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Fracking Boom Keeps Home Heating Bills in Check

Freezing temperatures are creating near-record demand for natural gas in the U.S. as shivering Americans turn up the heat and plug in their electric blankets. Natural-gas prices have jumped in response, topping $5 per million British thermal units for the first time since 2010 as fuel has been pulled from underground storage vaults to keep furnaces running and electric utilities humming. But compared with past cold snaps, such as in 2000, the price surge has been muted, according to utilities and other big gas users. That is good news for businesses and consumers. Manufacturers that consume large amounts of the fuel—steelmakers, for example—say they have trouble planning for sharp price changes. And homeowners on fixed incomes can be hit especially hard when utilities raise prices. In the short term, higher prices help gas drillers, many of which have been losing money on wells in a supply glut. Over the […]

Posted On : Published By : Tom Whipple
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EU ‘invites’ members to practice safe fracking

European Environment Commissioner Janez Potocnik said member states are "invited" to follow a minimum set of guidelines for shale gas exploration. Several Eastern European countries are said to be rich in shale natural gas deposits though the reserves are either too expensive to exploit or up against moratoriums against the controversial drilling practice called hydraulic fracturing. Potocnik said there are hopes shale can help address European energy needs but resource extraction is up against public criticism. "The commission is responding to calls for action with minimum principles that member states are invited to follow in order to address environmental and health concerns and give operators and investors the predictability they need," he said in a statement Wednesday. Hydraulic fracturing uses large volumes of water laced with trace amounts of chemicals seen as harmful to human health and the environment. The commission’s recommendations call on […]

Posted On : Published By : Tom Whipple
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EU 'invites' members to practice safe fracking

European Environment Commissioner Janez Potocnik said member states are "invited" to follow a minimum set of guidelines for shale gas exploration. Several Eastern European countries are said to be rich in shale natural gas deposits though the reserves are either too expensive to exploit or up against moratoriums against the controversial drilling practice called hydraulic fracturing. Potocnik said there are hopes shale can help address European energy needs but resource extraction is up against public criticism. "The commission is responding to calls for action with minimum principles that member states are invited to follow in order to address environmental and health concerns and give operators and investors the predictability they need," he said in a statement Wednesday. Hydraulic fracturing uses large volumes of water laced with trace amounts of chemicals seen as harmful to human health and the environment. The commission’s recommendations call on […]

Posted On : Published By : Tom Whipple
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Victory for Britain and Poland as EU Issues Guidelines on Controversial Fracking Technique

BRUSSELS—Britain scored a victory Wednesday, when the European Commission shied away from earlier plans to put forward legislation on the exploration of shale gas. The European Union’s executive issued only guidelines for the technology after strong pressure from Britain and Poland, which are keen to forge ahead with the controversial technique of hydraulic fracturing, or ‘fracking,’ used to tap shale gas reserves. The commission said it was responding to calls for "minimum principles…to address environmental and health concerns and give operators and investors the predictability they need," said the EU’s environment chief, Janez Potocnik. Britain and Poland are keen to tap into potential shale gas reserves after seeing the U.S. become the world’s largest gas producer from its reserves. But public opinion in Europe is largely set against the technique, amid concerns over its impact on the quality of water, soil and air. France has put in place a […]

Posted On : Published By : Tom Whipple
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Russia concerned by Ukrainian fracking

The Russian Natural Resources Ministry said Friday it was concerned hydraulic fracturing in neighboring Ukraine could pollute regional water supplies. The ministry issued a statement Friday saying it was concerned about the prospects for shale natural gas development in neighboring Ukraine. Hydraulic fracturing, known also as fracking, uses large quantities of water mixed with potentially harmful chemicals to get at oil and natural gas deposits locked in shale formations. Environmental groups have expressed concern some of that water could eventually spoil drinking water supplies. Deputy Environment Minister Rinat Gizatulin said there are real concerns about contamination because potential drilling sites may be in close proximity to aquifers. He said Friday a letter was sent to his Ukrainian counterparts calling for a bilateral meeting to address the issue. Chevron and Royal Dutch Shell are among the energy companies interested in developing Ukrainian shale. The government […]

Posted On : Published By : Tom Whipple
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Polish shale gas may be too hard to exploit

