Sen. Giessel Concerned About Fracking Draining State budget

Fracking, officially known as hydraulic fracturing, has been going on in Alaska for some time, but Great Bear’s is trying something new. State Senator Cathy Giessel (R-South Anchorage) explains…

 

Sen. Giessel (R-South Anc): “There are rocks that the oil is actually originating in. That’s where they’re going, to the source rock and fracking those, and that’s where the experiment sort of is taking place. They’re not really sure how those rocks are going to respond, or what the flow rate will be.”

 

Sen. Giessel said this concerned her when it comes to exploration tax credits…

 

Sen. Giessel (R-South Anc): “And so every time an exploration well is drilled, we reimburse the company for a certain percentage of that fracking requires a very large number of  wells to be drilled. Now, typically in the oil patch, about six out of every ten well that you drill are dry wells, so we will be paying for those, so to speak, through our credits, and that’s where the international consultants said, ‘All the wells that will be required for shale are going to take a lot of your credits, and essentially break the bank, if you will.’ That’s the concern.”

 

 

Categories: News

About Author