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Meme with Wings: Are Western Anti-Fracking Activists Funded by Putin’s Russia?

1:08 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

Anti-fracking banner on a march: "We Can't Drink Money"

The myth of Russian funding for anti-fracking activists keeps reappearing.

At a June 19 speaking event at London’s Chatham House, North Atlantic Treaty Organization (NATO) secretary-general Anders Fogh Rasmussen claimed the Russian government is covertly working to discredit hydraulic fracturing (“fracking”) in the west from afar.

“I have met allies who can report that Russia, as part of their sophisticated information and disinformation operations, engaged actively with so-called non-governmental organisations — environmental organizations working against shale gas — to maintain European dependence on imported Russian gas,” said Rasmussen, the former Prime Minister of Denmark.

Rasmussen’s comments were relayed to the press by someone in attendance who apparently broke the “Chatham House Rule” by telling outsiders about the content of a Chatham House meeting.

But Rasmussen left out some key context from his presentation, which he said “is my interpretation” and did not further elaborate on his “disinformation operations” comments.

That is, while powerful actors have claimed on multiple occasions that western-based anti-fracking activists are funded by the Kremlin, no one has ever documented such a relationship in the form of a money paper trail.

Meme with Wings

Rasmussen’s allegation that western “fracktivists” are or might be funded by the Kremlin is a meme with wings.

In a June 2010 email revealed by Wikileaks, private intelligence firm Stratfor (shorthand for Strategic Forecasting, Inc.) speculated that Josh Fox, director of Gasland and Gasland: Part II, might be funded by the Russian government or the coal industry. According to a January 2010 email, Stratfor’s “biggest client” is the American Petroleum Institute.

Stratfor published a white paper titled “Shale Gas Activism,” an analysis of anti-fracking opposition groups and leaders, in December 2009.

Emails show Stratfor sent the white paper to Stanley Sokul, then-ExxonMobil corporate issues senior advisor and now XTO Energy’s manager of public and government affairs. Sokul formerly served as chief of staff and general counsel for the White House Office of Science and Technology Policy under President George W. Bush.

Further, in the industry-funded documentary film FrackNation, climate change denier James Delingpole also stated that anti-fracking activists are likely funded by the Kremlin.

Most recently, climate change skeptic Bjorn Lomborg — whose Copenhagen Consensus Center was recently exposed by DeSmogBlog’s Graham Readfearn — also recently wrote that he concurred with his fellow Dane Rasmussen’s assessment.

“The accusations do not seem too far-fetched. Russia is very keen on dissuading Europe from exploiting its shale reserves,” Lomborg wrote in Forbes. “Moscow’s goal clearly is to keep the EU dependent on Russia.”

Memes Work

While in reality, U.S. oil and gas companies maintain close ties with Russia — including in the fracking sphere — the meme brought to the forefront again by Rasmussen is the one that has caught much more fire.

Originally conceptualized in scholar Richard Dawkins‘ 1976 book The Selfish Gene, one conclusion reigns supreme: memes work and can have a major impact.

For example, Occupy Wall Street’s “We are the 99-percent” is a meme. So too is “Global warming is a hoax.”

“In my opinion, the problem is not with the meme concept itself, but with some of the ways in which it has been used, and especially those that undermine the role of agency in [deploying memes],” Limor Shifman — senior lectureer at the Department of Communication and Journalism at the Hebrew University of Jerusalem and author of the book, Memes In Digital Culture — said in a recent interview on her book.

With loud megaphones and ongoing geopolitical tensions between the U.S. and Russia with no end in sight, one can rest assured Rasmussen will not be the last one to repeat this meme, just as he was not the first.

Revealed: Heather Zichal Met with Cheniere Executives as Obama Energy Aide Before Board Nomination

9:14 am in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

 

Portrait of Heather Zichal

Zichal through the revolving door?

Heather Zichal, former deputy assistant for energy and climate change to President Barack Obama and nominee to sit on the board of directors of LNG export company Cheniere Energy Inc., held two meetings with Cheniere executives while working for the White House.

White House meeting logs show Zichal attended the meetings with three executives from Cheniere, owner of the Sabine Pass LNG (liquefied natural gas) export facility, the first terminal to receive a final approval from the U.S. Federal Energy Regulatory Commission (FERC) during the hydraulic fracturing (“fracking”) boom.

The meetings appear to have taken place just over two weeks apart from one another, according to the meeting logs. The first meeting was on January 14, 2013, and the second on January 29, 2013. Just over eight months later, Zichal resigned from her White House job, with Reuters citing “plans to move to a non-government job.”

