Reports: Water

The 2008 global financial crisis left many governments around the world with serious fiscal challenges. Eroded tax bases and growing health and retirement costs created or worsened local budget deficits across the United States, and a sovereign debt crisis rattled the European Union. Instead of confronting these problems head-on, a number of public officials across the globe sought to lease or sell public water and sewer systems to fund ongoing government functions or to pay down liabilities. That is, they have tried to use water privatization to create the illusion of having balanced the budget, when in fact they are just digging the hole deeper.

Promoters of modern drilling and fracking celebrate the industry’s newfound ability to extract oil and natural gas from shale and other tight rock formations, calling it an energy “revolution,” a “paradigm-shifter,” a “rebirth” and a “game changer.” One recent report claims that North America might soon become “the new Middle East,” a net exporter of oil and natural gas. In April 2012, ConocoPhillips’s CEO at the time called shale gas a “blessing.” But for whom is it really a blessing?

Investment bankers and other major financial players are increasingly interested in taking control of water and sewer services across the United States. Private equity vehicles are armed with more than $100 billion for infrastructure worldwide. Although most deals in the U.S. water utility market have involved existing private sector companies, a number of fund managers anticipate that the ongoing fiscal crisis will drive some governments to privatize their water infrastructure. To make that prediction a reality, major financial interests are backing various government proposals that facilitate privatization and private financing of public infrastructure.

Many communities across the country want local public control of their water and sewer services. Municipalization — the purchase of a privately owned system by a local government — is a fairly common occurrence, but for communities unfamiliar with it, the process could appear daunting. This guide provides an overview of the process and a number of logistical considerations involved in government purchases of privately owned water and sewer systems. Although the general procedure is similar, the specifics will vary by situation, partly because every state has its own legal and regulatory framework.

The United Nations General Assembly declared in July 2010 that access to clean water and sanitation is an essential human right, calling on countries and organizations to help provide access for the 884 million people currently without safe drinking water and the more than 2.6 billion people without basic sanitation.

For the past 25 years, emissions trading, known more recently as “cap-and-trade,” has been promot­ed as the best strategy for solving pollution prob­lems. Based on an obscure economic theory that gained prominence in the 1960s at the University of Chicago, it was embraced by the Reagan administra­tion as a replacement for regulating air emissions. Since that time, it has gained acceptance among environmental organizations and the largest environmental funders.

Within the past decade, technological advances in horizontal drilling and hydraulic fracturing, or “fracking,” have enabled the oil and gas industry to extract large quantities of oil and natural gas from shale formations in the United States. However, the practice has proven controversial. Pollution from modern drilling and fracking has caused widespread environ- mental and public health problems and created serious, long-term risks to underground water resources.

In this report, Food & Water Watch reviews the risks and costs of shale development that have been demonstrated in the United States, including economic costs that run counter to industry-backed claims about the economic benefits of the practice.

Food & Water Watch then summarizes the state of shale development in six selected countries: France, Bulgaria, Poland, South Africa, China and Argentina.

Europe Report: Within the past decade, technological advances in horizontal drilling and hydraulic fracturing, or “fracking,” have enabled the oil and gas industry to extract large quantities of oil and natural gas from shale formations in the United States. However, the practice has proven controversial. Pollution from modern drilling and fracking has caused wide­spread environmental and public health problems and created serious, long-term risks to under­ground water resources.

In this report, Food & Water Europe reviews the risks and costs of shale development that have been demonstrated in the United States, including eco­nomic costs that run counter to industry-backed claims about the economic benefits of the practice.

Clean drinking water and wastewater treatment are basic services that societies and governments provide. Water is a necessity for life, and safe water and sanitation are crucial for public health. In July 2010, the United Nations declared access to clean water and sanitation to be a human right. But recognizing the human right to water does not explain how to deliver this right to households. Even with this commitment to enhance water delivery and safety, an estimated 884 million people worldwide lack access to safe water, and 2.6 billion lack access to improved sanitation.