Posts

FracTracker map of the density of wells by U.S. state as of 2015

1.7 Million Wells in the U.S. – A 2015 Update


 

Updated National Well Data

By Matt Kelso, Manager of Data & Technology

In February 2014, the FracTracker Alliance produced our first version of a national well data file and map, showing over 1.1 million active oil and gas wells in the United States. We have now updated that data, with the total of wells up to 1,666,715 active wells accounted for.

Density by state of active oil and gas wells in the United States. Click here to access the legend, details, and full map controls. Zoom in to see summaries by county, and zoom in further to see individual well data. Texas contains state and county totals only, and North Carolina is not included in this map. 

While 1.7 million wells is a substantial increase over last year’s total of 1.1 million, it is mostly attributable to differences in how we counted wells this time around, and should not be interpreted as a huge increase in activity over the past 15 months or so. Last year, we attempted to capture those wells that seemed to be producing oil and gas, or about ready to produce. This year, we took a more inclusive definition. Primarily, the additional half-million wells can be accounted for by including wells listed as dry holes, and the inclusion of more types of injection wells. Basically anything with an API number that was not described as permanently plugged was included this time around.

Data for North Carolina are not included, because they did not respond to three email inquiries about their oil and gas data. However, in last year’s national map aggregation, we were told that there were only two active wells in the state. Similarly, we do not have individual well data for Texas, and we use a published list of well counts by county in its place. Last year, we assumed that because there was a charge for the dataset, we would be unable to republish well data. In discussions with the Railroad Commission, we have learned that the data can in fact be republished. However, technical difficulties with their datasets persist, and data that we have purchased lacked location values, despite metadata suggesting that it would be included. So in short, we still don’t have Texas well data, even though it is technically available.

Wells by Type and Status

Each state is responsible for what their oil and gas data looks like, so a simple analysis of something as ostensibly straightforward as what type of well has been drilled can be surprisingly complicated when looking across state lines. Additionally, some states combine the well type and well status into a single data field, making comparisons even more opaque.

Top 10 of 371 published well types for wells in the United States.

Top 10 of 371 published well types for wells in the United States.

Among all of the oil producing states, there are 371 different published well types. This data is “raw,” meaning that no effort has been made to combine similar entries, so “gas, oil” is counted separately from “GAS OIL,” and “Bad Data” has not been combined with “N/A,” either. Conforming data from different sources is an exercise that gets out of hand rather quickly, and utility over using the original published data is questionable, as well. We share this information, primarily to demonstrate the messy state of the data. Many states combine their well type and well status data into a single column, while others keep them separate. Unfortunately, the most frequent well type was blank, either because states did not publish well types, or they did not publish them for all of their wells.

There are no national standards for publishing oil and gas data – a serious barrier to data transparency and the most important takeaway from this exercise… 

Wells by Location

Active oil and gas wells in 2015 by state. Except for Texas, all data were aggregated published well coordinates.

Active oil and gas wells in 2015 by state. Except for Texas, all data were aggregated published well coordinates.

There are oil and gas wells in 35 of the 50 states (70%) in the United States, and 1,673 out of 3,144 (53%) of all county and county equivalent areas. The number of wells per state ranges from 57 in Maryland to 291,996 in Texas. There are 135 counties with a single well, while the highest count is in Kern County, California, host to 77,497 active wells.

With the exception of Texas, where the data are based on published lists of well county by county, the state and county well counts were determined by the location of the well coordinates. Because of this, any errors in the original well’s location data could lead to mistakes in the state and county summary files. Any wells that are offshore are not included, either. Altogether, there are about 6,000 wells (0.4%) are missing from the state and county files.

Wells by Operator

There are a staggering number of oil and gas operators in the United States. In a recent project with the National Resources Defense Council, we looked at violations across the few states that publish such data, and only for the 68 operators that were identified previously as having the largest lease acreage nationwide. Even for this task, we had to follow a spreadsheet of which companies were subsidiaries of others, and sometimes the inclusion of an entity like “Williams” on the list came down to a judgement call as to whether we had the correct company or not.

No such effort was undertaken for this analysis. So in Pennsylvania, wells drilled by the operator Exco Resources PA, Inc. are not included with those drilled by Exco Resources PA, Llc., even though they are presumably the same entity. It just isn’t feasible to systematically go through thousands of operators to determine which operators are owned by whom, so we left the data as is. Results, therefore, should be taken with a brine truck’s worth of salt.

Top 10 wells by operator in the US, excluding Texas. Unknown operators are highlighted in red.

Top 10 wells by operator in the US, excluding Texas. Unknown operators are highlighted in red.

Texas does publish wells by operator, but as with so much of their data, it’s just not worth the effort that it takes to process it. First, they process it into thirteen different files, then publish it in PDF format, requiring special software to convert the data to spreadsheet format. Suffice to say, there are thousands of operators of active oil and gas wells in the Lone Star State.

Not counting Texas, there are 39,693 different operators listed in the United States. However, many of those listed are some version of “we don’t know whose well this is.” Sorting the operators by the number of wells that they are listed as having, we see four of the top ten operators are in fact unknown, including the top three positions.

Summary

The state of oil and gas data in the United States is clearly in shambles. As long as there are no national standards for data transparency, we can expect this trend to continue. The data that we looked for in this file is what we consider to be bare bones: well name, well type, well status, slant (directional, vertical, or horizontal), operator, and location. In none of these categories can we say that we have a satisfactory sense of what is going on nationally.

Click on the above button to download the three sets of data we used to make the dynamic map (once you are zoomed in to a state level). The full dataset was broken into three parts due to the large file sizes.