Cheniere CEO Charif Souki — who is facing a major ongoing class-action lawsuit— sat in on both of those meetings. He was joined by Cheniere executives Patricia Outtrim, vice president of governmental and regulatory affairs, and Ankit Desai, vice president of government relations.

Desai, a Cheniere lobbyist, formerly worked with Zichal on U.S. Secretary of State John Kerry’s 2004 presidential campaign, serving as his budget director. Desai also formerly served as political director for then-U.S. Senator and now Vice President Joe Biden.

Zichal served as Kerry’s energy and environment policy adviser for the 2004 campaign and in 2006, became his legislative director, a job she held until becoming policy director for energy, environment and agriculture for President Barack Obama’s 2008 presidential campaign.

“Ms. Zichal served as the top energy advisor to the President of the United States at a time when Cheniere was beginning construction on [Sabine Pass LNG],” Katie Pipkin, Cheniere’s senior vice president of business development and communications told DeSmogBlog. “The meeting was simply to inform and update the administration on that project.”

Pipkin also denied that two separate meetings took place in January 2013 between Cheniere and Zichal, telling DeSmogBlog, “Our records indicate only one meeting with Zichal on the 29th.” She did not respond to repeated requests for clarification on that claim.

While at the White House, Zichal earned a salary of $140,000 per year. If elected to the Cheniere board, she will make $180,000 per year, plus own 6,000 shares of Cheniere stock.

White House Open Door for Cheniere

According to a DeSmogBlog review of White House meeting logs, between 2009 and 2013, the Obama White House held 32 meetings with Cheniere board members and lobbyists, including the two attended by Souki, Desai and Outtrim.

Together, Souki and Outtrim attended four other meetings with White House officials and eight more each, either on their own or as part of other meeting blocs.

The Obama White House door has remained open to Outtrim even though she donated $10,000 to Republicans running in the the 2014 mid-term elections, according to OpenSecrets.org. Outtrim has also co-hosted a fundraiser for U.S.Sen. John Cornyn (R-TX).

Just 10 days after Cheniere landed its final approval from FERC to export LNG from Sabine Pass on April 16, 2012, the White House hosted a meeting with Outtrim and fellow board member R. (Robert) Keith Teague.

Majida Mourad, vice president of government relations for Cheniere, also met five times with the White House.

Two of those meetings were held directly with President Barack Obama himself, one on December 4, 2011, and another on January 18, 2013. First Lady Michelle Obama also attended the second meeting.

Prior to becoming a lobbyist for Cheniere, Mourad served as a senior aide for Spencer Abraham, former secretary of energy during the first term of the Bush Administration.

“Not Uncommon”

Some wonder whether Zichal will provide Cheniere even further top-level access to the Obama Administration if elected to the company’s board.

“Heather Zichal taking a position on Cheniere’s board of directors would be another example of the revolving door between those who set energy policies and the corporations that reap financial benefits from those policies,” Emily Wurth, water program director at Food & Water Watch, told DeSmogBlog.

Read the rest of this entry →

Former Obama Energy Aide Named to Board of Fracked Gas Exports Giant Cheniere

11:14 am in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

 

Face photo of Heather Zichal

Revolving door: An Obama energy aide may join a fracking giant.

Heather Zichal, former Obama White House Deputy Assistant to the President for Energy and Climate Change, may soon walk out of the government-industry revolving door to become a member of the board of directors for fracked gas exports giant Cheniere, who nominated her to serve on the board.

The announcement, made through Cheniere’s U.S. Securities and Exchange Commission Form 8-K and its Schedule 14A, comes just as a major class-action lawsuit was filed against the board of the company by stockholders.

In reaction to the lawsuit, Cheniere has delayed its annual meeting. At that meeting, the company’s stockholders will vote on the Zichal nomination.

The class-action lawsuit was filed by plaintiff and stockholder James B. Jones, who alleges the board gave stock awards to CEO Charif Souki in defiance of both a stockholders’ vote and the company’s by-laws.

Souki — a central character in Gregory Zuckerman‘s book The Frackers — became the highest paid CEO in the U.S. as a result of the maneuver, raking in $142 million in 2013, $133 million of which came from stock awards.

Zichal was nominated to join Cheniere’s audit committee of the board, and will be paid $180,000 per year for the gig if elected.

Among the audit dommittee duties: “Prepare and review the audit committee report for inclusion in the proxy statement for the company’s annual meeting of stockholders,” which is now set for September 11 after the push-back following the filing of the stockholder class-action lawsuit.

“The audit committee’s responsibility is oversight, and it recognizes that the company’s management is responsible for preparing the company’s financial statements and complying with applicable laws and regulations,” Cheniere’s audit committee charter further explains.

