Delaware Activists Speak Out for Clean Air

By Sierra Club Compass

On Tuesday night, hundreds of Delaware residents near the Delaware City Refinery spoke out at a public hearing about the air permit for the facility as it plans to refine tar sands oil. Sierra Club Media Intern Kristen Elmore put together a great short video about the hearing.

PBF Energy Delaware City Refinery Title 5 Air Permit Hearing draft video from Kristen E on Vimeo.

Mystery in Gulf of Mexico: Why is Oil Leaking from Deepwater Disaster Site?

Oil identified as coming from the Macondo well, site of the 2010 Deepwater Horizon disaster, is leaking into the Gulf of Mexico at the rate of 100 gallons per day. The Coast Guard is investigating.

More >

This Land is OUR Land, or is it Oil Land?

By Athan Manuel, Director, Sierra Club Lands Protection Program

Athan Manuel, Director, Sierra Club Lands Protection Program

Athan Manuel, Director, Sierra Club Lands Protection Program

I recently enjoyed some excellent hiking and camping in one of America’s wildest places, southern Utah’s Canyonlands. Some Sierra Club colleagues and I joined the Great Old Broads for Wilderness for a “Broad Walk” the last weekend of September. It was my first trip to that spectacular part of the Beehive State.

The Canyonlands, both the 300,000 acres in the National Park and the almost 3 million acres of federal land (mainly BLM land) that surround it, is one of the most unique and beautiful places on the planet. Formed by rivers like the Colorado and Green, and shaped by the prehistoric sea that created the Great Basin, Canyonlands offers a collection of stunning canyons, rivers, mesas, cliffs and archeological sites. Thousands of visitors go there annually to hike, camp, rock climb and recreate.

Athan Manuel, Director, Sierra Club Lands Protection Program

Athan Manuel, Director, Sierra Club Lands Protection Program

We saw some tremendous landscapes, including the above photo of the Colorado River taken during an overflight with Ecoflight. What struck me was seeing thousands of acres of wild and largely untamed land. In addition to wild lands, we also hiked among thousand-year archeological sites and petroglyphs left behind by ancient First Nation civilizations.

When most people look at places like the Canyonlands, that’s what they see – a great place to visit, explore and enjoy.

Most people – but not all.

At the recent presidential debate, Republican nominee Mitt Romney boldly stated that if elected he planned to double the amount of oil and gas drilling on our public lands - public lands like the Canyonlands. Double the drilling means double the pollution, double the spills, double the industrialization of our public lands. Instead of protecting one-of-a-kind places like the Canyonlands for future generations to enjoy, Gov. Romney would lock up our public lands for oil and gas drilling and mining.

Gov. Romney admitted earlier in the campaign that he “didn’t get it” when it comes to America’s public lands – and that’s an understatement! He doesn’t get that America’s public lands protect spectacular beauty and unique places, support hundreds of thousands of tourism and recreation jobs, and generate millions in tax revenue for local communities.

More importantly, he does not understand that our public lands belong to us as Americas, and that our public lands also represent the best of American democracy.

These are OUR lands, not oil lands.

Original post >

The North Dakota Oil Fracking Boom Creates Clash of Money and Devastation

This is a story about one tribal nation grappling with the stresses of life during oil time - housing, traffic, crime, crowds, their quality of life.

NEW TOWN N.D. –When the black gold rush began, no one on the Fort Berthold Indian Reservation expected it to take down Main Street.

A modest strip of one- and two-story buildings framed by undulating plains, Main Street doubled as the reservation’s community hub, in the tradition of small towns. Neighbors caught up at the Jack and Jill grocery, elders strolled to the library, children rode their bikes on the streets.

No one imagined tanker trucks barreling up and down Main Street, back-to-back like freight trains, seven days and nights a week.  No one predicted construction zones that grind traffic to a halt as far as the eye can see, the deafening clatter of semis, the dust kicked up by 10,000 vehicles pulverizing the two-lane road every day or the smell and taste of diesel. No one anticipated the accidents, two or more a week on Main Street and all over the rutted reservation roads, costing lives and shattering families.

