unconventional oil

Mon, 2012-11-19 17:43Steve Horn
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Revealed: NERA Economic Consulting is Third Party Contractor for DOE LNG Export Study

Reuters has revealed the identity of the mysterious third party contractor tasked to publish the economic impact study on LNG (liquefied natural gas) exports on behalf of the Department of Energy (DOE). Its name: NERA Economic Consulting.

NERA” is shorthand for National Economic Research Associates, an economic consulting firm SourceWatch identifies as the entity that published a June 2011 report on behalf of coal industry front group American Coalition for Clean Coal Electricity (ACCCE). ACCCE's report concluded, “clean-air rules proposed by the Obama administration would cost utilities $17.8 billion annually and raise electricity rates 11.5 percent on average in 2016.”

That report went so far to say that Environmental Protection Agency (EPA) regulations of the coal-generated electrcity sector would amount to some 1.5 million lost jobs over the next four years.

NERA was founded by Irwin Stelzer, senior fellow and director of the right-wing Hudson Institute’s Center for Economic Policy. In Oct. 2004, The Guardian described Stelzer as the “right-hand man of Rupert Murdoch,” the CEO of News Corp., which owns Fox News. 

According to NERA's website, the late Alfred E. Kahn, the “father of deregulation,” advised NERA's 1961 foundation

Wed, 2012-11-14 06:58Steve Horn
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Shale Gas Bubble Bursting: Report Debunks "100 Years" Claim for Domestic Unconventional Oil and Gas

Food and Water Watch (FWW) released a report today titled “U.S. Energy Security: Why Fracking for Oil and Natural Gas Is a False Solution.” 

It shows, contrary to industry claims, there aren't 100 years of unconventional oil and gas sitting below our feet, even if President Barack Obama said so in his 2012 State of the Union Address. Far from it, in fact.

The report begs the disconcerting question: is the shale gas bubble on its way to bursting?

FWW crunched the numbers, estimating that there are, at most, half of the industry line, some 50 years of natural gas and much less of shale gas. This assumes the industry will be allowed to perform fracking in every desired crevice of the country. These are the same basins that advocates of hydraulic fracturing (“fracking”) claim would make the U.S. the “next Saudi Arabia.” 

“The popular claim of a 100-year supply of natural gas is based on the oil and gas industry’s dream of unrestricted access to drill and frack, and it presumes that highly uncertain resource estimates prove accurate,” wrote FWW. “Further, the claim of a century’s worth of natural gas ignores plans to export large amounts of it overseas and plans for more domestic use of natural gas to fuel transportation and generate electricity.”

Tue, 2012-11-06 12:40Steve Horn
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Chesapeake Energy Tied to Mansfield, OH Bill of Rights Astroturf Attack

The oil and gas industry is waging an 11th hour astroturf campaign in Mansfield, OH in an attempt to defeat the “Community Bill of Rights“ referendum. 

A “yes” vote would, in effect, prohibit hydraulic fracturing (“fracking”) injection wells in Mansfield, a city of 48,000 located in the heart of the Utica Shale basin between Cleveland and Columbus. 

In March 2012, the Ohio Department of Natural Resources (ODNR) conducted a study linking the 12 earthquakes that have occurred in Youngstown, OH to injection wells located in the city. Further, recent investigative reports by ProPublica show that these new dumping grounds - with a staggering 150,000 injection wells in 33 states and 10 trillion gallons of toxic fluid underground - are a public health hazard in the making.

And yet, for the most part, hardly anyone is talking about it.

Preferred Fluids Management LLC is the upstart business that received two well injection permits from the ODNR in the spring of 2011 that motivated the “Bill of Rights” initiative. Industry front groups ranging from Energy in Depth (EID), Energy CitizensOhio Energy Resource Alliance and “Mansfielders for Jobs” are leading the charge in the astroturf campaign to defeat it.

Why, though, has the fracking industry put so much time and effort into the placement of a measly two injection wells in Mansfield for this relatively unheard of LLCMichael Chadsey of EID Ohio explained the importance of the waste dumping grounds at a forum on Jan. 30, 2012, stating,

If for some reason they just said, you know, we're going to stop this process, eventually the tanks that are on-site are going to get filled up. And then all the drilling pads are going to have to shut down and all of the truck drivers will have to stop.

So…this is the part of the process that is the end part of the process. When you shut down the end, you can't even start or continue because you have to have all the pieces of the puzzle to make this thing move. Everything is interconnected.

