shale oil

Fri, 2015-03-27 11:48Steve Horn
Steve Horn's picture

Industry-Stacked Energy Department Committee: Shale Running Dry, Let's Exploit the Arctic

A report assembled by an industry-centric US Department of Energy committee recommends the nation start exploiting the Arctic due to oil and gas shale basins running dry. 

In the just-submitted report, first obtained by the Associated Press, the DOE's National Petroleum Council — many members of which are oil and gas industry executives — concludes that oil and gas obtained via hydraulic fracturing (“fracking”) will not last beyond the next decade or so, thus the time is ripe to raid the fragile Arctic to feed our fossil fuel addiction. 

The NPC just launched a website and executive summary of the report: Arctic Potential: Realizing the Promise of U.S. Oil and Gas Resources.

Confirming the thesis presented by the Post Carbon Institute in its two reports, “Drill Baby, Drill” and “Drilling Deeper,” the National Petroleum Council believes the shale boom does not have much more than a decade remaining.

The NPC report appears to largely gloss over the role of further fossil fuel dependence on climate change, or the potentially catastrophic consequences of an oil spill in the Arctic.

The first mention of climate change appears to refer to “concern about the future of the culture of the Arctic peoples and the environment in the face of changing climate and increased human activity,” but doesn't mention the role of fossil fuels in driving those changes. Instead, the report immediately pivots to focus on “increasing interest in the Arctic for tourist potential, and reductions in summer ice provide an increasing opportunity for marine traffic.”

ExxonMobil CEO Rex Tillerson, a National Petroleum Council member, chimed in on the study in an interview with the Associated Press.  

“There will come a time when all the resources that are supplying the world's economies today are going to go in decline,” remarked Tillerson. “This is will [sic] be what's needed next. If we start today it'll take 20, 30, 40 years for those to come on.”

The National Petroleum Council also deployed the energy poverty argument, utilized most recently by coal giant Peabody Energy in its “Advanced Energy For Life” public relations campaign, to make its case for Arctic drilling as a replacement for fracking.

“But global demand for oil, which affects prices of gasoline, diesel and other fuels everywhere, is expected to rise steadily in the coming decades — even as alternative energy use blossoms — because hundreds of millions of people are rising from poverty in developing regions and buying more cars, shipping more goods, and flying in airplanes more often,” reads the report. “In order to meet that demand and keep prices from soaring, new sources of oil must be developed, the council argues.”

Tue, 2015-03-24 15:58Steve Horn
Steve Horn's picture

Purposeful Distraction? Unpacking the Oil Refiners' "Bomb Trains" Lawsuit vs. Warren Buffett's BNSF

On March 13, American Fuel & Petrochemical Manufacturers (AFPM) — the oil refiners' trade association — sued oil-by-rail carrying giant Burlington Northern Santa Fe (BNSF) for allegedly violating its common carrier obligation under federal law. A DeSmogBlog investigation has revealed there may be more to the lawsuit than initially meets the eye.

Filed in the U.S. District Court for the Southern District of Texas, Houston Division, AFPM sued BNSF “for violating its common carrier obligation by imposing a financial penalty” for those carrying oil obtained via hydraulic fracturing (“fracking”) in North Dakota's Bakken Shale basin and other hazardous petroleum products in explosion-prone DOT-111 rail cars.

AFPM's beef centers around the fact that BNSF began imposing a $1,000 surcharge for companies carrying explosive Bakken fracked oil in DOT-111 cars, as opposed to “safer” CPC-1232 cars, at the beginning of 2015.

The Warren Buffett-owned BNSF did so, argues AFPM, illegally and without the authority of the federal government.

“This $1,000 surcharge on certain PHMSA-authorized rail cars breaches BNSF’s common carrier duty to ship hazardous materials under the auspices of PHMSA’s comprehensive regime governing hazardous materials transportation,” wrote AFPM's legal team, featuring a crew of Hogan Lovells attorneys. “Allowing railroads to penalize companies that ship crude oil in federally-authorized rail cars would circumvent PHMSA’s statutory and regulatory process for setting rail car standards for hazardous materials shipments.”

