How Hillary Clinton’s State Department Sold Fracking To …
This story originally appeared on Mother Jones and is reproduced here as part of the Climate Desk collaboration.
ONE ICY MORNING in February 2012, Hillary Clinton's plane touched down in the Bulgarian capital, Sofia, which was just digging out from a fierce blizzard. Wrapped in a thick coat, the secretary of state descended the stairs to the snow-covered tarmac, where she and her aides piled into a motorcade bound for the presidential palace. That afternoon, they huddled with Bulgarian leaders, including Prime Minister Boyko Borissov, discussing everything from Syria's bloody civil war to their joint search for loose nukes. But the focus of the talks was fracking. The previous year, Bulgaria had signed a five-year, $68 million deal, granting US oil giant Chevron millions of acres in shale gas concessions. Bulgarians were outraged. Shortly before Clinton arrived, tens of thousands of protesters poured into the streets carrying placards that read "Stop fracking with our water" and "Chevron go home." Bulgaria's parliament responded by voting overwhelmingly for a fracking moratorium.
Clinton urged Bulgarian officials to give fracking another chance. According to Borissov, she agreed to help fly in the "best specialists on these new technologies to present the benefits to the Bulgarian people." But resistance only grew. The following month in neighboring Romania, thousands of people gathered to protest another Chevron fracking project, and Romania's parliament began weighing its own shale gas moratorium. Again Clinton intervened, dispatching her special envoy for energy in Eurasia, Richard Morningstar, to push back against the fracking bans. The State Department's lobbying effort culminated in late May 2012, when Morningstar held a series of meetings on fracking with top Bulgarian and Romanian officials. He also touted the technology in an interview on Bulgarian national radio, saying it could lead to a fivefold drop in the price of natural gas. A few weeks later, Romania's parliament voted down its proposed fracking ban and Bulgaria's eased its moratorium.
The episode sheds light on a crucial but little-known dimension of Clinton's diplomatic legacy. Under her leadership, the State Department worked closely with energy companies to spread fracking around the globepart of a broader push to fight climate change, boost global energy supply, and undercut the power of adversaries such as Russia that use their energy resources as a cudgel. But environmental groups fear that exporting fracking, which has been linked to drinking-water contamination and earthquakes at home, could wreak havoc in countries with scant environmental regulation. And according to interviews, diplomatic cables, and other documents obtained by Mother Jones, American officialssome with deep ties to industryalso helped US firms clinch potentially lucrative shale concessions overseas, raising troubling questions about whose interests the program actually serves.
Hillary Clinton is welcomed to Sofia by Bulgarian Foreign Affairs Minister Nikolay Mladenov, left. US Department of State/flickr
GEOLOGISTS HAVE LONG KNOWN that there were huge quantities of natural gas locked in shale rock. But tapping it wasn't economically viable until the late 1990s, when a Texas wildcatter named George Mitchell hit on a novel extraction method that involved drilling wells sideways from the initial borehole, then blasting them full of water, chemicals, and sand to break up the shalea variation of a technique known as hydraulic fracturing, or fracking. Besides dislodging a bounty of natural gas, Mitchell's breakthrough ignited an energy revolution. Between 2006 and 2008, domestic gas reserves jumped 35 percent. The United States later vaulted past Russia to become the world's largest natural gas producer. As a result, prices dropped to record lows, and America began to wean itself from coal, along with oil and gas imports, which lessened its dependence on the Middle East. The surging global gas supply also helped shrink Russia's economic clout: Profits for Russia's state-owned gas company, Gazprom, plummeted by more than 60 percent between 2008 and 2009 alone.
Clinton, who was sworn in as secretary of state in early 2009, believed that shale gas could help rewrite global energy politics. "This is a moment of profound change," she later told a crowd at Georgetown University. "Countries that used to depend on others for their energy are now producers. How will this shape world events? Who will benefit, and who will not?The answers to these questions are being written right now, and we intend to play a major role." Clinton tapped a lawyer named David Goldwyn as her special envoy for international energy affairs; his charge was "to elevate energy diplomacy as a key function of US foreign policy."
"Countries that used to depend on others for their energy are now producers," said Clinton. "How will this shape world events? Who will benefit?The answers to these questions are being written right now, and we intend to play a major role."
Goldwyn had a long history of promoting drilling overseasboth as a Department of Energy official under Bill Clinton and as a representative of the oil industry. From 2005 to 2009 he directed the US-Libya Business Association, an organization funded primarily by US oil companiesincluding Chevron, Exxon Mobil, and Marathonclamoring to tap Libya's abundant supply. Goldwyn lobbied Congress for pro-Libyan policies and even battled legislation that would have allowed families of the Lockerbie bombing victims to sue the Libyan government for its alleged role in the attack.
According to diplomatic cables released by WikiLeaks, one of Goldwyn's first acts at the State Department was gathering oil and gas industry executives "to discuss the potential international impact of shale gas." Clinton then sent a cable to US diplomats, asking them to collect information on the potential for fracking in their host countries. These efforts eventually gave rise to the Global Shale Gas Initiative, which aimed to help other nations develop their shale potential. Clinton promised it would do so "in a way that is as environmentally respectful as possible."
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How Hillary Clinton's State Department Sold Fracking To ...
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