In fact, Fort Berthold, home of the Mandan, Hidatsa and Arikara Nation, or Three Affiliated Tribes, did not reckon on a lot when North Dakota invited the energy industry to Drill Baby Drill. No one knew that energy companies in search of housing for their workers would buy private property and evict some of the reservation’s poorest residents from their homes. No one planned on police and fire calls multiplying. No one guessed that on a reservation of nearly one million acres, all the deer would disappear.

In the heart of the refuge of recession America, this little-known tribe is grappling mightily with the consequences of striking oil.

“It’s horrible,” said Becky Deschamp, a 41-year-old lifelong Fort Berthold resident.

Deschamp offered that verdict while packing her trailer, not by choice. In November, an oil company bought the run-down Prairie Winds Trailer Park two blocks off Main Street where she and her husband and two children have lived for seven years.  With land and housing nearly impossible to find, the park’s 45 families—more than 180 adults and children in all— were given two extensions before the final Aug. 31 deadline to leave.

Just six weeks before the deadline, when the tribe cleared and prepared a lot three miles outside of New Town, the evictees still had no idea where they would go. But they were luckier than some. Last year, a nearby trailer park was sold and its residents given 30 days to move. The tribe offered them a field about 10 miles away, but soon after they moved there, the lot buckled under sewer and water demands.  When the ground began to sink, families had to relocate again, even farther away from town.

“The tribe didn’t count on these disruptions,” Deschamp said, surveying the boarded trailers and junked cars left behind by neighbors. “I know I didn’t.”

What the tribe counted on when the boom hit two years ago was money.  It never had any to spare and the recession made things worse.  About 40 percent of the tribal workforce was unemployed and people were leaving the land where the Mandan, Hidatsa and Arikara have lived for more than a millennium. For a nation with only about 4,500 of its 13,000 enrolled members living on the rez, the wretched economy threatened the community’s very survival. Then Fort Berthold turned into a black gold mine.

The reservation’s swath of prairie and pasturelands sits over the Bakken, the biggest sea of oil discovered in the United States in 40 years. Until a few years ago, the Bakken, which also stretches across parts of South Dakota, Montana and Saskatchewan, was too deep to mine. Horizontal drilling and hydraulic fracturing, or fracking, which involves blasting chemical-laced water and sand deep underground to break apart shale and release gas, has given oil companies the means to have their way with the Bakken. And so they have.

Several states have banned fracking as too environmentally taxing. Other states have limited the practice. Not North Dakota.

With few regulations and little protest, oil production is proceeding at a dizzy pace. Last year, North Dakota became the third largest oil producing state in the nation, bumping California. This year it replaced Alaska for the number two spot after Texas. The oil patch is now producing more than 600,000 barrels of oil a day.  Thanks to oil taxes and related revenue, North Dakota is expecting its surplus to top $2 billion within the year. This in a state with only 641,480 people pre-boom.

New Town, with about 1,500 residents pre-boom, now boasts North Dakota’s fastest growing economy.  But while it is on Fort Berthold, it is considered part of Mountrail County, not part of the tribal nation.

Still, the tribe is raking in cash. The Fort Berthold reservation received more than  $117 million in royalties in 2011, according to the Bureau of Indian Affairs. Individual tribal members who own mineral rights on their private land, or allotments, receive anywhere from hundreds to tens of thousands of dollars a month. That’s about two-thirds of the tribe’s total royalties.

Unemployment, now between six and seven percent, keeps dropping. Businesses are thriving. The Four Bears Casino is adding 160 rooms to its 97-room hotel and plans to offer ferryboat gambling on Lake Sakakawea, the Missouri River reservoir that runs through the reservation.

People who used to come to the tribal offices asking for help no longer do. “We appreciate the money that’s coming in and helping to improve incomes and the socioeconomic status of our members,” said Dennis Fox, the tribe’s CEO.

But, Fox added, despite all the oil money coming in from royalties and taxes, Three Affiliated Tribes is spending all of its new income—and then some –dealing with the oil production’s impacts.