Northeast Ohio Class II injection wells taken via FracTracker's mobile app, May 2015

OH Class II Injection Wells – Waste Disposal and Industry Water Demand

By Ted Auch, PhD – Great Lakes Program Coordinator

Waste Trends in Ohio

Map of Class II Injection Volumes and Utica Shale Freshwater Demand in Ohio

Map of Class II Injection Volumes and Utica Shale Freshwater Demand in Ohio. Explore dynamic map

It has been nearly 2 years since last we looked at the injection well landscape in Ohio. Are existing disposals wells receiving just as much waste as before? Have new injection wells been added to the list of those permitted to receive oil and gas waste? Let’s take a look.

Waste disposal is an issue that causes quite a bit of consternation even amongst those that are pro-fracking. The disposal of fracking waste into injection wells has exposed many “hidden geologic faults” across the US as a result of induced seismicity, and it has been linked recently with increases in earthquake activity in states like Arkansas, Kansas, Texas, and Ohio. Here in OH there is growing evidence – from Ashtabula to Washington counties – that injection well volumes and quarterly rates of change are related to upticks in seismic activity.

Origins of Fracking Waste

Furthermore, as part of this analysis we wanted to understand the ratio of Ohio’s Class II waste that has come from within Ohio and the proportion of waste originating from neighboring states such as West Virginia and Pennsylvania. Out of 960 Utica laterals and 245+ Class II wells, the results speak to the fact that a preponderance of the waste is coming from outside Ohio with out-of-state shale development accounting for ≈90% of the state’s hydraulic fracturing brine stream to-date. However, more recently the tables have turned with in-state waste increasing by 4,202 barrels per quarter per well (BPQPW). Out-of-state waste is only increasing by 1,112 BPQPW. Such a change stands in sharp contrast to our August 2013 analysis that spoke to 471 and 723 BPQPW rates of change for In- and Out-Of-State, respectively.

Brine Production

Ohio Class II Injection Well trends In- and Out-Of-State, Cumulatively, and on Per Well basis (n = 248).

Figure 1. Ohio Class II Injection Well trends In- and Out-Of-State, Cumulatively, and on Per Well basis (n = 248).

For every gallon of freshwater used in the fracking process here in Ohio the industry is generating .03 gallons of brine (On average, Ohio’s 758 Utica wells use 6.88 million gallons of freshwater and produce 225,883 gallons of brine per well).

Back in August of 2013 the rate at which brine volumes were increasing was approaching 150,000 BPQPW (Learn more, Fig 5), however, that number has nearly doubled to +279,586 BPQPW (Note: 1 barrel of brine equals 32-42 gallons). Furthermore, Ohio’s Class II Injection wells are averaging 37,301 BPQPW (1.6 MGs) per quarter over the last year vs. 12,926 barrels BPQPW – all of this between the initiation of frack waste injection in 2010 and our last analysis up to and including Q2-2013. Finally, between Q3-2010 and Q1-2015 the exponential increase in injection activity has resulted in a total of 81.7 million barrels (2.6-3.4 billion gallons) of waste disposed of here in Ohio. From a dollars and cents perspective this waste has generated $2.5 million in revenue for the state or 00.01% of the average state budget (Note: 2.5% of ODNR’s annual budget).

Freshwater Demand Growing

Ohio Class II Injection Well disposal as a function of freshwater demand by the shale industry in Ohio between Q3-2010 and Q1-2015.

Figure 2. Ohio Class II Injection Well disposal as a function of freshwater demand by the shale industry in Ohio between Q3-2010 and Q1-2015.

The relationship between brine (waste) produced and freshwater needed by the hydraulic fracturing industry is an interesting one; average freshwater demand during the fracking process accounts for 87% of the trend in brine disposal here in Ohio (Fig. 2). The more water used, the more waste produced. Additionally, the demand for OH freshwater is growing to the tune of 405-410,000 gallons PQPW, which means brine production is growing by roughly 12,000 gallons PQPW. This says nothing for the 450,000 gallons of freshwater PQPW increase in West Virginia and their likely demand for injection sites that can accommodate their 13,500 gallons PQPW increase.

Where will all this waste go? I’ll give you two guesses, and the first one doesn’t count given that in the last month the ODNR has issued 7 new injection well permits with 9 pending according to the Center For Health and Environmental Justice’s Teresa Mills.

Frac

Fracking’s Most Wanted – An NRDC Issue Paper

Lifting the Veil on Oil & Gas Company Spills & Violations

NRDC Issue Paper • April 2015

Today Natural Resources Defense Council (NRDC) released a report in conjunction with work by those of us at FracTracker Alliance.

We launched this investigation to determine what information about oil and gas company violations is publicly available on the Internet, how accessible it is, and whether it provides an adequate understanding about the practices of different companies.

This report highlights the information gaps about the frequency and nature of oil and gas company violations; such data is only publically accessible in 3 states – even though 36 states have active oil and gas development.

To take the review one step further, we analyzed the data that was available from these states – Pennsylvania, Colorado, and West Virginia. The results show that companies have been issued a series of violations, some of which were quite severe.

Of these companies, the following 10 had the most violations overall, in order of most to least:

  1. Chesapeake Energy (669)
  2. Cabot Oil and Gas (565)
  3. Talisman Energy (362))
  4. Range Resources (281)
  5. EXCO Resources (249)
  6. ExxonMobil (246)
  7. EQT Corporation (245)
  8. Anadarko Petroleum Corporation (235)
  9. Shell (223)
  10. Penn Virginia Corporation (186)

Find out more information, including the top violators in PA, CO, and WV, on NRDC’s website or by reading the full report (PDF)

Contact: Kate Slusark Kiely, 212-727-4592 or kkiely@nrdc.org

 

What can violations data tell us?

