Move is a major shift in a sector that has been steadfast in its need to keep any hint of the ingredients secret
PITTSBURGH—A major supplier to the oil and gas industry says it will begin disclosing 100 per cent of the chemicals used in hydraulic fracturing fluid, with no exemptions for trade secrets.
The move by Baker Hughes of Houston is a shift for a major firm in a sector that has been steadfast in its need to keep any hint of the ingredients secret.
The oil and gas industry has said the chemicals used are disclosed at tens of thousands of wells, but environmental and health groups and government regulators say a loophole allowing companies to hide chemical “trade secrets” has been a major problem.
A statement on the Baker Hughes website said the company believes it’s possible to disclose 100 per cent “of the chemical ingredients we use in hydraulic fracturing fluids without compromising our formulations,” to increase public trust.
“This really good news. It’s a step in the right direction,” said Dr. Bernard Goldstein, the former dean of the University of Pittsburgh Graduate School of Public Health. “One hopes that the entire industry goes along with it.”
But Goldstein noted one “major hedge” in the Baker Hughes position, since the company said it will provide complete lists of the products and chemical ingredients used in frack fluids “where accepted by our customers and relevant governmental authorities.”
Still, Goldstein said the Baker Hughes language sets a new standard for transparency and “clearly distinguishes them from Halliburton,” another major industry supplier.
A Halliburton spokeswoman did not immediately respond to requests for comment.
A boom in drilling has led to tens of thousands of new wells using the fracking process, which involves forcing a mix of water, sand and chemicals into deep underground formations to break rock apart and free oil and gas.
That’s led to major economic benefits but also fears that the chemicals used in the process could spread to water supplies.
The mix of chemicals varies by company and region—and some of the chemicals are toxic and could cause health problems in significant doses—so the lack of full transparency has worried landowners and public health experts.
Many companies voluntarily disclose the contents of their fracking fluids through FracFocus.org, a website partially funded by the oil and gas industry that tracks fracking operations nationwide. But critics say the website has loose reporting standards and allows companies to avoid disclosure by declaring certain chemicals as trade secrets.
A U.S. Energy Department Task Force report issued in March that found that 84% of the wells registered on FracFocus invoked a trade secret exemption for at least one chemical.
The Interior Department is expected to finalize proposed regulation for hydraulic fracturing on public lands by the end of the year. The measure would apply to some 700 million acres of federal lands and 56 million acres of lands controlled by federally recognized Indian tribes.
The rule proposed last year would require companies drilling for oil and natural gas to disclose chemicals used in fracking operations. The information would be made public.
Industry groups oppose the disclosure rule, saying it would be costly for businesses, with little environmental or safety benefit.