The United States may be slipping into a recession, but the economy in Texas, and especially North Texas, is expected to remain robust, due in part to the natural gas drilling in the Barnett Shale.This activity has helped the Texas oil and gas industry return to the heights not seen since the early 1980s energy boom.The result is the creation of many new jobs and a general expansion of the state and local economies.In 2007, 28 percent of all new jobs in the United States were created in Texas, with over half of those in the natural resources and mining sector which includes natural gas extraction and production.The Barnett Shale region, which includes at least 18 counties and covers over 5,000 square miles, has already been responsible for the creation of an estimated 55,000-plus new jobs.That number is expected to double over the next 10 years, according to a 2007 economic study by The Perryman Group, which was commissioned by the Fort Worth Chamber of Commerce.What may come as a surprise is that most of these new jobs are not in the oil and gas industry, but rather cover virtually every sector of the economy.According to Richard Fisher, president of the Federal Reserve Bank in Dallas, “Even though only 2 percent of our employment is related to oil and gas…we are (all) the beneficiaries and Fort Worth particularly, because of the Barnett Shale”.The widespread benefits of drilling in the Barnett Shale are the result of a phenomenon that economists call “the multiplier effect”.The process starts with the new dollars that are pumped into the economy from the bonuses and royalties paid to home owners and land owners to lease their mineral rights and the additional wages paid to workers in the newly created jobs.For example, Tarrant County is estimated to have more than 1,000 landmen handling mineral rights leases for energy companies, and at least that many more scattered throughout the Barnett Shale region.Most of those jobs did not exist a few years ago.New and expanded expenditures are also made my local governments that are receiving bonuses and royalties from leasing the mineral rights under parks and other public land.The City of Fort Worth, for example, has already received almost $40 million from mineral leases.The City expects to receive as much as $1 billion more over the next 25 years. This money that the City might not otherwise have had will be spent on public improvements, creating more new jobs and expanded payrolls.The recipients of all this “new” money spend it at local business establishments on food, clothing, housing, automobiles, entertainment and the like.The businesses receiving those dollars will then spend that money on additional employees, expanded inventories and new locations.This process will be repeated over and over, resulting in a multiplied effect on the entire economy.Even better news is that we are just at the beginning stage of all this economic growth. Drilling in the Barnett Shale is expected to continue for many years to come and each well is expected to produce natural gas for three decades or longer.As horizontal drilling and water fracturing technologies improve, more gas will be produced from new and existing wells and the life of all wells will be extended.All and all, there is no question that gas drilling is a boon to the North Texas economy, bringing new jobs and business growth in all kinds of industries, not just the energy sector.We are fortunate to be living in an area that is somewhat insulated from any downturn in the national economy. Virtually everyone in the region stands to benefit in some way from the Barnett Shale for years to come.
Ed Ireland, Ph.D. is executive director of the Barnett Shale Energy Education Council, a consortium of eight of the leading energy companies operating in the Barnett Shale that are dedicated to promoting energy education and best practices as it relates to oil and gas leasing, drilling, production, transportation and marketing in the Barnett Shale. For more information, please visit http://www.bseec.org.
Barnett Shale Expo
Posted on Apr 03, 2008 - 12:18 PM
This year’s Barnett Shale Expo was a huge success. Thousands of people went to the Fort Worth Convention Center on Saturday, March 29, 2008, to attend breakout sessions, see the latest equipment and visit booths representing over one hundred natural gas companies doing business in the Barnett Shale. Links to presentations and materials from the Expo are below and more will be added as they are received.
Updated Economic Impact of Barnett Shale
Activity in the Barnett Shale is contributing more money and more jobs to the local economy than was estimated just one year ago. Dr. Ray Perryman, founder and president of The Perryman Group, reported in his speech at the opening of this year’s Barnett Shale Expo that the economic impact of the Barnett Shale on the North Texas region increased by 51% from the estimates that he made just one year ago.
Perryman said that the natural gas activity in the Barnett Shale represents about 8% of the local economy with the total economic impact being over $8 billion which represents a 60% increase from last year. In last year’s study, Perryman said that the natural gas drilling activity in the Barnett Shale had already created over 55,000 permanent jobs. But after examining the numbers in 2007, Perryman reported that the Barnett Shale activity has created almost 84,000 jobs representing a net gain of more than 50% in a single year. “Prior estimates of the future impact of the Barnett Shale have proven to be far below the actual effect of exploration, drilling, and production on the regional business activity”, he stated.
The entire state of Texas is benefiting as well through increased economic activity of an estimated $10.2 billion in annual output and 99,726 jobs based on year-end 2007 levels of activity. This is a significant rise from the $6.4 billion in annual output and 65, 953 jobs reported last year. In addition to billions of dollars in economic activity, the State of Texas receives an estimated $212 million in severance taxes from the activity in the Barnett Shale. “Other types of State tax revenues and fees are also positively affected with the total fiscal stimulus reaching $715.5 million.
