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Exxon’s Russia Partnerships Challenge US Energy Weapon Narrative

4:42 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

Exxon Logo

Is Exxon playing both sides in the “new cold war?”

In a long-awaited moment in a hotly contested zone currently occupied by the Russian military, Ukraine’s citizens living in the peninsula of Crimea voted overwhelmingly to become part of Russia.

Responding to the referendum, President Barack Obama and numerous U.S. officials rejected the results out of handand the Obama Administration has confirmed he will authorize economic sanctions against high-ranking Russian officials.

“As I told President Putin yesterday, the referendum in Crimea was a clear violation of Ukrainian constitutions and international law and it will not be recognized by the international community,” Obama said in a press briefing. “Today I am announcing a series of measures that will continue to increase the cost on Russia and those responsible for what is happening in Ukraine.”

But even before the vote and issuing of sanctions, numerous key U.S. officials hyped the need to expedite U.S. oil and gas exports to fend off Europe’s reliance on importing Russia’s gas bounty. In short, gas obtained via hydraulic fracturing (“fracking”) is increasingly seen as a “geopolitical tool” for U.S. power-brokers, as The New York Times explained.

Perhaps responding to the repeated calls to use gas as a “diplomatic tool,” the U.S. Department of Energy (DOE) recently announced it will sell 5 million barrels of oil from the seldom-tapped Strategic Petroleum Reserve. Both the White House and DOE deny the decision had anything to do with the situation in Ukraine.

Yet even as some say we are witnessing the beginning of a “new cold war,” few have discussed the ties binding major U.S. oil and gas companies with Russian state oil and gas companies.

The ties that bind, as well as other real logistical and economic issues complicate the narrative of exports as an “energy weapon.”

The situation in Ukraine is a simple one at face value, at least from an energy perspective.

“Control of resources and dependence on other countries is a central theme connecting the longstanding tension between Russia and Ukraine and potential actions taken by the rest of the world as the crisis escalates,” ThinkProgress explained in a recent article. “Ukraine is overwhelmingly dependent on Russia for natural gas, relying on its neighbor for 60 to 70 percent of its natural gas needs.”

At the same time, Europe also largely depends on Ukraine as a key thoroughfare for imports of Russian gas via pipelines.

“The country is crossed by a network of Soviet-era pipelines that carry Russian natural gas to many European Union member states and beyond; more than a quarter of the EU’s total gas needs were met by Russian gas, and some 80% of it came via Ukrainian pipelines,” explained The Guardian.

Given the circumstances, weaning EU countries off Russian gas seems a no-brainer at face value. Which is why it’s important to use the brain and look beneath the surface.

ExxonMobil and Rosneft

The U.S. and Russian oil and gas industries can best be described as “frenemies.” Case in point: the tight-knit relationship between U.S. multinational petrochemical giant ExxonMobil and Russian state-owned multinational petrochemical giant Rosneft.

ExxonMobil CEO Rex Tillerson sung praises about his company’s relationship with Rosneft during a June 2012 meeting with Vladimir Putin.

“I’m pleased that you were here to be part of the signing today, and very much appreciate the strong support and encouragement you have provided to our partnership,” said Tillerson. “[N]othing strengthens relationships between countries better than business enterprise.”

A year later, in June 2013, Putin awarded ExxonMobil an Order of Friendship. But what does the friendship entail?

In 2012, ExxonMobil and Rosneft signed an agreement ”to share technology and expertise” with one another. Some of the details:

In 2013, ExxonMobil and Rosneft announced a partnership to conquer the Arctic for oil and gas, creating the Arctic Research and Design Center for Continental Shelf Development.

ExxonMobil put down the first $200 million for the initial research and development work, while Rosneft threw down $250 million later. Officially, Rosneft owns 66.67 percent of the venture and ExxonMobil owns 33.33 percent.

“[S]taff will be located with the Rosneft and ExxonMobil joint venture teams in Moscow to promote resource efficiency and interaction between technical and management staffs,” explained a press release. “The [Arctic Research Center] initially will be staffed with experts from ExxonMobil and Rosneft.”

Also part of the 2013 deal, ExxonMobil gave Rosneft a 25 percent stake inAlaska’s Point Thomson natural gas field. Further, the two companies signed a Memorandum of Understanding to study the possibility of jointly building a LNG (liquefied natural gas) facility in the Russia’s far east.

Then at the end of 2013, ExxonMobil and Rosneft inked a deal to start a pilot project for tight oil reserves development in Western Siberia’s shale basins. Rosneft owns a 51 percent stake, ExxonMobil a 49 percent stake.

Tillerson recently said the ongoing events in Crimea and Ukraine at-large will have no expected impact on his company’s partnerships with Rosneft.

“There has been no impact on any of our plans or activities at this point, nor would I expect there to be any, barring governments taking steps that are beyond our control,” he said at the company’s recent annual meeting, as reported by The Wall Street Journal. “We don’t see any new challenges out of the current situation.”

