Industrialized Cyclist Notepad


30%

Rampant waste and environmental degradation have been part of the Bakken boom. The state doesn’t care about that, but it wants its taxes.

Helms estimates that about 30% of the gas produced in the state is flared, since development of takeaway infrastructure has not matched the pace of drilling.

Producers are currently allowed to flare gas for a year without paying royalties. The new bill would extend that tax-exempt period for two more years if an operator can collect at least 75% of the produced gas.

via N. Dakota tax bills pique industry interest – Upstreamonline.com.



Fracking is old technology

America’s latest oil rush was spurred by new technology that has made drilling faster, cheaper and better at unleashing oil from rock formations,…

That is false. Fracking (the oil guys always called it ‘fracing’) is old technology. Many decades old. But it’s an expensive way to get oil, relatively speaking. So it hasn’t been prudent to frack/frac for shale oil until the overall situation reached a certain point where the price of a barrel of crude was likely to remain above the cost of extraction. In other words, the fracking boom in the U.S. does not signal the death of Peak Oil. It is in fact part and parcel of a new era wherein cheap oil is a memory, a much more expensive era in energy. Perhaps that is why the misinformation campaign has been in overdrive.

via Asjylyn Loder, “American Oil Growing Most Since First Well Signals Independence,” Bloomberg..

Spreading disinformation through the media is even older technology.



Livestock in fracking regions

After drilling began just over the property line of Jacki Schilke’s ranch in the northwestern corner of North Dakota, in the heart of the state’s booming Bakken Shale, cattle began limping, with swollen legs and infections. Cows quit producing milk for their calves, they lost from 60 to 80 pounds in a week and their tails mysteriously dropped off. Eventually, five animals died, according to Schilke.

Ambient air testing by a certified environmental consultant detected elevated levels of benzene, methane, chloroform, butane, propane, toluene and xylene – and well testing revealed high levels of sulfates, chromium, chloride and strontium. Schilke said she moved her herd upwind and upstream from the nearest drill pad.

via Livestock falling ill in fracking regions | Center for Investigative Reporting.

From February:

The Pennsylvania farmers I spoke with have lost cows, calves, a horse, a couple dozen chickens. Many of the animals succumb in the same way: seizure-like symptoms, gasping for breath and a quick wasting away. A Rottweiler and a Dalmatian also fell ill and died.

via http://www.bloomberg.com/news/2012-02-08/fracking-s-toll-on-pets-livestock-chills-pennsylvania-farmers-commentary.html

Gives new meaning to the term ‘tail risk.’



Montana Crude Oil Production

Appears to have peaked. See, the Bakken formation is in Montana and North Dakota.

montanaoilproduction
click to enlarge

via EIA: http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=mcrfpmt2&f=m



Bakken Development by County

via a comment by Rune Likvern at the Oil Drum: http://www.theoildrum.com/node/9648#comment-931584


click to enlarge

looks a little peaky…probably just a temporary hitch… don’t be alarmed…

Note: the Bakken shale is in Montana as well as North Dakota.



More confusion

Louise Basinese, Wall Street Daily. The confusion about refinery product exports is getting brutal.

http://www.wallstreetdaily.com/2011/12/16/peak-oil/



Historical perspective on the Bakken Boom

This is an excellent article by Derik Andreoli, looking at the historical big picture of American extraction booms.

The Oil Drum | The Bakken Boom – A Modern-Day Gold Rush.




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