EXTRACTED: Daily News Clips 10/18/22
PIPELINE NEWS
Reuters: Enbridge says it agreed to pay $11 mln on Line 3 pipeline penalties
KARE: Minnesota AG charges Enbridge for aquifer breach in northern Minnesota
Law360: Wis. Judge Says Pipeline Shutdown Plans Admissible
Iowa Capital Dispatch: Pipeline survey injunction hearings to be delayed to next year
The Gazette: How much ‘net’ CO2 would pipelines remove?
AgWeek: Summit Carbon Solutions files for pipeline permit in North Dakota
The Gazette: Eastern Iowa statehouse hopefuls air opposition to forced land sales for CO2 pipelines
Santa Barbara Independent: ExxonMobil Buys Two Pipelines from Company Responsible for 2015’s Refugio Oil Spill
CBS Los Angeles: Hazmat team called to Harbor City for ruptured pipeline along railroad
The Oregonian: Jury awards $10.4M for trauma suffered in pipeline explosion in NW Portland
WASHINGTON UPDATES
E&E News: Big Oil makes new bid for Supreme Court climate showdown
STATE UPDATES
Carlsbad Current-Argus: $1.6 billion in oil and gas assets sold in Permian Basin merger as market recovers
EXTRACTION
Toronto Star: Canada says its logging industry’s emissions are below zero. A new report says they’re actually on par with the oilsands
Canadian Press: TC Energy invests in renewable natural gas project at Jack Daniel distillery
Calgary Herald: Varcoe: Oil prices are high but where's the boom, new report asks
OilPrice.com: Global Oil And Gas Exploration Dives Nearly 60% In 2022
CLIMATE FINANCE
Philadelphia Inquirer: Princeton has cut ties with 90 fossil fuel companies. Fossil Free Penn said there’s more to do.
OPINION
Food & Water Watch: Cashing In On Carbon Capture: How Big Oil Will Spend Our Money
Corporate Knights: Memo to CPPIB: There’s no such thing as ‘no-carbon oil’
PIPELINE NEWS
Reuters: Enbridge says it agreed to pay $11 mln on Line 3 pipeline penalties
10/17/22
“Enbridge Inc. said on Monday it has reached an agreement on penalties over its Line 3 oil pipeline replacement project and that it will pay $11 million to various Minnesota regulators and the Fond du Lac Band of Lake Superior Chippewa,” Reuters reports. “The Canadian company said $7.5 million of the total will be used to provide financial assurances and fund multiple environmental and resource enhancement projects, as part of the agreements with the Minnesota regulators and the Fond du Lac Band of Lake Superior Chippewa. The Minnesota attorney general would file a misdemeanor criminal charge for taking water without a permit at the Clearbrook aquifer, a charge that would be dismissed after the company adheres to one year of compliance with state water rules, Enbridge said in a news release. The replacement project, announced in 2014 and amounting to roughly $8.2 billion, was opposed by environmental and Native American groups, particularly in the last stage of the expansion in Minnesota.”
KARE: Minnesota AG charges Enbridge for aquifer breach in northern Minnesota
Alexandra Simon, 10/17/22
“Minnesota Attorney General Keith Ellison's office announced Monday that Enbridge Energy Limited Partnership, the owner and operator of the Line 3 pipeline project in northern Minnesota, admitted to breaching an aquifer during construction and delayed notifying the Minnesota Department of Natural Resources,” KARE reports. “Enbridge, which was charged with a misdemeanor for appropriating state waters without a permit through construction by Ellison's office, admitted that the Jan. 2021 breach in Clearwater County led to an uncontrolled flow of groundwater and that the company should have realized the breach was the result of their own construction. According to the AG's office, this is the only criminal charge available under current Minnesota law. Ellison's office and Enbridge agreed that in exchange for their admission, a fine payment of $1,000, and an agreement that they'll remain law abiding in the future, the charge against Enbridge would be dismissed after one year. The criminal charge from Ellison's office dovetails with the announcement from the Minnesota Pollution Control Agency, Minnesota Department of Natural Resources and Fond du Lac Bank of Lake Superior Chippewa that Enbridge will pay more than $11 million after an investigation identified water quality violations and three aquifer breaches related to Line 3 pipeline construction… “The facts that Enbridge admits today about its breach of the aquifer constitute in the State’s view a criminal violation of the law. Corporations rarely admit facts that constitute a violation of criminal law. Unless and until the Legislature changes the law, a misdemeanor is the only charge against Enbridge the State can support with probable cause under current state law. I am pleased that the agreement we have reached with Enbridge is greater than any penalty we could have won against Enbridge at trial,” Attorney General Ellison said in a statement.
