Stephen Rees's blog

Thoughts about the relationships between transport and the urban area it serves

Posts Tagged ‘fracking

The true cost of Fracking

leave a comment »

This Eye-Opening Infographic May Surprise You
There are significant pros and cons, making fracking a highly controversial issue.
By Reynard Loki / AlterNet May 23, 2016,

the-true-cost-of-fracking-dv3

Written by Stephen Rees

February 26, 2018 at 6:18 pm

Posted in energy, Environment

Tagged with

70 PERCENT OF OIL & GAS COMPANIES STILL FAIL TO ADEQUATELY DISCLOSE RISKS TO INVESTORS

with 2 comments

infographic_wip-09201

This post is comprised of information that came into my email inbox as a press release. Regular readers of this blog will know that I have been increasingly critical of Christy Clark’s claims about LNG and how it is a “cleaner” fuel than coal. The problem is that fracking for gas releases a lot of methane – a far more powerful greenhouse gas than CO2 – and the companies responsible for that are less than forthcoming about how large the problem is.

Since a few, no doubt industry sponsored, trolls now pop up whenever I mention fracking, I thought I would let them have something to chew on. You, of course, have already divested from fossil fuels, so you don’t really need this.

 

BOSTON, MA///December 17, 2015///The 2015 edition of an annual investor scorecard ranking the 30 largest oil and gas companies engaged in hydraulic fracturing, or “fracking,” finds improved risk disclosure by a few companies, even as 70 percent of the energy companies continue to get failing marks.

Available online at www.disclosingthefacts.org, the third annual Disclosing the Facts report from As You Sow, Boston Common Asset Management, and the Investor Environmental Health Network (IEHN) gauges how well the oil and gas companies do in providing information so that investors can accurately assess how, or whether, these companies manage key risks of fracking, including use of toxic chemicals, water consumption and water quality, waste management, air emissions, methane leakage, and community impacts.

Eight oil and gas companies made substantial progress in their 2015 disclosures, spurred in part by the earlier scorecards as well as by shareholder engagements involving a wide range of investors. BHP Billiton emerged as the highest-scoring company for the second year in a row — almost doubling its 2014 score from 18 to 32 points, out of a possible 39 points. Hess (2nd), Apache (3rd), and Noble (tied for 4th) built on their leadership positions from 2014, disclosing information for about half of the scorecard indicators. Also tied for fourth, CONSOL nearly quadrupled its 2014 score, jumping from five to 19 points by securing third-party certification for compliance with the best practice standards of the Center for Sustainable Shale Development.

In addition to the top five companies, three other companies — Southwestern Energy Co. (6th), Anadarko Petroleum Corp. (tied for 7th), and QEP Resources, Inc. (tied for 7th) — made substantial gains in 2015.

Exxon Mobil, the largest of the companies scored, earned 4 points, placing it in the bottom third of the industry.

The new report also scores companies on their disclosure of methane leakage, a key concern because methane is far more potent a greenhouse gas than carbon dioxide (CO2). For the second year in a row, most companies failed to disclose their methane leakage rate or how often they monitor for leakage. In 2015, just five of 30 companies disclosed their methane emission rates from drilling and other operations. Not a single company reported establishing public methane emission reduction goals.

“The results of the 2015 scorecard show that corporate disclosure efforts have increased among a core group of industry leaders, despite enormous financial write-offs by the industry,” said Richard Liroff, executive director of IEHN. “A handful of companies have clearly responded and risen to our challenge. Unfortunately, reporting on many of the key metrics is still absent for most companies, making it difficult for investors and the public to assess and compare performance. Methane reporting, in particular, is almost non-existent among the companies we surveyed.”

“It is encouraging to see a new company—CONSOL– jumping into the top five in this year’s scorecard. But we need to see a bigger commitment from the industry in general,” said Danielle Fugere, president of As You Sow. “While progress has been made, companies must improve their local disclosures — their social license to operate is often determined by local concerns such as land and water use, air and water pollution, and nuisances such as noise, light pollution, traffic, and road damage.”

