iPhone app iPad app Android phone app Android tablet app More

Featuring fresh takes and real-time analysis from HuffPost's signature lineup of contributors
Brendan DeMelle

GET UPDATES FROM Brendan DeMelle
 

A 'War on Shale Gas'?

Posted: 08/01/2012 2:40 pm

Since late 2009, there’s been a slowly-growing wave of attacks from the unconventional oil and gas industry on media outlets that cover the controversies surrounding hydraulic fracturing (fracking) and other shale gas practices. Reporters who write for publications ranging from Rolling Stone to Reuters to the New York Times have had their professional bona fides called into question after unearthing documents and facts that challenge claims that fracked shale gas is cheap, abundant, and clean.

These industry attacks on media occur against the backdrop of a larger campaign to establish unconventional oil and gas at the forefront of the nation’s energy options.

Only a few years ago, it seemed likely that gas would increasingly be a mainstay of power generation, especially in the wake of high-profile disasters like the Massey Upper Big Branch coal mine disaster and the BP oil gusher in the Gulf of Mexico. The industry (at the time) received support from surprising allies like the Sierra Club and the Center for American Progress. Fukushima tarnished the nuclear industry, further shifting momentum towards shale gas for utility-scale electricity generation.

But a popular movement fueled by growing concerns about water contamination and public health impacts posed by fracking, coupled with a clearer look by press and by Wall Street analysts at the industry’s claims, has threatened to derail the ascendency of unconventional gas.

Quite often, rather than responding to the issues raised in a responsible fashion, industry PR shops have questioned the motives and qualifications of journalists who investigate the problems with shale gas development, and especially those who delve into the industry’s economic prospects.

The attacks against reporters are noteworthy in part because they are so personal.

“Although our expectations for honesty and fairness were quite low, the writer failed to reach even that low bar,” Michael Kehs, the vice president of strategic affairs and public relations at Chesapeake Energy, wrote in an open letter responding to Rolling Stone’s expose of the company’s financial precariousness.

Ad hominem responses like this shift focus away from the issues raised in the coverage, and attempt to turn the discussion towards motives -- or deep character flaws -- that the industry claims reporters harbor.

Often, the allegation is that the media is biased, even if the reasons for that bias are unclear (perhaps because it doesn’t exist).

“You really have to wonder why the New York Times is campaigning against cleaner-burning, domestically produced natural gas,” wrote Ken Cohen, ExxonMobil vice president of public and government affairs, in a blog piece after the Times ran a piece airing industry insiders’ doubts about shale gas.

Nowhere was this vision and practice of the industry better on display than at the “Media & Stakeholder Relations: Hydraulic Fracturing Initiative 2011” conference in Houston last year, where industry PR officials gathered to strategize how to "overcome public concern" surrounding their operations. (This is the same conference where DeSmogBlog learned about the industry's use of military psychological warfare (PSYOPs) tactics in U.S. communities, and that drillers view growing community resistance to fracking as "an insurgency.")

A representative from the American Petroleum Institute spent an entire hour leading the group through an analysis of New York Times articles, especially those written by investigative reporter Ian Urbina.

Again and again, the Times coverage was referred to as a “war on shale gas.”

“So, as we look at this overall at API, one of the first questions we ask is: ‘how successful is the New York Times’ war on shale gas?’” said Linda Rozett, Vice President of Communications at the American Petroleum Institute. [starting around 9:25 in this recording]

Of course, no explanation as to why the Times would launch a “war” on shale gas was proffered.  The accuracy of the facts reported was also not discussed (perhaps because many of the Times' shale gas articles are accompanied by thousands of pages of leaked documents, sometimes from the industry itself). But the sense of victimization was palpable.

“In every case, the New York Times is the worst, in terms of coverage of our issues,” the API's Linda Rozette said.

This defensive industry reaction to media coverage is by no means limited to the Rolling Stone or The Times. The unconventional oil and gas industry has aggressively gone up against reporters and editors of all stripes, at publications large and small.

