By Patrick J.
Kiger
For National
Geographic
Published
November 11, 2013
It's well known
that water has been key to the shale oil and gas rush in the United States. But
in one center of the hydraulic fracturing boom—North Dakota—authorities are
finding that the initial blast of water to frack the wells is only the
beginning.
The wells being
drilled into the prairie to tap into the Bakken shale need "maintenance
water"—lots of it—to keep the oil flowing.
So while the
water first pumped down the hole to crack rock formations and release the
underground oil and natural gas typically totals 2 million gallons (7.5 million
liters) per well, each of North Dakota's wells is daily drinking down an
average of more than 600 gallons (2,300 liters) in maintenance water, according
to recent calculations by North Dakota's Department of Mineral Resources (DMR).
Over the life
of the well, which authorities presume will be 30 to 40 years, maintenance
water needs could add up to 6.6 million to 8.8 million gallons (25 to 33.3
million liters)—or more than three to four times the water required for the
initial fracking.
North Dakota
DMR Director Lynn Helms addressed the maintenance water issue in a taped
address earlier this fall at the annual meeting of the North Dakota Association
of Oil and Gas Producing Counties.
"What we're beginning to realize is that these . . . wells will
need freshwater for maintenance over their life," Helms was quoted as
saying in a report on the presentation in the local newspaper, the Dickinson
Press. The implications for water demand are significant in a
state that gets less than 13 inches of rainfall each year in its driest areas,
and ranks among the bottom 10 states for precipitation. In 2012, the Bakken oil
industry used about 5.5 billion gallons (209 billion liters) of water—more than
the amount used by the 110,000 inhabitants of Fargo, the state's biggest city.
When the Bakken is fully developed in the next 10 to 20 years, the oil and gas
play's 40,000 to 45,000 wells may need to consume roughly double that amount—as
much as 10.2 billion gallons per year (28 million gallons each day)-in
maintenance water to keep the oil flowing, according to a July 2013 DMR
presentation to the North Dakota legislature. The
implications for water demand are significant in a state that gets less than 13
inches of rainfall each year in its driest areas, and ranks among the bottom 10
states for precipitation. In 2012, the Bakken oil industry used about 5.5
billion gallons (209 billion liters) of water—more than the amount used by the
110,000 inhabitants of Fargo, the state's biggest city. When the Bakken is
fully developed in the next 10 to 20 years, the oil and gas play's 40,000 to
45,000 wells may need to consume roughly double that amount—as much as 10.2
billion gallons per year (28 million gallons each day)-in maintenance water to
keep the oil flowing, according to a July 2013 DMR presentation to the North
Dakota legislature.
In sparsely
populated rural areas, the addition of even relatively few jobs can have a big
impact, they say. But the first thing to watch is that industry and media
reports tend to overestimate the number of jobs that will come with shale oil
and gas development:
an industry
funded study authored by Considine et al. (2011) suggests that shale natural
gas extraction was associated with 140,000 Pennsylvania jobs during 2010. A
similar study by Kleinhenz & Associates (2011) predicted that the natural
gas industry would create and support 200,000 jobs in Ohio by 2015, though
drilling did not begin in earnest until 2012. These estimates, though large,
pale in comparison to a recent study that finds California’s Monterey shale
play could create up to 2.8 million jobs by 2020 (USC Global Energy Network,
2013; Vekshin and Nash, 2013). These predictions seem unrealistically
high, especially when compared to what has actually happened in booming areas
like North Dakota’s Bakken. That region added only 49,000 jobs from 2003 to
2012, and not all of that growth was necessarily related to energy development.
That actual growth is a fraction of the growth projected in the industry-backed
studies for Pennsylvania, Ohio and California.
Many impact
studies also fail to account for possible offsetting negative effects from
energy development that may offset the positive effects such as any crowding
out of other economic activity that would have occurred otherwise (e.g.,
entrepreneurs outside of energy may try other locations with more stable labor
markets). Higher prices (especially for housing) may also offset some of the
benefits of higher wages potentially negatively affecting quality of life in
the area. In addition, many of the benefits may trickle away to other areas due
to commuting workers, purchases outside the region, and absentee landowners
receiving the lease payments. Finally, perceived or real environmental
degradation may frighten some current residents and potential residents away—
especially in the long-run. The take-away is that communities should be wary of
industry funded economic impact studies (regardless of the industry) and should
try to verify economic impact estimates with independent experts.
