Industry

Tue, 2014-11-04 04:00Sharon Kelly
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Marcellus Shale Fracking Rush Brings Worries of Boom-Bust Cycle

Across the U.S., the shale gas industry's arrival has been marked by wariness, not only of the environmental impacts associated with fracking, but also due to the oil and gas industry's long history of flashy booms followed by devestating busts.

In towns across the state, the lingering effects of past economic downturns – the flight of manufacturing, the 2008 financial collapse, the slow erosion of the auto and steel industries – have left communities eager for jobs, but also experienced with job loss.

Nowhere better illustrates the potential for a shale rush to heal old economic wounds, or communities' vulnerability to new ones, than Cameron County, Pennsylvania. At the eastern edges of the rust belt, Cameron County has been hit hard by the decline of the American auto industry.

Hopes for a shale renassiance are running up against some difficult realities. A report released Monday by the Post-Carbon Institute, titled “Drilling Deeper: A Reality Check on US Government Forecasts for a Lasting Tight Oil & Shale Gas Boom,” concludes that the Marcellus shale is unlikely to fully live up to government forecasts, and that natural gas prices will have to rise to keep drilling going across the state. The vast majority of the Marcellus shale is not the same high quality as the areas where drillers are currently focusing most of their efforts, referred to in the industry as “sweet spots,” making the gas there more expensive to produce.

The report also finds that shale gas production in the Marcellus is expected to reach it's peak in 2018 or 2019 – meaning that within five years, production will begin dropping. “These projections are optimistic in that they assume the capital will be available for the drilling treadmill that must be maintained to keep production up,” the report says. “This is not a sure thing as drilling in the poorer quality parts of the play will require higher gas prices to make it economic.”

Fri, 2014-05-30 15:35Farron Cousins
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Life Saving Regulations Stalled In Bureaucratic Abyss

There is an unspoken rule in American politics: when you have bad news to deliver, do it on a Friday afternoon.  This helps to ensure that fewer people will see it, fewer will have time to analyze it, and the media will forget all about it over the weekend.  If you really want the issue to die, release it on a Friday before a holiday weekend, and that’s exactly what the Obama administration did last week when they released their bi-annual Unified Agenda of Regulatory and Deregulatory Actions.

The Unified Agenda reads like a laundry list of proposed safety regulations from nearly all the major regulatory agencies.  Digging into the Department of the Interior section of that list, you will find countless stalled regulations pertaining to the dirty energy industry, some of which have been in limbo since the days of the former Bush administration

Ben Geman at National Journal explains:

Sat, 2014-02-01 06:00Farron Cousins
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Misinformation Is Winning – Doubt In Climate Change Climbing

Climate change-related disasters have been rising for decades; yearly temperatures are rising in a nearly consistent pattern; extreme weather events are costing economies across the globe hundreds of billions of dollars.  Despite the mounting evidence that climate change is both real and a major threat to our security, more people are buying into the idea that climate change is a myth.

A new poll from Yale University and George Mason shows that the percentage of Americans who don’t believe in climate change rose 7% in 2013 to 23% of the entire population.  While 63% of the general public believes that climate change is occurring, only 47% believe that human activities are to blame.  The poll also revealed that less than 50% of Americans believe that climate change will affect their lives, but 65% say that it could harm future generations. 

This shift in public opinion in 2013 happened during another record-breaking temperature year, with 2013 being the seventh warmest year on record. 

All of the evidence points to the fact that climate change is real and that human beings are making it worse.  Scientists agree that it is happening, and the physical evidence is all around us, so the big question is: why is the number of climate change deniers increasing?

The answer is that the misinformation machine has kicked into high gear, and 2013 saw a massive increase in the amount of climate change denial being given a microphone throughout various forms of media.

Thu, 2014-01-30 14:31Farron Cousins
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House Energy Committee Votes Down Climate Reality

The House Energy and Commerce Committee had the opportunity earlier this week to pass an amendment making it clear that the House accepts the scientific consensus that climate change is real. But it seems that once again dirty energy industry money was enough to convince the Republicans on the committee that science doesn’t matter.

Twenty-four House Republicans voted against the amendment. Introduced by Democratic Representative Jan Schakowsky, the amendment stated that the House of Representatives accepts that climate change is happening and that it is the result of rising greenhouse gas emissions. The failed amendment was tacked onto the Electricity Security and Affordability Act which will prohibit the U.S. Environmental Protection Agency from enacting emissions standards on electricity plants until carbon capture technology is more “commercially viable,” which is industry slang for “cheap.”

ThinkProgress has the details on the committee’s decision to deny reality:

Fri, 2014-01-24 11:00Farron Cousins
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Dirty Energy Job Numbers Don't Add Up

A foolproof way to sell an idea to the American public is to link that idea to jobs. If you are able to convince them that your proposal will either preserve jobs already in place, or even better, create new jobs, it makes it much more difficult to ignore. 

This is why the promise of jobs has been used to sell the Keystone XL pipeline to the public, and the concept of preserving jobs has been used to fight the tightening of safety standards for the coal industry.

In both of those examples, the dirty energy industry has grossly inflated the net economic benefit of their activities, but that hasn’t stopped politicians and pundits from parroting those same “job creation” talking points to the national media.

The “job creator” talking points have proven to be so successful for the dirty energy industry that they have begun using them to defend everything from their $4 billion a year in federal tax subsidies, to their $1 trillion in net profits over the last decade.  They can’t be the bad guys because they employ millions of hard-working Americans, so their story goes.

But when you stop to analyze the industry’s numbers, numbers that they’ve sworn are accurate in front of Congress, the math simply doesn’t add up.

