00:00:05.720 natural gas is a fossil fuel formed from 00:00:08.48000:00:08.490 when layers of buried plants and animals 00:00:10.31000:00:10.320 are exposed to intense heat and pressure 00:00:12.04900:00:12.059 over thousands of years this natural gas 00:00:14.99000:00:15.000 is odorless and invisible and it burns 00:00:17.42000:00:17.430 cleaner than coal and oil 00:00:22.12000:00:22.130 natural gas is used for fuel and 00:00:24.56000:00:24.570 vehicles chemical feedstock in the 00:00:27.23000:00:27.240 manufacture of plastics and other 00:00:28.70000:00:28.710 organic chemicals it is used in homes 00:00:31.31000:00:31.320 and communities for space heating water 00:00:33.77000:00:33.780 heating and electricity as well at the 00:00:38.03000:00:38.040 site of natural gas recovery a vertical 00:00:40.28000:00:40.290 well is drilled approximately 6,000 feet 00:00:42.11000:00:42.120 straight down into the ground until the 00:00:43.72900:00:43.739 shale is reached while drilling the well 00:00:47.33000:00:47.340 the drill is kept cool and lubricated by 00:00:49.36900:00:49.379 pumping a pressurized mud solution down 00:00:51.41000:00:51.420 through the drilling pipe through the 00:00:52.82000:00:52.830 drill head and out of the three jets 00:00:54.44000:00:54.450 this removes the cuttings up and out of 00:00:57.59000:00:57.600 the well once the drill locates the 00:01:01.16000:01:01.170 shale the drill changes direction and 00:01:03.13900:01:03.149 the hole is drilled horizontally 00:01:04.63900:01:04.649 approximately 1000 to 3000 feet into the 00:01:07.70000:01:07.710 ship once trailing is complete the mud 00:01:09.83000:01:09.840 solution and cuttings are sucked out of 00:01:11.93000:01:11.940 the hole and the drill is removed 00:01:14.72000:01:14.730 the steel casing is then fed the entire 00:01:17.36000:01:17.370 length of the well the casing is then 00:01:19.37000:01:19.380 secured in place by cement the cement is 00:01:22.25000:01:22.260 pumped under pressure to the end of the 00:01:23.78000:01:23.790 pipe so that there is no cement within 00:01:25.70000:01:25.710 the inside of the casing this is shown 00:01:27.98000:01:27.990 right here 00:01:31.77000:01:31.780 the drill is then sent down the casing 00:01:34.32000:01:34.330 where it drills through the cement and 00:01:35.76000:01:35.770 into the shale 00:01:38.71000:01:38.720 once again the mud solution and cuttings 00:01:41.14000:01:41.150 are sucked up and out of the well and 00:01:42.82000:01:42.830 the drill is removed 00:01:45.25000:01:45.260 perforated pipe gun is then sent down 00:01:47.47000:01:47.480 and out of the casing and into the newly 00:01:49.24000:01:49.250 drilled section of the well this is 00:01:51.70000:01:51.710 where explosives are then fired from the 00:01:53.80000:01:53.810 gun throughout the perforations and into 00:01:55.99000:01:56.000 the shale and fracturing fluid is then 00:01:59.14000:01:59.150 pumped from the surface facility down 00:02:01.06000:02:01.070 the tube and into the fractures the 00:02:03.46000:02:03.470 fractures crack expand and branch out 00:02:05.83000:02:05.840 allowing the natural gas to be extracted 00:02:08.17000:02:08.180 more easily in multistage fracturing a 00:02:11.92000:02:11.930 plug is installed before the entrance of 00:02:13.75000:02:13.760 the recently fractured area and the 00:02:15.73000:02:15.740 process is repeated this is where the 00:02:19.18000:02:19.190 fracturing and plugging process is 00:02:21.16000:02:21.170 repeated the entire length of the well 00:02:22.93000:02:22.940 to maximize natural gas extraction 00:02:25.03000:02:25.040 efficiency once all fractures are 00:02:29.29000:02:29.300 completed the plugs are drilled out in 00:02:30.97000:02:30.980 the natural