Fracking fluid and other drilling wastes are dumped into an unlined pit located right up against the Petroleum Highway in Kern County, California. Credit: Sarah Craig/Faces of Fracking

By Carey L. Biron
WASHINGTON, Dec 1 2014 (IPS)

Multinational oil and gas companies are engaged in a quiet but broad attempt to prepare the groundwork for a significant global expansion of shale gas development, according to a study released Monday.

Thus far, the hydraulic fracturing (or “fracking”) technologies that have upended the global gas market have been used primarily in North America and, to a lesser extent, Europe. With U.S. gas production in particular having expanded exponentially in recent years, however, countries around the world have started exploration to discern whether they, too, could cash in on this new approach.Argentina has put in place a new law guaranteeing a minimum price for fracked gas. Further, this minimum price is some 250 percent higher than the previous valuation – a sweetheart guard against the bottomed-out prices that are currently impacting on gas production in the United States.

According to an estimate published last year by the U.S. Energy Information Administration, some 90 percent of the world’s shale gas could be found outside of the United States – an incredibly lucrative potential. “It’s likely there will be a revolution,” Maria van der Hoeven, the executive director at the Paris-based International Energy Agency, has said.

Yet according to the new study, from Friends of the Earth Europe, a watchdog group, only Brazil has strengthened its regulatory regime in anticipation of this expansion. Of the nearly dozen countries the new report looks at, most are doing the opposite.

“Under pressure from the fossil fuel industry – which has deep pockets and promises employment and investment – several governments have already started to weaken their environmental legislation, alter their tax regimes and put in place industry-friendly mining licensing and production processes, in order to attract foreign investors and expertise,” the report states. “This is often at the expense of the public interest.”

In terms of production this remains a nascent industry. Nonetheless, neither governments nor companies appear to have undertaken efforts to guard against the complexities that will arise, including around the potential for social, environmental and even political tensions.

“The industry is trying to change the legislation in those places where they want to operate, to try to repeat as much as possible the favourable policies we’ve seen in U.S. energy policy,” Antoine Simon, a shale gas campaigner with Friends of the Earth Europe and lead author on the new report, told IPS.

“The key here is to ensure that the legal frameworks are as friendly for the industry as possible. That’s the first phase of this global strategy, and we’re seeing it in each country we studied.”

No safeguards

Outside of North America and Europe, Argentina has moved forward the quickest on shale gas development, and thus offers a key example on legislative action for which companies may be looking.

For instance, Argentina has put in place a new law guaranteeing a minimum price for fracked gas. Further, this minimum price is some 250 percent higher than the previous valuation – a sweetheart guard against the bottomed-out prices that are currently impacting on gas production in the United States.

Simon says this law has a telling nickname in Argentina – the “Chevron Decree”, a reference to the U.S. oil and gas company. The day after the law was passed, he notes, Argentina’s main state-backed oil and gas producer signed a long-term production deal with Chevron.

Other countries have put in place favourable new tax policies for oil and gas investors. In Morocco, for instance, producers will be exempt from corporate taxes for the first decade of operation, while Russia has created similar policies for oil production over the next 15 years.

Yet the lack of action to simultaneously put in place environmental or social safeguards in most countries runs a variety of risks, Friends of the Earth Europe and others warn. Hydraulic fracturing requires massive amounts of water, for instance – up to 26 million litres per drill site.

The new report finds that a significant proportion of shale gas reserves around the world are located in areas that are already experiencing significant water shortages and even related violence. Likewise, many of these shale basins are beneath major cross-border aquifers.

Even before these issues are addressed by national governments, then, the oil and gas industry could gain influence in setting policy on the notoriously contentious issue of freshwater use.

Alongside concerns about the local impact of shale gas development is a broader lack of clarity today on the extent to which developing countries would be able to benefit from any new gas-related revenues. Thus far, only Brazil has specifically addressed this issue.