Upon a quick glance, it seems like a fairly straight-forward case of federal law and an intriguing example of an intra-industry dispute. But as recent history has proven, the devil is in the details.

Sun, 2015-03-22 18:40Steve Horn
Steve Horn's picture

Global Shale Fail: Oil Majors Leaving Fracking Fields Across Europe, Asia

With some analysts predicting the global price of oil to see another drop, many oil majors have deployed their parachutes and jumped from the hydraulic fracturing (“fracking”) projects rapidly nose-diving across the world.

As The Wall Street Journal recently reported, the unconvetional shale oil and gas boom is still predominantly U.S.-centric, likely to remain so for years to come.

“Chevron Corp., Exxon Mobil Corp. and Royal Dutch Shell PLC have packed up nearly all of their hydraulic fracturing wildcatting in Europe, Russia and China,” wrote The Wall Street Journal.

“Chevron halted its last European fracking operations in February when it pulled out of Romania. Shell said it is cutting world-wide shale spending by 30% in places including Turkey, Ukraine and Argentina. Exxon has pulled out of Poland and Hungary, and its German fracking operations are on hold.” 

Though the fracking boom has taken off in the U.S. like no other place on Earth, the U.S. actually possesses less than 10 percent of the world’s estimated shale reserves, according to The Journal.

Despite this resource allotment discrepency, the U.S. Energy Information Administration (EIA) recently revealed that only four countries in the world have produced fracked oil or gas at a commercial-scale: the United States, Canada, China and Argentina.

Global Shale Fail
Image Credit: U.S. Energy Information Administration

Fri, 2015-03-20 19:11Sharon Kelly
Sharon Kelly's picture

"Frack Pack" Bills Introduced, Aim to Rein in Environmental Damage From Fracking Industry

On Thursday, Congressional Democrats introduced a set of four bills aimed at countering the environmental harms from hydraulic fracturing, or fracking, and the continuing shale gas rush.

Four Representatives — Reps. Diana DeGette and Jared Polis of Colorado, Matt Cartwright of Pennsylvania, and Jan Schakowsky of Illinois — and one Senator, Pennsylvania's Bob Casey, together announced the proposed legislation, dubbing the bills the “Frack Pack” and saying they were designed to roll-back loopholes in existing federal laws.

Wed, 2015-03-04 19:03Steve Horn
Steve Horn's picture

Iowa Republican Lawmaker: Rick Perry’s Involvement With Bakken Oil Pipeline “A Bad Idea”

By David Goodner and Steve Horn 

Everyday Iowa voters are less likely to caucus for former Texas governor and potential presidential candidate Rick Perry “because of his involvement” with a controversial oil pipeline proposal, according to an influential state lawmaker who has made eminent domain one of his signature issues in the Iowa House of Representatives.

Politically speaking, I am not sure there is as much upside for him to be involved as there is downside,” Iowa state representative Bobby Kaufmann (R-Wilton) told DeSmogBlog. “People would likely not vote for him for being involved with the pipeline.” 

Last month, DeSmogBlog broke news that Perry’s appointment to the Board of Directors of Energy Transfer Partners (ETP) could cost him support in the Iowa Caucuses. Energy Transfer Partners is a Texas-based company whose subsidiary, Dakota Access, LLC, has petitioned the state of Iowa to build a pipeline to transport up to 575,000 barrels per day of oil obtained from North Dakota's Bakken Shale via hydraulic fracturing (“fracking”)

Kaufmann’s statement to DeSmogBlog marks the first public criticism of Perry on this issue by a sitting Republican lawmaker. It also comes on the heels of Perry’s scheduled March 7 return to Iowa to speak at the Iowa Ag Summit alongside other likely Republican presidential candidates.

