EXTRACTED: Daily News Clips 12/10/21
PIPELINE NEWS
Common Dreams: The Future of Fossil Fuels Hinges on Two Huge Midwestern Pipeline Fights
Facebook: Protect the Planet Stop TMX: Trans Mountain Cost-Cutting Leads to Sinkholes and Questions Integrity of Fraser River Crossing
Richmond Times-Dispatch: Chickahominy Pipeline hosts first 'warm body outreach' event to address questions about proposed 83-mile natural gas pipeline
Grand Forks Herald: 'Uncertainty' on climate, carbon regulations could shorten economic life of Enbridge pipelines
Toronto Star: ‘Wrong side of history’: Is Jagmeet Singh’s stance on pipelines splitting the NDP?
Burnaby Beacon: Federal government should reconsider TMX in the wake of massive floods: lawyer
Facebook: Beyond Extreme Energy: Occupy Biden
KTOO: Fired commissioner Hollis French gets hearing on 2017 Cook Inlet pipeline leak
WASHINGTON UPDATES
Reuters: White House not weighing oil export ban, source says, as lawmakers urge higher domestic output
Politico: MOVING THE CAP ON 45Q
E&E News: ‘It’s grotesque’: Inside the Hill methane fight
E&E News: Report: Interior oil program is wasteful, outdated
STATE UPDATES
Texas Observer: THE EXPORT BOOM
E&E News: Earthquakes linked to drilling are messing with Texas
Pittsburgh Post-Gazette: Pa. releases final rule to cut methane leaks from existing oil and gas well sites
KHNL: Diesel fuel levels more than double DOH limits found in Navy’s Aiea Halawa water shaft
TMJ4: Oil spill: 400 gallons discharged into Menomonee, Milwaukee rivers, Milwaukee Riverkeeper says
Carlsbad Current-Argus: State economists warn of volatility as oil and gas drives New Mexico's revenue growth
EXTRACTION
Calgary Herald: Varcoe: Cenovus CEO says carbon capture could be 'next boom'
Reuters: Canadian oil output to peak 7 years sooner than previously forecast, regulator says
Canadian Press: Kenney touts 'Alberta is back' in first speech to Calgary Chamber since 2019
CabinRadio.ca: NWT doesn’t support oilsands water release, is ‘in dialogue’
The Intercept: OIL-BACKED GROUP OPPOSES OFFSHORE WIND — FOR ENVIRONMENTAL REASONS
Bloomberg: Electric Vehicles Are Going to Dent Oil Demand—Eventually
OPINION
iPolitics.ca: Ottawa must address the violence against the Wet’suwet’en people
National Observer: Feds must protect Albertans from tailing ponds pollution
Virginia Mercury: DEQ is still failing to protect state waters from MVP
POWHR: Code Red for Humanity
Deseret News: Opinion: Where are the lower gas prices from Biden’s release of oil reserves?
PIPELINE NEWS
Common Dreams: The Future of Fossil Fuels Hinges on Two Huge Midwestern Pipeline Fights
PETER MONTAGUE, 12/9/21
“The future of the fossil fuel industry depends on an expensive Rube Goldberg technology called carbon capture and storage (CCS), intended to capture billions of tons of hazardous waste carbon dioxide (CO2) from smokestacks and bury it deep underground where optimistic experts say it will remain forever. Pessimistic experts say it won't work,” Common Dreams reports. “The goal is to continue burning fossil fuels for the next 50 years but keep the resulting CO2 out of the atmosphere where it heats the planet, intensifying storms, floods, droughts, heat waves, wildfires, crop failures, ocean acidification, and rising sea levels. CCS is the fossil-fuel industry's last-gasp attempt to prevent the U.S. and the world from abandoning fossil energy in favor of cheaper, cleaner solar power… “To burnish the green credentials of CCS, two major projects are getting underway now in the Midwest, to capture CO2 from dozens of refineries that turn corn into ethanol alcohol, which gets mixed into gasoline. The climate credentials of the corn-ethanol industry are shaky… “Now a tremendous fight is brewing in the Midwest as two major CO2 pipeline projects seek permission to install over 3000 miles of pipe to carry a total of 27 million tons of liquid hazardous waste CO2 per year across privately-owned farmland, with many land owners saying "No." There's already talk of court battles to stop both projects. If these two pipelines succeed, CCS in the U.S. will more than double in size overnight, very likely flashing a green light for more huge CCS projects—only made possible by Uncle Sam's 45Q tax credit. At $50 per ton, 27 million tons of buried CO2 would bring the two pipelines a total of $1.35 billion of free money each year. Furthermore, at the end of each project, the two companies would get to walk away, with Uncle Sam accepting liability for any future harm to underground water supplies, earthquakes, or CO2 leakage… “The future of U.S. CCS—and therefore of the fossil fuel enterprise itself—likely hinges on the outcome of these two huge pipeline fights.”
