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In a major setback for the oil and gas industry, the French Senate last week voted 176 to 151 to ban hydraulic fracturing (a.k.a. fracking), the controversial gas industry drilling method facing scrutiny the world over due to water contamination and other concerns. Once the legislation receives presidential approval, France will be the first country to permanently outlaw fracking.

The ban on fracking is a major victory for the French public, wary of the health, safety and water contamination impacts that unconventional gas drilling would have on communities. Still, with up to five billion cubic metres of unconventional gas spread across southern France, the drilling drama is likely far from settled.

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On Monday, the Natural Gas Subcommittee, from Energy Department Secretary Stephen Chu’s Energy Advisory Board (SEAB), held its second public meeting.  Around 400 people packed a cramped auditorium at Washington Jefferson College in western Pennsylvania to discuss the effects of hydraulic fracturing (a.k.a. fracking) on water supplies, air quality and other threats from the controversial practice.

The crowd split into two camps, those opposing and those supporting the highly contentious drilling method which has spread across Pennsylvania. Fracking opponents argued that fracking is a dangerous and destructive process that must be banned immediately, while those in favour yelled out “drill, baby, drill.”

Given the circumstances it was not surprising that the pro-frackers won the evening. This was due, in large part, to the work of gas industry front-group Energy in Depth who sent out emails to Pennsylvania and New York residents supportive of fracking, offering them airfare, hotels and meals to attend. Tickets to see the Pittsburgh Pirates play the New York Mets were even offered, although later retracted.

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Last week, Interior Secretary Ken Salazar announced that his department and the Environmental Protection Agency (EPA) are fast-tracking unconventional gas drilling permits in Utah’s Uintah Basin.

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New York is a hot spot to watch in the controversy over  gas drilling and hydraulic fracturing (a.k.a. fracking), which the state placed a temporary ban on last year. A new report [PDF] from Common Cause/New York shows the historic levels of money dirty energy companies are spending to promote gas drilling and to overturn New York state’s ban on fracking.

In the state’s last legislative session, more than thirty gas-related bills aiming to create panels, commissions and task forces were proposed in order to investigate a wide range issues ranging from environmental impacts to economics, as well as two fracking moratorium proposals.

Notably, last August, the state Senate voted 48-9 in favour of S8129B which prevents the Department of Environmental Conservation (DEC) from issuing fracking permits until the Supplemental Generic Environmental Impact Statement (SGEIS) evaluating shale gas drilling has been finalized. The bill easily passed the Assembly 93-43 late November 2010. However, on December 13, 2010, Governor David Paterson vetoed the legislation, instead issuing an Executive Order prohibiting fracking of horizontally drilled wells until about July 1, 2011. In February, the state announced plans to put fracking rules in place by June in order to green-light the controversial practice just as the ban runs out.

In terms of lobbyist spending, the Common Cause/NY report shows that the dirty energy companies and industry front groups fighting against the moratorium on fracking outspend environmental organizations and others supporting the ban by a margin of 4:1.

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Once again, Québec’s government is under fire for shoddy management of its shale gas (gaz de schiste in French) reserves.

Last week, as part of Auditor General’s 2010-2011 report to the Québec National Assembly, Sustainable Development Commissioner Jean Cinq-Mars presented a scathing audit of provincial management of shale gas, “Government Management of Shale Gas Exploration and Production“ [PDF].

Cinq-Mars assessed whether or not the Ministry of Natural Resources and Wildlife (Ministère des Ressources naturelles et de la Faune, MRNF) and the Ministry of Sustainable Development, Environment and Parks (Ministère du Développement durable, de l’Environnement et des Parcs, MDDEP) are taking the necessary precautions to ensure that shale gas resources are developed according to the Sustainable Development Act and related principles, as well as public interest, government objectives and regional development priorities.

Shale gas development in the province fails on all measures in the audit, demonstrating just how poorly the government is overseeing the gas industry.

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To satisfy its thirst for energy, China is very quickly becoming a big player in the shale gas industry. Unfortunately, whether at home or abroad, there also seems to be little concern from Chinese leadership for the destructive environmental impact of drilling for heavily polluting shale gas – which is often drilled for using the controversial hydraulic fracturing (a.k.a. fracking) method.

Domestically: Investing in shale gas in China
China’s National Energy Administration is quickly working to draft a plan to develop the country’s shale gas reserves, which are estimated at more than 10 times its conventional gas reserves.

Early in 2010, China’s Ministry of Land and Resources (MLR) set a target for the country to identify 50-80 shale gas areas and 20-30 exploration and development blocks by 2020. Moreover, the MLR’s Strategic Research Centre for Oil and Gas wants to produce 8-12% of China’s gas from shale wells by 2020.

State-controlled PetroChina (a.k.a. China National Petroleum Corporation) announced its intention to produce 500 million cubic meters of shale gas by 2015 and Sinopec Corporation also wants to exploit some 2.5 billion cubic meters of shale gas and coalbed methane in that time. Already, Royal Dutch Shell is drilling 17 gas wells, for both tight gas and shale gas, and plans to spend $1 billion a year over the next five years on shale gas in China.