You are browsing the archive for T. Boone Pickens.

Documents: Cheniere Fuels ALEC’s New Push for Fracked Gas Exports

7:18 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

Two LNG storage tanks, one labelled with Cheniere logo

Cheniere is pushing ALEC to encourage exporting of fracked gas.

Today, legislative and lobbyist members of the American Legislative Exchange Council (ALEC) voted on model legislation promoting both exports of gas obtained via hydraulic fracturing (“fracking”) and vehicles powered by compressed natural gas (CNG).

Dubbed a “corporate bill mill” by its critics, ALEC is heavily engaged in a state-level effort to attack renewable energy and grease the skids for exports of U.S. oil and gas. Today’s bills up for a vote — as conveyed in an ALEC mailer sent out on June 25 by ALEC’s Energy, Environment and Agriculture Task Force — are titled “Resolution In Support of Expanded Liquefied Natural Gas Exports“ and “Weights and Measures and Standards for Dispensing CNG and LNG Motor Fuels.”

An exclusive investigation conducted by DeSmogBlog reveals that Cheniere — the first U.S. company to receive a final liquefied natural gas (LNG) export permit by the U.S. Federal Energy Regulatory Commission (FERC) — has acted as the lead corporate backer of the LNG exports model resolution.

Further, Clean Energy Fuels Corporation, owned by energy baron T. Boone Pickens, of Pickens Plan fame, and trade associations it is a member of, served as the main pusher of the CNG model resolution.

ALEC has served as a key vehicle through which the fracking industry has curried favor and pushed for policies favorable to their bottom lines in statehouses nationwide. Now ALEC and its corporate backers have upped the ante, pushing policies that will lock in downstream demand for fracked gas for years to come.

With Cheniere becoming an ALEC dues-paying member in May 2013 and with America’s Natural Gas Alliance (ANGA) — the fracking industry’s tour de force — crowned an ALEC member in August 2013, it looks like many more fracking-friendly model bills could arise out of ALEC in the months and years ahead.

According to a document obtained by the Center for Media and Democracy, top ALEC 2014 Annual Meeting sponsors in Dallas include ANGA, ExxonMobil, Chevron, Devon Energy, and TransCanada, among others.

LNG exports will serve as the focus for part one of this series, while CNG vehicles will serve as the focus for part two.

“LNG Day”

The genesis of the Cheniere-backed model bill is tied to a March 26 “LNG Day” reception put together in Baton Rouge, La. on March 26 by the influential lobbying firm, The Picard Group.

“LNG Day gives Legislators the opportunity to learn more about the benefits of natural gas,” exclaimed a press release featuring a photo of the event taken by Dawn Cole of The Picard Group. “Attendance was great and the day was successful.”

That release was disseminated by the Louisiana Mid-Continent Oil and Gas Association, of which Cheniere is a member. Among The Picard Group’s clients: Cheniere, which it is registered to lobby for in Louisiana.

Emails obtained by DeSmogBlog under Louisiana Public Records Act reveal that Laura MacDiarmid, who works as a government and environmental affairs analyst for Cheniere, was copied on email outreach by The Picard Group to Louisiana state representatives inviting them to participate in LNG Day.

Further, “Our Energy Moment“ — the gas industry-funded propaganda campaign promoting LNG exports — put out a release of its own promoting “LNG Day.”

That release featured a quote from Jason French, listed only as a “spokesperson for the Our Energy Moment coalition” in the release. In reality, French serves as director of government and public affairs for Cheniere.

French wrote an article published in the July/August 2013 edition of “Inside ALEC” titled, “LNG Exports – A Story of American Innovation and Economic Opportunity” and also gave a presentation on LNG exports at ALEC’s 2013 Annual Meeting held in Chicago, Ill.

Via email, French confirmed with DeSmogBlog that he will also be giving a presentation at this year’s ALEC meeting in Dallas on LNG exports immediately before the model resolution promoting them receives a vote by ALEC member legislators and corporate lobbyists.

LNG Day, though, was more than a gas industry-manufactured media event. Out of it arose House Concurrent Resolution 29, co-sponsored by Speaker of The House, Rep. Chuck Kleckley and Sen. John A. Alario, Jr. (an ALEC member).

Alario, Jr. has taken significant campaign money from LNG exporters, such as ExxonMobil, Energy Transfer Partners and Sempra.

