August 22, 2013 – Austin, Texas
Policy
Food for Thought: Weighing the Costs and Benefits of Fracking
It’s hard to believe that the word ‘fracking’ hardly existed in the nation’s lexicon just a few years ago. Today, you’d be hard pressed to open a newspaper without seeing a story on what has no doubt become a booming business for Texas—hydraulic fracturing. Everyone has an opinion on the topic—and in Texas where water is a scarce commodity, the stakes couldn’t be higher.
To be sure, fracking has its share of both opponents and proponents. Every day it seems a new study is making headlines. Just a few weeks ago, a was released by Duke University scientists, which found that fracking caused groundwater contamination at a site in Wyoming.
Meanwhile, other have challenged the link between fracking and water quality.
Still dispute the notion that fracking increases the risk for damaging earthquakes, another major critique of fracking.
Source: “Eagle Ford Shale Update and its Impact on the Houston Economy” by Harold Hunt, PhD at Texas A&M University
The reality for Texas—regardless of all the studies and research—is that fracking is not going away anytime soon. The economic stakes are enormous with the State of Texas gaining millions in new tax revenues each year which help build the Rainy Day Fund and bring revenue to local governments through property taxes. “Tax income from oil production and regulation was 43 percent higher than estimated, at $2.1 billion, and the natural gas production tax brought in $1.5 billion, 38 percent higher than estimated.”
People
Honoring the Father of Fracking: George Mitchell (1919-2013)
A Texas legend in so many ways, George Phydias Mitchell died earlier this month of natural causes at the age of 94. The son of a Greek immigrants who ran a cleaning and shoe-shining business in Galveston, Mitchell came from humble beginnings, but became one of the wealthiest individuals in the United States. A graduate of Texas A&M University, Mitchell was one of the school’s largest benefactors.
His company, Mitchell Energy & Development has been credited with more than 200 oil and 350 natural gas discoveries., Mitchell’s company spent nearly 20 years developing horizontal drilling and hydraulic fracturing before finding success in the 1990’s in North Texas’ Barnett Shale, opening up the doors to shale discoveries worldwide, according to Forbes magazine.
Mitchell and his wife Cynthia, who died in 2009, together established the George and Cynthia Mitchell Foundation, which according to its web site is “a mission‐driven grant making foundation that seeks innovative, sustainable solutions for human and environmental problems.”
Programming
Power Across Texas board members enjoyed a very insightful Policy Forum on Monday, August 19 with PUC Commissioner, Ken Anderson who shared his thoughts on next steps and timing with regards to resource adequacy. Policy Forums like these are one of the many benefits of Power Across Texas membership.
Speaking of benefits, don’t forget to mark your calendar for the on September 27-29, 2013 at the University of Texas at Austin. Power Across Texas is proud to be an official sponsor of this outstanding event and to offer discounted registration fees for its members. Please contact Karen R. Johnson, Chief Executive about joining PAT today!
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