Regulatory Train Wreck

Tue, 2012-10-23 05:00Steve Horn
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As You Sow: Coal Investments, Shale Gas, a Bad Bet

In a missive titled “White Paper: Financial Risks of Investments in Coal,” As You Sow concludes that coal is becoming an increasingly risky investment with each passing day. The fracking boom and the up-and-coming renewable energy sector are quickly superseding King Coal's empire as a source of power generation, As You Sow concludes in the report.

As You Sow chocks up King Coal's ongoing demise to five factors, quoting straight from the report:

1. Increasing capital costs for environmental controls at existing coal plants and uncertainty about future regulatory compliance costs

2. Declining prices for natural gas, a driver of electric power prices in competitive markets

3. Upward price pressures and price volatility of coal

4. High construction costs for new coal plants and unknown costs to implement carbon capture and storage

5. Increasing competitiveness of renewable generation resources

Thu, 2012-09-27 13:58Steve Horn
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Regulatory Non-Enforcement by Design: Earthworks Shows How the Game is Played

Earthworks Oil and Gas Accountability Project published a scathing 124-page report this week, “Breaking All the Rules: the Crisis in Oil & Gas Regulatory Enforcement.”

The content of the report is exactly as it sounds.

That is, state-level regulatory agencies and officials often aren't doing the jobs taxpayers currently pay them to do and aren't enforcing regulations on active oil and gas wells even when required to under the law.

This is both out of neglect and also because they're vastly understaffed and underfunded, meaning they literally don't have the time and/or resources to do proper inspections.

And on those rare instances when regulatory agencies and the regulators that work for them do enforce regulations on active oil and gas wells, Earthworks demonstrated that the penalties for breaking the rules are currently so weak that it's merely been deemed a tiny “cost of doing business” by the oil and gas industry.

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