Iceland Gives China the Cold Shoulder

Unlike Russia and the United States, China has no military or commercial presence in the Arctic. To date, Beijing's attempts to remedy the situation have failed. China's hope for a foothold in a European NATO member were dashed, when the Iceland sheep farm Huang Nubo, a former official in the Chinese Communist Party's Propaganda Department, tried to buy was sold to British shale gas fracking billionaire, Jim Ratcliffe, in December, 2016.

(If a student has a globe, this would be a good opportunity to see where a sheep farm in northeastern Iceland would be in relation to the Arctic Circle and to see which other countries are in or near Arctic waters.)

Trading on his relationship with Hjorleifur Sveinbjornsson, his former roommate at Peking University, Huang first visited Iceland in 2010 to establish a China-Iceland Culture Fund to finance meetings of poets. Sveinbjornsson has said Huang was "not an idiot" and did not think Huang's offer to buy the sheep farm for $7 million in 2011 was a front for other than the stated eco-resort purpose.

In 2012 , the state-owned China Development Bank put up $100 million to back Huang's plan to build a luxury hotel and golf course in Grimsstadir, Iceland. In the 100 square mile sheep farm, where snow falls from September to May, Huang claimed that what he called his 100-room, high end, environmentally friendly resort was designed for wealthy Chinese tourists looking for clean air, peace, and quiet.

Since Huang's Zhongkun Group chose a location near oil reserves where China bid for a drilling license on Iceland's northeast coast and also planned to upgrade a landing strip to handle 10 aircraft, a suspicious interior minister rejected a request to exempt Huang from Iceland't laws restricting foreign land ownership. Huang countered with a proposal for a long-term lease arrangement which also was not approved.

 Ratcliffe will own two thirds of the Grimsstadir property; the Icelandic government and other minority investors will own the rest. Ratcliffe says his interest in Iceland is conservation, particularly for protecting area rivers that are important breeding grounds for Atlantic salmon. The Strengur angling club that leases rivers in Grimsstadir expressed pleasure having Ratcliffe as a partner they know as an avid salmon angler who has fished the area for years.

Beijing has made multiple approaches to Iceland. From its vantage point in the South China Sea, China is used to presiding over 30% of the world's ocean-going trade. Looking ahead to the prospect of climate change permitting more traffic through warming Arctic waters, China has expressed an interest in using Iceland as a shipping hub. China's embassy building in Reykjavik is the city's largest. The two countries negotiated a Free Trade Area accord. And, in an attempt to become an observer, China sent its Snow Dragon icebreaker for a stop at Iceland during an Arctic Council meeting of eight nations (Russia, Norway, Denmark, Sweden, Finland, Iceland, Canada, and the United States).

As opposed to China, Russia's oil and gas drilling prospects in the Arctic could improve. Rex Tillerson, currently Exxon Mobil's CEO and U.S. President-elect Donald Trump's choice for Secretary of State, has close ties with Russia.

Invest in Water?

At the end of the movie, The Big Short, there was an item about Michael Burry. He was one of the investors who cashed in on the collapse of the housing market built on a shaky foundation of subprime mortgages that was doomed to fail. Supposedly, Burry now only invests in water,

     Could Burry be noticing that progress in some economic sectors is having a negative impact on water resources? When the French company, Perrier, began exporting mineral water in green glass bottles, it seemed like a hard sell. Now, the hard sell is convincing those who drink bottled water at the world rate of 30 litres per person per year that their consumption is bad for the planet. There is the fuel cost of transporting bottles from one country to another that already has its own safe, unpolluted water supply. Plastic bottles pollute the land in dumps. Insufficient recycling limits how much recycled content is used in bottled water, although efforts have been made to produce bottles out of organic sugarcane waste and to reduce the weight of plastic and glass bottles.

     Data from NASA's space observations show groundwater from 13 of the world's 37 major basins is being depleted faster than it can be restored. Not only the amount of water used by agriculture and business is a concern; water quality and contamination needs to be addressed as well.

