EXTRACTED: Daily News Clips 11/3/22
PIPELINE NEWS
The Narwhal: Tensions rise as Coastal GasLink blasts a creek near a Wet’suwet’en camp
Press release: CHAIRS DEFAZIO, PALLONE, PAYNE, JR., AND RUSH URGE PHMSA TO CONTINUE IMPLEMENTATION OF PIPELINE SAFETY LAWS
Marcellus Drilling News: WV Gov. Justice Presents $1.9M Check to Finish NatGas Pipeline
WVVA: Justice gives $2 million check for natural gas pipeline
E&E News: CO2 pipeline developers, foes clash over landowner lists
Iowa Capital Dispatch: Pipeline company sought to limit required safeguards for soil
Aberdeen News: Brown County commissioners encouraged to stand their ground facing CO2 pipeline lawsuit
Daily Nonpareil: Shelby County passes ordinance designed to rebuff CO2 pipeline plans
Summit-Tribune: Incumbent Hancock County Supervisor candidates cite pipeline, other concerns
Smithfield Times: FERC wants more input on IW-Surry gas pipeline expansion
Reuters: Pipeline operator Plains raises 2022 profit forecast
SeekingAlpha: Western Midstream sells Cactus II pipeline to Enbridge, Plains in $265M deal
WASHINGTON UPDATES
Politico: Manchin Aims To Hitch Permitting Legislation To Defense Bill
Politico: The oil and gas paradox threatening Biden’s party at the polls
Bloomberg: Pipeline CEO Likens Biden’s Energy Policy to ‘Saturday Night Live’ Skit
EXTRACTION
Canadian Press: Cenovus CEO takes aim at oil and gas critics; says sector pays billions in taxes
Financial Post: Cenovus chief says Canada needs to get serious on carbon capture in face of global competition
E&E News: Tech companies driving CO2 removal are in financial free fall
Reuters: Canadian natgas firms warn clock ticking on Montney shale deal with First Nations
Oceana: Stopping the Expansion of Offshore Drilling Can Help Prevent the Worst Impacts of the Climate Crisis, New Analysis Finds
High Country News: The nonprofits cleaning up the oil and gas industry’s ‘dirty little secret’
TODAY IN GREENWASHING
E&E News: Greens push to oust Coke from COP 27 sponsorship
The Express-Star: Midship Pipeline donates $10,000 to Chickasha Community Foundation
OPINION
Los Angeles Times: Op-Ed: We can’t afford to shutter California’s aging oil refineries yet
Vancouver Sun: Vaughn Palmer: Is pace of Coastal GasLink pipeline construction sustainable if more attacks occur?
PIPELINE NEWS
The Narwhal: Tensions rise as Coastal GasLink blasts a creek near a Wet’suwet’en camp
Matt Simmons,11/2/22
“Less than one kilometre from a Wet’suwet’en camp and village site, where cabins, tiny homes and a feast hall provide space for ceremony, cultural practices and opportunities to reconnect with the land, is a vast muddy clearing, guarded by private security workers,” The Narwhal reports. “Here, the path of the Coastal GasLink pipeline crosses Ts’elkay Kwe (Lamprey Creek), a tributary of Wedzin Kwa (Morice River). This work requires digging a trench right through the creek to bury the pipe under it… “Late last week, Morris rushed out to the territory after hearing word about work being done at the crossing of Ts’elkay Kwe and suspicion that it included the use of explosives. She told the Narwhal security blocked access to the worksite and threatened her with arrest, refusing to allow her to speak to Coastal GasLink construction personnel or provide any information about the work that was being done. She stood her ground and with the support of two other land defenders, started filming… “In an online notification posted to the Coastal GasLink website late last year, the company noted blasting activities would not occur within one kilometre of a permanent residence. The Gidimt’en camp, or village site, has a registered civic address and includes a two-story cabin belonging to Dinï ze’ Woos, whose house territory is directly impacted by the project. It is about 800 metres from where the blasting occurred. But the company never directly told those at Gidimt’en camp, according to Morris. Signs that said “danger blasting zone fall out” were hammered to trees in the woods behind the collection of cabins and wall tents. Those at the camp were not told any specific details about the timing of the blasting, Morris told the Narwhal. “When the blast actually happened, it was so surprising to me that I didn’t even know what to do,” Morris said. “It felt like a torpedo went under me, under the ground. It was just like a series of pops, and before you hear that popping I felt it just go flying right under me.”