There's that and then there's the fact that Preferred Fluids Management LLC isn't merely a “new kid on the block.” Owned and founded by Steven Mobley, the business has a story of its own worthy of sharing, as it's closely connected to gas industry powerhouse, Chesapeake Energy.

Sun, 2012-11-04 10:16Steve Horn
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Exclusive: Tea Party, Fracking Industry Launch Astroturf Campaign Against Mansfield, OH Community Bill of Rights Referendum

Ohio is referred to as a “battleground state” due to its status as a “swing state” in presidential elections. But another important battle is brewing in the Buckeye State, also set to be settled in the voting booth.

This battle centers around a “Community Bill of Rights” referendum in Mansfield, OH and will be voted on in a simple “yes/no” manner. Mansfield is a city with roughly 48,000 citizens located 80 miles southwest of Cleveland and 66 miles northeast of Columbus, right in the heart of the Utica Shale basin

Eric Belcastro, the Pennsylvania Organizer for the Community Environmental Legal Defense Fund (CELDF), explained the rationale behind the “Bill of Rights” push in a blog post:

Faced with the permitting of two 5,000 foot deep injection wells in Mansfield by the Ohio Department of Natural Resources (ODNR)…[t]he amendment would drive a community Bill of Rights into Mansfield's charter and then prohibit the injection of fracking wastewater on grounds that such prohibition is necessary to secure and protect those community rights. The amendment also recognizes corporate “rights” as subordinate to the rights of the people of Mansfield, as well as recognizing the rights of residents, natural communities, and ecosystems to clean air and water.

The ODNR, in a study published in March 2012, linked the 12 earthquakes that have occured in Youngstown, Ohio to injection wells located in the city. 

Though the “Bill of Rights” has the full support of the City Council and the Law Director, as well as the city's newspaper, the Mansfield News Journal, one faction in particular isn't such a big fan of the Bill of Rights: the oil and gas industry. In response to the upcoming referrendum vote, the industry has launched an 11th hour astroturf campaign to “win hearts and minds” of those voters still on the fence as it pertains to the “Bill of Rights” in the week before the election. 

DeSmogBlog has obtained images of flyers distributed via a well-coordinated direct mail campaign conducted by the oil and gas industry in Mansfield, made public here for the first time in an exclusive investigation.

Fri, 2012-11-02 15:03Steve Horn
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SUNY Buffalo Faculty, Staff Tell Shale Institute to Go

The battle royale being waged against ”frackademia” at SUNY Buffalo has reached a tipping point.

On Oct. 31, the UB Coalition for Leading Ethically in Academic Research (UB Clear), a consortium of faculty, students, alumni and other community members, issued a letter and accompanying report declaring that it's time for the increasingly controversial SUNY Buffalo Shale Resources and Society Institute (SRSI) to skedaddle. UB Clear concluded the report, requested by the SUNY Board of Trustees and published under the auspices of the office of President Satish K. Tripathi, was a whitewash.

UB Clear explained

Fri, 2012-10-26 08:00Steve Horn
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Tar Sands South: First US Tar Sands Mine Approved in Utah

The race is on for the up-and-coming U.S. tar sands industry. To date, the tar sands industry is most well-known for the havoc it continues to wreak in Alberta, Canada - but its neighbor and fellow petrostate to the south may soon join in on the fun

On Oct. 24, the Utah Water Quality Board (UWQBapproved the first ever tar sands mine on U.S. soil, handing a permit to U.S. Oil Sands, a company whose headquarters are based in Alberta, despite it's name. 

In a 9-2 vote, the UWQB gave U.S. Oil Sands the green light to begin extracting bitumen from its PR Spring Oil Sands Project, located in the Uinta Basin in eastern Utah. The UWQB concluded that there's no risk of groundwater pollution from tar sands extraction for the prospective mining project.  

Members of the public were allowed to attend the hearing but “were not permitted to provide input,” according to The Salt Lake Tribune

Tue, 2012-10-23 05:00Steve Horn
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As You Sow: Coal Investments, Shale Gas, a Bad Bet

In a missive titled “White Paper: Financial Risks of Investments in Coal,” As You Sow concludes that coal is becoming an increasingly risky investment with each passing day. The fracking boom and the up-and-coming renewable energy sector are quickly superseding King Coal's empire as a source of power generation, As You Sow concludes in the report.

