Shale Gas Industry

Mon, 2013-10-14 05:00Sharon Kelly
Sharon Kelly's picture

Flaws in Environmental Defense Fund's Methane Study Draw Criticism from Scientists

Perhaps the single most consequential and controversial issue at the center of the onshore natural gas drilling boom is the question of methane leaks. Natural gas is primarily made of methane, a powerful greenhouse gas, and if enough escapes into the atmosphere, these leaks could potentially make natural gas a worse fuel for the climate than coal.

In mid-September, researchers from the University of Texas published a study that was hailed by a triumphant oil and gas industry, which claimed it definitively showed that methane leaks from fracking are minimal. Major news outlets largely fed this excitement, proclaiming that the study showed EPA had dramatically overestimated methane leaks from the drilling boom.

But as the celebrations died down and more sober and rigorous analysis of the study has begun, scientists are finding that the University of Texas study is riddled with flaws.

The backers of the report cherry-picked the oil and gas wells included in the study, selecting smaller wells that had less capacity to leak and ones that used leak controls that are not currently used at many of the nation’s wells. The authors systematically ignored more recent federal research indicating that as much as 17 percent of natural gas – more than 10 times the estimate indicated by the UT study – leaks from gas fields, and overlooked serious methodological flaws that were pointed out in similar studies dating back as far as 1996.

As scientists have raised these concerns, the Environmental Defense Fund, one backer of the study which was 90 percent funded by the oil and gas industry, have tried to tamp down some of the media excitement surrounding the result and said that their research was misrepresented.

Fri, 2012-08-03 05:00Steve Horn
Steve Horn's picture

Delaware Tax Haven: The Other Shale Gas Industry Loophole

Most people think of downtown Houston, Texas as ground zero for the oil and gas industry. Houston, after all, serves as home base for corporate headquarters of oil and gas giants, including the likes of BP America, ConocoPhillips, and Shell Oil Company, to name a few.

Comparably speaking, few would think of Wilmington, Delaware in a similar vein. But perhaps they should, according to a recent New York Times investigative report by Leslie Wayne.

Wayne's story revealed that Delaware serves as what journalist Nicholas Shaxson calls a “Treasure Island” in his recent book by that namesake. It's an “onshore tax haven” and an even more robust one than the Caymen Islands, to boot.

The Delaware “Island” is heavily utilized by oil and gas majors, all of which are part of the “two-thirds of the Fortune 500” corporations parking their money in The First State.

Delaware is an outlier in the way it does business,” David Brunori, a professor at George Washington Law School told The Times. “What it offers is an opportunity to game the system and do it legally.”

The numbers are astounding. “Over the last decade, the Delaware loophole has enabled corporations to reduce the taxes paid to other states by an estimated $9.5 billion,” Wayne wrote

“More than 900,000 business entities choose Delaware as a location to incorporate,” explained another report. “The number…exceeds Delaware's human population of 850,000.”

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