Farmers struggle with new fuel taxes, no drought relief

Agriculture is being punished, farmers’ organisation TAU SA said on Wednesday. Finance Minister Nhlanhla Nene’s 2015/16 budget increased fuel taxes and made no allocation towards drought relief.

“With the current severe drought, we would have liked that the minister [of finance] would have made an allocation for drought relief in advance,” TAU SA said in a statement.

“The earlier farmers who are hit by the drought can be helped back on their feet, the less food needs to be imported. Imports of food will have an adverse impact on the country’s payment balance.”

The cutting of the overall agriculture budget to R6.38bn showed it was not a priority, the organisation said.

The fuel levy would not bode well for farmers.

“This will have a negative effect on the economy, while it will lead to rising food prices.

“Whether it’s a wise decision to allocate as much to emerging farmers while commercial farmers are struggling to keep their heads above water, is an open question.”

South Africa’s petrol and diesel tax amounts to 28%, but after a hefty 80.5c a litre, the tax will increase to 41%.

Finance Minister Nhlanhla Nene will add a staggering R17bn extra that motorists will cough up this year.

Greening a drought

The spray-paint nozzle was aimed carefully at the edge as the painter stood back a few inches from the flat metal shovel meant to protect other surfaces. After laying down a couple of thin coats, he stepped back to admire his work.

The patch of grass had gone from a flat, yellowing green to a Wizard of Oz shade of emerald.

There are few people who see an upside to the record-setting drought in California, but Drew McClellan sees a path to business. Earlier this summer, when a friend began complaining about his browning front lawn, Mr. McClellan thought back to his childhood in Florida, where he often spotted golf courses using sprays to dye their greens. When a brief Internet search failed to show any local business offering a similar service, Mr. McClellan decided it was a prime opportunity.

And since he opened up shop in July, Mr. McClellan has been taking requests faster than he can keep up.

“No matter how weird people might think it is, everyone is getting to the point of considering something drastic,” Mr. McClellan said, taking a break from his other job working as a hair stylist at a retro-style barbershop.

As he and his wife sprayed down the lawn of Tony Felipe, who has lived in Long Beach for nearly 20 years, Mr. Felipe looked on with nods of approval.

For less than $400 — not much more than a regular water bill these days — he could see his lawn instantly turn green.

But even as browning grass or drought-resistant plants are popping up in front of ever more houses, few things are as alluring as a California green lawn, long a symbol of wealth and vitality.

Source: NYT

Drought ravages US after fracking

droughtSome of the most drought-ravaged areas of the US are also heavily targeted for oil and gas development using hydraulic fracturing – a practice that exacerbates water shortages – according to a new report.

Three-quarters of the nearly 40,000 oil and gas wells drilled in the US since 2011 were located in areas of the country facing water scarcity, according to research by the Ceres investor network. Over half of those new wells were in areas experiencing drought conditions.

Hydraulic fracturing, or fracking, in those wells required the use of 97 billion gallons of water, Ceres found.

“Hydraulic fracturing is increasing competitive pressures for water in some of the country’s most water-stressed and drought-ridden regions,” said Mindy Lubber, president of the Ceres green investors’ network.

Lubber warned that the fracking boom across the US puts the industry on a “collision course” with other water users.

Fracking is the highly controversial process of injecting water, sand, and various chemicals into layers of rock, in hopes of releasing oil and gas deep underground. Fracking in a single well can take millions of gallons of freshwater. Much of the drilling has occurred in areas mired in multi-year droughts.

Half of the 97 billion gallons of water used since 2011 for fracking have gone to wells in Texas, a state in the midst of a severe, years-long drought. Meanwhile, oil and gas production through fracking is on track to double in the state over the next five years, the Guardian reported.

The report also found that rural communities in the Lone Star State are being hit hard by the fracking bonanza occurring especially in the Eagle Ford Shale in south Texas.

“Shale producers are having significant impacts at the county level, especially in smaller rural counties with limited water infrastructure capacity,” the report said. “With water use requirements for shale producers in the Eagle Ford already high and expected to double in the coming 10 years, these rural counties can expect severe water stress challenges in the years ahead.”

Levels of vital aquifers that serve local communities near Eagle Ford have dropped by up to 300 feet in the last few years.

Many small communities in areas of heavy fracking in Texas are in dire need of water, as supplies have run out in some places or will dry up soon in others. The Texas Commission on Environmental Quality says 29 communities across the state could run out of water in 90 days, and that many reservoirs in west Texas are at around 25 percent capacity.

In December, the San Antonio Express-News found that fracking was using more water than previously thought. The newspaper reported that in 2012, the industry used around 43,770 acre-feet of water in 3,522 Eagle Ford fracking wells – about the same usage of 153,000 San Antonio households.

“The oil and gas boom is requiring more water than we have,” Hugh Fitzsimons, a Dimmit County rancher and a director of the Wintergarden Groundwater Conservation District, told the Express-News. “Period.”

A separate study published this week found that the industry does a very poor job recycling fracking water in Texas. Researchers at the University of Texas’ Bureau of Economic Geology found that 92 percent of water used in 2011 to frack Barnett Shale in north central Texas was “consumed,” and not recycled. Only about five percent of all water used for fracking in that area has been reused or recycled in the “past few years.”

Other states do not fare well in the Ceres report, either. In Colorado, 97 percent of wells were in areas strapped for water, as demand for fracking water in the state is expected to double to six billion gallons – twice the annual use of the city of Boulder – by 2015.

