As the debate over the environmental impact of hydraulic fracturing rages on, a new report from the Susquehanna River Basin Commission’s (SRBC) continuous water quality monitoring project does not show evidence of water quality changes as a result of natural gas development. In an article by Kevin Randolph from the Pennsylvania Business Report, he reports that “in January 2010 the SRBC began measuring and reporting water quality conditions in small streams that could potentially be impacted by the natural gas industry.” The SRBC water quality monitoring project monitors specific conductivity, turbidity and water temperature, which would reveal any immediate impacts from natural gas drilling activities. One organization that has a particularly strong interest in this report is the Marcellus Shale Coalition (MSC).
In 2018, the United States petroleum production increased 16% while simultaneously increasing natural gas production by 12%. According to the Energy Information Administration (EIA), “these totals combined established a new production record.” The United States has been the largest producer of natural gas since it passed Russia in 2011, and last year the U.S. surpassed Saudi Arabia to become the largest producer of petroleum. All signs indicate that the U.S. will continue to expand their production prominence, and over the next decade, the U.S. is set to account for 61% of all new global oil and gas production, nearly nine times the amount of Canada who projects to be second on the production increase list.
According to a survey by the Federal Reserve Bank of Dallas, the cost of profitably drilling a shale oil well in the US has fallen to a modern low of $50 per barrel, likely ensuring the growth of the onshore shale industry for years to come. The decrease reflects many factors including softer demand from refineries and concerns about the US-China trade war’s impact on global economic demand. The US oil benchmark is currently hovering near $63 per barrel. Cost reductions and increasing production should stop crude oil prices from rising to high.
The fall in oil prices at the end of last year combined with pressure from investors has led to a slowdown in the U.S. shale industry.