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Global oil refineries map by FracTracker - Ted Auch

Tracking Global Oil Refineries and their Emissions

Potential Conflict Hotspots and Global Productivity Choke Points

Today, FracTracker is releasing a complete inventory of all 536 global oil refineries, along with estimates of daily capacity, CO2 emissions per year, and various products. These data have also been visualized in the map below.

Total productivity from these refineries amounts to 79,372,612 barrels per day (BPD) of oil worldwide, according to the data we were able to compile. However, based on the International Energy Agency, global production is currently around 96 million BPD, which means that our capacity estimates are more indicative of conditions between 2002 and 2003 according to BP’s World Oil Production estimates. We estimate this disparity is a result of countries’ reluctance to share individual refinery values or rates of change due to national security concerns or related strategic reasons.

These refineries are emitting roughly 260-283 billion metric tons (BMT) of CO2[1], 1.2-1.3 BMT of methane and 46-51 million metric tons of nitrous oxide (N2O) into the atmosphere each year. The latter two compounds have climate change potentials equivalent to 28.2-30.7 BMT and 14.1-15.3 BMT CO2, respectively.

66 million

Assuming the planet’s 7.6 billion people emit 4.9-5.0 metric tons per capita of CO2 per year, emissions from these 536 refineries amounts to the CO2 emissions of 52-57 million people. If you include the facilities’ methane and N2O emissions, this figure rises to 61-66 million people equivalents every year, essentially the populations of the United Kingdom or France.

Map of global oil refineries

View map fullscreen | How FracTracker maps work | View static map | Download map data

BP’s data indicate that the amount of oil being refined globally is increasing by 923,000 BPD per year (See Figure 1). This increase is primarily due to improved productivity from existing refineries. For example, BP’s own Whiting, IN refinery noted a “$4-billion revamp… to boost its intake of Canadian crude oil from 85,000 bpd to 350,000 bpd.”

Figure 1. Global Oil Production 1965 to 2016 (barrels per day)

Figure 1. Global Oil Production, 1965 to 2016 (barrels per day) – Data courtesy of British Petroleum (BP) World Oil Production estimates.

 

Potential Hotspots and Chokepoints

Across the globe, countries and companies are beginning to make bold predictions about their ability to refine oil.

Nigeria, for example, recently claimed they would be increasing oil refining capacity by 13% from 2.4 to 2.7 million BPD. Currently, however, our data indicate Nigeria is only producing a fraction of this headline number (i.e., 445,000 BPD). The country’s estimates seem to be more indicative of conditions in Nigeria in the late 1960s when oil was first discovered in the Niger Delta. Learn more.

Is investing in – and doubling down on – oil refining capacity a smart idea for Nigeria’s people and economy, however? At this point, the country’s population is 3.5 times greater than it was in the 60’s and is growing at a remarkable rate of 2.7% per year. Yet, Nigeria’s status as one of the preeminent “Petro States” has done very little for the majority of its population – The oil industry and the Niger Delta have become synonymous with increased infant mortality and rampant oil spills.

Sadly, the probability that the situation will improve in a warming – and more politically volatile – world is not very likely. 

Such a dependency on oil price has been coupled to political instability in Nigeria, prompting some to question whether the discovery of oil was a cure or a curse given that the country depends on oil prices – and associated volatility – to balance its budget: Of all the Organization of Petroleum Exporting Countries (OPEC) countries, Nigeria is near the top of the list when it comes to the price of oil the country needs to balance its budget – Deutsche Bank and IMF estimate $123 per barrel as their breaking point. This is a valuation that oil has only exceeded or approached 4.4% of the time since 1987 (See Figure 2).

Former Central Bank of Nigeria Governor, Charles Soludo, once put this reliance in context:

… For too long, we have lived with borrowed robes, and I think for the next generation, for the 400 million Nigerians expected in this country by the year 2050, oil cannot be the way forward for the future.

Other regions are also at risk from the oil market’s power and volatility. In Libya, for example, the Ras Lanuf oil refinery (with a capacity of 220,000 BPD) and the country’s primary oil export terminal in Brega were the focal point of the Libyan civil war in 2011. Not coincidentally, Libya also happens to be the Petro State that needs the highest per-barrel price for oil to balance its budget (See Figure 2). Muammar Gaddafi and the opposition, National Transitional Council, jostled for control of this pivotal choke point in the Africa-to-Europe hydrocarbon supply chain.

The fact that refineries like these – and others in similarly volatile regions of the Middle East – produce an impressive 10% (7,166,900 BPD) of global demand speaks to the fragility of these Hydrocarbon Industrial Complex focal points, as well as the planet’s fragile dependence on fossil fuels going forward.

Weekly Spot Price of Brent Sweet Crude ($ Per Barrel) and estimates of the prices OPEC/Petro States need to balance their budgets.

Figure 2. Weekly Spot Price of Brent Sweet Crude ($ Per Barrel) and estimates of the prices OPEC/Petro States need to balance their budgets.

