hydraulic fracturing operations: separating fact from fiction

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HYDRAULIC FRACTURING OPERATIONS: SEPARATING FACT FROM FICTION Cary Institute of Ecosystem Studies Fracking Forum May 5, 2012 Mark K. Boling President

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Presentation by Mark Boling, Executive Vice President and General Counsel of Southwestern Energy for a hydrofracking forum hosted by the Cary Institute of Ecosystem Studies in Millbrook, NY on May 5, 2012.

TRANSCRIPT

Page 1: Hydraulic Fracturing Operations: Separating Fact from Fiction

HYDRAULIC FRACTURING OPERATIONS:

SEPARATING FACT FROM FICTION

Cary Institute of Ecosystem Studies

Fracking Forum

May 5, 2012

Mark K. Boling

President

Page 2: Hydraulic Fracturing Operations: Separating Fact from Fiction

Regulatory Considerations

Surface Considerations

Subsurface Considerations

2

Page 3: Hydraulic Fracturing Operations: Separating Fact from Fiction

Regulatory Considerations

3

Air Emissions

Water SupplyWater HandlingWater Reuse & Disposal

Surface Considerations

Surface Impact• Drilling Locations• Truck Traffic & Road Damage• Infrastructure

Page 4: Hydraulic Fracturing Operations: Separating Fact from Fiction

Regulatory Considerations

Protecting Underground Water Resources

Frac Fluid Disclosure

Subsurface Considerations

4

Page 5: Hydraulic Fracturing Operations: Separating Fact from Fiction

5

Protecting Underground Water Resources

Well IntegrityIs the Key!

Page 6: Hydraulic Fracturing Operations: Separating Fact from Fiction

6

Well Integrity

Well Construction Standards2Evaluate Stratigraphic Confinement1

Evaluate Mechanical Integrity of Well3 Monitor Frac Job & Producing Well4

Page 7: Hydraulic Fracturing Operations: Separating Fact from Fiction

FRESH WATER AQUIFER ZONE

SHALLOW PRODUCING ZONE

CONDUCTOR PIPE

SURFACE CASING

PRODUCTION CASING

TARGET PRODUCING ZONE

GOOD MECHANICAL INTEGRITY

Page 8: Hydraulic Fracturing Operations: Separating Fact from Fiction

CEMENT CHANNELING

PRESSURE BUILDS UP

CONDUCTOR PIPE

SURFACE CASING

PRODUCTION CASING

FRESH WATER AQUIFER ZONE

SHALLOW PRODUCING ZONE

TARGET PRODUCING ZONE

CA

SIN

G

CE

ME

NT

FO

RM

AT

ION

Page 9: Hydraulic Fracturing Operations: Separating Fact from Fiction

FRESH WATER AQUIFER ZONE

SHALLOW PRODUCING ZONE

TARGET PRODUCING ZONE

INSUFFICIENT CEMENT COVERAGE

PRESSURE BUILDS UP

CONDUCTOR PIPE

SURFACE CASING

PRODUCTION CASING

Page 10: Hydraulic Fracturing Operations: Separating Fact from Fiction

Regulatory Considerations

10

Air Emissions

Water SupplyWater HandlingWater Reuse & Disposal

Surface Considerations

Surface Impact• Drilling Locations• Truck Traffic & Road Damage• Infrastructure

Page 11: Hydraulic Fracturing Operations: Separating Fact from Fiction

Regulating Air Emissions

11

Reduction Technology• Catalytic reduction• Ultra-low sulfur diesel fuel• LNG and CNG fuels• Oxidation catalysts• Green completions, vapor recovery

units, low bleed/no bleed pneumatic devices, plunger lift systems, leak detection

Emission Type• NOx

• SO2

• CO• CH4

• VOCs (incl. BTEX)

Emission Levels• EPA• Industry• State regulators• Research groups

Page 12: Hydraulic Fracturing Operations: Separating Fact from Fiction

Fulfilling the Promise of Natural Gas

Natural Gas IndustryEnvironmental Groups

Natural Gas IndustryNatural Gas Industry Environmental Groups

Regulators/Legislators

12

Regulators/Legislators

Environmental GroupsNatural Gas Industry

Straight talk/open dialogue

Debate the real issues

Regulation without the politics

Page 13: Hydraulic Fracturing Operations: Separating Fact from Fiction

HYDRAULIC FRACTURING OPERATIONS:

SEPARATING FACT FROM FICTION

Cary Institute of Ecosystem Studies

Fracking Forum

May 5, 2012

Mark K. Boling

President