Despite the controversy surrounding the environmental effects of fracking, it is clear that an increased supply of natural gas has brought down prices of the commodity, and helped the country on its path towards increased energy independence. Since 2008, the price of natural gas has been cut in half due to the natural gas boom. And, in the first eight months of 2012, fracking aided the country in meeting 83 percent of its energy needs. As the U.S. economy sustains remarkably high levels of energy self-sufficiency, experts say fracking and tapping into natural gas reserves will be key in helping the economy recover.

According to analysts at UBS, the economic gains from fracking will help narrow the current account deficit, while giving U.S. assets a boost due to reduced spending on oil imports. Most significantly, experts foresee the U.S. dollar becoming an average 2 percent stronger against 46 foreign currencies.

“If the U.S. becomes less reliant on foreign energy, the negative relationship between oil and the dollar should break down,” Shahab Jalinoos, a senior currency strategist for UBS in Stamford, Connecticut, said on Dec. 13.

The ability to access previously untapped regions of natural gas in regions such as North Dakota, Texas, Pennsylvania, and Ohio has contributed to bringing down the price of natural gas, in addition providing a boost to these local economies. Fracking has lead to the creation of hundreds of thousands of new jobs. IHS Global Insight notes that the energy sector currently provides 1.7 million jobs to Americans, and that number could rise to 3 million by 2020.

President Obama has been a supporter of natural gas development, even assembling a task force to oppose regulations that would slow fracking. In 2011, the shale output for the United States was a record 6.8 million barrels per day. The National Intelligence Council estimates that U.S. oil production could rise to 15 million barrels a day by the end of the decade, enabling the country to be an energy exporter by 2020.

Sources: Financial Post, Catholic

The $6 trillion global energy industry has undergone a lot of changes over time. Hydraulic fracturing, the method of extracting natural gas from shale rock formations, stands out as one of the single most important innovations throughout history. Fracking was first introduced in 1947; however, wasn’t commercially used until 1999 with Barnett Shale. Fracking has made it possible to reach significant oil and gas resources that had previously been too difficult to retrieve.

In the U.S. the fracking industry continues to grow. The U.S. Energy Information Administration predicts that about 7.6 trillion cubic feet of shale gas will be produced in the U.S. in 2012. The production of natural gas is estimated to increase 4% to 5% each year. The International Energy Agency estimates there is technically about 208 trillion cubic meters of recoverable shale gas resources. The same agency estimates by the year 2035, natural gas production will increase from 3,376 billion cubic meters to 5,112 billion cubic meters.

The largest fracking opportunities in the U.S. lie in shale plays, including:

• Barnett Shale, Texas
• Bakken Shale, North Dakota
• Haynesville Shale, Louisiana
• Marcellus Shale, Appalachian Basin
• Raton Basin, Colorado

Fracking has been slow to spread abroad. Governments in Europe, Asia, Africa and South America have done little to encourage fracking. Concerns regarding the environment might be one of the reasons for the slow growth of fracking abroad. For example, Britain temporarily suspended fracking after environmental concerns were brought to media attention.

Fracking has enormous potential in the U.S. for energy and the economy and despite international concerns, the technology appears to be on the rise in many countries. Investors are looking to capitalize on the growing industry. According to Motley Fool, the full potential of fracking is yet to be discovered. Experts suggest watching companies like Halliburton, the largest provider of fracking services, which is under appreciated for its global potential to scale.

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According for a new study released by IHS, the development of unconventional oil and natural gas in the United States shows a positive impact on job creation. Researchers suggest regulated production supports more than $1.7 million U.S. jobs, and the number of jobs is expected to increase to 2.5 million over the next three years. The study, America’s New Energy Future: The Unconventional Oil and Gas Revolution and the Economy, assesses economic contribution, such as, jobs, economic value and government revenue.

