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Texas Facing Massive Well Cleanup Costs After Oil Bust

           

Pump jacks sit idle on a South Texas ranch near Bigfoot. Deserted drilling wells are the relics of every oil bust, and Texas is pitted with more than any other place in the U.S.  Eric Gay/AP

dallasnews.com - by Chris Siron - The Associated Press - by Paul J. Weber - June 19, 2016

The worst oil bust since the 1980s is putting Texas and other oil producing states on the hook for thousands of newly abandoned drilling sites at a time when they have little money to plug wells and seal off environmental hazards.

In Texas alone, the roughly $165 million price tag of plugging nearly 10,000 abandoned wells is double the entire budget of the agency that regulates the industry.

The state's regulators want taxpayers to cover more of the clean-up, supplementing industry payments.

As U.S. rig counts plunge to historic lows, and with at least 60 oil producers declaring bankruptcy since 2014, energy-producing states are confronting holes in their budgets and potentially leaking ones in the ground.

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Regulators Fear $1 Billion Coal Cleanup Bill

           

An idled West Virginia coal facility. Officials fear bankrupt coal companies are not setting aside enough to clean up Appalachia’s polluted rivers and mountains. Credit Luke Sharrett for The New York Times

nytimes.com - by Michael Corkery - June 6, 2016

Regulators are wrangling with bankrupt coal companies to set aside enough money to clean up Appalachia’s polluted rivers and mountains so that taxpayers are not stuck with the $1 billion bill.

The regulators worry that coal companies will use the bankruptcy courts to pay off their debts to banks and hedge funds, while leaving behind some of their environmental cleanup obligations.

The industry asserts that its cleanup plans — which include turning defunct mines back into countryside — are comprehensive and well funded. But some officials say those plans could prove unrealistic and falter as demand for coal remains weak.

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Climate Change Will Wipe $2.5tn Off Global Financial Assets: Study

           

The economic impact of climate change could play havoc with the world economy, according to an LSE study. Photograph: Carlo Allegri/Reuters

CLICK HERE - STUDY - ‘Climate value at risk’ of global financial assets

Losses could soar to $24tn and wreck the global economy in worst case scenario, first economic modelling estimate suggests

theguardian.com - by Damian Carrington - April 4, 2016

Climate change could cut the value of the world’s financial assets by $2.5tn (£1.7tn), according to the first estimate from economic modelling.

In the worst case scenarios, often used by regulators to check the financial health of companies and economies, the losses could soar to $24tn, or 17% of the world’s assets, and wreck the global economy.

The research also showed the financial sense in taking action to keep climate change under the 2C danger limit agreed by the world’s nations. In this scenario, the value of financial assets would fall by $315bn less, even when the costs of cutting emissions are included.

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27,000 Abandoned Oil and Gas Wells in Gulf of Mexico Ignored by Government, Industry

An older nearshore wellhead is shown off the coast of California in this undated photo. In state waters, California has resealed scores of its abandoned wells since the 1980s, but in federal waters, the official policy is out-of-sight, out-of-mind. Neither industry nor government checks for leaks at the more than 27,000 oil and gas wells abandoned in the Gulf of Mexico since the late 1940s. Abandoned wells are known sometimes to fail both on land and offshore. It happens so often that a technical term has been coined for the repair job: "re-abandonment."  Photo: California State Lands Commission / The Associated Press

nola.com - Associated Press - July 7, 2010

More than 27,000 abandoned oil and gas wells lurk in the hard rock beneath the Gulf of Mexico, an environmental minefield that has been ignored for decades. No one -- not industry, not government -- is checking to see if they are leaking, an Associated Press investigation shows.

The oldest of these wells were abandoned in the late 1940s, raising the prospect that many deteriorating sealing jobs are already failing.

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Transparency an Issue in Texas Flooding Consequences

           

Photo: El Paso Times - (CLICK HERE to view additional photos)

texashillcountry.com - by Spring Sault - May 30, 2016

The existence of a number of aerial photos showing flood-related oil spills on a state-run website was revealed in an El Paso Times story by Marty Schladen last month, followed shortly by state officials ordering the photos removed from the website operated by the University of Texas at Austin.

Until the Times’ story was published, the photos weren’t common knowledge to the public and identified possible environmental damage caused by flooding in oil drilling areas, including fracking sites. . . .

