Category Archives: tar sands

Common Dreams: Big Oil’s Bid to Crush Small Town Stand Against Tar Sands

http://www.commondreams.org/headline/2013/10/28-2
Published on Monday, October 28, 2013 by Common Dreams

Industry cash and lobbyists pour into coastal Maine town in effort to defeat residents’ initiative to block dirty oil project
– Sarah Lazare, staff writer

protect_south_portland_image
Protect South Portland rallies in favor of the Waterfront Protection Ordinance (Photo: damp wood)Big Oil is sparing no expense in its bid to crush efforts by residents of South Portland, Maine who are taking the fossil fuel industry head-on to save their waterfront from tar sands.

Campaign finance reports revealed Friday that the oil industry has poured over $600,000 into a campaign to defeat the Waterfront Protection Ordinance—a land-use zoning ordinance up for referendum in the November election, that is backed by grassroots organizations and would block oil industry efforts to build a tar sands export facility.

“Clearly they have all the money. We are talking about some of the wealthiest corporations in the world. They do not want a community to stand up for itself. They are going to do everything they can to squash our initiative.”
–Robert Sellin, Protect South Portland

The oil industry is likely to break all records on campaign spending in this coastal town of 25,000 people, out-spending local environmental and community groups six-to-one.

“Oil industry spending is completely over the top,” said Robert Sellin, from the group Protect South Portland, in a phone interview with Common Dreams. “Clearly they have all the money. We are talking about some of the wealthiest corporations in the world. They do not want a community to stand up for itself. They are going to do everything they can to squash our initiative and discourage other jurisdictions.”

While the Keystone XL pipeline is still under review by the State Department, the fight in South Portland shows that oil and pipeline industries are pressing to expand routes across the U.S. and Canada.

The campaign to defeat the Waterfront Protection Ordinance is bankrolled by the Washington, D.C.-based lobbying group American Petroleum Institute, as well as the Portland Pipe Line Corporation. The hundreds of thousands of dollars are being used to run advertisements, hire consultants and strategists, and employ canvassers.

“They have been stuffing our mailboxes with shiny mailers and our phones have been ringing off the hook with robo calls, and we’re so sick of it,” said Cathy Chapman, a South Portland resident.

In contrast, local organizations in favor of the ordinance’s passage have collectively spent only $107,000. Protect South Portland says that the $31,000 they have spent in favor of the ordinance came from 192 people donating an average of $42.49 each.

“Our citizen group—Protect South Portland—is volunteer-powered by neighbors and is grassroots,” said Crystal Goodrich of Protect South Portland, who also questioned the tactics of the oil lobby.

The Portland Pipe Line Corporation applied four years ago for a permit to use South Portland as the potential location for an alternate tar sands pipeline. The plan was to use a 70-year-old, 236-mile pipeline, currently employed to transport crude oil from freighters in the South Portland harbor to Montreal, to instead transport tar sands oil from Alberta, Canada. This would be accomplished by reversing the flow of the pipeline, and the tar sands oil would be distributed to international markets via oil tankers and an upgraded terminal in South Portland.

The upgrade would include two 70-foot smokestacks erected on the South Portland waterfront that would spew pollution, including carcinogenic benzene, into the atmosphere. Freighter ships transporting crude oil from Casco Bay would increase the risk of spills, and tar sands storage tanks would be erected near area schools.

PPLC President and CEO Larry Wilson now claims that his company has no immediate plans to move forward on this project, though has said his company won’t rule it out. Meanwhile, PPLC is putting up a vigorous fight against community efforts to prevent tar sands distribution at the South Portland waterfront.

Sellin said that the same tactics the oil industry is using against local residents are used in a bid to force the tar sands industry on communities all over the world. “I hope that people would think about their local situation and how they can use what powers they have to defend their communities,” he said. “We encourage all communities nationally and internationally to look at what’s available and stand up.”

Common Dreams: New Neighbors to Millions of Americans: Fracking Wells

Published on Monday, October 28, 2013 by Common Dreams

New analysis reveals over 15 million homeowners now have a fracking well in their ‘backyard’
– Lauren McCauley, staff writer

gasland2
(Screenshot from Gasland Part II)Over 15 million homeowners have a natural gas or oil well within a mile of their home—according to a Wall Street Journal analysis published Saturday—thanks to the fracking gold rush that has pushed the fossil fuel industry into Americans’ backyards.