As You Sow chocks up King Coal's ongoing demise to five factors, quoting straight from the report:

1. Increasing capital costs for environmental controls at existing coal plants and uncertainty about future regulatory compliance costs

2. Declining prices for natural gas, a driver of electric power prices in competitive markets

3. Upward price pressures and price volatility of coal

4. High construction costs for new coal plants and unknown costs to implement carbon capture and storage

5. Increasing competitiveness of renewable generation resources

Sun, 2012-10-21 06:00Steve Horn
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Fracking in PA Poisoning Communities as Floodgates Open for Drilling on Campuses, Public Parks

Pennsylvania recently passed Act 147 - also known as the Indigenous Mineral Resources Development Act - opening up the floodgates for hydraulic fracturing (“fracking”) on the campuses of its public universities. As noted in a recent post by DeSmog, the shale gas industry hasn't limited Version 2.0 of “frackademics” to PA's campuses, but is also fracking close to hundreds of K-12 schools across the country, as well.  

We noted the devastating health consequences of fracking close to a middle school/high school in Le Roy, New York, where at least 18 cases of Tourette Syndrome-like outbreaks have been reported by its students. This has moved Erin Brockovich's law firm to investigate the case, telling USA Today, “We don't have all the answers, but we are suspicious. The community asked us to help and this is what we do.”

Earthworks Oil and Gas Accountability's just-published report, “Gas Patch Roulette: How Shale Gas Development Risks Public Health in Pennsylvania, makes the case that the decision to allow fracking on PA's campuses has opened up a Pandora's Box stuffed with a looming health quagmire of epic proportions.

Thu, 2012-10-18 13:20Steve Horn
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Fracking Your Future: Shale Gas Industry Targets College Campuses, K-12 Schools

In Pennsylvania - a state that sits in the heart of the Marcellus Shale basin - the concept of “frackademia” and “frackademics” has taken on an entirely new meaning.

On Sept. 27, the PA House of Representatives - in a 136-62 vote - passed a bill that allows hydraulic fracturing, or “fracking” to take place on the campuses of public universities. Its Senate copycat version passed in June in a 46-3 vote and Republican Gov. Tom Corbett signed it into law as Act 147 on Oct. 8.

The bill is colloquially referred to as the Indigenous Mineral Resources Development Act. It was sponsored by Republican Sen. Don White, one of the state's top recipients of oil and gas industry funding between 2000-April 2012, pulling in $94,150 during that time frame, according to a recent report published by Common Cause PA and Conservation Voters of Pennsylvania. Corbett has taken over $1.8 million from the oil and gas industry since his time serving as the state's Attorney General in 2004. 

The Corbett Administration has made higher education budget cuts totaling over $460 million in the past two consecutive PA state budgets. The oil and gas industry has offered fracking as a new fundraising stream at universities starved for cash and looking to fill that massive cash void, as explained by The Philadelphia Inquirer:

Tue, 2012-10-16 22:46Steve Horn
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New Gas Industry Astroturf: Landowner Advocates of NY Buses Activists to Albany Pro-Fracking Rally

A pro-fracking rally held on Oct. 15 in Albany, NY was described by about a dozen local media outlets as a gathering of roughly 1,000 grassroots activists from all walks of life.

All came out to add their voice to the conversation regarding the extraction of unconventional gas from the Marcellus Shale basin in New York state. But the marchers weren't concerned landowners worried about losing their water supplies or property values. Their demand: to lift the current moratorium on fracking, which was prolonged by Democratic Gov. Andrew Cuomo on Sept. 30.

One rally attendee, Doug Lee, described the ongoing fracking moratorium as a “communist act” to the Albany Times-Union. Another described anti-fracking activists as “well-funded and organized activists masquerading as environmentalists, who often do not need to make a living in our communities.” Republican Sen. Tom Libous, observed that Hollywood stars Mark Ruffalo and Debra Winger weren't on the scene, telling them to “Stay in Hollywood. We don't want you here.”

Unmentioned by any of the news outlets that covered the event was a crucial fact: these weren't actual “grassroots” activists, but rather astroturf out-of-towners bused in from counties all across the state. Their journey was paid for by the legitimately “well-funded” oil and gas industry, which raked in profits of $1 trillion in the past decade

According to the Associated Press, the pro-fracking rally and march were organized by a brand new front group called the Landowner Advocates of New York formed in the immediate aftermath of the recent Cuomo decision to stall on opening the fracking floodgates.

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