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

The rate of violations by fracking companies has been of significant interest to many groups including our own. But why? What can violations data tell us about oil and gas safety that a news article about a particular incident cannot?

When companies do not follow regulatory standards and protocols – and either self report the issue or are caught – they may be issued a citation of some sort by the state regulatory agency where the violation occurred. While data of this kind is not always readily available, we can gain key insights into the environment of a particular company and the related state agency by reviewing these violations more closely.

The Stories Behind the Data

Violation trends can be indicators of environmental and public health risks, by looking into spills or illegal air emissions. The degree of transparency both within the oil and gas industry, as well as in the state regulatory agency, can be gleaned based on the quality and quantity of data available about company violations. And of course, the degree to which a company complies with our state and federal laws says a lot about their corporate environment and safety protocols.

In Pennsylvania, for example, we have seen a decline in violations per well over time (Figure 1, below). At first glance, this trend appears to be a step in the right direction. There could be several reasons behind this change, however, including but not limited to:

  • Improved compliance among operators – Great!
  • Decreased regulatory inspections – Not so great
  • Decreased regulatory reporting of violations during those inspections – Not so great
  • Changes in what qualifies as a “violation” or how violations data is collected/shared
  • Less self reporting by the companies when something goes wrong – Not so great
  • Larger, more established operators with better safety protocols have bought out smaller, resource-limited companies
  • Improved control technologies or infrastructure (throughputs) – Great!
  • More public pressure to comply with regulations – Great!
VpW PA Over Time

Figure 1. Violations per well drilled in PA 2005-2014. Data source

Two Recent Violations Data Reports

With the insight that can be acquired by analyzing violations (and other types of data), it is not uncommon to see an increase in the organizations and researchers digging into the data.

On January 27th, for example, Environment America released a report detailing the top oil and gas violators in the United States. Among their many findings…

Houston-based Cabot Oil, a prime Halliburton contractor, committed the most total violations with 265 across the study period. Chesapeake Energy was close behind. Pittsburgh-based Atlas was guilty of the most breaches for every well drilled, while Mieka, part of Dallas-based Vadda Energy, was responsible for the most infractions per well operated. Learn more

A report that we wrote last year finally made its way through peer review and was published in the Journal of Environmental Science and Health, Part A on Tuesday last week1. We did not focus specifically on the operators committing violations like Environment America did, but on the state of the data that is or should be available to the public about these operations from state regulatory agencies. Unfortunately, we found that many states often do not release violations data – especially not in a publicly accessible manner. Learn more about this study through an article I wrote for the Sunlight Foundation’s blog or check out the abstract.

A third violations report is due out soon, so keep your eyes peeled! UPDATE: As of April 2, 2015 – The Natural Resources Defense Council report is available.

Endnotes

1. The other publications in the special issue, Facing the Challenges – Research on Shale Gas Extraction, are listed below:

Foreword
John F. Stolz Professor, Duquesne University
Pages: 433-433

Current perspectives on unconventional shale gas extraction in the Appalachian Basin
David J. Lampe & John F. Stolz
Pages: 434-446

Long-term impacts of unconventional drilling operations on human and animal health
Michelle Bamberger & Robert E. Oswald
Pages: 447-459

Human exposure to unconventional natural gas development: A public health demonstration of periodic high exposure to chemical mixtures in ambient air
David R. Brown, Celia Lewis & Beth I. Weinberger
Pages: 460-472

Reported health conditions in animals residing near natural gas wells in southwestern Pennsylvania
I. B. Slizovskiy, L. A. Conti, S. J. Trufan, J. S. Reif, V. T. Lamers, M. H. Stowe, J. Dziura & P. M. Rabinowitz
Pages: 473-481

Marcellus and mercury: Assessing potential impacts of unconventional natural gas extraction on aquatic ecosystems in northwestern Pennsylvania
Christopher J. Grant, Alexander B. Weimer, Nicole K. Marks, Elliott S. Perow, Jacob M. Oster, Kristen M. Brubaker, Ryan V. Trexler, Caroline M. Solomon, & Regina Lamendella
Pages: 482-500

Data inconsistencies from states with unconventional oil and gas activity
Samantha Malone, Matthew Kelso, Ted Auch, Karen Edelstein, Kyle Ferrar, & Kirk Jalbert
Pages: 501-510

Scintillation gamma spectrometer for analysis of hydraulic fracturing waste products
Leong Ying, Frank O’Connor, & John F. Stolz
Pages: 511-515

Well water contamination in a rural community in southwestern Pennsylvania near unconventional shale gas extraction
Shyama K. Alawattegama, Tetiana Kondratyuk, Renee Krynock, Matthew Bricker, Jennifer K. Rutter, Daniel J. Bain, & John F. Stolz
Pages: 516-528

Danger Around the Bend

The Threat of Oil Trains in Pennsylvania

A PennEnvironment Report – Read Full Report (PDF)

On the heels of the West Virginia oil train explosion, this new study and interactive map show populations living in the evacuation zone of a potential oil train crash.

PA Oil Train Routes Map


This dynamic map shows the population estimates in Pennsylvania that are within a half-mile of train tracks – the recommended evacuation distance in the event of a crude oil rail car explosion. Zoom in for further detail or view fullscreen.

Danger Around the Bend Summary

The increasingly common practice of transporting Bakken Formation crude oil by rail from North Dakota to points across the nation—including Pennsylvania—poses a significant risk to the health, well-being, and safety of our communities.

