# New Fracking Well Leases on State Land



## concrete519

worknfish said:


> DEQ Mineral Rights auctions for 122,000 acres of state land in the Northern LP took place a few weeks ago. Land in 22 counties was part. If what I read is correct, 2 companies paid an average of 40.00 / acre for the rights. New methods of Fracking are creating a stir on other parts of the country such as the Marcellus Shale are in PA. There have been some accidents resulting in fish kills and other damage with discharges. There is a lot of Shale Gas in the LP Michigan area, and mining it would probably create jobs, but what about the affect it will have on the public land and it's use? One reason it has become so popular is because of the new chemicals formulated to maximize the gas release. Natural Gas prices are actually at historic lows right now.
> Drill pads can be as close as every 40 acres. Land that we could only walk on will now be cleared, have retaining ponds, tanks, large pumps, drill rigs,... and will probably be fenced off. It can take up to 5 or 6 million gallons of water per well to fracture the shale and pump the chemicals into the well that help release the gas. Lots of Trucks will be traveling the area hauling water and waste. I am against it but wanted to see how many were aware of it and what others thought about it. There is a petition circulating to have a ballot proposal in Michigan on the Fracking process thin November. Just so you know where I am at, I am also circulating the petition for signing. Other than that I am just someone that has a high regard for the lands we have available. I use the resources a lot, fishing and hunting. I would like to see it available for future generations and kept intact.



You very uninformed about drilling and fracking in particular. Because of horazantal drilling and fracking we companies can extract oil and gas with a much smaller foot print. Oil companies can now drill from one pad and extract oil and gas from 640-1280 acres. Most of the 122,000 acres that were auctioned off can not be drilled on. In order for oil companies to extract oil and gas from the state land they have to drill from private land that boarders the state land. Your worry about losing hunting land to oil wells that are fenced in and roads that are put into service them tells me you did not do much research before you started posting here. I suggest you become informed and if you still are anti-fracking give factual reasons for apposing it. You spread lies about something you know nothing about as evident by your claims the state land will be cleared and well will be drilled on 40 acre spacing. Get the facts so you don't spread lies.



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## worknfish

Please post a link where I can read evidence the Drilling pads will not be allowed on State Land. The longest horizontal I have read about is 1.5 Miles, which would make make state land mineral rights worthless except for within .75 miles of the border, right?
The whole reason for this forum was to get peoples response to the activity on State land. The people of Michigan own that, as well as the aquifers, rivers and lakes where they will get around 5 - 8 million gallons per well. I think it is good for people to think about that, as well as how many wells will we have, and where are the injection wells where the waste, "producer water" are dumped located?
You say I spread lies, If I am wrong about something it is not my intention to do so. I never claimed to be an expert, but I do have a right to an opinion. Another poster says they pump "detergent" down the wells. Is that accurate?
Here is a link to the Michigan DEQ site where MSDS chemical make up sheets are posted.

http://www.michigan.gov/deq/0,4561,7-135-3311_4111_4231-262172--,00.html 

Detergent?, really?

I think we are talking about something that will be a hot debate in the future, so no matter what if we all get more educated it would be good.
Also there are the economics, we need the money and jobs I know. There may be a lot of wealth down there. Whats the rush to sell it so fast? Is energy ever going out of style?
Whenever economics and the environment meet there will be disagreements. Personalities vary a great deal. Some people would put a very low value on public lands and let anyone "have their way" with it for some money, others value the land more and care about what happens there that changes it.
I really appreciate the fact that the DEQ is requiring the companies to provide this MSDS as the Federal government does not require it, and in other States it is secret. They are also placing permit requirements on water useage, but if Federal Law allows unlimited use will the State requirements stand up in court?
The practice has changed from what it was years ago. My intention was to see what Sportsmen thought about the activity on State land. There have been a lot of visitors to the forum, and only a few voted. The vote speaks for itself however and I respect that. If the website thinks this forum has no use, they can stop it any time but I think it has use.


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## Lumberman

There are doing this all over in the Dakotas can someone please post a link to a major disaster that has happened? I can't seem to find anything but good news from the people that live there. Like canceling all property taxes. 

