Hearing on ExxonMobil purchase of XTO will address environmental concerns

19-Jan-2010

A hearing this week will address the potential environmental ramifications of gas drilling that uses hydraulic fracturing, reports say.

ExxonMobil's multibillion-dollar purchase of XTO Energy would grant the oil giant a new level of expertise on fracturing. Fracturing technologies have made gas from so-called unconventional sources extractable and vastly increased America's estimated reserves of the hydrocarbon.

Last year, according to the Energy Information Administration, reserves in previously inaccessible shale reservoirs grew 51 percent from 2007.

ExxonMobil's purchase of XTO is contingent upon the continued legality of hydraulic fracturing, though. Legislation in the House and Senate would require drillers to disclose the contents of their fracturing fluids; some have worried about the fluids' effect on drinking water.

The Environmental Protection Agency voiced concerns late last month about the impact of fracturing in New York State. New York City's water supply is unfiltered, and there are fears that hydraulic fracturing chemicals could enter the city's drinking water.

The chief executives of both XTO and ExxonMobil will visit Washington to argue for the safety of their drilling practices.

Breaking news brought to you by the Oxford Princeton Programme, specialists in gas courses. This and other related topics are part of the forthcoming course Overview of the North American Natural Gas Industry on 29 March, 2010 in Houston.