EXTRACTED: Daily News Clips 12/20/22
PIPELINE NEWS
Canadian Press: TC Energy says cold weather could slow recovery of oil from Keystone pipeline leak
KSHB: Forecasted cold temperatures could slow recovery of Keystone pipeline oil spill in Kansas
U.S. EPA: TC Energy Mill Creek Oil Spill Emergency Response
Kansas City Star: Almost 100 animals were killed by Keystone oil spill. How to report affected wildlife
Bloomberg: Keystone pipeline likely will not be fully up and running for more than a month: Energy consultant [VIDEO]
Gate City Daily: Residents give pipeline opinions to supervisors
KMA: Project 2022: Carbon pipeline project debate
Kamloops This Week: Second group of pipeline protesters found guilty of criminal contempt
Forum News Service: Photojournalist says she was wrongfully arrested during Dakota Access Pipeline protests
WLDS: Duckworth’s Letter, Landowners Complains of Spire STL Pipeline Doesn’t Help, FERC Reissues Certificate
The Chief: Sounding the Alarm: Reject fossil gas pipeline expansion, Oregon U.S. Senators say
WJAC: Lawyer speaks out on the Sunoco pipeline construction lawsuit in Jackson Township
Law360: Ruby Pipeline Seeks OK For $135M Kinder Morgan Settlement
Law360: Del. Justices Undo $690M Award In Boardwalk Pipeline Case
Prairie Public Broadcasting: PSC discussing fine for a natural gas pipeline company for building a pipeline without a corridor permit
AgWeek: No bids for North Dakota natural gas pipeline project funding on third go-around
WASHINGTON UPDATES
Bloomberg: Lawmakers release huge spending bill ahead of deadline
Press release: “The Earth Bill" Introduced in Congress to Meet USA Paris Commitments, Slashes Climate Pollution By An Additional 40% by 2030, and 50% by 2050.
Fox Business: US poised to become net exporter of crude oil in 2023
E&E News: Gas for coal? Debate rages on as electric companies invest.
STATE UPDATES
Press release: SoCalGas Achieves Important Milestone in Advancing Proposed Angeles Link Green Hydrogen Infrastructure System
Associated Press: Investigators in west Texas following 5.4 earthquake
InsideClimate News: Fracking Waste Gets a Second Look to Ease Looming West Texas Water Shortage
Alaska Beacon: Alaska, source of carbon-emitting fossil fuels, aims to raise money by storing carbon
Albuquerque Journal: NM Gas Co. wants to build a $180M liquid natural gas storage facility in Rio Rancho
EXTRACTION
The Narwhal: Documents reveal how Alberta oil and gas industry used pandemic to push ‘wish list’
Calgary Herald: Varcoe: Smith favours ’carrots of tax incentives' for carbon capture investment
E&E News: 5 questions answered about ‘clean’ hydrogen
CLIMATE FINANCE
Reuters: BlackRock plans no big changes to ESG stance despite backlash
Motley Fool: Oilsands Producers: Up to 100% of Free Cash Flow Will Go to Investors
OPINION
Norfolk Daily News: Keeping conversation going during disputes rarely is a bad thing
The Hill: Natural gas and permitting reform are critical to a clean energy future
PIPELINE NEWS
Canadian Press: TC Energy says cold weather could slow recovery of oil from Keystone pipeline leak
12/19/22
“TC Energy Inc. says upcoming cold weather has the potential to slow the recovery of the oil spilled from its Keystone pipeline leak in Kansas,” the Canadian Press reports. “The company says it has recovered an estimated 7,233 barrels of oil from a creek as of 5 p.m. CT on Sunday… “The company says the affected segment of the pipeline remains isolated as investigation, recovery, repair and remediation efforts continue.”
KSHB: Forecasted cold temperatures could slow recovery of Keystone pipeline oil spill in Kansas
Sam Hartle, 12/19/22
“Frigid temperatures forecast for this week in north-central Kansas could slow the recovery of thousands of barrels of oil that spilled from the Keystone Pipeline earlier this month,” KSHB reports. “Our recovery rates have the potential to slow by the upcoming cold weather in the area,” the company said Monday. KSHB 41 Weather meteorologist Lindsey Anderson said wind chills could drop to minus-30 degrees in the area of the pipeline rupture, which is about 200 miles northwest of Kansas City. The Environmental Protection Agency has built an interactive web page detailing the extent of the pipeline rupture as well as ongoing clean-up efforts.”