I would like to have an opinion on this but one argument I never take at face value are the environment scare tactics.

About 90% of it is nonsense. 

You can't post people's opinion. People can say anything. This kind of drilling is happening all over the place so show me the destruction and I will sign the petition in a heart beat. Otherwise drill baby drill. This state desperately needs it.


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## worknfish

Here is one.

http://www.popularmechanics.com/sci...nia-fracking-accident-what-went-wrong-5598621


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## worknfish

About 40 incidents listed here, 

http://sharonspringsspa.com/accidents.html


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## Lumberman

Like always doom and gloom and then "So far local emergency officials say there's no evidence of harm to the area's fish and vegetation. "

And that was over a year ago?? 

Please post a link to a major disaster.


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## worknfish

http://stateimpact.npr.org/pennsylv...contaminating-water-wells-in-bradford-county/


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## worknfish

Pennsylvania, 2200 active wells , 1927 violations, 3.5 million in fines so far.
Interactive map here:
http://stateimpact.npr.org/pennsylvania/drilling/


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## worknfish

June 21 , 2012 Chesapeake fined 1.6 million for well contamination,
link here:

http://stateimpact.npr.org/pennsylv...contaminating-water-wells-in-bradford-county/


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## Lumberman

Not a single one of them are disasters. Not one poising or death or contamination. The with contaminated well water is a little scary at first bit as you read the article it's says methane is actually common in the water in that area. 

All this stuff is far from the disasters eluded to.


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## B.Chunks

Anyone get their royalty checks this year? Got mine 2 weeks ago from Chevron. A whole $7.65 per acre!!! Whoo-hooo! Big money now! :lol:

I vote yes for limited. Even though there ARE documented cases of contamination, by releasing existing contaminants like methane, that wouldn't have been released without the fracking. Modern fracking is much safer, but back when they did this area, they used all kinds of nasty fluids, including waste cooling fluids and such, and now banned drilling compounds. Lots of people in this area get high readings for some of those drilling compounds if their wells sit unused for a while.


If they're fracking anywhere near you and offer you a royalty check, take it. They're taking the gas under your property anyways. There is no way for them to control who's property that fracture and extraction extend to. I'd never let them drill on my property, but since they're taking my gas anyways, I might as well take the money for it. Though it's barely enough to pay for the gas to deposit the check.


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## concrete519

worknfish said:


> Please post a link where I can read evidence the Drilling pads will not be allowed on State Land. The longest horizontal I have read about is 1.5 Miles, which would make make state land mineral rights worthless except for within .75 miles of the border, right?
> 
> Read the last paragraph
> 
> By Matt Knaack, Kyle Shutz and Scott Kaplan
> Special to MiBiz from the West Michigan Environmental Action Council
> 
> YANKEE SPRINGS TOWNSHIP &mdash; On May 8, the mineral rights for 23,419 acres of land in Barry County were leased to two private oil and gas companies by the Michigan Department of Natural Resources. The deal was part of a larger, statewide auction that offered up drilling rights to more than 100,000 acres in 23 different counties throughout Michigan.
> 
> The auction netted the state more than $1.5 million for the 211 parcels in Barry County at an average of $67.20 per acre.
> 
> Many of these parcels are part of the Yankee Springs Recreation Area and the Barry County State Game Area near Gun Lake, although it is still unclear as to how the advent of oil and gas companies in the region may affect the local business and tourism industries.
> 
> Valerie Byrnes, president of the Barry County Chamber of Commerce who also oversees the Barry County Tourism Council, said that there has been no response from local businesses about last week&rsquo;s auction.
> 
> &ldquo;Businesses have not responded (to the chamber) one way or the other,&rdquo; she said.
> 
> But this hasn&rsquo;t stopped some business owners from speculating about what might happen if oil companies do start drilling.
> 
> Mike Powers, owner of Bay Pointe Inn, a resort located on Gun Lake, said he believes that drilling will not affect tourism like a wind farm might, particularly from a visual standpoint. He expects that the drilling will occur away from his resort.
> 
> &ldquo;As long as (drilling is) safe for the environment and reduces energy costs and enhances job creation, I&rsquo;m in support of it,&rdquo; said Powers.
> 
> Oil and gas companies, after bidding on leases for the mineral rights, are preparing to begin exploration of the geological area. According to Hal Fitch, state geologist and director of the Michigan Department of Environmental Quality Office of Geological Survey, exploration near Yankee Springs may target the Trenton-Black River formation, a natural gas reservoir that stretches from the state of New York west through Michigan and as far south as West Virginia.
> 
> Protests led by residents of Barry County occurred in Lansing during the auction of these leasing rights. Many residents of the county are worried about the potential implications that hydraulic fracturing &ndash; commonly known as fracking &ndash; and horizontal drilling could have on the environment with some concerns pertaining specifically to the recreational area.
> 
> Hydraulic fracturing injects a mixture of water, chemicals and sand into man-made wells that extend below the water table to force apart shale rock, allowing for the easy extraction of oil and natural gas. Fracking has come under increasing scrutiny from Michigan environmental groups because of health risks and environmental concerns widely associated with the process.
> 
> Fitch reported that any drilling that occurs near Yankee Springs may not necessitate fracking and horizontal drilling. Instead, companies might select more traditional methods. However, this seems unlikely given that the leased parcels are all designated as non-development land. This means that while companies have the mineral rights to the land underneath the recreational area, they are not able to drill directly on site.
> 
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## concrete519