“Not a U.S. Company”

In Steve Coll‘s book Private Empire: ExxonMobil and American Power, he documents that Lee Raymond — former CEO of ExxonMobil from 1993-2005 — was asked if his company would build more U.S. refineries to fend off gasoline shortages.

Raymond’s reply: “I’m not a U.S. company and I don’t make decisions based on what’s good for the U.S.”

So what does this all mean when looked at in aggregate?

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Gen. James Jones Didn’t Disclose Industry Ties Before Testimony at KXL Hearing

12:40 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

The U.S. Senate Foreign Relations Committee held a hearing today (March 13) on the U.S. State Department’s national interest determination for the northern half of the proposed TransCanada Keystone XL tar sands pipeline.

Four witnesses will testify: Keystone XL proponent Karen Alderman Harbert, the president and CEO of the U.S. Chamber of Commerce’s Institute for 21st Century Energy; retired NASA climatologist James Hansen, an adjunct professor at Columbia University’s Earth Institute and Keystone XL opponent; and Sierra Club Executive Director Michael Brune, another critic of the Keystone XL.

And then there’s James Jones. He’s set to testify on behalf of the pipeline, with his affiliation listed as President of Jones Group International. He won’t be testifying at the request of the committee’s Democrats, but rather its Republicans, even though he formerly served as national security adviser to President Barack Obama.

Described as offering ”high level advisory and consulting services in the areas of international energy policy,” Jones Group — which doesn’t list its clients — is far from Jones’ only career gig.

DeSmogBlog investigation has revealed Jones has several oil and gas industry ties that weren’t disclosed to the Senate Foreign Relations Committee before the hearing.

Among other ties, BuzzFeed recently revealed Jones currently serves as a consultant for the American Petroleum Institute (API), which has spent over $22 million lobbying on behalf of Keystone XL since 2008. Environmental Resources Management, Inc. (ERM Group) — the contractor chosen by the State Department to conduct the environmental review for the pipeline — is an API member.

Friends of the Earth made a public call to Jones to reveal his client list ahead of his Senate testimony.

“Our representatives in Congress have a right to learn all of the pertinent facts about the Keystone XL pipeline unfiltered by corporate special interests,” reads the letter. “Disclosing all relevant payments from interests advocating for or against the pipeline will help our representatives decide how to balance the competing information they are sure to receive.”

Below are some of Jones’ clients, revealed by a DeSmogBlog investigation.

U.S. Chamber of Commerce and Chevron

Prior to joining President Obama’s  team as national security adviser in 2008, Jones served as the President and CEO of the U.S. Chamber of Commerce’s Institute for 21st Century Energy, a position he held since March 2007.

According to a January 2014 U.S. Chamber conference call, Jones met Chamber CEO Tom Donohue at the World Economic Forum in Davos, Switzerland in February 2007. That’s where the two first talked about the idea of creating the institute.

During his time heading the institute, Jones earned $900,000. Jones also simultaneously served on Chevron’s Board of Directors from May - December 2008, earning $290,000.

After serving as President Obama’s national security advisor for just under two years — stepping down in October 2010 from what Democracy Now! host Amy Goodman called “Chevron in the White House“ — Jones picked up where he left off and became a U.S. Chamber of Commerce Fellow, a position he still holds today.

Jones is now intricately involved in the Chamber’s “Energy Works for U.S.” campaign launched in January 2014. The campaign’s policy platform includes endorsement of the Alberta tar sands expansion and Keystone XL as a vehicle through which to bring tar sands to market.

Some of the Chamber Board of Directors‘ members are oil and gas company executives, including representatives of ConocoPhillips and Phillips 66. The New York Times revealed Chevron is a Chamber member in an October 2010 article.

Chevron gave Senate Foreign Relations Committee members $25,000 for the 2012 elections.

Atlantic Council

While sitting as CEO and President of the Institute for 21st Century Energy, Jonesconcurrently served as Chairman of the Atlantic Council from 2007-2009, a position he held until becoming President Obama’s National Security Adviser. He now sits as the Founding Chairman of the Council’s Brent Scowcroft Center on International Security.

The Council has a domestic oil and gas industry corporate membership list that includes Chevron, General Electric, ConocoPhillips, ExxonMobil and a foreign oil and gas industry corporate membership list including BP, Eni, Shell, Setgaz, Trans Adriatic Pipeline, Oil Terminal SA, Nabucco and Transgaz, among others.

Van Scoyoc Associates

Jones also serves an adviser for the powerful lobbying firm Van Scoyoc Associates, a position he was named to in July 2011. National Journal explained Jones will provide Van Scoyoc with “advice relating to client-service improvements, market trends, and strategic planning.”

Read the rest of this entry →

Big Oil PR Pros, Lobbyists Dominate EDF Fracking Climate Study Steering Committee

9:35 am in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

Norman Hackerman Building, University of Texas

Alongside releasing its controversial findings on fugitive methane emissions caused by hydraulic fracturing (“fracking”) on September 16, University of Texas-Austin also unveiled an industry-stacked Steering Committee roster for the study it conducted in concert with Environmental Defense Fund (EDF).

