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Fri, 2014-12-05 06:00Sharon Kelly
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New Report Highlights Fracking's Global Hazards

A new report, issued the same day the latest round of global climate negotiations opened in Peru, highlights the fracking industry's slow expansion into nearly every continent, drawing attention not only to the potential harm from toxic pollution, dried-up water supplies and earthquakes, but also to the threat the shale industry poses to the world's climate.

The report, issued by Friends of the Earth Europe, focuses on the prospects for fracking in 11 countries in Africa, Asia, North and South America and Europe, warning of unique hazards in each location along with the climate change risk posed in countries where the rule of law is relatively weak.

“Around the world people and communities are already paying the price of the climate crisis with their livelihoods and lives,” said Susann Scherbarth, climate justice and energy campaigner at Friends of the Earth Europe. “Fracking will only make things worse and has no place in a clean energy future.”

The 80-page document describes plans for fracking in Brazil's Amazon rainforest (and the deforestation that would go along with that drilling), highlights the hazards the water-intensive process poses to already-disappearing aquifers in arid regions of northern Africa, and notes that licenses for shale gas drilling have been issued in the earthquake-prone zone at the foot of the Himalaya mountains in India.

It comes as representatives from 195 countries gathered Monday in Lima, with the goal of negotiating new limits on greenhouse gasses and staving off catastrophic climate change. Prospects for those talks seemed grim, with The New York Times reporting that it would be all but impossible to prevent the globe from warming 2 degrees.

Tue, 2014-12-02 04:00Sharon Kelly
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Hard Times in a Boom Town: Pennsylvanians Describe Costs of Fracking

If you're looking for the shale gas boom, northeastern Pennsylvania is the place to start.

The Marcellus is the largest and fastest growing shale gas play in the U.S. and more than half of its 50 most productive wells were drilled in Susquehanna County in the northeast. Susquehanna and neighboring Bradford County produced 41 percent of all Marcellus gas this June.

While drilling is down in other shale gas plays across the US, with major oil companies selling off their stakes and CEO's expressing regret for buying in, the Marcellus has bucked some of the downward trends so far.

A recent report from the Post Carbon Institute, “Drilling Deeper: A Reality Check on U.S. Government Forecasts for a Lasting Tight Oil and Shale Gas Boom,” has grave warnings about the Energy Information Administration's figures nationwide, concluding that two-fifths of the shale gas the agency expects to be produced between now and 2040 will likely never materialize. While many high-profile shale gas plays have already peaked in terms of gas production per well, the Marcellus appears to be an outlier in terms of productivity, researcher David Hughes concludes.

Enormous amounts of shale gas are being produced in Pennsylvania. In the first six months of this year, drillers here pumped 2 trillion cubic feet of gas. And much of this gas came from the Marcellus shale's twin sweet spots, in the Northeast and Southwest corners of the state.

In the whirlwind of activity, some locals in here struck it rich – those who owned large tracts of land and negotiated their deals at exactly the right moment. Driving through the county, it seems like every back road has a red-and-white permit sign marking a shale gas well, a water impoundment, or other Marcellus-related infrastructure.

Mon, 2014-11-24 10:31Sharon Kelly
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As Chesapeake Energy Reveals Department of Justice Investigation, Other Lawsuits Piling Up

Earlier this month, Chesapeake Energy Corp. revealed that it has been subpoenaed by the U.S. Department of Justice, along with multiple states, over alleged wrong-doing in the company's business dealings.

Federal prosecutors and state attorneys have demanded that the company turn over documents, provide information, and give testimony in cases centering on the royalty payments that Chesapeake Energy pays to landowners who allow them to tap the shale oil and gas beneath the surface of their land.

Separately, the company said, it has received subpoenas from both federal and state attorneys general over potential violations of anti-trust laws, the laws designed to protect against abuse of monopoly power or collusion between competitors.

This is hardly the first time the company has found itself in legal trouble.

Across the U.S., Chesapeake faces a large number civil lawsuits from angry landowners, investors and other business partners. In Pennsylvania and Michigan, it faces racketeering counts, under the same law often used to convict members of organized crime. In Texas and Oklahoma, dozens of landowners have sued the company for shortchanging them.

Sun, 2014-11-16 11:54Sharon Kelly
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Prosecution of Don Blankenship a Historic Moment for Coal Industry

This week's indictment of former Massey Energy CEO, Don Blankenship, was as much a political turning point for West Virginia as it was a moment of reckoning economically for the coal industry writ large. It marked the wane of one of America's last great robber barons and yet another ominous warning for the country's dirtiest and deadliest of fossil fuels.

