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North Dakota Oil Boom Not What It Seems,


Business  (tags: energy, environment, nature, pollution, science, abuse, americans, business, consumers, corporate, cover-up, dishonesty, economy, ethics, finance, investments, investors, law, lies, marketing, money, oil, society, usa, energy )

JL
- 313 days ago - citizenvox.org
It would be one thing if the oil boom was producing affordable, clean & safe energy. It's not and it can't. The more money we spend to build oil and natural gas infrastructure in North Dakota is less money we have to invest in the true technological rev



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JL A. (274)
Friday August 30, 2013, 5:25 pm

August26
North Dakota Oil Boom Not What It Seems

By: Tyson Slocum

A version of this blog also appears on NationalJournal’s Energy Experts page.

Last month I appeared on MSNBC’s All In with Chris Hayes with former North Dakota Senator Byron Dorgan talking about the Bakken fracking boom. Today the state produces 810,000 barrels of oil a day, up from 80,000 a decade ago.

But because oil is a globally priced commodity driven more by Chinese demand than domestic production, the record oil production has failed to deliver cheaper gasoline to motorists. Oil production efficiencies and technology improvements featured in fracking aren’t translated into lower prices because consumers are charged for the price of the commodity, and Wall Street traders’ strategies price oil with irrelevance for efficiency. As a result, drilling and fracking technological efficiencies are pocketed by oil drillers, as gasoline and oil prices have actually increased for consumers during the oil boom. Contrast this phenomenon with the iPhone, microchips or solar panels, where technology efficiency gains are translated into ever-lower prices for consumers (and where renewable energy features zero fuel commodity costs). The equity prices of fracking companies benefit from the fracking boom—consumers don’t.

Many reporters credit fracking for North Dakota’s lowest-in-the-nation unemployment rate (3% in July 2013), while failing to mention that the state has always had a low unemployment rate: it was 2.6% in July 2001, 3% in July 1997, and 3.6% in July 1976.

For all of the production efficiencies, there are billions of dollars in wasted infrastructure. Thirty percent of the 850 MMcf/d of natural gas fracked alongside oil in the Bakken is flared—that wasted gas is enough to power the cities of Chicago and DC. You can see the burning fields from outer space. All because the Bakken lacks the pipeline infrastructure to move it. So instead it’s burned, along with greenhouse gas emissions.

Oil pipeline infrastructure is lacking, too. Sixty-nine percent of the Bakken oil is shipped by rail, as nationally 9,500 railcars moved oil in 2008, while 230,000 did in 2012. Warren Buffet’s BNSF railroad shipped 1.3 million barrels in 2008 and 90 million in 2012. And while pipelines have had significant safety problems (I’m thinking Kalamazoo, Yellowstone, Pegasus and San Bruno), the industry proposes $40 billion in additional pipeline investment to move oil—with no guarantee that the additional investment will lower oil or gasoline prices. That’s billions of dollars in misallocated capital that ought to be invested in renewable energy and energy efficiency (remember when North Dakota was the subject of being the next Saudi Arabia, it was in reference to wind, not oil?). We should be moving commuters and people on rail, not oil. Our rail lines are congested moving oil to fuel cars on our cities’ congested streets.

And we’re not sure North Dakota has done safety right. The state has 19 inspectors for nearly 7,000 oil wells, and the increasing number of spills threatens North Dakota’s agricultural production.

It would be one thing if the oil boom was producing affordable, clean and safe energy. It’s not and it can’t. The more money we spend to build oil and natural gas infrastructure in North Dakota is less money we have to invest in the true technological revolution that will actually deliver for consumers: renewables and efficiency.

Tyson Slocum is Director of Public Citizen’s Energy Program.
 

Jonathan Harper (0)
Saturday August 31, 2013, 3:12 am
Noted
 

Earl R. (0)
Saturday August 31, 2013, 4:12 am
Plug your Tesla S, electric car into your household, solar array.
 