Press release: CHAIRS DEFAZIO, PALLONE, PAYNE, JR., AND RUSH URGE PHMSA TO CONTINUE IMPLEMENTATION OF PIPELINE SAFETY LAWS
11/2/22
“Today, Chair of the House Committee on Transportation and Infrastructure Peter DeFazio (D-OR), Chair of the House Committee on Energy and Commerce Frank Pallone, Jr. (D-NJ), Chair of the Subcommittee on Railroads, Pipelines, and Hazardous Materials Donald M. Payne, Jr. (D-NJ), and Chair of the Subcommittee on Energy Bobby L. Rush (D-IL) sent a letter to Pipeline and Hazardous Materials Safety Administration (PHMSA) Deputy Administrator Tristan Brown encouraging his agency to continue its work implementing the Protecting our Infrastructure of Pipelines and Enhancing Safety Act of 2020 (PIPES Act of 2020) and applauding its completion of outstanding mandates from previous reauthorizations. “The bipartisan PIPES Act of 2020 calls on the agency to make important updates to federal pipeline safety provisions,” the Chairs said, referencing the bill’s requirements that PHMSA finalize regulations governing gas gathering pipelines, leak detection and repair programs, protection for unusually sensitive waters, and critical improvements for the safe operation of distribution pipelines, among others that prioritize protecting the public and environment. “Congress put some of these mandates in place in response to recent, preventable pipeline explosions… Moreover, the bill also recognized the need to mitigate and prevent the release of methane, a potent greenhouse gas… As such, we encourage your agency to focus its resources on these important and bipartisan mandates that prioritize public safety and the environment. Advancing these mandates creates jobs for the men and women who maintain, repair, replace, monitor, and operate pipelines; improves the lives of those who live, work, and travel near the pipelines made safer by these mandates; and safeguards the environment as we work to address the climate crisis,” the Chairs wrote… “The Chairs concluded their letter by encouraging the agency to continue its important work by implementing the identified sections of the PIPES Act of 2020 and other announced efforts to improve pipeline protections, such as forthcoming regulation to prevent a repeat of the rupture and release of a carbon dioxide pipeline in Satartia, Mississippi, that asphyxiated and disoriented residents.”
Marcellus Drilling News: WV Gov. Justice Presents $1.9M Check to Finish NatGas Pipeline
11/2/22
“Yesterday, West Virginia Governor Jim Justice and his English bulldog, named Babydog, presented a check from the state for $1,959,000 to the Mercer County Commission and the Development Authority of Mercer County to help complete a natural gas pipeline that will help bring more economic development to the Bluefield area and Mercer County as a whole,” according to Marcellus Drilling News. “The money will help complete a natural gas pipeline from Cumberland Road in Bluefield where it now ends beneath Route 460.”
WVVA: Justice gives $2 million check for natural gas pipeline
Clayton McChesney, 11/2/22
“Tuesday, Jim Justice visited Bluefield to present the Mercer County Commission with a check for over 1.9 million to complete a natural gas pipeline,” WVVA reports. “The pipeline will be constructed off Exit 1 on John Nash Boulevard and is planned to reach the Cumberland Industrial Park, providing businesses there with natural gas. “We have beautiful industrial park out here. We have a number of companies already located here, but many of them coming in and asking about land and opportunities here in the industrial park they’re looking for the services, the broadband and particularly natural gas,” says Frank Brady, Chairman of the Mercer County Development Authority. John O’Neal, the Director of the Mercer County Development Authority told WVVA they won’t be the only ones impacted by the pipeline. “Our surveys up to this point indicate that there will be hundreds of individual residences that will be served, dozens of existing businesses, there will be hundreds of jobs that will be supported by this pipeline and millions of dollars of new investment coming into Mercer County as a result,” O’Neal told WVVA.
E&E News: CO2 pipeline developers, foes clash over landowner lists
Jeffrey Tomich, 11/3/22
“State regulators across the Farm Belt are weighing approval of projects representing thousands of miles of new pipeline to move liquefied carbon dioxide from ethanol plants to sites in North Dakota and Illinois where the CO2 would be permanently stored deep underground,” E&E News reports. “Before those key decisions come, however, utility commissions and local courts are refereeing preliminary disputes between pipeline developers and opponents over access to names of landowners in the path of the three multibillion-dollar projects… “With such high stakes, environmental activists and some landowners vow to keep up the fight for access to information in what they see as a David vs. Goliath battle with well-funded, politically connected developers. “It absolutely has affected organizing efforts,” Chase Jensen of Dakota Rural Action, a South Dakota nonprofit opposed to the two pipelines that would cut through eight counties in the state, told E&E. “Locally, people in a lot of these communities know their neighbors, so they’re checking in with each other. But when you’re talking about upwards of 450 miles [of pipeline] … connecting local pockets of people who know each other has been tough.” “...The developer also said it wanted to “protect landowners from unwanted publicity and bothersome contacts” by agents, consultants and attorneys or by representatives of interest groups seeking their support, it said in a filing with the Illinois Commerce Commission… “Jess Mazour, an organizer with the Iowa chapter of the Sierra Club, told E&E landowners and opponents continue to be harmed the longer the legal fight drags on because the company continues to acquire necessary easements… “In a court filing, the group said Summit “abused” the list to send a letter signed by former Iowa Gov. Terry Branstad (R), a senior policy adviser to Summit, to all affected landowners. In the letter, Branstad warned that the environmental group would intimidate and lie to them and spread propaganda… “Even without Summit’s landowner list, Mazour told E&E the group has been assembling a strong coalition to oppose the pipeline. But there remain rural landowners, many of them older and some without internet access, who lack information about the project. “We find people every single day that have no idea there’s opposition,” she told E&E. “I get, depending on the day, anywhere from two to 15 calls from new landowners that are just saying, ‘Hey, I just heard about this. Can you tell me what’s going on?’” “...Jensen, the South Dakota organizer, likewise told E&E previous oil pipeline battles led local and statewide advocacy groups to become better connected and able to share information and strategies… “Like organizers in other states, Jensen told E&E he regularly finds landowners who have no idea they’re in the path of the pipeline.”
