Category Archives: Oil and Gas Policy

Denver Basin

Denver Basin

The Denver Basin is a deep syncline just east of the Southern Rocky Mountains.  It started around 300 million years ago when the Ancestral Rocky Mountains were uplifted.  A little plate tectonics here, folks.  A tectonic plate is a huge plate of rock slowly moving on the earth’s mantle at or near the surface. When two tectonic plates collide, one of them often dives beneath the other.  As the plate subsides, it runs into hotter rocks at depth.  The subsiding plate has lots of water which lowers the melting point of the rock.  Then things really go on the move.

The subsidence zone, usually along a coastline, gets pretty active, meaning earthquakes, volcanos, and the intrusion of huge blobs of granite known as plutons.  New rock coming in from below means the overlying rocks get uplifted into mountain ranges.  The other side of this mountain building is known as the foreland and usually subsides as its mass goes into the new mountains.  As it subsides, the new basin fills with debris eroding from the mountains.

The Flatirons, Dakota Ridge, the Garden of the Gods, all are built from rocks buried thousands of feet deep just a few miles from the outcrops.  I am sitting here writing atop thousands of feet of mountain debris.

The mountains eventually get hauled away in rivers or dumped into the basin.  This happened twice here in my home country.  The second event occurred at the end of the Cretaceous and the early Paleogene, about 60 million years ago.  Our current Rockies came up, known as the Laramide Orogeny, came up again, and the foreland deepened even more.  It ended up being about 13000 feet deep, filled with the stuff washed and blown off the mountains.

This all took a while.  Rivers formed, seas came and went, and lots of life contributed organic material to the basin.  The result?  Coal, oil, and gas.  The first oil well was in Boulder County, producing from fractured Pierre Shale, which was deposited by an inland sea.  Now this Basin is big, extending into Nebraska and Wyoming.  Huge amounts of oil and gas have been produced, and horizontal drilling and fracking are releasing even more.  The Denver Basin is an oil patch.

Water from the mountains also entered the basin, creating aquifers producing lots of water.  We pump the water and because it is in an enclosed basin, it doesn’t recharge as fast as it is pumped.  Douglas County is going to run out of groundwater some day.  Then the water will have to come from the rivers, and the supply is limited.  Thus, seemingly crazy proposals to pump water from Flaming Gorge Reservoir on the Green River in northern Utah to Eastern Colorado.  Problem: California and Arizona also want that water.

Climate change has the potential of reducing the available water as well, eventually ending population growth.  Amazon, Stay Away.  Mining started Colorado development, and today the money still comes from the ground, but is from oil and gas. As we transition to alternate energy sources, where is Colorado’s wealth going to come from?

Back to Fracking

I wrote about fracking before, but it seems to be the time to revisit the controversy.  The oil and gas business is paying for a media blitz saying fracking is a good thing: lower energy prices.

The opposition seems to believe fracking has concentrated all the evil in the world into a bunch of holes in the ground.  What is the reality here?  Both sides have strong arguments, but they are operating from separate assumptions.

Pro fracking advocates use the arguments that lower energy prices and tax revenue benefit us all.  Anti fracking advocates point to many accidents at drilling sites and groundwater contamination, along with drilling steadily encroaching on urban ares as a dangerous activity.

What about the benefits of fracking?  It’s true fracking has lowered energy costs and the conversion of coal fired power plants to has has lowered air pollution.  True on both counts.  But, fossil fuel is still being burned and greenhouse gasses are still going into the atmosphere.  It’s very possible fracking and increased low cost gas production is impeding the process of converting to alternative energy sources.

What about fracking itself?  It is not new technology.  My Fruita paper route doubled during the 1950’s energy boom in Western Colorado and Eastern Utah.  Fracking was part of the story then.  The real change is to horizontal drilling combined with fracking.

A deep vertical hole is drilled and then the bore hole is turned ninety degrees over the distance of a quarter mile.  The long horizontal bore is is perforated, explosive charges are detonated, fracturing rock usually fairly impervious to oil and gas flow.  The openings are then injected with water and sand, cracking more rock with the cracks held open by the sand.  Oil and gas can then flow into the bore hole and to the surface, then to your furnace and gas tank.