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Texas Flooding Overflows Oil Wells, Fracking Sites

           

Photo: El Paso Times - (CLICK HERE to view additional photos)

texashillcountry.com - by THC Staff - May 6, 2016

The recent Texas flooding has overwhelmed oil wells and fracking sites, overflowing crude oil and chemicals into rivers statewide.

With the onset of storms finally subsiding, state officials have begun to assess the entirety of the damage caused by the flooding that occurred across the state.

As KIII reported, “state emergency management officials have taken dozens of photographs that show sheens and plumes spreading from tipped tanks and flooded production sites” of the Sabine River flood on the Louisiana-Texas border.

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CLICK HERE - kiiitv.com - Flooding Flushes Oil, Chemicals into Texas Rivers

 

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A Chemical Reaction Revolutionized Farming 100 Years Ago. Now It Needs to Go

Anhydrous ammonia plant, ca. 1954. ROBERT W. KELLEY/TIME & LIFE PICTURES/GETTY IMAGES

Image: Anhydrous ammonia plant, ca. 1954. ROBERT W. KELLEY/TIME & LIFE PICTURES/GETTY IMAGES

wired.com - Sarah Zhang - May 16th 2016

Of all the elements that make up Earth’s atmosphere, nitrogen is by far the most abundant. It is also one of the most inert. Nothing happens when you breathe it in, swallow it, or let it suffuse your skin.

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Global Warming Cited as Wildfires Increase in Fragile Boreal Forest

The boreal region stretches across the Northern Hemisphere through Alaska, Canada, Scandinavia and Russia. Boreal forests are increasingly affected by fire and climate change.

Sources: Natural Resources Canada; Alberta Agriculture and Forestry; U.S. Geological Survey; University of Maryland - By The New York Times

Scientists say the near-destruction of Fort McMurray last week by a wildfire is the latest indication that the vital boreal forest is at risk from climate change.

nytimes.com - by JUSTIN GILLIS and HENRY FOUNTAIN - May 10, 2016

Scientists have been warning for decades that climate change is a threat to the immense tracts of forest that ring the Northern Hemisphere, with rising temperatures, drying trees and earlier melting of snow contributing to a growing number of wildfires.

The near-destruction of a Canadian city last week by a fire that sent almost 90,000 people fleeing for their lives is grim proof that the threat to these vast stands of spruce and other resinous trees, collectively known as the boreal forest, is real. And scientists say a large-scale loss of the forest could have profound consequences for efforts to limit the damage from climate change.

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U.S. oil industry bankruptcy wave nears size of telecom bust

Dead sunflowers stand in a field near dormant oil drilling rigs which have been stacked in Dickinson, North Dakota January 21, 2016. Reuters/Andrew Cullen

Image: Dead sunflowers stand in a field near dormant oil drilling rigs which have been stacked in Dickinson, North Dakota January 21, 2016. Reuters/Andrew Cullen

reuters.com - May 4th 2016 - Ernest Scheyder and Terry Wade

The rout in crude prices is snowballing into one of the biggest avalanches in the history of corporate America, with 59 oil and gas companies now bankrupt after this week's filings for creditor protection by Midstates Petroleum and Ultra Petroleum.

The number of U.S. energy bankruptcies is closing in on the staggering 68 filings seen during the depths of the telecom bust of 2002 and 2003, according to Reuters data, the law firm Haynes & Boone and bankruptcydata.com.

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Why Solar and Wind Are Thriving Despite Cheap Fossil Fuels

          

Wind turbines provide energy for the residents of Samso Island, a Danish island that gets all its power from renewable sources. PHOTOGRAPH BY ANDREW HENDERSON, NATIONAL GEOGRAPHIC CREATIVE

Low oil prices are rattling stock markets, but investors remain bullish on solar, wind, and other clean energy. Here are three reasons why.

nationalgeographic.com - by Wendy Koch - January 22, 2016

The prolonged plunge in fossil fuel prices is rippling across the globe. Yet it’s barely put a dent in the booming market for clean energy, heralding perhaps a new era for wind and solar.

Oil prices of less than $30 a barrel—the lowest in 12 years—have shaken stock markets and ravaged the budgets of major producers such as Russia and Saudi Arabia. Along with falling gas prices, they’ve slashed the profits of fossil fuel companies, which are delaying dozens of billion-dollar projects and laying off thousands of workers. . . .

. . . But solar, wind, and other clean energy? They’re expanding.

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