Hydraulic Fracturing Robert Sittman

Christopher Conway Guadalupe Candanedo

Einav Henenson Justin Pfledderer

http://youtu.be/X8du6pQbvyo

commercial

HF in the last 10 years2005 Energy Act

Advances in the HF process

Chemicals

Industry Enormous potential for both the economy and the environment

Jobs!!!

Greenhouse gas advantages

National security benefits

Lower costs to consumers

A safe process

Has the Industry forgotten anything?

What the Frack?

Environmental Costs

Land

Water

Air

Social CostsIntragenerational inequality- certain people suffer while others benefit

Intergenerational inequality- contaminated water resources for the future

Interspecies inequality– animals are harmed

Economic Costs$

QQ*

$*

Social Marginal Cost

Private Marginal Cost

Marginal Benefit

Marginal Damage

True

UncertaintiesEnvironmental damage

Technical advances

Policy design and evaluation

Cost of policies

SolutionsPass the 2012 Frac Act

Technological based performance standard

Performance bond

Quasi option value

Questions?

References Adams, G., Hayes, S., Wejerter, S. and Boyd, J. (2007, October 24). Regulatory Capture: Managing the Risk. ICE

Australia, International Conferences and Events. Retrieved April 14, 2011   Arthur, J.D. (2008, September 21). Hydraulic Fracturing Considerations for Natural Gas Wells in Marcellus Shale.

Presented to The Ground Water Protection Council September 21-24, 2008. Retrieved from Google Scholar Cavner, R. (2011, February 8). Responding to the Hydraulic Fracturing Issue. Daily Hurricane. Retrieved from http://www.huffingtonpost.com/robert-l-cavnar/responding-to-the-hydraul_b_820215.html   Chesapeake Energy (2010). Natural gas Water Usage Facts. Retrieved from:

http://www.hydraulicfracturing.com/Pages/information.aspx   Environmental Protection Agency. (2004). EPA Study on Hydraulic Fracturing. Retrieved from

http://www.epa.gov/ogwdw/uic/pdfs/cbmstudy_attach_uic_ch07_conclusions.pdf   Energy in Depth. (2010, June 9). Debunking Gasland. Retrieved from http://www.energyindepth.org/2010/06/debunking-

gasland/   Fox, J. (Director). (2009). Gasland [Motion Picture]. United States: Docuramafilms.   Fox, J. (2010, July 12) Affirming Gasland: A De-debunking Document in Response to Specious and Misleading Gas

Industry Claims against the Film. Retrieved from http://1trickpony.cachefly.net/gas/pdf/Affirming_Gasland_Sept_2010.pdf  Keohane, N. & Olmstead, S. (2007). Markets and the Environment. Washington: Island Press   Kerr, R. (2011, August 11). Federal Committee: Shale Gas Needs Openness, Better Data. Science Insider

http://news.sciencemag.org/scienceinsider/2011/08/federal-committee-shale-gas-need.html?ref=hp Lustgarden, A. (2011, January 25). Buried Secrets: Gas Drilling’s Climate Benefits May Overstated and Possible

Environmental Threat. Pro Publica: Journalism in the Public Interest. Retrieved from http://www.propublica.org/article/natural-gas-and-coal-pollution-gap-in-doubt  

References Montgomery, C. & Smith, M. (2010, December). Hydraulic Fracturing: History of an Enduring Technology. Journal of Petroleum Technology (Society of Petroleum Engineers) 62 (12): 26-32   Nadar, L. (2010). The Energy Reader. Malden, MA: Willey-Blackwell Publishing   Nelson, P. (2011, July 18) Resources for the future. RFF Launches New Initiative on Risks and Regulations of Shale Gas.

Retrieved from: http://www.rff.org/News/Press_Releases/Pages/RFF-Launches-New-Initiative-on-Risks-and-Regulation-of-Shale-Gas.aspx

  Rubinkan, M. & Caruso, D. (2011, April 12). Fracking Shale for Gas brings Wealth, Concerns. The Huffington Post.http

://www.huffingtonpost.com/huff-wires/20110412/us-gas-drilling-impact/   Urbana, I. (2011, February 26). Regulation Lax as Gas Wells’ tainted water Hits River. The New York Times. http

://www.nytimes.com/2011/02/27/us/27gas.html?_r=1&hp Walsh, B. (2011, March 31). Could Shale Gas Power the World. Time Magazine. Retrieved

from:http://www.time.com/time/health/article/0,8599,2062331-4,00.html   Wilson, W. (2007, October 4). Letters from EPA Fracking Study Whistleblower. Earthworks: Protecting Communities and

the Environment. Retrieved from: http://www.earthworksaction.org/publications.cfm?pubID=372   Wiseman, H. J. (2008, September 23) Untested Waters: The Rise of Hydraulic Fracturing in Oil and Gas Production and

the Need to Revisit Regulation. Fordham Environmental Law Review. Vol 20. P. 115, 2009. SSRN: http://ssrn.com/adstract=1595092