oil industry

Randall Schaetzl, MSU

News of a decline might sound surprising since there has been so much excitement and controversy over horizontal hydraulic fracturing, or "fracking," in recent years.

But not many high-volume, horizontal wells were actually drilled since 2010, and the company that led the recent fracking boom has left the state.

That leaves the industry and its watchdogs wondering where new action will come from.

Mark Brush / Michigan Radio

A lot of us are curious about the oil pipeline running through the Straits of Mackinac.

Michigan Radio's M I Curious is a news experiment where we investigate questions submitted by the public about our state and its people.

As part of our M I Curious project, Justin Cross asked Michigan Radio this question:

What is the status of the aged Enbridge oil pipeline running through Lake Michigan at the Straits of Mackinac?  

Julie Grant / The Allegheny Front

Wastewater from fracked wells that produce gas and oil in Pennsylvania and West Virginia is coming to Ohio. 

Julie Grant, a reporter who has been researching this issue, says Ohio has become a go-to place for the nation's fracking waste disposal. Grant reports on environmental issues in Ohio and Pennsylvania for the program The Allegheny Front

"Energy companies point to the geology. They say the layers of underground rock that are better for wastewater storage are easier to access in Ohio, than in Pennsylvania’s hilly Appalachian basin," Grant says.

Pennsylvania is one of the top natural gas producers in the nation, but it’s more difficult to permit a disposal well there. Grant says there are only a few waste disposal wells in the whole state.

Ohio also has industry-friendly regulations. Oil and gas companies need permits to dispose of fracking waste underground.

In other states around the region, including Michigan and Pennsylvania, the Environmental Protection Agency has authority over those permits -- and the process can take a year or more. But in Ohio, the same permits can be issued in a matter of months. That's because Ohio has primacy over injection wells, so the state, not the federal government, issues the permits and the process is often faster.

World Resources Institute

State officials want to hear what you think about fracking.

The Michigan Department of Environmental Quality wants to update the state’s rules on hydraulic fracturing. The DEQ is holding two public hearings this week on the proposed changes.

Hal Fitch is the chief of the DEQ’s Office of Oil, Gas and Minerals.

“Starting about 2008, we started hearing increased public concerns. So we met with the environmental community, we met with the public in over 200 different forums and heard those concerns and formulated these rules based on what we were hearing,” he says.

michigan.gov

The Michigan Court of Appeals says state regulators were correct to deny a drilling permit to developers who want to put oil wells on private land surrounded by a state forest.

The developers said the state should either grant the permit, or compensate them for their lost investment. They want to put 11 wells on private property surrounded by the Pigeon River Country State Forest in northern lower Michigan. The state Department of Environmental Quality said the wells were either in designated no-drill zones, or were too close to water.

“The takeaway from this decision is that you can’t drill an oil well just any old place in the state of Michigan,” said DEQ spokesman Brad Wurful. “There are some areas that are off limits.”

And the decision says since that was clear up front, the developers don’t get a payback from the state.

“What the court said was, everybody knew this beforehand going into this and it was clear,” Wurful said. “Nobody got surprised here. They simply wanted to do something that was not allowed and the court upheld that. We’re pretty pleased with the decision, obviously.”

The developers can file a new permit request with plans to use different technology, like directional drilling. They can also take their case to the Michigan Supreme Court.

Randy Knauf / Creative Commons

A new state law encourages oil companies to go back to oil wells that are considered tapped out and extract more oil.

So-called “enhanced recovery projects” are relatively new in Michigan. In fact, there’s only one company that’s using the technique.

The process recycles carbon dioxide that would otherwise be vented into the atmosphere and pumps it down into existing oil wells. The pressure forces more oil to the surface. Proponents say the process makes better use of existing oil wells because the oil couldn’t be recovered without the technique.

ipaa.org

For years, Michigan businesses and consumers have enjoyed extremely low natural gas prices.

But that may be changing. And it’s a case of basic economics. 

Natural gas is selling for about $4 per thousand cubic feet in the U.S.

In Europe, the price is closer to $10 per thousand cubic feet. In Japan, the price is hovering over $15.

So it should be no surprise that the energy industry is pushing hard for more exports of natural gas.       

(courtesy of the National Hurricane Center)

Hurricane Irene should not have an impact on Michigan gas prices, according to an industry analyst.  The hurricane is expected to make landfall along the North Carolina coast tomorrow, before bearing down on the Jersey shore, New York and New England Sunday.