Facebook: Protect the Planet Stop TMX: Trans Mountain Cost-Cutting Leads to Sinkholes and Questions Integrity of Fraser River Crossing
12/8/21
“Construction on the Trans Mountain Expansion (TMX) pipeline near the Fraser River has been accompanied by several troubling incidents in the last three weeks. Evidence has come to light that cost-cutting measures may be responsible for a recurring sinkhole that was affecting traffic on the Mary Hill bypass in Coquitlam. Members of the public are concerned that inadequate regulations and lacking oversight threaten the long-term integrity of local and regional ecosystems and communities, and that the Canadian government is exacerbating the climate emergency by permitting this project to continue… “Protect the Planet (PPST) is concerned that the sinkholes and the spill are yet more symptoms of Trans Mountain’s reckless disregard for environmental regulation. Teacher and ecologist, Dr. Christine Thuring, said, “When you’ve personally observed infractions, from overlooked bird nests to preventable spills, you lose trust in that company, whether Crown or private. We know that laws are being broken on a regular basis by this project. Our small team of volunteers are on the ground monitoring construction here because no government agencies are reporting the violations we regularly observe. In more rural settings, it's basically the Wild West. We've witnessed TMX clearcutting right through and over fish-bearing streams. And let's not forget the genocide side of this project, with its male-dominant work camps built in remote Indigenous communities, who have never given Free, Prior and Informed consent for any of this."
Richmond Times-Dispatch: Chickahominy Pipeline hosts first 'warm body outreach' event to address questions about proposed 83-mile natural gas pipeline
Holly Prestidge, 12/9/21
“Chickahominy Pipeline LLC held a highly anticipated virtual public meeting Thursday night, five months after residents in five central Virginia counties were surprised with land survey letters about the potential for a then unknown pipeline project that may go through their properties,” the Richmond Times-Dispatch reports. “Led by company representatives, the virtual Zoom meeting — described by Chickahominy Project Outreach's Beth Minear as the first "warm body outreach" — was the first public engagement event held by Chickahominy, which wants to build an 83-mile pipeline as part of a proposed project that involves a new power plant in Charles City County… “In response to the lack of early engagement efforts, Minear told the Dispatch that "this project was so different from other pipeline projects that ... didn't have a local benefit [and] the company wanted to get a feeling for constructability and the routes first, to see is this even feasible in this area first before we started the outreach." "It was a mistake — we should have done outreach first," she told the Dispatch. But "we heard you — we've not done a great job in outreach prior to that and we're making up for it, and we hope to gain your support." Following a question about the benefit to landowners who agree to allow the pipeline on their property, Minear said the benefits don’t necessarily come from the land, "other than ensuring energy and reliability for your entire community going forward." She said studies have shown that real estate values don't diminish with rights-of-way.”
Grand Forks Herald: 'Uncertainty' on climate, carbon regulations could shorten economic life of Enbridge pipelines
Jimmy Lovrien, 12/9/21
“Uncertainty fueled by the regulation of carbon emissions and other environmental actions could shorten the economic life of Enbridge’s mainline pipeline system, the company disclosed in federal regulatory filings earlier this year,” the Grand Forks Herald reports. “A study filed by the Federal Energy Regulatory Commission in May examining the economic life of the Lakehead pipeline system — a system of pipelines that begin in Canada and pass through Minnesota, Wisconsin and Michigan — outlines ways in which the company believes the economic life of the system could be shortened. Past studies listed a 30-year life from the time the study was completed (a 2015 study predicted a 2045 “truncation” date — the end of its useful life — and a 2005 study predicted 2035). But the filing made in May 2021 with the Federal Energy Regulatory Commission went through 2020 and only puts the system’s economic life at 20 years ahead, to Dec. 31, 2040… “Kellner told the Herald the new Line 3 had a depreciable life of 30 years. Additionally, pipelines can continue operating beyond that time frame. “The mere fact that an asset is fully depreciated does not mean that that asset has reached the end of its useful life and should be retired,” Kellner told the Herald. “Enbridge has many, many examples of assets which, often through their sheer longevity of service, have become fully depreciated, but which remain fully operational and continue to provide service to Lakehead system shippers.” Last week, Honor the Earth, an Indigenous-led environmental group that has long fought Line 3, petitioned the Minnesota Public Utilities Commision to open a docket that would establish a abandonment trust fund for the new Line 3, which was a condition of its approval. The group cited Enbridge's May 2021 depreciation study in the petition and urged the Public Utilities Commission to establish an abandonment trust fund “as soon as possible to ensure that new Line 3, once abandoned, does not become a financial burden on private as well as state and local government landowners.”
Toronto Star: ‘Wrong side of history’: Is Jagmeet Singh’s stance on pipelines splitting the NDP?
Alex Ballingall, 12/8/21
“It’s hard to get more “NDP” than Joy Henderson,” the Toronto Star reports. “But Henderson says she’s now done with the NDP. In an interview with the Star, Henderson said she is renouncing her party membership over how the NDP reacted to the recent arrests of anti-pipeline demonstrators on Wet’suwet’en traditional territory in northern British Columbia. While federal NDP Leader Jagmeet Singh expressed concerns about the RCMP’s use of force, Henderson wanted to see a stronger stand against construction of the natural gas pipeline without the consent of the nation’s hereditary leaders. “It’s not enough anymore,” Henderson told the Star. “If I wanted incrementalism I would have gone with the Liberals. I think a lot of people are feeling that way.” The dispute over the Coastal GasLink pipeline in B.C. has exposed — and perhaps deepened — a fissure that cuts through the New Democratic Party. There is a faction that wants the NDP to stake a more radical position on climate change and reconciliation, issues that many see as intertwined. Though it is difficult to measure this disaffection, the arrests of Wet’suwet’en demonstrators have brought concerns into the open. At least 25 federal NDP riding associations, three MPs and several former candidates have now signed a statement circulating online to express “distress” with the federal NDP’s response to the situation. These include climate campaigner Avi Lewis, who ran for the NDP this year on the B.C. coast, as well as former NDP MP Romeo Saganash, and current MPs Leah Gazan, Lori Idlout and Matthew Green. For Anjali Appadurai, a signatory in B.C. who narrowly lost the recent election for the NDP in the riding of Vancouver-Granville, Singh’s NDP has a problem on climate change and reconciliation. “I don’t think anyone has taken enough of a stand — Jagmeet included,” Appadurai told the Star, who wants the federal NDP to call for a halt to construction of the Coastal GasLink. “There’s a moral and a policy choice made there, and this choice is on the wrong side of history,” she told the Star. Appadurai also said the federal NDP is too soft on the Trans Mountain expansion — a government-owned oil pipeline project that is also opposed by many affected First Nations as well as New Democrats.”
