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Evaluating determinants of shale gas well locations in an urban setting
The Annals of Regional Science ( IF 2.2 ) Pub Date : 2020-05-16 , DOI: 10.1007/s00168-020-00998-0
Jeffrey Rous , Vicki Oppenheim , Myungsup Kim , Matthew Fry , Chetan Tiwari , Murray Rice

This research aims to identify factors that contribute to gas well operator pad site location decisions in Denton, Texas. Using new production technologies, a wave of shale gas extraction between 2000 and 2014 resulted in the development of 854 gas wells on 539 pad sites within 2000 US Census block groups that include parts of the City of Denton. For pad site placement, we consider multiple location decision factors. We use both Poisson and zero-inflated Poisson regressions for the analyses. Unsurprisingly, census block groups sitting atop the Barnett Shale have more pad sites than block groups away from the Barnett Shale. Beyond that, we find statistically significant negative correlations between both housing unit density and the percentage of block group land area falling within the Denton city limits indicating that both urban development, and the regulations that go along with it, affect pad site development. However, we do not find that setback regulations in less urbanized areas curtail pad site development. We also find that access to pipeline infrastructure—needed to transport gas from each pad site—has a positive effect on pad site development. This indicates that production costs associated with potential sites do matter. It is unusual for extraction operators to share pipelines connecting pad sites to transmission lines. This could have the effect of limiting competition for natural gas property rights and reduce royalties paid to mineral rights owners. In terms of demographic or socioeconomic factors that may matter, we find income is negatively correlated with pad site development while education is positively correlated with pad site development. Finally, we find evidence that pad sites cluster. Clustering could advantage access to main roadways, reduce costs to extend pipelines, or be an outcome of urban developments that constrain pads from locating in certain areas.

中文翻译:

评估城市环境中页岩气井位置的决定因素

这项研究旨在确定导致德克萨斯州登顿的气井操作员工地位置决定的因素。使用新的生产技术,在2000年至2014年之间的页岩气开采浪潮中,在包括丹顿市部分地区在内的2000个美国人口普查区块组中的539个垫块现场开发了854口气井。对于焊盘位置,我们考虑多个位置决策因素。我们同时使用Poisson和零膨胀Poisson回归进行分析。毫不奇怪,与远离Barnett页岩的区块组相比,位于Barnett页岩上方的人口普查区块组具有更多的填充位置。除此之外,我们发现房屋单元密度与落在登顿市范围内的街区组土地面积百分比之间在统计上显着负相关,表明这两个城市发展,以及随之而来的法规会影响焊盘的开发。但是,我们没有发现在城市化程度较低的地区遭受挫折的法规限制了填埋场的发展。我们还发现,访问管道基础设施(需要从每个衬垫站点运输天然气)对衬垫站点的发展产生了积极影响。这表明与潜在场所相关的生产成本确实很重要。对于采掘作业人员来说,共享连接垫位与传输线的管道是不寻常的。这可能会限制天然气权的竞争,并减少支付给矿权人的特许权使用费。就可能重要的人口统计学或社会经济因素而言,我们发现收入与垫区发展成负相关,而教育与垫区发展成正相关。最后,我们发现了填充站点聚集的证据。集聚可以使通往主要道路的通道受益,降低延伸管线的成本,或者是城市发展的结果,这些发展限制了垫块在某些地区的位置。
更新日期:2020-05-16
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