northwest & intermountain power producers coalition shale gas: lemonade or lemons?

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Northwest & Intermountain Power Producers Coalition Shale Gas: Lemonade or Lemons? Randy Friedman Director, Gas Supply Northwest Natural Gas July 2012

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Northwest & Intermountain Power Producers Coalition Shale Gas: Lemonade or Lemons?. Randy Friedman Director, Gas Supply Northwest Natural Gas July 2012. Shale Gas is (almost) Everywhere. 2. The Good . - Gas Daily , May 23, 2012. - www.forbes.com, May 21, 2012. - PowerPoint PPT Presentation

TRANSCRIPT

Page 1: Northwest & Intermountain Power Producers Coalition Shale Gas: Lemonade or Lemons?

Northwest & Intermountain Power Producers Coalition

Shale Gas:Lemonade or Lemons?

Randy FriedmanDirector, Gas Supply

Northwest Natural Gas

July 2012

Page 2: Northwest & Intermountain Power Producers Coalition Shale Gas: Lemonade or Lemons?

Shale Gas is (almost) Everywhere

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Page 3: Northwest & Intermountain Power Producers Coalition Shale Gas: Lemonade or Lemons?

- Gas Daily, May 23, 2012

The Good

- Energy Biz, March/April 2012

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- www.forbes.com, May 21, 2012

Page 4: Northwest & Intermountain Power Producers Coalition Shale Gas: Lemonade or Lemons?

The Bad

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- Gas Daily, May 24, 2012

- www.syracuse,com, March 21, 2012

- Bloomberg News, May 31, 2012

Page 5: Northwest & Intermountain Power Producers Coalition Shale Gas: Lemonade or Lemons?

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Page 6: Northwest & Intermountain Power Producers Coalition Shale Gas: Lemonade or Lemons?

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Page 7: Northwest & Intermountain Power Producers Coalition Shale Gas: Lemonade or Lemons?

What are the Major Issues?

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Water Quality Protection of Aquifers Consumption of Fresh Water Safe Disposal of Produced Water

Air Emissions CO2 from compressors and other

operations Methane from venting/leakage Other air pollutants, e.g., from diesel

trucks

Other environmental impacts Seismic activity Endangered species Construction in sensitive areas

Page 8: Northwest & Intermountain Power Producers Coalition Shale Gas: Lemonade or Lemons?

Pavillion – The Smoking Gun?

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Dec. 8, 2011, EPA issues Draft Report Presence of certain chemicals in drinking water

samples is “consistent with migration from areas of gas production.”

High methane levels Benzene well above Safe Drinking Water Act

standards

Not So Fast! Results above from deep wells, not drinking water

wells Bad water in region pre-dates natural gas drilling Sampling tests and methodology flawed

Mar. 8, 2012, EPA announces new testing EPA acknowledges concerns New process likely to run through year-end

Page 9: Northwest & Intermountain Power Producers Coalition Shale Gas: Lemonade or Lemons?

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Doing it Right

Proper Well Construction

Layers of Separation

Safe Disposal of Drilling Fluids

Page 10: Northwest & Intermountain Power Producers Coalition Shale Gas: Lemonade or Lemons?

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Faulty Wells, Not Fracking, Blamed for Water Pollution - Wall Street Journal, March 13, 2012

Page 11: Northwest & Intermountain Power Producers Coalition Shale Gas: Lemonade or Lemons?

Transparency on Fracking Chemicals

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www.fracfocus.org

Page 12: Northwest & Intermountain Power Producers Coalition Shale Gas: Lemonade or Lemons?

Fracking and Earthquakes

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- Scientific American, Nov. 14, 2011

- Environmental Working Group, April 2012

- Christian Science Monitor, April 12, 2012

Page 13: Northwest & Intermountain Power Producers Coalition Shale Gas: Lemonade or Lemons?

Expect this to get Worst…

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“Gasland 2” due out in late 2012• Focus on lobbying efforts,

exports of fracking technology and climate change

• Goal is to ban fracking in the U.S.

- National Journal, April 20, 2012“Promised Land” expected in 2013• Matt Damon, Gus Van

Sant• Movie centers on the

dangers of fracking

Page 14: Northwest & Intermountain Power Producers Coalition Shale Gas: Lemonade or Lemons?

…before it gets Better

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Executive Order issued April 13, 2012 establishes a new federal Interagency Working Group to:• “coordinate the…safe and responsible development of

unconventional domestic natural gas resources and associated infrastructure“

• “help reduce our dependence on oil”• “take full advantage of our natural gas resources”• set “sensible, cost-effective public health and

environmental standards” to “augment State safeguards.”

- Huffington Post, May 11, 2012