worknfish said:


> About 40 incidents listed here,
> 
> http://sharonspringsspa.com/accidents.html


I had a 5 gallon gas container tip over in the back of my truck and spill out driving through caledonia, better put a skull and bones over Caledonia. I left it in a wake of destruction. It meets the same criteria you use for incidents in Penn. There is no such thing as a perfect energy source, but incidents are few and far in between, and they are just as likely to occur in Conventional drilling. Do you suggest not drilling because of a Minor spill here and there. If so let me know when you get rid of your car and shut the electric off to your house. I'm for safe and regulated drilling and fracking. It's the responsible thing to do. It's creating 10's of thousands of jobs and it's keeping money we spend on energy here in the USA instead of sending are money to the middle east.



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## concrete519

A new national study asserts that the shale-gas revolution is having deep, sustained economic benefits by creating jobs, reducing consumer costs, and stimulating growth.

The industry-sponsored study by IHS Global Insight found that natural gas production in formations such as Pennsylvania&rsquo;s Marcellus Shale supported more than 600,000 jobs nationwide in 2010 and is projected to grow to nearly 870,000 by 2015. The embargoed report will be released Tuesday.

The study says that the impact of shale gas is felt far beyond the regions where drilling takes place. It says that savings from lower gas and electricity prices, as well as lower prices for other consumer purchases, equate to $926 in additional disposible income per American household in 2012. It estimates that number will increase to more than $2,000 per year in 2035.

&ldquo;The cost of goods and services in the broader economy is reduced by the lower cost of gas and electricity,&rdquo; said John Larson, an IHS vice president and the lead author of the study. He said that lower natural gas prices are analogous to reducing the price of a barrel of oil.

Larson said the rise of shale gas production in recent years &ldquo;is one the most significant energy developments in recent decades.&rdquo;

The report, commissioned by America&rsquo;s Natural Gas Alliance, will no doubt become ammunition in the industry&rsquo;s battle to fend off efforts to ban or limit shale-gas development. The nation&rsquo;s rapid shift to shale gas has raised the ire of anti-drilling activists who regard it as a competitive threat to the growth of renewable power sources.

Activists have decried other studies of the economic benefits of shale gas for failing to take into account the environmental costs of drilling, which relies upon hydraulic fracturing &ndash; blasting the deep rock formations with high-pressure injections of fluid to release the trapped natural gas.

Larson, in an interview Monday, said his group did not attempt to quantify environmental costs because that is &ldquo;not in our area of expertise.&rdquo;

The IHS economic study, which the firm called &ldquo;the most definitive study to date&rdquo; tracking the long-term economic impact of shale gas, reached similiar conclusions nationally as a Penn State University study in July reached on a statewide basis.

