The Fracking Industry's War on the Truth
By Robert F. Kennedy Jr., 20 October 2011
Superb investigative journalism by the New York Times has brought the paper under attack by the natural gas industry. That campaign of intimidation and obfuscation has been orchestrated by top-shelf players like Exxon and Chesapeake, aligned with the industry's worst bottom feeders. This coalition has launched an impressive propaganda effort carried by slick PR firms, industry-funded front groups and a predictable cabal of right-wing industry toadies from cable TV and talk radio. In pitting itself against public disclosure and reasonable regulation, the natural gas industry is once again proving that it is its own worst enemy. . . (read full article online)
Paul Krugman writes in the Times Nov 7:
ReplyDelete"Fracking — injecting high-pressure fluid into rocks deep underground, inducing the release of fossil fuels — is an impressive technology. But it’s also a technology that imposes large costs on the public. We know that it produces toxic (and radioactive) wastewater that contaminates drinking water; there is reason to suspect, despite industry denials, that it also contaminates groundwater; and the heavy trucking required for fracking inflicts major damage on roads.
Economics 101 tells us that an industry imposing large costs on third parties should be required to “internalize” those costs — that is, to pay for the damage it inflicts, treating that damage as a cost of production. Fracking might still be worth doing given those costs. But no industry should be held harmless from its impacts on the environment and the nation’s infrastructure.
Yet what the industry and its defenders demand is, of course, precisely that it be let off the hook for the damage it causes. Why? Because we need that energy! For example, the industry-backed organization energyfromshale.org declares that “there are only two sides in the debate: those who want our oil and natural resources developed in a safe and responsible way; and those who don’t want our oil and natural gas resources developed at all.”
So it’s worth pointing out that special treatment for fracking makes a mockery of free-market principles. Pro-fracking politicians claim to be against subsidies, yet letting an industry impose costs without paying compensation is in effect a huge subsidy. They say they oppose having the government “pick winners,” yet they demand special treatment for this industry precisely because they claim it will be a winner."
Krugman writes "Economics 101 tells us that an industry imposing large costs on third parties should be required to “internalize” those costs .."
ReplyDeleteIf that were really the case, we'd have no pollution, no chemicals in our bodies, no dead zones in the oceans, no rainforest destruction, and no global warming. See the earlier Biomagic post titled "Towards a Green Accounting- What's Externalized Could Kill Us".