The fracking process uses a lot of water, from one to five million gallons.  About half or less of the water returns to the surface and is most often injected into another well (cheaper than treatment).  The water use can have a significant impact in arid regions.  Return water can be treated, but is expensive.

Probably the biggest objection to fracking is groundwater contamination.  Near Parachute CO, it was possible to light tap water on fire, there was so much gas in the water.  Most often the contamination comes from leaks in the vertical bore hole.  Proper casing and concrete injection readily prevents leaks, but as the work is done deep underground, it is easy to cheat, causing leaks.

My take on the issue?  Increased production from fracking lowers oil and gas prices and decreases our reliance on imported oil.  Coal fired power plants are being converted to gas, resulting in less greenhouse gas pollution from them.  Done properly, the technology is safe, but cheating seems to be the norm in the oil and gas business.  If we want to use fossil fuel, well regulated fracking is the way to go.  i think some of the opposition is because of the word fracking.  It seems to have an obscene connotation.

The big downside stems from the fact reduced fossil fuel costs are delaying the transition to alternative energy sources.  One estimate points out that cheap natural gas makes gas fired power plant power cheaper than wind or solar power.  The transition to alternative power may be slowed by twenty years or more.  In the short run, cheap gas is good.  In the long run, cheap gas may do more harm than good.  The planet can’t sequester enough carbon and the planet gets warmer.  Of course in the long run, we’re all dead.

The debate becomes political, and the oil business has the dollars to influence the decision.  Result, more gas gets burned and the long run comes earlier.  We will probably render our species extinct.

Climate Change

Florida Flooding

Florida Flooding

Here it is, the last day of November, and we still have some tomatoes from our garden.  We had the hard freeze a couple of weeks ago, but we brought quite a few in before it froze.  This fall has been the fall of pasta sauce and tomato soup.  Traditionally the first freeze is in September or early October.  Not this year.  Now, just because we have one warm fall doesn’t necessarily mean global warming, it is a matter of relatively long term trends.  That is happening, folks.   

Worldwide, it is about one degree Celsius and climbing.  The culprit is carbon.  We need carbon, our bodies are mostly water, but carbon hangs everything together.  Florida, for example, is mostly calcium carbonate, limestone.  The limestone formed even the peninsula was underwater with a climate encouraging the growth of untold billions of tiny organisms with calcium carbonate shells.  They die, and if whales don’t eat them, their shells sink to the sea floor.  Well, even if they do get eaten, the whale turds are calcareous.   

Porous Limestone

Porous Limestone

Millions of years and sea level change, and Florida emerges.  The cycle doesn’t end there.  It rains on Florida, and the slightly acidic rain starts dissolving the limestone, sending the carbonates back to the sea.  Enough of the limestone has dissolved to make the peninsula a honeycomb.  Sinkholes, underground rivers, high tides bringing ocean water inland and flooding streets in  Broward county.  The southern part of the state is headed back underwater.   The really big deal is that sea level is rising.   

I have given an example of the carbonate cycle, which is going on worldwide.  The other cycle going on is the water cycle.  Our planet is delicately balanced in temperature around the freezing point of water.  The water evaporates, and if it is cool enough, some of it falls as snow and accumulates, mostly in the polar regions.  At times the ice forming from all that snow has made it as far as Central Park in New York,  that is a lot of water tied up on land.  Sea level drops, and Florida emerges.  

Currently, the cycle is going the opposite direction.  The ice is melting, and the process seems to be accelerating.  Why?  Carbon.  Here in Denver, I see huge coal trains hauling coal south to be burned to run air conditioners in Texas.  The coal, carbon, is ripped from the ground where it has lain for millions of years, mostly dead plant life converted into coal.  It is burned, sending carbon into the atmosphere.  I drove here to the coffee shop burning gasoline, which comes from oil made deep underground from what once were living organisms.  The carbon goes into the air, the climate changes due to human activity.  We are in a new epoch, the Anthropocene.

