Shell Walks Away From Oil Shale

  • Shell says that even though it's no longer pursing water rights on the Yampa River right now, it's in no way backing off its larger ambitions for oil shale. (Photo courtesy of the US DOE)

Extracting oil from oil shale takes a lot of water. Most of the oil shale in the U.S. is in areas where there’s not a lot of water. Conrad Wilson reports, one big oil company seems to be walking away from oil shale for that reason. But not everyone thinks that’s the case.

Transcript

Extracting oil from oil shale takes a lot of water. Most of the oil shale in the U.S. is in areas where there’s not a lot of water. Conrad Wilson reports, one big oil company seems to be walking away from oil shale for that reason. But not everyone thinks that’s the case.

In the Western US, some energy companies are betting big on oil shale. That’s a process of basically heating up a shale rock into a liquid that’s eventually refined into oil. But the global recession and the threat of climate change might be giving those companies second thoughts. Add to that a increasingly limited water supply, and oil shale looks like a risky investment.

The process of creating oil shale is energy intensive and uses a lot of water. That’s a problem in the arid West. As the population grows, the value of water is increasing.

Royal Dutch Shell has the most invested in developing an oil shale technology that works. So earlier this year when the company announced it was pulling away from water rights, it sent shock waves through the industry.

“I read that decision as Shell’s acknowledgment that oil shale is a long way off and that this was a really controversial filing and that in a sense it’s not worth it.”

That’s Claire Bastable of the Western Energy Project. It’s an environmental group that keeps on eye on energy issues in the West. Shell had been pursuing water rights on the Yampa River, in the Northwest portion Colorado.

“Shell’s decision was a big deal. We’re talking about 15 billion gallons of water. … It would have basically taken the Yampa River, which is one of the the last free flowing rivers in the West and diverted a huge proportion of it to Shell for potential oil shale development.”

Bastable says the 15 billion gallons Shell was seeking is about three times the amount the city of Boulder, Colorado uses in a year.

But, Shell knows a lot of oil can be extracted from the oil shale. It’s estimated that there are 800 billion barrels of usable oil in the shale – in Wyoming, Colorado and Utah.

Dr. Jeremy Boak researches oil shale development at the Colorado School of Mines. He says Shell could be simply postponing extracting that oil. Boak believes oil shale has a future, but it’s still decades away.

“With all of the comments they’ve made about what the time scale for oil shale, Shell has been pretty comfortable that this is going to take time.”

Shell says that even though it’s no longer pursing water rights on the Yampa River right now, it’s in no way backing off its larger ambitions for oil shale.

The company wouldn’t provide someone to comment for this story, but in a statement the company said:

The “ultimate goal is to create a commercial oil shale recovery operation that is economically viable, environmentally responsible and socially sustainable.”

That statement adds timing depends on government regulation and the market. The company could be waiting to see what the government does about climate change and how that affects fossil fuel costs. Shell could also be waiting for oil prices go up before deciding whether oil shale worth the effort.

Eric Kuhn heads up water management for the Colorado River District. He monitors much of the state’s water West of the Continental Divide. Kuhn says there’s probably enough water for oil shale development right now, but it’s hard to say for how long.

“I don’t think they’re dropping the filing changes anything. I think those companies are dedicated to and still have a plan to develop the oil shale resource if they can find a technology that is economically productive or if they can produce the oil shale at a competitive price, I think they will do it.”

Environmentalists in the region hope they won’t. They say Shell’s decision not to pursue the water right now should be a signal to others… oil shale just might not be worth the effort.

For The Environment Report, I’m Conrad Wilson.

