Mexico

“There Could Be Trouble” As US Fracking Revolution Prepares to Go Global

A new report showing the U.S. overtaking Russia as the leading producer of oil and gas in the world should put to rest any doubt that the fracking revolution that has occurred in the U.S. is for real, or as BP’s chief economist put it, “profound.”

And now with the recent Environmental Protection Agency report on the impacts of fracking on drinking water being touted by the American Petroleum Institute as proof that fracking is safe, the industry’s insatiable greed got another boost. More recently,  the Harvard Business School has also joined in the discussion calling for the end of the ban on exporting U.S. crude oil and warning about the implications of missing the “opportunity” offered by fracking.

Mexico and American Oil Companies Want a Crude Swap to Open Loophole in the Oil Export Ban

As politicians from oil-producing states work to draw up bills to end the ban on oil exports, Mexican officials are “confident” that the country will soon be importing American crude through a backdoor loophole in the law.

Back in January, Mexico applied for a crude swap that, if approved, would allow the U.S. to export 100,000 barrels of oil per day to Mexico. This would be unrefined crude — refined products such as diesel and gasoline are not subject to the ban — likely from the Eagle Ford and Permian shale fields, where fracking has produced a glut of light, sweet crude in recent years.

Showdown in Trans Pecos: Texas Ranchers Stand Up to Billionaires' Export Pipeline

Mexico’s landmark energy reforms are already having impacts north of the border, and nowhere more acutely than Texas. One pipeline project in particular is raising hackles in some Far West Texas communities, where residents are troubled by the prospect of hosting a pipeline that would be built for the express purpose of exporting natural gas across the border.

Mexico's Pemex Plagued By Deadly Offshore Explosions and Major Pipeline Spills

It's been a disastrous year for Pemex, the state-owned Mexican oil company at the center of the nation’s landmark energy reforms.

In just over a month, Petroleos Mexicanos (Pemex) starred in three tragic incidents, two fatal. 

Open for Business: First Major Deal Since Energy Reforms Will Bring Fracked Gas to Mexico

For the first time in 76 years, a piece of Mexico’s oil and gas infrastructure has been sold to a foreign investor, and the deal will help bring fracked gas from Texas’s Eagle Ford shale region into Mexico. In this first major deal since the country’s landmark energy reforms, Pemex—the state-owned oil company that had kept domain over the country’s vast petroleum and natural gas reserves since they were nationalized back in 1938—sold a 45-percent stake of a prospective natural gas pipeline project to the United States-based investment funds BlackRock and First Reserve.

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.

"No Turning Back:" Mexico's Looming Fracking and Offshore Oil and Gas Bonanza

After generations of state control, Mexico’s vast oil and gas reserves will soon open for business to the international market.

In December 2013, Mexico’s Congress voted to break up the longstanding monopoly held by the state-owned oil giant Petroleos Mexicanos — commonly called Pemex — and to open the nation’s oil and gas reserves to foreign companies.

The constitutional reforms appear likely to kickstart a historic hydraulic fracturing (“fracking”) and deepwater offshore oil and gas drilling bonanza off the Gulf of Mexico.

“This reform marks a major breakthrough in Mexico’s economic history only comparable to the signing of the North America Free Trade Agreement (NAFTA) in 1992,” international investing and banking giant Banco Bilbao Vizcaya Argentaria (BBVAwrote in a January 2014 economic analysis.

What does this mean for the oil and gas industry in Mexico? And for the workers and those who live above these oil and gas plays or along the pipeline routes that will funnel the liquids to refineries? And how about for the Earth’s atmosphere?

Can Mexico’s fossil fuel infrastructure handle the boom? Can the country spare the precious freshwater supplies needed for thirsty fracking operations in an era of increasingly severe droughts and drinking water shortages? Can environmental, safety and public health regulations possibly keep up with this industrial boom?

