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Brother of Hillary Clinton's Top Campaign Aide Lobbied for Fracked Gas Export Terminal Co-Owned by Qatar

Anthony “Tony” Podesta began lobbying in late 2013 on behalf of a company co-owned by ExxonMobil and Qatar Petroleum aiming to export liquefied natural gas (LNG) to the global market. Tony is the brother of John Podesta, former top climate change adviser to President Barack Obama and current top campaign aide for Hillary Clinton's 2016 bid for president

In October 2012, Podesta Group began lobbying on behalf of the proposed ExxonMobil-Qatar Petroleum Golden Pass LNG facility in Sabine Pass, Texas, according to lobbying disclosure forms. The forms indicate that Tony Podesta himself, not just his staff, lobbied on behalf of the terminal beginning in quarter four of 2013.

"Carbon Copy": How Big Oil and King Coal Ghost Write Letters for Public Officials, Business Groups

The Billings Gazette has revealed that coal mining company Cloudpeak Energy ghost wrote protest letters to the U.S. Department of Interior (DOI) on behalf of allied policymakers and business groups. 

Reporter Tom Lutey examined numerous letters written to DOI from Montana-based stakeholders and noticed something unusual: the language in every single letter was exactly the same. That is, the same except for a parenthetical note in one of them instructing the supposed writer of it to “insert name/group/entity.”

The “carbon copied” (pun credit goes to Lutey) letters requested for the DOI to give states a time extension to begin implementing new rules dictating the coal industry give states a “fair return” on mining leases granted to industry by the states. DOI ended up giving King Coal the 60-day extension.

“Last month, coal proponents scored a major victory by convincing the Department of Interior to hold off on its rule making for 60 days so that more people could respond,” Lutey wrote. “Members of the Montana Legislature, along with county commissioners and mayors from Montana and Wyoming communities put the weight of their political offices behind letters asking the DOI for more time. What they didn’t offer were their own words.”

Among those who submitted a “carbon copied” letter originally written by Cloudpeak Energy include the Montana Chamber of Commerce, Billings Chamber of Commerce, Montana Coal Council, Montana Sen. Debby Barrett and the Yellowstone County Board of Commissioners.  

Unlike others, the Montana Chamber of Commerce embarassingly forgot to take out the boilerplate “insert name/group/entity” language. 

Montana Chamber of Commerce Ghostwriting Coal Letter
Image Credit: Quit Coal

Cloud Peak responded by saying this was a “sample letter…included as part of…briefings,” but did not clarify if those allied stakeholders were supposed to send them to DOI in verbatim fashion, as did the Montana Chamber.

Industry-Stacked Energy Department Committee: Shale Running Dry, Let's Exploit the Arctic

A report assembled by an industry-centric US Department of Energy committee recommends the nation start exploiting the Arctic due to oil and gas shale basins running dry. 

In the just-submitted report, first obtained by the Associated Press, the DOE's National Petroleum Council — many members of which are oil and gas industry executives — concludes that oil and gas obtained via hydraulic fracturing (“fracking”) will not last beyond the next decade or so, thus the time is ripe to raid the fragile Arctic to feed our fossil fuel addiction. 

The NPC just launched a website and executive summary of the report: Arctic Potential: Realizing the Promise of U.S. Oil and Gas Resources.

Confirming the thesis presented by the Post Carbon Institute in its two reports, “Drill Baby, Drill” and “Drilling Deeper,” the National Petroleum Council believes the shale boom does not have much more than a decade remaining.

The NPC report appears to largely gloss over the role of further fossil fuel dependence on climate change, or the potentially catastrophic consequences of an oil spill in the Arctic.

The first mention of climate change appears to refer to “concern about the future of the culture of the Arctic peoples and the environment in the face of changing climate and increased human activity,” but doesn't mention the role of fossil fuels in driving those changes. Instead, the report immediately pivots to focus on “increasing interest in the Arctic for tourist potential, and reductions in summer ice provide an increasing opportunity for marine traffic.”

ExxonMobil CEO Rex Tillerson, a National Petroleum Council member, chimed in on the study in an interview with the Associated Press.  