Iowa Capital Dispatch: Pipeline company sought to limit required safeguards for soil
JARED STRONG, 11/2/22
“Navigator CO2 Ventures wanted to reduce its obligations to sample and restore topsoil for the construction of its proposed carbon dioxide pipeline, according to Iowa Utilities Board filings,” the Iowa Capital Dispatch reports. “But the company told Iowa Capital Dispatch on Wednesday that it is rescinding that request due to “constructive feedback from landowners.” “...The company included a request to waive certain requirements in an effort to limit the number of topsoil depth samples it must collect in farm fields before construction and to reduce the amount of tilling of topsoil when it is replaced after construction… “Our goal was to use best practices and, in fact, exceed the objectives of state requirements,” the company said in a written statement. “However, due to feedback received on the waiver, we will be withdrawing said request later this afternoon.” Navigator had asked to reduce the minimum number of soil samples taken roughly every 500 feet along the route. At each of those points, the current rules require samples at each edge of the easement width and one roughly in the middle. The company instead wanted to take two samples. It also sought to treat multiple, contiguous parcels owned by the same person as one parcel, because IUB rules require a minimum of two sample points per parcel… “Our goal was not to circumvent the ag restoration and mitigation requirements,” Navigator said in the written statement. Wally Taylor, an attorney for Sierra Club’s Iowa Chapter, told the Dispatch the waiver request shows that Navigator has “no commitment” to protecting Iowa farmland. “They want to do things cheaply and quickly, and they don’t care about the consequences,” he told the Dispatch. Navigator’s request met swift resistance from landowners and others, according to IUB filings. That included state Rep. Pat Grassley, a New Hartford Republican who is the speaker of the Iowa House and is up for election next week. “This company’s request for a waiver to these rules, to my knowledge, is not common, and it clearly displays their concern with protecting their bottom line over their duty to fairly work with landowners,” Grassley wrote in a letter of objection.”
Aberdeen News: Brown County commissioners encouraged to stand their ground facing CO2 pipeline lawsuit
Elisa Sand, 11/2/22
“Opponents to the Summit Carbon Solutions carbon dioxide pipeline spoke during the open forum portion of Tuesday's Brown County Commission meeting, offering support and encouragement as the county faces a federal lawsuit filed by Summit,” the Aberdeen News reports. “The lawsuit is challenging the legality of a one-year moratorium on the construction of hazardous material pipelines approved by commissioners earlier this year. The moratorium is intended to allow the county time to review its zoning regulations. Commissioners were served with the lawsuit last week. Ed Fischbach, who has long opposed the proposed carbon capture and sequestration pipeline project, thanked the commission for passing the moratorium, which was after the South Dakota Public Utilities Commission asked counties to weigh in. "You did take a position and you're within your rights," he said. "You should hold your ground. Summit is showing who they are." Fischbach also said the attorney who is representing local landowners in court proceedings against Summit is available to counties as well… “Fischbach also noted that Summit surveyors were drilling holes in the county road on the Spink/Brown County border. "Why do they continue to get away with that and what purpose is there to that?" he asked. Commissioners did not have an immediate response, but the topic was broached later in discussion with Highway Superintendent Dirk Rogers. Rogers said he visited with the survey crew and they were applying a patch over the holes.
Daily Nonpareil: Shelby County passes ordinance designed to rebuff CO2 pipeline plans
David Golbitz, 11/2/22
“The Shelby County Board of Supervisors voted unanimously on Tuesday to approve a zoning ordinance designed to make it more difficult for companies to build hazardous material pipelines in the county,” the Daily Nonpareil reports. “The new ordinance requires any company that wants to build a pipeline through Shelby County to go through a new permitting process, and places strict limits over how close the pipeline can be to homes, farms, towns and schools… “Jess Mazour, conservation coordinator for the Sierra Club’s Iowa chapter, also argued against the various pipeline projects that are being proposed, referring to them as “boondoggles.” “They have nothing to do with ethanol, they have nothing to do with climate change, but they do have everything to do with capturing a lot of public dollars through the 45Q federal tax credit,” Mazour said… “The increased payout and other regulatory changes have spurred the carbon capture industry to spring into action, but a lot of skepticism remains about the efficacy of capturing carbon and pumping it deep underground as it relates to mitigating climate change. “They’re going to benefit from this,” Mazour said. “They’re going to make a lot of money, and here in Iowa, we’re going to have to reap all the consequences.” “...According to Kallman, Summit’s proposed pipeline would run at about the same depth — below the frost line — as the pipes that carry the area’s water supply, and the company hasn’t been forthcoming about what would be done in that situation. “My personal opinion, in the grand scheme of things, I think safe drinking water is a little more important, at least to me and my family, than a high pressure CO2 pipeline,” Kallman said. Jennifer Lefebre, emergency manager at Myrtue Medical Center, said she was concerned about the number of first responders that are trained, or will need to be trained, to handle a potential CO2 pipe rupture… “According to Summit, under Iowa law, the Iowa Utilities Board alone is in charge of permitting and regulation of an activity such as pipeline infrastructure. A county cannot enact additional regulations that would prohibit what state law permits.”
