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Hydraulic fracturing in Michigan lowers fuel costs and could create jobs, decreasing dependence on foreign energy
- Jeff Cook talks with Kirk Heinze
MSU graduate Jeff Cook, president of Southwestern Oil Company of Greenville, Mich. and board member of Michigan Oil and Gas Association, discusses Michigan’s natural gas production resulting controversial hydraulic fracturing with Kirk Heinze on Greening of the Great Lakes.
“Energy has always been important,” says Cook, “the reason it’s a major topic right now is we’re really going through a renaissance in energy production.” Five years ago, he says, estimates suggested there was only a 25-year supply of natural gas remaining. However, with the discovery of natural gas production from shale rock, the estimate is now at over 100 years supply of natural gas, says Cook. Not long ago,
natural gas prices were very high, he says, but today’s prices are at 20 percent of the 2008 prices thanks to the discovery of natural gas within underground shale rock formations.
“(Michigan sits) on a couple of very large shale formations,” he says. In the late 80s and early 90s, these shale formations were accessed into using the now-controversial method of hydraulic fracturing, he says, but there have been no negative impacts from the process at these locations.
“One of the big concerns,” says Cook, “was the surface impact.” With the newer deep horizontal wells, he says, about 16 vertical wells are eliminated from the surface. Horizontal wells, he says, although most controversial, decrease risk for contamination because the greatest risk associated with hydraulic fracturing is in the surface handling of the fluids. “If we have fewer wells, we have fewer chances of spills,” Cook says.
Despite the extended supply of natural gas, it is still important to continue developing alternative energy sources, such as wind and solar power. “While we want to have a full mix (of energy sources),” he says, “I think natural gas is going to play a strong role in that.” Natural gas in very affordable and provides low-cost fuel to homeowners across the state, says Cook. Additionally, indigenous supplies of natural gas have the potential to create jobs and provide low costs to auto companies and other local businesses, he says.
Because of the influx of media coverage of hydraulic fracturing, Cook says, people think the process is new and they are increasingly skeptical. “This is something we’ve been doing for 50 years,” he says, “and we’ve had no problems of any contamination of water wells in northern Michigan.”
“Trust us, but trust us because we have a track record,” says Cook.
An American innovation, hydraulic fracturing may help reduce U.S. dependence on foreign energy sources, he says, and the technology is being exported to help other countries as well.
Greening of the Great Lakes airs every Sunday at 7 p.m. on News/Talk 760 WJR and around the state each weekend on the Michigan Talk Network. Please follow us on Twitter.
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