“At least 15.3 million Americans live within a mile of a well that has been drilled since 2000,” said the WSJ analysis, which looked at well location and population data for more than 700 counties in 11 major energy-producing states. “That is more people than live in Michigan or New York City.”

The story credits the toxic process of hydraulic fracturing, or fracking, for spurring the expansion of the fossil fuel industry into the small towns and neighborhoods over the Niobrara Shale in Colorado, the Marcellus Shale in Pennsylvania and the Barnett Shale in Texas, among others.

“The change can be dramatic,” the WSJ writes.

In Johnson County, Texas, in 2000, there were fewer than 20 oil and gas wells. Only a fraction of the residents of this mostly suburban county, south of Fort Worth, lived anywhere near a well or could tell you where to find one.

Today, more than 3,900 wells dot the county and some 99.5% of its 150,000 residents live within a mile of a well. Similar transformations took place in parts of Pennsylvania, Colorado and Wyoming, according to Journal data.

According to DrillingInfo, a data provider to the oil industry, in 2010 some 23 counties, with more than four million residents, each had more than three new wells per square mile.

The WSJ quotes a number of homeowners who have either permitted by lease onto their own property or watched the oil industry move in to adjacent land. Describing the new wells as little more than an “irritation” focusing particularly on the noise and “influx of truck traffic,” the report fails to emphasize the long-term impact of these new neighbors.

Documented in environmental journals and films such as director Josh Fox’s Gasland and Gasland Part II, communities which have already been ravaged by the fracking boom report widespread water contamination—resulting in sickness, dead livestock and flammable tap water.

In late July, environmental groups uncovered a leaked EPA report that said fracking caused methane to leak into drinking-water aquifers in Dimock, Penn. Dimock, which is featured in Gasland, has become the exemplar of a community casualty of the toxic fracking boom.

Common Dreams: via TomDispatch.com: Can Obama Ever Stand Up to the Oil Industry?

http://www.commondreams.org/view/2013/10/28-0

Published on Monday, October 28, 2013 by TomDispatch.com

X-ray of a flagging presidency: Will Obama block the Keystone XL pipeline or just keep bending?
by Bill McKibben

obama-keystone

President Barack Obama speaks at the southern site of the Keystone XL pipeline on March 22, 2012 in Cushing, Oklahoma. In June of this year, President Obama said that the building of the full pipeline — on which he alone has the ultimate thumbs up or thumbs down — would be approved only if “it doesn’t significantly exacerbate the problem of carbon pollution.” By that standard, it’s as close to a no-brainer as you can get. (Photo: Getty images)As the battle over the Keystone XL pipeline has worn on — and it’s now well over two years old — it’s illuminated the Obama presidency like no other issue. It offers the president not just a choice of policies, but a choice of friends, worldviews, styles. It’s become an X-ray for a flagging presidency. The stakes are sky-high, and not just for Obama. I’m writing these words from Pittsburgh, amid 7,000 enthusiastic and committed young people gathering to fight global warming, and my guess is that his choice will do much to determine how they see politics in this country.

Let us stipulate at the start that whether or not to build the pipeline is a decision with profound physical consequences. If he approves its construction, far more of the dirtiest oil on Earth will flow out of the tar sands of Alberta, Canada, and reach the U.S. Gulf Coast. Not just right away or for a brief period, but far into the future, since the Keystone XL guarantees a steady flow of profits to oil barons who have their hearts set on tripling production in the far north.

The history of oil spills and accidents offers a virtual guarantee that some of that oil will surely make its way into the fields and aquifers of the Great Plains as those tar sands flow south. The greater and more daunting assurance is this, however: everything that reaches the refineries on the Gulf Coast will, sooner or later, spill into the atmosphere in the form of carbon, driving climate change to new heights.

