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Sat, 2013-05-18 06:00Steve Horn
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Friday Trash Dump: Obama DOE Approves 2nd Fracked Gas LNG Export Terminal

Friday is the proverbial “take out the trash day” for the release of bad news among public relations practitioners and this Friday was no different. 

In that vein, yesterday the Obama Department of Energy (DOEannounced a conditional approval of the second-ever LNG (liquefied natural gas) export terminal. 

LNG is the super-chilled final product of gas obtained - predominantly in today's context - via the controversial hydraulic fracturing (“fracking”) process taking place within shale deposits located throughout the U.S. Fracked gas is shipped from the multitude of domestic shale basins in pipelines to various coastal LNG terminals, and then sent on LNG tankers to the global market.

The name of the terminal: Freeport LNG.

Freeport LNG is 50-percent owned by ConocoPhillips and located in Freeport, Texas, an hour-long car ride south of Houston. The export facility is the second one approved by the Obama DOE, with the first one - the Sabine Pass terminal, owned by Cheniere and located in Sabine Pass, Louisiana - approved in May 2011

DOE gave its rubber stamp of approval to Freeport LNG to export up to 1.4 billion cubic feet of LNG per day from its terminal. 

Wed, 2013-05-15 05:00Steve Horn
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Faulkner County: ExxonMobil's "Sacrifice Zone" for Tar Sands Pipelines, Fracking

There are few better examples of a “sacrifice zone” for ExxonMobil and the fossil fuel industry at-large than Faulkner County, Arkansas and the counties surrounding it. 

Six weeks have passed since a 22-foot gash in ExxonMobil's Pegasus tar sands Pipeline spilled over 500,000 gallons of heavy crude into the quaint neighborhood of Mayflower, AR, a township with a population of roughly 2,300 peopleThe air remains hazardous to breathe in, it emits a putrid strench, and the water in Lake Conway is still rife with tar sands crude.

These facts are well known.

Less known is the fact that Faulkner County - within which Mayflower sits - is a major “sacrifice zone” for ExxonMobil not only for its pipeline infrastructure, but also for the controversial hydraulic fracturing (“fracking”) process. The Fayetteville Shale basin sits underneath Faulkner County. 

ExxonMobil purchased XTO Energy for $41 billion in Dec. 2009 as a wholly-owned subsidiary. XTO owns 704,000 acres of land in 15 counties in Arkansas. Among them: Faulkner. 

Private Empire” ExxonMobil is now the defendant in a class action lawsuit filed by the citizens of Mayflower claiming damages caused in their community by the ruptured Pegasus Pipeline. ExxonMobil's XTO subsidiary was also the subject of a class action lawsuit concerning damages caused by fracking in May 2011 and another regarding fracking waste injection wells in Oct. 2012. 

This isn't the naturalist novelist William Faulkner's Faulkner County, that's for certain.

Wed, 2013-05-08 12:35Steve Horn
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Interview: Energy Investor Bill Powers Discusses Looming Shale Gas Bubble

On Sat., April 27, I met up with energy investor Bill Powers at Prairie Moon Restaurant in Evanston, IL for a mid-afternoon lunch to discuss his forthcoming book set to hit bookstores on June 18.

The book's title - “Cold, Hungry and in the Dark: Exploding the Natural Gas Supply Myth” - pokes fun at the statement made by former Chesapeake Energy CEO Aubrey McClendon at the 2011 Shale Gas Insight conference in Philadelphia, PA

“What a glorious vision of the future: It's cold, it's dark and we're all hungry,” McClendon said in response to the fact that there were activists outside of the city's convention center. “I have no interest in turning the clock back to the dark ages like our opponents do.” 

What Powers unpacks in his book, though, is that McClendon and his fellow “shale promoters,” as he puts it in his book, aren't quite as “visionary” as they would lead us all to believe. 

Indeed, the well production data that Powers picked through on a state-by-state basis demonstrates a “drilling treadmill.” That means each time an area is fracked, after the frackers find the “sweet spot,” that area yields diminishing returns on gas production on a monthly and annual basis.

It's an argument regular readers of DeSmogBlog are familiar with because of our recent coverage of the Post Carbon Institute's “Drill Baby, Drill” report by J. David Hughes. 

Powers posits this could lead to a domestic gas crisis akin to the one faced in the 1970's.

We discuss these issues and far more in the interview below. 

Fri, 2013-05-03 04:30Steve Horn
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Obama's Former Communications Director's Firm Does PR For Keystone XL Pipeline, Tar Sands Rail Transport

Double-dipping is a “no go” in the real world of eating chips and salsa with a circle of friends but an everyday reality in the world of lobbyists and PR professionals. 

