oil prices

Top Drillers Shut Down U.S. Fracking Operations as Oil Prices Continue to Tank

Read time: 3 mins

It was a tumultuous week in the world of hydraulic fracturing (“fracking”) for shale oil and gas, with a few of the biggest companies in the U.S. announcing temporary shutdowns at their drilling operations in various areas until oil prices rise again from the ashes.

Among them: Chesapeake Energy, Continental Resources and Whiting Petroleum. Chesapeake formerly sat as the second most prolific fracker in the U.S. behind ExxonMobil, while Continental has been hailed by many as the “King of the Bakken” shale basin located primarily in North Dakota.

Big Oil Can Survive Low Prices, The Climate Can’t

Read time: 4 mins

This is a guest post by Lukas Ross from Friends of the Earth.

Last week seemed like a bad time to be Big Oil.

As the world’s biggest energy companies announced their quarterly results, billions in profits still managed to disappoint shareholders. ExxonMobil and Chevron both missed their targets, Shell prepared for steep spending cuts, and BP took a well-deserved hosing on news of its latest Deepwater Horizon penalty.

The price of crude, half of what it was a year ago, definitely made for some lower numbers. But does bad news for the oil industry mean good news for the climate? Absolutely not.

Global Shale Fail: Oil Majors Leaving Fracking Fields Across Europe, Asia

Read time: 3 mins

With some analysts predicting the global price of oil to see another drop, many oil majors have deployed their parachutes and jumped from the hydraulic fracturing (“fracking”) projects rapidly nose-diving across the world.

As The Wall Street Journal recently reported, the unconvetional shale oil and gas boom is still predominantly U.S.-centric, likely to remain so for years to come.

“Chevron Corp., Exxon Mobil Corp. and Royal Dutch Shell PLC have packed up nearly all of their hydraulic fracturing wildcatting in Europe, Russia and China,” wrote The Wall Street Journal.

“Chevron halted its last European fracking operations in February when it pulled out of Romania. Shell said it is cutting world-wide shale spending by 30% in places including Turkey, Ukraine and Argentina. Exxon has pulled out of Poland and Hungary, and its German fracking operations are on hold.” 

Though the fracking boom has taken off in the U.S. like no other place on Earth, the U.S. actually possesses less than 10 percent of the world’s estimated shale reserves, according to The Journal.

Despite this resource allotment discrepency, the U.S. Energy Information Administration (EIA) recently revealed that only four countries in the world have produced fracked oil or gas at a commercial-scale: the United States, Canada, China and Argentina.

Global Shale Fail
Image Credit: U.S. Energy Information Administration

DeSmogCAST 9: U.S. Oil Exports Up, Kinder Morgan's Secrets and Teens Sue for the Climate

Read time: 1 min
In this episode of DeSmogCAST host Farron Cousins joins DeSmog cast Carol Linnitt and Justin Mikulka to discuss how recent changes in the global oil market, combined with a language change regarding crude oil, have led to an increase in U.S. oil exports.
 
We also discuss a new ruling in Canada that allows pipeline company Kinder Morgan to keep its emergency response plans for the Trans Mountain pipeline in British Columbia a secret.
 
We end on a positive note, reflecting on the bold actions of two teenagers in Oregon who are taking their elected leaders to court for failing to act meaningfully on climate change.

Oil Prices Drop As Global Warming Rises

Read time: 4 mins

This is a guest post by David Suzuki.

With oil prices plunging from more than $100 a barrel last summer to below $50 now, the consequences of a petro-fuelled economy are hitting home — especially in Alberta, where experts forecast a recession.

The province’s projected budget surplus has turned into a $500-million deficit on top of a $12-billion debt, with predicted revenue losses of $11 billion or more over the next three or four years if prices stay low or continue to drop as expected. Alberta’s government is talking about service reductions, public-sector wage and job cuts and even increased or new taxes on individuals. TD Bank says Canada as a whole can expect deficits over the next few years unless Ottawa takes money from its contingency fund.

White House Confirms Obama Will Veto TransCanada's Keystone XL Pipeline

Read time: 4 mins

The White House confirmed today that President Obama will veto Congressional legislation designed to greenlight construction of the Keystone XL pipeline, the contentious project first proposed six years ago to carry more than 800,000 barrels per day of Canadian oilsands crude from Alberta to refineries and export facilities along the Gulf of Mexico.

Despite strong indications of support in Congress, the Obama Administration has already indicated it will veto the bill to expedite approval of the $8 billion project if approved. A similar bill was blocked by Democrats in the Senate in November.

If this bill passes this Congress the president won’t sign it either,” Josh Earnest, White House press secretary, said. Obama rejected TransCanada's application to build the pipeline in 2012, suggesting congressional Republicans had set a “rushed and arbitrary deadline” for the project's approval.

The bill, proposed by Republican Senator John Hoeven from North Dakota and Democratic Senator Joe Manchin from West Virginia, will be debated in a Senate Energy and Natural Resources Committee hearing Wednesday with the panel set to vote on the project Thursday.

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