EXTRACTED: Daily News Clips 11/29/22
PIPELINE NEWS
Associated Press: Braun, protester of Dakota Access pipeline, dies at 53
WPR: Federal judge orders Enbridge, Bad River to make a plan to avoid a 'catastrophic' rupture of Line 5 on tribe's reservation
Canadian Press: ‘Draconian’ Line 5 shutdown must be avoided with ‘imperfect’ alternatives: U.S. judge
Bridge MI: Why Line 5 will likely remain open despite Democratic control of Lansing
Des Moines Register: Carbon capture pipeline opponents want permits paused until new safety regulations are done
KTIV: Unlikely allies: Pipeline battle doesn’t fall along party lines
Atlantic News Telegraph: Adair County Supervisors approve public hearing on pipeline ordinance
Reuters: TC Energy sees higher costs for Coastal GasLink pipeline in 2023
Burnaby Now: Protesters toss 250 rubber ducks onto TMX pipeline site
Wisconsin Watch: Did Enbridge Energy wait a year before reporting a pipeline leak in Wisconsin?
JD Supra: FERC is Bearing Down in Its Environmental Justice Reviews of Gas Pipeline and LNG Terminal
Bismarck Tribune: Mandan man arrested for alleged break-in at natural gas pipeline station
WASHINGTON UPDATES
E&E News: EPA Looks For Ways To Speed Up CO2 Well Permits
Press release: Biden-Harris Administration Makes $50 Million Available to Clean Up Orphaned Oil and Gas Wells on Tribal Lands
E&E News: Biden admin proposes methane rules for public lands
STATE UPDATES
E&E News: Gas project, EJ concerns collide in the Florida Panhandle
KCRA: Major oil companies won't participate in California gas price spike hearing
Energy News Network: Why Ohio’s top oil and gas producing counties continue to lag in jobs
EXTRACTION
PBS: The challenge of tracking methane emissions and why they are higher than publicly reported
Natural Gas World: MEXICO: A NEW FRONTIER FOR NORTH AMERICAN LNG
CLIMATE FINANCE
E&E News: Big Oil made big bucks. Will the windfall fund green energy?
OPINION
Bloomberg: Why Is It So Hard to Build in America? Blame Red Tape
The Hill: These three issues stand in the way of energy permitting reform
Electrek: Alaska oil and gas lease sale is on because Joe Manchin insisted
Globe and Mail: Fate of Petro-Canada rests with Suncor’s need for speed
PIPELINE NEWS
Associated Press: Braun, protester of Dakota Access pipeline, dies at 53
11/29/22
“Joye Braun, a fierce advocate for Native American rights and an organizer of protests against the Dakota Access and Keystone XL pipelines, has died,” the Associated Press reports. “Braun, a member of the Cheyenne River Sioux, died Nov. 13 at age 53 at her home in Eagle Butte, South Dakota, according to an online obituary from the Charlie Rooks Funeral Home. Indian Country Today reported that Braun worked as a national pipeline organizer for the Indigenous Environmental Network. She was also the organization’s representative in People vs. Fossil Fuels, a coalition of more than 1,200 groups that is calling on the federal government to declare a climate emergency. At the Dakota Access protest, Braun’s teepee was the first to go up at what became Oceti Sakowin camp at Standing Rock. Braun’s daughter, Morgan Brings Plenty, said that seeing the Keystone XL pipeline blocked was one of her mother’s proudest achievements… “She had this thing called ‘General Joye,’ which when she gets into a zone, she’s unstoppable and she’ll kind of be bossy and making sure things get done in a certain timeframe, so everything can run smoothly,” Brings Plenty told AP. Indigenous Environmental Network’s program director, Kandi White, said in a news release that Braun was the type of person who would “give her last meal or pair of moccasins to those in need.” “Her advice and counsel was sought by many, she could always be counted on to speak the truth and she pulled no punches. For this, and so much more, she was respected by colleagues and adversaries alike,” White said.