In an interview at tribal headquarters, Fox offered a “but” for every positive impact of the oil rush. The tribe’s budget for special projects is now double its average yearly operating budget of between $40 and $50 million, he said. But the tribe estimates that it will cost more than $100 million just to repair the reservation’s road system.

“It’s a matter of playing catch up,” he said. “We’re trying to beef up all of our infrastructure. Nobody anticipated the great influx of workers and the impact on the roads and housing and everything else.”

The tribal chairman, Tex Hall, regularly treks to Washington, D.C. to plead for road relief.  “I already receive almost daily calls telling me of serious accidents involving our members,” he told a Congressional appropriations subcommittee in April.

“In fact, we now have so many accidents on my reservation that my staff does not even both to call me unless the injuries are life-threatening. The situation has now gotten to be that bad.”

All over the Bakken lands of Western North Dakota, known as the oil patch, towns are going through many of the same challenges. Highways are getting pounded to dust, police, fire and social service departments are scrambling and housing is beyond hard to find.

In a way, history is repeating itself.  Cities and towns across the country have gone through similar upheavals for the sake of energy production and jobs, including the small towns of southwest West Virginia and eastern Kentucky during the heyday of coal.  That part of central Appalachia is still struggling to pick up after booms went bust.

Of course, North Dakota invited the oil companies. But the oil patch is like the high school wallflower who announces a backyard kegger on Facebook, only to find the entire student body has shown up. Before it gave oil drilling a go, North Dakota was the nation’s least-visited state. The once-overlooked, now overwhelmed oil patch never dreamed it would become the center of the biggest, messiest migration to one state since the California Gold Rush.

That it was unprepared for the deluge is painfully obvious. The oil patch looks like the aftermath of a natural disaster. There are long lines everywhere, from gas stations to taco trucks, store shelves look ransacked and forget about getting a hotel room within a hundred miles. Man camps, the makeshift encampments for oil workers, crop up overnight in fields where cows graze. So many newcomers crash at the Wal-Mart parking lot in Williston – at least 100 vehicles from all over the country every night – that it’s almost becoming a neighborhood.

And traffic in the patch is like traffic nowhere else, not even in the nation’s biggest cities. It can take 90 jaw-clenching minutes to drive 30 miles. Pity the passenger car driver surrounded on every side by tankers, flatbeds and cement mixers. Everywhere you go, people are beleaguered and out of sorts.

Fort Berthold is suffering all the woes of the Bakken boomtowns, and many more.

The tribe is a federally recognized sovereign nation, which makes its challenges more complicated. North Dakota is creating a fund for road repairs and upgrades in the oil patch, for example, but, Fox said, the tribal nation is not eligible for the money.

Its biggest day-to-day problem is policing the reservation. Under Federal law, imposed by a 1978 Supreme Court ruling that has bedeviled Indian Country, tribal nations have no criminal jurisdiction over non-Indians.

So while police calls on Fort Berthold have more than doubled, many of the calls involve newcomers who are not tribal members and who tribal police lack the power to arrest.

Crime is up all over the oil patch.  Police blotters in communities where a stolen bike was once noteworthy now list robberies, assaults, prostitution, drug trafficking and organized crime, not to mention many traffic accidents.

For a Fort Berthold tribal officer, answering a call can be a day’s work. The tribal force of 11 tribal officers patrols over 1,000 miles of road. Since the reservation includes about 150 miles of state highways and 660 miles of county roads, a tribal officer can call a sheriff’s department if an incident is on county land—the reservation includes parts of six counties—or they can call state police if the incident falls in their jurisdiction. Or they can call on federal officers, from the Army Corps of Engineers, Bureau of Indian Affairs, Dept. of Homeland Security, if non-tribal members commit crimes that fall under those entities’ jurisdictions.

It was an inefficient and sometimes ineffective system before the oil boom.  Now, with law enforcement agencies all over the Bakken lands overburdened, there are not enough officers to handle every incident. The tribe is working with local and state law enforcement agencies and the Bureau of Indian Affairs to revamp its policing and develop a strategy to empower its force, such as cross-deputizing tribal police with sheriff’s departments.