Summit-Tribune: Incumbent Hancock County Supervisor candidates cite pipeline, other concerns
Rob Hillesland, 11/2/22
“Incumbent Republican Hancock County Supervisors Sis Greiman of Garner and Gary Rayhons of Garner are both running for re-election unopposed on the ballot Nov. 8, but provided their perspectives on issues the county board is facing,” the Summit-Tribune reports. “Greiman cited several primary reasons she is running for re-election as she reaches two decades of service on the county board of supervisors. At the top of the list has been her work on issues pertaining to the proposed Summit Carbon Solutions pipeline since last September when the first meeting was held in Hancock County. “Since that meeting, we have invited Summit Carbon Solutions and the public to the courthouse to discuss our concerns consisting of drainage tile, roads, potential emergencies, eminent domain, and easements,” Greiman told the Tribune. “I’ve spent countless hours researching carbon capture and Iowa Code sections, visiting with legislators and fellow supervisors and anyone else who will listen to my concerns, attending meetings ranging from geological studies to appropriation bill hearings, writing letters, and visiting with landowners.” “...I am concerned about long-term effects on our county drainage systems and the cost to repair problems that may be created in the future,” Greiman told the Tribune. “Crop losses, assessment, tile damage and lost land values are a few of the concerns that landowners have expressed. The pipeline will have to cross roads, which may cause issues for our secondary roads department. A hazardous pipeline may challenge our local emergency management groups. Training and additional equipment may be needed to deal with a hazardous pipeline. This adds an additional burden to those groups, many of which are volunteer.” She told the Tribune it may overtax those groups that are already burdened with other challenges, adding that she struggles to see how eminent domain with a finding of public benefit could apply. “The question that arises for me is how Summit Carbon Solutions, a private company, is serving a public purpose.” “...He mirrored Greiman’s concerns over the proposed Summit Carbon Solutions proposed pipeline in Hancock County as well as the potential for long-term ramifications on county drainage tiles and districts. “Currently in our county issues that are at the forefront include the CO2 pipeline, preserving our county courthouse for years to come, county drainage, rural recycling, and keeping our county strong for development,” Rayhons told the Tribune. “Ultimately, the Iowa Utilities Board has the final say on the pipeline. However, as a trustee of the drainage districts in the county, I feel there will be long-term impacts on our drainage tile and drainage districts in our county as well as our roads that the pipeline would cross.”
Smithfield Times: FERC wants more input on IW-Surry gas pipeline expansion
Stephen Faleski, 11/2/22
“The Federal Energy Regulatory Commission is seeking additional public input on the environmental impacts of a proposed natural gas pipeline expansion in southeastern Virginia,” the Smithfield Times reports. “Columbia Gas Transmission LLC, a subsidiary of Canada-based TC Energy unaffiliated with Columbia Gas of Virginia, is seeking federal approval for what the company has termed its “Virginia Reliability Project.” The project entails replacing an existing 1950s-era 12-inch pipeline that passes through the city of Suffolk and Isle of Wight, Surry and Southampton counties with a 24-inch one to meet growing demand for natural gas across the Hampton Roads region. FERC solicited public comments from Feb. 22 through April 6, continuing to accept input throughout the project’s “pre-filing” period. According to an Oct. 25 FERC notice, Columbia has now officially filed its application with the federal agency, prompting a new public comment period that will extend until 5 p.m. Nov. 25… “A March 16 press release from the Sierra Club’s Virginia chapter issued during the pre-filing period, however, contends there’s “no shortage of natural gas in Hampton Roads” and that the communities the pipeline would pass through are already experiencing “an overburden of existing fossil fuel infrastructure.” “These new applications from the fossil fuel industry need a thorough review with FERC’s expanded criteria including — climate impacts from GHG (greenhouse gasses), impacts on vulnerable communities, and necessity,” Lynn Godfrey, the Virginia chapter’s community outreach coordinator, stated in the press release. The proposed project would take a different path through the area than the controversial Atlantic Coast Pipeline Dominion Energy and North Carolina-based Duke Energy proposed in 2014 and scrapped in 2020. The TC Energy pipeline would pass near the towns of Dendron in Surry County, Ivor in Southampton County, and through Isle of Wight between Windsor and the county’s courthouse.”
Reuters: Pipeline operator Plains raises 2022 profit forecast
Arathy Somasekhar, 11/2/22
“Oil and gas pipeline operator Plains All American (PAA.O) on Wednesday raised its profit forecast for the third time this year, helped by higher volumes on its Permian basin pipelines and increased commodity prices,” Reuters reports. “Plains is the latest U.S. energy pipeline operator to boost full-year earnings view on higher demand as oil and gas production has kept growing after cutbacks during the pandemic. Earlier, rivals Magellan Midstream Partners (MMP.N) and Energy Transfer (ET.N) also raised their earnings outlooks. Crude oil pipeline tariff volumes rose 23% to 7.5 million barrels per day (bpd), Plains said, with volumes in the Permian basin of Texas and New Mexico climbing about 30%.Higher commodity prices also helped lift full-year adjusted earnings guidance by $75 million, to about $2.45 billion. The latest guidance is a $250 million increase compared to the company's initial forecast in February.”
SeekingAlpha: Western Midstream sells Cactus II pipeline to Enbridge, Plains in $265M deal
Carl Surran, 11/2/22
“Enbridge and Plains All American Pipeline agreed to acquire Western Midstream Partners' 15% interest in the Cactus II pipeline for $265M, the companies announced Wednesday,” SeekingAlpha reports. “Enbridge acquired 10% and Plains bought 5%, and are now the sole owners; Plains will continue as the operator and will now own a 70% stake, with Enbridge holding 30%. Cactus II is a 670K bbl/day oil pipeline that extends from the Delaware Basin in West Texas to Corpus Christi, with further connectivity to the Ingleside area.”
