Eagle Ford

Fri, 2014-09-05 13:30Justin Mikulka
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Safety of Citizens in Bomb Train Blast Zones in Hands of North Dakota Politicians

Lac Megantic train explosion

When North Dakota Congressman Kevin Cramer was asked recently if it was scientifically possible to make Bakken crude oil safer by stripping out the explosive natural gas liquids with a process like oil stabilization, his response was quite telling.

So scientifically can you do it? Sure, but you have to look at it holistically and consider all of the other elements including economics, and is the benefit of doing something like that does that trump other things like speed of trains, and what kind of cars,” he said.

This is very similar to the comments made by Lynn Helms of the North Dakota Department of Mineral Resources according to the July 29 meeting minutes provided to DeSmogBlog by the Industrial Commission of North Dakota.

In response to a question regarding other mechanisms besides oil conditioning in the field, Mr. Helms stated there are other mechanisms — none of them without a significant downside….It makes sense to do the conditioning in the field. There are other options to do it downstream somewhere in a very large and very expensive operation.”

Thu, 2014-09-04 06:00Sharon Kelly
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Shale Oil Drillers Deliberately Wasted Nearly $1 Billion in Gas, Harming Climate

In Texas and North Dakota, where an oil rush triggered by the development of new fracking methods has taken many towns by storm, drillers have run into a major problem.

While their shale wells extract valuable oil, natural gas also rises from the wells alongside that oil. That gas could be sold for use for electrical power plants or to heat homes, but it is harder to transport from the well to customers than oil. Oil can be shipped via truck, rail or pipe, but the only practical way to ship gas is by pipeline, and new pipelines are expensive, often costing more to construct than the gas itself can be sold for.

So, instead of losing money on pipeline construction, many shale oil drillers have decided to simply burn the gas from their wells off, a process known in the industry as “flaring.”

It's a process so wasteful that it's sparked class action lawsuits from landowners, who say they've lost millions of dollars worth of gas due to flaring. Some of the air emissions from flared wells can also be toxic or carcinogenic. It's also destructive for the climate – natural gas is made primarily of methane, a potent greenhouse gas, and when methane burns, it produces more than half as much CO2 as burning coal.

Much of the research into the climate change impact the nation's fracking rush – now over a decade long – has focused on methane leaks from shale gas wells, where drillers are deliberately aiming to produce natural gas. The climate change impacts of shale oil drilling have drawn less attention from researchers and regulators alike.

Thu, 2014-05-29 11:00Sharon Kelly
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Shale Rush Hits Argentina as Oil Majors Spend Billions on Fracking in Andes Region

While many countries, including France, Germany and South Africa, have banned or delayed their embrace of fracking, one country is taking a full-steam-ahead approach to the unconventional drilling technology: Argentina.

The country is welcoming foreign shale companies with open arms in the hope that oil and gas drilling will help combat one of the world’s highest currency inflation rates. But the government there is also facing violent clashes over fracking in arid regions of the Andes mountains and allegations from locals of water contamination and health problems.

Argentina’s Vaca Muerta shale formation — estimated to hold an amount of oil and gas nearly equal to the reserves of the world’s largest oil company, Exxon Mobil — has already attracted billions in investment from the major oil and gas company Chevron.

In April, the government drew global attention when it announced plans to auction off more acreage. “Chevron, Exxon, Shell have shown interest in Vaca Muerta. They will compete for sure,” Neuquen province Energy Minister Guillermo Coco told potential investors on a road show in Houston on April 30th.

Argentina, which the EIA estimates could hold even more shale gas than the U.S., already has over 150 shale wells in production, more than any country in the world aside from the U.S. and China. California-based Chevron, in partnership with Argentina’s state-owned oil company YPF, invested $1.24 billion in a pilot program last year. Last month, Chevron announced an additional $1.6 billion effort for 2014, part of Chevron's overall investment plan that could top $15 billion. The company is hoping that this plan will allow it to extract 50,000 barrels a day of shale oil plus 100 million cubic feet of shale gas per day from the country’s Andes mountain region.

American drillers have talked up Argentine shale as the next big thing. “Vaca Muerta is going to be an elephant compared to Eagle Ford,” Mark Papa, CEO of EOG Resources told the Argentine press in 2012, referring to a major oil-producing shale formation in Texas.

