Drilling

Mon, 2014-04-28 12:14Ben Jervey
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Oil Industry Cherry-Picks Drilling Data to Mislead Public on Federal Lease Programs

The oil industry and its well-compensated apologists in Congress like to complain that the Obama administration is stalling oil production on public lands. The problem with that argument: it’s demonstrably false.

While plenty of environmental advocates may wish that President Obama was actively working to keep the fossil fuel reserves underground, the data tells a much different story.

In fact, according to new data released by the Department of the Interior, the amount of crude oil produced on onshore federal lands in 2013 was the highest it has been in over a decade.

This hasn’t stopped the oil industry from “distorting and cherry-picking statistics,” in the words of the Center for Western Priorities, to argue for even fewer regulations and more lax permitting processes.

A recent post on the The Daily Caller is representative of the oil industry's spin, and provides a tutorial in cherry-picking data.

The total number of oil and gas drilling leases issued in 2013 reached a nearly three-decade lows, according to the Bureau of Land Management. The bureau says it issued 1,468 drilling leases last year, totaling 1.17 million acres of federal land — the lowest figures since 1988, which is the oldest year for which the BLM has data.

Overall, U.S. oil production has boomed in recent years, but production on federal lands has been falling. The Congressional Research Service reports that oil production on federal lands fell from 1,731,500 barrels per day in 2009 to 1,627,400 barrels per day in 2012, and the total shareof crude oil produced on federal lands fell to 26 percent in 2012 from 33 percent in 2009.

Let’s unpack this a bit.

Thu, 2014-04-24 11:16Farron Cousins
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Report: Arctic Oil Spill Readiness Virtually Nonexistent

Sea ice in the Arctic Circle is currently melting at a pace far greater than scientists had originally projected.  While this is bad news for the planet — sea ice helps reflect the sun’s rays and keeps the arctic cooler — it has created new paths for the oil industry to exploit the resources hidden deep under the icy water.

Drilling activities in the Arctic have currently stalled, but this stall isn’t going to last forever.  The Arctic is estimated to hold about 13% of the world’s oil reserves, and at least one-third of the total oil within U.S. territory.  This means that the oil companies don’t need to worry with drilling on foreign lands or about the prospect of not hitting a massive payday.  They will return.

That’s the problem – they will return.  According to a new report by the National Research Council, that is a very scary scenario for both the climate and the environment.  The report says that increased drilling and the placement of oil pipelines make oil spills a question of “when,” not “if.”

The report lays out two very specific themes with regards to Arctic drilling. The first is that there is no discernable oil spill response plan, and the second is that the history of oil companies tells us with great certainty that there will be a massive spill as a result of the increased activity in the region.

Tue, 2014-03-11 05:00Sharon Kelly
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Fracking in Public Forests Leaves Long Trail of Damages, Struggling State Regulators

Last Wednesday, the Washington D.C. city council passed a resolution opposing fracking in the George Washington National Forest, making the nation’s capitol the third major U.S. city, after Los Angeles and Dallas, to decry the hazards of shale drilling in recent days.

The D.C. council’s resolution called on the U.S. Forest Service to prohibit horizontal hydraulic fracturing in the forest’s headwaters of the Potomac River, the sole source of water for the nation’s capital, citing the risks of pollution and the costs of monitoring for contamination.

It is unclear whether the DC City Council vote will hold any sway in determining the actual fate of the forest. The decision whether to permit fracking there primarily rests with the U.S. Forest Service, which is currently updating its long-term management plan for the George Washington National Forest.

As the debate over shale drilling intensifies in the nation’s capitol and across the country, Pennsylvania offers useful lessons for how states have mishandled their forests. Pennsylvania has been ground zero for Marcellus shale development and roughly two thirds of Pennsylvania’s state forest land lies above the Marcellus shale, one of the largest shale plays in the U.S.

Cornell University Professor Anthony Ingraffea recently reviewed state data on environmental violations in Pennsylvania state forests, including the 100,000-acre Loyalsock forest in the north central part of the state, a popular tourist destination and the focus of a local controversy over fracking.

What Mr. Ingraffea found highlights the hazards of drilling and demonstrates how a powerful industry can overwhelm regulators’ capacity to protect against environmental harms.

State regulators, the data revealed, have been unable to adequately keep tabs on drilling on state lands.

Over 59 percent of the Marcellus wells already drilled in the Loyalsock had never been inspected, Prof. Ingraffea found, and over a quarter of wells on state lands had no inspection reports available to the public.

Tue, 2014-03-04 05:00Sharon Kelly
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The View from Europe: America’s Shale Boom Looks More Like a Blip

The fracking boom has progressed at breakneck speed across the U.S., with roughly one in 20 Americans now living within a mile of a well drilled since 2000.

So, how much has the economy benefitted from this drilling surge?