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Mixed Messages on Oil and Gas Drilling

  • Interior Secretary Ken Salazar announced that there would be more auctions for drilling leases this year. (Photo courtesy of NOAA)

The federal government leases public
land to oil and natural gas companies
for drilling. For at least the last
decade, energy companies have called
the shots. The Obama Administration
has indicated things are different now.
Conrad Wilson reports, there are some
inconsistencies in the Obama Administration’s
plan to reign in the industry:

Transcript

The federal government leases public
land to oil and natural gas companies
for drilling. For at least the last
decade, energy companies have called
the shots. The Obama Administration
has indicated things are different now.
Conrad Wilson reports, there are some
inconsistencies in the Obama Administration’s
plan to reign in the industry:

Because of the recession, we’re not using as much energy. For the last
several months, there’s been a glut of oil and natural gas. Big oil and
natural gas companies saw record profits a couple of years ago – but those
profits are down now.

If you ask the energy companies, it would seem the biggest culprit is not
the economy, but the federal government.

For instance, Interior Secretary Ken Salazar is blamed for energy
companies’ falling profits. That’s because he’s criticized oil and gas
companies for acting like they have a right to drill on as much public land
as they want.

“Trade groups for the oil and gas industry repeatedly launch attacks that
have all the poison and deception of election year politics. Trade groups
for the oil and gas industry need to understand that they do not own the
nation’s public lands, tax payers do.”

That sounds like tough talk, right? And in many ways it is. There have
been some major reforms that change the way business is done between the
government and and oil and gas drillers.

But behind all this stick waving, the industry’s also getting a carrot. In
a conciliatory gesture, Salazar announced that there would be more auctions
for drilling leases this year.

The industry says it needs access to even more land. Kathleen Sgamma
directs government affairs for the Denver-based trade group Independent
Petroleum Association of Mountain States. In November, her office issued a
report criticizing the Department of Interior. Among the many concerns, was
the amount of land offered for lease.

“Our full paper looked at all of the things that the Interior Department is
doing to make it more difficult to develop American natural gas and oil on
federal lands. And one of those things is a slow down in permitting.”

But the government says a slow down in permits and leases is not causing
lower profits for oil and gas. As it is, companies are not drilling or
pumping where they already have leases – because there’s a glut of
supplies.

In Western Colorado, the Thompson Divide Coalition wants to cancel leases
and prevent drilling. Lisa Moreno heads up the alliance of ranchers,
hunters, and conservationists.

“The fact of the matter is, is the industry has a huge amount of acreage
under lease that they haven’t developed.”

Moreno says energy companies have leased about 47 million acres, but the
oil and gas companies are only using about one-third of that land right
now.

So why do oil and gas companies want more land? Even if energy companies
don’t use the lands for drilling, they’re still an important asset.

Jeremy Nichols is Climate and Energy Program Director for WildEarth
Guardians. Nichols says leases represent assets and are used to attract
investors.

“And so drilling is just part of what they do. They’re also basically land
holding companies. You know, they’re buying and selling each other left and
right. And so it’s more than just to drill or not to drill. It’s a lot
more, it’s a lot more complicated than that.”

If that’s the case, why is the government opening more leases?

Well, Jeremy Nichols thinks Interior Secretary Ken Salazar is trying to
kiss and make up.

“You know, I’ll be honest I think Salazar appearing conciliatory. But the
oil and gas industry is going to be critical no matter what Salazar does.
The oil and gas industry just doesn’t like to be regulated; they don’t like
to be told what to do. And so they’re going to complain no matter what.”

And so, more of the public’s land will be held by oil and gas drillers who
won’t be producing much until the economy recovers, prices go up and they
can make more money.

For The Environment Report, I’m Conrad Wilson.

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Germany Sets Energy Example

  • Nearly 20 years ago, Germany passed a law requiring utility companies to pay homeowners more for creating green energy. (Photo courtesy of the National Renewable Energy Laboratory)

Many European countries are taking
climate change seriously. Since
1990, Germany has slashed their carbon
emissions nearly 23%, emerging
as a leader in green energy. Conrad
Wilson explains the country’s transformation
to an alternative energy leader:

Transcript

Many European countries are taking
climate change seriously. Since
1990, Germany has slashed their carbon
emissions nearly 23%, emerging
as a leader in green energy. Conrad
Wilson explains the country’s transformation
to an alternative energy leader:

Nearly 20 years ago, Germany passed a law requiring utility companies to pay
homeowners more for creating green energy. Today that includes wind and
geothermal, but the big winner is solar.