Burnaby Beacon: Federal government should reconsider TMX in the wake of massive floods: lawyer
Dustin Godfrey, 12/9/21
“The floods that plagued BC starting last month are a two-fold reason for reconsidering the Trans Mountain pipeline expansion, according to an environmental lawyer,” the Burnaby Beacon reports. “On the one hand, the floods are a reminder of the very real impacts of climate change, caused broadly by fossil fuels like oil. And on the other hand, the monetary cost of the pipeline will likely increase with the disastrous weather event. West Coast Environmental Law put out a report in September this year indicating the cost of the pipeline expansion had “almost certainly” gone up by millions of dollars since the latest estimate from Trans Mountain. That’s in large part because of delays in all seven sections of the pipeline, ranging from two to 23 months… “Now, Eugene Kung, one of the authors of the report and a staff lawyer with the firm, has come out with a blog post suggesting the flooding from the storms that drenched the province last month will only compound on those delays and added costs… “Currently, the pipeline is intended to be in service by the end of next year. In fact, Trans Mountain told Burnaby Beacon in September that, despite its delays, it didn’t foresee any delays to the projected in-service date of Dec 31, 2022. But that’s appearing less and less likely, especially with the impact of the flooding. “I guess we’ll see over time, hopefully in the coming months, exactly how much delay there is, but I’m pretty confident in saying that it’s … going to cost, potentially billions of dollars,” Kung told the Beacon. “And for that reason, what we’re saying is this is an appropriate time for the federal government to have a hard look at this project, to require the Crown corporation, the public institution, to actually provide an update to the Canadian public about what the impacts are… “The likelihood that this becomes a stranded asset … is very high. And whether it’s the Canadian public holding the bag or an Indigenous consortium, as has been speculated in the media, neither of those are good scenarios in my mind.”
Facebook: Beyond Extreme Energy: Occupy Biden
12/8/21
“Are you tired of waiting around for our elected officials to take action on the climate crisis and other social issues? Here in the president's home state, we have a unique opportunity to draw the attention of the president and the nation. From noon on Christmas to noon on New Year’s Day, we will be boldly and peacefully occupying public space near President Biden’s Wilmington neighborhood. We will demand that the president give a gift to the world this holiday season by using his executive powers to declare a climate emergency and stop new fossil fuel projects! Please join us, whether it be a four hour shift or for the whole week. This will be a meaningful and joyful time of activism and organizing where joining together across all imaginary divisions will be at the forefront. We will host activities and local speakers/artists and encourage you to get in touch if you have an idea, talent, or resource to help the movement. Though we plan to have chairs, blankets, snacks, and a variety of other essentials on site, we cannot guarantee enough for all attendees, so we recommend that you bring along anything that you need and make sure to wear warm clothes!”
KTOO: Fired commissioner Hollis French gets hearing on 2017 Cook Inlet pipeline leak
Sabine Poux, 12/9/21
“It’s been nearly five years since a Hilcorp pipeline off the coast of Nikiski began leaking fuel gas into Cook Inlet, a problem that lasted for months,” KTOO reports. “State regulators will now revisit the circumstances of that leak at a hearing next week. The Alaska Oil and Gas Conservation Commission will hear a complaint from a former commissioner after he successfully sued the agency for not taking action several years ago. The former commissioner is Hollis French, who’s also served as a Democratic state senator from Anchorage. At the time of the leak, he served on the conservation commission, which is charged with preventing waste in the oil industry and protecting the environment. French told KTOO he doesn’t think commissioners will change their minds or that fine Hilcorp as a result of the hearing… “The agency’s position on this has been extremely shortsighted,” he told KTOO. “And I’m hoping, through this presentation, to at least let the public know why I feel so strongly about this. And maybe the agency will learn something in this process.” “...The line sprung a leak late in December, 2016. The leak continued for three months until Hilcorp, which had cited danger from ice, repaired it. Commissioners said it was up to federal regulators, not state ones, to look into the leak. Since the gas had already left the place it was produced, they said, it belonged to Hilcorp and was no longer up to them to regulate. But French disagreed, saying that the state commission had a responsibility to investigate. After Gov. Mike Dunleavy fired French from the agency in 2019, he petitioned the commission to take a deeper look. When the commission said no, he sued. The Supreme Court of Alaska sided with him earlier this year.”
