Category Archives: Environment

How Oil and Gas Leases for Fracking Rip Off Homeowners

Yves here. This post by Steven Horn about that shows the typical terms of an oil and gas rights lease for American Energy Partners buries the lead, in that Steve needs to give the context of how the lease came to be public before he turns to explaining how the lease rips off the party who signs it. Among other things, it requires the homeowner to have any mortgage made subordinate to the royalty agreement, something no lender will agree to. If the homeowner can’t get the subordination (a given), no royalties will be paid! As you’ll see, there are other “heads I win, tails you lose” terms in these agreement.

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Life Inside America’s Oil Boom

Yves here. Be warned, this isn’t standard Naked Capitalism fare. It’s a bit of “road trip meets oil boom subculture.” But while there has been a lot of reporting on what is happening in communities where fracking is underway, there has been comparatively little on-the-ground-coverage of what is arguably the bigger story, the development of the Bakken oil field.

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The Biocultural Origins of Human Capital Formation and Economic Growth

The substitution from child quantity to quality has been credited for mankind’s escape from the Malthusian trap and the advent of sustained economic growth. This column argues that biocultural preferences for quality faced positive selection pressure in the pre-growth era, presenting evidence from the founding population of Quebec. Individuals with moderate levels of fecundity had fewer children than those with high fecundity, but produced more descendants in the long run because their children enjoyed higher reproductive success.

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Oil Is Back! A Global Warming President Presides Over a Drill-Baby-Drill America

Yves here. It should come as no surprise that Obama’s rhetoric on climate change is sorely out of whack with his policies. Indeed, as Michael Klare reports, there’s been enough of a economic rebound in the US to lead to more driving, and hence more oil usage. And rather than regard that as a problem, the Administration has shifted from talking up clean energy to pushing more domestic oil production.

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Don Quijones: Judge Turns Monsanto’s Mexican GMO Dream Into Legal Nightmare

Yves here. The success of seed companies in extracting rents from farmers, particularly in countries where subsistence farming is widespread, is yet another example of how corporations like Monsanto abuse intellectual property laws and monopoly/oligopoly power. For the most part, governments have by their inaction backed this scheme. And that’s before you get to the fact that GMO crops, as a former NIH biomedical researcher stressed to me, is a massive experiment being conducted on the public at large without consent or controls.

Don Quijones reports on a ruling in Mexico that has, at least for the moment, thrown a spanner in the seed companies’ plans by barring field trials of GMO crops due to environmental risks.

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Don Quijones: Spain’s Silent Reconquest of Mexico

With the ink still drying on Mexico’s historic energy reform, global oil and gas majors are salivating at the prospect of gaining access to one of the world’s largest and until recently most nationalized energy markets. One of those companies is the Spanish electricity giant Iberdrola, which expects to massively expand its operations in Mexico through increased investments of close to €1 billion.

Now, I know what you’re thinking: €1 billion is chicken feed in this age of inflated corporate balance sheets. Indeed, for some corporations such a sum is probably hardly worth getting out of bed for these days. However, in Mexico it can go a very long way, much further than it can in Europe or the US – especially when you have paid moles lobbying for your every interest at the highest level of government.

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Fracking Waste Disposal Fuels Opposition in U.S. and Abroad

Yves here. We’ve posted on some of the not-as-widely publicized damage done by fracking, such as methane releases and increased incidence of earthquakes, as well as the most obvious hazard, which is contamination of water supplies.

This article describes yet another environmental cost, that of fracking waste disposal. Expect this to become a new NIMBY (not in my back yard) issue as the public becomes more familiar with this risk.

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New Study Says U.S. Underestimated Keystone XL Emissions

Yves here. Some advocates greenhouse gas reduction policies argue that the fight against the Keystone XL pipeline is misguided, since it represented a lot of political capital spent against a not-terribly-significant target. However, this post does reveal an important coda: that of the Administration’s characteristic dishonesty, in this case around climate change issues. Other examples, chronicled at length here and here, is Obama’s pro-fracking climate change headfake, which conveniently fails to include methane emissions in his new carbon containment policies.

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