Elemental carbon is fairly rare.  Diamonds, graphite.  Carbon likes to combine with other stuff to make, well, us and other living things.  That carbon gets sequestered in the earth, reducing the amount of carbon available to make new stuff.  There is a cyclical balance, dependent on worldwide temperature and, lately, us.  We burn carbon based fuels and the carbon dioxide goes into the atmosphere.   

The sun shines, warming everything up.  A lot of that heat gets radiated back into space, maintaining a balance favorable to life.  When that radiant heat meets a CO2 molecule, it warms the molecule.  More carbon, more heat in the atmosphere.  That’s greenhouse gas doing its thing.  The global climate warms up, making some regions wetter, some more dry.  We have gotten used to having a relatively stable climate, and we adapt to it in many ways.   

When the rain and snow fall changes, our adaptations stop working so well.  This is especially important in coastal regions, because all that polar ice starts melting and sea level rises.  Most of the population lives near the coast.  With the coasts moving inland, the people and all their stuff will have to move as well.  Battery Park at the southern tip of Manhattan gets flooded in big storms.  The subway tunnels flood, and people have trouble getting around.  The time is coming when they will be living in central New Jersey.  The horror. 

There are lots of people denying all this, saying it is just the normal weather cycle.  That is true, but it is a new normal, and is changing.   What to do? Stop putting so much carbon into the air and start putting it back into the earth.   That means big change in the way we do things, and those getting rich on the status quo don’t want their businesses upset.   Oil and coal, mostly, but they drive all of our economy.  So, they say it isn’t so, and let’s burn, burn, burn.   

What goes around comes around.  It is just a matter of time.

More on Discontent

The Age of Steam

The Age of Steam

Our economy has been one of change since the beginning.  When the railroads came to Colorado in 1870, a lot of teamster jobs hauling freight from Omaha and Kansas City went away.  The automobile would not have happened without the new petroleum industry.  Coal retained its strength from powering locomotives, heating homes, and fueling industry.  Industry and manufacturing grew, making the American economy one of the largest in the world.

What a combination, land, natural resources, transportation, a growing population of people with ambition, mobility, and a willingness to try something new.  Some were left behind.  Native Americans, African Americans, and those new citizens in the Southwest who were once part of Mexico with its traditional ways.  As always, immigrants ended up at the bottom because of language and discrimination.

There were troubles.  Low wages, a turbulent labor history, drought, an unstable business cycle creating panics individuals were helpless to influence.  There were some adventures the government engaged in, such as Cuba, the Philippines China, Japan, all the trappings of empire.  In many ways the American West was an empire, won at the expense of those who were living there.

John Deere

John Deere

Agriculture was becoming more mechanized, displacing people who moved to the cities to work in industry.  All the change continues.  There is a tremendous amount of wealth in Silicon Valley, not so much in Michigan.

The West has been boom-bust from the start.  The fur trade collapsed, but the gold rushes started.  The government started giving land to the railroads and individuals.  The short grass prairie boomed with hopeful wheat growers, then the droughts came.  Oil and gas grew and grew, and grew.  As old fields played out, new oil fields were discovered.  A couple of big wars really heated things up.

It all looked great.  Yes, lots of change, but people could find good jobs and things steamed along.  The real upheavals were when the business cycle threw millions out of work.  The 1930’s were a terrible time, but a war healed all that.

The West That Never Existed

The West That Never Existed

The 1950’s seemed like a golden age.  Lots of jobs, the U.S. Ruled much of the world, and television built a myth of stability, prosperity, and a bright future for everyone.  the myth came from relative prosperity and the ubitiquous westerns on television promoting a life that never existed.

The 1960’s brought social upheaval accompanied by a growing shift in how people made their living.  Steel mills closed, imported cars were on the roads, and computer-driven automation started taking industrial jobs.  The word Yuppie became a term of derision, but the Yuppies were the wave of the future.  They possessed education and a skill set many people could or would not obtain.

The skilled trades fell out of favor. It is college or else.  The trade jobs are filled the way they have always been filled, by immigrants.  This time however, the immigrants are not easily assimilated Europeans.  They are Latin, and and bring their culture with them.  Many are just not as interested in assimilating, and many are undocumented.

