Existing fracking fleets are powered by diesel. But this energy sector has long been about technology and cutting costs. This latest innovation not only lowers operation costs, it reduces pollution and their carbon footprint.
It’s called electric hydraulic fracturing or E-frac. It uses the natural gas mined by the operation to power generators instead of using bringing in diesel fuel. It’s quieter (almost no noise pollution), produces less exhaust and carbon dioxide, and has the potential to knock hundreds of thousands of dollars off the annual operating costs of operation.
E-frac, as the new technology is called, is being adopted by EOG, Royal Dutch Shell Plc, Exxon Mobil Corp and others because of its potential to lower costs, reduce air pollution and operate much quieter than conventional diesel-powered frac fleets. Investment bank Tudor, Pickering Holt & Co analyst George O’Leary estimates e-fracs could lop off up to $350,000 from the cost of shale wells that run $6 million to $8 million apiece.
E-frac is not for everyone. While it may be ideal for small operations, new facilities, or fleet upgrades, some existing wells can’t justify the conversion costs for established sites. Upgrades costs, depending on the size of an operation, get pricey Haliburton (Evil!) has 500 fleets, which it estimates would cost 30 billion to convert.
This is not bad news. As has been the fashion with the American experiment, industry, and technology, fracking has driven its operating costs down year after year. Back in 2017, most operations needed oil at 70$ US per barrel to bother turning the “lights” on. Last year the number was closer to 50$/barrel. (I don’t have numbers for natural gas.) E-frac creates another option long term for new installations by not just mining natural gas and oil but using some of that gas to run the equipment.
And believe it or not, Investors in the fossil fuel industry are not just aware but interested in environmental impact. Operations with smaller footprints that are quieter and create less pollution or CO2 can attract more interest.
It also takes the pressure off consumers who may not know more about fracking than what Hollywood or the media provide. Not that we expect Da Media to invest time reporting this. These are technology advances that have not just provided more abundant affordable energy. It is a source (natural gas) that is almost entirely responsible for America being a world leader in economic growth (while significantly lowering its CO2 output at the same time.
You can drill your way out, create jobs, take power away from OPEC, prevent your enemies from hamstringing your gas and oil needs, and help “the environment.” And Democrats are committed to ending fracking.
Democrats are stupid.
| Reuters