 

Dividing Neighbors

These components of the fossil fuel industry, and their associated feedstocks and pipelines, will continue to divide neighbors and countries as political disenfranchisement and inequality grow, the climate continues to change, and resource limitations put increasing stress on food security and watershed resiliency worldwide.

Not surprisingly, every one of these factors places more strain on countries and weakens their ability to govern responsibly.

Thus, many observers speculate that these factors are converging to create a kind of perfect storm that forces OPEC governments and their corporate partners to lean even more heavily on their respective militaries and for-profit private military contractors (PMCs) to prevent social unrest while insuring supply chain stability and shareholder return.[2,3] The increased reliance on PMCs to provide domestic security for energy infrastructure is growing and evolving to the point where in some countries it may be hard to determine where a state’s sovereignty ends and a PMC’s dominance begins – Erik Prince’s activities in the Middle East and Africa on China’s behalf and his recent aspirations for Afghanistan are a case in point.

To paraphrase Mark Twain, whiskey is for drinking and hydrocarbons are for fighting over. 

The international and regional unaccountability of PMCs has added a layer of complexity to this conversation about energy security and independence. Countries such as Saudi Arabia and Venezuela provide examples of how fragile political stability is, and more importantly how dependent this stability is on oil refinery production and what OPEC is calling ‘New Optimism.’ To be sure, PMCs are playing an increasing role in political (in)stability and energy production and transport. Since knowledge and transparency are essential for peaceful resolutions, we will continue to map and chronicle the intersections of geopolitics, energy production and transport, social justice, and climate change.


By Ted Auch, Great Lakes Program Coordinator, FracTracker Alliance; and Bryan Stinchfield, Associate Professor of Organization Studies, Department Chair of Business, Organizations & Society, Franklin & Marshall College


Relevant Data

Footnotes and References

  1. Assuming a tons of CO2 to barrels of oil per day ratio of 8.99 to 9.78 tons of CO2 per barrel of oil based on an analysis we’ve conducted of 146 refineries in the United States.
  2. B. Stinchfield.  2017.  “The Creeping Privatization of America’s Armed Forces”.  Newsweek, May 28th, 2017, New York, NY.
  3. R. Gray.  “Erik Prince’s Plan to Privatize the War in Afghanistan”.  The Atlantic, August 18th, 2017, New York, NY.
Pipeline build out - Photo by Sierra Shamer - Oil and gas pipeline

Infrastructural Challenges: The Direction of Drilling, Pipelines, and Politics in Pennsylvania

Sierra Shamer, Visiting Scholar, FracTracker Alliance

While neighboring states New York and Maryland work to regulate the natural gas industry, Pennsylvania makes way for a pipeline build-out and continued unconventional oil and gas drilling. The industry, legislature, and state agencies claim that continued natural gas development is necessary, can be carried out safely, and will provide money, jobs, and energy to Pennsylvania. However, the price is increasingly evident, and the realization of these claims is yet to come.

PA residents are quickly learning that pipelines come with a cost; their permitting, construction, and supporting facilities infringe on private property rights, cause water and air pollution, and threaten public safety. On Friday April 29th in Westmoreland County, for example, Spectra Energy’s Texas Eastern 30″ gas pipeline exploded, severely burning one man, destroying his home, and damaging homes nearby. The local fire chief recounted his awe at the explosion. For him, it was “… like you were looking down into hell.” These costs prompt communities to consider whether the advertised benefits of pipelines will actually outweigh the costs. Active grassroots resistance has emerged throughout the state, and as it grows, it is consistently met with industry aggression and state repression.

This article provides an overview of the pipeline build-out in Pennsylvania, the political and economic environment promoting it, growing community activism, and, how the industry and state respond. An interactive map of existing and proposed pipelines in PA is featured at the end of the article.

The Shale in Pennsylvania

Pipeline build-out: Extent of the Utica (brown) and Marcellus (orange) shale formations.

Extent of the Utica (brown) and Marcellus (orange) shale formations. Click to expand.

The existing interstate pipeline network moves domestic and imported oil and gas to consumers and markets within North America. These pipelines extend from regions of conventional drilling to domestic and foreign energy markets. The recent development and expansion of unconventional drilling provides access to energy reservoirs that could not be extracted before. Within the past five years, the US overtook Russia to become the largest producer of natural gas in the world.

The Marcellus and Utica shale formations exist below the Appalachian Mountains in the northeast U.S. and into Canada. The Marcellus lies beneath Pennsylvania, Virginia, Maryland, West Virginia, Ohio, and New York. The Marcellus is now the largest region of natural gas production in the United States. Geologists estimate that 4-8,000 ft. underground, over 600 trillion cubic ft. of natural gas is accessible. The Utica formation lies underneath the Marcellus, extending north into Ontario and New York, and south into Virginia, Kentucky, and Tennessee. Geologists estimate over 38 trillion cubic ft. of natural gas is accessible – in some locations over 10,000 feet underground.