Law360: Wis. Judge Says Pipeline Shutdown Plans Admissible
Johnathan Capriel, 10/17/22
“Pipeline owner Enbridge Energy Co. isn’t going to be able to claw back all the documents it accidentally turned over in its fight with tribal leaders who want the pipeline rerouted, a Wisconsin federal judge has ruled,” Law360 reports.
Iowa Capital Dispatch: Pipeline survey injunction hearings to be delayed to next year
JARED STRONG, 10/14/22
“Navigator CO2 Ventures will not get access to several properties to conduct land surveys before the ground freezes this year, according to court records,” the Iowa Capital Dispatch reports. “The company — which seeks to build a carbon dioxide pipeline across the entire state — sued four sets of northern Iowa landowners in August, claiming they have prevented its agents from doing the surveys… “Navigator has sought temporary injunctions against the landowners to permit the work, but a judge recently ruled against one of the requests in Woodbury County because it would have effectively ended the need for further litigation. The landowners are arguing that a state law that grants pipeline companies access to their lands is unconstitutional, and they have sought their own injunctions to bar Navigator from conducting the surveys… “In a recent court filing in one of the cases, Navigator said it has reached an agreement with the landowners that would expedite the trials for the lawsuits but delay any decisions about the injunctions until next year. The first case would be set for trial in January or February, with the other three to follow shortly thereafter, court records show. One of the trials has previously been set for April. There are also three pending lawsuits that pertain to another company’s plans to build a similar pipeline in western and northern Iowa. Summit Carbon Solutions seeks similar injunctions to conduct the surveys. A hearing for a temporary injunction in one of the cases is set for Oct. 24.”
The Gazette: How much ‘net’ CO2 would pipelines remove?
Erin Jordan, 10/14/22
“A 2,000-mile carbon dioxide pipeline proposed for northern and western Iowa would have the capacity to store CO2 equal to emissions from 3.9 million automobiles — more than the number registered in Iowa in 2020,” The Gazette reports. “But skeptics say you have to factor in emissions from building and maintaining the pipelines as well as from growing corn to make ethanol — the primary industry supplying CO2 for the pipelines. “So while you’re putting 10 million metric tons underground, you’re emitting one to two (million metric tons) from operations and so you have to do the net, right?” said Charles Stanier, a University of Iowa engineering professor who served on Iowa’s Carbon Sequestration Task Force. Stanier was joined by John Satterfield, Summit’s director of regulatory affairs, and Bill Caram, executive director of the Pipeline Safety Trust, for a panel discussion this week titled “Carbon dioxide pipelines: Do they have a public benefit?”.. “Because carbon sequestration still is relatively new, with less than 1 percent of all U.S. underground pipelines transporting CO2, the government needs to catch up with regulations to make sure pipelines are safe, said Caram, whose Washington state group advocates for pipeline safety. “There are no regulations for corrosive or toxic impurities in the pipeline,” Caram said. “There’s no requirement for an odorant. So people might not know there’s been a CO2 pipeline rupture as they’re getting asphyxiated.” “...Summit now is meeting with emergency responders on the proposed pipeline route to talk about the project and what types of equipment or training crews might need in case of a leak or explosion. As part of the permitting process, state regulators can require companies to get insurance for these types of emergencies, the Pipeline Safety Trust reported.”
