American Oil and Gas Reporter - January 2012 - 256

project, Robertson says, "Shale gas made
up a small share of domestic natural gas
production in 2005, but has surged since
then and in 2010 made up 20 percent of
what was produced domestically. By 2030,
the portion could be close to 50 percent."
Mature Shale Responses
"The survey findings are especially
interesting among the more mature shale
areas where people are long accustomed
to oil and gas development," reports Gary
Adams, Deloitte LLP vice chairman and
leader of the company's oil and gas practice. "There, eight in 10 respondents who
currently do, or ever have, leased their
land to a natural gas developer would do
so again."
Adams says those numbers are lower
in newer shale regions, indicating there
is a higher level of discomfort with the
processes and technologies involved in
developing shale gas.
"In Pennsylvania and New York, where
people are not as used to oil and gas development, a more modest majority of
residents (52 percent) would advise family
or friends to lease their land. Similarly, a
smaller majority of respondents who currently do or ever have leased their land
to a natural gas developer (53 percent)
would do so again," he adds.
Deloitte reports its survey also indicates
that shale gas could play an increasingly
important role in making the United States
more energy independent. It says respondents with at least some degree of familiarity with shale gas development view
energy independence as the single most

important benefit of shale; ahead of boosting the national economy, job creation,
cleaner air and improving local economies.
In addition, the survey indicates 62
percent of those polled who had some
familiarity with shale gas development
associated the word "clean" with natural
gas, making it the top association, over
other words such as "reliable" (47 percent),
"domestic" (41 percent), "affordable" (40
percent) and "abundant" (38 percent).
Deloitte says 88 percent of respondents
think it is at least "somewhat believable"
to claim that "using natural gas resources
to generate electricity can significantly
reduce our carbon footprint."
The survey reports there is public faith
that shale gas development is being regulated appropriately, with 54 percent of
respondents nationally saying regulation
is "just right" or "evolving, but on the
right track." Twenty percent think there
is too much regulation, 16 percent believe
there is not enough, and the remainder
are unsure.
Need Better Information
Deloitte says the survey indicates the
road to increased shale gas production
will be rocky, with 37 percent saying
they are "not very" or "not at all familiar"
with hydraulic fracturing, and 23 percent
saying they have never heard of the technique. Nevertheless, Deloitte asserts a
large percentage of the public is aware
of the concerns about shale gas development, with 58 percent of national respondents indicating at least some degree
of familiarity and claiming they are aware

of potential water contamination issues,
while 49 percent say they know about
the possibility of surface land impacts.
Curiously, Deloitte says, while the news
media is seen as the primary source of information on shale gas (much higher it
says than sources such as word of mouth,
nonprofit agencies, industry websites or
town hall meetings), people don't trust
them. Seventy-three percent of national
respondents say they get information about
shale gas development from the media,
the survey says, yet only 17 percent see
the media as "extremely" or "very" trustworthy when it comes to providing unbiased
coverage of the natural gas industry.
At the same time, the survey says respondents in areas where shale gas development is planned or under way say
they believe oil and gas companies need
to communicate better. While nearly half
(45 percent) believe shale gas producers
are "somewhat" transparent and open,
Deloitte says only 35 percent believe
shale gas companies communicate "extremely" or "very" effectively. Only 34
percent see shale gas companies as "extremely" or "very" trustworthy, the survey
indicates.
"There is so much shale activity in so
many parts of the country that it's important
to communicate and operate effectively,"
asserts Robinson. "Everything shale gas
producers do gets enormously magnified.
That is why they have to get it right every
time, on every well drilled. Consistently
operating with excellence and communicating effectively with all impacted stakeholders are critical attributes."
❒

Barnett Drives North Texas Economy
FORT WORTH-Robust even in the
face of recession, the Barnett Shale play
has emerged after 10 years as an immense,
resilient and growing economic engine
in the 24-county North Texas region as
well as Texas as a whole, an economic
and financial analysis finds.
Commissioned by the Fort Worth Chamber of Commerce and conducted by The
Perryman Group (TPG) of Waco, Tx., A
Decade of Drilling examines Barnett Shale
activity and impact on local, regional and
state business activity during 2001-11.
The study finds massive past, present
and future economic impact, and billions
of dollars generated in local and state tax
revenue, according to TPG, which estimates the cumulative economic benefits
during 2001-11 include $65.4 billion in
output (gross product) for the region, and
$80.7 billion in output for the state. The
study also calculates 596,648 person-

years of employment in the Barnett Shale
region as well as 710,319 person-years
of employment statewide, TPG adds.
TPG says 38.5 percent of the Barnett
Shale region's economic growth since
2001 stems from oil and gas activity,
which it figures constitutes 8.5 percent
of the local business complex.
"It is truly an amazing story," exclaims
Ray Perryman, TPG founder and president.
"Even though the level of drilling activity
in the Barnett Shale started declining in
late 2008, TPG found that the economic
impact of Barnett Shale activities has
continued to grow."
Bill Thornton, president and chief executive officer of the Fort Worth Chamber
of Commerce, says, "We commissioned
the study to see how or if the economic
downturn had impacted past projections
about the industry. We found that it's a
bulwark of our economy. Here is an ac-

256 THE AMERICAN OIL & GAS REPORTER

tivity that was virtually nonexistent a
decade ago, and now-thanks to new technology developed here-it is generating
huge benefits in terms of tax revenues,
payroll and personal income for our
region and the state."
A Winning Play
According to A Decade of Drilling,
the Barnett Shale has yielded more than
9 trillion cubic feet of natural gas. Although
a difficult economy has slowed exploration,
the study shows production from the Barnett Shale has continued to rise, topping
1.8 Tcf in 2010.
TPG estimates the 2011 total regional
effect of Barnett Shale activity includes
$11.1 billion in annual output. For Texas
as a whole, it says Barnett Shale-related
activity leads to estimated 2011 gains in
output (gross product) of almost $13.7
billion.
American Oil and Gas Reporter - January 2012

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