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UK Ban Adds to the Tremors Taking Down the Fracking Industry

UK Ban Adds to the Tremors Taking Down the Fracking Industry

How long can BC and Alberta ignore the financial and geological realities facing them?

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In 2013, protesters formed a human chain around Cuadrilla Resources’ fracking operation in West Sussex, England. The UK recently announced a ban on fracking. Photo by Bogdan Maran, EPA.

The dramatic decision by the British government to ban the disruptive technology of hydraulic fracturing (or fracking) is just one of two volatile storms now shaking the industry.

And both have ramifications for the governments of British Columbia and Alberta, which actively subsidize the uneconomic industry with tax breaks, royalty credits, free water and taxpayer-funded seismic research and monitoring.

The first typhoon is the industry’s failing business model.

The fracking of shale formations in Canada and the United States has largely generated more negative cash flows than revenue, due to high capital, water and energy costs combined with rapid depletion rates and low commodity prices. 

Canadian firms such as Ranch Energy Corp. and Trident Exploration, which based their business models on fracking, recently went bankrupt, leaving massive liabilities for the public to clean up. The Tyee is supported by readers like you Join us and grow independent media in Canada

The highly indebted Encana Corp., a champion of the so-called “shale gale,” banked its future on fracking and lost. 

In recent years it was forced to sell off many of its holdings, lost 90 per cent of its share value and let go of thousands of employees. Just this month it changed its name and left Alberta for the oil-rich Permian Basin in Texas where companies are also losing money and going bankrupt. 

Investors have become so skeptical about the industry’s ability to generate profits that they’re either openly shunning the sector or refusing to loan it money. 

 …click on the above link to read the rest of the article…

Politicians Offered a Choice between Climate Fantasies as Our Future Grows Bleaker

Politicians Offered a Choice between Climate Fantasies as Our Future Grows Bleaker

Greta Thunberg is right — across Canada we are acting like ‘spoiled irresponsible children.’

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Greta Thunberg took her climate campaign to Edmonton this week, and is in Vancouver today. Our politicians should listen. CANADIAN PRESS/Dave Chidley.

Now that we can open the windows again and clear the air of political flatulence, perhaps we can acknowledge the realities that remain like ghosts in our troubled house.

Once again we have been reminded that Canada’s political parties behave like organizations “publicly and officially designed for the purpose of killing in all souls the sense of truth and of justice,” as Simone Weil characterized parties seven decades ago. 

What they have left us are political divisions that have now painted the face of Canada red or blue.

And just as in the excited United States, the conservative blue largely spreads across oil-producing regions suffering from low prices, while the red occupies oil-importing provinces.  

We are now living the storm before the storm and don’t even know it.

The energy divisions in both countries tell a story of appalling leadership, the strength of propaganda and political inertia.

One-third of the blue nation not only doesn’t believe that climate change is an emergency, but remains in denial about the increasing volatility of oil and gas prices.

Low prices and overproduction of high cost bitumen and fracked oil and gas have eroded the economics of the fossil fuel industry, throwing some people in Alberta and Saskatchewan into cauldrons of resentment, stoked by the propaganda manufactured by “wildcat Christians” and the oil industry. 

 …click on the above link to read the rest of the article…

The Green New Deal Battles Business as Usual. Both Will Doom Us

The Green New Deal Battles Business as Usual. Both Will Doom Us

We’re clinging to fantasies while the world crumbles. And we like it that way.

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‘The real unfolding drama — the collapse of a global civilization founded on a highly material culture created by cheap energy — is not a narrative we want to tell ourselves or our children.’ Image via Pixabay.

The stories we tell ourselves become the reality of our experience.

Global elites are now offering ordinary people two salvation stories for our digital entertainment.

Both delusional stories are being served on the Internet with bags of virtual popcorn.

One is the so-called Green New Deal, and the other is Business As Usual, which comes in both liberal and autocratic formats.

Both are actively competing for our attention.

Let’s begin with BAU, which now boasts a variety of populist variations.

At one level or another, we can all understand BAU’s alluring and simple call to restore greatness and order.

