Category Archives: fossil fuels

Canada’s fatal addiction to oil revenues

Dawn Stover writes: My favorite gift of 2013 arrived in the mail a few days before Christmas: two cans of pure maple syrup made in Quebec by longtime friends, the Stevenson family. Printed on the metal cans is an image that instantly transports me back to my childhood in Canada: In a woodland scene, several men in plaid jackets pour sap from tapped sugar maple trees into buckets, and from there into a horse-drawn tank. Firewood is stacked alongside a red shanty, and steam rises from its roof. I can almost smell the sap boiling, and the scene conjures memories of Floyd Stevenson trickling hot syrup across a pan of fresh snow, and offering me a fork to taste the strands of sweet, frozen taffy.

In the eyes of a first-grader, Canada was a land of vast forests, deep snow, and crisp Macintosh apples. I knew that the nation that put a maple leaf on its flag wasn’t simply one big national park, but for many years afterward, Canada seemed to be a great green land where large carnivores still roamed, and key environmental protections remained intact.

In recent years, however, Canada’s conservative leaders—who are not so when it comes to conserving natural resources—have systematically trashed those protections. My Canadian friends tell me that many of their countrymen don’t even discuss climate change; it is considered unpatriotic to do so, now that Canada has hitched its economic sled to oil.

Oh, Canada. What happened to you, eh? Where is the “land glorious and free” described in your national anthem? Who is now standing “on guard for thee?” You have lost your true north.

The natural resources that Canada is increasingly tapping today are fossil fuels. Canada’s crude oil production has increased by about a third during the past decade, mostly because of tar sands development in Alberta. If the Obama administration approves the Keystone XL pipeline proposed by the energy company TransCanada, the conduit will extend from Alberta to the US Gulf Coast and open new markets for Canadian oil exports.

While environmental activists in the United States have focused on Keystone, though, another Canadian project has flown under the radar. A federal review panel recently approved plans for the Enbridge Northern Gateway Project, a new pipeline and port that would facilitate oil exports from Canada’s Pacific Coast to Asia. According to a report in InsideClimate News, “The goal is to double or triple tar sands output in the decades ahead, clearing the transportation bottlenecks that have depressed prices for tar sands crude, and getting Canada’s vast reserves onto more lucrative markets outside North America.” But while the government review panel assessed the climate impacts of building and operating the pipeline, it did not study the effects of the increased production that would result, saying that the latter was “beyond the scope of its review.”

Largely because of oil production, Canada is now expected to miss its target of reducing greenhouse gas emissions by 17 percent (below 2005 levels) by 2020, which it committed to under the 2009 Copenhagen Accord. A government report released in October showed that emissions decreased between 2005 and 2011 but have since risen, and that by the end of the decade they will be 20 percent higher than the target. Annual emissions attributed to the tar sands are forecast to grow from 34 million metric tons in 2005 to 101 million metric tons in 2020. Canada’s per-capita emissions are now only slightly less than in the United States and Saudi Arabia. [Continue reading…]

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Honduras and the dirty war fuelled by the West’s drive for clean energy

The Guardian reports: The west’s drive to reduce its carbon footprint cheaply is fuelling a dirty war in Honduras, where US-backed security forces are implicated in the murder, disappearance and intimidation of peasant farmers involved in land disputes with local palm oil magnates.

More than 100 people have been killed in the past four years, many assassinated by death squads operating with near impunity in the heavily militarised Bajo Aguán region, where 8,000 Honduran troops are deployed, according to activists.

Farmers’ leader Antonio Martínez, 28, is the latest victim of this conflict. His corpse was discovered, strangled, in November.

Peasant farmers say they are the victims of a campaign of terror by the police, army and private security guards working for palm oil companies since a coup in June 2009 ended land negotiations instigated by the deposed president, Manuel Zelaya.

Witnesses have implicated Honduran special forces and the 15th Battalion, which receives training and material support from the US, in dozens of human rights violations around the plantations of Bajo Aguán.

They say private security guards regularly patrol and train with the soldiers, and have even been given military uniforms and weapons for some operations.

The military denies the allegations, blaming the United Peasant Movement (Muca) for escalating violence in the region. Repeated requests for comment from the US embassy in Honduras failed to elicit a response.