“There will come a time when all the resources that are supplying the world's economies today are going to go in decline,” remarked Tillerson. “This is will [sic] be what's needed next. If we start today it'll take 20, 30, 40 years for those to come on.”

The National Petroleum Council also deployed the energy poverty argument, utilized most recently by coal giant Peabody Energy in its “Advanced Energy For Life” public relations campaign, to make its case for Arctic drilling as a replacement for fracking.

“But global demand for oil, which affects prices of gasoline, diesel and other fuels everywhere, is expected to rise steadily in the coming decades — even as alternative energy use blossoms — because hundreds of millions of people are rising from poverty in developing regions and buying more cars, shipping more goods, and flying in airplanes more often,” reads the report. “In order to meet that demand and keep prices from soaring, new sources of oil must be developed, the council argues.”

Drilling Deeper: New Report Casts Doubt on Fracking Production Numbers

Post Carbon Institute has published a report and multiple related resources calling into question the production statistics touted by promoters of hydraulic fracturing (“fracking”)

By calculating the production numbers on a well-by-well basis for shale gas and tight oil fields throughout the U.S., Post Carbon concludes that the future of fracking is not nearly as bright as industry cheerleaders suggest. The report, “Drilling Deeper: A Reality Check on U.S. Government Forecasts for a Lasting Tight Oil & Shale Gas Boom,” authored by Post Carbon fellow J. David Hughes, updates an earlier report he authored for Post Carbon in 2012.

Hughes analyzed the production stats for seven tight oil basins and seven gas basins, which account for 88-percent and 89-percent of current shale gas production.

Among the key findings: 

-By 2040, production rates from the Bakken Shale and Eagle Ford Shale will be less than a tenth of that projected by the Energy Department. For the top three shale gas fields — the Marcellus Shale, Eagle Ford and Bakken — production rates from these plays will be about a third of the EIA forecast.

-The three year average well decline rates for the seven shale oil basins measured for the report range from an astounding 60-percent to 91-percent. That means over those three years, the amount of oil coming out of the wells decreases by that percentage. This translates to 43-percent to 64-percent of their estimated ultimate recovery dug out during the first three years of the well's existence.

-Four of the seven shale gas basins are already in terminal decline in terms of their well productivity: the Haynesville Shale, Fayetteville Shale, Woodford Shale and Barnett Shale.

-The three year average well decline rates for the seven shale gas basins measured for the report ranges between 74-percent to 82-percent. 

-The average annual decline rates in the seven shale gas basins examined equals between 23-percent and 49-percent. Translation: between one-quarter and one-half of all production in each basin must be replaced annually just to keep running at the same pace on the drilling treadmill and keep getting the same amount of gas out of the earth.

As Energy Department Announces Methane Measures, Critics Call for Stronger Action

On Tuesday, the White House released a report estimating that delaying action on climate change could cause $150 billion a year in damage to the U.S. economy.

“These costs are not one-time, but are rather incurred year after year because of the permanent damage caused by increased climate change resulting from the delay,” the assessment warned.

That same day, President Obama announced moves to help reduce greenhouse gasses. But some critics charge that the President's actions have so far failed to be proportionate to the crisis the White House predicts.

As DeSmog reported, on Tuesday, the Environmental Protection Agency's program on natural gas pipeline leaks came under fire from the EPA's own internal watchdog. The EPA inspector general lambasted the agency for setting up rules that rely heavily on voluntary leak repairs by pipeline companies while turning a blind eye to state policies that allow those companies to simply pass the price of leaking gas to consumers instead of making costly repairs.

The resulting leaks, the EPA audit concluded, cost consumers over $192 million and the resulting greenhouse gasses each year were equal to putting an addition 2.7 million cars on the road.

On the heels of that report, the Obama administration announced that it would adjust its methane pollution controls — but the measures they announced fell far short of what some experts argue is necessary to curtail methane's climate hazards. The Department of Energy's new measures include adjustments to its voluntary leak control program and add funding for research into ways to better curb leaks.

While we applaud the commitments made by DOE, labor unions, utility groups, and other stakeholders,” Earthworks Policy Director Lauren Pagel told the Oil and Gas Journal, “voluntary measures and new research initiatives don’t adequately protect communities and the climate.”

