EXTRACTED: Daily News Clips 12/15/21
PIPELINE NEWS
Press release: Communities across the Gulf ask Army Corps to Defend the Gulf from Fossil Fuel Buildout
Roanoke Times: State panel approves stream-crossing permit for Mountain Valley Pipeline
United Steelworkers: Santa Claus to Join Refinery Workers Delivering Line 5 Petitions to Whitmer
Inforum: Fargo activists join nationwide protest against completed Line 3 oil pipeline
Telegram & Gazette: Climate activists rally in Worcester against Line 3 pipeline
Canadian Press: Trans Mountain pipeline back to full capacity in late January at ‘earliest’: exec
Bismarck Tribune: Another pipeline leak reported by company responsible for North Dakota's largest oil field spill
WWLP: Eversource natural gas pipeline proposal listening session held in Springfield
WASHINGTON UPDATES
The Hill: Energy chief: We are 'not considering' oil export ban
Grounded: Letter to Secretary Haaland
Politico: KHANNA TARGETS ENHANCED OIL RECOVERY
Common Dreams: Groups Move to Uncover Why Biden Held Huge Drilling Sale That DOJ Said Was Not Required
STATE UPDATES
Civil Beat: The Red Hill Water Crisis Has Affected Civilians, Too. They Want More Help
Boulder Daily Camera: Boulder City Council OKs oil and gas regulations ahead of moratorium’s lapse
E&E News: NYC set to enact gas ban with national implications
EXTRACTION
Marketplace: Oil supply may finally catch up with demand. But what about emissions?
CBC: Federal regulations to release treated tailings faces opposition in N.W.T.
Natural Gas Intelligence: British Columbia Could Bypass Alberta As Canada’s Top Natural Gas Supplier By 2028
Reuters: EU to clamp down on domestic methane emissions from oil and gas
Environmental Defense Fund: Permian Oil and Gas Sites Continue to Emit Massive Amounts of Methane Underscoring Importance of Strong EPA Rules
Reuters: Colgate Energy plans first major U.S. oil producer IPO since 2018 -sources
New York Times: An Intimate Look at the Dangerous, Boom-and-Bust Lives of Oil Workers
CLIMATE FINANCE
Reuters: How companies can lower the bar in sustainability bond binge
S&P Global: Activists say Lloyd's of London watering down fossil fuel pledges
OilPrice.com: Norway’s $1.4 Trillion Oil Fund Is Divesting Fast
OPINION
Newsweek: President Biden's Oil Lease Sale is a Death Sentence | Opinion
Roanoke Times: Rasoul: State Water Control Board has the power to ensure a livable future for Virginians
Toledo Blade: Line 5: A symbol of North America's debate over continued fossil fuel investment
Toronto Sun: BINNION: Did Michigan finally come to their senses on Line 5?
The Hill: Why Saudi Arabia's oil is vital to the global energy transition
PIPELINE NEWS
Press release: Communities across the Gulf ask Army Corps to Defend the Gulf from Fossil Fuel Buildout
12/14/21
“On Dec. 14, Permian and Gulf Coast Native and Black, frontline groups, Stop Line 3 supporters, and supporters of restorative justice across the nation delivered a letter to Principal Deputy Assistant Secretary of the Army for Civil Works Jaime Pinkham, Galveston District Commander Colonel Timothy Vail, Co-Leads, Department of Defense Climate Action Team, Kate White and Marissa McInnis, asking US Army Corps of Engineers Leadership: Uphold values and creed to “always serve the nation”; Meet and tour Gulf Coast communities at risk of a new fossil fuels buildout of pipelines, export term; Conduct a Regional “Programmatic” Environmental Impact Statement based on cumulative impacts of existing and multiple proposed new fossil fuels projects on the Gulf Coast and Line 3 in the North; Stop the fossil fuels buildout on the Gulf Coast and Stop Line 3. WHERE: USACE Offices in Washington, DC, Galveston and New Orleans District Offices, Field Offices in Brownsville, Corpus Christi, Houston, and Port Arthur. See MAP of actions at USACE offices across the nation on Tuesday, Dec. 14. “Native People, Black people, and People of Color living in Permian Basin and Gulf Coast communities and their supporters are concerned about the impacts of existing, proposed, and recently permitted petrochemical facilities from the Permian Basin and other fracking shales to the bays of the Gulf of Mexico. We want the very best for our communities. We come together to advocate for our families, friends, and neighbors, the natural environment, language justice, a just transition to safer renewable energy infrastructure, and a livable future on the planet. “In recognition and appreciation for the US Army Corps of Engineers values to uphold “loyalty, duty, respect, selfless service, honor, integrity, and personal courage” and in respect for your USACE creed “to always serve the Nation” - We are asking for your help.”
