The New York Times

Mon, 2013-10-07 18:01Steve Horn
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Frank Giustra, President Bill Clinton's Close Colleague, Joins US Oil Sands Board

Frank Giustra - key power broker and close colleague of former President Bill Clinton - has taken a seat on the Board of Directors of U.S. Oil Sands, an Alberta-based company aiming to develop tar sands deposits in Utah's Uintah Basin. **UPDATE: Although he was named a prospective appointee to the Board, Mr. Giustra ultimately declined the position, citing “other commitments.”**

U.S. Oil Sands - in naming several new members to its Board - also announced it has received $80 million in “strategic financing” from Blue Pacific Investments Group Ltd., Anchorage Capital Group, L.L.C. and Spitfire Ventures, LLC.

The funding will help get the ball rolling on “tar sands south,” a miniature but increasingly controversial version of its big brother to the north, the Alberta tar sands. Giustra will likely help in opening the right doors for tar sands industry interests in the United States. 

Giusta is best known for his work in the worlds of uranium mining and minerals mining, though he has dabbled in the Alberta tar sands finance world once before, lending upwards of $20 million in capital to Excelsior Energy. He serves as CEO and President of Fiore Financial Corporation. 

Founder and Director of the Radcliffe Foundation and Co-Director of the Clinton Giustra Enterprise Partnership (formerly known as the Clinton Giustra Sustainable Growth Initiative), Frank Giustra has maintained close ties with Bill Clinton since 2005.

The Clinton Giustra Sustainable Growth Initiative is an arm of the Bill, Hillary, and Chelsea Clinton Foundation (the Clinton Foundation). Giustra sits on the Clinton Foundation's Board of Trustees.

Sun, 2013-10-06 21:16Steve Horn
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NY Times' Joe Nocera Overlooks Key Flaws in EDF Fracking Climate Change Study

Yesterday, New York Times' columnist Joe Nocera weighed in on the study by Environmental Defense Fund (EDF) and University of Texas-Austin (UT-Austin) on the climate change impacts of hydraulic fracturing (“fracking”)DeSmogBlog got a special mention in Nocera's op-ed titled, “A Fracking Rorschach Test.” 

Nocera praised UT-Austin Professor David Allen and colleagues for obtaining what he claimed was “unassailable data” on fugitive methane emissions and fracking's climate change impact potential. 

“The reason the Environmental Defense Fund wanted this study done is precisely so that unassailable data, rather than mere estimates, could become part of the debate over fracking,” wrote Nocera. “You can’t have sound regulation without good data.”

Missing from Nocera's praise: new findings by the Intergovernment Panel on Climate Change in their latest comprehensive review of the climate crisis.

IPCC revealed “over a 20-year time frame, methane has a global warming potential 86 [times the amount of] CO2, up from its previous estimate of 72 [times],” as explained by Climate Progress' Joe Romm.

In juxtaposition, Nocera dismissed DeSmog's criticisms of the study - one we referred to as “frackademia.” 

Simplifying the crux of my 3,000-word DeSmog critique and the 800-word follow-up as “because the nine companies involved had both cooperated and helped pay for it,” Nocera then rhetorically asks “why a study that necessitated industry cooperation and money is inherently less valid than a study produced by scientists who are openly opposed to fracking was left unanswered.”

Tue, 2012-12-04 14:41Steve Horn
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ALEC, CSG, ExxonMobil Fracking Fluid "Disclosure" Model Bill Failing By Design

Last year, a hydraulic fracturing (“fracking”) chemical fluid disclosure “model bill” was passed by both the Council of State Governments (CSG) and the American Legislative Exchange Council (ALEC). It proceeded to pass in multiple states across the country soon thereafter, but as Bloomberg recently reported, the bill has been an abject failure with regards to “disclosure.”

That was by design, thanks to the bill's chief author, ExxonMobil

Originating as a Texas bill with disclosure standards drawn up under the auspices of the Obama Administration's Department of Energy Fracking Subcommittee rife with oil and gas industry insiders, the model is now codified as law in Colorado, Pennsylvania, and Illinois.

Bloomberg reported that the public is being kept “clueless” as to what chemicals are injected into the ground during the fracking process by the oil and gas industry.

