hydraulic fracturing

Mon, 2014-03-17 13:39Steve Horn
Steve Horn's picture

Why ExxonMobil's Partnerships With Russia's Rosneft Challenge the Narrative of U.S. Exports As Energy Weapon

In a long-awaited moment in a hotly contested zone currently occupied by the Russian military, Ukraine's citizens living in the peninsula of Crimea voted overwhelmingly to become part of Russia.

Responding to the referendum, President Barack Obama and numerous U.S. officials rejected the results out of hand and the Obama Administration has confirmed he will authorize economic sanctions against high-ranking Russian officials.

“As I told President Putin yesterday, the referendum in Crimea was a clear violation of Ukrainian constitutions and international law and it will not be recognized by the international community,” Obama said in a press briefing. “Today I am announcing a series of measures that will continue to increase the cost on Russia and those responsible for what is happening in Ukraine.” 

But even before the vote and issuing of sanctions, numerous key U.S. officials hyped the need to expedite U.S. oil and gas exports to fend off Europe's reliance on importing Russia's gas bounty. In short, gas obtained via hydraulic fracturing (“fracking”) is increasingly seen as a “geopolitical tool” for U.S. power-brokers, as The New York Times explained. 

Perhaps responding to the repeated calls to use gas as a “diplomatic tool,” the U.S. Department of Energy (DOE) recently announced it will sell 5 million barrels of oil from the seldom-tapped Strategic Petroleum Reserve. Both the White House and DOE deny the decision had anything to do with the situation in Ukraine.

Yet even as some say we are witnessing the beginning of a “new cold war,” few have discussed the ties binding major U.S. oil and gas companies with Russian state oil and gas companies.

The ties that bind, as well as other real logistical and economic issues complicate the narrative of exports as an “energy weapon.”

Mon, 2014-03-10 06:00Steve Horn
Steve Horn's picture

Testimony Reveals Record 36% of North Dakota Fracked Gas Was Flared in December

The recent March 6 House Energy & Commerce Subcommittee on Energy and Power hearing titled “Benefits of and Challenges to Energy Access in the 21st Century: Fuel Supply and Infrastructure” never had over 100 online viewers watching the livestream at any point in time. And it unfolded in an essentially empty room. 

But the poor attendance record had no relation to the gravity of the facts presented by testifiers. Among other things, one presenter revealed 36 percent of the gas by-product from oil obtained via hydraulic fracturing (“fracking”) in North Dakota's Bakken Shale basin was flared off as waste during a brutally cold midwest winter with no end in sight.

These damning facts were brought forward by Coalition for Environmentally Responsible Economies (Ceres) Oil & Gas and Insurance Programs Director Andrew Logan, one of eight people called to testify around topics ranging from domestic propane markets to fossil fuels-by-rail markets, to pipeline markets and flaring. 

A topic covered previously by DeSmogBlog, Logan submitted to the Subcommittee that flaring “is getting worse, not better.”

“Flaring in North Dakota hit 36% in December, a new record,” Logan told the subcommittee“This means that more than 1/3 of all natural gas produced in the state is going up in smoke, at the same time as consumers around the country are seeing price spikes from natural gas in this cold winter, along with actual shortages of propane in many places.”

Logan also said that wasteful flaring is also a growing quagmire in Texas, which has seen a 10-fold increase in flaring permits since 2010.

At least one influential Subcommittee member has taken notice.

Tue, 2014-03-04 05:00Sharon Kelly
Sharon Kelly's picture

The View from Europe: America’s Shale Boom Looks More Like a Blip

The fracking boom has progressed at breakneck speed across the U.S., with roughly one in 20 Americans now living within a mile of a well drilled since 2000.

So, how much has the economy benefitted from this drilling surge?

Not much, according to a report presented to the European Union Parliament last month, which found “no evidence that shale gas is driving an overall manufacturing renaissance in the US.”

The shale boom’s economic contributions are very narrow, inflating local economies in places where drilling is intense but generating little impact on the country’s overall economic growth, the Institute for Sustainable Development and International Relations, a French think tank, concluded.

Although natural gas prices have fallen from their highs in 2008, benefitting consumers, those low levels are unlikely to be sustained and the U.S. is still expected to remain heavily reliant on importing crude oil, the researchers found.

Even using very optimistic assumptions, the report said, the industry’s cumulative long term effect on America’s Gross Domestic Product (GDP) will be less than one percent. “Despite very low and ultimately unsustainable short-term prices of natural gas, the unconventional oil and gas revolution has had a minimal impact on the US macro-economy,”

That’s not the amount that shale gas will add to the economy each year, the researchers said. Instead, the industry will make up no more than 0.84 percent of total GDP between 2012 and 2035 – the years when the shale boom is projected to be at its height. To put that in context, the personal care products industry – hair styling, cosmetics and the like – contributed 1.4 percent of GDP in 2010 – nearly double the impact that the EU report found the shale gas rush could have.

Fri, 2014-02-28 13:14Carol Linnitt
Carol Linnitt's picture

Los Angeles Becomes Largest City to Approve Fracking Moratorium

Fracking for oil and gas will not be happening in Los Angeles any time soon after City Council members unanimously voted to ban the practice within city limits today. The vote passes the motion to the City Attorney's office where it will be rewritten as a zoning ordinance before returning to City Council for a final vote.