In June, President Obama said that the building of the full pipeline — on which he alone has the ultimate thumbs up or thumbs down — would be approved only if “it doesn’t significantly exacerbate the problem of carbon pollution.” By that standard, it’s as close to a no-brainer as you can get.

These days, however, as no one will be surprised to hear, brainless things happen in Washington more often than not, and there’s the usual parade of the usual suspects demanding that Keystone get built. In mid-October, a coalition that included Exxon, Chevron, ConocoPhillips, and Royal Dutch Shell, not to mention the U.S. Chamber of Commerce, the National Association of Manufacturers, and the Business Roundtable, sent Obama a letter demanding that he approve Keystone in order to “maintain investor confidence,” a phrase almost guaranteed to accompany bad ideas. A report last week showed that the Koch brothers stood to earn as much as $100 billion in profits if the pipeline gets built (which would come in handy in helping fund their endless assault on unions, poor people, and democracy).

But don’t think it’s just Republican bigwigs and oil execs rushing to lend the pipeline a hand. Transcanada, the pipeline’s prospective builder, is at work as well, and Obama’s former communications director Anita Dunn is now on the Transcanada dime, producing TV ads in support of the pipeline. It’s a classic example of the kind of influence peddling that knows no partisan bounds. As the activists at Credo put it: “It’s a betrayal of the commitments that so many of us worked so hard for, and that Dunn herself played a huge role in shaping as top strategist on the 2008 campaign and communications director in the White House.”

Credo’s Elijah Zarlin, who worked with Dunn back in 2008, wrote that attack on her. He was the guy who wrote all those emails that got so many of us coughing up money and volunteering time during Obama’s first run for the presidency, and he perfectly exemplifies those of us on the other side of this divide — the ones who actually believed Dunn in 2008, the ones who thought Obama was going to try to be a different kind of president.

Yes, the Environmental Protection Agency has put in place some new power plant regulations, and cars are getting better mileage. But the president has also boasted again and again about his “all of the above” energy policy for “increasing domestic oil production and reducing our dependence on foreign oil.”

On energy there’s been precious little sign of that. Yes, the Environmental Protection Agency has put in place some new power plant regulations, and cars are getting better mileage. But the president has also boasted again and again about his “all of the above” energy policy for “increasing domestic oil production and reducing our dependence on foreign oil.” It has, in fact, worked so well that the United States will overtake Russia this year as the biggest combined oil and natural gas producer on the planet and is expected to pass Saudi Arabia as the number one oil producer by 2017.

His administration has okayed oil drilling in the dangerous waters of the Arctic and has emerged as the biggest backer of fracking. Even though he boasts about marginal U.S. cuts in carbon emissions, his green light to fracking means that he’s probably given more of a boost to releases of methane — another dangerous greenhouse gas — than any man in history. And it’s not just the environment. At this point, given what we know about everything from drone warfare to NSA surveillance, the dream of a progressive Obama has, like so many dreams, faded away.

The president has a handy excuse, of course: a truly terrible Congress. And too often — with the noble exception of those who have been fighting for gay rights and immigration reform — he’s had little challenge from progressives. But in the case of Keystone, neither of those caveats apply: he gets to make the decision all by himself with no need to ask John Boehner for a thing, and people across the country have made a sustained din about it. Americans have sent record numbers of emails to senators and a record number of comments to the State Department officials who oversee a “review” of the pipeline’s environmental feasibility; more have gone to jail over this issue than any in decades. Yet month after month, there’s no presidential decision.

There are days, in fact, when it’s hard to muster much fire for the fight (though whenever I find my enthusiasm flagging, I think of the indigenous communities that have to live amid the Mordor that is now northern Alberta). The president, after all, has already allowed the construction of the southern half of the Keystone pipeline, letting Transcanada take land across Texas and Oklahoma for its project, and setting up the beleaguered communities of Port Arthur, Texas, for yet more fumes from refineries.

Stopping the northern half of that pipeline from being built certainly won’t halt global warming by itself. It will, however, slow the expansion of the extraction of tar sands, though the Koch brothers et al. are busy trying to find other pipeline routes and rail lines that would get the dirtiest of dirty energy out of Canada and into the U.S. via destinations from Michigan to Maine. These pipelines and rail corridors will need to be fought as well — indeed the fights are underway, though sometimes obscured by the focus on Keystone. And there are equally crucial battles over coal and gas from the Appalachians to the Pacific coast. You can argue that the president’s people have successfully diverted attention from their other environmental sins by keeping this argument alive long past the moment at which it should have been settled and a decision should have been made.