Wed, 2012-11-21 05:00Steve Horn
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Shale Gas Bubble About to Burst: Art Berman, Bill Powers

Food and Water Watch recently demonstrated that the dominant narrative, “100 years” of unconventional oil and gas in the United States, is false. At most, some 50 years of this dirty energy resource may exist beneath our feet.

Bill Powers, editor of Powers Energy Investor, has a new book set for publication in May 2013 titled, “Cold, Hungry and in the Dark: Exploding the Natural Gas Supply Myth.”

Powers' book will reveal that production rates in all of the shale basins are far lower than the oil and gas industry is claiming and are actually in alarmingly steep decline. In short, the “shale gas bubble” is about to burst.
 
In a recent interview, Powers said the “bubble” will end up looking a lot like the housing bubble that burst in 2008-2009, and that U.S. shale gas will last no longer than ten years. He told The Energy Report:
 
My thesis is that the importance of shale gas has been grossly overstated; the U.S. has nowhere close to a 100-year supply. This myth has been perpetuated by self-interested industry, media and politicians…In the book, I take a very hard look at the facts. And I conclude that the U.S. has between a five- to seven-year supply of shale gas, and not 100 years.
 
The hotly-anticipated book may explain why shale gas industry giants like Chesapeake Energy have behaved more like real estate companies, making more money flipping over land leases than they do producing actual gas. 
Thu, 2012-11-01 09:43Steve Horn
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Merchants of Doubt Deny Climate Change Connection to Hurricane Sandy

Many serious, thought-provoking post-mortems have ensued in the aftermath of Hurricane Sandy, which recently tore through the heart of the financial capital of the world. The disaster will cost the city roughly $60 billion to repair, according to an Associated Press report

Figures such as New York Gov. Andrew Cuomo, former President Bill Clinton, writer and activist Bill McKibben, environmental reporter Mark Hertsgaard, and numerous others all have connected the dots between the tragedy in New York City and its excerbation at the hands of climate change.  

On the other side of the spectrum, no matter how bad the tragedy, it seems, climate change denial will continue apace by the “merchants of doubt.” Hurricane Sandy was no exception this time around.

Patrick Michaels of the Koch-funded Cato Institute - who recently authored a report described by Greenpeace USA's Connor Gibson as a “Counterfeit Climate Report to Deceive Congress” - denied any connection between climate change and Sandy, going so far as to raise the specter of “global cooling.” 

Thu, 2012-10-11 22:39Steve Horn
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Frackademia: Controversial SUNY Buffalo Shale Institute's Reputation Unraveling

A storm is brewing in Buffalo and it's not the record snow storm typically associated with upstate New York. Rather, it's taking place in the ivory tower of academia and revolves around hydraulic fracturing, or “fracking,” for unconventional gas in the Marcellus Shale basin

Public funding has been cut to the tune of over $1.4 billion over the past five years in the State University of New York (SUNY) public university system under the watch of current Democratic Party governor and 2016 presidential hopeful Andrew Cuomo and his predecessor, David Paterson.

These cuts have created new opportunities for the shale gas industry to fill a funding vacuum, with the SUNY system's coffers hollowed out and starved for cash. 

It’s a growing problem across academia,” Mark Partridge, a professor of rural-urban policy at the Ohio State University, said in an interview with Bloomberg. “Universities are so short of money, professors are under a lot of pressure to raise research funding in any manner possible.”

The oil industry's eagerness to fill the void for its personal gain can be seen through the case study of what we at DeSmog have coined the ongoing “Shill Gas” study scandal at the State University at Buffalo (SUNY Buffalo).

Among other findings, a DeSmog investigation reveals that one of the lesser-known offshoots of the Scaife family foundations, key bankrollers of the climate change denial machine, may potentially soothe SUNY Buffalo's budget woes with funding for the university-connected Shale Resources and Society Institute.

Fri, 2012-08-03 05:00Steve Horn
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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.”

Fri, 2012-06-29 10:45Steve Horn
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New Documentary "Rational Middle": Oil and Gas Advertising in Disguise

The “Rational Middle Energy Series,” directed and produced by Gregory Kallenberg, is hot off the film rolls and has already been screened at an influential venue: the 2012 Aspen Ideas Festival.

