Welfare Kings? Study Finds Half of New Oil Production Unprofitable Without Government Handouts

Oil derrick with 'welfare' spelled on Scrabble tiles

A new study published in the peer-reviewed journal Nature Energy found that 50 percent of new oil production in America would be unprofitable if not for government subsidies. The study, performed by researchers at the Stockholm Environment Institute and Earth Track, Inc., found that, at prices of $50 per barrel, light oil produced by hydraulic fracturing (“fracking”) was heavily dependent on subsidies.

In fact, forty percent of the Permian basin in Texas would be economically unviable without subsidies, and for the home of Bakken crude production, Williston Basin, that number jumps to 59 percent, according to the researchers.

Alaskans Push U.S. Government to Investigate B.C.’s Border Mines

Red Chris Mine by Garth Lenz|DeSmog Canada

Fish and wildlife in Alaska’s major watersheds are threatened by six British Columbia mines close to the Alaska border, according to a new petition that asks U.S. Secretary of Commerce Wilbur Ross to investigate the threat of acid-mine drainage, heavy metals pollution and the possibility of catastrophic dam failure originating in the Canadian province.

The formal petition, organized by a coalition of Alaskan tribal governments and conservation groups, calls for the International Joint Commission to investigate threats from B.C. mines that will continue to hang over the watersheds for centuries after their closure.

It’s a very urgent issue and it’s important to a lot of people and their families,” Kenta Tsuda of Earthjustice, a signatory of the petition, told DeSmog Canada. “Their communities are at risk.”

Scotland Promises to Ban Fracking 'Indefinitely'

A frack pad

The Scottish government has said fracking is set to be permanently banned following “overwhelming” public support for outlawing the controversial process, it was announced today.

Unlike in England, fracking has been under a temporary halt in Scotland since 2015, and an extensive public consultation on its long-term future was carried out earlier this year.

Speaking to members of the Scottish Parliament in Edinburgh, the Scottish environment minister Paul Wheelhouse said the ban should be extended “indefinitely” and that “the Scottish Government will not support the development of unconventional oil and gas in Scotland”.

Sean Spicer's Next Act? Fracking Industry's Chosen Keynote Speaker

Sean Spicer at Shale Insight 2017

Sean Spicer might be among the least trusted public figures in the U.S.

After he lost his job as White House press secretary, all five major TV news networks — including both Fox News and CNN, as well as CBS News, ABC News, and NBC News — declined to hire Spicer as a paid contributor, with network insiders reportedly telling NBC News, Spicer had a “lack of credibility.”

His attempt to rehabilitate his reputation with a September 17 Emmys appearance earned him a massive backlash.

Less than two weeks later, Spicer made another, somewhat less-reported public appearance — as the keynote for the Marcellus Shale Coalition's 2017 Shale Insight conference.

Rail Industry Slow on Safety Upgrade for Fleets Carrying Oil and Ethanol

DOT 117 tank cars

A new government report finds that only 9 percent of all the rail tank cars transporting flammable liquids last year met the stricter safety requirements of regulations set in 2015, which were meant to reduce oil train explosions and accidents. This confirms what DeSmog reported last year showing that the oil and rail industries were not moving to aggressively upgrade the fleet to the higher safety standards. Of course, the regulations gave them over a decade to make the upgrades and provided little incentive for industry to move faster.

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