted to 57 percent of Boone County’s total property valuation. Property taxes on all property generated about half of Boone County’s general fund budget, which means that property taxes just on coal brought in around 30 percent of the county’s general fund. Property taxes on coal also funded about $14.2 million of the $60.3 million school budget (24 percent). In total, coal-related property taxes generated approximately $21 million for Boone County’s schools, the county government, and specific services.”
[2] ALEC finalized their “Model Policy” in December, 2017, and gave it the ultimate Orwellian title of “Critical Infrastructure Protection Act.” Many elected officials throughout the fossil fuel network’s Heartland have introduced this legislation nearly verbatim, including Ohio State Senator Frank Hoagland’s S.B. 33, which represents much of Ohio’s Ohio River Valley, where the ASTH would have its most pronounced impacts.
If this article was helpful to you, please contribute to FracTracker today. Any amount is greatly appreciated!
By Isabelle Weber, FracTracker Alliance Spring 2019 Intern
Fracking in Pennsylvania: The History
When driving through Pennsylvania, you can see what an impact oil and gas has had on the state. Towns like Oil City and Petrolia speak to the oil and gas industry’s long standing history here. In more recent history, Pennsylvania has been a prime fracking location because of the presence of the Marcellus shale formation that covers over half of the state. With more unconventional oil and gas exploration came impacts to communities, who were denied their right to “clean air, pure water, and the preservation of the natural, scenic, historic, and esthetic values of the environment” as defined by the Pennsylvania Constitution.
Hydraulically fractured wells are often no longer profitable after just one stimulation, after which they are abandoned. Improperly abandoned wells wreak havoc on our communities and our environment. The number of improperly abandoned wells has been increasing over time as companies go bankrupt transfer wells to other companies. These wells can easily go undetected because they are often buried underground, leaving no traces at the surface level.
These unplugged abandoned wells are underneath our homes, our schools, and in our own backyards, negatively impacting our health and the environment.
FracTracker’s West Coast Coordinator Kyle Ferrar shows how abandoned wells are hiding all around us in his investigation of downtown Los Angeles. He used an infrared camera to visualize the plumes of methane and other volatile organic compounds spewing out of abandoned wells in the middle of streets.
Dangers of unplugged abandoned wells
The plugging process consists of filling the well with cement, ensuring that nothing leaks from the well into the surrounding ecosystem. Without that measure in place, the chemical-water solution used to frack the underlying shale, as well as any oil or natural gas still left in the well, can very easily seep into nearby aquifers or into close by waterways. Wells that are not plugged or are not plugged properly leak into nearby aquifers, releasing methane and other volatile organic compounds are continually released from the well into the atmosphere as well. This leakage into the atmosphere and ground water can have disastrous effects on our ecosystem and health.
Abandoned wells are also a dangerous threat because many of their locations are unknown. These wells can ruin the structural integrity of buildings and homes that are unknowingly built on top of them. The methane leaking out of the well is colorless and odorless, meaning that it can easily build-up in homes or elsewhere and cause explosions.
Bankruptcy and Bonds
When an oil and gas company drills a well, they are responsible for making sure that it is plugged properly at the end of the well’s life. This is the case even if the company goes bankrupt. To do this, Pennsylvania government requires that the company put up a bond that is set aside to plug the well properly. This ensures that if the company does go bankrupt, the necessary funds are already set aside to plug the well. Normally, this bond takes the shape of a blanket bond amount of $25,000 which is intended to cover the total expenses that would be incurred in plugging all of the wells a company has in the state. Depending on the number of wells a company possesses, this could mean very little actually being set aside for each individual well.
A shallow well can cost between $8,000 to $10,000 plus, and up to $50,000 or more depending on how difficult it is to plug. In the case of Pennsylvania’s top oil and gas holder Diversified Gas & Oil PLC and its recently acquired. Company Alliance Petroleum Corp, this bond sets aside just $2 per well. With most other companies holding no more than 5,700 wells, this sets aside $4.40 per well. Where the bond amounts fall short in accounting for the cost to plug the hundreds of thousands of abandoned wells across the state, the rest of the cost falls at the feet of taxpayers.
The New Contract
The state government has started to recognize the severity of the situation as they are confronted with a mountain of costs in plugging these wells. To start to mitigate this, the government has recently settled with Diversified Gas & Oil. The company has been ordered to properly plug 1,058 abandoned wells. To do this they have signed on to a $7 million bond with $20,000 to $30,000 bonds for each additional abandoned or non-producing well that is acquired.