He concluded that “The Barnett Shale is a catalyst for ongoing economic vitality. Recent growth has exceeded expectations, and the resulting business and investment activity will help insulate the regional economy from the national slowdown.”
Documentary: The History & Making of the Barnett Shale
Posted on Apr 02, 2008 - 09:35 AM
A one hour long documentary on the Barnett Shale is being filmed and produced by Chris Quinn and CA Media, Inc. of Fort Worth. Proceeds of the DVD go to the Barnett Shale Energy Education Council. Click here to link to the film: https://secure.filesanywhere.com/Photofolder/ShowFileShareFV.asp
Documentary: The History & Making of the Barnett Shale
Barnett Shale: Helping the Nation Move Toward Energy Independence
Posted on Feb 26, 2008 - 02:03 PM
By Ed Ireland
For the past two decades, the growing demand for energy in the U.S. has exceeded domestic supplies of crude oil and natural gas. Simply put, U.S. consumers are using more energy than can be supplied with domestically produced oil and natural gas, so as a result, we have increased our imports of these products. The U.S. imports natural gas primarily from Mexico, Canada and Trinidad and Tobago in the form of liquefied natural gas (LNG), and crude oil primarily from OPEC countries.
There are many negatives to this trend, but two stand out:as a nation, we have become increasingly dependent on foreign energy supplies that are potentially unstable, and the prices that we pay have soared.
Of course, environmental concerns have curbed the production of oil and gas in many parts of the U.S. While the debate concerning environmental protection continues, the fact remains that domestic supplies of crude oil and natural gas are still not keeping up with the demand.
Thankfully, natural gas production in the U.S. began increasing in 2006, and this is due to the so-called “unconventional” sources of natural gas, one of the most important being the Barnett Shale.
Think about it:Some 18 or so counties in North Texas are helping the entire U.S. become more energy independent by increasing our total reserves of natural gas.And this from an area of the country that was considered “pumped out” of oil and gas long ago!
Covering more than 5,000 square miles, the Barnett Shale region is the largest natural gas field in Texas and one of the largest in the U.S.. It yields more than 12 percent of the natural gas produced in Texas and 5 percent of the total natural gas used in the U.S..
Better yet, exploration and production in the Barnett Shale has only just begun. It will take many years to drill the best-producing areas and as technology improves, less productive areas will also be drilled. Indeed, production in the Barnett Shale is expected to at least double over the next decade. Engineers and geologists believe that the wells being drilled in the Barnett Shale will produce for 20 to 30 years and possibly even longer as technologies continue to improve.
The Barnett Shale’s contribution to the domestic energy picture goes beyond natural gas production. New technologies in drilling – primarily water fracturing (or “fracing” and improved horizontal drilling techniques – are being tested and refined right here in North Texas. What is learned here will impact natural gas production in other shale regions in the U.S. for decades to come.These include the Fayetteville Shale in Arkansas and the enormous Marcellus Shale, covering some 54,000 miles across several Eastern states, where exploration and drilling are underway.It is fair to say that the Barnett Shale and similar sources of domestically produced natural gas are no longer “unconventional”.They are in fact becoming the new conventional sources of natural gas and they offer the potential for the U.S. to become more energy self-sufficient.The Barnett Shale is truly a bounty from below that is transforming the economy of North Texas and helping to reshape the energy picture in the U.S.
Ed Ireland, Ph.D. is executive director of the Barnett Shale Energy Education Council, aconsortium of eight of the leading energy companies operating in the Barnett Shale that are dedicated to promoting energy education and best practices as it relates to oil and gas leasing, drilling, production, transportation and marketing in the Barnett Shale. For more information, please visit www.bseec.org.
Barnett Shale spurs new jobs and business growth
Posted on Feb 26, 2008 - 02:16 PM
By Ed Ireland
The booming energy business is creating thousands of new jobs and business opportunities across the Barnett Shale region, which covers 18 counties and 5,000 square miles in North Texas. The United States may be slipping into a recession, but the North Texas economy remains robust, in large part due to the natural gas drilling and related activity in the Barnett Shale.
This activity in the Barnett Shale area has already created an estimated 55,000-plus new jobs and will spur an additional 53,000 over the next 10 years, according to a 2007 economic study by The Perryman Group. What may come as a surprise, however, is where the new jobs are. They are not just in the oil and gas industry.In fact, the biggest growth area is in retail, which is estimated to see more than 15,000 new jobs over the next 10 years, thanks to all the Barnett Shale activity.
The second biggest growth area over the next decade is also surprising: restaurants and bars, with an estimated 8,000 new jobs.Third place is shared by the construction industry and the oil and gas industry, with about 3,200 new jobs estimated over the next 10 years.
What’s going on here? All the new cash injected into the region’s economy is fueling sales and job growth in virtually every industry, thanks to a phenomenon called “the multiplier effect”.The new dollars come from royalty payments to homeowners and local governments, wage increases in growing businesses and new salaries for all the new jobs being created.
