July 2014
For the latest report, please visit www.api.org/hydraulicfracturing
Table of Contents
What is Fracking?
Energy and Opportunity....................................................................................Page 1
Shale Plays in the Lower 48 States...................................................................Page 2
Securing Our Energy.........................................................................................Page 3
Jobs and the Economy.....................................................................................Page 4
What They Are Saying.......................................................................................Page 5
Process, Safety, and the Environment
Drilling................................................................................................................Page 7
Stimulation.........................................................................................................Page 8
State Regulation................................................................................................Page 9
Federal Regulation.............................................................................................Page 10
Industry Standards, Federal Regulation.............................................................Page 11
Water Protection................................................................................................Page 12
Water Usage......................................................................................................Page 13
Water Treatment Technologies...........................................................................Page 14
Air Emissions.....................................................................................................Page 15
Hydraulic Fracturing and Seismic Activity..........................................................Page 16
Innovations Promote Safe & Environmentally Friendly Practices........................Page 17
Resources.........................................................................................................Page 18
Hydraulic Fracturing:
Unlocking Americas Natural Gas Resources | July 2014
Title
What is Fracking?
Hydraulic fracturing and horizontal drilling are safely
unlocking vast U.S. reserves of oil and natural gas found in
shale and other tight-rock formations. Developing energy
from shale is an advanced process that uses the latest
drilling technologies and equipment. As for what fracking
means to the United States the answers, are security,
economic growth and jobs, jobs, jobs.
Hydraulic Fracturing:
Unlocking Americas Natural Gas Resources | April 2014
2.5
36
Rest of U.S.
2.0
30
1.5
25
Monterey (CA)
Woodford (OK)
20
Niobrara-Codell (CO)
Spraberry (TX Permian)
1.0
Bakken (ND)
Eagle Ford (TX)
Marcellus (PA and WV)
Haynesville (LA and TX)
Woodford (OK)
Fayetteville (AR)
Barnett (TX)
Antrim (MI, IN, and OH)
15
10
0.5
0.0
0
2007
2009
2011
2013
Hydraulic Fracturing:
Unlocking Americas Natural Gas Resources | July 2014
2007
2009
2011
2013
Page 1
Montana
Thrust Belt
Bakken
Heath
Cody
Big Horn
Basin
Powder
River Basin
Hilliard-BaxterMancos
Mowry
Monterey-Tembros
Monterey
Santa Maria,
Ventura,
Los Angeles
Basins
Manning
Canyon
Hermosa
Piceance
Basin
Excello-Mulky
Woodford
Marfa
Basin
Ardmore
Basin
Barnett
Permian
Basin Ft. Worth
Basin
Fayetteville
Arkoma Basin
Chattanooga
Black Warrior
WoodBasin
Conasauga
ford-Caney
Valley and Ridge
Floyd-N
Province
eal
Texas-LouisianaMississippi Salt
Basin
Haynesville-Bossier
Eagle Ford
Pearsall
New
Albany
Cherokee
Platform
Anadarko Basin
Bend
Appalachian
Basin
Illinois
Basin
Raton Basin
San Juan
Basin
Barnett-Wood-
Forest City
Basin
Denver Basin
Pierre
Paradox Basin
Lewis
Michigan Basin
Niobrara
Mancos
San Joaquin
Basin
Gammon
Antrim
Greater Green
River Basin
Uinta Basin
Devonian (Ohio)
Marcellus
Utica
Williston Basin
Tuscaloosa
Western
Gulf
Source: Energy Information Administration based on data from various published studies. Updated: May 28, 2009.
Hydraulic Fracturing:
Unlocking Americas Natural Gas Resources | July 2014
Page 2
25
8
(million barrels per day)
Natural Gas
Production
20
15
tcf
10
0
2007 2008 2009 2010 2011 2012 2013 2014 2015
U.S. Crude Net Imports
United Russia
States
Iran
Saudi
Arabia
Hydraulic Fracturing:
Unlocking Americas Natural Gas Resources | July 2014
and a more energy-secure America.
Page 3
Americas
Energy Revolution
How Fracking has Transformed
the U.S. Into an Energy Superpower
We are #1
#1 In 2013, the U.S. became the worlds largest producer of oil and natural gas
from 2012-20252
2010 The U.S. became the worlds largest natural gas producer.1
2015 The U.S. projected to pass Saudi Arabia as the largest oil producer.1
The rest of the private sector grew jobs at a 1% rate over the same period.
1.
2.
3.
Hydraulic Fracturing:
Unlocking Americas Natural Gas Resources | July 2014
Page 4
Hydraulic Fracturing:
Unlocking Americas Natural Gas Resources | July 2014
Page 5
Title
Process, Safety, and
the Environment
The members of the American Petroleum Institute are
dedicated to continuous efforts to improve the compatibility
of our operations with the environment while economically
developing energy resources and supplying high quality
products and services to consumers. We recognize our
responsibility to work with the public, the government,
and others to develop and to use natural resources in an
environmentally sound manner while protecting the health
and safety of our employees and the public.