WPR: Federal judge orders Enbridge, Bad River to make a plan to avoid a 'catastrophic' rupture of Line 5 on tribe's reservation
Danielle Kaeding, 11/28/22
“A federal judge has ordered the Bad River tribe and Canadian energy firm Enbridge Inc. to come up with a joint proposal to shut down and purge an oil and gas pipeline should erosion worsen at the Bad River and threaten a "catastrophic" rupture,” WPR reports. “...Thus, the court finds that a rupture of Line 5 at the meander would be a substantial and unreasonable interference with the Band’s and the public’s rights," wrote Conley. His ruling allows the pipeline to continue operating, but requires Enbridge to come to an agreement with the tribe on emergency measures to avoid a spill. Conley noted the nearest shutoff valves are 14 miles apart on either side of the meander. He said that makes it unlikely that they could be activated in time to prevent roughly 20,000 gallons of crude and natural gas liquids in that segment of pipe from spilling into the Bad River. The judge ordered Enbridge and Bad River to meet and discuss installation of emergency shutoff valves, a protocol for shutting down and purging the line, and projects that could slow further erosion by Dec. 17. The two must submit a joint proposal or each must offer their own proposal if no agreement can be reached by Dec. 24… “Sierra Club Wisconsin Director Elizabeth Ward told Wisconsin Public Radio she’s glad the judge recognized the tribe’s concerns regarding a potential spill. "He made it pretty clear that there was a threat to that area, and that there needed to be action taken to ensure there's not an oil spill in the region," Ward told WPR. Even so, Ward told WPR she’s disappointed the judge didn’t align with Bad River’s recommendation that the best way to avoid a spill is to shut down the pipeline.”
Canadian Press: ‘Draconian’ Line 5 shutdown must be avoided with ‘imperfect’ alternatives: U.S. judge
11/28/22
“A judge in Wisconsin is ordering Enbridge Inc. and an Indigenous band to confer about “imperfect” alternatives to shutting down the cross-border Line 5 pipeline,” the Canadian Press reports. “District Court Judge William Conley calls the prospect of shutting off the line “draconian” and wants Enbridge and the Bad River Band of the Lake Superior Chippewa to explore other options. Conley also rejects outright Enbridge’s request that the band be ordered to allow the company access to its tribal lands in order to perform inspections and maintenance on the line. He says the trial evidence has not shown that the band is violating a 1977 bilateral treaty on pipelines by rejecting the company’s proposals to fortify the line, which crosses their territory in Wisconsin… “The court must consider what alternative steps, however imperfect (particularly in the longer run), would reduce the risk of an oil spill in the near term,” the decision reads. If possible, those steps should also preserve the operation of Line 5 “for those areas of the United States and Canada that currently depend on it.”
Bridge MI: Why Line 5 will likely remain open despite Democratic control of Lansing
Kelly House, 11/22/22
“The Enbridge Line 5 pipeline was one of few environmental issues to take center stage this campaign season, with Republicans touting their stance in support of the pipeline as pro-business, and some Democrats claiming pipeline opposition among their environmental bona fides,” Bridge MI reports. “But don’t expect that to translate into new efforts to shut down the pipeline that runs from Wisconsin to Canada down through the Straits of Mackinac after Democrats take control in Lansing. Instead, experts, Democratic leaders and even key Line 5 opponents tell Bridge MI, the battle for the pipeline’s future lies mostly in federal courts and international diplomats’ negotiating rooms… “Sean McBrearty, coordinator of the anti-Line 5 campaign Oil & Water Don’t Mix, told Bridge that it’s unlikely the new Democratic majority in the Legislature will take any action designed to aid in Whitmer and Nessel’s shutdown fight. “There was a time when the legislature was the appropriate forum for that discussion,” McBrearty told Bridge, but given that the cases are now tied up in federal court, “the time has long passed.” Incoming House and Senate leaders haven’t signaled an appetite to wade into pipeline politics. A spokesperson for Sen. Winnie Brinks, the incoming Senate Majority Leader, told Bridge the lawmaker is “not commenting on Line 5 at this time.” Rep. Joe Tate, who will become House Speaker on Jan. 1, didn’t respond to a request for comment. Nick Schroeck, an environmental law expert at University of Detroit Mercy, told Bridge there may be other ways lawmakers could exert pressure on Enbridge, from imposing new insurance requirements on Enbridge to strengthening infrastructure siting requirements that apply to pipelines. Political will to make such changes is another matter, he told Bridge, noting that unions, normally a reliable Democratic ally, generally support Enbridge’s efforts to build a tunnel under the Straits of Mackinac, putting them at odds with environmental groups… “From a political standpoint, Shroek told Bridge, that makes it advantageous for incoming Democratic leaders in Lansing to have the pipeline battle tied up in court.”
