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Fracking frenzy slows as oil and gas assets plummet in price

Fracking frenzy slows as oil and gas assets plummet in price

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Yes, we know this isn’t a fracking pump, but it’s way prettier.

You know that domestic oil-and-gas boom that’s been sweeping the country for the past few years, turning places like Williston, N.D., into Sin City? Well, the party’s winding down — or maybe it was never that ragin’ in the first place. Oil and gas shale assets, possibly overvalued to begin with, are plunging in price thanks to an oversaturated market and wells whose production hasn’t always lived up to expectations.

Bloomberg Businessweek reports:

The deal-making slump, which may last for years, threatens to slow oil and gas production growth as companies that built up debt during the rush for shale acreage can’t depend on asset sales to fund drilling programs. The decline has pushed acquisitions of North American energy assets in the first-half of the year to the lowest since 2004. …

North American oil and gas deals, including shale assets, plunged 52 percent to $26 billion in the first six months from $54 billion in the year-ago period, according to data compiled by Bloomberg. During the drilling frenzy of 2009 through 2012, energy companies spent more than $461 billion buying North American oil and gas properties, the data show.

Improvements in hydraulic fracturing (fracking) techniques in the early 2000s made drilling possible in previously inaccessible areas. As more frackable shale deposits were discovered, energy companies snapped up property. But the boom started backfiring:

As overseas buyers moved in, booming production soon led to oversupplies, and gas prices plunged to a 10-year low in 2012, forcing companies to write-down the value of some of their assets. Companies were also hurt when some fields thought to be rich in oil proved to contain less than anticipated.

Shell downgraded the value of its North American assets by $2 billion last quarter, and announced that it expects drilling here to remain unprofitable until at least next year. Companies are cutting off drilling in fields where it’s not worth it and selling off properties.

As Philip Bump pointed out in Gristmill earlier this year, what’s happening with fracking is kind of the same as what’s happening to the coal industry — but on a super compressed timeline (think 10 years, not 100). What seemed like a bonanza just four years ago is already struggling to deliver.

Claire Thompson is an editorial assistant at Grist.

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Fracking frenzy slows as oil and gas assets plummet in price

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From the Fire Hose: Arctic Methane, Scientists as Advocates, Vanishing Vaquita

A dip in the flow from the information fire hose snags updates on Arctic methane, fracking solutions and more. This article –  From the Fire Hose: Arctic Methane, Scientists as Advocates, Vanishing Vaquita ; ;Related ArticlesPolar Researchers Explain North Pole ‘Lake’Tesla Motors Earns $26 Million in the 2nd Quarter—Thanks to the GovernmentDot Earth Makes Time Magazine’s List of 25 Top Blogging Efforts ;

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From the Fire Hose: Arctic Methane, Scientists as Advocates, Vanishing Vaquita

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$100 million worth of natural gas goes up in flames every month in North Dakota

$100 million worth of natural gas goes up in flames every month in North Dakota

Tim Evanson

Gas flaring in North Dakota.

Amidst an oil and gas drilling boom in North Dakota, a new report suggests that nearly a third of the natural gas that’s being sucked out of the ground is being wasted — burned on site and flared away.

The practice of flaring — burning off natural gas instead of capturing and selling it — is so rampant in the state that it is clearly visible from space. Reuters reports:

Remote well locations, combined with historically low natural gas prices and the extensive time needed to develop pipeline networks, have fueled the controversial practice, commonly known as flaring. While oil can be stored in tanks indefinitely after drilling, natural gas must be immediately piped to a processing facility.

Flaring has tripled in the past three years, according to the report from Ceres, a nonprofit group that tracks environmental records of public companies.

“There’s a lot of shareholder value going up in flames due to flaring,” said Ryan Salmon, who wrote the report for Ceres. …

Roughly 29 percent of natural gas extracted in North Dakota was flared in May, down from an all-time high of 36 percent in September 2011. But the volume of natural gas produced has nearly tripled in that timeframe to about 900,000 million cubic feet per day, boosting flaring in the state to roughly 266,000 million cubic feet per day, according to North Dakota state and Ceres data.

Ceres estimates that the practice is costing shareholders $100 million a month in lost gas sales. Why would companies be willing to just burn away that potential revenue? Perhaps because the figure pales in comparison with the $2.2 billion they’re earning each month from crude oil production.

But forget about shareholder value. The flaring is polluting the air and the atmosphere without providing actual energy to anybody. If the natural gas is going to be extracted and burned, it might as well be put to some use.