gas is able to flow allowing 00:02:33.01000:02:33.020 for extraction the natural gas is then 00:02:35.05000:02:35.060 pumped up the well to the surface 00:02:36.52000:02:36.530 facility for processing so what's the 00:02:39.58000:02:39.590 economic benefit of natural gas natural 00:02:42.25000:02:42.260 gas is useful for a number of reasons it 00:02:44.29000:02:44.300 can be burned to produce energy you're 00:02:47.29000:02:47.300 sure by now familiar with the idea of 00:02:49.77000:02:49.780 climate change that every time we burn a 00:02:52.75000:02:52.760 fossil fuel that contains carbon we 00:02:54.52000:02:54.530 release carbon dioxide the apps 00:02:56.66000:02:56.670 that carbon data has been released over 00:03:00.17000:03:00.180 the last 100 or 200 years to an 00:03:03.47000:03:03.480 unprecedented rate by us since the 00:03:06.50000:03:06.510 Industrial Revolution burning coal to 00:03:08.63000:03:08.640 where we adopted oil to now where we 00:03:10.16000:03:10.170 have natural gas as well every time you 00:03:12.55900:03:12.569 do that you put more carbon dioxide in 00:03:14.66000:03:14.670 the apps here and we heat exacerbate the 00:03:16.19000:03:16.200 problem so on the one hand you say that 00:03:18.86000:03:18.870 carbon dioxide has a big negative afm 00:03:21.59000:03:21.600 type natural gas is big negative every 00:03:23.84000:03:23.850 time you burn natural gas to make 00:03:25.52000:03:25.530 electricity you are making this other 00:03:27.50000:03:27.510 problem worse okay so that's one thing 00:03:30.02000:03:30.030 to keep in mind so the other things we 00:03:32.93000:03:32.940 burn okay like oil or coal and 00:03:36.14000:03:36.150 particular actually put to the same 00:03:37.97000:03:37.980 amount of energy put more carving the 00:03:39.83000:03:39.840 action so you could say that eggs coal 00:03:42.53000:03:42.540 oil seem relatively expensive and it is 00:03:45.97900:03:45.989 a seemed like the effort to make it 00:03:47.47900:03:47.489 makes it let makes there's less reason 00:03:49.82000:03:49.830 to go for the effort to make a coal 00:03:51.05000:03:51.060 plant if natural gas is quite cheap okay 00:03:54.73000:03:54.740 and some people would argue that you can 00:03:56.71000:03:56.720 make whole clean but the most part coal 00:03:58.78000:03:58.790 is very dirty fuel so it produces a lot 00:04:01.23000:04:01.240 mercury emissions sulfur dioxide 00:04:04.57000:04:04.580 emissions and more carbon for the same 00:04:07.27000:04:07.280 amount of energy than natural gases so 00:04:08.86000:04:08.870 cheap natural gas would seem to be a 00:04:10.48000:04:10.490 great win on the other hand very cheap 00:04:13.81000:04:13.820 natural gas means that it's now cheaper 00:04:16.66000:04:16.670 to make electricity natural gas than to 00:04:20.41000:04:20.420 use something like solar wind those will 00:04:23.08000:04:23.090 actually produce no carbon mountain so 00:04:26.13000:04:26.140 it's kind of a funny situation cheap 00:04:28.63000:04:28.640 natural gas or abundant chap natural gas 00:04:31.95000:04:31.960 on the one hand makes things that cold 00:04:34.24000:04:34.250 kind of go away which is which is over a 00:04:37.24000:04:37.250 partial win but on the other hand it 00:04:39.34000:04:39.350 makes it even more unlikely that we're 00:04:41.83000:04:41.840 going to invest a lot in solar wind 00:04:43.42000:04:43.430 geothermal tile power that are much 00:04:46.12000:04:46.130 cleaner technologies and so in that case 00:04:48.22000:04:48.230 it's kind of dragging his back and slow 00:04:50.68000:04:50.690 us down so that's what cheap gas does it 00:04:52.66000:04:52.670 makes things it changed 00:04:55.65000:04:55.660 you 00:05:00.22000:05:00.230 Jessica Varsha and