Mon, 2014-05-26 14:05Justin Mikulka
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Should CEOs Get Jail Time For Oil-By-Rail Accidents Like Lac Megantic?

Lac Megantic train explosion

On May 12th, a heavily armed SWAT unit stormed the home of Thomas Harding and threw Harding, his son and a visitor to the ground. Harding was then handcuffed, arrested and taken for interrogation.

Harding was the engineer for the oil train that caused the explosion in Lac-Megantic, Quebec. He had cooperated with authorities and was expecting to be charged. The excessive force used to arrest Harding was criticized for being a “politically motivated stunt” in The National Post.

No one is claiming that Harding intentionally caused the accident — however, he is the one facing charges that could result in life in prison.

Meanwhile, the oil industry has knowingly shipped explosive Bakken crude oil and, in the case of Lac-Megantic, misclassified the oil to make it appear less explosive than it actually was.

Irving Oil has been identified by Canada's Transportation Safety Board as the party ultimately responsible for insuring the proper classification of the oil it had purchased. No one from Irving Oil has been charged with any crime.

Mon, 2014-05-12 10:21Ben Jervey and Steve Horn
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"No Turning Back:" Mexico's Looming Fracking and Offshore Oil and Gas Bonanza

After generations of state control, Mexico’s vast oil and gas reserves will soon open for business to the international market.

In December 2013, Mexico’s Congress voted to break up the longstanding monopoly held by the state-owned oil giant Petroleos Mexicanos — commonly called Pemex — and to open the nation’s oil and gas reserves to foreign companies.

The constitutional reforms appear likely to kickstart a historic hydraulic fracturing (“fracking”) and deepwater offshore oil and gas drilling bonanza off the Gulf of Mexico.

“This reform marks a major breakthrough in Mexico’s economic history only comparable to the signing of the North America Free Trade Agreement (NAFTA) in 1992,” international investing and banking giant Banco Bilbao Vizcaya Argentaria (BBVAwrote in a January 2014 economic analysis.

What does this mean for the oil and gas industry in Mexico? And for the workers and those who live above these oil and gas plays or along the pipeline routes that will funnel the liquids to refineries? And how about for the Earth’s atmosphere?

Can Mexico’s fossil fuel infrastructure handle the boom? Can the country spare the precious freshwater supplies needed for thirsty fracking operations in an era of increasingly severe droughts and drinking water shortages? Can environmental, safety and public health regulations possibly keep up with this industrial boom?

DeSmogBlog will examine all these issues and more as Mexico opens its fossil fuel reserves to international exploitation in the weeks and months ahead. But, first, an overview of the state of play in Mexico’s energy reforms.

Thu, 2014-01-30 10:44Julie Dermansky
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Nordheim: A Texas Town Facing A Toxic Future

Nordheim, Texas, population 307, may soon have a 200-plus acre waste disposal plant as its neighbor despite the protests of the city’s mayor, Kathy Payne.

The small town (one bank, one school, one cafe and a couple of shops) is located in the Eagle Ford Shale region of southern Texas, where vast oil deposits have only recently become accessible through hydraulic fracturing — a process that involves injecting a mixture of water, sand and chemicals at high pressure underground to fracture the rocks and release the oil inside.


Nordheim Mayor Kathy Payne in City Hall. ©2014 Julie Dermansky

Payne learned about the waste disposal plant in the local paper. Because the facility is planned for outside city limits, industry doesn’t have to share its plans with her.

Since reading about the proposal she has done all she can to learn what it will mean for her city with the assistance of Louisiana-based environmental scientist Wilma Subra, who investigates industry hot spots to help citizens make informed decisions about developments coming their way.

The waste disposal site proposed by San Antonio-based Pyote Reclamation Service will be a quarter of a mile outside of Nordheim if it’s granted a permit by the Texas Railroad Commission, the regulatory agency for all things gas and oil in Texas. The facility would have eight pits up to 25 feet deep and span an area almost as big as the town itself. Pyote also has plans to install another facility 3.5 miles away. 

Thu, 2013-11-07 09:00Sharon Kelly
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Could California's Shale Oil Boom Be Just a Mirage?

Since the shale rush took off starting in 2005 in Texas, drillers have sprinted from one state to the next, chasing the promise of cheaper, easier, more productive wells. This land rush was fueled by a wild spike in natural gas prices that helped make shale gas drilling attractive even though the costs of fracking were high.