All this change leaves a huge segment of our society out of the good life.  Many are rural, where big mechanized farms haven taken jobs.  Many just do not have social and intellectual requirements to move into the new economy.  What’s left?  Low-paying service economy jobs, often for an out of date minimum wage inadequate for one person, let alone a family.  It is hard to build a life mowing lawns and doing kitchen work.  Much of the time jobs that used to be stepping stones have turned into dead ends.

The trouble is just beginning.  Those people marginalized by an economy where they don’t fit can be radicalized and turn to violence and terror or Donald Trump, which may be same thing.  The discontent is just not with the marginalized working class.  There are lots of well-educated people from middle class families making pizzas and living in their parents’ basement.  They thought they were doing the right thing going into debt to get an education and found nobody wants them.

This is still a rich country.  There is a huge imbalance in the distribution of wealth which has to change.  The change agent must be government.  A true progressive tax structure and an end to the massive influence of special interests in government are desperately needed.  The nation has the resources to provide everyone with an income providing them some dignity and the flexibility to enhance their station in life.  Given a decent income, most will seek ways to do even better.

We will always have the wealthy and the poor.  Now, there is too much concentrated wealth for a few and too many poor.  Trying to revert to an American utopia which never existed will only add to social instability.

Happy Days Are Here Again

Happy Days Are Here Again

There should be no food banks or coat drives.  There should be no one sleeping on the streets.  People with mental health problems should not be cast out.  Everyone should have the time and resources available to build better lives for themselves rather than being trapped in poverty.

In other words, we need a new time of progressive change, not an attempt to return to a myth.  How to pay for it all?  A realistic progressive tax system to redistribute income.

King Coal’s Crown is Slipping

Idle Coal Car

Idle Coal Car

Recently I have done a couple of road trips where I paralleled abandoned or seldom used railroads.  On one trip I came down the Arkansas from Salida to Pueblo, years ago the main line of the Denver and Rio Grande Railroad.  The other route was from Alamosa to Walsenburg, the route of the Rio Grande to the San Luis Valley and on to Gunnison over Marshall Pass.   

On both trips the lower portion of the railroad grade had literally miles of parked gondolas, or coal cars.  The gondolas on the Arkansas were the old-fashioned steel cars.  Those cars are replaced by mostly aluminum cars which are significantly lighter.  The railroads make more money hauling coal instead of heavy steel cars.  Dropping down to Walsenburg were miles of the more modern aluminum cars holding air rather than coal. 

The railroads have lost a huge amount of coal hauling business.  All over the country, coal mines are shutting down, the coal replaced by cheaper natural gas.  Not all the coal trains are gone, I saw one yesterday on its way south through Denver.   

Colorado Springs Power Plant With Idle Coal Cars

Colorado Springs Power Plant With Idle Coal Cars

Colorado Springs has a socialist Utilities Department, generating power and delivering natural gas along with the traditional water and wastewater systems. The big power plant south of the city used to burn so much coal the city bought its own coal train.  All those cars are idle, sitting at the power plant.  Now, it is natural gas powering the generators. 

Colorado has a colorful coal mining history.  The Colorado Fuel and Iron steel mill in Pueblo got its coal from mines just west of Trinidad.  That region had lots of mines accompanied by lots of labor trouble around the turn of the twentieth century.  There were mines in Colorado Springs, west of Denver, a big industry around Louisville and Lafayette.  The mines at Somerset, just north of Paonia are in the process of shutting down.  Craig and Hayden are in trouble, and the mines in the Grand Junction region are long gone. 

“Clean Coal”, a big lie if there ever was one, is on its way out.  Peabody Energy is bankrupt, along with many other mine operators.  We will have coal’s legacy for a long time.  Climate change, fouled rivers and air, areas mutilated by strip mining, and huge piles of mine waste are our children’s inheritance.   

wind_energyAlternative energy, including solar power and wind generation are part of the equation, but cheap and more clean burning natural gas is the main reason for the change.  Gas is cleaner than coal, but it still puts huge amounts of carbon into the atmosphere.  It is just another fossil fuel.  The fossil fuels sequestered huge amounts of carbon that otherwise would contribute to global warming.  Now we are burning all that carbon and heating up the planet. 