WASHINGTON UPDATES
Reuters: White House not weighing oil export ban, source says, as lawmakers urge higher domestic output
By Stephanie Kelly and Jarrett Renshaw, 12/9/21
“The Biden administration is not considering a ban on U.S. oil exports to try to lower gasoline prices, a source familiar with the Biden administration's thinking said on Thursday,” Reuters reports. “A bipartisan group of lawmakers earlier in the day urged U.S. President Joe Biden in a letter not to halt exports. The eight members of the U.S. House of Representatives said a crude export ban would not help lower gasoline costs as the White House hopes, but instead likely raise prices further by restricting global oil supply and discouraging domestic production, according to the letter seen by Reuters… “Brian Deese, director of the National Economic Council, told reporters on Thursday that oil exports is "not an issue we are currently focused on." The administration has previously said it would consider other tools to manage higher energy prices, including a potential export ban… “Biden has authority under the legislation to declare an emergency and limit or stop oil exports for up to a year. The letter on Thursday follows another letter from Democratic House members last month, which urged Biden to reinstate - at least temporarily - the export ban.”
Politico: MOVING THE CAP ON 45Q
Matthew Choi, 12/9/21
“Carbon capture advocates are pushing to change House language around the tax incentive in the reconciliation bill for deploying CCS technology,” Politico report. “The bill sent to the Senate raises the tax credit to $85 per captured ton of CO2 from $50, but it requires 75 percent of a facilities’ total emissions to be captured in order to qualify. That would shut out power stations that deploy carbon capture technology in a more piecemeal fashion, advocates say, and could make the tax credit functionally inaccessible. Several key lawmakers, including Manchin, Tina Smith (D-Minn.) and Ben Ray Luján (D-N.M.) are part of a group of lawmakers discussing scrapping or at least lowering the 75 percent threshold, Politico reports. Sen. Ron Wyden (D-Ore.) was noncommittal to changing the text Wednesday, but his staff has already made a similar concession for industrial facilities earlier this year. After carbon capture advocates levied complaints against a similar 50-percent capture threshold for non-generating facilities, it was scrapped in the reconciliation text passed by the House. But the 75-percent threshold still has its defenders, particularly House Democrats who fear removing it could open the door for power plants to claim millions in credits by applying carbon capture to uneconomic coal plants that would otherwise retire, a move that would undercut the climate benefits.”
E&E News: ‘It’s grotesque’: Inside the Hill methane fight
Nick Sobczyk, Heather Richards, 12/10/21
“Progressives set out to write a reconciliation bill that would scrap special tax treatment for fossil fuel companies. Instead, they might hand the oil and gas industry a new subsidy,” E&E News reports. “Democrats struck a deal in October with Senate Energy and Natural Resources Chair Joe Manchin (D-W.Va.) and Texas moderates to pair a methane fee with $775 million in grants, loans and rebates for oil and gas companies to monitor and reduce methane pollution, which accounts for 20 percent of all global emissions, according to EPA. It was a difficult pill for House progressives to swallow as they voted to advance their $1.7 trillion climate and social spending bill, and it’s still possible the methane program could drop out altogether… “Democratic committee leaders never could garner serious support for tossing out the array of special tax treatments enjoyed by oil and gas companies worth tens of billions of dollars every year. At the same time, industry and moderates have thrown up roadblocks to virtually every attempt to write policy that would punitively force reductions in fossil fuel emissions, including the methane fee and the proposed Clean Electricity Performance Program, which was struck from the bill weeks ago at Manchin’s request. “It’s grotesque to be throwing hundreds of millions of dollars at methane polluters to get them to do the right thing. I mean, that is the opposite of how I would like to approach this,” Rep. Jared Huffman (D-Calif.), told E&E.
E&E News: Report: Interior oil program is wasteful, outdated
Heather Richards, 12/10/21
“The Interior Department is wasting money and man-hours sifting through paperwork on massive amounts of public lands acreage proposed for potential oil drilling that will never be sold at auction, a new Government Accountability Office report found,” E&E News reports. “The watchdog said the Bureau of Land Management — an agency of the Interior Department that oversees the federal oil and gas program — should consider charging oil and gas speculators to nominate public lands for oil sales. That practice may help depress speculation and cut the time and cost burden on BLM staff to weigh offering proposed lands for lease, according to the report released yesterday. The GAO report also found that BLM is behind in updating its guidance and fees, despite going through overhauls in how it holds oil lease sales, like the switch to online auctions in 2016. It recommends that BLM perform regular reviews of its fee structure… “But GAO’s review of past sales found that just a fraction of lands suggested for lease, and vetted by BLM, are brought to sale.”
STATE UPDATES
Texas Observer: THE EXPORT BOOM
AMAL AHMED, 12/7/21
“The viewing deck at Port Arthur’s City Hall offers visitors to the industrial city a view of the small downtown and the glimmering waterway. The channel is lined with massive tankers and refineries. John Beard, a former city councilman, can name each and every facility that’s visible on the horizon. Just like a city booster in another town might point out skyscrapers and their architectural features, Beard can tell you what each facility produces and what pollutants are carried in the plumes of gray-brown smoke from their flares,” the Texas Observer reports. “...Port Arthur isn’t alone. All along the nearly 400-mile stretch of Texas’ Gulf Coast, nearly a dozen oil and gas export terminals are slated to come online within the next decade… “In towns like Port Arthur, coastal residents are fighting against the new wave of oil and gas export plants: challenging permits, staging protests at home or joining forces with activists abroad, and calling for an outright ban on all fossil fuel exports. Farther down the coast, communities are rallying to stop industry from entering their area altogether. In Brownsville, local opposition to two LNG export plants started when the proposals were first submitted for review seven years ago.”