Roanoke Times: State panel approves stream-crossing permit for Mountain Valley Pipeline
Laurence Hammack, 12/14/21
“The Mountain Valley Pipeline made it across troubled waters Tuesday,” the Roanoke Times reports. “In a 3-2 vote, the State Water Control Board granted a permit for the natural gas pipeline to cross about 150 streams and wetlands in Southwest Virginia, surmounting one of the beleaguered project’s most protracted struggles. Although a similar permit from West Virginia and federal approval is still required, Mountain Valley expressed confidence that it will complete construction “in a way that protects natural resources and meets public demand for reliable, affordable and lower-carbon energy.” About 94% of the pipeline is finished, spokeswoman Natalie Cox wrote in an email Tuesday, and “the remaining waterbody crossings can be completed successfully and without adverse impacts to sensitive resources.” However, the Virginia Department of Environmental Quality has already cited the joint venture of five energy companies building the pipeline with nearly 400 violations of erosion and sediment control regulations. Opponents argue that the true number is much higher — and will only increase if stream crossings are allowed to resume after earlier permits were struck down by the courts. Many pipeline opponents have wrongly characterized the infractions as violations of water quality standards, DEQ’s director of water permitting told the board… “Pipeline opponents called the water board’s vote shameful but not surprising. “As we reflect on the losses of neighbor landowners and communities suffering MVP’s destructive effects on land, forests and waters, in the midst of an intensifying climate crisis, Virginia’s Water Board has marked for itself an infamous place in history,” Roberta Bondurant, co-chair of the Protect Our Water, Heritage, Rights coalition said in a statement.
United Steelworkers: Santa Claus to Join Refinery Workers Delivering Line 5 Petitions to Whitmer
12/14/21
“Santa Claus will take a break from his holiday preparations to join workers from Toledo Refining Co. on Thursday, Dec. 16, for a demonstration outside the office of Michigan Gov. Gretchen Whitmer, where the workers will deliver petitions calling for the continued operation of the Enbridge Line 5 pipeline while the Great Lakes Tunnel Project is completed. Hundreds of members of USW Local 912 and salaried employees who work at Toledo Refining Co. depend on the pipeline to do their jobs and support their families and communities. Whitmer revoked Enbridge's easement in 2020 and has since supported legal action seeking the closure of the pipeline, which passes through the Straits of Mackinac. With Santa's help, the workers will deliver more than 1,000 pages of signatures on Thursday asking Whitmer to seek an equitable solution to protect jobs, the economy, and the environment and urge her to allow Line 5 to continue operating until the proposed replacement tunnel project can be built. In addition to supporting hundreds of jobs and families in the Toledo area, Line 5 is crucial to future supplies of jet fuel for carriers at Detroit Metropolitan Airport as well as of heating oil for residents of Michigan's Upper Peninsula.”
Inforum: Fargo activists join nationwide protest against completed Line 3 oil pipeline
C.S. Hagen, 12/14/21
“About a dozen protesters gathered outside the U.S. Army Corps of Engineers headquarters Tuesday, Dec. 14, in solidarity with a national movement to call for a federal environmental impact study, or EIS, of a Minnesota pipeline,” Inforum reports. “After months of protest, many of the activists said they feel frustrated as Enbridge’s Line 3 pipeline has already been completed, but they do not plan to stop protesting… “We will never stop fighting for waters and land,” Hannah Cook of Moorhead told Inforum. She spent time at many of the camps pitted against Line 3 over the summer months. “One day, it will be turned off. It’s a ticking time bomb,” Cook told Inforum. “It’s not over. Line 3 was huge for waking up the community, and for me, my entire world has changed.” “...Vanessa Clark, an organizer of the Fargo protest that was part of The Action Network, told Inforum she and others feel their cries have gone ignored by politicians who use the issue as a talking point. “There have been lots of calls to people in authority to do something about Line 3. It’s a shame that it’s completed, but we can still fight to cut it off,” Clark told Inforum.
Telegram & Gazette: Climate activists rally in Worcester against Line 3 pipeline
12/14/21
“Climate activists from the group 350 Central Mass protested along Shrewsbury Street Tuesday afternoon in the ongoing fight against Enbridge's Line 3 pipeline carrying crude oil from Canada into the Midwest,” the Telegram & Gazette reports. “The activists said they are, "renewing our calls to the US Army Corps of Engineers to order a federal Environmental Impact Statement." The project, which started a year ago, was completed despite stiff opposition and environmentalists have continued the fight even though the project has been completed. Line 3 starts in Alberta, Canada, and clips a corner of North Dakota before crossing Minnesota en route to Enbridge’s terminal in Superior, Wisconsin.”
Canadian Press: Trans Mountain pipeline back to full capacity in late January at ‘earliest’: exec
12/14/21
“Trans Mountain’s chief operating officer says the pipeline will likely return to full capacity in late January at “the earliest” as work continues after fallout from torrential rains that the company says will cost tens of millions of dollars,” the Canadian Press reports. “The pipeline shut down on Nov. 14 as a precaution following floods in the area of Hope, B.C., and came back online last week. Michael Davies, head of operations at the federally owned company, told CP the 21-day shutdown marks the longest in the pipeline’s 68-year history. It is now back up to more than 70 per cent capacity, he told CP, which allows gas rationing in southern B.C. to end today… “Davies told CP 400 crew members remain in the field to stabilize riverbanks, secure pipe and assess further repairs.”