The Bajo Aguán dispute dates back almost 20 years, to a World Bank-funded land modernisation programme. The farmers say thousands of hectares of land used for subsistence farming were fraudulently and coercively transferred to agribusinesses that grow African palms, which are lucratively exported to the west for biofuel, and are traded in the carbon credit market.

Since then, they have tried to reclaim the land using the courts, as well as roadblocks and illegal land occupations.

Zelaya launched an investigation to resolve the conflicts, but this came to an abrupt halt when he was toppled in a coup in 2009 that was backed by the business, political, military and church elites. [Continue reading…]

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Alberta tar sands operations encircled by expanding area of mercury pollution

ThinkProgress: Just one week after Al Jazeera discovered that regulatory responsibility for Alberta, Canada’s controversial tar sands would be handed over to a fossil-fuel funded corporation, federal scientists have found that the area’s viscous petroleum deposits are surrounded by a nearly 7,500-square-mile ring of mercury.

Canadian government scientists have found that levels of mercury — a potent neurotoxin which has been found to cause severe birth defects and brain damage — around the region’s vast tar sand operations are up to 16 times higher than regular levels for the region. The findings, presented by Environment Canada researcher Jane Kirk at an international toxicology conference, showed that the 7,500 miles contaminated are “currently impacted by airborne Hg (mercury) emissions originating from oilsands developments.”

The Canadian government touts Alberta’s oil sands as the third-largest proven crude oil reserve in the world, next to Saudi Arabia and Venezuela. The region’s heavy crude oil is mixed with clay, bitumen, and a good deal of sand — hence the name “oil sands.” This makes for a unique and energy-intensive extraction process that some scientists say produces three times the greenhouse gas emissions of conventionally produced oil. Environment Canada has said it expects production emissions from tar sands to hit 104 million tonnes of CO2 by 2020 under current expansion plans. [Continue reading…]

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The war on democracy

Nafeez Ahmed reports: A stunning new report compiles extensive evidence showing how some of the world’s largest corporations have partnered with private intelligence firms and government intelligence agencies to spy on activist and nonprofit groups. Environmental activism is a prominent though not exclusive focus of these activities.

The report by the Center for Corporate Policy (CCP) in Washington DC titled Spooky Business: Corporate Espionage against Nonprofit Organizations draws on a wide range of public record evidence, including lawsuits and journalistic investigations. It paints a disturbing picture of a global corporate espionage programme that is out of control, with possibly as much as one in four activists being private spies.

The report argues that a key precondition for corporate espionage is that the nonprofit in question:

“… impairs or at least threatens a company’s assets or image sufficiently.”

One of the groups that has been targeted the most, and by a range of different corporations, is Greenpeace. In the 1990s, Greenpeace was tracked by private security firm Beckett Brown International (BBI) on behalf of the world’s largest chlorine producer, Dow Chemical, due to the environmental organisation’s campaigning against the use of chlorine to manufacture paper and plastics. The spying included:

“… pilfering documents from trash bins, attempting to plant undercover operatives within groups, casing offices, collecting phone records of activists, and penetrating confidential meetings.”

Other Greenpeace offices in France and Europe were hacked and spied on by French private intelligence firms at the behest of Électricité de France, the world’s largest operator of nuclear power plants, 85% owned by the French government.

Oil companies Shell and BP had also reportedly hired Hackluyt, a private investigative firm with “close links” to MI6, to infiltrate Greenpeace by planting an agent who “posed as a left -wing sympathiser and film maker.” His mission was to “betray plans of Greenpeace’s activities against oil giants,” including gathering “information about the movements of the motor vessel Greenpeace in the north Atlantic.” [Continue reading…]

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Iran allowed some construction at key nuclear site under interim deal, U.S. says

The Associated Press and JTA report: The U.S. said Wednesday that Iran can undertake some construction work at a key nuclear facility as long as fuel isn’t produced and advances aren’t made on a planned heavy water reactor.

The Arak site was among the thorniest issues negotiators sought to resolve in last weekend’s nuclear agreement in Geneva.

The White House said afterward Iran wouldn’t advance its “activities” at Arak or progress toward plutonium production. It spelled out several more constraints.

