December 2011 archive

Well worth the 50 minutes.

Conversations host Harry Kreisler welcomes writer Glenn Greenwald for a discussion of his new book, “With Liberty and Justice for Some.” Greenwald traces his intellectual odyssey; analyzes the relationship between principle, power, and law; and describes the erosion of the rule of law in the United States. Highlighting the degree to which the legal system frees the powerful from accountability while harshly treating the powerless, Greenwald describes the origins of the current system, its repudiation of American ideals, and the mechanisms which sustain it. He then analyzes the media’s abdication of its role as watchdog role. He concludes with a survey of the the record of the Obama administration in fulfilling its mandate, argues for an alternative politics, and offers advice for students as they prepare for the future. Series: “Conversations with History”

h/t Michael Kwiatkowski @ Progressive Independence

“Punting the Pundits” is an Open Thread. It is a selection of editorials and opinions from around the news medium and the internet blogs. The intent is to provide a forum for your reactions and opinions, not just to the opinions presented, but to what ever you find important.

Thanks to ek hornbeck, click on the link and you can access all the past “Punting the Pundits”.

Paul Krugman: Depression and Democracy

It’s time to start calling the current situation what it is: a depression. True, it’s not a full replay of the Great Depression, but that’s cold comfort. Unemployment in both America and Europe remains disastrously high. Leaders and institutions are increasingly discredited. And democratic values are under siege.

On that last point, I am not being alarmist. On the political as on the economic front it’s important not to fall into the “not as bad as” trap. High unemployment isn’t O.K. just because it hasn’t hit 1933 levels; ominous political trends shouldn’t be dismissed just because there’s no Hitler in sight.

Robert Reich: The Remarkable Political Stupidity of Wall Street

Wall Street is its own worst enemy. It should have welcomed new financial regulation as a means of restoring public trust. Instead, it’s busily shredding new regulations and making the public more distrustful than ever.

The Street’s biggest lobbying groups have just filed a lawsuit against the Commodities Futures Trading Commission, seeking to overturn its new rule limiting speculative trading.

For years Wall Street has speculated like mad in futures markets – food, oil, other commodities – causing prices to fluctuate wildly. The Street makes bundles from these gyrations, but they have raised costs for consumers.

In other words, a small portion of what you and I pay for food and energy has been going into the pockets of Wall Street. It’s just another hidden redistribution from the middle class and poor to the rich.

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

Find the past “On This Day in History” here.

December 12 is the 346th day of the year (347th in leap years) in the Gregorian calendar. There are 19 days remaining until the end of the year.

On this day in 1787, Pennsylvania becomes the second state to ratify the Constitution, by a vote of 46 to 23. Pennsylvania was the first large state to ratify, as well as the first state to endure a serious Anti-Federalist challenge to ratification.

Pennsylvania drafted the most radical of the state constitutions during the War for Independence. By excluding Quakers and all other pacifists unwilling to take oaths of allegiance to the Revolutionary cause, a fervently anti-British and anti-Indian Scots-Irish faction had seized power for the first time in the remarkably diverse state. Only when pacifists were again able to exercise the franchise in peacetime was it conceivable that the more conservative U.S. Constitution might pass in Pennsylvania. Large states had the most to lose by joining a strengthened union. James Wilson’s genius in describing the nature of layered sovereignty in a federal republic, using the solar system as an analogy, was invaluable in convincing Pennsylvanians to ratify. Anti-Federalists found themselves in the hypocritical position of criticizing the federal Constitution for failing to codify the freedom of religious practice they had actively denied their fellow citizens during the War for Independence.

The politically motivated decision to block the sale of Plan B Emergency Contraception to under seventeen year old women without a prescription by Health and Human Services Secretary Kathleen Sebelius that was blessed by President Obama has outraged women’s groups, doctors and, yes, the FDA.

