fracking

Thu, 2014-05-29 11:00Sharon Kelly
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Shale Rush Hits Argentina as Oil Majors Spend Billions on Fracking in Andes Region

While many countries, including France, Germany and South Africa, have banned or delayed their embrace of fracking, one country is taking a full-steam-ahead approach to the unconventional drilling technology: Argentina.

The country is welcoming foreign shale companies with open arms in the hope that oil and gas drilling will help combat one of the world’s highest currency inflation rates. But the government there is also facing violent clashes over fracking in arid regions of the Andes mountains and allegations from locals of water contamination and health problems.

Argentina’s Vaca Muerta shale formation — estimated to hold an amount of oil and gas nearly equal to the reserves of the world’s largest oil company, Exxon Mobil — has already attracted billions in investment from the major oil and gas company Chevron.

In April, the government drew global attention when it announced plans to auction off more acreage. “Chevron, Exxon, Shell have shown interest in Vaca Muerta. They will compete for sure,” Neuquen province Energy Minister Guillermo Coco told potential investors on a road show in Houston on April 30th.

Argentina, which the EIA estimates could hold even more shale gas than the U.S., already has over 150 shale wells in production, more than any country in the world aside from the U.S. and China. California-based Chevron, in partnership with Argentina’s state-owned oil company YPF, invested $1.24 billion in a pilot program last year. Last month, Chevron announced an additional $1.6 billion effort for 2014, part of Chevron's overall investment plan that could top $15 billion. The company is hoping that this plan will allow it to extract 50,000 barrels a day of shale oil plus 100 million cubic feet of shale gas per day from the country’s Andes mountain region.

American drillers have talked up Argentine shale as the next big thing. “Vaca Muerta is going to be an elephant compared to Eagle Ford,” Mark Papa, CEO of EOG Resources told the Argentine press in 2012, referring to a major oil-producing shale formation in Texas.

Wed, 2014-05-28 05:00Sharon Kelly
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Exclusive: Leaked EPA Draft Fracking Wastewater Guidance Suggests Closer Scrutiny for Treatment Plants

One of the most intractable problems related to fracking is that each well drilled creates millions of gallons of radioactive and toxic wastewater.

For the past several years, the Environmental Protection Agency has faced enormous public pressure to ensure this dangerous waste stops ending up dumped in rivers or causing contamination in other ways.

But the drilling boom has proceeded at such an accelerated pace in the United States that regulators have struggled to keep up, to control or even track where the oil and gas industry is disposing of this radioactive waste. As a consequence, hundreds of millions of gallons of partially treated waste have ended up in the rivers from which millions of Americans get their drinking water. 

An internal draft EPA document leaked to DeSmog gives a small window into how, after a full decade since the start of the drilling boom, the agency is responding.

The document, dated March 7, 2014, is titled “National Pollutant Discharge Elimination System Permitting and Pretreatment for Shale Gas Extraction Wastewaters: Frequently Asked Questions.”

It's revealing for what it shows about how EPA staff are taking the hazards of fracking wastewater more seriously — and also how little things have changed.

“In general, the EPA memo does a good job of making clear that fracking wastewater discharges are covered under the Clean Water Act, and that proper discharge permitting is required, including setting limits to protect water quality standards and to comply with technology based standards in the Clean Water Act,” explained Clean Water Action attorney Myron Arnowitt, who was asked by DeSmog to review the document. “It is mostly an increased level of detail for regional EPA staff regarding permitting issues under the Clean Water Act, compared to the pervious memo in 2011.”

The document, intended as a guide for local regulators on how the Clean Water Act should be interpreted and applied, is impressive in many ways.

Tue, 2014-05-27 14:26Sharon Kelly
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“All of the Above” or “Action now?”: Obama’s Natural Gas Contradiction

At a talk in Vermont last week, the nation's top energy official offered up his thoughts on a problem the White House has said calls for “urgent action”: climate change.

“We need to mitigate the effects of climate change and need to adapt at the same time,” said Dr. Ernest Moniz, Secretary of Energy, as he described the findings of a White House report issued earlier this month outlining the dangers of global warming and the impacts already felt nationwide.

But Moniz's talk also highlighted a fundamental flaw in the approach that President Obama has taken to energy and the environment.

The president has begun sounding alarm bells about the hazards and costs of worsening climate disruption. At the same time, he has aggressively promoted the nation's ongoing shale gas rush. And yet, experts warn this drilling frenzy may have wiped out most of the gains made by slashing carbon dioxide emissions from burning coal.

It's a paradox that the Washington Post labeled “a jarring juxtapostion” and “the contradiction at the heart of President Obama's climate change policy.” 

