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.

Wed, 2014-05-28 15:39Justin Mikulka
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Interactive Map and Report on Oil-By-Rail, "Booming Bomb Train Industry"

A new report and website released today by Oil Change International provides a comprehensive overview of the current oil-by-rail industry in North America and it isn’t a pretty picture.

The report and interactive map of the “booming bomb train industry” capture the alarming scope of this very recent development.  As the report points out, 70 times as much oil was moved by rail in 2014 as there was in 2005. That rapid expansion is continuing, placing more North American communities at risk.  

This analysis shows just how out of control the oil industry is in North America today. Regulators are unable to keep up with the industry’s expansion-at-any-cost mentality, and public safety is playing second fiddle to industry profits,” said Lorne Stockman, Research Director of Oil Change International and author of the report.

According to the report, Runaway Train: The Reckless Expansion of Crude By Rail in North America, approximately one million barrels of oil per day are moved on 135 trains of 100 cars or more each day in America.  If all of the currently planned development of oil-by-rail facilities occurs, the full capacity to move oil would be five times that amount.  

This is what the All of the Above Energy Strategy looks like – a runaway train headed straight for North American communities,” Stockman said.

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This massive investment by the oil and rail industries to expand their capacity to move oil by rail is one of the main reasons that improving oil-by-rail safety is unlikely when it comes to the unsafe DOT-111 tank cars.  These cars currently make up approximately 70% of the oil-by-rail tank car fleet and there is currently a two to three year waiting list for companies wanting new tank cars.  

Wed, 2014-05-28 05:00Sharon Kelly
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Exclusive: Leaked EPA Draft Fracking Wastewater Guidance Suggests Closer Scrutiny for Treatment Plants

One of the most intractable problems related to fracking is that each well drilled creates millions of gallons of radioactive and toxic wastewater.

For the past several years, the Environmental Protection Agency has faced enormous public pressure to ensure this dangerous waste stops ending up dumped in rivers or causing contamination in other ways.

But the drilling boom has proceeded at such an accelerated pace in the United States that regulators have struggled to keep up, to control or even track where the oil and gas industry is disposing of this radioactive waste. As a consequence, hundreds of millions of gallons of partially treated waste have ended up in the rivers from which millions of Americans get their drinking water. 

An internal draft EPA document leaked to DeSmog gives a small window into how, after a full decade since the start of the drilling boom, the agency is responding.

The document, dated March 7, 2014, is titled “National Pollutant Discharge Elimination System Permitting and Pretreatment for Shale Gas Extraction Wastewaters: Frequently Asked Questions.”

It's revealing for what it shows about how EPA staff are taking the hazards of fracking wastewater more seriously — and also how little things have changed.

“In general, the EPA memo does a good job of making clear that fracking wastewater discharges are covered under the Clean Water Act, and that proper discharge permitting is required, including setting limits to protect water quality standards and to comply with technology based standards in the Clean Water Act,” explained Clean Water Action attorney Myron Arnowitt, who was asked by DeSmog to review the document. “It is mostly an increased level of detail for regional EPA staff regarding permitting issues under the Clean Water Act, compared to the pervious memo in 2011.”

The document, intended as a guide for local regulators on how the Clean Water Act should be interpreted and applied, is impressive in many ways.

Wed, 2014-05-28 00:06Guest
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Mounting Global Warming Evidence Underscores the Need to Act

This is a guest post by David Suzuki.

Because we enjoy relatively pure air, clean water and healthy food systems, Canadians sometimes take the environment for granted. Many scarcely blink if oil from a pipeline spills into a river, a forest is cleared for tar sands operations or agricultural land is fracked for gas. If Arctic ice melts and part of the Antarctic ice sheet collapses, well… they’re far away.

Some see climate change as a distant threat, if they see it as a threat at all. But the scientific evidence is overwhelming: climate change is here, and unless we curb behaviours that contribute to it, it will get worse, putting our food, air, water and security at risk. A recent White House report confirms the findings of this year’s Intergovernmental Panel on Climate Change Fifth Assessment report, and concludes global warming is a clear and present danger to the U.S.

Climate change is not a distant threat, but is affecting the American people already,” says White House science adviser John Holdren in a video about the report. “Summers are longer and hotter, with longer periods of extended heat. Wildfires start earlier in the spring and continue later into the fall. Rain comes down in heavier downpours. People are experiencing changes in the length and severity of allergies. And climate disruptions to water resources and agriculture have been increasing.”

Recognizing the problem’s severity is a start, but whether the U.S. will actually do anything is another question. Action to curb climate change is constantly stalled — thanks to the powerful fossil fuel industry, political and media denial, extensive fossil fuel-based infrastructure and citizen complacency.

Tue, 2014-05-27 14:26Sharon Kelly
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“All of the Above” or “Action now?”: Obama’s Natural Gas Contradiction

At a talk in Vermont last week, the nation's top energy official offered up his thoughts on a problem the White House has said calls for “urgent action”: climate change.

“We need to mitigate the effects of climate change and need to adapt at the same time,” said Dr. Ernest Moniz, Secretary of Energy, as he described the findings of a White House report issued earlier this month outlining the dangers of global warming and the impacts already felt nationwide.

But Moniz's talk also highlighted a fundamental flaw in the approach that President Obama has taken to energy and the environment.

The president has begun sounding alarm bells about the hazards and costs of worsening climate disruption. At the same time, he has aggressively promoted the nation's ongoing shale gas rush. And yet, experts warn this drilling frenzy may have wiped out most of the gains made by slashing carbon dioxide emissions from burning coal.

It's a paradox that the Washington Post labeled “a jarring juxtapostion” and “the contradiction at the heart of President Obama's climate change policy.” 

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