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API: New Interior hydraulic fracturing rules must not ignore effective state efforts

WASHINGTON, May 4, 2012 ─ American Petroleum Institute Upstream Director Erik Milito said any new federal rules on hydraulic fracturing must reflect a history of successful state-led regulations on oil and natural gas production and avoid the creation of unnecessary bureaucratic red tape.

“The states have proven time and again that they are the best place for responsible regulation of drilling operations,” said Milito. “While it appears constructive changes have been made, we are still reviewing the new proposal to see how the agency addressed the various concerns that we’ve raised. The administration should exercise deference to the robust and comprehensive state regulations that already exist. Energy production on federal lands has a history of driving job creation, and creating significant revenue for the government. But this potential could be stifled by a federal regulatory program that duplicates existing state regulations. This could have a chilling effect on investment and jobs.”

API supports and works closely with a number of public and private partnerships throughout the country that collaborate with state regulators, including FracFocus.org, State Review of Oil and Natural Gas Environmental Regulations (STRONGER) and the Groundwater Protection Council (GWPC).

“Led by API, the industry has adopted standards and practices for continuous improvement, hundreds of which are referenced in state regulations,” Milito said. “The industry remains committed to informing and educating the public about all aspects of oil and natural gas production.”

Through the efforts of the industry to promote transparency, companies now voluntarily disclose the contents of fluids on FracFocus.org, run by the Groundwater Protection Council. The typical fracturing fluid is 90 percent water and 9.5 percent sand, with the rest being additives to aid well production.

API represents more than 500 oil and natural gas companies, leaders of a technology-driven industry that supplies most of America's energy, supports 9.2 million U.S. jobs and 7.7 percent of the U.S. economy, delivers more than $86 million a day in revenue to our government, and, since 2000, has invested more than $2 trillion in U.S. capital projects to advance all forms of energy, including alternatives.
  • Environment
  • Hydraulic Fracturing