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Fri, 2014-06-13 08:25Sharon Kelly
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Over $48 Trillion Energy Investment Needed by 2035, IEA Report Concludes

It will cost $48 trillion to keep up with rising energy demand worldwide over the next two decades, a newly released report by the International Energy Agency concludes.

That's a massive jump from the $16 trillion predicted the last time the report was fully updated in 2003.

“The headline numbers revealed by this analysis are almost too large to register,” the IEA World Energy Investment Outlook special report notes.

The costs of supplying the world with energy, the report finds, have already more than doubled since 2000. And the costs of fossil fuels are projected to rise, even without accounting for any increase in demand. By 2035, the world's energy will require a $2 trillion investment every year. The vast majority of the $1.6 trillion spent on energy last year – a total of $1.1 trillion – went to extracting fossil fuels, oil refining and building power plants that burn fossil fuels.

Over the next two decades, the world would need to invest over $20 trillion to replace production from aging, declining oil and gas fields.

To put that $20 trillion into perspective, the Iraq war cost the U.S. government $1 trillion over its nine years, according to White House estimates. That means the financial investment needed by fossil fuel projects over the next two decades would equal the cost to U.S. taxpayers of twenty Iraq wars.

An alternate plan, aimed at limiting climate change to 2 degrees Celsius, would add another $250 billion to the average yearly price tag, the IEA adds, and require a focus on energy efficiency and renewable energy sources and reduced spending on oil, gas and coal.

But this approach could ultimately be less expensive, because less will need to be spent compensating for the harmful effects of global warming.

Mon, 2014-06-09 13:44Sharon Kelly
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"Fracking Pennsylvania": New Book Recounts History of the Northeast's Shale Rush

Walter Brasch begins his new book, Fracking Pennsylvania: Flirting with Disaster, by explaining in the introduction that he never intended to write an anti-fracking book. “But,” he writes “as I accumulated mounds of evidence, I realized that fracking, even under the best of conditions, is a problem.”

There is no question that Brasch, a former journalism professor, did his research before arriving at that conclusion. His 400-page tome is rife with footnotes (over 1,400 citations) and quotes from various experts on the history of Pennsylvania and the industry that has come to dominate much of its politics over the past several years.

It's a story with national implications, as the state is home to the nation's most productive shale gas field, attracting attention from politicians in Washington D.C. — and also providing numerous cautionary tales for other states undergoing similar shale booms.

The book, a remarkably timely primer that seems like it would be well at home in a college classroom, is divided into three main parts.

Part I reviews historical, political and economic issues, beginning with a look back at energy policies nationwide going back centuries. For Pennsylvania, that has meant a long line of extractive industries: lumber companies clear-cut the state, in part to fuel massive iron forges, then coal companies arrived, first delving deep into underground mines then strip-mining the surface and leaving behind 2,500 miles of streams heavily polluted by acid mine run-off.

But it's the state's most recent energy bonanza that is the main focus of the book: the Marcellus shale and the natural gas industry's drilling rush.

Mon, 2014-06-02 05:00Sharon Kelly
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Loopholes Enable Industry to Evade Rules on Dumping Radioactive Fracking Waste

As the drilling rush proceeds at a fast pace in Pennsylvania's Marcellus shale, nearby states have confronted a steady flow of toxic waste produced by the industry. One of Pennsylvania's most active drilling companies, Range Resources, attempted on Tuesday to quietly ship tons of radioactive sludge, rejected by a local landfill, to one in nearby West Virginia where radioactivity rules are still pending. It was only stopped when local media reports brought the attempted dumping to light.

“We are still seeking information about what happened at the Pennsylvania landfill two months ago when the waste was rejected, and about the radiation test results the company received from the lab,” Kelly Gillenwater, a West Virginia Department of Environmental Protection spokeswoman, told the Pittsburgh Post-Gazette, which had tracked the waste after it was rejected by a Chartiers, PA landfill because it was too radioactive. “For now this is still under investigation.”

It's one of a series of incidents involving the disposal of fracking's radioactive waste. Collectively these incidents illustrate how a loophole for the oil and gas industry in federal hazardous waste laws has left state regulators struggling to prevent the industry from disposing its radioactive waste in dangerous ways.

Thu, 2014-05-29 11:00Sharon Kelly
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Shale Rush Hits Argentina as Oil Majors Spend Billions on Fracking in Andes Region

While many countries, including France, Germany and South Africa, have banned or delayed their embrace of fracking, one country is taking a full-steam-ahead approach to the unconventional drilling technology: Argentina.