Although it is a great start to ensure that these two major companies have the proper bonding amount moving forward, this does not apply to all companies, whose likelihood of going bankrupt puts a lot of financial pressure on Pennsylvanian citizens. Also, these 1,058 wells are only the tip of the iceberg, with the DEP estimating that there are between 100,000 and 560,000 total abandoned wells in Pennsylvania, many of which still have unknown locations.
In the 2017 Pennsylvania Oil and Gas Report, it is stated that: “Currently, more abandoned wells are being added to the state’s inventory than are being addressed through permanent plugging through state-issued contracts. Since 2015, DEP has been able to fund the plugging of oil and gas wells only in emergency situations and/or when residents must be temporarily evacuated from their homes due to imminent threats that legacy wells pose when well integrity is compromised.” They continue on by stating that, considering the historic operating costs and acknowledging the sheer number of wells, properly addressing es the abandoned wells will cost between $150 million and $3.7 billion. The $150 million is an estimation based on the scenario that no more historic legacy wells are discovered, and the $3.7 billion is based on if 200,000 more are found, a more likely scenario.
The funding to cover the costs of plugging these abandoned wells comes from surcharges of $150 and $200 established by the 1984 Oil and Gas Act for each oil well permit and gas well permit. The DEP has received fewer permits in recent years meaning that there are very little funds to resolve this issue. This means that eventually this public health and environmental burden will have to fall at the feet of the taxpayers.
This makes the state’s step in the right direction look more like a tip toe. With no real, substantial plans to locate and address the large amount of wells across the state, the government is putting their people at risk because these abandoned wells are not harmless.
Washington County Case study
Washington County can be used as a window into the abandoned well crisis in Pennsylvania. This county sits in the middle of the Marcellus Shale formation, making it a key site for unconventional oil and gas development. According to the DEP, there are 215 abandoned, orphaned wells in Washington county, but realistically we know that there are likely many more than that.
The Pennsylvania Spatial Data Access (PASDA) has derived a dataset from historical sources to determine the possible locations of other abandoned wells. These historical documents include the WPA, Ksheet, and Hsheet collections. This data set highlights over 6,000 locations where an abandoned oil and gas well could be located.
This is a testament to how many of these wells exist without our knowledge. If this difference in DEP records and possible wells is this great in Washington County, then we face the enormous potential problem of tens of thousands of additional abandoned wells that need to be resolved. The effects of these wells are real and they must be identified quickly.
These are some of the physical effects of abandoned wells:
Fig 1. A Collapsed Well Opening – A Physical Hazard (photo credit: Friends of Oil Creek State Park)
Fig. 2. Well Spouting Acid Water. Well later plugged by DEP (photo credit: Friends of Oil Creek State Park)
Fig. 3. Oil Seepage (photo credit:(photo credit: Friends of Oil Creek State Park)
Fig. 4. Abandoned Well and Storage Tank (photo credit: Friends of Oil Creek State Park)
Conclusion
Pennsylvania is facing a mountain of an issue with decades of work ahead. The state must act quickly to ensure the health and protection of our people and our environment, which entails taking active steps to secure an adequate budget to resolve this issue. To start, the state should identify where all of the wells are, set up a financial plan that puts the cost of the plugging process for these wells back onto the oil and gas companies, and begin to take active measures to plug the wells quickly and efficiently.
https://www.fractracker.org/a5ej20sjfwe/wp-content/uploads/2019/08/Abandoned-wells-PA-feature.png6671500Intern FracTrackerhttps://www.fractracker.org/a5ej20sjfwe/wp-content/uploads/2021/04/2021-FracTracker-logo-horizontal.pngIntern FracTracker2019-08-08 14:17:382023-03-09 13:57:30Abandoned Wells in Pennsylvania: We’re Not Doing Enough
https://www.fractracker.org/a5ej20sjfwe/wp-content/uploads/2019/07/DSC_0624_LowRes-scaled.jpg9821500Shannon Smithhttps://www.fractracker.org/a5ej20sjfwe/wp-content/uploads/2021/04/2021-FracTracker-logo-horizontal.pngShannon Smith2019-08-07 09:36:032020-03-20 17:32:33Wildness Lost – Pine Creek
FracTracker is closely mapping and following the petrochemical build-out in Appalachia, as the oil and gas industry invests in petrochemical manufacturing. Much of the national attention on the build-out revolves around the Appalachian Storage Hub (ASH), a venture spearheaded by Appalachian Development Group.
