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Great Statements

Chu on This: Energy Secretary Says Hydraulic Fracturing “Can Be Done Responsibly” – Wants to Know Why Anyone Would “Want to Ban It.”
Dow Jones (1/15) reports, “On natural gas, Chu said the fuel could potentially crowd out investment in alternative energies because of recent big discoveries of gas in shale, hard rock formations, in the U.S Gas "probably" would retard development of alternatives if the fuel is "really super-cheap," he said, adding that gas could be accessed from shale regions safely.

Environmentalists have been concerned that the technique of accessing shale gas, known as hydraulic fracturing, might pollute water. "I think it can be done responsibly, " Chu said. Exxon Mobil Corp. (XOM) has said that its planned purchase of XTO Energy (XTO) might not go through if Congress decides to ban hydraulic fracturing. "If it can be extracted in an environmentally safe way, then why would you want to ban it?" Chu said.

Meanwhile, You Know How Folks Like to Say Natural Gas Exploration Requires Unconscionable Amounts of Water? Not Even Close, Actually.
Petroleum News (1/15) reports, “Onto the next question: How does water use for natural gas from deep shale compare with other energy uses? The Ground Water Protection Council and the U.S. Department of Energy put together water use comparisons between energy resources and, surprisingly, natural gas development from deep shale used the least amount of water for the energy it produced. The energy source that required the most amount of water was plant-based biodiesel from soy, requiring 14,000 to 75,000 gallons of water per MMBtu of energy produced as compared to deep shale natural gas, which needed only 0.60 to 5.80 gallons, 2 gallons of which were estimated for transport of the natural gas. Deep shale natural gas 0.60-5.80 gallons; Nuclear (uranium ready to use in a power plant) 8-14 gallons; Conventional oil 8-20 gallons; Synfuel-coal gasification 11-26 gallons.

Activists in NY Fight Like Hell to Prevent “New” HF from Being Used in State – You Want to Let ‘Em in on the Fact that We’ve Been Fracing NY for 30 Years Now, Or Shall We?
Utica Observer-Dispatch (1/16) reports, “Not so, said Chris Tucker, a spokesman for Energy in Depth, a natural oil and gas trade organization. The fracking process has been used for 60 years and has never been “credibly tied” to drinking water contamination, he said. “It’s not an unbelievable streak of good luck,” Tucker said. “It’s a function of the fact that millions of tons of impermeable rock separate the formations we’re fracturing from the formations that support drinking water.” In fact, the DEC’s proposed regulations are some of the strictest in the country, said Jim Smith, a spokesman for the Independent Oil and Gas Organization of New York. “These things you hear from environmental groups are overstated or simply untrue or relatively unlikely to happen in New York,” Smith said. “The last thing we want is for something bad to happen in New York. It would take away from New York’s economy and America’s energy independence.”

Statistics

There are 194,500 acres represented in the Coalition as of 8/18/2010. The latest gas offers in New York State are $3000/acre with 20% royalties.

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