natural gas

Tue, 2011-11-15 10:57Steve Horn
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Food and Water Watch Report Exposes Lies About Oil and Gas Industry Jobs Claims

A report released today by Food and Water Watch (FWW) titled, “Exposing the Oil and Gas Industry’s False Jobs Promise for Shale Gas Development: How Methodological Flaws Grossly Exaggerate Jobs Projections,” exposes one of the key lies at the heart of the domestic oil and gas debate in the United States – inflated jobs potential.

The oil and gas industry has tried to stand on three legs, claiming that shale gas is good for the environment, good for American energy security and good for the economy. The first two legs have already been kicked out, and our new analysis kicks out the third,” said Food & Water Watch Executive Director Wenonah Hauter in a press release. “They have no legs left to stand on.”

Jobs Numbers Hugely Overestimated

FWW's study hones in on the arguments made in the July 2011 report written by the Public Policy Institute of New York State (PPINYS), titled, “Drilling for Jobs: What the Marcellus Shale Could Mean for New York.” That report concluded that by 2018, the development of 500 new shale gas wells each year in five key counties in the state of New York could create 62,620 new jobs.

The report is often cited in the mainstream media, particularly when attemping to “balance” arguments against fracking in the Marcellus Shale and other shale basins around the United States, namely that it is a dirty fossil fuel with a procurement process that is inherently toxic.

After sifting and winnowing through the scores of methodological flaws found in the PPINYS report, FWW discovered that, contrary to the rosy jobs numbers publicly disseminated, very few jobs will actually be created by drilling in these counties, and PPINYS has grossly over-projected job creation.

Rather than over 62,000 potential jobs, FWW's study shows that only 3,469 jobs would be created – a stark difference indeed.  

Thu, 2011-10-27 13:34Brendan DeMelle
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Massive Natural Gas Export Deal Inked by BG Group, So Much for Industry's "Domestic Energy" Claims

The natural gas industry's favorite public relations ploy about the necessity of hydraulic fracturing (fracking), the process through which “clean natural gas” is now procured, is that the patriotic gas industry is championing the shale gas boom for domestic consumption and for “national security purposes.” We now know definitively that this is pure propaganda.

Enter the smoking gun, a 20-year $8 billion agreement signed between BG Group, short for British Gas Group, and Houston-based Cheniere Energy.

The deal calls for BG Gas to export liquefied natural gas, or LNG (natural gas that has been converted temporarily to liquid form for ease of storage or transport), from Cheniere's Sabine Pass LNG export terminal, located on the Gulf Coast in Louisiana, out to the highly profitable global market, chiefly in Asia and Europe. 

Reuters referred to the deal as “a new chapter in the shale gas revolution that has redefined global markets.”

The Wall Street Journal reports that BG is thrilled that it will now be able to “buy gas comparatively cheaply and sell it for much higher prices in Europe and Asia.” The deal is just the beginning of a huge industry rush to export U.S. gas, according to the paper:

 Energy companies in the U.S., Canada and Australia are planning or have already begun building more than a dozen projects to liquefy and export natural gas as they seek to capitalize on growing demand for liquid-gas imports. Asia is the hottest market: its demand for liquefied gas is expected to grow 68% between 2010 and 2020, according to advisory firm Poten & Partners.

Fri, 2011-10-21 16:40Brendan DeMelle
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Gas Industry Front Group Called Out By RFK Jr Attempts To Spin Facts Yet Again

The oil and gas industry has a long history of resisting public accountability and protective standards, and generally avoiding tough questions about its practices and attacking its critics. Just yesterday, Robert F. Kennedy, Jr. wrote a piece in the Huffington Post titled, “The Fracking Industry's War On The New York Times – And The Truth,” about this evasive behavior in the context of the industry’s current embrace of fracked unconventional gas and the many questions about the safety of fracking.

Kennedy (full disclosure - Bobby is my former boss and a good friend) applauded New York Times' reporter Ian Urbina for his investigative efforts in his latest installment titled, “Rush to Drill for Natural Gas Creates Conflicts With Mortgages,” part of the NY Times extensive and ongoing “Drilling Down” series on the numerous perils associated with the rush to drill for gas.

A short recap on what that story found: People have signed over a million oil and gas leases in the past decade, but the leases sometimes let gas companies use their land in environmentally risky ways. Banks are not paying attention and often don’t know about these leases, so they pass along mortgages to investors that carry undisclosed risks, which is analogous to the way that the sub-prime mortgage disaster unfolded. The conflicts between the leases and the mortgage rules are clear, verified and wide-reaching.