Bismarck Tribune: Another pipeline leak reported by company responsible for North Dakota's largest oil field spill
AMY R. SISK, 12/14/21
“The company responsible for the largest oil field spill in North Dakota history has reported a leak from a pipeline about 1 ½ miles away,” the Bismarck Tribune reports. “The latest spill leaked saltwater onto agricultural land “very close to the creek” contaminated by the record spill reported in 2015 north of Williston, Bill Suess, spill investigation program manager with the North Dakota Department of Environmental Quality, told the Tribune. Pipeline operator Summit Midstream Partners and the state are monitoring the waterway known as Blacktail Creek for signs that the saltwater has reached it… “Summit notified the state of the spill on Dec. 5 and estimated its volume at 10 barrels or 420 gallons. Summit offered a revised figure to the state on Monday of 176 barrels or about 7,400 gallons based on calculations from its pipeline leak detection system. It’s not uncommon for the volume of oil field spills to be revised in such a way after more data becomes available or an analysis takes place. A lack of transparency regarding spill volume, however, was at the heart of criminal and civil cases brought against Summit by federal and state prosecutors following the 2015 incident. Summit failed to immediately notify authorities of that spill, which began in 2014. When it did so the following year, the pipeline had been leaking for five months. Summit reported an initial volume of 70,000 barrels or about 3 million gallons, but the actual volume was 10 times that amount. Summit knew of the true size around the time it disclosed the spill, according to court documents… “Summit told the state that an equipment failure caused the latest spill, but no additional details were immediately available Tuesday. The company has shut down the pipeline and is working to remove contaminated soil. A boom and sump are in place to recover the wastewater.”
WWLP: Eversource natural gas pipeline proposal listening session held in Springfield
Ashley Shook, Nick Aresco, 12/14/21
“Advocacy groups in Springfield expressed their concerns over a proposed natural gas pipeline that would run through their local streets,” WWLP reports. “Elected officials and residents continue to question why a pipeline is necessary in Springfield’s South End neighborhood, some showing their opposition Tuesday afternoon. Massachusetts’ Rep. Carlos Gonzalez held a meeting with Springfield residents to discuss concerns over the proposed Eversource pipeline project. Many who live in the area where the pipeline would be constructed oppose the project because of the potential dangers it could pose. Eversource has proposed a roughly $33 million, 16-inch diameter gas pipeline that would be constructed underground between Longmeadow and the South End of Springfield. “There are multiple problems that I see with the proposal. One is environmental. We are trying to get away from fossil fuels. There is a national effort, and global effort. A lot of ecosystems are being destroyed by fossil fuels,” David Ciampi of Springfield told 22News. “I am concerned for the potential hazard the proposal may have on the residents of Springfield. My priority should be moving to a less hazardous and greener production of energy,” Chairman Gonzalez told WWLP. The proposed pipeline would carry natural gas and Eversource says it is a necessary improvement to reliability. The current existing one is nearly 70-years-old. Rep. Gonzalez continues to hold meetings with Eversource to get more information on the proposed project.”
WASHINGTON UPDATES
The Hill: Energy chief: We are 'not considering' oil export ban
BY RACHEL FRAZIN, 12/14/21
“Energy Secretary Jennifer Granholm said on Tuesday that the Biden administration will not ban crude oil exports, despite a push from some Democrats to do so,” The Hill reports. “Speaking before the National Petroleum Council — an advisory board made up of oil industry figures — Granholm said, “We are not considering reinstating the ban on exports." This follows a similar comment from National Economic Council Director Brian Deese, who told reporters last week that banning oil exports is “not an issue that we’re currently focused on.” But Deese also said that President Biden has made clear that “all options should be on the table to try to address challenges in the market and bring relief to American consumers.” The comments come after the idea to ban crude oil exports was endorsed by several Democrats last month as one tool the administration could use to bring down the price of gasoline.”
Grounded: Letter to Secretary Haaland
Julia Jackson, Kevin Patel, Alexandria Villaseñor, 12/13/21
“Dear Secretary Haaland, As young climate activists who traveled to COP26 to fight for our lives, we were shocked to come home and learn that you had initiated the largest lease sale for oil and gas drilling in U.S. history. Less than one week after COP26 where President Biden pledged a return to U.S. climate leadership, you auctioned off 80 million acres offshore in the Gulf of Mexico — more than even Trump proposed — to some of the worst climate and human rights violators of our time including ExxonMobil, BP, Chevron, and Shell. In the ensuing weeks, we have been further appalled to learn that you relied on the Trump Administration’s grossly inadequate environmental impact analyses that outrageously claimed the sale will have no impact on the environment or climate change — despite unleashing estimated greenhouse gas emissions equivalent to building 182 new coal power plants. You could have revised the 2015 environmental review to include the full scope of impacts, including climate change, but instead you rubber stamped and expanded the Trump Administration’s giveaway to the oil and gas industry that spells disaster for our climate. Why would you do that?.. “By caving so quickly to the fossil fuel industry without even putting up a fight, we are left feeling once again like we are alone in this crisis — betrayed by the very people who promised to do the right thing and defend us from the storms now breaching our shores and the toxic industries squeezing the last breath of life from our lands. We implore you to please review the relevant statutes and wield the full power of your office to suspend and reverse Lease Sale 257, to correct this historic mistake, and to recommit yourself to protecting the lands and waters you are sworn and duty-bound to protect. Today we feel a great loss for environmental justice. But the future of all life on Earth depends on the steps you take tomorrow. There is still hope if you act now. Please don’t let us down.”
