shale

Sun, 2014-04-06 11:18Sharon Kelly
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Responding to Investor Pressure, ExxonMobil Agrees to Disclose Fracking Risks

ExxonMobil, the nation's largest oil and gas company, will begin disclosing risks associated with shale drilling and fracking to investors, in response to a long-running campaign by a coalition of shareholders.

In February, the groups of investors in a handful of major oil and gas companies including Exxon, Chevron and EOG Resources, demanded for the fifth year in a row more information from companies about the risks associated with fracking. The motion won the support of over 30 percent of Exxon shareholders — an unusually strong showing for a shareholder resolution.

On Thursday, the investors’ coalition announced that Exxon was the first company to agree to disclose risks. The company will publish a report by September that will describe fracking’s potential harm to air quality, water and roads, as well as risks associated with the chemicals used. Exxon agreed to follow criteria identified in a 2013 report, cited by the coalition and called Disclosing the Facts: Transparency and Risk in Hydraulic Fracturing Operations, in which Exxon received a failing grade for its transparency.

We have seen the significant risks that come from hydraulic fracturing activities,” said New York City Comptroller Scott M. Stringer, custodian and investment advisor for the New York City Pension Funds’ $144 billion in assets, including $1.02 billion in ExxonMobil stock. “Corporate transparency in this arena is truly necessary for assessing risk and ensuring that all stakeholders have the information they need to make informed decisions.”

However, Exxon’s first report will not disclose data on methane leaks – information that shareholders argued strongly should be made public. Natural gas is primarily made of methane, a potent greenhouse gas that has climate changing effects over 80 times more powerful than carbon dioxide during the first two decades after it escapes to the Earth’s atmosphere.

Thu, 2013-11-07 09:00Sharon Kelly
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Could California's Shale Oil Boom Be Just a Mirage?

Since the shale rush took off starting in 2005 in Texas, drillers have sprinted from one state to the next, chasing the promise of cheaper, easier, more productive wells. This land rush was fueled by a wild spike in natural gas prices that helped make shale gas drilling attractive even though the costs of fracking were high.

As the selling price of natural gas sank from its historic highs in 2008, much of the luster wore off entire regions that had initially captivated investors, like Louisiana’s Haynesville shale or Arkansas’s Fayetteville, now in decline.

But unlike natural gas prices, oil prices remain high to this day, and investors and policymakers alike remain dazzled by the heady promise of oil from shale rock. Oil and gas companies have wrung significant amounts of black gold from shale oil plays like Texas’s Eagle Ford and North Dakota’s Bakken.

Shale oil, they say, is the next big thing.

“After years of talking about it, we’re finally poised to control our own energy future,” President Obama said in his most recent State of the Union address. “We produce more oil at home than we have in 15 years.”

But once again, the reality may be nothing like the hype. Consider California.

Mon, 2013-09-23 21:12Sharon Kelly
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Fracking Main Street: New Report Shows Social Costs for Rural Communities

What’s it like living in a small town that’s gone from rust belt farmland to fracking boomtown?

First, residents often say, there’s the traffic.  Communities have been unexpectedly flooded with heavy tractor trailers that locals say turn 10 minute commutes into hour-long ordeals, choke back roads and decimate pavement so badly that in some areas, drilling companies are barred from entering until they agree to pay for road repairs. “The traffic here is horrendous,” Towanda, PA resident Joe Benjamin told NPR.

Others often describe the impacts on the social fabric – a “wild west” atmosphere that brings with it increased crime and public health problems.

But these reports have been largely anecdotal, with little to quantify how big these impacts are or how much of it is due to fracking. Until now.

A new report by Food and Water Watch examines the social impacts of fracking, comparing traffic, crime and sexually transmitted infections in rural Pennsylvania counties. Using a decade worth of county-level data, they compare the differences between counties with substantial fracking and without, and how these counties have changed over time, from before the boom until after it set in.

“Pennsylvania’s natural gas boom has brought thousands of new gas wells, a number of transient workers and a host of social problems,” the report says. “This study is the first detailed, long-term analysis of the social costs of fracking borne by rural Pennsylvania communities.”

FWW documented sharp differences in traffic accident rates, petty crimes, and sexually transmitted infections. According to the report:

Mon, 2013-09-23 20:01Farron Cousins
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Regulatory Negligence Endangers Texas Citizens As Eagle Ford Fracking Impacts Soar

There’s no denying that Texas is the state that dirty energy built.  It remains the single largest source of domestically produced oil in the United States, and currently has more fracking wells than any other state.  With an abundant supply of dirty energy money, the state government of Texas is completely owned by the dirty energy industry.

This trifecta of industry domination is playing itself out in southern Texas, in what has become a no man's land for federal regulators.