The ASH involves a network of infrastructure to store and transport natural gas liquids and finds support across the political spectrum. Elected officials are collaborating with the private sector and foreign investors to further development of the ASH, citing benefits such as national security, increased revenue, job creation, and energy independence.
Left out of the discussion are the increased environmental and public health burdens the ASH would place on the region, and the fact that natural gas liquids are the feedstock of products such as plastic and resins, not energy.
The “Shale Revolution” brought on by high-volume hydraulic fracturing (fracking) in this region encompasses thousands of wells drilled into the Marcellus and Utica-Point Pleasant shale plays across much of the Allegheny Plateau. This area spans from north of Scranton-Wilkes Barre, Pennsylvania, just outside the Catskills Mountains to the East in Susquehanna County, Pennsylvania, and down to the West Virginia counties of Logan, Boone, and Lincoln. The westernmost extent of the fracking experiment in the Marcellus and Utica shale plays is in Noble and Guernsey Counties in Ohio.
Along the way, producing wells have exhibited steeper and steeper declines during the first five years of production, leading the industry to develop what they refer to as “super laterals.” These laterals (the horizontal portion of a well) exceed 3 miles in length and require in excess of 15 million gallons of freshwater and 15,000 tons of silica sand (aka, “proppant”)[1].
The resource-intense super laterals are one way the industry is dealing with growing pressure from investors, lenders, the media, state governments, and the public to reduce supply costs and turn a profit, while also maintaining production. (Note: unfortunately these sources of pressures are listed from most to least concerning to industry itself!)
Another way the fracking industry is hoping to make a profit is by investing in the region’s natural gas liquids (NGLs), such as ethane, propane, and butane, to support the petrochemical industry.
The Appalachian Storage Hub
Continued oil and gas development are part of a nascent effort to establish a mega-infrastructure petrochemical complex, the Appalachian Storage Hub (ASH). For those that aren’t familiar with the ASH it could be framed as the fracking industry’s last best attempt to lock in their necessity across Appalachia and nationwide. The ASH was defined in the West Virginia Executive as a way to revitalize the Mountain State and would consist of the following:
“a proposed underground storage facility that would be used to store and transport natural gas liquids (NGLs) extracted from the Marcellus, Utica and Rogersville shales across Kentucky, Ohio, Pennsylvania and West Virginia. Construction of this hub would not only lead to revenue and job creation in the natural gas industry but would also further enable manufacturing companies to come to the Mountain State, as the petrochemicals produced by shale are necessary materials in most manufacturing supply chains…[with] the raw materials available in the region’s Marcellus Shale alone…estimated to be worth more than $2 trillion, and an estimated 20 percent of this shale is composed largely of ethane, propane and butane NGLs that can be utilized by the petrochemical industry in the manufacturing of consumer goods.”
This is yet another example of fracking rhetoric that appeals to American’s sense of patriotism and need for cheaper consumer goods (in this case, plastics), given that they are seeing little to no growth in wages.
While a specific location for underground storage has not been announced, the infrastructure associated with the ASH (such as pipelines, compressor stations, and processing stations) would stretch from outside Pittsburgh down to Catlettsburg, Kentucky, with the latter currently the home of a sizeable Marathon Oil refinery. The ASH “would act like an interstate highway, with on-ramps and off-ramps feeding manufacturing hubs along its length and drawing from the available ethane storage fields. The piping would sit above-ground and follow the Ohio and Kanawha river valley.”
The politics of the ASH – from Columbus and Charleston to Washington DC
Elected officials across the quad-state region are supporting this effort invoking, not surprisingly, its importance for national security and energy independence.
State-level support
West Virginia Senator Joe Manchin (D) went so far as to introduce “Senate Bill 1064 – Appalachian Energy for National Security Act.” This bill would require Secretary of Energy Rick Perry and his staff to “to conduct a study on the national security implications of building ethane and other natural-gas-liquids-related petrochemical infrastructure in the United States, and for other purposes.”
Interestingly, the West Virginia Senator told the West Virginia Roundtable Inc’s membership meeting that the study would not examine the “national security implications” but rather the “additional security benefits” of an Appalachian Storage Hub and cited the following to pave the way for the national security study he is proposing: “the shale resource endowment of the Appalachian Basin is so bountiful that, if the Appalachian Basin were an independent country, the Appalachian Basin would be the third largest producer of natural gas in the world.”