For example,Tarrant County is estimated to have more than 1,000 landmen handling mineral rights leases for energy companies in Tarrant County, and at least that many scattered throughout the Barnett Shale region.Most of those jobs did not exist a few years ago.Law firms are seeing new clients for cases involving leasing and mineral rights.New hardware stores and restaurants are popping up all over to serve the new workers and activity on nearby drilling rigs.
So there is more money in the local economy to be spent on all sorts of things such as clothes, eating out, and new homes. But with the multiplier effect, every new dollar spent sets off a chain reaction. For example, as more clothes are purchased at the retail store, a storeowner needs to buy more clothes for a larger inventory and may need to buy more clothes racks and to hire new staff. These new employees spend part of their new salaries on lunch at a nearby café.With the cafe selling more lunches, it needs to hire more workers and buy more food. And on and on the multiplier effect ripples through the economy.Of course local governments and school districts also benefit since more sales mean more tax revenue and more tax revenue means new parks and schools.Even better news is that we are just at the beginning stage of all this economic growth. Drilling in the Barnett Shale is expected to continue for many years to come and each well is expected to produce natural gas for at least two or three decades and possibly longer.As horizontal drilling and water fracturing technologies improve, more gas will be produced from new and existing wells and the life of all wells will be extended.
The businesses that support the drilling and producing activity, such as equipment manufacturers and suppliers, engineering and geology firms and well service companies that have been headquartered in West Texas and South Texas for years, are arriving in force throughout the Barnett Shale region.
All and all, there is no question that gas drilling is a boon to the North Texas economy, bringing new jobs and business growth in all kinds of industries, not just the energy sector.We are fortunate to be living in an area that is somewhat insulated from any downturn in the national economy. Virtually everyone in the region stands to benefit in some way from the Barnett Shale for years to come.
Ed Ireland, Ph.D. is executive director of the Barnett Shale Energy Education Council, aconsortium of eight of the leading energy companies operating in the Barnett Shale that are dedicated to promoting energy education and best practices as it relates to oil and gas leasing, drilling, production, transportation and marketing in the Barnett Shale. For more information, please visit www.bseec.org.
2008 Economic impact report released by Perryman Group
Posted on Apr 01, 2008 - 01:20 PM
Updated Economic Impact of Barnett Shale
Activity in the Barnett Shale is contributing more money and more jobs to the local economy than was estimated just one year ago.Dr. Ray Perryman, founder and president of The Perryman Group, reported in his speech at the opening of this year’s Barnett Shale Expo that the economic impact of the Barnett Shale on the North Texas region increased by 51% from the estimates that he made just one year ago.
Perryman said that the natural gas activity in the Barnett Shale represents about 8% of the local economy with the total economic impact being over $8 billion which represents a 60% increase from last year.In last year’s study, Perryman said that the natural gas drilling activity in the Barnett Shale had already created over 55,000 permanent jobs.But after examining the numbers in 2007, Perryman reported that the Barnett Shale activity has created almost 84,000 jobs representing a net gain of more than 50% in a single year.“Prior estimates of the future impact of the Barnett Shale have proven to be far below the actual effect of exploration, drilling, and production on the regional business activity”, he stated.
The entire state of Texas is benefiting as well through increased economic activity of an estimated $10.2 billion in annual output and 99,726 jobs based on year-end 2007 levels of activity.This is a significant rise from the $6.4 billion in annual output and 65, 953 jobs reported last year.In addition to billions of dollars in economic activity, the State of Texas receives an estimated $212 million in severance taxes from the activity in the Barnett Shale.“Other types of State tax revenues and fees are also positively affected with the total fiscal stimulus reaching $715.5 million.
He concluded that “The Barnett Shale is a catalyst for ongoing economic vitality.Recent growth has exceeded expectations, and the resulting business and investment activity will help insulate the regional economy from the national slowdown.”
For most people, geology is a field that falls somewhere between doing laundry and undergoing root canal on the personal interest scale. But for North Texas residents, geology has become the hot topic of the day. Read the PDF version.
Natural Gas Is Used In Virtually Everything We Consume
Posted on Jul 14, 2008 - 11:18 AM
By Ed Ireland
Given rising gas prices and growing instability in key oil-producing regions of the world, it is increasingly obvious that the United States must aggressively promote the use of alternative energy sources while expanding the production of oil and natural gas at home.
Here’s why: Over the past two decades, the growing demand for energy in the U.S. has exceeded domestic supplies of crude oil and natural gas. Currently, alternative energy sources such as solar and wind power are not producing at a high enough capacity to make up the difference.
Moreover, as the nation moves toward a more conservation-minded future, natural gas will be indispensable for the large-scale viability of such new green technologies as electric cars (more on this below).
Natural gas is a key ingredient in the production of some of the most basic, everyday items we depend upon for our existence. For natural gas to be economical for these many uses, it must be produced domestically.
