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Tue, 2013-11-26 15:31Steve Horn
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Obama Approves Major Border-Crossing Fracked Gas Pipeline Used to Dilute Tar Sands

Although TransCanada's Keystone XL tar sands pipeline has received the lion's share of media attention, another key border-crossing pipeline benefitting tar sands producers was approved on November 19 by the U.S. State Department.

Enter Cochin, Kinder Morgan's 1,900-mile proposed pipeline to transport gas produced via the controversial hydraulic fracturing (“fracking”) of the Eagle Ford Shale basin in Texas north through Kankakee, Illinois, and eventually into Alberta, Canada, the home of the tar sands. 

Like Keystone XL, the pipeline proposal requires U.S. State Department approval because it crosses the U.S.-Canada border. Unlike Keystone XL - which would carry diluted tar sands diluted bitumen (“dilbit”) south to the Gulf Coast - Kinder Morgan's Cochin pipeline would carry the gas condensate (diluent) used to dilute the bitumen north to the tar sands.

“The decision allows Kinder Morgan Cochin LLC to proceed with a $260 million plan to reverse and expand an existing pipeline to carry an initial 95,000 barrels a day of condensate,” the Financial Post wrote

“The extra-thick oil is typically cut with 30% condensate so it can move in pipelines. By 2035, producers could require 893,000 barrels a day of the ultra-light oil, with imports making up 786,000 barrels of the total.”

Increased demand for diluent among Alberta's tar sands producers has created a growing market for U.S. producers of natural gas liquids, particularly for fracked gas producers.

“Total US natural gasoline exports reached a record volume of 179,000 barrels per day in February as Canada's thirst for oil sand diluent ramped up,” explained a May 2013 article appearing in Platts. ”US natural gasoline production is forecast to increase to roughly 450,000 b/d by 2020.”

Wed, 2012-11-14 06:58Steve Horn
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Shale Gas Bubble Bursting: Report Debunks "100 Years" Claim for Domestic Unconventional Oil and Gas

Food and Water Watch (FWW) released a report today titled “U.S. Energy Security: Why Fracking for Oil and Natural Gas Is a False Solution.” 

It shows, contrary to industry claims, there aren't 100 years of unconventional oil and gas sitting below our feet, even if President Barack Obama said so in his 2012 State of the Union Address. Far from it, in fact.

The report begs the disconcerting question: is the shale gas bubble on its way to bursting?

FWW crunched the numbers, estimating that there are, at most, half of the industry line, some 50 years of natural gas and much less of shale gas. This assumes the industry will be allowed to perform fracking in every desired crevice of the country. These are the same basins that advocates of hydraulic fracturing (“fracking”) claim would make the U.S. the “next Saudi Arabia.” 

“The popular claim of a 100-year supply of natural gas is based on the oil and gas industry’s dream of unrestricted access to drill and frack, and it presumes that highly uncertain resource estimates prove accurate,” wrote FWW. “Further, the claim of a century’s worth of natural gas ignores plans to export large amounts of it overseas and plans for more domestic use of natural gas to fuel transportation and generate electricity.”

Fri, 2012-07-06 03:00Steve Horn
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EOG Resources: The Gas Corporation That Does It All From Cradle to Grave

DeSmogBlog, on multiple occasions, has reported that the damage caused by hydraulic fracturing, or “fracking” in the unconventional oil and gas industry goes far beyond water contamination, put in the spotlight by the documentary film “Gasland.” The multi-pronged harms were tackled in a comprehensive manner in our report, “Fracking the Future.”

One corporation in particular, EOG Resources, epitomizes the shale gas lifecycle from cradle to grave and the damage it is causing in communities worldwide. 

Who is EOG? The Artist Formerly Known as Enron

EOG Resources – owned by CEO Mark Papa – is the born again sibling of the now disgraced corporation, Enron Oil and Gas, hence “EOG.” It is headquarted in Houston, TX.

Former President and Chief Opearing Officer of Enron, Richard Kinder, recently referred to by The Wall Street Journal as “The Luckiest Ex-Enron Employee,” now co-owns oil and gas industry pipeline giant, Kinder Morgan

After the fall of Enron, Kinder Morgan purchased Enron's pipeline assets and built up the Kinder Morgan behemoth into what it is today, the corporation with the most extensive array of pipelines in North America.