Dr. Silke Karcher is a scientist at the German Ministry of Environment in Berlin.
She says the solar industry is growing, despite the lack of sun.

“One of the instruments, one of the legal instruments that we would really like to
export that has really been successful is the way that we’re supporting renewable
energies and electricity. We have a so-called ‘feed in tariff law,’ which mean that
wherever in Germany you produce renewable energy, you can feed it into the
grid and you get a specific price.”

And that policy has put Germany way ahead to the US. Even with all the rebates
and other recent incentives in the nation’s most pioneering green tech states, it
takes longer for homeowners in the US to pay off an investment in a solar array.

“What Germany does is that they say we’ll pay x amount of euros for every
kilowatt produced, period.”

That’s Jim Rarus, principal of InPower. It’s a Colorado-based solar installation
company. Rarus says rather than comparing renewable fuels to less expensive
fossil fuels, Germany accounts for the costs of pollution.

“They don’t compare certain technologies like solar, which obviously have a
higher cost basis, to other technologies like coal and natural gas, which have a
lower costs basis. So they’re paying a price that reflects the fact that it’s a little
more expensive to build a solar plant and allows the people that put it in to either
get their money back or to make a reasonable return.”

For homeowners investing in solar arrays in the US, the process can be
unpredictable and even frustrating. Johnny Weiss is executive director of Solar
Energy International. It’s a Colorado based nonprofit that trains people for
careers in the solar industry. He says the incentive system in the US is too
complex.

“Over here, it’s different and a more complicated system. We all have states that
are free to do their own incentive programs. We have incentives at the national
level. We have incentives at the local level. But the result is that it’s a bit
overwhelming for not just solar professionals, but the public as well. And it’s not a
consistent thing people can count on.”

Some communities in the US are trying out the European model. But the limited
government support in the US has driven competition as solar companies try to
make the energy source affordable. That’s something some fear isn’t happening
anymore in Germany.

Dr. Kurt Christian Scheel heads up the Department of Climate and Sustainable
Development for the German private industry association. Scheel worries that
government incentives have stifled innovation.

“I mean, let’s put it this way. Whoever produces solar panels in Germany has a
safe earning and no motivation in anyway to, and not enough competition to,
innovate and to make things better.”

But even if in the long-term some feel a feed-in tariff slows innovation and
growth, it’s proven that in a short period of time it can drive energy consumers to
become producers.

For The Environment Report, I’m Conrad Wilson.

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Connectedness of Climate and Healthcare

  • Pundits say President Obama is putting all his political chips in the fight for health care. And, if he loses, he'll have almost nothing left to spend on climate change. (Photo by Bill Branson, courtesy of the National Cancer Institute)

The health care debate is sucking
up most of the energy in Washington.
So it makes sense that the world is
concerned the US might show up at
global climate talks in December empty
handed. Conrad Wilson explains how
the heath care debate is threatening
the chances of a global climate treaty:

Transcript

The health care debate is sucking
up most of the energy in Washington.
So it makes sense that the world is
concerned the US might show up at
global climate talks in December empty
handed. Conrad Wilson explains how
the heath care debate is threatening
the chances of a global climate treaty:

European countries, along with China and other big global polluters, are wrestling with
how to deal with global warming. But as the world gears up for the climate change
conference in Copenhagen, Washington is focusing on health care.

The timing of Washington’s health care debate has many countries scratching their heads.
And it has environmentalists and climate folks nervous. All agree health care is
important; but globally, they say, it’s out of step.

And when you ask Americans what the President is working on, few mention climate
change.

Person 1: “Probably health care and fixing the economy.”

Person 2: “On the economy. And fixing the economy. Actually, no, I’ll change that.
Actually, what I think he’s focusing on is the health care issue.”

Person 3: “This week, Afghanistan. Last week, health care. The week before, the
economy.”

Person 4: “He’s focusing on health care primarily, which is very important. But he also
needs to maintain his focus on the economy.”