     Alternatives to fossil fuel have increased the use of water to produce crops made into bioethanol. That adds to the nearly 70% of the world's accessible freshwater already used by agriculture. Moreover, dams used to produce hydroelectricity create reservoirs that cause the evaporation of water that farmers and others traditionally relied on downstream. Alternative energy sources, such as wind, do not require water.

     Water also is under pressure from factories that dump heavy metals and chemicals from recycled electronics into local lakes and rivers. The winner of the Stockholm Junior Water Prize, 18-year-old Perry Alagappan, does have one remedy that filters 99% of heavy metals out of water through graphene nanotubes that can be cleaned with vinegar and reused. The tubes can be fitted to the taps on sinks at home and in industry. To maximize availability of his invention, Alagappan will not patent his idea.

     Water keeps the equipment that processes data cool. Data centers that have used water-intensive cooling methods to improve energy efficiency now are looking at ways to use recycled rather than potable water in their cooling systems. Also, there is an effort to consider locating data centers in climates, such as Sweden's, where outside air can cool facilities all year.

     While fertilizers increase crop yield, they also cause nitrogen and phosphorous runoff that enables aquatic plants to deplete oxygen and create water dead zones where fish cannot survive. Palestinian farmers are attempting to deal with water shortages by building a wastewater treatment plant to provide water for agricultural use. But even with a major use of electricity, existing technology can only remove 10% to 30% of nitrogen and phosphorus from wastewater. Where 90% of sewage in developing countries is discharged without any treatment, research on algal projects that rely on sunlight to grow algae that can break down nitrogen and phosphates in wastewater and produce sludge for biofuel have promise for agricultural areas, where sun is abundant in Africa, South America, and Asia.

     Fracking, which blasts oil and gas out of shale rock, is viewed as a way to help the United States and other countries become energy independent. As the earlier post, "The Lure of Shale Oil Independence," points out, however, the fracking process is suspected of contaminating water.

     These are just some of the water projects that Burry could be eyeing for investment. By going to kiva.org, you already can invest $25 in a water project that will help a household in India, Vietnam, Cambodia, or Indonesia install a toilet and improve sanitary conditions.

(Water is also the subject of earlier posts, "A Healthy Environment," "Personal Response to the World's Problems," and "Good Works Multiply Fast.")

The Lure of Shale Oil Independence

With oil trading at over $70 a barrel, demand up, and questions about supply from Iran and elsewhere, interest in fracking has rebounded in September, 2018. Soft oil and gas prices in 2015 and 2016 had dampened enthusiasm for investments in shale oil. BHP Billiton, the Australian-based metals and energy company, took a $4.9 billion write-off in January, 2016, on its shale oil investment in the United States. In the short and medium term, BHP saw shale too expensive to compete with traditional oil and gas production.  BHP expected its shale investments to be profitable in the long run, however. As soon as crude edged toward $70 a barrel in early August, 2018, BHP sold its US shale holdings to BP for $10.5 billion.

     What if there is a shale oil deposit under your home? Fracking, which blasts oil and natural gas out of shale rock, has caused countries to ignore serious consequences. (See the earlier post, "North Pole Flag.")

      President Obama favored energy renewables over fracking. At the moment, wind and solar technologies need fossil fuel backups for windless, cloudy days and nighttime, but Bill Gates, who just announced his intention to invest a billion dollars in clean energy, said government investment in innovations research will lead to even more private investment in technologies that will overcome the need for fuels that contribute to greenhouse gases.

     While ignoring private property rights is just one of the problems associated with fracking, or hydraulic fracturing, protesters in England drew attention to the need to consider this fracking drawback by erecting a satiric sign outside the country home of British Prime Minister, David Cameron, this month. The sign apologized for the inconvenience caused by setting up fracking operations under his home without permission.