Kaufmann’s remarks to DeSmogBlog also come in the aftermath of Iowa’s paper of record, The Des Moines Register, releasing a poll finding that 74 percent of Iowans are opposed to the use of eminent domain to build the pipeline.

I think any presidential candidate’s association with eminent domain could be unhelpful” to them in the Iowa Caucuses, Kaufmann said. 

Mon, 2015-03-02 05:14Sharon Kelly
Sharon Kelly's picture

Internal Documents Reveal Extensive Industry Influence Over EPA's National Fracking Study

In 2010, the Environmental Protection Agency (EPA) launched an ambitious and highly consequential study of the risks that hydraulic fracturing, or fracking, poses to American drinking water supplies.

This is about using the best possible science to do what the American people expect the EPA to do – ensure that the health of their communities and families are protected,” Paul Anastas, Assistant Administrator for the agency's Office of Research and Development, said in 2011.

But the EPA's study has been largely shaped and re-shaped by the very industry it is supposed to investigate, as energy company officials were allowed to edit planning documents, insisted on vetting agency contractors, and demanded to review federal scientist's field notes, photographs and laboratory results prior to publication, according to a review by DeSmog of over 3,000 pages of previously undisclosed emails, confidential draft study plans and other internal documents obtained through open records requests.

Company officials imposed demands so infeasible that the EPA ultimately dropped a key goal of the research, their plans to measure pollution levels before and after fracking at two new well sites, the documents show.

All told, the documents raise serious questions about the study's credibility and they highlight a certain coziness between the EPA and Chesapeake Energy, one of the most aggressive oil and gas companies in the shale gas rush.

“[Y]ou guys are part of the team here,” one EPA representative wrote to Chesapeake Energy as they together edited study planning documents in October 2013, “please write things in as you see fit”.

Chesapeake took them up on the offer.

Wed, 2015-02-25 04:58Sharon Kelly
Sharon Kelly's picture

As Oil Prices Collapse, North Dakota Considers Weakening Standards on Radioactive Drilling Waste

As the collapse of oil prices threatens North Dakota's shale drilling rush, state regulators are considering a move they say could save the oil industry millions of dollars: weakening the state's laws on disposing of radioactive waste.

The move has been the subject of an intensive lobbying effort by drillers, who produce up to 75 tons per day of waste currently considered too hazardous to dispose of in the state.

For every truckload of that waste, drillers could save at least $10,000 in hauling costs, they argue. State regulators calculate that by raising the radioactive waste threshold ten-fold, the industry would shave off roughly $120 million in costs per year.

But many who live in the area say they fear the long-term consequences of loosened disposal rules combined with the state's poor track record on preventing illegal dumping.

“We don't want to have when this oil and coal is gone, to be nothing left here, a wasteland, and I'm afraid that's what might happen,” farmer Gene Wirtz of Underwood, ND told KNX News, a local TV station. “Any amount of radiation beyond what you're already getting is not a good thing.”

Environmental groups have also objected that the rule change would put private companies' profits before public health.

“The only reason we're doing this today is to cut the oil industry's costs,” Darrell Dorgan, spokesman for the North Dakota Energy Industry Waste Coalition, which opposes the move, told Reuters.

Thu, 2015-02-19 10:17Sharon Kelly
Sharon Kelly's picture

Company Presses Forward on Plans to Ship Fracking Wastewater via Barge in Ohio River, Drawing Objections from Locals

A major dispute is brewing over transporting wastewater from shale gas wells by barge in the Ohio River, the source of drinking water for millions of Americans.

On January 26, GreenHunter Water announced that it had been granted approval by the U.S. Coast Guard to haul tens of thousands of barrels from its shipping terminal and 70,000-barrel wastewater storage facility on the Ohio River in New Matamoras, Ohio.

“The U.S. Coast Guard approval is a significant 'win' for both GreenHunter Resources and our valued clients,” Kirk Trosclair, Chief Operating Officer at GreenHunter Resources, Inc., said in a statement announcing the Coast Guard's approval. “Our ability to transport disposal volumes via barge will significantly reduce our costs, improve our margins and allow us to pass along savings to our clients.”