Iranian Foreign Minister Mohammad Javad Zarif said Wednesday while his country was honoring the deal, construction on building projects would continue.

Iran opens contacts with major Western oil companies (Financial Times)

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Toxic lakes may emerge from Alberta’s tar-sand projects

Bloomberg News reports: Canada is blessed with 3 million lakes, more than any country on Earth — and it may soon start manufacturing new ones. They’re just not the kind that will attract anglers or tourists.

The oil sands industry is in the throes of a major expansion, powered by C$20 billion ($19 billion) a year in investments. Companies including Syncrude Canada Ltd., Royal Dutch Shell Plc and Exxon Mobil Corp. affiliate Imperial Oil Ltd. are running out of room to store the contaminated water that is a byproduct of the process used to turn bitumen — a highly viscous form of petroleum — into diesel and other fuels.

By 2022 they will be producing so much of the stuff that a month’s output of wastewater could turn an area the size of New York’s Central Park into a toxic reservoir 11 feet (3.4 meters) deep, according to the Pembina Institute, a nonprofit in Calgary that promotes sustainable energy.

To tackle the problem, energy companies have drawn up plans that would transform northern Alberta into the largest man-made lake district on Earth. [Continue reading…]

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Working around Keystone XL, Suncor Energy steps up oil production in Canada

The New York Times reports: Suncor Energy, Canada’s top petroleum producer, announced on Thursday that it would expand its oil production in 2014 by 10 percent in another sign that the Obama administration’s delay in approving the Keystone XL pipeline extension is not holding back growth in the western Canadian oil sands fields.

“We’re set for a strong year of continued production,” Suncor’s chief executive, Steven W. Williams, said. The company announced a capital spending program of $7.45 billion for 2014, $477 million more than it had forecast earlier this year.

Suncor, which is based in Calgary, produces oil and gas around Canada, and has operations in North Africa and the North Sea. But its oil sands operations are the main driver for the company. In the most recent quarter, its oil sands output rose 16 percent from the year before for a record of 396,000 barrels a day, nearly 20 percent of the country’s total oil sands production.

The company said it expected its oil sands production to increase again next year to 430,000 barrels a day.

Reports of increased production are coming even as Canadian oil executives are privately questioning whether the Obama administration will ever approve the Keystone XL pipeline, which it has been considering for more than two years.

The extension is intended to transport more than 800,000 barrels a day of oil sands output to refineries on the Gulf of Mexico coast, but environmentalists have made stopping the pipeline their top priority since emissions from oil sands production are higher than for most crude oils consumed in the United States.

But over the last several months, oil companies have sought to go around the dispute by announcing plans for three large rail loading terminals with the combined capacity of transporting 350,000 barrels a day.

The companies are poised to quadruple rail-loading capacity over the next few years to as many as 900,000 barrels a day, whether or not the Keystone pipeline is built. [Continue reading…]

It’s long been reported that rail transportation of oil was already making the construction of Keystone XL an issue of questionable relevance in relation to the environmental consequences of oil sands production, which makes me wonder why so much activist energy was focused on the pipeline. Was it simply because “stop the pipeline” is such an easy rallying-cry?

Ironically, the dangers posed by rail delivery of oil are probably far greater than those posed by Keystone XL as an accident in Alabama earlier this month made all too clear:

oil-spill

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Turkey, Iraqi Kurdistan clinch major energy pipeline deals

Reuters reports: Iraqi Kurdistan has finalized a comprehensive package of deals with Turkey to build multi-billion dollar oil and gas pipelines to ship the autonomous region’s rich hydrocarbon reserves to world markets, sources involved in talks said on November 6.

The deals, which could have important geo-political consequences for the Middle East, could see Kurdistan export some 2 million barrels per day (bpd) of oil to world markets and at least 10 billion cubic meters per year of gas to Turkey.

Such a relationship would have been unthinkable just a few years ago, when Ankara enjoyed strong ties with Iraq’s central Baghdad government and was deep in a decades-long fight with Kurdish militants on its own soil.

But Turkey imports almost all of its energy needs and growing demand means it faces a ballooning deficit, making the resources over its southeastern border hard to ignore.