     With its economy dependent on income from oil and natural gas, Russia is said to be funding anti-fracking groups. While this may or may not be true, there are legitimate reasons for concern about the fracking process. To  release trapped oil and natural gas, at high pressure, companies pump fluid composed of 99% water and sand and 1% chemicals into dense rock formations thousands of feet below ground. Companies, such as Royal Dutch Shell, which has a contract with China's Sinopec Corp. to exploit shale gas deposits in the Sechuan Basin and Ordos, try to reassure people that the wells they drill are far below drinking water supplies and that they isolate water supplies from fracking fluids by inserting concrete and steel barriers into their wells. Considering the shortage of clean water in eight of the 20 countries with the largest shale gas resources, it does not seem wise to base the safety of water supplies on company assurances.

     Although Algeria, for example, is believed to have the world's third or fourth largest recoverable shale gas reserves, protesters are more concerned about potential damage to the delicate aquifer system that furnishes water for people, animals, and crops not only in Algeria, but also in Libya and Tunisia. Fear that Halliburton's $70 billion hydraulic fracking project would pollute ground water and disturb the environment set off a violent protest in Ain Salah, a rural Algerian town in the Sahara Desert. Early in 2015, demonstrations spread to at least three other towns and Algiers. Deep well drilling to increase the amount of water needed for fracking can have an impact on local water sources and a cumulative effect that causes water levels to drop in lakes farther away. Flowback of the water and chemicals used in fracking plus the radioactive materials picked up deep in the earth is stored in plastic-lined open pits at drilling sites. While some of this toxic stew is trucked away and treated to remove toxins, the rest is released into streams and rivers that pollute drinkable water.

    Since companies are not required to disclose what chemicals they are using, there is no way to test the effect they have underground. I am reminded of the birds on an island in the North Pacific Ocean who are dying because of eating debris from humans over 1,250 miles away. Although bottle caps, cigarette lighters, and razor blades thrown into the ocean disappear, they can do plenty of harm.

     The sand drilling companies blast into shale helps hold cracks open to let oil and natural gas flow to the wellhead. Mining this sand brings noise, truck and rail traffic, and fine silica dust pollution to the population in areas where often there are no nonmetallic mining laws to regulate the hours, trucking routes, and other aspects of sand mining operations. People living near (a half mile away or closer) a sand mine have developed asthma and needed to use an inhaler. They cannot open their windows and have to install air filtration systems in their homes. Since signing a contract with a sand mining company can make a landowner wealthy, individuals have an incentive to ignore the disappearing hills, lung damage, and other consequences that can come with sand mining. Product manufacturers and commodity producers, however, that are having shipping delay problems because they are competing for rail capacity with frac sand are beginning to complain.

    Also, sand mines can use between 420,000 and two million gallons of water a day. To remove impurities from the sand, the chemical, polyacrylamide, which has traces of a known carcinogen, can enter surface and ground water at a mine site from wastewater ponds.

     The Food and Water Watch organization, which began sponsoring a Global Frackdown three years ago, opposes UN efforts to include fracking in its Sustainable Energy for All Initiative. The many problems associated with fracking do not justify including the process in the same category as renewable wind and solar energy sources. The organization, Americans Against Fracking, which pulls together groups working to ban fracking helped New York ban the process after a two-year investigation concluded that fracking could not be done safely. A bill now pending in the U.S. Congress would ban fracking on public lands, where it already has begun in Pennsylvania's Allegheny National Forest, and Virginia has agreed to allow it in the George Washington National Forest.

     Finally, there is concern about the possibility that fracking can cause earthquakes, such as the small ones geologists discovered in Ohio in April, 2014. Clearly, there is a need for tough permit requirements, when a fault already exists near drilling operations.

     As more and more people around the world rely on industrial jobs and demand heat, air conditioning, and cars, care for the environment will come up against pressure to find new sources of oil and natural gas. What projects will students develop to help adults see the unseen effects of dangerous extraction methods?