The country is welcoming foreign shale companies with open arms in the hope that oil and gas drilling will help combat one of the world’s highest currency inflation rates. But the government there is also facing violent clashes over fracking in arid regions of the Andes mountains and allegations from locals of water contamination and health problems.

Argentina’s Vaca Muerta shale formation — estimated to hold an amount of oil and gas nearly equal to the reserves of the world’s largest oil company, Exxon Mobil — has already attracted billions in investment from the major oil and gas company Chevron.

In April, the government drew global attention when it announced plans to auction off more acreage. “Chevron, Exxon, Shell have shown interest in Vaca Muerta. They will compete for sure,” Neuquen province Energy Minister Guillermo Coco told potential investors on a road show in Houston on April 30th.

Argentina, which the EIA estimates could hold even more shale gas than the U.S., already has over 150 shale wells in production, more than any country in the world aside from the U.S. and China. California-based Chevron, in partnership with Argentina’s state-owned oil company YPF, invested $1.24 billion in a pilot program last year. Last month, Chevron announced an additional $1.6 billion effort for 2014, part of Chevron's overall investment plan that could top $15 billion. The company is hoping that this plan will allow it to extract 50,000 barrels a day of shale oil plus 100 million cubic feet of shale gas per day from the country’s Andes mountain region.

American drillers have talked up Argentine shale as the next big thing. “Vaca Muerta is going to be an elephant compared to Eagle Ford,” Mark Papa, CEO of EOG Resources told the Argentine press in 2012, referring to a major oil-producing shale formation in Texas.

Wed, 2014-05-28 05:00Sharon Kelly
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Exclusive: Leaked EPA Draft Fracking Wastewater Guidance Suggests Closer Scrutiny for Treatment Plants

One of the most intractable problems related to fracking is that each well drilled creates millions of gallons of radioactive and toxic wastewater.

For the past several years, the Environmental Protection Agency has faced enormous public pressure to ensure this dangerous waste stops ending up dumped in rivers or causing contamination in other ways.

But the drilling boom has proceeded at such an accelerated pace in the United States that regulators have struggled to keep up, to control or even track where the oil and gas industry is disposing of this radioactive waste. As a consequence, hundreds of millions of gallons of partially treated waste have ended up in the rivers from which millions of Americans get their drinking water. 

An internal draft EPA document leaked to DeSmog gives a small window into how, after a full decade since the start of the drilling boom, the agency is responding.

The document, dated March 7, 2014, is titled “National Pollutant Discharge Elimination System Permitting and Pretreatment for Shale Gas Extraction Wastewaters: Frequently Asked Questions.”

It's revealing for what it shows about how EPA staff are taking the hazards of fracking wastewater more seriously — and also how little things have changed.

“In general, the EPA memo does a good job of making clear that fracking wastewater discharges are covered under the Clean Water Act, and that proper discharge permitting is required, including setting limits to protect water quality standards and to comply with technology based standards in the Clean Water Act,” explained Clean Water Action attorney Myron Arnowitt, who was asked by DeSmog to review the document. “It is mostly an increased level of detail for regional EPA staff regarding permitting issues under the Clean Water Act, compared to the pervious memo in 2011.”

The document, intended as a guide for local regulators on how the Clean Water Act should be interpreted and applied, is impressive in many ways.

Tue, 2014-05-27 14:26Sharon Kelly
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“All of the Above” or “Action now?”: Obama’s Natural Gas Contradiction

At a talk in Vermont last week, the nation's top energy official offered up his thoughts on a problem the White House has said calls for “urgent action”: climate change.

“We need to mitigate the effects of climate change and need to adapt at the same time,” said Dr. Ernest Moniz, Secretary of Energy, as he described the findings of a White House report issued earlier this month outlining the dangers of global warming and the impacts already felt nationwide.

But Moniz's talk also highlighted a fundamental flaw in the approach that President Obama has taken to energy and the environment.

The president has begun sounding alarm bells about the hazards and costs of worsening climate disruption. At the same time, he has aggressively promoted the nation's ongoing shale gas rush. And yet, experts warn this drilling frenzy may have wiped out most of the gains made by slashing carbon dioxide emissions from burning coal.

It's a paradox that the Washington Post labeled “a jarring juxtapostion” and “the contradiction at the heart of President Obama's climate change policy.” 

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