Politico: KHANNA TARGETS ENHANCED OIL RECOVERY
Matthew Choi, Josh Siegel, 12/14/21
“Rep. Ro Khanna, who led the House Oversight Environment Subcommittee’s probe into the oil and gas industry earlier this year, wants to end tax credits for carbon capture that is used to pump more oil out of the ground,” Politico reports. “Khanna introduced the End Polluter Welfare for Enhanced Oil Recovery Act on Monday, which would erase provisions under the 45Q tax credit that helps companies use captured carbon for enhanced oil recovery. Khanna has gone after what he views as subsidies for the oil and gas industry in the tax code for months, with EOR 45Q benefits being a holdout in Democrats’ reconciliation bill. Khanna told ME it was "common sense" to bar the federal government from financing technology used to extract more fossil fuels, saying doing so "actually undermines the case for CCS." “Now if they can come up with a technology that can actually reduce the carbon footprint, then I am all for it,” Khanna told Politico… “But Democrats’ edits to the tax credit faced backlash from carbon mitigation tech backers, who said minimum capture thresholds at 75 percent for power plants and 50 percent for industrial facilities would shut out a large swath of projects and make the credit functionally inaccessible. Lawmakers acquiesced by removing the 50 percent threshold for industrial facilities in the package passed by the House, and senators are discussing potentially ridding the 75 percent threshold as well.”
Common Dreams: Groups Move to Uncover Why Biden Held Huge Drilling Sale That DOJ Said Was Not Required
KENNY STANCIL, 12/13/21
“When the Biden administration first announced in August that it would soon hold a massive auction of oil and gas drilling rights in the Gulf of Mexico, officials told angry critics that they had no choice but to proceed with the historic—and ecologically catastrophic—sale because of a ruling by a Trump-appointed federal judge,” Common Dreams reports. “Prior to that, however, the U.S. Department of Justice (DOJ) argued—in a memo shared Monday by The Guardian—that the U.S. Department of Interior (DOI) was not required to sell new leases for fossil fuel extraction on public lands and waters despite a court decision challenging the implementation of President Joe Biden's moratorium. Environmental lawyers had long made the same case. Now equipped with evidence that Biden ignored the DOJ's legal advice, a coalition of progressive groups—Food & Water Watch, Earth Uprising International, One Up Action, and Action Center on Race and the Economy—has filed a Freedom of Information Act request seeking records related to the White House's decision to commence Lease Sale 257, which saw more than 80 million acres of federal waters offered to the highest-bidding oil and gas companies.”
STATE UPDATES
Civil Beat: The Red Hill Water Crisis Has Affected Civilians, Too. They Want More Help
Anita Hofschneider, 12/14/21
“When Christine Roberts first moved into the Ohana Military Communities housing complex near the Honolulu airport about two years ago, she felt relieved. As a single mother with two children still at home, Roberts had been forced to move her family out of their two previous rentals when their landlords returned and she was eager for stability. Then she heard from a friend that state workers like herself were eligible to apply for off-base military housing,” Civil Beat reports. “She moved her children to the complex two years ago and was happy about the spacious four-bedroom home, the reliable maintenance and the knowledge that she wouldn’t be asked to move out quickly. That changed in November when the Navy confirmed that the well serving her community and several others was contaminated with petroleum. State tests found that the water at the Navy’s Red Hill shaft was 350 times more contaminated than the state’s health and safety benchmark for “petroleum hydrocarbons diesel range organics.” “...The Navy said the contamination has affected the water system that serves some 93,000 people. City officials shut down a nearby well that provides 20% of the water for urban Honolulu out of concern that the well could become contaminated too… “The water crisis has forced more than 3,000 people to evacuate their homes. Most are military families and dependents. But civilians are affected too, and the crisis response has raised concerns about whether civilians are getting enough help. Lydia Robertson, spokeswoman for the Navy, told Civil Beat 748 civilian households have been affected by the water contamination.”
Boulder Daily Camera: Boulder City Council OKs oil and gas regulations ahead of moratorium’s lapse
DEBORAH SWEARINGEN, 12/14/21
“Boulder has adopted a new set of regulations that guide potential oil and gas operations in the few areas within city limits where such development can occur,” the Boulder Daily Camera reports. “The new regulations were approved in Tuesday’s Boulder City Council meeting as an emergency measure. This means the ordinance takes immediate effect and ensures the new regulations are in place when the city’s moratorium that prevents oil and gas development within municipal limits and on publicly owned open space lapses at the end of the year. Boulder first enacted the moratorium in 2013. It was extended a number of times as staff worked to update the city’s regulations, empowered to do so in part because of evolving state rules. In 2019, state legislation passed, allowing municipalities to regulate oil and gas operations “to protect public health, safety and welfare and the environment.” Before then, local regulations were preempted by state law… “However, with the newly approved setbacks of 2,000 feet from any residential dwelling, school, hospital, licensed child care or senior care facility or park, which extends to 2,500 feet for multi-well pads, there are very few places in Boulder where fracking could actually occur.”
E&E News: NYC set to enact gas ban with national implications
David Iaconangelo, 12/15/21
“New York City is poised to become the largest U.S. city to ban the use of fossil fuels for building heat, making it a test bed for national efforts to ditch natural gas,” E&E News reports. “Due for a vote this afternoon by the City Council, the ban would apply in 2023 to new buildings that are less than seven stories tall and would cover all new construction by 2027. A majority of council members have signed on as co-sponsors of the bill, and Mayor Bill de Blasio is a lead backer, making its passage likely. If enacted, the bill would effectively anoint electric heat pumps, stoves and water heaters as New York’s next generation of building energy and would place limitations on how utilities can introduce other alternative heating fuels, like hydrogen and biomethane… “A gas ban in New York could set a national precedent for other cities, given its size and the complexity of decarbonizing its housing stock. It also could buoy markets for electric heat technologies by helping bring down costs. A four-group coalition of national and local environmental organizations known as #GasFreeNYC celebrated a deal between City Council members and the mayor to pass the bill last week, calling it "a pioneering victory.” They also thanked the lead sponsor, Council Member Alicka Ampry-Samuel, who will soon join the Biden administration as a regional administrator at the Department of Housing and Urban Development.”
