Brief company background:
Caprica is a 40-year -old company rooted in Charleston, West Virginia area. First 30 years, it only operated in Kentucky and Ohio. Starting from 1997, Caprica carried on an expansion strategy to Michigan, and in 2005 it applied the hydraulic fracturing technology on shale gas exploiting. Up till now, Caprica already have five years experience on using hydraulic fracturing technology.
Current Strategy:
Caprica’s strategy is to grow its reserves, production, net income and cash flow. It is focus on acquiring properties that have development potential. Meanwhile, Maintaining operational integrity is also a vision Caprica try to pursue, so Barrow need to consider the environmental controversy when making her
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Please see the following chart for the risk assessment.
1. Chemicals contaminate if fluid leaks from drilling pipes.
Arguments * Malfunctions may cause fluid leaks all the way down to the shale. * EPA promoted fracking technology with political bias. * The chemicals in fluid can cause many diseases and there is potential connection between existing water contamination and hydraulic fracturing. * Exploitation needs to invest heavily on fixed asset and site setting up. If EPA study proved the high probability of water commination by using fracking in next year, Caprica will face significant operation and legal risks.
Debates * Most of unconventional gas, such as shale and tight sand, is too deep in the ground to have the fluid reach aquifer. * Even fluid get into aquifer, it is not as toxic as other wastewater discarded from other daily activities. EPA claimed the fracking process is safe. * There is no study evidence shows the causation and possibility of fracking contamination.
2. Huge water usage
Argument:
* Fracking will use up 4 to 5 million gallons water per well. Monthly usage would be 320 to 400 million gallons (assume 80 new wells per month). * Tainted water cannot be reintroduced without expensive treatments.
Debates:
* The water usage per month for fracking just equals to the
gallons of chemicals are used per fracturing (9). Pneumatic fracking has the same concept as
Hydraulic fracturing is also known as “fracking” is a technique which involves drilling down, then horizontally as far as 10,000 feet below the surface to release natural gasses stored in the sedimentary rock known as Shale. The channel is then encased with concrete or occasionally steel to allow millions of gallons of water to be injected into the wellbore. Most water used in fracking comes from surface water sources such as rivers, lakes, or other accessible bodies of water nearby. Not only is there water being funneled into the wellbore, but also a mixture of sand and other chemicals. When the high-pressure mixture is injected underground it fractures the Shale around the wellbore and creates fissures. The fissures are then held open with
Fracking, or hydraulic fracturing, is the process of extracting natural gas from shale rock layers deep within the earth.The dangers of fracking are the chemicals that go into fracking and how much water is used and contamination of city water. Some dangers of fracking are water usage. They use 2 to 5 million gallons of water. Not all of the chemicals are recovered from the ground. We only know of 8 out of 600 chemicals. To many chemicals are used and some a harmful. Fracking water usage is too high for instance one well can use 144,000,000million gallons of water. 50%-70% of the fracking fluid is left in the ground and isn’t biodegradable. The waste fluid that is outside in the sunlight evaporates and releases volatile organic compounds(Volatile organic compounds (VOCs) are organic chemicals that have a high vapor pressure at ordinary room temperature. Their high vapor pressure results from a low boiling point, which causes large numbers of molecules to evaporate or sublimate from the liquid or solid form of the compound and enter the surrounding air.) Due to the VOCs acid rain, ground level ozone and contaminated air. Ground level ozone is bad, but ozone up high in the atmosphere protects the earth from the Sun’s harmful rays.
Hydraulic fracking isn 't all good though, there are many controversial things about it. First off, water contamination is a hazard. There are many ways that the water supply could be contaminated by fracking. One way is by groundwater entering through cracks that fracking has made. The water solution that 's pumped into the ground is a mixture of water, sand, and chemicals. Water and sand make up 98% of the mixture, while the remaining 2% is chemicals. Although fracking companies have never realised the chemicals used, scientists studying wastewater have found many harmful additives. A few of these are benzene, toluene, and many acids, all of which pose huge threats to humans. For each fracking well, more than 8 million liters of
In recent years, the subject of hydraulic fracturing, better known as fracking has been a constant subject of interest in the news media. The pros and cons of fracking are passionately debated. However, the public should become educated on the subject of fracking prior to choosing a side of the argument. In the scholarly article, “Super Fracking,” published in 2014, by Donald L. Trucotte, Eldridge M. Moores, and John B. Rundle, a detailed description of fracking is provided, followed by their analysis of current issues surrounding the controversy. According to Trucotte, Moores, and Rundle, fracking saves the consumer money. The wellhead cost to produce natural gas in January of 2000 was two dollars and sixty cents per one thousand cubic feet. At an alarming rate, the cost at the wellhead to produce natural gas had risen to eight dollars per one thousand cubic feet by January of 2006. Comfortingly, the wellhead cost dropped to two dollars and eighty-nine cents by the end of 2012. Impressively, gas production increase and price decrease over the time period are a result of fracking. In their article, Trucotte, Moores, and Rundle describe in great detail that hydraulic fracturing, most commonly referred to as fracking is the process of drilling down into the earth to fracture the layers of rock so that a high-pressure water mixture is directed at the rock to release the oil or natural gas inside. This method of fracking has been used commercially for the last fifty years.