Senator Manchin is not the only politician of either party to unabashedly holler from the Appalachian Mountaintops the benefits of the ASH. Former Ohio Governor, and 2016 POTUS primary participant, John Kasich (R) has been a fervent supporter of such a regional planning scheme. He is particularly outspoken in favor of the joint proposal by Thailand-based PTT Global Chemical and Daelim to build an ethane cracker in Dilles Bottom, Ohio, across the Ohio River from Moundsville, West Virginia. The ethane cracker would convert the region’s fracked ethane into ethylene to make polyethylene plastic. This proposed project could be connected to the underground storage component of the ASH.
Dilles Bottom, OH ethane cracker site. Photo by Ted Auch, aerial assistance provided by LightHawk.
Not to be outdone in the ASH cheerleading department, West Virginia Governor Jim Justice (R), who can’t seem to find any common ground with Democrats in general nor Senator Manchin specifically, is collaborating with quad-state governors on the benefits of the ASH. All the while, these players ignore or dismiss the environmental, social, and economic costs of such an “all in” bet on petrochemicals and plastics.
Even the region’s land-grant universities have gotten in on the act, with West Virginia University’s Appalachian Oil and Natural Gas Research Consortium and Energy Institute leading the way. WVU’s Energy Institute Director Brian Anderson pointed out that, “Appalachia is poised for a renaissance of the petrochemical industry due to the availability of natural gas liquids. A critical path for this rebirth is through the development of infrastructure to support the industry. The Appalachian Storage Hub study is a first step for realizing that necessary infrastructure.”
utilize a new or significantly improved technology;
avoid, reduce or sequester greenhouse gases;
be located in the United States; and,
have a reasonable prospect of repayment.
This type of Public-Private Investment Program is central planning at its finest, in spite of the likelihood that the prospects of the ASH meeting the second and fourth conditions above are dubious at best (even if the project utilizes carbon capture and storage technologies).
Public-Private Investment Programs have a dubious past. In her book “Water Wars,” Vandana Shiva discusses the role of these programs globally and the involvement of institutions like the World Bank and International Monetary Fund:
“public-private partnerships”…implies public participation, democracy, and accountability. But it disguises the fact that the public-private partnership arrangements usually entail public funds being available for the privatization of public goods…[and] have mushroomed under the guise of attracting private capital and curbing public-sector employment.”
In response to the Department of Energy’s Title XVII largesse, Congresswoman Pramila Jayapal and Ilhan Omar introduced Amendment 105 in Rule II on HR 2740. According to Food and Water Watch, this amendment would restrict “the types of projects the Department of Energy could financially back. It would block the funding for ALL projects that wouldn’t mitigate climate change.”
The only condition of Department of Energy’s Title XVII loan program ASH is guaranteed to meet is the third (be located in the United States), but as we’ve already mentioned, the level of foreign money involved complicates the domestic facade.
Foreign involvement in the ASH lends credence to Senator Manchin’s and others’ concerns about where profits from the ASH will go, and who will be reaping the benefits of cheap natural gas. The fact that the ASH is being heavily backed by foreign money is the reason Senator Manchin raised an issue with the outsized role of state actors like Saudi Arabia and China as well as likely state-backed private investments like PTT Global Chemical’s. The Senator even cited how a potential $83.7 billion investment in West Virginia from China’s state-owned energy company, China Energy, would compromise “domestic manufacturing and national security opportunities.”
“Critical” infrastructure
With all of the discussion and legislation focused on energy and national security, many don’t realize the output of the ASH would be the production of petroleum-based products: mainly plastic, but also fertilizers, paints, resins, and other chemical products.
Bills like this and the not unrelated “critical infrastructure” bills being shopped around by the American Legislative Exchange Council will amplify the rural vs urban and local vs state oversight divisions running rampant throughout the United States. The reason for this is that yet another natural resource boom/bust will be foisted on Central Appalachia to fuel urban growth and, in this instance, the growth and prosperity of foreign states like China.
Instead of working night and day to advocate for Appalachia and Americans more broadly, we have legislation in statehouses around the country that would make it harder to demonstrate or voice concerns about proposals associated with the ASH and similar regional planning projects stretching down into the Gulf of Mexico.