Des Moines Register: Carbon capture pipeline opponents want permits paused until new safety regulations are done
Donnelle Eller, 11/29/22
“Opponents of three carbon capture pipelines proposed in Iowa and surrounding states want federal regulators to call for a moratorium on construction, saying current safeguards are inadequate to protect people who live near the projects,” the Des Moines Register reports. “About three dozen environmental, public health and tribal groups on Monday asked the U.S. Pipeline and Hazardous Materials Safety Administration to call for a delay in action on state carbon capture pipeline permits until the agency establishes new safety guidelines. There was no immediate response from the agency. It said in May it would seek new rules for carbon dioxide pipelines after a pipeline ruptured in Satartia, Mississippi, in February 2020, sending 45 people to the hospital… "Any CO2 pipeline permits given before those gaps have been filled will be gambling with public and environmental safety," the groups said in the letter to the Pipeline and Hazardous Materials Safety Administration. "We know the forthcoming regulatory overhaul will impact the siting and therefore the risk/safety of communities." The groups, including Food & Water Watch, the Science & Environmental Health Network and the Sierra Club's Iowa Chapter, said California already has imposed a moratorium on carbon capture pipelines until the federal agency establishes new safeguards. Carolyn Raffensperger, the Science & Environmental Health Network's executive director, told the Register it makes sense to pause permitting. "We know PHMSA says its existing rules are not adequate," Raffensperger told the Register. "And yet, we have three pipelines rushing to site the projects, before those safety measures are even" established… "It would be ludicrous to allow pipeline companies that want to cash in on this gold rush of federal subsidies to run roughshod over communities while the federal government is evaluating the explicit dangers of these proposals," Jim Walsh, policy director at the Washington, D.C.-based Food & Water Watch, told the Register… “The groups outlined several areas where they believe the federal rules are lacking. Among them: There is no requirement that an odorant be added to the carbon dioxide so leaks can be detected and no defined safe distance between pipelines and places used by people, such as schools, homes and businesses. Currently, they note, there is no provision for a plume dispersion model to aid in defining potential impact areas along carbon capture pipeline corridors.”
KTIV: Unlikely allies: Pipeline battle doesn’t fall along party lines
Matt Hoffmann, 11/28/22
“Earlier this year, President Joe Biden signed into law the “Inflation Reduction Act,” which increased tax credits for companies that sequester, or bury, carbon emissions,” KTIV reports. “ Several companies in Iowa plan to do just that: Build pipelines that will stuff carbon underground, a measure meant to help the environment. The projects are supported by members of both parties. They’re perhaps the unlikeliest of allies: A former conservative congressman and a Democratic challenger in a deeply red district. But when it comes to the use of eminent domain to complete carbon pipeline projects, they stand together. “My initial reaction was surprise. You know, I’ve never spoken with Steve before that email and never reached out to him. He never reached out to me in any way,” former Congressional Candidate Ryan Melton told KTIV. The surprise comes in because Ryan Melton, an unabashed Democrat, doesn’t see eye to eye with former Congressman Steve King, a conservative Republican, on much… “We should not be engaging in billions of dollars of expenses and trampling over people’s property rights for an unproven science and unproven proposal,” King told KTIV… “And the people at the top of this are the leaders that already have a lot of money. And they’re driving this thing from the Democrat side, the Republican side, and the major donor side.”
Atlantic News Telegraph: Adair County Supervisors approve public hearing on pipeline ordinance
Jennifer Nichols, 11/25/22
“The Adair County Board of Supervisors approved holding a public hearing on Dec. 7 at 9:15 a.m. to consider adding a new ordinance related to hazardous liquid pipelines in the county to help protect residents health, safety and welfare,” the Atlantic News Telegraph reports. ”Earlier this month, Adair County Auditor Mandy Berg said the board wanted to be proactive in creating the ordinance in case any pipeline projects are proposed in Adair County… “The draft includes separation distance for several places including: from the city limits of an incorporated city, not less than two miles; From a church, school, nursing home, long-term care facility, or hospital, not less than one half of one mile; From a public park or public recreation area, not less than one quarter of one mile.; From any occupied structure, not less than 1,000 feet; From a confined animal feeding operation or facility, not less than 1,000 feet… “Reports said one company, Summit Carbon Solutions, filed a lawsuit against Shelby and Story counties, after the Shelby County Board of Supervisors passed an ordinance regulating the distance between the pipeline and homes, churches, school and other public places. Those against the pipeline say they have concerns about health issues and property rights.”
Reuters: TC Energy sees higher costs for Coastal GasLink pipeline in 2023
11/29/22
“North American oil and gas pipeline company TC Energy Corp (TRP.TO) on Tuesday forecast higher adjusted core earnings for 2023 and a significant rise in costs related to its long-delayed Coastal GasLink pipeline,” Reuters reports. “...It has faced several delays including COVID disruptions, demonstrations from environmentalists and indigenous First Nations as well as disputes with the Canadian government over costs. Costs related to the project had prompted TC Energy to raise its 2022 capital expenditure forecast to about C$9.5 billion ($7.07 billion) in November. It now expects "a material increase" in the project's funding requirements too as the company continues to grapple with rising labor costs and shortages. The pipeline is about 80% complete with mechanical in-service expected by the end of next year, TC Energy said… "Although Phase One of Coastal GasLink has been challenged by cost performance, we do not expect any impact on the sustainability of our dividend growth rate of 3% to 5% or our ability to accelerate our deleveraging target from 2026," Chief Executive François Poirier said in a statement.”