At this point, given what we know about everything from drone warfare to NSA surveillance, the dream of a progressive Obama has, like so many dreams, faded away.

At this point, in fact, only the thought of those 900,000 extra barrels a day of especially nasty oil coming out of the ground and, via that pipeline, into refineries still makes the fight worthwhile. Oh, and the possibility that, in deciding to block Keystone, the president would finally signal a shift in policy that matters, finally acknowledge that we have to keep most of the carbon that’s still in the ground in that ground if we want our children and grandchildren to live on a planet worth inhabiting.

If the president were to become the first world leader to block a big energy project on the grounds of its effects on climate, it might help dramatically reset the international negotiations that he allowed to go aground at Copenhagen in 2009 — the biggest foreign policy failure of his first term.

But that cascade of “ifs” depends on Obama showing that he can actually stand up to the oil industry. To an increasingly disillusioned environmental movement, Keystone looks like a last chance.

Bloomberg Business Week: U.S. Shale-Oil Boom May Not Last as Fracking Wells Lack Staying Power

http://www.businessweek.com/articles/2013-10-10/u-dot-s-dot-shale-oil-boom-may-not-last-as-fracking-wells-lack-staying-power

by Asjylyn Loder, October 10, 2013,

Chesapeake Energy’s (CHK) Serenity 1-3H well near Oklahoma City came in as a gusher in 2009, pumping more than 1,200 barrels of oil a day and kicking off a rush to drill that extended into Kansas. Now the well produces less than 100 barrels a day, state records show. Serenity’s swift decline sheds light on a dirty secret of the oil boom: It may not last.

Shale wells start strong and fade fast, and producers are drilling at a breakneck pace to hold output steady. In the fields, this incessant need to drill is known as the Red Queen, after the character in Through the Looking-Glass who tells Alice, “It takes all the running you can do, to keep in the same place.”

The U.S. is producing 7.8 million barrels of oil a day, more than it has in a quarter-century. Crude from shale formations has cut reliance on imports and put the U.S. closer to energy independence than it’s been since 1989. The International Energy Agency predicted last year that the U.S. would overtake Saudi Arabia by 2020 as the world’s largest producer.
Whether current production can hold up is the subject of debate. David Hughes, a geoscientist and president of Global Sustainability Research, has examined the life span of shale wells. “The Red Queen syndrome just gets worse and worse and worse,” he says. “The higher production goes, the more wells you need to offset the decline.”

The U.S. Energy Information Administration estimates that about 29 percent of U.S. oil production today comes from so-called tight oil formations. These dense layers of rock and shale are cracked open by blasting water, sand, and chemicals deep underground, creating fissures that allow the oil to flow into horizontal pipes, some of them thousands of feet long. Production from wells bored into these formations declines by 60 percent to 70 percent in the first year alone, says Allen Gilmer, chairman and chief executive officer of Drillinginfo, which tracks the performance of U.S. wells. Traditional wells take two years to slide 50 percent to 55 percent, and they can keep pumping for 20 years or more.

