Sixty Lame Minutes
So, last night CBS hauled Aubrey McClendon, CEO of Chesapeake Energy, on board their flagship Sunday infotainment vehicle, 60 Minutes, to blow a mighty wind up America's ass (as they say in professional PR circles). America is lately addicted to lying to itself, and 60 Minutes has become the "go-to" patsy for funneling disinformation into an already hopelessly confused, wishful, delusional, US public.
McClendon told the credulous Leslie Stahl and the huge viewing audience that America "has two Saudi Arabia's of gas." Now, you know immediately that at least half the viewers misconstrued this statement to mean that we have two Saudi Arabia's of gasoline. Translation: don't worry none about driving anywhere you like, or having to get some tiny little pansy-ass hybrid whatchamacallit car to do it in, and especially don't pay no attention to them "green" sumbitches on the sidelines trying to sell you some kind of peak oil story.... It also prepared the public to support whatever Mr. McClendon's company wants to do, because he says his company will free America from its slavery to OPEC. By the way, CBS never clarified these parts of the story by the end of the show.
First of all, they are talking about methane gas, not liquid gasoline or oil. There are large deposits of methane gas locked into shale deposits roughly following the Appalachian mountain chain from New York State through Pennsylvania, West Virginia, into Ohio, but also hot spots out west. It's hard to get at. You have to basically blow up the shale rock deep underground with high pressure water that is loaded up with chemicals and sand particles to keep the rock fragments separated once they are blown apart. Chesapeake Energy specializes in this rock fracturing (or "fracking") method for drilling. You can get gas out of the ground this way. The question is how much, over what time period, at what cost.
At the present time, with America anxious about any kind of future energy, shale gas sounds like a dream-come-true. Mostly what the public saw on 60 Minutes last night was a sell-job for Chesapeake Energy to boost its stock price. Here are some facts:
• Over a 50 year period ahead, all the shale gas drilling of the Marcellus fields in New York State will produce the equivalent of three years US consumption at 2008 levels.
• A price of $8 per unit is required to make shale gas fracking economically viable in theory even for a short time. Gas is currently around $4. Expect to pay at least twice as much for gas.
• Even at higher costs, shale gas fracking is arguably uneconomical. It requires huge numbers of rigs, generally 8 wells per "pad," meaning very high capital investments. The wells produce nicely for a year, average, and then deplete very steeply - meaning you get a lot of money up front and very soon all that capital investment is a wash. Translation: Chesapeake can make a lot quick money over the next few years of intense drilling and they don't care what happens after that.
• Chesapeake itself estimates that 5.5 million gallons of fresh water are needed per well, often delivered in trucks, which require fuel.
• It takes three years, average to prepare a drilling "pad" and the up to 12 wells on it, working 24/7 in rural areas with significant noise and electric lighting
• The fracking fluid is a secret proprietary cocktail formula amounting to 5 percent of the liquid injected into the earth. It's composed of: sand; a jelling agent to suspend the sand because water is not "thick" enough; biocides to kill bacteria that thrive in jelling agent; "breakers" to thin out jell-thickened water after fracking to get the fluid out of the way of released gas and improve "flowback;" fluid-loss additives to decrease "leak-off" of fracking fluid into rock; anti-corrosives to protect metal in wells; and friction reducers to promote high pressures and high flow rates. Of the 5.5 million gallons of fluid injected into each well, 27,500 gallons is the chemical cocktail.
• Mr. McClendon said on 60 Minutes that it couldn't possibly harm the public's water supply because they were drilling so far below the 1000-foot-deep maximum of most water wells. He left out the fact that they have to drill through those drinking water layers to get down to the shale gas, and pump the fracking fluid through it, and then get the gas up through it. He also left out the fact that the concrete casings of drill holes sometimes crack and leak at any depth.
• The fracking fluid cannot be re-used. You have to mix new cocktail fluid for each injection.
• "Flowback" fluid inevitably comes back up with the gas, sometimes spilling over the ground. In any case, the stuff that does come back up is stored on the surface in lagoons. Often it contains heavy metals, salts, and radioactive material from drilling through strata of radon-bearing granite and other layers. Liners of flowback fluid lagoons have been known to fail.
• Gas well failures in Pennsylvania, where production was ramped up quickest in recent years, have ended up polluting well water to the degree that residents can no longer use their wells.
• Little is known about the migration of fracking fluids underground.
It seems to me that the chief mass delusion associated with this touted "bonanza" is that Americans would supposedly be able to shift to driving cars that run on natural gas. I believe they will be hugely disappointed. Between the cost of fracking production (and its poor economics), gearing up the manufacture of a new type universal car engine, and installing the infrastructure for methane gas fill-ups - not to mention the supply operation by either new pipelines or trucks carrying liquefied methane gas, we will discover that a.) America lacks the capital, and b.) that households will be too broke to change out the entire US car fleet.
What this disgusting episode really shows is how eager the USA is to mount a campaign to sustain the unsustainable at all costs, including massive collective self-deception. The lying starts at the very top, not just in Aubrey McClendon's office at Chespeake, but in every executive suite throughout the land - including the Oval Office - where any lie is automatically swallowed and then upchucked for public consumption in the interest of keeping a nation based on addictive rackets stumbling on without having to change our behavior.
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