Showing posts with label Fracking. Show all posts
Showing posts with label Fracking. Show all posts

Monday, March 18, 2013

Fracking Cuts Unemployment to 0.7 Percent


Oil gusher at Robinson,
Illinois, in 1907.
The Chicago Tribune had a front page feature story Sunday about the oil boom in North Dakota which mentioned, fairly high up in the story, the potential in Southern Illinois.

There's been a lot of debate, most of it one-sided and hysterical, about the negative impacts of fracking, usually from people who don't realize our state's oil industry has been using the technique since the 1950s.

What's new is the combination of fracking, far deeper drilling as well as the development of horizontal drilling. I did a series of articles last year for The Daily Register in Harrisburg about the potential.

Those opposed to it certainly haven't swayed me. It would be better if some of their leading spokespeople weren't opposed to our petroleum-based civilization in the first place. I get it. You don't like oil. Go back to your cave. There aren't any real alternatives except for coal and natural gas which for the former you like even less.

My favorite complaint is that it would hurt tourism. In actuality, only to the extent that it would drive up room rates and eliminate vacancies. Neither of those, mind you, would bother hotel operators.

But the best reason to support a resurgence in our oil industry is the jobs that come with it. There's a story in today's paper about Illinois fighting with Iowa over a $1.2 billion new anhydrous ammonia plant.

That's a lot of construction jobs but only 150 permanent jobs when it's built. They're talking 50,000 jobs if downstate Illinois starts to do its best imitation of North Dakota.

I knew it was serious last spring when U.S. Sen. Dick Durbin, D-Illinois, came to Harrisburg for a photo op following the Leap Day Tornado. A week earlier he had targeted the coal industry at a global warming news conference in Chicago.

I wanted to ask him about his comments. To his credit he didn't change them even though he was in the heart of coal country. He surprised me when he brought up oil and natural gas as replacements for the mining jobs.

I had been hearing about the possibilities of fracking coming to Illinois and a potential oil boom. I asked, "how big?" He wouldn't quantify an answer, but smiled, and made reference to North Dakota. It was around that time that North Dakota passed Alaska as the county's second largest oil-producing state.

And with that reference it's time to get back to Sunday's focus story.

Appropriately, the Trib's big story starts with a little one, how Andy Turco went from high school dropout in a series of dead-end jobs to a solid blue collar career. All he had to do was leave Chicago for the northern plains.
Then [Turco] talked to a buddy working here, in a barren corner of North Dakota, where an ugly-sounding word — fracking — has driven oil from the ground and pushed unemployment down to 0.7 percent. That's right: seven-tenths of one percent.

Turco sold his car, hopped in a van and drove west.

Today, he's earning nearly six figures working about 90 hours a week on a drilling rig, one of many Chicago-area transplants who have joined thousands in a remote region experiencing an oil boom while much of the country tries to shake off a recession hangover.

"It is the best thing I ever did; no doubt about it," said Turco, 24, who arrived in Williston in October 2011. "I'm finally living an adult lifestyle, instead of a teenage dropout lifestyle."

And it's all thanks to fracking, short for hydraulic fracturing, a relatively new and controversial drilling technology in which highly pressurized water, sand and other substances are driven into oil-rich shale thousands of feet deep, creating cracks that release the oil deposits and send them up the well.

Read more about the developments here.

The Illinois General Assembly will be taking up state Rep. John Bradley's bill to regulate fracking. It will be the toughest regulatory oversight in the country. It's backed by both industry and the still-in-the-mainstream environmental groups.

Saturday, June 02, 2012

Oil Leasing Boom Boosting Mount Vernon Occupancy

According to oil and gas officials by way of a Southern Illinois lawmaker the flurry of oil and gas leasing in the east half of the region in preparation for a potentially massive oil boom has already boosted occupancy rates in Mount Vernon. Neighboring Wayne County and Hamilton County are the current hot spots for leasing after three companies started in Saline County last year.

State Rep. Brandon Phelps, D-Harrisburg, passed along the tidbit Thursday during the last day of the spring session in what was either the second or third interview of the day. A surprise move by a liberal college-town representative change an all-parties agreed upon fracking bill into one that would cause a two-year moratorium on the use of hydraulic fracturing, a technique that's been used for more than 60 years in Illinois.

Phelps and region's other lawmakers of both political persuasions blocked consideration of the bill and possibly saved hundreds if not thousands of potential jobs coming to the region. Fracking and horizontal drilling is expected to begin this summer. If they find oil in the New Albany Shale formation about a mile under the surface like they have in the Bakken formation up in North Dakota all bets are off for the region.

My story quotes Phelps as describing it as a potential $100 billion industry. I'm pretty sure that was with a "b" and not an "m" in the figures. Already oil and gas officials briefed lawmakers Thursday about the current impact of the potential boom.

Phelps noted that right now he was told, "(We) have 200 land men in Southern Illinois representing 10 companies. Hotel occupancies are up 20 percent in Mount Vernon alone."

My story from April talks more about the history of fracking in the region.

Southern Illinois lawmakers aren't the only ones who have been briefed about the potential for the region.

Even U.S. Senator Dick Durbin of Illinois who has been vocal in his support of new federal regulations targeting the use of coal expressed support for fracking during his visit to Harrisburg earlier [in April].

"You know we're going to ask all the right questions because there are legitimate concerns, but we've found it can be done safely if it is carefully regulated. We don't want in any way to contaminate water supplies in the process. We don't want to put anyone's public health in danger. We just want it done in a thoughtful careful manner that will call for some government oversight and regulation to make it work," Durbin explained.

...the Democratic senator would rather see the regulations take place at the federal level...

"If it can be done in that way it's a source of energy that we never dreamed of that's just sitting there waiting to be tapped," said Durbin who remained coy at giving an exact value to its potential, only pointing to the oil boom taking place in the Bakkan shale formation in North Dakota...

So how big is the Bakken boom? Well, first, Mount Vernon's higher occupancy rates may only be the beginning.

Williston, N.D., is the center of the new oil boom. KPAX-TV reported May 8 that Williston saw 10 hotels open last year with six or seven ready to open later his summer. At one point the Holiday Inn was charging $250 a night.

When I wrote my story quoting Durbin, North Dakota was the nation's third-largest oil-producing state. Since then on May 15, the Wall Street Journal reported North Dakota has now surpassed Alaska as the nation's second largest oil-producing state. Only Texas produces more oil.