Saturday, 16 November 2013

The North Dakota Problem

North Dakota does not have a good environmental record at the moment. Its fossil fuel industry has been established since the 1950s, but recent geological surveys have revealed the vast scale of its oil reserves -  a conservative estimate puts the amount of recoverable oil at 7.4 billion barrels.

The vast Bakken formation in the western part of the US state has seen a significant oil boom in recent years. The rush to tap into this gold mine has left inevitable corner cutting on the part of the oil companies and the environmental cost is quickly becoming apparent.

Earlier this year it was reported that over $100 million of natural gas was being completely wasted each month in order to maximise profits from oil production. Natural gas is a by-product of oil extraction. Whilst oil can be stored and transported at a convenient moment, natural gas must be processed straight away. Instead of waiting for the necessary pipelines and processing infrastructure to be built, the oil companies deliberately 'flare' (burn) the gas at the point of extraction.

Flaring in North Dakota's Bakken Oil Fields. Source
At a time of foreseeable fuel poverty, about 30% of all the extracted gas is flared. Each year, this wastes approximately $1.3 billion and creates as much CO2 as 1 million cars. Despite recent lawsuits being filed against the practice, the problem is only getting worse with the amount of flaring doubling between 2011 and 2013. A sobering sense of scale is the view from space, a beacon of unimaginable waste lighting up the rugged landscape of Theodore Roosevelt National Park.

The flared gas of the Bakken Oil Fields visible from space. Source

Just when you think North Dakota couldn't optimise environmental neglect any more, one of the largest onshore oil spoils in recent US history was discovered in the northwest of the state last month. The discovery of over 20,600 barrels of oils was made, not by the company responsible for the failed pipeline, but by a farmer that had 7 acres of farmland saturated up to 10 feet deep with crude oil. The public were made aware of the incident over a week and a half later, a delay caused by the government shutdown.

Spills happen and can't be avoided. That is, perhaps, an acceptable consequence of our need for oil. However, the sheer amount of wastage due to flaring is a disappointing reflection on the attitude of energy companies. How is it possible that oil firms, who make billions - tens of billions even - in profits each year, can unashamedly waste such vast quantities of an irreplaceable and valuable resource?

Perhaps Shell's PR department can sense growing anger. Last summer they announced that they would be investing $100 million in building state-of-the-art gas recovery systems at its Texan refinery. If Shell's 2012 profits of over $3million an hour are anything to go by, they'll recoup that whole investment within a day and a half.

Countries around the world complain that finding a fair and cross-border solution to climate change is riddled with political and economic difficulties. All the while, the oil industry gets away with doing so much damage whilst suffering so little consequences. It is, quite frankly, a pathetic and saddening example of the true state of corporate greed.