WASHINGTON UPDATES
Politico: Manchin Aims To Hitch Permitting Legislation To Defense Bill
JOSH SIEGEL, DEBRA KAHN, 11/2/22
“Democratic Sen. Joe Manchin of West Virginia said Wednesday he’s working to include legislation updating energy permitting rules in Congress’ annual defense policy bill that’s expected to be considered later this month,” Politico reports. “‘I’ve tried to put it in the continuing resolution, and I’m working now on getting it in the National Defense Authorization,’ Manchin said in remarks at Stanford’s Global Energy Forum, where he appeared remotely. Manchin has previously demurred on whether he’d specifically push to attach a permitting proposal to the defense measure. His legislation would ease approvals of oil and gas infrastructure along with clean energy projects In September, Manchin withdrew his permitting plan from a must-pass continuing resolution because Republicans were set to defeat it. After it failed, Manchin and a group of Democrats said they would seek other legislative vehicles to attach it to before the end of the year. That left two must-pass pieces of legislation: the defense bill and December’s government spending bill. Democratic leaders have not yet made any decisions on which path to pursue as they await the results of next week’s election which could scramble political incentives. Republicans are expected to take control of at least the House, where GOP leaders have indicated they plan to introduce their own permitting package next year. Some Republicans have said they are wary of loading up the defense policy bill with unrelated measures like permitting, although GOP senators have indicated they’d like to work with Manchin to pass permitting legislation this year.”
Politico: The oil and gas paradox threatening Biden’s party at the polls
BEN LEFEBVRE, 11/2/22
“President Joe Biden’s regulators have approved new oil and gas wells at a far faster pace than the Trump administration did during its first 21 months in office — a fact that undermines Republican election-year arguments about the causes of this year’s high gasoline prices,” Politico reports. “The U.S. has also produced more crude oil since Biden’s inauguration than it had done during the equivalent period of former President Donald Trump’s presidency, a POLITICO review of federal energy data shows. The Biden-era petroleum surge came despite his promises to shift the nation away from fossil fuels to combat climate change, as well as his unsuccessful efforts to end new oil and gas drilling on federal lands and waters. But it hasn’t shielded Biden from taking a political strafing over gasoline prices, which reached a record high in June and remain a potent campaign issue for next week’s midterm elections… “On Monday, Biden accused the oil industry of “war profiteering” and threatened to push for stiffer taxes on the companies’ earnings. But Republicans have hammered one consistent message this year: Biden caused motorists’ pain at the pump by shutting down U.S. oil and gas production. “Joe Biden’s anti-energy agenda has destroyed American energy independence,” House Republicans tweeted last week as part of a cascade of similar GOP messages aired on social media and television appearances in the run-up to the election. An analysis of federal energy data shows a different story, however… “Any lingering hesitancy to produce more oil stems from the industry’s own aversion to cross its Wall Street lenders by returning to pre-covid spending levels, market analysts said — not from government policy… “At present, no specific U.S. policy is meaningfully hindering U.S. production,” Reed Olmstead, executive director for upstream research at the market analyst firm S&P Global Commodity Insights, told Politico.
Bloomberg: Pipeline CEO Likens Biden’s Energy Policy to ‘Saturday Night Live’ Skit
Gerson Freitas Jr, 11/2/22
“The co-chief executive officer of Energy Transfer LP, one of North America’s biggest pipeline operators, slammed the Biden Administration’s energy policy, likening its criticism of fossil-fuel companies to “a sitcom or Saturday Night Live skit,” Bloomberg reports. “In an extended coda to the company’s earnings conference call late Tuesday, Marshall McCrea lamented what he said were “hostile” federal administrators installed to attack the energy industry, and questioned the pace of the transition to renewables, which he said threatened global energy security. McCrea cited the White House’s initial focus on curbing drilling permits and pipeline approvals, its subsequent push to boost oil supplies after gasoline prices surged this year, and the president’s threat earlier this week to tax oil companies’ “windfall profits” unless they invest to boost production. “I mean, my goodness, if this doesn’t seem like a sitcom or Saturday Night live skit, it’d be funny if it wasn’t so tragically sad,” he said. “I guess we’re kind of tired of being attacked in the fossil-fuel business.” Accelerating the transition from fossil fuels to renewables has been central to Biden’s agenda. Pipeline operators stand to benefit from the Democrat’s subsidy bonanza for clean-energy projects including those involving green hydrogen, carbon capture and renewable natural gas.”
