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Coal Companies Are Dying While Their Execs Grab More Cash

The industry is collapsing, but its corporate bigwigs are doing just fine. VGstockstudio/Shutterstock These are dark days for coal. In July, the industry hit a milestone when a major power company announced plans to shutter several coal-fired power plants in Iowa: More than 200 coal plants have been scheduled for closure since 2010, meaning nearly one-fifth of the US coal fleet is headed for retirement. President Barack Obama’s recently completed climate plan, which sets limits on carbon dioxide emissions from power plants, is designed to keep this trend going over the next decade. But the industry was in deep trouble even before Obama’s crackdown, thanks to the rock-bottom price of natural gas made possible by America’s fracking boom. In case the shutdown of hundreds of coal plants wasn’t a sufficient indicator of the industry collapse, here’s another clue: coal companies’ rapidly deteriorating bottom lines. A study this spring from the Carbon Tracker Institute found that over the past five years, coal producers have closed nearly 300 mines and lost 76 percent of their value. In August, Alpha Natural Resources, the country’s second-largest coal company, filed for bankruptcy, making it the biggest domino to fall in a string of more than two dozen corporate collapses during the past couple of years. On Monday, one of the company’s top executives resigned. Meanwhile, shares of Peabody Energy, the world’s biggest coal company, hit their lowest price ever, dipping below $1. A year ago, Peabody’s share price was hovering above $15; it peaked at $72 back in 2011. The stock plunge at Arch Coal was even more extreme—it fell from $3,600 to under $2 between 2011 and August 2015. (It has since rebounded slightly.) This year, both companies have been among the worst performers in the S&P 500. You might think that the leaders of coal companies would be made to pay the price for these failures. But in the perverse world of American corporate compensation, they are, in fact, getting a raise. According to a report today from the Institute for Policy Studies, which bills itself as the country’s oldest progressive think tank, executive salaries and bonuses at the top 10 publicly traded coal companies increased an average of 8 percent between 2010 and 2014, even as the companies’ combined share price fell 58 percent. Meanwhile, the same executives cashed in well over $100 million in stock options, according to the report, which analyzed the companies’ public filings with the Securities and Exchange Commission. In other words, coal execs are cashing in while their companies tank. “That [stock-based] part of their compensation package is not so valuable right now, so the value of their cash-based pay has been going up,” said Sarah Anderson, the report’s author. “We’re seeing this move to insulate them from the implosion of the coal sector by handing out more cash.” The chart below, from the report, shows how cash compensation started to rise just as the share prices took their second dive in five years: At Peabody, for example, CEO Greg Boyce cashed in $26 million in stock before the price collapse that began in 2011. At Arch Coal, cash compensation for the company’s top five executives grew 94 percent between 2010 and 2014, to an average of $2.3 million. Arch, Alpha, and Peabody did not return requests for comment. To be clear, there’s no evidence of anything criminal happening here. But you can include this trend in the pantheon of corporate executives getting rewarded for their companies’ bad performance. Even the world’s best CEO probably wouldn’t be able to save these corporations—the fact is, the American coal market is disappearing and isn’t coming back. But, Anderson argues, if these execs were truly interested in fixing their business models, they could have invested in alternative forms of energy, such as gas or renewables. “The smart thing,” according to Anderson, “would have been to diversify their portfolio so they wouldn’t be so vulnerable.” See original article:  Coal Companies Are Dying While Their Execs Grab More Cash ; ; ;

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Coal Companies Are Dying While Their Execs Grab More Cash

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Will Fracking Force You To Drink Bottled Water?

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Will Fracking Force You To Drink Bottled Water?

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The fracking industry just got more tech savvy

Shale 2.0

The fracking industry just got more tech savvy

By on 3 Jun 2015 6:43 pmcommentsShare

It looks like the U.S. fracking industry is becoming a little less “Wild West” and little more West Coast Silicon Valley. And no — I can’t decide which one sounds worse, either.

