shale

Thu, 2014-10-16 05:00Justin Mikulka
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Oil-by-Rail Fuels Record U.S. Imports of Canadian Oil

Oil by rail

In September, many of the major railroad stocks hit new all-time highs.

Investors Business Daily attributed much of the increase to the business of moving oil-by-rail.

While the majority of the oil moving by rail has been fracked light sweet crudes from places like the Bakken and Eagle Ford shale basins, the railroads are telling investors that to keep increasing profits they are looking to expand the business of tar sands by rail.

This past week, the Wall Street Journal reported Canadian Pacific’s chief operating officer Keith Creel’s optimistic position about the growth prospects of moving tar sands by rail.

The growth is shifting from the light sweet Bakken crude which is the more volatile and sensitive, to the heavy crude in northern Alberta,” Creel said. “It’s safer, less volatile and more profitable to move and we’re uniquely positioned to connect to the West Coast as well as the East Coast.”

Mon, 2014-06-30 12:15Sharon Kelly
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In Blow to Oil Industry, New York's Top Court Upholds Local Fracking Bans

New York's highest state court ruled today that local governments have the legal authority to use zoning to bar oil and gas drilling, fracking and other heavy industrial sites within their borders. In a 5-2 decision, affirming the rulings of three lower courts, the justices dismissed challenges to fracking bans created by two towns, Middlefield and Dryden.

The case has been closely watched by the oil and gas industry in the Marcellus region and nationwide. Over 170 towns, villages and cities in New York state have crafted local moratoria or bans on fracking. Dozens more towns are expected to enact moratoria in the wake of this ruling, according to Earthworks, one of the public interest groups whose attorneys worked on the case.

Nationwide, nearly 500 local governments have enacted measures against fracking, according to Food and Water Watch which tracks local control actions, including towns in Texas, West Virginia, Pennsylvania, Colorado and California, each of which have been the focus of recent shale rushes.

The oil and gas industry had argued that allowing local control over fracking risked creating a patchwork of rules in different municipalities. Environmental groups countered that the rights of local communities to control development within their borders trumped those concerns, and that local governments had the clear legal authority to decide how development could proceed.

“On the one hand, you're saying yes, we should have a comprehensive strategy to deal with such an important issue to our state – energy,” Chief Judge Jonathan Lippman explained when the cases were argued before the court on June 3. “And on the other hand, municipalities believe (they can) determine how they're going to live. They want some voice in how they live.”

Today, less than a month later, the court's majority decided in favor of local control. “The towns both studied the issue and acted within their home rule powers in determining that gas drilling would permanently alter and adversely affect the deliberately-cultivated, small-town character of their communities,” the New York Court of Appeals wrote in its majority ruling.

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.

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.

Mon, 2014-05-12 10:21Ben Jervey and Steve Horn
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"No Turning Back:" Mexico's Looming Fracking and Offshore Oil and Gas Bonanza

After generations of state control, Mexico’s vast oil and gas reserves will soon open for business to the international market.

In December 2013, Mexico’s Congress voted to break up the longstanding monopoly held by the state-owned oil giant Petroleos Mexicanos — commonly called Pemex — and to open the nation’s oil and gas reserves to foreign companies.

The constitutional reforms appear likely to kickstart a historic hydraulic fracturing (“fracking”) and deepwater offshore oil and gas drilling bonanza off the Gulf of Mexico.

“This reform marks a major breakthrough in Mexico’s economic history only comparable to the signing of the North America Free Trade Agreement (NAFTA) in 1992,” international investing and banking giant Banco Bilbao Vizcaya Argentaria (BBVAwrote in a January 2014 economic analysis.

What does this mean for the oil and gas industry in Mexico? And for the workers and those who live above these oil and gas plays or along the pipeline routes that will funnel the liquids to refineries? And how about for the Earth’s atmosphere?

Can Mexico’s fossil fuel infrastructure handle the boom? Can the country spare the precious freshwater supplies needed for thirsty fracking operations in an era of increasingly severe droughts and drinking water shortages? Can environmental, safety and public health regulations possibly keep up with this industrial boom?

DeSmogBlog will examine all these issues and more as Mexico opens its fossil fuel reserves to international exploitation in the weeks and months ahead. But, first, an overview of the state of play in Mexico’s energy reforms.

Sun, 2014-04-06 11:18Sharon Kelly
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Responding to Investor Pressure, ExxonMobil Agrees to Disclose Fracking Risks

ExxonMobil, the nation's largest oil and gas company, will begin disclosing risks associated with shale drilling and fracking to investors, in response to a long-running campaign by a coalition of shareholders.

In February, the groups of investors in a handful of major oil and gas companies including Exxon, Chevron and EOG Resources, demanded for the fifth year in a row more information from companies about the risks associated with fracking. The motion won the support of over 30 percent of Exxon shareholders — an unusually strong showing for a shareholder resolution.

On Thursday, the investors’ coalition announced that Exxon was the first company to agree to disclose risks. The company will publish a report by September that will describe fracking’s potential harm to air quality, water and roads, as well as risks associated with the chemicals used. Exxon agreed to follow criteria identified in a 2013 report, cited by the coalition and called Disclosing the Facts: Transparency and Risk in Hydraulic Fracturing Operations, in which Exxon received a failing grade for its transparency.