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America’s diminishing dependence on Middle East oil will be short-lived

The New York Times reports: The boom in oil from shale formations in recent years has generated a lot of discussion that the United States could eventually return to energy self-sufficiency, but according to a report released Tuesday by the International Energy Agency, production of such oil in the United States and worldwide will provide only a temporary respite from reliance on the Middle East.

The agency’s annual World Energy Outlook, released in London, said the world oil picture was being remade by oil from shale, known as light tight oil, along with new sources like Canadian oil sands, deepwater production off Brazil and the liquids that are produced with new supplies of natural gas.

“But, by the mid-2020s, non-OPEC production starts to fall back and countries from the Middle East provide most of the increase in global supply,” the report said. A high market price for oil will help stimulate drilling for light tight oil, the report said, but the resource is finite, and the low-cost suppliers are in the Middle East.

“There is a huge growth in light tight oil, that it will peak around 2020, and then it will plateau,” said Maria van der Hoeven, executive director of the International Energy Agency. The agency was founded in response to the Arab oil embargo of 1973-74, by oil-importing nations.

The agency’s assessment of world supplies is consistent with an estimate by the United States Energy Department’s Energy Information Administration, which forecasts higher levels of American oil production from shale to continue until the late teens, and then slow rapidly.

“We expect the Middle East will come back and be a very important producer and exporter of oil, just because there are huge resources of low-cost light oil,” Ms. van der Hoeven said. “Light tight oil is not low-cost oil.” [Continue reading…]

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Reducing carbon emissions will require nuclear power

I’d like to live in a world where people prize culture and the environment more than their personal possessions; a world in which people are not afflicted by the disease of materialism; a world in which people do not strive for the false freedom of absolute autonomy but can see in mutual reliance, shared strength; a world which invests in people’s creative capacities while tempering their destructive propensities. In other words, a world so far removed from the one in which we live, that it’s extremely difficult to discern a path that might lead from here to there. And before that path gets found — if it ever does — we are much more likely to cause irreparable damage to the planet through our insatiable appetites.

Hitting the breaks on carbon emissions may, with the help of nuclear power, be a goal far easier to attain in the short run than the radical transformation of human values that will be necessary for long-term sustainability.

Rachel Pritzker writes: Last week a leaked draft of a report by the Intergovernmental Panel on Climate Change warned that climate change will have severe ramifications for the global food supply, making it harder for crops to survive and leading to rising food prices.

This report, scheduled for publication in March, provides the latest evidence of the dramatic impacts that the shifting climate is already beginning to have on the planet and on human societies.

Clearly, climate change is a global challenge unlike any other we face, which is why I, along with a small but growing number of progressives, support a unique and potentially surprising solution to it.

It is time for policymakers to recognize that nuclear power must be a robust part of our nation’s energy plan to reduce carbon emissions.

These may seem like strange words coming from a liberal whose family has been active in progressive politics, and who grew up on a Wisconsin goat farm in a home heated by wood fires. Like many of my fellow progressives, I care deeply about the environment and the future of our planet, which is precisely why I do not think we should be reflexively shutting the door on a technology that may be able to help address global climate change.

Energy production is the largest single contributor to global greenhouse gas emissions. Some people believe that we can solve climate change by reducing global energy demand and switching to solar, wind, and other renewable energy sources. But, as I’ve seen first hand in Latin America, people in the developing world are consuming an increasing amount of energy as they seek to live the modern lives that we in the West enjoy. As a result, studies show that energy demand is actually poised to triple, or even quadruple, over the next century.

As much as we might instinctively prefer renewable energy sources like solar and wind to meet this energy demand, last year solar provided a mere 0.1 percent of America’s electricity, while wind provided just 3.5 percent — and that is after at least $34 billion was funneled into clean energy projects from the Obama stimulus package.

Meanwhile, 19% of U.S. electricity comes from nuclear power plants; that number rises to 60% among clean energy sources.

We need all the help we can get from renewable energy, but it’s a risky bet that wind and solar alone will be able to provide 100% of America’s energy, let alone meet a global energy demand three times the size it is today. [Continue reading…]

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Chomsky slams Canada’s tar sands energy plans

The Guardian reports: Canada’s rush to exploit its tar sands and shale gas resources will destroy the environment “as fast as possible”, according to Noam Chomsky.

