Sharon Kelly's blog

Drillers Under Pressure as Low Prices, Broad Uncertainties Put Oil & Gas Industry's Financial Prospects 'In Limbo'

At a climate change conference in Paris last week, Fatih Birol, chief economist at the International Energy Agency, had a blunt message for energy companies.

“We see some moves from energy companies in the direction of sustainable development. However, it is not at the level you would like to see,” Mr. Birol, who will be promoted to chief of the IEA in September, told those assembled. “If they think that their businesses are immune to the impacts of climate policy, they are making a strategic mistake.”

Other experts sound a similar note, calling for changes so fast and sweeping that they would be like an “induced implosion.”

EPA's New Fracking Study: A Close Look at the Numbers Buried in the Fine Print

When EPA’s long-awaited draft assessment on fracking and drinking water supplies was released, the oil and gas industry triumphantly focused on a headline-making sentence: “We did not find evidence of widespread, systemic impacts on drinking water resources in the United States.”

But for fracking’s backers, a sense of victory may prove to be fleeting.

EPA’s draft assessment made one thing clear: fracking has repeatedly contaminated drinking water supplies (a fact that the industry has long aggressively denied).

New Research Confirms Earthquake Swarms Caused by Oil and Gas Industry

The evidence establishing that the oil and gas industry is causing earthquakes grew much stronger last week, as two scientific papers clarified exactly how human activity is driving the swarm of quakes that has afflicted Oklahoma for the past six years.

For decades, earthquakes were rare in the central US. Since the 1970’s, two dozen quakes over magnitude 3.0 shook the region in an average year and larger quakes were even more rare.

But since 2009, right when the drilling industry’s wastewater production started spiking, the number of earthquakes has been skyrocketing, with 688 quakes that size hitting the region in 2014 — and 2015 is on track to be even more seismically active.

This means, Oklahoma has been hit by more quakes in the past year and a half than were felt in the entire 36 year-span from 1973 through 2008.

EPA Study: Fracking Puts Drinking Water Supplies at Risk of Contamination

The Environmental Protection Agency has released its long awaited draft assessment of the impacts that fracking has on the nation's drinking water supplies — confirming that the process does indeed contaminate water.

“From our assessment, we conclude there are above and below ground mechanisms by which hydraulic fracturing activities have the potential to impact drinking water resources,” the EPA wrote.

The impacts take a variety of forms, the EPA wrote, listing the effects of water consumption especially in arid regions or during droughts, chemical and wastewater spills, “fracturing directly into underground drinking water resources,” the movement of liquids and gasses below ground “and inadequate treatment and discharge of wastewater.”

The agency wrote that it had documented “specific instances” where each of those problems had in fact happened and some cases where multiple problems combined to pollute water supplies.

Will Re-Fracking be the Shale Drilling Industry's Next Big Move?

With oil prices continuing to languish, companies like Halliburton and Schlumberger have started talking up a way to get more shale oil and gas for less money: re-fracking wells drilled over the past 10 years, kick-starting flagging production and pumping out more shale oil and gas while spending less than the cost of a new well.

Excitement has spread among oil companies and investment analysts alike.

Environmental Groups File Lawsuit Objecting to Shortcomings, Loopholes in New Federal Oil Train Safety Standards

The battle over oil train regulation is heating up, as both the oil and gas industry and a coalition of environmental groups have now filed lawsuits challenging new Department of Transportation regulations this week.

The move to the courtroom comes following a string of oil train explosions in the U.S. and Canada so far this year and in a passenger train wreck in Philadelphia on Tuesday night that killed 8.

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