Extraction in Pennsylvania

Almost 10,000 unconventional wells in Pennsylvania produce millions of cubic feet of gas each day. This rapid extraction flooded the market, causing natural gas prices to drop dramatically. Marcellus production also outpaced the capacity of the current pipeline network. The location and flow direction of existing pipelines is not ideal for transporting Marcellus gas to markets with higher demand. Additionally, well productivity drops 70% within the first year, so new wells must be drilled to keep the gas flowing. However, the low price of gas reduced revenues, and the cost of drilling new wells remains high. Combined, these factors have paused drilling activity throughout the state. In order to overcome this, gas companies are proposing construction of new pipelines and expansions of existing ones, resulting in the current pipeline build-out.

The Economics of Pipelines

Obama discussing LNG

The dominant narrative, promoted by industry and state, weaves a story of economic prosperity gained by drilling the Marcellus, eclipsing concerns of pipeline necessity and safety. Each pipeline project claims an economic impact in dollar amounts and jobs. Williams claims that their proposed Atlantic Sunrise pipeline will “increase economic activity by $1.6 billion in project regions” and create job opportunities. Sunoco Logistics claims that the Mariner East pipeline will “add $4.2 billion to Pennsylvania’s economy, supporting more than 30,000 jobs during the construction period and … 300-400 permanent jobs.” Often, the specifics of money and jobs are not explained, and when construction begins, communities are invaded by out of state workers and left with little economic benefit.

Response to this buildout arises at all levels. Support pours down from federal and state government while resistance pushes up from the grassroots. The EPA and Obama administration work to shut down coal and promote natural gas, claiming it’s a “bridge fuel” to renewable energy. Pennsylvania’s legislature and Dept. of Environmental Protection (DEP) have battled over drilling regulations, and the push for pipelines presents a different set of challenges. While some consider the build-out necessary to maintain the natural gas industry in PA, others, such as Phil Rinaldi, envision ways in which pipelines can bring money to the state.

Philadelphia Energy Hub

Aware that interstate pipelines carry Pennsylvania shale to out-of-state markets, Phil Rinaldi, the CEO of Philadelphia Energy Solutions (PES) views the shale boom as an opportunity to maintain resource and revenue in state. In 2013 he established the Greater Philadelphia Energy Action Team (GPEAT), a group of over 80 industry, manufacturing, labor, and government stakeholders. Their objective is to capitalize on shale by promoting pipeline construction and bringing energy-intensive manufacturing to the Greater Philadelphia area. In March of this year, the GPEAT released a report titled, “A Pipeline for Growth: Fueling Economic Revitalization with Marcellus and Utica Shale Gas.” This reports details strategies to hasten the transformation of Philly into the “energy hub” of the East by inviting chemical manufacturing industries, and supporting pipeline projects to Philadelphia.

At Ground Level

2016: Columbia 26" pipeline construction near a home in Northern Maryland (Photo: Sierra Shamer)

2016: Columbia 26″ pipeline construction near a home in Northern Maryland (Photo: Sierra Shamer)

At a ground level, impacted communities, public health professionals, and environmental organizations face a ravenous industry. Unaccountable for property takings, fair compensation, and pollution, it as an industry that disregards public health and ecosystems within the shalefields. As a result, grassroots and advocacy groups organize and mobilize throughout Pennsylvania to amplify the voices of impacted residents and communities and to hold the industry and government accountable to the people.

Although pipelines bring large revenues for companies, industry, and the state, the story on the ground is different. New pipelines are either constructed on existing land easements, or new ones must be purchased from landowners along the proposed right-of-way. Pipeline operators have one goal: to find the most direct and least complicated route from supply to demand. While this lower their bottom line, new pipeline routes often disregard nearness to homes, schools, and other populated areas, and cause significant damage to farmland and ecosystems.

Frontline Communities

Pipeline companies often have the power of eminent domain, the ability to take possession of land in court if the property owner refuses a contract. Negotiating fair agreements requires landowners to hire their own appraiser and lawyer, which is not an option for everyone. Unlike drilling wells, landowners do not receive royalties for the pressurized gas flowing underneath their property, facing instead declines in property values and an inability to sell their home. As a result, landowners are left undercompensated, their land forcibly taken away in an unjust process.

Landowners along the right-of-way are the most immediately impacted, but neighbors and communities are affected as well. Each pipeline has a “potential impact radius” or “hazard zone,” the area within which an explosion causes immediate destruction. Residents within this distance experience a decrease in their property values, but currently have no legal recourse for compensation. Pipelines also require numerous compressor stations, facilities that operate 24-7 to maintain the pressure of the gas within the pipeline. Compressor stations are industrial, air polluting facilities that release greenhouse gases, neurotoxins, cancer causing agents, and other pollutants that negatively impact human health and the environment. Residents living near compressor stations experience various respiratory, sinus, and nervous system health issues. These are caused by both everyday operation and periodical gas blowdowns – facility operations when large amounts of methane and other chemicals are released directly into the air for station maintenance or emergencies.