In an interview with the Guardian, the linguist and author criticised the energy policies of the Canadian government under Prime Minister Stephen Harper.

He said: “It means taking every drop of hydrocarbon out of the ground, whether it’s shale gas in New Brunswick or tar sands in Alberta and trying to destroy the environment as fast as possible, with barely a question raised about what the world will look like as a result.”

But indigenous peoples in Canada blocking fossil fuel developments are taking the lead in combatting climate change, he said. Chomsky highlighted indigenous opposition to the Alberta tar sands, the oil deposit that is Canada’s fastest growing source of carbon emissions and is slated for massive expansion despite attracting international criticism and protest.

“It is pretty ironic that the so-called ‘least advanced’ people are the ones taking the lead in trying to protect all of us, while the richest and most powerful among us are the ones who are trying to drive the society to destruction,” said Chomsky. [Continue reading…]

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Oil companies are sued for burning off natural gas

The New York Times reports: In the sharpest challenge yet to the surge in flaring of natural gas in the Bakken shale oil field, North Dakota mineral owners this week filed 10 class-action lawsuits seeking millions of dollars in lost royalties from some of the nation’s largest oil companies.

Roughly 1,500 fires burn above western North Dakota because of the deliberate burning of natural gas by companies rushing to drill for oil without having sufficient pipelines to transport their production. With cheap gas bubbling to the top with expensive oil, the companies do not have an economic incentive to build the necessary gas pipelines, so they flare the excess gas instead.

Flaring is environmentally less harmful than releasing raw natural gas into the atmosphere, but the flared gas still spews climate-warming carbon dioxide into the atmosphere. The quantities of gas burned are so large that the fires rising above wheat and sunflower fields look like a small city in NASA photographs taken from satellites.

Flared gas has nearly tripled in the last two years in North Dakota, with almost 30 percent of the output in the state burned at wells, producing emissions equivalent to more than two medium-size coal-fired power plants. [Continue reading…]

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The daily trauma that the BP Deepwater Horizon oil spill left behind

There are lots of problems with the term post-traumatic stress disorder — not merely that because of its common association with war, its prevalence among people unaffected by war tends to get overlooked.

The term itself is misleading in that it suggests an inability to recover from a traumatic event, whereas in reality, for individuals experiencing PTSD, the trauma is ongoing. It is much more of a present-traumatic stress disorder than post-traumatic.

Dahr Jamail reports: Most people believe only those who have experienced war can know post-traumatic stress disorder (PTSD). But those living in the impact zone of BP’s 2010 oil spill disaster in the Gulf of Mexico know differently.

John Gooding, a fisherman and resident of the coastal city of Pass Christian, Mississippi, began having health problems shortly after the disaster began. He became sicker with each passing month, and moved inland in an effort to escape continuing exposure to the chemicals after being diagnosed with toxic encephalitis.

He experiences seizures regularly, and two of his dogs even died of seizures from what he believes was chemical exposure.

“I’ve been married 25 years, and my wife and I’ve never had problems. But recently we’ve started having problems, mostly because of finances and my health,” Gooding told Al Jazeera.

“I can no longer work because of my physical sickness from the chemicals. My wife is struggling with depression, and is going through grief counselling due to having to deal with my ongoing health issues. Our savings is gone. Our retirement is gone. This has been a living hell and continues to be a nightmare.”

Gooding’s story is not uncommon among countless Gulf residents living in areas affected by the BP disaster.

“People are becoming more and more hopeless and feeling helpless,” Dr Arwen Podesta, a psychiatrist at Tulane University in New Orleans, told Al Jazeera back in August 2010. “They are feeling frantic and overwhelmed. There is already more PTSD and more problems with domestic violence, threats of suicide and alcohol and drugs.”

BP’s attempts to minimise the amount of compensation it pays to those affected is not helping to improve what now are chronic psychological, community, and personal impacts along the Gulf coast. [Continue reading…]

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Under Obama, U.S. leads the world in oil and gas production

Slate reports: The United States will pass Russia this year to lead the world in production of oil and natural gas, the U.S. Energy Information Administration reports.

America has been closing in on Russia since 2008 thanks to a boom in both oil and gas production, primarily on private lands. This year it’s on track to out-produce it by a substantial margin. Saudi Arabia is third overall and remains the world’s largest oil producer — though the United States may be on track to take that title as well.