Burnaby Now: Protesters toss 250 rubber ducks onto TMX pipeline site
Lauren Vanderdeen, 11/28/22
“Trans Mountain workers were met with a squeaky surprise the morning of Nov. 28, as they found about 250 rubber ducks strewn across a pipeline worksite in Burnaby,” Burnaby Now reports. “The environmentalist group Protect the Planet posted a video of construction workers picking up the “secondhand rubber ducks” at the construction site at Government Road. Protect the Planet said in a news release it opposes the pipeline expansion project, adding “the more interruptions take place, especially interruptions that are clearly the work of opposed residents, the riskier the investment becomes and the more investors will pull out.”
Wisconsin Watch: Did Enbridge Energy wait a year before reporting a pipeline leak in Wisconsin?
Jacob Alabab-Moser, 11/28/22
“YES – The Canadian oil company Enbridge Energy reported to the Wisconsin Department of Natural Resources a leak of Line 13 — a pipeline of chemicals used to dilute petroleum— near Fort Atkinson in July 2020. That was more than a year after the company first discovered it,” according to Wisconsin Watch. “The department issued a letter of violation to the company for delayed reporting of the 1,200-gallon spill. Enbridge officials claimed the delay resulted from a miscalculation regarding the size of the leak, with the initial amount small enough to forgo reporting. A 2014 Canadian documentary alleged Enbridge had a history of unreported spills in Canada. Michigan officials criticized the company in 2017 for failing to report damage to an underwater pipeline in the area connecting lakes Michigan and Huron. And in 2022, Minnesota officials said the company failed to reveal the volume of drilling fluid used on a pipeline construction project.”
JD Supra: FERC is Bearing Down in Its Environmental Justice Reviews of Gas Pipeline and LNG Terminal
King & Spalding, 11/28/22
“The Federal Energy Regulatory Commission (FERC) is devoting an increasing amount of attention and staff resources to its consideration of EJ impacts of proposed interstate natural gas pipeline and liquified natural gas terminal projects,” according to JD Supra. “FERC has taken to heart a 2021 Biden Administration directive that federal agencies develop “programs, policies, and activities to address the disproportionately high and adverse human health, environmental, climate-related and other cumulative impacts on disadvantaged communities, as well as the accompanying economic challenges of such impacts”. FERC has established a senior agency position, the Senior Counsel for Environmental Justice and Equity, focused on EJ in FERC’s decision-making. The Commission’s staff is now intently focused on EJ issues, and is demanding additional information regarding impacts of pipeline and LNG terminal construction and expansion proposals on EJ communities through follow-up data requests in essentially all pending proceedings… “Recently, FERC staff has found in a final Environmental Impact Statement (EIS) for the Commonwealth LNG Project (Docket No. CP19-502) that, given visual impacts on an Environmental Justice community and overall cumulative impacts in the project area, “impacts on environmental justice communities would be disproportionately high and adverse” and significant. This may be the first time FERC staff has identified project impacts on an EJ community to be both significant and disproportionately high and adverse, even after the mitigation measures proposed by the applicant are taken into account. The EIS will now be considered by FERC in determining whether to grant Commonwealth LNG’s application for authorization to site, construct and operate its proposed LNG export terminal. FERC’s actions in this proceeding will be worth watching for insights as to how its EJ analyses will address projects located in areas that already host multiple energy facilities that are seeking initial FERC authorization or approval to expand.”
Bismarck Tribune: Mandan man arrested for alleged break-in at natural gas pipeline station
TRAVIS SVIHOVEC, 11/28/22
“A Mandan man with a lengthy criminal past was arrested Saturday after allegedly breaking into and tampering with controls at a Glen Ullin natural gas compressor station,” the Bismarck Tribune reports. “Brandon Shelkey, 43, was charged Monday with five felonies, each of which could send him to prison for five years. The charges include breaking into a vehicle, theft, burglary, tampering with a public service, and the release of destructive forces, court records show… “Officials arrested Shelkey in a WBI pickup as it was leaving the site, according to the affidavit. The pickup contained power tools and a welder that were not in the vehicle before, the document states. An employee told officials that multiple emergency shutoffs had been pulled and that one of them disrupted customer service. A pipeline valve had been turned about one-quarter closed, the employee said. If shutoffs hadn’t tripped, closure of the valve “could have resulted in catastrophic damage,” the employee told deputies… “Shelkey “to our knowledge had no working knowledge of the compressor station,” Lueder told the Tribune. Once certain parts of the system are improperly engaged, a shutdown is triggered, she told the Tribune… “It appeared that he went through almost every unlocked cabinet, tool chest and drawer on the site, the affidavit states.”