AgWeek: Summit Carbon Solutions files for pipeline permit in North Dakota
Jeff Beach, 10/17/22
“Summit Carbon Solutions, which plans to capture greenhouse gas emissions from ethanol plants and pipe liquid carbon dioxide to western North Dakota for underground storage, has filed for a pipeline permit in North Dakota,” AgWeek reports. “The massive five-state project has the backing of North Dakota Gov. Doug Burgum and investors such as oil development company Continental Resources, but it also has inspired some landowners, county governments and environmental groups to band together in opposition to the pipeline and Summit's potential use of eminent domain to obtain right-of-way for the hazardous materials pipeline. Summit announced its application with the North Dakota Public Service Commission on Monday, Oct. 17, setting in motion the process for finalizing the route and taking public comment. Summit Carbon also will need a permit from the North Dakota Industrial Commission for the underground storage in Mercer and Oliver counties… “Summit says it would invest nearly $900 million in North Dakota as part of what it has called a $4.5 billion project that is essential to the future of ethanol… “The pipeline would run through Cass, Richland, Sargent, Dickey, McIntosh, Logan, Emmons, Burleigh, Oliver, Morton and Mercer counties in North Dakota. Some of the those counties have passed resolutions against the use of eminent domain. Emmons County went a step further, with a requirement of 100% voluntary easements and a huge fee for a conditional use permit… “But Summit also is involved in lawsuits and countersuits with landowners who refuse to even allow access to survey crews from Summit. The Dakota Resource Council, a North Dakota-based environmental stewardship group, has made landowner rights and the carbon storage project the focus of its upcoming annual meeting Oct. 29 in Bismarck. Among those on the schedule are prominent North Dakota attorney Derrick Braaten… “Opponents cite potential problems such as damage to farmland, negative effects on property vales and safety hazards. A carbon dioxide pipeline rupture in Mississippi in 2020 that hospitalized 45 people is often cited as evidence of the dangers.”
The Gazette: Eastern Iowa statehouse hopefuls air opposition to forced land sales for CO2 pipelines
Erin Jordan, 10/15/22
“The majority of Eastern Iowa political candidates seeking seats in the state Legislature who responded to a survey say they oppose using eminent domain for carbon dioxide pipelines,” The Gazette reports. “Most of the opponents did not think Iowa landowners should be forced to sell easements on their land for a private pipeline with an unproven public benefit. Eminent domain “is traditionally used for roadways, water supply, constructing public buildings, and in some cases to aid in defense readiness,” state Rep. Molly Donahue, D-Cedar Rapids, who is running for Iowa Senate District 37, responded to an issues survey sent to Eastern Iowa candidates by the The Gazette. “The CO2 Pipelines do not provide a betterment to the communities in amenities, or safety — nor is there monetary value to increase the state revenue, because it is a private for profit company,” she said… “But Iowa lawmakers can influence the process. Earlier this year, the Legislature considered a yearlong moratorium on using eminent domain for CO2 pipelines. The measure failed. The Gazette sent a 16-question survey about various issues to 51 Eastern Iowa candidates for the Iowa Legislature, including candidates in both parties. Twenty-two candidates have not responded. The survey was sent in September to the email addresses they filed with the Iowa Secretary of State. Of 29 Eastern Iowa candidates for Iowa House or Senate who did respond to the survey, 21 said they did not think the board should grant eminent domain rights for CO2 pipelines. Of the 21 who oppose use of eminent domain, 18 are Democrats, three are Republicans. Eight other candidates, including four Republicans, said they have reservations about forcing easements, but left the door open to it for carbon capture pipelines.”
Santa Barbara Independent: ExxonMobil Buys Two Pipelines from Company Responsible for 2015’s Refugio Oil Spill
Nick Welsh, 10/17/22
“ExxonMobil has purchased a 123-mile stretch of two pipelines — 901 and 903 — from Plains All American Pipeline, the responsible party for the May 2015 pipeline rupture and oil spill that effectively shut down all oil production off the coast of Santa Barbara County at Las Flores Canyon,” the Santa Barbara Independent reports. “ExxonMobil and county energy planners have confirmed the sale took place, but the sale price is not being publicly released. The deal now puts ExxonMobil directly in the driver’s seat in seeking permits to replace the two stretches of corroded pipeline needed to get the company’s oil from its processing plant at Las Flores canyon to Sisquoc and from Sisquoc to refiners located in Pentland. The acquisition comes just a few months after the Santa Barbara County Board of Supervisors voted 3-2 to deny ExxonMobil’s request to truck its Las Flores Canyon oil to Pentland. ExxonMobil vowed to sue the county for that denial, but the rejection puts greater urgency on ExxonMobil’s need to get the defective pipeline replaced. The permit application process for Pipelines 901 and 903 promises to take many years — seven is the rough estimate — and involve multiple state, federal, and local jurisdictions. It is currently stalled pending the submission of certain information needed to reactivate the preliminary environmental review process. In May 2015, 2,940 barrels of oil escaped from Plains All American’s Line 901 — determined to have become badly corroded — along the Gaviota Coast, with about 500 barrels making it into the ocean. Since several oil companies relied on that pipeline for their offshore production, the rupture effectively put them either out of commission, like ExxonMobil, or out of business, like Venoco.”
