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Earth Businesses

US Rust Belt Manufacturing Rebounds Via Fracking Boom 191

schnell writes: A NY Times article reports that Midwestern "Rust Belt" towns and their manufacturing economies in particular have rebounded greatly due to the U.S. resurgence in fossil fuel production. This resurgence is driven by production of shale gas and natural gas from "fracking" and other new technologies that recover previously unavailable fuel but are more invasive than traditional techniques. "Both Youngstown and Canton are places which experienced nothing but disinvestment for 40 years." "They're not ghost towns anymore," according to the article. But while many have decried the loss of traditional U.S. manufacturing jobs in a globalized world and the associated loss of high-wage, blue collar jobs, do the associated environmental risks of new "tight oil" extraction techniques outweigh the benefits to these depressed economic regions?
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US Rust Belt Manufacturing Rebounds Via Fracking Boom

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  • Transition fuel (Score:5, Interesting)

    by mdsolar ( 1045926 ) on Tuesday September 09, 2014 @08:30AM (#47860781) Homepage Journal
    Fracking for natural gas seems to be happy with a price of $4/MMBTU so long as we treat it as a strategic fuel and don't link it up with the $10/MMBTU international market. So, it can support onshoring of manufacturing for a while. But, Midwest wind is selling power purchase agreements at essentially the fuel cost for natural gas generation using combined cycle power plants. The cost of wind is likely to fall further. So, natural gas may end up being just a foretaste of low cost energy boosting onshored manufacturing as renewable energy displaces it.
    • by LWATCDR ( 28044 )

      Actually cheap natural gas and wind go hand in hand. You use Natural gas as a backing fuel for wind. If natural gas gets cheap enough you can turn it into clean burning diesel and jet fuel. Electricity is fine for many things but you will not see an electric airliners or long haul truck anytime soon. I also do not see the US electrifying all of it's railways anytime soon.

      As to natural gas as a strategic fuel export might be a requirement strategically. Europe gets a lot of it's gas from Russia and may ver

      • I think we can retain our domestic supply while curbing Russia by building but not using export terminals. We could save quite a lot on military expenses if we held that card in our hand: play nice or we'll take away your revenue in less than a month. So, the cost of building the (idle) terminals would be well justified.
        • by LWATCDR ( 28044 )

          You would save nothing.
          Unless the Russia rapidly decreases the size of it's military you still need to have the military power to back it up.
          After all a natural gas tanker could always just explode in the middle of the Atlantic or in a harbor in Europe.

          • We'll if it comes to blockades, I doubt Russia will be selling much gas. On savings, do we need to build a cruise missile defense, or can Russia be brought back to its treaty obligations? Idle natural gas terminals say honor your treaty obligations.
            • by LWATCDR ( 28044 )

              Does not take a blockade, just an "accident". You will always want to have enough military force to win any war if possible. The goal is to never have to fight a war. The simple rule is no nation ever starts a war because the opponent is too strong. Nations start wars that they think they can win.

              • I'm not sure I get you point then. Under normal conditions the tankers would not be used. So, they are not going to be blowing up. If they are used, it would be to stiffen the European backbone on sanctions by keeping their gas supply up without Russian imports. We avoid an arms race by keeping Russia in line. That saves on military costs. I don't know what it costs to stop a nuclear cruise missile. India is working on it but Russian missiles are stealthy. Might be tough.
      • Electricity is fine for many things but you will not see an electric airliners or long haul truck anytime soon. I also do not see the US electrifying all of it's railways anytime soon.

        I agree that electrifying the railways isn't likely to happen, but it would still be a good idea. I'd go so far as to say it would be a better idea than running long-haul trucks off of natural-gas-derived synthetic diesel. Heck, I'd even rather see the trains running off the synthetic diesel, just because the fuel economy is s

        • by LWATCDR ( 28044 )

          Exactly when cheap NG is cheap enough you can use it to make synth fuels for vehicles like trains, trucks, and aircraft. I do wonder if battery power would work for tractors? Weight is not an issue and range sure is not. The question would be is if they use too much energy for a practical battery. Of course a battery swap might be a simple solution for that.

          • by afidel ( 530433 )

            Trains will probably never run on synth fuel, with a train storage is a complete non-issue, fuel takes up a tiny fraction of the available cargo room and towing capacity so trains will just use lightly compressed natural gas directly, it's WAY more energy efficient that way and the conversion from traditional diesel is trivial (Berkshire owned CSX is already starting to convert their fleet)..

