"Frackademia" Strikes Again at USC with "Powering California" Study Release

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โ€œFrackademiaโ€ – shorthand for bogus science, economics and other research results paid for by the oil and gas industry and often conducted by โ€œfrackademicsโ€ with direct ties to the oil and gas industry – has struck again inย California.

It comes in the form of aย major University of Southern California (USC) report on the potential economic impacts of a hydraulic fracturing (โ€œfrackingโ€) boom in California’s Monterey Shale basin that’s hot off the presses, โ€œPowering California: The Monterey Shale and California’s Economic Future.โ€

California Democratic Gov. Jerry Brownย recently gave his cautious support to fracking, the toxic process via which oil and gas embedded deep within shale rock basins made famous by the documentary film โ€œGasland,โ€ย currently a topic of contention in California.ย The new report gleefully says we could be witnessingย 1849 all over again, the second-coming of a โ€œGold Rush,โ€ย a term the co-authors utilize 9 times in theย Preface.ย 

The report, co-authored by a Los Angeles-based public relations firm,ย The Communications Instituteย (TCI), concludes that โ€œdevelopment of the 1,750-square-mile formation in central California could generate half a million new jobs by 2015 and 2.8 million by 2020,โ€ as reported byย The Los Angeles Times, which blared the headline, โ€œTapping California shale oil could add millions of jobs, study says.โ€ย ย 

Given California’s population ofย 37,683,933 people, this would mean 7.4 percent of the state’s citizens can gain employment and economic uplift from the industry. It would also shrink theย 20.3-percent unemployment rate in the Golden Stateย down drastically, to 12.9ย percent.ย 

โ€œThe Monterey shale would help stimulate the California economy to a significant extent,โ€ USC professor and co-author Adam Rose told The Times. โ€œIt’s not just a benefit to the oil industry. These impacts ripple throughout theย economy.โ€ย ย 

While a nice sentiment, the age-old questions quickly arise: who are the authors and who funded thisย study?ย 

The answers to these questions, aย DeSmogBlogย investigation has revealed, paints an entirely different picture of the report’s findings and how it came to such rosyย conclusions.ย 

Study Funded by Big Oil, Co-Author’s Industry Connections Tell theย Story

Off the bat, the report acknowledges financial support – though failing to discloseย how much fundingย – from the Western States Petroleum Asssociation (WSPA). WSPA, โ€œthe oldest petroleum industry trade association in the United States,โ€ has a membership list that includes Chevron, ExxonMobil, Occidental Oil and Gas Corporation and Shell, to name several. All of these corporations are actively involved in exploration and prospective production of the Monterey Shale. ย ย ย ย 

Just as importantly, one of the co-authors of the โ€œstudyโ€ – Fred Aminzadehย – is currently an oil and gas industryย employee.

Aminzadeh serves as a Research Professor and Executive Director at USC‘s Global Energy Network (GEN) and Executive Director of USC‘s Reservoir Monitoring Consortium (RMC) and worked in various technical and management positions atย Unocal – purchased by Chevron in 2005ย – for 17ย years.ย 

GEN, credited as one of the report’s lead conductors, does not list its funders, but given the steep membership fee – ranging between $25,000-$500,000 per year –ย one can safely guess that at least some of its funding comes from the deep pockets of the oil and gas industry. In fact, BP America, ExxonMobil, Chevron, Anadarko and General Electric all have members sitting on GEN‘s Advisory Board.

GEN, according to its website, pays The Communications Institute to do PR work on its behalf,ย and TCI registered the website the report was originally set to be published on,ย poweringcalifornia.org. In essence, this piece of the puzzle serves as Exhibit A of this study serving moreso as industry PR salesmanship than as legitimateย scholarship.

RMC also does not list its funders, but its personnel, like GEN, are also directly tied to the oil and gas industry. All three members of itsย Technical Advisory Board have industry jobs. Andrei Popa works for Chevron; Kurt Strackย is the President of KMS Technologies, an oil services corporation whose clients include BP, Chevron, ConocoPhillips, Shell and Saudi Aramco; andย Wang Shangxu is a professor at theย China University ofย Petroleum.ย 

Prior to coming to USC and after his Unocal stint, Aminzadeh was the CEO of dGB Earth Sciences USA, self-described as aย firm that offersย โ€œinnovative seismic interpretation solutions to the oil and gasย industry.โ€

Though he conveniently leaves it out of the biography he included in the report, Aminzadeh, alongside the paycheck he earns at USC, also serves as Founder andย President of FACT-Corp.ย FACT is a global oil and gas industry consultancy firm whose technology partners includeย dGB Earth Sciences, where he used to be the CEO, as well as clients such as Chevron, BP, Saudi Aramco andย Eni.ย 

Aminzadeh is also Chairman of the Advisory Board of bothย Western Standard Energy Corp. and is also on the Advisory Board of Saratoga Resourcesย and formely served on the DOEย Unconventional Resources Technology Advisory Committeeย from 2007-2008, right as the fracking boom was beginning in the U.S.