CBS Los Angeles: Hazmat team called to Harbor City for ruptured pipeline along railroad
DANIELLE RADIN, 10/17/22
“A hazardous materials team was called to Harbor City Monday after an apparent rupture of a subterranean pipeline along the railroad right-of-way, according to the Los Angeles Fire Department,” CBS Los Angeles reports. “It happened at 1676 W. Oakhorne Drive around 8:30 a.m. Firefighters said the rupture was accompanied by loud sounds and the apparent leak of an unspecified type of liquid. The flow of the liquid has been controlled by workers in the area reportedly performing pipeline-related maintenance.”
The Oregonian: Jury awards $10.4M for trauma suffered in pipeline explosion in NW Portland
Zane Sparling, 10/17/22
“A NW Natural employee and a salon worker won a combined $10.4 million at trial after a jury found they suffered hearing loss and emotional trauma when they narrowly escaped a natural gas explosion that rocked a Portland neighborhood in 2016,” The Oregonian reports. “Lawyers for gas leak investigator Eric Rader and Dosha stylist Kristen Prentice said both suffered life-altering changes, including post-traumatic stress disorder, after an excavator struck a buried gas pipeline in the Northwest District on Oct. 19, 2016. Rader had found high levels of gas inside a corner bagel shop and warned firefighters to flee shortly before the blast obliterated the three-story commercial building at Northwest 23rd Avenue and Glisan Street and gutted a neighboring structure. “The reading on his gas meter indicated extreme risk,” said Greg Kafoury, the attorney for Rader and Prentice. “Rader notified nearby first responders, saving many who might otherwise have been consumed by the inferno.” Prentice was about to enter the salon next door when firefighters alerted her to the danger. Both took shelter nearby as multiple explosions shook the earth, plumes of smoke and flames erupted into the sky and showers of debris rained down, according to the two lawsuits, which were tried jointly in Multnomah County Circuit Court. Rader and Prentice are now permanently afflicted with hearing loss and painful sensitivity to loud noises, Kafoury said. Prentice has been unable to work and relies on an assistance dog to calm her anxiety, the attorney said. On Thursday, a jury awarded $6.5 million to Prentice and $3.9 million to Rader — the largest payout to date in the cascade of litigation that followed the blast. Jurors found contractor Loy Clark Pipeline Co. liable for both of the workers’ medical expenses and lost earnings. Each award included $2.3 million in punitive damages, though about 70% of that money will be directed to a state crime victims fund under Oregon law.”
WASHINGTON UPDATES
E&E News: Big Oil makes new bid for Supreme Court climate showdown
Lesley Clark, 10/18/22
“Lawyers for the oil and gas industry are asking the Supreme Court for help in a second climate liability lawsuit, arguing that without the justices’ intervention, U.S. energy policy “may be decided by juries in state courts,” E&E News reports. “Attorneys for Chevron Corp., BP PLC and Exxon Mobil Corp. on Friday petitioned the justices to overturn a lower court decision that delivered a procedural victory to the city of Baltimore, which is suing the companies to pay potentially hundreds of billions of dollars for spewing emissions that have led to flooding, erosion and other climate impacts. The companies’ plea marks the second such request from the oil industry in recent months, and — if the case becomes one of the tiny few that the justices grant — it would provide the Supreme Court a second shot at a jurisdictional question that for years has stymied Baltimore’s climate liability lawsuit and nearly two dozen others like it. In response to a related Supreme Court petition stemming from a similar lawsuit from Colorado governments, the justices on Oct. 3 invited the Biden administration to share its views on whether climate liability lawsuits belong in the state courts where they were originally filed or in federal courts, where oil and gas companies believe they are more likely to prevail… “In the Baltimore petition, oil industry attorneys noted that before President Joe Biden took office, the federal government “expressed the view that climate change claims similar to those alleged here are removable” to federal court “because they are inherently and necessarily federal in nature.” They referred to the Trump administration’s stance on the jurisdictional dispute. The Biden administration has yet to give its opinion, although the president promised during his campaign to support the climate litigation.”