One of the first people to raise questions about shale gas’s potential was Arthur Berman, a former Amoco geologist who, at the time, was a long-time contributing editor for an industry magazine called World Oil.

But when Berman raised important questions about the ways the shale gas industry calculated their reserves, his column was cancelled by the magazine -- amidst pressure from shale gas companies like Petrohawk. Mr. Berman resigned in protest, and within a few days, his editor, Perry Fischer, was fired

The industry denied that it was responsible -- “It is doubtful that his termination was a direct result of comments made by Petrohawk,”  the company’s Investor Relations Vice President Joan Dunlap told a Houston Chronicle reporter at the time -- but those involved had something different to say.

“Let me be clear: The decision to pull Art's column was due to pressure from these two companies,” Fischer later wrote.

Despite this, Arthur Berman was undeterred. He has gone on to become a persistent thorn in the industry’s side, and the issues he’s raised have been picked up by countless publications ranging from the staid Financial Times, trade publications like Platts and mass media outlets like CNN

As Mr. Berman has become more prominent, he has again found himself a target for mudslinging by the industry. This was on display in the wake of a New York Times report last year that cited Mr. Berman’s analysis.

“And also, to say that he, a handful of unnamed critics of the industry, and a goat cheese farmer from Fort Worth, and a third-tier geologist who considers himself a reservoir engineer, that somehow they know more about the shale gas revolution in America than companies that have combined market caps of almost $2 trillion and have spent hundreds of billions of dollars to develop these new resources, I mean, it's ludicrous.”


That's how Aubrey McClendon, CEO of Chesapeake Energy, described the New York Times' coverage on Mad Money on June 28, 2011, apparently referring to reporter Ian Urbina and the speakers in emails he published, shale gas skeptic and federal reserve board advisory member Deborah Rogers, and Art Berman, the so-called “third-tier geologist.”

Jim Cramer, the show’s host, also questioned Berman's and the Times’ credibility, saying: “If we're being duped by the nat gas industry, as this article suggests, then how come Exxon Mobil spent 31 billion to buy nat gas giant XTO? Were they fooled, too?”

It’s worth noting that Art Berman’s analysis is looking highly prescient these days. Official government estimates for shale gas have been slashed significantly. And the most basic element of his thesis -- that caution is in order because it’s too early to know for sure how much and how long fracked wells will produce  -- has even been echoed by an unexpected source: former CEO of ExxonMobil Lee Raymond.

“It’s going to be a little while before people are really confident that there is going to be a sufficient amount of gas for 30 years to support the construction of an LNG plant,” Mr. Raymond told Bloomberg News during a February interview. “I’m frankly not sure that we have enough experience with shale gas to make the kind of judgment you’d have to make.”


Questions about Aubrey McClendon’s Chesapeake Energy in particular have come into sharper focus in light of a series of revelations by a team of over a half-dozen Reuters reporters, based on documents that show Chesapeake colluded with its competitors to drive down lease prices in Michigan, McClendon has borrowed heavily from lenders who do business with Chesapeake and ran a shady hedge fund on the side.

This Reuters series has sparked investigations into Chesapeake Energy’s books by the Department of Justice, the Securities and Exchange Commission and the Internal Revenue Service. It has also led to McClendon’s ouster as board chairman (though not as CEO) and driven Wall Street investors to scrutinize the company's declining value for months.

But even these reports have come under fire and labeled attacks against the industry:

Another week, another “cut” at Chesapeake Energy and its flamboyant CEO Aubrey McClendon. Death by a thousand cuts will work, as long as in the end it’s death, right? And that’s exactly what the mainstream media is clamoring for.

A new hit piece by Reuters attempts to smear McClendon and in the process snags Canadian company Encana. …

ran an un-bylined piece in Marcellus Drilling News, a website that lists the Marcellus-region branch of the shale gas industry’s most aggressive PR shop, Energy in Depth, as among its key sponsors

Ultimately, industry proponents may find that these sorts of unsubstantiated allegations of animus are subject to the law of diminishing returns. The field is increasingly crowded with reporters and columnists who have had their professional credentials questioned, had their coverage labeled a “hit piece,” or been accused of waging a “war” against shale gas. And the investigative reporting that prompts howls from the shale gas industry increasingly earns respect and accolades from fellow journalists.