Pipeline Regulation

FERC holds Public Meetings for the Atlantic Sunrise Pipeline (Photo: Justin Engle/The Daily Item)

FERC holds Public Meetings for the Atlantic Sunrise Pipeline (Photo: Justin Engle/The Daily Item)

In Pennsylvania, no single agency is responsible for permitting, monitoring, or regulating pipelines. The Federal Energy Regulatory Commission (FERC) permits interstate pipelines, those that cross state boundaries or carry product that does. Pipelines within the state are under the jurisdiction of the Public Utility Commission (PUC), the DEP, and/or the Dept. of Conservation and Natural Resources (DCNR).

Typically, the PUC is responsible for pipelines that provide directly to consumers. However, in 2011 Act 127 gave the PUC authority to permit and inspect gathering lines, those that move gas from well pads to larger transmission pipelines. All gathering lines have national safety standards except Class 1, those with no more than ten buildings within 220 yards. The PUC maintains a registry of the location, size, and length of gathering lines, but is only includes length for Class 1.  Over 12,000 miles of Class 1 pipelines currently exist in PA, a number expected to quadruple by 2030.

Pipeline Infrastructure Task Force

The complex regulation and unprecedented increase in proposals prompted Governor Wolf to create the Pipeline Infrastructure Task Force (PITF) in 2015. Headed by former Secretary of the DEP, John Quigley, the Task Force included regulatory agencies, industry representatives, and government officials. Their mission: to “engage stakeholders in a collaborative process to achieve a world-class pipeline infrastructure system” and to develop “policies, guidelines, and tools to assist in pipeline development.” The DEP offered live stream of meetings, provided public information, and opportunity for public input in an attempt to be transparent.

Task Force meetings eventually resulted in a final report, outlining challenges and providing suggestions for pipeline construction. First, the Task Force recommended an increase meaningful public participation and the development of long term maintenance plans to ensure safety. Second, they suggested reducing environmental impact by improving pipeline siting and construction and maximizing efficient permitting. Finally, they recommended enhancing the workforce and economic development from pipeline projects.

The Task Force openly acknowledged problems of the pipeline build-out, stating that “permits are not reviewed for the cumulative and long term impacts at a landscape level…they do not necessarily avoid sensitive lands, habitats, and natural features, nor are the impacts to natural and cultural resources, landowners, and communities…always minimized or mitigated.” Despite this, the administration and the Task Force maintain that pipelines can be built responsibly.

Community Opposition and Criticism

2016: Landowners and supporters protest the Constitution Pipeline in Northeast PA. (Photo: DC Media Group)

2016: Landowners and supporters protest the Constitution Pipeline in Northeast PA. (Photo: DC Media Group)

Challenges to the pipeline build-out exist in many forms. Landowners challenge the bullying, harassment, and eminent domain condemnations of pipeline companies. Communities criticize the acceptance of industry funding and pipelines by local representatives. Additionally, grassroots groups and environmental non-profits challenge the minimal regulation, permitting process, and lack of public participation allowed by the DEP, and the FERC “rubber stamp” permitting process.

Awareness and opposition grow with each proposal, condemnation, rupture, and explosion. This rapid construction is compromising pipeline quality and public safety, according to a report conducted by the Pipeline Safety Trust. They found that pipelines built after 2010 had higher rates of failure than those in decades past. Whistleblowers who worked for Spectra Energy have attested to the neglect of proper inspection in the haste to construct pipelines. Spectra’s Texas Eastern pipeline, completed in 1981, was built in a decade when pipelines failed at one-sixth the rate they do today. However, their preliminary investigation indicates that the explosion in Salem Township was likely the result of corrosion due to a “possible flaw in the coating material applied to the weld joints.”

The FERC is a regular target of criticism. Funded through fees received by the companies and industries it oversees, FERC rarely denies permits for pipelines. The Delaware Riverkeeper Network has filed a lawsuit against the FERC challenging the constitutionality of its decision-making.

The DEP’s dedication to protecting Pennsylvania’s environment from the natural gas industry at large is continuously questioned due to its infrastructure permitting, negligent response to water contamination complaints, and unwillingness to hold companies accountable. The DEP’s poor record on drilling regulation continues with regard to the pipeline build-out.

Pipeline Infrastructure Task Force

The Task Force is criticized for its overwhelming industry influence and lack of public inclusion. Of the 48 Infrastructure Task Force members, 56% are tied to the oil and gas industry. Specifically, 92% of the non-governmental members have industry ties. In fact, potential opposition to the build-out was intentionally absent. PA resident and documentary filmmaker Scott Cannon of the Gas Drilling Awareness Coalition (GDAC) was invited to the PITF, only to receive a letter rescinding his invitation a few days later. Additionally, concerned residents were allowed 2 minutes to make a statement, a limit strictly enforced by Secretary Quigley. While affected landowners recounted their fight for their livelihoods, the roundtable of apathetic Task Force members stared blankly. These problems resulted in escalating activist presence increasing from comments and protests outside the DEP building, to meeting disruptions and arrests.

