Bakken Oil Field Deaths on the Rise

Oil Field Jobs: the Most Dangerous in America

Working in the oil fields may be lucrative these days, but it is also one of the most dangerous jobs in the country.

According to OSHA, 34 North Dakota workers in the oil and gas and construction industries have died because of work-related injuries since 2012. Eight of these fatalities have happened since October, marking a sharp increase and leading some to speculate that the pricing downturn is making an already dangerous job even worse.

In July, the U.S. Department of Labor's OSHA launched an enforcement program to prevent injuries and fatalities in North Dakota’s high-hazard industries. Since then, crude prices have plummeted, causing some to believe there is a connection between a rough pricing environment and more dangerous work conditions.

“Eric Brooks, OSHA’s area director in Bismarck told the Wall Street Journal, “These are the kinds of incidents that we haven’t seen in a while. With the drop in oil prices, companies may be looking to protect the profit margin by hiring contractors that are not experienced.”

In order to survive the downturn, producers are forced to make tough decisions that may contribute to unsafe conditions in an industry known for 12-hour work shifts, rampant turnover and long stretches without time off.

Since the Bakken boom in 2008, thousands have flocked to North Dakota from all over the country in search of better opportunities and they have not been disappointed. The state boasts the lowest unemployment in the country and all sectors have seen wage increases including upwards of $100,000 for truckers and store clerks who can earn double the minimum wage. But the highest paid work in the oil fields definitely come with greater risk.

“These industries are inherently dangerous, and workers are exposed to multiple hazards every day. Their safety must not be compromised because demand for production keeps increasing,” said Eric Brooks. “Workers are coming to these growing industries to find jobs, not catastrophic injury and preventable death. These employers have a legal responsibility to protect every employee that works for them.”

New Fracking Rules for Public Lands

New Regulations For Fracking on Public Lands

After a four-year process that included over 1.5 million public comments, the Bureau of Land Management (BLM) finalized new rules on Friday to regulate hydraulic oil and gas fracturing on public lands.

Related: GOP to Oppose Hydraulic Fracturing Regulations

Since 2007, there has been a steady increase in the use of hydraulic fracturing, but the rules to oversee the practice had not been updated in three decades. The BLM began its work to update existing rules in 2010 after growing public concern amidst the shale oil boom that expanded the use of hydraulic fracturing, the technology that extracts oil from the rock.

“Secretary of the Interior Sally Jewell said that “Current federal well-drilling regulations are more than 30 years old and they simply have not kept pace with the technical complexities of today’s hydraulic fracturing operations. This updated and strengthened rule provides a framework of safeguards and disclosure protocols that will allow for the continued responsible development of our federal oil and gas resources. As we continue to offer millions of acres of public lands for conventional and renewable energy production, it is absolutely critical the public have confidence that transparent and effective safety and environmental protections are in place.”

The rules go into effect in 90 days and require the following:

•  A validation of well integrity in order to protect groundwater supplies
•  Companies to publicly disclose chemicals used in hydraulic fracturing through the website FracFocus, within 30 days of completing fracturing operations
• Higher standards for interim storage of recovered waste fluids from hydraulic fracturing to mitigate risks to air, water and wildlife
•  Companies to submit more detailed information before fracking to reduce the risk of cross-well contamination

This ruling only applies to development on public and tribal lands and could potentially impact more than 90,000 oil and gas wells and set a precedent for future regulations.

Response to the ruling has been swift, with environment groups applauding this as a necessary first step towards protecting our public lands. But the backlash from the energy industry was just as quick with Independent Petroleum Association of America already filing a lawsuit that challenges the regulation.

Read more at blm.gov

The Economic Impact of Shale Oil

During a recent event dubbed “Energy Day” in Bismark, N.D. various groups came together to recognize the impact of the oil and gas industry. The day included legislative committee hearings, an education session and facts and figures regarding the industry’s importance to North Dakota’s economy.

According to one study, presented by Dean Bangsund of ND University, oil and gas had a $43 billion economic impact on North Dakota in 2013 and affected many parts of the aspects of the state’s economy. Highlights include:

• Retail trade saw the largest impact, accounting for $11.3 billion of the total.
• Personal income saw the second-largest impact at $9.3 billion.
• The finance, insurance and real estate industry ($4.5 billion) overtook the government
• $4.4 billion in government revenues

“Researcher Dean Bangsund told Bakken Magazine “This study helps confirm that the petroleum industry is one of the largest basic-sector industries in North Dakota. Although activity is concentrated in the western part of the state, the magnitude of the contributions to both the state and local governments and the sheer volume of secondary economic effects in nearly all sectors of the North Dakota economy would suggest that the economic effects of the industry are felt statewide.”

With unstable pricing environment, the future is unknown. Most economic indicators remain strong, though unemployment ticked up slightly in January and Bangsund believes that North Dakota will continue to reap positive benefits from the oil and gas industry for some time.

Photo: CC

Anti-Fracking Movement Blamed on Russia

Hamm Claims Russia Financed Anti-Frack Movement

Continental Resources’ Harold Hamm accused Russia of trying to destroy the U.S. shale oil industry.

During an interview at a recent Forbes event, Hamm claims that Russians have worked with environmental groups and financed the anti-fracking movement in hopes of producing panic in the United States.

Hamm of course has a vested interest in the anti-fracking movement. He was a pioneer in the use of horizontal drilling and hydraulic fracturing to extract soil from shale. and has been instrumental in the development of the Bakken shale formation which has sparked a hge oil boom. It is expected that the Bakken will produce more than 1.3 million barrels of oil this year, according to the U.S. Energy Information Agency.

Related: U.S. Leads World-Wide Oil Production

This isn’t the first time such accusations against Russia have been made. In June of 2014, NATO chief, Anders Fogh Rasmussen, said Russia was mounting a sophisticated campaign to undermine the development of alternative energy sources such as shale oil. According to Rasmussen, Russia wants to secure Europe's dependence on energy imports from Moscow.

“Rasmussen stated, “I have met allies who can report that Russia, as part of their sophisticated information and disinformation operations, engaged actively with so-called non-governmental organisations - environmental organisations working against shale gas - to maintain European dependence on imported Russian gas. That is my interpretation.”

For more, go to forbes.com

© Awakenedeye |  No Fracking Way Photo

Whiting Petroleum: Is It Up for Sale?

Whiting Petroleum Reportedly Up For Sale

Rumors have been swirling for weeks that Denver-based Whiting Petroleum might be up for sale and some companies may be biting.

Bloomberg reported on Friday that several companies are expressing interest in Whiting including Exxon Mobil Corp., Continental Resources Inc., Hess Corp. and Statoil ASA.

No one is talking openly about a possible deal including Whiting, who has not given any official statement about their intentions. All information has come from anonymous sources and people who are speculating about what the company may do.

“Bloomberg quotes Phillip Jungwirth, an analyst with Bank of Montreal, who says that “Whiting is probably exploring a sale along with other strategic alternatives, including selling assets, raising debt and selling shares in order to address investor liquidity concerns.”

Some believe that a full sale is unlikely due to the Whiting's heavy debt and that it is more probably that the company will sell off large pieces instead.

In early March, Whiting released its 2014 earning results with CEO James J. Volker boasting a strong year with record production and a string 2015 growth plan. A week later,  rumors started to surface the Whiting was looking around for other opportunities.

Whiting was founded in 1980 and became the largest Bakken/Three Forks producer in the Williston Basin after its acquisition of Kodiak Oil & Gas in June of last year.