Cheniere (stock symbol LNG, shorthand for “liquefied natural gas”) is currently awaiting a final decision on Corpus Christi LNG, its proposed LNG exports facility. That terminal would send gas obtained predominantly via hydraulic fracturing (“fracking”) to the global market.

The company already received the first ever final approval to export fracked gas from the U.S. Federal Energy Regulatory Commission (FERC) in April 2012 for itsSabine Pass LNG export terminal, which is scheduled to be operational by late-2015.

The nature of what role Zichal will play on the board and audit committee of the first company to make a major bet on LNG exports remains unclear. But one thing remains clear: she joins a politically well-connected cadre of Cheniere board members.

Other prominent Cheniere board members include John Deutch, former head of the U.S. Central Intelligence Agency (CIA) and Vicky Bailey, a FERC commissioner, both of whom worked for the Clinton administration.

And given Zichal’s former role as liaison between the oil and gas industry at the White House and her track record serving in that role, it raises the question: was she working for the industry all along?

Zichal Oil and Gas Services

Zichal was best known to many as the main mediator between the oil and gas industry and the White House during her time working for the Obama administration. In fact, Cheniere cites that experience as the rationale for nominating her to serve on the board.

“Zichal has extensive knowledge of the domestic and global energy markets as well as the U.S. regulatory environment,” reads the “skills and qualifications” portion of her nomination announcement on Cheniere’s Schedule 14A. “She brings a diversified perspective about the energy industry to our board having served in significant government positions during her career.” 

As Obama’s “climate czar,” Zichal headed up the effort — mandated via an April 13, 2012 Obama Executive Order — to streamline regulatory oversight of the gas industry in the U.S.

Titled, “Supporting Safe and Responsible Development of Unconventional Domestic Natural Gas Resources,” the Executive Order signed in the form of a “Friday news dump” created “a high-level, interagency working group that will facilitate…domestic natural gas development” overseen by Zichal.

Obama signed the Executive Order after meeting with Jack Gerard, head of the American Petroleum Institute (API), and other industry leaders. According to EnergyWire, API requested the creation of that working group.

“We have called on the White House to rein in these uncoordinated activities to avoid unnecessary and overlapping federal regulatory efforts and are pleased to see forward progress,” Gerard told the Associated Press in response to a question about the order.

A month later on May 15, Zichal spoke to API about her efforts and those of the Obama administration on fracking.

“It’s hard to overstate how natural gas — and our ability to access more of it than ever — has become a game-changer and that’s why it’s been a fixture of the President’s ‘All of the Above’ energy strategy,” she told API.

Just think about it: a few years ago, the conventional wisdom was that the United States would need to build more terminals to import natural gas overseas. And today, America is the world’s leading producer of natural gas and we’re actually exploring opportunities for exports.

As a May 2012 Bloomberg article explained, among Zichal’s tasks was wooing API head Jack Gerard, which she appears to have succeeded at.

Similar to the interagency working group created by the April 13, 2012, Executive Order, Zichal also oversaw the Bakken Federal Executives Group, which was created through the signing of Executive Order 13604 on March 22, 2012. That order was part of the same package that called for expedited building of the southern leg of the Keystone XL tar sands pipeline.

Executive Order 13604 created an interagency steering committee with a goal “to significantly reduce the aggregate time required to make federal permitting and review decisions on infrastructure projects while improving outcomes for communities and the environment.”

Zichal was also instrumental in legalizing the American Legislative Exchange Council‘s (ALEC) approach for fracking chemical fluid disclosure on U.S. public lands, overseen by the U.S. Department of Interior’s Bureau of Land Management.

“Zichal met more than 20 times in 2012 with industry groups and company executives lobbying on the proposed rule,” reported EnergyWire. “Among them were the American Petroleum Institute (API) and the Independent Petroleum Association of America (IPAA), along with BP America Inc., Devon Energy Corp. and Exxon Mobil Corp.”

Beyond overseeing streamlined permitting for fracking sites on both public and private lands, Zichal also oversaw the White House file for the Pavillion, Wyo., fracking groundwater contamination study.

Conducted by the U.S. Environmental Protection Agency (EPA), many believe the White House — counseled by Zichal — made a political calculus to cancel the ongoing investigation, the first of three major major studies on the subject shutdown by the EPA.

“Deeply Embedded”

The Zichal nomination is taking place alongside the deployment of the Obama Administration regulating coal-fired power plants through the U.S. Environmental Protection Agency. The rule is a de facto endorsement of fracking and gas-fired power plants as part of the “all of the above” energy policy.