Here’s a graph from the new report showing how much gas is being wasted in North Dakota:

CeresClick to embiggen.

Ceres warns that that the problem will continue to grow. From the new report [PDF]:

Ceres’ projections indicate that total flaring volumes will continue to rise above 2012 levels through 2020 unless the percentage of flaring is reduced from its current level to below 21 percent. Furthermore, even if the state’s goal of 10 percent flaring were achieved, total volumes of flared gas in 2020 would still exceed the amount flared in 2010.

Unfortunately, the most appealing solution for industry would be to lay more disaster-prone gas pipelines. Another option would be to build power plants closer to the gas fields. Of course, a third option, crazy though it may sound, would be to ease off from the whole oil and gas drilling thing.

Ceres

John Upton is a science fan and green news boffin who tweets, posts articles to Facebook, and blogs about ecology. He welcomes reader questions, tips, and incoherent rants: johnupton@gmail.com.

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$100 million worth of natural gas goes up in flames every month in North Dakota

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Illinois town bans stripping because of fracking

Illinois town bans stripping because of fracking

cobalt123

There will be no more of this in Fairfield.

It’s bad enough that the fracking boom is making it more difficult for Americans to breathe clean air, feel safe drinking their water, and stand on steady ground. Now the boom is preventing anybody in one Illinois town from dancing with their clothes off.

Fairfield, Ill. (population 5,000 and shrinking) is bracing for an influx of frackers, most of whom will be men from out of town. (Despite promises of jobs associated with fracking, fracked communities normally discover that most of the work goes to experienced hands who fly in from Texas and other industry hotspots.)

A city committee charged with preparing the town for fracking warned that it could create a market for strip clubs. So, acting on the advice of the committee, the Fairfield City Council unanimously passed an ordinance this week that prohibits nude, seminude, and exotic dancing. It doesn’t even matter whether the stripping is done for profit or if it’s, er, gratuitous. From the Evansville Courier & Press:

The ordinance makes it “illegal for any person, firm, corporation, partnership, limited liability company or any other entity to operate any kind of business which provides as a form of entertainment either gratuitously or at cost, nude, seminude or exotic dancers.”

The pre-emptive ordinance was drawn up after news accounts began surfacing about strip clubs popping up around the oil work camps in North Dakota, and a resulting increase in criminal activity.

Under the newly enacted Fairfield ordinance, anyone violating the law may be fined $5,000 for each day the violation exists.

Memo to any roughnecks headed to Fairfield for fracking jobs: Pack porn.

John Upton is a science fan and green news boffin who tweets, posts articles to Facebook, and blogs about ecology. He welcomes reader questions, tips, and incoherent rants: johnupton@gmail.com.

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Train explosion in Quebec stokes debate about oil transport

Train explosion in Quebec stokes debate about oil transport

Reuters/Mathieu BelangerA firefighter walks past a burning train at Lac-Mégantic, Quebec.

The latest disaster caused by the transport of oil across North America has wrecked the town of Lac-Mégantic in Quebec. A driverless train loaded with crude from the Bakken oil fields of North Dakota derailed and exploded early Saturday in the town’s center.

Dozens of buildings were leveled and at least five people were killed, while 40 more were still missing as of Monday morning. The fracked oil was en route to New Brunswick, which is home to the largest oil refinery in Canada. From Reuters:

The train, which did not have an engineer aboard when it derailed, was hauling 72 tanker cars of crude from North Dakota to eastern Canada. It rolled downhill from an overnight parking spot, gathered speed and derailed on a curve in the small town of Lac-Megantic at 1 a.m. on Saturday.

Each car carried 30,000 gallons of crude oil. Four caught fire and exploded in an orange and black fireball that mushroomed hundreds of feet into the air and flattened dozens of buildings, including a popular bar.

“It looks like a war zone here,” said Canadian Prime Minister Stephen Harper.

The disaster plunged the media into debate: Is it safer to move oil through underground pipelines (à la MayflowerKalamazoo, and Keystone XL), or to move it by rail?

Frackers and tar-sands miners are extracting record amounts of oil in America and Canada. Existing pipelines can’t carry the whopping bounty to refineries, so energy companies are seeking to lay lattices of new pipes. Meanwhile, the glut of liquid hydrocarbons is being loaded onto trains, which are being sent vast distances — and are triggering high-profile spills and accidents.

