04-11-2016, 01:16 PM
The U.S. economy received a huge boost from fracking technology. Oil companies made a killing from cheap natural gas and oil using this technique. But now it seems it has ran its course. The oil companies are finally admitting that fracking has contributed to the massive increas in earthquake activity in Oklahoma and other western oil producing states.
In 2007 Oklahoma experienced one earthquake of magnitude 3 (the lowest level where they can be felt). In 2015 there were 907. Oklahoma, which used to have next to zero seismic activity, now has more magnitude 3 earthquakes than California. The number of level 4 earthquakes has also doubled, and 10 of the 12 biggest earthquakes in Oklahoma history have occurred since 2011. Residents of Oklahoma are shocked to find that the damage from these quakes is not covered unless the home/business owner had special "earthquake insurance" (just like "flood insurance" riders). And the cost of "earthquake insurance" (which used to not even be offered in that state) is skyrocketing.
Even though 20% of the jobs in Oklahoma are tied to the oil/gas industry people realize that the potential damage from earthquakes is not worth it.
So now the question is how much liability the oil/gas companies face. For years they denied that fracking was responsible for any of this, but the evidence is now clear. Their experts should have known long ago. They are looking at billions in potential liability. Even if they stop fracking right now there is no evidence that the earthquakes will stop. The damage has been done and it may be irreversible.
This will also have a big impact on the United States oil/gas production which had been booming for the last few years.
Thoughts?
In 2007 Oklahoma experienced one earthquake of magnitude 3 (the lowest level where they can be felt). In 2015 there were 907. Oklahoma, which used to have next to zero seismic activity, now has more magnitude 3 earthquakes than California. The number of level 4 earthquakes has also doubled, and 10 of the 12 biggest earthquakes in Oklahoma history have occurred since 2011. Residents of Oklahoma are shocked to find that the damage from these quakes is not covered unless the home/business owner had special "earthquake insurance" (just like "flood insurance" riders). And the cost of "earthquake insurance" (which used to not even be offered in that state) is skyrocketing.
Even though 20% of the jobs in Oklahoma are tied to the oil/gas industry people realize that the potential damage from earthquakes is not worth it.
So now the question is how much liability the oil/gas companies face. For years they denied that fracking was responsible for any of this, but the evidence is now clear. Their experts should have known long ago. They are looking at billions in potential liability. Even if they stop fracking right now there is no evidence that the earthquakes will stop. The damage has been done and it may be irreversible.
This will also have a big impact on the United States oil/gas production which had been booming for the last few years.
Thoughts?