What’s not being talked about is climate change and the global talks coming up in
Copenhagen.

Dan Esty is a professor of Environmental Law & Policy at Yale University. He also has
experience as a climate negotiator. Esty predicts the health care debate will continue
through the end of the year.

“I think it’s going to be very difficult, given the political effort that’s going to be required
to achieve success on health care, to imagine that climate change can be taken on during
the same time period.”

Esty says there’s only so much President Obama and members of Congress can take on at
once. Climate change and health care are two major issues that can’t be resolved
overnight.

As time wears on, the talks are shaping up for an outcome that looks more like the failed
Kyoto climate agreement from a decate ago. After Kyoto, Congress refused to join the
rest of th eworld in capping carbon emissions. Esty fears that could happen again.

“The health care debate, at the present moment, is occupying all the political oxygen in
Washington and that means there’s really nothing left with which to drive forward the
response to climate change. And, as a result, our negotiator will go to Copenhagen
without any real game plan in place for how the United States is going to step up and be a
constructive part of the response of the build up of green house gases in the atmosphere.”

A lot of people say the US needs to pass a climate change law before going to
Copenhagen. But others say maybe not. They argue it’s not a bad idea for the US to go
into global climate talks without a law because it could allow negotiators to be more
flexible.

Regardless of how it’s done, cutting greenhouse gases is now more pressing than ever
before. With Washington paralyzed by the health care debate, the timing is just bad for
climate change.

“If there were ever a time. You can say that about health care and about climate policy.”

That’s energy analyst Randy Udall. He says President Obama has a lot of his plate and
should be ready to compromise.

“Obama’s not going to get nearly as much as many of us had hoped for in terms of health
care reform. And he’s not going to get nearly as much as many of us had hoped for in
terms of energy policy. He will get something. But it not going to be a half a loaf, it’ll be
a quarter of a loaf.”

Pundits say President Obama is putting all his political chips in the fight for health care.
And, if he loses, he’ll have almost nothing left to spend on climate change.

For The Environment Report, I’m Conrad Wilson.

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Green Crime: Stealing Solar Panels

  • Solar panels were recently stolen off the community rec center in Carbondale, Colorado. The building is one of the greenest building in the state. (Photo courtesy of Lynn Burton)

Solar panels are expensive and
increasingly in demand. And now,
many communities are learning of
their solar array’s value the hard
way – they’re being stolen. Conrad
Wilson tells up about this new type
of “green crime:”

Transcript

Solar panels are expensive and
increasingly in demand. And now,
many communities are learning of
their solar array’s value the hard
way – they’re being stolen. Conrad
Wilson tells up about this new type
of “green crime:”

Solar panels are expensive and they’re increasingly in demand throughout the
world, so it sands to reason solar panels have become an attractive target for
criminals.

Recently, 30 panels were stolen from one of the “greenest” buildings in Colorado.
Ninety solar panels valued at $135,000 were swiped off a waste water treatment
plant outside San Francisco.

Monique Hannis is a spokesperson for the Solar Energy Industries Association.
She says, over the last year, solar theft has become a greater concern.

“It’s really just emerged as an issue we need to be watching, really, in the last
year. And the reason is, as solar becomes more prevalent and people
understand the value of the solar panels, it’s just like any other target for theft.”

Currently the group doesn’t track the crimes, but since more panels are
disappearing Hannis says they’ll likely start.

This type of “green crime” is nothing new in developing countries. Lori Stone is
international program manager for Solar Energy International. It’s a Colorado-
based nonprofit that trains students world-wide for careers in the solar industry.
Stone says in some cases the solar panels are gone just days after they’re
installed.

“If somebody really wants to steal solar panels, it’s pretty hard to keep them from
doing it. You know, there’s some new things that are coming out now with ways
to lock them and stuff, but they’re costly and so a lot of these developing country
systems, solar home systems, are pretty easy to take.”

In Kenya, last September, thieves unsuccessfully tried to swipe solar panels on
the house belonging to President Obama’s 86 year-old step-grandmother.