The decision represented a political shot across the bow by a smart, dogged and politically ambitious US attorney, R. Booth Goodwin II. For several years now, Goodwin has systematically worked his way up Massey’s hierarchy, convicting not only low-level supervisors, but also executives higher and higher within the corporate hierarchy. Goodwin has based his prosecutions on conspiracy charges rather than on violations of specific health and safety regulations, which means he can reach further up into the corporate structure.

Goodwin's pursuit of Blankenship was politically daring — and, if the indictment is to be trusted — based on solid evidence. But it was also a welcome development for the state's democrats since for over a decade Blankenship had single-handedly dismantled the mine workers union and bank-rolled a resurgent GOP movement in the state, altering the make-up of the state Supreme Court and funneling funds to astro-turf 501c drives for pet issues like “tort reform”.

More than anything, though, the indictment was a small vindication for the families of the 29 men who died at the Upper Big Branch mine on April 5, 2010 in the worst explosion of the past 40 years. But the incident, a range of investigators concluded, was less an accident and more the outcome of deliberate wrongdoing by Massey.

Tue, 2014-11-04 04:00Sharon Kelly
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Marcellus Shale Fracking Rush Brings Worries of Boom-Bust Cycle

Across the U.S., the shale gas industry's arrival has been marked by wariness, not only of the environmental impacts associated with fracking, but also due to the oil and gas industry's long history of flashy booms followed by devestating busts.

In towns across the state, the lingering effects of past economic downturns – the flight of manufacturing, the 2008 financial collapse, the slow erosion of the auto and steel industries – have left communities eager for jobs, but also experienced with job loss.

Nowhere better illustrates the potential for a shale rush to heal old economic wounds, or communities' vulnerability to new ones, than Cameron County, Pennsylvania. At the eastern edges of the rust belt, Cameron County has been hit hard by the decline of the American auto industry.

Hopes for a shale renassiance are running up against some difficult realities. A report released Monday by the Post-Carbon Institute, titled “Drilling Deeper: A Reality Check on US Government Forecasts for a Lasting Tight Oil & Shale Gas Boom,” concludes that the Marcellus shale is unlikely to fully live up to government forecasts, and that natural gas prices will have to rise to keep drilling going across the state. The vast majority of the Marcellus shale is not the same high quality as the areas where drillers are currently focusing most of their efforts, referred to in the industry as “sweet spots,” making the gas there more expensive to produce.

The report also finds that shale gas production in the Marcellus is expected to reach it's peak in 2018 or 2019 – meaning that within five years, production will begin dropping. “These projections are optimistic in that they assume the capital will be available for the drilling treadmill that must be maintained to keep production up,” the report says. “This is not a sure thing as drilling in the poorer quality parts of the play will require higher gas prices to make it economic.”

Fri, 2014-10-31 13:22Sharon Kelly
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Oil and Gas Industry's "Endless War" on Fracking Critics Revealed by Rick Berman

Leave it to Washington's top attack-dog lobbyist Richard Berman to verify what many always suspected: that the oil and gas industry uses dirty tricks to undermine science, vilify its critics and discredit journalists who cast doubt on the prudence of fossil fuels.

In a speech at an industry conference in June, surreptitiously recorded by an energy executive, Rick Berman, the foremost go-to guy for Republican smear campaigns, gave unusually candid advice to a meeting of drilling companies.

Think of this as an endless war,” he told executives in a speech, which was leaked to The New York Times by an attendee at the conferenece who was offended by Berman's remarks.

And you have to budget for it.” He said the industry needs to dig up embarrassing tidbits about environmentalists and liberal celebrities, exploit the public’s short attention span for scientific debate, and play on people’s emotions.

Fear and anger have to be a part of this campaign,” Berman said. “We’re not going to get people to like the oil and gas industry over the next few months.”

Berman also advised that executives continue to spend big. “I think $2 to $3 million would be a game changer,” he said. “We’ve had six-figure contributions to date from a few companies in this room to help us get to where we are.”

But always cover your tracks, he suggested, adding that no is better equipped at doing so than his firm. “We run all this stuff through nonprofit organizations that are insulated from having to disclose donors. There is total anonymity,” he said. “People don’t know who supports us. We’ve been doing this for 20-something years in this regard.”

Berman, whose tobacco ties were profiled yesterday by DeSmog contributor John Mashey, is the founder and chief executive of the Washington-based Berman & Company consulting firm. He attended the conference in Colorado, hat in hand, looking to raise money from energy companies for an advertising and public relations campaign he started called Big Green Radicals.

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