Gas is better, but still bad.  All that cheap cleaner burning gas may even slow the transition to renewable energy sources.  On balance, however, we are better off with gas than coal. 

Where is all that cheap gas coming from?  There has been a major technological advance in the oil and gas industry.  The advance is horizontal drilling.  In past years, one hole went into the ground and the oil and gas was extracted froze around that single hole.  The amount recovered was highly dependent on the porosity of the rock formation holding the oil and gas.   

Hydraulic fracturing (fracking), developed in the 1950’s expanded the amount removed from less porous strata, but not on a huge scale.  To get more out of any field with tight rock required lots of expensive drill holes.

The big change was the development of horizontal drilling.  The process took years of development, but now slant drilling is cost effective and allows hydraulic fracturing over a much wider area compared to down hole drilling.  Fracking the slanted holes allows gas and oil to be extracted from oil and gas bearing shales formerly not economically feasible. 

There is much opposition to fracking because the technology allows drilling in new areas where the population is not used to a dirty industry in their back yards.  Traditionally, the industry did not pay much attention to leaking wells.  There was little regulation, and all that stuff went into the atmosphere.  The oil fields in the Four Corners region are the source of the highest atmospheric methane readings in the country.  

Leaks are common because it costs money to prevent them, lowering profits.  The leaks can be prevented, it just takes more work and money.  The big blowout in the Gulf shows that oil companies tend to cheat when the dangerous practices are taking place where no one can see them.  On-site regulation can stop the cheating and oil and gas production from horizontal drilling and fracking can continue safely. 

The downside is the clear need to eliminate our dependency on fossil fuels.  We need to remove carbon from the atmosphere, not increase the amount.  Until more alternative sources come on line, natural gas is preferable to coal, and King Coal can be deposed.  The current difficulty in making the transition is political, with the extractive industries resisting the change at every step.  They are spending money to delay the changes that could be used to make change, not enrich politicians and the advertising industry. 

Residential Solar Power

Residential Solar Power

We have solar panels on our house and garage.  Out utility bill this month will be less than twenty dollars.  Xcel Energy is attempting to eliminate the incentives for home solar power so they can continue to produce power using natural gas.  It’s political, folks.

Nuking Western Colorado

Gas-rigcolorado

In the late 1960’s and early 1970’s, Project Plowshare, a U.S. government program was created to develop peaceful uses for nuclear detonations. The program led to three trials in rural Western Colorado designed to release natural gas from tight geologic formations that contained large amounts of natural gas.  The gas was there, but was difficult to recover because it would not readily flow to wells.  Nuclear fracking, in other words.

The idea was to fracture large amounts of rock releasing the gas for use. Fracking was in use in that era, but the area fractured around a well hole was fairly small, limiting the amount of gas freed.  This would remain the case until horizontal well drilling was developed, resulting in a boom in natural gas production.

The use of atomic explosions somewhat larger than the one that destroyed Hiroshima would fracture a large amount of rock, liberating huge amounts of gas.  There were three experiments.  All three were somewhat successful, yielding gas in recoverable amounts.  Big surprise, the gas was radioactive and remains so.  A study indicated that the level of radioactivity released in a California home, when blended with gas from other sources, would be well below the dose we receive from background radiation. People would have none of it.  No one wanted radioactive natural gas coming into their home at any level.

Western Colorado, source of much of the uranium used in nuclear bombs, had three detonations in a doomed experiment.  The most casual of examinations of the proposal to liberate gas from tight strata would raise the radioactivity question.  It took millions of dollars to prove the obvious: radioactive natural gas.

Some shots were done at the Nevada test site to explore using bombs to excavate.  Huge amounts of radionuclides were released, affecting generations of downwinders, especially in St. George, Utah.  Our nuclear tragedy started in New Mexico with the first Trinity detonation that led to Hiroshima and Nagasaki.  It continues today, with all the radioactive spots around the planet and the people sickened and killed by fallout.

