Investors press U.S. shale oil drillers to control flaring
Source: Reuters
Exclusive: Investors press U.S. shale oil drillers to control flaring
By Timothy Gardner
WASHINGTON | Wed Mar 28, 2012 11:40pm EDT
(Reuters) - Investors representing $500 billion in assets are pushing energy companies in the shale oil rush in North Dakota and other states to disclose the amount of natural gas they burn - a practice they see as a wasteful financial risk.
"We want to encourage companies to articulate plans for resolving this issue while shale oil production is still in its relative infancy," said Karina Litvack, the head of governance and sustainable investment at F&C Asset Management.
Litvack is one of 36 investors who sent a letter to 21 oil drillers including Continental Resources Inc (CLR.N), Exxon Mobil (XOM.N), and Chesapeake Energy Corp (CHK.N) asking them to disclose the amount of natural gas they are burning off, or flaring, at shale oil operations in North Dakota, Texas, Colorado and Ohio.
While shale oil drilling has helped reverse a decades old decline in U.S. crude output, the lightening pace of new development may also have an environmental dark side. The investors and others say emissions from flaring and venting natural gas cause air problems and increase global warming.
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Read more: http://www.reuters.com/article/2012/03/29/us-usa-fracking-investors-idUSBRE82S03120120329
