exxon

Global Shale Fail: Oil Majors Leaving Fracking Fields Across Europe, Asia

With some analysts predicting the global price of oil to see another drop, many oil majors have deployed their parachutes and jumped from the hydraulic fracturing (“fracking”) projects rapidly nose-diving across the world.

As The Wall Street Journal recently reported, the unconvetional shale oil and gas boom is still predominantly U.S.-centric, likely to remain so for years to come.

“Chevron Corp., Exxon Mobil Corp. and Royal Dutch Shell PLC have packed up nearly all of their hydraulic fracturing wildcatting in Europe, Russia and China,” wrote The Wall Street Journal.

“Chevron halted its last European fracking operations in February when it pulled out of Romania. Shell said it is cutting world-wide shale spending by 30% in places including Turkey, Ukraine and Argentina. Exxon has pulled out of Poland and Hungary, and its German fracking operations are on hold.” 

Though the fracking boom has taken off in the U.S. like no other place on Earth, the U.S. actually possesses less than 10 percent of the world’s estimated shale reserves, according to The Journal.

Despite this resource allotment discrepency, the U.S. Energy Information Administration (EIA) recently revealed that only four countries in the world have produced fracked oil or gas at a commercial-scale: the United States, Canada, China and Argentina.

Global Shale Fail
Image Credit: U.S. Energy Information Administration

Was Climate Science Denialist Willie Soon Funded To Do Science Or Was It Just PR Cash From The Fossil Fuel Industry?

Willie Soon fossil fuel funding

So one of the climate science denial industry’s most celebrated scientists has been caught describing his research work as “deliverables” to his fossil fuel funders.

Dr Willie Soon, the aeronautics engineer who dabbles in public health, atmospheric science, solar physics and sea level rise, describes himself as an “independent scientist”.

More often though over the years, he is described by others as an “astrophysicist” at the Harvard-Smithsonian Center for Astrophysics, lending him credibility which most serious climate scientists would argue Soon’s science doesn’t deserve.

As one University of Michigan professor put it to the Chronicle of Higher Education: “Why is anyone even listening to him? Because he’s got ‘Harvard’ after his name. Once you take that away, who is Willie Soon? He’s nobody.”

In recent days, the Smithsonian has pointed out that even though Soon is employed as a “part time researcher at the Smithsonian Astrophysical Laboratory” they don’t actually pay him. “Dr. Soon pursues external sources to fund his research activity,” a statement said.

Soon has solicited more than $1.5 million since 2001 from fossil fuel companies and conservative foundations.

Coal electricity generator Southern Company, Exxon, Donors Trust, the Charles G. Koch Foundation and the American Petroleum Institute have been among his key funders.

Climate Denyin' Scientist Willie Soon Says 'I'm Lovin' It'...

Climate scientists tempted by the millions of dollars paid by the oil industry to researchers who happen to come up with the right conclusions have been warned – you would be better off flipping burgers.

Willie Soon, a researcher at the Harvard-Smithsonian Centre for Astrophysics, has accepted cash from the oil baron Koch brothers, oil behemoth ExxonMobil and the American Petroleum Institute – the troika of industry-funded climate denial.

The New York Times on Sunday revealed that Soon promised “deliverables” including scientific papers and Senate testimony when negotiating terms with energy companies.

But the maverick researcher claims he would have been better off working for a burger chain and is walking on his uppers…

How Tobacco Shills Inspired Climate Denial

DeSmog UK’s history series examines how the tobacco industry’s PR tactics proved inspirational for the army of climate change deniers.

Dr Fred Singer and his sceptic Science and Environmental Policy Project (SEPP) would become an increasingly important platoon in the army assembling against climate science.

Along with the late Dr Frederick Seitz – a founder of the Marshall Institute – the SEPP would use PR tactics developed by the tobacco industry to question and undermine climate science.

Seitz, for example, accused the UN Intergovernmental Panel on Climate Change (IPCC) of producing scientific summaries “exaggerating risk… solely – we suspect – to satisfy an ideological objective of aggressively constraining the use of energy.”