In North Dakota’s Bakken shale, a well formally known as Robert Heuer 1-17R put out 2,358 barrels in May 2004, when it went live. The output proved there was money to be made drilling in the Bakken and kicked off an oil rush in North Dakota. Continental Resources (CLR), the well’s operator, built a monument to it. Production declined 69 percent in the first year. “I look at shale as more of a retirement party than a revolution,” says Art Berman, a petroleum geologist who spent 20 years with what was then Amoco and now runs his own firm, Labyrinth Consulting Services, in Sugar Land, Tex. “It’s the last gasp.”
There are plenty of people who disagree. Aubrey McClendon, founder and former president and CEO of Chesapeake, called Berman a “third-tier geologist” in a 2011 interview on CNBC’s Mad Money With Jim Cramer. Harold Hamm, the chairman and CEO of Continental, estimated in 2010 that there were 24 billion barrels of recoverable oil in the Bakken and other formations underlying the Williston basin. Now, Hamm says improved technology could eventually boost that number to 45 billion: “We’re just getting started,” he says. Since Continental drilled the Robert Heuer, North Dakota’s oil production has increased more than 10-fold to 874,000 barrels a day, beating Ecuador and Qatar, the two smallest members of the Organization of Petroleum Exporting Countries.
Global Sustainability’s Hughes estimates the U.S. needs to drill 6,000 new wells per year at a cost of $35 billion to maintain current production. His research also shows that the newest wells aren’t as productive as those drilled in the first years of the boom, a sign that oil companies have already tapped the best spots, making it that much harder to keep breaking records. Hughes has predicted that production will peak in 2017 and fall to 2012 levels within two years.

“The hype about U.S. energy independence and ‘Saudi America’ is deafening if you look at the mainstream media,” Hughes says. “We need to have a much more in-depth and intelligent discussion about this.” On Oct. 7, Abdalla Salem el-Badri, OPEC’s secretary general, said at a conference in Kuwait that U.S. shale producers are “running out of sweet spots” and that output will peak in 2018.

If the boom goes bust, it will profoundly affect the fortunes of states such as Oklahoma, which from 1907 to 1923 was the biggest oil-producing state in the U.S. Its production has increased more than 80 percent since Chesapeake drilled the Serenity well near the Kansas border, propelled by oil prices that have averaged more than $85 a barrel since the start of 2009. Drills are targeting the Woodford shale, the Mississippi Chat, and the Mississippi lime, hardened deposits left by a shallow sea that covered Oklahoma 350 million years ago.

The cost of drilling a horizontal shale well ranges from $3.5 million in the Mississippi lime to $9 million or more in the Bakken. That’s far more than the cost of a similar vertical well, which goes from $400,000 to $600,000, according to Drillinginfo.
In September, Steve Slawson, vice president for Slawson Exploration, sat in a trailer about 35 miles north of Oklahoma City, watching monitors as his crew shattered the Mississippi lime thousands of feet below. The well, known as Begonia 1-30H, will cost about $3.7 million. One-third of that is the cost of fracking: First, thin pipes loaded with explosives are threaded into the hole to blast the ancient reef. Then, at a cost of about $80,000, the Begonia will consume 50,000 gallons of hydrochloric acid to dissolve the limestone; another $68,000 will pay for 1,000 gallons of antibacterial solution to kill microorganisms that chew up the pipes; $110,000 goes for a soapy surfactant to reduce friction; $10,000 covers a scale inhibitor to prevent lime buildup; and $230,000 purchases 2 million pounds of sand to prop the fractures open so the oil and gas can flow into the well. Then there’s $300,000 in pumping charges, plus the cost of equipment rental, pipe, and water, which brings the price tag for fracking the well to $1.2 million. A host of other things, from cement to Porta Potty rentals, accounts for the rest of the cost.

There’s little doubt Begonia will produce oil, Slawson says. The question is whether it will be enough to cover the cost of drilling and how quickly. Slawson Exploration’s first Mississippi lime horizontal well, the nearby Wolf 1-29H, produced the equivalent of almost 1,185 barrels a day when it started flowing last year and has paid for itself twice over, Slawson says. After the Wolf, a third of his wells were “dogs,” and only a third have come even close to it.

Slawson sees a few more years of growth in U.S. production if prices stay high. Below $70 a barrel, the number of rigs hunting for oil will drop, and production won’t be far behind, he says. “Like anybody else who is over the age of 50 and has been through the boom-and-bust cycle, I am concerned,” he says.