In California, 96 percent of new wells were located in areas where competition for water is high. A drought emergency for the entire state – which has traditionally dealt with water-sharing and access problems – was declared last month.

The report found similar high percentages of wells built in other states – such as New Mexico, Utah and Wyoming – where water shortages exist.

“It’s a wake-up call,” said Prof. James Famiglietti, a hydrologist at the University of California, Irvine, according to the Guardian. “We understand as a country that we need more energy but it is time to have a conversation about what impacts there are, and do our best to try to minimize any damage.”

Source: RT

Water UK admits fracking compromises water supply

Two industry groups signed a Memorandum of Understanding stating that their members will minimize the impact of onshore oil and gas development in the UK on the country’s water resources.The memorandum accompanies a report released by Water UK. The report concludes that ”where water is in short supply there may not be enough available from public water supplies or the environment to meet the requirements for hydraulic fracturing.”While the aim of the mutual agreement was to give the public greater confidence and reassurance that everything will be done to minimize the effects on water resources and the environment during fracking, some organizations are speaking out against agreement.

“Water is a key concern for people in areas where drilling is proposed, particularly among farmers, who’re worried for their livestock,” said Greenpeace energy spokesperson Anna Jones. ”A voluntary agreement between Water UK and its major new client is unlikely to alleviate these concerns.

Under the memorandum, members of Water UK and UK Onshore Operators Group pledge to work together to identify and resolve risks around water or wastewater including:

Baseline monitoring requirements to assess impacts of onshore oil and gas development on the quality and quantity of local water resources.

Plans relating to site water management, especially water reuse, to improve understanding of local impacts.

Onshore oil and gas company development plans, including scenarios for expansion of exploration and development within a local area and what this means for short and long-term demand for water at specific locations.

The expected volumes and chemical and biological composition of waste water as well as preferred disposal routes.

“This agreement acknowledges that fracking will impact and affect the UK’s water resources and environment,” Jones said. But she also warns, “you will never regulate away the risks of fracking.”

frackingThe UK is not the only nation feeling a strain on water resources from the fracking boom. In the U.S. record temperatures this summer led to water shortages and drought in states like Texas and Colorado.

According to an AP analysis, the vast majority of counties in these states have fracking operations. In October, a report was released showing that the volumes of water used for fracking in the Marcellus Shale states of West Virginia and Pennsylvania are putting a major strain on freshwater reserves.

“The desperate search for shale gas and oil mustn’t be allowed to cause water shortages for critical public purposes,” said Tony Bosworth, a campaigner.

“Fracking is not the solution to our energy problems—it won’t lead to cheaper energy bills,” Bosworth said. “The government should pull the plug on its dash for dirty shale gas and develop Britain’s plentiful renewable power potential.” – wakingtimes.com

Fracking a disaster in drought-stricken regions

fracking2US states suffering a drought are facing a dire water crisis exacerbated by hydraulic fracturing. The procedure consumes vast amounts of water, which has driven up prices and depleted certain aquifers and rivers.

In drought-stricken regions, fracking is taking a serious toll on the water availability of local communities, in some cases turning water into a scarce and expensive resource. The procedure powerfully blasts water, fine sand and chemicals into the ground to shatter rock formations and release oil or gas.

Fracking is occurring in several counties in Arkansas, Colorado, New Mexico, Oklahoma, Texas, Utah and Wyoming, which are currently suffering a severe drought, the Associated Press reports. Although the procedure requires less water than farming or overall residential uses, it contributes to the depletion of an already-scare resource.

Some oil and gas companies manage to drain states of their water supply without spending any money, by depleting underground aquifers or rivers. But when unable to acquire the resource for free, the corporations can purchase large quantities at hefty prices.

“There is a new player for water, which is oil and gas,” Colorado farmer Kent Peppler told AP, noting that he is fallowing some of his corn fields because he can’t afford to irritate them. “And certainly they are in a position to pay a whole lot more than we are.”

Peppler, president of the Rocky Mountain Farmers Union, said that the price of water has skyrocketed since oil companies have moved in. The Meade, Colo. Farmer said he used to pay $9 to $100 per acre-foot of water at city-held auctions, but that energy companies are now buying the excess supplies for $1,200 to $2,900 per acre-foot.

Last year, the city of Aurora sold 2.4 billion gallons of sewer water to the oil company Anadarko for $9.5 billion, AP reports.

With oil and gas companies willing to spend large sums of money on excess sewer water, the cost of this valuable resource has risen across several drought-stricken states. Some local farmers, unable to afford crucial irrigation for their fields, say they are praying for rain.

“I was going to bed every night and praying to the good Lord that we would get just one rain on the crop,” West Texas cotton farmer Charlie Smith told AP, noting that he is selling some of his groundwater to drillers, since it is not enough to irrigate his crops. “I realized we’re not making any money farming, so why not sell the water to the oil companies? Every little bit helps.”

Environmental activists are calling for limitations on drilling in drought-stricken regions.

“We don’t want to look up 20 years from now and say, ‘Oops, we used up all our water,” said Jason Bane of the Western Resources Advocates.

Last summer’s record-breaking drought, which was the worst since the 1930’s Dust Bowl, resulted in a crop shortages that raised prices in US grocery stores. With a lack of water to irrigate crops across the US this year, Americans may once again find rising prices of both water and food.  – RT