Fracking Failure: Frackers In Pennsylvania Violate Health And Environmental Regulations On A Daily Basis

From the American Petroleum Institute’s claim that fracking is “safely unlocking vast U.S. reserves of oil and natural gas” to Chris “Frack Master” Faulkner himself insisting “fracking isn’t contaminating anything,” the oil and gas industry constantly tells us that fracking can be done safely, despite plenty of evidence to the contrary.

But just to be sure the public understands how seriously they considered public health, a group of oil and gas companies fracking in Pennsylvania formed the Center for Sustainable Shale Development in 2013. According to its website, CSSD is dedicated to “the development of rigorous performance standards for sustainable shale development and a commitment to continuous improvement to ensure safe and environmentally responsible development of our abundant shale resources.”

“Rigorous performance standards for sustainable shale development” certainly sounds great. The only problem is, none of the four companies that founded CSSD — Chevron Appalachia, Consol Energy, EQT Production and Shell — seems to have actually adhered to those standards.

According to a new report by Environment America titled “Fracking Failures: Oil and Gas Industry Environmental Violations in Pennsylvania and What They Mean for the U.S.,” ever since those four companies “told the public they would adhere to higher standards” in 2013, they have collectively committed as many as 100 violations of Pennsylvania’s existing oil and gas regulations.

Climate Legacy: Report Offers Stark Reminder Why Fossil Fuel Industry Is So Intent To Avoid Accountability For Pollution

If the governments of the world get serious about tackling climate change and adopt aggressive limits on global warming emissions, many fossil fuel companies’ could see their assets become stranded, forcing them to fundamentally change their business models or go out of business altogether.

But there’s another reason why those companies are so desperate to forestall any and all attempts to rein in climate emissions by holding polluters accountable: fossil fuels companies themselves are responsible for a massive amount of the greenhouse gases cooking our climate.

The Climate Accountability Institute has updated its Carbon Majors Project in time for the climate talks in Lima, Peru, “detailing the direct and product-related emissions traced to the major industrial carbon producers in the oil, natural gas, coal, and cement industries” through 2013. CAI has found that the carbon-based fossil fuels and cement produced by just 90 entities were responsible for 65% of the 1,443 billion metric tonnes of CO2 emitted between 1751, the dawn of the industrial era, and 2013.

Some 50 investor-owned companies are among the 90 entities on the Carbon Majors list, and they are collectively responsible for nearly 22% of all global warming emissions up to 2013, while the 36 state-owned companies on the list are responsible for another 20%.

Obama Signals Keystone XL "No" on Colbert Report As Enbridge "KXL Clone" He Permitted Opens

In his December 8 “Colbert Report” appearance, President Barack Obama gave his strongest signal yet that he may reject a presidential permit authorizing the Alberta to Cushing, Oklahoma northern leg of TransCanada's Keystone XL tar sands pipeline. 

Yet just a week earlier, and little noticed by comparison, the pipeline giant Enbridge made an announcement that could take the sails out of some of the excitement displayed by Obama's “Colbert Report” remarks on Keystone XL North. That is, Enbridge's “Keystone XL Clone” is now officially open for business

“Keystone XL Clone,” as first coined here on DeSmogBlog, consists of three parts: the U.S.-Canada border-crossing Alberta Clipper pipeline; the Flanagan, Illinois to Cushing Flanagan South pipeline; and the Cushing to Freeport, Texas Seaway Twin pipeline.

Enbridge announced that Flanagan South and its Seaway Twin connection are now pumping tar sands crude through to the Gulf of Mexico, meaning game on for tar sands to flow from Alberta to the Gulf through Enbridge's pipeline system.

Alberta Clipper, now rebranded Line 67, was authorized by Hillary Clinton on behalf of the Obama State Department in August 2009 and got a quasi-official permit to expand its capacity by the State Department over the summer. That permit is now being contested in federal court by environmental groups.