E&E News: Earthquakes linked to drilling are messing with Texas
Mike Soraghan, 12/10/21
“Neta Rhyne can look out her front window and see the world’s largest spring-fed swimming pool and the desert oasis that surrounds it in Toyahvale, Texas. And from there, she frequently feels earthquakes that she worries will destroy the spring and pool in Balmorhea State Park,” E&E News reports. "We fear these springs are one earthquake away from disappearing forever," Rhyne told E&E. “The oil and gas industry — which dominates the West Texas economy — is causing the shaking, scientists say. Specifically, the quakes are linked to injecting underground the billions of gallons of wastewater that come up from wells in the drilling zone known as the Permian Basin. It’s made the forbidding stretch of Chihuahuan Desert east of El Paso one of the shakiest spots in the nation. The plain between El Paso and Midland has been hit this year by 15 earthquakes of magnitude 4 or greater — large enough to rattle dishes and make cracking sounds in houses. And that’s just the most dramatic example of the surge in earthquakes in Texas and southeastern New Mexico in recent years, much of it linked to oil and gas. There have also been quakes around population centers — including Midland, Snyder and San Antonio. The trend is turning Texas into a seismic state and has even prodded the state’s industry-friendly oil and gas regulators into scaling back some oil field activity.”
Pittsburgh Post-Gazette: Pa. releases final rule to cut methane leaks from existing oil and gas well sites
LAURA LEGERE, 12/10/21
“Pennsylvania regulators have released a long-awaited final draft of rules to cut releases of smog-forming and climate warming air pollution from the state’s existing oil and natural gas well sites, but they will still not require companies to find and fix leaks at tens of thousands of low-producing wells,” the Pittsburgh Post-Gazette reports. “The rules are a last piece of the methane-reduction strategy that Gov. Tom Wolf announced nearly six years ago to cut down on emissions of the potent greenhouse gas from new and old sites across Pennsylvania’s oil and gas production industry… “The new state rules will require some well owners to perform leak searches four times a year and upgrade equipment already in the field to cut down on pollution from controllers, pumps, compressors and tanks… “Environmental groups said they were disappointed in the rules. They estimate that about 63,000 oil and gas wells will be free from having to perform leak detection surveys based on DEP’s production thresholds, including the vast majority of the state’s conventional wells. Those groups said that low-producing, leak-prone wells contribute about half of the methane emissions from Pennsylvania oil and gas production. They had pushed for the wells’ owners to be required to conduct routine surveys. “Most low-producing wells in the state are owned by larger companies with profits that dwarf the compliance costs of taking an optical gas imaging camera to inspect the sites once or twice a year,” Vanessa Lynch, a southwestern Pennsylvania-based organizer for Moms Clean Air Force, told the Gazette.
KHNL: Diesel fuel levels more than double DOH limits found in Navy’s Aiea Halawa water shaft
Dillon Ancheta and Rick Daysog, 12/8/21
“The Hawaii Department of Health confirmed Wednesday night that a second Navy water well has been contaminated by fuel,” KHNL reports. “The state said water samples taken from the Navy’s Aiea Halawa shaft on Sunday detected more than twice the safe limit of diesel fuel in the drinking water. This latest development shows that contamination of the Navy’s water system is more widespread than previously thought. Navy officials had confirmed petroleum contamination in the Red Hill drinking water well last week. “I’m pretty depressed. This was all foreseeable. We knew this would happen. Nobody listened to us,” David Kimo Frankel, attorney for the Sierra Club of Hawaii, told KHNL. “Navy officials have testified under oath that the tanks couldn’t leak and if they did leak it could no way reach drinking water and it has happened.” So far, two of Navy’s three wells which supply the drinking water for military and civilian families have now tested positive for petroleum contaminants. The Navy shut down its Red Hill well last week after hundreds complained about fuel smells. Many also got sick with some having to go to the hospital.
TMJ4: Oil spill: 400 gallons discharged into Menomonee, Milwaukee rivers, Milwaukee Riverkeeper says
12/9/21
“A used oil transfer error discharged 400 gallons of oil to the Menomonee River last Friday, according to Milwaukee Riverkeeper,” TMJ4 reports. “Milwaukee Riverkeeper says the Wisconsin Department of Natural Resources confirmed Komatsu has taken responsibility for the incident. Milwaukee Riverkeeper said on Thursday they received several reports of an oil sheen on both the Menomonee and Milwaukee Rivers. Officials say the discharge of oil went into the Menomonee River from a stormwater outfall near American Family Field. "They've placed a boom on site to contain oil, and continue to clean up the contaminated stormwater outfall," Milwaukee Riverkeeper told TMJ4. Officials tell TMJ4 the oil sheen has been observed along both rivers, both downstream and upstream of the Menomonee River confluence, due to the lake seiche and wind pushing some product upstream… “Komatsu released a statement Thursday regarding the oil spill. Officials say staff at its Joy Global facility on National Ave. initially believed it was a small spill of waste oil from a container. They tell TMJ4 upon learning of the spill, they immediately began cleanup procedures and reported the matter to the appropriate authorities. "As cleanup work continued this week, it became clear that the spill was more extensive than initially thought and we began to implement a more aggressive cleanup and remediation effort," Komatsu said in a statement.
