Fracker Aubrey McClendon Signs Deal in Mexico with Firm Led by Former Mexican President

Aubrey McClendon, former CEO of hydraulic fracturing (“fracking”) giant Chesapeake Energy and current CEO of American Energy Partners (AEP), has signed a joint venture with a private equity firm led* by former Mexico president Vicente Fox.* 

In a joint press release, AEP and EIM (Energy and Infrastructure Mexico) Capital announced a “long-term, landmark partnership to explore the vast exploration and development opportunities offered by Mexico's abundant oil and gas energy resources.” The deal serves as another case study of U.S.-based companies cashing in on the Mexico energy sector privatization policy the U.S. State Department helped make possible under both the Obama Administration and the Bush Administration.

How Fracking Changed the Economics of Oil Production Around the World

James Meadway, chief economist at the New Economics Foundation, explains the interrelated economics behind China’s 'Black Monday' stock market crash, Middle Eastern oil and US fracking.

The 'fracking revolution' has transformed the economics of oil production globally, with the US becoming a bigger producer than Saudi Arabia and – after decades of dependency on oil imports – even being able to export some of its surplus production.

US shale oil is unusual, too, in being privately owned: most of the world’s oil reserves (over 70 percent) are in state hands. Like the North Sea 30 years ago, in a world dominated by state-owned companies and publicly owned reserves, US shale could look like a new frontier for private operators on the search for fat profits.

Back to School: "Frackademia" Alive and Well at U.S. Universities, Says New Report

The Public Accountability Initiative (PAI) has published a timely “back to school” report concluding that “frackademia” is alive and well at U.S. universities. 

While only focusing on the people and money behind five recent studies, PAI's report sits within a much broader universe of research in its Frackademia Guide. The new report serves as an update of its February 2015 report titled, “Frackademia in Depth,” a title poking fun at hydraulic fracturing (“fracking”) front group Energy in Depth (which did not react kindly to its report).

EU Ombudsman Investigating Industry-Dominated Fracking Expert Group

The European Ombudsman has opened a case into the European Commission's industry-dominated Expert Group on the risky and dangerous practice of fracking for natural gas.

The Ombudsman, responsible for investigating complaints about maladministration in EU institutions and bodies, is looking into allegations that the Commission “wrongly allowed members associated with the shale gas industry to act as chairmen of the European Science and Technology Network on Unconventional Hydrocarbon Extraction.”

Despite massive public opposition to fracking, the Commission established the European Science and Technology Network on Unconventional Hydrocarbon Extraction last July with a mandate to recommend the most appropriate fracking techniques and technologies for Europe.

Exclusive: Pennsylvania Family Dealing with Water Contamination Linked to Fracking Industry

Julie Dermansky

The Chichura family has flammable well water, most likely due to a fracking job gone wrong in Pennsylvania’s Susquehanna County. Their water well, along with those of four of their neighbors, was allegedly contaminated with methane in the fall of 2011, shortly after Cabot Oil started drilling operations near their home.

The Pennsylvania Department of Environmental Protection (DEP) confirmed the Chichuras had methane in their water on September 21, 2011, and advised them to equip their well with a working vent to avoid a possible ignition.

The contamination of wells is not an anomaly. The DEP identified 245 sites potentially contaminated by the fracking industry between 2008 and 2014.

As leaseholders with Cabot, the Chichuras believed the company would take care of them if anything went wrong. “Accidents will happen,” was the family’s thinking when their water first went bad, Elaine Chichura told DeSmog.

New Records Show More US Involvement in Mexico Oil, Gas Privatization Efforts as Mexican Government Says "100%" Its Idea

New records obtained by DeSmog shed further light on the role the U.S. government has played to help implement the privatization of Mexico's oil and gas industry, opening it up to international firms beyond state-owned company PEMEX (Petroleos Mexicanos).

Obtained from both the City of San Antonio, Texas and University of Texas-San Antonio (UTSA), the records center around the U.S.–Mexico Oil and Gas Business Export Conference, held in May in San Antonio and hosted by both the U.S. Department of Trade and Department of Commerce, as well as UTSA.

They reveal the U.S. government acting as a mediator between Mexico's government and U.S. oil and gas companies seeking to cash in on a policy made possible by the behind-the-scenes efforts of then-Secretary of State Hillary Clinton's U.S. State Department. State Department involvement was first revealed here on DeSmog, pointing to emails obtained via Freedom of Information Act and cables made available via Wikileaks.

Radioactivity Found in Pennsylvania Creek, Illegal Fracking Waste Dumping Suspected

Recently released testing results in western Pennsylvania, upstream from Pittsburgh, reveal evidence of radioactive contamination in water flowing from an abandoned mine. Experts say that the radioactive materials may have come from illegal dumping of shale fracking wastewater.

Regulators had previously found radioactivity levels that exceeded EPA's drinking water standards over 60-fold in waters in the same area, which is roughly 3 miles upstream from a drinking water intake, but those test results were only made public after a local environmental group obtained them through open records requests.

Texas Family's Water Well Explodes, Burns 4-Year Old, Father and Grandfather -- and Fracking to Blame, Lawsuit Alleges

A family in Texas, including a four-year old, her parents and her grandfather, were severely burned when their water well ignited into a massive fireball after methane from nearby fracked wells contaminated their water supply, a newly filed lawsuit against EOG Resources and several related companies alleges.

Cody Murray, a 38-year old who previously worked in the oil and gas industry, suffered burns to his face, arms, neck and back that were so severe that he was left permanently disabled, no longer able to drive because the nerve damage has left him unable to grip steering wheels or other objects. Cody's young daughter, who was over 20 feet away from the pump house when it ignited, suffered first and second degree burns, as did Jim Murray, Cody's father.

Judges Nixing Keystone XL South Cases Had Tar Sands-Related Oil Investments

On August 4, the U.S. Appeals Court for the 10th Circuit shot down the Sierra Club's petition for rehearing motion for the southern leg of TransCanada's Keystone XL tar sands export pipeline. The decision effectively writes the final chapter of a years-long legal battle in federal courts. 

But one of the three judges who made the ruling, Bobby Ray Baldock — a Ronald Reagan nominee — has tens of thousands of dollars invested in royalties for oil companies with a major stake in tar sands production in Alberta.  And his fellow Reagan nominee in the Western District of Oklahoma predecessor case, David Russell, also has skin in the oil investments game.  

The disclosures raise questions concerning legal objectivity, or potential lack thereof, for the Judges. They also raise questions about whether these Judges — privy to sensitive and often confidential legal details about oil companies involved in lawsuits in a Court located in the heart and soul of oil country — overstepped ethical bounds. 

These findings from a DeSmog investigation precede President Barack Obama's expected imminent decision on the northern, border-crossing leg of Keystone XL.

Lifting Ban On U.S. Crude Oil Export Would Enable Massive Fracking Expansion

In a recent Washington Post editorial supporting oil industry efforts to lift the existing ban on exporting crude oil produced in America, the editors stated:

The most serious objection to lifting the ban comes from environmentalists who worry that it would lower fossil fuel prices and lead to more oil consumption.”

And then they make the case that this is actually a positive as there may be some negotiations that result in support for “energy research funding, efficiency programs or, in an ideal world, a charge on carbon dioxide emissions to the package could balance its possible effects on the environment.”

In an ideal world, the climate wouldn’t be changing either. But we don’t live in an ideal world, do we? And the oil industry usually gets what it wants and environmental concerns go by the wayside regardless of who is in the White House. See arctic drilling permits for recent proof.


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