Think of it as Vladimir Putin, Doug Ford, Jair Bolsonaro, Andrew Scheer and Donald Trump doing a rain dance to bring back lost worlds and spent energies.

Or China’s Hong Kong establishment wondering what’s wrong with those young people in the streets.

Or Emmanuel Macron asking what the hell got into those yellow vest people marginalized by globalization and carbon taxes. 

The BAU refrain is simple: trust the status quo and its armies of technocrats, because they’ll make things great again.

The BAU crowd maintains that nothing is really wrong with our failing global economic Ponzi schemes or the broken air conditioning unit that controls the climate.

 …click on the above link to read the rest of the article…

Alberta Imposes New Fracking Restrictions Near Dam after Quakes

Alberta Imposes New Fracking Restrictions Near Dam after Quakes

Restrictions come as industry-related tremors have rattled nerves and raised concerns.

Fracking well head
Alberta’s Energy Regulator has issued an order restricting fracking activity near a dam located southwest of the densely drilled Drayton Valley following a magnitude 4.3 earthquake in the region last March. Fracking photo by Joshua Doubek, Creative Commons license CC BY-SA 3.0.

The regulator’s new regulations follow a wave of tremors set off by Canada’s oil and gas industry, as well as the release of major scientific papers documenting how fracking and other forms of fluid injection have caused devastating earthquakes.

Such industry-triggered events, some as great as magnitude 5.7, have destroyed homes, caused landslides, and left taxpayers with millions of dollars of damage in Oklahoma, Korea and in China, where citizens have been killed.

Last week, the industry-funded regulator issued an order restricting fracking activity near TransAlta’s Brazeau Dam located 55 kilometres southwest of the densely drilled Drayton Valley following a magnitude 4.3 earthquake in the region last March. 

The exact cause of that earthquake is not known, but the oil and gas industry has previously rocked the region with tremors caused by wastewater injection or by gas extraction, which causes rock to fracture and collapse.The Tyee is supported by readers like you Join us and grow independent media in Canada

The regulator officially banned fracking within five kilometres of the dam site in the deep Duvernay formation, and within three kilometres of the dam site in the shallower formations above the Duvernay.

It also imposed requirements that any fracking operator in the three-to-five-kilometre zone that causes a magnitude 1.0 earthquake must now report the event to the regulator and cease operations totally if it triggers quakes greater than magnitude 2.5.

 …click on the above link to read the rest of the article…

Against ‘Sustainability’ and Other Plastic Words

Against ‘Sustainability’ and Other Plastic Words

How techno-speak is robbing us of our feelings and our future.

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Marine biologist Daniel Pauly of UBC: ‘Sustainability is a deceptive goal because human harvesting of fish leads to a progressive simplification of ecosystems in favour of… fish species that are adapted to withstand disturbance and habitat degradation.’ Photo source: Common Sense Canadian video interview.

The word sustainability, were it up to me, would be extinct, wiped out, kaput.

It is hard to escape the word’s tyranny. 

Economists promise “sustainable economies” while business types explore “sustainability accounting.” 

Greens promise a “sustainable future,” and even greener pundits swear that technology will deliver “global sustainability.”

Miners promise to dig more sustainable holes and foresters propose to mow down old growth trees more sustainably. 

The United Nations champions “sustainable development goals” as though SDGs were a delightful venereal disease. 

But apparently every nation must set some SDGs, and go for it. 

Why, there are even research chairs in sustainable development at universities. And I suppose, somewhere, there are people proposing to be sustainable journalists.

We have forgotten the original meaning of sustain, which stems from the Old French sostenir, meaning “hold up bear; suffer, endure.” In the 14th century — a period of pestilence and famine, it meant endure without failing or yielding.”

As civilization collapses we are going to need that old word again. 

But well-intentioned greens took a word with historic meaning and turned it into plastic soup with the Brundtland report published by the United Nations in 1987. 

That document let the word loose on the world like feral cats in Australia’s outback by defining “sustainable development” as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”

 …click on the above link to read the rest of the article…

A Fracking Disaster: BC Failing to Make Polluters Pay

A Fracking Disaster: BC Failing to Make Polluters Pay

Auditor general says oil and gas commission hasn’t ensured companies will pay cleanup costs.