How much longer can the shale gas industry attempt to play the victim, when all the evidence compiled by investigative journalists points to significant cause for concern about threats to drinking water and public health, as well as the economic fallout of the shale gas bubble

Perhaps the shale gas industry should spend less time on attack-dog PR, and more time acting responsibly to address its many risks. 

Originally published on DeSmogBlog.

 

Follow Brendan DeMelle on Twitter: www.twitter.com/bdemelle

FOLLOW GREEN
Since late 2009, there’s been a slowly-growing wave of attacks from the unconventional oil and gas industry on media outlets that cover the controversies surrounding hydraulic fracturing (fracki...
Since late 2009, there’s been a slowly-growing wave of attacks from the unconventional oil and gas industry on media outlets that cover the controversies surrounding hydraulic fracturing (fracki...
 
 
  • Comments
  • 50
  • Pending Comments
  • 0
  • View FAQ
Comments are closed for this entry
View All
Favorites
Recency  | 
Popularity
Page: 1 2  Next ›  Last »  (2 total)
12:23 PM on 08/13/2012
Tell us what you think about this "war" and what side you're on at shalestuff.com
03:54 PM on 08/05/2012
I believe natural gas and its derivative are important transition transportation fuels. the fracking problems need honest anaysis and an honest environmentally sound response. I am convinced there are technological solutions...if environmentalists and companies can find a way to work together. Natural gas safely produced is better forthe environment and will lower ghg until we develop a competitive electric vehicle or vehicles powered by a range of atlernative fuels. Marshall Kaplan www.fuelfreedom.org
01:36 PM on 08/04/2012
It is important for everyone to keep reporting the facts about how this industry has broken our Democracy. In PA we now have Act13 going to the PA Supreme Court because it has been found to be unconstitutional in the court of common pleas. The governor has been "dictating to municipalities" where the industry can operate. When the American people are being subject to "PSYOP's" operations there is a clear reason for doubt that this industry is being fair and honest in it's activity. Everywhere drilling is taking place there are severe, serious threats to our health, water, air and property values. There have been major spills, well blowouts and evacuations that aren't being reported. Only slick ads from the Industry. Someone said "it's going to take a major accident before the news media will report the truth." Now that we have been speaking out through grass roots organizations, getting the word out any way we can they are reacting by calling us "fear mongers" Is it a war against the gas industry? YOU BET IT IS! If a terrorist organization was found polluting and CONTAMINATING our water supply the way this industry has you can be sure the government would declare war on them. With many of our government officials bought and paid for by the industry it has been left up to us "the people" to fight. Much of the time without any help from the people who were elected to protect and serve the people.
07:44 AM on 08/04/2012
Come on. Whatever the negative aspects of shale gas are, and they may indeed be significant, surely the motivation behind any "war" on shale gas is obvious. It'a another fossil fuel and this does not sit well with those who would prefer a greener future.
Genders
Love, Tolerance, Enlightenment
03:11 PM on 08/04/2012
Really? With fresh water predicted to be the next big crisis, and the massive contamination by fracking with chemicals that cannot be removed is completely unsustainable.

Take all breaks away from fracking, fossils and nukes, which we do not want for their damage to the commons and our health, and they claim to be profitable anyway.

Put all those breaks and 100 times as much into rooftop solar, offshore wind and waste bio fuels, that a clean, save, forever, cheaper than nukes and clean coal, less damaging by far than fracking, oil wars can coal.