WASHINGTON UPDATES
E&E News: EPA Looks For Ways To Speed Up CO2 Well Permits
Carlos Anchondo, 11/28/22
“EPA told lawmakers it’s taking steps to improve the permitting process for wells used to inject carbon dioxide underground, following calls to shorten the current timeline,” E&E News reports. “In a 41-page report, the agency identified strategies to reduce the amount of time it takes to issue a Class VI permit, which is required for the geologic sequestration of CO2. Steps include early engagement with permit applicants, the development of a sample Class VI application and resources for EPA staff “to standardize and expedite the application review process,” EPA said in the report. Carbon capture proponents have said it currently takes too long for EPA to grant a Class VI permit, an issue that could worsen as more project developers pursue dedicated geologic storage of CO2 (Energywire, Oct. 3). Additional companies are considering the use of Class VI wells in part because of enhancements to the federal 45Q tax credit, an incentive for carbon capture and removal projects, according to the EPA document.”
Press release: Biden-Harris Administration Makes $50 Million Available to Clean Up Orphaned Oil and Gas Wells on Tribal Lands
11/23/22
“The Department of the Interior today announced final guidance for Tribes on how to apply for the first $50 million in grant funding available under President Biden’s Bipartisan Infrastructure Law to clean up orphaned oil and gas wells. The Bipartisan Infrastructure Law provides a total of $4.7 billion to address orphaned wells across the country, including $150 million for Tribal communities over five years. The final guidance is the result of a 60-day nation-to-nation consultation process. There are several thousand orphaned oil and gas wells on Tribal lands, jeopardizing public health and safety by contaminating groundwater, seeping toxic chemicals, emitting harmful pollutants including methane, and harming wildlife. Some of these wells are underwater, which creates an especially high risk of adverse impacts. “Through President Biden’s Bipartisan Infrastructure Law, we are making historic investments to reclaim orphaned oil and gas wells on Tribal lands and address long-standing environmental injustices left behind by extractive industries,” said Secretary Deb Haaland. “As part of our treaty and trust responsibility we have engaged in nation-to-nation consultations since the inception of this program so we can assist tribal nations in revitalizing their communities and help ensure future generations will have clear air, drinkable water, fertile soil and an overall good quality of life.” “...In lieu of grants and consistent with the Department’s trust responsibilities, Tribes may also choose for the agency to administer and carry out plugging, remediation and reclamation activities on the Tribe’s behalf.”
E&E News: Biden admin proposes methane rules for public lands
Heather Richards, 11/28/22
“The Biden administration Monday released highly anticipated draft rules to stem the release of methane from oil and gas drilling on public lands,” E&E News reports. “The proposed rules from the Bureau of Land Management would mandate that operators maintain leak detection and repair plans for their operations on federal or Native American leases. BLM would also limit how much gas can be flared from a well site due to lack of pipeline to carry the gas to market — the primary reason companies cite for flaring on public lands. Under the proposed rules, operators would be required to write methane waste minimization plans in their applications for drilling permits. BLM could delay or deny a permit to drill to avoid “unreasonable and undue waste,” in some cases, if waste minimization plans are deemed insufficient or operators do not improve them to BLM’s standards. “No one likes to waste natural resources from our public lands,” BLM Director Tracy Stone-Manning said in a statement. “This draft rule is a common-sense, environmentally responsible solution as we address the damage that wasted natural gas causes. It puts the American taxpayer first and ensures producers pay appropriate royalties.” “...This is the second time BLM has attempted to craft methane waste regulations. A set of rules penned at the tail-end of President Barack Obama’s administration that mandated on-the-ground checks of infrastructure and radar equipment to identify leaks was later revoked by a federal court for overstepping BLM’s authority.”