Revealed: Heather Zichal Met with Cheniere Executives as Obama Energy Aide Before Board Nomination

Heather Zichal, former deputy assistant for energy and climate change to President Barack Obama and nominee to sit on the board of directors of LNG export company Cheniere Energy Inc., held two meetings with Cheniere executives while working for the White House. 

White House meeting logs show Zichal attended the meetings with three executives from Cheniere, owner of the Sabine Pass LNG (liquefied natural gas) export facility, the first terminal to receive a final approval from the U.S. Federal Energy Regulatory Commission (FERC) during the hydraulic fracturing (“fracking”) boom.

The meetings appear to have taken place just over two weeks apart from one another, according to the meeting logs. The first meeting was on January 14, 2013, and the second on January 29, 2013. Just over eight months later, Zichal resigned from her White House job, with Reuters citing “plans to move to a non-government job.”

Cheniere CEO Charif Souki — who is facing a major ongoing class-action lawsuit — sat in on both of those meetings. He was joined by Cheniere executives Patricia Outtrim, vice president of governmental and regulatory affairs, and Ankit Desai, vice president of government relations.

Desai, a Cheniere lobbyist, formerly worked with Zichal on U.S. Secretary of State John Kerry's 2004 presidential campaign, serving as his budget director. Desai also formerly served as political director for then-U.S. Senator and now Vice President Joe Biden.


President Barack Obama (L), Heather Zichal (Center), Sec. of State John Kerry (R); Photo Credit: Facebook

Zichal served as Kerry's energy and environment policy adviser for the 2004 campaign and in 2006, became his legislative director, a job she held until becoming policy director for energy, environment and agriculture for President Barack Obama's 2008 presidential campaign

Heather Zichal, Former Obama Energy Aide, Named to Board of Fracked Gas Exports Giant Cheniere

Heather Zichal, former Obama White House Deputy Assistant to the President for Energy and Climate Change, may soon walk out of the government-industry revolving door to become a member of the board of directors for fracked gas exports giant Cheniere, who nominated her to serve on the board. 

The announcement, made through Cheniere's U.S. Securities and Exchange Commission Form 8-K and its Schedule 14A, comes just as a major class-action lawsuit was filed against the board of the company by stockholders.

In reaction to the lawsuit, Cheniere has delayed its annual meeting. At that meeting, the company's stockholders will vote on the Zichal nomination.

The class-action lawsuit was filed by plaintiff and stockholder James B. Jones, who alleges the board gave stock awards to CEO Charif Souki in defiance of both a stockholders' vote and the company's by-laws. 

Souki — a central character in Gregory Zuckerman's book “The Frackers“ — became the highest paid CEO in the U.S. as a result of the maneuver, raking in $142 million in 2013, $133 million of which came from stock awards.

Cheniere CEO Charif Souki; Photo Credit: Getty Images

Zichal was nominated to join Cheniere's audit committee of the board, and will be paid $180,000 per year for the gig if elected.

Among the audit committee duties: “Prepare and review the audit committee report for inclusion in the proxy statement for the company's annual meeting of stockholders,” which is now set for September 11 after the push-back following the filing of the stockholder class-action lawsuit.

“The audit committee’s responsibility is oversight, and it recognizes that the company’s management is responsible for preparing the company’s financial statements and complying with applicable laws and regulations,” Cheniere's audit committee charter further explains.

Revealed: Former Energy in Depth Spokesman John Krohn Now at U.S. EIA Promoting Fracking

For those familiar with U.S. Energy Information Administration's (EIA) work, objectivity and commitment to fact based on statistics come to mind. Yet as Mark Twain once put it, “There are three kinds of lies: lies, damned lies, and statistics.”

That's where John Krohn comes into play. A former spokesman for the gas industry front group Energy in Depth (EID), Krohn now works on the Core Team for EIA's “Today in Energy!“ 

Krohn has been at EIA since at least January 2014, when his name first appeared on the EIA website. On his Twitter account, he describes himself as an EIA communications manager.

