fracking

GOP Tax Law Bails Out Fracking Companies Buried in Debt

A Scrabble board spells out 'Bankruptcy' overlaid on an unconventional oil and gas rig

EOG Resources is one of the top companies in the fracking industry, and thanks to the new tax bill passed by Republicans and President Donald Trump at the end of last year, EOG had an exceptionally strong year compared to 2016.

In 2017, the company reported a net income of $2.6 billion. The previous year? A loss of $1.1 billion. That financial turnaround seems very impressive until you realize that $2.2 billion, or about 85 percent, of its 2017 income was the result of the new tax law. Without that gift from the GOP and Trump, EOG would have lost approximately $700 million between those two years. Instead they are $1.5 billion ahead of the game.

Despite Disappointing Returns, Oil Driller Pushes Ahead with Fracking Near Rare Texas Wildlands

Balmorhea State Park with views of oil and gas well flares

If you ask the CEO of Apache Corp., his company made in 2016 the kind of once-in-a-lifetime find that every oil driller dreams of: a massive oil and gas field that no other company noticed, where thousands of wells could be drilled and fracked to produce massive amounts of fossil fuels — and, in theory, profits.

The Secret of the Great American Fracking Bubble

Natural gas drilling well pad in Wyoming

In 2008, Aubrey McClendon was the highest paid Fortune 500 CEO in America, a title he earned taking home $112 million for running Chesapeake Energy. Later dubbed “The Shale King,” he was at the forefront of the oil and gas industry's next boom, made possible by advances in fracking, which broke open fossil fuels from shale formations around the U.S.

What was McClendon’s secret? Instead of running a company that aimed to sell oil and gas, he was essentially flipping real estate: acquiring leases to drill on land and then reselling them for five to 10 times more, something McClendon explained was a lot more profitable than “trying to produce gas.” But his story may serve as a cautionary tale for an industry that keeps making big promises on borrowed dimes — while its investors begin losing patience, a trend DeSmog will be investigating in an in-depth series over the coming weeks. 

World May Hit 2 Degrees of Warming in 10-15 Years Thanks to Fracking, Says Cornell Scientist

Ingraffea

In 2011, a Cornell University research team first made the groundbreaking discovery that leaking methane from the shale gas fracking boom could make burning fracked gas worse for the climate than coal.

In a sobering lecture released this month, a member of that team, Dr. Anthony Ingraffea, Professor of Engineering Emeritus at Cornell University, outlined more precisely the role U.S. fracking is playing in changing the world's climate.

The most recent climate data suggests that the world is on track to cross the two degrees of warming threshold set in the Paris accord in just 10 to 15 years, says Ingraffea in a 13-minute lecture titled “Shale Gas: The Technological Gamble That Should Not Have Been Taken,” which was posted online on April 4.

Emails Reveal Trump Admin Mulling Big Oil Plan to Transfer Public Land to States

Gold Butte National Monument, Nevada

During its first year under Donald Trump, the U.S. Department of Interior has coordinated closely with the oil and gas industry to accomplish its priorities on the nation's expansive federal lands. Among them: considering a plan to transfer control of oil and gas development on public lands to the states. This revelation comes from emails and documents obtained by the Western Values Project through the Freedom of Information Act (FOIA).

The key coordinator of this plan has been Timothy Williams, who has served as the go-between for the oil and gas industry and Interior Department. Williams, deputy director of the agency's Office of External Affairs, formerly served as the field director of the Nevada state branch of Americans for Prosperity, a front group founded and funded by Koch Industries.

Why the Koch Network Took Credit for Dakota Access, Keystone XL, and REINS Act

Koch brothers

A leaked memorandum published by The Intercept and Documented Investigations shows that a Koch Industries' donors network, known as the Seminar Network, has taken credit for Donald Trump approving the permits for both the Dakota Access and Keystone XL pipelines during the first months of his presidency. The memo also applauded efforts by the Koch network's Americans for Prosperity (AFP) chapter in Wisconsin to pass a deregulatory measure there known as the REINS Act. The Seminar Network, which meets secretly twice a year, is made up of donors who give at least $100,000 toward Koch-led political and philanthropic efforts.

Koch Industries has a business interest in both pipelines, though their approval has not been something its funded network has widely discussed. Quietly, though, Koch has advocated for the pair of pipelines in regulatory hearings in both Iowa for Dakota Access — as previously reported by DeSmog — as well as in Canada, as reported in 2012 by InsideClimate News.