  • Excellent Question (Score:5, Informative)

    by Bob9113 ( 14996 ) on Tuesday September 09, 2014 @08:34AM (#47860801) Homepage

    do the associated environmental risks of new "tight oil" extraction techniques outweigh the benefits to these depressed economic regions?

    That is an excellent question. What we need is an excellent answer. Unfortunately, right now, we only have some rather crude guesses, mostly made by people with entrenched preconceptions (on both sides of the issue). We don't know what the probable environmental cost of an additional $100m of fracking production is.

    There are two reasons to continue fracking, while going easy on the rate of production; 1) the oil will still be there, it will probably continue to climb in value, and we are learning -- by doing -- more cost effective and safer approaches to extraction, and 2) because we need more data to improve the risk assessment model.

    Not doing fracking won't get us the data we need, and would prevent us from developing the technology to get this stuff out cheaper and safer. Doing fracking as fast as we can will waste money and create additional damage by using current early-stage extraction processes, and it exposes us to poorly quantified risk.

    The biggest problem right now is that the oil companies, in fear of regulation-to-come, are extracting as fast as they can to try to get the money out of the ground before the axe falls. That is pretty much the worst possible answer: It minimizes the profit margin on a finite resource while maximizing the risk. It is a textbook example of short-term orientation market failure.

    • Re: (Score:2, Troll)

      by Alarash ( 746254 )

      Not doing fracking won't get us the data we need

      But what if doing the fracking causes irreversible damage? Maybe we need to make the mistake to realize it's one, but then it might be too late. Some countries apply the "Principle of precaution", that is, "if you're not sure of the effects of what you're doing, don't fucking do it."

      • by Bob9113 ( 14996 ) on Tuesday September 09, 2014 @10:07AM (#47861531) Homepage

        But what if doing the fracking causes irreversible damage? Maybe we need to make the mistake to realize it's one, but then it might be too late. Some countries apply the "Principle of precaution", that is, "if you're not sure of the effects of what you're doing, don't fucking do it."

        Well played. :)

        Here, let me do the iconic example of the other side:

        'We can't have government jumping in and killing off entire industries just because the sky might be falling. There have been no major catastrophes as a direct result of fracking, and even the few relatively minor events that have been recorded turned out not to be caused by fracking, but by improper deep-well injection of effluent.'

    • Wait....regulating the oil industry? When has that ever happened....*cough* Deepwater Horizon *cough*
    • by xdor ( 1218206 )
      You'll notice that your "market failure" argument is completely based on a non-market "government chill-factor" driver?
      • by Bob9113 ( 14996 )

        You'll notice that your "market failure" argument is completely based on a non-market "government chill-factor" driver?

        No, I will not. The same short-term-orientation market failure would occur in a pure laissez-faire system. In that case, the failure to account for long-term risk combined with limited liability, bankruptcy, and shell corporations would result in the same public risk / private profit that is the primary economic failure with fracking now.

        I will grant that it is exacerbated by the current go

    • While I get what you are saying as far as "research" it's kind of like saying; "We can't know how to treat Agent Orange damage if we don't keep spraying Agent Orange -- there won't be enough data."

      Fracking is a transition tech -- it's getting the last bits of natural gas and that's fine. But if we spent more money pushing the alternative energy -- which WILL EVENTUALLY be cheaper, we speed the day and time when it's more viable.

      The environment and mankind will be better off on alternative energy so why are

      • by Bob9113 ( 14996 )

        While I get what you are saying as far as "research" it's kind of like saying; "We can't know how to treat Agent Orange damage if we don't keep spraying Agent Orange -- there won't be enough data."

        While I get what you are saying, I think you are using a charged metaphor. We know how bad Agent Orange is. We genuinely do not know how dangerous fracking is. Try replacing Agent Orange with, for example, "the search for the Higgs Boson", or "artificial intelligence", or some other thing that has unknown potentia

    • by k6mfw ( 1182893 )
      Another consideration is potential damage to underground water resources, if that gets polluted, all of us are toast. You can live without gas, but cannot live without water.
  • by whereiswaldo ( 459052 ) on Tuesday September 09, 2014 @08:39AM (#47860837) Journal

    This article [theenergycollective.com] tries to compare fracking water use to other uses (eg. golf courses) but fails to account for fracking water being taken out of the system - it's not recycled, it's disposed of. With lakes drying up or disappearing in California and other countries fighting over fresh water, how can the fracking industry be so wasteful?