The IHS study over the 2010-2035 period concludes that the contribution of shale gas to gross domestic product was nearly $77 billion in 2010, which will increase to $118 billion by 2015 and will triple to $231 billion in 2035.

Shale gas now accounts for 34 percent of domestic natural-gas production and is expected to account for 60 percent by 2035. It has emerged as a major energy source during a time when the other sectors have foundered.

&ldquo;This industry is really bucking some broader economic trends,&rdquo; Larson said.

IHS says that about a quarter of the 600,000 jobs attributed to shale gas in 2010 were directly employed in the industry. An additional 32 percent were &ldquo;indirect&rdquo; jobs supplying the industry. About 43 percent were jobs &ldquo;induced&rdquo; from further spending throughout the U.S. economy.

The study estimates that the industry will contibute 1.6 million jobs in 2035, underscoring an expected sustained rate of growth because the industry needs to constantly drill new wells to replace production that gradually declines from old wells.

One of the study&rsquo;s critical findings is that natural-gas supplies will remain sufficiently abundant to maintain a stable price.

It projects that natural gas, which averaged $6.73 per thousand cubic feet (mcf) from 2000-2008, will cost an average of $4.79 through 2035. Gas currently trades at $3.50 mcf and local utilities have steadily decreased prices to retail customers in the last three years.

In the absence of shale gas, the price of natural gas would cost $10 to $12, and domestic supplies would require supplemental imports from overseas.

&ldquo;Lower prices today provide a significant near-term boost to economic output and employment and are an important foundation for an increase in domestic manufacturing,&rdquo; the study reports.

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## concrete519

One more reason to support Fracking

"Also, OPEC was forced to confront the major threat presented by the development of shale and other 'conventional' oil," Macalister wrote in the Guardian newspaper of London.

The global energy industry has been shaken by the slump in Iranian exports because of ever-tightening economic sanctions imposed by the United States and the European Union to force Tehran to abandon its contentious nuclear program.

Concerns have heightened over Iranian threats to close the strategic Strait of Hormuz, gateway to the Persian Gulf through which one-fifth of the world's oil supplies pass.

But, says former U.S. Treasury Deputy Secretary Roger Altman, "the threat of disruptions is actually diminishing, given new finds of unconventional oil and gas in the Western Hemisphere.

"These discoveries will reduce price and supply volatility. They will also reset and profoundly improve international relations," he wrote in the Financial Times.

"The days of OPEC, the oil producers' cartel, are numbered. Unstable oil states, from Iraq to Venezuela, will be marginalized."

Advanced technology has given the United States, Canada and other countries dependent on oil flows from the highly volatile Middle East new sources of supply from deposits once considered inaccessible.

"As a result the United States now has a 100-year supply of natural gas. On the oil side, production in the U.S., Canada, Brazil and possibly Mexico is projected to grow sharply," Altman observed.

"Oil production could match consumption across the Western world for the first time since 1952.

"This will provide for more stable oil and gas markets &hellip; This supply resolution will also realign the global political order for the better," Altman wrote.

"The geopolitical centrality of the Middle East will wane. That's because the power and the relevance of its oil producers have peaked and are heading down.


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## concrete519

1 more reason to support fracking

Detroit free press

The Coming Oil-Shale Revolution?
November 28, 2011 By Aymenn Jawad Al-Tamimi Leave a Comment