Wyoming Now Third State to Propose ALEC Bill Cracking Down on Pipeline Protests

A Lakota man locked himself to construction equipment building the Dakota Access pipeline

On the heels of Iowa and Ohio, Wyoming has become the third state to introduce a bill criminalizing the type of activities undertaken by past oil and gas pipeline protesters. 

One of the Wyoming bill's co-sponsors even says it was inspired by the protests led by the Standing Rock Sioux Tribe against the Dakota Access pipeline, and a sheriff involved in policing those protests testified in support of the bill at a recent hearing. Wyoming's bill is essentially a copy-paste version of template legislation produced by the conservative, corporate-funded American Legislative Exchange Council (ALEC).

West Virginia Candidate Ousted From Hearing for Reading Industry Donors. But Bill She Opposed Just Passed in House.

Lissa Lucas being removed from the West Virginia Senate hearing on HB 4268

On Friday, February 9, Lissa Lucas — a Democratic Party candidate for West Virginia's House of Delegates — was forcibly removed from a Senate hearing for calling out how many thousands of dollars legislators backing a pro-oil and gas industry bill have received from that very industry.

The video of Lucas's public comment and removal has gone viral and served as a launching pad for her campaign, which has raised more than $46,000 since the incident. Previously, she had raised just over $4,000. Coincidentally, Lucas supports a publicly funded campaign finance system. 

The bill (HB 4268) she opposed, however, has passed in the West Virginia House of Delegates.

That law, “forced pooling” legislation which makes it easier for the oil and gas industry to obtain mineral rights from private landowners as a precursor to drilling, has the support of the West Virginia Oil and Natural Gas Association. It enables oil and gas companies to perform more hydraulic fracturing (“fracking”) on private land in the state by mandating that, rather than securing land lease contracts from all landowners, companies only need 75 percent of those living in an area to sign leases and are granted the remaining 25 percent by default.

China Is Financing a Petrochemical Hub in Appalachia. Meet its Powerful Backers.

U.S. President Trump, Chinese President Xi Jinping, and West Virginia Commerce Sec. Thrasher join in the Great Hall in Beijing for MOU signing for the Appalachian Development Hub  in November 2017

Over the past year, oil and gas industry plans to build a petrochemical refining and storage hub along the Ohio River have steadily gained traction. Proponents hope this potential hub, which would straddle Pennsylvania, Ohio, West Virginia, and Kentucky, could someday rival the industrial corridor found along the Gulf Coast in Texas and Louisiana.

Those plans center around creating what is known as the Appalachian Storage Hub, which received a major boost on November 9 during a trade mission to China attended by President Donald Trump and U.S. Secretary of Commerce Wilbur Ross. At that trade mission, also attended by Chinese President Xi Jinping, the China Energy Investment Corp. announced the signing of a memorandum of understanding (MOU) to invest $83.7 billion into the planned storage hub over 20 years. For comparison, West Virginia's gross domestic product (GDP) in 2016 was $72.9 billion.

Though called the Appalachian Storage Hub as a broad-sweeping term, in practice the hub could encompass natural gas liquids storage, a market trading index center, a key pipeline feeding epicenter, and a petrochemical refinery row. Its prospective development has been spurred by the current construction of a $6 billion petrochemical refining facility in Pennsylvania owned by Shell Oil.

This Vigilante Scientist Trekked Over 10,000 Kilometres to Reveal B.C.’s Leaking Gas Wells

John Werring in the field

If you’d met John Werring four years ago, he wouldn’t have been able to tell you what an abandoned gas well looked like.

We had no idea whether they were even accessible,” said the registered professional biologist.

That was before the summer of 2014, when he headed up to Fort St. John, B.C., on a reconnaissance mission. At that time, much was known about leaking gas wells in the United States, but there was very little data on Canada.

All Werring had to work with was a map of abandoned wells provided by B.C.’s Oil and Gas Commission. Armed with a gas monitor and a metal detector, he headed into what the gas industry calls the “Montney formation,” one of the largest shale gas resources in the world. Shale gas is primarily accessed via hydraulic fracturing, also known as fracking.

Most of these places, there’s nobody in the field,” Werring said. “You won’t see anybody for miles and miles. Just well after well after well.”

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