According to a new report by Earthworks, energy companies drilling in the Eagle Ford Shale basin are wreaking havoc on both the environment and the people, and federal regulators have essentially abandoned the area.  This exodus of oversight has led to an increase in environmental abuses by the dirty energy industry.

But it wasn’t always this way in Texas.  According to Earthworks, regulators have been present in the area, and even carried out some needed investigations into the damage caused by drillers.  

But what the regulators found was so horrible that they had to evacuate themselves, and that was the last that residents in the area heard from them.

Sun, 2013-05-12 12:57Farron Cousins
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Obama, Biden Parroting Bogus Gas Industry Talking Points

For several years, both President Obama and Vice President Biden have been singing the praises of natural gas and hydraulic fracturing, claiming that the upcoming “cheap energy boom” would bring hundreds of thousands of jobs to work-hungry Americans.

The claim, which reached the most ears during the President’s 2012 State of the Union Address and was parroted throughout the campaign season, was that the new shale gas bonanza would bring 600,000 new jobs to America over the next decade.  With job creation as a top campaign issue, this talking point resonated well with American voters. 

And while the talking point was blindly reprinted by countless media outlets, the source has been traced back to the dirty energy industry itself.  Specifically, a 2012 shale gas / fracking booster sheet produced by the American Petroleum Institute.

Fri, 2012-07-27 03:30Steve Horn
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Exposed: Pennsylvania Act 13 Overturned by Commonwealth Court, Originally an ALEC Model Bill

On July 26, the Pennsylvania Commonwealth Court** ruled PA Act 13 unconstitutional.*** The bill would have stripped away local zoning laws, eliminated the legal concept of a Home Rule Charter, limited private property rights, and in the process, completely disempowered town, city, municipal and county governments, particularly when it comes to shale gas development.

The Court ruled that Act 13 “…violates substantive due process because it does not protect the interests of neighboring property owners from harm, alters the character of neighborhoods and makes irrational classifications – irrational because it requires municipalities to allow all zones, drilling operations and impoundments, gas compressor stations, storage and use of explosives in all zoning districts, and applies industrial criteria to restrictions on height of structures, screening and fencing, lighting and noise.”

Act 13 – pejoratively referred to as “the Nation's Worst Corporate Giveaway“ by AlterNet reporter Steven Rosenfeld – would have ended local democracy as we know it in Pennsylvania.

“It’s absolutely crushing of local self-government,” Ben Price, project director for the Community Environmental Legal Defense Fund (CELDF), told Rosenfeld. “It’s a complete capitulation of the rights of the people and their right to self-government. They are handing it over to the industry to let them govern us. It is the corporate state. That is how we look at it.”

Where could the idea for such a bill come from in the first place? Rosenfeld pointed to the oil and gas industry in his piece.

That's half of the answer. Pennsylvania is the epicenter of the ongoing fracking boom in the United States, and by and large, is a state seemingly bought off by the oil and gas industry.

The other half of the question left unanswered, though, is who do oil and gas industry lobbyists feed anti-democratic, state-level legislation to?

The answer, in a word: ALEC.

Sun, 2012-06-03 08:00Farron Cousins
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Dirty Energy Lobby Wins In EU – Shale Gas Now Considered “Green Energy”

In a headline that would appear to be ripped off the pages of The Onion, The Guardian UK this week reported “Gas rebranded as green energy by EU.”

After billions of dollars spent in lobbying efforts over the years, the dirty energy industry in the European Union has managed to convince leaders that natural gas – produced from both traditional extraction and from fracking – is a green, clean, renewable resource, no different than solar or wind power.

From The Guardian:
  

Energy from gas power stations has been rebranded as a green, low-carbon source of power by a €80bn European Union programme, in a triumph of the deep-pocketed fossil fuel industry lobby over renewable forms of power.

In a secret document seen by the Guardian, a large slice of billions of euros of funds that are supposed to be devoted to research and development into renewables such as solar and wave power are likely to be diverted instead to subsidising the development of the well-established fossil fuel.

The news comes as a report from the respected International Energy Agency predicted a “golden age for gas” with global production of “unconventional” sources of gas (notably shale gas extracted by hydraulic fracturing or 'fracking') tripling by 2035.
 

In the EU, the shale gas lobby has been working for more than 18 months to get the “green energy” label in attempts to get their hands on renewable energy subsidies, and brand themselves as a cleaner alternative to fossil fuels. They have also been touting that they are less costly than other forms of “green energy.”

Mon, 2012-04-09 12:15Farron Cousins
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Survey Says...Fracking IS Causing Earthquakes

A new report by the U.S. Geological Survey (USGS) says that the increased seismic activity taking place in certain areas of the United States is almost certainly the result of oil and gas drilling activities. The group has been studying dozens of earthquakes across America for the last 8 months and determined that the man-made quakes were taking place in areas where fracking or deep waste water injection had recently occurred.