Oil well
BC’s oil and gas industry has predictably let the number of inactive wells grow from 3,800 to 7,474 between 2007 and 2018, due to ‘gaps’ in legislation.

The polluter-pay approach isn’t working in British Columbia’s oil and gas patch.

The province’s energy regulator hasn’t secured enough money from companies to cover the estimated $3-billion cleanup costs for 10,672 inactive oil and gas sites, says a new report by B.C. auditor’s general.

But that’s only the beginning of a long list of deficiencies in the B.C. Oil and Gas Commission’s approach to managing the rising environmental and financial risks posed by inactive wells, pipelines and other industry infrastructure, according to the report by Auditor General Carol Bellringer.

In addition to not collecting enough security deposits, the regulator has failed to demand that operators decommission inactive wells in a timely fashion due to “gaps” in legislation.

With no legal requirement to clean up old wells, the industry has predictably let the number of inactive wells grow from 3,800 to 7,474 between 2007 and 2018. 

“The increase in the numbers is significant,” Bellringer said during a Vancouver news conference.

Unlike North Dakota where industry has two years to clean up a well once it stops producing, B.C. has no defined time limits.

The government has promised to introduce changes shortly.

The report noted that the province’s Orphan Site Reclamation Fund is effectively bankrupt.

The number of orphaned sites abandoned by insolvent operators has grown from 45 wells in 2015 to 326 wells today.

According to the regulator estimates, it costs an average $370,000 to cement and reclaim a well.

As a result the agency could face more than $120 million in cleanup costs for the 326 orphaned wells. The fund’s operating budget for 2017/18 was $5.3 million.

 …click on the above link to read the rest of the article…

More Frack Quakes Rattle Alberta, Cause Deaths in China

More Frack Quakes Rattle Alberta, Cause Deaths in China

Regulator shuts down operations near Red Deer. Thousands protest in Sichuan.

Gail Atkinson
Seismic hazard expert Gail Atkinson on dangerous earthquakes triggered by fracking: ‘It is not just happening in Western Canada. It can happen anywhere.’

On Monday Albertans living around the oil-service city of Red Deer, got an early morning wake-up call – a 4.6 earthquake. 

Vesta Energy, a privately owned oil and gas company, halted its fracking operations west of the city after the company most likely triggered the quake that temporarily shut down power to nearly 5,000 residents. 

It was one of the largest recorded tremors ever to shake central Alberta.

A day later, Mar. 5, the provincial energy regulator ordered the company to suspend fracking operations and report all seismic data for the last three months. 

The order announced the regulator was suspending operations at the well site “in order to protect the public and the environment.” Among the harms fracking induced earthquakes can cause are “adverse effects to the environment, public safety and property damage and/or loss,” said the order. 

The widely felt earthquake rattled dishes, cracked walls and swayed buildings. 

“Crazy loud and very strange — feeling your house shake,” reported one citizen on social media. “What the heck just happened? Our whole house shook!!”

“Sounds like I just experienced my first earthquake in Red Deer… thought I was in a horror movie when my room started shaking in the black of night,” tweeted another resident. 

Red Deer optician Melissa Hall tweeted: “HOLY EFF… did we just have an #earthquake?? My bed just shook like it took quarters at a bad motel!”

Meanwhile residents of Sichuan province in southwest China marched and grieved after a swarm of industry-triggered earthquakes rocked that shale gas basin on February 25.

 …click on the above link to read the rest of the article…

Alberta’s Mega Oil and Gas Liability Crisis, Explained

Alberta’s Mega Oil and Gas Liability Crisis, Explained

A Supreme Court ruling now forces firms to clean up abandoned wells before paying creditors. That doesn’t solve much.

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How will Alberta find the billions of dollars needed to clean up its inactive pipelines, wells, plants and oilsands mines as the oil and gas industry enters its sunset years? Photo: Premier of Alberta Flickr.

Just how will an increasingly indebted industry, hobbled by low energy prices and rising costs, find the up to $260 billion needed to clean up its inactive pipelines, wells, plants and oilsands mines as it enters its sunset years?

