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America's energy production and reserves are soaring while emissions are falling. The boom is fueling tremendous job creation as hundreds of billions of dollars are being spent to not only keep growing production but use cheaper American energy in manufacturing. This is fueling additional tax revenue for governments, while making millions of Americans rich and saving the rest of us a lot of money on our energy bills. Clearly, the energy boom is doing a lot of good. However, not every part of the boom is positive. Produced water from fracking is thought to cause earthquakes while overall water usage for fracking is impacting already parched areas of the country. Worse yet, there's an ugly side of the boom. Chesapeake Energy (NYSE: CHK), for example, has been accused of collusion to keep lease prices down in Michigan. In addition to that Chesapeake Energy is also being accused of short-changing landowners on oil and gas royalties in Pennsylvania. On top of that companies like Kodiak Oil & Gas (NYSE: KOG) have incinerated hundreds of millions of dollars' worth of natural gas in North Dakota. Lack of pipeline infrastructure leaves companies like Kodiak Oil & Gas with no choice but to flare excess gas production instead of venting it into the atmosphere, which is much worse for the environment. Without a doubt the industry and the nation have a lot of work to be done to make America's energy boom even better. The problem is that both sides of the debate tend can refuse to look at both sides, which is hindering real progress. That's why I created the slide show below to help put the boom into a better total perspective. It shows all the good the industry is doing while also highlighting some of the areas of weakness that need to be addressed.
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America’s Energy Boom: The Good, Bad and the Ugly
Photo credit: Chesapeake Energy Corporation
The Good Part of the Boom
• U.S. on pace to become worlds top oil producer in 2015.
• U.S. could be energy independent by 2035 according to the International Energy Agency.
U.S energy production surges and imports fall
Source: EIA
The Good Part of the Boom
• Energy employment up 41% since 2009.
• Industry expects to create another million jobs by the end of the decade.
Energy related employment is surging
Photo credit: Flickr/Brenda Gottsabend
The Good Part of the Boom
• U.S. emissions dropped 3.4% last year.
• Greenhouse gas emissions now at lowest level since 1994.
Greenhouse gas emissions are down
Photo credit: Public Domain
The Good Part of the Boom
• More than 100 manufacturing projects announced totaling up to $100 billion in investments.
• More than 500,000 new manufacturing jobs to be created.
$100 billion to be invested in manufacturing
Photo credit: Flickr/Bob Jagendorf
The Good Part of the Boom
• Energy companies will need to invest $30 billion per year through 2035 on new midstream infrastructure investments.
• This is 3x more than previous estimates.
$641 billion in infrastructure spending
Photo credit: Flickr/Vicki watkins
The Good Part of the Boom
• In 2012 energy boom saved average U.S. household $425 to $725 a year.
• Savings expected to grow to more than $1,200 by 2020.
Energy prices lower for all Americans
Photo credit: Flickr/Tim
The Good Part of the Boom
• Oil and gas severance taxes in Texas reached $3.4 billion last year, $900 more than prior estimates.
• Impact fees in Pennsylvania should generate $225 million this year.
Increased tax revenue
Photo credit: Flickr/DonkeyHotey
The Bad Part of the Boom
• Minor earthquakes have been reported in Ohio and Oklahoma.
• Wastewater disposal wells, not hydraulic fracturing, are being blamed for the quakes.
Earthquakes are on the increase
Photo credit: Flickr/Jason Shenk
The Bad Part of the Boom
• Millions of gallons of water needed to frack each well.
• Drought conditions in many areas put added pressure on water availability.
Competition for water
Photo credit: Flickr/Bert Kaufmann
The Bad Part of the Boom
• New York State continues to have a moratorium on fracking.
• Water, health, safety, environment, economy all in focus with divided opinions.
• Debate rages between economics, politics and the environment.
Fracking debate divides
Photo credit: Flickr/CREDO.fracking
The Ugly Part of the Boom
• Radioactive “oil socks” found abandoned in North Dakota.
• No state approved disposal facility leaves industry with few disposal options.
Dangerous materials not properly stored
Photo credit: Flickr/Mad House Photography
The Ugly Part of the Boom
• Flaming tap water is known to happen before fracking came to a region.
• Fracking chemicals aren’t secrets, but instead are well-documented and regulated.
Misinformation causes confusion
Photo credit: Flickr/Bosc d’Anjou
The Ugly Part of the Boom
• Chesapeake Energy is accused of colluding to reduce competition for drilling rights.
• Chesapeake Energy also accused of charging landowners too much in post-production costs.
Focused on profits instead of stakeholders
Photo credit: Flickr/liz west
The Ugly Part of the Boom
• $100 million in natural gas is flared each month in North Dakota by companies like Kodiak Oil & Gas.
• Nearly 30% of gas produced in the state is flared.
• Flaring can be seen from space.
Natural gas flaring
Photo credit: Flickr/NASA Goddard Space Station