What residents of Ft. Berthold say they miss most is their peace. Peace and quiet has always been Western North Dakota’s primary currency, the main answer hardy souls could pitch to those who might ask why anyone would live Way Out There. These days, long-time residents often complain that they no longer feel safe. They read stories in the papers, see warnings of registered sex offenders on community bulletin boards, bump into newcomers who don’t make eye contact.

It’s a culture shock on a reservation with five tight-knit villages, each with just hundreds of residents. People grow up here knowing which neighbor gets home when by the sound of their cars—the hum of a 4×4, say, or the putt-putt of an old Jeep.

Now, they hear rumors.  “It’s kind of scary,” said Loren Fox, as he sold $6 Indian tacos under a white tent by his family’s trailer in the rural community of Mandaree.

He kept his daughters, two and four years old, tucked by his side.

“Before there was no problem,” said the 41-year-old Fort Berthold native.  “But you hear stories—people coming around talking to kids and stuff.”

Loren Fox is torn between believing that oil is the best thing to happen to Fort Berthold and the worst. His cut from royalties he shares with a half dozen relatives for seven wells drilled on their land comes to about $2,000 a month. His wife receives between $400 and $900 a month for mineral rights her family holds on their ancestral land.

But Fox has lost three family members to car accidents with trucks in the last three years. He lost two nephews, 28- and 25 years old, within four months of each other, he said.  In June, he lost a 40-year-old cousin to a crash with a semi.

He also laments the loss of wildlife.  The tribe is canceling deer season this year for the first time.

“All the traffic,” Loren Fox said, “has scared the deer away, I guess.”

His guess is as good as anyone’s: no one is quite sure why the deer have disappeared. Of all the talk of all the problems in the oil patch, one barely hears a whisper about the possible environmental consequences of the fevered development.

Environmental advocates have been sounding the alarm on fracking for its potential to contaminate ground water, the amount of energy  it uses (hundreds of millions of gallons of water per well) and its possible disruption to the earth. It has been linked to earthquakes in Oklahoma, Texas and Great Britain.

Cities and towns in the oil patch have had a problem getting a handle on all the accidental oil and wastewater spills that occur. The Three Affiliated Tribes are also trying to stem the deliberate dumping of chemical-laden wastewater along roads or in remote areas of the rez.

Tribal police were getting so many calls from people spotting trucks dumping toxic fluids– several each week, Dennis Fox said– that in August 2011 it imposed fines of up to $1 million for a third deliberate offense.

Then there are the gas fires.

All over the Bakken lands, startling fires rise above the hayfields, spewing natural gas into the atmosphere. The fires, or flares, are a byproduct of oil production. When fracked gas is released, so is natural gas, but since natural gas is going begging on the worldwide market, and building the infrastructure to capture the gas would be expensive, companies just burn it. The fires spew over two million tons of carbon dioxide into the air each year, the equivalent of nearly 400,000 cars.

The World Bank, which has been campaigning for 10 years to get nations such as Russia, Nigeria, Iran and Iraq to stop flaring, now ranks the United States as the fifth worst offender thanks to North Dakota’s oil boom.

Neither North Dakota nor the Mandan Hidatsa Arikara Nation have rules limiting flaring. But the tribe does plan to capture the wasted natural gas. In July, it received the final permit approval to build a crude oil refinery, the first to be built in the continental United States in over 40 years.  The tribe also plans to build a pipeline to move oil – and gas—to the refinery.

What tribal leaders do not want are more regulations. The Obama administration has proposed requiring that oil companies disclose the chemicals they use in fracking, a move tribal leaders say would slow down oil production.

Tribal leaders are determined to make the most out of this oil boom, which they see as the ticket to independence from the federal government. They remember all too well how the tribe missed out on the last oil craze.

In the 1980s, when North Dakota experienced a smaller, more conventional oil boom, the tribe was virtually shut out. Oil companies skipped the reservation because the federal government, which administers Indian lands, required that oil companies go through dozens of steps, taking many months, before granting  permits. Outside the reservation, companies received permits within weeks.