Producing wells mapped
Impacts from the ASH and associated ethane cracker proposals will include but are not limited to: an increase in the permitting of natural gas wells, an increase in associated gas gathering pipelines across the Allegheny Plateau, and an exponential increase in the production of plastics, all of which are harmful to the region’s environment and the planet.
The production of the region’s fracked wells will determine the long-term viability of the ASH. From our reading of things, the permitting trend we see in Ohio will have to hit another exponential inflection point to “feed the beast” as it were. Figure 1 shows an overall decline in the number of wells drilled monthly in Ohio.
Figure 2, below it, shows the relationship between the number of wells that are permitted verse those that are actually drilled.
Figures 1. Monthly (in blue) and cumulative (in orange) unconventional oil and gas wells drilled in Ohio, January, 2013 to November, 2018
Figure 2. Permitted Vs Drilled Wells in Ohio, January, 2013 to November, 2018
That supply-demand on steroids interaction will likely result in an increased reliance on “super laterals” by the high-volume hydraulic fracturing industry. These laterals require 5-8 times more water, chemicals, and proppant than unconventional laterals did between 2010 and 2012.
Given this, we felt it critical to map not just the environmental impacts of this model of fracking but also the nuts and bolts of production over time. The map below shows the supply-demand links between the fracking industry and the ASH, not as discrete pieces or groupings of infrastructure, but rather a continuum of up and downstream patterns.
The current iteration of the map shows production values for oil, natural gas, and natural gas liquids, how production for any given well changes over time, and production declines in newer wells relative to those that were fracked at the outset of the region’s “Shale Revolution.” Working with volunteer Gary Allison, we have compiled and mapped monthly (Pennsylvania and West Virginia) and quarterly (Ohio)[2] natural gas, condensate, and natural gas liquids from 2002 to 2018.
This map includes 15,682 producing wells in Pennsylvania, 3,689 in West Virginia, and 2,064 in Ohio. We’ve also included and will be updating petrochemical projects associated with the ASH, either existing or proposed, across the quad-states including the proposed ethane cracker in Dilles Bottom, Ohio and the ethane cracker under construction in Beaver County, Pennsylvania, along with two rumored projects in West Virginia.
We will continue to update this map on a quarterly basis, will be adding Kentucky data in the coming months, and will be sure to update rumored/proposed petrochemical infrastructure as they cross our radar. However, we can’t be everywhere at once so if anyone reading this hears of legitimate rumors or conversations taking place at the county or township level that cite tapping into the ASH’s infrastructural network, please be sure to contact us directly at info@fractracker.org.
By Ted Auch, Great Lakes Program Coordinator, FracTracker Alliance with invaluable data compilation assistance from Gary Allison
Feature Photo: Ethane cracker plant under construction in Beaver County, PA. Photo by Ted Auch, aerial assistance provided by LightHawk.
[1] For a detailed analysis of the HVHF’s increasing resource demand and how lateral length has increased in the last decade the reader is referred to our analysis titled “A Disturbing Tale of Diminishing Returns in Ohio” Figures 12 and 13.
[2] Note: For those Bluegrass State residents or interested parties, Kentucky data is on its way!
https://www.fractracker.org/a5ej20sjfwe/wp-content/uploads/2019/07/Cracker-Plant-2-scaled.jpg6831500Ted Auch, PhDhttps://www.fractracker.org/a5ej20sjfwe/wp-content/uploads/2021/04/2021-FracTracker-logo-horizontal.pngTed Auch, PhD2019-07-23 14:37:052021-04-15 14:56:27The Underlying Politics and Unconventional Well Fundamentals of an Appalachian Storage Hub
California regulators halt well permitting after Consumer Watchdog and FracTracker reveal a surge in well permits under California Governor Newsom
October 24th, 2019 update:
There have been several exciting updates since FracTracker Alliance and Consumer Watchdog released a report on fracking and regulatory corruption under Governor Newsom’s administration, detailed in the article below.
On July 11th, 2019, immediately following the report’s release, Governor Newsom fired Ken Harris, head of California’s Division of Oil, Gas, and Geothermal Resources (DOGGR).
“The Governor has long held concerns about fracking and its impacts on Californians and our environment, and knows that ultimately California and our global partners will need to transition away from oil and gas extraction. In the weeks ahead, our office will work with you to find new leadership of (the division) that share this point of view and can run the division accordingly.”