As the Zichal case makes clear with regards to climate change-causing fracked gas, LNG exports flow through the revolving door in Washington, DC, and beyond.

“The fact that one of Obama’s top climate advisors is now helping expand fossil fuel use raises questions about how deeply embedded oil and gas industry interests are in the administration,” Jesse Coleman, a researcher for Greenpeace USA told DeSmogBlog.

Revealed: Emails Show ND Ethics Law Potentially Broken on Petraeus Fracking Trip

9:18 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog 

A digital envelope

Emails obtained through a standard Open Records Statute request in North Dakota show Petraeus’ fracking field trip’s ethical & legal issues.

DeSmogBlog has obtained emails via North Dakota’s Open Records Statute revealing facts that could be interpreted as indicating that North Dakota Treasurer Kelly Schmidt broke State Investment Board ethics laws.

The potential legal breach occurred during a late-April fracking field trip made to the state by former CIA Director Gen. David Petraeus.

In a radio interview responding to DeSmogBlog’s original investigation about the trip, Schmidt said rolling out the red carpet for Petraeus — who now works at Manhattan-based private equity giant Kohlberg Kravis Roberts (KKR), which holds over $1 billion in oil and gas industry assets and calls itself a “mini oil and gas company“ — was “not unusual.”

KKR initially told DeSmogBlog it followed all state and federal laws during the Petraeus visit.

But new emails obtained by DeSmogBlog from both the North Dakota State Investment Board and the Office of the North Dakota State Treasurer call that and much more into question.

Rewinding back to where it all began, for the final stops of the two-day Petraeus visit to North Dakota, he and his KKR colleagues Ari Barkan and Vance Serchuk met with representatives from the North State Investment Board and the North Dakota Department of Land Trusts.

Banal convenings at face-value, what preceded and followed the meetings tells a bigger story: first a crucial plane flight and then a follow-up invitation to come to New York City to talk business.

Looked at on the whole, the plane flight and what came after it raises fundamental legal and ethical questions about the burgeoning — and much-touted in some circles — North Dakota oil and gas Legacy Fund.

Fly Like an Eagle

On day one of the Petraeus visit, Schmidt flew on a private plane chartered byKKR from the Bakken Shale oil fracking fields in Watford, North Dakota out to Bismarck, North Dakota.

In introducing Petraeus in Bismarck for a speaking engagement with the North Dakota National Guard, Schmidt thanked the troops for fighting in oil wars, as seen in a video obtained by DeSmogBlog from a Freedom of Information Act request. It was skewered in a recent episode of comedian Lee Camp‘s show, “Redacted Tonight.”

“David and I have been out in the western portion of North Dakota where we have shared with him the challenges we’ve been facing to help make our nation and our world an energy independent country so that you and your fellow officers and enlisted folks never have to go over there again in order to fight for the oil we all need,” said Schmidt.

KKR — as we discovered in an earlier Open Records Statute request — required Schmidt to get legal clearance to fly on the private plane. Schmidt got the clearance within a couple of hours from Assistant Attorney General Janilyn Murtha.

Murtha gave Schmidt the legal clearance because — although Schmidt sits on the Board of the State Investment Board by legal mandate — “KKR does not have any current or pending business relationship with the [State Investment Board],”Murtha wrote.

Therefore, Murtha continued, “the conflict of interest provisions of the aforementioned code of conduct and associated fiduciary responsibilities are not implicated by the benefit described herein.”

Most important is what Murtha wrote next.

“If in the future the [State Investment Board] considers entering into a business relationship with KKR, and Treasurer Schmidt is then an acting board member, she may bring the prior contact with KKR to the attention of both the board and legal counsel and determine at that time if a conflict exists.”

New emails obtained by DeSmogBlog demonstrate Schmidt knew KKR had an April 30 breakfast with the State Investment Board to talk business. In fact, the new emails reveal Schmidt helped set the meeting up.

Further, other emails show Murtha forwarded the legal clearance she wrote for Schmidt off to David Hunter and Darren Schulz, Chief Investment Officer (CIO) and Deputy CIO for the State Investment Board, respectively.

In other words, all parties involved were “in the know.”

The new documents also portray that, in the trip’s aftermath, KKR and the State Investment Board have kept in touch and scheduled a mid-July meeting to discuss ”entering into a business relationship” with one another.

New York, New York

A few days after the April 30 breakfast meeting held between the KKR team and both Hunter and Schulz, Hunter sent a thank you email to KKR’s Ari Barkan. Barkan serves as Director for KKR’s Client and Partner Group.