Infamous 'Energy in Depth' Front Group Goes on the Attack

As if on cue, the oil and gas industry demonstrated Kennedy’s point, almost instantaneously attacking Urbina, yet again. 

The fracked gas industry’s chief apologists – Energy in Depth (EID)** – which I previously revealed as a front group launched by some of the largest oil companies on the planet (despite its claims to “mom-n-pop” roots), posted a blog titled, “Lenders’ Bagels?,” desperately attempting to divert attention away from legitimate and serious questions raised by Urbina's New York Times story about the way that oil and gas leases impact mortgages. 

The EID piece is noteworthy for a couple reasons: It entirely ducks the very real conflicts that the New York Times highlighted, and it is riddled with factual inaccuracies.

Fri, 2011-10-14 07:33Ben Jervey
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Dominion Seeks To Export Marcellus Shale Gas While Claiming Its Necessity for U.S. Energy Security

As energy companies scramble to develop the Marcellus Shale and other natural gas reserves locked up in shale formations, you’ll hear a lot about American “energy security” and reducing dependence on fossil fuel imports. You won’t hear a lot about companies’ plans to export the gas.

It’s becoming clear, however, that gas companies like Dominion Resources and Jordan Cove have big plans for exporting the natural gas that they’re rushing to frack.

First, some background. To export or import natural gas, companies can either transport it through pipelines, or ship it as liquefied natural gas (LNG). LNG is natural gas cooled to -260 degrees Fahrenheit, at which point the gas becomes a liquid.

Currently, the vast majority of natural gas exports from the United States travel through pipelines into Mexico and Canada. Of the 1,136,789 million cubic feet of natural gas exported from the United States in 2010, only 64,763 million cubic feet were exported as liquefied natural gas. In other words, only about 5 percent of natural gas exports currently leave our borders as LNG from coastal ports.


  

Fri, 2011-10-07 08:54Steve Horn
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In Throes of Keystone XL Controversy, Obama Admin OKs Alaska Offshore Drilling

With all eyes on the ongoing battle over whether or not the Obama Administration and the State Department will approve the disastrous Keystone XL pipeline, it was easy to lose another huge piece of news in the scuffle pertaining to the Obama White House. 

On October 3, the Obama Interior Department rubber stamped approval for offshore drilling in the Arctic off the northwest coast of Alaska in the Chibucki Sea. Reported the ​Wall Street Journal:

The Obama administration said Monday it was moving forward with oil-drilling leases off the coast of Alaska issued by the Bush administration in 2008, a victory for oil companies in the battle over Arctic Ocean drilling.

(Snip)

The Interior Department's decision is the latest example of the Obama administration siding with energy companies against environmentalists amid a weak economy. Last month, President Barack Obama withdrew proposed ozone-emission rules that businesses said would have killed jobs.

According to an Alaska Dispatch​ story, the area that received drilling approval is 2.8 million acres and companies bid $2.6 billion in an auction for drilling rights, with fossil fuel conglomerates Shell and ConocoPhillips leading the way. The Associated Press​ (AP) wrote, “Shell Gulf of Mexico Inc…spent $2.1 billion for the leases in 2008.” 

Wed, 2011-10-05 13:50Carol Linnitt
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A Best Practice a Day Keeps the Feds Away: API Workshop on Fracking "Excellence"

The ongoing American Petroleum Institute (API) workshop “Commitment to Excellence in Hydraulic Fracturing” could be more simply titled “Commitment to Hydraulic Fracturing.” The API poses as an industry leader, working to develop best practices and strengthen operating procedures. But these days the sheep’s-clothing is starting to wear thin. After all, the “Commitment to Excellence” workshop has little to do with improving industry standards and everything to do with keeping the feds at bay.