Most historians assert that President Truman’s decision to bomb Hiroshima and Nagasaki ultimately saved lives.  What they did do was trigger the nuclear arms race with its terrible consequences.  Chernobyl and Three Mile Island have shown that nuclear power is risky as well.

My first literary effort was a story I wrote while a student at Mesa College in Grand Junction, Colorado in 1966.  Project Rulison was in the works, and my story depicted an even greater failure.  The blast sent radioactive oil into a previously unknown aquifer that opened into the irrigation canals that provide water to Grand Valley farms.  Radioactive oil in Palisade, Grand Junction, Fruita, and the rest of the valley, rendering it uninhabitable.  Pure fiction, but a fun story.

FrackingSite_1415936638313_9585695_ver1_0_640_480Come up to today, and fracking is still controversial. I think the legacy of Project Rulison is stalking the oil and gas industry to this day.  Somehow the industry did not get it that bad practices will catch up with them, despite the API’s slick commercials.

Part Three, the Keystone XL Pipeline

Pipeline Construction

Pipeline Construction

When I was growing up in Fruita, Colorado in the 1950’s, the El Paso Natural Gas Company built a 26″ natural gas pipeline from north to south through Western Colorado. In flat country, laying a pipe is fairly straightforward.  To lay a pipeline, dig, lay pipe, weld, wrap, and backfill.  In the Colorado Plateau, the pipeline not only goes from point to point, it goes up and down.

North of Fruita, The line had to go over Douglas Pass. As Colorado passes go, it is no big deal.   Not that high, but near the top there is steep and unstable ground famous for landslides.  The trenchers, welding machines, side-boom tractors handling pipe, and bulldozers; all had to be winched up and down the mountainside.  That is a slow, expensive process. To us in Fruita, it meant that our little town had lots of pipeliners for several weeks.

I mostly saw the pipeliners in Hill’s Cafe, where we often had dinner. The stereotype is that pipeliners are a wild bunch, but we didn’t see it in the cafe.  They were quiet, well-behaved, some prayed before eating, and I liked them.  After all, if you are from Bald Knob, Arkansas, how wild can you be?

That pipeline brings gas from Wyoming, Western Colorado, and Eastern Utah to markets in Texas and the southwest, including California. To my knowledge, it has few problems and quietly does its job.  I think that pipeline has shaped my thinking about pipelines in general.

Today there is much oil and gas development in North Dakota and Alberta. A pipeline network exists to deliver crude oil from there to the refinery complex on the Gulf Coast.  It can’t deliver all that is being produced.  Proposed is a new line, the Keystone XL Pipeline that would run west of the existing line, picking up crude from the Williston Basin in North Dakota as well as the synthetic crude from the Alberta tar sands.

There is a lot of opposition for several reasons. One reason is fear of leaks.  Big spills, contamination, fire, ground water contamination, and all the risks that go with moving lots of nasty stuff that burns.  That Alberta synthetic crude is even nastier than regular crude.  Its carbon footprint is much higher than oil from traditional sources.  It is thick and has to be heated to separate it from the sand.  Most of the crude oil refined here in Denver is tar sand oil.

Oil Car Train

Oil Car Train

The fact is that as long as demand for petroleum products stays high, that Alberta crude will go south, but in rail cars if the pipeline isn’t built.  Here in Denver, there are many tank car trains headed south, competing with coal trains for right of way.   In the upper Midwest there is so much oil traffic that farmers are having difficulty shipping their grain.  Pipelines are safer than rail cars for shipping petroleum.

Some of the opposition is for environmental reasons. Tar sand crude is bad.  Pipelines are bad.  Fossil fuel is bad.  All true.  The solution is not stopping pipelines, but reducing demand.  How to reduce demand?  Make fossil fuels more expensive with higher taxes.  Use the tax money to develop alternative energy and transportation.  Build rails not freeways.  Tell that to Republican legislators.

In the meantime, I think the pipeline is the best alternative until our energy policies change.