the senior research 00:05:02.45000:05:02.460 associate at the regional economic 00:05:04.07000:05:04.080 studies institute here at Towson 00:05:05.51000:05:05.520 University within the division of 00:05:07.25000:05:07.260 innovation and applied research the gist 00:05:11.62900:05:11.639 got it my first question is how does 00:05:13.93900:05:13.949 natural gas extraction benefit the US 00:05:16.82000:05:16.830 economy in your opinion how does it 00:05:19.70000:05:19.710 benefit the US economy in my opinion 00:05:21.14000:05:21.150 well I would say you know like like most 00:05:23.15000:05:23.160 things that generate employment you know 00:05:26.96000:05:26.970 it's an economic development strategy 00:05:28.90000:05:28.910 and it may you know some experts say 00:05:32.62900:05:32.639 make the United States more 00:05:35.02000:05:35.030 self-sufficient rather than having to 00:05:37.42000:05:37.430 import you know certain types of 00:05:40.87900:05:40.889 extractive resources there's always the 00:05:44.48000:05:44.490 the flip side and you know there's 00:05:45.92000:05:45.930 criticisms of that as well but I would 00:05:47.62900:05:47.639 say you know for the most part of 00:05:49.04000:05:49.050 probably creation of additional jobs and 00:05:51.62000:05:51.630 economic activity in those regions where 00:05:54.05000:05:54.060 that extraction is taking place what 00:05:57.11000:05:57.120 impact does natural gas extraction have 00:05:59.68900:05:59.699 environment sure it's a really good 00:06:01.93900:06:01.949 question and it's interesting that you 00:06:04.52000:06:04.530 ask that because you know we've been 00:06:06.05000:06:06.060 contracted by the Maryland Department 00:06:07.65900:06:07.669 environment to conduct a comprehensive 00:06:09.80000:06:09.810 economic impact study of potential 00:06:12.98000:06:12.990 drilling in the Marcellus Shale in 00:06:14.77900:06:14.789 Western Maryland and so as you probably 00:06:16.85000:06:16.860 know 00:06:18.36000:06:18.370 this type of unconventional natural gas 00:06:20.79000:06:20.800 drilling and shale formations is is 00:06:22.68000:06:22.690 fairly recent it's been taking place out 00:06:25.53000:06:25.540 west for you know probably a decade or 00:06:27.81000:06:27.820 more but on the East Coast probably less 00:06:30.84000:06:30.850 a little less than a decade with 00:06:31.95000:06:31.960 Pennsylvania being probably the poor 00:06:34.83000:06:34.840 runner and so as a result Maryland is 00:06:36.90000:06:36.910 interested in estimating with the 00:06:38.96900:06:38.979 potential economic and you know net 00:06:40.96900:06:40.979 benefits or consequences will be to the 00:06:45.45000:06:45.460 economy and as part of that we are 00:06:47.85000:06:47.860 looking at potential environment 00:06:49.20000:06:49.210 environmental impacts which often times 00:06:52.08000:06:52.090 are difficult to value so for instance 00:06:54.18000:06:54.190 we're using a contingent valuation 00:06:56.18900:06:56.199 methodology where we are using a survey 00:06:59.61000:06:59.620 to ask residents and visitors the area 00:07:03.48000:07:03.490 to elicit their willingness to pay for 00:07:07.71000:07:07.720 certain environmental values that don't 00:07:09.81000:07:09.820 necessarily have a value on the market 00:07:12.33000:07:12.340 and those things are like scenic view 00:07:13.71000:07:13.720 sheds because oftentimes the Marcellus 00:07:15.90000:07:15.910 Shale areas are are largely rural the 00:07:19.20000:07:19.210 landscape may or may not be 00:07:20.21900:07:20.229 industrialized already there might be 00:07:22.05000:07:22.060 some history of extractive industry but 00:07:24.33000:07:24.340 we are finding in a place like Western 00:07:26.27900:07:26.289 