This risk is due to a confluence of dangerous factors including, but not limited to:

  1. Bakken Formation crude oil is far more volatile and combustible than typical crude, making it an incredibly dangerous commodity to transport, especially over the nation’s antiquated rail lines.
  2. The routes for these trains often travel through highly populated cities, counties and neighborhoods — as well as near major drinking water sources.
  3. Bakken Formation crude is often shipped in massive amounts — often more than 100 cars, or over 3 million gallons per train.
  4. The nation’s existing laws to protect and inform the public, first responders, and decision makers are woefully inadequate to avert derailments and worst-case accidents from occurring.
Lac-Mégantic derailment. Source: http://en.wikipedia.org/wiki/Lac-M%C3%A9gantic_derailment

Lac-Mégantic derailment, July 2013. Source

In the past few years, production of Bakken crude oil has dramatically increased, resulting in greater quantities of this dangerous fuel being transported through our communities and across the nation every day. This increase has led to more derailments, accidents, and disasters involving oil trains and putting local com- munities at risk. In the past 2 years, there have been major disasters in Casselton, North Dakota; Lynchburg, Virginia; Pickens County, Alabama; and most recently, Mount Carbon, West Virginia. The worst of these was the town of Lac-Mégantic, in Canada’s Quebec Province. This catastrophic oil train accident took place on July 6, 2013, killing 47 people and leveling half the town.

Oil train accidents have not just taken place in other states, they have also happened closer to home. Pennsylvania has had three near misses in the last two years alone — one near Pittsburgh and two in Philadelphia. In all three cases, trains carrying this highly volatile Bakken crude derailed in densely populated areas, and in the derailment outside of Pittsburgh, 10,000 gallons of crude oil spilled. Fortunately these oil train accidents did not lead to explosions or fires.

All of these incidents point to one fact: that unless we take action to curb the growing threat of oil trains, the next time a derailment occurs an unsuspecting community may not be so lucky.

Bakken oil train routes often travel through high-density cities and neighborhoods, increasing the risk of a catastrophic accident for Pennsylvania’s residents. Reviewing GIS data and statewide rail routes from Oak Ridge National Laboratory, research by FracTracker and PennEnvironment show that millions of Pennsylvanians live within the potential evacuation zone (typically a half-mile radius around the train explosion ). Our findings include:

  • Over 3.9 million Pennsylvania residents live within a possible evacuation zone for an oil train accident.
  • These trains travel near homes, schools, and day cares, putting Pennsylvania’s youngest residents at risk. All told, more than 860,000 Pennsylvania children under the age of 18 live within the 1⁄2 mile potential evacuation zone for an oil train accident.
  • Philadelphia County has the highest at-risk population — Almost 710,000 people live within the half-mile evacuation zone. These areas include neighborhoods from the suburbs to Center City.
  • 16 of the 25 zip codes with the most people at risk — the top percentile in the state — are located in the city of Philadelphia.
  • The top five Pennsylvania cities with the most residents at risk are:
    • Philadelphia (709869, residents),
    • Pittsburgh (183,456 residents),
    • Reading (70,012 residents),
    • Scranton (61,004 residents), and
    • Erie (over 51,058 residents).

 

Bakken Crude Oil

How we get it and why we ship it

Bakken crude oil comes from drilling in the Bakken Formation, located in North Dakota. It contains deposits of both oil and natural gas, which can be accessed by hydraulic fracturing, or “fracking.” Until recent technological developments, the oil contained in the formation was too difficult to access to yield large production. But advances in this extraction technology since 2007 have transformed the area into a major oil producer — North Dakota now ranks second in the U.S. for oil production. The vast expansion of wells over the last 4 years (from 470 wells to over 3,300 today) means that there is more oil to transport to the market, both domestically and abroad. This increase is especially concerning considering that the U.S. Department of Transportation stated in early 2014 that Bakken crude oil may be more flammable than traditional crude, therefore making it more dangerous to transport by rail.

For More Information

Shale Gas Development on Public Lands

By Mark Szybist and George Jugovic, Jr., PennFuture Guest Authors

Citizens for Pennsylvania’s Future (PennFuture) and FracTracker Alliance have collaborated to create a unique GIS map that enables the public to investigate how shale gas development is changing the face of our public lands. The map allows viewers to see, in one place:

  • Pennsylvania’s State Forests, Parks and Game Lands;
  • State Forest tracts containing active oil and gas leases;
  • State Forest areas where the oil and gas rights have been “severed” from the surface lands and are owned by third parties;
  • State Forest lands that are to be protected for recreational use under the federal Land and Water Conservation Fund Act;
  • The location of unconventional shale gas wells that have been drilled on State Forest and State Game Lands; and
  • The boundaries of watersheds that contain one or more High Quality or Exceptional Value streams.

The goal of this project was to develop a resource that would highlight the relationship between unconventional shale gas development and public resources that the State holds in trust for Pennsylvania’s citizens under Article I, Section 27 of the Pennsylvania Constitution. It is our hope that the map will be useful to citizens, conservation groups and others in planning educational, advocacy, and recreational activities.

The Public Lands Map


A full screen version of The Public Lands Map can be found here.

Background

Public lands held in trust by the Commonwealth of Pennsylvania for citizens of the state are managed by various state agencies and commissions. The vast majority of State lands, though, are managed by just two bodies – the Department of Conservation and Natural Resources (DCNR) and the Pennsylvania Game Commission (PGC). Under Act 147 of 2012, the Department of General Services has the authority to lease other lands controlled by the state. In recent years, DCNR and the PGC have made liberal use of their powers to lease State lands for oil and gas development.