“In our research, Brazil was the only exception in terms of passing legislation that ensured they would get some significant revenues,” Simon says. “Really that doesn’t seem to be happening in other countries, where instead we’re seeing a lot of legislation that offers state aid to push investors to come to their countries.”

Beyond a few notable exceptions in Latin America and South Africa, Simon suggests that this issue has not yet seen significant opposition by civil society. Still, advocacy groups do point to a growing trend of global understanding and mobilisation on fracking concerns.

“As more and more studies confirm the risks of air pollution, water contamination, increased earthquake activity and climate change impacts from fracking, the more people oppose this destructive and intensive process,” Wenonah Hauter, the executive director of Food & Water Watch, a U.S. watchdog group, told IPS.

“The movement to ban fracking has resulted in hundreds of local communities taking action to stop fracking, several states and countries instituting moratoriums, and the movement continues to grow.”

In October, Food & Water Watch organized an international day of action to ban hydraulic fracturing. Hauter notes that the event featured “over 300 actions in 34 countries, from Australia to Argentina, even Antarctica, calling for a ban on fracking”.

Food & Water Watch reports that France and Bulgaria have already banned hydraulic fracturing, while local moratoriums have also been passed by hundreds of communities across the Netherlands, Spain and Argentina.

U.S. government promotion

Meanwhile, the drivers behind fracking-related pressures are not simply multinational companies and national governments keen on investment. It was in the United States where hydraulic fracturing was invented and proved its potential, and today the U.S. government is reportedly taking a central role in promoting these techniques worldwide.

In almost all of the countries studied for the new report, researchers found the development of shale gas to be “closely linked” to a U.S. government agency, the U.S. Unconventional Gas Technical Engagement Program (UGTEP). Housed within the U.S. State Department, since 2010 the UGTEP has engaged in a wide variety of technical assistance around gas development.

“Governments often have limited capability to assess their own country’s unconventional gas resource potential or are unclear about how to develop it in a safe and environmentally sustainable manner,” UGTEP explains on its website. “The ultimate goals of UGTEP are to achieve greater energy security by supporting the development of environmentally and commercially sustainable frameworks.”

While U.S. diplomats are specifically tasked with strengthening U.S. business prospects abroad, critics say UGTEP’s activities constitute the broad promotion of hydraulic fracturing under the guise of U.S. diplomacy.

“UGTEP uses official government channels and US taxpayers’ money to promote high-volume horizontal hydraulic fracturing worldwide, opening doors for the main global players in the oil and gas industry,” the Friends of the Earth Europe report states.

“Through UGTEP, the US is also actively engaged in re-shaping existing foreign legal regulations to create the desired legal framework for the development of shale oil and gas in the targeted countries.”

Edited by Kitty Stapp

The writer can be reached at cbiron@ips.org

Gaza is running out of drinking water. Credit: Eva Bartlett/IPS

By Thalif Deen
UNITED NATIONS, May 19 2014 (IPS)

The United Nations, which is trying to help resolve the widespread shortage of water in the developing world, is faced with a growing new problem: the use of water as a weapon of war in ongoing conflicts.

The most recent examples are largely in the Middle East and Africa, including Iraq, Egypt, Israel (where supplies to the occupied territories have been shut off) and Botswana.

Secretary-General Ban Ki-moon last week expressed concern over reports that water supplies in the besieged Syrian city of Aleppo were deliberately cut off by armed groups for eight days, depriving at least 2.5 million people of access to safe water for drinking and sanitation.

“Preventing people’s access to safe water is a denial of a fundamental human right,” he warned, pointing out that “deliberate targeting of civilians and depriving them of essential supplies is a clear breach of international humanitarian and human rights law.”

In the four-year Syrian civil war, water is being used as a weapon by all parties to the conflict, including the government of President Bashar al-Assad and the multiple rebel groups fighting to oust him from power.

The conflict has claimed the lives of over 150,000 people and displaced nearly nine million Syrians.