Carlsbad Current-Argus: State economists warn of volatility as oil and gas drives New Mexico's revenue growth
Adrian Hedden, 12/9/21
“Growth in New Mexico’s oil and gas production resulted in higher-than-expected revenue, per a recent state budget report filed ahead of the upcoming 30-day Legislative Session, but some cautioned the industry could make the state's economy vulnerable to future market busts,” the Carlsbad Current-Argus reports. “...These increases were driven by growth in oil and gas production, the report read, which declined amid the COVID-19 pandemic and subsequently slumping fuel demands. But as vaccines for the virus became more accessible, demand grew and production surged New Mexico to second in the nation in oil production, surpassing North Dakota… “But despite the immediate growth as the world recovers from COVID-19, the LFC warned continued market volatility in fossil fuels could make New Mexico susceptible to future economic downturns. “New Mexico’s dependence on the energy sector makes oil market volatility one of the largest, most significant risks to the forecast – on the upside and the downside,” the report read.”
EXTRACTION
Calgary Herald: Varcoe: Cenovus CEO says carbon capture could be 'next boom'
Chris Varcoe, 12/9/21
“Cenovus Energy has rolled out its plans for the coming year, looking to keep production stable in 2022 and modestly expand its capital spending program,” the Calgary Herald reports. “The integrated petroleum producer also laid out Wednesday its new climate aspirations, striving to lower greenhouse gas emissions by more than a third by 2035 and examine a series of carbon capture projects. The announcement reflects two key themes for Canadian oilsands operators as they head into 2022: pump out strong cash flow levels and return money to shareholders, but also tackle the emissions challenge facing the sector… “We no longer see the need for major growth phases in our oilsands business,” CEO Alex Pourbaix told analysts, noting the company can add production at its thermal oilsands operations without building expensive new facilities. “Our plan is set to sustain the increased upstream production we’ve established this year … while also reducing GHG emissions.” “...But the bigger, more daunting target is to get to net-zero. Cenovus is part of a group of six oilsands producers — including Suncor Energy and Imperial Oil — that are working together to reach net-zero emissions from their operations within three decades. The alliance has proposed building a CO2 trunk line in the province that would connect more than 20 oilsands facilities (mainly in the Fort McMurray area) to an underground carbon storage hub near Cold Lake… “The oilsands producers are seeking substantial incentives from Ottawa to proceed with the necessary multi-billion-dollar investments. The Trudeau government promised in this year’s budget to create a federal tax credit for carbon capture, utilization and storage (CCUS) projects, initially signalling the incentive won’t be available for companies with enhanced oil recovery developments.”
Reuters: Canadian oil output to peak 7 years sooner than previously forecast, regulator says
Nia Williams, 12/9/21
“Oil output in Canada, the world's fourth-largest producer, will climb over the next decade and peak at 5.8 million barrels per day (bpd) in 2032, seven years sooner than previously forecast, the Canada Energy Regulator (CER) said on Thursday,” Reuters reports. “The CER said a rebound in oil prices after the pandemic-related crash last year meant more near-term investment would help production grow quicker than previously anticipated, before it starts to slowly decline to 4.8 million bpd by 2050. The level of anticipated peak production is unchanged from last year's projection. Canada's current production is 5 million bpd. The CER said oil production is likely to remain resilient over the next three decades, despite relatively low oil prices and steadily more ambitious climate policies, thanks to northern Alberta's vast oil sands deposits, which account for nearly two-thirds of Canadian production. "The resilience is really owing to the unique nature of the oil sands, once they are built they are very long-lived and operating costs are quite low," Darren Christie, the CER's chief economist, said in a news conference. "The vast majority of oil sands production we have in 2050 is coming from facilities that are already producing today." “...The regulator said Canada's fossil fuel use without carbon capture and storage to sequester the emissions will fall 62% by 2050. Overall fossil fuel use is expected to decline 40% by that year, but the regulator said the country will not be able to achieve net-zero emissions unless it makes more drastic changes.”
Canadian Press: Kenney touts 'Alberta is back' in first speech to Calgary Chamber since 2019
12/8/21
Premier Jason Kenney used his first address to the Calgary Chamber of Commerce since the start of the pandemic to tout the recovery of Alberta's economy amid high energy prices,” the Canadian Press reports. “Saying that "Alberta is back," he noted that in the first quarter next year the provincial GDP is expected to finally surpass the level it was in 2014 before a crash in oil prices pushed the province into recession… “Kenney says the recovery has been helped by an increase in demand for oil and gas, but he argues that it's not part of a roller-coaster in commodities because rising prices show the continued importance of energy.”
CabinRadio.ca: NWT doesn’t support oilsands water release, is ‘in dialogue’
OLLIE WILLIAMS, 12/9/21
“The NWT’s environment minister says the territory opposes a reported federal plan to allow the release of treated oilsands tailings water back into the environment,” CabinRadio.ca reports. “The proposal, first reported by the CBC, would allow treated water used in the mining process to be discharged. Some experts argue that’s safer than storing the water in massive tailings ponds. However, the Northwest Territories lies downstream of many oilsands facilities and communities have long expressed concern about the impact of industry on their water. Chief Gerry Cheezie of the Smith’s Landing First Nation last year told CabinRadio he opposed “the environmental pollution that’s coming out of the oilsands projects and the lack of federal and provincial response,” even before the news that the release of treated tailings water would be allowed… “The Fort McKay First Nation, around which 20 tailings ponds lie, told the broadcaster it did not want to “swap one environmental liability, which is the tailings ponds at the moment, for another, which could be the deterioration of the quality of the water in the Athabasca River and the downstream.” In the NWT legislature on Tuesday, environment minister Shane Thompson said his staff were in “dialogues back and forth” with federal and Alberta counterparts. “We’re not supportive of this presently or even in the future,” Thompson said, pressed by Frame Lake MLA Kevin O’Reilly for a territorial government response to the reported federal plan.