Stacked with former and current oil industry lobbyists, policy professionals and business executives, the Steering Committee is proof positive of the conflicts of interest evident in the roster of people and funding behind the “frackademia” study.

Only two out of the 11 members of the Steering Committee besides lead author and UT-Austin Professor David Allen have a science background relevant to onshore fracking.

That study found fugitive methane emissions at the well pad to be 2%-4% lower than discovered by the non-industry funded groundbreaking April 2011 Cornell University study co-authored by Anthony Ingraffea and Robert Howarth.

The Cornell study concluded fracking is worse for the climate than coal combustion when measured over its entire lifecycle.

Webster’s Dictionary defines a Steering Committee as “a committee, especially of a deliberative or legislative body, that prepares the agenda of a session.”

In the case of the EDF study – based on the oddly rosy findings – it seems plausible the industry-stacked Committee drove the report in a direction beneficial to oil industry profits rather than science.

Steering Committee: PR Pros, Lobbyists, Policy Wonks

The following is a list of Steering Committee members working for Big Oil.

1.) Ted Wurfel, Health, Safety, Environment and Operational Integrity Manager for Talisman Energy: Wurfel is one of two Steering Committee members besides lead author Allen with a science degree relevant to onshore drilling, with an engineering academic background, according to LinkedIn.

He’s also a registered lobbyist in Pennsylvania - a state located in the heart of theMarcellus Shale basin – and formerly lobbied for Chief Oil and Gas.

2.) Paul Krishna, Manager of Environmental, Health & Safety Issues at ExxonMobil/XTO Energy: Krishna is the other Steering Committee member with a science degree relevant to onshore drilling, with an undergraduate degree in geology and a masters in geosciences.

3.) David McBride, Vice President of Environmental and Human Services at Anadarko Petroleum: McBride earned a degree in Marine Biology before going to law school and pursuing his career in the oil industry.

4.) Jeffrey Kupfer works as a non-registered lobbyist for Chevron – officially titled a “Senior Advisor for Government Affairs.” Kupfer sits on the Executive Board of the Marcellus Shale Coalition, the industry’s lobbying arm in Pennsylvania.

He sits on Pennsylvania Republican Gov. Tom Corbett’s industry-stacked Marcellus Shale Advisory Commission alongside one of the industry’s first “frackademics,”Terry Engelder of Penn State University.

Kupfer also sits on Maryland’s Marcellus Shale Safe Drilling Initiative Advisory Commission.

Prior to working for Chevron, Kupfer passed through the government-industry revolving door and worked as Deputy U.S. Secretary of State for President George W. Bush from 2006-2009 under former Secretary of State Condoleezza Rice. He also spent time as the State Department’s Chief Operating Officer under Rice.

Chevron is one of the dues-paying members of the Center for Sustainable Shale Development - described as the “Big Green Fracking Machine” by Public Accountability Initiative - alongside EDF.

5.) Dick Francis serves as Manager of Regulatory Policy for Shell Oil, anotherdues-paying member of the Center for Sustainable Shale Development.

6.) James Bolander serves as Senior Vice President Resource Development for Southwestern Energy.

7.) Susan Spratlen serves as head of Communications at Pioneer Resources and has an accounting undergraduate academic background.

8.) David Keane is BG Group’s Vice President of Policy and Corporate Affairs and has a business school academic background.

Keane testified on behalf of the Alaska Gas Pipeline (now known as the South Central LNG project) - co-owned by Transcanada, ExxonMobil, BP and ConocoPhillips - in front of the Alaska state legislature in February 2008.

He also serves on the Board of Directors of Center for Liquefied Natural Gas.

9.) Jill Cooper serves as Group Lead for the US Division of the Environment for Encana. Her academic background is in environmental law and she also has a masters in business.

Steering Off the Climate Cliff?

EDF’s study has already won praise from the American Petroleum InstituteEnergy in Depthindustry-funded propaganda film “FrackNation,” and the right-wing news website founded by Glenn Beck, The Blaze.

Greenpeace USA Executive Director Phil Radford’s worst case scenario has come true.

“At worst, [the study] will be used as PR by the natural gas industry to promote their pollution,” Radford wrote soon after the study’s release.

“In fact, methane is 105 times more powerful than carbon pollution as a global warming pollutant [during its first 20 years in the atmosphere], so figuring out its real climate impacts has very real consequences for us going forward.”

This raises the key question: could the Steering Committee’s agenda steer us all off the climate cliff? Read the rest of this entry →

“Frackademia” By Law: Section 999 of the Energy Policy Act of 2005 Exposed

3:41 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

With the school year starting for many this week, it’s another year of academia for professors across the United States — and another year of “frackademia” for an increasingly large swath of “frackademics” under federal law.

“Frackademia” is best defined as flawed but seemingly legitimate science and economic studies on the controversial oil and gas horizontal drilling process known as hydraulic fracturing (“fracking”), but done with industry funding and/or industry-tied academics (“frackademics”).