Listed below are some of the key highlights from the study, “America’s New Energy Future: The Unconventional Oil and Gas Revolution and the Economy”:

• Nearly $5.1 trillion in capital expenditures ($2.1 trillion in the oil sector, $3 trillion in the gas sector) will take place between 2012 and 2035 across the entire upstream unconventional oil and gas activity sectors.
• Employment in the entire upstream unconventional oil and gas sector on a direct, indirect, and induced basis will support nearly 1.8 million jobs in 2012, 2.5 million jobs in 2015, 3 million jobs in 2020, and nearly 3.5 million jobs in 2035.
• The jobs created tend to be high quality and high paying, given the technologically innovative nature of unconventional oil and gas activity. Workers associated with unconventional oil and gas are currently paid an average of $35.15 per hour—higher than the wages in the general economy ($23.07 per hour) and more than wages paid in manufacturing, wholesale trade and education, among others.
• Unconventional energy activity will contribute $237 billion in value added contributions to GDP in 2012, a figure that will increase to $475 billion annually in 2035.
• Unconventional oil and gas activity will generate more than $61 billion in federal and state government revenues in 2012 and increase to $91 billion in 2015 and $111 billion in 2020. By the last year of the forecast period, in 2035, government revenues will increase to more than $124 billion.

Hydraulic fracturing or “fracking” is the most common method of extracting natural gas from Shale rock formations. Natural gas not only provides economic value, but cuts carbon emissions by half. Domestic production of natural gas is rapidly growing due to advances in technology. At this rate, the United States could see revolutionary changes in foreign fuel dependency and the manufacturing industry.

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Utica Shale gas is a rock layer located beneath Marcellus Shale and is an incredible source of natural gas. Recently, the United State Geological Survey reported, Utica Shale’s natural gas drilling potential is believed to contain 38 trillion cubic feet of undiscovered gas. Although that’s less than the Marcellus shale at 84 trillion cubic feet; the potential is still substantial. In addition to the natural gas, USGS estimated 940 million barrels of oil and 9 million barrels of liquid gas.

“Understanding our domestic oil and gas resource potential is important, which is why we assess emerging plays like the Utica, as well as areas that have been in production for some time” said Brenda Pierce, USGS Energy Resources Program Coordination, in a USGS press release. “Publicly available information about undiscovered oil and gas resources can aid policy makers and resource managers, and inform the debate about resource development.”

Marcellus Shale and Utica shale occupy areas in Maryland, Pennsylvania, Ohio, Virginia, and West Virginia. These estimates are for technically recoverable oil and gas resources, currently producible using the available technology and regardless of economic and accessibility considerations. The estimated undiscovered oil ranges from 590 million barrels to 1.39 billion barrels, natural gas ranges from 21 to 61 TCF, and natural gas liquids ranges from 4 to 16 million barrels.

“As more (Utica) wells are drilled and more production data is assessed, reserves figures will likely increase,” said Steve Forde, vice president of the Marcellus Shale Coalition, a drilling industry trade group. He hailed the Utica as “another game-changing opportunity.”

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Hydraulic fracturing, also known as “fracking,” is used to extract natural gas deep beneath the ground. Since the 1940′s hydraulic fracturing has been a popular method of extracting oil and gas from the ground. Today, hydraulic fracturing is the preferred method of extracting oil and natural gas; in fact, hydraulic fracturing is used in nine out of ten wells in the United States.

Natural gas is found in Shale rock formations. In order to reach the natural gas, small fissures are made by pumping water, fracking fluids, and sand in the ground. Shale formations vary in depth, but can be as much as 7,700 feet beneath the ground.

How deep 7,700 feet?

• More than six Empire State Buildings stacked end to end
• 1½ times deeper than the deepest part of the Grand Canyon
• More than 25 football fields laid out goalpost to goalpost.

According  Chesapeake Energy, simplified steps in hydraulic fracturing include:

1. Water, sand and additives​ are pumped at high pressures down the wellbore.
2. The liquid goes through perforated sections of the wellbore and into the surrounding formation, fracturing the rock and injecting sand or proppants into the cracks to hold them open.
3. Experts continually monitor and gauge pressures, fluids and proppants, studying how the sand reacts when it hits the bottom of the wellbore, slowly increasing the density of sand to water as the fracturing progresses.
4. This process may be repeated multiple times in “stages” to reach maximum areas of the wellbore. When this is done, the wellbore is temporarily plugged between each stage to maintain the highest water pressure possible and get maximum fracturing results in the rock.
5. The fracturing plugs are drilled or removed from the wellbore and the well is tested for results.
6. The water pressure is reduced and fluids are carried up the wellbore for disposal or treatment and re-use, leaving the sand in place to prop open the cracks and allow gas and oil to flow.