FracTracker Alliance supports the governor’s decision and hopes that new leadership acts in the best interests of Californians while moving the state towards 100% renewable energy.
Two months later in September, it was announced that no new fracking permits had been approved in California since the report was issued. We’re thrilled to see this immediate cessation. Yet, while new fracking activity has halted, other forms of oil and gas development continue to threaten Californian’s health and natural resources.
FracTracker Alliance’s review of public records found that DOGGR issued approximately 1,200 permits for steam injection and other “enhanced recovery” techniques through September 2nd, a 60% increase from the 749 permits issued in the same period last year. Sources within DOGGR revealed that at least 40 illegal oil spills from wells were ongoing in Kern and Santa Barbara Counties.
A final development came on October 12th, when Governor Newsom signed a bill to prevent oil and gas development on state lands. As state lands often neighbor federal lands, this bill will play a role in protecting federal land from pipelines, wells, and other polluting infrastructure. Newsom also changed the name of DOGGR to the “Geologic Energy Management Division,” and modified its mission to include protecting public health and environmental quality.
We remain hopeful that Newsom will take a bold stance in leading California away from fossil fuels.
Original July 11th, 2019 FracTracker article:
FracTracker Alliance and Consumer Watchdog have uncovered new data showing an increase in oil and gas permitting by California regulators in 2019 compared to 2018, calling into question Governor Gavin Newsom’s climate commitment. Even more concerning, this investigation found that state regulators are heavily invested in the oil companies they regulate.
FracTracker Alliance’s new report with Consumer Watchdog compares oil and gas permitting policies of the current Governor Gavin Newsom’s administration with that of former Governor Jerry Brown’s administration.
The former lieutenant governor to Brown, Governor Newsom has set out to make a name for himself. As part of stepping out of Brown’s shadow, Newsom has expressed support for a Just Transition away from fossil fuels. Governor Newsom’s 2020 budget plan includes environmental justice measures and an unprecedented investment to plan for this transition that includes investments in job training.
Yet five months into Governor Newsom’s first term, regulators are on track to allow companies to drill and “frack” more new oil and gas wells than Brown allowed in 2018. The question now is: will Governor Newsom actually take the next step that Brown could not, and prioritize the reduction of oil extraction in California?
In addition, the Consumer Watchdog report reveals that eight California regulators with the Division of Oil, Gas, and Geothermal Resources (DOGGR) are heavily invested in the oil companies they regulate. FracTracker and Consumer Watchdog are calling for the the removal of DOGGR officials with conflicts of interest, and an immediate freeze on new well approval. Read the letter to Governor Newsom here.
Governor Brown’s Legacy
Around the world, Brown is recognized as a climate warrior. His support of solar energy technology and criticisms of the nuclear and fossil fuel industry was ultimately unique in the late 1970’s.
In 1980, during his second term as Governor and short presidential campaign, he decried that fellow democrat and incumbent President Jimmy Carter had made a “Faustian bargain” with the oil industry. Since then, he has continued to push for state controls on greenhouse gas emissions. To end his political career, Brown hosted an epic climate summit in San Francisco, California, which brought together climate leaders, politicians, and scientists from around the world.
While Brown championed the reduction of greenhouse gas emissions, his policies in California were contradictory. While front-line communities called for setbacks from schools, playgrounds, hospitals and other sensitive receptors, Brown ignored these requests. Instead he sought to spur oil production in the state. Brown even used state funds to explore his private properties for oil and mineral resources that could be exploited for personal profit.
Brown’s terms in the Governor’s office show trends of increasing oil and gas production. The chart in Figure 1 shows that during his first term (1979-1983), California oil extraction grew towards a peak in production. Then in 2011 at the start of Brown’s second term (2011-2019), crude oil production again inflected and continued to increase through 2015, ending a 25-year period of relatively consistent reduction.
We are therefore interested in looking at existing data to understand if moving forward, Governor Newsom will continue Brown’s legacy of support for California oil production. We start by looking at the first half of 2019, the beginning of Governor Newsom’s term, to see if his administration will also allow the oil and gas industry to increase extraction in California.
Figure 1. Chart of California’s historic oil production, from the EIA
Analysis
The FracTracker Alliance has collaborated with the non-profit Consumer Watchdog to review records of oil and gas well permits issued in 2018 and thus far into 2019.
