unconventional oil

Wed, 2014-04-30 21:55Steve Horn
Steve Horn's picture

Explosive Virginia Train Carried Fracked Bakken Oil, Headed to Potential Export Facility

Platts confirmed CSX Corporation's train that exploded in Lynchburg, Virginia was carrying sweet crude obtained via hydraulic fracturing (“fracking”) in North Dakota's Bakken Shale basin. CSX CEO Michael Ward has also confirmed this to Bloomberg.

“Trade sources said the train was carrying Bakken crude from North Dakota and was headed to Plains All American's terminal in Yorktown,” Platts explained. “The Yorktown facility can unload 130,000 b/d of crude and is located on the site of Plains oil product terminal.”

In January, the U.S. Department of Transportation's Pipeline and Hazardous Materials Safety Administration issued a Safety Alert concluding Bakken crude is more flammable than heavier oils. Hence the term “bomb trains.”

At least 50,000 gallons of the oil headed to Yorktown is now missing, according to ABC 13 in Lynchburg. Some of it has spilled into the James River, as previously reported on DeSmogBlog.

A map available on CSX's website displaying the routes for its crude-by-rail trains offers a clear indication of where the train was headed.


Map Credit: CSX Corporation

Formerly a refinery owned by Standard Oil and then BP/Amoco, Plains All American has turned the Yorktown refinery into a mega holding facility. 

Yorktown may become a key future site for crude oil exports if the ban on exports of oil produced domestically in the U.S. is lifted. 

Tue, 2014-04-01 23:16Steve Horn
Steve Horn's picture

"Our Energy Moment": The Blue Engine Behind Fracked Gas Exports PR Blitz

Behind nearly every major corporate policy push there's an accompanying well-coordinated public relations and propaganda campaign. As it turns out, the oil and gas industry's push to export liquefied natural gas (LNG) obtained via hydraulic fracturing (“fracking”) plays the same game.

And so on February 5, “Our Energy Moment” was born. The PR blitz is described in a press release announcing the launch as a “new coalition dedicated to raising awareness and celebrating the many benefits of expanded markets for liquefied natural gas.”

Its member list includes industry heavy hitters such as Cheniere Energy, Sempra Energy, Louisiana Oil and Gas Association and Freeport LNG.

Since its launch, “Our Energy Moment” has disseminated press releases about the U.S. Department of Energy's (DOE) conditional approval of Jordan Cove LNG export facility in Coos Bay, Oregon and its conditional approval of Cameron LNG export facility in Hackberry, Louisiana.  

So the industry is funding a PR campaign clearly in its self interest. But so what? You have to read all the way to the bottom of the press releases to find what's perhaps the most interesting tidbit. 

At the very bottom of “Our Energy Moment's” releases, a contact person named Tiffany Edwards is listed with an email address ending in @blueenginemedia.com. If you visit blueenginemedia.com you'll find the website for PR and advertising firm Blue Engine Message & Media

Further, a domain name search for ourenergymoment.org reveals the website was registered by another PR and web development firm called Liberty Concepts by its founder and president Jonathan Karush. Karush registered the site on May 8, 2013, a full ten months before the campaign's official launch date. 

Who are these firms and why do they matter? That's where the fun begins.

Wed, 2014-03-26 11:54Steve Horn
Steve Horn's picture

Admiral Dennis Blair: "We Sent Troops to Middle East...Because of Oil-Based Importance of Region"

At the just-completed U.S. House Committee on Foreign Affairs hearing titled, “The Geopolitical Potential of the U.S. Energy Boom,” Admiral Dennis Blair — former Director of National Intelligence, President and CEO of Institute for Defense Analyses and Commander in Chief of U.S. Pacific Command — admitted what's still considered conspiratorial to some.

Put tersely: the U.S. and allied forces launched the ongoing occupation in Iraq and occupy large swaths of the Middle East to secure the flow of oil to the U.S. and its global allies, explained Blair. 

Blair began his analysis lasting just over a minute after a line of questioning (beginning at 1:02:56 in the video below) coming from U.S. Rep. Jeff Duncan (R-SC) about TransCanada's Keystone XL tar sands pipeline, “energy as an instrument of geopolitical power” and geopolitical tensions in Venezuela. 

Mon, 2014-03-17 13:39Steve Horn
Steve Horn's picture

Why ExxonMobil's Partnerships With Russia's Rosneft Challenge the Narrative of U.S. Exports As Energy Weapon

In a long-awaited moment in a hotly contested zone currently occupied by the Russian military, Ukraine's citizens living in the peninsula of Crimea voted overwhelmingly to become part of Russia.

Responding to the referendum, President Barack Obama and numerous U.S. officials rejected the results out of hand and the Obama Administration has confirmed he will authorize economic sanctions against high-ranking Russian officials.

“As I told President Putin yesterday, the referendum in Crimea was a clear violation of Ukrainian constitutions and international law and it will not be recognized by the international community,” Obama said in a press briefing. “Today I am announcing a series of measures that will continue to increase the cost on Russia and those responsible for what is happening in Ukraine.” 