Amanda Marcotte expressed her views on Obama using politics to trump science, common sense and good parenting:

No one wants 11-year-olds to have sex, of course, but that concern shouldn’t play a role in this. In a press release addressing Sebelius’s decision, the Guttmacher Institute, a nonpartisan research institute that studies sexual health, noted that fewer than 1 percent of 11-year-olds are sexually active, but almost half of teenage girls are having sex by age 17. There’s no evidence to suggest that making Plan B available to all teenagers will somehow push younger teenagers to start having sex in greater numbers. If Sebelius actually had concerns about the effect of this drug on the behavior of younger teenagers, she could have looked to Canada, where Plan B is sold over the counter without age restrictions, with no discernible outbreaks of promiscuity in junior high school. Meanwhile, the United States still has a teen birth rate three times that of Canada’s, which easy access to Plan B could help curb.

Over the past decade, more than 70 medical organizations, the bulk of the FDA’s review committees, the Union of Concerned Scientists, and the Center for Drug Evaluation and Research have all endorsed selling Plan B over the counter with no age restrictions. The only person left standing against the switch is a career politician with a background of lobbying on the behalf of trial lawyers, whose job depends on her boss getting re-elected. Sebelius’s claim that she’s standing up for better science instead of pandering to American fears about teenage sexuality sounds hollow. As hollow as all those Republicans who flaunt the experts to deny climate change.

Why Obama’s ‘Plan B’ Decision Is Wrong

Health and Human Services Secretary Kathleen Sebelius has stunned the women’s health community by halting the implementation of over-the-counter sales of the Plan B morning after emergency contraceptive pill to girls under the age of 17. Now, President Obama has come out saying that – as a father of two girls – he supports Sebelius’ common sense move. But was it a common sense move, Mr. President? Offering Plan B over the counter would have helped stem the tide of teenage pregnancies in America. Sure, Plan B is currently available to younger girls with a prescription, but many girls won’t or can’t get to a doctor in the first 72 hours after having unprotected sex. And sometimes those who do are running into activist doctors who refuse to write a prescription or activist pharmacists who won’t fill it, leaving girls out in the cold having to face a much more invasive abortion to terminate a potential pregnancy. And it’s not like plan B is a dangerous drug, it’s simply got a stronger dose of the hormone progestin than what’s found in regular birth control. If it’s a safety issue, there are far more dangerous things a 13 year old girl could walk into Rite Aid and buy. Any fear that the wider availability of the pill would increase sexual promiscuity ignores the fact that the pill isn’t cheap, plus a lot of stores would keep them in those locked cabinets with the condoms so kids couldn’t easily steal them.

The truth of the matter is that science and common sense clearly pointed in one direction, but the politics of the situation in an election year pointed in the other. It’s just a shame that the Obama administration chose what’s politically convenient over what’s really best for the nation’s daughters–making sure they don’t put their lives on the slow track by having a baby at age 14, 15, or 16. If you agree with me, help spread this message.

The Food and  Drug Administration approved the Plan B morning after contraceptive pill to be sold over the counter. But on Wednesday the Obama administration overruled the decision. Dr. Susan Wood, former FDA Assistant Commissioner for Women’s Health, joined Chris Hayes and his panel to talk about the controversial intervention.

Jon Walker summed up that this is what pro-choice groups and pro-choice women legislators in the House get for not fighting Obama’s alliance with Bart Stupak over restricting access to abortion in the ACA bill and, again, when Republicans prevented the District of Columbia from using city money to pay for abortion:

During the health care reform fight the women’s reproductive rights groups and legislators were basically sold out. President Obama decided to cut a deal with Bart Stupak’s Gang. He assumed that the pro-choice and women legislators in the House and pro-choice groups would just fall in line, and they did with very little fighting. [..]

Today Obama did it again. Obama’s Secretary of HHS, in a blatant, politically motivated move, took the almost unheard of step of going against FDA recommendations regarding Plan B. Science, common sense and women’s reproductive rights were all disregarded in what clearly appears to be an attempt to appease conservatives.

This is what happens when you don’t fight the first time.  This is what happens when there is no political cost for crossing you. People learn that they can walk all over you, and they do so whenever possible.