Records of approved permits were obtained from the CA Department of Conservation’s Division of Oil Gas and Geothermal Resources (DOGGR). Weekly summaries of approved permits for the 52 weeks of 2018 and the first 22 weeks of 2019 (January 1st-June 3rd) were compiled, cleaned, and analyzed. Notices of well stimulations were also included in this analysis. The data is mapped here in the Consumer Watchdog report, as well as in more detail below in the map in Figure 2.
Figure 2. Map of California’s Permits, 2018 and 2019
At FracTracker, we are known for more than simply mapping, so we have, of course, extracted all the information that we can from this data. The dataset of DOGGR permits included details on the type of permit as well as when, where, and who the permits were granted. With this information we were able to answer several questions.
Of particular note and worthy of prefacing the data analysis was the observation of the very low numbers of permits granted in the LA Basin and Southern California, as compared to the Central Valley and Central Coast of California.
First, what are the types of permits issued?
Regulators require operators to apply for permits for a number of activities at well sites. This dataset includes permits to drill wells, including re-drilling existing wells, permits to rework existing wells, and permits to “sidetrack”. Well stimulations using techniques such as hydraulic fracturing and acid fracturing also require permits, as outline in CA State Bill 4.
How many permits have regulators issued?
In 2018, DOGGR approved 4,368 permits, including 2,124 permits to drill wells. In 2019, DOGGR approved 2,366 permits from January 1 – June 3, including 1,212 permits to drill wells. At that rate, DOGGR will approve 5,607 total permits by the end of 2019, including 2,872 wells.
That is an increase of 28.3% for total permits and an increase of 35.3% for drilling oil and gas wells.
DOGGR also issued 222 permits for well stimulations in 2018. So far in 2019, DOGGR has issued 191 permits for well stimulations, an increase of 103.2%.
Who is applying for permits?
As shown in Table 1 below, the operators Chevron U.S.A. Inc., Aera Energy LLC ( a joint conglomerate of Shell Oil Company and ExxonMobil), and Berry Petroleum Company, LLC dominate the drilling permit counts for both 2018 and 2019.
Aera has obtained the most drilling permits thus far into 2019, while Chevron obtained the most permits in 2018, almost 100 more than Aera. In 2019, Chevron was issued almost 3 times the amount of rework permits as Aera, and both have outpaced Berry Petroleum.
Table 1. Permit Counts by Operator
Where are the permits being issued?
Data presented in Table 2 indicate which fields are being targeted for drilling and rework permits. While the 2019 data represents less than half the year, the number of drilling permits is almost equal to the total drilling permit count for 2018.
Majority players in the Midway-Sunset field are Berry Petroleum and Chevron. South Belridge is dominated by Aera Energy and Berry Petroleum. The Cymric field is mostly Chevron and Aera Energy; McKittrick is mostly Area Energy and Berry Petroleum. The Kern River field, which has by far the most reworks (most likely due to its massive size and age) is entirely Chevron.
The details of this analysis show that DOGGR has allowed for a modest increase in permits for oil and gas wells in 2019. The increase in well stimulations in 2019 is estimated to be larger, at 103.2%.
There was the consideration that this could be a seasonal phenomenon since we extrapolated from data encompassing just less than the first half of the year. But upon reviewing data for several other years, that does not seem to be the case. The general trend was instead increasing numbers of permits as each year progresses, with smaller permit counts through the first half of the year.
Oil prices do not provide much explanation either. The chart in Figure 3 shows that crude prices were higher in 2018 than they have been for the vast majority of 2019. The increase in permits could be the result of oil and gas operators like Chevron and Aera anticipating a stricter regulatory climate under Governor Newsom. Operators may be securing as many permits as possible, while DOGGR is still liberally issuing them. This could be a consequence of the Governor’s recognition of the need for California to begin a managed decline of fossil fuel production and end oil drilling in California.
Could this be an early industry death rattle?
Figure 3. Crude prices in 2018 and 2019
By Kyle Ferrar, Western Program Coordinator, FracTracker Alliance
https://www.fractracker.org/a5ej20sjfwe/wp-content/uploads/2019/07/inglewood-field-ca-feature-1-scaled.jpg6671500Kyle Ferrar, MPHhttps://www.fractracker.org/a5ej20sjfwe/wp-content/uploads/2021/04/2021-FracTracker-logo-horizontal.pngKyle Ferrar, MPH2019-07-11 14:48:462021-04-15 14:56:28Permitting New Oil and Gas Wells Under the Newsom Administration