Not much, according to a report presented to the European Union Parliament last month, which found “no evidence that shale gas is driving an overall manufacturing renaissance in the US.”

The shale boom’s economic contributions are very narrow, inflating local economies in places where drilling is intense but generating little impact on the country’s overall economic growth, the Institute for Sustainable Development and International Relations, a French think tank, concluded.

Although natural gas prices have fallen from their highs in 2008, benefitting consumers, those low levels are unlikely to be sustained and the U.S. is still expected to remain heavily reliant on importing crude oil, the researchers found.

Even using very optimistic assumptions, the report said, the industry’s cumulative long term effect on America’s Gross Domestic Product (GDP) will be less than one percent. “Despite very low and ultimately unsustainable short-term prices of natural gas, the unconventional oil and gas revolution has had a minimal impact on the US macro-economy,”

That’s not the amount that shale gas will add to the economy each year, the researchers said. Instead, the industry will make up no more than 0.84 percent of total GDP between 2012 and 2035 – the years when the shale boom is projected to be at its height. To put that in context, the personal care products industry – hair styling, cosmetics and the like – contributed 1.4 percent of GDP in 2010 – nearly double the impact that the EU report found the shale gas rush could have.

Tue, 2014-02-25 05:00Farron Cousins
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Gulf Of Mexico: Open For Dirty Energy Exploitation Again

It has been nearly four years since BP’s Deepwater Horizon oil rig explosion and oil disaster in the Gulf of Mexico, and neither the dirty energy industry nor politicians in Washington, D.C. have learned anything from that tragedy.  Even with new evidence showing that the entire ecosystem in the Gulf has been disrupted as a result of the oil spill, companies are about to receive a massive gift in the form of new oil drilling leases.

Both the Interior Department and the Bureau of Ocean Energy Management (BOEM) have agreed to lease 40 million acres of water space in the Gulf of Mexico next month to support President Obama’s “all of the above” energy policy, which is quickly beginning to look more like a “drill, baby, drill” policy.  The leases will be good for five years’ worth of exploration in the Gulf.

Sat, 2014-02-08 10:47Anne Landman
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Colorado Senate Passes Split Estate Disclosure Bill on Unanimous Vote

bill requiring disclosure of a possible split estate condition upon the sale of residential property passed the Colorado Senate on January 24, 2014 in a unanimous vote.

The consumer protection and fracking-awareness bill orders sellers of residential property to disclose to buyers whether the surface of the property may be separately owned from the mineral rights beneath the land.

The bill also requires sellers to disclose any oil and gas-related activity that could possibly occur on or adjacent to the property, including drilling, surveying, oil or gas storage, well completion operations, or gas processing facilities.

The 2009 documentary “Split Estate” by Red Rock Pictures raised awareness of so-called “split estate” situations in which land owners in the Rocky Mountain region were completely unaware that they did not own the mineral rights to property beneath their land or homes. The movie showed families enduring tragedies after drilling operations suddenly sprang up next to their homes, including contamination of domestic water wells and springs, drilling rigs catching fire frighteningly close to their homes, and family members falling desperately ill after exposure to oil and gas exploration operations next to their residences.

Under the bill, the split estate disclosures would have to be listed in bold faced-type on the contract. If it passes the Colorado House and is signed by Governor John Hickenlooper, the measure will take effect just after midnight on August 6, 2014 – 90 days after the Colorado Legislature adjourns for the year. 

Thu, 2014-02-06 08:58Sharon Kelly
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In Pavillion, Wyoming Water Contamination Case, Questions Continue To Swirl About Oil and Gas Industry's Role

A funny thing happened when Idaho Dept. of Lands Oil and Gas Program Manager Robert Johnson stepped to the microphone at a public hearing this past fall. He said something that many have long suspected, but few officials have actually been willing to say bluntly and publicly.

He said that the oil and gas industry was responsible for the contaminated groundwater in Pavillion, Wyoming — referring to a high-profile case where environmentalists have alleged oil and gas drilling and fracking caused a town’s water supplies to go bad.  

Everybody's heard of Pavillion, Wyoming,” Mr. Johnson said. “OK. Pavillion was a leaking above ground pit that was not lined.”

Did the industry cause it?” Mr. Johnson said. “Yes they did.”

Later in his talk, Mr. Johnson also pointed to a faulty cement casing in a natural gas well as another factor in the case, describing EPA data showing pollution was caused “by a bad cement job on an Encana well that was drilled in 1985.”

His statement is noteworthy because, before coming to Idaho, Mr. Johnson was directly involved with the Pavillion investigation. He worked for the groundwater division of the Wyoming State Engineer’s Office, which has taken the lead role in the contamination investigation.

The comments, which were recorded by county officials and distributed by anti-drilling advocates, were also significant because they were so candid and because the state of Wyoming maintains that more study is needed before blame can be assigned. The state is currently investigating the Pavillion incident and expects to publish a report in September of this year.