EXTRACTION
Marketplace: Oil supply may finally catch up with demand. But what about emissions?
Andy Uhler, 12/14/21
“The emergence of the coronavirus omicron variant will slow oil use and allow supply to catch up to demand, the International Energy Agency said Tuesday in its monthly oil report,” Marketplace reports. “Seems like good news — for consumers, at least. Oil markets won’t be as tight as they have been, which could mean cheaper gasoline and lower electricity bills. But boosting the petroleum supply runs a bit counter to that clean energy transition everyone’s talking about. President Joe Biden’s been talking about ways to get gas prices down for a while now, even releasing some oil from the strategic petroleum reserve last month. At the same time, he’s been promoting his clean energy agenda and saying we need to stop using so much oil and gas. Michael Lynch at the Energy Policy Research Foundation in Washington told Marketplace that messaging is confusing. “If you look up cognitive dissonance in the dictionary, you’ll see a picture of Joe Biden at COP26 in Glasgow saying, ‘Oh, by the way, OPEC, we want more oil to bring prices down,’ while pledging to reduce fossil fuel consumption in the long run,” he told Marketplace. This is the short-term versus long-term conundrum: We are still dependent on fossil fuels around the world, yet countries are pledging to phase them out. We have to recognize both realities, Melissa Lott, director of research at Columbia University’s Center on Global Energy Policy, told Marketplace.
CBC: Federal regulations to release treated tailings faces opposition in N.W.T.
Avery Zingel, 12/15/21
“Northerners say the federal government's plan to regulate the release of treated oil sands tailings water will be met with opposition by communities downstream,” the CBC reports. “As the N.W.T. Environment minister gears up for a diplomatic approach with Alberta and Canada, Dene leaders like Smith's Landing First Nation Chief Gerry Cheezie are prepared to take legal action with Dene Nation, and to bring their opposition to tailings release all the way to Ottawa. "It's unthinkable. It's a human rights issue … along with being environmental racism," Cheezie, who argues releasing tailings violates treaty rights to access lands and waters, told the CBC. "I can't believe the Government of Canada is willing to release this toxic sludge on our river and on our people," he told the CBC. "We're not going to sit back and allow this to happen." “...The release of oil sands tailings to surface water is currently prohibited. Some experts argue that discharging treated water would be safer than allowing the tailings to accumulate, where they could accidentally be released in the event of a flood or other natural disaster. The tailings ponds contain an estimated 1.4 trillion litres of tailings which have been deposited in the boreal forest since bitumen mining began in the 1960s. That's the equivalent of 560,000 Olympic swimming pools… "We're totally opposed to treatment and release of tailings ponds into the Athabasca because eventually it will flow into the Great Slave and eventually end up in the Mackenzie River and ultimately end up in the Arctic Ocean. Most of our communities are along this river system."
Natural Gas Intelligence: British Columbia Could Bypass Alberta As Canada’s Top Natural Gas Supplier By 2028
GORDON JAREMKO, 12/14/21
“British Columbia (BC) is poised to overtake Alberta and become the top source of Canadian natural gas as of 2028, the Canada Energy Regulator (CER) said in its latest annual industry review,” Natural Gas Intelligence reports. “The liquids-rich Montney Shale deposit, which fuels all drilling in BC and extends east into Alberta, could account for three-quarters of Canadian gas production by 2050, according to the “Canada’s Energy Future 2021” report… “The current policies outlook shows BC natural gas output growing to 8 Bcf/d in 2028, up 40% from 5.7 Bcf/d in 2021. During the same time frame, Alberta supply would drop 20% to 7.9 Bcf/d in 2028, compared to 9.8 Bcf/d in 2021. By 2050, BC would hit 13.7 Bcf/d and Alberta would remain at 7.9 Bcf/d. In the evolving conditions case, BC gas production would reach 7.6 Bcf/d in 2028 and 8.3 Bcf/d in 2050. Meanwhile, Alberta’s output would decrease to 7.5 Bcf/d in 2028 and 4.6 Bcf/d in 2050. Under current policies, total Canadian gas production would grow to 22.2 Bcf/d in 2050… “Under current policies, Canadian oil output would grow 34% from 5 million b/d in 2021 to 6.7 million b/d in 2040. It would remain at the higher level, potentially fueling new pipeline proposals and accelerated railway deliveries. In the evolving conditions outlook Canadian oil production would climb to 5.8 million b/d in the early 2030s but slide back to 4.8 million b/d by 2050, representing a modest long-range setback to 4% below the 2021 total. “Canadian crude oil production levels are resilient through to 2050 despite the evolving policies scenario’s relatively low prices,” falling from a peak annual average of $68/bbl to $40/bbl, “and steadily more ambitious climate policies,” said CER. “This largely stems from the nature of the oil sands facilities, which are long-lived and have low operating costs once built. Throughout the projection period, the vast majority of oil sands production is from facilities that are producing today.”