STATE UPDATES
E&E News: Gas project, EJ concerns collide in the Florida Panhandle
Miranda Willson, 11/28/22
“Some longtime residents of this city’s predominantly Black north side smell trouble in plans to develop a natural gas export hub on a tract vacated by a massive paper mill,” E&E News reports. “The St. Joe Co. plant was a major employer and a major generator of foul-smelling emissions and health concerns for Beverly Ash and her neighbors in this small Florida Panhandle city… “Local politicians say those fears are unfounded and have touted the LNG proposal’s potential to bring new jobs to the area. The dispute underscores a national tension over the benefits and costs of LNG at a time when U.S. gas exports are surging… “This administration is like Janus, the god of two faces,” Sacoby Wilson, an associate professor at the University of Maryland and a former member of EPA’s National Environmental Justice Advisory Council, told E&E. “On the one hand, you say you support environmental justice, but you do policy that’s not for environmental justice.” “...The project would be built at the site of the former St. Joe Co. paper mill, a major employer from 1938 until it closed in 1999. North Port St. Joe is also the site of another former job and odor generator, the Arizona Chemical Plant. That both smelly plants were in the north side of town still stings Black residents… “For now, North Port St. Joe residents say they mostly want to be informed about the LNG proposal, including its potential benefits and drawbacks — and to have a voice in the process. “I’ll be the first one to say we need good-paying jobs for the kids that want to work,” Gathers, the pastor, told E&E. “If [LNG] is good, and they’re trying to do it for the reason it’s going to benefit the community, well then do it. But don’t do it on the backs of the people.”
KCRA: Major oil companies won't participate in California gas price spike hearing
Ashley Zavala, 11/28/22
“The California Energy Commission will hold a hearing on Tuesday on gas price spikes, but the state's major oil refiners have rejected invitations to participate, according to documents provided by the commission,” KCRA reports. "It's s a big deal and it deserves all our attention, and they should show up," CEC Chairman, David Hochschild told KCRA. "That's unprecedented. I've never actually seen anything like this happen, it's unfortunate and I relayed that to them." Tuesday's hearing comes nearly two months after the commission demanded answers from the state's five major oil refiners in California after gas prices neared record highs in late September and early October, when it averaged around $6.43 per gallon and spiked $2.60 more than the national average. Gov. Gavin Newsom has accused the companies of ripping off customers and announced he would call a special legislative session in December for state lawmakers to impose a new tax on oil companies to pass excessive profits onto consumers. All five major oil companies — Marathon, Valero, Phillips 66, PBF Energy and Chevron — declined to participate in Tuesday's hearing, according to emails and letters provided by the CEC. All are relying on the trade association representative, the Western States Petroleum Association, to present to commissioners on their behalf. WSPA President and CEO Catherine-Reheis Boyd is included in the list of presenters. "The politicization of this issue by Governor Newsom, heightened by the misleading information he released and commented on related to our [third quarter of 2022] earnings, precludes us from participating in this hearing," wrote Paul Davis, the senior vice president of supply, trading and optimization for PBF Energy. "For the record, we formally met with members of the governor’s senior staff twice in [the first financial quarter of 2022] to discuss our concerns about potential near-term gasoline supply shortages and spoke with them after that several other times."
Energy News Network: Why Ohio’s top oil and gas producing counties continue to lag in jobs
Kathiann M. Kowalski, 11/28/22
“A decade after the start of Ohio’s shale gas boom, counties with the most oil and gas production continue to have higher-than-average unemployment rates,” Energy News Network reports. “A review of state data shows that unemployment rates in Belmont, Carroll, Guernsey, Harrison, Jefferson, Monroe and Noble Counties have exceeded the statewide average every year since 2010, casting doubt on the view that the shale gas industry would be a game changer for jobs in Appalachian Ohio. A report commissioned by the industry-funded Ohio Oil and Gas Energy Education Program predicted in 2011 that the shale gas industry would create or support 204,000 jobs as soon as 2015. Annual reports by the Ohio Department of Job and Family Services, however, show a net increase of less than 21,000 jobs in core and supporting industries since a 2012 law opened Ohio to widespread development of fracked, horizontal wells. Even with the jobs that were added, the top-producing counties still have higher unemployment rates compared to the state overall. The Energy News Network interviewed more than a dozen experts and local sources and heard four recurring explanations for the disparity. 1. Jobs — and workers — came and went. Oil and gas drilling jobs are similar to construction in that the work tends to be temporary and often performed by workers who travel from one job site to the next… 2. Not all jobs are where the drilling is. The Ohio Department of Job and Family Services estimated about 8,600 people worked in core shale-related industries in 2021, with another 184,000 working in "ancillary" industries ranging from trucking to engineering… 3. Infrastructure and workforce support are lacking… 4. Declines in other industries continued. The rise of Ohio’s shale industry coincided with the ongoing loss of coal jobs and manufacturing work. Coal mining employed fewer than 300 people in Ohio in the first quarter of 2022 — less than one-tenth as many as in 2012. And Monroe County lost about 600 jobs in 2013 when Ormet Corporation shut down its aluminum smelter in Hannibal, Ohio.”