“I just wanted to drop you a note to let you know I truly enjoyed our meeting last week and found our conversation with David, Vance, Darren and yourself to be truly compelling,” Hunter wrote to Barkan. “As your schedule permits over the next few weeks, let’s attempt to set up a meeting in New York during the first two weeks of July or August.”

After kicking back-and-forth a few emails, Barkan told Hunter a mid-July business meeting date would work best for a meeting at KKR’s New York City office.

“Please also keep in mind that, at the moment, I am envisioning two separate topics of discussions – one connected to private markets and one to credit – so really we are talking about 1.5 hours for each one,” Barkan wrote in an email.

Emails show Hunter invited Schmidt to the mid-July gathering, though she had to decline the invitation due to other commitments.

Breaking the Law?

So, did Schmidt engage in breaking the law?

Read the rest of this entry →

Lee Camp Features Gen. Petraeus Oil Wars Video on “Redacted Tonight”

5:20 pm in Uncategorized by Steve Horn

Comedian Lee Camp premiered a never-before-televised video of former CIA Director General David Petraeus  — who now serves as Chairman of the Kohlberg Kravis Roberts (KKR)’s Global Institute  —  introduced in front of the North Dakota National Guard by Treasurer Kelly Schmidt at an April 29 event in Bismarck, North Dakota.

In the original video I initially obtained via Freedom of Information Act and published on YouTube, Schmidt thanked the troops at the National Guard event for fighting wars for oil “over there” so that we can all have a dependent flow of oil over here. The back-drop of Petraeus being in town was a field trip to the Bakken Shale oil fracking fields, which according to Schmidt’s short introduction, has helped make oil wars less necessary.

Televised on the second episode of his new show, “ Redacted Tonight,” Camp introduced the video, showed a small portion of it (the whole thing is close to an hour and 14 minutes) and produced a four and a half minute segment, which packs a punch, provides some good laughs and covers a lot of ground.

The oil wars video was obtained and published in part two of an ongoing investigative series published on DeSmogBlog.com about the Petraeus fracking field trip. Part three is currently being worked on and will be published soon.

For now, sit back, watch the video and stay tuned for part three of the series on DeSmogBlog.com. And if you like the video or any of the articles, please share them with your friends, family and colleagues!

ND Treasurer: Red Carpet Rollout for Gen. Petraeus Fracking Field Trip “Not Unusual”

3:19 am in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

Petreaus drinking coffee

Petraeus’ pro-fracking mission received a hero’s welcome in North Dakota.

North Dakota Treasurer Kelly Schmidt has responded to DeSmogBlog’s investigation of the Bakken Shale basin fracking field trip her office facilitated for former CIA Director Gen. David Petraeus, who now works at the Manhattan-based private equity firm Kohlberg Kravis Roberts (KKR).

Schmidt expanded on the initial comments she provided to DeSmogBlog in response to our findings obtained via North Dakota Open Records Statute. Among other things, she described the blurred lines existing between the North Dakota government, the oil industry and private equity firms like KKR as “not unusual.”

Schmidt’s comments came on May 23 on WDAY’s Jay Thomas Show, guest hosted that day by Rob Port, just over three weeks after her office hosted Petraeus.

DeSmogBlog’s May 22 investigative piece revealed that KKR — which has ties to North Dakota’s hydraulic fracturing (“fracking”) boom via Samson Resources and The Ridge housing complex and considers itself a “mini oil and gas company” — wrote the press release for the Office of North Dakota State Treasurer announcing Petraeus’ visit, closely counseled Schmidt’s office on media strategy and hosted Schmidt on a company chartered private jet. 

Radio host Port was the “winner of the Americans For Prosperity Award for Online Excellence” according to his biography on his Say Anything blog, and is also a policy fellow for the North Dakota Policy Council, a wing of the State Policy Network “stink tanks.”

Prior to interviewing Schmidt, Port had previously written an article on the same day the DeSmogBlog piece was published in response to it, exonerating Schmidt for what unfolded during the trip. His interview with Schmidt on the Jay Thomas Show did much the same.

KKR Press Release Writing “Not Unusual”

After explaining how she initially met Petraeus — who on top of his role at the KKR Global Institute, also works as an adjunct professor teaching KKR’s curriculum at CUNY Honors College, USC and Harvard University — Schmidt responded to a question by Port, saying it was “not something unusual” for KKRto draft the press release now published on the treasurer’s office website.

“We worked collaboratively with KKR to set things up. When you’re working with someone who has the caliber and in some cases security issues that I may not be aware of nor my staff, we always work together with staff of someone who’s coming to visit or someone of his caliber,” she said. “So to have them create a press release was not something unusual.”

