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Tue, 2014-06-03 18:00Steve Horn
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Days Before Obama Announced CO2 Rule, Exxon Awarded Gulf of Mexico Oil Leases

On Friday May 30, just a few days before the U.S. Environmental Protection Agency announced details of its carbon rule proposal, the Obama Administration awarded offshore oil leases to ExxonMobil in an area of the Gulf of Mexico potentially containing over 172 million barrels of oil.

The U.S. Department of Interior's (DOI) Bureau of Ocean Energy Management (BOEM) proclaimed in a May 30 press release that the ExxonMobil offshore oil lease is part of “President Obama’s all-of-the-above energy strategy to continue to expand safe and responsible domestic energy production.” 

Secretary of Interior Sally Jewell formerly worked as a petroleum engineer for Mobil, purchased as a wholly-owned subsidiary by Exxon in 1998.

Dubbed a “Private Empire” by investigative reporter Steve Coll, ExxonMobil will now have access to oil and gas in the Alaminos Canyon Area, located 170 miles east of Port Isabel, Texas. Port Isabel borders spring break and tourist hot spot South Padre Island.


Map Credit: U.S. Bureau of Ocean Energy Management

ExxonMobil originally won the three leases at the Western Planning Area Sale 233, held on March 19. BOEM records show ExxonMobil was the only company to participate in the bid and paid over $21.3 million.

Thu, 2014-05-29 17:00Steve Horn
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ND Treasurer: Red Carpet Rollout for Gen. Petraeus Fracking Field Trip "Not Unusual"

North Dakota Treasurer Kelly Schmidt has responded to DeSmogBlog's investigation of the Bakken Shale basin fracking field trip her office facilitated for former CIA Director Gen. David Petraeus, who now works at the Manhattan-based private equity firm Kohlberg Kravis Roberts (KKR)

Schmidt expanded on the initial comments she provided to DeSmogBlog in response to our findings obtained via North Dakota Open Records Statute. Among other things, she described the blurred lines existing between the North Dakota government, the oil industry and private equity firms like KKR as “not unusual.” 

Schmidt's comments came on May 23 on WDAY's Jay Thomas Show, guest hosted that day by Rob Port, just over three weeks after her office hosted Petraeus.

DeSmogBlog's May 22 investigative piece revealed that KKR — which has ties to North Dakota's hydraulic fracturing (“fracking”) boom via Samson Resources and The Ridge housing complex and considers itself a “mini oil and gas company” — wrote the press release for the Office of North Dakota State Treasurer announcing Petraeus' visit, closely counseled Schmidt's office on media strategy and hosted Schmidt on a company chartered private jet.

Fri, 2014-05-23 05:00Steve Horn
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Revealed: Former Energy in Depth Spokesman John Krohn Now at U.S. EIA Promoting Fracking

For those familiar with U.S. Energy Information Administration's (EIA) work, objectivity and commitment to fact based on statistics come to mind. Yet as Mark Twain once put it, “There are three kinds of lies: lies, damned lies, and statistics.”

That's where John Krohn comes into play. A former spokesman for the gas industry front group Energy in Depth (EID), Krohn now works on the Core Team for EIA's “Today in Energy!“ 

Krohn has been at EIA since at least January 2014, when his name first appeared on the EIA website. On his Twitter account, he describes himself as an EIA communications manager.

As DeSmog revealed in February 2011, Energy In Depth was launched with a heavy injection of funding from oil and gas industry goliaths such as BP, Halliburton, Chevron, Shell and XTO Energy (now owned by ExxonMobil).

With its public relations efforts conducted by FTI Consulting, EID now serves as a key pro-industry front group promoting unfettered hydraulic fracturing (“fracking”) to the U.S. public.

Krohn follows in the footsteps through the government-industry revolving door of the man President Barack Obama named to head the U.S. Department of Energy (DOE) for his second term, former Massachusetts Institute of Technology “frackademic,” Ernest Moniz. DOE is the parent agency for EIA

Further, EIA Administrator Adam Sieminski, another second-term appointee of President Obama, also passed through the same revolving door as Krohn and Moniz in his pathway to heading EIA. He formerly worked in the world of oil and gas finance. 

