Some Agreement from the WSJ

The Wall Street Journal Weighs In
The Facts About Fracking

PEAK OIL AND GREEN ALTERNATIVES

Peak Oil has been around a long time and has been consistently in error for a number of reasons, some known and some unknown.

First the unknown: Peak Oil assumes a biogenic origin of hydrocarbons. Here is a link that questions that assumption:

http://www.sciencemag.org/content/319/5863/604.figures-only 

and another link to a more accessible article on the subject:

http://www.nature.com/news/2008/080131/full/news.2008.542.html .

The Russians embraced Thomas Gold's theory of abiotic origins of oil early on and began drilling very deep oil wells greatly increasing reserves and production. It seems possible that there is more than one way that Nature produces hydrocarbons and we are mistaken to look for a single answer.

Data Source: EIA - US Energy Information Administration

Peak Oil, also assumes a zero sum game in terms of known reserves and values reserves based on current production methods. As a result, not so long ago, the Peak Oil theory failed to assign value to shale oils known to reside in formations like the Barnett Shale, the Eagle Ford and Marcellus shales . The application of directional drilling combined with hydraulic fracking promises to reduce domestic imports by a third within 5-10 years with production in these very formations, considered worthless just a few years ago.

Big Oil does Fracking.. Let's Regulate Fracking!

There is a movement afoot to delegitimize and regulate one of the proven techniques for extraction of natural gas and oil from tight formations. Hydraulic Fracturing is the technique currently attracting attention among the more radical Greens. The environmentalists claim that Fracturing contaminates underground drinking water reservoirs. Current opinion among environmentalists is being driven by a recent Duke University study that concludes that dangerous levels of methane are present in water wells in NE Pennsylvania and adjacent counties in New York as a possible result of hydraulic fracturing.

This article "Shale Fracturing - Water,Nitroglycerin or a Nuclear Bomb" by Gene Powell, Publisher of the Powell Shale Digest, describes various attempts throughout the history of the oil industry to improve flow rates in tight strata by fracturing the producing rock formation. The methods varied from the mundane to the extreme and the clear winner was the most mundane, hydraulic fracturing using sand and water.