natural gas

Mon, 2012-09-17 12:06Farron Cousins
Farron Cousins's picture

U.S. Government Significantly Underestimating Costs Of Climate Change And Dirty Energy

A new study released today shows that the U.S. government is using faulty calculations and outdated information to determine the costs of energy and climate change in America. The study was written by Chris Hope from the University of Cambridge and Laurie Johnson of the Natural Resources Defense Council, and published in the Journal of Environmental Studies and Sciences.

Current government models would have us believe that fossil fuels provide the cheapest sources of electricity for the United States, but the new study says that the numbers being used are misleading, as they do not take into account all of the costs, specifically those related to climate change, that these sources of energy carry.

From NRDC:

Wed, 2012-09-12 16:14Guest
Guest's picture

What's The Fracking Problem With Natural Gas?

This is a guest post by David Suzuki with contributions from David Suzuki Foundation Communications Manager Ian Hanington.

At least 38 earthquakes in Northeastern B.C. over the past few years were caused by hydraulic fracturing, commonly called fracking, according to a report by the B.C. Oil and Gas Commission. Studies have found quakes are common in many places where that natural gas extraction process is employed.
 
It’s not unexpected that shooting massive amounts of water, sand and chemicals at high pressure into the earth to shatter shale and release natural gas might shake things up. But earthquakes aren’t the worst problem with fracking.
 
Hydraulic fracturing requires massive amounts of water. Disposing of the toxic wastewater, as well as accidental spills, can contaminate drinking water and harm human health. And pumping wastewater into the ground can further increase earthquake risk. Gas leakage also leads to problems, even causing tap water to become flammable! In some cases, flaming tap water is the result of methane leaks from fracking. And methane is a far more potent greenhouse gas than carbon dioxide!
 
Those are all serious cause for concern—but even they don’t pose the greatest threat from fracking. The biggest issue is that it’s just one more way to continue our destructive addiction to fossil fuels. As easily accessible oil, gas and coal reserves become depleted, corporations have increasingly looked to “unconventional” sources, such as those in the tar sands or under deep water, or embedded in underground shale deposits.

Fri, 2012-08-10 10:27Farron Cousins
Farron Cousins's picture

Republican Ohio Governor Kasich's Trillion Dollar Shale Gas Lie

About the only positive thing you can say about industry-funded astroturf groups is that they at least base their misinformation campaigns on phony “studies” and “reports.” Their lies are based on SOMETHING.

The same cannot be said of Republican Ohio Governor John Kasich, who has come up with a whopper based on absolutely nothing. Kasich recently told the press that his state of Ohio is sitting on top of $1 trillion worth of natural gas that’s just ripe for fracking.

Obviously, this would be quite an economic boom for not just Ohio, but the entire United States. The only problem is that, again, Kasich isn’t basing his estimate on any studies, reports, documents, surveys, or anything even remotely credible. It appears that Kasich is telling reporters that this trillion dollar bonanza number is what he overheard from members of the natural gas industry.

Fri, 2012-08-03 05:00Steve Horn
Steve Horn's picture

Delaware Tax Haven: The Other Shale Gas Industry Loophole

Most people think of downtown Houston, Texas as ground zero for the oil and gas industry. Houston, after all, serves as home base for corporate headquarters of oil and gas giants, including the likes of BP America, ConocoPhillips, and Shell Oil Company, to name a few.

Comparably speaking, few would think of Wilmington, Delaware in a similar vein. But perhaps they should, according to a recent New York Times investigative report by Leslie Wayne.

Wayne's story revealed that Delaware serves as what journalist Nicholas Shaxson calls a “Treasure Island” in his recent book by that namesake. It's an “onshore tax haven” and an even more robust one than the Caymen Islands, to boot.

The Delaware “Island” is heavily utilized by oil and gas majors, all of which are part of the “two-thirds of the Fortune 500” corporations parking their money in The First State.

Delaware is an outlier in the way it does business,” David Brunori, a professor at George Washington Law School told The Times. “What it offers is an opportunity to game the system and do it legally.”

The numbers are astounding. “Over the last decade, the Delaware loophole has enabled corporations to reduce the taxes paid to other states by an estimated $9.5 billion,” Wayne wrote

“More than 900,000 business entities choose Delaware as a location to incorporate,” explained another report. “The number…exceeds Delaware's human population of 850,000.”