DCNR: State Forests, State Parks, and Publicly Owned Streambeds

The DCNR manages approximately 2.2 million acres of State Forest lands and 283,000 acres of State Park lands, as well as many miles of publicly owned streambeds. The Conservation and Natural Resources Act (CNRA) authorizes DCNR to develop oil, gas and other minerals under these lands, so long as the state controls those mineral rights. In some cases, separate persons or entities own the surface of the land and mineral rights. Where DCNR does not control the mineral rights, the owners of the oil and gas have the ability to make reasonable use of the land surface for mineral extraction, subject to restrictions in their property deeds.

Before the start of the Marcellus era, the DCNR leased about 153,268 acres of State Forest lands for mineral development. These leases largely allowed the drilling of “conventional” shallow vertical gas wells. Between 2008 and 2010, the DCNR, under Governor Ed Rendell, leased another 102,679 acres of public lands for natural gas development – but this time the leases were for the drilling of horizontal wells in “unconventional” shale formations using high-volume hydraulic fracturing.

Following the lease sale, DCNR published a report on October 26, 2010 that stated any further gas leasing of State Forest Lands would jeopardize the sustainability of the resource. As a result, Governor Rendell signed Executive Order 2010-05, which placed a moratorium on the sale of any additional leases for oil and gas development on lands “owned and managed by DCNR.

On May 23, 2014, Governor Tom Corbett revoked Governor Rendell’s moratorium, and issued a new Executive Order that allowed the issuance of additional leases for gas development beneath State Lands so long as the leases did not entail “additional surface disturbance on State Forest or State Park lands.” Ultimately, Governor Corbett’s DCNR did not enter into any leases under the new Order. However, between January 2011 and January 2015, Governor Corbett’s DCNR did issue leases for gas extraction beneath a number of publicly owned streambeds, which, according to the Post-Gazette, raised $19 million. Governor Corbett’s DCNR also renewed at least one State Forest lease that otherwise would have expired.

On January 29, 2015, Governor Tom Wolf issued another Executive Order on the matter, which re-established a moratorium on the leasing of State Park and State Forest lands “subject to future advice and recommendations by DCNR.” The Order allows for the continued leasing of publicly owned streambeds. As of the publication of this blog, the DCNR is fighting two lawsuits concerning the leasing of the lands it manages, one by the Pennsylvania Environmental Defense Foundation and one by the Delaware Riverkeeper Network.

Drilling in Loyalsock State Forest, PA. Photo by Pete Stern 2013

Drilling in Loyalsock State Forest, PA. Photo by Pete Stern 2013.

PGC: State Game Lands

The PGC manages more than 1.5 million acres of State Game Lands that it may lease for gas development under the Pennsylvania Game and Wildlife Code. The PGC can also exchange mineral rights beneath State Game Lands for “suitable lands having an equal or greater value.” To date, the PGC has entered into surface and non-surface leases (technically, cooperative agreements for the exercise of oil and gas production rights) for natural gas development totaling 92,000 acres, of which about 45,000 acres were leased since 2008.

Land and Water Conservation Fund Act Lands

The LWCF Act is a federal law administered by the National Park Service (NPS) that authorizes federal grants to state and local governments for “outdoor recreation.” When a state accepts money for a recreational project, it agrees to protect the recreational value of the area supported by the grant. If the state later decides to take or allow actions that would “convert” parts of the protected area to a non-recreational use (1) the state must seek prior approval from the NPS, and (2) the NPS must perform an environmental assessment of the proposed conversion under the National Environmental Policy Act. The NPS may approve a conversion of LWCF-supported lands only if those lands will be replaced with “other recreation properties of at least equal fair market value and of reasonably equivalent usefulness and location.”

Between 1978 and 1986, Pennsylvania received three LWCF grants (Project Numbers 42-00580, 42-01235, and 42-01351) to support recreational opportunities on State Forest lands. Most of the money was used to improve roads in various State Forests to improve access for hunters, hikers and anglers. The LWCF layer on the Public Lands map represents those areas that Pennsylvania agreed to protect in exchange for these grants.

In 2009 and 2010, Pennsylvania entered into leases opening up about 11,718 acres of LWCF-protected areas to unconventional gas development. On the map, these areas can be highlighted by selecting “Land and Water Conservation Fund Lands” and “SF Lands – DCNR Leases”; the purplish, overlapping areas represent the leased LWCF lands.

Governor Corbett’s DCNR refused to recognize that shale gas development on public lands constituted a “conversion” under the LWCF Act. The Sierra Club was the first to identify this problem in a 2011 letter to the NPS and the DCNR. That letter requested, among other things, that the NPS formally determine the extent to which DCNR leasing of LWCF-protected State Forest lands has violated the LWCF Act. Nearly four years later, the NPS has yet to determine whether drilling and fracking of unconventional gas wells and construction of the necessary support structures constitutes a “conversion” and loss of recreational opportunities under the LWCF Act.

Old Loggers Path

Old Loggers Path, a favorite among hikers

A Note on the Map Layers

The sources of the GIS layers in the Public Lands map are explained in the “Details” section of the map. For the most part, PennFuture and FracTracker obtained or created the layers from public sources and through open records requests to the DCNR. In all cases, the layers came from the DCNR with a disclaimer as to the accuracy of the data and a warning about relying on the data.

GIS layers that are not currently on the map, but that this project hopes to add, include:

  • State Game Lands that have been leased for drilling;
  • State Park and Game Lands where the oil and gas rights have been “severed” and not controlled by the State;
  • Publicly owned streambeds that the State has leased for oil and gas development;
  • Public lands containing areas of significant ecologic value; and
  • Compressor stations, natural gas and water pipelines, and fresh water and wastewater impoundments.

