unconventional gas

Thu, 2014-05-01 12:06Steve Horn
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Gulf Stream: Williams Suspends Bluegrass Gas Export Pipeline, Announces New Export Line

Right before the champagne bottles began popping for activists engaged in a grassroots struggle to halt the construction of Williams Companies' prospective Bluegrass Pipeline project — which the company suspended indefinitely in an April 28 press release — Williams had already begun raining on the parade.

The pipeline industry giant took out the trash on Friday, April 25, announcing its intentions to open a new Louisiana pipeline named Gulf Trace.

Akin to TransCanada's ANR Pipeline recently reported on by DeSmogBlog, Gulf Trace is not entirely “new,” per se. Rather, it's the retooling of a pipeline system already in place, in this case Williams' Transco Pipeline system

The retooling has taken place in the aftermath of Cheniere's Sabine Pass LNG export facility receiving the first ever final gas export permit from the U.S. Federal Energy Regulatory Commission (FERC) during the fracking era.

Williams' Transco Pipeline System; Photo Credit: William Huston

Both ANR and Gulf Trace will feed into Sabine Pass, the Louisiana-based LNG export terminal set to open for business in late 2015Also like ANR, Transco will transform into a gas pipeline flowing in both directions, “bidirectional” in industry lingo.

Bluegrass, if ever built, also would transport fracked gas to the Gulf Coast export markets. But instead of LNG, Bluegrass is a natural gas liquids pipeline (NGL)

“The project…is designed to connect [NGLs] produced in the Marcellus-Utica areas in the U.S. Northeast with domestic and export markets in the U.S. Gulf Coast,” it explained in an April 28 press release announcing the project's suspension. 

Wed, 2014-04-23 12:18Steve Horn
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Vice President Joe Biden Promotes U.S. as Fracking Missionary Force On Ukraine Trip

During his two-day visit this week to Kiev, Ukraine, Vice President Joe Biden unfurled President Barack Obama's “U.S. Crisis Support Package for Ukraine.”

A key part of the package involves promoting the deployment of hydraulic fracturing (“fracking”) in Ukraine. Dean Neu, professor of accounting at York University in Toronto, describes this phenomenon in his book “Doing Missionary Work.” And in this case, it involves the U.S. acting as a modern-day missionary to spread the gospel of fracking to further its own interests.     

With the ongoing Russian occupation of Crimea serving as the backdrop for the trip, Biden made Vladimir Putin's Russia and its dominance of the global gas market one of the centerpieces of a key speech he gave while in Kiev.

“And as you attempt to pursue energy security, there’s no reason why you cannot be energy secure. I mean there isn’t. It will take time. It takes some difficult decisions, but it’s collectively within your power and the power of Europe and the United States,” Biden said.

“And we stand ready to assist you in reaching that. Imagine where you’d be today if you were able to tell Russia: Keep your gas. It would be a very different world you’d be facing today.”

The U.S. oil and gas industry has long lobbied to “weaponize” its fracking prowess to fend off Russian global gas market dominance. It's done so primarily in two ways.

One way: by transforming the U.S. State Department into a global promoter of fracking via its Unconventional Gas Technical Engagement Program (formerly the Global Shale Gas Initiative), which is a key, albeit less talked about, part of President Obama's “Climate Action Plan.”

The other way: by exporting U.S. fracked gas to the global market, namely EU countries currently heavily dependent on Russia's gas spigot. 

In this sense, the crisis in Ukraine — as Naomi Klein pointed out in a recent article — has merely served as a “shock doctrine” excuse to push through plans that were already long in the making. In other words, it's “old wine in a new bottle.”

Fri, 2014-04-18 10:28Steve Horn
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"Russia with Love": Alaska Gas Scandal is Out-of-Country, Not Out-of-State

A legal controversy — critics would say scandal — has erupted in Alaska's statehouse over the future of its natural gas bounty.

It's not so much an issue of the gas itself, but who gets to decide how it gets to market and where he or she resides.

The question of who owns Alaska's natural gas and where they're from, at least for now, has been off the table. More on that later.

At its core, the controversy centers around a public-private entity called the Alaska Gasline Development Corporation (AGDC) created on April 18, 2010 via House Bill 369 for the “purpose of planning, constructing, and financing in-state natural gas pipeline projects.” AGDC has a $400 million budget funded by taxpayers. 

AGDC was intially built to facilitate opening up the jointly-owned ExxonMobil-TransCanada Alaska Pipeline Project for business. That project was set to be both a liquefied natural gas (LNG) export pipeline coupled with a pipeline set to bring Alaskan gas to the Lower 48.    