True, low oil prices recently brought the industry to its knees: The number of rigs nationwide fell by more than half since October of last year. But at the same time, the industry has been getting smarter about how it operates. Here’s the scoop from MIT Technology Review:

Much of the new technological innovation in shale comes from a simple fact: practice makes perfect. Tapping hydrocarbons in “tight,” geologically complex formations means drilling lots and lots of wells—many more than in conventional oil fields. Drilling thousands of wells since the shale revolution began in 2006 has enabled producers—many of them relatively small and nimble—to apply lessons learned at a much higher rate than their counterparts in the conventional oil industry.

Some innovations in fracking hardware include “walking rigs” that move from hole to hole, better drill bits, remote-controlled drilling capabilities, and advanced fracking liquids, Technology Review reports. Big data — like an annoying party guest who has something deep and insightful to say about everything — has also entered the picture:

Thanks to new sensing capabilities, the volume of data produced by a modern unconventional drilling operation is immense—up to one megabyte per foot drilled, according to Mills’s “Shale 2.0” report, or between one and 15 terabytes per well, depending on the length of the underground pipes. That flood of data can be used to optimize drill bit location, enhance subterranean mapping, improve overall production and transportation efficiencies—and predict where the next promising formation lies. Many oil companies are now investing as much in information technology and data analytics as in old-school exploration and production.

And with rigorous data analysis comes another important life lesson: how to take a chill pill. Here’s more from Technology Review:

At the same time, producers have learned when to pause: more than half the cost of shale oil wells comes in the fracking phase, when it’s time to pump pressurized fluids underground to crack open the rock. This is known as well completion, and hundreds of wells in the U.S. are now completion-ready, awaiting a rise in oil prices that will make them economical to pump. Several oil company executives in recent weeks have said that once oil prices rebound to around $65 a barrel (the price was at $64.92 per barrel as of June 1), another wave of production will be unleashed.

We’ll know these fracking companies have gone full-on Silicon Valley when they ditch their old names (Pioneer Natural Resources Co., EOG Resources, etc.) for something a bit more trendy — drlr? FrackIt?

Source:
Big Data Will Keep the Shale Boom Rolling

, MIT Technology Review.

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The fracking industry just got more tech savvy

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Texas City Opts For 100% Renewable Energy–to Save Cash, Not the Planet

green4us

Georgetown, Texas, decision not about going green:”‘I’m probably the furthest thing from an Al Gore clone you could find,” says city official. A wind farm near Fluvanna, Texas fieldsbh/Flickr News that a Texas city is to be powered by 100 percent renewable energy sparked surprise in an oil-obsessed, Republican-dominated state where fossil fuels are king and climate change activists were described as “the equivalent of the flat-earthers” by US Senator and GOP presidential hopeful Ted Cruz. “I was called an Al Gore clone, a tree-hugger,” says Jim Briggs, interim city manager of Georgetown, a community of about 50,000 people some 25 miles north of Austin. Briggs, who was a key player in Georgetown’s decision to become the first city in the Lone Star State to be powered by 100 percent renewable energy, has worked for the city for 30 years. He wears a belt with shiny silver decorations and a gold ring with a lone star motif, and is keen to point out that he is not some kind of California-style eco-warrior with a liberal agenda. In fact, he is a staunchly Texan pragmatist. “I’m probably the furthest thing from an Al Gore clone you could find,” he says. “We didn’t do this to save the world—we did this to get a competitive rate and reduce the risk for our consumers.” Read the rest at the Guardian.

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Texas City Opts For 100% Renewable Energy–to Save Cash, Not the Planet

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Texas City Opts For 100% Renewable Energy–to Save Cash, Not the Planet

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The Link Between Fracking and Oklahoma’s Quakes Keeps Getting Stronger

Mother Jones

Over the last few years, Oklahoma has experienced an insane uptick in earthquakes. As we reported in 2013, the count exploded from just a couple per year back in the mid-2000s to over a thousand in 2010, growing alongside a boom in the state’s natural gas drilling industry.

There is now a heap of peer-reviewed research finding that Oklahoma’s earthquake “swarm” is directly linked to fracking—not the gas drilling itself, but a follow-up step where brackish wastewater is re-injected into disposal wells deep underground. It’s a troubling trend in an industry that thrives under notoriously lax regulations, especially when the risk to property and public safety is so obvious.

