Eagle Ford Shale

Top Drillers Shut Down U.S. Fracking Operations as Oil Prices Continue to Tank

It was a tumultuous week in the world of hydraulic fracturing (“fracking”) for shale oil and gas, with a few of the biggest companies in the U.S. announcing temporary shutdowns at their drilling operations in various areas until oil prices rise again from the ashes.

Among them: Chesapeake Energy, Continental Resources and Whiting Petroleum. Chesapeake formerly sat as the second most prolific fracker in the U.S. behind ExxonMobil, while Continental has been hailed by many as the “King of the Bakken” shale basin located primarily in North Dakota.

Report: Eagle Ford Shale Has Peaked, Lifting of Oil Export Ban Could Drain Field More Quickly

A new report published by the Post Carbon Institute concludes that Texas' Eagle Ford Shale basin, the most prolific shale oil basin in the U.S., has peaked and may have reached terminal decline status. The Post Carbon report dropped just as Congress is on the verge of lifting the oil export ban for U.S.-produced crude oil, which will only further incentivize drilling and fracking. 

Titled “Eagle Ford Reality Check: The Nation's Top Tight Oil Play After More Than a Year of Low Oil Prices,” the report is the latest in a series of long reports on the overhyped future of oil obtained via hydraulic fracturing (“fracking”) in the U.S. by Post Carbon Institute Fellow David Hughes. Hughes formerly worked for 32 years with the Geological Survey of Canada as a scientist and research manager before coming to Post Carbon.   

TransCanada's Next Move After Keystone XL: Flood Mexico with Fracked Gas with State Department Help

TransCanada, the owner of the recently-nixed northern leg of the Keystone XL tar sands pipeline, has won a bid from Mexico's government to build a 155-mile pipeline carrying gas from hydraulic fracturing (“fracking”) in the United States to Mexico's electricity grid. 

The company has benefited from Mexico's energy sector privatization promoted by the U.S. State Department, the same agency that denied a permit to the U.S.-Canada border-crossing Keystone XL. TransCanada said in a press release that construction on the $500 million line will begin in 2016 and it will be called the Tuxpan-Tula Pipeline. 

Texans Warn EPA Its New Rule to Reduce Methane Pollution Isn’t Tough Enough

On September 23, the U.S. Environmental Protection Agency (EPA) held public hearings in Dallas and Denver on its proposed rule to lower methane and associated pollution from oil and gas industry facilities. A third hearing will take place in Pittsburgh on September 29th.

Once finalized, the standards mandated by the EPA to control methane pollution will be a component of President Obama’s Climate Action Plan for reducing U.S. greenhouse gas emissions.

For Texans, the hearing holds special significance because of HB40, a new law the state passed shortly after Denton, Texas, voted for the state’s first fracking ban. HB40 makes fracking bans illegal and threatens all local ordinances the oil and gas industry doesn't like.

Fracker Aubrey McClendon Signs Deal in Mexico with Firm Led by Former Mexican President

Aubrey McClendon, former CEO of hydraulic fracturing (“fracking”) giant Chesapeake Energy and current CEO of American Energy Partners (AEP), has signed a joint venture with a private equity firm led* by former Mexico president Vicente Fox.* 

In a joint press release, AEP and EIM (Energy and Infrastructure Mexico) Capital announced a “long-term, landmark partnership to explore the vast exploration and development opportunities offered by Mexico's abundant oil and gas energy resources.” The deal serves as another case study of U.S.-based companies cashing in on the Mexico energy sector privatization policy the U.S. State Department helped make possible under both the Obama Administration and the Bush Administration.

New Records Show More US Involvement in Mexico Oil, Gas Privatization Efforts as Mexican Government Says "100%" Its Idea

New records obtained by DeSmog shed further light on the role the U.S. government has played to help implement the privatization of Mexico's oil and gas industry, opening it up to international firms beyond state-owned company PEMEX (Petroleos Mexicanos).

Obtained from both the City of San Antonio, Texas and University of Texas-San Antonio (UTSA), the records center around the U.S.–Mexico Oil and Gas Business Export Conference, held in May in San Antonio and hosted by both the U.S. Department of Trade and Department of Commerce, as well as UTSA.

They reveal the U.S. government acting as a mediator between Mexico's government and U.S. oil and gas companies seeking to cash in on a policy made possible by the behind-the-scenes efforts of then-Secretary of State Hillary Clinton's U.S. State Department. State Department involvement was first revealed here on DeSmog, pointing to emails obtained via Freedom of Information Act and cables made available via Wikileaks.

2014 Year in Review: Photos of All Things Fracking Related

The oil and gas fracking industry continues to change America's physical and political landscape. Falling oil and gas prices have threatened to stall the industry's production growth, but for now, new drill sites continue to spring up. It was a very eventful year for both the industry and its critics. Here is my look back at some of the most notable stories and photographs.

In 2014, The Post Carbon Institute and the University of Texas released reports finding the Energy Information Administration's projections of the fracking boom’s production potential greatly inflated. 