Sat, 2012-07-28 06:00Steve Horn
Steve Horn's picture

The Real Train Wreck: ALEC and "Other ALECs" Attack EPA Regulations

When business-friendly bills and resolutions spread like wildfire in statehouses nationwide calling for something as far-fetched as a halt to EPA regulations on greenhouse gas emissions, ALEC is always a safe bet for a good place to look for their origin.

In the midst of hosting its 39th Annual Meeting this week in Salt Lake City, Utah, the American Legislative Exchange Council (ALEC) is appropriately described as an ideologically conservative “corporate bill mill” by the Center for Media and Democracy, the overseer of the ALEC Exposed project. 98 percent of ALEC's funding comes from corporations, according to CMD.

ALEC's meetings bring together corporate lobbyists and state legislators to schmooze and then vote on what it calls “model bills.” Lobbyists, as CMD explains, have a “voice and a vote in shaping policy.” In short, they have de facto veto power over whether the prospective bills they present at these conferences become “models” that will be distributed to the offices of politicians in statehouses nationwide.

For a concise version of how ALEC operates, see the brand new video below by Mark Fiore.

Fri, 2012-07-27 03:30Steve Horn
Steve Horn's picture

Exposed: Pennsylvania Act 13 Overturned by Commonwealth Court, Originally an ALEC Model Bill

On July 26, the Pennsylvania Commonwealth Court** ruled PA Act 13 unconstitutional.*** The bill would have stripped away local zoning laws, eliminated the legal concept of a Home Rule Charter, limited private property rights, and in the process, completely disempowered town, city, municipal and county governments, particularly when it comes to shale gas development.

The Court ruled that Act 13 “…violates substantive due process because it does not protect the interests of neighboring property owners from harm, alters the character of neighborhoods and makes irrational classifications – irrational because it requires municipalities to allow all zones, drilling operations and impoundments, gas compressor stations, storage and use of explosives in all zoning districts, and applies industrial criteria to restrictions on height of structures, screening and fencing, lighting and noise.”

Act 13 – pejoratively referred to as “the Nation's Worst Corporate Giveaway“ by AlterNet reporter Steven Rosenfeld – would have ended local democracy as we know it in Pennsylvania.

“It’s absolutely crushing of local self-government,” Ben Price, project director for the Community Environmental Legal Defense Fund (CELDF), told Rosenfeld. “It’s a complete capitulation of the rights of the people and their right to self-government. They are handing it over to the industry to let them govern us. It is the corporate state. That is how we look at it.”

Where could the idea for such a bill come from in the first place? Rosenfeld pointed to the oil and gas industry in his piece.

That's half of the answer. Pennsylvania is the epicenter of the ongoing fracking boom in the United States, and by and large, is a state seemingly bought off by the oil and gas industry.

The other half of the question left unanswered, though, is who do oil and gas industry lobbyists feed anti-democratic, state-level legislation to?

The answer, in a word: ALEC.

Tue, 2012-07-17 01:08Steve Horn
Steve Horn's picture

Does Red Leaf's "EcoShale" Technology Greenwash Oil Shale Extraction?

At the Clinton Global Initiative in 2008, former Vice President Al Gore called the possibility of fossil fuel corporations extracting oil shaleutter insanity.” 

Insanity, though, doesn't serve as a hinderance for deeply entrenched and powerful fossil fuel interests.

Oil shale, also known as kerogen, should not be confused with shale gas or shale oil, two fossil fuels best known from Josh Fox's “Gasland.” As explained in a report by the Checks and Balances Project,

Oil shale itself is a misnomer. It is actually rock containing an organic substance called kerogen. The rocks haven’t been in the ground for enough time or under enough pressure to become oil. Oil companies need to recreate geological forces to produce any energy from it. Ideas for developing oil shale have included baking acres of land at 700 degrees for three to four years and even detonating an atomic bomb underground.

The really “insane” part of the equation: oil shale production, which has yet to begin, would be ecologically destructive to the extreme.

“Because oil shale is a rock, commercial production would release 25% to 75% more greenhouse gas emissions than conventional oil,” wrote the Western Resource Advocates. Furthermore, like tar sands production and shale oil/gas production, oil shale production is a water-intensive process.

Adding insult to injury, in the 100 years of attempted commercial production of oil shale, the fossil fuel industry has yet to seal the deal, motivating an April 2012 report by Checks and Balances titled “A Century of Failure.”