Asked about the comments, Idaho state officials said that the remarks about wastewater pits were intended “to illustrate that the State of Idaho requires lined pits to avoid surface contamination,” adding that Mr. Johnson, an Idaho official, was not speaking on behalf of the State of Wyoming. Mr. Johnson worked for the oil and gas industry before joining the Wyoming State Engineer’s Office.

Tue, 2014-02-04 17:40Anne Landman
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Study Links Gas Drilling to Heart Defects in Babies

newly-published study specific to Colorado (pdf) links the rate of congenital heart defects in babies to how close they live to natural gas wells.

The study, published January 28, 2014 in Environmental Health Perspectives, a publication of the National Institute of Environmental Health Sciences, examined a large cohort of babies over an extended period of time – 124,842 births between 1996 and 2009 in rural Colorado.

Researchers discovered an association between the density and proximity of methane (“natural gas”) wells within a ten mile radius of the mothers' residences and the prevalence of heart defects, low birth weight and small-for-gestational age in newborns. Congenital heart defects are often associated with maternal exposure to toxins during gestation from sources like maternal smoking, alcohol abuse, exposure to solvents, benzene, toluene and petroleum-based solvents.

Low birth weight and pre-term births are associated with exposure to air pollutants, including volatile organic compounds, nitrogen dioxide and particulate matter, all of which are emitted during natural gas production.

The authors restricted their study to people living in rural areas and towns in Colorado with populations under 50,000 to reduce the potential for exposure to other sources of pollution, like heavy traffic and pollution from other industries. The researchers compared results with births among mothers who live in control areas that do not have natural gas drilling nearby.

Fri, 2014-01-31 05:00Sharon Kelly
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Amid Calls for EPA to Reopen Fracking Investigations, States Confirm Contaminated Groundwater

Republican Sen. James Inhofe said it. Colorado Governor John Hickenlooper said it. Even former Environmental Protection Agency chief Lisa Jackson said it.

For over a decade, oil and gas executives and the policy makers who support them have repeated a single bold claim: there has never been a single documented case where fracking contaminated groundwater. 

But a blockbuster investigative report by the Associated Press offered up new evidence earlier this month that the shale industry’s keystone environmental claim is simply not true.

Multiple states confirmed that drilling and fracking contaminated groundwater supplies, the investigation found. There have been thousands of complaints from people living near drilling over the past decade, the AP reported, and three out of the four states from which the AP obtained documents confirmed multiple instances where oil and gas companies contaminated groundwater.

Out of the four states the AP obtained documents from, only Texas reported no confirmed oil and gas-related groundwater contamination. But one high-profile incident in Texas has again come under scrutiny, as a report quietly released by the Obama administration on Christmas Eve has called the adequacy of the state’s investigation into question.

On Monday, over 200 environmental groups called on President Obama to reopen the federal investigations into that case and others in Pennsylvania and in Wyoming, and to personally meet with people whose drinking water supplies have been polluted.

“The previously closed EPA investigation into these matters must be re-opened,” said the letter, sent the day before Mr. Obama's State of the Union address. “These three are among a growing number of cases of water contamination linked to drilling and fracking, and a significant and rapidly growing body of scientific evidence showing the harms drilling and fracking pose to public health and the environment.”

Thu, 2013-10-24 05:00Farron Cousins
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US Chamber President Tom Donohue Pushes Deceitful Dirty Energy Talking Points

Tom Donohue, the president of the massive business lobbying group the U.S. Chamber of Commerce, is once again doing the bidding of the dirty energy industry by claiming that America is on the verge of complete “energy security.”

On the pages of the U.S. Chamber’s Free Enterprise website, Donohue claimed that America has become an “energy rich” nation, no longer susceptible to problems like the gas shortage of the 1970’s.  In Donohue’s own words:

We’re sitting on a 200-year supply of oil and have enough natural gas to last us 115 years. And we’re discovering more resources every day. Thanks to new technology, entrepreneurship, and access to private lands, we’re able to develop more of it than ever—particularly the unconventional oil and gas, which was previously too costly to reach…

…Our national energy policy is still based on the false assumption that we are an energy-poor nation. The federal government continues to keep 87% of federal lands off limits for energy development. Our affordable and abundant coal resources are under constant regulatory threat by EPA. The administration is proposing new regulations on shale energy development, even though it is already stringently regulated at the state level. And some in the government still want to pick winners and losers among energy industries.

Donohue would have us believe that the United States is sitting on vast energy reserves that would quench our dirty energy addiction for centuries, but the pesky federal government is trying to keep those honest energy companies down. 

This is the same government that, a few paragraphs earlier Donohue inadvertently admitted, had allowed increased oil and gas drilling in the United States and reduced our need for imports:

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