Reuters: EU to clamp down on domestic methane emissions from oil and gas
12/15/21
“EU policymakers proposed legislation on Wednesday to make oil and gas companies report their domestic methane emissions and fix leaks of the potent greenhouse gas, but companies abroad that supply most of Europe's fossil fuels will be largely untouched,” Reuters reports. “...The European Commission on Wednesday proposed regulations that would require oil and gas operators to report the methane emissions - down to the original source of the emissions - of their installations in the European Union two years after the regulation takes effect. They would need to provide estimates of their emissions by end of the first year. Firms would also have to check their infrastructure for methane leaks every three months, starting six months after the regulation takes effect and to repair leaks within five days. Infrared cameras and drones are among the technologies used to detect methane emissions. In the EU, companies would be banned from routine flaring, when methane is intentionally burned off, and venting, when unwanted methane is released into the atmosphere, although there would be some exceptions, such as during repairs. The proposed rules do not apply to the infrastructure that transports gas into the EU from abroad, despite demands from some investors, lawmakers and campaigners that they should. The EU imports 90% of the fossil gas it consumes and 97% of its oil. Most methane emissions associated with that consumption occur abroad in countries such as Russia, the EU's biggest gas supplier.”
Environmental Defense Fund: Permian Oil and Gas Sites Continue to Emit Massive Amounts of Methane Underscoring Importance of Strong EPA Rules
12/14/21
“An aerial survey of nearly 900 different oil and gas sites in the Permian Basin reveals that massive methane emissions at many sites recurred for months on end, often even after operators were notified of problems,” the Environmental Defense Fund reports. “Methane is an invisible, yet very potent greenhouse gas emitted from oil and gas facilities alongside harmful pollutants linked to cancer, asthma and other illnesses. This survey was conducted as part of EDF’s PermianMAP initiative, which has been measuring and reporting information about oil and gas methane emissions from the nation’s largest oilfield since 2019. This latest research – conducted via helicopter between Nov. 12 and Nov. 21 of this year – detected significant plumes of methane from about 40% of the roughly 900 sites surveyed. Additionally: About 14% of all emission events came from malfunctioning flares; 30% of surveyed pipelines had detectable emissions; Roughly half of all surveyed midstream facilities - which process, pressurize and help transport gas - had detectable emissions; and Recurrent high emissions, including from smaller wells.... “Our research has consistently shown that leaks can and do happen at all types of facilities – including smaller, leak-prone wells – and the best way to control emissions is to find and fix them,” said David Lyon, Senior Scientist with Environmental Defense Fund.
Reuters: Colgate Energy plans first major U.S. oil producer IPO since 2018 -sources
By David French, 12/14/21
“The private equity owners of Colgate Energy Partners III are preparing to float the shale oil producer on the stock market at a valuation approaching $4 billion, including debt, according to people familiar with the matter,” Reuters reports. “If launched, the deal would be the first major initial public offering of a U.S. oil producer since 2018. The New York listing preparations come as energy prices soar on strong demand from economies emerging from COVID-19 pandemic lockdowns, creating attractive corporate valuations in the oil patch after years of financial under-performance… “The IPO would be the first by a sizable U.S. oil producer since Berry Petroleum Corp raised $182 million in July 2018. It would be the first major offering in the Permian since Jagged Peak Energy raised $474 million in January 2017. Investors soured on buying stock in oil and gas producers in recent years because of the poor returns they delivered and the environmental concerns they raised. But with U.S. crude prices hitting their highest in seven years in late-October, and the S&P energy index delivering roughly double the S&P 500's (.SPX) return in 2021, investor confidence is returning.”
New York Times: An Intimate Look at the Dangerous, Boom-and-Bust Lives of Oil Workers
By Molly Young, 12/14/21
“...She is taking the photo for her boyfriend, Caden, an offshore oil worker whom she has met in the coastal Scottish city of Aberdeen. Tabitha Lasley, a journalist, is in town to write a book about oil rigs — or, actually, to rewrite one,” the New York Times reports. “...Oil fascinates Lasley because it offers a cheat code for the game of economic ascent, being one of the few avenues for handsomely paid (and legal) blue-collar opportunity in her country. She’s met a few oil workers before: They drive flashy cars, wear expensive clothes, cover themselves in tattoos and snort the finest cocaine in all of the land. “The sort of people you’d want at a house party, provided the house wasn’t yours,” she writes… “The major hazards stem from the tension between production and compliance. Companies are expected to deliver specific amounts of oil and gas to the grid, and failure to do so incurs penalties. Since maintenance slows production, safety hazards tend to be opportunistically overlooked. There are countless ways to die on duty. A person could be asphyxiated by odorless liquid hydrocarbon, or he could plummet seaward in a chopper crash, or he could grow despondent from the job’s rigors, fill his pockets with wrenches and take a leap off the side of a vessel.”
CLIMATE FINANCE
Reuters: How companies can lower the bar in sustainability bond binge
Tommy Wilkes and Yoruk Bahceli, 12/15/21
“Companies are selling a record number of bonds with penalties attached if they fail to meet environmental and social targets, but there’s a catch – some goals are so soft that firms can actually take their foot off the gas,” Reuters reports. “Because so-called sustainability-linked bonds (SLBs) are in high demand from investors keen to burnish their green credentials, those companies are also rewarded with lower borrowing costs. A Reuters analysis of 48 SLBs issued by the 18 biggest borrowers in 2021 showed that nearly half, or 23, included a target which lets them improve at a slower rate than they have done previously. SLBs, pioneered by Italian utility Enel in 2019, are structured so that companies pay a higher interest rate to investors for the last few years of a bond if they fail to meet certain environmental, social and governance (ESG) targets. Unlike the bigger green bond market, which funds specific projects, SLBs focus on company-wide targets and do not restrict how the money is spent… “But some investors and experts say these are not enough to standardise ambition and loose guidelines present “greenwashing” dangers.”
