Halliburton Hunts New Bacteria Killer to Protect Shale-Gas Boom

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March 29 (Bloomberg) -- Halliburton Co. and Schlumberger Ltd., trying to forestall a regulatory crackdown that would cut natural-gas drilling, are developing ways to eliminate the need for chemicals that may taint water supplies near wells.

At risk is hydraulic fracturing, or fracking, a process that unlocked gas deposits in shale formations and drove gains in U.S. production of the fuel. Proposed regulations might slow drilling and add $3 billion a year in costs, a government study found. As one solution, energy companies are researching ways to kill bacteria in fracturing fluids without using harmful chemicals called biocides.

“The most dangerous part in the shale frack is the biocide,” said Steve Mueller, chief executive officer at Southwestern Energy Co., the biggest producer in the Fayetteville Shale of Arkansas. “That’s the number-one thing the industry is trying to find a way around.”

U.S. House and Senate bills introduced in 2009 would force producers to get federal permits for each well. That and other proposed environmental measures would cut drilling by as much as half and add compliance costs of as much as $75 billion over 25 years, according to a study done for the U.S. Energy Department.

http://www.bloomberg.com/apps/news?pid=20601072&sid=aINvzI7k5xYY