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Fracking is depleting water supplies in America’s driest areas, report shows
Suzanne Goldenberg, The Guardian
America’s oil and gas rush is depleting water supplies in the driest and most drought-prone areas of the country, from Texas to California, new research has found.
Of the nearly 40,000 oil and gas wells drilled since 2011, three-quarters were located in areas where water is scarce, and 55% were in areas experiencing drought, the report by the Ceres investor network found.
Fracking those wells used 97bn gallons of water, raising new concerns about unforeseen costs of America’s energy rush.
"Hydraulic fracturing is increasing competitive pressures for water in some of the country’s most water-stressed and drought-ridden regions," said Mindy Lubber, president of the Ceres green investors’ network.
Without new tougher regulations on water use, she warned industry could be on a "collision course" with other water users.
"It’s a wake-up call," said Prof James Famiglietti, a hydrologist at the University of California, Irvine. "We understand as a country that we need more energy but it is time to have a conversation about what impacts there are, and do our best to try to minimise any damage."…
(5 February 2014)
Link to the report page
Why Shale Oil Boosters Are Charlatans In Disguise
James Gruber, Forbes
Something has bothered me of late: why is the price of crude oil still elevated? Other commodities have taken a battering since 2011. Gold, copper and iron ore – all are way down off their peaks. But oil has seemingly defied gravity. And that’s despite increased supply from shale oil in the U.S., still soft demand particularly in the developed world and declining rates of inflation growth across the globe.
What gives? Well, shale oil proponents will say falling oil prices are just a matter of time. And that the boom in shale oil will reduce U.S. reliance on foreign oil, leading to cheaper local oil, which will free up household budgets and spur consumption as well as the broader economy. Perhaps … though I’d have thought all of that would be already reflected in prices.
On the other side, you have “peak oil” supporters who suggest high oil prices are perfectly natural when oil production has peaked, or at least the good stuff has disappeared. Yet the boom in U.S. shale oil appears to put at least a partial dent in this thesis.
There may be a better explanation, however. It comes from UK sell-side analyst, Tim Morgan, in an important new book called Life After Growth. In it, he suggests that the era of cheap energy is over. That the new unconventional forms of oil are far less efficient than old ones, meaning they require significant amounts of energy to produce. In effect, the energy production versus energy cost of extraction equation is rapidly deteriorating.
Morgan goes a step further though. He says cheap energy has been central to the extraordinary economic growth generated since the Industrial Revolution. And without that cheap energy, future growth will be permanently impaired.
It’s a bold view that’s solidified my own thinking that higher energy prices are here to stay. And the link between cheap energy and economic growth is fascinating and worth exploring further today. Particularly given the implications for the world’s fastest-growing and most energy-intensive region, Asia….
(26 January 2014)
Risks of Fracking Boom Draw Renewed Attention from Investors
Sharon Kelly, DeSmog Blog
A coalition of investors called out five oil and gas companies for failing to measure or reduce risks associated with fracking on Tuesday, singling out companies both large and small for how they’ve handled the myriad risks associated with shale oil…