The Toronto Globe and Mail argues in the wake of the Lac-Mégantic disaster that “[p]ipelines are the safest way of transporting oil and natural gas, and we need more of them, without delay.” The New York Times considers the pipeline-vs.-train question more impartially, quoting environmental experts:

Edward Whittingham, the executive director of the Pembina Institute, an environmental group based in Calgary, Alberta, said there was not conclusive research weighing the safety of the two shipment methods.

“The best data I’ve seen indicates,” he said, “depending on your perspective, both are pretty much as safe as each other, or both are equally unsafe. There’s safety and environmental risks inherent in either approach.”

Accidents involving pipelines, Mr. Whittingham said, can be more difficult to detect and can release greater amounts of oil. Rail accidents are more frequent but generally release less oil.

But the comparison obfuscates an obvious reality: The oil can’t be moved safely at all. (Same goes for natural gas.)

After a string of pipeline and rail accidents in recent years, it’s clear that letting the energy industry move incendiary bulk fluids around the continent is like tossing a book of matches into the crib to keep little Johnny happy while his folks stare at the television. And that’s without even considering the climate impacts of the fossil-fuel mining binge, or the many hazards of fracking.

The weekend tragedy is a reminder that the energy industry can’t be trusted to do anything safely, let alone transport oil.

John Upton is a science fan and green news boffin who tweets, posts articles to Facebook, and blogs about ecology. He welcomes reader questions, tips, and incoherent rants: johnupton@gmail.com.

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FBI chases anti-GMO activists while ignoring Monsanto’s transgressions

FBI chases anti-GMO activists while ignoring Monsanto’s transgressions

Hot on the trail of the bad guys — depending on your definition of “bad.”

Some experimental GMO crops were torn out of a field in Oregon this month. That means it’s time for the federal government to freak the fuck out and do its best to clamp down again on eco-activism.

The sugar beet plants, which were genetically engineered by Syngenta to survive applications of the herbicide Roundup, were uprooted in the middle of the night from a couple of fields, presumably by anti-GMO activists. The destruction of the experimental crops occurred in the same state where a strain of Monsanto’s illegal herbicide-resistant wheat recently showed up in a farmer’s field, threatening America’s multibillion-dollar wheat export market.

Guess which crime the FBI is desperate to crack?

That’s right: The sugar beet one. The agency announced that it “considers this crime to be economic sabotage and a violation of federal law involving damage to commercial agricultural enterprises.” According to the FBI, a $10,000 reward is being offered for clues by Oregonians for Food and Shelter, a corporate forestry and agriculture group that lobbies for pro-GMO and pro-pesticide legislation.

The Oregonian reports that 1,000 genetically engineered sugar beet plants were uprooted from land leased by Syngenta on June 8:

Three nights later, the destruction continued on another property, where another 5,500 plants were ruined.

“It doesn’t look like a vehicle was used. It looks like people entered the field and destroyed the plants by hand,” said Paul Minehart, head of corporate communications in North America for Syngenta, a global agriculture corporation based in Basel, Switzerland.

Estimates for the damage were not specified but the financial losses are significant, according to FBI spokeswoman Beth Anne Steele.

Meanwhile, Monsanto is continuing to push its claim that its genetically engineered wheat turned up on an Oregon farm because of an act of sabotage. That claim is drawing skepticism from the expert whose tests first confirmed that the rogue wheat was developed by Monsanto. From a report in The Guardian:

While Monsanto’s chief technology officer suggested eco-activists were to blame, [Oregon State University weed sciences professor Carol] Mallory-Smith said deliberate contamination was the least likely scenario:

“The sabotage conspiracy theory is even harder for me to explain or think as logical because it would mean that someone had that seed and was holding that seed for 10 or 12 years and happened to put it on the right field to have it found, and identified. I don’t think that makes a lot of sense.”

We may learn more about the cause of the GMO wheat contamination after the U.S. Department of Agriculture completes an investigation.

But let’s get back to the sugar beets case. If you happen to know who uprooted those plants, The Oregonian has a request for you:

Ring the local offices of the FBI at (541) 773-2942 during normal business hours or call the FBI in Portland anytime at (503) 224-4181

Tips may also be emailed to portland@ic.fbi.gov.

Yeah, right.

John Upton is a science fan and green news boffin who tweets, posts articles to Facebook, and blogs about ecology. He welcomes reader questions, tips, and incoherent rants: johnupton@gmail.com.

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Bee-killing pesticide companies are pretending to save bees

Bee-killing pesticide companies are pretending to save bees

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Even as bees drop dead around the world after sucking down pesticide-laced nectar, pesticide makers are touting their investments in bee research.

