Report: Fracking boom adds $1,200 to each American family's income

[green73]

Surging oil and natural gas production brought on by hydraulic fracturing is lifting the U.S. economy by lowering energy costs for consumers and manufacturers, according an industry-funded report.

In 2012, the energy boom supported 2.1 million jobs, added almost $75 billion in federal and state revenues, contributed $283 billion to the gross domestic product and lifted household income by more than $1,200, according to the report released today from IHS CERA. The competitive advantage for U.S. manufacturers from lower fuel prices will raise industrial production by 3.5 percent by the end of the decade, said the report from CERA, which provides business advice for energy companies.

“What really surprised me was how powerful an impact it is having to such a broad base of the economy,” John Larson, vice president of economics and public sector consulting for IHS CERA and lead author of the report, said in an interview. “It makes it to me a story that all Americans really need to come to grips with and understand.”

Oil and gas production are near record levels as a result of hydraulic fracturing or fracking, a drilling technique that frees trapped hydrocarbons by injecting water, sand and chemicals into shale rock. Some environmental groups say tougher controls over the process are needed to prevent water contamination and leakage of greenhouse gases into the atmosphere.

cont
http://www.businessweek.com/news/2013-09-04/fracking-boom-seen-raising-u-dot-s-dot-incomes-by-1-200-per-household

[thoughtomator]

The ultimate cost will dwarf that. Fracking ruins the land, once they're done the land is dead.

[green73]

The ultimate cost will dwarf that. Fracking ruins the land, once they're done the land is dead.

I'm dubious of that claim.

[Zippyjuan]

Hmm. My income hasn't gone up. Fracking requires the regular drilling of new wells. A more traditional well can be in use for many years before its production peaks and starts to decline. The "half life" of a fracking rig is only about a year.

An excellent report here: http://www.businessinsider.com/arthur-berman-shale-is-magical-thinking-2013-1?op=1



He says Bakken oil production has increased to 573,000 barrels per day from 4874 producing wells. The average well is 118 barrels of oil per day, and each well costs $11.5 million.

But the Bakken has a 38 percent decline rate, according to Berman — meaning if you stopped drilling now, you'd lose 38% of your production after a year.


He says there was no improvement in well efficiency between 2010 and 2011. In some cases it's taking increasing numbers of wells to get the same amount of product. Berman says the costs are "astronomical."


Read more: http://www.businessinsider.com/arthur-berman-shale-is-magical-thinking-2013-1?op=1#ixzz2dwwcwqqS

[ZENemy]

Another thing that drills holes into its home is called cancer.

[KingNothing]

The ultimate cost will dwarf that. Fracking ruins the land, once they're done the land is dead.


Proof?

[jkr]

WHERES MY CHECK?

[fearthereaperx]

Hmm. My income hasn't gone up. Fracking requires the regular drilling of new wells. A more traditional well can be in use for many years before its production peaks and starts to decline. The "half life" of a fracking rig is only about a year.

An excellent report here: http://www.businessinsider.com/arthur-berman-shale-is-magical-thinking-2013-1?op=1

Two consultants with different research and analysis. Imagine that..

Schlumberger has been working on developing cost cutting methods:

http://www.reuters.com/article/2012/08/31/us-oil-conference-schlumberger-idUSBRE87U0GE20120831

Production costs of natural gas from unconventional fields could tumble in the United States if a new technique developed by Schlumberger lives up to its billing.

"It can vary, but using Hiway we generally say you need 40 percent less proppant," (graded sand mixed with guar gum or lubricating chemicals), he told Reuters in an interview.

"Water is more variable, but it's somewhere between 20 and 50 percent less."

Less sand, less water and less pumping adds up to fewer trucks, Hodenfield explained on the sidelines of the Offshore Northern Seas (ONS) conference in Stavanger, Norway.

"Those are the big costs. Anything you can do to reduce the amount of sand, the amount of water, and the amount of horsepower is going to fall to the bottom line."

[A Son of Liberty]

I'm dubious of that claim.

As you should be. Range Resources fracked the first Marcellus well back in, what, 2006? I work for an O&G industry service company, and travel around almost daily in the states and counties that make up the Marcellus and Utica shales. After 7 years and thousands of wells that have been drilled, fracked and brought online or shut-in (due to "mid-stream" [pipelines and compressor stations] being unable to keep up with drilling) the vast majority of what we see out in the gas patch is just a lot of formerly unemployed people, and formerly poor landowners.

There are piles of misinformation out there in the ether about how horizontal drilling/hydraulic fracturing actually works.

[Carson]

So basically out of the $1,200 they thrown us a 2¢ bone and are using the rest of the cash to buy up more of our publicly held resources to exploit for themselves?

[Carson]

WHERES MY CHECK?


It would be nice to have accounts for citizens to share in the looting of our publicly held resources. Even nicer would be having a say.

Now the honest man and his dollar have no voice when pitted against those inside and outside of the country that can fire up the fake money presses and print up whatever it takes to dictate their will.