The violation of international humanitarian law in Syria includes torture and deprivation of food and water.

Maude Barlow, who represents both the Council of Canadians and Food and Water Watch, told IPS water is being increasingly and deliberately used a a weapon of war in recent and ongoing conflicts.

During the Iran-Iraq war of the 1980s, the Mesopotamian Marshes were drained, she said.

Iraqi President Saddam Hussein drained them further during the 1990s in retribution against Shias who hid there and the Marsh Arabs (Ma’dan) who protected them, she pointed out.

The privatisation of water in Egypt and its diversion to the wealthy was a major factor in the “Arab Spring” uprising. Picture here is the Nile River in Egypt.Credit: Khaled Moussa al-Omrani/IPS.

The privatisation of water in Egypt and its diversion to the wealthy was a major factor in the “Arab Spring” uprising, said Barlow, a former senior advisor on water to the president of the General Assembly back in 2008/2009.

Thousands suddenly had no access to clean water and “thirst protests” were partial catalysts for the large uprising.

Also, more than four decades of Israeli occupation have made it impossible to develop or maintain infrastructure for water in Gaza, causing the contamination of drinking water and many deaths, she declared.

Barlow also said Botswana used water as a weapon against the Kalahari bushmen in an attempt to force them out of the desert, where diamonds had been discovered.

In 2002, the government smashed their only major water borehole, a terrible act that was only overturned in court years later, she noted.

A group of Kalahari Bushmen acting out their hunting techniques. Botswana used water as a weapon against the Kalahari bushmen in an attempt to force them out of the desert, where diamonds had been discovered. Credit: Stuart Orford/CC By 2.0

Last week, Anand Grover and Catarina de Albuquerque, two U.N. experts on water and sanitation, said interference with water supplies even in the context of an ongoing conflict is entirely unacceptable.

They said the city of Aleppo has had intermittent access to water from the beginning of May 2014, with a total cut in supply on May 10, resulting in many, perhaps a million people, left without access to safe water and sanitation.

This affected homes, hospitals and medical centres, the two U.N. experts said.

The cuts appeared to come about as a result of deliberate interference with the water supply, with conflicting allegations suggesting that some armed opposition groups and the government of Syria have both been responsible at different times and to differing degrees, they pointed out.

Barlow told IPS the al-Assad government’s denial of clean water is consistent with its history of using water to punish its enemies and reward its friends.

In 2000, the Syrian regime deregulated land use and gave vast quantities of land and water to its wealthy allies, severely diminishing the water table and driving nearly one million small farmers and herders off the land, she added.

Ironically and tragically, many of them migrated to Aleppo where they are being targeted again, said Barlow,

She also said water has also been deployed as a weapon of “class war.”

Many thousands of inner city residents unable to pay their water bills have had their water services cut in Detroit, Michigan, in the United States, and more recently, as a result of Europe’s austerity programme, in Spain, Greece and Bulgaria.

“Water as a weapon of war is a strong argument to governments and the U.N. they must make real the human right to water and sanitation, regardless of other conflicts taking place,” said Barlow.

Meanwhile, since 1990, almost two billion people globally have gained access to improved sanitation, and 2.3 billion have gained access to drinking water from improved sources, according to a new U.N. report released last week.

The joint report by the U.N. Children’s Fund and the World Health Organisation said about 1.6 billion of these people have piped water connections in their homes or compounds.

Titled “Progress on Drinking Water and Sanitation: 2014 Update,” the report said more than half of the global population lives in cities, and urban areas are still better supplied with improved water and sanitation than rural ones.

“But the gap is decreasing.”

In 1990, more than 76 percent of the people living in urban areas had access to improved sanitation, as opposed to only 28 percent in rural ones.

By 2012, 80 percent urban dwellers and 47 percent rural ones had access to better sanitation.

“Despite this progress,” the report warned, “sharp geographic, socio-cultural, and economic inequalities in access to improved drinking water and sanitation facilities still persist around the world.”