You are browsing the archive for General electric.

NY Fracking Scandal: 7 Groups Demand Conflict of Interest Investigation of Cuomo Administration

1:15 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

Lawrence Schwartz, Secretary to Gov. Andrew M. Cuomo

New York could soon become the newest state in the union to allow hydraulic fracturing (fracking), the controversial technique used to enable shale oil and gas extraction. The green light from New York Governor Andrew Cuomo could transpire in as little as “a couple of weeks,” according to journalist and author Tom Wilber.  

That timeline, of course, assumes things don’t take any crazy twists or turns.

Enter a press conference today in Albany, where seven groups, including Public Citizen, Food and Water WatchFrack Action, United for ActionCatskill Citizens for Safe Energy, and Capital District Against Fracking, called for an Albany County District Attorney General investigation of the Cuomo Administration.

They are asking “whether Lawrence Schwartz, Secretary to Gov. Andrew M. Cuomo, has a conflict of interest between his stock investments and his involvement in the state’s decision on whether to allow high-volume hydraulic fracturing for shale gas.”

Schwartz – dubbed “the ringleader” of Governor Cuomo’s administration – potentially has what these groups describe as a legal conflict-of-interest. A months-long DeSmogBlog investigation reveals that Cuomo’s chief-of-staff actually has a direct financial interest in fracking going forward in New York state, potentially falling under the sphere of insider trading.  

Above and beyond Schwartz’s annual oil and gas industry stock holdings in corporations ranging from Occidental Petroleum, Williams Companies, ExxonMobil/XTO, and General Electric (GE) for the past decade, the Cuomo Administration has also held numerous meetings with lobbyists representing some of these same corporations dating back to when Cuomo assumed office in Jan. 2011, records obtained under New York’s Freedom of Information Law (FOIL) by DeSmogBlog reveal.

Dirty Details: Oil/Gas Industry Stock Holdings, Meetings with Lobbyists from Same Corporations

The details are dirty, both figuratively and literally.

A September 2012 investigation by the Environmental Working Group (EWG) examined Schwartz’s past three financial disclosure forms. That probe revealed that he had stock holdings of $1,000+ each in Occidental, Williams, Exxon/XTO, and GE in both 2010 and 2011, respectively. All four of these corporations possess a financial stake in Cuomo approving fracking in New York.

2009 saw much of the same, a year in which Schwartz had $1,000+ in his stock portfolio invested in GE, Williams, and Burlington Resources (purchasd as a subsidiary by ConocoPhillips in 2005).

DeSmogBlog followed in the footsteps of the EWG investigation by filing both an Executive Chamber FOIL request, as well a FOIL request to Schwartz’s former employer, the Westchester County Executive Office, asking for his financial disclosure forms dating back to 2002.

That latter request revealed that Schwartz has had stock holdings in the oil and gas industry dating back to 2002. At that time he was working as chief-of-staff to then-Westchester County Executive, Andrew J. Spano.

In 2002 and 2003, Schwartz had over $1,000 in stock holdings in Chevron and GE. Until 2001, Texaco – purchased in 2000 as a subsidiary by Chevron – was headquarted in Westchester. The Westchester County Executive Chamber did not possess Schwartz’s forms for 2004 or 2005.

His 2006 filings reveal $1,000 or more in his stock portfolio invested in Burlington Resources, GE, and Williams Companies.

Records obtained from Cuomo’s Executive Chamber also revealed that lobbyists from the very corporations Schwartz has thousands of dollars of stock holdings in have earned the ear of Cuomo in the form of exclusive meetings with his high-level aides.  

One case in point: Both in April 2012 and in Sept. 2012, Williams Companies lobbyists had meetings with Cuomo aides on the status of its proposed Constitution Pipeline, a joint venture between Cabot Oil and Gas, Piedmont Natural Gas and Williams Companies. That 120-mile long, 30-inch prospective pipeline, if approved, will carry gas produced in NY’s section of the Marcellus Shale to markets throughout the northeastern U.S.

The latter meeting was held between two Williams’ lobbyists – Tonio Burgos and John Charlson – and upper level Cuomo aides.

Read the rest of this entry →

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 →

Locking in Dirty Energy Demand: GE Signs Deal with Clean Energy Fuels for Gas-Powered Vehicles

1:31 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

On November 13, Clean Energy Fuels (CEF) signed a deal with General Electric (GE) to purchase its natural gas vehicle fueling assets in an effort to expand what it describes as “America’s Natural Gas Highway.”

CEF is owned on a 20.8 percent basis by T. Boone Pickens, energy magnate and owner of the hedge fund, BP Capital. Andrew Littlefair, President and CEO of CEF, described the deal as one of the “most significant milestones in Clean Energy’s history.”

The deal, “will enable trucks to operate [on natural gas] coast to coast and border to border.”

Forbes dug into the nuts-and-bolts of the deal:

In particular, Clean Energy has agreed to buy two MicroLNG plants from GE Oil and Gas (with up to $200 million in GE financing), to be operational by 2015. These modular units can quickly liquefy natural gas off of any pipeline, producing up to 250,000 gallons per day – enough to fuel 28,000 trucks – while minimizing the associated physical footprint.

