Daniel Hung Lee

Professor Semih Eser

EGEE 101H
4 May 2016
Hydraulic Fracturing in the United States: A Positive Analysis for a Normative Conclusion

Abstract
The objective of this paper was to determine the appropriate response to hydraulic
fracturing in the United States. This was achieved by first exploring the history of the
phenomenon to contextualize the benefit-cost analysis that followed. The analysis then
attempted to objectively showcase both sides of the argument, before concluding that
hydraulic fracturing should be aggressively promoted.

Introduction
Hydraulic fracturing, or fracking for short, is the latest energy craze sweeping the
nation. To date, approximately a million wells have been hydraulically fractured in 21 states.1,
2

On average, about 13,000 of such wells are newly drilled every year.3 Unsurprisingly, a

2014 study found that at least 15.3 million Americans have lived within a mile of a fracking
well that has been drilled since 2000.4 Needless to say, hydraulic fracturing is a serious
phenomenon that deserves an equally serious response. Its controversial nature that is
inevitably mired in politics suggests that a balanced and factual analysis of its costs and
benefits could aid in the collective choosing of this response. Having said that, any
meaningful conclusions must necessarily be rooted in personal values. With that in mind, I
contend that hydraulic fracturing should not only be widely accepted by contemporary

American society, but also actively propagated due to its numerous economic, social and
political benefits that significantly outweigh any trade-offs.

Literature Review
In 1862, amidst the bedlam of the American Civil War, Col. Edward A. L. Roberts
serendipitously observed the effects of artillery shelling a canal.5 He described this
phenomenon as superincumbent fluid tamping referring to the magnifying capabilities of
water.6 After his dismissal from the Union Army, he drew upon this idea to begin work on
revolutionizing the process of oil extraction.7 Roberts made quick progress, and in 1865 he
received his first of many eventual patents for an Improvement in Exploding Torpedoes in
Artesian Wells.8 A year later, he was awarded the now historic and still relevant U.S. Patent
No. 59,936 for what would famously be known as the Roberts torpedo.9 This was the advent
of hydraulic fracturing.10
The mechanical principles of hydraulic fracturing present in the exploding torpedo is
similar now as it was then.11 Fundamentally, the objective is to deliver a powerful force to a
designated depth underground, rubblizing the hard rock formations around the well to
stimulate the release of oil or gas trapped within.12 Initially, this powerful force was
generated by filling an iron shell which was the torpedo with 15 to 20 pounds of
gunpowder and topping it off with an explosive cap.13 After pumping a substantial amount of
water into the borehole, the torpedo was lowered cautiously and subsequently detonated by
dropping a weight along a suspension wire attached to the cap.14, 15 The presence of water
allowed the explosion to concentrate concussion and more efficiently fracture surrounding
oil strata.16
Despite the success of gunpowder, by 1868 nitroglycerin had taken over as the preferred
chemical explosive.17 Unfortunately, it proved to be even more dangerous than its

predecessor.18 In an 1896 book about notable oilfield accidents, John J. McLaurin wrote: A
flame or a spark would not explode Nitro-Glycerin readily, but the chap who struck it a hard
rap might as well avoid trouble among his heirs by having had his will written and a cigarbox ordered to hold such fragments as his weeping relatives could pick from the surrounding
district.19 In less morbid terms, nitroglycerin was both stronger than black powder and prone
to accidental detonations by virtue of being a contact explosive that was very sensitive to
shock and friction.20
Even so, when used correctly, the results were overwhelmingly positive.21 Production in
certain wells increased 1,200 percent within a week of detonation.22 The Roberts Petroleum
Torpedo Company exploited the monopoly they had on the technology due to their many
patents and charged exorbitant fees for its usage.23 They also frequently went after
unlicensed practitioners, and Roberts is said to have been responsible for more civil
litigation in defense of a patent than anyone in U.S. history.24 He died an affluent man in
1881, and the Roberts Petroleum Torpedo Company is survived today by the Otto Cupler
Torpedo Company.25
Of course, hydraulic fracturing in its current form is vastly different from the Roberts
torpedo.26 It was not until the 1930s when drillers began using non-explosive alternatives
such as acid in place of nitroglycerin.27 These alternatives made the wells more resistant to
closing which improved productivity.28 However, the first commercial experiment and de
facto birth of modern day hydraulic fracturing did not take place until March 17, 1949, after a
decades worth of extensive studies.29 On an oil field approximately 12 miles east of Duncan,
Oklahoma, a team of petroleum production experts from Halliburton successfully
performed the first industrial-scale application of this infant technology.30 Not long after, on
that same day, the second oil well was also hydraulically fractured near Holliday, Texas.31 By
1988, the technology had been utilized almost a million times.32