While the “frackademia” phenomenon has received much media coverage, a critical piece missing from the discussion is the role played by Section 999 of the Energy Policy Act of 2005. Although merely ten pages out of the massive 551-page bill, Section 999 created the U.S. Department of Energy-run Research Partnership to Secure Energy for America (RPSEA), a “non-profit corporation formed by a consortium of premier U.S. energy research universities, industry and independent research organizations.”

Under the Energy Policy Act of 2005, RPSEA receives $1 billion of funding – $100 million per year – between 2007 and 2016. On top of that, Section 999 creates an “Oil and Gas Lease Income” fund “from any Federal royalties, rents, and bonuses derived from Federal onshore and offshore oil and gas leases.” The federal government put $50 million in the latter pot to get the ball rolling.

The Energy Policy Act of 2005′s ”Halliburton Loophole” — which created an enforcement exemption from the Clean Water Act and the Safe Drinking Water Act for fracking, and made the chemicals found within fracking fluid a “trade secret” — is by far the bill’s most notorious legacy for close followers of fracking.

These provisions were helped along by then-Vice President Dick Cheney’s Energy Policy Task Force, which entailed countless meetings between Big Oil lobbyists and executives and members of President George W. Bush’s cabinet. Together, these lobbyists and appointees hammered out the details behind closed doors of what became the Energy Policy Act of 2005, a bill receiving a “yes” vote by then-U.S. Sen. Barack Obama.

Meanwhile, almost no focus – comparatively speaking – has gone into scrutinizing Section 999, which subsidizes biased pro-industry studies for a decade and in turn, further legitimizes unfettered fracking nationwide.

Speaking at an industry public relations conference in Houston, TX in 2011 - the same conference in which it was revealed the shale gas industry is using psychological warfare tactics on U.S. citizens and recommending the military’s “Counterinsurgency Field Manual” for “dealing with an insurgency” of Americans concerned about fracking – S. Dennis Holbrook of Independent Oil and Gas Association of New York stated that it’s crucial for industry to “seek out academic studies and champion with universities—because that again provides tremendous credibility to the overall process.”

Section 999: In Service to Big Oil

RPSEA’s “FAQ” section makes its raison d’être crystal clear.

“The objective of RPSEA is to leverage research dollars along with the technical expertise and experience of RPSEA Members to conduct industry led research and development work to help commercialize domestic…Unconventional Onshore Hydrocarbon Resources,” RPSEA’s website explains. “RPSEA will focus on innovative technologies to reduce the costs of production, expand and extend the nation’s hydrocarbon resource base…” Read the rest of this entry →

Keystone XL Scandal: Obama Attorney’s Law Firm Represents TransCanada’s Pipeline in Alaska

11:30 am in Uncategorized by Steve Horn

Bob Bauer

Obama Attorney Robert Bauer works for TransCanada’s law firm.

DeSmogBlog investigation reveals that Robert Bauer, former White House Counsel and President Barack Obama’s personal attorney, works at the corporate law firm Perkins Coie LLP, which does legal work for TransCanada’s South Central LNG Project, formerly known as Alaska Gas Pipeline Project.

Furthermore, Dan Sullivan, current Commissioner of Alaska’s Department of Natural Resources, and former Alaska Attorney General and former Assistant Secretary of State in the Bush Administration, is a former Perkins attorney.

These findings come in the immediate aftermath of a recent investigation revealing the contractor hired by Obama’s U.S. State Department to do the Supplemental Environmental Impact Statement (SEIS) for the northern half of TransCanada’s Keystone XL tar sands export pipeline - Environmental Resources Management, Inc. (ERM Group) - lied on its June 2012 conflict-of interest filing. ERM Group checked the box on the form saying it had no current business ties to TransCanada.

In fact, ERM - a member of the American Petroleum Institute (API), which has spent over $22 million lobbying on tar sands and Keystone XL since 2008 - does maintain business ties to TransCanada, the investigation revealed. This includes an ongoing consulting relationship with South Central LNG, co-owned by TransCanada, ExxonMobil, BP and ConocoPhillips.

Under 18 USC § 1001, making a “materially false, fictitious, or fraudulent statement or representation…[to the] executive, legislative, or judicial branch of the Government of the United States” is a crime punishable by up to five years in jail.

On top of his job at Perkins Coie, Bauer – a well-known architect of bending campaign finance law to allow more corporate money to flood into electoral races – served as general counsel to President Obama’s 2012 reelection campaign. He also serves as general counsel to the Democratic National Committee and did electoral law work for John Kerry’s 2004 presidential campaign.

His wife, Anita Dunn is the co-owner of SDKnickerbocker, former Obama Communications Director, senior advisor for Obama’s 2012 re-election campaign and is the former communications director for the Democratic Senatorial Campaign Committee under then-Senator Kerry. She’s met with top Obama administration officials more than 100 times since leaving in 2009, according to a recent New York Times investigation.

Dunn currently does public relations work on behalf of TransCanada and freight rail industry lobbying group, American Association of Railroads (AAR). The tar sands pipeline boom comes alongside a freight rail boom to carry tar sands crude and fracked oil from North Dakota’s Bakken Shale.

