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How the Big Energy Companies Plan to Turn the United States into a Third-World Petro-State

Will North America become not just the next boom continent for energy bonanzas, but a new energy Third World?

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Third Worldification

Since then, there has been a virtual stampede to the shale regions by the major oil companies, which have in many cases devoured smaller firms that pioneered the development of hydro-fracking. (In 2009, for example, ExxonMobil paid $31 billion to acquire XTO Energy, one of the leading producers of shale gas.)   As the extraction of shale oil and gas has accelerated, the industry has faced other problems. To successfully exploit promising shale formations, for instance, energy firms must insert many wells, since each fracking operation can only extend several hundred feet in any direction, requiring the establishment of noisy, polluting, and potentially hazardous drilling operations in well-populated rural and suburban areas.

While drilling has been welcomed by some of these communities as a source of added income, many have vigorously opposed the invasion, seeing it as an assault on neighborhood peace, health, and safety. In an effort to protect their quality of life, some Pennsylvania communities, for example, have adopted zoning laws that ban fracking in their midst. Viewing this as yet another intolerable obstacle, the industry has put intense pressure on friendly members of the state legislature to adopt a law depriving most local jurisdictions of the right to exclude fracking operations. “We have been sold out to the gas industry, plain and simple,” said Todd Miller, a town commissioner in South Fayette Township who opposed the legislation.

If the energy industry has its way in North America, there will be many more Todd Millers complaining about the way their lives and worlds have been “sold out” to the energy barons.  Similar battles are already being fought elsewhere in North America, as energy firms seek to overcome resistance to expanded drilling in areas once protected from such activity.

In Alaska, for example, the industry is fighting in the courts and in Congress to allow drilling in coastal areas, despite opposition from Native American communities which worry that vulnerable marine animals and their traditional way of life will be put at risk. This summer, Royal Dutch Shell is expected to begin test drilling in the Chukchi Sea, an area important to several such communities.

And this is just the beginning. To gain access to additional stores of oil and gas, the industry is seeking to eliminate virtually all environmental restraints imposed since the 1960s and open vast tracts of coastal and wilderness areas, including ANWR, to intensive drilling. It also seeks the construction of the much disputed Keystone XL pipeline, which is to transport synthetic crude oil made from Canadian tar sands -- a particularly “dirty” and environmentally devastating form of energy which has attracted substantial U.S. investment -- to Texas and Louisiana for further processing. According to Jack Gerard, president of the American Petroleum Institute (API), the preferred U.S. energy strategy “would include greater access to areas that are currently off limits, a regulatory and permitting process that supported reasonable timelines for development, and immediate approval of the Keystone XL pipeline.”

To achieve these objectives, the API, which claims to represent more than 490 oil and natural gas companies, has launched a multimillion-dollar campaign to sway the 2012 elections, dubbed “Vote 4 Energy.” While describing itself as nonpartisan, the API-financed campaign seeks to discredit and marginalize any candidate, including President Obama, who opposes even the mildest of version of its drill-anywhere agenda.

“There [are] two paths that we can take” on energy policy, the Vote 4 Energy Web site proclaims. “One path leads to more jobs, higher government revenues and greater U.S. energy security -- which can be achieved by increasing oil and natural gas development right here at home. The other path would put jobs, revenues and our energy security at risk.” This message will be broadcast with increasing frequency as Election Day nears.

 
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