L.A. is now the largest city in the U.S. to refuse the dangerous extraction process. Local bans have become an effective protective measure against fracking, and are in place in numerous jurisdictions worldwide including Vermont, Hawaii, areas of New York State, Quebec, and France among many others.

The Los Angeles ordinance prevents the use of fracking until effective governmental oversight and regulation is in place at the local, state and federal levels.

I think we can all agree unregulated fracking is crazy,” said Councilman Paul Koretz, co-author of the motion.

California is in the midst of a devastating drought, raising concerns over access to fresh water supplies. Fracking uses approximately 5 million gallons of water per frack job.

Fri, 2014-02-28 05:00Julie Dermansky
Julie Dermansky's picture

Denton, Texas Citizens Group Fights For Fracking Ban

Maile Bush's three-bedroom home is sandwiched between two EagleRidge Energy fracking sites in Denton, Texas. Towering temporary walls block her view of the frack sites, but nothing can stop the noise, lights and fumes from infiltrating her property.

Bush’s formerly safe, quiet suburban neighborhood is now a dangerous industrial zone. Last October, when she learned about EagleRidge's plans to frack under the D.H. Horton subdivision her house is part of, ‘Meadows at Hickory Creek,' Bush started asking questions.

The answers she found — and the stress of living about 500 feet from one drill site and 800 feet from another — have caused constant strain on her family’s health.

Bush has been keeping her kids inside since the fracking started. She and her husband have been weighing relocation, but moving is costly and selling, difficult. In an interview with DeSmogBlog, Bush said,

“Who would want to buy my home now? My kids like their schools. My husband's job is here. And where would we move?”  

Any property available nearby would still be part of the Barnett Shale, where the fracking industry continues to grow.


Maile Bush inside her home with her kids, Kaden and Cassidy © 2014 Julie Dermansky

Wed, 2014-02-19 10:27Steve Horn
Steve Horn's picture

ALEC's Fracking Chemical Disclosure Bill Moving Through Florida Legislature

The American Legislative Exchange Council's (ALEC) model bill for disclosure of chemicals injected into the ground during the controversial hydraulic fracturing (“fracking”) process is back for a sequel in the Sunshine State legislature. 

ALEC's model bill was proposed by ExxonMobil at its December 2011 meeting and is modeled after a bill that passed in Texas' legislature in spring 2011, as revealed in an April 2012 New York Times investigative piece. ALEC critics refer to the pro-business organization as a “corporate bill mill” lending corporate lobbyists a “voice and a vote” on model legislation often becoming state law.

The bill currently up for debate at the subcommittee level in the Florida House of Representatives was originally proposed a year ago (as HB 743) in February 2013 and passed in a 92-19 vote, but never received a Senate vote. This time around the block (like last time except for the bill number), Florida's proposed legislation is titled the Fracturing Chemical Usage Disclosure Act (HB 71), introduced by Republican Rep. Ray Rodrigues. It is attached to a key companion bill: Public Records/Fracturing Chemical Usage Disclosure Act (HB 157).

HB 71 passed on a party-line 8-4 vote in the Florida House's Agriculture and Environment Subcommittee on January 14, as did HB 157. The next hurdle the bills have to clear: HB 71 awaits a hearing in the Agriculture and Environment Appropriations Subcommittee and HB 157 awaits one in the Government Operations Subcommittee.

Taken together, the two bills are clones of ALEC's ExxonMobil-endorsed Disclosure of Hydraulic Fracturing Fluid Composition Act. That model — like HB 71 — creates a centralized database for fracking chemical fluid disclosure. There's a kicker, though. Actually, two.

First kicker: the industry-created and industry-owned disclosure database itself — FracFocus — has been deemed a failure by multiple legislators and by an April 2013 Harvard University Law School studySecond kicker: ALEC's model bill, like HB 157, has a trade secrets exemption for chemicals deemed proprietary. 

Wed, 2014-02-12 05:00Steve Horn
Steve Horn's picture

Documents Reveal Calvert County Signed Non-Disclosure Agreement with Company Proposing Cove Point LNG Terminal

Co-authored by Steve Horn and Caroline Selle

DeSmogBlog has obtained documents revealing that the government of Calvert County, MD, signed a non-disclosure agreement on August 21, 2012, with Dominion Resources — the company proposing the Cove Point Liquefied Natural Gas (LNG) export terminal in Lusby, MD.  The documents have raised concerns about transparency between the local government and its citizens.

The proposal would send gas obtained via hydraulic fracturing (“fracking”) from the Marcellus Shale basin to the global market. The export terminal is opposed by the Chesapeake Climate Action Network, Maryland Sierra Club and a number of other local environment and community groups.

The Accokeek Mattawoman Piscataway Creeks Council (AMP Council), an environmental group based in Accokeek, MD, obtained the documents under Maryland's Public Information Act and provided them to DeSmogBlog.