STATE UPDATES
Carlsbad Current-Argus: $1.6 billion in oil and gas assets sold in Permian Basin merger as market recovers
Adrian Hedden
“A Midland, Texas-based oil and gas operator planned to expand its operations in the Permian Basin in a $1.6 billion deal intended to consolidate fossil fuel assets and capitalize on ongoing growth in the region,” the Carlsbad Current-Argus reports. “Diamondback Energy announced its purchase of FireBird Energy Oct. 11, paying $775 million in cash and 5.6 million shares of Diamondback valued at about $140 a share. The transaction included about 75,000 acres in the eastern Midland sub-basin of the Permian, producing about 22,000 barrels of oil equivalent per day (boe/d), expected to rise to 25,000 boe/d… “Diamondback Chief Executive Officer Travis Stice said the company plans to also sell off about $500 million in assets from other regions by the end of 2023 to pay of debt… “Another Permian Basin land sale announced Oct. 11 saw a Minnesota-based company continue to grow its presence in the region, buying up $130 million in acres in the western Delaware sub-basin, covering Eddy and Lea counties in New Mexico and Living and Winkler counties in West Texas. That deal included about 2,100 acres, five producing wells and two in the process of being completed, along with about 17 undeveloped locations… “This sale was the latest in a string of purchases by Northern Oil and Gas, following a $110 million transaction closed Oct. 6 that saw the company buy 1,600 acres and six producing wells in Howard County in the Midland Basin, and a $157 million purchase of 2,800 acres in Eddy and Lea counties and Loving County, Texas.”
EXTRACTION
Toronto Star: Canada says its logging industry’s emissions are below zero. A new report says they’re actually on par with the oilsands
Marco Chown, 10/18/22
“A quick internet search will get you the carbon footprint of just about anything, whether it’s a car, a flight or even a whole country. But it’s really hard to figure out the carbon emissions produced by logging. In fact, the closest number the federal government publishes is actually below zero,” the Toronto Star reports. “That’s because, according to Ottawa, the forestry industry sucks more carbon out of the atmosphere than it emits. This didn’t sit right with the analysts at Nature Canada and the Natural Resources Defense Council, who decided that you can’t address a problem you can’t measure and set out to put a realistic number on logging industry emissions. Their report, published Tuesday, shows that rather than being a sustainable, net-zero practice, logging produces carbon emissions on par with Alberta oilsands production. The oilsands emit 81 megatonnes of carbon annually, while the report finds Canada’s logging industry emits 75 Mt — more than 10 per cent of all emissions nationwide. And this number comes from the government’s own emissions reporting. “We really dug into the accounting and found very significant flaws, omissions and artifices in how Canada was presenting their emissions,” Jennifer Skene, natural climate solutions policy manager with the Natural Resources Defense Council told the Star… “Counting in this way is fundamentally flawed because it gives the logging industry carbon credits for all the trees it didn’t cut down, Skene told the Star. It allows the industry to take credit for the carbon sequestration performed by nature, by trees that regrew naturally after forest fires without any human intervention… “If that sequestering number is removed, forestry goes from helping Canada cut greenhouse gas emissions to standing in the way.”
Canadian Press: TC Energy invests in renewable natural gas project at Jack Daniel distillery
Amanda Stephenson, 10/17/22
“TC Energy Corp. has announced it will invest $29.3 million in a facility that will use a byproduct from the famed Jack Daniel Distillery in Lynchburg, Tenn., to make renewable natural gas,” the Canadian Press reports. “The facility, owned by Lynchburg Renewable Fuels LLC and being developed by 3 Rivers Energy Partners LLC, will break down the byproduct from the whiskey distilling process to generate methane gases recovered as biogas. A biogas upgrade plant will then remove contaminants to produce pipeline-quality renewable natural gas that will be directly connected to a local natural gas utility. Liquid fertilizer will also be produced in the process, and then stored and distributed to meet local agricultural demand. Renewable natural gas, or RNG, is a non-fossil fuel form of natural gas that is generating a great deal of interest as concerns about climate change intensify… “However, the Jack Daniels facility marks the company's first investment in the production of RNG. TC Energy and 3 Rivers Energy Partners have also committed to jointly develop future renewable natural gas projects… “Enbridge Inc., along with partner Vanguard Renewables, has announced plans to build eight RNG facilities across the United States, while Suncor Energy Inc. has decided to sell off its wind and solar assets in favour of focusing on hydrogen and renewable natural gas instead.”