EXTRACTION
Canadian Press: Cenovus CEO takes aim at oil and gas critics; says sector pays billions in taxes
Amanda Stephenson, 11/2/22
“With oil and gas companies under increased scrutiny for how they choose to use their record-breaking profits in 2022, the chief executive of Cenovus Energy Inc. took aim at critics Wednesday by highlighting the billions of dollars the industry is expected to contribute in taxes and royalties this year,” the Canadian Press reports. “In a conference call to discuss the company’s third-quarter earnings, Cenovus CEO Alex Pourbaix cited a recent analysis by investment firm Peters & Co. that predicts the oil and gas sector will return approximately $50 billion in the form of royalties and taxes to Canadian federal and provincial governments this year. “That’s money that pays for health care, education, arts and culture and much more across this country,” Pourbaix said. “To put this in perspective, our sector’s anticipated government contributions this year are equivalent to more than two-thirds of the funding for all of Canada’s hospitals last year.” Pourbaix’s comments come just days after President Joe Biden accused U.S. oil and gas companies of “war profiteering” and floated the possibility of a “windfall tax” on the sector unless it uses some of its record revenues to help lower fuel prices for American consumers. Canada’s oil and gas sector has also been under fire recently from critics who say companies should be using more of their hefty profits to invest in decarbonization projects. Federal Environment Minister Steven Guilbeault has said the industry should be putting more money into clean energy projects instead of share buybacks and dividend increases.”
Financial Post: Cenovus chief says Canada needs to get serious on carbon capture in face of global competition
Meghan Potkins, 11/2/22
“Ottawa will have to get more competitive in response to carbon capture incentives on offer in jurisdictions like the United States and Norway before oil and gas companies move on major carbon capture projects, Cenovus Energy Inc. chief executive Alex Pourbaix said,” the Financial Post reports. “Pourbaix pointed to the new U.S. inflation act, which boosted a production tax credit known as 45Q to provide emitters up to $85 per metric tonne of carbon dioxide captured and permanently stored. He said the incentive added “significant support” for American producers to cover both the capital investments and operating costs related to carbon capture and storage projects (CCS). And while he praised the 50 per cent investment tax credit for CCS that Ottawa unveiled in the last federal budget, Pourbaix said there’s more work that needs to be done. “It is a huge lift. Industry is going to spend many billions of dollars on it ourselves,” Pourbaix said on a call with investors. “But pretty much every jurisdiction in the world that is proceeding on carbon capture and storage is really doing that with significant involvement of multiple levels of government.” “...Earnings for the Calgary-based oil and gas producer were still up 192 per cent over the same period last year, buoyed by overall higher energy prices since Russia’s invasion of Ukraine.”
E&E News: Tech companies driving CO2 removal are in financial free fall
Corbin Hiar, 11/3/22
“A handful of major corporations that founded the Frontier climate initiative have been rocked by financial and legal challenges, raising questions about their nearly $1 billion bid to remove carbon from the atmosphere,” E&E News reports. “The valuations of four Frontier founders — Google parent company Alphabet Inc., Meta Platforms Inc., Shopify Inc., and Stripe Inc. — have collectively dropped by more than $1.5 trillion this year. The market capitalization of online payments platform Shopify and Meta, the company formerly known as Facebook, have been particularly hard hit: Each has plummeted by more than 70 percent since the end of 2021. And global consulting partnership McKinsey & Co., the other member of Frontier, is under investigation for tax fraud in France and is facing corruption charges in South Africa. Taken together, the financial tumult battering the high-profile coalition for advancing carbon-catching technologies illustrates the danger of relying on corporations to fund climate innovations that scientists say are essential to prevent the worst effects of warming… “Other experts downplayed the possibility that Frontier member companies could fail to deliver on their carbon removal commitments… “Even if a recession leads more businesses to weaken their climate commitments, the passage of the Inflation Reduction Act and other government incentives should keep many carbon removal startups afloat in the near term, Burns told E&E. The climate package increased the value and expanded access to a tax credit, known as 45Q, for direct air capture project developers.”
Reuters: Canadian natgas firms warn clock ticking on Montney shale deal with First Nations
Nia Williams, 11/1/22
“British Columbia is nearing a deal with First Nations to restart stalled development in Canada's prolific Montney shale play, gas industry companies said in recent days, adding they have urged the provincial government to move quickly or risk missing the winter drilling season,” Reuters reports. “New well licenses in the B.C. Montney have been frozen since last year, when a landmark B.C. Supreme Court decision ruled in favour of a claim from the Blueberry River First Nation that the cumulative impacts of natural resource exploration and development had damaged their traditional territory. The court agreed that B.C. had violated the nation's rights to use the area for hunting, fishing and cultural activities by allowing so much natural resources development. The court awarded the First Nation C$65 million ($48 million) and control of 38,000 square kilometres of the Montney, Canada's top gas-producing play where around 25 companies including Canadian Natural Resources Ltd (CNQ.TO) and Tourmaline Oil (TOU.TO) operate. Nearly 18 months later, the B.C. government, Blueberry River and other First Nations in the region are still discussing how the province should review and grant permits for natural resource projects… “Laura Lau, portfolio manager with Brompton Group, a Tourmaline shareholder, told Reuters the court ruling highlighted political risk in Canada. "It just feels like in Canada there's always something. We've got to show we have the ability to remove some of these political risks, otherwise people will just invest in U.S. companies instead," Lau told Reuters.