“ERM lied on its conflict of interest disclosure form, and State was either asleep at the wheel or chose to look the other way,” FOE’s Ross Hammond told The Washington Post in a recent piece commenting on ERM’s “Pinocchio moment.”

Given the myriad ties that bind, “looking the other way” appears more plausible.

Perkins Coie’s Legal Bidding for Democrats, TransCanada AK Gas Pipeline Project

Perkins Coie is a global firm with 19 offices worldwide and maintains close ties to the Democratic Party above and beyond Bob Bauer.

Bauer’s colleague Mark Ellis, for example, does legal work on behalf of the “Democratic Senatorial Campaign Committee, the Democratic Congressional Campaign Committee, the Democratic Governors Associations and numerous U.S. senators and representatives and their campaigns,” according to his Perkins Coie biography.

The Oil and Gas legal work portion of Perkins’ website highlights its legal work in Alaska.

“In Alaska, our lawyers have long represented leading oil and gas companies on the North Slope and the Cook Inlet…We are extensively involved in efforts to develop the Point Thomson field and commercialize Alaska’s natural gas resources with a pipeline to Lower 48 markets.”

The “efforts to…commercialize Alaska’s natural gas resources with a pipeline to Lower 48 markets” that Perkins’ website refers to is the South Central LNG Project co-owned by TransCanada.

map on the original Alaska Gas Pipeline Project website depicts the route: 

“The project is designed to connect Alaska’s North Slope natural gas resources to new markets and deliver a reliable and secure source of clean burning energy for decades to come,” explain TransCanada and ExxonMobil on the original Alaska Gas Pipeline Project website. “TransCanada and ExxonMobil have the expertise, experience, and financial capability to develop what would be one of the largest privately funded energy projects in the history of North America.”

Before providing legal aide to South Central LNG, Perkins helped the Trans-Alaska Pipeline System (TAPS) - co-owned by Koch Industries, ExxonMobil, BP, ConocoPhillips and Chevron and often referred to as the Alyeska Pipeline - get up and running. TAPS takes oil from the Alaska North Slope to the Valdez Marine Terminal, home of the Exxon Valdez spill.

Perkins’ legal aide, in fact, made TAPS a reality according to an interview appearing online with Perkins’ veteran attorney Guy Martin. Martin was instrumental in opening Perkins’ office focusing on Alaska in Washington DC.

Read the rest of this entry →

Frackademia: University of Tennessee Set to Lease Forest For Fracking, Enriching Governor’s Family

3:34 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

Gov. Bill Haslam

8,600 acres of the Cumberland Forest owned by University of Tennessee-Knoxville will be leased off to the oil and gas industry this August in a new form of “frackademia” – and one of the top financial beneficiaries will be the family of Republican Gov. Bill Haslam, who sits on UT-Knoxville’s Board of Trustees.

“Frackademia” is usually thought of as “studies” conducted by university-based “frackademic” researchers and funded by Big Oil, the old “Tobacco Playbook” in action. But UT-Knoxville has taken the game to a whole new level, leasing off land it owns so that it can study “best practices” for fracking in the Volunteer State.

“It would create a rare, controlled environment in which experts could study the environmental impact of the controversial drilling technique, while also generating revenue to finance research,” explained a New York Times article on the proposal.

The deal with the oil and gas industry for the acerage includes an initial fee of $300,000, plus $300,000 per year, 15-percent royalties on any gas sold and aminimum of $35 per acre paid to UT-Knoxville.

The 8,600 acres sits within the Chattanooga Shale basin, a field still untapped by the industry via hydraulic fracturing (“fracking”), the toxic horizontal drilling process through which oil and gas is obtained from shale rock basins. Atlas Energy – purchased as a subsidiary by Chevron in Nov. 2010 - owns 105,000 acres in the Chattanooga, a clear example the industry has its cross-hairs on the untapped Chattanooga basin.

UT-Knoxville’s new “leasing agency” program will be run under the auspices of the university’s Institute of Agriculture, officially referred to as the UT Institute of Agriculture Gas and Oil Research Initiative and a pre-bid proposal conference for prospective industry partners is set for June 21. Leases will be five years long, with a maximum allowance of three renewals, or 20 years total.

Fracking could become a major source of revenue for UT-Knoxville during a time of severe budget cuts to the UT System. In 2010, the state government slashed $56 million from the UT-Knoxville budget, following another $75 million in budget cuts in 2009 for the UT System at-large.

And one of the top beneficiaries of the fracking frenzy – overlooked thus far – will be the powerful Haslam family.

Haslam Family: Leveraging UT-Knoxville Ties for Fracking Profits

Gov. Haslam, the former Mayor of Knoxville, took $398,110 from the oil and gas industry before his Nov. 2010 gubernatorial race victory.

The Haslam family is an oil and gas family through and through, standing to profit immensely from a fracking boom in Tennessee and nationwide.