Residents and activists weren’t the only ones unhappy with the PIFT. Cindy Ivey, representative for Williams, and Sarah Battisti, with SouthWest Energy, spoke of their frustrations. The fact that interstate pipeline projects are regulated by federal agencies, and state level organizations have a minor role caused tension in the group. According to Ivey, these issues are “hard things to try to explain gracefully.” Additionally, Battisti added that the 184 recommendations in the report wouldn’t “impact any of us in the near future.”

Despite recommendations of the Task Force, the DEP continues to issue permits that neglect cumulative impacts and complete environmental review. Unlike New York, which denied the 401 Water Quality certificate and prevented the construction of Constitution pipeline, the PA DEP granted the 401 certificate to the Atlantic Sunrise pipeline. As a result, it is under appeal by environmental groups, who argue that it violates the Clean Water Act and the Pennsylvania Code.

PA’s Political Climate

Fracking and the Revolving Door in Pennsylvania Regulations

Unfortunately, meaningful updates to oil and gas regulations in Pennsylvania are consistently challenged. Although Act 13 passed in 2012, critical components were appealed repeatedly, specifically the issue of local zoning authority of oil and gas infrastructure. Lawmakers who oppose any restriction on the industry dominate the current legislature. Recently, the House panel voted a second time to block increased DEP oil and gas regulations, in the making since 2011.

Frustrations in the process peaked when John Quigley resigned as secretary of the DEP after sending a profane email chastising environmental groups for their lack of support. Weeks later, Governor Wolf signed a bill that eliminates current regulations, aiming to start new and in agreement with the legislature. As a result, many environmentalists feel that the Governor has consistently compromised on the environment, putting the lives of PA residents at risk.

Political Campaigns

The relationship between the state and the drilling industry is evident and problematic in Pennsylvania. The Marcellus Money project has tracked campaign contributions and lobbying expenses from the natural gas industry, revealing over $8 million in political contributions and $46 million for lobbying efforts. In 2013 the Public Accountability Initiative released a report revealing the “revolving door” between state government and the oil and gas industry. The report identifies individuals who have moved from the public sector to industry jobs or vice versa, and how often this occurs over the course of their careers.

NPR StateImpact Pennsylvania created an interactive webpage called, “Blurred Lines” that provides a visual exploration of the “revolving door.” As you scroll through the years, individuals slide back and forth between the private and public sector. Additionally, lawmakers have, for a third time, earmarked fiscal code legislation to fund an industry-supported non-profit Shale Alliance for Energy Research PA, (SAFER PA).

State Agencies

Financial gains from drilling support other aspect of the public sector as well. The DCNR’s annual budget became increasingly reliant upon revenues from gas leases within public lands. In 2013, oil and gas lease royalties and other payments provided one-third of the DCNR’s budget. Act 13 implemented a mandatory impact fee whereby the PUC collects money from companies based on the number of oil and gas wells in the state. This money is directed to local municipalities based on the number of wells within their boundaries. However, while 60% of the fee total goes directly to impacted counties, the remaining 40% can go anywhere in PA. While impact fees totaled over $233 billion dollars in 2014, 2016 is expected to be the lowest amount yet due to the decline in drilling activity. This statistic is one of many that highlights the risk of relying on a fluctuating resource.

Governmental and Industry Responses

US_Marshal_Holleran

2016: Armed U.S. Marshall escort the tree cutting crew for the Constitution pipeline on Megan Holleran’s property (Photo: Alex Lotorto)

Response to community opposition of pipeline projects is often militaristic in nature and exaggerated by the industry and the state. The oil and gas industry views community opposition to infrastructure as an “insurgency.” In 2011, it was revealed that the Army/Marine Corps Counterinsurgency manual is used as a tactical reference. The Gas Drilling Awareness Coalition was classified as a terrorist threat by the PA Office of Homeland security, who hired the Institute of Terrorism Research and Response to track activists provide weekly information on a bulletin sent to law enforcement and gas companies. In 2012, state law enforcement, the FBI, the PA Office of Homeland Security, and the oil and gas industry established the Marcellus Shale Operators’ Crime Committee (MSOCC). This committee actively targeted activists and environmentalists in their homes.

Landowners who refuse to sign easements face an uphill battle against companies, law enforcement, and the state as they advocate for their rights. Megan Holleran of Susquehanna County lost her family’s maple syrup trees to Williams’ proposed Constitution pipeline. After protesting and challenging in court, the judge upheld eminent domain and prohibited the family from being within 150 feet from the right-of-way. Further, armed U.S. Marshalls escorted and guarded the tree cutting crew against peaceful protest. Additionally, in Huntingdon County, Elise and Ellen Gerhart faced tree clearing of their woods for Sunoco’s Mariner East pipeline. Once again, armed police escorted tree cutting crews and made several arrests of protesters, who faced bails of up to $200,000.