Sodium hydroxide, aka lye, is one of the most important basic chemicals used in industry, and until not too long ago, for several home uses.  It can still be found in a few consumer products, but because of its usefulness as a chemical reagent for clandestine preparation of methamphetamine, is hard to get now without a legitimate business reason.  However, I found some at Lowe’s a couple of years ago (under a different label) for opening drains.  I wanted some to show my relatives how to make soap.

A significant amount of this material is still used for making soap, but its uses are so widespread and pervasive that soapmaking is just a small fraction of the applications for this material.  Industrially it is used when a strong, cheap base is needed, because it is amongst the strongest and cheapest, other than perhaps calcium hydroxide (lime), but sodium hydroxide is very soluble in water where calcium hydroxide is not.

Nearly a month ago, Yonah Freemark had a post at The Transport Politic entitled, Los Angeles’ Streetcar Plans: Too Duplicative of Existing Services?. He wrote:

Los Angeles has big hopes for its downtown, and, like most of the country’s major cities, it has seen significant population growth in the inner core over the past ten years. Now, to extend this renaissance, the city – also like many others – is planning a streetcar line that would traverse the district from north to south. Last month, it applied for $37.5 million in U.S. Department of Transportation TIGER grant dollars, which it hopes to supplement with local and private funds to complete an initial route of between 3 and 5 one-way track miles at a cost of between $106 and $138 million.

Despite the fact that planning for the L.A. streetcar goes back for more than a decade thanks to the work of a public-private local advocacy group, the city will have plenty of competition in its effort to win federal funds. Requests for the third round of TIGER funding outnumbered actual funding available by 27 to 1. With so many projects up for consideration, anything funded by Washington ought to be valuable. But L.A.’s project could benefit from significant improvement.

And then … well, join me over the fold.

Because of what he calls his “deep and abiding interest in the matter of corporate rights,” Mr. Colbert approached the South Carolina Democrats, and on Tuesday the party chairman, Richard Harpootlian, filed a petition asking for a re-hearing.

“Trust me, this was a measure of last resort,” Mr. Colbert said in a statement. “I’ve always thought Democrats had only one skill: simultaneously being atheists and holier-than-thou. But apparently they also have legal standing in this case.”

In Autumn, the appearance in grocery stores of stacks of candied fruit and mountains of nuts in all their wonderful variety is a sure sign of the approach of the holidays. As the days grow short and the nights grow cool preparations for a joyous time of baking begins.

My daughter is the bread baker but Sugarplum Bread is the one I enjoy making, too. This sweet bread studded with candied fruit is not as heavy as fruit cake. It is topped with a white icing glaze and decorated with red and green cherries to look like clusters of berries. It is a treat for breakfast or in the afternoon with tea. I make small ones baked in large muffin tins, decorated and wrapped in colored plastic wrap tied with ribbon as gifts for guests.

The following recipe is a rich dough flavored with nutmeg, candied fruit and peel, and raisins

Candied fruit would have melted in the summer heat and its sweetness would attract ants but it keeps well in the freezer. After the holidays, when the price is reduced for clearance, if you have space in your freezer buy a supply. It assures that you’ll have candied fruit on hand in the months when it can’t be found in the market.

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

December 11 is the 345th day of the year (346th in leap years) in the Gregorian calendar. There are 20 days remaining until the end of the year.

On this day in 1946, In the aftermath of World War II, the General Assembly of the United Nations votes to establish the United Nations International Children’s Emergency Fund (UNICEF), an organization to help provide relief and support to children living in countries devastated by the war.

After the food and medical crisis of the late 1940s passed, UNICEF continued its role as a relief organization for the children of troubled nations and during the 1970s grew into a vocal advocate of children’s rights. During the 1980s, UNICEF assisted the U.N. Commission on Human Rights in the drafting of the Convention on the Rights of the Child. After its introduction to the U.N. General Assembly in 1989, the Convention on the Rights of the Child became the most widely ratified human rights treaty in history, and UNICEF played a key role in ensuring its enforcement.