Schmidt also cited another tie Petraeus has to North Dakota, which served as a major impetus for KKR and the treasurer’s office to co-manage the media scrupulously: Paula Broadwell.

Schmidt Thanks ND National Guard for Oil War

Petraeus resigned from the CIA in November 2012 after it got out that he had an extramarital affair with his biographer, Paula Broadwell.

Broadwell — author of the book, All In: The Education of General David Petraeus — is a native of Bismarck, ND, the final destination of Petraeus’ late-April trip to the state.

Bismarck, in turn, was a key part of the trip. While there, Petraeus gave a lecture on leadership to the North Dakota National Guard.

In introducing Petraeus at the National Guard event, Schmidt thanked the troops in attendance for fighting in a war “over there for the oil we all need.”

“David and I have been out in the western portion of North Dakota where we have shared with him the challenges we’ve been facing to help make our nation and our world an energy independent country so that you and your fellow officers and enlisted folks never have to go over there again in order to fight for the oil we all need,” said Schmidt in a video obtained via Freedom of Information request by DeSmogBlog from the North Dakota National Guard.

Schmidt also told Port the North Dakota treasurer’s office was happy to do the media bidding of both Petraeus and KKR to ensure the National Guard speaking event went smoothly.

“Most people are familiar with the indiscretion that [Petraeus] had and its relationship to North Dakota,” she told Port. “And I was concerned this would take on legs and have a life of its own and that was something none of us wanted to see happen…I did not want this to become something it was never intended to be.”

“Smell Test”

Port also said on the show that DeSmogBlog’s alleged claim that “[Petraeus] was kept from the media doesn’t pass the smell test.”

Read the rest of this entry →

Revealed: Former Energy in Depth Spokesman John Krohn Now at EIA Promoting Fracking

9:11 am in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog 

For those familiar with U.S. Energy Information Administration’s (EIA) work, objectivity and commitment to fact based on statistics come to mind. Yet as Mark Twain once put it, “There are three kinds of lies: lies, damned lies, and statistics.”
Untitled
That’s where John Krohn comes into play. A former spokesman for the gas industry front group Energy in Depth (EID), Krohn now works on the Core Team for EIA’s “Today in Energy!

Krohn has been at EIA since at least January 2014, when his name first appeared on the EIA website. On his Twitter account, he describes himself as an EIA communications manager.

As DeSmog revealed in February 2011, Energy In Depth was launched with a heavy injection of funding from oil and gas industry goliaths such as BP, Halliburton, Chevron, Shell and XTO Energy (now owned by ExxonMobil).

With its public relations efforts conducted by FTI Consulting, EID now serves as a key pro-industry front group promoting unfettered hydraulic fracturing (“fracking”) to the U.S. public.

Krohn follows in the footsteps through the government-industry revolving door of the man President Barack Obama named to head the U.S. Department of Energy (DOE) for his second term, former Massachusetts Institute of Technology “frackademic,” Ernest Moniz. DOE is the parent agency for EIA.

Further, EIA Administrator Adam Sieminski, another second-term appointee of President Obama, also passed through the same revolving door as Krohn and Moniz in his pathway to heading EIA. He formerly worked in the world of oil and gas finance. 

“From 1998 to 2005, he served as the director and energy strategist for Deutsche Bank’s global oil and gas equity team,” his EIA biography explains. “Prior to that, from 1988 to 1997, Mr. Sieminski was the senior energy analyst for NatWest Securities in the United States, covering the major U.S. international integrated oil companies.”

The revolving door, though, is as American as apple pie. What makes the Krohn appointment more alarming to some observers is what this means in the context of the potential looming shale gas and oil bubble.

This revelation comes after EIA downgraded its Monterey Shale oil reserves estimate from 13.7 billion barrels to 600 million barrels, a 96-percent decrease

EIA: “Seriously Exaggerating Shale Gas Production”

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Southwestern Energy Exec Mark Boling Admits Fracking Link to Climate Change

8:03 am in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog 

Fracking Rig

Even energy executives admit the high environmental cost of fracking.

An Executive of a major shale gas development company has conceded what scientists have been saying for years: global shale gas development has the potential to wreak serious climate change havoc.

Best known for his company’s hydraulic fracturing (“fracking”) activity,Southwestern Energy Executive Vice President Mark Boling admitted his industry has a methane problem on the May 19 episode of Showtime’s Years of Living Dangerously in a segment titled, “Chasing Methane.”

“I think some of those numbers, they certainly concern me,” Boling says on the show. “How could you say that that methane emission rate was one and a half percent – very, very difficult to there from here for that.”