    • by NotDrWho ( 3543773 ) on Tuesday September 09, 2014 @08:51AM (#47860943)

      While fracking water can't be reused as drinking water, there is some evidence [nytimes.com] that it can be recycled for other purposes, and may not be nearly as contaminated as previously thought.

      • The problem is that they won't tell us what they're using in the fracking water, which means we have little way of knowing what's in it, and how contaminated it actually is.

        To date (at least as far as I've seen), the companies have been keeping the mixture as a trade secret, and refusing to let any independent science take place.

        It's all just "don't worry, it's safe", even when people are ending up with contaminated wells.

        • by MrL0G1C ( 867445 )

          Doesn't sound safe to me:

          DEP finds 243 water sources contaminated by gas exploration [bizjournals.com]

          I can't help but wonder how many more water sources will be have chemicals leach into them even after the fracking is finished. On the positive side, sometimes the contamination diminishes over time to safe levels.

        • by will_die ( 586523 ) on Tuesday September 09, 2014 @11:17AM (#47862165) Homepage

          That you cannot get the recipes is a big lie propagated by the gasland film.

          You can do a google search and find the generic recipes. The problem is those recipes are generic and depending on the soil the proportions of different chemicals change. The big problem and why various companies have been fighting the various anti-frackers is that as you use the water it picks up chemicals from the ground, the various anti-fracker groups want companies to do a constant scan for those picked up chemicals and track all of them and report all of them.

      • LMOL umm no it can't be recycled for other use. Until the oil companies tell us what it's in the fracking chemicals - which that won't do - it's hard to know the level of contamination. But thanks for playing it's "really not that bad" game....pin head.
    • The northeastern US doesn't have a water shortage that's why.

  • by rolfwind ( 528248 ) on Tuesday September 09, 2014 @08:43AM (#47860869)

    ?

    I know the extraction bellcurves of conventional oil wells/fields are generally decades long things, while fracking lasts only a few years, so a fracking area tends to get dotted with many, many wells before they have to move on due to depletion.

    Does the same short-livedness hold true for natural gas?

  • Can there be a such thing as green fracking for natural gas? Is there a way to avoid the witch's brew of nasty that they inject? From what I gather the primary technology behind fracking is that you hammer something down into the shale along with sand, the shale cracks, and the sand slips into the cracks and holds them open. Then the gas leaks out.

    One of the huge complaints is that all that crap can contaminate water supplies; this would include the fracking fluid itself coming back up to the surface.
    • by xdor ( 1218206 )

      The "greenest" fracking I'm aware of is propane-fracking. Uses propane instead of water as the fracking medium.

      No water is used, some of the propane can be recovered, the remaining is suitable as a crude oil. As an added plus, unlike water, no radioactive radon is conducted back to the surface with this process.

      Some Canadian company has applied for a patent to the process in the United States. IMO, this should be declined since Chevron invented the process back in the 70s for under-sea fracking. Not to

    • One big thing you're missing is the environmental impact of escaped methane. See, when you blast all this rock, you can't hope to capture all the methane as it escapes. a significant amount is released directly into the atmosphere.

      Methane is something like 20x as potent a greenhouse gas as CO2 over a century, and ~50-70x more potent over periods of less than 50 years (give or take). When you take the methane release into account, even away from all the water/soil pollution, fracking is more damaging vis-a
      • I was thinking of the more NIMBY problems involved in fracking. In my province they basically just banned fracking but that was pretty much all about groundwater, waste issues, and other very local problems. Seeing that restarting the coal mines would locally be considered a huge political win I don't think that the local ban took global warming into much consideration.

        So when I was talking about green fracking, it was greening those issues directly around the fracking area.
        • so you're just looking for ways to clean it up just enough to skirt your ban? to hell with real actual consequences? sheesh.
  • by ComputerGeek01 ( 1182793 ) on Tuesday September 09, 2014 @08:49AM (#47860931)

    From what the article says, this is a bump in manufacturing from short term contracts, this is hardly a sustainable client base. My guess is that at the very most this will be a benefit for one generation, maybe two at the very most. A few thousand jobs is nothing to shrug off but I hope that these towns are prepared for what is going to happen within the next 20 to 40 years. The cheap housing and sharp increase in demand will attract real-estate prospectors; and just like these sociopathic leeches always do, they will start building up their little housing price bubbles and once again the idea that maybe "infinite growth" can be a real thing is going to settle in the backs of peoples minds. I'm not saying that we should stop this kind of thing mind you. The money generated in this way is very real, even if the actual wealth is not. But we should be better prepared for the fallout this time.