Of the 184 member states of the United Nations, only two countries have failed to ratify the treaty–Somalia and the United States. Somalia does not currently have an internationally recognized government, so ratification is impossible, and the United States, which was one of the original signatories of the convention, has failed to ratify the treaty because of concerns about its potential impact on national sovereignty and the parent-child relationship.

In 1953, UNICEF became a permanent part of the United Nations System and its name was shortened from the original United Nations International Children’s Emergency Fund but it has continued to be known by the popular acronym based on this old name. Headquartered in New York City, UNICEF provides long-term humanitarian and developmental assistance to children and mothers in developing countries.

UNICEF relies on contributions from governments and private donors and UNICEF’s total income for 2006 was $2,781,000,000. Governments contribute two thirds of the organization’s resources; private groups and some 6 million individuals contribute the rest through the National Committees. UNICEF’s programs emphasize developing community-level services to promote the health and well-being of children. UNICEF was awarded the Nobel Peace Prize in 1965 and the Prince of Asturias Award of Concord in 2006.

Most of UNICEF’s work is in the field, with staff in over 190 countries and territories. More than 200 country offices carry out UNICEF’s mission through a program developed with host governments. Seven regional offices provide technical assistance to country offices as needed.

Overall management and administration of the organization takes place at its headquarters in New York. UNICEF’s Supply Division is based in Copenhagen and serves as the primary point of distribution for such essential items as vaccines, antiretroviral medicines for children and mothers with HIV, nutritional supplements, emergency shelters, educational supplies, among others. A 36-member Executive Board establishes policies, approves programs and oversees administrative and financial plans. The Executive Board is made up of government representatives who are elected by the United Nations Economic and Social Council, usually for three-year terms.

Following the reaching of term limits by Executive Director of UNICEF Carol Bellamy, former United States Secretary of Agriculture Ann Veneman became executive director of the organization in May 2005 with an agenda to increase the organization’s focus on the Millennium Development Goals. She was succeeded in May 2010 by Anthony Lake.

UNICEF is an inter-governmental organization and thus is accountable to governments.

A Profile in Fracking: How One Tiny Hamlet Could Be Devastated by Gas

By Molly Oswaks, The Atlantic

Dec 7 2011, 10:02 AM ET

Hancock is home to four bait-and-tackle shops, three beauty salons, six churches, ever more vacant and dilapidated-looking homes, one video rental thrift store hyphenate, and one funeral parlor. The stateliest establishment in this otherwise decidedly unstately community is the Hancock House Hotel; here you will find Honest Eddie’s Tap Room, a dimly lighted wood-paneled bar named for the major league baseball player John Edward “Honest Eddie” Murphy, who was born in Hancock in 1891. The food menu at Honest Eddie’s includes items like “They’re Smothered!” (thick-cut fries blanketed in a melty cheese sauce) and “The Deep-fried Pickle” (which is exactly what it sounds like). There is also an off-menu rice pudding, which they serve in a tall bevelled glass sundae cup and garnish with a dollop of whipped cream. The pudding has no spice.

…

Here, some 9,000 feet below traversable ground, lies a particularly profitable piece of the Marcellus Shale, a 400-million year old formation of marine sedimentary rock rich with reserves of untapped natural gas. Shale gas reserves are extracted by means of a multi-step process called hydraulic fracturing, or fracking. Chemical fracking fluid is pumped into a targeted borehole drilled deep into the ground; sand is then introduced into the fluid to maintain the integrity of the fracture. The pressure and depth at which this is executed produces a subterranean climate porous and permeable enough for shale gas to be recovered profitably: this is a “frack job.”

For a cash-strapped community like Hancock, fracking would seem a high-yield stimulus plan millennia in the making: there is, of course, the economic appeal of home-sourced natural gas, but there are also land royalties to be reaped by residents and money to be made from all the supplies and sandwiches sold in town to the fracking crew itself. Not to mention jobs.

…

It’s difficult to predict whether Hancock’s soil and water will, in fact, be poisoned once the drilling begins. Various assessments of the environmental impact of fracking have been conducted, at both state and national levels. The second-hand damage is much easier to forecast.