Here is a brief snippet from the report's abstract:
  

A remarkable increase in the rate of M 3 and greater earthquakes is currently in progress in the US midcontinent. The average number of M >= 3 earthquakes/year increased starting in 2001, culminating in a six-fold increase over 20th century levels in 2011. Is this increase natural or manmade? To address this question, we take a regional approach to explore changes in the rate of earthquake occurrence in the midcontinent (defined here as 85° to 108° West, 25° to 50° North) using the USGS Preliminary Determination of Epicenters and National Seismic Hazard Map catalogs…

The modest increase that began in 2001 is due to increased seismicity in the coal bed methane field of the Raton Basin along the Colorado-New Mexico border west of Trinidad, CO. The acceleration in activity that began in 2009 appears to involve a combination of source regions of oil and gas production, including the Guy, Arkansas region, and in central and southern Oklahoma. Horton, et al. (2012) provided strong evidence linking the Guy, AR activity to deep waste water injection wells. In Oklahoma, the rate of M >= 3 events abruptly increased in 2009 from 1.2/year in the previous half-century to over 25/year. This rate increase is exclusive of the November 2011 M 5.6 earthquake and its aftershocks. A naturally-occurring rate change of this magnitude is unprecedented outside of volcanic settings or in the absence of a main shock, of which there were neither in this region. While the seismicity rate changes described here are almost certainly manmade, it remains to be determined how they are related to either changes in extraction methodologies or the rate of oil and gas production.


What’s interesting is that the USGS points out the obvious fact that has been ignored by the industry – these earthquakes are occurring in areas where earthquakes shouldn’t be happening. Still, that hasn’t stopped the dirty energy industry from denying that there is a correlation between fracking and earthquakes.

Sun, 2012-04-01 16:22Steve Horn
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Investors: No More Flaring of Fracked Oil and Gas in Bakken Shale

The debate over flaring unconventional oil and gas in shale basins across the United States has suddenly heated up immensely (excuse the bad pun). 

On March 27, the Coalition for Environmentally Responsible Economy (CERES) penned a letter calling for an end to the practice, writing,

We are a group of 37 investors, representing $500 billion in total assets, who areconcerned about the financial risks associated with the flaring of natural gas that has accompanied fast-proliferating oil production from shale formations in North Dakota, Texas and elsewhere in the U.S.

We are concerned that excessive flaring, because of its impact on air quality and climate change, poses significant risks for the companies involved, and for the industry at large,ultimately threatening the industry’s license to operate.

As you know, shale oil production, made possible by hydraulic fracturing technology,…is poised to become the world’s largest oil producer in the next five years, with nearly all of this projected growth coming from shale oil. …

On a lifecycle basis, emissions from oil produced with high flaring rates may be comparable to those from Canada’s vast oil sands region.

The letter ended by calling for the building up of proper infrastructure, such as pipelines and refineries, in order to push for an eliminiation of the dirty practice. CERES concluded the letter with a firm request, stating, “We therefore are writing to request information about the amount your company is currently flaring, as well as details about your plans to reduce flaring at existing wells and prevent it at future wells.”

Letter signarories included As You SowPresbyterian Church (USA)Turner Investments, and Praxis Mutual Funds, to name several.

Sun, 2011-12-11 15:32Steve Horn
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"Raising Elijah": An Interview With Ecologist and Author Sandra Steingraber

Q: In light of your new book Raising Elijah: Protecting Children in an Age of Environmental Crisis, which raises the specter of raising children in troubled times, both environmentally and ecologically, are you surprised that natural gas corporations have been producing public relations and propaganda materials like coloring books (recall Talisman Energy's Terry the Fracasaurus, and Chesapeake Energy's coloring books), going into schools and giving scholarships, etc.? 

A: Not at all. This is an attempt at deflection and drawing attention away from the bad public relations problems the industry has. It is hypocritical and cynical to go into communities, do fracking (see DeSmogBlog's Fracking the Future: How Unconventional Gas Threatens our Water, Health, and Climate), and then do these types of things.

For example, there are increased rates of crime, drug abuse, and motor vehicle accidents in areas in which fracking takes place. Roads in areas in which fracking is taking place are full of 18-wheelers hauling around toxic chemicals. It is a stunning move, based on all of these things.

For the Pennsylvania Breast Cancer Coalition and Chesapeake Energy’s corporate sponsorship of it, it is the ultimate case of cynicism, based on what they do on a daily basis. For them to get involved shows that they’re trying to deflect attention away from what they’re actually doing to cause these things in the first place.

The idea that they’re aligning themselves with the breast cancer movement is creepy and is like cigarette companies getting involved in fighting against cancer, while they are the ones also causing it.

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