    • by frinkster ( 149158 ) on Tuesday September 09, 2014 @09:36AM (#47861241)

      From what the article says, this is a bump in manufacturing from short term contracts, this is hardly a sustainable client base. My guess is that at the very most this will be a benefit for one generation, maybe two at the very most. A few thousand jobs is nothing to shrug off but I hope that these towns are prepared for what is going to happen within the next 20 to 40 years. The cheap housing and sharp increase in demand will attract real-estate prospectors; and just like these sociopathic leeches always do, they will start building up their little housing price bubbles and once again the idea that maybe "infinite growth" can be a real thing is going to settle in the backs of peoples minds. I'm not saying that we should stop this kind of thing mind you. The money generated in this way is very real, even if the actual wealth is not. But we should be better prepared for the fallout this time.

      Many of these rust-belt cities have struggled for so long that suburban sprawl has been quite limited. Many of them have intact urban downtowns that are run-down and many of these towns and cities have been focusing on smart urban renewal of these downtown areas. They won't be making the same mistakes again. And they don't need a whole generation of investment to make them great little places to live.

      • Many of these rust-belt cities have struggled for so long that suburban sprawl has been quite limited. Many of them have intact urban downtowns that are run-down and many of these towns and cities have been focusing on smart urban renewal of these downtown areas. They won't be making the same mistakes again. And they don't need a whole generation of investment to make them great little places to live.

        They still need ongoing jobs. And this is the elephant in the room as far as fracking goes. It's boom-bust all over again.

        The money isn't really in the product, the money is really in creating enough buzz to get some other sucker to put his money into a well so that you can cash out. Once that stream of suckers^Hinvestors drops out, the economy drops out. Quickly.

        So in ten years you will seen storefronts boarded up again. They won't be storefronts from the 50's and '60s (the last boom and bust cycle),

      • by afidel ( 530433 )

        Huh? Cleveland and Detroit are both the definition of rustbelt and urban sprawl, heck Youngstown was ranked 175/221 for worst urban sprawl in the smart growth 2014 [cleveland.com] report.

    • Local policy makers should make preparations for what happens in a generation or two, agreed. This is, however, a solved problem. More money/jobs from the energy industry means that other businesses have paying customers- hair salons, restaurants, hotels, grocery stores - every segment of the economy benefits from the inflow of money to the area. Over the next 10-20 years, blighted abandoned areas become vibrant again. At that point, they are attractive places to build any business. That's the time

      • It's a third- world environment, but with unions and Democrat labor laws.

        Normally I wouldn't entertain the idea of politicizing what is clearly an economic and social development issue; but what the hell I'll respond.

        I'm not sure how you think that unions work where you are from. But here in the US what they do is monopolize the labor pool for a given trade on a per entity basis; they do not annex an entire cities population all at one a time. But, solely for the sake of your argument, let's say that a labor union somehow actually DID manage to maintain the peoples faith, in a s

  • by Cardoor ( 3488091 ) on Tuesday September 09, 2014 @08:58AM (#47860981)
    it's properly (and technically) called 'exploitation of natural resources'. It isn't sustainable - in terms of environmental impact, massive front-ended depletion rates rates, or the ultimate demand-destruction the high cost of extraction begets. Political and environmental chicanery have obfuscated the first two, with massive monetary stimulus banking on the dollar's reserve status having propped up the latter (among other things of course).

    If the ultimate cost of extraction were markedly lower (as it has in decades past) the net energy gains might still be enough to justify. But those days are long gone.
  • US Rust Belt Manufacturing Rebounds Via Fracking Boom

    Watch your fracking language.

  • NOT rebounding because of the fracking boom. Only a small fraction of the hundreds of thousands of manufacturing jobs lost to globalization are being replaced by the fracking industry.