As DeSmog revealed in February 2011, Energy In Depth was launched with a heavy injection of funding from oil and gas industry goliaths such as BP, Halliburton, Chevron, Shell and XTO Energy (now owned by ExxonMobil).

With its public relations efforts conducted by FTI Consulting, EID now serves as a key pro-industry front group promoting unfettered hydraulic fracturing (“fracking”) to the U.S. public.

Krohn follows in the footsteps through the government-industry revolving door of the man President Barack Obama named to head the U.S. Department of Energy (DOE) for his second term, former Massachusetts Institute of Technology “frackademic,” Ernest Moniz. DOE is the parent agency for EIA

Further, EIA Administrator Adam Sieminski, another second-term appointee of President Obama, also passed through the same revolving door as Krohn and Moniz in his pathway to heading EIA. He formerly worked in the world of oil and gas finance. 

Fine Print on Baker Hughes New Fracking Fluid Disclosure Policy Draws Skepticism

Back in 2008, Cathy Behr, a nurse who worked at a Durango, Colorado hospital was hospitalized after suffering a cascade of organ failures. Days earlier, Ms. Behr had treated an oil and gas field worker who arrived in the emergency room doused in a fracking chemical mix called Zeta-Flow, the fumes from which were so powerful that the emergency room had to be evacuated. All told, 130 gallons of the apparently noxious fluid had spilled onto the Southern Ute Indian Reservation, an EPA report later noted, although the spill was never reported to local officials.

So what's in Zeta-Flow? Because the formula for the chemical, marketed as increasing gas production by 30 percent, is considered a trade secret, oilfield services company Weatherford International was never required to make the full answer public.

This secrecy was one of the first issues to be raised by public health officials investigating fracking pollution claims, who pointed out that without knowing what chemicals are used by the industry, it’s difficult or impossible to know what toxins to test for.

So at first blush, it seems like a major development that Baker Hughes, a major oil field services company, has agreed to stop asserting that the ingredients in its fracking fluids are “trade secrets” when it voluntarily provides information on the website FracFocus.

Indeed, the Department of Energy recently lauded the move by Baker Hughes to voluntarily disclose the chemicals used in its fracking formulas without invoking the controversial exemption commonly claimed by drillers. Deputy Assistant Energy Secretary Paula Gant called Baker Hughes' move “an important step in building public confidence,” adding that the department “hopes others will follow their lead.”

But a look at the fine print on that promise — and the company’s track record on disclosures — suggests that Baker Hughes' new policy may not be enough to keep the public adequately informed about the chemicals used in its fracturing fluids.

Gulf Stream: Williams Suspends Bluegrass Gas Export Pipeline, Announces New Export Line

Right before the champagne bottles began popping for activists engaged in a grassroots struggle to halt the construction of Williams Companies' prospective Bluegrass Pipeline project — which the company suspended indefinitely in an April 28 press release — Williams had already begun raining on the parade.

The pipeline industry giant took out the trash on Friday, April 25, announcing its intentions to open a new Louisiana pipeline named Gulf Trace.

Akin to TransCanada's ANR Pipeline recently reported on by DeSmogBlog, Gulf Trace is not entirely “new,” per se. Rather, it's the retooling of a pipeline system already in place, in this case Williams' Transco Pipeline system

The retooling has taken place in the aftermath of Cheniere's Sabine Pass LNG export facility receiving the first ever final gas export permit from the U.S. Federal Energy Regulatory Commission (FERC) during the fracking era.

Williams' Transco Pipeline System; Photo Credit: William Huston

Both ANR and Gulf Trace will feed into Sabine Pass, the Louisiana-based LNG export terminal set to open for business in late 2015Also like ANR, Transco will transform into a gas pipeline flowing in both directions, “bidirectional” in industry lingo.

Bluegrass, if ever built, also would transport fracked gas to the Gulf Coast export markets. But instead of LNG, Bluegrass is a natural gas liquids pipeline (NGL)

“The project…is designed to connect [NGLs] produced in the Marcellus-Utica areas in the U.S. Northeast with domestic and export markets in the U.S. Gulf Coast,” it explained in an April 28 press release announcing the project's suspension. 

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