S&P Global: Activists say Lloyd's of London watering down fossil fuel pledges
Ben Dyson, 12/14/21
“Climate change activists are accusing Lloyd's of London of "greenwashing" and watering down its environmental, social and governance policy after it said it would not order managing agents to stop insuring certain fossil fuel activities in 2022,” S&P Global reports. “The Insure Our Future campaign published a guidance document that Lloyd's issued to managing agents in October which makes it clear the market is not mandating that syndicates exclude coverage for thermal coal-fired plants, thermal coal mines, oil sands and Arctic energy exploration activity from Jan. 1, 2022. The new guidance, originally only available by email but now published on Lloyd's website, states it is up to each managing agent to craft its own ESG targets and policy. It stands in contrast to an ESG report published in December 2020 which stated that managing agents would be asked to provide no new coverage for those types of projects and infrastructure effective at the start of 2022. "The guidelines clearly expose Lloyd's rollback, [indeed abandonment], of the climate policies it announced in December 2020 and demonstrate a blatant case of ESG greenwashing," Lindsay Keenan, European coordinator of Insure Our Future, said in a press release. The activist group branded Lloyd's October announcement that it had joined the Net-Zero Insurance Alliance, shortly before the COP26 climate summit, as an attempt to "distract from their watered down ESG policy."
OilPrice.com: Norway’s $1.4 Trillion Oil Fund Is Divesting Fast
Tsvetana Paraskova, 12/14/21
“The world's largest sovereign wealth fund, Norway's $1.4 trillion Government Pension Fund Global (GPFG), is pre-screening companies for sustainability risk before deciding to invest in them and, within one decade, it has divested from 366 firms that it has assessed as lacking sustainable business models,” OilPrice.com reports. “This year alone, the fund has assessed sustainability risk across more than 400 companies that were added to the fund's index, and chose to refrain from investing in nine companies that it believes will increase the fund's financial risk in the long term, Norges Bank Investment Management said on Tuesday in an update on its actions to protect from risks in the long term. "In addition to the nine companies that we chose to refrain from investing in, we divested from 43 companies this year that we consider not to have sustainable business models. This includes companies exposed to significant risks related to climate change, water management, and corruption," the fund said in a statement. The ultimate goal of the fund's pre-screening process and decisions not to invest in certain companies or divest from others is to protect it from risks that could lead to financial losses, Chief Corporate Governance Officer Carine Smith Ihenacho told Bloomberg in an interview.”
OPINION
Newsweek: President Biden's Oil Lease Sale is a Death Sentence | Opinion
Julia Jackson is the founder of Grounded, Kevin J. Patel is the founder and executive director of OneUpAction, 12/14/21
“When we arrived in Glasgow for the U.N. Climate Change Conference (COP26) in November, we didn't expect President Joe Biden to put the U.S. on track to meet the Paris agreement climate goals overnight. But we did hope that, given the mounting climate crises this summer and alarming military and intelligence reports from his own administration, Biden would do everything in his power to keep his campaign promise to stop leasing public lands and waters for more fossil fuel extraction,” Julia Jackson and Kevin J. Patel write for Newsweek. “On Nov. 17, 2021, just five days after President Biden claimed a return to U.S. climate leadership at COP26, Interior Secretary Deb Haaland auctioned off 80 million acres of the Gulf of Mexico to ExxonMobil, BP, Chevron, Shell and other oil and gas corporations for offshore drilling. Formally referred to as Lease Sale 257, it is the largest offshore lease sale in U.S. history. There's an obvious reason why this is wrong: We are at a critical moment in history where the U.S. and other large, developed countries must immediately reduce emissions to limit global warming to 1.5 degree Celsius and preserve a livable planet. According to federal decision documents, Lease Sale 257 was projected to unleash 723 million metric tons of greenhouse gas emissions —the equivalent of putting 157 million more cars on our highways or building 182 new coal power plants… “Just this week it was reported that the lease sale did not have to move forward. But the Biden administration refused to answer questions about this revelation. So why did the Interior move forward with a sale that we know will accelerate warming and the loss of millions of lives based on faulty environmental impact statements produced by the Trump administration? We need to get to the bottom of these questions. In the meantime, Secretary Haaland still has the power to reverse the sale.”
Roanoke Times: Rasoul: State Water Control Board has the power to ensure a livable future for Virginians
Sam Rasoul, a Democrat, represents the city of Roanoke in the Virginia House of Delegates, 12/14/21
“Today, seven Virginians are tasked with determining our state’s environmental and climate future. This Tuesday, the State Water Control Board will determine whether to grant or deny the Department of Environmental Quality’s draft permit as to whether the proposed Mountain Valley Pipeline can safely build across more than 200 water bodies in the state,” Sam Rasoul writes for the Roanoke Times. “The Board members, seven private citizens serving on this independent regulatory body, have the fate of the communities that my colleagues and I serve in their hands. The MVP has already caused permanent damage by violating Virginia’s water protection laws more than 300 times. The project has been heavily fined for failing to control erosion and sediment, with some of the riskiest proposed construction up for review in this permit. It is up to the board to ensure this destruction does not continue… “I know that the Mountain Valley Pipeline is an environmental justice disaster. It is an incomplete fracked gas pipeline that is steamrolling its way over our state, across 303 miles, from northwestern West Virginia to southern Virginia. The pipeline has already paid millions for environmental damage and has destroyed the water and land of rural, low-income, majority-elderly communities ... and gas hasn’t even started flowing. Pipeline construction threatens the cleanliness and safety of our waters, the air quality and public health of our children and communities, and the mountains and lands we all treasure.”
