Developing Shale Gas Resources: Environmental, Economic and Policy Perspectives

Abstract: Modern hydrocarbon production got its start in 1821 with the first shale gas well near Fredonia, New York. Although research and exploration targeting hydrocarbons in shale continued, it has taken nearly two centuries for shale resources to move front and center in our national energy discussion. Key to developing continuous-accumulation shale resources is the installation of horizontal wells on a multi-well pad completed with multi-stage high-volume hydraulic fracture stimulation. Current state-of-the-art technologies use pads of up to 16 wells where each well can have up to 22 stages using nearly 26 million liters of water. Given the scale of operations, full exploitation of these resources creates a few unique challenges for both operators and regulators. Widespread adoption of high-volume hydraulic fracture stimulation techniques have raised concerns over the impact of hydraulic fracturing on freshwater resources, cumulative environmental impacts due to water use, and well casing and well cementing integrity. In New York State, these concerns have been magnified at the policy level, leading to a serious review of drilling practices. When the context shifts to energy economics and security, the role of shale gas as a future fuel source takes on a new importance in the national dialogue. This presentation will bring perspective and insight on the role shale-gas development has in our nation’s energy future.

About the Speaker: John Martin joined NYSERDA in 1993 to manage its Subsurface Resources Program and has developed an extensive portfolio of more than 100 projects with total funding in excess of $50 million. He has served on various state and national panels including the USDOE’s Unconventional Resources Technical
Advisory Committee established to advise the department on the development and implementation of programs related to onshore unconventional natural gas and other petroleum resources, and review and comment on the program's annual plan. He co-directed the Governor's Carbon Capture and Sequestration (CCS) Working Group, an interagency committee organized in 2007 to address CCS issues and was NYSERDA's point person on a series of technical studies looking at all aspects of hydraulic fracturing and multi-well pad development until his retirement in December 2010. In addition, he completed the initial research on the natural gas potential of New York's Utica Shale that helped stimulate significant industry investment in this resource. John regularly lectures and publishes on such diverse topics as the development of shale-gas reservoirs, CCS, compressed-air energy storage, renewable energy resource development, and research policy. He holds a Ph.D. in Urban and Environmental Studies, an M.S. in Economics and a B.S. in Geology, all from Rensselaer Polytechnic Institute. He holds an M.B.A. from Miami University and completed graduate work in mineral economics at West Virginia University.