Fri, 2014-05-23 05:00Steve Horn
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Revealed: Former Energy in Depth Spokesman John Krohn Now at U.S. EIA Promoting Fracking

For those familiar with U.S. Energy Information Administration's (EIA) work, objectivity and commitment to fact based on statistics come to mind. Yet as Mark Twain once put it, “There are three kinds of lies: lies, damned lies, and statistics.”

That's where John Krohn comes into play. A former spokesman for the gas industry front group Energy in Depth (EID), Krohn now works on the Core Team for EIA's “Today in Energy!“ 

Krohn has been at EIA since at least January 2014, when his name first appeared on the EIA website. On his Twitter account, he describes himself as an EIA communications manager.

As DeSmog revealed in February 2011, Energy In Depth was launched with a heavy injection of funding from oil and gas industry goliaths such as BP, Halliburton, Chevron, Shell and XTO Energy (now owned by ExxonMobil).

With its public relations efforts conducted by FTI Consulting, EID now serves as a key pro-industry front group promoting unfettered hydraulic fracturing (“fracking”) to the U.S. public.

Krohn follows in the footsteps through the government-industry revolving door of the man President Barack Obama named to head the U.S. Department of Energy (DOE) for his second term, former Massachusetts Institute of Technology “frackademic,” Ernest Moniz. DOE is the parent agency for EIA

Further, EIA Administrator Adam Sieminski, another second-term appointee of President Obama, also passed through the same revolving door as Krohn and Moniz in his pathway to heading EIA. He formerly worked in the world of oil and gas finance. 

Thu, 2014-05-22 14:13Steve Horn
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Documents: Petraeus Fracking Field Trip Reveals ND Government, Oil, Private Equity Nexus

DeSmogBlog has obtained hundreds of documents portraying the blurred lines between North Dakota's government, the oil and gas industry and the private equity world. They also offer one of the first looks inside the professional life of former CIA Director Gen. David Petraeus after he resigned from the agency in 2012.

The documents reveal Kohlberg Kravis Roberts (KKR) — a private equity firm where Petraeus now works at the KKR Global Institute — wrote a press release for North Dakota's State Treasurer announcing the Petraeus visit, meticulously counseled the state treasurer's office on media strategy and hosted the state treasurer on its company plane.

A large part of Petraeus' visit centered around a tour of the state's Bakken Shale basin, where upwards of 1 million barrels of oil are extracted each day via hydraulic fracturing (“fracking”). The Bakken pumped out its billionth barrel of oil during his stay.

KKR, with $87 billion in assets, owns two major Bakken entities: The Ridge in Williston, ND, and Samson Resources.

The Ridge is a KKR-owned housing complex for Bakken oil and gas workers, while Samson Resources is a major company fracking for oil and gas throughout the U.S., including in the Bakken.  

With over $4 billion sitting in an energy investment fund as of June 2012, KKR also owns over $950 million in oil and gas industry assets. Marc Lipschultz, head of energy and infrastructure for KKR, called the firm a “mini oil and gas company“ in an April 2013 interview with Privcap.

“We have our own technical abilities attached to the firm we have our own back office [and] we can manage the daily flows of oil and gas in drilling wells and managing our own hedges,” said Lipschultz. 

Wed, 2014-05-21 11:00Julie Dermansky
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The Florida Everglades: A New Frontline for Fracking?

Fracking Floride everglades

Pamela and Jamie Duran of Naples, Fla., had not spent much time worrying about fracking. Like most Floridians, they'd been repeatedly told it couldn’t happen there. Until it did.

Texas-based Dan A. Hughes Oil Company recently used a form of “enhanced extraction,” which fits the description of fracking, in Naples, the gateway to the Everglades. The drilling took place in the Sunniland Trend, an underground limestone formation with an oil reserve stretching from Fort Myers to Miami.

Pamela Duran in front of her home
Pamela Duran in front of her home, 1000 feet from a proposed drill site in Naples, Florida. ©2104 Julie Dermansky 

The Durans were aware there was oil in the area, but the realtors who sold them their house seven years ago never mentioned the possibility of new drilling. Not far from them, on Oil Well Road, is a park where Florida's very first oil derrick is on display with a historic plaque.

Mon, 2014-05-19 18:00Steve Horn
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Southwestern Energy Executive Mark Boling Admits Fracking Link to Climate Change

An Executive* of a major shale gas development company has conceded what scientists have been saying for years: global shale gas development has the potential to wreak serious climate change havoc.

Best known for his company's hydraulic fracturing (“fracking”) activity, Southwestern Energy Executive Vice President* Mark Boling admitted his industry has a methane problem on the May 19 episode of Showtime's “Years of Living Dangerously” in a segment titled, “Chasing Methane.”