But even before the vote and issuing of sanctions, numerous key U.S. officials hyped the need to expedite U.S. oil and gas exports to fend off Europe's reliance on importing Russia's gas bounty. In short, gas obtained via hydraulic fracturing (“fracking”) is increasingly seen as a “geopolitical tool” for U.S. power-brokers, as The New York Times explained. 

Perhaps responding to the repeated calls to use gas as a “diplomatic tool,” the U.S. Department of Energy (DOE) recently announced it will sell 5 million barrels of oil from the seldom-tapped Strategic Petroleum Reserve. Both the White House and DOE deny the decision had anything to do with the situation in Ukraine.

Yet even as some say we are witnessing the beginning of a “new cold war,” few have discussed the ties binding major U.S. oil and gas companies with Russian state oil and gas companies.

The ties that bind, as well as other real logistical and economic issues complicate the narrative of exports as an “energy weapon.”

Mon, 2014-03-10 06:00Steve Horn
Steve Horn's picture

Testimony Reveals Record 36% of North Dakota Fracked Gas Was Flared in December

The recent March 6 House Energy & Commerce Subcommittee on Energy and Power hearing titled “Benefits of and Challenges to Energy Access in the 21st Century: Fuel Supply and Infrastructure” never had over 100 online viewers watching the livestream at any point in time. And it unfolded in an essentially empty room. 

But the poor attendance record had no relation to the gravity of the facts presented by testifiers. Among other things, one presenter revealed 36 percent of the gas by-product from oil obtained via hydraulic fracturing (“fracking”) in North Dakota's Bakken Shale basin was flared off as waste during a brutally cold midwest winter with no end in sight.

These damning facts were brought forward by Coalition for Environmentally Responsible Economies (Ceres) Oil & Gas and Insurance Programs Director Andrew Logan, one of eight people called to testify around topics ranging from domestic propane markets to fossil fuels-by-rail markets, to pipeline markets and flaring. 

A topic covered previously by DeSmogBlog, Logan submitted to the Subcommittee that flaring “is getting worse, not better.”

“Flaring in North Dakota hit 36% in December, a new record,” Logan told the subcommittee“This means that more than 1/3 of all natural gas produced in the state is going up in smoke, at the same time as consumers around the country are seeing price spikes from natural gas in this cold winter, along with actual shortages of propane in many places.”

Logan also said that wasteful flaring is also a growing quagmire in Texas, which has seen a 10-fold increase in flaring permits since 2010.

At least one influential Subcommittee member has taken notice.

Wed, 2014-02-12 05:00Steve Horn
Steve Horn's picture

Documents Reveal Calvert County Signed Non-Disclosure Agreement with Company Proposing Cove Point LNG Terminal

Co-authored by Steve Horn and Caroline Selle

DeSmogBlog has obtained documents revealing that the government of Calvert County, MD, signed a non-disclosure agreement on August 21, 2012, with Dominion Resources — the company proposing the Cove Point Liquefied Natural Gas (LNG) export terminal in Lusby, MD.  The documents have raised concerns about transparency between the local government and its citizens.

The proposal would send gas obtained via hydraulic fracturing (“fracking”) from the Marcellus Shale basin to the global market. The export terminal is opposed by the Chesapeake Climate Action Network, Maryland Sierra Club and a number of other local environment and community groups.

The Accokeek Mattawoman Piscataway Creeks Council (AMP Council), an environmental group based in Accokeek, MD, obtained the documents under Maryland's Public Information Act and provided them to DeSmogBlog.

Cornell University’s Law School explains a non-disclosure agreement is a “legally binding contract in which a person or business promises to treat specific information as a trade secret and not disclose it to others without proper authorization.”

Upon learning about the agreement, Fred Tutman, CEO of Patuxent Riverkeeper — a group opposed to the LNG project — told DeSmogBlog he believes Calvert County officials are working “in partnership with Dominion to the detriment of citizen transparency.”

We’re unhappy that it does seem to protect Dominion's interest rather than the public interest,” Tutman said. “The secrecy surrounding this deal has made it virtually impossible for anyone exterior to those deals, like citizens, to evaluate whether these are good transactions or bad transactions on their behalf.”

Wed, 2014-02-05 10:00Steve Horn
Steve Horn's picture

Keystone XL's Northern Leg: A Fracked Oil Pipeline Along with Tar Sands

On January 31, President Barack Obama's U.S. State Department released its Final Environmental Impact Statement (FEIS) for the northern leg of TransCanada's proposed Keystone XL tar sands pipeline.

The State Department's FEIS argues that the northern half of Keystone XL, if built, “remains unlikely to significantly impact the rate of extraction in the oil sands, or the continued demand for heavy crude oil at refineries in the United States.”