If those numbers weren’t dramatic enough, here’s another: This year, Oklahoma has experienced an average of two quakes per day of magnitude 3.0—enough to be felt and inflict damage to structures—or greater. That’s according to a deep, comprehensive report on the subject out in this week’s New Yorker.

But even freakier than the earthquakes themselves, according to the story, is the pervasive denial of science coming from state agencies like the Oklahoma Geological Survey, whose job it is to oversee the oil and gas industry:

The official position of the O.G.S. is that the Prague Oklahoma earthquakes were likely a natural event and that there is insufficient evidence to say that most earthquakes in Oklahoma are the result of disposal wells. That position, however, has no published research to support it, and there are at least twenty-three peer-reviewed, published papers that conclude otherwise.

The story goes on to detail super-cozy relationships between top regulators and drilling company executives; the state’s ongoing and systemic habit of dismissing or ignoring the rapidly accumulating pile of evidence about the quakes; and a failure by regulators and the state legislature to take any meaningful steps to address the crisis. It’s really quite damning.

As a reporter covering the fracking industry, I’ve found that a lot of the problems associated with the technique aren’t necessarily inherent to it, and could be resolved with more pressure on companies to behave responsibly, or laws requiring them to. Better zoning regulations could keep wells out of neighborhoods. Stricter well construction standards could cut down on the leakage of methane, a potent greenhouse gas, and help ensure that gas or chemicals don’t contaminate groundwater. In other words, while industry may resist them, there are ready solutions at hand to many of the most cited drawbacks. And the same could be true in the case of earthquakes: while many geologists have now found that drilling wells into deep “basement” rock can set off temblors, there still isn’t a law in Oklahoma that simply requires locating disposal wells elsewhere.

Their state’s lack of basic engagement on the fracking-and-earthquakes issue is, understandably, a source of great frustration to Oklahomans, including those who are otherwise totally supportive the drilling industry. They’re worried not only about above-ground damage, but about how quakes might effect the state’s vast network of oil pipelines and underground aquifers. It’s hard to imagine the nightmare that would result if a serious earthquake ruptured these pipelines and caused a major spill. That sentiment was nicely captured in the New Yorker by a quote from the town manager of Medford, a hamlet outside the oil center of Cushing:

“We want to be a good partner for the oil companies—it’s exciting for us that they’re here. But if they can move the disposal well even just three miles, what a difference that would make.”

See original article here – 

The Link Between Fracking and Oklahoma’s Quakes Keeps Getting Stronger

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Scientists Are Pretty Terrified About These Last-Minute Fixes to Global Warming