DeSmogBlog will examine all these issues and more as Mexico opens its fossil fuel reserves to international exploitation in the weeks and months ahead. But, first, an overview of the state of play in Mexico’s energy reforms.

LNG Groundhog Day: Cheniere Energy Signs Yet Another Gas Export Deal on Gulf Coast

Credit: Oleksandr Kalinichenko / Shutterstock

Another day, another unconventional gas export deal signed. Nascent North American LNG (liquefied natural gas) export deals are happening so fast and furiously that it is hard to keep track of them all.

The latest: On November 21, Cheniere Energy Partners signed a 20-year LNG export deal with Gas Natural Fenosa, an energy company which operates primarily in Spain but also in such countries as Italy, Mexico, Colombia, Argentina, and Morocco. Cheniere will maintain the Sabine Pass LNG export terminal located off of Sabine Lake between Texas and Louisiana, which feeds into the Gulf of Mexico, while Gas Natural Fenosa will ship the gas to the global market.

Cheniere, which made waves when its CEO Charif Souki announced that his corporation's business model would center exclusively around LNG export terminals, also recently signed a 20-year export deal with BG Group, short for British Gas Group.

Like the recent export deal with BG Group, which involves carrying fracked unconventional gas from various shale basins around the United States via pipelines to the Sabine Pass LNG export terminal, the Gas Natural Fenosa deal also centers around the export of gas from Sabine Pass to the global market.

Cancun Showdown: Results at the UN Climate Talks More Important Than Ever

The United Nations Climate Change talks kicked off yesterday in Cancun.  For many, the mood began much more sombrely than last year.  Copenhagen attracted celebrity clout, world leader buzz, and a sense of optimism for a binding agreement.  For all Copenhagen promised, however, those who hoped for a fair and binding global deal left empty handed.  

Along with analysts, pundits and the blogosphere, the U.S., UK and EU are already downplaying the chances of a deal being reached in the next fortnight.  And as Desmogblog reported today, those fears may not be in vain with threats that the U.S. may pull out of the talks early

The talks during the next two weeks are going to focus largely on forests and finance, but also on questions about the legal status of a future agreement and emissions targets, which are expected to be tackled beginning next week when ministers arrive.

The sense of general pessimism around the talks has led some to question the viability of the UN Framework Convention on Climate Change (UNFCCC) to deliver, and has led others to manufacture doubt over the scientific basis for action.  A new report released by Oxfam argues that despite the disconsolate atmosphere, a year of extreme weather conditions demonstrate more than ever that a binding climate agreement under the UN auspices is imperative.  The report, More than ever: climate talks that work for those that need them most, presents the weather events that have devastated much of the planet in the last year, and the even more harrowing costs of climate inaction.  

According to the report, at least 21,000 people died due to weather-related disasters in the first nine months of this year – more than twice the number for the whole of 2009.  “This year is on course to experience more extreme-weather events than the 10-year average of 770. It is one of the hottest years ever recorded,” wrote Tim Gore, Oxfam’s EU climate change policy adviser and report’s author.

COP16 Climate Talks: U.S. Position May See it Leave Cancun Early

It has not taken long for the United States’ diplomatic team to establish the country’s hard-nosed negotiating position at the United Nations climate conference in Cancun, Mexico (COP16).  The nation’s stance is so firm, it might lead the delegation to abandon the proceedings early.

In the first day of the negotiations, the United States made it clear that it would only sign on to a “balanced package” that requires certain criteria being satisfied. 

According the UK’s The Guardian newspaper this criteria includes: developing nations committing to emissions cuts and the establishment of a verifiable system of accounting for these cuts.  If these features were included in a treaty, the United States would agree to the provisions that are important to emerging economies such as climate finance, technology sharing, and deforestation.

In a briefing with journalists, Todd Stern, the U.S.’s chief climate envoy, said, “We’re either going to see progress across the range of issues or we’re not going to see much progress.  We’re not going to race forward on three issues and a take a first step on other important ones.  We’re going to have to get them all moving at a similar pace.”

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