Thu, 2014-05-22 14:13Steve Horn
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Documents: Petraeus Fracking Field Trip Reveals ND Government, Oil, Private Equity Nexus

DeSmogBlog has obtained hundreds of documents portraying the blurred lines between North Dakota's government, the oil and gas industry and the private equity world. They also offer one of the first looks inside the professional life of former CIA Director Gen. David Petraeus after he resigned from the agency in 2012.

The documents reveal Kohlberg Kravis Roberts (KKR) — a private equity firm where Petraeus now works at the KKR Global Institute — wrote a press release for North Dakota's State Treasurer announcing the Petraeus visit, meticulously counseled the state treasurer's office on media strategy and hosted the state treasurer on its company plane.

A large part of Petraeus' visit centered around a tour of the state's Bakken Shale basin, where upwards of 1 million barrels of oil are extracted each day via hydraulic fracturing (“fracking”). The Bakken pumped out its billionth barrel of oil during his stay.

KKR, with $87 billion in assets, owns two major Bakken entities: The Ridge in Williston, ND, and Samson Resources.

The Ridge is a KKR-owned housing complex for Bakken oil and gas workers, while Samson Resources is a major company fracking for oil and gas throughout the U.S., including in the Bakken.  

With over $4 billion sitting in an energy investment fund as of June 2012, KKR also owns over $950 million in oil and gas industry assets. Marc Lipschultz, head of energy and infrastructure for KKR, called the firm a “mini oil and gas company“ in an April 2013 interview with Privcap.

“We have our own technical abilities attached to the firm we have our own back office [and] we can manage the daily flows of oil and gas in drilling wells and managing our own hedges,” said Lipschultz. 

Mon, 2014-05-19 18:00Steve Horn
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Southwestern Energy Executive Mark Boling Admits Fracking Link to Climate Change

An Executive* of a major shale gas development company has conceded what scientists have been saying for years: global shale gas development has the potential to wreak serious climate change havoc.

Best known for his company's hydraulic fracturing (“fracking”) activity, Southwestern Energy Executive Vice President* Mark Boling admitted his industry has a methane problem on the May 19 episode of Showtime's “Years of Living Dangerously” in a segment titled, “Chasing Methane.”

“I think some of those numbers, they certainly concern me,” Boling says on the show. “How could you say that that methane emission rate was one and a half percent - very, very difficult to there from here for that.” 

Boling goes toe to toe in the segment with Cornell University Professor Anthony Ingraffea, who co-authored the 2011 paper now best known as the “Cornell Study.”

That study was the first to say that over its entire lifecycle, shale gas production is dirtier than coal due to the greenhouse gas trapping capacity of leaking methane. Numerous studies since then have depicted high leakage rates throughout the production lifecycle. 


Cornell University Professor Anthony Ingraffea; Photo Credit: Cornell University

Brendan DeMelle, DeSmogBlog Executive Director and Managing Editor, is also a featured guest on tonight's episode. He discusses the well-funded climate change denial machine and attacks on renewable energy development in a segment titled, “Against the Wind.”

Mon, 2014-05-05 10:33Steve Horn
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For First Time, TransCanada Says Tar Sands Flowing to Gulf in Keystone XL South

TransCanada admitted for the first time that tar sands oil is now flowing through Keystone XL's southern leg, now rebranded the Gulf Coast Pipeline Project. The company confirmed the pipeline activity in its 2014 quarter one earnings call.

Asked by Argus Media reporter Iris Kuo how much of the current 300,000 to 400,000 barrels per day* of oil flowing from the Cushing, Oklahoma to Port Arthur, Texas pipeline is tar sands (“heavy crude,” in industry lingo), TransCanada CEO Russ Girling confirmed what many had already suspected.

“I don’t have that exact mix, but it does have the ability to take the domestic lights as well as any heavies that find a way down to the Cushing market, so it is a combination of the heavies and the lights,” said Girling. “I just don’t know what the percentage is.”

The Keystone Pipeline System — of which Keystone XL's northern leg is phase four of four phases — is and always has been slated to carry Alberta's tar sands to targeted markets. So the announcement is far from a shocker.


Image Credit: Wikimedia Commons

More perplexing is why it took so long for the company to tell the public that tar sands oil now flows through the half of the pipeline approved via a March 2012 Executive Order by President Barack Obama

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