To make sure they would not miss out this time, the tribe made two moves. It struck a deal with North Dakota to lower the taxes companies would pay the state and the tribe for leases on tribal land and it lobbied the Bureau of Indian Affairs to set up “one-stop shops” to streamline the permitting process.

Tribal leaders say they are looking out for their own interests, tired of history repeating itself.

Fort Berthold children learn early, in school and at home, that United States policies have betrayed the tribe again and again.  The U.S. government broke the Fort Laramie Treaty of 1851, which set the reservation’s borders, to seize millions of acres of reservation land to establish Montana and expand railroad lines.

Then, in the late 1940s, the federal government decided to damn the Missouri River to create hydroelectric power and Lake Sakakawea. The project flooded river bottomlands that the tribe had so assiduously cultivated and that provided its major source of income. Over one-fourth of the reservation’s total land base was inundated by water. By 1954, nearly 80 percent of the tribe had relocated and almost all of its crop and grazing land, 94 percent, was lost.

The reservation now comprises just under a million acres. Only about half of that is tribal land, either owned by the tribe or tribal members whose families received allotments under an 1887 federal act that sought to privatize Indian lands. The rest of the land is either privately owned, largely by those whose ancestors settled in the Plains when the federal government gave away “unclaimed” Indian lands to homesteaders (beginning with the first Homeststead Act, in 1862) or public land, as in national park land.

Tribal members lucky enough to have mineral rights on their allotments are reaping the oil rush’s bounty. But even some of those members feel cheated. After the first leases were signed, energy companies began to “flip,” or sublease, their leases, at huge profits, with the federal government’s approval but without the allotees’ permission. Since then, tribal landowners have organized their own associations to maximize their interests.

But not everyone is collecting royalty checks. A little over half of the tribal enrolled membership now receives oil checks. The rest: nothing. The new reality is creating a divide in the Mandan, Hidatsa and Arikara tribe between the haves and have-nots.

No one blames the have-nots for resenting the unmitigated upheaval they’re enduring while the haves buy new cars and take vacations. Allotees receiving oil checks have formed a development corporation to invest their money in ways that will benefit all tribal members. Tribal leaders say that at some point in the future, they plan to develop a fund to “share the wealth” with all tribal members.

Becky Deschamp, from the Prairie Winds Trailer Park, is one of the have-nots. Her mistrust of government, honed from both distant and recent history, now extends to the tribal government.  She is thrilled that the tribe found a place to house the evicted Prairie Winds families but wonders why it took so long.

These days she avoid Main Street unless absolutely necessary. Driving home still means running a gauntlet of road construction on Route 23, dubbed “suicide road.” But she’s philosophical about it: At least she still gets to overlook the meditative waters of Lake Sakakawea. If the sewer and water systems hold up, she said, “I may never leave my home again.”

By Evelyn Nieves, originally published by Alternet with production assistance from the Economic Hardship Reporting Project.

Murder Incorporated: Big Oil Pleads Immunity from Prosecution for Human Rights Crimes

 This fall the U.S. Supreme Court will decide a case that throws a spotlight on the oil industry's toxic influence on our democracy -- and why we need to move America beyond oil as quickly as possible.

In the 1990s, Shell Oil enlisted the Nigerian military dictatorship to suppress opposition to Shell's oil operations. A 2002 lawsuit, Kiobel v. Shell, alleges that Shell "aided and abetted" the Nigerian military dictatorship in committing severe human rights abuses against members of the Ogoni people who were involved in a nonviolent movement to stop it from drilling for oil in their rich Niger River Delta homeland. But, in a challenge to a 200-year-old law, Shell is arguing that as a corporation it cannot be held responsible for human rights violations abroad.

The company isn't denying the charges; it's claiming that as a corporation it should be able to get away with murder.

Katie Redford, a human rights lawyer and cofounder and director of EarthRights International, explains the case this way:

Shell is asking the Court for a "Vegas" rule: that what happens in Nigeria stays in Nigeria. In the 1990s Shell funded and armed a violent military dictatorship. They used the Nigerian army and sham courts to torture and eliminate people standing in the corporation's way. And now Shell, and the entire oil industry, wants a world in which human rights law does not apply to them.