The mismanagement of the practice has the potential to create environmental damage such as water contamination, radioactive spills, and increased seismic activity that could cost thousands in dollars in damage. Furthermore, the unintended consequences of fracking can have detrimental effects on the environmental. The potential for water contamination can pose both an immediate and long term risk to environmental stability, including landscape distortion, inhabitability and ecological displacement. This contamination of drinking water can also be detrimental to the human environment, limiting the amount of safe water available for both the residential and commercial human environment. With the increase of fracking, the level of disapproval for the practice has only mounted. Concerns including overconsumption of
The actual technique involves “pumping a slurry of water, sand and chemicals underground to fracture shale formations and release hydrocarbons” ("Fracking", 2013, p. 276). Modern procedures use a high degree of manipulation in order to extract the natural gas. The natural gas from fracking is dispersed in rock, and can only be retrieved by using specialized removal techniques (Palliser, 2012). These specialized techniques have many unintended consequences. For instance, the current method of fracking may cause the issue of flowback. Flowback occurs when the internal pressure of the rock formation causes the injected watery, chemical mixture to return to the surface with other naturally occurring substances (Palliser, 2012). This flowback is often injected back underground or can be processed by wastewater treatment plants, where it is later discharged as surface water (Palliser, 2012). Indisputably, the disposal and generation of flowback is one of the main concerns regarding hydraulic fracking. The wastewater developed from fracking procedures is often inappropriately handled and is sometimes sprayed onto rural roads and forests (Finkel & Hays, 2013). As a result, the surface water may come in contact with living organisms and can cause a plethora of issues. For fracking opponents, their driving force is the ill effects of fracking on the environment and overall health. Similarly, the possibility of drinking or coming in contact with chemically laden byproducts
Natural gas is a fossil fuel that plays a critical role in the demand and supply of energy in the United States. It is considered to be a clean burning transition fuel. Compared to coal and oil, natural gas combustion does not generate as much pollution and is therefore considered an ideal partner for renewable energy resources. Natural gas is extracted from shale formations underground that require horizontal drilling and hydraulic fracturing – “hydrofracking” or “fracking”. This drilling and extraction method is currently considered a global widespread issue due to the rapid increase in the amount of new gas wells that threatens the quality of water around the source (Entriken, Evans-White, Johnson & Hagenbuch, 2011).
natural water sources, and or other water supplies are “contaminated due to fracking” EPA states
Stephen holditch of the department of petroleum engineering, Texas A&M University believe that hydraulic fracking does not cause pollution and has not contaminated any water in any known cases when fracking was used in wells; however there have been many cases of this and could cause a more serious problem if it continues. ‘The oil and natural gas industry support more than 2.1 million jobs according to IHS. Economics” (source 8). ‘Other policy experts say hydraulic fracturing could supply more than half of U.S. natural-gas production by 2030” (source 5). With this being said if we stop hydraulic fracturing we could have millions of people lose jobs and would have a great energy shortage. Though if Hydraulic fracturing continues, climate change could speed up, lots of ground water sources could be polluted and some of the ‘650 chemicals that can cause cancer” (source 3) could spread and there could be a cancer epidemic. Going back to loosing ground water sources, it was found that ‘scientist discovered methane in 115 out of 141 shallow drinking-water wells. It [was also] found the closer the water source was to the natural gas well, the more methane it contained.” (source 4) taking this information in there are also other ways to generate power such as solar farms and hydraulic
Few issues have recently gotten as much attention as the energy extraction activities involving a controversial procedure called "fracking." As reports of drinking water becoming tainted with fracking fluid flood the news, both oil and gas companies as well as environmental groups are presenting competing "facts" about the effects of drilling on ground water.
The mantra of the gas industry is there has never been a proven instance of well water contamination caused by the fracking process, which so far remains true. Most of the problems documented in "Gasland" including in Dimock resulted from the drilling, not the fracking procedure. But that does not mean fracking fluids pose no threat to our water supplies. They contain some chemicals that are harmful even in very tiny amounts. The fluid that comes back up out of the ground is saturated with salts, is sometimes radioactive and often contains harmful heavy metals like arsenic. Carl Kirby, a geologist at Bucknell who does not appear in the film, says the prospect of fracking fluids migrating up through thousands of feet of rock to contaminate water wells is “unlikely but not impossible.”The history of what’s gone wrong thus far in Pennsylvania suggests accident and human error pose as much risk as the fracking process, an angle Fox does not explore. Several weeks ago, a truck full of fracking brine overturned at an intersection about eight miles from my family home. The spill was contained by local volunteer firemen, county emergency responders and the drilling company, and it did not contaminate the small
Hydraulic fracturing began in 1947 and still happening until now. People have used fracking to produce more than one million oil and natural gas wells since 1947. Currently "fracking accounts for 50% of locally produced natural gas and 33% of local petroleum” (Engelder 274). It proved that fracking is valuable because people can get too much natural gas and petroleum from fracking. There are 2.5 million "frac jobs" that had been performed on oil and gas wells around the world and more than one million of those are in the United Stated. Oil shale resources are abundant in United States, such as in
The Gordalla et al paper is a toxicology study of the constituents of fracking fluids and flow back water and its impact on drinking-water wells. Data used in the study is based from ExxonMobil drilling sites in northern Germany. The paper relates to the New York Times article as they both tackle the question of the impacts of fracking on groundwater. The paper lists down the different chemicals used in fracking-fluid and ranks them by their projected
pg. 1) “In a July 19 letter to ten oil and gas producers – including BP, Chesapeake Energy, and ExxonMobil – the lawmakers requested information on the companies’ hydraulic fracturing operations and on possible human impacts. According to a subcommittee staff memo, the hydraulic fracturing companies ‘do not track whether the wells they fracture are located in underground sources of drinking water (Hobson Penn.).”