In 2012, the Haslam family – owners of Pilot Flying J truck fueling stations, a corporation where Bill Haslem used to serve as president - purchased Western Petroleum and Maxum Petroleum. Both Western and Maxum are major suppliers of fuel and lubricants for fracking operations. Pilot Flying J is the nation’s No. 1 retailer of diesel fuel and is the 6th most profitable corporation in the U.S., earning over $29 billion in 2012.

Pilot Flying J also has 63 of its stations nationwide retrofitted with natural gas pumpsfor 18-wheelers owned by T. Boone Pickens‘ Clean Energy Fuels Corporation (CEF) as part of CEF’s “America’s Natural Gas Highway.” Some perspective: CEF currently has 67 U.S. fueling stations in total.

By the end of 2013 - an article in EcoWatch explains - Pilot Flying J ”plan[s] to have 100 truck stops capable of fueling 18-wheelers with … natural gas.”

Read the rest of this entry →

“Frackademia” Strikes Again at USC with “Powering California” Study Release

7:35 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

Frackademia” – shorthand for bogus science, economics and other research results paid for by the oil and gas industry and often conducted by “frackademics” with direct ties to the oil and gas industry – has struck again in California.

It comes in the form of a major University of Southern California (USC) report on the potential economic impacts of a hydraulic fracturing (“fracking”) boom in California’sMonterey Shale basin that’s hot off the presses, “Powering California: The Monterey Shale and California’s Economic Future.”

California Democratic Gov. Jerry Brown recently gave his cautious support to fracking, the toxic process via which oil and gas embedded deep within shale rock basins made famous by the documentary film “Gasland,” currently a topic of contention in California. The new report gleefully says we could be witnessing 1849 all over again, the second-coming of a “Gold Rush,” a term the co-authors utilize 9 times in the Preface.

The report, co-authored by a Los Angeles-based public relations firm, The Communications Institute (TCI), concludes that “development of the 1,750-square-mile formation in central California could generate half a million new jobs by 2015 and 2.8 million by 2020,” as reported by The Los Angeles Times, which blared the headline, “Tapping California shale oil could add millions of jobs, study says.”

Given California’s population of 37,683,933 people, this would mean 7.4 percent of the state’s citizens can gain employment and economic uplift from the industry. It would also shrink the 20.3-percent unemployment rate in the Golden State down drastically, to 12.9 percent.

“The Monterey shale would help stimulate the California economy to a significant extent,” USC professor and co-author Adam Rose told The Times. “It’s not just a benefit to the oil industry. These impacts ripple throughout the economy.”

While a nice sentiment, the age-old questions quickly arise: who are the authors and who funded this study?

The answers to these questions, a DeSmogBlog investigation has revealed, paints an entirely different picture of the report’s findings and how it came to such rosy conclusions.

Study Funded by Big Oil, Co-Author’s Industry Connections Tell the Story

Off the bat, the report acknowledges financial support – though failing to disclose how much funding - from the Western States Petroleum Asssociation (WSPA). WSPA, “the oldest petroleum industry trade association in the United States,” has a membership list that includes Chevron, ExxonMobil, Occidental Oil and Gas Corporation and Shell, to name several. All of these corporations are actively involved in exploration and prospective production of the Monterey Shale.

Just as importantly, one of the co-authors of the “study” - Fred Aminzadeh - is currently an oil and gas industry employee.

Aminzadeh serves as a Research Professor and Executive Director at USC’s Global Energy Network (GEN) and Executive Director of USC’s Reservoir Monitoring Consortium (RMC) and worked in various technical and management positions at Unocal – purchased by Chevron in 2005 - for 17 years.

GEN, credited as one of the report’s lead conductors, does not list its funders, but given the steep membership fee - ranging between $25,000-$500,000 per year - one can safely guess that at least some of its funding comes from the deep pockets of the oil and gas industry. In fact, BP America, ExxonMobil, Chevron, Anadarko and General Electric all have members sitting on GEN’s Advisory Board.

GEN, according to its website, pays The Communications Institute to do PR work on its behalf, and TCI registered the website the report was originally set to be published on, poweringcalifornia.org. In essence, this piece of the puzzle serves as Exhibit A of this study serving moreso as industry PR salesmanship than as legitimate scholarship.

RMC also does not list its funders, but its personnel, like GEN, are also directly tied to the oil and gas industry. All three members of its Technical Advisory Board have industry jobs. Andrei Popa works for Chevron; Kurt Strack is the President of KMS Technologies, an oil services corporation whose clients include BP, Chevron, ConocoPhillips, Shell and Saudi Aramco; and Wang Shangxu is a professor at the China University of Petroleum.

Prior to coming to USC and after his Unocal stint, Aminzadeh was the CEO of dGB Earth Sciences USA, self-described as a firm that offers ”innovative seismic interpretation solutions to the oil and gas industry.”

Though he conveniently leaves it out of the biography he included in the report, Aminzadeh, alongside the paycheck he earns at USC, also serves as Founderand President of FACT-Corp. FACT is a global oil and gas industry consultancy firm whose technology partners include dGB Earth Sciences, where he used to be the CEO, as well as clients such as Chevron, BP, Saudi Aramco and Eni.

