intro

1. Chris Bartlow
Kathleen Montz
Alex Madaya
Zach Rogers

2.  Is shale gas a viable resource?
 What are the problems with it?
• Social?
• Political?
• Environmental?
 Laws and regulations
 Where is it?

3.  Natural gas
 Unconventional
 Found in certain types
of shale
 2,000-7,000 feet deep
 Low permeability
 Prevalent in the area
 2,300 trillion cubic
feet in U.S.
www.energytomorrow.org
Wikipedia

4.  Marcellus shale
1. Leasing land
2. Exploration
3. Drilling
• Hydraulic fracturing
• Horizontal drilling
1. Collecting
2. $$$
3. Restoration
www.pamarcellus.com
Geology.com

6.  Plentiful
 Cleaner than other fossil fuels
 Money $
 Jobs
• Engineering and surveying
• Construction and earthmoving
• Equipment manufacturing, service and repair
• Environmental permitting
• Water transport/wastewater management
• Servicing
 Economy
 Low maintenance www.pamarcellus.com

7.  Most critics support the production of
natural gas from Marcellus Shale.
 analysts expect shale gas will greatly
expand worldwide energy supply
 Unconventional gas production is expected
to rise from 42% in 2007 to 64% in 2010
 There is enough shale to support the U.S.
gas needs for 90 years
http://www.energytomorrow.org/Shale_Gas.aspx

8.  However, not everyone agrees with natural gas
production from Marcellus Shale.
 Water agencies and citizens around shale regions are
concerned about:
• availability of water supplies needed for gas production
• waste water disposal http://pubs.usgs.gov/fs/2009/3032/
 There are cases of benzene contamination in well
water
 Critics believe hydraulic fracturing allows chemicals
to leak into the groundwater
 Landowners in shale gas areas say the energy
benefits are outweighed by the environmental risks
http://www.npr.org/templates/story/story.php

11. WORLDWIDE LOCAL
 North America is currently
the most profitable shale
gas producer
 Worldwide development of
shale gas plays are
expected to develop,
especially in Europe and
Asia
 Shale gas contributes an
11% rise in natural gas in
the U.S.
 Pennsylvania Marcellus
Shale contains about 500
trillion cubic feet of natural
gas
http://www.pamarcellus.com/

12.  By the end of 2008 shale gas production in the U.S. was up to
31.8 trillion cubic feet
 The U.S. contains an estimated 5,000 trillion cubic feet of
shale gas
• only 500 trillion cubic feet recoverable
 With current technology only about 10% of shale gas is
recoverable
 It is estimated that the shale gas in the U.S. is enough to meet
the United States’ gas needs for the next 90 years
http://www.api.org/policy/exploration/hydraulicfracturing/sh
ale_gas.cfm
http://en.wikipedia.org/wiki/Shale_gas

13.  Although shale gas is
one of the fastest
growing trends in
onshore oil and gas
exploration there is
still a long way to go!
 Better, more efficient
technology needs to
be obtained.
 Natural gas historically
has only provided 22%
of the total energy
consumed.
(http://fossil.energy.gov/programs/oil
gas/publications/naturalgas_general/S
hale_Gas_Primer_2009.pdf)
http://fossil.energy.gov/programs/oilgas/publications/natura
lgas_general/Shale_Gas_Primer_2009.pdf

14.  Each gas shale basins is different and
each has a unique set operational
challenges.
 Because of these differences, the
development of shale gas resources in
each of these areas faces potentially
unique opportunities and challenges.
http://fossil.energy.gov/programs/oilgas/publications/natura
lgas_general/Shale_Gas_Primer_2009.pdf)

15.  Protection of Groundwater
 Wildlife Impacts
 Community Impacts
 Surface Disturbances

16.  Chemicals are added to water to aide in
fracturing the rock
• This adds to the amount of contaminated ground
water
 Water is stored in above ground ponds until
it can be removed or injected back into the
earth. (http://en.wikipedia.org/wiki/Shale_gas#Environment)