To date permissive provincial regulations have created the problem by only requiring industry to set aside $1.6 billion for the job. 

That potentially leaves more than $200 billion in unfunded liabilities for taxpayers. 

Technically the 5-2 court decision will make it easier for provinces to prevent insolvent companies from selling assets to pay creditors while dumping the cleanup bill onto taxpayers.

That’s been a big problem in Western Canada, where lower provincial court decisions have allowed bankrupt firms to pay off banks first and ignore their cleanup obligations under provincial laws.

As a result, a number of firms in Alberta walked away from more than 1,800 inactive wells and dumped more than $110 million worth of liabilities onto the lap of the provincial regulator over the last three years.

The province’s Orphan Well Association, a non-profit supported by annual $30-million industry levies to prevent taxpayers from footing the cleanup bill, is now so overwhelmed that it was rescued with a $300-million loan from the province and federal government. 

The Orphan Well Association handled 74 orphan wells (properties with no legal or financial owner) in 2012. Now it has a backlog of 3,000 wells, with each well averaging $300,000 for plugging and reclamation.

 …click on the above link to read the rest of the article…

Will BC’s Budding LNG Industry Spark More Quakes and Shake Northeast Housing Prices?

Will BC’s Budding LNG Industry Spark More Quakes and Shake Northeast Housing Prices?

Look at Oklahoma as a possible preview of things to come.

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House damage in central Oklahoma from a magnitude 5.6 earthquake on Nov. 6, 2011. The cause was wastewater disposal in the oil and gas industry. Photo by Brian Sherrod, USGS.

B.C. Premier John Horgan and Prime Minister Justin Trudeau could barely contain their glee last year when LNG Canada declared its $40-billion Kitimat export terminal and related pipeline were going ahead.

But neither leader mentioned the dramatic surge in horizontal drilling and fracking in northeastern B.C. that will be required to extract the natural gas (or methane) needed by LNG Canada. The plant will take methane, process it into liquefied natural gas and then export it overseas.

What Trudeau called the largest capital project in the nation’s history will initially process two billion cubic feet of methane a day — almost half B.C.’s current production. It has the capacity to scale up and gobble four billion cubic feet a day. That’s more than one-third of Canada’s total demand.

According to energy analyst David Hughes, the project will require the drilling of an additional 400 gas wells a year for 40 years, in addition to the almost 500 wells now being drilled annually.

If you want a preview of what that kind of rapid industry expansion brings, look at Oklahoma.

In that state, America’s fifth largest oil producer, earthquakes caused by industry wastewater injection have damaged homes, sparked lawsuits and a regulatory scramble, and even depressed housing prices.

The state and northern B.C. share a well-studied geological phenomenon: unprecedented earthquake activity caused by fluid injection into the ground — mostly wastewater injection in Oklahoma and massive fracking operations in B.C.

 …click on the above link to read the rest of the article…

When Indigenous Assert Rights, Canada Sends Militarized Police

When Indigenous Assert Rights, Canada Sends Militarized Police

It’s become routine, but ignores latest law on rights and title, say experts.

The use of heavily armed RCMP to enforce a court injunction and tear down an Indigenous blockade against TransCanada’s Coastal GasLink pipeline in northwestern British Columbia last week was part of a familiar pattern, say criminologists.

“It seems like Canada uses a show of force and police repression whenever it wants to contain First Nations exercising their aboriginal rights and title,” said Shiri Pasternak, a criminologist at Ryerson University and director of the Yellowhead Institute, a research centre focused on First Nations land and governance issues.

“Canada is creating the problem by refusing to recognize what its own courts are saying about aboriginal rights and title,” added Pasternak.

Over the last decade rulings by the Supreme Court of Canada and lower courts have established that Canadian governments have a duty to consult and accommodate Indigenous people before resources are extracted from their land, and that in many cases their land and title rights have not been extinguished.

Unlike many elected First Nations governments along the pipeline route, which signed economic benefit agreements with TransCanada, the hereditary chiefs of the Wet’suwet’en Nation have remained opposed to intrusions on their traditional lands.