Aminzadeh is also Chairman of the Advisory Board of both Western Standard Energy Corp. and is also on the Advisory Board of Saratoga Resources and formely served on the DOE Unconventional Resources Technology Advisory Committee from 2007-2008, right as the fracking boom was beginning in the U.S.

The latter committee was created under the dictates of the Energy Policy Act of 2005in Sec. 999, which calls for the DOE to work with oil and gas industry stakeholders to “carry out a program of research, development, demonstration, and commercial application of technologies for…onshore unconventional natural gas.”

John Martin – former head of the now-shuttered SUNY Buffalo Shale Resources and Society Institute (SRSI), peer reviewer of the Inglewood Oil Field environmental impact assessment (done by the same contractor the Obama State Department used for the first TransCanada Keystone XL environmental review, Cardno Entrix) that concluded fracking in Los Angeles would have no negative ecological impacts, and head of his oil and gas consultancy firm JP Martin Energy Strategy - currently serves on the DOE Unconventional Resources Technology Advisory Committee.

Outside Reviewers Tied to Big Oil

The non-peer-reviewed “study” wasn’t published in an academic journal, but rather was published “in association with” TCI – a PR firm - on its website. Though not peer-reviewed in accordance to conventional legitimate academic standards, the co-authors did thank three people for “taking the time to review this study.”

Two of those three people, it turns out, also have direct ties to the oil and gas industry.

One of them is Harvard’s Henry Lee. His CV details his past work as a consultant for General Electric, Gulf Oil and Texaco, the latter of which Chevron purchased as a wholly-owned subsidiary in 2002.

The other: Hillard Huntington, Executive Director of Stanford’s Energy Modeling Forum (EMF), is one of 200 members of the National Petroleum Council (NPC). The NPC is a federally-chartered, corporate-funded advisory committee started by President Harry Truman in 1946, now overseen by the DOE under the dictates of the Federal Advisory Committee Act of 1972. Its purpose is “to advise, inform and make recommendations to the [DOE] with respect to any matter relating to oil and natural gas, or to the oil and gas industries.”

NPC’s membership includes former Chesapeake Energy CEO Aubrey McClendon, Chevron CEO John Watson, ExxonMobil former CEO Lee Raymond and current CEO Rex Tillerson, former Shell North America CEO John Hoffmeister, and TransCanada (of contentious Keystone XL fame) CEO Russ Girling, among many others.

Huntington’s EMF is funded by the oil and gas industry as well, with partners including the likes of Saudi Aramco, American Petroleum Institute, BP America, Chevron, ExxonMobil and others.

Public Relations and Advocacy Costumed as Scholarship

USC’s report is now the second case of “frackademia” in the state of California in the past half-year and another example of the oil and gas industry’s public relations strategy espoused at the Nov. 2011 “Media & Stakeholder Relations: Hydraulic Fracturing Initiative” conference held in Houston, TX.

At that same Houston conference in which Range Resources PR flack Matt Pitzarella admitted his company utilizes psychogical warfare personnel and techniques in the communities in which Range operates, New York Independent Oil and Gas Association’s S. Dennis Holbrook stated that it’s crucial for industry to “seek out academic studies and champion with universities—because that again provides tremendous credibility to the overall process” because the gas industry is viewed “very skeptically” by the public.

SUNY Buffalo came under fire in the second half of 2012 for partaking in the industry’s shady PR game made public at that Houston conference, ending its SRSI after months of outside agitation from critics. With time we’ll see if the same endgame is in-store at USC.

Congressmen Supporting Fracked Gas Exports Took $11.5 Million From Big Oil, Electric Utilities

7:37 am in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

south texas oil

South Texas Oil Refinery

On Jan. 25, 110 members of the U.S. House of Representatives – 94 Republicans and 16 Democrats - signed a letter urging Energy Secretary Steven Chu to approve expanded exports of liquified natural gas (LNG).

It was an overt sign of solidarity with the Obama Administration Department of Energy’s (DOE) LNG exports study, produced by a corporate consulting firm with long ties to Big Tobacco named NERA Economic Consulting (NERA is short for National Economic Research Associates), co-founded in 1961 by the “Father of Deregulation,” Alfred E. Kahn. That study concluded exporting gas obtained from the controversial hydraulic fracturing (“fracking”) process - sent via pipelines to coastal LNG terminals and then onto tankers – is in the best economic interests of the United States.

A DeSmogBlog investigation shows that these 110 signatories accepted $11.5 million in campaign contributions from Big Oil and electric utilities in the run-up to the November 2012 election, according to Center for Responsive Politics data.

Big Oil pumped $7.9 million into the signatories’ coffers, while the remaining $3.6 million came from the electric utilities industry, two industries whose pocketbooks would widen with the mass exportation of the U.S. shale gas bounty. Further, 108 of the 110 signers represent states in which fracking is occurring.

