It appears that a recent acquisition signals that Exxon is serious about targeting shale gas.
Why this is a troubling development from the folks who brought us the Valdez oil spill below the fold.
Exxon recently announced a $41 billion acquisition of XTO Engery, a big player in the natural gas field known for its exploration of shale gas reserves.
"A $41 billion investment is going to make anyone with an environmental eye look sooner and deeper," said Kevin Book, a managing director at ClearView Energy Partners, a Washington, D.C.-based firm that tracks political developments in the energy sector. Exxon's entry into the field, along with interest from other international oil companies, means that shale gas has hit the big time, Book said.
Shale oil is really bad for the environment, to put it mildly.
Although there are air pollution and land issues associated with shale gas drilling, what most concerns people is the water. Extracting shale gas relies on a method known as hydraulic fracturing, where a huge amount of chemical-laced water is injected down the well hole to fracture the rock and allow the gas to flow out.
This can't be good for any nearby aquifers.
But even more disturbing is that feds have taken a hands-off regulatory position, leaving matters in the hands of state officials.
The shale gas industry has been operating in relative obscurity and with minimal federal oversight: A 2005 law exempted it from the Federal Clean Drinking Water Act. State regulators do the policing.
I wanted to bring this to the attention of the community - especially anyone tired of reading about HCR. I realize this diary is a bit thin on analysis. Guess I'll get a lump of shale oil in my stocking.