“I think some of those numbers, they certainly concern me,” Boling says on the show. “How could you say that that methane emission rate was one and a half percent - very, very difficult to there from here for that.” 

Boling goes toe to toe in the segment with Cornell University Professor Anthony Ingraffea, who co-authored the 2011 paper now best known as the “Cornell Study.”

That study was the first to say that over its entire lifecycle, shale gas production is dirtier than coal due to the greenhouse gas trapping capacity of leaking methane. Numerous studies since then have depicted high leakage rates throughout the production lifecycle. 


Cornell University Professor Anthony Ingraffea; Photo Credit: Cornell University

Brendan DeMelle, DeSmogBlog Executive Director and Managing Editor, is also a featured guest on tonight's episode. He discusses the well-funded climate change denial machine and attacks on renewable energy development in a segment titled, “Against the Wind.”

Fri, 2014-05-16 05:00Anne Landman
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Spike in Stillborn and Neonatal Deaths Reported in Heavily Drilled Vernal, Utah

Natural Gas and Oil Drilling in Utah

A midwife in Vernal, Utah, has raised a red flag about a spike in the number of stillbirths and neonatal deaths in the small town in 2013.

The concern has arisen alongside explosive growth in drilling and fracking in the area. Energy companies have flocked to Vernal in the last few years to develop massive oil and gas fields beneath Uintah County.

The midwife, Donna Young, who has worked in the Vernal area for 19 years, delivered the first stillborn baby she's seen in all her years of practice in May 2013. Doctors could not determine a reason for the baby's death.

While visiting the local cemetery where the baby was buried, Young noticed other fresh graves of babies who were stillborn or who died shortly after birth.

Young started researching obituaries and mortuary records on stillbirths and neonatal deaths and found a large spike in the number of infant deaths in the Vernal area in recent years. She documented 11 other incidents in 2013 in which Vernal mothers had given birth to stillborn babies or in which babies died within a few days of being born. Vernal's full-time population is only about 9,800.

Young found that the rate of neonatal deaths in Vernal has climbed from about equivalent to the national average in 2010 to six times the national average in 2013.

Along with the surge in oil and gas drilling in the Vernal area in the last few years, the winter air in the Uintah basin, where Vernal sits, has become dense with industrial smog generated by drilling rigs, pipelines, wells and increased traffic.

Thu, 2014-05-15 16:00Anne Landman
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Colorado Report on Birth Anomalies Near Fracking Sites Omits Key Factors

Oil flare stack

Last month, the Colorado Department of Public Health and the Environment announced it would investigate a spike in rare fetal anomalies reported in Garfield County, the second most heavily-drilled and fracked county in the state.

The newly released report, which the department quietly put on its website without public announcement, does little to address fears about the safety of drilling and fracking in Colorado's communities.

The report says that overall, the department found no single predominant risk factor common among the majority of women studied. 

The agency studied about a dozen risk factors, most of which focused on the mothers' personal characteristics and behavior, such as ethnicity; alcohol, tobacco and drug use; use of medications, vitamins and supplements; and family history.

But the report has glaring gaps in what the state examined, and what it didn't.

Thu, 2014-05-15 05:00Sharon Kelly
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Pressure Grows on EPA to Regulate Toxic Air Pollution from Oil and Gas Industry

On Tuesday, 64 environmental groups, representing over 1 million members and supporters, submitted a legal petition to the Environmental Protection Agency, calling on the federal government to more closely regulate toxic air pollution from oil and gas drilling sites.

Continued, uncontrolled toxic pollution from oil and gas production creates serious health threats in metropolitan areas across the country,” the groups wrote, warning that over 1.04 million oil and gas wells have been drilled in the U.S. and as many as 45,000 new wells are expected annually over the next two decades.

The petition represents a shot across the bow of the EPA, as the filing lays the groundwork for lawsuits by environmental groups should the agency fail to act.

The move puts the EPA on notice that it may be violating federal law by failing to regulate air pollution from oil and gas drilling and fracking sites. “EPA also has a responsibility under the Clean Air Act to protect people from toxic air emissions nationwide,” the groups wrote, “and under section 112(n)(4)(B) it must do so.”

Absolutely this lays the groundwork for possible future litigation,” said Jeremy Nichols, a program director for WildEarth Guardians, one of the signatories to the petiton, “oil and gas wells are one of the most under-regulated sources of toxic air pollution in the U.S., yet these very wells are increasingly being drilled and fracked in communities across the nation.”

The current shale drilling boom has led to a massive spike in the number of people living near drilling, and the lack of federal regulation over the industry has led to complaints from residents across the US about the impact on their health and the health of their families.

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