“There is a difference in energy independence, and there is a difference in energy dominance. We’re in a position to be dominant. And if we, as a country, want to have national security, and an economy that we all desperately need, then dominance is what America needs.” Ryan Zinke, Interior Secretary
On May 1, 2017, Zinke spoke at the Offshore Technology Conference about “Energy Dominance,” a strategy based on oil and gas fracking. You may be wondering if Saudi Arabia and the rest of the world are ready for a new master and to play the submissive role.
During the 2016 presidential campaign, Trump promised an America First energy plan where “energy dominance will be declared a strategic economic and foreign policy goal of the United States.” Zinke is reviewing the Department of Interior’s five-year plan for leasing offshore blocks to oil and natural gas companies. Like other Trump plans, this is a terrible idea.
Energy Ignorance
Crude oil is a commodity traded worldwide with many nations at the table. The top oil producers are Russia, Saudi Arabia, U.S., Iraq, and China. This ranking is based on the number of barrels per day in December 2016. Russia pumped 10.49 million bpd, Saudi Arabia 10.46, U.S. 8.8, Iraq 4.5, and China 4.0 million bpd.
There is nothing Trump can do to set the price of oil. Commodity traders buy and sell oil futures anticipating price changes. On any given day, the price per barrel is a function of many uncontrollable variables. Producer nations have some control of their production levels, but every nation controls their supply. Oil pricing is a dynamic competitive multiplayer game; everyone tries to win.
The production cost of fracking is much higher than the Saudi oil Trump wants to dominate. Fracking is not an innovation or a game changer as Trump wants you to believe. Fracking is a brute force method used by desperate people when conventional wells go dry. Fracking requires deep wells drilling over 10,000 feet, millions of gallons of fresh water mixed with tons of sand and highly toxic chemicals (each company uses a different blend outside of EPA supervision), and horizontal drilling to frack a large area of shale. The chemical soup used to frack, and the underground water mixed with oil and gas, flows out of the well and must be disposed.
Cracking
Crude oil has little value, you can’t use it to drive your car. Saudi Arabia now owns the largest oil refinery in the U.S. Refineries are large, polluting, dangerous chemical plants. Crude oil goes in, and a variety of products come out: gasoline, jet fuel, diesel, etc. The main process used in refineries is called cracking. Crackers make around $20 per barrel, and refineries are running very close to capacity at a 94 percent utilization rate. Is selling crude a winning strategy?
Protecting our National Treasures
Trump’s orders for the Bureau of Land Management priorities include fossil fuel development. How is America going to dominate the world by fracking National Monuments, National Parks, and even Alaska’s fragile Arctic fields?
President Obama on Dec. 9, 2016, created the Bering Sea Intergovernmental Tribal Advisory Council. This gave local Alaskans a say in how the federal government managed those waters. Native elders condemn a decision by President Trump to revoke the Council, to allow fracking. First Nations are under attack, their land is a fracking target; let’s join them in solidarity.
The enormous costs of poor public health, earthquakes, tap water contamination and public unrest are unacceptable. Trump’s plans must be stopped.
What can you do?
Local responses are urgently needed. Diamond must be stopped in Arkansas to prevent flooding, soil erosion, and spills. Dams, levees, sewers, and roads, emergency services, and disaster shelters are critical infrastructure. Knowledge is power. Please Google and read: Busting the Shale Hype by Post Carbon Institute, The Whole Fracking Enchilada, and The Big Fracking Bubble. A community discussion group on Frackers and Crackers will be announced for Eureka Springs.
Dr. Luis Contreras
Second request: Would someone explain what Zinke said?
“There is a difference in energy independence, and there is a difference in energy dominance. We’re in a position to be dominant. And if we, as a country, want to have national security, and an economy that we all desperately need, then dominance is what America needs.” Ryan Zinke, Interior Secretary
“A is different from B” is a logical proposition, a statement that is either true or false. Saying “A is different, and B is different” is nonsense.
National security, an economy, and dominance are unrelated to “energy independence.”
Is Zinke Russian?
I read what Zinke said about energy at the top of this op-ed, and it must be in Trumpish.
It makes no sense. Can someone comment? Thanks