Photo Credit: TransCanada

Things have changed drastically since 2010 in the U.S. gas market though, largely due to the hydraulic fracturing (“fracking”) boom. And with that, the Lower 48 segment of the Alaska Pipeline Project has become essentially obsolete.

Dreams of exporting massive amounts of Alaskan LNG to Asia, however, still remain. They were made much easier on April 14, when the Kenai LNG export facility received authorization to export gas from the U.S. Department of Energy.

Tue, 2014-04-01 23:16Steve Horn
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"Our Energy Moment": The Blue Engine Behind Fracked Gas Exports PR Blitz

Behind nearly every major corporate policy push there's an accompanying well-coordinated public relations and propaganda campaign. As it turns out, the oil and gas industry's push to export liquefied natural gas (LNG) obtained via hydraulic fracturing (“fracking”) plays the same game.

And so on February 5, “Our Energy Moment” was born. The PR blitz is described in a press release announcing the launch as a “new coalition dedicated to raising awareness and celebrating the many benefits of expanded markets for liquefied natural gas.”

Its member list includes industry heavy hitters such as Cheniere Energy, Sempra Energy, Louisiana Oil and Gas Association and Freeport LNG.

Since its launch, “Our Energy Moment” has disseminated press releases about the U.S. Department of Energy's (DOE) conditional approval of Jordan Cove LNG export facility in Coos Bay, Oregon and its conditional approval of Cameron LNG export facility in Hackberry, Louisiana.  

So the industry is funding a PR campaign clearly in its self interest. But so what? You have to read all the way to the bottom of the press releases to find what's perhaps the most interesting tidbit. 

At the very bottom of “Our Energy Moment's” releases, a contact person named Tiffany Edwards is listed with an email address ending in @blueenginemedia.com. If you visit blueenginemedia.com you'll find the website for PR and advertising firm Blue Engine Message & Media

Further, a domain name search for ourenergymoment.org reveals the website was registered by another PR and web development firm called Liberty Concepts by its founder and president Jonathan Karush. Karush registered the site on May 8, 2013, a full ten months before the campaign's official launch date. 

Who are these firms and why do they matter? That's where the fun begins.

Wed, 2014-03-26 11:54Steve Horn
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Admiral Dennis Blair: "We Sent Troops to Middle East...Because of Oil-Based Importance of Region"

At the just-completed U.S. House Committee on Foreign Affairs hearing titled, “The Geopolitical Potential of the U.S. Energy Boom,” Admiral Dennis Blair — former Director of National Intelligence, President and CEO of Institute for Defense Analyses and Commander in Chief of U.S. Pacific Command — admitted what's still considered conspiratorial to some.

Put tersely: the U.S. and allied forces launched the ongoing occupation in Iraq and occupy large swaths of the Middle East to secure the flow of oil to the U.S. and its global allies, explained Blair. 

Blair began his analysis lasting just over a minute after a line of questioning (beginning at 1:02:56 in the video below) coming from U.S. Rep. Jeff Duncan (R-SC) about TransCanada's Keystone XL tar sands pipeline, “energy as an instrument of geopolitical power” and geopolitical tensions in Venezuela. 

Mon, 2014-03-17 13:39Steve Horn
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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
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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.

Wed, 2014-02-19 10:27Steve Horn
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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
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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.”

Fri, 2014-01-24 16:00Steve Horn
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Citing DeSmogBlog Series, "FrackNation" Screening Cancelled by MN Film Festival

FrackNation,” the documentary film about hydraulic fracturing (“fracking”) with close conservative movement ties, recently had its showing cancelled at Winona, Minnesota's annual Frozen River Film Festival (FRFF).

Citing DeSmogBlog's two-part investigative series published in May 2013 on “FrackNation,” FRFF Director Mike Kennedy told the Winona Post his rationale for cancelling the film is that it was, “pretty apparent they were paid to make these movies to counter Gasland [Part II].”

“DeSmogBlog.com appears to be the main source of allegations that 'FrackNation' was industry-funded,” wrote the Post. “DeSmogBlog claims connections between [film Co-Director Phelim] McAleer and conservative groups, industry groups help[ing] promote the film after its was made, and the fact that McAleer directed an industry-funded documentary in the past, as proof that 'FrackNation' is cut from the same cloth.”

The cancellation has caused a major kerfuffle in conservative media circles, covered by outlets ranging from Fox News, Fox BusinessThe Blaze TVTown Hall, Watchdog.orgHot Air and others. McAleer was a featured guest on “Fox and Friends” on January 23. 

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