Persons having access to this data are invited to contact PennFuture or FracTracker.

Is Carroll Co. truly the king of Ohio’s Utica counties?

Yes and No…

By Ted Auch, Great Lakes Program Coordinator, FracTracker Alliance

We know from the most recent Ohio Department of Natural Resources (ODNR) permitting numbers that Carroll County, Ohio is home to 26% (461 of 1,778) of the state’s Utica permits and 43% (312 of 712) of all producing wells as of the end of Q3-20141 (Figure 1). But does that mean that the county will continue to see that kind of industrial activity for the foreseeable future? The primary question we wanted to ask with this latest piece is whether the putative “king” of the state’s Utica shale gas counties is indeed Carroll County.

Ohio’s Utica Permits within & adjacent to the Muskingum River Watershed as of February, 2015.

Fig 1. Ohio’s Utica Permits within & adjacent to the Muskingum River Watershed as of February, 2015

To do this we compiled an inventory of annual (2011-2012) and quarterly OH shale gas production numbers for 721 laterals throughout southeast OH.

Permitting and production numbers are not necessarily part and parcel to determine if Carrol Co is truly the king. We decided to investigate the production data and do a simple compare and contrast with the rest of the state’s 409 laterals on one side (ROS) and the 312 Carroll laterals on the other – focusing primarily on days of production and resulting oil, gas, and brine (Table 1 and infographic below).

Carroll vs. ROS Results

Permitting Numbers Breakdown

Monthly and cumulative Utica Shale permitting activity in Carrol County, OH vs. the Rest of State (ROS) between September 2010 and January 2015

Fig 2. Monthly & cumulative Utica Shale permitting activity in Carrol County, OH vs. the ROS between September 2010 & January 2015

Between the initial permitting phase of September 2010 and January 2105 the number of Utica Shale permits issued in the ROS has averaged 29 per month vs. 10 per month in Carroll County. Permitting actually increased twofold in the ROS in the last 12 months (Figure 2). Conversely, permitting in Carroll County seems to have reached some sort of a steady state, with monthly permitting declining by 23% in the last 12 months. Carroll’s Utica permits generally constituted 47% of all permitting in OH but more recently has dipped to 44%. Newer areas of focus include Belmont, Guernsey, Noble, and Columbiana counties, just to name a few.

Production Days

Days in production is a proxy for road activity and labor hours. Carroll’s wells have the rest of the state beat for that metric, with an average of 292 (±188 days) days. The state average is 192 days, with significant well-to-well variability (±177 days). If we assume there was a total of 1,369 possible production days between 2011 and the end of Q3-2014, these averages translate to 21% and 14% of total possible production days for Carroll and ROS, respectively.

Oil Production

Carroll falls short of the ROS on a total and per-day basis of oil production, although the 442-barrel difference in total oil production is likely not significant. Carroll wells are producing 74 barrels of oil per day (OPD) (±73 OPD) compared to 96 OPD (±122 OPD) for the rest of the state; however, well-to-well variability is so large as to make this type of comparison quite difficult at this juncture. Fifty-seven percent of OH’s 11,361,332 barrels of Utica oil has been produced outside of Carroll County to date. This level of production is equivalent to 16,231 rail tanker cars and roughly 00.18% of US oil production between 2011 and 2013.

This number of rail tanker cars is equivalent to 6% of the US DOT-111 fleet, or 184 miles worth of trains – enough to stretch from Columbus to Pittsburgh.

Natural Gas

The natural gas story is mixed, with Carroll’s 312 wells having produced 13,430 MCF more than the ROS wells. On a per-well basis, however, the latter are producing 3,327 MCF per day (MCFPD) (±3,477 MCFPD) relative to the 2,155 MCFPD (±1,264 MCFPD) average for Carroll’s wells. Yet again, well-to-well variability – especially in the case of the 409 ROS wells – is high enough that such simple comparisons would require further statistical analysis to determine whether differences are significant or not.

The natural gas produced here in OH currently amounts to roughly 00.51% of U.S. Natural Gas Marketed Production, according to the latest data from the EIA.

Waste – Brine

From a waste generation point of view, the ROS laterals have produced 41 more barrels of brine per day (BPD) than the Carroll laterals and 1,465 BPD since production began in 2011. On a per-day basis, the ROS laterals are producing more oil than waste at a rate of 1.92 barrels of oil per barrel of brine waste. Conversely, since production began these respective sums result in Carroll County laterals having produced 1.56 barrels of oil for every barrel of brine vs. the 1.40 oil-to-brine ratio for the ROS. Finally, it is worth noting that the 7,775,130 barrels of brine produced here in OH amounts to 13% of all fracking waste processed by the state’s 235+ Class II Injection wells.

What do these figures mean?

As we begin to compare OH’s Utica Shale expectations vs. reality we see that the “sweet spot” of the play is truly a moving target. The train seems to have already left – or is in the process of leaving – the station in Carroll County (Figures 3 and 4). It seems two of the most important questions to ask now are:

  1. How will this rapidly shifting flow of capital, labor, and resources affect future counties deemed the next best thing? and
  2. What will be left in the wake of such hot money flows?

Answers to these questions will be integral to the preparation for the inevitable sudden or slow-and-steady decline in shale gas activity. These dropouts are just the most recent in a long line of boom-bust cycles to have been foisted on Southeast OH and Appalachia. Effects will include questions regarding watershed resilience, local and regional resource utilization (Figures 5 and 6), social cohesion, tax-base uncertainty, roads, and a rapidly changing physical landscape.