“This is a remarkable turn of events,” the head of the EIA told the Wall Street Journal. “This is a new era of thinking about market conditions, and opportunities created by these conditions, that you wouldn’t in a million years have dreamed about.”

As recently as 2007, economists were writing things like, “the amount of oil produced in America each year has been on a path of inexorable decline now for two generations.” Turns out the path was exorable after all. All it took was a whole lot of fracking. [Continue reading…]

DeSmogBlog: What’s it like living in a small town that’s gone from rust belt farmland to fracking boomtown?

First, residents often say, there’s the traffic. Communities have been unexpectedly flooded with heavy tractor trailers that locals say turn 10 minute commutes into hour-long ordeals, choke back roads and decimate pavement so badly that in some areas, drilling companies are barred from entering until they agree to pay for road repairs. “The traffic here is horrendous,” Towanda, PA resident Joe Benjamin told NPR.

Others often describe the impacts on the social fabric – a “wild west” atmosphere that brings with it increased crime and public health problems.

But these reports have been largely anecdotal, with little to quantify how big these impacts are or how much of it is due to fracking. Until now.

A new report by Food and Water Watch examines the social impacts of fracking, comparing traffic, crime and sexually transmitted infections in rural Pennsylvania counties. Using a decade worth of county-level data, they compare the differences between counties with substantial fracking and without, and how these counties have changed over time, from before the boom until after it set in. [Continue reading…]

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Fracking our food supply

Food & Environment Reporting Network: Earlier this year, Michele Bamberger, an Ithaca veterinarian, and Robert Oswald, a professor of molecular medicine at Cornell’s College of Veterinary Medicine, published the first (and so far, only) peer-reviewed report to suggest a link between fracking and illness in food animals. The authors compiled case studies of twenty-four farmers in six shale-gas states whose livestock experienced neurological, reproductive and acute gastrointestinal problems. Exposed either accidentally or incidentally to fracking chemicals in the water or air, scores of animals have died. The death toll is insignificant when measured against the nation’s livestock population (some 97 million beef cattle go to market each year), but environmental advocates believe these animals constitute an early warning.

“They’re making their way into the food system, and it’s very worrisome to us,” Bamberger says. “They live in areas that have tested positive for air, water and soil contamination. Some of these chemicals could appear in milk and meat products made from these animals.”

In Louisiana, seventeen cows died after an hour’s exposure to spilled fracking fluid. (Most likely cause of death: respiratory failure.) In northern central Pennsylvania, 140 cattle were exposed to fracking wastewater when an impoundment was breached. Approximately seventy cows died; the remainder produced eleven calves, of which only three survived. In western Pennsylvania, an overflowing waste pit sent fracking chemicals into a pond and a pasture where pregnant cows grazed: half their calves were born dead. The following year’s production was sexually skewed, with ten females and two males, instead of the usual fifty-fifty or sixty-forty split.

In addition to the cases documented by Bamberger, hair testing of sick cattle that grazed around well pads in New Mexico found petroleum residues in fifty-four of fifty-six animals. In North Dakota, wind-borne fly ash, which is used to solidify the waste from drilling holes and contains heavy metals, settled over a farm: one cow, which either inhaled or ingested the caustic dust, died, and a stock pond was contaminated with arsenic at double the accepted level for drinking water.

Cattle that die on the farm don’t make it into the nation’s food system. (Though they’re often rendered to make animal feed for chickens and pigs—yet another cause for concern.) But herd mates that appear healthy, despite being exposed to the same compounds, do: farmers aren’t required to prove their livestock are free of fracking contaminants before middlemen purchase them. Bamberger and Oswald consider these animals sentinels for human health. “They’re outdoors all day long, so they’re constantly exposed to air, soil and groundwater, with no break to go to work or the supermarket,” Bamberger says. “And they have more frequent reproductive cycles, so we can see toxic effects much sooner than with humans.”