The geological characteristics in Poland means it may be hard for energy companies to duplicate the shale gas success in the United States, an analyst said. New drilling technologies used for shale deposits have given energy companies access to oil and gas reserves previously out of reach, putting the United States in a leadership position in terms of production of those resources. Paul Stevens, an oil analyst at London think tank Chatham House, told the New York Times it may be tough to replicate that success in Poland. “The geology has not worked out,” he was quoted as saying Tuesday. Chevron, which has headquarters in California, is one of the few energy companies still exploring the shale reserve potential in Poland. Marathon Oil, which has headquarters in Texas, gave up on its Polish shale ambitions in 2012 and Italian energy company Eni is said […]

Posted On : Published By : Tom Whipple
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Polish auditors slam government for slow pace of shale gas development

Poland’s national auditing agency this week criticized the slow place of developing the country’s shale gas industry, blaming government inefficiency. The Supreme Audit Office, or NIK, Monday issued a report warning that high hopes for establishing shale gas as a viable Polish industry by 2015 are being imperiled by “irregularities” in awarding concessions and the painfully slow establishment of a law governing the sector, Polish Radio reported. In the meantime, several foreign energy firms that came into Poland seeking to tap its shale gas potential, such as Exxon Mobil, Marathon Oil and Talisman Energy, have pulled out due to mixed exploration results and the uncertain regulatory landscape. At the current rate, it will take 12 years before Poland’s shale gas potential can be properly tapped, the NIK said. “In order to carry this out, it would be desirable to have about 200 wells,” […]

Posted On : Published By : Tom Whipple
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U.K. to Pay Up To $3M a Well to Councils Allowing Shale Gas

Prime Minister David Cameron will give millions of pounds to local authorities that allow shale gas developments to go ahead, part of a drive to create more jobs and encourage investment in the U.K. Councils will be allowed to keep 100 percent of the business rates they collect from shale gas sites, double the current 50 percent figure, in a move that may be worth 1.7 million pounds ($2.8 million) per site in central government funding per year, according to figures released by Cameron’s office. Business rates are taxes to help pay for local services, charged on most non-domestic properties. “That’s going to be quite a significant boost for that local council’s coffers,” Business Minister Michael Fallon told the BBC . “We want local councils and local people to benefit from this exploration. We expect 20-40 wells to be drilled in exploration over the next couple of years.” Research […]

Posted On : Published By : Tom Whipple
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Court Finds Pa. Gas Drilling Rule Violates State’s Constitution

Court Finds Pa. Gas Drilling Rule Violates State’s Constitution The Pennsylvania Supreme Court ruled Thursday that several provisions of Act 13, signed last year by Gov. Tom Corbett to overhaul the state’s oil and gas laws, violates the Environmental Rights Amendment to the Pennsylvania Constitution. The court ruled 4-2 that Act 13 violates Section 27 of the declaration of rights in Pennsylvania’s constitution, which states that citizens have a right to clean air, pure water and the preservation of the natural, scenic, historic and esthetic values of the environment. Chief Justice Ronald D. Castille noted that “we agree with the citizens that, as an exercise of the police power, Sections 3215(b)(4) and (d), 3303, and 3304 are incompatible with the Commonwealth’s duty as trustee of Pennsylvania’s public natural resources.” Justices Castille, Debra McCloskey Todd and Seamus P. McCaffrey stated in the ruling that Act 13’s zoning provisions, which […]

Posted On : Published By : Tom Whipple
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Court Finds Pa. Gas Drilling Rule Violates State's Constitution

Court Finds Pa. Gas Drilling Rule Violates State’s Constitution The Pennsylvania Supreme Court ruled Thursday that several provisions of Act 13, signed last year by Gov. Tom Corbett to overhaul the state’s oil and gas laws, violates the Environmental Rights Amendment to the Pennsylvania Constitution. The court ruled 4-2 that Act 13 violates Section 27 of the declaration of rights in Pennsylvania’s constitution, which states that citizens have a right to clean air, pure water and the preservation of the natural, scenic, historic and esthetic values of the environment. Chief Justice Ronald D. Castille noted that “we agree with the citizens that, as an exercise of the police power, Sections 3215(b)(4) and (d), 3303, and 3304 are incompatible with the Commonwealth’s duty as trustee of Pennsylvania’s public natural resources.” Justices Castille, Debra McCloskey Todd and Seamus P. McCaffrey stated in the ruling that Act 13’s zoning provisions, which […]

Posted On : Published By : Tom Whipple