Whether Carroll County can maintain its perch on top of the OH shale mountain is far from certain, but whether it will have to begin to – or should have already – prepare for the downside of this cliff is fact based on the above analysis.

Additional Figures and Charts

Table 1. Carroll County, OH production days and production of oil, gas, and brine on a per-day basis and in total between 2011 and Q3-2014 vis à vis the “Rest of State”

Variable Carroll (312) Rest of State (409)
Max Sum Mean Max Sum Mean
Total Days 914 91,193 292±188 898 78,430 192±177
Oil (Barrels)
Per Day 453 23,190 74±73 601 39,109 96±122
Total 83,098 4,838,147 15,507 129,005 6,523,185 15,949
Gas (MCF)
Per Day 6,774 672,391 2,155±1,264 18,810 1,360,923 3,327±3,477
Total 2,196,240 168,739,064 540,830 3,181,013 215,706,401 527,400
Brine (Barrels)
Per Day 941 18,516 59±87 810 40,839 100±120
Total 36,917 3,105,260 9,953 99,095 4,669,870 11,418
Oil Per Unit of Brine
Per Day 1.25 1.92
Total 1.56 1.40

Figures 3a-d. Spatial distribution of Carroll County Utica Shale production days, oil (barrels), natural gas (MCF), and brine (barrels) on a per-day basis.

Spatial distribution of Carroll County Utica Shale production days

Fig 3a. Spatial distribution of Carroll Co. Utica Shale production days

Spatial distribution of Carroll County Utica Shale oil (barrels) production on a per-day basis

Fig 3b. Spatial distribution of Carroll Co. Utica Shale oil (barrels) production on per-day basis

Spatial distribution of Carroll County Utica Shale natural gas (MCF) production on a per-day basis

Fig 3c. Spatial distribution of Carroll Co. Utica Shale natural gas (MCF) production on per-day basis

Spatial distribution of Carroll County Utica Shale brine (barrels) production on a per-day basis

Fig 3d. Spatial distribution of Carroll County Utica Shale brine (barrels) production on a per-day basis

Figures 4a-d. Spatial distribution of OH Utica Shale production days, oil (barrels), natural gas (MCF), and brine (barrels) on a per-day basis.

Ohio Utica Shale Total Production Days, 2011-2014

Fig 4a. Ohio Utica Shale Total Production Days, 2011-2014

Ohio Utica Shale Total Oil Production (Barrels), 2011-2014

Fig 4b. Ohio Utica Shale Total Oil Production (Barrels), 2011-2014

Ohio Utica Shale Total Natural Gas Production (MCF), 2011-2014

Fig 4c. Ohio Utica Shale Total Natural Gas Production (MCF), 2011-2014

Ohio Utica Shale Total Brine Production (Barrels), 2011-2014

Fig 4d. Ohio Utica Shale Total Brine Production (Barrels), 2011-2014

Figures 5a-d. Histograms and Spatial distribution of OH Utica Shale total hydrochloric acid (HCl, gallons) and silica sand (tons) demands.

Histogram of OH Utica Shale total Hydrochloric Acid (HCl, gallons)

Fig 5a. Histogram of OH Utica Shale total Hydrochloric Acid (HCl, gallons)

Spatial distribution of OH Utica Shale total Hydrochloric Acid (HCl, gallons)

Fig 5b. Spatial distribution of OH Utica Shale total Hydrochloric Acid (HCl, gallons)

Histogram of OH Utica Shale total Silica Sand (10^3 Tons)

Fig 5c. Histogram of OH Utica Shale total Silica Sand (10^3 Tons)

Spatial distribution of OH Utica Shale total Silica Sand (Tons)

Fig 5d. Spatial distribution of OH Utica Shale total Silica Sand (Tons)

Figures 6a-b. Histograms and Spatial distribution of OH Utica Shale total resource utilization in terms of pounds per lateral.

Histogram of OH Utica Shale total materials used (10^6 Pounds)

Fig 6a. Histogram of OH Utica Shale total materials used (10^6 Pounds)

Spatial distribution of OH Utica Shale total materials used (Pounds)

Fig 6b. Spatial distribution of OH Utica Shale total materials used (Pounds)

Endnote

1. Additionally, all of Carroll County’s permitted wells lie within the already – and increasingly so – stressed Muskingum River Watershed (MRW) which has been a significant source of freshwater for the shale gas industry courtesy of the novel pricing schemes of its managing body the Muskingum Watershed Conservancy District (MWCD) (Figure 1). Carroll laterals are requiring 5.41 million gallons per lateral Vs the state average of 6.58 million gallons per lateral.

Pennsylvania Data Discrepancies

By Matt Kelso, Manager of Data & Technology

The Pennsylvania Department of Environmental Protection (PADEP) publishes oil and gas well data in two different places: on their own website’s Spud Data Report, and in the Oil and Gas Locations file published on the PA Spatial Data Access repository, also known as PASDA. Because these two sources are both ultimately published by PADEP, it would stand to reason that the data sources would match up. Unfortunately, that is not the case. Learn more about the data discrepancies we uncovered:


This map shows those wells in Pennsylvania that only show up on one of the two data sources. Pink dots show wells that appear on PASDA but not the PADEP site, while the reverse is true for blue wells. Click here for the full screen view with additional map tools.

Methodology

Both of these data sources have existed for years. When FracTracker does analyses of PA, we usually use data directly from the PADEP site, because it includes far more information about the wells, such as the spud date, county, municipality, well configuration, and whether or not the well is classified as unconventional. Even though it has less information about each well, the data on PASDA is useful for expediently mapping the inventory of wells in the Keystone State. In this current analysis, we looked at both sources, and found significant discrepancies between the two.