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Some say the fracking debate is over, while others think the debate is just getting started. Those who think the debate is just getting started believe fracking causes earthquakes and contaminates drinking water. Many people believe the states are doing a poor job of regulating the fracking process. However, these arguments are nothing but myths. Here are 5 fracking facts to prove the debate is over.

Fracking is short for hydraulic fracturing, a method of drilling used to releases natural gas from shale rock formations deep beneath the ground. Hydraulic fracturing methods have been used for decades. Advances in technology have made fracking more efficient and accessible as ever.

Myth 1. Fracking causes drinking water contamination

Since the late 1940s, the U.S. has used hydraulic fracturing as a method to release gas. The combinations of fracking and horizontal drilling lets drillers extract oil and gas from areas that, in the past, were impossible to reach.

Drinking water is located just a few feet underground, while fracking takes place more than 7,000 feet underground. Solid rock separates the oil and gas deposits from shallow ground water.

Myth 2. Fracking causes earthquakes

Federal officials say the act of fracking does not cause earthquakes. Fracking in this respect is separate from wastewater disposal. An experts from the U.S. Geological Survey told NPR, “Fracking itself probably does not put enough energy into the ground to trigger an earthquake. That’s really not something that we should be concerned about.”

Myth 3. States are not regulating fracking efficiently

States insist that fracking and wastewater disposal is done properly with the highest level of efficiency and safety. Fracking is better regulated by the state because the state understands its environment and how fracking should regulated.

“States are stepping up and doing a good job,” says federal EPA Administrator Lisa Jackson.

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The fracking states include Texas, Pennsylvania, Ohio, North Dakota and Louisiana.

Texas – Texas is known for its success in finding and leading the crude oil industry. Texas is often referred to as the birth of the modern oil industry. Texas lies on top of three large shale formation, Barnett, Haynesville and Eagle Ford, which means Texas will continue to be a major energy supplier for years.

A report in the NY Times read, “The Eagle Ford, where the first well was drilled only three years ago, is already producing more than 100,000 barrels a day and could reach 420,000 by 2015, almost as much as Ecuador, according to Bentek Energy, a consultancy.”

Pennsylvania – Pennsylvania finds itself in the middle of the shale gas revolution with an abundance of Marcellus Shale. Pennsylvania frackng has provided jobs with an average pay of $62,000, which is well above the states average. According to a study by the Natural Resources Economics, Inc. full development of Marcellus Shale could support more than 211,000 jobs in Pennsylvania.

Ohio – Ohio has been drilling since 1860, and is home to the second oil well ever drilled in the United States. The oil and natural gas industry directly and indirectly supports 17,000 jobs in Ohio. The production of Utica shale is still being develop. Over the next five year, an estimated $34 billion is to be spent of the exploration and development of Utica Shale. Within that time, over 200,000 jobs are expected to be created.

North Dakota – Shale gas production in North Dakota is booming and so is the state. In 2005 the production of Bakken shale was just 3,000 barrels a day in 2005. Today, at least 225,000 barrels are produced a day.

According to CCN Money “…the North Dakota oil boom is one reason U.S. oil prices, as measured by West Texas Intermediate Crude, have been running $15 to $20 a barrel cheaper than the Brent crude sold in Europe.”

Louisiana – Advanced in shale gas production means more energy production for Louisiana. Haynesville Shale is located in Louisiana and has become the nation’s highest-producing shale gas play. The production of shale has been an essential ingredient in the growth of Louisiana’s economy and will continue to create jobs for years to come.

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Marcellus shale is a 400 year-old giant rock formation located 4,000 to 8,000 feet beneath the earth’s surface, and estimated to be one of the largest natural gas reserves in the world. The formation stretches across New York, Pennsylvania, West Virginia, Ohio, and Maryland. The United State’s Geological Survey (USGS) believes the formation’s total area is an estimated 95,000 square miles. The natural gas supply contained in the Marcellus shale could be enough to meet the energy needs of U.S. consumers’ for hundreds of years.

