New York state

Sun, 2014-04-06 11:18Sharon Kelly
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Responding to Investor Pressure, ExxonMobil Agrees to Disclose Fracking Risks

ExxonMobil, the nation's largest oil and gas company, will begin disclosing risks associated with shale drilling and fracking to investors, in response to a long-running campaign by a coalition of shareholders.

In February, the groups of investors in a handful of major oil and gas companies including Exxon, Chevron and EOG Resources, demanded for the fifth year in a row more information from companies about the risks associated with fracking. The motion won the support of over 30 percent of Exxon shareholders — an unusually strong showing for a shareholder resolution.

On Thursday, the investors’ coalition announced that Exxon was the first company to agree to disclose risks. The company will publish a report by September that will describe fracking’s potential harm to air quality, water and roads, as well as risks associated with the chemicals used. Exxon agreed to follow criteria identified in a 2013 report, cited by the coalition and called Disclosing the Facts: Transparency and Risk in Hydraulic Fracturing Operations, in which Exxon received a failing grade for its transparency.

We have seen the significant risks that come from hydraulic fracturing activities,” said New York City Comptroller Scott M. Stringer, custodian and investment advisor for the New York City Pension Funds’ $144 billion in assets, including $1.02 billion in ExxonMobil stock. “Corporate transparency in this arena is truly necessary for assessing risk and ensuring that all stakeholders have the information they need to make informed decisions.”

However, Exxon’s first report will not disclose data on methane leaks – information that shareholders argued strongly should be made public. Natural gas is primarily made of methane, a potent greenhouse gas that has climate changing effects over 80 times more powerful than carbon dioxide during the first two decades after it escapes to the Earth’s atmosphere.

Tue, 2013-03-05 05:00Sharon Kelly
Sharon Kelly's picture

Pennsylvania Failing to Sanction Drillers for Fracked Well Failures

For the past several years, the shale gas industry has argued that oversight of fracking is getting tighter and that the amount of methane gas leaking from their wells is less than some have speculated.

In Pennsylvania, however, the opposite is true, according to a white paper delivered to New York state regulators by Cornell engineering professor, Anthony Ingraffea. Inspection data from the state indicate that over 150 Marcellus shale wells in Pennsylvania had severe flaws that have led to sometimes large leaks and yet the operators of those wells were never issued violations by regulators for these breaches of state law.
 
By failing to cite drillers when things go wrong, Pennsylvania environmental regulators have for the past three years obscured the rate at which Marcellus wells leak, creating a falsely optimistic picture. Leaks at dozens of wells were described by state inspectors in their report notes, but violations were never issued.

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