Individual oil and gas wells have been given unique API numbers since the 1950’s. The overwhelming majority of items on both lists that we examined have these numbers, and those that do not have other numeric identifiers in their place. The uniqueness of the data in these columns is what we used to determine the number of wells on both lists. These columns in both data sources were then tested against one another using Microsoft Excel in order to determine which wells were included on both lists.

The data on PASDA is described as “Oil and Gas Locations,” and nothing in available metadata made it clear as to whether wells that were permitted but not yet drilled might be included in this or not. Additionally, we are mostly interested in wells that are still operational, assuming that there might be accuracy issues for historical wells in an industry that has been operational in the state since before the Civil War. We did, however, include orphaned and abandoned wells, as they remain a source of impact throughout the state.

Summary

PADEP_PASDA_descrep

Number of wells in PA in various categories. For brevity, “Total wells – Drilled and not plugged” is shown as “TW-DnP.”

We found 3,315 records of drilled, unplugged wells with location information on the PASDA dataset that are not on the PADEP search tool, and 96 such wells on the PADEP site that aren’t found on PASDA. Additionally, there are 35,434 drilled and unplugged wells in the PADEP data that lack location data, although six of these wells are actually on the PASDA site, meaning that there is some location data for them somewhere at PADEP.

For those of you who might be looking for discrepancies in our discrepancy table, one might expect the number of both wells that appear on both lists (the second to last row on the chart) to be identical. The biggest reason that they are not is that some wells appear in the PASDA dataset multiple times. There are 6,997 fewer unique wells than there are entries on the full file, or a 95.74% match rate. In comparison, the PADEP spud report only has 19 duplicates for over 204,000 wells, a 99.99% match between the number of wells and the number of records. Indeed, when we filter for unique wells, the difference between the two lists shrinks to only 40 records, which might be explained by differences is well statuses that were used to shape our analysis.

This chart shows the number of wells drilled per year in Susquehanna County, through 2/11/15.

Number of wells drilled per year in Susquehanna Co., through 2/11/15.

Undoubtedly, it will take some effort to get the two datasets to reflect the full set of wells in PA, but that is certainly a task than can be accomplished. The wells lacking location data are likely to be much more of a challenge. If we include all status types, there are 75,508 wells on the spud report that lack latitude and longitude values altogether, leaving us with only the county and municipality to determine where these wells are located. Hopefully, this crucial data exists somewhere in the PADEP inventory, and these wells are not in fact lost.

Finally, there are a couple of things to note about dates. Since the PASDA dataset does not include spud dates, it is impossible to determine the age of the majority of the mismatched wells. Looking at the pink dots on the interactive map above, though, it is clear that a large number of these mismatched PASDA wells are in the northeastern corner of the state that has been booming since the recent development of the Marcellus, but saw little to no development before that time – at least according to the spud report.

Of the 96 wells that are on the spud report but not PASDA, 67 are given the date “1/1/1800,” which seems to be a default date; over 94,000 wells on the report have this listed as the spud date. Most of the other wells that don’t match are relatively old wells, with spud dates ranging between 1960 and 1984. One of these wells was drilled on May 6, 1999 though, and four more were drilled on August 19, 2014.

The mismatched data can be accessed here for those who are interested.

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

By Kyle Ferrar, CA Program Coordinator, FracTracker Alliance

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

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

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

 Disproportionate Burdens for Hispanic and Non-White Students in California

and here in Spanish:

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

Fracked well near elementary school

Sequoia Elementary School located in Shafter, CA.

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

Key Findings of School Analysis:

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

Report Map

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

The Water-Energy Nexus in Ohio, Part II

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

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

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

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

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

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

County

# Wells

Total

Per Day

Oil

Gas

Brine

Production

Days

Oil

Gas

Brine

Ashland

1

0

0

23,598

102

0

0

231

Belmont

32

55,017

39,564,446

450,134

4,667

20

8,578

125

Carroll

256

3,715,771

121,812,758

2,432,022

66,935

67

2,092

58

Columbiana

26

165,316

9,759,353

189,140

6,093

20

2,178

65

Coshocton

1

949

0

23,953

66

14

0

363

Guernsey

29

726,149

7,495,066

275,617

7,060

147

1,413

49

Harrison

74

2,200,863

31,256,851

1,082,239

17,335

136

1,840

118

Jefferson

14

8,396

9,102,302

79,428

2,819

2

2,447

147

Knox

1

0

0

9,078

44

0

0

206

Mahoning

3

2,562

0

4,124

287

9

0

14

Medina

1

0

0

20,217

75

0

0

270

Monroe

12

28,683

13,077,480

165,424

2,045

22

7,348

130

Muskingum

1

18,298

89,689

14,073

455

40

197

31

Noble

39

1,326,326

18,251,742

390,791

7,731

268

3,379

267

Portage

2

2,369

75,749

10,442

245

19

168

228

Stark

1

17,271

166,592

14,285

602

29

277

24

Trumbull

8

48,802

742,164

127,222

1,320

36

566

100

Tuscarawas

1

9,219

77,234

2,117

369

25

209

6

Washington

3

18,976

372,885

67,768

368

59

1,268

192

Production

Total

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

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

Potential Revenue at Different Severance Tax Rates:

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

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

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

Per-Day Production

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

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

Water Usage

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

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

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

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

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

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

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

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

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

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

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

Waste Production

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

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

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

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

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

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

Environmental Accounting

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

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

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

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

A Moving Target

ODNR projection map of potential Utica productivity from Spring, 2012

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

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

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

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

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

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

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

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

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

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

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

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

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


Footnotes

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