Kallenberg also directed and produced the documentary film “Haynesville: A Nation’s Hunt for An Energy Future,” a film about the ongoing shale gas boom in the United States and a counterpart, of sorts, to Josh Fox’s Academy Award-nominated documentary “Gasland.”

Kallenberg, in a press release announcing the film series’ launch, stated,

Through our travels with 'Haynesville,' no matter where we were in the world, we saw a striking commonality from community to community: the need and desire for a balanced discussion about today's energy issues. We realized that more often than not, people wanted to leave behind the noise and extremes to build an energy future that is environmentally sound, economically viable and ensures energy security. The 'Rational Middle' is the starting point for a movement welcoming open discussion where everyone is invited to the table to find solutions to the most important energy challenges.

Taken at face value, the movie’s description sounds fairly innocent.

Yet, the questions to be asked as the film makes the rounds: Who is Gregory Kallenberg? Who is his family? And in general, who are the real characters behind the curtain here?

The answers to these questions say much more about the film than does the description offered in promotional pitches. As it turns out, the public relations firm tasked to do promotional pitches also speaks volumes about the filmmaker's agenda.

Wed, 2012-05-02 10:04Steve Horn
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ALEC Wasn't First Industry Trojan Horse Behind Fracking Disclosure Bill - Enter Council of State Governments

19th Century German statesman Otto von Bismarck once said, “If you like laws and sausages, you should never watch either one being made.”

The American Legislative Exchange Council (ALEC), put on the map by the Center for Media and Democracy in its “ALEC Exposed” project, is the archetype of von Bismarck's truism. So too are the fracking chemical disclosure bills that have passed and are currently being pushed for in statehouses nationwide.

State-level fracking chemical disclosure bills have been called a key piece of reform in the push to hold the unconventional gas industry accountable for its actions. The reality, though, is murkier.

On April 21, The New York Times penned an investigation making that clear. The Times wrote:

Last December, ALEC adopted model legislation, based on a Texas law, addressing the public disclosure of chemicals in drilling fluids used to extract natural gas through hydraulic fracturing, or fracking. The ALEC legislation, which has since provided the basis for similar bills submitted in five states, has been promoted as a victory for consumers’ right to know about potential drinking water contaminants.

A close reading of the bill, however, reveals loopholes that would allow energy companies to withhold the names of certain fluid contents, for reasons including that they have been deemed trade secrets. Most telling, perhaps, the bill was sponsored within ALEC by ExxonMobil, one of the largest practitioners of fracking — something not explained when ALEC lawmakers introduced their bills back home.

The Texas law The Times refers to is HB 3328, passed in June 2011 in a 137-8 roll call vote, while its Senate companion bill passed on a 31-0 unanimous roll call vote. Since then, variations of the model bill have passed in two other key states in which fracking is occuring.

Like dominos falling in quick succession over the following months, ColoradoPennsylvania and, most recently, the Illinois Senate passed bills based on the ALEC model. Louisiana also has introduced a similar bill. 

Tue, 2012-04-24 15:52Steve Horn
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ALEC Launches Assault on Renewable Energy Industry

The American Legislative Exchange Council (ALEC), as covered previously by DeSmogBlog, is the “Trojan Horse” behind mandating that climate change denial (“skepticism,” or “balance,” in its words) be taught in K-12 classrooms.

Well, ALEC is at it again, it appears. Facing an IRS complaint filed by Common Cause, one of the leading advocacy groups working to expose the corporate-funded bill mill, ALEC has also launched an assault on renewable energy legislation, according to a well-documented report written by Bloomberg News.

The two developments are worth unpacking.

Common Cause IRS Complaint

The Washington Post reported that on April 23, Common Cause “had filed an IRS complaint accusing ALEC of masquerading as a public charity…while doing widespread lobbying.” 

ALEC is trying to brush aside this complaint, but Common Cause presents a compelling case.

It tells the IRS in its tax returns that it does no lobbying, yet it exists to pass profit-driven legislation in statehouses all over the country that benefits its corporate members,” said Bob Edgar, president of Common Cause, in a statement. “ALEC is not entitled to abuse its charitable tax status to lobby for private corporate interests, and stick the bill to the American taxpayer.”

Common Cause wants the IRS to complete a no-holds-barred audit of ALEC’s work and to examine whether it violated IRS laws. 

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