Jeffrey Monaghan, a criminology professor at Carleton University who co-authored Policing Indigenous Movements: Dissent and the Security State with Andrew Crosby said the dismantling of the Wet’suwet’en blockade was intended to send a national message.

“It was very carefully choreographed to communicate to the national audience that any protests against oil and gas pipelines are going to be cracked down upon. I think it was highly symbolic. Police action doesn’t stop with the Wet’suwet’en,” said Monaghan.

…click on the above link to read the rest of the article…

Is Coastal GasLink an Illegal Pipeline?

Is Coastal GasLink an Illegal Pipeline?

Challenge to energy project’s approval brings threats to Smithers activist.

The $6.2-billion Coastal GasLink pipeline may face a bigger threat than the opposition of Wet’suwet’en hereditary chiefs and protests across Canada.

Smithers resident Michael Sawyer says the project lacks the required federal approvals. He has filed a formal application to require a full National Energy Board (NEB) review.

Last fall the board agreed to consider Sawyer’s challenge.

In April it will hear final arguments on the question of whether the pipeline falls under provincial jurisdiction, or if it is subject to NEB rules and assessments.

That would bring delays and “put real, tangible benefits to people in B.C., including First Nations, at risk,” said pipeline owner TransCanada Corp., rebranded this week as TC Energy.

The B.C. government’s Environmental Assessment Office approved the contentious 670-kilometre pipeline in 2014.

The project would move fracked methane from northeastern B.C. and northwestern Alberta to the $40-billion LNG Canada export terminal in Kitimat.

Sawyer, a 61-year-old environmental consultant, said the prospect of a NEB regulatory review should have been considered by the B.C. Supreme Court before it issued an injunction that led to RCMP action against two Indigenous checkpoints this week.

“I wonder if TransCanada disclosed information to the judge about this jurisdictional challenge before it asked him to grant the injunction against the blockade,” he said. “The fact is that the RCMP enforced the injunction in an over-the-top manner for a pipeline that may be deemed illegal and whose permits could be quashed.”

…click on the above link to read the rest of the article…

Oil’s Wild Price Swings Set to Create Global Chaos

Oil’s Wild Price Swings Set to Create Global Chaos

Volatility is here to stay — and the political and economic implications will touch us all.

As the current global oil glut shakes up petro states around the world, oil prices are becoming more volatile than Donald Trump tweets.

Neither Canada, now the dumb owner of a marginal 65-year-old pipeline, nor Alberta, a key exporter of bitumen, a cheap refinery feedstock, has paid much attention to this revolution.

As a consequence Canada has no strategy to deal with the new normal of highly volatile oil prices.

Government incompetence explains the hew and cry in Alberta about its overproduction crisis and the various proposals to solve it, ranging from the purchase of rail cars (a bad idea) to the decision to order companies to cut production of heavy oil by about 325,000 barrels a day (a sensible idea).

Alberta’s panic attack is based on the idea that bitumen from the province’s oilsands producers is selling at a discount because of a lack of pipeline capacity.

The reality is that the dramatic 30-per-cent drop in oil prices since the beginning of October, from more than US$70 to US$50, is upsetting oil exporters, producers and markets around the world.

Different kinds of oil fetch different prices, based on their quality and transportation costs. And all are experiencing dramatic price drops. Alberta’s bitumen, a cheap refinery feedstock, is not the only crude languishing during a global market glut.

Refineries in Japan and Korea, for example, scooped up cheap U.S. oil earlier this year.

…click on the above link to read the rest of the article…

Alberta’s Problem Isn’t Pipelines; It’s Bad Policy Decisions

Alberta’s Problem Isn’t Pipelines; It’s Bad Policy Decisions

Bitumen prices are low because the province has ignored at least a decade of warnings.

The Alberta government has known for more than a decade that its oilsands policies were setting the stage for today’s price crisis.

Which makes it hard to take the current government seriously when it tries to blame everyone from environmentalists to other provinces for what is a self-inflicted economic problem.

In 2007, a government report warned that prices for oilsands bitumen could eventually fall so low that the government’s royalty revenues — critical for its budget — would be at risk.