Cornell University’s Law School explains a non-disclosure agreement is a “legally binding contract in which a person or business promises to treat specific information as a trade secret and not disclose it to others without proper authorization.”

Upon learning about the agreement, Fred Tutman, CEO of Patuxent Riverkeeper — a group opposed to the LNG project — told DeSmogBlog he believes Calvert County officials are working “in partnership with Dominion to the detriment of citizen transparency.”

We’re unhappy that it does seem to protect Dominion's interest rather than the public interest,” Tutman said. “The secrecy surrounding this deal has made it virtually impossible for anyone exterior to those deals, like citizens, to evaluate whether these are good transactions or bad transactions on their behalf.”

Wed, 2014-02-05 10:00Steve Horn
Steve Horn's picture

Keystone XL's Northern Leg: A Fracked Oil Pipeline Along with Tar Sands

On January 31, President Barack Obama's U.S. State Department released its Final Environmental Impact Statement (FEIS) for the northern leg of TransCanada's proposed Keystone XL tar sands pipeline.

The State Department's FEIS argues that the northern half of Keystone XL, if built, “remains unlikely to significantly impact the rate of extraction in the oil sands, or the continued demand for heavy crude oil at refineries in the United States.”

But flying under the media's radar so far, the State Department review also highlights the prospect that Keystone XL will not only carry tar sands, but also be tapped to carry up to 100,000 barrels per day of oil extracted via hydraulic fracturing (“fracking”) from North Dakota's Bakken Shale basin.

“[Keystone XL] would have the capacity to deliver up to 830,000 bpd, of which 730,000 bpd of capacity has been set aside for [tar sands] and the remaining 100,000 bpd of capacity set aside for [Bakken] crude oil,” the report details.

“[TransCanada] has represented that it has firm commitments to transport approximately 555,000 bpd of [tar sands], as well as 65,000 bpd of crude oil from the Bakken.”

A smaller proposed project owned by TransCanada called the Bakken MarketLink pipeline and incorporated as Keystone Marketlink LLC in February 2011, would ship the fracked oil to Keystone XL's northern leg as an “on ramp.” 

“This project would include a 5-mile pipeline, pumps, meters, and storage tanks to supply Bakken crude oil to the proposed pipeline,” explains the FEIS.

Wed, 2014-02-05 05:00Sharon Kelly
Sharon Kelly's picture

At State and Federal Level, Regulators Continue to Struggle With Fracking Wastewater

The oil and gas industry often complains about the patchwork of rules that exist from state to state and county to county. They say that the rules are so variable that it’s like having to get a new driver’s license every time you drive across a state line. Public safety advocates suggest a simple fix: federal oversight of drilling. Standardize the rules. But the drilling industry recoils at the very notion.

Several recent developments illustrate exactly why. Witness the two diametrically opposed directions federal and state regulators are heading. Officials at the U.S. Environmental Protection Agency, on the one hand, are considering strengthening rules on how oil and gas wastewater is handled by classifying some of it as hazardous waste. Meanwhile, state regulators in Pennsylvania, where the most active Marcellus shale drilling is currently underway, are considering a move to loosen wastewater rules.

Pennsylvania is currently poised to enact rules that would encourage oil and gas companies to use the heavily polluted wastewater from abandoned coal mines, called acid mine drainage, instead of fresh water. While supporters of this rule change say it’s a win-win situation for the environment and for drillers, opponents of the bill say that a key incentive in the bill goes overboard and could wind up creating worse problems down the road.

Tue, 2014-02-04 20:29Sharon Kelly
Sharon Kelly's picture

Risks of Fracking Boom Draw Renewed Attention from Investors

A coalition of investors called out five oil and gas companies for failing to measure or reduce risks associated with fracking on Tuesday, singling out companies both large and small for how they’ve handled the myriad risks associated with shale oil and gas extraction.

Shareholders in five companies — ExxonMobil, Chevron, EOG Resources, Occidental Petroleum and Pioneer Resources — filed resolutions objecting to the ways that the companies describe the risks of hydraulic fracturing and their failures to reduce the environmental and social impacts of fracking.

“The damaging impacts of hydraulic fracturing on air, water, and local communities have made the public understandably nervous and resistant to permitting this controversial industrial activity,” said Leslie Samuelrich, President of Green Century Capital Management, which together with the New York State Comptroller Thomas DiNapoli, filed the resolution at EOG Resources.

“Companies that fail to demonstrate a public commitment to identifying and mitigating their impacts will fail to earn the public trust,” she added, “and may put shareholder value at risk.”

Four of the five companies – ExxonMobil, Chevron, EOG Resources, and Occidental Petroleum –  received failing scores in a recent report that examined how companies disclosed the impact of fossil fuel extraction and graded their efforts to mitigate risks. Disclosing the Facts: Transparency and Risk in Hydraulic Fracturing Operations focused on 24 companies that use fracking, assessing the ways each handled toxic chemicals, water and waste, air emissions, community impacts, and governance. EOG Resources received a score of 6 out of 32, Chevron a score of 3, ExxonMobil and Occidental Petroleum each got a score of just 2.

That has some investors, including those overseeing New York City’s pension fund, worried.

Pages

Subscribe to hydraulic fracturing