Exhibit A: Human Geography of Campaign Finance Post-Citizens United

Energy issues are almost always questions of infrastructure, geography, and geopolitics. So too is the case of LNG exports, with this letter serving as Exhibit A of the new human geography of campaign finance in the post-Citizens United world.

Texas

The expression always seems to ring true: everything is bigger in Texas.

This letter is no different, as 19 of the 110 signatories represent congressional districts in The Lone Star State, 12 Republicans and seven Democrats. Texas is home to both the Eagle Ford Shale basin and the Barnett Shale basin, as well as prospective LNG export terminals in Sabine Pass (co-owned by ExxonMobil, ConocoPhillips and Qatar Petroleum), Freeport (partially owned by ConocoPhillips) and Corpus Christi (owned by LNG export giant, Cheniere).

The “Texas 19″ alone raked in $2.5 million from Big Oil and electric utilities. 

Rep. Kevin Brady (R-TX8), a recipient of $166,000 from Big Oil and another $23,000 from the electric utilities industry, oversees a congressional district in part based in Houston, the corporate epicenter for the oil and gas industry and home to the innovative leader in the sphere of LNG exports, Cheniere Energy. ExxonMobil and Chesapeake Energy, the number one and two producers of unconventional gas in the U.S., each gave Brady $10,000 before his 2012 electoral victory. Anadarko, Marathon and Valero also followed suit with $10,000 contributions and ConocoPhillips chipped in an extra $7,500.

Brady’s Texas colleague Joe Barton (R-TX6), whose congressional district in large part overlaps the Barnett Shale basin, took $162,150 from Big Oil and another $124,950 from the electric utilities industry. He received $13,000 from utilities giant Exelon Corporation, $12,500 from ExxonMobil, $10,000 from Koch Industries, $7,000 from Chevron and $5,000 from Chesapeake Energy. Koch Industries’ Koch Pipeline runs from the Eagle Ford Shale basin to Corpus Christi.

The Dirty, Dirty South

Read the rest of this entry →

Second US Tar Sands Mine, Owned by Former ExxonMobil and Chevron Exec., Approved in Utah

8:37 am in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

MCW Enterprises Ltd., a Canada-based corporation, announced on Nov. 19 that it has received all necessary permits to streamline tar sands extraction at its Asphalt Ridge plant located in Vernal, Utah starting in December.

Protest Banner: All Markets Peak, All Pipelines Leak

Tar Sands protest in New Orleans

The announcement comes just weeks after U.S. Oil Sands Company received the first ever green light to extract tar sands south in the United States.

Recently changing its name from MCW Energy, MCW Enterprises Ltd. owns MCW Oil Sands Recovery LLC as a wholly owned subsidiary. The company’s CEO, R. Gerald Bailey – often also referred to as Raymond Bailey or Jerry Bailey - is the former President of Exxon Arabian Gulf and also served as an Executive for Texaco (since purchased by Chevron) for 15 years.

MCW’s website explains that its stake in the Asphalt Ridge is a “proven/probable resource of over 50+ million barrels of oil” and that it “is seeking other oil sands leases in Utah, which contains over 32 billion barrels of oil within 8 major deposits.”

Bailey told Flahrety Financial News that he sees this first project as a crucible, or testing grounds, with the potential for more extraction to come down the road.

“This is really going to be a technology play,” he stated. “I don’t plan to build another Exxon out there in the desert.”

The Frac Sand Connection

In June 2012, Temple Mountain Energy (TME) – also based in Vernal, UT – cut a five-year oil sands supply agreement deal with MCW.

“Under this five year Supply Agreement, Temple Mountain will supply MCW with 8,333 tons of oil sands material per month until the year 2016,” MCW’s website explains.

Once the bitumen is extracted, TME plans on selling the fine-grained sand under which it sits to unconventional oil and gas companies forhydraulic fracturing (“fracking”).

“The recent rapid expansion of shale gas and shale oil drilling…has greatly increased the need for fracking sand in this region,” TME wrote on it website. “Asphalt Ridge is well-positioned to serve this high-volume market—both in terms of geographic location and in terms of sand quality.”

To date, frac sand mining companies have targeted five states - WisconsinMinnesotaTexasArkansas, and Iowa - transforming tens of thousands of acres of land into “Sand Land.” Utah is soon to become number six.

Race for What’s Left: End of “Easy Oil,” Heavy Price to Pay

With domestic unconventional oil and gas wells under-producing, setting the stage for the shale gas bubble to burst, the push to extract tar sands in the United States is a depiction of the oil and gas industry’s reckless push to extract every last drop in a “race for what’s left.”

The age of “easy oil,” to borrow the term from scholar Michael Klare, is over. In a May 2012 interview with FutureMoneyTrends.com, Bailey acknowledged this as well, stating that the “cheap, easy oil is pretty much behind us.”

Bailey defines “cheap” here with regards to the price of extracting the “tough oil” from a production point-of-view.

But as the Alberta tar sands north of the border have shown, it’s the ecosystem and climate that really pays the heaviest price of all. Read the rest of this entry →