The most comprehensive study to date on geoengineering says we probably shouldn’t do it—at least not yet. Johnno/Flickr You might have heard of “geoengineering.” It’s the highly controversial theory that humans could slow, stop, or even reverse global warming by “hacking” the planet with epic technological feats that would alter the chemical composition of the atmosphere. The idea has been around for a few decades, but there have been only a few actual experiments with it, most recently in 2012 when a rogue American millionaire dumped 220,000 pounds of iron sulphate into the Pacific Ocean. His goal was to create a massive, carbon-sucking plankton bloom. The effort succeeded, but was condemned by many scientists, the Canadian government, and the United Nations for violating international laws and for forging ahead with little regard for potential ecological fallout. Every now and then, geoengineering of one kind or another gets floated by the media as a possible silver bullet if we continue to fail to make meaningful reductions to greenhouse gas emissions. But as the plankton debacle vividly illustrated, there are any number of very good reasons why the proposition never seems to get any traction. Ideas for how to do it are either too expensive, too entangled with thorny legal and geopolitical complications, too ineffective, or all of the above. These issues and more were laid bare today in the most comprehensive assessment of geoengineering to date, a two-volume study involving dozens of scientists that was pulled together by the National Academy of Sciences (a nongovernmental organization that produces peer-reviewed research). The reports offered a fairly damning critique of geoengineering and found that while there could be value in continuing to research the technology, it will never be a panacea for climate change, and we’re definitely not ready to start using it yet. “We definitely don’t think that we’re ready to say this is something worth doing,” said atmospheric chemist Lynn Russell of the University of California, San Diego, a lead author on one of the report’s volumes. There are two basic categories of geoengineering, each with its own unique obstacles. The first involves pulling carbon dioxide out of the atmosphere and burying it underground, effectively reversing the man-made greenhouse gas pollution that causes global warming. (The plankton incident fits this category; the idea was that the plankton bloom would consume a bunch of CO2 and then take it to the ocean depths when the plankton died.) The second kind involves “seeding” the atmosphere with particles that would increase its reflectivity—what climate scientists call “albedo”—and send more sunlight back into space. Before getting into the whys and wherefores of both categories, it’s important to note one key finding of the study: A major risk of all geoengineering is that scientists really don’t know that much about what the risks are. This is a relatively young field, Russell explained, but more importantly, it hasn’t held much attention for scientists because even the most optimistic scenarios for geoengineering aren’t a preferable substitute to the more familiar endeavor of reducing greenhouse gas emissions from cars, power plants, and other sources. “As a community we’ve been afraid to do the research,” Russell said, “because we thought it would take attention away from mitigating greenhouse gases.” On that note, this week negotiators from around the world are meeting in Geneva to make strides toward a international climate accord expected by the end of this year. And recently President Barack Obama has announced a few major initiatives—new limits on carbon dioxide and methane emissions—that should slash America’s greenhouse footprint. But progress is still too slow for most climate hawks: Even the usually-optimistic United Nations climate chief admitted last week that the upcoming accord is unlikely to keep global warming within the 3.6 degree Fahrenheit limit called for by scientists and agreed to by governments. With that in mind, Russell said, “there is an obligation to think about whether, even if climate engineering isn’t a great idea, it might not be as bad as nothing.” Which brings us back to our two categories. Here’s a useful rundown of the risks and rewards of each, from the report: NAS Note the row fourth from the bottom, about how both kinds of geoengineering should be judged; this point is key for understanding why the scientists are against rolling out geoengineering today. The report finds that existing carbon dioxide removal proposals (like ocean iron fertilization; a process called “weathering” that chemically dissolves CO2 in the ocean; or giant machines that suck carbon directly out of the air) are too expensive to deploy widely. Even if future engineering advances were to bring those costs down, they would have to be weighed against the costs of the more straightforward route: To stop burning fossil fuels for energy. Pulling carbon back out of the atmosphere on a scale necessary to alter the global climate, the report says, is unlikely ever to be more cost-effective than not putting it there in the first place. One notable exception is reforestation, which is cost-effective and readily deployable (a study yesterday from Oxford University argued that planting trees is one of the “most promising” short-term fixes for climate change). The outlook for albedo modification is somewhat more frightening, in part because the technology is already relatively cheap and available. China already creates an estimated 55 billion tons of artificial rain per year by “cloud seeding”—launching chemical-filled rockets into the upper atmosphere that accelerate the formation of ice crystals that cause rain. Albedo modification would work essentially the same way, using airplanes or rockets to deliver loads of sulphate aerosols into the stratosphere, where they would bounce sunlight back into space. But if the technology is straightforward, the consequences are anything but. The aerosols fall out of the air after a matter of years, so they would need to be continually replaced. And if we continued to burn fossil fuels, ever more aerosols would be needed to offset the warming from the additional CO2. Russell said that artificially blocking sunlight would have unknown consequences for photosynthesis by plants and phytoplankton, and that high concentrations of sulphate aerosols could produce acid rain. Moreover, if we one day suddenly ceased an albedo modification program, it could cause rapid global warming as the climate adjusts to all the built-up CO2. For these reasons, the report warns that it would be “irrational and irresponsible to implement sustained albedo modification without also pursuing emissions mitigation, carbon dioxide removal, or both.” To be fair, plenty of diversity of opinion exists among scientists. One long-time proponent of geoengineering, Harvard physicist David Keith (who was not on the committee behind this report) told the Washington Post yesterday that the technology is nothing to be afraid of: “A muffler is a technological fix for the fact that the internal combustion engine is very noisy, and people don’t have a problem with mufflers,” he said. The difference in this context is that mufflers don’t come with a host of unknown, potentially catastrophic side effects. Either way, the disagreement this topic inspires just between scientists gives you some indication of how far away we are from making it practically and politically feasible. Still, Russell said, we should continue to research both kinds of geoengineering, if only to be able to express what a large-scale experiment would actually look like. “The stage we’re at now is not even having enough information to make that decision,” she said. “But if we did put together a serious research program, we would make a lot of advances relatively quickly.” Source: Scientists Are Pretty Terrified About These Last-Minute Fixes to Global Warming ; ; ;

