drivers of the environmental renaissance august 31, 2010
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Drivers of the Environmental Renaissance August 31, 2010. John R. Duda Director, Strategic Center for Natural Gas & Oil. A Tragic, Never-To-Be-Forgotten Disaster …But not the Genesis. Source: http://www.msnbc.msn.com/id/36880053. Outline. Historical context Fundamental drivers - PowerPoint PPT PresentationTRANSCRIPT
IPEC, Aug. 31, 2010
Drivers of the Environmental RenaissanceAugust 31, 2010
John R. Duda Director, Strategic Center for Natural Gas & Oil
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Source: http://www.msnbc.msn.com/id/36880053
A Tragic, Never-To-Be-Forgotten Disaster …But not the Genesis
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Outline
· Historical context
· Fundamental drivers
· What’s at stake
· What’s to be done
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U.S. Environmental Milestones
1960s 1970s 1980s 1990s 2000s
“Silent Spring”Wilderness Act
Santa Barbara(200 M gal.)
Clean Air Act +Clean Water Act
Endangered Species Act
Love Canal3 MileIsland
Superfund Bill
Exxon Valdez(11-32 MM gal.)
Oil Pollution Act
Kyoto Protocol
RoadlessRule
EPA to regulate CO2
Macondo(~200 MM gal.)
First Earth DayEPA established
Clean Air Act
CA autoemissions
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1950 to 2010 … from Gushers to Green
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Gas Shale Related LegislationW
ellh
ead
Nat
ural
Gas
Pric
e ($
/Mcf
)
Other: Ohio Shale, Antrim, New Albany
EPA concludes hydraulic fracturing no danger to drinking water
EPAct 2005: Congress excludes hydraulic fracturing from Safe Drinking Water Act (UIC)
FRAC Act introduced in Congress to make fractured wells Class II Disposal wells
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Most Active Shale Plays
Source: EIA, with data from Smith International
# rigs drlg for gas
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Result … Active Opposition to Development
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Fundamental Driver 1: Fear
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Fundamental Driver 2: Distrust
BusinessGovernment
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Fundamental Driver 3: Confusion
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Dominion Post, September 15, 2009
“…showed a much higherlevel of total dissolvedsolids…”
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Perspective of 51 “Shale” Web Sites
10% 16%
40%16%
18%
Anti-shale blog/group Impartial informationPro-shale industry Pro-shale informativeState organization
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Web Site Tag Lines· “New York has the best
drinking water in the world. Let's not frack it up!”
· “What the frack?”· “Saving our land, air, & water-
you can't drink gas”· “Your place to speak out on
industrial-scale drilling for natural gas”
· “Protecting our communities and environment from exploitative gas drilling of the Marcellus Shale”
· “The Marcellus Shale: Energy to fuel our future”
· “Your source for information about the benefits of natural gas exploration in the Marcellus Shale”
· “A partnership established to provide the regional community and the natural gas industry with a central resource for workforce development and community education needs related to Marcellus Shale gas”
Anti-Shale Pro-Shale
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New Yorkers Are Not Against All Development
Source: National Geographic Magazine, September 2009
1609
2009
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Marcellus Shale Drillers in Pennsylvania Amass 1435 Violations in 2.5 Years
Improper Construction ofWastewater Impoundment
268
Faulty PollutionPrevention Practices
65
Improper Erosion &Sediment Plans
Developed/Implemented277
Discharge ofIndustrial Waste
154Violations of PA
Clean Stream Law100
Improper WasteManagement
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Permitting Violations
38Improper
Restorationof Extraction Site
Improper WellCasing
Construction10
Source: Pennsylvania Land Trust Association (August 2, 2010)
1 PALTA identified companies that have had violations, according to news reports, but are not included in the data, received on 5/10/2010 and 7/10/2010, from the PA Department of Environmental Protection. The Association has not been able to reconcile this difference.
2 Pennsylvania Department of Environmental Protection News Release (6/23/2010)For information on methodology, contact Elana RIchman at 717.230.8560 or email [email protected].
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Benefits Need to be Recognized
Table reflects PA analytical results
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Impact of No Shale Gas Development in 2035
Reference Case
No Gas Shale Drilling
High Gas Shale Resource
2035 Henry Hub Spot Price(2008 $/MMBtu) $8.88 $10.37 $7.62
2035 Total Onshore Lwr. 48 Gas Production (Tcf) 23.3 19.1 25.9
2035 Total U.S. Net Imports (Tcf) 1.5 3.7 0.8
Sensitivity Cases for AEO2010Reference: Drilling moves ahead at current pace, unproved shale gas resource 347 TcfNo Gas Shale Drilling: No new onshore, lower 48 shale drilling after 2009High Gas Shale Resource: Unproved shale gas resources increased to 652 Tcf
Source: Energy Information Administration, 2010.
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Public Outreach Challenges· Finding ways to promote regulations that are science-
based and reflect true costs and benefits How to collect and analyze data needed to develop science-
based regulations in a competitive, high-cost environment How to quantify potential future costs and benefits
· Finding ways to support an informed debate in an environment of misinformation
How to build public trust in objective assessments of risks How to carry out public outreach in a way that reaches the
widest possible audience with accurate information How to engage constituencies with diametrically opposed
viewpoints
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Standing Still is Not an Option· Get out the facts … via websites,
publications, commercials, community meetings … whatever works
· Promote reasonable, compromise solutions to address community concerns
· Pursue collaborative research and development (industry, academia, and government) in support of science-based regulations
· Maintain transparency and public accountability
· Participate in joint public/private investment in workforce training to reduce accidents