As the solar industry becomes more established, security is gearing up. It’s
becoming part of installing a solar array.

The Solar Industry’s Hannis says manufactures are making things harder for
thieves by adding tracking numbers as part of a recycling program.

“This same system could be used to at least track the location of panels, the
rightful owner of panels going forward, similar to a VIN number of a car.”

Hannis says consumers should be wary of purchasing panels from online sites
such as eBay or Craigslist because they could be buying stolen panels.

To ward off thefts, some go so far as to post night watchmen. Other larger arrays
are equipped with cameras and fences. But there’re also more affordable
options.

Bryce Campbell is president of Bryce Fastener Company, an Arizona based
business that specializes in a unique type of security bolt that acts like a key. The
bolts cost about two dollars per panel.

“The solar industry is starting to say, ‘Hey, what do we do?’ Ha ha. Are we going
to up security systems up here, cameras? Not really effective in places where
most of these solar arrays are laid out.”

Campbell says solar companies began contacting him about a year and a half
ago. Now he gets orders daily.

For Campbell, it makes sense considering people are parking thousands of
dollars on roof-tops and in fields.

For The Environment Report, I’m Conrad Wilson.

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Drilling for Radioactive Gas?

  • The Rulison device at insertion, 1969 (Photo courtesy of the US Department of Energy Digital Photo Archive)

There are proposals to drill for oil
and gas very close to the site of a
nuclear explosion. The device was
exploded underground in western Colorado
40 years ago this month. Natural gas
from wells near the site could be
distributed throughout the U.S. Some
experts are concerned the natural gas
could be radioactive. Conrad Wilson
reports regulators could allow drilling
closer to the blast site in the next
couple of years:

Transcript

There are proposals to drill for oil
and gas very close to the site of a
nuclear explosion. The device was
exploded underground in western Colorado
40 years ago this month. Natural gas
from wells near the site could be
distributed throughout the U.S. Some
experts are concerned the natural gas
could be radioactive. Conrad Wilson
reports regulators could allow drilling
closer to the blast site in the next
couple of years:

On September 10, 1969 the Atomic Energy Commission detonated a 40-kiloton
nuclear bomb a mile and a half under ground. It was called Project Rulison. The
bomb was three times the size of the one dropped on Hiroshima.

The idea was to find peaceful uses for nuclear weapons. The federal government
hoped that nukes could be used to free up pockets of gas trapped below.

(sound of video)

The nuke did free up gas.

The government tested the gas by flaring it – burning it in the open – over the next
year. They discovered the natural gas was radioactive.

Marian Wells is a long time resident of Rulison. Her parent’s home was close to
the detonation site and the gas flares. Both of her parents died of cancer. So did
many of her neighbors.

She spoke before the Colorado Oil and Gas Conservation Commission.

“My parents were given no notice that you were flaring contaminated gas. And
yet both my parents died of cancer. Cancer is prevalent in this area. And yes, no
one has studied those cause and effect. You don’t really care about us.”

There’s been no government studies connecting cancer and the Rulison blast,
but the community remains fearful and suspicious.

Gas drilling is allowed as close as three miles of the blast site. That natural gas
is piped around the country.

Now some companies say they want to drill for natural gas within a half mile of
ground zero.

The Department of Energy maintains that, for the most part, the gas near the
blast site is safe, but there’s some uncertainly.

Jack Craig heads up the Rulison site for the Department of Energy. Craig says
drilling closer to the nuclear blast site should move forward slowly.

“What we’re saying is do it in a sequential manor. So that you come in slowly
testing the wells as you go in for contaminants – specifically tritium – and, if you
don’t find anything, move in closer.”

Tritium is a radioactive substance produced by the blast. Breathing tritium can
cause cancer.

Chris Canfield works on environmental protection for the state oil and gas
commission. He heads up an annual audit on the Rulison site.

Canfield: “Simply put, everything that’s coming out of the ground is being
sampled, being analyzed.”

Wilson: “If someone were to come to you and say they want to drill within the
half mile of the Rulison blast site, would you say that’s safe?”

