Gas Industry

Fri, 2012-08-03 05:00Steve Horn
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Delaware Tax Haven: The Other Shale Gas Industry Loophole

Most people think of downtown Houston, Texas as ground zero for the oil and gas industry. Houston, after all, serves as home base for corporate headquarters of oil and gas giants, including the likes of BP America, ConocoPhillips, and Shell Oil Company, to name a few.

Comparably speaking, few would think of Wilmington, Delaware in a similar vein. But perhaps they should, according to a recent New York Times investigative report by Leslie Wayne.

Wayne's story revealed that Delaware serves as what journalist Nicholas Shaxson calls a “Treasure Island” in his recent book by that namesake. It's an “onshore tax haven” and an even more robust one than the Caymen Islands, to boot.

The Delaware “Island” is heavily utilized by oil and gas majors, all of which are part of the “two-thirds of the Fortune 500” corporations parking their money in The First State.

Delaware is an outlier in the way it does business,” David Brunori, a professor at George Washington Law School told The Times. “What it offers is an opportunity to game the system and do it legally.”

The numbers are astounding. “Over the last decade, the Delaware loophole has enabled corporations to reduce the taxes paid to other states by an estimated $9.5 billion,” Wayne wrote

“More than 900,000 business entities choose Delaware as a location to incorporate,” explained another report. “The number…exceeds Delaware's human population of 850,000.”

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.

Sat, 2012-06-16 08:00Guest
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Fracking Industry’s Answer to “Gasland”: Devised by Astroturf Lobbying Group and Political Ad Agency

This is a guest post by Ben Nelson from Public Accountability Initiative that originally appeared on LittleSis.

Truthland, a 35-minute compilation of interviews with fracking proponents, is being promoted by the oil and natural gas industry’s PR arm, Energy In Depth, as an answer to the 2010 anti-fracking film Gasland. The advertising campaign for Truthland emphasizes that it documents the concerns of “a Susquehanna County mom, dairy farmer and teacher” who is “the real deal,” as opposed to Josh Fox, the writer and director of Gasland and “a spoiled avant-garde showman from New York City,” in the words of EID's Northeast Marcellus campaign director, Tom Shepstone.

While the new film's protagonist, Shelly DePue, is indeed a farmer from rural Pennsylvania, the notion that Truthland is a depiction of her independently-planned road trip around the United States to “find out just what the truth was” became less and less believable the more we examined it. Rather, the film and its “full-scale website and social media campaign” was planned from start to finish by the natural gas industry.Even its web domain, truthlandmovie.com, was registered by industry giant Chesapeake Energy:

chkdomainregistration

Thu, 2011-12-01 14:43Steve Horn
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LNG Groundhog Day: Cheniere Energy Signs Yet Another Gas Export Deal on Gulf Coast

Credit: Oleksandr Kalinichenko / Shutterstock

Another day, another unconventional gas export deal signed. Nascent North American LNG (liquefied natural gas) export deals are happening so fast and furiously that it is hard to keep track of them all.

The latest: On November 21, Cheniere Energy Partners signed a 20-year LNG export deal with Gas Natural Fenosa, an energy company which operates primarily in Spain but also in such countries as Italy, Mexico, Colombia, Argentina, and Morocco. Cheniere will maintain the Sabine Pass LNG export terminal located off of Sabine Lake between Texas and Louisiana, which feeds into the Gulf of Mexico, while Gas Natural Fenosa will ship the gas to the global market.

Cheniere, which made waves when its CEO Charif Souki announced that his corporation's business model would center exclusively around LNG export terminals, also recently signed a 20-year export deal with BG Group, short for British Gas Group.

Like the recent export deal with BG Group, which involves carrying fracked unconventional gas from various shale basins around the United States via pipelines to the Sabine Pass LNG export terminal, the Gas Natural Fenosa deal also centers around the export of gas from Sabine Pass to the global market.

Fri, 2011-09-23 16:21Carol Linnitt
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"It Can't All Be True": Canadian Government Launches New Fracking Studies

According to Environmental Minister Peter Kent, the Canadian government is entering into the shale gas debate by launching two simultaneous studies of fracking and its impacts on the environment.  Environment Canada is pursuing an in-house review of the controversial fracking process, while the Council of Canadian Academies will lead an independent investigation to provide an expert assessment of the science and environmental impacts associated with fracking.

Both federal and provincial governments have traditionally supported the development of the country’s rich unconventional gas deposits. Yet growing opposition has led to civil discontent in some areas like Quebec, where concern over fracking’s environmental impact resulted in a moratorium while a more thorough scientific review is conducted.
 
Quebec’s cautionary approach has prompted others to ask why provinces like British Columbia, Alberta, and New Brunswick, where there is equal cause for concern, are not taking a similar science-based approach. But the federal government has met calls for independent investigations and environmental evaluation with silence.
Wed, 2011-09-14 12:33Carol Linnitt
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Battle for Fracking Public Perception Lost, Says Gas Industry Insider

The gas industry has not done itself any favors by downplaying the risks associated with fracking, something the industry is apparently just realizing. Labeling affected citizens ‘fracktivists’ or ‘uneducated’ in order to delegitimize their complaints has only emphasized the industry’s callousness and inability to respond to real fears in a meaningful way. People trust the industry less than ever before, and with increased drilling across the globe, discontent is becoming even more widespread.