The roads and highways that run through town will experience a significant surge in traffic, with large trucks and heavy machinery traveling to and from the drill sites, and all the accompanying noise pollution. The bucolic natural landscape, which has long drawn lucrative hunting and camping tourism at peak season, will be cut up and and cordoned off for pipes and drills and gas collection.

It’s a paradox: The town needs money to survive, but the money being offered comes at the expense of the town itself. It would seem, then, however ironic, that capitalism is killing the company town.

Actually, it’s not at all difficult to predict that “Hancock’s soil and water will, in fact, be poisoned once the drilling begins.”

EPA Finds Fracking Contaminated Drinking Water in Wyoming

By: David Dayen, Firedog Lake

Friday December 9, 2011 6:23 am

Independent reports have previously shown contaminants in water due to fracking, but this is the first time the EPA has come out and said so. And while they cite Pavillion as a special case, it calls into question the surge in fracking across the country. From the Marcellus Shale to the Rocky Mountains, thousands of natural gas drilling sites have sprung up, and questions about air and water quality have persisted. Multiple examples of residents lighting the water out of their faucets on fire, and incidents of sickness in areas around the natural gas wells (many of which are in the backyards of people paid handsomely by the fracking companies for the privilege), abound.

…

The samples in Wyoming came from two deep water monitoring wells, as well as private and public wells in the area. EPA found synthetic chemicals consistent with fracking fluids, as well as high levels of benzene and methane. They said that the chemicals could move through the aquifer over time and only worsen the water quality. The chemicals in the private and public water wells showed evidence of migration from drilling sites.

Independent reports?  Oh my, yes.  Tons of them.

Chemicals Were Injected Into Wells, Report Says

By IAN URBINA, The New York Times

Published: April 16, 2011

WASHINGTON – Oil and gas companies injected hundreds of millions of gallons of hazardous or carcinogenic chemicals into wells in more than 13 states from 2005 to 2009, according to an investigation by Congressional Democrats.

…

Companies injected large amounts of other hazardous chemicals, including 11.4 million gallons of fluids containing at least one of the toxic or carcinogenic B.T.E.X. chemicals – benzene, toluene, xylene and ethylbenzene. The companies used the highest volume of fluids containing one or more carcinogens in Colorado, Oklahoma and Texas.

The report comes two and a half months after an initial report by the same three lawmakers that found that 32.2 millions of gallons of fluids containing diesel, considered an especially hazardous pollutant because it contains benzene, were injected into the ground during hydrofracking by a dozen companies from 2005 to 2009, in possible violation of the drinking water act.

A 2010 report by Environmental Working Group, a research and advocacy organization, found that benzene levels in other hydrofracking ingredients were as much as 93 times higher than those found in diesel.

The use of these chemicals has been a source of concern to regulators and environmentalists who worry that some of them could find their way out of a well bore – because of above-ground spills, underground failures of well casing or migration through layers of rock – and into nearby sources of drinking water.

These contaminants also remain in the fluid that returns to the surface after a well is hydrofracked. A recent investigation by The New York Times found high levels of contaminants, including benzene and radioactive materials, in wastewater that is being sent to treatment plants not designed to fully treat the waste before it is discharged into rivers. At one plant in Pennsylvania, documents from the Environmental Protection Agency revealed levels of benzene roughly 28 times the federal drinking water standard in wastewater as it was discharged, after treatment, into the Allegheny River in May 2008.

If you’re looking for Oil Company compassion, look somewhere else.

Driller to stop water to families in Dimock, Pa.

By MICHAEL RUBINKAM, Associated Press

Nov 30, 2011

ALLENTOWN, Pa. (AP) – Families in a northeastern Pennsylvania village with tainted water wells will have to procure their own water for the first time in nearly three years as a natural-gas driller blamed for polluting the aquifer moves ahead with its plan to stop paying for daily deliveries.

Houston-based Cabot Oil & Gas Corp. ended delivery of bulk and bottled water to 11 families in Dimock on Wednesday. Cabot asserts Dimock’s water is safe to drink and won permission from state environmental regulators last month to stop paying for water for the residents.