Consider this: Virtually everything that we use on a daily basis contains a component that used natural gas or oil in its manufacture, either as a fuel or as a "feedstock." A feedstock is defined as the raw material used in an industrial process to manufacture something else. There are no alternatives for these petrochemical feedstocks. Without them, we go back to making everything out of wood and stone.
Using oil and natural gas, the petrochemical industry manufactures chemicals that serve as building blocks in making everything from plastics and clothing to medicine and computers. They contribute essential materials for making food and beverage containers, surgical gloves and gowns, fertilizer, blankets, cold-weather and rain gear, sneakers, computers, insulation, cameras, medicines, artificial joints, auto and aircraft parts, disposable diapers, CDs, and many more key consumer products.
Propane, used to heat homes and fire up our backyard barbecue grills, comes from natural gas. Propane is used in literally hundreds of residential, commercial, industrial and agricultural processes, such as forklift operations, metal galvanizing, grain dryers and ink drying.
Hydrogen is being touted as a clean transportation fuel — hydrogen-powered cars have been a dream of many environmentalists for years. Did you know natural gas is being used to generate hydrogen for such purposes? Ongoing research sponsored by the U.S. Department of Energy is exploring the conversion of natural gas into "ultra-clean" fuels for other uses, as well.
Natural gas is important to our domestic food supply. The vast majority of fertilizer used in agriculture is ammonia-based, and you need natural gas to manufacture ammonia. Ethylene, which comes from natural gas, is used to accelerate the ripening of bananas and to mature the color of citrus fruits. It is also used to increase the growth rate of seedlings, vegetables and fruit trees.
Without sufficient supplies of natural gas, our food supply will be adversely affected.
The list goes on. Ethylene glycol, which comes from natural gas, is a key element in the plastics industry for manufacture of polyester fibers and resins, including the primary component of plastic bottles for water and soft drinks. Ethylene glycol’s antifreeze capabilities make it an important component in the low-temperature preservation of biological tissues and organs to be used for transplant to save lives.
More obvious is that natural gas is a very important source of energy consumption in general. Approximately 22 percent of the energy consumption of the U.S. comes from natural gas. More than half of all U.S. homes use natural gas as the main heating fuel.
The biggest use of natural gas in North Texas is electric generation. Luminant, the wholesale power unit of the former TXU Corp., generates a considerable portion of its electricity with natural gas, while also relying on coal, nuclear and renewable energy such as wind power.
Where are we going to get all that electricity to charge up those electric cars of the future? Most likely from natural-gas-fired electric-generating plants because it is readily available and cleaner than coal, and nuclear plants currently take more than 10 years to clear the permitting process.
We import about 10 percent of our natural gas, and that percentage could decline as domestic production increases.
Because the conventional sources of natural gas in the United States are just about tapped out, it is fortunate for our economy that technological advances in drilling are enabling us to produce natural gas from such "unconventional" sources as the Barnett Shale and other shales around the country. At 4.5 percent and growing, natural gas production from the Barnett Shale is increasingly important to the national supply of natural gas.
Exploration and drilling for natural gas in the United States must continue — whether in Fort Worth, north Arkansas in the Fayetteville Shale, or in Pennsylvania and neighboring states where the vast Marcellus Shale awaits exploration. These shales are the future of America’s natural gas supply.
c. 2008 Fort Worth Star-Telegram Reprinted by permission
Pipelines
Posted on Aug 02, 2008 - 10:16 AM
To move natural gas from the Barnett Shale region efficiently and effectively requires an elaborate transportation system. This system consists of a network of underground pipelines that safely move natural gas from its origin to processing and storage facilities and ultimately to customers for cooking, home heating and industrial use.
These pipelines add to an existing network of underground pipelines that transport water, sewage and other petroleum products.
Components of the natural gas transportation process
Treating and Processing Plants Gas at the wellhead is not the pipeline quality gas that consumers will use. Gas in the Barnett Shale normally contains natural gas liquids (NGLs), carbon dioxide (CO2) and water.
Processing plants separate NGLs into liquid products including ethane, propane, butane, isobutene and natural gasoline. Field processing plants are close to the production source. And straddle plants, which reprocess NGLs from gas pipelines, are located near the gas pipelines themselves.
As new pipelines are built in the Barnett Shale, new treating and processing plants will be added as needed.
Gathering & Transmission Pipelines Pipelines fall into one of three categories: gathering lines, transmission lines and distribution lines.
Pressurized to varying degrees, natural gas is propelled through steel pipes. Gathering pipelines take natural gas from the wellhead to processing plants. Then transmission pipelines move the natural gas to marketing and distributing terminals. Natural gas is finally transported from a storage location to end-users via distribution lines. Interstate pipelines carry natural gas across state boundaries and in some cases across the country. Intrastate pipelines transport natural gas within a particular state.
Because the Barnett Shale region is one of the most prolific and well-producing natural gas regions in the U.S. and the demand for natural gas is increasing, it is imperative to expand our current transportation infrastructure.
Pipeline Construction How are pipeline routes selected?