Shell -- and six oil companies who filed briefs in support of Shell -- claim that as corporations, they enjoy immunity from prosecution under international human rights law because they are not a person, but a corporation. Forget that the Supreme Court ruled in the 2010 Citizens United case that corporations ARE people under the law. But somehow their "personhood" stops short of taking responsibility for their actions. And, in this case, we’re talking about some really despicable actions.

The Ogoni people are ethnic minority that farms and fishes the rich Niger River Delta. Since the 1950s the Ogoni and their land has been poisoned and exploited by oil development. Nigeria is Shell's largest source of oil outside the U.S. In the 1990s, Shell collaborated with the military dictatorship to target Ogoni leaders who opposed Shell’s oil operations in their homeland. After a widely condemned sham trail in 1995 the Nigerian military government executed a prominent Ogoni leader, Dr. Kiobel, along with other leaders of the peaceful resistance to oil development known as the "Ogoni Nine," which included Goldman Environmental Prize winner Ken Saro Wiwa. In 2009, Shell paid $15.5 million to settle a separate lawsuit for its role in the Ogoni Nine executions and Saro Wiwa’s death.

Dr. Kiobel's wife brought the Kiobel v. Shell lawsuit in 2002 under the Alien Tort Statute, a 220-year-old federal law that allows victims of crimes that break international law -- including serious human rights abuses -- to file suit in the U.S. The law was passed in 1792 and signed by President George Washington because the founding fathers wanted to affirm that our new nation was ready to uphold the rule of law.

Looking back at some of the most heinous examples of corporate behavior in history, the question of corporate responsibility under the law has come up before. At post-World War II Nuremberg trials corporations that contributed to Nazi atrocities were dissolved and their executives were stripped of their assets.

But Shell says the Alien Tort Statute doesn't apply to it, simply because it is a corporation. Only two years after the Supreme Court's Citizens United decision, Shell is asking the same judges to accept that corporations are immune from prosecution for human rights violations because they are NOT people under the law.

In an exchange at an earlier Supreme Court hearing on the case in February (highlighted in a great short video by EarthRights International,) Justice Breyer asked:

Do you think, in the 18th Century, if they brought Pirates Incorporated, and we got all their gold, and Blackbeard gets up and he says, "Oh, it isn't me, it's the corporation." Do you think they would have said, "Oh yes, I see, it's the corporation, goodbye, go home?"

To which Shell's lawyer answered:

Justice Breyer, yes, the corporation would not be liable.

The Supreme Court will now decide if Shell oil is legally responsible for its part in murder. This shouldn't be a difficult decision. I’m hoping that common sense and decency prevails in the halls of the Supreme Court, where even the ideologues must understand that as Americans, we must hold a zero tolerance policy for human rights abuses, wherever committed. George Washington and the other founding fathers passed a law to ensure that the arm of the law reaches pirates and murderers wherever they break the law, and that those pirates and murderers would have no safe haven in the US. And in 1792 they had a pretty good idea of the intent of the framers of the Constitution on the subject, since they wrote it.

-- Michael Marx, Sierra Club's Senior Director of the Beyond Oil Campaign

Strait of Hormuz is Chokepoint for 20% of World’s Oil

Source: U.S. Energy Information Administration.

International crude oil and liquefied fuels movements depend on reliable transport through key chokepoints. In 2011, total world crude oil and liquefied fuels consumption amounted to approximately 88 million barrels per day (bbl/d), and more than one-half was moved by tankers on fixed maritime routes. Chokepoints are narrow channels along widely used global sea routes, some so narrow that restrictions are placed on the size of the vessel that can navigate through them. The map shows chokepoints that are critical areas for global energy security because of the high volume of oil that moves through waterways.

The Strait of Hormuz, located between Oman and Iran, is the world’s most important oil chokepoint due to its daily oil flow of about 17 million bbl/d in 2011, roughly 35% of all seaborne traded oil and almost 20% of oil traded worldwide. More than 85% of these crude oil exports went to Asian markets, with Japan, India, South Korea, and China representing the largest destinations. The blockage of the Strait of Hormuz, even temporarily, could lead to substantial increases in total energy costs.