Fri, 2012-06-29 10:47Steve Horn
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Sand Land: Frac Sand Mining in Western Wisconsin - Video Report by DeSmogBlog

The rush to drill for unconventional gas, enabled by a process popularly known as “fracking,” or hydraulic fracturing, has brought with it much collateral damage. Close observers know about contaminated water, earthquakes, and climate change impacts of the shale gas boom, but few look at the entire life cycle of fracking from cradle to grave.

Until recently, one of the most underlooked facets of the industry was the “cradle” portion of the shale gas lifecycle: frac sand mining in the hills of northwestern Wisconsin and bordering eastern Minnesota, areas now serving as the epicenter of the frac sand mining world.

The silence on the issue ended after several good investigative stories were produced by outlets in the past year or so, such as Wisconsin WatchPR WatchThe Wisconsin State Journal, the Associated PressThe Wall Street JournalOrionEcoWatch, and most recently, Tom Dispatch. These various articles, all well worth reading, explain the land grab currently unfolding in the Midwest and the ecological damage that has accompanied it

To put it bluntly, there could be no shale gas extraction without the sand. As Tom Dispatch's Ellen Cantarow recently explained,

That sand, which props open fractures in the shale, has to come from somewhere. Without it, the fracking industry would grind to a halt. So big multinational corporations are descending on this bucolic region to cart off its prehistoric sand, which will later be forcefully injected into the earth elsewhere across the country to produce more natural gas. Geology that has taken millions of years to form is now being transformed into part of a system, a machine, helping to drive global climate change.

Frac sand, which consists of fine-grained sillica, can cause the respiratory illness, silicosis. Washing the frac sand in preparation for the fracking process is also a water intensive process, particularly threatening in the age of increasing water scarcity in the United States and around the world.

Wed, 2012-05-30 08:35Brendan DeMelle
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What Chesapeake Energy's Financial Scandals Mean For The Rest of Us

Given radioactive wastewater, earthquakes, and flammable tap water, one might think that drilling and fracking could not possibly have any more dirty secrets. But here’s the biggest secret of all: it’s expensive.

With natural gas at historic low prices – the Wall Street Journal ran a column recently suggesting that the price of gas might even sink to negative numbers, so that producers would need to pay buyers to take it off their hands – it may seem odd to think that fracking is costly. But it’s true. Not just in terms of its environmental footprint, but also in terms of its financial costs.

And everyone should care about how expensive gas is, especially those concerned about energy security and the environment, because the answer will determine the fate of renewables, the way we use land and water, and whether our nation’s energy policies are fundamentally sound.

To understand what’s going on, you need to look at Chesapeake Energy, the second largest producer of natural gas in the US, the company described by its founder and CEO Aubrey McClendon as the “biggest frackers in the world.”

For 19 of the past 21 years, the company has operated at what investors call “cash flow negative” – last year by $8.547 billion dollars – meaning that Chesapeake has consistently spent a whole lot more than it earned. For decades.

To fund all that fracking, the company has been flipping land, engaging in so many financial transactions that it’s been said to resemble a hedge fund more than a gas driller.

McClendon's company has become the environmental Enron, with Chesapeake's accountants creating some of the most labyrinthine and impenetrable books since Enron, according to some investors.

Mon, 2010-03-22 11:46Brendan DeMelle
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Institute for Energy Research Admits It Was Behind Anti-Wind Study

Danish journalists have confirmed that The Institute for Energy Research commissioned and paid for the anti-wind energy study released last year by a Danish think tank that claimed Denmark exaggerates the amount of wind energy it produces (it doesn’t), questioned whether wind energy reduces carbon emissions (it does), and asserted that the U.S. should choose coal over wind because it’s cheaper (it’s not when you count the true costs of coal).

The Copenhagen Post reports:
“A controversial report critical of the wind energy industry from conservative think tank CEPOS was commissioned and paid for by an American think tank with close ties to the coal and oil industries.”

That American think tank is the Institute for Energy Research, which has received $307,000 from ExxonMobil since 1998 and unknown additional sums from other oil and coal industry sources.  The Guardian reported last year that the Institute for Energy Research has received recent funding from KBR and trusts set up by Koch Industries, which has multiple ties to IER and its sister organization American Energy Alliance.

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