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Scientists Are Pretty Terrified About These Last-Minute Fixes to Global Warming

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Fracking is definitely causing earthquakes, another study confirms

Fracking is definitely causing earthquakes, another study confirms

By on 7 Jan 2015commentsShare

Yet another study has found a link between hydraulic fracturing and earthquakes. This one examined 77 minor quakes near the Ohio-Pennsylvania border. The Pittsburgh Post-Gazette reports:

The sequence of seismic events, including a rare “felt” quake of a magnitude 3.0 on the Richter scale, was caused by active “fracking” on two nearby Hilcorp Energy Co. well pads, according to the research published online [Tuesday] in the Bulletin of the Seismological Society of America.

The study found that although it is rare for fracking associated with shale gas extraction to cause earthquakes large enough to be felt on the surface by humans, seismic monitoring advances have found the number of “felt and unfelt” earthquakes associated with fracking have increased over the past 10 years.

Studies have found that it’s not just the actual drilling and extraction that causes the earthquakes; more often, the routine practice of injecting fracking wastewater into deep disposal wells is to blame. Once the toxic mix of water, sand, and chemicals is underground, it can travel for miles, changing the pressure on fault lines and sometimes triggering earthquakes.

The practice has caused a surge in earthquakes in many areas where fracking is common. Oklahoma in particular has been hard-hit. Once a state where tremors were few and far between, Oklahoma in 2014 had 564 quakes that were at least of magnitude 3 — the most in the contiguous U.S.  From 1975 until 2008, the state had, on average, only three such quakes per year. From E&E EnergyWire:

The Sooner State was shaken by 564 quakes of magnitude 3 and larger, compared with only 100 in 2013, according to an EnergyWire analysis of federal earthquake data. California, which is twice the size of Oklahoma, had fewer than half as many quakes. …

“Who’d have ever thought we’d start having so many earthquakes out here in the middle of the country?” asked Max Hess, a county commissioner in Grant County, which had 135 quakes last year. He also thinks the quakes are related to oil and gas, which has been an economic boon for the rural county northwest of Oklahoma City.

“It’s been good,” Hess said of the drilling, “but it’s got its drawbacks.”

EnergyWire reports that many in Oklahoma’s oil and gas regions are cautiously tolerant of the earthquakes because of the money that comes with the drilling boom. But scientists in the state’s geological survey are concerned about the trend. “If my research takes me to the point where we determine the safest thing to do is to shut down injection — and consequently production — in large portions of the state, then that’s what we have to do,” seismologist Austin Holland told Bloomberg this summer.

Source:
Study: Fracking caused earthquakes in existing faults in Ohio

, Pittsburgh Post-Gazette.

Shaken more than 560 times, Okla. is top state for quakes in 2014

, E&E EnergyWire.

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Fracking is definitely causing earthquakes, another study confirms

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Empty study paves the way for fracking in California

Empty study paves the way for fracking in California

29 Aug 2014 5:10 PM

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Empty study paves the way for fracking in California

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Well, there you have it, ladies and gents: Fracking’s just fine! A study found no significant evidence to suggest that fracking and similar extraction techniques are harmful to the environment.

Energy companies poised to dig into California’s reserves are breathing a sigh of relief. The findings pave the way for the Bureau of Land Management to resume issuing oil and gas leases on federal land in California next year, following a temporary halt to the practice last year and the defeat of an attempted statewide moratorium on fracking this spring.

But here’s the catch: The study didn’t contain much information.

From the Los Angeles Times:

For example, the report found no evidence of water contamination from fracking in California, but the scientist directing the research, Jane Long, said researchers also had no data on the quality of water near fracking sites.

“We can only tell you what the data we could get says,” said Long, a former director at Lawrence Livermore National Laboratory. “We can’t tell you what we don’t know.”