Nearly a third of commercial honeybee colonies in U.S. were wiped out last year, for a complicated array of reasons, scientists say: disease, stress, poor nutrition, mite infestations, and — yes — pesticides. Neonicotinoid pesticides seem to be particularly damaging to bees, so much so that the European Union is moving to ban them (but the U.S. is not).

Now the two main manufacturers of neonicotinoids, Bayer CropScience and Syngenta, are promoting their commitments to bee health, as is agro-giant Monsanto. From a feature story in the St. Louis Post Dispatch:

Monsanto Co., which two years ago bought an Israeli bee research company, hosts an industry conference on bee health at its headquarters in Creve Coeur this month. Bayer CropScience is building a 5,500-square-foot “bee health center” in North Carolina, and with fellow chemical giant, Syngenta, has developed a “comprehensive action plan” for bee health.

“The beekeeping industry has always crawled on its hands and knees to USDA and universities, begging for help,” said Jerry Hayes, a bee industry veteran recently hired by Monsanto to run its bee research efforts. “Now we have this very large company involved that knows how important bees are to agriculture.”

With a very large company involved, the bees are as good as saved, right?

Not surprisingly, the industry is downplaying the role of insecticides in bee deaths.

For example, Iain Kelly of Bayer CropScience does a suspiciously incomplete job of explaining the scary plight of bees during an interview with North Carolina Public Radio about the company’s new bee research center:

Kelly … says other insects and diseases are invading much of the bee’s natural habitat.

“They have real problems now with pests and pathogens, including viruses and fungal diseases,” Kelly says.

“We’ve lost a lot of the natural foliage for them as well, which is a big concern to beekeepers.”

Yeah, we know, this is a multi-faceted problem. But what about the pesticides? More on that from the Post-Dispatch:

Published last year, a study by Purdue University found that dead bees that had foraged in and around corn fields contained high levels of neonicotinoid compounds. The study was prompted by massive bee die-offs that happened in the spring, when corn planters were spewing neonicotinoid-containing dust.

“I know, definitively, that there’s a relationship between treated seed and spring die-offs,” said Christian Krupke, the study’s lead author. “It (neonicotinoids) blows out behind the planter and gets in the air, it lands on dandelions. It lands on the bees, even.”

While Krupke says there’s no direct link between neonicotinoids and Colony Collapse Disorder, he said, “anything that’s a stressor to bees is a concern now. We know they’re weaker because of it.”

The industry, however, flatly denies any link between bee health and the neonicotinoids it produces.

“There’s no scientific evidence linking neonics with bee health — period,” said Dave Fischer, director of environmental toxicity and risk assessment at Bayer CropScience.

Perhaps pesticide makers are hoping their happy PR buzz will distract us from the missing buzz of these critical pollinators.

John Upton is a science fan and green news boffin who tweets, posts articles to Facebook, and blogs about ecology. He welcomes reader questions, tips, and incoherent rants: johnupton@gmail.com.

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NOAA weather-monitoring program hit by sequester cuts

NOAA weather-monitoring program hit by sequester cuts

NASA

COSMIC satellites. Sequester cuts could see the planned second generation of this weather-monitoring array axed.

The National Oceanic and Atmospheric Administration is trying to figure out how to meet sequester cuts demanded by Congress — without upsetting Congress by furloughing the agency’s weather forecasters.

One proposed solution might sound fine if you just want to know what the weather will be like tomorrow, but it’s not so fine if you care about improving the accuracy of such forecasts in the coming years.

An earlier proposal from NOAA that would have required employees of the National Weather Service to take some furlough days this year was recently nixed amid tornado-induced horror at the thought of meteorologists being kept away from work.

The agency’s new plan would see funds drained instead from the COSMIC-2 satellite program, the second phase planned in a joint U.S.-Taiwan project that aims to improve weather forecasting. From Politico:

“The beauty of this program is it generates an extraordinary amount of useful data and we don’t have to pay the whole freight,” said Clifford Mass, a professor of atmospheric sciences at the University of Washington.

“It is an extraordinary mistake to take away the money,” he told POLITICO. “This will be really controversial in the discipline.” …

A half-dozen COSMIC satellites — launched in cooperation with Taiwan — have been operating as a pilot program of sorts since 2006. COSMIC-2 seeks to build on this success by replacing the aging fleet with new satellites equipped with enhanced GPS receivers that are able to generate better quality data.