The next major advancement in hydraulic fracturing was developed in the 1980s and would
send the United States into its first shale boom.33 More importantly, it connected hydraulic
fracturing to the mass production of natural gas.34 Much of this was down to the efforts and
ingenuity of one man: George Mitchell, the boss of an oil-service company, who saw the
potential for improving a known technology, fracking, to get at the gas. Big oil and gas
companies were interested in shale gas but could not make the breakthrough in fracking to
get the gas to flow. Mr. Mitchell spent ten years and $6m to crack the problem (surely the
best-spent development money in the history of gas). Everyone, he said, told him he was just
wasting his time and money.35 The breakthrough in question was the marriage of horizontal
drilling and hydraulic fracturing.36

Discussion
Benefits
Hydraulic fracturing has numerous benefits, many of which are obvious. From an economic
standpoint, it has drastically lowered natural gas prices for consumers.37 Due to significantly
higher production of natural gas as a result of the shale gas boom, hydraulic fracturing has
caused natural gas prices to drop 47 percent compared to what the price would have been
prior to the fracking revolution in 2013.38 This translates to an annual nationwide decrease of
$13 billion in gas bills, and an average of $200 for gas-consuming households.39 The
economic gains are also distributed fairly consistently throughout the country.40
Furthermore, hydraulic fracturing and the industry behind it is a large contributor to
employment in the United States.41 A 2012 study conducted by IHS Global Insight showed
that the industry supported 1.7 million jobs that year.42 They were further classified into:
360,000 direct jobs, 537,000 jobs in supplying industries and more than 850,000 jobs

outside the industry.43 The report also estimated that this figure will reach 3.5 million by
2035, and that many of these employees would had otherwise been unemployed.44
Politically, increased productions of oil and natural gas have reduced energy dependence on
foreign countries, some of which are extremely volatile.45 So much so, the U.S. Department
of Energy forecasted in 2015 that the United States could be energy independent by 2019.46
However, this is an optimistic timeline that is dependent on a steep increase in the price of
oil.47 Still, progress has been nothing short of encouraging, as evidenced by the U.S.
surpassing Saudi Arabia as the worlds biggest oil producer.48
Trade-Offs
Most adverse consequences of hydraulic fracturing are environmentally-based. One of the
most discussed risks is water pollution.49 As hydraulic fracturing requires a very large amount
of water, the amount of dangerous chemicals added is also large in absolute terms despite
only representing a small percentage (about 1%) of the total mixture.50, 51 Although the water
pumped into the well is meant to be extracted, some of it often seeps through the ground
instead. This may lead to the pollution of nearby ponds, rivers or even the sea.52
Additionally, even the water that is successfully extracted and not recycled must be treated
and disposed safely, because it is toxic, containing fracking chemicals, high concentrations
of salt, and sometimes radioactive materials like radium and uranium. Heavy metals from the
shale are of concern too: produced water will contain lead, arsenic, barium, and strontium for
example.53 If not done properly, such as the case with reported spills from failed retention
ponds or botched transfers to trucks, then the water becomes a hazard to its surroundings.54
Moreover, hydraulic fracturing may deplete the water supply of drought-prone areas in the
country.55 Given that there is over 500,000 active natural gas wells in the United States, and
that each fracturing job requires an average of 4 million gallons of water, a lot of water is

needed to maintain operations.56, 57 Inevitably, this water is pumped from streams or rivers
and trucked to the site, bought from municipal water sources, or is reused from other fracking
operations.58 Needless to say, this takes a toll on the water supply, and may lead to dry wells
or degraded fish habitat.59
Finally, the process of hydraulic fracturing can release carcinogenic chemicals into the air
such as benzene or methane.60 This occurs right after the gas has been tapped but before
actual production happens, as it is not caught during this interval.61 Hence, the gas is
discharged into the air that humans and animals breathe.62