17.  Reduce, Reuse, Recycle
• In using this technique researchers are trying to
find a way to cut down on water pollution
 It takes 2 million to 4 million gallons of
water to drill and fracture a horizontal
shale gas well
• In the long run is not to bad compared to
agricultural and municipal use.
• Only .1%-.8% of total water use
http://fossil.energy.gov/programs/oilgas/publications/natura
lgas_general/Shale_Gas_Primer_2009.pdf)

18.  Current Techniques
• Underground injection
• Treatment and discharge
• Recycling
 New Techniques are developing
• Researchers want this water to be clean enough
to be used for other purposes as well
• This way shale-gas associated water can be
considered a resource of its own
http://fossil.energy.gov/programs/oilgas/publications/natura
lgas_general/Shale_Gas_Primer_2009.pdf)

19.  Gas development
can adversely
affect animal
habitat and
wildlife.
• They can drill
underneath sensitive
areas like wetlands to
reduce wildlife
disturbances.
http://fossil.energy.gov/programs/oilgas/publications/natura
lgas_general/Shale_Gas_Primer_2009.pdf

20.  There are certain Community issues that
can arise
• Damage to roads
• Traffic congestion
• Traffic flow
• Noise
• Dust
 It takes intense planning to ensure that
these factors have the smallest impact
possible
http://fossil.energy.gov/programs/oilga
s/publications/naturalgas_general/Shal
e_Gas_Primer_2009.pdf

21.  Vertical wells can
require up to 40 acres
per well
• Horizontal wells take up
much less space and are
more efficient.

22.  Natural Gas is the cleanest of all fossil
fuels
• Can reduce the emissions of pollutants into the
atmosphere
 The main products of natural gas
combustion are carbon dioxide and
water vapor
• Carbon dioxide is a less potent pollutant
http://www.naturalgas.org/environment/naturalgas.
asp

23.  Natural gas does not
contribute much to
smog
• Emits low levels of nitrous
oxide and almost no
particulate matter
 Can be used to fuel
vehicles
• Cut down on the emissions
from gasoline and diesel.
http://www.naturalgas.org/environment/naturalgas.asp

24. PRO CON
 Means more jobs
 Less pollution
 There is money to be had
 May cause lower prices for
fuel in the future
 There are many
development issues when it
comes to shale gas
 People don’t necessarily
want their land dug up
 Wildlife advocates worry
about the disturbance of
habitats
http://fossil.energy.gov/programs/oilg
as/publications/naturalgas_general/Sh
ale_Gas_Primer_2009.pdf
http://www.energytomorrow.org/Shale_Gas.
aspx

25. PRO CON
 Greater energy security
 More money to be had by
local and state
governments
 Allows for less dependence
on foreign oil
• Shale Gas can be
developed in America
 In developing a shale gas
there are a lot of factors that
need to be taken into
consideration.
 There is an abundance of
paperwork a contractor
needs to go through to get
the approval to harvest
shale gas.http://www.energytomorrow.org/Sh
ale_Gas.aspx http://fossil.energy.gov/programs/oilgas
/publications/naturalgas_general/Shale_
Gas_Primer_2009.pdf

26.  Advances in Hydraulic fracturing and
horizontal completions
 Costs more to produce but low risk of
shale gas wells
 North America the developing leader
 Penn State study showed
• 29,00 jobs
• 2.3 billion dollars to the economy
http://en.wikipedia.org/wiki/Shale_gas
http://www.energyindepth.org/2009/08/pa-congressman-marcellus-shale-natural-gas-
drilling-critical-for-states-americas-economic-future/

27.  State and Oil gas laws
• Oil and Gas Act
• Oil and Gas conservation Law
 Environmental Protection
• Clean Streams Law
• Dam and Safety Act
• Water Resources Planning Act
• Solid Waste Management Act
http://www.depweb.state.pa.us/dep/cwp/view.asp?a=3&q=542874

28.  PA exempt
 Governor Rendell reconsidering for 2010
• 5% tax
 Natural Gas prices plummet
http://www.timesleader.com/news/hottopics/shale/Governor_reconsiders_tax_on_gas_from_Marcellus_Shale_09-
02-2009.html
http://www.pahouse.com/pr/166040309.asp