After HCR 29 passed the House under suspended rules, it also passed unanimously in a 36-0 vote in the Senate on March 25. The next evening after the lights went off on the day-time LNG Day festivities, lobbyists and legislators convened for a corporate-sponsored reception at the Jimmie Davis House.

Among the sponsors — a copy of the invitation obtained via Louisiana Public Records Act shows — were those set to benefit most from a policy of plentiful LNG exports: the frackers and the LNG exporters, such as Chesapeake Energy, ANGA, Our Energy Moment, Cheniere, Trunkline LNG, Magnolia LNG and Sempra LNG and others.

Guessing at Numbers and Figures

The language found within HCR 29 mirrors that found within the ALEC model resolution.

Read the rest of this entry →

Documents: ALEC’s Looming Attacks on Clean Energy, Fracking Laws, Greenhouse Gas Regulations

4:05 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

The Guardian has released another must-read piece about the American Legislative Exchange Council (ALEC), this time laying bare its anti-environmental agenda for 2014.

The paper obtained ALEC’s 2013 Annual Meeting Policy Report, which revealed that ALEC — dubbed a “corporate bill mill” for the statehouses by the Center for Media and Democracy — plans more attacks on clean energy laws, an onslaught of regulations pertaining tohydraulic fracturing (“fracking”) and waging war against Environmental Protection Agency (EPA) greenhouse gas regulations.

“Over the coming year, [ALEC] will promote legislation with goals ranging from penalising individual homeowners and weakening state clean energy regulations, to blocking the Environmental Protection Agency, which is Barack Obama’s main channel for climate action,” explained The Guardian. “Details of ALEC’s strategy to block clean energy development at every stage, from the individual rooftop to the White House, are revealed as the group gathers for its policy summit in Washington this week.”

The documents also reveal ALEC’s boasting of introducing myriad “model resolutions” nationwide in support of fast-tracking approval for the northern half of Transcanada’s Keystone XL pipeline, along with another “model bill” — the “Transfer of Public Lands Act” already introduced in Utah — set to expropriate federally-owned public lands to oil, gas and coal companies.

Attacks from Household to White House

Among the more interesting discoveries by The Guardian: ALEC has plans to attack clean energy from the household-level to the White House-level, working in service to its utility industry members’ unfettered profits.

John Eick, legislative analyst for ALEC’s Energy, Environmental and Agriculture Task Force, told The Guardian that ALEC is closely scrutinizing “how individual homeowners with solar panels are compensated for feeding surplus electricity back into the grid.”

“As it stands now, those direct generation customers are essentially freeriders on the system,” Eick told The Guardian. “They are not paying for the infrastructure they are using. In effect, all the other non direct generation customers are being penalised.”

Yet, far from a “free ride,” a report commissioned by the Arizona Public Service found household solar panels offer a “range of benefits.” Distributed energy generation defers the need for capital allocation into utility investments, saving ratepayers money in avoiding investments into expensive utility projects.

Not limiting itself to penalizing those installing solar panels on their homes, ALEC has also joined the right wing echo chamber in waging war against President Barack Obama’s push to regulate coal-fired power plants and has a model resolution that will be voted on at its States and Nation Summit taking place this week in Washington, DC.

“ALEC is very concerned about the potential economic impact of greenhouse gas regulation on electricity prices and the harm EPA regulations may have on the economic recovery,” the resolution reads.

This effort is in line with its previous efforts, coining EPA regulations of greenhouse gases a “regulatory trainwreck” and calling for a two-year regulatory moratorium.

ALEC’s Frack Attack

Read the rest of this entry →

The Geopolitics of Energy: An Interview with Steve Horn

9:14 am in Uncategorized by Steve Horn

Cross-Posted from Frack the Media

If there is an up-and-coming investigative journalist to follow, it’s Steve Horn of DeSmog Blog. If you follow any of Frack The Media’s social media, you’ve been exposed to Steve. What draws us to Steve (and others like him) is his attention to detail surrounding the energy issue. It’s a multifaceted, highly complex and propagated geopolitical issue — regular reports often miss these intricacies (as mainstream media outlets tend to gloss over complex topics ). Long story short, we got to pick Steve’s brain and highlight some of the important investigative work he does.

Frack The Media: A lot of your reporting has focused on fracking and tar sands. What draws you to these particular issues?

Steve Horn: I focus on these issues for a number of reasons. Most importantly, the majority of the reporting on these issues by U.S. and Canadian reporters only grazes the surface, treating them as only environmental issues or only as energy issues. That’s not the case.