In summer 2011, CEF signed another big deal with Chesapeake Energy it coined the “Declaration of Energy Independence,” with Chesapeake giving $150 million in capital to CEF to bolster its natural gas vehicle infrastructure.

Natural gas vehicles are an underexamined side of the battle brewing over the future of hydraulic fracturing (“fracking”) in the North America, but a key niche market controlled by the likes of CEF and Chesapeake Energy.

Locking in Demand for Shale Gas, Fracking the Future

According to a recent report published by Food and Water Watch, only 3-percent of vehicles currently on the road in the United States are fueled by natural gas. Though 3-percent may seem trivial, Food and Water Watch believes it’s a key mechanism to ensure the “shale gas bubble” doesn’t pop, writing,

Locking-in future increases in demand for U.S. natural gas — through increased consumption in the transportation and electricity sectors and through increased exports to foreign markets — appears to be part of the industry’s long-term strategy for ensuring that natural gas prices are high enough to make shale gas development profitable.

CEF has big plans for natural gas vehicles and says it hopes to have 150 filling stations by the end of 2013. Shell Oil also has its sights on building 100 stations as well, according to Forbes.

“America’s Natural Gas Highway,” given the climate and ecosystem impacts of fracking the future, looks much more like what the legendary band AC/DC would describe as a “Highway to Hell.”

Photo by lawrence’s lenses under Creative Commons license.

Former Clinton and Bush Cabinet Members, Now Oil and Gas Lobbyists, Expect Keystone XL Green Light

12:18 am in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

The Tar Sands Blockade of TransCanada Corporation’s “Keystone XL South” continues in Texas, but former members of the Clinton and George W. Bush cabinets believe the northern half will soon be green-lighted by President Barack Obama.

In a Nov. 13 conference call led by the Consumer Energy Alliance (CEA), an oil and gas industry front group, CEA Counsel John Northington said he believes a “Keystone XL North” rubber stamp is in the works by the Obama Administration.

“I think the Keystone will be approved in fairly short order by the administration,” Northington said on the call.

Northington has worn many hats during his long career:

[He] served in the Clinton Administration at the Department of the Interior as Senior Advisor to the Director of the Bureau of Land Management. Mr. Northington also served as Special Assistant to the Assistant Secretary for Land and Minerals Management with energy policy responsibility for the former Minerals Management Service and the Bureau of Land Management. Mr. Northington began his government service at the Department of Energy, where he served as White House Liaison, Chief of Staff for the Office of Fossil Energy and Senior Advisor for Oil and Natural Gas Policy.

After his tenure working for the Clinton Administration, he walked through the revolving door and became a lobbyist, representing many clients over the past decade, including the oil and gas industry. Northington has represented ExxonMobilDevon EnergyCONSOL Energy, and StatoilExxonMobilDevon and Statoil all have a major stake in the tar sands.

Northington was joined on the call by Michael Whatley, CEA’s Executive Vice President. Whatley seved as senior policy advisor for the Bush-Cheney 2000 campaign, Principal Deputy Assistant Secretary of the Department of Energy under George W. Bush and as Chief of Staff of former Sen. Elizabeth Dole (R-NC).

CEA fronts for HBW Resources, a lobbying firm run by David Holt, Andrew Browning and Whatley (hence the “HBW”), with a developed speciality of lobbying on behalf of the tar sands industry.

Whatley, above and beyond working for the Bush Administration, Sen. Dole and CEA, has also lobbied on behalf ofExxonMobil and General Electric (GE). GE, like ExxonMobil, also has a fiscal present and future interest in tar sands production.

Win, Win for Some; Lose, Lose for Most: Tar Sands With Or Without Keystone XL

Though outfits like CEA are working overtime to ensure “Keystone XL North” is built soon, there are other ways to skin the cat and bring tar sands crude to market. The most important one, covered here on DeSmogBlog and in a recent story published by the Calgary Herald, is freight rail.

Warren Buffett, the “Oracle of Obama,” has a major financial stake both in tar sands production, as well as in moving tar sands to market via the Burlington Northern Sante Fe (BNSF) freight trains he owns under the auspices of his holding company, Berkshire Hathaway.

Buffett gave over $60,000 to the Democratic National Committee during the 2012 election cycle, as well as another $70,000 to President-elect Barack Obama, according to Federal Election Commission (FEC) filings.

“Railroads too present environmental issues. Moving crude on trains produces more global warming gases than a pipeline,” explained Bloomberg in January 2012.

BNSF isn’t the only rail company eager to move tar sands crude to market. Southern Pacific also envisions a major market opening for freight rail transport. A recent Calgary Herald story explains,

While Canadian and U.S. railways are scrambling to meet demand, opening small terminals close to production in locations such as the Bakken area of southern Saskatchewan and North Dakota, the Athabasca oilsands have not been part of the rush. Until now….Unlike pipelines, that means no public hearings and no environmental protests.

The verdict is in.

Chock it up to yet another win-win for the oil and gas industry and a lose-lose for all who have to suffer the consequences of the ecological damage in Alberta, as well as the climate change amplified disasters it’s engendering around the world.