Sun, 2013-12-15 14:17Farron Cousins
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Science On Trial In America As Courts and Congress Grapple with Industry Pollution

Both the science behind climate change and the efficacy of life-saving safety standards from the U.S. Environmental Protection Agency (EPA) had a trying week in Washington, D.C., as industry-backed lawsuits and politicians attempted to undermine the entire scientific community.

The EPA is currently battling two major legal obstacles in the courts over the agency's authority to enact and enforce provisions of the Clean Air Act.  This is a power that the U.S. Supreme Court had already ruled was not only within the agency’s jurisdiction, but a duty that it had to perform for the American public.

One of the legal battles took place at the U.S. Court of Appeals for the D.C. Circuit, where the EPA defended its work to limit the amount of mercury and arsenic that energy companies are allowed to release into the air.  According to NRDC, these health standards that are under attack from the dirty energy industry have the potential to save as many as 45,000 lives a year.

Based on the D.C. Circuit’s previous rulings regarding the Clean Air Act, it is likely that the EPA will be the victor in this case. 

Fri, 2013-12-06 11:57Farron Cousins
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U.S. Chamber Of Commerce Backing Mitch McConnell, Other Coal Candidates In 2014

Republican Senate minority leader Mitch McConnell is facing an uphill battle for reelection in next year’s midterms.  But luckily for McConnell, his powerful allies in the dirty energy industry have deep pockets and are willing to shower his campaign with cash to help increase his chances of victory.

Over the last year, McConnell has been described as “the most unpopular Senator,” and in the last few months his approval rating has fallen to the mid-30’s.  He is currently trailing Democratic opponent Alison Lundergan Grimes by 2 percentage points in polls. 

McConnell’s allies in the business community, specifically the U.S. Chamber of Commerce, released an ad earlier this week touting McConnell’s commitment to the coal industry, and attacking the so-called “war on coal” coming from the Obama Administration.  Here is the ad:

According to 350.org, the U.S. Chamber of Commerce is funded, at least in part, by a number of dirty energy companies.  This helps explain their willingness to use the “war on coal” as a tool to aid in McConnell’s reelection.

Tue, 2013-11-12 05:00Farron Cousins
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Facing the Facts: Climate Change Is Bad For Business

As leaders of the industrialized world continue to squabble at home over how to address the threat of climate change – and even as they battle internal factions who don’t believe the science of climate change – one group of leaders has come out in favor of swift, comprehensive action to prevent global catastrophe.  Those leaders come from some of the largest businesses on the planet.

Just one year ago, Hurricane Sandy hit the Northeast with a force not seen in the region in decades.  In the aftermath, shipping and distribution of goods in and out of the Northeast was severely disrupted.  The costs of these disruptions, as well as the physical damage from the storm, are projected to cost the U.S. economy $20 billion

Sandy served as a wake up call to business leaders, as it highlighted how grossly unprepared they are in the face of climate change related disasters.  In the Midwest, floods and wildfires in recent years have also impacted the business supply chain, costing untold millions worth of economic activity.

But many within the business community understood what was happening, and what it means for the future of business.  They know that, at the end of the day, climate change is bad for business.

Fri, 2013-09-13 06:00Sharon Kelly
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Never-Released Energy Department Report Predicts Increasing Domestic Conflicts over Water, Energy

Last summer, the United States experienced the worst drought since the Dust Bowl in the 1930s.

At the same time, the country was experiencing one of the biggest onshore drilling booms in history, powered by one of the most water-intensive extraction technologies ever invented: hydraulic fracking.

The tension between these two realities could not be clearer.

This year, as the drilling industry drew millions of gallons of water per well in Arkansas, Colorado, Oklahoma, Texas, Utah and Wyoming, residents in these states struggled with severe droughts and some farmers opted to sell their water to the oil and gas industry rather than try to compete with them for limited resources.

Even the Atlantic coast's mighty Susquehanna River faced record lows last year, leading regulators to suspend dozens of withdrawal permits – the majority of which were for fracking Pennsylvania’s Marcellus shale.

Researchers for the Federal Department of Energy saw problems like this coming, according to thousands of pages of documents about the topic provided to DeSmog, but their recommendations and warnings were consistently edited and downplayed and the final version of their report has yet to be released.

Thu, 2013-09-12 15:32Farron Cousins
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Washington Throws Chemical Safety Standards Out the Window, Are Fracking Chemicals Next?

As our elected officials in Washington attempt to sell us on the idea that we need to go to war against anyone who uses chemical weapons, they are working to remove safety standards that protect citizens from corporate America’s ongoing chemical assault.

In recent weeks, the Environmental Protection Agency (EPA) has rolled back safety regulations for the chemical industry, while the U.S. House of Representatives has prepared to take aim at the government’s ability to monitor chemicals and other safety hazards posed by fracking.

Bowing to pressure by the chemical industry, the EPA has decided to withdraw a proposal that would have added numerous new substances to their database of hazardous chemicals, which is used to issue public health assessments and warnings.  One of the substances is Bisphenol A, a chemical used in the manufacture of certain plastics that has been linked to an increased risk of cancer and reproductive impacts.

The EPA had previously expressed a great deal of concern over the lack of safety standards in place for toxic chemicals that studies had shown were dangerous to the public, but the pressure coming from the chemical industry was far too great for them to overcome.

The American Chemistry Council, a lobbying group that operates as the political arm of chemical manufacturers, believes that the EPA made a “wise decision” to not go forward with their new proposals.  The group has spent more than $4 million this year alone lobbying the U.S. Senate, the U.S. House, and the EPA.

Rather than compiling their lists now, as their proposed rule allowed, the EPA decided to wait until all chemicals are thoroughly and repeatedly analyzed, a process expected to finish in 2017, unless delayed. Then they will begin the process of drafting new proposals. 

This means that the American public will suffer another four years of inaction and exposure to chemicals that the agency already knows are toxic.

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