The chief executive of Saudi Arabia&rsquo;s state-owned oil company &mdash; Aramco &mdash; has admitted that the development of large oil shale reserves in North America looks set to shift the monopoly over global energy supplies increasingly away from the Middle East.
To preface, when it comes to global petroleum supplies, a distinction is drawn between &ldquo;conventional&rdquo; and &ldquo;unconventional&rdquo; oil reserves. The former are still in abundance in oil fields throughout the Middle East, and petroleum is produced from them simply by drilling at oil wells. Unconventional reserves include tar sands and oil shale: the latter is a form of sedimentary rock that must first be decomposed at high temperatures before crude oil can be obtained for refinement.
In terms of reserves, it is estimated that conventional sources across the world can yield around 1.2 trillion barrels, while in the United States alone, anywhere between 500 billion and 1.1 trillion barrels are thought to be recoverable from oil shale. An immediately astonishing observation to draw is the low-end of the estimates for U.S. oil shale, which is still around twice as large as Saudi Arabia&rsquo;s total reserves.
What makes this issue particularly relevant now is the emergence of reports on a potential breakthrough in oil shale extraction technology. Traditionally, extraction of oil shale has required the use of a method known as &ldquo;fracking,&rdquo; or &ldquo;hydraulic fracturing&rdquo; (to use the more technical term).
Hydraulic fracturing, however, has raised concerns because of issues such as contamination of groundwater and air pollution, besides the large amounts of water required for the process. The high water usage is particularly problematic in the Southwestern states that contain most of the United States&rsquo; oil shale reserves and are under water stress owing to drought in recent years.
Nonetheless, companies such as Chevron are now looking into the use of propane gel rather than water. Not only does this method require no water, but it also makes more sense from a technical point of view. As one former Halliburton Co engineer pointed out, &ldquo;It&rsquo;s an ideal liquid to crack the rock open with because it does not damage the rock like water would.&rdquo; Accordingly, this pioneering process, despite some worries over propane gel&rsquo;s flammability, is increasingly being given the green light by regulators in Canada and the United States.
In light of these developments, the chief executive of Saudi Arabia&rsquo;s state-owned oil company- Aramco- has come to acknowledge that the development of large oil shale reserves in North America looks set to shift the monopoly over global energy supplies increasingly away from the Middle East. Indeed, Saudi Arabia has now halted a $100 billion expansion program that aims to expand Saudi output to 15 million barrels per day (bpd) by 2020.

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## concrete519

Gotta love fracking


U.S. Shale Revolution Spreading to Oil From Gas, Mulva Says
By Edward Klump 
January 18, 2012 11:00 AM EST
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The U.S. is poised for a revival of domestic oil production that may mirror a surge in natural-gas output from shale formations, ConocoPhillips (COP) Chief Executive Officer Jim Mulva said.
&ldquo;The revolution has spread to domestic oil production,&rdquo; Mulva said in remarks prepared for a speech at Rice University in Houston today. &ldquo;And it may track the path it followed with natural gas. We just don&rsquo;t know yet. But it looks promising.&rdquo;
During the last three years, the U.S. has reversed a decline in its oil resources, which peaked in 1970 then dropped about 50 percent by 2008, Mulva said. The industry is returning to older producing areas to find petroleum liquids in shale and other so-called tight-rock formations, he said.
Energy consultants&rsquo; estimates show such fields may produce 3 million barrels of oil a day by 2025, or five times their current production, Mulva said. Together, the U.S. and Canada may have at least 100 billion barrels of recoverable resources from tight-oil basins, he said.
A combination of hydraulic fracturing and horizontal drilling led to the increase in production from shale, Mulva said. Fracking, as fracturing is known, involves high-pressure injections of water, sand and chemicals underground to crack rock so oil and gas can flow.
The U.S. Energy Information Administration estimates the U.S. now has about 2,700 trillion cubic feet of recoverable gas, enough supplies to last more than a century, Mulva said. Now those same techniques are unlocking new oil supplies in &ldquo;the biggest oil-industry breakthrough since the 1940s, when we first moved offshore into the Gulf of Mexico.&rdquo;
Oil-Rich Reservoirs
ConocoPhillips has operations in such oil-rich reservoirs as the Eagle Ford Shale of Texas and the Bakken in North Dakota and Montana, Mulva said. The company continues to add acreage in other areas, he said.
Government must play &ldquo;a constructive role&rdquo; if the energy industry is to reach the full potential of North American resources, Mulva said. A balance must be struck between energy needs and protection of the environment and climate, he said.
Mulva cited TransCanada Corp. (TRP)&rsquo;s proposed Keystone XL pipeline, planned to carry crude from Canada&rsquo;s oil sands to U.S. Gulf Coast refineries, as an example of a project that has been delayed by regulation. Canadian oil sands could be used to replace heavy crude sent to U.S. refineries from nations such as Venezuela, Mulva said.
The U.S. could use its expanding oil resources to cut its dependence on overseas imports, he said.
&ldquo;An energy bonanza lies within our reach -- if we only take full advantage of the unconventional resources right beneath our feet,&rdquo; he said.
To contact the reporter on this story: Edward Klump in Houston at [email protected]
To contact the editor responsible for this story: Susan Warren at [email protected]