Companies that borrow heavily to pay for drilling will be hit especially hard if prices decline. Since natural gas prices started falling, Chesapeake has been forced to sell off assets to pay for drilling. It’s also started cutting jobs. Chesapeake would not comment for this story.

http://www.businessweek.com/articles/2013-10-10/u-dot-s-dot-shale-oil-boom-may-not-last-as-fracking-wells-lack-staying-power

Special thanks to Richard Charter

Common Dreams: Over 865,200 Gallons of Fracked Oil Spill in ND, Public in Dark for Days Due to Government Shutdown

http://www.commondreams.org/headline/2013/10/11-0

Published on Friday, October 11, 2013 by DeSmogBlog

by Steve Horn

Over 20,600 barrels of oil fracked from the Bakken Shale has spilled from a Tesoro Logistics pipeline in Tioga, North Dakota in one of the biggest onshore oil spills in recent U.S. history.

Though the spill occurred on September 29, the U.S. National Response Center – tasked with responding to chemical and oil spills – did not make the report available until October 8 due to the ongoing government shutdown.

“The center generally makes such reports available on its website within 24 hours of their filing, but services were interrupted last week because of the U.S. government shutdown,” explained Reuters.

The “Incident Summaries” portion of the National Response Center’s website is currently down, and the homepage notes, “Due to [the] government shutdown, some services may not be available.”

At more than 20,600 barrels – equivalent to 865,200 gallons – the spill was bigger than the April 2013 ExxonMobil Pegasus pipeline spill, which spewed 5,000-7,000 barrels of tar sands into a residential neighborhood in Mayflower, Arkansas.

So far, only 1,285 barrels have been cleaned, and the oil is spread out over a 7.3 acre land mass.

Kris Roberts, environmental geologist for the North Dakota Department of Health Division of Water Quality told the Williston Herald, “the leak was caused by a hole that deteriorated in the side of the pipe.”

“No water, surface water or ground water was impacted,” he said. “They installed monitoring wells to ensure there is no impact now or that there is going to be one.”

Roberts also told the Herald he was impressed with Tesoro’s handling of the cleanup.

“They’ve responded aggressively and quickly,” Roberts commented, also noting that the cleanup will cost upward of $4 million. “Sometimes we’ve had to ask companies to do what they did right off the mark. They’re going at this aggressively and they know they have a problem and they know what they need to do about it.”

Tesoro Logistics Chairman and CEO Greg Goff also weighed in on the spill.

“Protection and care of the environment are fundamental to our core values, and we deeply regret any impact to the landowner,” said Goff in a press release. “We will continue to work tirelessly to fully remediate the release area.”
Pipeline to Albany Refinery, Barging on the Hudson

Tesoro’s six-inch pipeline was carrying oil obtained via the controversial hydraulic fracturing (“fracking”) process to the Stampede, ND rail facility. From Stampede, Canadian Pacific’s freight trains take the oil piped from Tesoro’s pipeline and ship it to an Albany, NY holding facility by Global Partners located along the Hudson River.

Albany, NY Global Partners Facility; Image Credit: Google Maps

“Over five years, the equivalent of roughly 91 million barrels of oil will be transported via CP’s rail network from a loading facility in Stampede, N.D., to a Global terminal in Albany,” explained a September story appearing in the Financial Post.

Albany’s holding facility received its first Canadian Pacific shipment from the Bakken Shale in December 2011, according to Bloomberg, with 1.4 million barrels of storage capacity. The facility receives 149,000-157,000 barrels of Bakken crude per day from Canadian Pacific.

Once shipped to Global’s Albany holding facility, much of the oil is barged to market on tankers along the Hudson from the Port of Albany.

“As much as a quarter of the shale oil being produced in North Dakota could soon be headed by rail to the Port of Albany,” explained an April 2012 article appearing in the Albany Times-Union. “The crude oil…will be loaded onto barges to be shipped down the Hudson River to refineries along the East Coast.”
North Dakota Petroleum Council Responds

North Dakota Petroleum Council’s response to the largest fracked oil spill in U.S. history and one of the biggest onshore spills in U.S. history? Ho-hum.

“You know, this is an industrial business and sometimes things happen and the companies are certainly responsible to take care of these things when they happen,” Petroleum Council President Ron Ness told KQCD.

John Berger, Manager of Tesoro’s Mandan, ND, refinery, sits on the Petroleum Council’s Board of Directors.

DeSmogBlog will post continuing updates on the spill: stay tuned.

Photo Credit: U.S. National Oceanic and Atmospheric Administration | Wikimedia Commons
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