Toledo Blade: Line 5: A symbol of North America's debate over continued fossil fuel investment
TOM HENRY, 12/13/21
“Canadian-based Enbridge’s plan to encapsulate its controversial Line 5 fuel pipeline with a $500 million tunnel beneath the Straits of Mackinac lakebed is the kind of investment in fossil fuels that America needs to stop if it is going to address climate change in a more meaningful way, a University of Michigan researcher said Monday,” Tom Henry writes for the Toledo Blade. “Julia Cole, a U-M earth and environmental sciences professor, said the project “absolutely works against” collective efforts to reduce greenhouse gases that are warming the planet and disrupting climate patterns. “When you are in a hole — and we are in a big hole — the first thing you have to do is stop digging,” Ms. Cole said. “The pipeline and the tunnel represent the investments we have to avoid.” “...The moderator was Margrethe Kearney, an Environmental Law & Policy Center senior attorney, who opened the event by calling Line 5 “an immediate threat to the Great Lakes” and Enbridge’s plan for a tunnel “a disruptive and dangerous undertaking.” At no time during the event, though, was there any mention of pipelines delivering fuel products far more efficiently and with fewer greenhouse gases than by ship, rail, or truck… “Brendan Williams, PBF Energy vice president of government relations, told the Blade that losing refineries such as PBF Toledo Refining would make the United States “even more reliant on overseas manufacturers in less environmentally friendly facilities and countries, many in less friendly, unstable nations that will sell to the highest bidder around the globe.” “Suggesting that the United States should stop investing in fossil fuels is unrealistic, immoral, and irresponsible, particularly because an energy future with more renewables will be impossible to achieve without products produced from oil and natural gas,” he told the Blade. At least 20 percent of a wind turbine and 50 percent of an electric car are made from refined petroleum products, including those made at PBF’s Toledo refinery, Mr. Williams told the Blade. Soap, disinfectants, and N-95 masks that protect people from the coronavirus and its variants also are made from refined products, he told the Blade.
Toronto Sun: BINNION: Did Michigan finally come to their senses on Line 5?
Michael Binnion is the executive director of the Modern Miracle Network, whose mission it is to encourage Canadians to have reasoned conversations about energy issues, 12/14/21
“Michigan has dropped a lawsuit in federal court that threatened Enbridge’s Line 5 pipeline — which carries about half of Ontario and Quebec’s petroleum. While it may seem like an early Christmas gift from Michigan’s Governor Gretchen Whitmer, it’s more likely she saw the writing on the wall,” Michael Binnion writes for the Toronto Sun. “Our Modern Miracle Network and many other experts had long warned about the pipeline’s significance to Canada’s energy security. When the threats to shut down Line 5 were imminent last spring, union leaders, politicians of all stripes, and finally the federal government joined in the chorus in a rare act of non-partisan unity. Usually not supportive of pipelines, the Liberals even invoked a 1977 treaty to protect Line 5… “Whitmer’s opposition to the Line 5 pipeline is based on her ideological stance. Only ideology allows her to hold millions of Canadians ransom and ignore the devastating impacts of a shutdown. We simply cannot transition off of oil and gas by turning off the taps like she imagines. Many Americans learned this the hard way while struggling due to recent energy shortages. What Whitmer and other “old-school” environmentalists ignore with their ideological mindsets are real alternative solutions to climate change. Over the last decade, massive innovations have occurred — many of which were made right here in Canada. Carbon capture technologies being developed and deployed throughout the world are an absolute game-changer. They will allow us to create a net-zero emission economy without shutting down pipelines — or even needing to blow them up as environmental dinosaurs like David Suzuki may suggest!”
The Hill: Why Saudi Arabia's oil is vital to the global energy transition
David H. Rundell is a former chief of mission at the American Embassy in Saudi Arabia, 12/13/21
“The transition from hydrocarbon fuels will require new technologies, capital investment and political support for change. Saudi Arabia’s unique role in energy markets makes it an important factor in meeting all of these conditions,” David H. Rundell writes for The Hill. “Eighty percent of global energy is still produced from hydrocarbons with 30 percent coming from oil. Next year global oil demand is expected to exceed pre-pandemic levels and the International Energy Agency anticipates this demand will grow for another decade… “Existing oil fields deplete and require continuous drilling to maintain current production levels. Yet, today, major oil companies face growing concerns over stranded assets and new government regulations. Many have slashed their exploration budgets. As climate-aware investors seek to minimize their exposure to hydrocarbons, these firms may have neither the desire nor the ability to maintain production levels… “Avoiding an economic recession or political backlash caused by soaring energy costs are prerequisites for the investment and legislation needed to bring about the clean energy transition. The Saudis are currently investing $300 billion to increase their oil production. As the major international oil companies reduce their exploration budgets, we should be glad that they are.”