The province should encourage companies to add value to the bitumen by upgrading and refining it into gasoline or diesel to avoid the coming price plunge, the report said.

Instead, the government has kept royalties — the amount the public gets for the resource — low and encouraged rapid oilsands development, producing a market glut.

With North American pipelines largely full, U.S. oil production surging and U.S. refineries working at full capacity, Alberta has wounded itself with bad policy choices, say experts.

The Alberta government and oil industry is in crisis mode because the gap between the price paid for Western Canadian Select — a blend of heavy oil and diluent — and benchmark West Texas Intermediate oils has widened to $40 US a barrel.

Some energy companies have called on the government to impose production cuts to increase prices.

The business case for slowing bitumen production was made by the great Fort McMurray fire of 2015.

…click on the above link to read the rest of the article…

Politics: The Cancer that must be Eradicated once and for all

Politics: The Cancer that must be Eradicated once and for all

In the United States two political parties have now divided the nation with the kind of violent partisan rhetoric that erupted just before the Civil War.

The 2016 election of Donald Trump as president set off a tidal wave of anger and resentment that has divided America into two bitterly opposed camps. Those on the left consider Trump to be the embodiment of evil whereas many on the right see him as a “disrupter” and champion of the common man. The recent mid-term elections revealed that this conflict between pro-Trump and anti-Trump forces continues unabated. The political divide in America now is characterized by revenge-minded Democrats who are determined to remove Trump from office and those who will fight to prevent this from happening. As a result, the country will be mired in a lengthy political power struggle while important issues affecting the lives of millions will be neglected. America – sad to say – is currently a nation in crisis.

If a team of scientific crisis management experts were assembled to assess the cause of this problem they would surely arrive at the conclusion that it is “politics” pure and simple. The solution, therefore, would be the abolition of all political parties.

This is actually not a new idea. The French philosopher Simone Weil made this suggestion more than seventy years ago. This seemingly radical proposal has been resurrected and supported by the award-winning Canadian journalist Andrew Nikiforuk. As he pointed out this past summer:

“In the United States two political parties have now divided the nation with the kind of violent partisan rhetoric that erupted just before the Civil War. Across the Western world, political parties have turned parliaments into digital circuses, provoking waves of contempt among ordinary people…

…click on the above link to read the rest of the article…

Tree Teachings: How Forests and Wildfires Are Critically Linked

Tree Teachings: How Forests and Wildfires Are Critically Linked

First in a series about the work of famed botanist .

I have called up Diana Beresford-Kroeger, the famed Irish botanist and bestselling author, to ask about the megafires that carpeted much of North America in dense smoke last summer.

In British Columbia alone, wildfires released between 150 and 200 megatonnes of carbon dioxide in 2017. That’s more than twice the volume created by human activities in the province.

Beresford-Kroeger, who calls herself a renegade scientist, has been studying forests all her life and is one of the world’s leading experts on the many medicinal properties of trees.

Coming from a strong Celtic tradition, the 74-year-old plain speaker delivers a good dose of traditional knowledge with her science, combining data with old-fashioned wisdom.

The global forest, which keeps the atmosphere rich in oxygen and low in carbon dioxide, “forecasts our future in every breath it takes and every seed it releases into the leaf mold of the forest floor,” she has written.

On the day when I reach her to discuss the megafires that consumed parts of California, Chile, Sweden and B.C. last summer, she says she has both good and terrifying news.

But first Beresford-Kroeger tells me she has just walked into her house just south of Ottawa from her research garden, where native and endangered trees thrive, and is covered in mud.

“You should know,” she begins with a laugh, “that you are talking to a dirty woman.”

And then she plunges into the subject of wildfires, which burned almost 3.4 million hectares of forest last year across Canada — a nearly threefold increase over 2016.

Fires foretold

The first point Beresford-Kroeger wants to make is that the fires consuming places like California and B.C.’s Interior were foretold by Indigenous people thousands of years ago.

…click on the above link to read the rest of the article…

Olduvai IV: Courage
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Olduvai II: Exodus
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