Occupy Wall Street

Mon, 2014-11-03 12:30Steve Horn
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Federal Reserve Policy Keeps Fracking Bubble Afloat and That May Change Soon

In August 2005, the U.S. Congress and then-President George W. Bush blessed the oil and gas industry with a game-changer: the Energy Policy Act of 2005. The Act exempted the industry from federal regulatory enforcement of the Safe Drinking Water Act, the Clean Water Act and the National Environmental Policy Act.

While the piece of omnibus legislation is well-known to close observers of the hydraulic fracturing (“fracking”) issue — especially the “Halliburton Loophole” — lesser known is another blessing bestowed upon shale gas and tight oil drillers: near zero-percent interest rates for debt accrued during the capital-intensive oil and gas production process.

Or put more bluntly, near-free money from the U.S. Federal Reserve Bank. That trend may soon come to a close, as the Federal Reserve recently announced an end to its controversial $3 trillion bond-buying program.

In response to the economic crisis and near collapse of the global economy, the Federal Reserve dropped interest rates to between 0 percent and .25 percent on December 16, 2008, a record low percentage. It also began its bond-buying program, described in a recent Washington Post article as implemented to provide a “booster shot” to the economy.

“The Federal Reserve will employ all available tools to promote the resumption of sustainable economic growth and to preserve price stability,” the Fed stated in a press release announcing the maneuver. “In particular, the [Federal Reserve] anticipates that weak economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time.”

That free money, known by economics wonks as quantitative easing, helps drilling companies finance fracking an increasingly massive number of wells to keep production levels flat in shale fields nationwide.

But even with the generous cash flow facilitated by the Fed, annual productivity of many shale gas and tight oil fields have either peaked or are in terminal decline. This was revealed in Post Carbon Institute's recently-published report titled, “Drilling Deeper: A Reality Check on U.S. Government Forecasts for a Lasting Tight Oil & Shale Gas Boom.” 

Tue, 2014-07-01 09:17Steve Horn
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Meme with Wings: Are Western Anti-Fracking Activists Funded by Putin's Russia?

At a June 19 speaking event at London's Chatham House, North Atlantic Treaty Organization (NATO) secretary-general Anders Fogh Rasmussen claimed the Russian government is covertly working to discredit hydraulic fracturing (“fracking”) in the west from afar.

“I have met allies who can report that Russia, as part of their sophisticated information and disinformation operations, engaged actively with so-called non-governmental organisations — environmental organizations working against shale gas — to maintain European dependence on imported Russian gas,” said Rasmussen, the former Prime Minister of Denmark.

Rasmussen's comments were relayed to the press by someone in attendance who apparently broke the “Chatham House Rule” by telling outsiders about the content of a Chatham House meeting.


Anders Fog Rasmussen; Photo Credit: Wikimedia Commons

But Rasmussen left out some key context from his presentation, which he said “is my interpretation” and did not further elaborate on his “disinformation operations” comments.   

That is, while powerful actors have claimed on multiple occasions that western-based anti-fracking activists are funded by the Kremlin, no one has ever documented such a relationship in the form of a money paper trail.

Sun, 2011-12-04 13:00Steve Horn
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U.S. Rep. Dan Boren, Exemplar of Political Corruption

Today, The New York Times ran an investigative piece uncovering a thick, multi-layered corruption scene, honing in on one man: U.S. Rep. Dan Boren (D-OK). Boren, many will recall, is one of the original co-sponsors of H.R. 1380, the NAT GAS Act, also known as the Pickens Plan, which would given tax credits to natural gas vehicles - the bigger the vehicle the more tax credits recieved. 

As I have covered on numerous occasions, the NAT GAS Act was written by and for the trio of energy magnate T. Boone Pickens; Pickens' long-time business partner and President and CEO of Clean Energy Fuels Corp., Andrew Littlefair; and Chesapeake Energy's CEO Aubrey McClendon. I coined the three a “self-enriching trifecta.” 

Boren, as revealed by the Times, has served for years as a useful pawn for the unconventional gas industry insiders, or what the Occupy movement has rightfully coined the “one-percent.”

As Gas Riches Remake Plains, Lawmaker Shares in Bounty,” the NYT article written by Eric Lipton, reveals many important ties between Boren and the gas industry which he is dutifully serving as a “public servant.”

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.

Fri, 2011-10-14 08:49Emma Pullman
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Canadian Corporation Behind Efforts to Shut Down Occupy Wall Street Has Ties to Big Oil

Occupy Wall Street is about challenging the power of the richest 1%. But what happens when that 1% owns the land of the occupation? It has been revealed that a Canadian company was behind efforts to shut down the birthplace of the movement, Zuccotti Park. 

Mayor Bloomberg and the NYPD notified Occupy Wall Street participants about plans to “clean the park”— the site of the occupation—starting this morning at 7am. “Cleaning” has been repeatedly as a pretense to shut down peaceful occupations. It was used to evict protesters from the Wisconsin state house. It was used by Bloomberg himself to shut down a peaceable demonstration against budget cuts. The “cleaning” was essentially a ploy to evict protesters, but in a remarkable turn of events, the company backed down from threats to evict the park.

The attempted eviction comes hours before a global day of solidarity actions. The movement is taking the world by storm with a message that resonates powerfully with the millions of regular people: growing economic inequality is corrupting our democracies and making most people’s lives worse. 

So, who is behind the eviction threats? Brookfield Asset Management, a Canadian company, owns Zuccotti Park and the adjacent office building, One Liberty Plaza. The company has an agreement with the city that the park will be open to public use. 

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