Other unresolved issues, besides “the location, depth and quality of groundwater in oil- and gas-producing regions”: Any information about the toxicity of a third of the chemicals involved in fracking and whether or not plants or animals would be harmed by chronic exposure to those chemicals. Scientists behind the study had asked for more time, but the BLM had a seven-month timetable and wouldn’t budge.

BLM admits that this report doesn’t tell the whole story, and that — don’t worry — there will be more environmental impact studies done. They’ll just be done, you know, “as oil and gas development resumes.” Greeeeeeat.

Source:
Fracking report clears way for California oil, gas leasing to resume

, Los Angeles Times.

Feds to Resume Leasing for Fracking in California

, ABC News.

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Empty study paves the way for fracking in California

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Oklahoma Earthquakes & Fracking. Are They Related?

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Oklahoma Earthquakes & Fracking. Are They Related?

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Was the Los Angeles Earthquake Caused by Fracking Techniques?

Mother Jones

<!DOCTYPE html PUBLIC “-//W3C//DTD HTML 4.0 Transitional//EN” “http://www.w3.org/TR/REC-html40/loose.dtd”>

The epicenter of today’s L.A. quake was 8 miles from oil waste injection wells Kyle Ferrar, FracTracker Alliance

Was the 4.4-magnitude earthquake that rattled Los Angeles this morning caused by fracking methods? It’s hard to say, but what’s clear from the above map, made by Kyle Ferrar of the FracTracker Alliance, is that the quake’s epicenter was just eight miles from a disposal well where oil and gas wastewater is being injected underground at high pressure.

Don Drysdale, spokesman for the state agency that oversees California Geological Survey, told me that state seismologists don’t think that the injection well was close enough to make a difference (and the agency has also raised the possibility that Monday’s quake could have been a foreshock for a larger one). But environmental groups aren’t so sure.

In other states, injection wells located 7.5 miles from a fault have been shown to induce seismic activity, points out Andrew Grinberg, the oil and gas project manager for Clean Water Action. “We are not saying that this quake is a result of an injection,” he adds, “but with so many faults all over California, we need a better understanding of how, when, and where induced seismicity can occur with relation to injection.”

“Shaky Ground,” a new report from Clean Water Action, Earthworks, and the Center for Biological Diversity, argues that the close proximity of such wells to active faults could increase the state’s risk of earthquakes. According to the report, more than half of the state’s permitted oil wastewater injection wells are located less than 10 miles from an active fault, and 87 of them, or about 6 percent, are located within a mile of an active fault.

Scientists have long known that injecting large amounts of wastewater underground can cause earthquakes by increasing pressure and reducing friction along fault lines. One of the best known early examples took place in 1961, when the US Army disposed of millions of gallons of hazardous waste by injecting it 12,000 feet beneath the surface of the Rocky Mountain Arsenal near Denver, Colorado. The influx caused more than 1,500 earthquakes over a five year period in an area not known for seismic activity; the worst among them registered at more than 5.0 on the Richter scale and caused $500,000 in damage. Geologists later discovered that the Army well had been drilled into an unknown fault.

As Mother Jones‘ Michael Behar detailed in-depth last year, fracking is now a leading suspect for a spate of serious earthquakes in places that hardly ever see them, such as Oklahoma, where in 2011, a 5.7-magnitude temblor destroyed 14 homes and baffled seismologists.

“In some locations of the US, the disposal of wastewater associated with oil/gas production, including hydraulic fracturing operations, appears to have triggered some low-magnitude seismic activity,” concedes Drysdale, Geological Survey spokesman. But in California, he adds, oil companies are required to evaluate surrounding geology before disposing of wastewater underground, and can’t inject it at dangerously high pressures.

Yet Grinberg, a co-author of the “Shaky Ground” report, says that the existing regulations don’t go far enough now that quake-prone California is poised for a fracking boom. Though he’d like to see a moratorium on fracking while the risks are studied, he wants any eventual regulations to at least require seismic monitoring at or near injection wells and to look at the cumulative earthquake risk of entire oil fields.

Original source – 

Was the Los Angeles Earthquake Caused by Fracking Techniques?

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