Given my academic background is in sociology and history and my keen interest in geopolitics, there is far more to these issues than meets the eye at face-value. I use my “sociological imagination,” as C. Wright Mills put it, when doing reporting on these issues. That means being an ecologist and looking at how the local interconnects with the global and looking at energy as not only an environmental issue, but also as a geopolitical issue.

In the case of fracking and tar sands, they’re the two biggest sources of energy that have transformed the U.S. and Canada into the “New Saudi Arabia” for oil and gas, huge players in the geopolitical “great game,” as Zbiginiew Brzezinski once put it. Not only are these important issues because they’re ravaging ecosystems and racing us to climate change catastrophe, but they’re also reshaping geopolitics as we know it.

There will still be wars for oil of course, as it’s a cornerstone of U.S. geopolitical planning. But given tar sands and fracking are both seen as political pawn chips on the “Grand Chessboard” to fend off Russian dominance of the global gas market and Saudi/Russian dominance of the global oil market, these issues aren’t going away anytime soon without a hell of a fight by grassroots activists, regardless of the idealism of some well-meaning environmentalists. That means busy times for an investigative journalist and endless stories to tell, an incredible time to be in the business to say the least.

FTM: You’ve reported on the industry influence of academic research on fracking (“frackademia”). Can you explain this issue and it’s significance?

Read the rest of this entry →

Obama Climate Plan a Full-Throttle Fracking Endorsement

2:35 pm in Uncategorized by Steve Horn

Cross-Posted from DeSmogBlog

Today, President Barack Obama announced his administration’s “Climate Action Plan” for cutting carbon pollution in his second term in the Oval Office at Georgetown University and unfortunately, it’s a full-throttle endorsement of every aspect of fracking and the global shale gas market.

Hydraulic fracturing (“fracking”) is the toxic horizontal drilling process via which gas is obtained from shale rock basins around the world, and touting its expanded use flies in the face of any legitimate plan to tackle climate change or create a healthy future for children.

Here is what President Obama said today at Georgetown about natural gas and fracking:

Now even as we’re producing more domestic oil, we’re also burning more clean-burning natural gas than any country on earth. And again, sometimes there are disputes about natural gas, but we should strengthen our position as the top natural gas producer because in the medium-term at least, it can provide not only safe cheap power, but it can only help reduce our carbon emissions.

Federally-supported technology has helped our businesses drill more effectively and extract more gas. And now we’ll keep working with the industry to keep making drilling cleaner and safer, make sure that we’re not seeing methane emissions, and to put people to work, modernizing our modern infrastructure so that we can power more homes and businesses with cleaner energy. The bottom line is natural gas is creating jobs, it’s lowering many familes’ heat and power bills and it’s the transition fuel that can power our economy with less carbon pollution, even as our businesses work to develop and then deploy more of the even cleaner technology for the energy economy of the future.

The “Fact Sheet” announcing the Plan further explains:

We have a moral obligation to leave our children a planet that’s not polluted or damaged, and by taking an all-of-the-above approach to develop homegrown energy and steady, responsible steps to cut carbon pollution, we can protect our kids’ health and begin to slow the effects of climate change so we leave a cleaner, more stable environment for future generations.

This portion of the plan alone – not to mention anything else problematic found within it, such as endorsement of nuclear energy and illusory “clean coal”/carbon capture and storage (CCS) technology – would prevent the actions outlined in his Fact Sheet from taking place.

In fact, children’s health and air quality nationwide are directly threatened by the promotion of further fracking and natural gas drilling activity. There is a clear disconnect between the president’s stated commitment to a healthy future for children, and the vast expansion of natural gas drilling and fracking, which are scientifically proven to be polluting the air and drinking water of Americans.

“Burning natural gas is about one-half as carbon-intensive as coal, which can make it a critical ‘bridge fuel’ for many countries as the world transitions to even cleaner sources of energy,” reads the plan.

That premise is false. When measured in its entire life cycle – as Cornell University researchers found - fracked gas is actually dirtier than coal and therefore is a bridge to nowhere other than extreme climate disruption. That’s due to fugitive methane emissions, conveniently left out of the climate plan: methane is a greenhouse gas far more potent than carbon dioxide.

Endorsement of Shale Gas Exports, Global Fracking Development, Pickens Plan

Obama’s plan also boasts about bringing the U.S. model for fracking abroad through the U.S. State Department’s Global Shale Gas Initiative, now called the Unconventional Gas Technical Engagement Program.

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 →

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.