The Intercept: OIL-BACKED GROUP OPPOSES OFFSHORE WIND — FOR ENVIRONMENTAL REASONS
Lee Fang, 12/8/21
“IN NOVEMBER 2019, local property owners in Delaware and Maryland were sent a letter from “Save Our Beach View” asking neighbors to lobby local politicians against the Skipjack wind farm. The plan, which was approved in 2017, sanctioned a Dutch company to build a 120-megawatt capacity wind energy project — enough to power 40,000 homes by placing turbines 26 nautical miles offshore. The letter warned that the project would “irreparably damage beach tourism, home values and the economy,” “lower rents generally,” and produce “no environmental benefit.” “In fact,” the letter claimed, “regional air quality would become worse because of them,” The Intercept reports. “While the letter was signed by a local resident, it made little mention of its true author: the Caesar Rodney Institute, a libertarian think tank at the time funded by the oil industry. The subterfuge was intentional. In an interview with the State Policy Network, a group that coordinates best practices for oil-and-gas-backed and libertarian think tanks, the Caesar Rodney Institute told the Intercept it produced the letter and had it signed by a local concerned beach homeowner to “establish rapport” with the target audience of local residents and merchants. Save Our Beach View was also created by Caesar Rodney expressly for the purpose of undermining the Skipjack project. “Our strategy was to market and promote the ‘campaign’ rather than our organization, so we came up with the name ‘Save Our Beach View,’ a project of the Caesar Rodney Institute,” the think tank’s representative told the Intercept in the interview. The buzzsaw of advocacy threatens to derail the Biden administration’s ambitious goal of opening up wind energy production from coast to coast.”
Bloomberg: Electric Vehicles Are Going to Dent Oil Demand—Eventually
Nathaniel Bullard, 12/9/21
“Electric passenger vehicle sales are on a tear. In the first quarter of 2010, 395 EVs were sold worldwide. Last quarter, more than 1.7 million were sold — of those, more than 935,000 sold in Asia. In 1Q 2010, you would have needed three decimal places to show EVs as a percentage of global passenger vehicle sales (0.002%),” Bloomberg reports. “...The takeoff in electric vehicle sales has yet to make much of a dent in composition of the global auto fleet. There are more than one billion cars on the road, and today’s new cars increasingly are reliable and long-lived. They will contribute to global oil consumption for decades. Global oil demand, having plummeted during 2020, has come roaring back and according to some trading houses, is at pre-pandemic levels. Even so, as EV sales continue to increase, their combined displacement of oil consumption will become apparent… “By the middle of the century, oil demand could be 21 million barrels less per day thanks to EVs, compared to an entirely internal combustion engine global vehicle fleet. When, then, might oil demand peak?.. “The latest oil investor survey’s markedly different expectations about an oil demand peak before mid-decade suggest to me that current market dynamics inform, or at least inflect, longer-term thinking. Another few quarters of electric vehicle sales growth, and another year of analyst calculations of EVs’ effects on oil demand, might lead to different expectations. For that, we will need to wait for another survey. For now, investors still see a demand peak coming, just not quite so soon.”
OPINION
iPolitics.ca: Ottawa must address the violence against the Wet’suwet’en people
Rosa Galvez is an Independent senator for Quebec, a professor of civil and water engineering at the Université Laval in Quebec City, and president of ParlAmericas’ Parliamentary Network on Climate Change. She was the sponsor in the Senate of Bill C-12, 12/9/21
“On Sept. 30, the prime minister issued a statement to commemorate the first official National Truth and Reconciliation Day encouraging Canadians to “reflect on how each of us can play a part in the journey of reconciliation.” Government departments followed suit in declaring their support, including the Royal Canadian Mounted Police. Just two months after these pledges, the RCMP arrested at gunpoint unarmed Wet’suwet’en land defenders and journalists. These police raids are the latest in a series of raids on unceded Wet’suwet’en land going back to 2019,” Rosa Galvez writes for iPolitics.ca. “Following sharp criticism from human-rights watchdogs and the United Nations Committee on the Elimination of Racial Discrimination, Prime Minister Justin Trudeau and B.C. Premier John Horgan sent government officials to engage in land-rights discussions with Wet’suwet’en hereditary chiefs. This, too, appears to have had little meaning, as a media representative for the Gidimt’en resistance reported no progress since the agreement to engage in talks. Meanwhile, Canada has failed to comply with the UN Committee’s 2019 decision calling on Canada to suspend work on this and other projects until free, prior, and informed consent was obtained from the affected First Nations… “Sadly, the prime minister’s silence after unarmed Indigenous matriarchs were arrested demonstrates that reconciliation still takes a back seat to oil and gas. While the office of the minister of Public Safety states that it’s “monitoring the situation,” thereby positioning the government as an observer rather than an actor capable of action, the government ignores the tools it has to right these wrongs. It’s high time our prime minister walks the talk of true reconciliation.”
