The Arithmetic Of Fracking

[Tom Kirkman + 8,860]

Nicely balanced observations about the fracking industry.

Much more even-handed than most articles on fracking, with pretty level-headed analysis of the pros and cons and the in-betweens.

Well written, and worth reading in my opinion, no matter your stance on the topic.

 

The Arithmetic Of Fracking

Could a ban on fracking happen? Would it benefit the nation? Democratic presidential candidates and some incumbent officeholders have recently called for a ban on the hydraulic fracturing of oil and gas wells, which is used to boost recovery from shale formations.

In 2012, my colleagues and I visited the topic with “The Arithmetic of Shale Gas,” in which we found that U.S. consumers benefited by more than $100 billion per year in lower natural gas prices. We contrasted that consumer gain with the harm from fracking asserted by activists (but unsubstantiated by a major Obama administration study).          

So what, if anything, has changed since then? For one thing, the annual financial benefits to consumers from fracking have almost doubled as natural gas prices dropped. And we have learned more about the environmental impacts, including how to manage them.

Today, annual domestic natural gas consumption is approximately 31 trillion cubic feet, compared to 23 trillion cubic feet in 2008. The Henry Hub benchmark average price of natural gas was approximately $2.56/thousand cubic feet, or mcf, in 2019, versus $8.86/mcf in 2008, suggesting an approximate gain to U.S. consumers in 2019 of $195 billion.

Therefore, over the past 10 years, consumers have saved more than one trillion dollars. That’s $1,000,000,000,000 — real money even to politicians. With that much, and more, at stake, any argument against fracking needs to be well-founded.  ...

 

 

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@TomTom  @Rodent

[TomTom + 183]

I'm sure consumers have profited from the situation (shareholders not so much). 

A total ban on fracking would be a job destroyer and practically nearly impossible as it would drive up retail energy prices significantly... What Pres. candidates such as Sanders and Warren forget to say is that they will just ban fracking on Federal Lands, which is not really a big deal. 

If they do so, they'll both keep their supporters and the industry happy.

[Gerry Maddoux + 3,627]

1 minute ago, TomTom said:

What Pres. candidates such as Sanders and Warren forget to say is that they will just ban fracking on Federal Lands, which is not really a big deal. 

Exactly! They would have to get congressional approval to ban fracking in general. The world would get very cold during the winter and very warm during the summer. It would be one hell of an experiment, and frankly, one that might have to be run to show the world--especially the extreme greenies--just what it would be like without oil and gas. 

[TomTom + 183]

58 minutes ago, Gerry Maddoux said:

Exactly! They would have to get congressional approval to ban fracking in general. The world would get very cold during the winter and very warm during the summer. It would be one hell of an experiment, and frankly, one that might have to be run to show the world--especially the extreme greenies--just what it would be like without oil and gas. 

Especially the natural gas used in heating and power generation will be much needed for years to come. Affordable energy storage options linked to low-cost renewables need to become available to the masses before shale gas can be phased out.

[El Nikko + 2,145]

As an industry we have got to stop ceeding ground to the idiologues, remember that garbage pushed by Al Gore about fire coming out of taps etc? It was pretty much proven to be rubbish yet the myths live on.