Texas shale lessons
Share with others:
Twenty years ago, the Barnett Shale in North Texas was virtually unknown. Today, it's the largest producing natural gas field in the United States with output exceeding 4 billion cubic feet a day. What's more, the Barnett Shale has added a new dimension to the North Texas economy, supporting thousands of jobs and generating millions in tax revenue for local governments and school districts.
One recent study prepared for the Fort Worth Chamber of Commerce found that drilling and production activity in the Barnett was supporting more than 110,000 jobs across the region. And a study by this author a few years ago calculated that Barnett wells and related equipment had added $6 billion to the local property tax base. In South Texas, where new oil wells are being drilled in the Eagle Ford Shale, the unemployment rate has fallen to half the state average while sales tax receipts have jumped 70 percent.
This is not to suggest that the growth of shale gas drilling and extraction in Texas has occurred without controversy. In particular, concerns have been raised about the use of hydraulic fracturing, which employs a high-pressure mix of water, sand and chemicals to force gas out of rock formations.
This process utilizes huge quantities of water, and the spent fluids must be disposed of properly in order to avoid surface-water contamination. Similarly, because all wells are drilled through the ground water table, care must be taken to ensure that the well casing is sufficiently reinforced to prevent any migration of gas or fluids into the water supply.
Fortunately, accidents related to shale gas extraction have been extremely rare in the Barnett, with only a handful of surface water contamination incidents in the completion of more than 14,000 wells. In those cases, responsible companies have provided clean water and compensation to affected families. What's more, careful studies by the Environmental Protection Agency and the Ground Water Protection Council haven't revealed a single case of ground water contamination from shale gas drilling itself.
First Published June 29, 2011 12:00 am