Conclusions
After analyzing the benefits and trade-offs of hydraulic fracturing, I reaffirm that it should not
only be commonly accepted by modern American society, but also aggressively promoted.
While there are certainly real concerns about its effects on the environment, they are
necessary sacrifices for a necessary evil.
Hydraulic fracturing has come a long way since its wildcatter origins in the 19th
century, and I believe that it will continue to be an integral part of the U.S. energy equation as
energy independence is finally within touching distance. The only question then, is if the
country and its people will accelerate or sputter toward the finish line.

1 Brantley, Susan L., and Anna Meyendorff. "The Facts on Fracking." The New York Times.
The New York Times, 13 Mar. 2013. Web. 05 May 2016.
2 Hirji, Zahra, and Lisa Song. "Map: The Fracking Boom, State by State." InsideClimate
News. David Sassoon, 28 Apr. 2016. Web. 05 May 2016.
3 Lallanilla, Marc. "Facts About Fracking." LiveScience. TechMedia Network, 23 Jan. 2015.
Web. 05 May 2016.
4 Ibid
5 "Shooters A Fracking History." American Oil & Gas Historical Society. Independent
Petroleum Association of America, n.d. Web. 06 May 2016.
6 Ibid
7 Ibid
8 Ibid
9 Ibid
10 MacRae, Michael. "Fracking: A Look Back." American Society of Mechanical Engineers.
American Society of Mechanical Engineers, Dec. 2012. Web. 06 May 2016.
11 Ibid
12 Ibid
13 Ibid
14 Ibid
15 Ibid 5
16 Ibid
17 Ibid
18 Ibid
19 Ibid
20 Ibid

21 Ibid
22 Ibid
23 Ibid
24 Ibid
25 Ibid
26 Manfreda, John. "The Real History Of Fracking." OilPrice.com. James Stafford, 13 Apr.
2015. Web. 07 May 2016.
27 Ibid
28 Ibid
29 Ibid
30 Ibid 5
31 Ibid
32 Ibid
33 Ibid
34 Ibid
35 "Gas Works." Editorial. Economist 14 July 2012: n. pag. The Economist. The Economist
Newspaper, 14 July 2012. Web. 07 May 2016.
36 Ibid 26
37 Dews, Fred. "The Economic Benefits of Fracking." The Brookings Institution. The
Brookings Institution, 23 Mar. 2015. Web. 07 May 2016.
38 Ibid
39 Ibid
40 Ibid
41 Efstathiou, Jim, Jr. "Fracking Will Support 1.7 Million Jobs, Study Shows."
Bloomberg.com. Bloomberg, 23 Oct. 2012. Web. 07 May 2016.

42 Ibid
43 Ibid
44 Ibid
45 Isidore, Chris. "U.S. Could Be Energy Independent within Four Years." CNNMoney. Cable
News Network, 15 Apr. 2015. Web. 07 May 2016.
46 Ibid
47 Ibid
48 Ibid
49 Kukreja, Rinkesh. "Benefits and Dangers of Fracking." Conserve Energy Future. N.p., 03
Aug. 2015. Web. 07 May 2016.
50 Ibid
51 Beaudry, Frederic. "8 Environmental Costs (+2 Benefits!) of Fracking for Natural Gas."
About.com News & Issues. IAC, 29 Sept. 2015. Web. 07 May 2016.
52 Ibid 49
53 Ibid 51
54 Ibid
55 Ibid 49
56 Ibid
57 Ibid 51
58 Ibid
59 Ibid
60 Ibid 49
61 Ibid
62 Ibid