Among the major oil exporters that ship oil through the Persian Gulf, only Iraq, Saudi Arabia, and the United Arab Emirates (UAE) presently have pipelines to bypass Hormuz, and only the latter two countries currently have unutilized pipeline capacity on these pipelines. At the start of 2012, the total unused pipeline capacity from Saudi Arabia and the UAE combined was approximately 1 million bbl/d. The amount available could potentially increase to 4.3 million bbl/d by the end of this year, as both countries have recently completed steps to increase their capacity to bypass the Strait (see table).

Source: U.S. Energy Information Administration.
Notes: All estimates are as of August 17, 2012 and expressed in million barrels per day (bbl/d).
1Although the Kirkuk-Ceyhan Pipeline has a nominal nameplate capacity of 1.6 million bbl/d, its effective capacity is 0.4 million bbl/d because it cannot transport additional volumes of oil until the Strategic Pipeline to which it links can be repaired to bring in additional volumes of oil from the south of Iraq.
2“Unused Capacity” is defined as pipeline capacity that is not currently utilized and can be readily available.
3All estimates for 2012 are rates around the mid-year point; not the forecast average for 2012.
4Throughput rates for 2012 are assumed to be the same as average throughput rates in 2011.

  • Iraq cannot send additional volumes through its Kirkuk-Ceyhan (Iraq-Turkey) Pipeline to bypass the Strait of Hormuz unless it receives more oil from southern Iraq via the Strategic Pipeline linking northern and southern Iraq, but portions of the Strategic Pipeline are currently inoperable.
  • Saudi Arabia recently increased its additional unused pipeline capacity to 2.8 million bbl/d when it converted one of the two pipelines connected to the Petroline system back to transporting crude oil.
  • The UAE recently opened a 1.5 million bbl/d Abu Dhabi Crude Oil Pipeline, which runs from Habshan, a collection point for Abu Dhabi’s onshore oil fields, to the port of Fujairah on the Gulf of Oman, allowing crude oil shipments to circumvent Hormuz.

EIA’s World Oil Transit Chokepoints analysis brief contains additional information on Hormuz and the other chokepoints, and the Middle East & North Africa overview contains additional information about countries in the region.

Overturn Dangerous Tar Sands Exemption

Sierra Club fact sheet on IRS loophole exempting tar sands transporters from paying into the Oil Spill Liability Trust Fund:

Fact Sheet >

“Big Oil and Energy Traders Manipulating Consumers”

ANTONIA JUHASZ, antoniajuhasz at gmail.com@AntoniaJuhasz
Juhasz is an oil and energy analyst, author and journalist. Her books on the oil industry include The Tyranny of Oil. She is an investigative journalism fellow at the University of California, Berkeley Graduate School of Journalism. The Los Angeles Times recently published an op-ed of hers on the Chevron refinery fire.

Juhasz said today:

“Price manipulation is driving rising gasoline prices, not supply and demand fundamentals. In California, gasoline production increased by more than 12 percent in the week following the Chevron refinery fire as other refineries increased production. At the same time, gas prices increased dramatically driven by price manipulation. Big Oil and energy traders, who are often one in the same as every major oil company (with the possible exception of Exxon Mobil) report in SEC filings engaging in speculative energy trading, are manipulating consumers.

“According to the U.S. Energy Information Administration, nationally, U.S. crude oil stocks are higher now than they were at this time last year; U.S. oil production is at its highest levels since 1998; more gasoline was supplied nationally last week than at any time since July 2011; and overall U.S. gasoline consumption is down. In fact, U.S. oil companies are increasingly exporting oil and gasoline produced here out of the United States to furnish other markets. Meanwhile, globally, crude oil production is up from this time last year as global consumption slumps. Manipulation, not supply, is the problem.

“Increased oil production, the release of oil from the Strategic Petroleum Reserve, and building more gasoline refineries will not affect gasoline prices. Instead, increased regulation, oversight, and enforcement of how gasoline prices are set at the pump and, even more importantly, energy futures markets, are the best tools for affecting price.

