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Tue, 2014-03-04 05:00Sharon Kelly
Sharon Kelly's picture

The View from Europe: America’s Shale Boom Looks More Like a Blip

The fracking boom has progressed at breakneck speed across the U.S., with roughly one in 20 Americans now living within a mile of a well drilled since 2000.

So, how much has the economy benefitted from this drilling surge?

Not much, according to a report presented to the European Union Parliament last month, which found “no evidence that shale gas is driving an overall manufacturing renaissance in the US.”

The shale boom’s economic contributions are very narrow, inflating local economies in places where drilling is intense but generating little impact on the country’s overall economic growth, the Institute for Sustainable Development and International Relations, a French think tank, concluded.

Although natural gas prices have fallen from their highs in 2008, benefitting consumers, those low levels are unlikely to be sustained and the U.S. is still expected to remain heavily reliant on importing crude oil, the researchers found.

Even using very optimistic assumptions, the report said, the industry’s cumulative long term effect on America’s Gross Domestic Product (GDP) will be less than one percent. “Despite very low and ultimately unsustainable short-term prices of natural gas, the unconventional oil and gas revolution has had a minimal impact on the US macro-economy,”

That’s not the amount that shale gas will add to the economy each year, the researchers said. Instead, the industry will make up no more than 0.84 percent of total GDP between 2012 and 2035 – the years when the shale boom is projected to be at its height. To put that in context, the personal care products industry – hair styling, cosmetics and the like – contributed 1.4 percent of GDP in 2010 – nearly double the impact that the EU report found the shale gas rush could have.

Sat, 2011-09-10 07:15Carol Linnitt
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More Than a War of Words: Gas Industry Plays Fracking Victim

Evoking an emotional response in one’s audience is a rhetorical means of persuasion well documented since Aristotle. But like Aristotle writes in his Rhetoric, if the reliable character of the speaker isn’t enough to convince a crowd, an emotional appeal might be the next best route to getting what you want – a strategy that is evidently well suited to a powerful but untrustworthy voice, like that of the gas industry.

The oil and gas industry's chief spokespeople have become rhetorical masters, the veritable trailblazers of the devolution of public relations into spin and misinformation campaigns. They probably have a thing or two to teach Aristotle about the art of persuasion and conjuring. Take climate science for example, where the industry has conjured up a ‘climate change debate’ out of thin air, or warming air for that matter. With a few flicks of the rhetorical wand a ‘debate’ over the anthropogenic warming of the climate began, despite an overwhelming consensus on the matter from the world’s leading scientists.  

But we’ve long passed the point where we take industry at its word. We have become too skeptical to trust the ‘character of the speaker’ and the industry knows this all too well. Hence the blatant emotional play at work in so much oil and gas industry public relations. 

Most recently the gas industry has chosen to play victim in a rather surprising aspect of the fracking controversy – its language.
Mon, 2010-11-22 18:55Brendan DeMelle
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Exxon Fracking Fluid Spill In Pennsylvania Dumps Estimated 13,000 Gallons Into Nearby Waterways

XTO Energy, a subsidiary of Exxon Mobil, is under investigation by the Pennsylvania Department of Environmental Protection (DEP) after a 13,000 gallon hydraulic fracturing fluid spill at XTO Energy’s natural gas drilling site in Penn Township, Lycoming County, PA.

The spill was first discovered last week by a DEP inspector who found a valve had been left open on a 21,000-gallon fracking fluid tank, discharging fluid off the well pad into local waterways, threatening a nearby cattle herd that had to be fenced off from the contaminated pasture.  Exxon/XTO has not provided an explanation on why the valve was left open.

“This spill was initially estimated at more than 13,000 gallons by the company and has polluted an unnamed tributary to Sugar Run and a spring,” said DEP Northcentral Regional Director Nels Taber. “There are also two private drinking water wells in the vicinity that will be sampled for possible impacts.”

DEP’s sampling confirmed elevated levels of conductivity and salinity in the spring and unnamed tributary, clear indications that the fracking fluid was present in the waterways.

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