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Global Shale Fail: Oil Majors Leaving Fracking Fields Across Europe, Asia

With some analysts predicting the global price of oil to see another drop, many oil majors have deployed their parachutes and jumped from the hydraulic fracturing (“fracking”) projects rapidly nose-diving across the world.

As The Wall Street Journal recently reported, the unconvetional shale oil and gas boom is still predominantly U.S.-centric, likely to remain so for years to come.

“Chevron Corp., Exxon Mobil Corp. and Royal Dutch Shell PLC have packed up nearly all of their hydraulic fracturing wildcatting in Europe, Russia and China,” wrote The Wall Street Journal.

“Chevron halted its last European fracking operations in February when it pulled out of Romania. Shell said it is cutting world-wide shale spending by 30% in places including Turkey, Ukraine and Argentina. Exxon has pulled out of Poland and Hungary, and its German fracking operations are on hold.” 

Though the fracking boom has taken off in the U.S. like no other place on Earth, the U.S. actually possesses less than 10 percent of the world’s estimated shale reserves, according to The Journal.

Despite this resource allotment discrepency, the U.S. Energy Information Administration (EIA) recently revealed that only four countries in the world have produced fracked oil or gas at a commercial-scale: the United States, Canada, China and Argentina.

Global Shale Fail
Image Credit: U.S. Energy Information Administration

European Activists Protest First Major Tar Sands Shipment from Canada, Threaten Escalating Actions

Protests erupted in Spain last week at the site of the first major delivery of tar sands crude imported from Canada via the United States.  

According to a news report by EurActiv.com, an online news service focused on EU affairs, 600,000 barrels of Western Canada Select (WCS) crude were due to arrive at the port of Bilbao, Spain, imported by the Spanish oil company Repsol. According to MarineTraffic.com data on the tanker's location, it appears the delivery at Bilbao occurred on 29-30 May.

The Spanish oil giant is using this delivery as ‘a test’ to determine if future bulk deliveries are feasible.   

On 29 May, about 50 protesters staged a demonstration outside Repsol's Bilbao refinery, after rumours spread that the dirty fuel shipment had already arrived.  

The protesters, including local residents and environmentalists from all over Europe, have vowed to increase the scope and organization of the protests if shipments continue.  

Shale Gas and Foreign Policy: A "Highly Uncertain" Gamble for America

The Obama administration has systematically ignored the environmental risks of fracking and on several occasions it has even suppressed science to pave the way for increased shale drilling, according to a recent report by the environmental group Earthworks. The report focuses on Karnes County, TX, in the heart of the Eagle Ford shale region, where state regulators found levels of airborne contaminants so high that inspectors evacuated themselves – but failed to fine the companies involved or warn residents living nearby.

From the regulators in Texas to the United States EPA, government agencies are running away from their own data showing that fracking pollution is harming communities,” said Jennifer Krill, Executive Director of Earthworks. “We are seeing a pattern from Karnes County TX to Dimock PA to Pavilion WY - where oil and gas is being produced, oil and gas impacts are being ignored.”

For the past several years the oil and gas industry has enticed Republicans and Democrats alike with promises that shale reserves can offer the U.S. renewed energy independence. The hope is that vast and newly-tapped supplies of domestic gas and oil will help shift the geopolitical balance, lessening American and European reliance on Russia and countries in the Middle East. This newly perceived leverage has even emerged recently as a bargaining chip in trade talks and negotiations with gas-importers like Japan.

The Obama administration has hailed the drilling boom, sending strong signals about its support for continued fracking. “The natural gas boom has led to cleaner power and greater energy independence,” President Obama said in his 2013 State of the Union address. “We need to encourage that.”

But banking on the continued shale boom is a major gamble, as productivity has already fallen in shale gas plays across the U.S.

UK Opposed to Europe’s Tar Sands Import Ban

While most European countries are working on a proposal that would effectively ban the use of Canadian tar sands in the European Union, the United Kingdom has made it clear that they will not support any measure to reduce their reliance on tar sands. Britain joins the Netherlands as one of only two countries that want to continue to have the option to use oil derived from Canadian tar sands.

The EU is working to produce a new “fuel directive” this year that would reduce the amount of emissions acceptable from fuels used for transportation. The directive would require a 6% reduction in the amount of emissions from vehicle fuel over the next 9 years. Because the emissions from tar sands run about 23% higher than those from traditional fossil fuels, this would mean that their use in the EU would be effectively prohibited.

European Fracking Lobby Group Caught Peddling Bogus Report

You know, it’s a hard life being a multinational oil executive. Billion dollar profits to reap, climate deniers to fund, indigenous and impacted community rights to trample all over. So I thought I’d help them out with some strategic planning advice. Here’s my quick guide on how to lobby based on bogus information, in three easy steps:

Step 1. Find a report that’s related (at least somewhat) to the issue you want to lobby on.

Step 2. Rewrite it completely, twisting up all the facts and drawing the opposite conclusion. Publish.

Step 3. Wine and dine all of your government friends while exhalting that you’re “just trying to help them” by providing them with some “useful analysis” that will save them money.

Sounds far fetched, doesn’t it?

It’s not.

Job Security Unstable? Renewable Energy is Looking for Employees.

Author Jeff Goodell's quote, “[a] full-blown push for clean energy could unleash a jobs bonanza that would make what happened in Silicon Valley in the 1990s look like a bake sale,” rings true when you look at yesterday's job report published by the UN.

The report found that solving global warming has resulted in world wide employment gains.


Rich nations blamed for global warming, but not for all the right reasons

As forecast, China has overtaken the U.S. in carbon-dioxide emissions due largely to China’s heavy reliance on coal. Another factor is its well-publicized population of 1.3 billion. But per-capita emissions are much higher in developed countries, where populations are exploding due to immigration. The U.S. already releases four times the carbon per-capita each year as China. And the U.S. population, which has been doubling every 40 years, is headed for one billion by the end of this century!

Scientists Cancel The Day After Tomorrow

Mainstream climatologists who have feared that global warming could have the paradoxical effect of cooling northwestern Europe or even plunging it into a small ice age have stopped worrying about that particular disaster, although it retains a vivid hold on the public imagination.

The bottom line is that the atmosphere is warming up so much that a slowdown of the North Atlantic Current will never be able to cool Europe,' said Helge Drange, a professor at the Nansen Environmental and Remote Sensing Center in Bergen, Norway.”

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