(h/t dday)

And, you know, it’s a proven, predictable, fact that it also causes earthquakes.

Method predicts size of fracking earthquakes

Scientists develop way to forecast worst-case tremor scenario.

Zoë Corbyn, Nature

09 December 2011

Small earthquakes are a recognized risk of hydraulic fracturing, or ‘fracking’, a procedure in which companies unlock energy reserves by pumping millions of litres of water underground to fracture shale rock and release the natural gas trapped inside. Researchers now say that they can calculate the highest magnitude earthquake that such an operation could induce – though it won’t determine the likelihood of a quake occurring.

…

McGarr and his team studied seven cases of quakes induced by fluid injection. They included the Oklahoma fracking site where 8,900 cubic metres were injected; a scientific bore hole in Germany, where an injection of 200 cubic metres of salt water caused a magnitude 1.4 earthquake; a geothermal-energy project on the outskirts of Basel, Switzerland, that was terminated after an injection of 11,600 cubic metres of water triggered a series of quakes of magnitude up to 3.4; another in Cooper Basin, Australia, where a 20,000-cubic-metre injection resulted in a magnitude 3.7 quake; and a liquid-waste-disposal project in Colorado in the 1960s, where an injection of 631,000 cubic metres triggered earthquakes of magnitude up to 5, the largest yet seen as a result of fluid injection.

The researchers found a proportional relationship between the volume of fluid injected and the magnitude of the earthquake.

“If you inject about 10,000 cubic metres, then the maximum sized earthquake would be about a magnitude 3.3,” says McGarr. Every time the volume of water doubles, the maximum magnitude of any quake rises by roughly 0.4. “The earthquakes may end up being much smaller, but you want to be prepared for the worst-case scenario,” says McGarr. The relationship is straightforward, but it is the first time that anyone has quantified it, he adds.

Shale Pioneers Plan Next English Wells After Fracking Causes Earthquake

By Kari Lundgren, Bloomberg News

Dec 2, 2011 9:17 AM ET

The sound that woke Caroline Murphy after midnight on April 1 was so loud she thought a car had crashed into her house. She doesn’t feel any better knowing it was the U.K.’s first recorded earthquake caused by natural-gas exploration.

…

Murphy’s home is within three miles of a drill site belonging to Cuadrilla Resources Ltd., an explorer that says it’s found more natural gas trapped in the local shale rock than Iraq has in its entire reserves. The magnitude 2.3 tremor that shook Murphy, and a second weaker quake on May 27, forced Cuadrilla to suspend hydraulic fracturing, the process of blasting sand, water and chemicals into shale that’s made the U.S. the world’s largest natural-gas producer.

…

“They say they’ve been fracking for years and years and it hasn’t caused any problems,” Murphy, an artist and designer, said in an interview. “I say: ‘You caused an earthquake. To me, that’s a big issue.'”

And for what?  For money of course-

Supporters of shale gas say the U.K. can’t afford to overlook the potential. The North Sea fields discovered in the 1970s that made the U.K. self-sufficient are running dry and the country will import more than half its gas supplies this year. The prospect of plentiful, cheap gas — prices have fallen about 75 percent since shale drilling took off in the U.S. — could help the economy, said Tim Yeo, who chairs parliament’s energy and climate change committee.

“It is likely the U.K. has quite substantial shale gas reserves and there may be sufficient resources to replace a significant amount of reserves,” Yeo, a member of the governing Conservative Party, said in a telephone interview. “Shale is good from a security point of view. It gives us some degree of protection from international gas prices.”

…

Cuadrilla, backed by Riverstone Holdings LLC, a private equity investor that includes former BP Plc Chief Executive Officer John Browne among its directors, wants to start fracking again. The company said its first wells showed the shale rock it’s exploring may hold 200 trillion cubic feet of gas. While only a fraction will ever get drilled, 10 percent of that amount is enough to supply the U.K. for about six years.

Protection from international gas prices?  Folks, there’s a glut of natural gas and the prices are falling through the floor.

