Industry Funded Front Group Attacks Government Estimates Of Oil Drilling Revenues

The Congressional Budget Office (CBO) recently released a report detailing the many ways in which expanded oil exploration and drilling in federally protected areas would not yield an overall economic benefit for the United States.  The CBO report says that the revenue generated by these operations would take too long to come to fruition, and that our current areas of drilling are where the real money is in this situation.

But the dirty energy industry will never go down without a fight, so they had their friends at the Institute for Energy Research (IER) fund a study that showed that the CBO was way off the mark with their estimates.  IER has received funding from both Exxon and Koch Industries.

Group Sues Obama Administration Over Offshore Oil And Gas Leasing Program

A lawsuit has been filed against the Obama administration over the economic claims that the Bureau of Ocean Energy Management (BOEM) made in their 5-year plan to open up new areas around the United States to offshore oil and gas leasing.  The suit, filed by the Center for Sustainable Economy (CSE), says that the administration not only grossly exaggerated the economic benefits of increased energy exploration, but also that they failed to take all costs into account.

BOEM’s plan would lease a total of 15 new areas for exploration, including areas within the Gulf of Mexico, the Cook Inlet, Alaskan waters, and the Beaufort Sea.  But rather than focusing strictly on the environmental impact of the projects, CSE took an approach that tends to have better results in Washington – Economics.

The economic argument is very powerful, as CSE explains that the increased oil and gas exploration will cost the United States more than it will gain.  And according to federal laws (specifically Section 18 of the Outer Continental Shelf Lands Act), in order to grant permission for projects such as the leasing program, there must be a net public gain. 

For example, the best estimates for the amount of money to be made from oil and gas in these areas ranges from $1 to $2 billion per year.  However, these areas currently provide an economic boost of as much as $70 billion a year from fishing, tourism, and other activities, all of which could be decimated in the event of an oil spill.

Karl Rove's Crossroads GPS Doubles Down On Gas Price Talking Points

The Karl Rove-helmed lobbying group Crossroads GPS (in conjunction with their parent group American Crossroads) has decided to double down on the debunked talking point that President Obama is to blame for the spike in gas prices. Their latest ad, titled “Too Much,” specifically takes aim at the President’s claim (based on facts) that domestic energy production is at a record high.

Take a look:

It is interesting to note that in this ad, when they attempt to “debunk” Obama’s claim about domestic oil production, the source they cite as evidence is actually talking about only the oil production, a fact that they actually left in the ad yet conveniently ignored:

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.

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