The gas industry enjoys a number of exemptions from environmental statutes at the federal level. These exemptions, from laws like the Clean Air Act, the Safe Drinking Water Act and the Resource Conservation and Recovery Act, mean that oversight of the industry occurs at the state level, an arrangement that some feel facilitates rather than regulates gas drilling. So understandably, federal involvement is something the industry wants to avoid – and keynote speaker and former U.S. Senator Byron Dorgan was at the workshop to tell them just how to do that.
Tue, 2011-10-04 14:54Carol Linnitt
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Senate Hearing on Obama's Fracking Panel Excludes External Testimony, Glosses Over Threats

When President Obama decided to include unconventional gas as a central pillar in his “Blueprint for a Clean Energy Future” he must have had an idea that this was going to create controversy. Some would say that a clean energy future and fracked gas are, to put it lightly, at odds with one another.  Perhaps that is why the President directed his Secretary of Energy Steven Chu to form a special advisory board to investigate the growing number of scientists, doctors, independent experts, environmental NGOs, and media outlets - DeSmogBlog included - concerned that fracking for unconventional gas threatens public health, the environment and the global climate.

Secretary Chu’s panel is officially known as the Natural Gas Subcommittee and is a project of the U.S. Energy Advisory Board. This panel, now often referred to as Obama’s Fracking Panel, has been formally discredited by a coalition of leading scientists and also by a collective of leading citizen and environmental groups. Most notoriously, the panel was called out for its strong financial ties to the gas industry.   
 
The panel was given 90 days to document their preliminary findings, which they released in a report on August 18th. Today, the U.S. Senate Committee on Energy and Natural Resources held a hearing to examine those early findings.   
 
From the outset, the hearing looked like the perfect opportunity for the subcommittee to congratulate itself for its own work. 
Tue, 2011-10-04 02:26Steve Horn
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Koch Brothers "Secret Sins" Exposed In Bloomberg News Investigation

Bloomberg has released a whopping 21-page investigative and historical essay on the many crimes of the infamous Koch Brothers, their company Koch Industries and its array of subsidiaries. The feature piece in Bloomberg Markets Magazine​'s November edition, the article is titled, “Koch Brothers Flout Law With Secret Iran Sales,” although the title is a bit of a misnomer – while part of the story, the Iran angle is but a small piece of it. 

Indeed, the article leaves any person with faith in the American legal system wondering, “How could these guys not possibly be locked up in prison?” A few stunning article highlights (or lowlights) show that it's not for lack of contemptible behavior, that's for certain:

Tue, 2011-09-27 14:40Carol Linnitt
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World's Biggest Fracking Operations: CBC Covers the Shale Gas Boom in BC

Yesterday the Canadian Broadcast Corporation (CBC) announced their investigative series on fracking in British Columbia. The feature report will cover the rise of the shale boom in the province’s remote northeast corner. The CBC radio report, called Cornering Gas, presents an opportunity for people to voice their concerns about the controversial fracking process and take part in the growing debate over BC’s role in the country’s energy future.

As the CBC reports, shale gas in BC has ballooned into a multi-billion-dollar industry and is expected to transform the province’s remote regions into bustling boom towns. CBC host Robert Boane and reporter Betsy Trumpener traveled to Fort Nelson to conduct interviews within a 'boom no bust' atmosphere. Fort Nelson, a town of 4000, is expected to triple in size. 

Two of Canada’s most plentiful shale gas deposits are in the area where some of the largest fracking operations in the world are taking place. Kerry Guy, speaking on behalf of the Canadian Association of Petroleum Producers (CAPP), told the CBC they currently estimate more than a century’s worth of shale gas in the region.

But the shale gas boom in BC has brought a lot more in its wake than just short-term economic opportunity.

Sun, 2011-09-25 12:13Steve Horn
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Pentagon Back to Tried and True PR Tactic - Greenwashing

The Pentagon public relations and propaganda machine is at it again. Working overtime to convince pundits and citizens of the benevolence of its “democracy spreading” missions abroad,  some notables have drank the kool-aid

In a recent article titled, “The military’s historic embrace of smart energy,” Grist's David Roberts wrote, 

The U.S. military's embrace of energy efficiency and renewable energy is going to be one of the great stories of the coming decade. It will be a story about technology, the changing face of warfare, geopolitics in the 21st century, and the struggle to change one of the world's largest bureaucracies…For decades, the lines of warfare on climate change and clean energy have been drearily familiar and amazingly resistant to change. If it follows through on its promises, the Department of Defense – the largest consumer of oil and electricity in America – has the potential to change all that.

Furthermore, in March 2010, the Center for American Progress penned a holistic report titled, “It’s Easy Being Green: The Pentagon Goes Green One Wedge at a Time.”

While a nice and hopeful sentiment, this flies in the face of both history, as well as present day reality of the Pentagon's activities abroad. A review, then, is in order.

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