“Gasoline prices should be high and probably much higher than they currently are to account for the externalities of oil and gasoline usage. But rather than put this money into the already overstuffed pockets of Big Oil, governments should capture it to invest in meaningful alternatives to make us far less dependent on our cars and provide a massive jobs program while they’re at it by investing in increased, more affordable, and more convenient public transportation.”

The Risks of Drilling in Alaska’s Arctic Ocean

The Center for American Progress just released a new short documentary about the risks of drilling for oil in Alaska's Arctic Ocean. Take a look.

 

Learn more about the documentary here, and about moving Beyond Oil here.

Secret Pentagon Docs Reveal Pre-War Plans to Get Big Oil into Iraq

Bloomberg reports:

“Iraq’s crude production overtook Iran’s last month for the first time in more than two decades… The rising rate of Iraqi production comes as foreign investors such as ExxonMobil Corp. and BP are developing new fields and reworking older deposits.”

GREG MUTTITT, dlee at thenewpress.com
Currently touring the U.S., Muttitt (based in London) is author of the just-released Fuel on the Fire: Oil and Politics in Occupied Iraq. He said today: “Government officials meeting in the Pentagon before the Iraq war planned to use the U.S. occupation to open the country to Big Oil. The documents, marked SECRET/NOFORN, were obtained under the Freedom of Information Act and reveal for the first time the role of the Energy Infrastructure Planning Group, which was established in 2002 by Undersecretary of Defense for Policy Douglas Feith to plan how to run the Iraqi oil industry under the Coalition Provisional Authority.

“In a November 2002 presentation to the Deputies Committee of the National Security Council, EIPG proposed not to repair war damage to oil infrastructure, as doing so ‘could discourage private sector involvement” in rebuilding the industry. That proposal however was rejected, in order to ‘minimize disruptions and promote confidence and stability in world markets’ and to maximize revenues to finance the administration of Iraq.

“In January 2003, EIPG instead proposed a new strategy under which initial repairs — carried out by Halliburton subsidiary Kellogg, Brown & Root — would be followed by long-term contracts with multinational companies to expand Iraqi oil production to five million barrels per day, awarded by the U.S. occupation authority. Although noting that many believed such decisions should be left to a future Iraqi government, EIPG argued that this expansion held advantages including putting ‘long-term downward pressure on [the oil] price’ and forcing ‘questions about Iraq’s future relations with OPEC.’ With private companies operating in Iraq since 2010, those questions have already begun to surface: last month analysts noted that Iraq’s rising production could constrain OPEC’s ability to influence oil prices.

“At the same time as making these proposals, EIPG recommended the government state publicly that ‘We will act, through our administration, so as not to prejudice Iraq’s future decisions regarding its oil development policies; its relations with international organizations; [or] the future ownership structure of its oil industry’ — a public position directly contrary to the substantive policy it proposed.

“These documents provide conclusive proof that control of Iraq oil was a critical consideration at the highest levels of the U.S. government while it was planning the Iraq war. There was little regard for the welfare of Iraqis, but the welfare of companies like ExxonMobil was central to the administration’s thinking. It is particularly troubling that the EIPG recommended the government mislead the public on its oil plans.

“The British government repeatedly met BP and Shell in late 2002, to discuss how to help them achieve their aims in post-Saddam Iraq. BP said it was ‘desperate to get in there;’ the Trade Minister said she believed that if Britain participated in the war its companies should get a share of the spoils. The U.S. government in 2006 hired a lawyer to draft a new Iraqi law to reverse the country’s oil nationalization of the 1970s. Getting this oil law passed became the Bush administration’s top priority in 2007, and was closely tied to the ‘surge’ strategy. After BP won a contract to run Iraq’s largest oilfield in 2009, following an apparently transparent process, its terms were renegotiated in secret, such that the Iraqi government would take the major risks and BP’s profits be guaranteed. In spite of all these pressures, Iraqi civil society groups achieved surprising successes in thwarting the U.S. oil plans through popular campaigns, unreported in the West.”

Muttitt was interviewed Monday on Democracy Now.