Get serious.
photo
HUFFPOST SUPER USER
Eugene Berkovich
Unapologetic Socialist
06:42 PM on 08/03/2012
Media is not leading a war on shale gas, facts are.
photo
minnehot
Tear Down This Wall!
06:29 PM on 08/03/2012
Of course there is a War against producing our own energy in the USA - it means the 'Peak Oil' worldview was false and that simply chokes the eco-freaks of Marin County that had the new world made up exlusively of 'clean' sun, wind, and wave power sources. Sorry, the good folks of the free market discovered over 100 years of USA supply of Natural Gas and another 50 yrs of oil using advanced fracking techniques - No government 'research' grants - just using private investment from the market willing to take a risk to make a profit - oh heavens no! That's not how we planned it in Berkeley, Cambridge, Hyde Park, and Brentwood!!!!

Be happy libs - no more Blood for Oil - energy independence is at hand - enjoy the peace...
07:18 PM on 08/04/2012
ditto
photo
HUFFPOST BLOGGER
Brendan DeMelle
Executive Director of DeSmogBlog
02:12 AM on 08/06/2012
"Oh heavens no" is right! Thank you minnehot. Now for the facts...

"Many often point to the shale gas revolution as evidence that the private sector, in response to market forces, is better than government bureaucrats at picking technological winners. It's a compelling story, one that pits inventive entrepreneurs against slow-moving technocrats and self-dealing politicians.
The problem is, it isn't true.
The breakthroughs that revolutionized the natural gas industry -- massive hydraulic fracturing, new mapping tools and horizontal drilling -- were made possible by the government agencies that critics insist are incapable of investing wisely in new technology.
Slick-water fracking, the technology that Mr. Mitchell used to crack the shale gas code, was adapted from massive hydraulic fracturing, a technology first demonstrated by the Energy Department in 1977."
http://www.post-gazette.com/stories/opinion/perspectives/shale-gas-credit-the-feds-too-225706/

http://en.wikipedia.org/wiki/Hydraulic_fracturing_in_the_United_States
04:53 PM on 08/03/2012
Art Berman is best known for his video at the Peak Oil conference. He is a peak oil believer. Private money not tax money has developed shale oil & gas and reaped rewards.government types & greens dont like that. higher & higher prices of fossil fuels were supposed to make renewables the best alternative. guess we will need some executive orders to fulfill that dream
04:26 PM on 08/03/2012
Dry fracking is the next big move for shale. It is very clean. Get over it.
photo
fezzick51
We are the music makers, and dreamers of dreams...
10:11 AM on 08/17/2012
See how you feel when you're standing in the shower and fear what the chemicals from fracking are doing to you (or your family) from the now contaminated water from your well...

And with whatever bias you may have about it, these pieces do illuminate a few of the concerns that people _should_ have:
http://youtu.be/iNl6sx059bE - 60 minutes piece
http://www.pbs.org/now/shows/613/index.html - an interview about the 'Gasland' documentary.

Ultimately, any geologist can tell you that even if you've tapped the gas perfectly, and the pipe never perforates and allows obvious contamination of the strata, there is a deposit of chemicals below that will, over a period of time based on the substrates it will need to pass through, eventually find it's way through those same strata and wreak havoc.

I'm a capitalist, but I'm a realist first. This isn't "energy freedom" in any way, shape, or form, especially not when it's already been shown that a majority of this gas will wind up on the global market...hardly an example of the U.S. moving toward energy independence.
photo
HUFFPOST SUPER USER
Thanks4Watching
Daily dose of cynicism
09:16 AM on 08/03/2012
But I thought it was un-patriotic to describe something that isn't a war, as a war?