EXTRACTION
PBS: The challenge of tracking methane emissions and why they are higher than publicly reported
Miles O'Brien, 11/23/22
“The COP27 climate negotiations in Egypt put a spotlight on the problem of methane emissions, which are responsible for more than a quarter of the warming on the planet today,” PBS reports. “The recent international climate summit put a spotlight on the problem of methane emissions, which are responsible for about 30 percent of the planet's warming. More countries are pledging to reduce those emissions. And the United Nations is creating a methane detection program using satellite technology. But methane leaks remain a serious problem, particularly at a time when the U.S. has increased oil and natural gas production… “The road to zero greenhouse gas emissions begins here, in a place where we are hurtling faster and faster in the opposite direction. This is the Permian Basin, the largest oil field in America, 86,000 square miles spanning Texas and New Mexico. There are tens of thousands of oil wells here. Current production is about 5.5 million barrels a day. It will likely double in a few years. Sharon Wilson, Earthworks: “This is happening because they developed the technology to frack oil and gas from shale. If they hadn't done that, we would have converted to clean energy a long time ago.”
Natural Gas World: MEXICO: A NEW FRONTIER FOR NORTH AMERICAN LNG
NEIL FORD, 11/28/22
“With many of the best US locations taken, developers are looking to Mexico as a means of increasing US gas’ access to growing world LNG markets and Asia in particular,” Natural Gas World reports. “State support for such projects now appears to have firmed, but transmission bottlenecks pose problems. Mexico looks set to become a considerable LNG exporter over the next few years. The likelihood of planned projects being developed has increased as a result of the Russian invasion of Ukraine and the associated decline in Russian gas exports to European markets. At the same time, US LNG developers have notably been unable to secure access to their own west coast. Much of the new capacity is to be developed by companies based in the US and will be fed by US gas, building on North America’s growing strength as a source of global gas supply (see figure 1). Obstacles remain in the form of limited transmission capacity and the need to continue supplying gas to Mexican industrial and power sector consumers, but a string of new projects looks more than likely to be completed.”
CLIMATE FINANCE
E&E News: Big Oil made big bucks. Will the windfall fund green energy?
Benjamin Storrow, 11/29/22
“Few companies capture the contradictions of the oil industry like TotalEnergies. The French oil major is moving quickly into businesses outside of oil, snapping up large renewable companies in Brazil and the United States, even as it pushes to develop new oil fields in Africa and grow its liquefied natural gas division,” E&E News reports. “So goes the energy transition in the oil sector, where a handful of European oil giants are seeking to balance the world’s short-term need for fossil fuels with its long-term goal of achieving net-zero emissions. The industry is basking in record profits two years after a handful of large European oil companies announced plans to transition their business and zero out emissions. The windfall has prompted questions about whether companies intend to spend their profits on their traditional business or on green technologies needed to meet their climate goals. The choice is a stark one. The world is short on oil today. Inventories are down and investment in new production is limited, but demand has shown no signs of slowing down amid growing fears of a recession. Those factors would traditionally be a recipe for more oil production. But the planet also can ill afford the additional emissions that come with new oil projects… “So far, the European majors have chosen a third option for their record profits, with most electing to pay down debt and return money to shareholders in the form of stock buybacks and enhanced dividends… “Many analysts think oil companies will boost their spending on oil and gas if fossil fuel markets remain tight. At the same time, most expect spending on green investments will climb, as well. The question is whether macroeconomic conditions will prompt a wider reassessment. The European oil majors have been undeterred by economic uncertainties roiling the world this year and seem intent to continue their green pivot, Doherty, the BloombergNEF analyst, told E&E. Yet green investments will be less profitable than what the European majors are expecting.”
OPINION
Bloomberg: Why Is It So Hard to Build in America? Blame Red Tape
The Editors, 11/22/22
“President Joe Biden says the Inflation Reduction Act, which contains some $370 billion in climate spending, represents the most sweeping government investment in clean energy “ever, ever, ever.” To ensure that investment is worthwhile, he’ll need an equally unprecedented overhaul of federal rules and regulations. Congress should make such reforms a top priority,” write the Editors at Bloomberg. “Building anything in the US requires navigating a rainforest of red tape. A primary impediment is the National Environmental Policy Act, which requires federally funded projects to undergo a laborious environmental-review process. Mandated impact studies can run for hundreds of pages, cost millions of dollars and take years to complete. Faced with such costly busywork, many projects don’t get off the ground at all. Others endure seemingly endless legal challenges… “By fixing some of the flaws in Manchin’s proposal, they should be able to make a deal. As a start, any such deal should scrap the idea of time limits; perversely, truncated reviews can actually lead to worse delays by encouraging more lawsuits. Instead, Congress should make it harder to tie up projects with dubious legal proceedings. In particular, it should shorten the statute of limitations for such suits, enhance the requirements for standing in litigation, and limit the ability of courts to issue injunctions on projects that have already undergone significant environmental review. Next, a clean-energy economy will be heavily reliant on expanding transmission capacity. Yet new power lines are all too easily obstructed by parochial state and local interests. The best bet is for Congress to pass some version of the SITE Act, which would empower a single federal regulator to oversee big interstate transmission projects in the national interest.”
