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The U.S. Becomes The World’s Swing LNG Producer

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Will Shale Giant Chesapeake Go Bankrupt?

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U.S. shale gas pioneer Chesapeake…

James Hamilton

James Hamilton

James is the Editor of Econbrowser – a popular economics blog that Analyses current economic conditions and policy.

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A Look at the Environmental Concerns Surrounding Shale Gas

Technological breakthroughs in methods for drilling for natural gas have opened up the possibility of vast new supplies. However, environmental concerns may turn out to be significant.

Stuart Staniford has taken a look at a study of the effects of shale-gas extraction on drinking water recently published in the Proceedings of the National Academy of Sciences. The scatter diagram below summarizes 60 drinking water wells in Pennsylvania, with distance from a natural gas well on the horizontal axis and methane concentration in the water on the vertical axis. All of the water wells with concentrations above 28 milligrams of methane per liter of water were within one kilometer of active drilling.

Methane concentration near gas wells

Methane concentrations as a function of distance to the nearest gas well for active (closed circles, defined as within 1 km) and nonactive (open triangles, defined as grater than 1 km away) drilling areas. Source: Osborn, et. al. (2011).

Stuart also tracked down the relevance of a 28 mg/l concentration:

A dissolved methane concentration greater than 28 mg/L indicates that potentially explosive or flammable quantities of the gas are being liberated in the well and/or may be liberated in confined areas of the home.

There are potential huge investments to be contemplated to try to take advantage of the new natural gas resources, for purposes such as electrical generation by utilities, gas-powered cars and trucks, and refueling stations. But uncertainties about potential future regulation and litigation must make anyone cautious. I think it's in the interests of everyone involved to identify right away where the contamination documented above is coming from and develop regulations to minimize it.

By. James Hamilton

Reproduced from Econbrowser


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  • Anonymous on May 18 2011 said:
    What worries me is, leakage of natural gas (which is largely methane) into the atmosphere caused by "fracking", may contribute to the greenhouse effect.

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