Fri, 2012-07-06 03:00Steve Horn
Steve Horn's picture

EOG Resources: The Gas Corporation That Does It All From Cradle to Grave

DeSmogBlog, on multiple occasions, has reported that the damage caused by hydraulic fracturing, or “fracking” in the unconventional oil and gas industry goes far beyond water contamination, put in the spotlight by the documentary film “Gasland.” The multi-pronged harms were tackled in a comprehensive manner in our report, “Fracking the Future.”

One corporation in particular, EOG Resources, epitomizes the shale gas lifecycle from cradle to grave and the damage it is causing in communities worldwide. 

Who is EOG? The Artist Formerly Known as Enron

EOG Resources – owned by CEO Mark Papa – is the born again sibling of the now disgraced corporation, Enron Oil and Gas, hence “EOG.” It is headquarted in Houston, TX.

Former President and Chief Opearing Officer of Enron, Richard Kinder, recently referred to by The Wall Street Journal as “The Luckiest Ex-Enron Employee,” now co-owns oil and gas industry pipeline giant, Kinder Morgan

After the fall of Enron, Kinder Morgan purchased Enron's pipeline assets and built up the Kinder Morgan behemoth into what it is today, the corporation with the most extensive array of pipelines in North America.

Tue, 2012-07-03 15:51Ben Jervey
Ben Jervey's picture

Bloomberg Stunner: How Chesapeake Energy Paid Less Than a 1% Tax Rate On $5.5 Billion in Profits

Chesapeake Energy, a company that is no stranger to financial scandals, has found itself on the front page of the financial papers again. This time, the subject is taxes. Or how Chesapeake barely pays them.  

Over its 23-year history, Chesapeake Energy, the second largest producer of natural gas in the U.S., and the company described by its founder and CEO Aubrey McClendon as “the biggest frackers in the world,” has earned roughly $5.5 billion in pre-tax profits. To date, the company has paid $53 million in taxes. That’s an effective tax rate of under 1 percent - a massive taxpayer subsidy.

The corporate income tax rate in the U.S. is 35 percent. 

The Bloomberg article that exposed these stunning figures is quick to note that this is far less than the 12 percent rate that GE paid in 2010 that caused such public outrage, and even a tiny percentage of the 18 percent effective rate that Google had to answer for.

So how does Chesapeake pull this off? Mostly, it’s due to a rule written in 1916 that allows oil and gas producers to, according to Bloomberg, “postpone income taxes in recognition of the inherent risk of drilling wells that may turn out to be dry.

The break may be outdated for companies such as Chesapeake, which, thanks to advances in technology, struck oil or gas in 99.6 percent of its wells last year.“ When the policy was written, drillers struck “dry wells” roughly 80 percent of the time.

Fri, 2012-06-29 10:47Steve Horn
Steve Horn's picture

Sand Land: Frac Sand Mining in Western Wisconsin - Video Report by DeSmogBlog

The rush to drill for unconventional gas, enabled by a process popularly known as “fracking,” or hydraulic fracturing, has brought with it much collateral damage. Close observers know about contaminated water, earthquakes, and climate change impacts of the shale gas boom, but few look at the entire life cycle of fracking from cradle to grave.

Until recently, one of the most underlooked facets of the industry was the “cradle” portion of the shale gas lifecycle: frac sand mining in the hills of northwestern Wisconsin and bordering eastern Minnesota, areas now serving as the epicenter of the frac sand mining world.

The silence on the issue ended after several good investigative stories were produced by outlets in the past year or so, such as Wisconsin WatchPR WatchThe Wisconsin State Journal, the Associated PressThe Wall Street JournalOrionEcoWatch, and most recently, Tom Dispatch. These various articles, all well worth reading, explain the land grab currently unfolding in the Midwest and the ecological damage that has accompanied it

To put it bluntly, there could be no shale gas extraction without the sand. As Tom Dispatch's Ellen Cantarow recently explained,

That sand, which props open fractures in the shale, has to come from somewhere. Without it, the fracking industry would grind to a halt. So big multinational corporations are descending on this bucolic region to cart off its prehistoric sand, which will later be forcefully injected into the earth elsewhere across the country to produce more natural gas. Geology that has taken millions of years to form is now being transformed into part of a system, a machine, helping to drive global climate change.

Frac sand, which consists of fine-grained sillica, can cause the respiratory illness, silicosis. Washing the frac sand in preparation for the fracking process is also a water intensive process, particularly threatening in the age of increasing water scarcity in the United States and around the world.

Pages

Subscribe to natural gas