Monday, June 27, 2011

Questions on Shale Gas Economics and Safety

link here to article

The Energy Information Agency (EIA) was established to provide government with independent information about energy sources. Given recent safety issues in other fossil fuel industries such as BP's and the Massey Coal disaster, as well as concerns about nuclear safety, many look to natural gas as a safer alternative. The energy industry is particularly interested in exploiting shale gas reserves.

This report raises concerns about the independence of the EIA from the energy industry. Internal emails suggest that employees within the EIA are less positive about the data that they provide than one would hope. Some experts question the technical competence of the agency and its reliance on consultants who have relationships with the energy industry. Much of the data that the EIA relies upon comes from industry public relations sources which is compiled by the consultants and presented to the EIA. Many questions are raised about the economics and safety of extracting natural gas from shale resources. Given that government and the energy industry are bullish on shale gas, the EIA is in a familiar pickle.

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