Oceana: Stopping the Expansion of Offshore Drilling Can Help Prevent the Worst Impacts of the Climate Crisis, New Analysis Finds
11/2/22
“As world leaders prepare to gather in Egypt next week for the 27th UN Climate Change Conference (COP27), Oceana released a new analysis calculating the benefit of halting new offshore oil and gas drilling as an essential part of the climate solution. According to the analysis, stopping the expansion of offshore drilling — combined with the phasedown of existing production driven by reduced fossil fuel demand as clean energy comes online — would deliver up to 13% of the annual greenhouse gas emission reductions needed to prevent the worst effects of the climate crisis. Adding offshore drilling to the five ocean-based solutions from the 2019 High Level Panel for a Sustainable Ocean Economy report (e.g., protecting marine habitats, safeguarding climate-friendly seafood, improving shipping efficiency, replacing fossil fuel power with renewable sources, and improving catch efficiency and fuel use in fishing) would take the total ocean contribution to nearly 40% of the emission reductions needed by 2050 to keep the planet from warming a catastrophic 2 degrees Celsius, the analysis finds… “Currently, nearly 30% of all oil and gas production comes from offshore drilling, which generates greenhouse gas emissions throughout the entire process — from exploration and extraction below the seafloor; through emissions during intensive processing, refining, and transporting; and, most significantly, from the burning of the fuel itself. By stopping the expansion of offshore drilling and promoting clean energy policies that would push a phasedown of production levels worldwide, the analysis finds we could reduce emissions by 6.3 billion metric tons a year by 2050. That is equivalent to the annual emissions we would save by removing 1.4 billion cars from the road.”
High Country News: The nonprofits cleaning up the oil and gas industry’s ‘dirty little secret’
Terry L. Jones, 11/1/22
“Curtis Shuck stumbled upon what he calls one of the oil and gas industry’s “dirty little secrets” while visiting Montana for a work-related trip in 2019. It was a rusted, uncapped oil well in the middle of a wheat field — literally a hole in the ground. And there wasn’t just one; there were several,” High Country News reports. “These were images that I could not get out of my mind that day,” Shuck told HCN. At the time, he had worked for 30 years in the oil and gas industry. “I was alarmed, disappointed, embarrassed and shocked that the industry would leave something like this behind without at least cleaning up after itself. I could not ‘unsee’ this stuff.” The wells aren’t just eyesores. They can leak hydrogen sulfide, benzene and arsenic into the groundwater and are a significant source of methane — a highly flammable, powerful gas that traps heat in the Earth’s atmosphere. Shuck’s discovery in Montana led him to establish the Well Done Foundation, a nonprofit organization that in the past year has plugged more than 22 orphaned and abandoned oil wells in nine states… “Companies that drill on federal land are required to provide a bond to plug wells when they are done with them, but a 2019 Government Accountability Office report found that in more than 80% of cases, the bonds didn’t provide nearly enough money to properly close the wells… “Environmental Innovators of America, an Oklahoma nonprofit created by top executives from several oil and gas companies, is going after private donations from large corporations to fund their work. The federal money allocated for plugging wells has too much red tape and bureaucracy to bother dealing with, Derek Williamson, one of the founders of the group, told HCN. It is focusing on Oklahoma for now but has longer term plans to operate in Louisiana and other fossil fuel producing states. Fellow Environmental Partners, also based in Oklahoma, is a third nonprofit focused on closing the abandoned wells… “Environmental Innovators is also using carbon offsets to entice people to donate.”
TODAY IN GREENWASHING
E&E News: Greens push to oust Coke from COP 27 sponsorship
E.A. Crunden, 11/2/22
“Two environmental groups want a major beverage giant pushed out of the world’s largest climate conference over plastics concerns, arguing the material has become “the new coal” and warrants a major response,” E&E News reports. “Just Zero and Beyond Plastics, two U.S. based-groups, called on the United Nations Climate Change Conference to kick Coca-Cola Co, out as a sponsor of this year’s COP 27 on Wednesday. They asserted that the beverage manufacturer’s role in the event is undermining the global fight against climate change and is at odds with efforts to bring down emissions. “COP 27 is supposed to focus on solutions for fighting the catastrophic climate crisis,” Judith Enck, who heads Beyond Plastics and previously served as an Obama-era EPA regional administrator, told E&E. “Instead, we’re allowing it to be a stage for corporate greenwashing.” She was joined in her remarks by Just Zero State Policy Director Peter Blair, who said the company’s sponsorship of COP 27 “makes it hard to see this meeting as anything more than a performative act.” Other corporate sponsors for COP 27 include Microsoft Corp., IBM Corp., Boston Consulting Group Inc. and Vodafone Group PLC. But Coca-Cola has drawn ire from anti-plastics groups who have long targeted the global beverage manufacturing force over plastics, a fossil fuel product.mThey have pushed back hard on Coca-Cola’s role as a sponsor for this year’s COP event, noting not only the realities of plastics production but also the mounting environmental crisis associated with pollution and dismal recycling numbers. Moreover, advocates have cited a 2021 report from Beyond Plastics and Bennington College in Vermont that found plastics are poised to overtake coal as a driver of climate emissions within a decade. Coca-Cola has repeatedly emphasized its recycling commitments and investments, which include plans to achieve net-zero emissions by midcentury and heavily combat marine debris. But an annual audit of corporate brands by Break Free From Plastic, an international coalition, has notably named Coca-Cola “the world’s top plastic polluter” for four years running.”