Pipeline Build-Out Map

The map below shows the existing major pipeline infrastructure in Pennsylvania and proposed pipelines, with the option of also viewing the unconventional wells in the Marcellus and Utica shale. For more information on pipeline regulation and public information, please view our Intro to Pipelines resource page. It includes details about current and proposed pipeline projects in Pennsylvania and throughout the country. Additionally, the intro links to a map of all proposed pipeline projects in North America.


View map full screen | How FracTracker maps work

While it is clear that companies go to every length to construct pipelines, it is equally clear that state agencies, courts, and law enforcement support pipeline development. The direction of drilling, pipelines, and politics in the state of Pennsylvania serves the bottom line of the natural gas industry. This is evidenced by the proposed pipeline built-out, state support, and state suppression of public backlash. However, continued challenges to public health and environment will only serve to increase the resilience and strength of community opposition.

Trust vs Uncertainty in Argentine Communities

By Sam Rubright, MPH, CPH – with contributions from Ana Wieman and editing by Cecilia G. Flocco, PhD

While the transition from fossil fuels to renewable energy sources is a globally critical issue (link updated in 2018) with significant implications for the oil and gas industry, the same industry encounters on-the-ground challenges in many places where extraction occurs. Argentina is now experiencing those challenges firsthand.

Argentina, South America’s 3rd largest economy, could have 801.5 trillion cubic feet of wet shale gas (more than unproven US reserves), and 27 billion barrels of tight oil.1 Oil and gas companies are excited about the prospects. Argentina has even started to produce its own sand for the hydraulic fracturing process in an attempt to reduce the cost of drilling and attract investors. Already, however, community concerns about environmental health and safety are rising to the surface.

Allen, Argentina

Allen is a city in the Río Negro (“Black River”) province of Argentina, located at the northern edge of the Patagonia region. It is known for its rich fruit production and hosts approximately 27,000 inhabitants as of the most recent census.2,3 Allen is also home to shale oil and gas drilling currently being conducted by Yacimientos Petrolíferos Fiscales (YPF), Argentina’s renationalized energy company.

On July 21, 2015, two separate incidents occurred near Allen. In the first case, a violent decompression at the well4 triggered what was likely a blowout. The spray that resulted caused hydrocarbons to be deposited into a lagoon that flows into the Black River, the province’s namesake and one of the main water sources for the arid Patagonian plateau. Clean up efforts took place immediately, although there was a lack of awareness that a rural community, Calle Ciega #10, lives very close to the drilling activity.5 Less than 24 hours later, Ysur, a YPF contractor, damaged an aqueduct near the town, leaving coastal area residents without drinking water.6

Mirroring community concerns near drilling operations in the US, residents of Calle Ciega #10 have felt the effects ever since the industry came to town; living near such intense industrial activity, they say, has put them all on edge. They worry about everything from cracking foundations, fire and explosions, potential gas leaks, to the heavy truck traffic. Organic farmers are even having trouble selling their produce due to the proximity of oil and gas operations to their fields. The uncertainty of it all is the biggest problem; residents have gone so far as to protest the recent incidents by blocking access to one of wells in the area (EFO 250).7 The neighbors’ concerns were brought to a civil court by Rio Negro province’s Ombudsman, action resulting in ordering environmental impact investigations and in ceasing activities at the well (EFO 280).8

Below you will find some photos from Allen, showing the trucks that transport water for the drilling, a warehouse for sand and ceramics, the well where there were two explosions in recent history, and piping that goes into a neighbor’s yard – Submitted by Ana Wieman:

Trust vs Uncertainty

Argentine communities are fighting a battle between trusting that the industry and government will properly manage oil and gas operations and being left in the dark about public health and safety risks. In addition to the incidents in Allen, a major cyanide spill from a gold mine9 in San Juan province in September (exploited by Canadian Barrick Gold Corp.) has added fuel to public concerns about how Argentine natural resources, as well as the response to incidents and information, are being handled. Inconsistent messages elevate community tensions, leaving a trail of doubt and uncertainty in their wake.

“Vos y yo, bebemos la misma agua.” = “You and I, we drink the same water.”
– Facebook sentiment by Elvio Mendioroz, Argentina