Earl R. (0)
Saturday August 31, 2013, 4:20 am
Oil is not priced globally or by Chinese demand. Bakken oil is traded in Cushing, Oklahoma, not China. The financial speculators and oil traders in the IntercontinentalExchange (ICE) in Atlanta control and manipulate the oil price, the oil supply chain and the oil market. BP is the biggest trader in Cushing and a partner in ICE. Google the "$2.5 Trillion Oil Scam - slideshare" and Google "Goldman's, Global Oil Scam." The US is a victim of this scam.
 

Theodore Shayne (56)
Saturday August 31, 2013, 11:05 am
Noted
 

Michael Kirkby (83)
Saturday August 31, 2013, 12:34 pm
Traders all and the only thing that matters is maximum profit.
 

Birgit W. (140)
Saturday August 31, 2013, 3:48 pm
Noted.
 

Roger Garin-michaud (61)
Saturday August 31, 2013, 4:06 pm
noted, thanks
 

JL A. (274)
Saturday August 31, 2013, 6:28 pm
You are welcome Roger
 

Winn Adams (187)
Saturday August 31, 2013, 8:36 pm
Thanks
 

JL A. (274)
Saturday August 31, 2013, 8:56 pm
You are welcome Winn
 

Ray M. (0)
Saturday August 31, 2013, 9:05 pm
No doubt they'll be sorry someday when their land and water are in ruins.
 

Jane Williams (165)
Saturday August 31, 2013, 10:19 pm
Noted. Thank you.
 

Jane Williams (165)
Saturday August 31, 2013, 10:19 pm
Noted. Thank you.
 

Ben Oscarsito (351)
Sunday September 1, 2013, 4:04 am
"Dear future generations, please accept our apologies; -We were rolling drunk on oil!"
(Kurt Vonnegut)
 

Helen Porter (41)
Sunday September 1, 2013, 4:22 am
thank you for this
 

Dandelion G. (374)
Sunday September 1, 2013, 6:49 am
But because oil is a globally priced commodity driven more by Chinese demand than domestic production, the record oil production has failed to deliver cheaper gasoline to motorists. Oil production efficiencies and technology improvements featured in fracking aren’t translated into lower prices because consumers are charged for the price of the commodity, and Wall Street traders’ strategies price oil with irrelevance for efficiency.

As a result, drilling and fracking technological efficiencies are pocketed by oil drillers, as gasoline and oil prices have actually increased for consumers during the oil boom.

Contrast this phenomenon with the iPhone, microchips or solar panels, where technology efficiency gains are translated into ever-lower prices for consumers (and where renewable energy features zero fuel commodity costs). The equity prices of fracking companies benefit from the fracking boom—consumers don’t.

I'm afraid by the time the majority of the people realize this, their land will be fracked and of no use, the lies are sold to the general public over and over, drill baby drill and watch the cost of your oil go down, freedom from the those "terrorist" Muslims, and build that pipeline lots of job creation, and whatever other dirty lies or deeds the Corporations can sell onto the public to get what it wants and more money in their pockets.

This keeping the masses at each others throats by warring with other religions, nations, party affiliates, race, or whatever the case may be is a nice distraction to keep the eyes off of the real criminals, rapers, and those who exploit and plunder.
 

JL A. (274)
Sunday September 1, 2013, 7:40 am
You are welcome Jane and Zee.
 

Ravenna C. (20)
Sunday September 1, 2013, 8:05 am
Hmmmmm.....Why am I envisioning a dog chasing its tail?
 

Patricia H. (468)
Sunday September 1, 2013, 8:22 am
noted
 

Malgorzata Zmuda (173)
Sunday September 1, 2013, 9:20 am
dzięki
 

JL A. (274)
Sunday September 1, 2013, 9:22 am
You are welcome Malgorzata.
 

Marija Mohoric (50)
Sunday September 1, 2013, 1:05 pm
thank you JL A
 

JL A. (274)
Sunday September 1, 2013, 1:32 pm
You are welcome Marija.
 

Debra Tate (17)
Sunday September 1, 2013, 4:22 pm
Noted
 
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