The first step in a new pipeline project is the feasibility analysis. Through the feasibility analysis, possible routes are identified and evaluated. The final route is selected based on the parameters of the project. Pipeline companies identify potential environmental concerns and impact to property when evaluating routes. To minimize impacts to property and landowners, pipelines are often built on existing electric or pipeline right-of-ways and along public land such as highways when permitted.
Several permitting and regulatory processes must be completed. Once the required permits are obtained and regulatory requirements satisfied, extensive land surveying begins. After surveys are conducted, the pipeline company works directly with individual landowners to negotiate legal easement agreements granting the company long-term rights to build and operate the pipeline and outlining how the landowner will be compensated for use of the land.
If the pipeline company and the individual landowner can not agree on the terms of an easement agreement, the pipeline company has the legal right – for the “public good” -- to request that the land be condemned and used to construct the pipeline project. By law, as outlined in the Texas Landowner Bill of Rights, landowners have the right to question a condemnation decision.
What is a right-of-way? A right-of-way is the land above, and typically 25 feet on either side, of the pipeline.
This area, free of structures and landscaping, protects the pipeline from possible damage and allows pipeline operators to conduct preventative maintenance and foot and aerial patrols.
What is the construction process? There are several steps in the pipeline construction process.
1. Clearing the Path and Stringing the Pipe The path of the pipeline is cleared of all removable impediments including trees, boulders, brush or anything else that may prohibit construction. Once the path is cleared for construction equipment to gain access, sections of the pipe are laid out along the path, a process called stringing the pipe.
The pipe sections are typically 40 to 80 feet long. Certain areas have different requirements for coating materials and pipe thickness. 2. Cutting Trenches After the pipe is in place, trenches are dug alongside. Trenches are typically five to six feet deep, and in certain areas such as road crossings and bodies of water, the pipe is buried even deeper. 3. Assembling the Pipe Next, the pipe is assembled and contoured. Sections of pipe are welded together into one contiguous pipeline. It is bent slightly, if needed, to fit the contour of the pipeline path.
Special coating is applied to the ends of the pipes (the coating applied at the mill typically leaves the ends of the pipe clean, for proper welding). Once this is finished, the entire coating of the pipe is inspected to ensure that it is free from defects. 4. Lowering the Pipeline Once the pipeline is welded, bent and coated, it is lowered into the previously dug trench. Specialized construction equipment uniformly lifts the pipe and lowers in into the trench. Once lowered, the trench is filled carefully, to ensure that the pipe and its coating do not incur damage. 5. Hydrostatic Testing After the pipe is in place and covered, a procedure known as hydrostatic testing begins. This process tests for leaks or fissures in the pipelines by using running water placed under pressures that far exceed the pipeline’s normal operating standards. Hydrostatic testing ensures the pipeline’s safety before natural gas is placed in the line. 6. Land Restoration The final step in the construction process is land restoration. Extensive efforts are taken to restore the pipeline’s pathway to its original state, or to mitigate any impacts, environmental or otherwise, that may have occurred during the construction process.
Land restoration typical includes replacing topsoil, grass, fences, irrigation canals, trees or anything else that may have been removed or damaged during the construction process. Pipeline companies attempt to return the surface of the land as closely as possible to how it was prior to construction. 7. Directional Drilling or Boring- An Alternative Construction Method At times, directional drilling (directional boring) is used when trenching is not practical. Directional drilling is a construction process that allows pipe to be installed underground without digging trenches. It is often more efficient than cutting trenches and can minimize environmental disruption.
When using directional drilling, or boring, to lay pipe, a back reamer is attached to the end of the bore and pulled back with the pipe. Boring employs a highly sophisticated computerized system to ensure accurate drilling and pipe placement in one pass.
Safety Measures
In order to ensure the efficient and safe operations of natural gas pipelines, companies adopt the following safety steps:
Aerial Patrols: Planes patrol the pipeline route to identify pipeline encroachments, one of the most common threats to pipeline safety.
Pipeline Markers: These signs, which may be black, red, white or yellow, identify the general location of the pipeline; they are placed along the pipeline route and at intersections and waterways.
Gas Sampling: Regular natural gas testing provides insight to its quality and may indicate early signs of corrosion.
Preventative Maintenance: This involves the testing of valves and the removal of surface blockades that impact the operator’s ability to inspect the pipeline. In addition, gathering pipeline operators often add inhibitors that coat the inside of the pipeline and use equipment to regularly scrub the inside of the pipeline.
Leak Detecting Equipment: Equipment, such as smart pigs, can test pipe thickness, roundness, check for signs of corrosion and detect a possible leak or defect along the interior of a pipeline. In addition, pipeline personnel check for visible signs of leaks or corrosion during regular aerial and foot patrols. Pipeline operators also monitor their pipeline operations 24-hours a day, every day using technology connected to their operations control centers.
Participation in One-Call: One-Call is a state-specific program designed to alert a pipeline company that excavation activity is planned near its pipeline. One-Call is a free service and can be reached by dialing 811.