Boling goes toe to toe in the segment with Cornell University Professor Anthony Ingraffea, who co-authored the 2011 paper now best known as the “Cornell Study.”

That study was the first to say that over its entire lifecycle, shale gas production is dirtier than coal due to the greenhouse gas trapping capacity of leaking methane. Numerous studies since then have depicted high leakage rates throughout the production lifecycle.

Brendan DeMelleDeSmogBlog Executive Director and Managing Editor, is also a featured guest on tonight’s episode. He discusses the well-funded climate change denial machine and attacks on renewable energy development in a segment titled, “Against the Wind.”

The Years of Living Dangerously episode coincides with the release of a new paper on fracking’s climate change impacts by Cornell Study co-author Professor Robert Howarth.

Howarth’s latest paper is titled, “A bridge to nowhere: methane emissions and the greenhouse gas footprint of natural gas,” a wordplay on the industry’s self-promotional pitch about gas being a “bridge fuel” to a clean energy future.

“Smoking is Addictive” Redux

Over 16 years ago, then Philip Morris chairman Geoffrey Bible testified before Congress that “tobacco is a risky product,” “plays a role in lung cancer” and that “cigarette smoking is addictive.”

It was a watershed moment for Big Tobacco. Only four years before that hearing, several tobacco industry CEOs testified under oath to Congress that nicotine is not addictive.

While not stated under congressional oath, Boling’s statement depicts the reality of shale gas development. That reality is denied by those such as former Chesapeake Energy CEO Aubrey McClendon, who says shale gas is “clean” and U.S. Rep. Nancy Pelosi (D-CA), who once said gas is both “clean” and not even a fossil fuel.

Put another way, history has repeated itself, with Mark Boling serving as fracking’s Geoffrey Bible. But does that mean Southwestern Energy plans to stop fracking? Hardly.

“No question, there’s work to be done,” he said on the show. “But we can all waste our time about ‘is it 4%, is it 8%, is it 1%’ or we could all just say ‘I don’t care what anyone thinks it is, let’s go out and fix the problem.’”

“Green Completions” the Fix?

Boling, along with others such as industry front group Energy in Depth and theEnvironmental Defense Fund, believe “green completions” of wells during the fracking process are the fix to the problem of methane leakage and accompanying climate change impacts.

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Gulf Stream: Williams Nixes Bluegrass Gas Export Pipeline, Announces New Export Line

12:45 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

Williams Companies logo

Under grassroots pressure, Williams pivots toward new pipeline plan.

Right before the champagne bottles began popping for activists engaged in agrassroots struggle to halt the construction of Williams Companies‘ prospective Bluegrass Pipeline project — which the company suspended indefinitely in an April 28 press release — Williams had already begun raining on the parade.

The pipeline industry giant took out the trash on Friday, April 25, announcing its intentions to open a new Louisiana pipeline named Gulf Trace.

Akin to TransCanada’s ANR Pipeline recently reported on by DeSmogBlog, Gulf Trace is not entirely “new,” per se. Rather, it’s the retooling of a pipeline system already in place, in this case Williams’ Transco Pipeline system.

The retooling has taken place in the aftermath of Cheniere’s Sabine Pass LNGexport facility receiving the first ever final gas export permit from the U.S.Federal Energy Regulatory Commission (FERC) during the fracking era.

Both ANR and Gulf Trace will feed into Sabine Pass, the Louisiana-based LNGexport terminal set to open for business in late 2015. Also like ANR, Transco will transform into a gas pipeline flowing in both directions, “bidirectional” in industry lingo.

Bluegrass, if ever built, also would transport fracked gas to the Gulf Coast export markets. But instead of LNG, Bluegrass is a natural gas liquids pipeline (NGL).

“The project…is designed to connect [NGLs] produced in the Marcellus-Utica areas in the U.S. Northeast with domestic and export markets in the U.S. Gulf Coast,” itexplained in an April 28 press release announcing the project’s suspension.

With Bluegrass tossed to the side for now, Williams already announced in a press release that the company has launched an open season to examine industry interest in Gulf Trace. It closes on May 8, 2014.

“Although we recognized the suspension of the Bluegrass could impact non-conventional drilling here in Western Pennsylvania, we should all know better than to get too excited about this announcement,” Carrie Hahn, a Pennsylvania-based activist told DeSmogBlog. “There is too much at stake here for them to give up that easily.”

The announcement follows in the aftermath of the flurry of federal-level lobbying activity by Williams during the first quarter of 2014.

