The Barnett Shale is more than 7,000 feet below the surface and is comprised of dense non-permeable rock. According to Dr. Ken Morgan, a geologist at Texas Christian University, “Solid hard rocks that are 7000 feet down don’t subside. You have more than a mile of solid rock that holds it all up. Subsidence occurs when you have loose, soft materials like in Houston (sands, clays, etc.) but not in cemented hard rocks like the Barnett Shale.”
The United States Energy Information Agency (EIA) released its “Annual Energy Outlook 2012” on January 23, 2012. The annual report shows that emissions of carbon dioxide in the U.S. are now lower than levels in the year 2000 and are predicted to continue to decline through the year 2035 (which is the extent of the study projection).
As noted in a recent Star-Telegram article “In the Barnett Shale, the bloom is off the boom,” by Jack Z. Smith, drilling activity in the Barnett Shale is at a seven year low of just over 50 rigs running...
As an economist, I would like to talk about the costs and benefits of regulation, specifically the proposed new and revised Fort Worth gas drilling ordinances. All regulations have costs. Some have benefits. Some regulations are justified on a cost/benefit basis, some are not.
I would like to focus on two points regarding the proposed New Source Performance Standards or NSPS rules.
We don’t give a second thought to many things in our daily lives until those things become hard to get or costly. We don’t think about where electricity comes from when we turn on a light switch nor do we give much thought to the many steps it takes for gasoline to be readily available whenever we stop to fill up our tank.
Facing the most severe drought conditions since 2006, some communities in North Texas are imposing water restrictions. However, as state law says, water can only be limited based on the proportion used. Because of this, natural gas drilling in the Barnett Shale will continue unless Stage 3 restrictions are imposed and all water users are restricted proportionally. This has caused some people to pause and question why, so we wanted to clarify the situation.
The headline in the Fort Worth Star-Telegram on July 15, 2011 said it all: “Air quality study finds no major health threats.” This is a reference to the long-awaited results of the “City of Fort Worth Natural Gas Air Quality Study” that the City of Fort Worth commissioned about one year ago. A task force appointed by the City awarded the work to Eastern Research Group (ERG) based in Lexington, Mass.
The New York Times has been publishing a six part series of articles that can only be described as anti-natural gas. The latest installment, published June 26 and 27, questions the extent and value of our country's vast shale gas resources. The writer, Ian Urbina, relied on anonymous sourcing, a few two-year-old emails and analyses unsupported by facts.
The idea of using compressed natural gas (CNG) in cars and trucks has been receiving more and more attention lately, partially because of attractive new technology and capabilities.
President Obama has been quoted as saying that part of his energy policy might include tapping the nation’s strategic petroleum reserves (SPR). The underlying notion is that by bringing more crude oil to the market, crude oil prices and ultimately gasoline prices will then decline. My theory is that tapping the SPR would have the opposite effect, and cause crude oil prices and gasoline prices to go up.