Are pipelines safe? Pipelines are, by far, the safest method for transporting energy products. Together the Pipeline & Hazardous Materials Safety Administration – a division of the U.S. D.O.T — and the Texas Railroad Commission are responsible for regulating pipeline operators and for inspecting and enforcing gas pipeline safety requirements in Texas.
Who should I contact to locate pipelines in my area? If you are planning to dig twelve inches or deeper for any reason, contact your local One-Call organization by dialing 811. One-Call will alert the utility companies in your area to come, free of charge, to mark the utility lines on your property.
Do all natural gas pipelines contain an odorant? Some pipelines contain an odorant, called mercaptan, which smells similar to rotten eggs, and some pipelines do not. Existing state and federal regulations determine whether or not a gathering or transmission pipeline should include odorant In some cases, depending on the intended use of the gas, it is not possible to add odorant to a pipeline. The primary use of odorant is due to gas being utilized in enclosed areas such as homes, so that it can be quickly detected before it reaches ignition sources. The odorant is not normally used in gathering and transmission lines because those lines are vented to the atmosphere for maintenance activity, in process controls, and the odorant would hinder treating/processing abilities. Natural gas in an open environment normally dissipates quickly into the atmosphere which eliminates the need for odorant.
Is odor the best indication of a pipeline leak? Odor can be one of several indications of a potential leak. If a distribution pipeline is leaking inside your house, odor is often the quickest way to detect the leak. But if a leak occurs on an underground transmission or gathering pipeline located outside, sight and sound are often more reliable ways to detect the leak.
If you live or work near a transmission or gathering pipeline, it is important to know the other, often more obvious, signs of a potential leak including: distressed vegetation (such as grass) near the pipeline, dirt blowing in the air and hissing or roaring sounds.
Compressor Stations Usually placed at 40 to 100-mile intervals along a pipeline, compressor stations push natural gas along the pipeline route by compressing gas to 100 times the normal atmospheric pressure using a turbine, motor or engine. Recent technologies incorporated in the past few years have made great strides in minimizing sound emissions from station facilities.
Compressor stations usually contain a liquid separator. Though natural gas in pipelines is categorized as “dry”, it is not uncommon for some water and hydrocarbons to condense in transit. The liquid separators are just another step to ensure that the natural gas flowing through the pipeline is as pure as possible.
Metering Stations Metering stations are found along interstate natural gas pipelines. Pipeline companies use metering stations to measure all natural gas going into or out of the pipeline system.
To measure the flow of natural gas, metering stations use a variety of meters including orifice, turbine, insertion, ultrasonic and positive displacement meters.
Additionally, some metering stations also regulate pressure and delivery volumes. These stations, often called meter and regulator stations (M&R), are important to ensure gas is traveling within the specific pressure ranges the line was built to withstand.
Regulatory Oversight
Who regulates the gas industry? The regulation of exploration and production of oil and gas in Texas is the responsibility of the Railroad Commission of Texas. The primary responsibilities of the Railroad Commission include preventing waste of oil and gas resources, protection of surface and subsurface water, and helping ensure interests of mineral owners. The Railroad Commission does not oversee or have jurisdiction for issues related to oil and gas exploration and production such as roads, traffic, aesthetics and sound, which are regulated locally, as are odors, leases, pipeline easements and royalty payments.
Who regulates natural gas pipelines? The regulation of natural gas pipelines in Texas is the responsibility of the Pipeline & Hazardous Materials Safety Administration —a division of the U.S. D.O.T--and the Texas Railroad Commission. Together they regulate, inspect and enforce pipeline safety requirements.
Who regulates roads? Texas Department of Transportation. However, most municipalities require road use agreements with additional stipulations, and counties may exert influence on the points of entry into a location affecting how roads are used.
Can I get a map of the pipelines that run through my neighborhood? The best way to identify the general location of a pipeline near your home or business is to locate the pipeline markers placed along the pipeline route and at road and railway crossings.
The federal government also provides maps of transmission pipelines in your community. You can find this information by visiting the National Pipeline Mapping System at www.npms.phmsa.dot.gov. Currently, the NPMS does not include maps of local distribution or gathering lines.
Ft. Worth Business Press By Robert Francis The Barnett Shale Energy Education Council (BSEEC) launched its web site on Nov. 1, unveiling a key component in the organization’s plan to provide information to the public about natural gas drilling and production. “Urban drilling like this is a fairly new phenomenon,” said Ireland. “We want BSEEC membership to be the gold standard in business operations in the Barnett Shale. If someone calls up and asks about a company, we want to be able to tell them if the company they’re dealing with has a good record or not.”