“The report shows that several good practices are becoming more widespread. We see companies continue to pursue operating innovations that not only save money but also yield environmental benefits. These include, for example, substituting pipelines for trucks to move water and waste water, enhancing leak detection and repair efforts, and using less, but safer and more cost-effective chemicals,” said Steven Heim, managing director of Boston Common Asset Management. “Absent greater disclosure on things like methane, other air emissions, and growing concerns around induced seismicity, investors have no way of crediting those companies making meaningful efforts to adopt best practices and mitigate their impacts on communities and the environment.”

This 2015 scorecard benchmarks the public disclosures of 30 companies on 39 key performance indicators. It distinguishes companies disclosing more about practices and impacts from those disclosing less. The scorecard assesses five areas of environmental, social, and governance metrics emphasizing, on a play-by-play basis, quantitative disclosures for: (1) toxic chemicals; (2) water and waste management; (3) air emissions; (4) community impacts; and (5) management accountability. It relies solely on publicly available information companies provide on their websites or in corporate financial statements or other reports linked from their websites.

The five most widely reported indicators include: substituting pipelines for trucks to transport water for fracturing (23 companies); declaring a practice to use non-potable water instead of fresh water for fracturing whenever feasible (19 companies); avoiding use of diesel fuel in hydraulic fracturing fluids (16 companies); relying on independent third-party databases to screen potential contractors (16 companies); and linking compensation of senior management to health, safety, and environment metrics (15 companies).

The complete ranking of the 30 companies is as follows:

______________________________________________

COMPANY*                                   SCORE (OUT OF POSSIBLE 39 POINTS)**

Company and Ticker Symbol 2015 Score 2014 Score
BHP Billiton Ltd. (BHP) 32 18
Hess Corp. (HES) 21 17
Apache Corp. (APA) 20 13
Noble Energy, Inc. (NBL) 19 13
CONSOL Energy Inc. (CNX) 19 5
Southwestern Energy Co. (SWN) 16 2
Anadarko Petroleum Corp. (APC) 15 8
QEP Resources, Inc. (QEP) 15 1
EQT Corp. (EQT) 14 16
ConocoPhillips Corp. (COP) 11 5
Range Resources Corp. (RRC) 11 9
Royal Dutch Shell plc (RDS) 11 9
Occidental Petroleum Corp. (OXY) 10 7
Penn Virginia Corp. (PVA) 10 9
BP plc (BP) 8 6
Cabot Oil & Gas Corp. (COG) 8 8
Encana Corp. (ECA) 8 15
EOG Resources, Inc. (EOG) 8 9
Exco Resources, Inc. (XCO) 7 7
Devon Energy Corp. (DVN) 7 5
Newfield Exploration Co. (NFX) 6 4
Chesapeake Energy Corp. (CHK) 4 7
Chevron Corp. (CVX) 4 6
Exxon Mobil Corp. (XOM) 4 5
Pioneer Natural Resources Co.* (PXD) 3
Ultra Petroleum Corp. (UPL) 3 9
WPX Energy, Inc. (WPX) 3 3
Continental Resources, Inc. (CLR) 2 2
Whiting Petroleum Corp. (WLL) 2 3
Carrizo Oil & Gas, Inc. (CRZO) 0 0

*For the 2015 scorecard, Pioneer Natural Resources was substituted for Talisman Energy, Inc., which was acquired by Repsol, S.A. **2014’s scorecard had a total of 35 possible points.

The three most significant scoring changes on indicators between 2014 and 2015 were for: play-by-play reporting of the types of water sources used for fracturing activities (from one to six companies); percentages of wastewater reused for fracturing (from two to seven); and addressing naturally occurring radioactive materials (NORMs) (from six to 12).

ABOUT THE GROUPS

As You Sow (http://www.asyousow.org/) promotes environmental and social corporate responsibility through shareholder advocacy, coalition building, and innovative legal strategies. Its efforts create large-scale systemic change by establishing sustainable and equitable corporate practices.