Hydraulic Fracturing:
Unlocking Americas Natural Gas Resources | April 2014
Drilling
There are zero confirmed cases of groundwater contamination connected to the fracturing
operation in one million wells hydraulically fractured over the last 60 years.
Backflow preventers
Drilling companies use backflow preventers as
another means to protect groundwater supplies. Backflow
preventers are essentially one-way valves that only allow
liquids to flow in one direction. They eliminate the
threat of contaminated water from a gas well flowing into
water wells used to supply drilling operations.
industrial
water well
water can only flow
in one direction
Lined impoundments
& storage tanks
1,000ft
TTodays gas wells have redundant layers of cemented steel piping, called
production and the environment.
to provide a shield between gas productio
A typical gas well is constructed with three million pounds of
CASING,
STEEL
and
Water recycling,
reuse & waste
disposal
C E M E N T.
2,000ft
steel piping layered
with cement
3,000ft
4,000ft
Each layer of steel casing is cemented into place to create a seal that is air
tight. Drillers monitor the pressure in the wells to ensure the integrity
of the seals.
5,000ft
Hydraulic Fracturing
Hydraulic fracturing is used to release gas trapped in rock pores that are
sometimes
than a human hair.
Hydraulic fracturing fluid is forced down gas wells at high pressure to crack
the rock and provide a pathway for the gas to escape into
the well and rise to the surface for collection.
Marcellus formation
Cap rock
Cap rock
Because hydraulic fracturing typically takes
place
below the
a mile or more
surface, underground water supplies and
fracturing operations are separated by
thousands of feet of
impermeable rock
. Hydraulic
fracturing fluid and natural gas cannot
migrate through it.
DETERGENT
6,000ft
Hydraulic Fracturing:
Unlocking Americas Natural Gas Resources | July 2014
Page 7
Stimulation
The fracturing mixture consists primarily of fresh water mixed with some sand and a small proportion
of common chemicals.
Table salt
Laundry detergent
Thickener in cosmetics
Food additive
Deodorant
90% WATER
9.5% SAND
Compound
Purpose
Acids
Table salt
Polyacrylamide
Ethylene Glycol
Guar Gum
Citric Acid
Sodium Chloride
Borate Salts
Sodium/Potassium Carbonate
Glutaraldehyde
Isopropanol
Common Application
Source: DOE, GWPC: Modern Gas Shale Development in the United States: A Primer (2009).
Hydraulic Fracturing:
Unlocking Americas Natural Gas Resources | July 2014
Page 8
State Regulation
Effective hydraulic fracturing regulation can only be
achieved at the state level as state regulations can
be tailored to geological and local needs. Key state
regulations include: Review and approval of permits;
well design, location and spacing; drilling operations;
For example, the following are just some of the permits required in Pennsylvania:
1
Well drilling permit (w/ well location plat, casing and cementing plan, PNDI for threatened or endangered species, landowner/water well owner notifications,
coal owner or operator notification and gas storage field owner notification)
Bond for Oil and Gas Well(s) (individual or blanket, various bond types allowed)
Waiver of distance requirements from spring, stream, body of water, or wetland (to put the well closer than 200 feet)
Variance from distance restriction from existing building or water supply (to put the well closer than 100 feet)
Proposed alternate method or material for casing, plugging, venting or equipping a well
10
11
12
13
14
Inactive status
15
16
17
18
19
20
21
22
23
24
25
Water Obstruction Encroachment US Army Corps of Engineers Section 404 Joint Permit
26
Dam permit for a centralized impoundment dam for Marcellus Shale gas wells
27
28
29
30
31
32
33
GP-3 for bank rehabilitation, bank protection, and gravel bar removal
34
35
36
37
38
GP-11 Maintenance, Testing, Repair, Rehabilitation or Replacement of Water Obstructions and Encroachments
Hydraulic Fracturing:
Unlocking Americas Natural Gas Resources | July 2014
Page 9
Federal Regulation
The Energy You Need. The Facts You Demand.
