February 18, 2010

By Matt Ross, LOGA

Introduction

Hydraulic fracturing, also known as “hydrofracking”, is a well-developed and refined engineering technique that results in the creation of fractures in rock formations.  Specifically, hydrofracking occurs after the drilling process has completed and a temporary wellhead has been installed.  The process involves pumping water, sand and chemicals into the wellbore under extremely high pressure.  The mixture is then forced out through perforations in the production casing into the targeted rock formation.  This pressure inevitably results in the fracturing of the shale formation.  The ultimate goal of the process is to create a “fairway” connecting the reservoir to the well and allow the released gas to flow to the wellbore.

(This image can be found at ProPublica – What is Hydrofracking?)

Hydraulic fracturing has played a significant role in the oil and gas industry for over 60 years and is responsible for 30% of America’s recoverable oil and gas.  This complex technique has become an exceptional tool in stimulating and increasing oil and natural gas production from unconventional and low permeability reservoirs.  Many may not be aware, but this process has been a part of the oil and gas industry for quite some time.  In fact, most wells drilled in the continental United States rely on the use of hydraulic fracturing to ensure optimal production.    It’s estimated that this technique has been responsible for nearly 7 billion barrels of oil and 600 trillion cubic feet of natural gas production.  The National Petroleum Council reports that 60% to 80% of all wells drilled in the next ten years will require the use of hydraulic fracturing to remain economic and profitable.

How Safe is Hydrofracking?

Recently, there has been much discussion concerning the safety of hydrofracking and its potential for groundwater contamination.  Currently, some members of Congress are pushing to place the regulation of hydraulic fracturing in the hands of the federal government under the Safe Drinking Water Act (SDWA), a law that was never intended for this purpose. It is important to note that in the 60 years of use, hydraulic fracturing has not been shown to pose any discernable risk to drinking water.  Of the more than one million wells fractured, not a single case of drinking water contamination has ever been recorded.

For decades, this process has been safely and effectively regulated by individual states.  The Interstate Oil and Gas Compact Commission (IOGCC) has reaffirmed their strong stance that the states remain the best positioned to regulate the use of hydraulic fracturing.  According to Carl Michael Smith, IOGCC executive director, “The states do a superb job of protecting human health and the environment through sound regulation.”  In his opinion, “An unnecessary shift to federal regulation of hydraulic fracturing could greatly inhibit the production of much-needed oil and natural gas resources at a time when our nation’s energy security is critical.”

In the state of Louisiana, three different agencies have oversight related to this process:

• The Office of Conservation of the Louisiana Department of Natural Resource
• Louisiana Department of Environmental Quality
• Department of Health & Hospitals

While effectively regulating this process, these agencies work closely in association with existing federal regulations under the EPA.

Haynesville Shale

In the case of the Haynesville Shale, it is important to understand exactly how deep the process of hydrofracking occurs from fresh water zones and the surface of the earth.  Fresh water aquifers are located relatively close to the surface.  In the Haynesville shale, for instance, the Carrizo-Wilcox aquifer is found at approximate depths between 200 and 600 feet.  The practice of hydrofracking takes place depths of over 10,000 feet or roughly 2 miles.  To put this into perspective, the distance between the aquifer and the process of hydrofracking is equal to about 33 footballs fields or 8 Empire State Buildings stacked on top of each other.

(Image provided by IPAA – Click here for enlarged image)

Current industry practices and existing state regulations ensure multiple levels of protection between any sources of drinking water and the production zone of an oil and gas well.  To ensure that drinking water aquifers are protected from any substance that could enter the water supply, steel casing and cement surrounds the wellbore at depths of 1,000 to 4,000 feet.

By law, the Louisiana Office of Conservation requires all oil and gas companies to set protective surface casing well beyond the water table.  For example, in the Haynesville Shale, surface casing must be set at a minimum of 1,800 feet.

(Image provided by API)

During the process of setting surface casing, the space between this first casing string and the wellbore is filled with cement.  The casing, cement specifications and cementing process are all governed by state and federal regulations as well as industry standards.  For example, oil and gas companies are mandated by law to test the viability and pressure of the surface casing.  If pressure is lost or an adequate cement bond is not achieved, the producer must start over the process of setting surface casing until a proper seal has been established.  In every case, these processes are closely supervised by all of the above mentioned state agency officials.

Hydraulic fracturing is a vital and necessary part of Louisiana’s oil and gas industry.  Our industry remains committed to safely and economically producing fossil fuels for our domestic energy needs.  Through new developments like that of the Haynesville Shale, communities have been injected with billions of dollars in capital and provided with thousands of good paying local jobs.  By strictly adhering to state regulations and industry practices, the oil and gas business will continue to be one of our most important economic engines and always strives to be good stewards of our environment.

If you would like more information regarding drilling or the process of hydrofracking please feel free to view our in-depth animated video and analysis – (Click here)