 
Now, after more than a decade of reckless drilling mishaps and a strengthening anti-fracking movement, the industry is willing to admit they’ve lost the public perception battle. From the outside this looks like a perfect opportunity for the industry to become more transparent and accountable. Instead this admission has only strengthened the industry’s resolve to up the communications ante
Sat, 2011-09-10 07:15Carol Linnitt
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More Than a War of Words: Gas Industry Plays Fracking Victim

Evoking an emotional response in one’s audience is a rhetorical means of persuasion well documented since Aristotle. But like Aristotle writes in his Rhetoric, if the reliable character of the speaker isn’t enough to convince a crowd, an emotional appeal might be the next best route to getting what you want – a strategy that is evidently well suited to a powerful but untrustworthy voice, like that of the gas industry.

The oil and gas industry's chief spokespeople have become rhetorical masters, the veritable trailblazers of the devolution of public relations into spin and misinformation campaigns. They probably have a thing or two to teach Aristotle about the art of persuasion and conjuring. Take climate science for example, where the industry has conjured up a ‘climate change debate’ out of thin air, or warming air for that matter. With a few flicks of the rhetorical wand a ‘debate’ over the anthropogenic warming of the climate began, despite an overwhelming consensus on the matter from the world’s leading scientists.  

But we’ve long passed the point where we take industry at its word. We have become too skeptical to trust the ‘character of the speaker’ and the industry knows this all too well. Hence the blatant emotional play at work in so much oil and gas industry public relations. 

Most recently the gas industry has chosen to play victim in a rather surprising aspect of the fracking controversy – its language.
Mon, 2011-08-22 20:05Brendan DeMelle
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Halliburton CEO Instructs Underling To Sip New Fracking Fluid At Gas Industry Conference

Halliburton Chief Executive Officer Dave Lesar touted the safety of the company’s new CleanStim fracking fluid during a keynote address at a gas industry conference in Colorado earlier this month. Lesar was so confident in the safety of CleanStim, he was willing to drink it. Er, not exactly. He didn’t imbibe himself, but handed the fracking fluid over to one of his underlings, an unnamed Halliburton executive, who took a “swig” of the fracking fluid according to the Associated Press report filed tonight.

Although Halliburton acknowledges that CleanStim is “not intended for human consumption,” it boasts that the new fracking fluid is made with “ingredients from the food industry.”

The “executive drinks own chemical” trick shows that Halliburton is clearly stepping up its PR game in the face of growing public concern over the controversial fracking process.

It is great that Halliburton has created a supposedly safe fracking fluid, don’t get me wrong. But CleanStim isn’t the formula that is in widespread use at gas fracking operations around the country right now. The public still has no clue about the exact formulas the industry is using currently (because the industry doesn’t want the public to know). But what little information we do have is that most current formulas are likely to contain a laundry list of cancer-causing chemicals.

Wed, 2011-08-10 12:23Carol Linnitt
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Communities At Risk from Gas Industry Air Pollution - Interview with NRDC's Amy Mall

Global Community Monitor

The Colorado Oil and Gas Conservation Commission is busy trying to figure out why communities near gas production facilities are experiencing life-threatening levels of hydrogen sulfide. At low levels hydrogen sulfide can cause respiratory distress, headaches, and loss of motor control, while at high levels can cause nausea, vomiting, shock, convulsions and death. 

In June, air samples taken near a gas well pad in Colorado showed hydrogen sulfide levels at 185 times the safety limit set by the Environmental Protection Agency.  The highly toxic gas was discovered by a group of vigilante air testers called the Bucket Brigade, working with the Global Community Monitor program to expose industrial polluters.

The investigation, led by a coalition of citizen and environmental organizations, collected nine air samples near gas drilling operations in Colorado and New Mexico. They discovered a total of 22 toxic chemicals in their community air, of which four are known to cause cancer. These industrial pollutants were discovered at levels 3 to 3000 times greater than official human safety thresholds.

Wed, 2011-08-03 15:24Carol Linnitt
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Environmental Working Group Reveals EPA Knowledge of Water Contamination From Fracking

Hydraulic fracturing, or fracking, has been known by the EPA to contaminate underground sources of drinking water since 1987. In a 25-year old investigative report, discovered by the Environmental Working Group (EWG) and Earthjustice, the EPA outlines how fracking for shale gas contaminated a domestic water well in West Virginia.

In a full-length report, called “Cracks in the Façade,” the EWG describes how the uncovered document contradicts the gas industry’s claim that there are no documented cases of water contamination due to fracking. 

The EPA found that fluid from a shale gas well more than 4,000 feet deep contaminated well water and that the incident was “illustrative” of pollution problems associated with oil and gas drilling. With now-uncharacteristic candor, the EPA report outlines how the contamination occurs: “During the fracturing process…fractures can be produced, allowing migration of native brine, fracturing fluid and hydrocarbons from the oil or gas well to a nearby water well. When this happens, the water well can be permanently damaged and a new well must be drilled or an alternative source of drinking water found.”

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