Fracking for Gas in a Field of Cabbages

By Kari Lundgren, Bloomberg News

Dec 6, 2011 10:18 AM ET

Earthquakes aside, shale may struggle to get a foothold in Europe, according to Deutsche Bank AG analysts. It’s more expensive to drill in Europe, where a well may cost between $6.5 million and $14 million, compared with $4 million for a Marcellus Shale well in Pennsylvania. Then there’s the issue of mineral rights. In the U.K., the government owns the nation’s oil and gas resources, so there are few prospects to entice landowners to become “shale-ionaires.”

If Cuadrilla’s shale-gas dream doesn’t pan out, the site will go back to being a world-class cabbage field.

It won’t be the first natural gas well in the neighborhood that’s been left to fade away. There’s one that belonged to BG Group just a few miles down the road.

EPA: ‘Fracking’ likely polluted town’s water

MSNBC

12/8/11

Development of the new shale deposits over the last few years has provided the United States with a century’s worth of natural gas supply.

…

At the last hearing last month, protesters gathered in downtown Manhattan to express concern about the safety of water supplies, holding signs saying “Governor Cuomo, don’t frack it up” and “Don’t frack with New York.”

“We have to be literally insane to contemplate fracking,” state Sen. Tony Avella told reporters outside the hearings. “Wake up Governor Cuomo, this is not going to provide jobs or revenue, but what it will do is poison the water supply for 17 million New Yorkers.”

In fact it’s so fracking cheap that Oil Companies are desperately seeking export markets.

Shale gas opens door to U.S. LNG exports

Energy companies step up effort to ship surplus gas overseas

By Steve Gelsi, MarketWatch

Dec. 5, 2011, 6:52 p.m. EST

NEW YORK (MarketWatch) — A decade ago, a global glut of clean, cheap natural gas bred big plans to import liquefied natural gas to the energy-hungry United States.

That’s all changed.

Nowadays, energy companies are tapping into previously untouched North American gas reserves, prompting them to take a hard look at ways to sell their new-found gas to the rest of the world.

This sudden shift from gas importer to possible exporter is the result of innovative drilling technology that frees gas trapped in vast shale rock formations that until recently had been dismissed as non-commercial.

For the U.S. to become a serious natural gas exporter requires building a costly infrastructure, which will only happen if the right market conditions exist in coming years. Read about the booming U.S. shale gas sector.

Nevertheless, several companies already have plans to build liquefied natural gas, or LNG, export terminals while others are well into the evaluation process, raising the prospects of a billion-dollar construction boom for these highly specialized facilities.

…

This is quickly boosting output at home. The U.S. Energy Information Administration’s short-term energy outlook sees a 6.1% increase in domestic natural gas production in 2011, rising another 2% in 2012. All of the gains are from onshore drilling operations in the lower 48 states.

“The projected U.S. demand is not sufficient to absorb the supply from these fields,” Gordon said in an interview.

That leaves producers two obvious outlets to absorb future production: transportation fuel and LNG exports, he said.

And the US and the UK are not the only games in town, it’s a world-wide glut.

The Southern Gas Corridor Gets a Kick-Start

Author: Robert M. Cutler, EconoMonitor

December 8th, 2011

Azerbaijan and Turkey have announced plans to construct a pipeline from the South Caucasus across Turkey to carry natural gas from Azerbaijan’s offshore Shah Deniz Two deposit to Southeastern Europe. At first glance, this would seem to leave Nabucco and two other candidate pipeline projects that have already submitted bids, out in the cold. However, what is involved is the creation of a format for bargaining where Azerbaijan can assert its strategic interests more convincingly against the pipeline consortia, which by their project-oriented nature have not been inclined to take a broader view.

…

The announcement of the SEEP and TAGP projects thus signifies Azerbaijan’s growing autonomy in the setting of its natural gas export policy. The outcome of the current process will point the way towards methods for the disposition of future quantities of natural gas from Azerbaijan’s offshore. Two wholly undeveloped deposits, Absheron and Umid, have been undergoing exploration and are credibly estimated to contain 350 bcm of natural gas each. Azerbaijan expects to produce just over 25 bcm of natural gas this year from existing deposits and looks for that figure to increase to 50 bcm/y by 2025.

