Houston Chronicle

VIDEO: Young Iowan Questions Rick Perry on Fracked Oil Pipeline Ties at Town Hall Meeting

By David Goodner

When 24-year old Iowa native Kevin Rutledge first heard that former Texas governor and potential Republican Party presidential candidate Rick Perry had been appointed to the Board of Directors of Energy Transfer Partners, which is attempting to build a pipeline carrying oil obtained via hydraulic fracturing (“fracking”) from North Dakota’s Bakken Shale through his home state, he was hopping mad.

So on February 16, Rutledge decided to drive three hours from Des Moines to Sioux City, Iowa and ask Rick Perry face-to-face about his ties to the company during a town hall meeting at Morningside College.

Rutledge is from Ottumwa, Iowa and the proposed route of a new Dakota Access crude oil pipeline would cut right through the heart of the southeast Iowa county where he grew up, potentially impacting his home community with oil spills, polluted waterways, and damaged farmland.

Iowans and Americans are tired of not being listened to because we don’t have millions of dollars to influence politicians,” Rutledge told DeSmogBlog. “I heard about ties between Rick Perry, Iowa Governor [Terry] Branstad, and the Bakken oil pipeline and immediately knew this was an opportunity for me to ask him a question about it and bring this issue into light.”

State Department's Keystone XL Contractor ERM Approved Project Now Melting Glaciers

A controversial government contractor once again finds itself in hot water, or in this case, melting glacier water.

TransCanada chose Environmental Resources Management Group (ERM) as one of its contractors to conduct the environmental impact statement for Keystone XL on behalf of the U.S. State Department. ERM Group also happens to have green-lighted a gold mining project in central Asia that is now melting glaciers.

ERM Group has a penchant for rubber-stamping projects that have had tragic environmental and public health legacies. For example, ERM formerly worked on behalf of the tobacco industry to pitch the safety of its deadly product.

A January 2014 study about Keystone XL's climate change impacts published in the journal Nature Climate Change paints a drastically different picture than ERM Group's Keystone XL tar sands study.

The Kumtor Gold Mineowned by Centerra Gold/Cameco Corporation, was provided a stamp of approval from ERM Group in October 2012. Similar to the TransCanada arrangement with the State Department on Keystone XL, Centerra served as the funder of the report evaluating its own project. 

ERM Group Melting Glaciers

“The mine sits at an altitude of 4,000 meters above sea level, in the Tien Shan mountain range and among some of Kyrgyzstan's - and the region's - most important glaciers,” explained an October 28 story published in Asia Times.

“Centerra Gold has consistently dismissed as untrue that operations at Kumtor have had negative implications for the glaciers, which are reportedly melting with observable speed due to years of dumping rock tailings onto the ice sheet. The Canadian company has backed its position with expert evaluations from consultancies such as Environmental Resources Management.” 

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.” 

Fracking Boom Has Had Devastating Consequences For Motorists

A joint investigation by the Houston Chronicle and Houston Public Media shines a light on one of the fracking boom's lesser known impacts: traffic deaths.

With several shale fields in play—including Eagle Ford and Permian Basin, which together are pumping out over 3.2 million barrels per day—Texas has contributed heavily to the fracked oil boom. Apparently, motorists have paid a heavy price for that oil.

Since the state's fracking boom began in 2008, Texas has bucked the national trend and seen its traffic fatality numbers going up, leading the country in motor vehicle deaths every year.

The police don't note in accident reports whether or not a particular vehicle involved in a crash belonged to an oil company or who the driver at fault worked for, so it's nearly impossible to actually quantify the oil industry's responsibility for traffic deaths.

But the joint investigation finds that the shocking 51% increase in accidents involving commercial vehicles correlates closely to counties where fracking operations are concentrated:

Oil Sands Fact Check: New API Front Group

How do you sell a rotten bag of goods? Rule number one of effective propaganda: repackage it into something seemingly less grotesque.

In that spirit, the Houston Chronicle recently reported the American Petroleum Institute (API) has created yet another front group, this one to promote tar sands crude, one of the dirtiest sources of fuel in the world, as a safe and secure energy resource.

It's name? “Oil Sands Fact Check” (OSFC).

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