Harold Hamm

How Wall Street Enabled the Fracking 'Revolution' That's Losing Billions

Read time: 9 mins
Wall Street sign

The U.S. shale oil industry hailed as a “revolution” has burned through a quarter trillion dollars more than it has brought in over the last decade. It has been a money-losing endeavor of epic proportions.

In September 2016, the financial ratings service Moody’s released a report on U.S. oil companies, many of which were hurting from the massive drop in oil prices. Moody's found that “the financial toll from the oil bust can only be described as catastrophic,” particularly for small companies that took on huge debt to finance fracking shale formations when oil prices were high.

And even though shale companies still aren't turning a profit, Wall Street continues to lend the industry more money while touting these companies as good investments. Why would investors do that?

GOP Tax Law Bails Out Fracking Companies Buried in Debt

Read time: 6 mins
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.

Experts Who Sold the Idea of Oil Exports Proven Very Wrong Very Fast

Read time: 6 mins
Tanker

As Bloomberg put it recently, today “crude oil gushes out of the U.S. like never before.” U.S. exports of crude oil just hit a new record: nearly two million barrels per day. And while at DeSmog we predicted that “lifting the oil export ban will result in large increases in fracking for oil in the U.S.,” most industry experts at the time were making very different claims.

It’s universally agreed in the short term that we won’t see a flood of ships leaving for foreign ports because the economics aren’t right,” Sandy Fielden, director of energy analytics at respected consulting firm RBN Energy, said in December 2015, just before the ban on crude oil export lifted. Fielden was explaining why lifting that ban wouldn't result in a sizable and ongoing rush to export American crude.

Climate-Denying Group Led by Trump Strategist Lobbied for Dakota Access, Keystone XL

Read time: 6 mins
Tony Fabrizio

The Center for Individual Freedom (CFIF), a conservative advocacy, lobbying, and electioneering group led by a strategist for Donald Trump’s presidential campaign, has lobbied for both the Dakota Access and Keystone XL pipelines.

Tony Fabrizio, a veteran Republican tactician and lead pollster, chairs CFIF’s Board of Directors, according to its 2017 incorporation filings, submitted in Florida. Documents from the state show that Fabrizio signed off on CFIF’s forms back in 2004.

According to federal lobbying disclosure forms, the group's team of lobbyists, at the end of 2016, engaged with then-President Barack Obama's staff to express “concern with ongoing violent protests and obstruction of the Dakota Access Pipeline and [to urge] allowance of construction to continue without any further delay.”

Key Trump Donor Stands to Profit from Order to Approve Keystone XL, Dakota Access Pipelines

Read time: 5 mins

On January 24, President Donald Trump signed two executive orders calling for the approval of the Dakota Access and Keystone XL pipelines, owned by Energy Transfer Partners and TransCanada, respectively. He also signed an order calling for expedited environmental reviews of domestic infrastructure projects, such as pipelines.

Fights against both pipelines have ignited nationwide grassroots movements for over the past five years and will almost assuredly sit at the epicenter of similar backlash moving forward. As DeSmog has reported, Donald Trump's top presidential campaign energy aide Harold Hamm stands to profit if both pipelines go through. 

Hamm, the founder and CEO of Continental Resources who sat in the VIP box at Trump's inauguration and was a major Trump campaign donor, would see his company's oil obtained from hydraulic fracturing (“fracking”) in the Bakken Shale flow through both lines. Kelcy Warren, CEO of Energy Transfer Partners, was also a major Trump donor.

Rick Perry, Climate Denier and Dakota Access Pipeline Owner Board Member, Named Energy Secretary

Read time: 4 mins
Rick Perry

Former Texas Republican Governor Rick Perry, a boardmember of Energy Transfer Partners — owner of the Dakota Access Pipeline (DAPL) — has been named U.S. Secretary of Energy by President-elect Donald Trump.

Perry, the former chairman of the Interstate Oil and Gas Compact Commission (IOGCC), ran for president as part of the Republican Party primaries in 2015, but his campaign ended quickly. He announced his run for the Oval Office in 2015 while facing felony charges for official state corruption in Texas.

Donald Trump's Swamp: Meet Ten Potential Energy and Climate Cabinet Picks and the Pickers

Read time: 10 mins

One of President-elect Donald Trump's most pressing current tasks is selecting who will serve in his new administration, especially his transition team and cabinet, though there are over 4,000 political appointees to hire for federal jobs in all.

Much of the mainstream media attention so far has centered around Trump's choices of Republican National Committee head Reince Priebus as White House chief of staff and former Breitbart News CEO Steve Bannon as chief strategist and senior counselor. Congressional Democrats have called for Bannon to be banned from the White House, citing his personal bigotry and the bigotry often on display on Breitbart.com. Meanwhile, Bannon's hire was praised by the American Nazi Party and KKK.

Yet, perhaps just as troubling is the army of climate change deniers and fossil fuel industry lobbyists helping to pick or court a spot on Trump's future climate and energy team.

Koch Industries and Fracking Lobbyist Mike Catanzaro To Lead Trump Energy Team

Read time: 5 mins

The Washington Post has reported that Mike Catanzaro, a former senior energy staffer for Republican Party House Majority Leader John Boehner with a track record of climate change denial, will lead Republican Party presidential candidate Donald Trump's energy transition team. 

Catanzaro now works as a partner at the lobbying firm CGCN, where his clients include Noble Energy, Koch Industries, EnCana Oil and Gas, HalliburtonDevon Energy and others. For those clients, he lobbies on issues such as pushing for more drilling on public lands on behalf of EnCana, against emissions regulations for drilling onshore and offshore wells on public lands for Hess Corporation and Devon, and for offshore drilling in Israel on behalf of Noble Energy. 

Trump Economic Adviser "Pushing" for Climate Denier and Fossil Fuel Apologist to Head EPA

Read time: 7 mins
Kathleen Hartnett White

Stephen Moore — economic adviser for Republican Party presidential candidate Donald Trump's campaign — recently told Politico's Morning Energy that he is “pushing” to have a climate change denier and fossil fuel promoter, Kathleen Hartnett White, named as head of the U.S. Environmental Protection Agency (EPA) if Trump is elected president in November.

Did an Industry Front Group Create Fake Twitter Accounts to Promote the Dakota Access Pipeline?

Read time: 9 mins
Screenshot of fake Twitter account criticizing DAPL protesters.

A DeSmog investigation has revealed the possibility that a front group supporting the controversial Dakota Access Pipeline (DAPL) — the Midwest Alliance for Infrastructure Now (MAIN) — may have created fake Twitter profiles, known by some as “sock puppets,” to convey a pro-pipeline message over social media. And MAIN may be employing the PR services of the firm DCI Group, which has connections to the Republican Party, in order to do so. 

DeSmog tracked down at least 16 different questionable Twitter accounts which used the #NoDAPL hashtag employed by protesters, in order to claim that opposition to the pipeline kills jobs, that those protesting the pipeline at the Standing Rock Sioux Tribe's encampment use violence, and that the pipeline does not pose a risk to water sources or cross over tribal land.

On September 13, people began to suspect these accounts were fake, calling them out on Twitter, and by September 14, most of the accounts no longer existed.

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