Canfield: “I wouldn’t really know at this time.”

Canfield says that the state would require a special hearing before it would
approve any drilling permits any closer.

Oil and gas commissioner Jim Martin says there are still too many unanswered
questions to allow drilling that close to the blast site.

“There are significant information gaps and that makes is very difficult to really
understand the risks either to the workers or to the public who live within some
distance of the drill site.”

Martin says he understands why people are skeptical. He says the United States
has made a lot of mistakes with radioactive materials. Navajo uranium miners
got cancer because of radio exposure. People downwind of above ground
detonations suffered. Martin says skepticism is warranted.

“So it’s not unreasonable to ask some pretty tough questions of the federal
government before we go further into that half mile perimeter and produce more
gas.”

Gas that could be burned to heat homes across the U.S.

For The Environment Report, I’m Conrad Wilson.

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Destructive Beetle Creates Blue Wood

  • These mountain pine beetles are very destructive, killing millions of trees (Photo courtesy of the Rocky Mountain Research Station)

For more than a decade, mountain pine beetles have been devastating

forests in Canada and the Western United States. Colorado
has been hit especially hard. Millions of dead pines are creating the potential for huge forest fires. So, the trees are being cut
down. Conrad Wilson reports, some business are using that
timber:

Transcript

For more than a decade, mountain pine beetles have been devastating

forests in Canada and the Western United States. Colorado
has been hit especially hard. Millions of dead pines are creating the potential for huge forest fires. So, the trees are being cut
down. Conrad Wilson reports, some business are using that
timber:

(sound of a beetle)

That’s the sound of mountain pine beetles hard at work, laying
eggs beneath a tree’s bark. That kills the tree.

Here in Colorado’s Rocky Mountains,
two million acres of pine trees have been killed.

But the same destruction caused by the bugs has also created an
opportunity.

The beetles introduce a fungus that stains the wood a unique
blue. And that’s caught the attention of Colorado’s woodworkers. They’re using the wood for everything from furniture to decking.

(sound of sawing and pounding)

Outside Boulder, a company called Kitchens by Wedgewood is using the wood for
cabinets.

Wedgewood President Jim Ames says his company started working
with the timber three years ago.

Despite the drop in the housing market, Ames says customers like the blue stained finish.

“People are starting to ask for it more and more. Again, as
we get into this green movement, everybody wants to see what all those
dead trees in Colorado look like when they’re turned into a cabinet door.”

Ames says, with so many trees being killed, there will be enough timber to make beetle
wood cabinets for the rest of his lifetime.

For The Environment Report, I’m Conrad Wilson.

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Keeping Chemicals a Secret

  • Drilling for natural gas includes pumping water and chemicals at high pressure into the ground to force out pockets of gas (Photo courtesy of Argonne National Laboratories)

The federal law that protects drinking water allows companies drilling for natural gas to inject chemicals into the ground. The exemption for gas drilling operations also allows the companies to keep the chemicals they use a secret. Conrad Wilson reports environmentalists want the exemption removed:

Transcript

The federal law that protects drinking water allows companies drilling for natural gas to inject chemicals into the ground. The exemption for gas drilling operations also allows the companies to keep the chemicals they use a secret. Conrad Wilson reports environmentalists want the exemption removed:

For decades, drilling for natural gas includes pumping water and chemicals at high pressure into the ground to force out pockets of gas.

Environmental groups believe the chemicals are contaminating wells and aquifers here in the western U.S. Now gas drilling is moving east to places closer to cities such as Philadelphia and New York.

Several Democratic Members of Congress have introduced legislation to repeal the exemption in the Safe Drinking Water Act.

Randy Udall is a co-founder of the Association for the Study of Peak Oil-USA, an environmental group. He says as more gas is found, people in the East can expect more drilling.

“For better or worse, whether you like it or not, as time goes on, were going to be drilling in places where people are living.”

The oil and natural gas industry says the chemicals they force into the ground are “trade secrets.” They say the process is safe.

For The Environment Report, I’m Conrad Wilson.

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