The Environmental
Protection Agency’s (EPA) new cap on emissions in drilling natural gas this
week is the first federal ruling to tackle air pollution tied to hydraulic fracturing. According to
EPA, the new
standards would reduce the release of toxic and carcinogenic chemicals such as
benzene, hexane and methane. Natural gas
producers would have two years to comply with the new standards. Although the American Petroleum Institute
(API), which represents 500 oil and gas companies, argued that the new
standards would slow down the production of domestic natural gas and cost
hundreds of millions of dollars, some gas drillers did not think the costs
would slow down the gas boom in the U.S.
Gas producers, such as Southwestern Energy Co. and Devon Energy Corporation,
stressed that they already have technology in place to capture fugitive methane,
an important greenhouse gas.
Pollution related to
drilling natural gas does remain a source of concern. For example, emissions from gas wells in
Wyoming attributed to the increase in ozone levels to the degree that the government
may need to “declare parts of the state as an ozone non-attainment area.” But drilling
for gas has not been delayed in Wyoming or Colorado, “where technology to
capture emissions has been required by state since 2009 and 2010.” Development of shale gas in Arkansas’
Fayetteville Shale by Southwestern has been also relatively successful due to
cutting costs of emission capturing from $20,000 per well to zero.
While EPA’s new
environmental measure is a step towards improving environmental standards of
the booming shale gas industry in the U.S., there is a potential for
over-regulation of the industry or duplication of efforts already undertaken by the
industry to control emissions. Shale gas
has completely transformed the U.S. energy landscape, making the country
self-sufficient in natural gas. The low
cost natural gas is reviving
the manufacturing and chemical industries in the U.S., shifting the heavily coal-based
utility sector to gas, and bringing down the prices of heating and electricity
to consumers. Regulatory slowdown of the
industry would have unintended consequences to the economy.
At this point, addressing
casing and cementing of shale gas wells as well as usage and treatment of the flowback
water appear to be the most important environmental challenges facing the
industry. But before slapping a one-size
fits all regulation to appease environmental groups, it is also crucial to look
at functioning state regulations that already exist as well as voluntary
self-regulation practiced by some gas producers to avoid major accidents.
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