PROCUREMENT
OF WATER
HYDRAULIC
FRACTURING
PROCESS
FRACTURING
SOLUTIONS
FLOWBACK
WATER
PRODUCED
WATER
PRODUCTION PHASE
CWA
CWA
OSHA
OSHA
CWA
CWA
Water Resource
Protection
Water Resource
Protection
Worker Safety
and Operations
Worker Safety
and Operations
Inspection and
Enforcement
Authority
Inspection and
Enforcement
Authority
Inspection and
Enforcement
Authority
Chemical Disclosure
Spill Prevention
Control and
Countermeasures
Water Resource
Protection and
Discharge
Requirements
Inspection and
Enforcement
Authority
OSHA
Worker Safety
and Operations
SUPERFUND
Inspection and
Enforcement
Authority
Clean Up
Management
Requirements
Inspection and
Enforcement
Authority
Spill Reporting
Inspection and
Enforcement
Authority
Reporting
Inspection and
Enforcement
Authority
SDWA
Water Injection
Requirements
Inspection and
Enforcement
Authority
EPRCA
Hazardous Substance
Reporting
Inspection and
Enforcement Authority
CWA: Clean Water Act OSHA: Occupational Safety and Health Administration SDWA: Safe Drinking Water Act EPRCA: Community Right to Know Act
Source http://energyindepth.org/wp-content/uploads/2009/03/Federal-Hydraulic-Fracturing-Process.pdf
Hydraulic Fracturing:
Unlocking Americas Natural Gas Resources | July 2014
Page 10
Industry Standards
Existing regulations covering well design requirements and hydraulic fracturing operations
are specifically formulated to protect groundwater.
HF1
HF2
HF3
Well Construction
and Integrity
RP 51R
Water Management
Practices for
Mitigating Surface
Impacts Associated
with Hydraulic
Fracturing
STD 65-2
Environmental
Protection for
Onshore Oil and
Gas Production
Operations and
Leases
Isolating Potential
Flow Zones During
Well Construction
INDUSTRY PRACTICES
Source: http://www.api.org/policy-and-issues/policy-items/hf/shale-answers
Hydraulic Fracturing:
Unlocking Americas Natural Gas Resources | July 2014
Page 11
Water Protection
Proper well construction provides groundwater protection.
Source: http://www.api.org/~/media/Files/Policy/Exploration/HYDRAULIC_FRACT_ILLUSTRATION_121609.pdf
Hydraulic Fracturing:
Unlocking Americas Natural Gas Resources | July 2014
Page 12
Water Usage
PENNSYLVANIA
1.42
6.43
BILLION GALLONS
per day
BILLION GALLONS
per day
61.8
MILLION GALLONS
THERMOELECTRIC
POWER
SITE LEVEL
per day
LIVESTOCK
24.3
MILLION GALLONS
per day
4 MILLION GALLONS
of Water Per Summer Month
IRRIGATION
Sources: U.S. Geological Survey Circular 1344. 52p. and Marcellus Shale Development Water Use: June 1, 2008 - May 21, 2010; Energy In Depth, October 8, 2012;
Aboutnaturalgas.com
Hydraulic Fracturing:
Unlocking Americas Natural Gas Resources | July 2014
Page 13
2.Ozone Oxidation
1.Chemicals
5. Deionization
3. Nano-filtration
4. Hydrocyclones
6. UV
Sources: http://www.apachecorp.com/index.aspx
Hydraulic Fracturing:
Unlocking Americas Natural Gas Resources | July 2014
Page 14
Air Emissions
Methane Leakage
8%
7%
6%
5%
4%
3%
2%
1%
0%
Source: IEA, U.S. EPA, ExxonMobil and WRI. All leakage rates, except ExxonMobils are based on estimates and empirical; Exxons leakage rates include actual measured data from
some production and gathering operations in the Marcellus; EPA estimates are computed based on gross production reported from the EIA.Aboutnaturalgas.com
Hydraulic Fracturing:
Unlocking Americas Natural Gas Resources | July 2014
Page 15
Sources: http://www.api.org/~/media/Files/Policy/Hydraulic_Fracturing/HF-andSeismic-Activity-Report-v2.pdf
Hydraulic Fracturing:
Unlocking Americas Natural Gas Resources | July 2014
Page 16
PITLESS
DRILLING
Use of aboveground tanks
for managing well fluids so
that there is limited danger
of well fluids getting into
groundwater
SOUND
CONTROL
Sound control and surface
management allows for safe drilling
in close proximity to people
WATER
SYSTEMS
Centralized water
management systems that
remove trucks from roads
DRILLING
SYSTEMS
1) Closed loop
drilling systems;
all drilling fluid
stored in steel
tanks
GREEN
FLUIDS
Green frac fluids
(Example: Environmentally benign
components)
Hydraulic Fracturing:
Unlocking Americas Natural Gas Resources | July 2014
SOLAR
PANELS
Photovoltaic solar telemetry
to transmit well date from
remote locations to central
office (reduces use of
diesel fuels)
Page 17
Resources
1
FracFocus: http://fracfocus.org/
STRONGER: http://www.strongerinc.org/
Cardno ENTRIX Hydraulic Fracturing Study PXP Inglewood Oil Field: http://www.eenews.net/assets/2012/10/11/document_ew_01.pdf.
The Geo-mechanical Study of Bowland Shale Seismicity:
http://www.cuadrillaresources.com/news/cuadrilla-news/article/press-release-geomechanical-study/.
11
12
13
Hydraulic Fracturing:
Unlocking Americas Natural Gas Resources | July 2014
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