US gov’t provides billions in relief to oil and gas companies during pandemic
Monday, October 12, 2020
Since the United States federal government started offering financial relief to some of its major industries, including oil and gas, in March as a response to the pandemic, oil and gas companies have issued almost $100 billion in new bonds backed by the Federal Reserve and U.S. Treasury Department, according to a report conducted by Friends of the Earth, Public Citizen and BailoutWatch.
A total of 56 oil and gas companies issued the bonds, the report read. Furthermore, the Federal Reserve purchased the debt of 19 companies for about $60 billion in new bonds issued and about 60 percent of energy debt issued since March.
So far this year, oil and gas companies have issued a total of $129 billion in bonds — the highest since 2010.
Learn more: Carlsbad Current Argus > Study shows billions of government relief dollars to oil and gas amid COVID-19
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Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.