Williams Spends Big Lobbying for Exports

First-quarter lobbying disclosure forms indicate Williams spent $450,000 lobbying at the federal level for both shale gas exports and pipeline permitting issues. It has done so utilizing both its in-house lobbyists and outside lobbying firms.

In-House Lobbyists 

In-house, Williams spent $410,000 on its own to advocate for gas exports and pipeline permitting issues during the first quarter. Williams’ lobbying efforts were headed by its vice president for governmental affairs, Deborah Lawrence anddirector of governmental affairs, Glenn Jackson.

Outside Lobbying Firms

No smart corporation makes a big announcement of this sort without first greasing the skids and Williams is no different in that regard, utilizing the age-old government-industry revolving door to curry favor.

In that vein, meet Ryan, MacKinnon, Vasapoli and Berzok, LLP, which Williams paid $40,000 to lobby on its behalf during the first quarter.

Lobbyist Thomas Ryan formerly served as chief counsel for the U.S. House Energy & Commerce Committee. That committee has pushed forward shale gas exports in a big way so far in 2014. Ryan is one of the lobbyists listed on the firm’s first-quarter disclosure form on the Williams file.

Jeffrey MacKinnon, another lobbyist listed on the firm’s lobbying disclosure form, also has close ties to the Energy & Commerce Committee. MacKinnon formerly served as legislative director for U.S. Rep. Joe Barton (R-TX), the climate change denier and former chairman of the Energy &Commerce Committee.

Add Joseph Vasapoli to the list, as well.

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Joe Biden Turns Fracking Missionary On Ukraine Trip

1:39 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog 

Caricature of Joe Biden

Joe Biden: Global fracking evangelist.

During his two-day visit this week to Kiev, Ukraine, Vice President Joe Biden unfurled President Barack Obama’s “U.S.Crisis Support Package for Ukraine.”

A key part of the package involves promoting the deployment of hydraulic fracturing (“fracking”) in Ukraine. Dean Neu, professor of accounting at York University in Toronto, describes this phenomenon in his book “Doing Missionary Work.” And in this case, it involves the U.S. acting as a modern-day missionary to spread the gospel of fracking to further its own interests.

With the ongoing Russian occupation of Crimea serving as the backdrop for the trip, Biden made Vladimir Putin’s Russia and its dominance of the global gas market one of the centerpieces of a key speech he gave while in Kiev.

“And as you attempt to pursue energy security, there’s no reason why you cannot be energy secure. I mean there isn’t. It will take time. It takes some difficult decisions, but it’s collectively within your power and the power of Europe and the United States,” Biden said.

“And we stand ready to assist you in reaching that. Imagine where you’d be today if you were able to tell Russia: Keep your gas. It would be a very different world you’d be facing today.”

The U.S. oil and gas industry has long lobbied to “weaponize” its fracking prowess to fend off Russian global gas market dominance. It’s done so primarily in two ways.

One way: by transforming the U.S. State Department into a global promoter of fracking via its Unconventional Gas Technical Engagement Program (formerly theGlobal Shale Gas Initiative), which is a key, albeit less talked about, part of President Obama’s “Climate Action Plan.”

The other way: by exporting U.S. fracked gas to the global market, namely EUcountries currently heavily dependent on Russia’s gas spigot.

In this sense, the crisis in Ukraine — as Naomi Klein pointed out in a recent article — has merely served as a “shock doctrine” excuse to push through plans that were already long in the making. In other words, it’s “old wine in a new bottle.”

Gas “Support Package” Details

Within the energy security section of the aid package, the White House promises in “the coming weeks, expert teams from several U.S. government agencies will travel to the region to help Ukraine meet immediate and longer term energy needs.”

That section contains three main things the U.S. will do to ensure U.S. oil and gas companies continue to profit during this geopolitical stand-off.

1) Help with pipelines and securing access to gas at the midstream level of production.

“Today, a U.S. interagency expert team arrived in Kyiv to help Ukraine secure reverse flows of natural gas from its European neighbors,” the White House fact sheet explains. “Reverse flows of natural gas will provide Ukraine with additional immediate sources of energy.”

2) Technical assistance to help boost conventional gas production in Ukraine. That is, gas obtained not from fracking and horizontal drilling, but via traditional vertical drilling.

As the White House explains, “U.S. technical experts will join with the European Bank for Reconstruction and Development and others in May to help Ukraine develop a public-private investment initiative to increase conventional gas production from existing fields to boost domestic energy supply.”

3) Shale gas missionary work.

“A technical team will also engage the government on measures that will help the Ukrainian government ensure swift and environmentally sustainable implementation of contracts signed in 2013 for shale gas development,” says the White House.

ExxonMobil Teaching Russia Fracking

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