Barnett Shale

Tue, 2013-01-08 11:30Sharon Kelly
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Shale Gas Uncertainty: How an Industry Talking Point Misses the Mark

When oil and gas executives gathered in Pittsburgh, Pennsylvania to discuss the state of the industry shortly after Obama won re-election, they raised a recurring complaint.

“We now face four more years of regulatory uncertainty,” said Randy Alpert, an official with Consol energy told gathered shale gas executives.

Penny Seipel, Vice President of the Ohio Oil and Gas Association hit a similar note the very next day.

“Unfortunately, we have had quite a bit of uncertainty regarding our fiscal situation,” she said as she described proposed regulation and taxation of drilling companies in her state.

This uncertainty mantra has been trotted out by many industries facing potential oversight and is now being picked up by oil and gas: "We are not against regulation, we are against regulatory uncertainty," the line goes. “We don’t care what the rules are,” companies say, “just tell us ahead of time and then we will follow them gladly.”

This well-worn trope gives the impression that drillers do not view regulators as adversaries. All they’re asking for is common-sense fairness. Who could be against someone asking to know what the rules are? Predictability is a reasonable request.

It's a shrewd position for the shale industry. But it’s also deeply misleading and worth flagging now since it is likely to get amplified in coming months as more attention turns to whether federal officials should step up their oversight of oil and gas drilling.

Wed, 2012-11-21 05:00Steve Horn
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Shale Gas Bubble About to Burst: Art Berman, Bill Powers

Food and Water Watch recently demonstrated that the dominant narrative, "100 years" of unconventional oil and gas in the United States, is false. At most, some 50 years of this dirty energy resource may exist beneath our feet.

Bill Powers, editor of Powers Energy Investor, has a new book set for publication in May 2013 titled, "Cold, Hungry and in the Dark: Exploding the Natural Gas Supply Myth."

Powers' book will reveal that production rates in all of the shale basins are far lower than the oil and gas industry is claiming and are actually in alarmingly steep decline. In short, the "shale gas bubble" is about to burst.
 
In a recent interview, Powers said the "bubble" will end up looking a lot like the housing bubble that burst in 2008-2009, and that U.S. shale gas will last no longer than ten years. He told The Energy Report:
 
My thesis is that the importance of shale gas has been grossly overstated; the U.S. has nowhere close to a 100-year supply. This myth has been perpetuated by self-interested industry, media and politicians...In the book, I take a very hard look at the facts. And I conclude that the U.S. has between a five- to seven-year supply of shale gas, and not 100 years.
 
The hotly-anticipated book may explain why shale gas industry giants like Chesapeake Energy have behaved more like real estate companies, making more money flipping over land leases than they do producing actual gas. 
Wed, 2012-11-14 06:58Steve Horn
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Shale Gas Bubble Bursting: Report Debunks "100 Years" Claim for Domestic Unconventional Oil and Gas

Food and Water Watch (FWW) released a report today titled "U.S. Energy Security: Why Fracking for Oil and Natural Gas Is a False Solution." 

It shows, contrary to industry claims, there aren't 100 years of unconventional oil and gas sitting below our feet, even if President Barack Obama said so in his 2012 State of the Union Address. Far from it, in fact.

The report begs the disconcerting question: is the shale gas bubble on its way to bursting?

FWW crunched the numbers, estimating that there are, at most, half of the industry line, some 50 years of natural gas and much less of shale gas. This assumes the industry will be allowed to perform fracking in every desired crevice of the country. These are the same basins that advocates of hydraulic fracturing ("fracking") claim would make the U.S. the "next Saudi Arabia." 

"The popular claim of a 100-year supply of natural gas is based on the oil and gas industry’s dream of unrestricted access to drill and frack, and it presumes that highly uncertain resource estimates prove accurate," wrote FWW. "Further, the claim of a century’s worth of natural gas ignores plans to export large amounts of it overseas and plans for more domestic use of natural gas to fuel transportation and generate electricity."

Thu, 2012-10-18 13:20Steve Horn
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Fracking Your Future: Shale Gas Industry Targets College Campuses, K-12 Schools

In Pennsylvania - a state that sits in the heart of the Marcellus Shale basin - the concept of "frackademia" and "frackademics" has taken on an entirely new meaning.

On Sept. 27, the PA House of Representatives - in a 136-62 vote - passed a bill that allows hydraulic fracturing, or "fracking" to take place on the campuses of public universities. Its Senate copycat version passed in June in a 46-3 vote and Republican Gov. Tom Corbett signed it into law as Act 147 on Oct. 8.

The bill is colloquially referred to as the Indigenous Mineral Resources Development Act. It was sponsored by Republican Sen. Don White, one of the state's top recipients of oil and gas industry funding between 2000-April 2012, pulling in $94,150 during that time frame, according to a recent report published by Common Cause PA and Conservation Voters of Pennsylvania. Corbett has taken over $1.8 million from the oil and gas industry since his time serving as the state's Attorney General in 2004. 