The New Barnett Shale Energy Education Council Launches Web Site To Help The Public Understand Issue
Posted on Nov 01, 2007 - 07:34 AM
NEWS RELEASE
Contacts: Barnett Shale Energy Education Council Ed Ireland, Executive Director 817-336-8789
Balcom Agency Kay Jackson 817-877-9933
The New Barnett Shale Energy Education Council Launches Web Site To Help The Public Understand Issues Related To The Barnett Shale
FORT WORTH, Texas – November 1, 2007 – A new Web site about the Barnett Shale launched today at http://www.bseec.org with the goal of providing North Texas residents a central point of fact-based information about key topics such as drilling, leasing, safety, environment and natural gas. Eight companies leading the development of the Barnett Shale natural gas field formed the Barnett Shale Energy Education Council (BSEEC) as a non-profit public education foundation with the goal of being a community resource that provides information to the public about natural gas drilling and production in the Barnett Shale. This Web site is the first of many community information resources to be developed by the BSEEC.
Fort Worth Mayor Mike Moncrief stated, “The BSEEC will help the residents of Fort Worth and surrounding communities better understand how development in the Barnett Shale will impact them. Some time ago, I met with natural gas industry leaders to express my concerns about the growing information gap and stressed the need for delivering timely, consistent, accurate, and complete information to residents. “
He continued, “I asked them to consider forming a public education organization that would enable them to deliver a consistent message while still protecting competition. I am very pleased that the industry responded to this call for action, and I believe the information provided by the BSEEC and its Web site will help our citizens make informed decisions about leasing and other legal documents associated with natural gas development. I commend the founding members for their leadership on public education and for their commitment to conduct their operations in the Barnett Shale ‘The Fort Worth Way,’ by being frank and honest with residents and giving back to the communities they operate in.”
Prior to launching the Web site, the BSEEC members conducted a nationwide search for an executive director and ultimately hired Ed Ireland. Ireland brings a combination of academics, industry and business experience. He holds a Ph.D. in Economics from Texas Tech University and was formerly a professor and head of the Department of Economics at Clemson University. His career includes 20 years in the oil and gas industry in Houston, Tex. Ireland will spend a majority of his time working with the community, from community leaders to neighborhood associations and schools.
“Our goal is to provide the community a central point of factual information about everything related to Barnett Shale as gas exploration and production evolve through the years,” said Ireland. “There are many issues that can be confusing. Our goal is to alleviate the confusion and misinformation about gas drilling, production and leasing. We also want the public to know that the members of the BSEEC are committed to safeguarding the environment and being good neighbors.“
According to Ireland, the Web site is just the first step in making the BSEEC an urban drilling community resource. He said the organization is developing brochures on important topics such as drilling and leasing that will be distributed through a variety of easy-to-access locations such as community centers and city offices. Ireland is also available to speak to community organizations, neighborhoods and schools.
The Fort Worth Chamber of Commerce is working collaboratively with the BSEEC on this effort. In addition to serving in an advisory capacity, the Chamber has provided office space and administrative support for the BSEEC.
Chamber President Bill Thornton commented, “The Chamber is excited about working with the BSEEC on this public education initiative. The Barnett Shale will be one of the leading economic drivers for the local economy for many years to come.”
The Chamber organized the successful Barnett Shale Expo that was attended by several thousand people in May 2007 and the 2008 Expo is already in the works.
“The Barnett Shale is creating jobs, boosting economic growth and providing additional tax revenues,” Thorton said. “At the 2007 Expo, nationally recognized economist Ray Perryman unveiled a study showing that in 2006 the Barnett Shale contributed $5.2 billion to the local economy. The community’s need for factual information about the Barnett Shale will only grow in the future.”
BSEEC Members Share Best Practices
While the BSEEC provides community information, it also provides a forum for Barnett Shale operators to share best practices when dealing with community and each other on key issues. The founding member companies developed and agreed to abide by a common set of core principles and ethical business practices when dealing with the community and with each other. According to Ireland, these core principles are a pre-requisite for membership in the BSEEC.
The founding members of the BSEEC include: Chesapeake Energy Corporation; Chief Oil & Gas, LLC; Dale Resources, LLC; Devon Energy Corporation; EnCana Corporation; EOG Resources, Inc.; Four Sevens Resources; and XTO Energy, Inc. The newest member of the council is Quicksilver Resources, and the BSEEC wants to expand its membership to other exploration and production companies, pipelines and service companies that operate in the Barnett Shale.
“Our goal is that BSEEC membership becomes a privilege, coveted by the industry and viewed by the community as the gold standard in business operations in the Barnett Shale region,” Ireland said.
About the Barnett Shale Energy Education Council The Barnett Shale Energy Education Council (BSEEC) is a community resource that provides information to the public about gas drilling and production in the Barnett Shale region in North Texas. The organization is dedicated to educating the public about the opportunities and issues related to urban drilling with fact-based information from sources such as industry, government, organizations and higher educational institutions.
Newsletter coming soon.
Posted on Oct 19, 2007 - 02:10 PM
Executive Director
Posted on Oct 04, 2007 - 01:01 AM
The Barnett Shale, one of the most significant and richest gas reserves in the nation, is also under one of the Texas’ fastest-growing cities, Fort Worth. With interest in alternative energy sources combined with new technology that makes gas drilling in the Barnett Shale more economical, urban drilling is quickly becoming a large economic engine for North Texas.