Calgary Herald: Varcoe: Oil prices are high but where's the boom, new report asks
Chris Varcoe, 10/17/22
“Where’s the boom? This provocative question is also the title of a new report by Alberta Central’s chief economist about the state of the province in a new era of high energy prices,” the Calgary Herald reports. “The study notes revenues from oil produced in the province have surged this year, averaging about $12 billion a month, or about 75 per cent above levels reported eight years ago. Buoyant oil prices and increased production are having an effect, although Alberta isn’t seeing a major economic boom to match the one that unfolded a decade ago. Report author Charles St-Arnaud told the Herald lower capital spending by petroleum producers from record levels seen in 2014, along with the return of more cash to investors — with most shareholders residing outside Canada — and a sharper focus on expenditures to improve efficiency have altered the dynamic in Alberta. “Despite oil production and revenues reaching record levels, Alberta is far from experiencing an economic boom similar to what we saw in the mid-2010s and the 2000s,” the study states. “This is because the nature of the oil industry has changed, likely forever, and its impact on the economy has weakened.” This shift has consequences for Alberta’s economic outlook. Growth is now less sensitive to gyrating oil prices and the “lack of boom may also mean a small bust when oil prices drop, leading to reduced economic volatility,” the report notes. The absence of an economic boom is also the direct result of a smaller share of oil revenues staying within the province, it adds.”
OilPrice.com: Global Oil And Gas Exploration Dives Nearly 60% In 2022
Alex Kimani, 10/17/22
“President Joe Biden has repeatedly urged U.S. oil companies to step up production in a bid to increase oil supply and ease fuel prices,” OilPrice.com reports. “However, it appears his pleas have been falling on deaf ears considering the dearth of oil and gas exploration--which is, of course, perfectly understandable given his historic hostility toward fossil fuels as well as the very real risk that new drilling won't pay off over the long term. When the energy crisis hit a nadir two years ago, highly indebted oil and gas companies quickly changed their playbook, adopting stricter cost discipline, cutting back on expensive drilling programs and vowing to return more cash to shareholders in the form of dividends and buybacks. Many energy companies are still reluctant to go back to their trigger-happy exploration and drilling days despite high oil and gas prices and record profits, and have mainly been falling back on their dwindling stocks of drilled but uncompleted wells (DUCs) to keep going. Norwegian energy intelligence firm Rystad Energy has revealed that a mere 44 oil and gas lease rounds will take place globally this year, the fewest since the year 2000 and a far cry from a record 105 rounds in 2019.”
CLIMATE FINANCE
Philadelphia Inquirer: Princeton has cut ties with 90 fossil fuel companies. Fossil Free Penn said there’s more to do.
Susan Snyder, 10/18/22
“Princeton University’s board of trustees last month announced it would take steps to “dissociate” from 90 companies related to the fossil fuel industry, 10 with which the university has current or recent financial involvement,” the Philadelphia Inquirer reports. “A faculty panel helped to identify the 90 companies, which Princeton said are active in the thermal coal or tar sands areas of the fossil fuel industry… “Among the companies are Exxon Mobile Corp., China Energy Investment Corp., and Peabody Energy Corp. Fossil fuel divestment has been a hot issue on college campuses for more than a decade, with groups of students and faculty concerned about the environment pushing for their schools to get out of the investments, with some success. Princeton said it also would sell off from its endowment any investments in publicly traded fossil fuel companies and aim to eventually have an endowment with “net zero” carbon emissions… “Fossil Free Penn lauded Princeton’s steps in a statement, noting that it particularly liked that the university wasn’t just divesting but dissociating — which more broadly includes any sort of financial arrangement, including research funding — from the companies. But, the group said, Princeton should have included more companies on its list, such as BP, Chevron, and Shell. “While this is a commendable step in the right direction, one which FFP hopes Penn will follow, it is not full divestment,” the group said. “Princeton and Penn both have more work to do.” The group said Penn should “publicly pledge to divest the endowment from all indirect and direct fossil-fuel related assets in all types of funds by 2025″ as well as “cut all ties with the fossil fuel industry, its financiers, and its upholders. This includes disqualifying individuals who hold positions in fossil fuel corporations or financiers from holding trustee or administrative positions at Penn, refusing all research funding and donations from the fossil fuel industry, and banning oil and gas companies from on-campus recruiting and career fairs.”
