By Zack Colman - 10/17/12 05:55 PM EDT
For example, hydraulic fracturing used to tap hard-to-reach oil-and-gas deposits revolutionized the natural-gas drilling industry. Known as fracking, that process injects a high-pressure mixture of water, chemicals and sand into tight rock formations to unlock fossil fuel reserves.
Biofuels production also has siphoned considerable amounts of local water for growing feedstocks, the report noted. A federal rule requires refiners to nearly triple current production levels by blending 36 billion gallons of biofuel into traditional transportation fuel by 2022.
Those developments — and, in particular, the fracking boom — combined with the past summer’s drought have led to water shortages across the country.
That forced water auction prices higher, with energy companies outbidding farmers who traditionally had little problem securing water through that avenue. On the other hand, many energy firms could not find enough water to continue fracking.
Federal, state and local agencies need to better coordinate water and energy decisions to avoid those situations, the report says. Too often, that planning is “stove-piped” to different authorities with little coordination, it adds.
The report calls for those agencies, as well as industry, to improve water supply data collection to better inform planning decisions.
“[T]he lack of such data makes it challenging to fully assess the impact that particular energy policy choices will have on water resources,” it says.