Is it safe for the environment?
YES: Natural gas is clean – much cleaner than other fossil fuels. It emits less carbon dioxide – about 30% less than oil and 50% less than coal. This means that natural gas is part of the solution to global warming and we’re almost certain to rely more heavily on natural gas in the future in order to meet greenhouse gas targets.
Are we running out?
NO: Natural gas is very abundant in North America. In the past five years, shale reservoirs have revealed natural gas deposits that doubled previous estimated U.S. gas reserves - giving us close to a 100-year supply. Plus, new reserves are being discovered every day, increasing our resources and potential production
Is it expensive?
NO: The traditional price comparison between a barrel of oil and one thousand cubic feet of natural gas (mcf) is a ratio of 6:1 because the energy content of six mcfs of natural gas is approximately equal to one barrel of oil. Even with today's changing oil prices, natural gas remains a highly attractive alternative at its current price. Today, with its superiority as a clean fuel, natural gas provides even greater value to American consumers seeking solutions to ever-growing energy needs.
Are we dependent on other countries for it?
NO: The U.S. is dependent on foreign oil and this has led to a myth that we must be dependent on foreign natural gas as well. The fact is, much of the gas used in the U.S. comes from Canada and other North American regions. Altogether, about 99% of the natural gas we use is produced right here in North America.
What is involved with drilling?
Chesapeake is nationally known as an industry leader, using the most advanced drilling and completion technologies to ensure public and environmental safety. We seek drillsites that will minimize disruption to any neighborhood or the environment, while still producing the most for our investors. The steps to the drilling process are as follows:
First, a padsite is prepared to hold the drilling rig and related equipment.
Next, the well is drilled, completed and connected to a pipeline to transport the gas to market.
Finally, the padsite is appropriately reduced, reclaimed or landscaped to blend in with its surroundings and to meet individual city ordinances.
How long will it take?
From the time the pad preparation begins for a single well, the entire process of setting up the rig, drilling, fracture stimulating and installing operational equipment takes two to eight weeks.* Even with multiple-well padsites, the drilling and completion process frequently takes less time than building a house or retail store in the same area.
During the approximately three weeks of drilling, operations run continuously 24 hours a day until completed. Hydraulic fracturing may take three or four additional days and is usually restricted to daylight hours.
*The duration of drilling and production time will vary from well to well, depending on drilling depth, location, formation and numerous other variables associated with exploration and production.
How do pipelines work?
Pipelines are necessary to get the natural gas from the wellhead to the market. While the diameter of the pipeline may vary with its function, natural gas pipelines are all similar to normal utility pipelines that currently deliver gas to your home or office, and thus pose no additional safety issues. New pipelines may be installed through traditional open trenching, boring underneath the ground or a combination of the two.
What are royalties?
A royalty is a recurring payment made by the operator to the person owning the mineral rights to the natural gas a well produces. The amount of the payment is based on a percentage of a well’s production and on the price the operating company is paid for the natural gas. Royalty payments start after natural gas is produced and sold, and these payments continue for the life of the well – which could be 20 or more years.