Opinion: Don’t Kill the Shale Boom
Friday, December 28, 2012
Robert J. Samuelson, columnist for The Washington Post, published a column on December 23 asking politicians and policy makers to not “smother the shale-gas boom.”
The idea of restricting natural gas exports (mainly LNG or liquified natural gas) has been a point of conversation for some time since the shale-gas boom began several years ago. The premise being that restricting exports can guarantee lower prices for U.S. customers and bolster the competitiveness of U.S. businesses.
Samuelson isn’t convinced.
Read it:
“Limiting LNG exports might initially cut prices, but the long-run consequences would be perverse. By depressing prices, we might kill the boom.”
Samuelson argues that limiting exports would make drilling less profitable, effectively putting a wet blanket on an industry poised to single-handedly pull the U.S. out of economic paralysis.
Citing economic impacts including a study that reported the gas boom has created 500,000 jobs for producers and suppliers, Samuelson further strengthens his argument for less regulation of the industry.
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Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.