Enter double-dipper Anita Dunn, former White House Communications Director for President Barack Obama who now runs the firm SKDKnickerbocker (Squier Knapp Dunn), a firm that “brings unparalleled strategic communications experience to Fortune 500 companies, political groups and candidates, non-profits, and labor organizations.”

Dip one: TransCanada Corporation, which SKDK does public relations work foras revealed in an Oct. 2012 New York Times investigation. TransCanada is the multinational corporation currently building the contentious southern half of the Keystone XL (KXL) tar sands pipeline, following the dictates of a March 2012 Obama Administration Executive Order. Within months, the fate of the border-crossing Alberta to Port Arthur, TX KXL export pipeline will also likely be decided by the U.S. State Department.

Dip two: Another SKDKnickerbocker client is the Association of American Railroads (AAR), the American Petroleum Institute trade association equivalent for the freight rail industry. Even without KXL - as covered previously on DeSmogBlog - tar sands crude can be moved to targeted markets via freight rail (coupled with pipeline capacity increases of other tubes and potential barging along Lake Superior).

Beneficiaries of tar sands transport via rail include AAR dues-paying member Burlington Northern Santa Fe (BNSF), owned by major Obama donor Warren Buffett via his holding company, Berkshire Hathaway. Shell Oil - a major Alberta tar sands extractor - also pays AAR member dues, which indicates Big Oil understands the strategic importance of rail transport.   

Dunn's firm, in short, stands to gain from tar sands extraction with or without a KXL northern half, a classic case of double-dipping.

Thu, 2013-05-02 05:00Steve Horn
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Keystone Kops: TransCanada Spent $280,000 Lobbying For Keystone XL Tar Sands Pipeline In First Quarter

TransCanada, the multinational corporation hoping to build the controversial northern half of the Keystone XL pipeline, spent over $280,000 on lobbying the U.S. government in the first quarter (Q1) of 2013, according to lobbying disclosure records.

In addition to the $250,000 paid to Paul Elliott - TransCanada's infamous in-house lobbyist and former Secretary of State Hillary Clinton's national deputy campaign manager during her 2008 run for president - three outside firms lobbied on TransCanada's behalf to promote KXL.

The outside firms: Bryan Cave LLP, which reported $20,000 in earnings from TransCanda in 
Q1; McKenna, Long & Aldridge, which was paid $10,000 by TransCanada during Q1; and Van Ness Feldman, which TransCanada paid an amount under $5,000, falling under the mandatory reporting ceiling.

$280,000 is a tiny drop in the bucket compared to TransCanada's $446 million first quarter profits.

The southern half of Keystone XL is currently under construction due to a March 2012 Obama Adminstration Executive Order. The northern half is still in the proposal phase. It would carry Alberta tar sands dilbit to the Gulf Coast refineries in Port Arthur, Texas, where much of it would be exported to the global market.

As seen in an earlier investigation conducted by DeSmogBlog, many of TransCanada's lobbyists for KXL have direct ties to the Obama administration. The U.S. State Department has been tasked with the final decision on the pipeline's cross-border northern section, a risky conduit between the carbon intensive Alberta tar sands and further global climate disruption.

Tue, 2013-04-30 05:00Steve Horn
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Sand Land: Fracking Industry Mining Iowa's Iconic Sand Bluffs in New Form of Mountaintop Removal

This is a collaborative report by DeSmog's Steve Horn and Mint Press News staff writer Trisha Marczak.

Within immediate vicinity of a central battleground of the Black Hawk War of 1832, land rife with a resource necessary for hydraulic fracturing (“fracking”) is in the crosshairs of an industry prepared to turn the area into a battle zone once again.

The resource? Frac sand – officially known by the industry as fine-grained silica sand – used as a proppant when blasted thousands of feet down the well during the ecologically volatile fracking process as part of the chemical cocktail that serves as the subject of Josh Fox’s new documentary film, “Gasland 2.”

The rolling hills of Northeastern Iowa’s Allamakee County defy the state’s stereotypical flat-land geography, and local residents boast of the serene beauty and rich geological history. Yet those same bluffs also play host to robust reservoirs of frac sand.

In order to extract the frac sand, mining corporations have adopted a method of newfangled mountaintop removal of sorts, blasting away entire hills laced with this frac sand to access this new “prize.” While devastating the landscape, it’s justified by Big Oil as necessary because the Midwest’s unparalleled geological characteristics have transformed it into a “New Saudi Arabia for frac sand.”

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