Oil and gas companies study drinking water wells in Texas, Pennsylvania

Some oil and gas companies are starting to consider testing water wells before they drill oil and natural gas wells. This stems from the debate about whether hydraulic fracturing threatens the safety of drinking water.

Cabot Oil and Gas Corp. faced water-contamination questions in Pennsylvania while Range Resources Corp. faced similar questions regarding its Barnett shale operations in Texas. The accusations have caused some within the oil and gas industry to question the quality of drinking water before any oil and gas drilling was done.

Meanwhile, Texas Railroad Commissioner Michael L. Williams on Dec. 7 accused the US Environmental Protection Agency of “Washington politics of the worst kind” and of “grandstanding in an effort to interject the federal government into Texas business.”

Williams made his comments after the EPA suggested that gas operations by Range Resources contaminated two water wells in southwest Parker County, Tex., where gas was found in the water. Range Resources issued a Dec. 8 news release saying research indicates its operations did not cause any methane in the water wells.

For months, Range Resources worked with the RRC and others on extensive testing of both its gas wells and the water wells of concern.

Cabot Oil and Gas said in an Oct. 19 release that it has proof that methane gas has been present in water wells around the Dimock Township, Pa., area for generations. Four Dimock-area water wells have methane levels in the water that exceeds levels suggested by the US Department of the Interior.

“We do not believe that our operations caused the Dimock water-quality issues,” a Cabot spokesman said.

All of this is causing oil and gas companies to consider testing the water before they drill.

Baker Institute studies Bolivia's lithium potential

A couple years ago, Bolivia was described by some as “the Saudi Arabia of lithium” in reference to an evolving market for batteries for future electric vehicles. A recent study by Rice University’s Baker Institute on Public Policy notes questions linger about Bolivia’s possible role in the lithium industry.

“The supply picture is quite complex, not only globally, but specifically in Bolivia,” said David Mares, Baker Institute scholar for Latin American Energy Studies and a political science professor at the University of California, San Diego.

“There are multiple issues that have to be resolved before Bolivian production, still 10 to 15 years down the road by some estimates, could enter the market, particularly given the quality of Bolivian lithium, the country’s lack of infrastructure, and an unstable political environment,” he said.

Unlike oil and gas markets, lithium is not consumed as it works in batteries. The battery industry likely will be able to recycle the lithium once a battery dies, although Mares estimates the lithium recycling infrastructure is 5-10 years away from being commercially available.

Bolivia has no lithium extraction and processing industry so it would have to partner with others or develop indigenous technology, the Baker Institute researcher noted. Potential international investors might include oil and gas companies.

“The government has invited Japan Oil, Gas & Metals Corp., Mitsubishi, and Sumitomo from Japan; LG Chem Ltd. and Korea Resources Corp. from Korea; Brazil’s Ministry of Science and Technology; and France’s Eramet SA and Bollore” to advise Bolivia about lithium projects, Mares said.

Bolivia’s participation as a lithium supplier will be interesting to watch unfold. As Mares notes, “The government is already committed to a $1 billion investment plan in hydrocarbons to pick up the slack caused by natural gas policies that are seen as unfriendly to private investment.”

Louisiana DNR: Natural gas is key to US energy future

No climate program should impose constraints or disincentives on US natural gas and oil production, said Scott Angelle, Louisiana Department of Natural Resources secretary.

Speaking to the Independent Petroleum Association of America’s annual meeting in New Orleans on Nov. 5, Angelle called everyone in the room an environmentalist when it comes to enjoying the outdoors. He said industry is open to innovation and technologies that promote a clean, safe environment.

But he also noted that industry is well aware how political debate around climate change policy could have serious implications for independents and for the country’s energy future.

Angelle and other speakers at the IPAA meeting agreed that no climate change policy should be adopted unless it assures the future production and use of gas.

IPAA literature reports that about 800,000 oil and gas wells operate in the US. These wells account for less than 1% of the nation’s greenhouse gas emissions, said an Inventory of US Greenhouse Gas Emissions and Sinks: 1990-2006.