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Fracking Technology Brings Promise and Worries

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Published: Wednesday, 20 Jun 2012 | 9:41 AM ET
By: John Moore,|Special to CNBC.com

Mention fracking in a conversation and you’ll likely get a strong reaction.

It’s become a hot-button issue, but what exactly is it? Why does the natural gas industry believe it is critical to our energy future, and why are so many people leery about it?

Robert Nickelsberg | Getty Images
hydraulic fracturing process

As energy independence becomes a battle cry within government and the energy industry, it’s become crucial to take advantage of previously untapped resources.

Hydraulic fracturing, or fracking, is a technology that’s become a critical tool in extracting oil and natural gas from unconventional sources — typically impermeable rock formations such as shale.

Although the term fracking has entered the mainstream only in the last few years, its history goes back 65 years. Stanolind Oil and Gas conducted the first experimental use of fracking in 1947; Halliburton completed the first commercial treatment two years later.

And while the public has conflated fracking with new methods for natural gas extraction, it’s a process that’s used in about 90 percent of the natural gas wells in the United States. It’s also widely used in conventional oil wells to boost yields in underperforming basins.

But what’s currently getting all the attention is fracking as it is used in unconventional gas extraction. Much of that focus involves weighing the benefits against the potential hazards.

Unconventional Means

With fracking, millions of gallons of water and sand, as well as certain chemicals, are pumped underground — typically a mile or more below the surface — to break apart the rock and release the gas. The pressure causes the rock layer to crack, and the fissures are held open by the sand particles to allow the natural gas to flow.

Fracking has become a critical process in large part because of improvements in other techniques, such as horizontal drilling and 3-D seismic imaging, which have helped make unconventional gas extraction more feasible.

According to a reportby IHS Global Insight, unconventional gas activity accounted for 53 percent of natural gas production in the United States in 2010. It’s expected to grow to 79 percent of production by 2035.

But unconventional well drilling is more energy intensive than it is for conventional wells. Robert Jackson, professor of global environmental change at Duke University, says because gas flows more easily in conventional wells, it usually isn’t necessary to drill down as far as is necessary in shale.

Unconventional wells are also more expensive to drill. According to the IHS Global report, a typical shale gas well costs $3 million to $9 million to drill. A conventional land-based oil or gas well costs about $400,000 to drill, according to the Department of Energy. Jackson notes that the decline curves for unconventional wells are steeper than conventional wells, an economic consideration that could lead to environmental concerns.

“The production appears to drop off more quickly in an unconventional well than it does in a conventional one,” Jackson says. “That means you either have to drill more wells to keep the flow up for the same amount of wells, or you have to go in and refrack wells more quickly to boost the flow back up. With refracking, there’s more impact on water use, more wastewater generated, more of the industrial activities that cause friction with people.”

Natural Gas

Bad Chemistry?

The biggest environmental concern involves the chemicals used in the fracking process. The chemicals employed during fracking serve several purposes — to prevent corrosion of the well casing and limit bacteria growth in the formation, for example. But there are concerns that these chemicals could reach water supplies.

Hydrochloric acid, methanol and sodium hydroxide are among the chemicals commonly used in the process.

Some energy companies have voluntarily disclosedtheir chemical information. For the most part, companies are not required to disclose specific concentrations of the chemicals they use in order to protect trade secrets. (Louisiana and Pennsylvania require concentration disclosures only for chemicals deemed hazardous. See this chartfor additional disclosure laws.)

“Whenever you apply high pressure to a well, you increase the possibility for chemicals to leak out of the well if you don’t have proper casing,” says Tom Myers, a Reno, Nev.-based hydrogeologist. “Once it leaks out of the well, it can then hit different pathways for the fluids, be they chemicals or gas, to get to an aquifer or a spring."

Industry experts say the fracking process includes measures to protect groundwater supplies. Several layers of cement-encased steel tubes are inserted into the wellbore and extend down into the shale depth, isolating the wellbore from groundwater supplies. The well design and construction, including the casing and cementing process, must comply with state and federal regulations.

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Amid cries for energy independence, fracking has become crucial to taking advantage of previously untapped resources. Take a closer look at hydraulic fracturing, and why the technology has become so important and controversial.

   
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