The Corbett Administration has made higher education budget cuts totaling over $460 million in the past two consecutive PA state budgets. The oil and gas industry has offered fracking as a new fundraising stream at universities starved for cash and looking to fill that massive cash void, as explained by The Philadelphia Inquirer:

Thu, 2012-09-27 13:58Steve Horn
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Regulatory Non-Enforcement by Design: Earthworks Shows How the Game is Played

Earthworks Oil and Gas Accountability Project published a scathing 124-page report this week, "Breaking All the Rules: the Crisis in Oil & Gas Regulatory Enforcement."

The content of the report is exactly as it sounds.

That is, state-level regulatory agencies and officials often aren't doing the jobs taxpayers currently pay them to do and aren't enforcing regulations on active oil and gas wells even when required to under the law.

This is both out of neglect and also because they're vastly understaffed and underfunded, meaning they literally don't have the time and/or resources to do proper inspections.

And on those rare instances when regulatory agencies and the regulators that work for them do enforce regulations on active oil and gas wells, Earthworks demonstrated that the penalties for breaking the rules are currently so weak that it's merely been deemed a tiny "cost of doing business" by the oil and gas industry.

Fri, 2012-07-27 03:30Steve Horn
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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, 2012-04-03 05:59Laurel Whitney
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The Farce Of The "Golden Age Of Gas"

Oil and gas industry insiders revealed earlier this year the high probability that we're headed into a shale gas bubble. But that's not what the industry's CEOs and PR departments want you to hear.

"The reality of at least 100 years’ worth of shale gas abundance has been supported by virtually every credible third-party expert…The collective market cap of these energy leaders approaches $2 trillion – ask yourself: do I believe Rolling Stone and Arthur Berman or the world’s biggest and most successful energy companies?"

So spouts off Chesapeake Energy in a press release earlier this month responding to a Rolling Stone article which likened fracking to a huge industry Ponzi scheme. Arthur Berman is an energy consultant based in Houston, and not swayed by the industry's vibrant plumage they are putting on display to the nation.

The energy companies want the public to believe in the "Golden Age of Gas"- as it has been dubbed- where the supplies are bountiful and the profits are high. While it's true that there have been economic booms in some areas that have gas reserves, the numbers are showing that these booms will not be long lived. Meanwhile, the falling price of gas along with the inherent public health risks and environmental devastation that comes along with it makes the gas rush less profitable in the long run. But the gas industry wouldn't have you believe that.

Fri, 2011-11-18 05:15Steve Horn
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ExxonMobil and Shell Eyeing North American LNG Export Deals

Yesterday, LNG World News reported that ExxonMobil Vice President Andrew Swiger announced, at a conference hosted by Bank of America Merrill Lynch, that it was actively seeking LNG (liquefied natural gas) export terminals throughout North America, including, but not limited to, in British Columbia and on the Gulf Coast.

“In terms of exports from North America, whether it is the Gulf Coast or whether it is Western Canada, it’s something we’re actively looking at,” said Swiger.

So, where are these prospective export terminals located, what are the key pipelines carrying the unconventional gas produced from shale basins, and what are the key shale basins in the mix? Hold tight for an explanation.

Golden Pass LNG Terminal and Golden Pass Pipeline

The LNG World News article explains that ExxonMobil "has a stake in the Golden Pass LNG Terminal in Texas," but does not explain exactly what the "stake" is.

A bit of research shows that ExxonMobil is a 17.6% stakeholder in the Golden Pass LNG Terminal, according to a March 2011 article publshed by Platts. It is co-owned by ConocoPhillips and Qatar Petroleum, who own a 12.4% and 70% stake in Golden Pass LNG, respectively.

Wed, 2011-03-23 04:45Carol Linnitt
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Texas Commission Defies EPA and Sides with Gas Company Accused of Water Contamination

The Texas Railroad Commission (RRC) voted unanimously on Monday to give the proverbial middle finger to the Environmental Protection Agency. 

The Railroad Commission, the oil and gas regulator for the state of Texas, sided today with a gas industry giant, Range Resources, over a case of drinking water contamination due to an invasive gas drilling process, hydraulic fracturing. The process was made exempt, due to something known as the Halliburton Loophole, from the obligations of the Safe Drinking Water Act (SDWA) after the 2005 Energy Policy Act granted exceptional status to the practice when used for oil and gas drilling. This exemption has hindered the EPA from fully investigating the dangers of hydraulic fracturing and adequately responding to complaints of drinking water contamination.

But when EPA investigations discovered that hydraulic fracturing in the Barnett Shale area of Texas had caused or contributed to drinking water contamination in Parker County, they decided to get heavy handed. The contamination of two private water wells with cancer-causing benzene and explosive methane was enough for the EPA to invoke the SDWA and issue an Imminent and Substantial Endangerment Order to protect the area’s drinking water.

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