Come on, where's the outrage? Anyone? No?
photo
HUFFPOST SUPER USER
Aesops
Appearances often are deceiving
02:34 AM on 08/03/2012
We are so f'd. Shale gas is no solution to US energy needs long term. Its once more a great deception that has been propagated against the American people by an industry and its cadre of hand-picked 'scientists". The fact is that the well production of these gas wells drop off dramatically fast once started. That's why they are drilling like crazy, because there is no lifespan to existing wells. They need to replace throughput that is degrading rapidly and this is the "solution" to America's energy needs. It is a tragedy.
03:52 PM on 08/03/2012
Really? What is the basis for your assertion? Or is it that horizontal wells (all of them) follow a hyperbolic decline curve that industry expects to drop off by about 80% over the first year and then remain relatively flat for the next 20 years.
09:28 PM on 08/03/2012
I live in the middle of the Marcellus and have followed the space as a prospective investor. The reason so many wells were drilled had nothing to do with production declines. It had everything to do with the lease terms for the rights, and establishing "in-production" status - a land grab. If a well wasn't sunk and put in production on a leased lot within a specified period of time, the lease expired and the owner of the lot could turn around and collect another (SUBSTANTIAL) up front fee from a new E&P company... A lot of the E&Ps were funded with "use-it-or-lose-it" money they had to put to work. This created a huge bidding war for leases, which made getting a leased lot 'in-production' that much more important. There are no new wells going into the Marcellus. All the 'use-it-our-lose-it' money has been put to work or pulled out because of the huge drop in 'dry-gas' value from over supply - all the drilling rigs are punching holes for oil and or NGLs. There is so much oversupply of 'dry-gas' that prices have fallen to record lows ($2-$3 dollars vs. $15 just a couple of years ago) and there is no place left to store it - if a well in production has to be shut in it degrades the resource and lowers future production from that well.

You are talking out of your ass...
This user has chosen to opt out of the Badges program
photo
01:40 AM on 08/02/2012
Where is Berman's article?
09:31 AM on 08/02/2012
I think it's less a question on "motives" of the media and more on the outlandish facts being reported. There are no redactions when new data comes to light and it appears that headlines are inflammatory and written to drive web traffic and generate revenue to a dying print industry. We all know the motives of media. It's no secret. Natural gas is just today's flavor of the week. These journalists go home cook up a burger on their gas grill or drive their gas vehicle home and turn on their lights in the house which are powered by coal and enjoy their sense of self accomplishment. What i don't see from some media sources is a true exploration of what is happening now for power generation and what are the alternatives and what are the cost of implementing those alternatives. (save for Popular Science and PBS) By the way Chicago just shut down 2 very large coal firing plants, switched to nat gas. If there was a war to win the environment, Nat gas just delivered you a huge victory! Now energy producers can reduce air pollutants from coal and meet new federal standards...What did geothermal or solar do? How much generation have they replaced? Anyone commenting own stock in green companies?
photo
Artparker
If I put something here, someone might judge me
06:40 PM on 08/02/2012
The price for energy for the masses is the health of people and their environments where there digging the crap up. Just because they closed two coal plants to open a natural gas one, doesn't change the fact that both methods for abstracting power are dirty ones. Regardless of how much people want to dismiss clean energy, one day it's all we'll have left; coal, oil, gas, they don't last forever.
photo
HUFFPOST SUPER USER
Thanks4Watching
Daily dose of cynicism
09:25 AM on 08/03/2012
Having less air pollution in exchange for contaminated water supplies is like choosing between drowning in boiling water and drowning in freezing water.

Either way, you're drowning.
09:10 PM on 08/01/2012
such a horror .... you drive through areas of the USA where corporations have ruined whole mountains.... the communities live in chemicals... horrible smell. Their wells are totally ruined.

Thank you CORPORATE AMERICA... and you have the gaul to say you're doing it for the betterment of the USA and our children? SICK!
HUFFPOST SUPER USER
pjlim
08:56 PM on 08/01/2012
It's all perfectly safe. We've never had our cement casings fail.......for now. They fail to mention that these casings are supposed to protect us from their toxic brew for only "forever"!
photo
HUFFPOST SUPER USER
Scott Hooten
01:36 AM on 08/02/2012
To hell with the toxic gas releases ever see what happens when pressure is accidentally released form an under ground caverns. Sink holes the size of towns aren't uncommon. Then add what happen in Indonesia where they lost a million acres of farm land to a mud volcano caused by normal drilling.
photo
HUFFPOST SUPER USER
joe npb
Pepe Le Pew Clay Pigeon, Lame Duck
04:47 AM on 08/04/2012
Idiocy abounds. These structures are 8000+ feet deep.
photo
HUFFPOST SUPER USER
Roosevelt Democrat
11:02 AM on 08/02/2012
"It's all perfectly safe."