The Express-Star: Midship Pipeline donates $10,000 to Chickasha Community Foundation
Jessica Lane, 11/2/22
“Tuesday, Oct. 18 was a big day for Chickasha’s Downtown Park. Just before crews went to work placing the lampshade atop the Chickasha Leg Lamp, Midship Pipeline presented a $10,000 check to the Chickasha Community Foundation. The funds will go towards planting trees within the new park,” The Express-Star reports. “Midship Pipeline has donated $80,000 to eight organization in eight counties for beautification projects. “We are tremendously grateful for Midship’s generosity in giving us this extraordinary gift to help beautify and invest in our proposed Downtown Park,” Jim Cowan, director, Chickasha Economic Development Council, said in a news release. He thanked Midship for their investment in Chickasha. The Midship Pipeline is a 200-mile natural gas pipeline that connects new gas production from the emerging South Central Oklahoma Oil Province (“SCOOP”) and Sooner Trend, Anadarko Basin, Canadian and Kingfisher Counties (“STACK”) plays in the Anadarko Basin in Oklahoma to growing Gulf Coast and Southeast markets via deliveries to existing pipelines. The Midship pipeline was placed in service in April 2020 and continues to operate safely and reliably. Midship has now gifted over $715,000 to community organizations and programs across the eight counties it traverses, supporting first responders, agriculture education, science, technology, engineering and math (STEM) initiatives and rural hospitals during the COVID-19 pandemic. “Midship is honored to make these donations to benefit some of the most deserving organizations in Oklahoma,” said Matt Barr, Midship Pipeline representative. “Midship is committed to supporting the beautification and restoration of rural Oklahoma and this gift is one way we can show our support. We want to thank Keep Oklahoma Beautiful and each local organization for their efforts in helping us identify where the gifts can best be utilized.”
OPINION
Los Angeles Times: Op-Ed: We can’t afford to shutter California’s aging oil refineries yet
Gregory Brew is a historian of oil and a postdoctoral fellow at the Jackson School of Global Affairs at Yale University, 11/3/22
“After a summer with some historic gasoline price increases, California continues to experience the highest gas prices in the country by a considerable margin,” Gregory Brew writes for the Los Angeles Times. “California’s prices are partly the result of geographic accident, with the West Coast distant from oil production and refining facilities in other states. Officials should be careful as they wean the state off fossil fuels, a resource that will remain crucial to the state’s economy for the foreseeable future. But there may be ways to protect consumers from wild jumps in the price of gasoline, diesel, and other petroleum products. California has long discouraged local fossil fuel production to protect the environment, with processing now increasingly reliant on an array of aging refineries. A statewide shift to electric vehicles will eventually alleviate the pressure of $6 gasoline, but California still has to meet short-term needs while maintaining its course away from fossil fuels… “These facilities’ infrastructure is aging — several refineries have been operating for more than a century — and production is interrupted when machinery fails. In April, when state refineries shut down for seasonal maintenance, gasoline imports to California rose to near-record levels, sending prices soaring. Shutdowns in October again sent prices shooting upward. The locations of refineries and a lack of storage capacity also encourage refiners to export their products when market demand is low. Despite high prices, California still exports roughly as much gasoline as it imports. The state’s commitment to cleaner energy, combined with a high gasoline tax, raises prices too. California mandates its refineries produce low-carbon fuel, and oil companies complain such measures make refinery operations more expensive… “High gas prices punish consumers, especially those who can’t afford electric cars. Shuttering refineries will make a bad situation even worse. A middle course, one that acknowledges near-term fuel needs, could help prevent further spikes and ensure a sustainable transition to alternative energy.”
Vancouver Sun: Vaughn Palmer: Is pace of Coastal GasLink pipeline construction sustainable if more attacks occur?
Vaughn Palmer, 11/2/22
“The B.C. Liberals challenged the New Democrats this week over the recent torching of RCMP vehicles in Smithers, linking the attack to the bitter standoff over construction of the Coastal GasLink natural gas pipeline,” the Vancouver Sun reports. “Last week, eight vehicles, including four RCMP vehicles and an ambulance, were burned in Smithers in another brazen criminal act,” said B.C. Liberal MLA Shirley Bond, referring to the attack in the early hours of Oct. 26. The RCMP vehicles were in a unit that was explicitly set up to protect construction of the Coastal GasLink (CGL) pipeline, which will deliver natural gas to the multibillion-dollar LNG terminal now under development at Kitimat. Bond also referenced the nighttime rampage in February when “masked, axe-wielding assailants violently attacked workers and a (CGL) construction site,” causing millions-of-dollars in damage. “Yet there have been no consequences for these attacks,” said Bond. “Apparently, under the NDP, the rule-of-law no longer matters.” “...Not placated, Bond launched a followup question at Rankin, targeting his involvement in an unsuccessful effort to resolve the opposition to the pipeline by some hereditary chiefs of the Wet’suwet’en First Nation. Before Rankin was elected to the Legislature in 2020, he was paid almost $150,000 in fees and expenses as a facilitator in the dispute… “We have tried to get them to agree, with the federal government, to attend a summit,” he told Bond. “We continue to hope that that will take place … It’s no secret to this House that there’s great disagreement on the issue of the pipeline.” The CGL project remains controversial for other reasons as well. Recently, it was the target of a stop-work order from provincial environmental regulators, though I gather work has now resumed. Overall, the 670 kilometre line is reported as 75 per cent complete. However, progress has been slow on a 77-km-long section south of Smithers in Wet’suwet’en territory. As of last week, only 11 km of pipe were installed through that section. That’s an improvement over the summer, when precisely no pipe had yet been placed in that section. Still, you have to wonder whether the pace of construction would be sustainable if there are any more attacks in the dead of night.”