  • by kick6 ( 1081615 ) on Tuesday September 09, 2014 @10:16AM (#47861635) Homepage
    Just because the idiots in the media just discovered the existence of the procedure a few years ago doesn't mean anything. The first well was frack'ed in 1947. If fracking is new, so are jet engines, nuclear bombs, and a whole host of now-outdated shit. Journalistic integrity is a lost art.
    • Fracking itself may not be new... but it wasn't used on a scale anywhere even close to what we're seeing now... until the advent of directional drilling [wikipedia.org], which definitely is new. And it can be argued that drilling long narrow tunnels laterally through layers of shale is far less disruptive and risky than the recent trend of pumping millions of gallons of fresh water, diesel, propane, proprietary mixes of mysterious synthetic substances into the ground beneath our pastures and farmland.

      So, while the media ma

  • Problem: fossil fuels are required for a fossil fuel based economy. Yes that includes tech which requires plastics, electricity, and fuel to extract the mierals needed to build the products, make the products, and ship them.

    Problem: reliance on foreign fossil fuels can cause wars.

    One solution: extract fuel from places where the fuel was unreachable or very difficult to extract.

    Problem: can cause environmental damage.

    Benefit: energy independence

    Benefit: jobs

    Problem: does nothing to reduce carbon emissions.

    So

  • I blame this fraking boom on the sexy Cylons in the Battlestar Galactica reboot.

    In my day, kids didn't use fucking vulgar goddamn language like that, they had respect.
  • ... as the foundational premise of "Firefly" plays itself out.
  • by Charliemopps ( 1157495 ) on Tuesday September 09, 2014 @11:05AM (#47862061)

    There's a lot of nonsense posts in this thread about how it doesn't benefit anyone... I live right in the middle of this so let me provide some anecdotal evidence...

    My Uncle is a farmer (cranberries) and has a 160 acre farm. His son worked in factories. Those factories pretty much left the state for China and my cousin, who admittedly is an idiot and therefor can't get a decent job that involves thinking, has been bouncing from fast food job to fast food job for about a decade. The cranberry market crashed a while back as the 'cranberry fad' died. Berries went from $80/barrel to around $12/barrel. My uncles farm was floundering, he was about $200k in debt and pulling in $40k/year after expenses.

    Then came fracking.

    My cousin got a job hauling pipes... he went from working at McDonalds to making $55k/yr over night. That may not seem like a lot to most slashdotters but in the Northern/Midwest area thats a very good salary. He's got land, a house, he's very happy though the commute is terrible. (up to 4hrs to work and back depending on the site hes working on)

    Cranberries grow in sand... Sand is used in fracking. My Uncle just closed a deal to sell his farm to a Sand Mining operation for $2 million. In fact, nearly every Cranberry farmer he knows is selling as well. The sand mining companies are offering 400% the going rate for the land and are buying everything... everywhere... Some people are getting as high as $20k/acre depending on the Sand quality and how close they are to the railroad.

    Now... as far as environmental impacts... The farm he spent his entire life building is going to literally be turned into an open pit 150ft deep. He hates the idea, but he can either retire a millionaire or leave his children so much debt they'll be forced to sell to the mine as well. The farmers that aren't selling are happy about it to because with fewer farmers around, the price of cranberries will go up. He plans to use his new found wealth to buy some land that has a trout stream running through it up the road and spend the rest of his days fishing.

    So yes, the environmental impacts are huge. But to say it's not a boom for local people and the poor, that's just disingenuous. If you live anywhere near this stuff you're economic situation is going to improve. My uncles retaining ponds will, however, no longer be the best fishing spot in the county.

    • The farm he spent his entire life building is going to literally be turned into an open pit 150ft deep. ... He plans to use his new found wealth to buy some land that has a trout stream running through it up the road and spend the rest of his days fishing.

      Odds are he outlives the fishing.

  • if we humans could just evolve quicker so that polluted water could be consumed, then all this nonsense about "saving the earth" by banning fracking would just go away.

  • Read the headline and wondered if they weren't bouncing back via the lucrative "toaster" market. So say we all!

  • 95% of what is said her regarding fracking is incorrect. Go work for a fracking company for a few months and see how it is done, you will see exactly what is in the "contaminated" water. Many companies R &D departments are working on ways to re-use "contaminated" water to frac with multiple times so only a very small percentage of "new" water would be needed per frac. The water table where I frac isn't very deep, the place where the fracking is being done is about 2 miles past the water table and near t
    • "It is difficult to get a man to understand something, when his salary depends upon his not understanding it" - Upton Sinclair (incidentally, author of Oil! - the book upon which there will be blood was based)

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