Maryland that there's a high value 00:07:27.99000:07:28.000 placed on the pristine environment the 00:07:30.57000:07:30.580 condition it's currently in so as a 00:07:33.12000:07:33.130 result we're conducting the contingent 00:07:34.77000:07:34.780 valuation analysis and we're also 00:07:36.99000:07:37.000 looking at the impact that there may be 00:07:38.73000:07:38.740 on property values before and after 00:07:41.85000:07:41.860 drilling just because there is some risk 00:07:43.98000:07:43.990 to groundwater and as a result in rural 00:07:47.07000:07:47.080 areas a lot of people are on well water 00:07:49.14000:07:49.150 as opposed to municipal water so 00:07:52.51900:07:52.529 it's really important to do your studies 00:07:54.55900:07:54.569 and get your baseline to see if there's 00:07:56.89900:07:56.909 impacts to groundwater which is 00:07:58.33900:07:58.349 perceived as the biggest risk from 00:07:59.98900:07:59.999 Marcellus Shale drilling there's some 00:08:02.32900:08:02.339 other risks associated with it that are 00:08:04.06900:08:04.079 documented some areas you know potential 00:08:07.51900:08:07.529 you know air air emissions truck truck 00:08:11.65900:08:11.669 noise and you know impacts to the roads 00:08:14.26900:08:14.279 and that sort of thing so those are 00:08:15.40900:08:15.419 things are taken to account and to see 00:08:17.35900:08:17.369 whether or not they'll actually approve 00:08:18.64900:08:18.659 to to Maryland natural gas impact on the 00:08:22.21900:08:22.229 US economy natural gas extraction 00:08:25.06900:08:25.079 creates less dependency on foreign oil 00:08:27.16900:08:27.179 because there has been thirty four 00:08:29.11900:08:29.129 hundred trillion cubic feet of natural 00:08:30.46900:08:30.479 gas found in North America shale gas 00:08:33.11000:08:33.120 production alone will create some 1.5 00:08:35.29900:08:35.309 million jobs by 2015 and 2.4 million by 00:08:38.89900:08:38.909 2035 this will bring about opportunities 00:08:41.83900:08:41.849 for investors and corporations it has 00:08:44.17900:08:44.189 contributed nearly 19 billion dollars in 00:08:47.11900:08:47.129 tax and royalty revenue at the state 00:08:48.92000:08:48.930 local and federal level in 2010 and to 00:08:51.53000:08:51.540 the next 25 years that number could 00:08:53.11900:08:53.129 exceed 933 billion dollars two states in 00:08:56.72000:08:56.730 the federal government will become a 00:08:58.49000:08:58.500 significant US export in the short term 00:09:00.79900:09:00.809 future consumer choice will be more 00:09:03.01900:09:03.029 diversified in the future allowing for 00:09:04.79000:09:04.800 gross domestic product projected to 00:09:06.59000:09:06.600 reach 118 point two billion dollars in 00:09:09.40000:09:09.410 2014 00:09:28.94000:09:28.95000:09:44.05000:09:44.06000:09:52.17000:09:52.180 to conclude the future of natural gas is 00:09:55.15000:09:55.160 encouraging and important to the US 00:09:56.68000:09:56.690 economy because it significantly reduces 00:09:58.99000:09:59.000 dependence on foreign oil from major 00:10:01.03000:10:01.040 importers to exporter's of energy 00:10:03.91000:10:03.920 as a result of the speed and scale of 00:10:06.61000:10:06.620 shale gas development a heightened 00:10:08.50000:10:08.510 awareness of natural gas as a key 00:10:10.06000:10:10.070 component of indigenous energy supply as 00:10:12.31000:10:12.320 it has emerged and the price of natural 00:10:14.17000:10:14.180 gas lowered beyond expectations this has 00:10:16.56900:10:16.579 led producers to seek new markets for 00:10:18.75900:10:18.769 natural gas such as an expanded role in 00:10:20.74000:10:20.750 exporting and transportation
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