The latter committee was created under the dictates of the Energy Policy Act of 2005 inย Sec. 999, which calls for the DOE to work with oil and gas industry stakeholders to โ€œcarry out a program of research, development, demonstration, and commercial application of technologies forโ€ฆonshore unconventional naturalย gas.โ€

John Martin – former head of theย now-shuttered SUNY Buffalo Shale Resources and Society Institute (SRSI), peer reviewer of the Inglewood Oil Field environmental impact assessmentย (done by the same contractor the Obama State Department used for the first TransCanada Keystone XL environmental review, Cardno Entrix) that concluded fracking in Los Angeles would have no negative ecological impacts,ย and head of his oil and gas consultancy firm JP Martin Energy Strategy –ย currently serves on theย DOE Unconventional Resources Technology Advisory Committee.ย 

Outside Reviewers Tied to Bigย Oil

The non-peer-reviewed โ€œstudyโ€ wasn’t published in an academic journal, but rather was published โ€œin association withโ€ย TCI – a PR firm – on its website.ย Though not peer-reviewed in accordance to conventional legitimate academic standards, the co-authors did thank three people for โ€œtaking the time to review thisย study.โ€

Two of those three people, it turns out, also have direct ties to the oil and gasย industry.

One of them isย Harvard’s Henry Lee. Hisย CV details his past work as a consultant for General Electric, Gulf Oil and Texaco, the latter of which Chevron purchased as a wholly-owned subsidiary in 2002.ย 

The other:ย Hillard Huntington, Executive Director of Stanford’s Energy Modeling Forum (EMF), is one of 200 members of the National Petroleum Council (NPC). The NPC isย a federally-chartered, corporate-funded advisory committee started by President Harry Truman in 1946, now overseen by the DOE under the dictates of theย Federal Advisory Committee Act of 1972. Its purpose is โ€œto advise, inform and make recommendations to the [DOE] with respect to any matter relating to oil and natural gas, or to the oil and gasย industries.โ€ย 

NPC‘s membership includes former Chesapeake Energy CEO Aubrey McClendon, Chevron CEO John Watson, ExxonMobil former CEO Lee Raymond and current CEO Rex Tillerson, former Shell North America CEO John Hoffmeister, and TransCanada (of contentious Keystone XL fame) CEO Russ Girling, among manyย others.ย 

Huntington’sย EMF is funded by the oil and gas industryย as well, withย partnersย including the likes of Saudi Aramco,ย American Petroleum Institute,ย BP America, Chevron, ExxonMobil andย others.ย 

Public Relations and Advocacy Costumed asย Scholarshipย 

USC‘s report is now theย second case of โ€œfrackademiaโ€ in the state of California in the past half-yearย and another example of the oil and gas industry’s public relations strategy espoused at the Nov. 2011 โ€œMedia & Stakeholder Relations: Hydraulic Fracturing Initiativeโ€ conference held in Houston, TX.

At that same Houston conference in whichย Range Resourcesย PR flack Matt Pitzarella admitted his company utilizes psychogical warfare personnel and techniquesย in the communities in which Range operates, New York Independent Oil and Gas Association’sย S. Dennis Holbrook statedย that it’s crucial for industry to โ€œseek out academic studies and champion with universitiesโ€”because that again provides tremendous credibility to the overall processโ€ becauseย the gas industry is viewed โ€œvery skepticallyโ€ by theย public.

SUNY Buffalo came under fire in the second half of 2012 for partaking in the industry’s shady PR game made public at that Houston conference, ending its SRSI after months of outside agitation from critics. With timeย we’ll see if the same endgame is in-store at USC.ย 

Photo Credit: ShutterStock |ย Bartย Everett

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Steve Horn is the owner of the consultancy Horn Communications & Research Services, which provides public relations, content writing, and investigative research work products to a wide range of nonprofit and for-profit clients across the world. He is an investigative reporter on the climate beat for over a decade and former Research Fellow for DeSmog.

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