The estimated 10-year cost is $420 million, of which Taiwan would pay half. But getting off the ground in the NOAA budget has proven difficult.

And Politico points out that the sequester has already eaten into satellite programs designed to improve the accuracy of weather forecasts:

The March 1 sequester has already cut about $54 million from the Geostationary Operational Environmental Satellite (GOES-R), a package which hovers over North America and provides a steady stream of weather monitoring.

In an era of weird weather, this might not be such a smart idea.

John Upton is a science fan and green news boffin who tweets, posts articles to Facebook, and blogs about ecology. He welcomes reader questions, tips, and incoherent rants: johnupton@gmail.com.

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Monsanto is currently testing GMO wheat in two states

Monsanto is currently testing GMO wheat in two states

John Novotny

Last week, when the USDA announced that an unauthorized strain of GMO wheat was recently discovered on an Oregon farm, it was widely reported (by us, among others) that Monsanto had stopped field-testing its genetically modified wheat in 2005.

Now Bloomberg reports that the biotech giant actually resumed field tests of GMO wheat in 2011:

The world’s largest seed company planted 150 acres of wheat in Hawaii last year that was genetically modified to tolerate glyphosate weedkiller, which the company sells under the brand name Roundup, according to a Virginia Tech database administered by the U.S. Department of Agriculture. Another 300 acres of wheat engineered with Roundup tolerance and other traits are being tested in North Dakota this year.

Were these recent field trials linked to the outbreak of unwanted GMO wheat in Oregon? We don’t know that yet. Monsanto, which you may or may not choose to trust, told Bloomberg in an email that the Roundup Ready wheat in the new trials is “an entirely different event” than the escaped crop discovered in Oregon.

It’s weird to describe wheat as an “event,” instead of, oh, I don’t know, a “crop.” Seems like somebody is playing with words.

The company didn’t say whether the GMO wheat that it’s now growing in field trials is the same strain as the GMO wheat that showed up in Oregon. “The Roundup Ready wheat project that is the subject of the USDA report was previously discontinued,” Monsanto cryptically told Bloomberg.

Monsanto abandoned its previous Roundup Ready wheat trials in 2005, without securing government approval for the crop, at least in part because U.S. wheat farmers feared that a GMO strain could hurt exports. They were right. Exports have been hurt, even though the GMO strain was never OK’d or sold. Just imagine how much damage Monsanto could do to exports if it ever actually brings GMO wheat to market.

John Upton is a science fan and green news boffin who tweets, posts articles to Facebook, and blogs about ecology. He welcomes reader questions, tips, and incoherent rants: johnupton@gmail.com.

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North Pole wanders, thanks to climate change

North Pole wanders, thanks to climate change

ShutterstockTime to move the sign again.

As if the swelling number of kids in the world isn’t enough to keep him busy, Santa Claus is being forced to shift his home eight inches every year to keep up with climate change.

Assuming I’m getting this fable right, the jolly old dude who rose from the dead and ascended to the North Pole to construct a toy-building redoubt and a reindeer-based delivery system could consider himself one of the many refugees of the changing climate.

That’s according, more or less, to the findings of a new study published in the journal Geophysical Research Letters, which used satellite gravity measurements from the Gravity Recovery and Climate Experiment to monitor the recent meanderings of the precise location of the North Pole.

The North and South Poles are always shifting, influenced in part by the ceaseless redistribution of mass all around the Earth. And all that melting ice and all those rising seas had enough of an effect to swing the poleward shift in a new direction in 2005. The pole is now moving in the direction of Greenland by seven milliarcseconds per year — an angular measurement that lead author Jianli Chen says equates to movement of a little more than eight inches every year.

From the paper:

Space geodetic observations of polar motion show that around 2005, the average annual pole position began drifting towards the east, an abrupt departure from the drift direction seen over the past century. …

This study shows that accelerated ice melting, combined with resulted speed-up of sea level rise in recent years, is the dominant driving force of the observed east-bound drift of the mean pole position.

“Polar motion is driven by mass redistribution in the Earth system,” Chen, a scientist at the University of Texas’s Center for Space Research, told Grist. “The speed up of ice melting and sea level rise since around 2005 has played a major role driving the observed abrupt departure of the mean pole from its original long-term drifting direction.”

This is perhaps one of the most fascinating and least terrifying implications of global warming ever.

“You don’t need to worry about anything,” Chen said.

Except maybe all the melting ice and sea-level rise that’s triggering the change.

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