Williston, North
Dakota, for example, experienced an energy boom in the 1970s and early ’80s
when oil prices peaked. But the boom was followed by a bust.
[After the
bust,] Williston’s economy subsequently greatly lagged the U.S. up until the
most recent shale boom. Williston (Williams County) did not surpass its 1981
peak in employment until 2010. Generally, poor long-term economic performance
is common in extractive resource based economies. This natural resource curse
has been documented at every level of geography from countries, to U.S. states
and counties. Some reasons for this include weak or corrupt governance, lack of
economic diversity, a weak climate for innovation and entrepreneurship in the
broader economy, and a reduced human capital development.
Oil drilling
has sparked a frenzied prosperity in Jeff Keller's formerly quiet corner of
western North Dakota in recent years, bringing an infusion of jobs and reviving
moribund local businesses.
But Keller, a
natural resource manager for the Army Corps of Engineers, has seen a more
ominous effect of the boom, too: Oil companies are spilling and dumping
drilling waste onto the region's land and into its waterways with increasing
regularity.
Hydraulic
fracturing — the controversial process behind the spread of natural gas
drilling — is enabling oil companies to reach previously inaccessible reserves
in North Dakota, triggering a turnaround not only in the state's fortunes, but
also in domestic energy production. North Dakota now ranks second behind only
Texas in oil output nationwide.
The downside is
waste — lots of it. Companies produce millions of gallons of salty,
chemical-infused wastewater, known as brine, as part of drilling and fracking
each well. Drillers are supposed to inject this material thousands of feet
underground into disposal wells, but some of it isn't making it that far.
According to
data obtained by ProPublica, oil companies in North Dakota reported more than
1,000 accidental releases of oil, drilling wastewater or other fluids in 2011,
about as many as in the previous two years combined. Many more illicit releases
went unreported, state regulators acknowledge, when companies dumped truckloads
of toxic fluid along the road or drained waste pits illegally.
State officials
say most of the releases are small. But in several cases, spills turned out to
be far larger than initially thought, totaling millions of gallons. Releases of
brine, which is often laced with carcinogenic chemicals and heavy metals, have
wiped out aquatic life in streams and wetlands and sterilized farmland. The
effects on land can last for years, or even decades.
Kris Roberts,
who responds to spills for the Health Department, which protects state waters,
agreed, but acknowledged that the state does not have the manpower to prevent
or respond to illegal dumping.
The number of
spill reports, which generally come from the oil companies themselves, nearly
doubled from 2010 to 2011. Energy companies report their spills to the
Department of Mineral Resources, which shares them with the Health Department.
The two agencies work together to investigate incidents. In December, a stack
of reports a quarter-inch thick piled up on Kris Roberts' desk. He received 34
new cases in the first week of that month alone. "Is it a big issue?"
he said. "Yes, it is."
NEW TOWN, N.D.
(AP) — Leaders of North Dakota's Mandan, Hidatsa and Arikara nations say that
while they are thankful for the money that oil has brought the
once-impoverished Fort Berthold Indian Reservation, they are concerned about
the environmental impact of drilling on their land.The Three Affiliated Tribes
opened their third annual oil and gas conference Tuesday at the 4 Bears Casino
in New Town, on the northwestern North Dakota reservation. One of the first
speakers to take the stage, stationed next to a banner proclaiming
"sovereignty by the barrel," was Mervin Packineau, a tribal
councilman."Our economy is really looking good," he said. "But
now it's time to turn around and start protecting our land, guys."
In February,
the reservation's oil production accounted for more than a quarter of the
state's daily total, according to the state's Department of Mineral Resources.
Tribal officials say that would put the reservation among the top ten oil
producers in the nation.
But the
sentiments of some tribe members are far removed from the, "Drill, baby,
drill," mantra printed on T-shirts for sale at gas station convenience
stores elsewhere in the oil patch. It reflects what they say is a strong,
personal connection to the land and their long history in a place where most
residents didn't arrive until the start of the oil boom, about five years ago.
Recent oil
spills and incidents involving the illegal dumping of oil production byproducts
have highlighted the environmental risks associated with drilling.
I'm not
anti-oil. ... I'm anti-irresponsible," he said.