Archive for May 17th, 2011

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Study finds no groundwater issues from gas well fracking

May 17, 2011

Michael Giberson

The study referred to in the above headline, “Study finds no groundwater issues from gas well fracking,” is the same PNAS study I mentioned last week under the headline, “Study finds methane in Pennsylvania, NY groundwater associated with gas well fracking.” I’m not now suggesting that methane in groundwater isn’t a problem, rather I’m saying it all depends upon what the meaning of the word “fracking” is.

The issue was raised by a Greenwire article on this point appearing on the New York Times website.

In most public discussion of gas well fracking, the word “fracking” refers to the entire shale gas well development and production process. In the industry usage is more precise: “Fracking” refers specifically to the hydraulic fracturing process. As in, first you drill the well, then you frack the well, then you produce the gas.

So if we are using the term fracking more carefully, what we would want to say about the study is that it found no evidence of groundwater contamination from the fracking process. The study did find elevated levels of methane in well water samples near active gas wells that was traceable to the fracked shale, but no fracking fluids were found. The likely candidate source of methane contamination is the drilling process, or more specifically the well completion process, and not the fracking process. (However, one possibility is that the high-pressured fracking process damages the well casing installed during well completion, allowing leaks.)

Shale gas development companies obviously face incentives to sort out these issues – methane that leaks into the adjacent soil and groundwater is methane released by the costly fracking process but not producing revenue  - though it isn’t clear from this study how much gas is being lost to leakage.

Property owners with claims to groundwater also have incentives to protect their claims. Property rights to water, and especially rights to a specific quality and quantity of groundwater, are typically quite murky, possibly making it hard to use liability claims as a mechanism to further incent gas developers to mitigate harms. However, to the extent the owner of the minerals also owns surface rights and groundwater rights, then the lease agreement with the gas development company may be the best place to “regulate” at least some of the environmental harms potentially arising with shale gas development.

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Things that caught my eye: subsidies, wine, LEDs, dismal economists

May 17, 2011

Lynne Kiesling

As a coda to Mike’s post yesterday regarding the CRS study of the effects of removing oil subsidies on gasoline prices, here’s Ron Bailey at Reason reminding us that ethanol subsidies are almost triple those to the oil companies, and with little to show either environmentally, economically, or energetically.

Courtesy of Dr. Vino, an Australian winery using a new German technology rather than a screw cap for its cellar-destined (at $500/bottle!) wines. Called Vino-Lok, the company touts its glass stopper/elastic ring technology’s wine-aging capabilities.

This week Philips is releasing a mass-market LED light bulb with a physical and lumens-delivering profile to mimic incandescents at a fraction of the energy use. But they’ll still be priced at $40-45, which is a bit steep for customers who are accustomed to cheap, short-lived bulbs, so their market success will require some education and adaptation of expectations. They will also have to overcome the hurdles of the failed expectations of compact fluorescent bulbs, which have not demonstrated the required longevity/price tradeoff to make them economical (in addition to their other shortcomings). I may buy one to test, but I don’t plan on fitting out my whole house in these LEDs any time soon, based on my CFL experience.

David Zetland reminds us of the provenance of the economist moniker “dismal scientist”, and claims that he likes to “take pride in calling attention to the unpleasant problems that impede human progress and happiness.” Me too, my friend, me too.

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