National Observer: Feds must protect Albertans from tailing ponds pollution
Max Fawcett, 12/9/21
“J. Paul Getty, the famous 20th-century American oil and gas tycoon, once noted: “If you owe the bank $100, that’s your problem. If you owe the bank $100 million, that’s the bank’s problem.” That’s the sort of conundrum facing Albertans right now when it comes to the massive tailings ponds created by the province’s oilsands companies,” Max Fawcett writes for the National Observer. “Those ponds contain approximately 1.4 trillion litres of water, the equivalent of more than 560,000 Olympic-sized swimming pools, and it’s about to come rushing down the Athabasca River — one way or another. According to a recent report, the federal government is in the process of developing regulations to allow oil producers to treat and release the water in those ponds, which contain toxic chemicals like mercury, ammonia and naphthenic acids. It’s not like the oil and gas companies that built and filled those ponds have just discovered a new way to make that water safe for the people living downstream. But the longer they’re allowed to collect and grow, the bigger the danger gets of an unplanned release — one that could be caused, ironically, by a climate change-aided weather event like the torrential rains B.C. just experienced. For an industry that loves to talk about how comparatively “ethical” its operations are, this is a very bad look. After all, the small Indigenous communities downstream from Alberta’s oilsands operations have raised the alarm for years now about the environmental impacts they’re seeing, which range from dwindling fish and wildlife populations to elevated levels of certain cancers… “A genuinely “ethical” oil and gas industry would be doing everything in its power to ensure communities that have already suffered environmental impacts from their operations aren’t made to endure more. Whether Canada’s oil companies actually live up to their self-appointed status here remains to be seen.”
Virginia Mercury: DEQ is still failing to protect state waters from MVP
Freeda Cathcart is the soil and water conservation director representing Roanoke City, 12/8/21
“The Virginia Department of Environmental Quality is failing to protect our rivers, streams, wetlands and endangered species from harm caused by the Mountain Valley Pipeline project,” Freeda Cathcart writes for the Virginia Mercury. “Imagine that a driver accumulated multiple speeding and reckless driving tickets, clearly demonstrating a public safety threat. The driver is fined but retains his license. The public documents and reports the driver’s continued, reckless speeding and other numerous infractions to the police. Instead of the police investigating the reports, the reports are sent to the DMV who granted the driver’s license. The DMV sees no problem and upholds its original permitting of the hazardous driver over public safety, saying the driver is registered, inspected and licensed. The DMV’s lapse in enforcement enables the hazardous driver to override public safety, creating an unjust, dangerous situation. Currently, that’s how DEQ is functioning, except it’s the high stakes of Virginia’s water and endangered species that DEQ permits MVP to continue harming. After hundreds of water pollution violations, the DEQ agreed to a $2.1 million Consent Decree with the MVP, which requires accountability for further violations. The consent decree had the director for the enforcement division of the DEQ as the signer and it doesn’t prevent the DEQ from enforcing all environmental laws. Indeed, it is their responsibility… “The DEQ isn’t enforcing state and federal laws to protect our water and endangered species. It’s the responsibility of the Office of the State Inspector General to assure that the administration “comply with all applicable state and federal regulations.” The Inspector General must investigate why the DEQ is failing to protect Virginia’s waterways and endangered species habitat from Mountain Valley Pipeline’s pollution and what must be done to protect our environment from further harm.”
POWHR: Code Red for Humanity
Akari Hernandez, 12/9/21
“Climate Crisis. Code Red. State of Emergency. All of these things come to mind when I think about the Mountain Valley Pipeline,” Akari Hernandez writes for POWHR. “My name is Akari. I’m a high school student in Central Virginia, and I’ve lived in Virginia for the past three years. I run Youth Against Pipelines VA, a social media account dedicated to fighting dirty fossil fuel projects. I started my page this past summer when I was brought into climate justice organizing by a friend in DC. Since then, I’ve spoken at hearings in front of the United States Army Corps of Engineers and organized to ensure that authorities hear youth voices in the permitting process for Mountain Valley Pipeline… “I want to encourage every climate-minded adult to listen to youth voices in climate. Listen to the Indigenous youth who see beyond the climate doom machine that the United States has built, who see our climate future in traditional knowledge. Listen to your local youth who might speak too quickly, or repeat their point too many times; who post about dirty energy in between their Spanish and Calculus assignments. Think twice before you dismiss us for dreaming too big. We spend every day thinking about our future. Do you?.. “I encourage everyone reading this to join POWHR and the statewide coalition led by ARTivism in Richmond on Saturday, December 11th, for the Violation Vigil. The Virginia Department of Environmental Quality is considering a 401 Water Quality Certification for the Mountain Valley Pipeline despite years of water violations caused by developers. The Violation Vigil is a huge demonstration, and we need widespread support.”
Deseret News: Opinion: Where are the lower gas prices from Biden’s release of oil reserves?
Jay Evensen, 12/9/21
“How are you planning to spend your gasoline surplus? You know, the money you saved because President Joe Biden released 50 million gallons of the nation’s strategic oil reserve in order to reduce the price we pay at the pump. I’m joking, of course. As I predicted, a release of the reserves barely moved the meter. It was a political stunt, nothing more,” Jay Evensen writes for the Deseret News. “The gas station monitoring website gasbuddy.com said the cheapest place in Salt Lake County earlier this week was $3.43 per gallon for regular gas, which is not far from where it was the day before Biden’s announcement… “Do you want to see a real reduction at the pump? Get your state politicians to cancel the gas tax altogether. That’s what Florida Gov. Ron DeSantis is proposing for his state. It would cost about $1 billion per year in lost revenue, but Florida is one of several states sitting atop mountains of surplus money right now, putting it in a position to do something a little rash.”