The Hill: These three issues stand in the way of energy permitting reform
Xan Fishman is director of energy policy and carbon management at the Bipartisan Policy Center, 11/22/22
“The only thing standing between us and our affordable, clean energy future is a completely broken permitting process and the road to breaking through congressional gridlock lies in addressing three controversies that helped delay legislative action earlier this year,” Xan Fishman writes for The Hill. “Specifically, pushing through permitting reform during Congress’ lame-duck session requires resolving controversies over how much authority to give the federal government to site new electric transmission lines and allocate costs among beneficiaries, which types of projects should be covered and whether reforms will strengthen or weaken environmental justice… “Based on how efforts to attach permitting reform to a must-pass spending measure fell apart earlier this fall, however, negotiators must resolve three controversies if they hope to enact a final bill. First, the fate of electric transmission lines. How much authority should the federal government have to site new lines and allocate costs among beneficiaries?.. “Second, the scope of permitting reform. While the Manchin and Capito proposals take an all-of-the-above approach, others want to exclude fossil fuel projects. The fact is, however, that both Manchin and Republican lawmakers will demand all-of-the-above permitting improvements… “Third, the status of environmental justice. Will faster permitting mean less input by local communities affected by new projects? Clean energy projects have the potential to help localities by creating jobs, spurring economic growth, reducing pollution and improving quality of life. That’s why permitting reform should support efforts to engage communities early in the process to secure their support. Through four major bills, policymakers have unleashed unprecedented funding for new energy innovation. Now, they must remove the stumbling blocks to using that money to achieve their energy-related goals.”
Electrek: Alaska oil and gas lease sale is on because Joe Manchin insisted
Michelle Lewis, 11/28/22
“The US Interior Department today announced that an oil and gas lease sale for Alaska’s Cook Inlet will take place on December 30 – a concession made to Senator Joe Manchin (D-WV) so that he’d vote for the passage of the Inflation Reduction Act (IRA),” Michelle Lewis writes for Electrek. “...In May, BOEM canceled the Cook Inlet sale, along with two Gulf of Mexico lease sales, citing lack of interest. Congress then directed BOEM to carry out the sale by the end of 2022… “In order to secure fossil-fuel advocate Manchin’s vote in the Senate, Schumer had to concede to Manchin’s demand that these oil and gas lease sales be resurrected alongside the escalation of clean energy deployment. Manchin said in a statement on July 27… “On November 22, environmental law nonprofit Earthjustice wrote that there were alternate paths to the Cook Inlet and Gulf of Mexico oil and gas lease sales, and it’s actively campaigning to stop the Cook Inlet sale… “It would be better to have no more oil and gas lease sales, but we feel the Cook Inlet sale is not one to get seriously worried about. Earlier in the year, there was very little interest. A lot of fossil fuel lease sales are procedural, and this may also be the case for Cook Inlet. The oil companies are sitting on roughly half of unused US public leases, and they’re not drilling due to lack of access to financing and supply chain shortages. We don’t see either of those things changing anytime soon. And if they do, chances are good that drilling won’t make sense financially, due to renewables becoming ever more inexpensive.”
Globe and Mail: Fate of Petro-Canada rests with Suncor’s need for speed
Andrew Willis, 11/28/22
“Suncor Energy Inc. set clear performance targets this summer in the face of an activist investor campaign. The fate of its Petro-Canada division rests on just how quickly the oil and gas company wants to reach those goals,” Andrew Willis writes for the Globe and Mail. “On Tuesday, Suncor executives are scheduled to stage their first investor day since reaching an agreement in July with hedge fund Elliott Investment Management LP. The settlement saw the company welcome three new board members, pledge to address operational issues and consider selling Petro-Canada and its 1,800 gas stations. Last month, Suncor promised to reveal plans for the division, which analysts estimate could fetch up to $10-billion, at Tuesday’s session… “It is quite possible Suncor announces plans to spin out a stake in Petro-Canada, in the form of an initial public offering. The move would raise significant capital – it’s easy to envision a $1-billion market debut – to speed debt repayment and boost share buybacks. All these moves would draw praise from Elliott… “The CEO can credibly stand before investors and say Suncor is taking a slow and steady approach, holding on to 100 per cent of Petro-Canada because it is an important part of its electric-vehicle-charging strategy… “Or Mr. Smith could announce plans to turbocharge cash generation by selling a portion of Petro-Canada in an IPO, aggressively knocking back debt and speeding up buybacks.”