OPINION
Food & Water Watch: Cashing In On Carbon Capture: How Big Oil Will Spend Our Money
Jorge Aguilar, 10/17/22
“The crises of the past few years have done a number on our economy,” Jorge Aguilar writes for Food & Water Watch. “...Recently, our elected officials have passed two major legislation packages that aim to bring relief to workers and families. These packages have also been touted as environmental wins that will help us fight and adapt to climate change. But they also came with major gifts to Big Oil… “In one of the greatest heists of our climate crisis, the companies responsible for the crisis are raking in billions of our taxpayer dollars. And much of that money is being poached through the industry’s latest scam — carbon capture and storage… “In fact, the corporations responsible for the climate crisis stand to profit from many of the carbon capture projects planned. Thanks to all the recent hype, ExxonMobil announced it expects the carbon capture market to grow $2 trillion through 2040. It’s now positioning itself as a major player in that field, despite their disinterest in clean energy so far. That’s because rather than combatting climate change, carbon capture will only prolong the fossil fuel industry. This technology is incredibly energy-intensive. Food & Water Watch found that if every power plant in the U.S. were retrofitted with it, we would use more natural gas and coal than we already do (39 and 43% more, respectively). Moreover, while proponents claim all the carbon will be stored safely underground, that hasn’t played out so far. At least 95% of CO2 currently captured is used to push more fossil fuels out of the ground via enhanced oil recovery… “Now, this year’s Inflation Reduction Act will grow the 45Q program, allowing companies to “earn” even more money per ton of captured CO2 claimed. The IRA also lowered the amount of carbon a facility can claim to sequester to qualify for the tax credit. As a result, a congressional research agency estimates that 45Q alone will cost taxpayers $3.2 billion over the next 10 years… “There are plenty of important investments our tax dollars could fund. From renewable energy deployment and climate resilience, to infrastructure improvements and programs supporting working families. But right now, Big Oil is sweet-talking Congress into funneling our money toward their carbon capture scam. We can’t let them get away with it any longer.”
Corporate Knights: Memo to CPPIB: There’s no such thing as ‘no-carbon oil’
Adam Scott is director and Patrick DeRochie is senior manager for Shift Action for Pension Wealth and Planet Health, 10/17/22
“Last month, the Canada Pension Plan Investment Board (CPPIB) released its 2022 Report on Sustainable Investing, highlighting its commitment to be net-zero by 2050 and its engagement strategy to pressure companies to manage climate risks,” Adam Scott and Patrick DeRochie write for Corporate Knights. “Our $523-billion national pension manager is making big promises to decarbonize its portfolio by making large investments in climate solutions, pledging to report its absolute emissions, and using its influence and capital to help transition high-carbon industries. It’s potentially a smart approach, but it stands in stark contrast to public commitments CPPIB officials have made to continue investing in fossil fuels. At the end of September, Richard Manley, the head of sustainable investing at CPPIB, told The Globe and Mail that we could see “Big Oil become Big Energy, but also no-carbon oil over time.” This comment should be a red flag for Canadians concerned about the security of their pensions and the stability of our climate… “Many emissions-intensive industries – like cement, agriculture, buildings, transport and utilities – have credible, profitable pathways through the energy transition, but the oil and gas sector does not. Manley also said that “we’re already seeing Big Oil become Big Energy,” but this belief is mistaken. Five of the global supermajors are spending around US$750 million annually on greenwashing while allocating just 12% of capital expenditures to “low-carbon” activities, according to think tank InfluenceMap. Canada’s six largest oil and gas producers are making record profits but failing to invest significantly in emissions reductions while lobbying to undermine ambitious government climate policies. The notion of “no-carbon oil” is absurd – a marketing attempt to obscure reality… “The leading proposed solution, carbon capture utilization and storage (CCUS), has not measured up to hype, with oil companies unwilling to invest profits into this expensive technology that increases production costs. CCUS may eventually prove important for hard-to-abate sectors like cement or fertilizer, but better, cheaper, zero-carbon substitutes for oil and gas already exist. Even if CCUS somehow became inexpensive, scalable and effective, it cannot address oil and gas life-cycle emissions. There’s no taking the carbon out of the barrel. The overwhelming majority of emissions are the result of using oil and gas products as designed – for combustion. Depending on the blend, between 70 and 80% of the carbon pollution from a barrel of crude comes from the tailpipe… “ Fossil fuel companies are desperate to preserve their business model and prolong the use of oil and gas, but our pension capital cannot be their lifeboat.”