Footnotes and Additional Resources

  1. World Shale Resource Assessments. (2015). US EIA
  2. Rio Negro Province Census (2010)
  3. Geographic coordinates: 38°58′00″S 67°50′00″O
  4. Excavadora dejó dos barrios sin agua (Excavator left two neighborhoods without water). (2015). Rionegro.com.ar
  5. EFO well 280 located between the rural road 11 and Route 22
  6. Escape de petróleo cayó a una laguna en Allen (Escape of oil fell to a lagoon in Allen). (2015). Rionegro.com.ar
  7. Allen: “La vida cambió para peor” alertan vecinos por petrolera (Allen: “Life changed for the worse” Neighbors alert the oil company’s presence). Rionegro.com.ar
  8. La Justicia buscará determinar el posible impacto ambiental del pozo EFO 280. (The Justice will determine the possible environmental impact of well EFO 280). (2015). defensoriarionegro.gov.ar
  9. Cyanide Spill Resources:
    1. Argentina: El cianuro llega al río (Argentina: Cyanide reaches the river). (2015). Biodiversity in Latin America and the Caribbean.
    2. Jáchal y San Juan reclaman la prohibición de la minería a cielo abierto tras el derrame de cianuro en la mina de Barrick Gold (Jáchal and San Juan demand the ban on open pit mining after the cyanide spill at Barrick Gold mine). (2015). lavaca.org.
    3. Por el derrame de cianuro en San Juan, piden incluir los delitos ambientales en el Código Penal (For the cyanide spill in San Juan, they ask to include environmental crimes in the Penal Code). (2015). Cronista.com.
    4. Derrame de Cianuro en San Juan (Cyanide spill in San Juan). (2015). About the cyanide spill in the Veladero mine, San Juan – TV news show
    5. Jáchal, cuando ya nadie te nombre (Jáchal, when no one will say your name – anymore). (2015). De Tierras y de Utopias Viaje Documental – From Lands and Utopies, documentary of the spill in Jáchal that resulted in years of existing water problems
    6. Jorge Lanata’s interview with Simón Ernesto about the spill in Veladero. (2015) by Canal Zeta y Cero, Argentina

Please note: Many of the resources we accessed to write this story, as well as most correspondence, were in Spanish. Please alert Sam to any translation errors: malone@fractracker.org.

Oil Drilling’s Impact on ND Communities

By Thomas DiPaolo, 2013 GIS Intern, FracTracker Alliance

ND Shale Viewer

ND Shale Viewer

Out of North Dakota’s 53 counties, 19 are responsible for producing the oil and natural gas that has brought the state so much prosperity and attention. It’s the latest get-rich-quick scheme, and one that works better than that name would suggest: drive to North Dakota, work in the oil fields for six months, and go home with enough money to find something more permanent. This means that some of the quiet towns overlying the Bakken formation are exploding in size, and many of their new residents lack any connection to these communities when they’re off duty. In the past, similar population booms have been tied to a corresponding increase in crime rates and drug usage, and FracTracker Alliance has examined the available data to find out how much life has changed in North Dakota since the oil started to flow.

Housing Availability

There’s a reason why the you have to drive to North Dakota if you want to stay in the black, and it helps if you’ve got a comfortable car.

Perhaps the biggest problem here, perhaps a cause of others, is that there is simply not enough housing for everyone who wants to work in North Dakota. Trailer parks pack every available inch of space for families from out of state prepared to settle in, becoming themselves towns in miniature, and one of the benefits to consider when working for one oil drilling company over another is to find out which ones are constructing dedicated worker housing and amenities. Familiarity doesn’t fail to breed contempt; demand for living space is so high, in fact, that families who have lived in these towns their whole lives are being forced out as rent prices rise without end. Meanwhile, many have taken to simply sleeping in their cars, and tensions have grown as stores forbid them from parking overnight in their lots.

Crime

With the number of people moving into the state to work in the oil fields, or in industries that support them, North Dakota’s population reached 699,628 in 2012, a jump from the 642,200 people of 2000. More people, of course, means greater effort required to keep the peace – The number of law enforcement officers accordingly jumped from 967 in 2000 to 1,253 in 2012. At first glance, one might think that did the job, since the crime rate fell from 2,203 index crimes1 reported per 100,000 people to 2,122 per 100,000 people, and the number of arrests per officer stayed constant (3.1 in 2000, 3.0 in 2012). That conclusion doesn’t hold up well when you look at how crime has fluctuated within the oil-producing counties.2 The population there has risen to 183,940 people, from just 167,515 people in 2000, and it currently employs 379 law enforcement officers, up from 250 officers. In 2000 the crime rate was already in excess of the state average at 1,582 index crimes reported per 100,000 people and 8.3 arrests per law enforcement officer. By 2012, those figures reached 1,629 crimes per 100,000 people and 12.8 arrests per officer. With only a quarter of the state’s population, the crime rate is three-quarters of the state average. This upswell applies especially to violent crimes. Violent crime reports, numbered at 558 statewide in 2000, nearly tripled to 1,445 in 2012; in the oil counties, they more than tripled from 103 to 363 crimes reported. That number carries through in the crime rate figures; statewide, 206.5 violent crimes occurred per 100,000 people in 2012, while only 86.9 crimes were reported per 100,000 people in 2000; in the oil counties, 197.3 violent crimes were reported per 100,000 people in 2012, compared to only 61.5 violent crimes per 100,000 people in 2000. See Table 1 for a comparison of total and violent crimes between the year 2000 and the year 2012.

Table 1. Crime rates per 100,000 people in North Dakota (2000 vs. 2012)

Total Index Crimes Violent Crimes
Statewide Oil Counties Statewide Oil Counties
2000 2,203 1,582 86.9 61.5
2012 2,122 1,629 206.5 197.3

Where the line blurs is in addressing property crime. Until 2009, there had been a steady decline in the rate of property crime. Since then, however, it has been increasing every year, even if the 2012 figures are still beneath those of 2000. Statewide, the number of property crimes hovered at 13,592 reported crimes in 2000 and 13,402 in 2012, while in the oil counties they rose slightly from 2,547 property crimes in 2000 to 2,634 crimes in 2012. At the same time, the property crime rates fell both statewide (2,116 crimes per 100,000 people to 1,916 per 100,000 people) and in the oil counties (1,529 crimes per 100,000 people to 1,486 per 1000,000 people).