Let's hold the Airline Industry to the same standards!

http://en.wikipedia.org/wiki/List_of_accidents_and_incidents_involving_commercial_aircraft#2011
FreeHat
Really?
06:43 PM on 08/01/2012
Shale gas seems to be a lot better than global warming. Or not? That's where the debate should be.
03:23 AM on 08/02/2012
The US is the world's biggest gas consumer. Without shale gas you'd be totally reliant on Russian gas - unless you want no heating in the winter or no aircon in the summer.
photo
HUFFPOST SUPER USER
Thanks4Watching
Daily dose of cynicism
09:23 AM on 08/03/2012
I'd much rather pay extra for electrical heating than have my drinking and bathing water contaminated.
photo
HUFFPOST SUPER USER
Sagrimore
They can never take my panache
10:04 AM on 08/02/2012
Burning natural gas instead of coal is "safer" in the same way that being shot in the head by a .22 is "safer" than being shot in the head by a .45.
photo
HUFFPOST SUPER USER
Roosevelt Democrat
12:22 PM on 08/02/2012
Posted by an individual that chances are is using a combination of both energy sources.
photo
HUFFPOST SUPER USER
Roosevelt Democrat
06:26 PM on 08/01/2012
Unfortunately most of the questions presented by many in the press to the gas companies are in the form; "Have you stopped beating your kids? Answer yes or no."

Can fracking be done safely and with minimum environmental impact? The answer to that is obviously yes. Has it always been done in the past without minimizing the environmental impact? The answer to that is unfortunately no. Is it perfect? Of course not. But as fossil fuels go it's the best choice both economically and environmentally when one considers all the variables.

The only green energy that can compete in cost and reliability with natural gas is hydro. This is still the unfortunate truth.
jhNY
Mercy.
07:28 PM on 08/01/2012
Won't the impact of fracking on water tables be assessable only after time has passed, by which point, if the eventual impact is great, the assessment will come too late?

"Can fracking be done safely and with minimum environmental impact?" Your answer is glib and unspecific. Are you saying it can be done safely, etc., wherever pockets of gas are found?

Where are you getting your information?
photo
HUFFPOST SUPER USER
Roosevelt Democrat
08:46 PM on 08/01/2012
http://www.ecowatch.org/pubs/earthwise_febmar2011.htm
http://www.ibtimes.com/articles/303586/20120223/hydraulic-fracturing-safety-water-epa.htm 

As for the EPA being bought or a friend to the industry please read this link.
http://www.usnews.com/opinion/blogs/on-energy/2012/04/06/lisa-jacksons-epa-has-gone-rogue 

If there was a smoking gun the EPA would be all over it!
photo
HUFFPOST SUPER USER
Roosevelt Democrat
08:57 PM on 08/01/2012
Think about this the EPA has been in charge of injecting deep into the Earth 9 billion gallons a year of highly toxic liquid waste.

http://people.uwec.edu/piercech/HazwasteWebsSp04/DeepWellInjection/DeepWellInjection.htm

This activity is where you hear about the earthquakes not usually from fracking. And most of this waste is not from fracking.
HUFFPOST SUPER USER
deweaver
Scientist, businessman, semi-retired
08:05 PM on 08/01/2012
But hydro is also an environmental activist NO-NO.

Most eNGO's just want other people to leave the planet.
photo
HUFFPOST SUPER USER
Roosevelt Democrat
01:32 AM on 08/02/2012
I know what NIMBY stands for - What does eNGO's stand for?
I'm sure it's obvious but it's late.
photo
Artparker
If I put something here, someone might judge me
06:44 PM on 08/02/2012
I live where Hydro power is all we have and this town is full of environmentally minded people.