But flying under the media's radar so far, the State Department review also highlights the prospect that Keystone XL will not only carry tar sands, but also be tapped to carry up to 100,000 barrels per day of oil extracted via hydraulic fracturing (“fracking”) from North Dakota's Bakken Shale basin.

“[Keystone XL] would have the capacity to deliver up to 830,000 bpd, of which 730,000 bpd of capacity has been set aside for [tar sands] and the remaining 100,000 bpd of capacity set aside for [Bakken] crude oil,” the report details.

“[TransCanada] has represented that it has firm commitments to transport approximately 555,000 bpd of [tar sands], as well as 65,000 bpd of crude oil from the Bakken.”

A smaller proposed project owned by TransCanada called the Bakken MarketLink pipeline and incorporated as Keystone Marketlink LLC in February 2011, would ship the fracked oil to Keystone XL's northern leg as an “on ramp.” 

“This project would include a 5-mile pipeline, pumps, meters, and storage tanks to supply Bakken crude oil to the proposed pipeline,” explains the FEIS.

Fri, 2014-01-24 16:00Steve Horn
Steve Horn's picture

Citing DeSmogBlog Series, "FrackNation" Screening Cancelled by MN Film Festival

FrackNation,” the documentary film about hydraulic fracturing (“fracking”) with close conservative movement ties, recently had its showing cancelled at Winona, Minnesota's annual Frozen River Film Festival (FRFF).

Citing DeSmogBlog's two-part investigative series published in May 2013 on “FrackNation,” FRFF Director Mike Kennedy told the Winona Post his rationale for cancelling the film is that it was, “pretty apparent they were paid to make these movies to counter Gasland [Part II].”

“DeSmogBlog.com appears to be the main source of allegations that 'FrackNation' was industry-funded,” wrote the Post. “DeSmogBlog claims connections between [film Co-Director Phelim] McAleer and conservative groups, industry groups help[ing] promote the film after its was made, and the fact that McAleer directed an industry-funded documentary in the past, as proof that 'FrackNation' is cut from the same cloth.”

The cancellation has caused a major kerfuffle in conservative media circles, covered by outlets ranging from Fox News, Fox BusinessThe Blaze TVTown Hall, Watchdog.orgHot Air and others. McAleer was a featured guest on “Fox and Friends” on January 23. 

Mon, 2014-01-13 15:40Guest
Guest's picture

Range Resources Spokesman Matt Pitzarella Misrepresented Education Credentials, Never Received Business Ethics Degree

This is a guest post by Amanda Gillooly, originally published on Marcellus Monitor.

Range Resources Director of Corporate Communications Matt Pitzarella has long listed a master of science degree in leadership and business ethics from Duquesne University as one of his educational accomplishments – one he claimed to have earned in 2005. That degree is listed under his educational experience on his Linkedin profile.

In a profile piece that appeared on the website for the Cal Times (the student publication of the California University of Pennsylvania, where he earned his undergraduate degree),  contributing editor Casey Flores wrote:

Matt is a genuine success story. After graduating from Cal U with a major in public relations and minor in marketing, Matt went on to work his way up through the education and corporate world with a master’s degree in leadership and business ethics from Duquesne University. He attributes much of his success, however, to the internships he completed during his time at Cal U.

He also lists the degree on yatedo.com here.

However, an investigation into his education reveals that Pitzarella never earned a degree through Duquesne University in Pittsburgh.

Marcellus Monitor received this email from the university’s Director of Communications, Tammy Ewin in response to our inquiry into Pitzarella’s degree:

Matt Pitzarella does not have a degree from Duquesne University. He attended from the spring of 2004 through fall 2004 in the master of science in leadership and business ethics program.
Thu, 2014-01-02 10:54Steve Horn
Steve Horn's picture

Warren Buffett Bought Stake in Pipeline Company on Same Day as North Dakota Oil Train Explosion

On December 30, the same day a Burlington Northern Sante Fe (BNSF) oil train derailed and exploded in Casselton, North Dakota, Warren Buffett — owner of holding company giant Berkshire Hathaway, which owns BNSF — bought a major stake in pipeline logistics company Phillips Specialty Products Inc.

Owned by Phillips 66, a subsidiary of ConocoPhillips, Phillips Specialty Products' claim to fame is lubricating oil's movement through pipelines, increasingly crucial for the industry to move both tar sands crude and oil obtained via hydraulic fracturing (“fracking”) in an efficient manner.

“Phillips Specialty Products Inc…is the global leader in the science of drag reduction and specializes in maximizing the flow potential of pipelines,” explains its website.

Buffett — the second richest man in the world — sees the flow lubricant business as a lucrative niche one, increasingly so given the explosion of North American tar sands pipelines and fracked oil pipelines.

“I have long been impressed by the strength of the Phillips 66 business portfolio,” he said of the deal in a press release. “The flow improver business is a high-quality business with consistently strong financial performance, and it will fit well within Berkshire Hathaway.”

Pages

Subscribe to unconventional oil