Moves towards greater transparency improving outlook for shale gas
Posted July 14, 2010 at 6:15 am 
Filed in: The Wall Street Journal reported today that Range Resources Corporation (Range), one of a large number of independent companies drilling in the Marcellus Shale, would begin submitting lists of all the chemicals and additives, and their volumes, used in the hydraulic fracturing process. Range becomes the first company to make such a pledge.
Even before the oil spill in the Gulf of Mexico, pressure was mounting from politicians and environmental groups worried about groundwater contamination and other adverse results. Now, the threat of greater oversight is even higher.
This latest development is a good indication that the industry is taking some steps necessary to win over skeptics. It has long been known that over 99 percent of the fluid being used is water and sand. Because industry regards the way chemicals and additives are as proprietary information, it is this secret 1 percent that has been causing concern. Range said they are hopeful that their voluntary disclosure “will help dispel the misconceptions that have persisted and allow Range and others to deliver on the potential of this extraordinary resource base.”
A recent study from the Massachusetts Institute of Technology estimated that combined, the five major U.S. shale plays could be producing almost 30 billion cubic feet of natural gas per day by 2030, with approximately 8 billion cubic feet coming from the Marcellus (see below). As the energy mix continues to move away from coal and the transportation sector shifts towards a more diversified mix of fuels, the role of natural gas will become increasingly important. There is little doubt that unconventional natural gas production from shale plays will be a critical component in meeting this demand.
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