International Energy Agency Says: Brace for Impact

What America will look like of the frackers have their way -- and what Huntington Beach, California looked like in 1926. But according to the IEA’s World Energy Outlook, we shouldn’t be too concerned about what the frackers are going to be able to do.  (Photo courtesy Orange County Archives)

What America will look like of the frackers have their way — and what Huntington Beach, California looked like in 1926. But according to the IEA’s World Energy Outlook, we shouldn’t be too concerned about what the frackers are going to be able to do. (Photo courtesy Orange County Archives)

The customarily cheery International Energy Agency (IEA), created to advise the member nations of the Organization for Economic Co-operation and Development (OECD), has taken a more somber tone in its latest annual World Energy Outlook released today. The agency dismisses the wildly hyped shale-oil and -gas “boom” in the United States as a band-aid on a malignant tumor, a temporary mask distracting the world from the pervasive illness afflicting its oil supply. Continue reading

Bulls Running: Frackers Getting Trampled

It's bulls v. bears on Wall Street, and the collateral damage is substantial.

It’s bulls v. bears on Wall Street, and the collateral damage is substantial.

Overtaken by arithmetic and logic, the Wall Street bulls are trying to find a place to hide their money, and while they don’t agree on where to put it, they are beginning to agree that it definitely should not be in the fracking patch. The stock of fracking operators has been in bear country for weeks now as the strain of trying to pretend everything is all right gets worse by the hour.

A Ponzi scheme requires the operator to get new suckers in the door fast enough to use their money to pay off the old suckers, so they don’t blow the whistle on the  con. Continue reading

Math Unmasks Oil and Gas Boom as Bubble

a natural gas well using hydraulic fracturing

In the midst of a natural gas “boom,” fracking rigs like this are fast becoming an endangered species. The reason? Mathematics.

There are three kinds of people in this world: the kind who understand mathematics, and the kind who don’t (Irony alert). You can find the latter buying lottery tickets, leaning over casino tables and conducting news conferences about the new American oil boom.  It has become conventional wisdom (oxymoron alert), an assertion not even worthy of discussion by Serious People, that the United States is, as an NPR program host said offhandedly the other day,  “on its way to energy independence.” Here’s what mathematics has to say about this titanic (metaphor alert) scam. Continue reading

Expert: Shale Gas Boom a Bubble About to Pop

oil jacks

In the old days, when you poked holes in the ground and pumped out oil with jacks like these, it was a boom. Now, it’s just a fracking bubble.

One of the top geologists in the oil exploration and production business says: 1) shale gas production by hydraulic fracturing (“fracking”) is a commercial failure. Is. Present tense. 2) shale gas will be the next financial “bubble” to collapse. 3) holding out the possibility of energy independence for the United States is “absurd.” To suggest it could be done in five years is “garbage.”

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Bogus Oil Boom Bogs Down

a natural gas well using hydraulic fracturing

It’s not just a drilling rig, it’s a fracking rig, and it has to be watered with millions of gallons if it is going to flourish.

Here’s a lovely circle of life: global warming caused in large part by burning oil has contributed to a drought that is making it impossible for the oil bidness to sustain its over-hyped oil boom in the Bakken oil shale formation under Montana and North Dakota. And that’s just one reason the boom will soon be busted.

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NPR: The Lost Best Hope

(Photo by timsamoff/flickr)

The last bastion of intelligent and balanced journalism in this country is apparently now the lost bastion: on Morning Edition last Wednesday, NPR ran a piece on the oil bidness that was a travesty of journalism. The piece by John Ydstie “reported” on the “huge boom” in US oil and natural gas production and claimed — not by quoting an idiot, but by making the idiotic statement with no attribution or qualification — that it “could help the nation reach the elusive goal of energy independence.” That was the lede sentence, and things went downhill from there.
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US Oil Boom Busted

These oil wells were thick as fleas along the Texas coast in 1978, when America was awash in oil. But production has been declining since 1970, and simple-minded hype will not change that. (Photo by Roger Wollstad (Roger4336)/Flickr)

The latest version of “Don’t Worry, Be Happy” being sung by the Big-Oil Tabernacle Choir is a variant of the old favorite,  “Drill, Baby, drill.” The new lyric is that we have drilled, baby, drilled (or more accurately, fracked) and that now there is plenty of oil and gas in America, and there will continue to be plenty as long as you don’t dare tax or regulate Big Oil. You can even hear the backup singers muttering, “Energy independence! Energy independence!” Alas, the song is wrong.

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The Mother of All Fracking Lies

Water from one of the wells never harmed by fracking explodes, in a scene from the documentary "Gasland."

The claim that not one single water well has been harmed by hydraulic fracturing for natural gas is the anthem of the oil and gas industry as it presses its case to perforate the shale formations of the world without regard for the vital water resources also to be found there. The current administrator of the Environmental Protection Agency (EPA), Lisa Jackson, sings from the same sheet music. But even in a world where public statements have little relationship to reality, this is a remarkable Big Lie. Continue reading

New York Times Explodes Natural-Gas Bubble

The thing about a gas bubble is, it's flammable. (Photo by Andrew Kuznetsov/Flickr)

Once in a great while a newspaper (“The few. The frail. The fading.”) reminds us why we need newspapers, and why we are going to miss them. There are no other institutions left whose purpose (speaking here of the practitioners, not the investors) is to seek the facts and tell the truth. On Friday, the New York Times published the results of an exhaustive review of America’s natural-gas industry, which has been energized by the discovery of a new way to unlock gas from shale, and has pronounced it to be — to paraphrase — a fraud. Continue reading

Fracking Natural Gas: Unreality TV

Marchers in Pittsburg protest fracking in November, 2010. (Photo by Marcellus Protest/Flickr)

The thing about pathological liars is that they also lie to themselves. Their lies get them into ever deeper trouble, which they attempt to handle by mumbling lies to themselves, which don’t help, which causes them to double down on lies until gravity reasserts itself and the world falls on them. Keep this in mind as we watch the end state of the oil and gas industry. Continue reading