Outraged environmental advocates immediately objected to the news.

Despite the thousands of comments from residents along the Ohio River opposing the risk of allowing toxic, radioactive fracking waste to be barged along the Ohio River, the Coast Guard quietly approved the plan at the end of 2014,” said Food & Water Watch Ohio Organizer Alison Auciello.

The Coast Guard is risking man-made earthquakes, drinking water contamination, leaks and spills. This approval compromises not only the health and safety of the millions who get their drinking water from the Ohio River but will increase the amount of toxic fracking waste that will be injected underground in Southeast Ohio.”

But the company's announcement was in fact made before the Coast Guard completed its review of the hazards of hauling shale gas wastewater via the nation's waterways – a process so controversial given the difficulty of controlling mid-river spills and the unique challenges of handling the radioactivity in Marcellus shale brine that proposed Coast Guard rules have drawn almost 70,000 public comments.

GreenHunter's move drew a sharp rebuke from Coast Guard officials. 

Tue, 2015-02-17 15:55Guest
Guest's picture

VIDEO: Young Iowan Questions Rick Perry on Fracked Oil Pipeline Ties at Town Hall Meeting

By David Goodner

When 24-year old Iowa native Kevin Rutledge first heard that former Texas governor and potential Republican Party presidential candidate Rick Perry had been appointed to the Board of Directors of Energy Transfer Partners, which is attempting to build a pipeline carrying oil obtained via hydraulic fracturing (“fracking”) from North Dakota’s Bakken Shale through his home state, he was hopping mad.

So on February 16, Rutledge decided to drive three hours from Des Moines to Sioux City, Iowa and ask Rick Perry face-to-face about his ties to the company during a town hall meeting at Morningside College.

Rutledge is from Ottumwa, Iowa and the proposed route of a new Dakota Access crude oil pipeline would cut right through the heart of the southeast Iowa county where he grew up, potentially impacting his home community with oil spills, polluted waterways, and damaged farmland.

Iowans and Americans are tired of not being listened to because we don’t have millions of dollars to influence politicians,” Rutledge told DeSmogBlog. “I heard about ties between Rick Perry, Iowa Governor [Terry] Branstad, and the Bakken oil pipeline and immediately knew this was an opportunity for me to ask him a question about it and bring this issue into light.”

Wed, 2015-02-11 09:39Sharon Kelly
Sharon Kelly's picture

Junk Science? Report Finds Shale Industry Cited 'Retracted and Discredited' Studies

Since the beginning of the shale gas rush, the drilling industry has insisted that the process is relatively benign, arguing that its critics are simply fear-mongering and that a sober scientific review of the data fails to prove, for instance, that fracking has ever contaminated water supplies.

In the wake of New York Governor Andrew Cuomo's decision to disallow fracking in that state, for example, one of the most active boosters of the shale drilling rush, the industry-funded Energy in Depth, issued a statement labeling the ban “'Junk Science' and 'Political Theater.”

In the wake of news reports, academic publications, or policy decisions that it opposes, Energy in Depth often circulates lists of sources that it describes as debunking “junk science.” But how reliable is the science that EID cites?

A report issued today by the Public Accountability Initiative (PAI) reviews a list of over 130 studies cited by Energy in Depth (EID), testing its sources for markers of credibility.

How often was the research cited peer-reviewed? Was it accurately labeled? Was the research funded by the oil and gas industry, and if so, was that funding properly disclosed or was it concealed? Were any of the papers cited revoked or rescinded?

The answers, found in the report titled “Frackademia in Depth,” are striking.

“Of the 137 unique studies on EID's list that could be located, only 19 were peer-reviewed,” the PAI writes. “This suggests that there is a significant shortage of serious scholarly research supporting the case for fracking.”

Pages

Subscribe to shale oil