We have seen the significant risks that come from hydraulic fracturing activities,” said New York City Comptroller Scott M. Stringer, custodian and investment advisor for the New York City Pension Funds’ $144 billion in assets, including $1.02 billion in ExxonMobil stock. “Corporate transparency in this arena is truly necessary for assessing risk and ensuring that all stakeholders have the information they need to make informed decisions.”

However, Exxon’s first report will not disclose data on methane leaks – information that shareholders argued strongly should be made public. Natural gas is primarily made of methane, a potent greenhouse gas that has climate changing effects over 80 times more powerful than carbon dioxide during the first two decades after it escapes to the Earth’s atmosphere.

Thu, 2013-11-07 09:00Sharon Kelly
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Could California's Shale Oil Boom Be Just a Mirage?

Since the shale rush took off starting in 2005 in Texas, drillers have sprinted from one state to the next, chasing the promise of cheaper, easier, more productive wells. This land rush was fueled by a wild spike in natural gas prices that helped make shale gas drilling attractive even though the costs of fracking were high.

As the selling price of natural gas sank from its historic highs in 2008, much of the luster wore off entire regions that had initially captivated investors, like Louisiana’s Haynesville shale or Arkansas’s Fayetteville, now in decline.

But unlike natural gas prices, oil prices remain high to this day, and investors and policymakers alike remain dazzled by the heady promise of oil from shale rock. Oil and gas companies have wrung significant amounts of black gold from shale oil plays like Texas’s Eagle Ford and North Dakota’s Bakken.

Shale oil, they say, is the next big thing.

“After years of talking about it, we’re finally poised to control our own energy future,” President Obama said in his most recent State of the Union address. “We produce more oil at home than we have in 15 years.”

But once again, the reality may be nothing like the hype. Consider California.

Mon, 2013-09-23 21:12Sharon Kelly
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Fracking Main Street: New Report Shows Social Costs for Rural Communities

What’s it like living in a small town that’s gone from rust belt farmland to fracking boomtown?

First, residents often say, there’s the traffic.  Communities have been unexpectedly flooded with heavy tractor trailers that locals say turn 10 minute commutes into hour-long ordeals, choke back roads and decimate pavement so badly that in some areas, drilling companies are barred from entering until they agree to pay for road repairs. “The traffic here is horrendous,” Towanda, PA resident Joe Benjamin told NPR.

Others often describe the impacts on the social fabric – a “wild west” atmosphere that brings with it increased crime and public health problems.

But these reports have been largely anecdotal, with little to quantify how big these impacts are or how much of it is due to fracking. Until now.

A new report by Food and Water Watch examines the social impacts of fracking, comparing traffic, crime and sexually transmitted infections in rural Pennsylvania counties. Using a decade worth of county-level data, they compare the differences between counties with substantial fracking and without, and how these counties have changed over time, from before the boom until after it set in.

“Pennsylvania’s natural gas boom has brought thousands of new gas wells, a number of transient workers and a host of social problems,” the report says. “This study is the first detailed, long-term analysis of the social costs of fracking borne by rural Pennsylvania communities.”

FWW documented sharp differences in traffic accident rates, petty crimes, and sexually transmitted infections. According to the report:

Mon, 2013-09-23 20:01Farron Cousins
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Regulatory Negligence Endangers Texas Citizens As Eagle Ford Fracking Impacts Soar

There’s no denying that Texas is the state that dirty energy built.  It remains the single largest source of domestically produced oil in the United States, and currently has more fracking wells than any other state.  With an abundant supply of dirty energy money, the state government of Texas is completely owned by the dirty energy industry.

This trifecta of industry domination is playing itself out in southern Texas, in what has become a no man's land for federal regulators.

According to a new report by Earthworks, energy companies drilling in the Eagle Ford Shale basin are wreaking havoc on both the environment and the people, and federal regulators have essentially abandoned the area.  This exodus of oversight has led to an increase in environmental abuses by the dirty energy industry.

But it wasn’t always this way in Texas.  According to Earthworks, regulators have been present in the area, and even carried out some needed investigations into the damage caused by drillers.  

But what the regulators found was so horrible that they had to evacuate themselves, and that was the last that residents in the area heard from them.

Sun, 2013-05-12 12:57Farron Cousins
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Obama, Biden Parroting Bogus Gas Industry Talking Points

For several years, both President Obama and Vice President Biden have been singing the praises of natural gas and hydraulic fracturing, claiming that the upcoming “cheap energy boom” would bring hundreds of thousands of jobs to work-hungry Americans.

The claim, which reached the most ears during the President’s 2012 State of the Union Address and was parroted throughout the campaign season, was that the new shale gas bonanza would bring 600,000 new jobs to America over the next decade.  With job creation as a top campaign issue, this talking point resonated well with American voters. 

And while the talking point was blindly reprinted by countless media outlets, the source has been traced back to the dirty energy industry itself.  Specifically, a 2012 shale gas / fracking booster sheet produced by the American Petroleum Institute.

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