Flanagan South, meanwhile, exists due to a legally contentious array of close to 2,000 Nationwide Permit 12 permits handed out by the U.S. Army Corps of Engineers, which — as with Alberta Clipper expansion — has helped Enbridge usurp the more democratic and transparent National Environmental Policy Act (NEPA) review process

The Kochtopus Spreads its Tentacles To Strangle Climate Science

DeSmog UK tells the story of how the ideologically matched and politically inseparable Blundell and Dr Fred Singer became close and controversial allies, in our epic history series.

One evening John Blundell arrived at the Hickory Farm neighbourhood watch meeting in Virginia, and to his surprise discovered he was living close to Dr S Fred Singer, who he had met on the free market think tank circuit.

Singer was with his new wife Candice Crandall, who Blundell had met separately as a press officer at the Koch funded George Mason University (GMU).

More Oil Companies To Disclose Risks Of Fracking, Climate Change To Investors

Last week brought yet more evidence that investors in oil and gas companies are waking up to the risks of fracking and climate change.

Two natural gas companies, Anadarko Petroleum and EOG Resources, recently struck a deal with New York Attorney General Eric Schneiderman to disclose the financial and environmental risks associated with fracking to their shareholders, including “probable future regulation and legislation” that could impact their operations, according to a statement released by Schneiderman's office.

The agreement resolves a probe by Schneiderman into the disclosure practices of oil and gas companies begun in 2011.

Business media outlets like Bloomberg are framing the story very much as “oil companies doing the right thing,” but it's important to note that these companies would not be doing this if they didn't feel it was in their best interest—and generally whatever keeps shareholders happy is in a company's best interest.

Bloomberg notes that the oil companies are hoping “to ease public fears about fracking after legal setbacks and concerns over water pollution.” As is becoming increasingly clear, concerns over water pollution are all too valid.

Legal setbacks are probably keeping any fracker in New York up at night, as well, after the New York state supreme court ruled in June that municipalities have the right to adopt their own rules on fracking.

So far, 180 New York towns and cities have issued a ban or moratorium on fracking.

Tar Sands Trade: Kuwait Buys Stake in Alberta As It Opens Own Heavy Oil Spigot

Chevron made waves in the business world when it announced its October 6 sale of 30-percent of its holdings in the Alberta-based Duvernay Shale basin to Kuwait Foreign Petroleum Exploration Company (KUFPEC) for $1.5 billion.

It marked the first North American purchase for the Kuwaiti state-owned oil company and yields KUFPEC 330,000 acres of Duvernay shale gas. Company CEO and the country's Crown Prince, Sheikh Nawaf Al-Ahmad Al-Jaber Al-Sabah, called it an “anchor project” that could spawn Kuwait's expansion into North America at-large. 

Kuwait's investment in the Duvernay, at face-value buying into Canada's hydraulic fracturing (“fracking”) revolution, was actually also an all-in bet on Alberta's tar sands. As explained in an October 7 article in Platts, the Duvernay serves as a key feedstock for condensate, a petroleum product made from gas used to dilute tar sands, allowing the product to move through pipelines. 

And while Kuwait — the small Gulf state sandwiched between Iraq and Saudi Arabia — has made a wager on Alberta's shale and tar sands, Big Oil may also soon make a big bet on Kuwait's homegrown tar sands resources.

“Kuwait has invited Britain’s BP, France’s Total, Royal Dutch Shell, ExxonMobil and Chevron, to bid for a so-called enhanced technical service agreement for the northern Ratqa heavy oilfield,” explained an October 2 article in Reuters. “It is the first time KOC will develop such a big heavy oil reservoir and the plan is to produce 60,000 bpd from Ratqa, which lies close to the Iraqi border [in northern Kuwait]…and then ramp it up to 120,000 bpd by 2025.”

In the past, Kuwait has said it hopes to learn how to extract tar sands from Alberta's petroleum engineers.

Pages

Subscribe to exxon