Prostitution

When you have that many single young men together, as so many of the oil field workers are, a market inevitably springs up for very particular crimes. Prostitution stings consume a greater quantity of police time than ever before, with some ND counties reporting their first prostitution arrests ever. In many cases, the suspects in these cases demonstrate a similar attitude to the oil workers they court: stay for a brief period (typically days rather than months), make enough money to support themselves, and keep going out of town. Officers often say that these cases are risky, as they require enough evidence to prove the intent of both parties to exchange money for sex. Without an undercover officer to carry out a sting, many cases could be accused of discrimination, especially in cases where race may be an issue. In other situations, sting operations have provided evidence of drug activity in addition to prostitution.

Drug Use

Juvenile Alcohol Use

In addition to the oil boom, North Dakota has the uncomfortable claim of being one of the nation’s leaders when it comes to binge drinking. It’s notable then to see that, while juvenile3 alcohol use has fallen drastically across the board, juveniles are developing more permissive attitudes towards alcohol use. Between 2000 and 2011, the number of juveniles who reported using alcohol within the previous month fell from 18,000 to 7,000, and it fell from 11,000 to 4,000 juveniles in regards to binge drinking4 on a weekly basis. At the same time, the number of juveniles showing signs of alcohol dependence or abuse fell from 6,000 to 2,000, and those described as needing but not receiving treatment for alcohol abuse fell from 5,000 to 2,000. Yet only 17,000 juveniles reported perceiving great risk from said binge drinking in 2011, where 22,000 had reported perceiving great risk in 2000. Why are more juveniles rejecting personal alcohol use while becoming less concerned with others’ usage?

Adult Drug & Alcohol Use

Whatever the reason, adult alcohol usage has demonstrated the opposite trend: more people are drinking but fewer enjoy it. Between 2000 and 2011, the number of adults using alcohol monthly rose from 286,000 to 320,000, and those binge drinking weekly rose from 144,000 to 165,000. The number of adults perceiving great risk from weekly binge drinking also rose from 173,000 to 183,000, but the number with signs of alcohol dependence or abuse rose from 33,000 to 47,000. Interestingly, the number of adults described as needing but not receiving treatment for alcohol use has barely changed in this time; 46,000 adults were characterized this way in 2000, as opposed to 45,000 of them in 2011.

Smoking and Marijuana Use

The one trend shared between both juveniles and adults is a steady increase in the number of people expressing permissive attitudes towards the use of marijuana. In 2000, 4,000 juveniles and 13,000 adults reported using marijuana within the previous month; by 2011, only 2,000 juveniles reported using marijuana within the previous month, but the number of adults doing so had jumped to 23,000. At that time, only 17,000 juveniles and 171,000 adults reported perceiving great risk from the use of marijuana on a monthly basis, down from 25,000 and 213,000 respectively in 2000. These figures come at a time when other forms of smoking are becoming less popular across the U.S. In 2000 in ND, 16,000 juveniles were using tobacco products on a monthly basis, and 13,000 were using cigarettes specifically; those numbers had fallen to 6,000 and 5,000 juveniles respectively by 2000. Even among adults there were small declines over this time period: 154,000 adults were using tobacco monthly in 2011 as opposed to 161,000 in 2000, and 121,000 adults as opposed to 128,000 were using cigarettes. And while the number of juveniles perceiving great risk from pack-a-day smoking fell from 38,000 to 32,000 between 2000 and 2011, while 346,000 adults perceived great risk from it in 2011, as opposed to 315,000 in 2000.


Footnotes

  1. According to the Crime and Homicide Reports of the North Dakota Attorney General’s office, index crimes are reported to the National Uniform Crime Reporting program managed by the Federal Bureau of Investigation in order to broadly describe the level of criminal activity around the country. They are divided into two categories, violent and property-related. The violent index crimes tracked by North Dakota are murder and non-negligent manslaughter, forcible rape, robbery, and aggravated assault. The property index crimes tracked by the state are burglary, larceny and theft, and motor vehicle theft.
  2. The North Dakota Association of Oil and Gas Producing Counties lists the following counties as its members: Adams, Billings, Bottineau, Bowman, Burke, Divide, Dunn, Golden Valley, Hettinger, McHenry, McKenzie, McLean, Mercer, Mountrail, Renville, Slope, Stark, Ward, and Williams.
  3. The National Surveys on Drug Use and Health define a “juvenile” as any person between the ages of 12 and 17 years, and an adult as any person aged 18 years or older.
  4. The National Surveys on Drug Use and Health define “binge drinking” as consuming five or more alcoholic beverages in one sitting.