Why all the hurry to drill into shale? It’s not going anywhere

This is an open letter to U.S. Sen. Sherrod Brown, D-Ohio.

Dr. Cate Matisi

Wednesday, December 7,2011

I live in southeastern Ohio and have been watching with alarm as fracking has been marching toward my home over the past several years. I have major concerns about how quickly people have convinced themselves that this will be a viable solution for both the financial difficulties we are facing in Ohio and the energy shortages we face as a nation, while ignoring potentially devastating environmental consequences. The industry touts the patriotic theme of U.S. energy independence, even though a number of these oil and gas companies have partnerships with Korean, Chinese, British and Norwegian companies that certainly don’t have our energy or economic interests forefront in their minds.

The oil and gas industry is calling natural gas a cleaner energy alternative on the face, without including the climate cost of diesel fuel-powered equipment transporting, setting up and developing the site, the amount of methane, a much dirtier pollutant that is accidentally leaked during well construction, production and transport, during processing and storage of this natural gas and that’s often intentionally “flared off.” If there were no environmental issues negatively impacted by horizontal drilling with hydraulic fracturing, why doesn’t the industry insist on following the provisions of the Clean Air, the Clean Water Act and the Superfund mandate.

The oil and gas industry has also used employment statistics in an industry-sponsored study in Pennsylvania that gives industry employment figures almost 10 times higher than the Pennsylvania state employment bureau has noted.

…

There are alternative, sustainable sources of energy that could see incredible growth in development if they were to receive the tax exemptions and grants that the oil and gas industry now receives.

…

I am not a fringe environmentalist. I am a responsible Ohio landowner who realizes that the fresh air we breathe, the water we need for ourselves, our children and our land are not limitless, and should not be jeopardized by this practice, which has not been in use for the past 60 years, but in reality, less than eight years. The natural gas has been in the Marcellus/Utica shale formations for 4 billion years. Waiting until regulations can be developed to ensure the safest, most environmentally practical policies to handle and manage natural gas production makes the most sense all the way around.

That’s a very good question.  Could it be because Wall Street speculators and banksters are demanding double digit growth even though the Main Street economy is in a severe Depression?

New York fracking proposal roundly condemned at public hearing

Karen McVeigh, The Guardian

Wednesday 30 November 2011 19.25 EST

At the first of two public hearings in New York City over the plan to end the ban on fracking, the state authorities were left in little doubt about the scale of the opposition. Speakers at the packed and often unruly meeting in the 900-seat Tribeca performing arts centre were overwhelmingly against the technique, which involves blasting chemical-laden water and sand into shale rock to release gas.

Many of the speakers condemned the hearings themselves as a sham, because they said they were set up to allow public comment about draft regulations, before any environmental assessment had been carried out.

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Addressing a crowd of residents, activists and others outside the hearing, Senator Tony Avella, the Democrat author of a bill which would prohibit fracking in New York state, said: “I urge the Department of Conservation and the governor to pause in their deliberations and take full measure of the risks versus the ‘gold rush industry’ and make the right decision for this state for generations to come.”

He added: “The risk of catastrophic danger to the environment, the health of New York residents and adverse economic impacts that result from hydraulic fracturing far outweigh the potential for job creation and promotion of a natural gas alternative for oil.”

Mark Ruffalo, the actor, said: “The more we learn about fracking the more we see that natural gas is not a clean transition fuel, but a bridge to nowhere. The future of New York state depends on the action and resolve of the citizens of today – to reject this dangerous process and build a sustainable future for our children.”

Opponents of the drilling method criticised the Cuomo administration for exaggerating the economic benefits. They questioned the number of jobs that would be created, and said the administration had failed to consider the negative impacts on agriculture, tourism and other industries.

I couldn’t put it better myself-

There are alternative, sustainable sources of energy that could see incredible growth in development if they were to receive the tax exemptions and grants that the oil and gas industry now receives.