As the selling price of natural gas sank from its historic highs in 2008, much of the luster wore off entire regions that had initially captivated investors, like Louisiana’s Haynesville shale or Arkansas’s Fayetteville, now in decline.

But unlike natural gas prices, oil prices remain high to this day, and investors and policymakers alike remain dazzled by the heady promise of oil from shale rock. Oil and gas companies have wrung significant amounts of black gold from shale oil plays like Texas’s Eagle Ford and North Dakota’s Bakken.

Shale oil, they say, is the next big thing.

“After years of talking about it, we’re finally poised to control our own energy future,” President Obama said in his most recent State of the Union address. “We produce more oil at home than we have in 15 years.”

But once again, the reality may be nothing like the hype. Consider California.

Mon, 2013-09-23 20:01Farron Cousins
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Regulatory Negligence Endangers Texas Citizens As Eagle Ford Fracking Impacts Soar

There’s no denying that Texas is the state that dirty energy built.  It remains the single largest source of domestically produced oil in the United States, and currently has more fracking wells than any other state.  With an abundant supply of dirty energy money, the state government of Texas is completely owned by the dirty energy industry.

This trifecta of industry domination is playing itself out in southern Texas, in what has become a no man's land for federal regulators.

According to a new report by Earthworks, energy companies drilling in the Eagle Ford Shale basin are wreaking havoc on both the environment and the people, and federal regulators have essentially abandoned the area.  This exodus of oversight has led to an increase in environmental abuses by the dirty energy industry.

But it wasn’t always this way in Texas.  According to Earthworks, regulators have been present in the area, and even carried out some needed investigations into the damage caused by drillers.  

But what the regulators found was so horrible that they had to evacuate themselves, and that was the last that residents in the area heard from them.

Mon, 2013-04-29 11:44Sharon Kelly
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Faster Drilling, Diminishing Returns in Shale Plays Nationwide?

Today's shale gas boom has brought a surge of drilling across the US, driving natural gas prices to historic lows over the past couple of years. But, according to David Hughes, geoscientist and fellow at the Post Carbon Institute, in the future, we can expect at least the same frenzied rate of drilling – but less and less oil and gas from each well on average.
 
“It’s been a game changer,” Mr. Hughes said of the shale gas boom at a talk last week in Maryland, “but I would say a temporary game changer.”
 
After crunching data from hundreds of thousands of oil and gas wells across the U.S., Mr. Hughes found that just five of the country's 30 best shale plays have been responsible for 80 percent of domestic shale gas production: the Haynesville shale in Louisiana; the Barnett shale in Texas's Fort Worth region; the Marcellus shale, which underlies New York, Pennsylvania, and parts of Maryland and West Virginia; the Fayetteville shale in Arkansas; and Oklahoma's Woodford shale. When it comes to natural gas, all of the other plays pale in comparison to these five regions.
 
But the data reveals that in four of these top five shale-gas plays, drillers have been less and less successful in hitting the next big strike-it-rich well. Average well productivity in four of the five best American shale plays has been falling since 2010, Hughes found. The exception, at least for now, is the Marcellus.
 
Tue, 2012-04-03 05:59Laurel Whitney
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The Farce Of The "Golden Age Of Gas"

Oil and gas industry insiders revealed earlier this year the high probability that we're headed into a shale gas bubble. But that's not what the industry's CEOs and PR departments want you to hear.

“The reality of at least 100 years’ worth of shale gas abundance has been supported by virtually every credible third-party expert…The collective market cap of these energy leaders approaches $2 trillion – ask yourself: do I believe Rolling Stone and Arthur Berman or the world’s biggest and most successful energy companies?”

So spouts off Chesapeake Energy in a press release earlier this month responding to a Rolling Stone article which likened fracking to a huge industry Ponzi scheme. Arthur Berman is an energy consultant based in Houston, and not swayed by the industry's vibrant plumage they are putting on display to the nation.

The energy companies want the public to believe in the “Golden Age of Gas”- as it has been dubbed- where the supplies are bountiful and the profits are high. While it's true that there have been economic booms in some areas that have gas reserves, the numbers are showing that these booms will not be long lived. Meanwhile, the falling price of gas along with the inherent public health risks and environmental devastation that comes along with it makes the gas rush less profitable in the long run. But the gas industry wouldn't have you believe that.

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