However, all this activity has created interest as well as confusion among the general public about the Barnett Shale, urban drilling and complicated issues around things such as leasing, mineral rights, safety and environment.
Energy Education executive Ed Ireland was selected as executive director to lead the Barnett Shale Energy Council, a consortium of seven of the leading energy companies operating in the Barnett Shale that are dedicated to promoting energy education and best practices as they relate to oil and gas leasing, drilling, production, transportation and marketing in the Barnett Shale.
Ireland’s primary responsibilities include overseeing the activities of the BSEEC, a Texas non-profit organization. These activities include implementing educational and outreach programs in Tarrant County, as well as other counties in the Barnett Shale. He also acts as an industry expert and spokesperson for the Barnett Shale, as well as a community and media representative on behalf of its members.
He brings to the BSEEC a unique combination of executive management, operational expertise and a deep knowledge of economic analyses in the oil and gas and real estate industries. Ireland has held several executive management positions including president of GeoSource and chief financial officer of NeoSoft, Inc. He has also served as president and founder of GasMark, Inc, a natural gas supplier, and Energy and Planning Associates, a consulting company that provided economic analysis and strategic planning services for the natural gas industry. Prior to his corporate work, Ireland served as assistant professor and head of the Economics Department at Clemson University in Clemson, South Carolina.
Ireland holds a B.S. in Economics from Midwestern State University, a Ph.D. in Economics and Statistics from Texas Tech University and post doctoral work at the University of Chicago.
Fact Sheet
Posted on Oct 04, 2007 - 01:01 AM
Purpose The Barnett Shale Energy Education Council (BSEEC) is a community resource that provides information to the public about gas drilling and production in the Barnett Shale region in North Texas. The intention of the BSEEC is to educate the public about the opportunities and issues related to urban drilling with fact-based information from sources such as industry, government, organizations and higher educational institutions.
Goal The goal of the BSEEC is to provide a central point of information for the community about everything related to the Barnett Shale as gas exploration and production progresses and evolves through the years.
Membership In November 2006, seven of the leading energy companies operating in the Barnett Shale joined forces to become the founding members of the Barnett Shale Energy Council. As founding members, these companies are dedicated to promoting energy education and best practices as they relate to oil and gas leasing, drilling, production, transportation and marketing in the Barnett Shale.
The BSEEC will be expanding its membership to other energy producers, pipeline companies and other companies that serve the energy business and subscribe to the organization’s core values.
Founding Members Chesapeake Energy Chief Oil & Gas Dale Resources Devon Energy EnCana EOG Resources Four Sevens XTO Energy
Members Quicksilver Resources
Contact Ed Ireland Executive Director 777 Taylor Street, Suite 900 Fort Worth, TX 76102 817-336-8789
Background
Posted on Oct 04, 2007 - 01:01 AM
The Barnett Shale has taken more than 100 million years to form under the North Texas landscape. But it wasn’t until the early 20th century when geologists on a mapping expedition discovered it on John Barnett’s land in San Saba County. The Barnett Shale was named, and it took significant advancements in new technology and drilling techniques perfected in the late 1990s to make gas exploration and production viable in the Barnett Shale region.
Drilling activity continued to grow in the early 2000s, and it was apparent that Tarrant County and some of the surrounding counties were sitting on top of the second largest gas reserve in the nation…and quite possibly the richest. As gas prices rose and drilling potential increased in urban areas, individuals and neighborhood associations were being approached about leasing the mineral rights to their properties. The potential economic boost to the local economies and to individuals was exciting.
However, all this activity created interest as well as confusion among the general public about the Barnett Shale, urban drilling and complicated issues around things such as leasing, mineral rights, safety and environment. It became apparent there was a need for more factual information and education about these subjects.
Fort Worth’s Mayor Mike Moncrief saw and acted upon the need for an information resource for the community and called on the leading energy companies operating in the Barnett Shale to examine the situation. In November 2006, eight of the leading energy companies operating in the Barnett Shale joined forces to become the founding members of the Barnett Shale Energy Education Council (BSEEC). These companies include Chesapeake Energy, Chief Oil & Gas, Dale Resources, Devon Energy, EnCana, EOG Resources, Four Sevens and XTO Energy.
As founding members, these companies are dedicated to promoting energy education and best practices as they relate to oil and gas leasing, drilling, production, transportation and marketing in the Barnett Shale.
The result is a community resource that provides information to the public about gas drilling and production in the Barnett Shale region in North Texas. The intention of the BSEEC is to educate the public about the opportunities and issues related to urban drilling with fact-based information from sources such as industry, government, organizations and higher educational institutions.
The goal of the BSEEC is to provide a central point of information for the community about everything related to the Barnett Shale as gas exploration and production progresses and evolves through the years.
The BSEEC will continue to expand its membership to other energy producers, pipeline companies and other companies that serve the energy business and subscribe to the organization’s core values.
