Houston-based energy firm Noble Energy Inc is fracking deep under Nevada’s desert in search of oil deposits. This is the first time the controversial technique is being used in the state that is more famous for being a gold producer and as the U.S. casino capital.
Noble Energy will spend about $130 million, with the company officials quoted as saying that they are yet to determine the actual oil-producing potential as the project is still in its early stages. However, reports indicate that the find could be “significant”.
Critics have lambasted the use of fracking, which Noble Energy employed in an exploration site located east of Elko last month, over concerns that it threatens to pollute water supplies and air quality. They also argue that fracking could increase earthquakes in the state, which is one of U.S. most seismically-active.
“What’s unique about Nevada is it really is a frontier area,” Kevin Vorhaben, the Rockies business unit manager for Noble Energy told the Reno Gazette-Journal . “It’s a chance to get in and really do the right thing for oil and gas development. We’re excited to be in Nevada.”
Fracking is a controversial technique that is used to access oil and natural gas reserves in areas where it is difficult to extract the resources using conventional methods. It involves pumping in a mixture of chemicals, fine sand and water into the shale formations to fracture the rocks to release oil or gas, which is then extracted.
The method also facilitates horizontal deep-well drilling, which ensures it can reach more oil reserves than would be possible if conventional vertical wells were used. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
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