Fracking a single well requires up to 7 million gallons of water, plus an additional 400,000 gallons of additives, including lubricants, biocides, scale and rust inhibitors, solvents, foaming and defoaming agents, emulsifiers and de-emulsifiers, stabilizers and breakers. About 70 percent of the liquid that goes down a borehole eventually comes up—now further tainted with such deep-earth compounds as sodium, chloride, bromide, arsenic, barium, uranium, radium and radon. (These substances occur naturally, but many of them can cause illness if ingested or inhaled over time.) This super-salty “produced” water, or brine, can be stored on-site for reuse. Depending on state regulations, it can also be held in plastic-lined pits until it evaporates, is injected back into the earth, or gets hauled to municipal wastewater treatment plants, which aren’t designed to neutralize or sequester fracking chemicals (in other words, they’re discharged with effluent into nearby streams). [Continue reading…]

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Algeria to exploit controversial shale gas

AFP reports: Algeria, the world’s fourth-largest gas exporter, has decided to develop its shale gas potential, but experts fear this could cause severe environmental problems.

Officials say the country’s shale gas reserves are 600 trillion cubic feet (17 trillion cubic meters), or around four times greater than its current known gas reserves.

Algeria may be the world’s eighth-largest natural gas producer in 2011, according to the BP Statistical Review of Energy, but domestic consumption is surging. Official forecasts say that, from 2019, local demand will eat up all the country’s production.

At present, 50 years after it gained independence, the country remains almost totally dependent on hydrocarbons, which account for 90 percent of its exports.

So as long as it fails to diversify its export base, it has no alternative than to develop shale gas, an unconventional fossil fuel, to secure its energy future, experts say.

A new hydrocarbons bill, to be introduced in parliament in the coming weeks, encourages the exploration of unconventional gas and oil resources.

However, the effect on the environment of the production of shale gas is of great concern to ecologists.

Chems Eddine Chitour, director of fossil energy development at Algiers’ Ecole Polytechnique, is concerned that the method used for obtaining the fuel trapped in formations of shale rock could be geologically dangerous and also put a strain on the largely desert country’s water supplies. [Continue reading…]

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U.S. on track to become ‘the new Middle East’

The Associated Press reports: U.S. oil output is surging so fast that the United States could soon overtake Saudi Arabia as the world’s biggest producer.

Driven by high prices and new drilling methods, U.S. production of crude and other liquid hydrocarbons is on track to rise 7% this year to an average of 10.9 million barrels per day. This will be the fourth straight year of crude increases and the biggest single-year gain since 1951.

The boom has surprised even the experts.

“Five years ago, if I or anyone had predicted today’s production growth, people would have thought we were crazy,” says Jim Burkhard, head of oil markets research at IHS CERA, an energy consulting firm.

The Energy Department forecasts that U.S. production of crude and other liquid hydrocarbons, which includes biofuels, will average 11.4 million barrels per day next year. That would be a record for the U.S. and just below Saudi Arabia’s output of 11.6 million barrels. Citibank forecasts U.S. production could reach 13 million to 15 million barrels per day by 2020, helping to make North America “the new Middle East.”

Meanwhile Bloomberg reports: Mecca, which hosts millions of pilgrims a year visiting Islam’s most holy shrine, is working toward becoming the first city in Saudi Arabia to operate a utility-scale plant generating electricity from renewables.

The city on Jan. 5 plans to select from a group of at least 20 bidders competing to build and operate facilities producing 385 gigawatt-hours per year of power including 100 megawatts of solar capacity, said Mayor Osama al-Bar.

“No city in Saudi Arabia owns power-generation assets, and we want to be first city that owns power plants and hopefully the first in the Muslim world,” al-Bar said in an interview on Sept. 16 in the nation’s capital, Riyadh.

The plans are the latest indication that the desert kingdom is stepping up efforts to diversify its sources of energy as economic and population growth threaten to erode Saudi Arabia’s status as the world’s biggest oil exporter.

The central government is seeking $109 billion of investment for building a solar industry, aiming to get a third of Saudi Arabia’s power from the sun by 2032 compared with almost none now. The target is almost as much as the $136 billion invested worldwide in solar energy last year, according to Bloomberg New Energy Finance.

So, even while most Americans are finally waking up to the reality of global warming and Saudi Arabia is grappling with the challenge of breaking its dependence on oil, the United States is turning itself into a petro-state that wrecks the environment through fracking and tar sands oil extraction.

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