In order to reach the Marcellus Shale, a unique drilling technique is used, fracking. Fracking is short for, Hydraulic fracturing, which is a method of extracting the natural gas from Marcellus shale. Hydraulic fracturing requires a large quantity of water, fracking fluid, and sand. The mix is pushed deep beneath the earth, which creates fractures. The fractures or held open by the sand, and the fracking fluid helps the natural gas flow into the wells quickly and efficiently. Studies estimate that up to 80 percent of natural gas wells drilled in the next decade will require hydraulic fracturing.

Technological advances have allowed companies to gather an abundance of natural gas while protecting drinking water and the environment. Oil and gas companies keep the fracking process under tight control to ensure best fracking practices. Over time, fracking methods will replace conventional extraction techniques.

Studies have indicated that an increased production of natural gas will lead to thousands of jobs and help stimulate the economy. In fact, a study by Timothy J. Considine shows increase access to Marcellus shale could mean 250,000 jobs and more than $6 billion in government revenue.

Marcellus shale provides an opportunity to reach an abundance of natural gas through hydraulic fracturing. Hydraulic fracturing will help boost our economy by creating more jobs and offering more affordable fuel options.

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According to the Associated Press, claims regarding natural gas drilling and the effect it has on health and air quality are based on inaccurate and misleading science. Researchers confirm that the claims relating fracking to breast cancer rates are “just plain false.”

Fracking is slang for hydraulic fracturing, with is the extraction on natural gas from shale rock formations. The extraction process have been controversial over the years. The process of extracting natural gas requires a mixture of water (99%), sand and chemicals (1%). The mix is pumped thousands of feet beneath the ground to fracture the shale rock formations, which releases the natural gas into the wells. The fractured rock is held open by the sand.

Anti-fracking activists have used misleading health claims in the fracking controversy. “They said drilling that began 10 years ago in north Texas’s Barnett Shale led to a jump in breast cancer rates.” However, medical researches confirm no such spikes have occurred.

Researchers also found other fracking allegations unconvincing, such as, contaminated drinking water and harmful to air quality.

Fracking was once controlled by the state. Now, fracking is controlled both by state and federal governments. The EPA stepped in to run a few tests on the water sources in fracking neighbors. The Obama Administration is imposing fracking regulations this year. Obama promises to prevent chemicals from seeping into groundwater. He will also contain greenhouse gas emissions from drilling sites.

Fracking activists believe that fracking regulations could slow down drilling activity, which puts the U.S. further away from energy independence. They people believe the regulations are “propelled by emotional cries and shaky scientific evidence.”

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The fracking debate started with suspicions regarding fracking and drinking water safety. The answer is unknown; however, there have been no traces of fracking process contaminating fresh water sources when done properly. A new study done by the Department of Energy, may be the first to provide some of the first solid answers to the controversial question.

Richard Hammack, a spokesman for the National Energy Technology Laboratory in Pittsburgh, said that southwestern Pennsylvania is giving researchers access to commercial drilling sites. Hammack believes this is the first time research has been conducted on a commercial gas well. The scientists are testing the migration of drilling fluids from Marcellus Shale rock formations, which are located 8,100 feet under the ground. The test will indicate whether the drilling fluids move upwards or sideways.

P. Lee Ferguson, a Duke University civil and environmental engineering professor said, “Conceptually, it sounds like a really great idea… I have wondered about this since I started thinking about fracking. Which compounds are mobile and which aren’t?” However, Ferguson cautioned, that a single test might not answer the question thoroughly because you must take location and practices into considerations.

“The complicating factor is some of the compounds don’t act in the same way underground,” he said of fracking fluids, as well as the fact that there are substantial differences in geology throughout the Marcellus region.

Environmentalist claim that fracking fluids pollute fresh water sources; however, the industry and many government officials indicate that simply isn’t the case when fracking is done properly. A few incidents of polluted water have occurred when best practices are not followed and faulty wells are in place.

It is unlikely that fracking will contaminate our fresh water sources; however, best practices should always be met.

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