Imagine paying over $300 for a gallon of gas. That was essentially what Exxon was paying in 1989 when their oil tanker, Valdez, split open and released over 10 million gallons of oil into Prince William Sound, Alaska. The cleanup alone is estimated to have cost roughly $2.5 billion and settlements over $1.1 billion. Divide $3.6 billion by 10 million gallons and Exxon paid well over $300 a gallon for oil they never even sold at the pump. Include all the bad PR and the total cost of the whole incident could easily double.

If current estimates are correct about BP’s monster oil leak in the Gulf of Mexico then there is roughly 5 to 6 million gallons of crude floating around in need of some immediate attention. And immediate is the key word because statistics show that the cost to clean up a gallon of oil on land can run 10 to 30 times more than it does at sea.

So what should BP do? Wait and hope the booms hold and the oil never makes it to land. But when it does, they can expect to start paying over $300 a gallon. This wait and hope is not the answer. The answer is in the backs, equipment and know-how of the Gulf area fisherman. (more…)

For almost a month, BP monitored oil and natural gas gushing from the broken riser and blow-out preventer with remote operated vehicles (ROVs). And for almost a month, they kept all of that video to entirely to themselves. But that’s about to change.

In the hours and days immediately following the explosion on the Deepwater Horizon offshore drill rig in the Gulf of Mexico, the federal response was centered on firefighting, search and rescue. For nearly three days, although the rig was burning, the wellhead and riser assembly were still in tact and there was no leaking oil to speak of. And then, the worst-case scenario happened:  the Deepwater Horizon sank.

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A federal study of hydraulic fracturing set to begin this spring is expected to provide the most expansive look yet at how the natural gas drilling process can affect drinking water supplies, according to interviews with EPA officials and a set of documents outlining the scope of the project. The research will take a substantial step beyond previous studies and focus on how a broad range of ancillary activity – not just the act of injecting fluids under pressure – may affect drinking water quality.

The oil and gas industry strongly opposes this new approach. The agency’s intended research “goes well beyond relationships between hydraulic fracturing and drinking water,” said Lee Fuller, vice president of government affairs for the Independent Petroleum Association of America in comments (PDF) he submitted to the Environmental Protection Agency.

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It takes brute force to wrest natural gas from the earth. Millions of gallons of chemical-laden water mixed with sand — under enough pressure to peel paint from a car — are pumped into the ground, pulverizing a layer of rock that holds billions of small bubbles of gas.

The chemicals transform the fluid into a frictionless mass that works its way deep into the earth, prying open tiny cracks that can extend thousands of feet. The particles of sand or silicon wedge inside those cracks, holding the earth open just enough to allow the gas to slip by. (more…)

U.S. Interior Secretary Ken Salazar said his department will no longer be the “handmaiden” of the oil and gas industry and will conduct tougher environmental reviews of proposals to drill on public lands. Criticizing the Bush and administration for turning federal lands into a “candy store” for the petroleum industry, Salazar told reporters, “The difference is in the prior administration the oil and gas industry essentially were the kings of the world.” He said lax leasing policies “ran afoul of communities, carved up the landscape, and fueled costly conflicts that created uncertainty for investors and industry.”

Salazar said he was ordering federal land managers to get out from behind their desks and to visit proposed leasing sites to evaluate the environmental and social impacts of drilling. The stricter review process would not reduce the amount of oil and gas extracted from federal lands, Salazar said, but would ensure that drilling was done in a more responsible manner. (more…)

Scientists at the National Oceanic and Atmospheric Administration (NOAA) have recommended dramatically scaling back oil drilling plans off U.S. coasts and have proposed a ban on oil and gas exploration in the Arctic until oil companies significantly improve their ability to prevent and clean up oil spills.

The non-binding recommendations to U.S. Interior Secretary Ken Salazar represent a stark reversal from the pro-drilling policies of the Bush administration; the new administrator of NOAA, Jane Lubchenco, is an oceanographer who has vowed to restore science to federal environmental policy.

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For the first time, scientists have discovered chemicals used in a controversial natural gas drilling technique in water wells near the gas sites.

Scientists for the Environmental Protection Agency (EPA), testing wells near a major gas drilling area in Wyoming, have found traces of drilling chemicals in three wells, and other contaminants — including oil, gas, and heavy metals — in 11 of 39 wells recently tested, according to the Web site Pro Publica.

The chemicals are used in a process called hydraulic fracturing, in which drilling fluids and sand are injected under high pressure to break up rock and release gas.

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Oil exploration and production technology may hold the key to secure CO2 storage, a report published by the CO2 Capture Project (CCP) today highlights. The report provides a definitive treatment of the CO2 storage subsurface technical issues and how oil and gas experience technology and protocols are available now to address them.

Entitled “A Technical Basis for Carbon Dioxide Storage” it provides guidance on how to assess and manage industrial-scale CO2 Geological Storage (CGS) projects through appropriate site assessment, operational parameters and monitoring. The report covers four main areas: site selection; well construction and integrity; monitoring programs; and development, operations and closure.

Scott Imbus, CCP Storage Team Leader said: “With this report, the oil and gas industry is transferring decades of experience and nine years of technology development to the fledgling industry of CCS. We hope this will provide the critical boost to turn the potential of CCS into a practical reality.”

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In my continuing effort to launch the CleanTechies community to the forefront of the clean energy debate – and perhaps, in some small part, because I am an insatiable gadfly – I dashed off the following letter to the New York Times yesterday.

It is tough to give much nuance to the argument in less than 200 words, but to me, there are clear connections and contradictions between the the two energy/environment Op-Eds they ran yesterday, one by Gregg Easterbrook, the other by Paul Krugman. The letter follows: (more…)

Is the world warming, cooling or does it matter? Most of us will say it matters, a lot, at least in public anyway. And especially if you are hoping to pay rent or retire one day with a career based around the belief that Amsterdam, New York and Dubai will no longer exist unless we cut greenhouse gases and stop the icecaps from melting. But what has happened now that the earth cooled over the past year? Not to mention former NASA Chief Scientist Dr. Joanne Simpson’s claim last year that now that she is “no longer affiliated with any organization nor receive any funding” that she can publicly say that she “remains skeptical.” Recently the name was changed from ‘global warming’ to ‘climate change’ – what is really going on? Or does it matter?

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