Numerous peer-reviewed studies have been published that hold the fracking industry responsible for water and air contamination. And health studies have connected industry emissions to negative health effects impacting those living near fracking sites.

Despite the fracking industry's continued growth, the anti-fracking movement claimed numerous victories in 2014. The most high profile victories: Denton, Texas voters passed a referendum banning fracking in their city, and New York Governor Andrew Cuomo issued a statewide fracking ban after his health commissioner's report concluded that the health risks are too great.

Meanwhile, America's export policy on liquefied natural gas (LNG) is loosening and the federal government will streamline permits for frack sites on public lands overseen by the Bureau of Land Management (BLM), a unit of the U.S. Department of Interior.

DeSmog Fracking Coverage in 2014

Here are some selected stories covered by DeSmogBlog on the fracking industry in 2014:

Citizens Take Monitoring Into Own Hands as Eagle Ford Shale Boom Continues Undaunted

Flare stack

Hugh Fitzsimons lll, a buffalo rancher on the outskirts of Carrizo Springs, Texas, cautiously watches the fracking industry’s accelerating expansion. His 13,000-acre ranch is atop the southwestern part of the oil-rich Eagle Ford Shale, which stretches from Leon County in northeast Texas to Laredo, along the Mexican border.

During the last two years Fitzsimons has watched the fracking boom transform a rural locale into an industry hub. Desolate dirt roads are now packed with truck traffic, and commercial development to service the growing industry has sprung up along state highways, creating air and noise pollution.

Hugh A. Fitzsimons III

Hugh A. Fitzsimons lll on a dirt road near his ranch in the Eagle Ford Shale. ©2014 Julie Dermansky for Oceans 8 Films

Though Fitzsimons stands to profit from oil extraction, he has not turned a blind eye to the industry’s damaging effects on the environment. He wants to make sure the expanding industry acts responsibly and is doing his part to ensure that happens, a tall order since a state-sponsored report estimates the number of wells could grow from 8,000 to 32,000 by 2018 and industry polices itself for the most part.

Eagle Ford Shale: Breathe at Your Own Risk

Fracking is in full swing in the Eagle Ford Shale region of southern Texas, home to the most productive oil field in the United States.

For Cynthia Dupnik, whose Karnes County home is in the center of the region, life is no longer serene. At night, she says the landscape is frighteningly apocalyptic, marked by the roaring flares spreading pollutants across the sky from oil and gas operations.


Marathon tank battery facility in Hobson, Texas

The first time Dupnik heard about fracking was when Marathon Oil Corporation started drilling near her home. After complaining that she was getting sick, Marathon sent a team to take air samples on her property, but never returned with the test results.

Dupnik is also concerned about a nearby Marathon Challenger tank battery, a facility used in shale production, which almost constantly has a flare emitting toxic fumes into the air only six-tenths of a mile from Dupnik's home. Some nights the flare from the tank battery site is so bright she can see it from her front porch.

On the evening of December 13, Dupnik says the noise coming from the tank battery site was louder than usual and the air smelled like rotten eggs. She experienced a metallic taste in her mouth and had a hard time breathing so she called the Texas Commission on Environmental Quality (TCEQ). No one picked up, so she called the sheriff's office, which sent a deputy over. The deputy told Dupnik the noise and smell were not out of the ordinary, but called the Texas Railroad Commission which assured Dupnik they would let the Texas Commission on Environmental Quality know.

Dupnik had already lodged a complaint about the tanker battery site with the commission in July 2013, and was assured test results were forthcoming. Despite repeated followup, Dupnik says she’s been unable to get any information about the test results.

Keystone XL Fork in the Road: TransCanada's Houston Lateral Pipeline

Only Barack Obama knows the fate of the northern half of TransCanada's Keystone XL tar sands pipeline.  But in the meantime, TransCanada is preparing the southern half of the line to open for commercial operations on January 22.

And there's a fork in that half of the pipeline that's largely flown under the radar: TransCanada's Houston Lateral Pipeline, which serves as a literal fork in the road of the southern half of Keystone XL's route to Gulf Coast refineries.

Rebranded the “Gulf Coast Pipeline” by TransCanada, the 485-mile southern half of Keystone XL brings a blend of Alberta's tar sands crude, along with oil obtained via hydraulic fracturing (“fracking”) from North Dakota's Bakken Shale basin, to refineries in Port Arthur, Texas. This area has been coined a “sacrifice zone” by investigative journalist Ted Genoways, describing the impacts on local communities as the tar sands crude is refined mainly for export markets.

But not all tar sands and fracked oil roads lead to Port Arthur. That's where the Houston Lateral comes into play. A pipeline oriented westward from Liberty County, TX rather than eastward to Port Arthur, Houston Lateral ushers crude oil to Houston's refinery row

“The 48-mile (77-kilometre) Houston Lateral Project is an additional project under development to transport oil to refineries in the Houston, TX marketplace,” TransCanada's website explains. “Upon completion, the Gulf Coast Project and the Houston Lateral Project will become an integrated component of the Keystone Pipeline System.”

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