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## concrete519

If you want to know how fracking is reviving the manufacturing sector read this article

http://www.fellonmccord.com/Downloads/The Shale Revolution.pdf


Sent from my iPhone

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## concrete519

Here is how Russia feels about it

*UPDATE III* Shale Puts Russia, Saudis on the Defensive 

UPDATE III (4/19/2012, 9:34am ET): An article from Penn Energy&rsquo;s Energy and Capital team has highlighted the changing dynamic of global oil and natural gas production, which also notes that state-run petroleum companies are showing increased interest in North American shale plays, specifically the technologies that have facilitated access to America&rsquo;s immense, previously inaccessible reserves: hydraulic fracturing and horizontal drilling. Interestingly enough, one of the countries now looking at this technology is none other than Russia. It seems that when it comes to shale, Mr. Putin has moved from critical, to envious, to practical acceptance.

UPDATE II (4/12/2012, 12:25pm ET): Mere months after former and future Russian President Vladimir Putin publicly tried to undermine the safety of hydraulic fracturing and shale development as a whole, he has now changed his tune. As highlighted by Platts, UPI, and Bloomberg, Putin now acknowledges the game-changing nature of America&rsquo;s development of natural gas from shale. More specifically, Putin believes that hydraulic fracturing and horizontal drilling in the United States &ldquo;can seriously reshape the structure of hydrocarbons markets.&rdquo; He also said that shale development will provide tough competition for his country as one of many &ldquo;external shocks&rdquo; to which Russia will have to respond, adding that this undermining of Russia&rsquo;s hegemony in the global gas market is part of an &ldquo;era of turbulence.&rdquo;

It&rsquo;s clear that shale development in the United States is altering the global energy space for the better, and even anti-shale heads of state &mdash; who, it&rsquo;s worth noting, have deep financial interests in trying to upend such development &mdash; can no longer ignore it.

UPDATE (12/16/2011, 4:19pm ET): If there&rsquo;s one thing autocrats don&rsquo;t like, it&rsquo;s competition, and the Wall Street Journal reports that Vladimir Putin is, indeed, feeling the pinch with respect to Russia&rsquo;s (declining) energy hegemony. Apparently the Prime Minister is trying to learn all he can about hydraulic fracturing, the technology that is helping to loosen Russia&rsquo;s grip on global natural gas markets, presumably so he can better campaign against it (though if he does take the time to learn the facts, he&rsquo;ll discover that its alleged environmental impacts are dramatically overstated). After asking &ldquo;What&rsquo;s on Vladimir Putin&rsquo;s mind?&rdquo; the Journal gave, among others, this likely answer:

[P]erhaps he is worried about the impact of surging shale gas supply will have on state-owned gas giant Gazprom. It makes much of its revenues exporting gas to Europe, at prices linked to oil prices. If the U.S. were able to export gas to Europe, its market dominance could be eroded; Cheniere Energy recently signed a 20-year deal to supply gas to the U.K.&rsquo;s BG Group. Europe, too, could eventually produce its own shale gas, particularly in Poland. The extra competition isn&rsquo;t a great prospect for Gazprom &ndash; or Russian politicians, who rely on oil and gas tax revenues to balance the books.



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## concrete519

Google oil shale economic impacts for more exciting news. Oil shale is going to bring are economy out of the slump we are in. The only thing that can stop it from happening is the tree huggers. Pick your side I choose energy independence and fracking is key to this happening 


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