national treatment

Wed, 2013-09-25 05:00Sharon Kelly
Sharon Kelly's picture

What a Secretly-Negotiated Free Trade Agreement Could Mean for Fracking in the U.S.

A trade agreement being secretly negotiated by the Obama administration could allow an end run by the oil and gas industry around local opposition to natural gas exports. This agreement, called the Trans-Pacific Partnership, is being crafted right now – and the stakes for fracking and shale gas are high.

While the vast majority of the opposition to fracking in the US has focused on domestic concerns – its impact on air and water, local land rights, misleading information about its finances – less attention has been paid to a topic of colossal consequence: natural gas exports.

At least 15 companies have filed applications with the federal Department of Energy to export liquified natural gas (LNG). The shale gas rush has caused a glut in the American market thanks to fracking, and now the race is on among industry giants to ship the liquefied fuel by tanker to export markets worldwide, where prices run far higher than in the U.S.

As drilling has spread across the U.S., grassroots organizing around unconventional oil and gas drilling and fracking has grown to an unprecedented level in many communities. Public hearings and town halls from New York to California have been flooded with concerned scientific experts, residents and small business owners and farmers who stand to be impacted by the drilling boom.

Drilling advocates have become increasingly concerned about how grassroots organizing has expanded over the past 5 years. “Meanwhile, the oil and gas industry has largely failed to appreciate social and political risks, and has repeatedly been caught off guard by the sophistication, speed and influence of anti-fracking activists,” one consultant warned the industry last year.

Some of the most resounding setbacks the drilling industry has faced have come at the state or local level. Bans and moratoria have led drilling companies to withdraw from leases in parts of the country, abandoning, at least for the short term, plans to drill.

But when it comes to natural gas exports – which many analysts have said are key for the industry’s financial prospects –independent experts and local organizers may soon find themselves entirely shut out of the decision-making process, if the oil and gas industry has its way.

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