Boston Common Asset Management, LLC (http://www.bostoncommonasset.com/) is a sustainable investment firm dedicated to generating competitive financial returns and meaningful improvements in corporate performance on environmental, social, and governance (ESG) issues. We are long-term investors. We believe that markets typically misvalue the timing and magnitude of risks and opportunities presented by ESG factors. Therefore, our investment strategy is to build and grow diversified portfolios using the high-quality but undervalued sustainable stocks that our integrated investment research identifies. As part of this, we look to add value through targeted company and industry engagement efforts.

The Investor Environmental Health Network (http://www.iehn.org) is a collaborative partnership of investment managers and advisors concerned about the impact of corporate practices on environmental health.

Written by Stephen Rees

December 17, 2015 at 11:23 am

Posted in energy, greenhouse gas reduction

Tagged with ,

The Dangers of Fracking

with 7 comments

And come to that the dangers of commenting on press articles on line. Recently I posted something using Disqus: it was in response to an article in a Squamish newspaper about the proposed LNG plant. Oddly, nothing in the article, or in the response to that time spoke to the source of the gas. That will come from an expansion of fracking – the practice of releasing hydrocarbons from “tight formations” which has been expanded very rapidly in North America in recent years. The process creates fractures in the oil and gas bearing rocks by injecting water and mix of chemicals under high pressure.

To be clear, I oppose any expansion of fossil fuel use. There is only one way that we are going to be able to slow down our current headlong rush to global catastrophe and that is to Leave It In The Ground. Most of the reserves of oil, gas and coil must not be extracted and burned. Fortunately, the alternative renewable resources are both economically and environmentally attractive – and are getting cheaper. There is much more employment potential in renewables too, so the previously perceived “choice” between the environment or the economy is now a false dichotomy.

Expansion of LNG export terminals in BC seems increasingly unlikely based on any realistic analysis of the finances but Christy Clark has yet to concede this, and is perfectly capable of continuing to increase the public subsidy of this folly. We are actually paying foreign corporations to exploit this resource, which would otherwise be unmarketable. So if the GHG use of fossil fuels is not persuasive enough, the record of fracking needs to be examined. There are two points I made – the first is that methane is released by fracking in a manner which makes it difficult to capture – or even measure. Since methane is a far more powerful greenhouse gas than CO2 that is cause for caution in itself. But there is also the effect of putting injecting water into the ground. Poisoning wells is the least of it (though the youtube videos of setting kitchen faucets alight seem entertaining). We live in a seismically unstable region. There will be a huge earthquake out underneath the ocean, probably south of Haida Gwai. (I wrote that last sentence on April 23 at 10:45. This morning there was an M6.2 in exactly that location but without a tsunami.) With huge a tsunami and lots of damage. But there is plenty of risk of on shore activity too: it will be smaller but also destructive in nature.

Now of course as soon as my post appeared the on line trolls leapt on it. At least some of them are going to be in the pay of the gas drillers or the proponents of LNG expansion. They are spending a fortune on PR efforts around pipeline and terminal expansion – and no contrary opinions must be allowed to go unchallenged. A Google search for “fracking in bc” turns up nearly a million hits.

I want to draw your attention to Oklahoma. There have been a lot of earthquakes recently in Oklahoma, and the spin doctors have been doing their best to deflect responsibility away from fracking. The state government seemed to have been persuaded. Up until now. The state is now admitting that fracking causes the earthquakes. There is also more coverage of the wider impact from the New York Times.

If you do not want to admit that global warming is a problem that is caused by burning fossil fuels, then I think you are unreachable by reason or argument. But then that process of proof by belief in a political doctrine appears to have taken hold with the Conservative faithful here as it has in the US. You can probably also cheerfully ignore the impact of poisoning the water supply: after all it is unlikely to affect us here and we have been seemingly unconcerned about the state of the water on reserves – especially those impacted by the tar sands. But the risk of increasing earthquakes ought to be something you take seriously here. Even though our present government seems to be quite content to leave schools in Vancouver vulnerable to the inevitable.

POSTSCRIPT Bloomberg is now forecasting that Half of U.S. Fracking Companies Will Be Dead or Sold This Year

Written by Stephen Rees

April 23, 2015 at 10:56 am