U.S. EPA: TC Energy Mill Creek Oil Spill Emergency Response
12/19/22
“Response Overview: On December 7, 2022, a TC Energy pipeline, part of the Keystone pipeline system, ruptured south of where it crosses Mill Creek northeast of Washington, Kansas. The pipeline rupture, which was confirmed by TC Energy personnel during the morning of December 8, resulted in widespread vegetation staining. TC Energy estimates the total oil volume discharged as 588,000 gallons (14,000 barrels). Impacts to Mill Creek initially extended approximately three miles downstream to a bridge crossing at 20th Street. To provide containment and prevent downstream migration of oil on Mill Creek, an underflow dam was constructed on the creek approximately four miles downstream of the discharge source, beyond the extent of impacts. Upon discovery of the pipeline discharge, TC Energy enacted their pipeline response plan and commenced oil containment and recovery activities. On December 8, 2022, the Environmental Protection Agency (EPA) Region 7 mobilized two On-Scene Coordinators to the incident to coordinate with TC Energy and other response personnel and to conduct federal oversight of the response. The response is being conducted under a Unified Command with EPA, Kansas Department of Health and Environment (KDHE), and TC Energy. Response activities are ongoing 24 hours a day and include the containment and recovery of oil from the pipeline rupture point, removal of oil-impacted soil and vegetation, recovery of oil from Mill Creek, air and surface water monitoring, natural resource damage assessment, and waste management. In addition, TC Energy continues operations to repair the pipeline which is being coordinated with the Pipeline and Hazardous Materials Safety Administration. EPA heavy crude oil subject matter experts continue to be consulted for technical expertise in containment and cleanup strategies…”
Kansas City Star: Almost 100 animals were killed by Keystone oil spill. How to report affected wildlife
NATALIE WALLINGTON, 12/20/22
“Four mammals and 92 fish have been found dead so far on the site of the Keystone Pipeline’s oil spill in Washington County, Kansas,” the Kansas City Star reports. “Environmental Protection Agency (EPA) spokesperson Kellen Ashford told The Star that one of the mammals was a beaver that was found alive and received care from wildlife specialists, but died days later. “The Kansas Department of Wildlife and Parks (KDWP) is working with federal partners to conduct wildlife identification and impact assessments,” the agency reported Monday. “While KDWP staff can confirm select fish, mussels, and mammals have been impacted, it is still too early to determine the extent (of the impact).” “...Anyone in the area of the spill, which occurred near Mill Creek in Washington County, Kansas, can use this form to report sightings of wildlife that may have been affected by the incident… “The company has not responded to The Star’s requests for information about the reports it has received so far. “We are working with wildlife assessment crews including state and federal wildlife trustees and have trained professional responders onsite to identify any impacts to wildlife,” the company wrote in a press release Friday morning.”
Bloomberg: Keystone pipeline likely will not be fully up and running for more than a month: Energy consultant [VIDEO]
12/19/22
“Vijay Muralidharan, director of R Cube Economic Consulting, joins BNN Bloomberg to discuss the latest developments in TC Energy's Keystone pipeline leak. Muralidharan says that the U.S. regulator is being quite stringent when it comes to this spill, and wants it fixed before the affected pipeline segment is restarted,” Bloomberg reports.
Gate City Daily: Residents give pipeline opinions to supervisors
Joe Benedict, 12/19/22
“Several people spoke to the Lee County Board of Supervisors at its regular meeting Monday as the hearing with the Iowa Utility Board on Jan. 9 draws closer, concerning eminent domain requests for the NuStar anhydrous ammonia pipeline approaches,” the Gate City Daily reports. “Local farmer Ted Stein, who lives on 180th St., said he’s seen news reports that say the pipeline will help local farmers. He said he has talked to a local fertilizer seller and they get their stock mostly from Texas. He said his property was on the original proposed route of the pipeline, but that has changed. He said he would like to see some more transparency in the process from NuStar, but feels he, as an individual, won’t be able to get very far with the company. He said the Board of Supervisors would have a better chance of getting their attention… “His concern is that if this pipeline gets use of eminent domain, that will set a precedent for the other pipeline, the CO2 line that also is trying to go through the county… “John Hayes joined the meeting over the Internet, saying he was one of the landowners that have objected to the pipeline on his property. He said he feels very strongly that this is not a case where eminent domain should be used. That meeting with the Iowa Utilities Board is at 1 p.m. on Jan. 9 at the Quality Inn and Suites in Fort Madison.”
KMA: Project 2022: Carbon pipeline project debate
Mike Peterson, 12/20/22
“Time now for another segment of "Project 2022," our series of reports looking back at the top local and regional news stories of the past year. In today's report, we move from one controversial topic another, as we look at the raging debate over carbon pipeline projects,” KMA reports. “...In an interview on KMA's "Morning Show," Summit Spokesperson Chris Hill discussed the pipeline's potential positives. "People are realizing the benefits to the agriculture industry, to the ethanol industry, to land values and also the economic benefits to communities and counties that are within the project footprint," Hill said. "So a lot of good energy and support on the project, and some healthy concern." “...Opponents, meanwhile, continued to wage a full-scale protest against the pipeline. In July, the Iowa Carbon Pipeline Resistance Coalition, along with several residents of all political backgrounds, gathered at a public meeting at the Firehouse Restaurant in Red Oak, to outline possible dangers and the next steps in combatting liquid carbon dioxide pipelines. Jess Mazour, the conservation program coordinator for the Sierra Club Iowa Chapter, calls the pipeline company's promises of a climate-change solution a "green scheme" due to the carbon capture process utilizing an immense amount of energy. "So these companies are going to be contacting your energy co-ops if you have RDCs or whatever it is in the area, they're going to be probably trying to take a lot of energy away from community members," Mazour told KMA. "We also know that part of the process where you capture (CO2) in order to compress it, it creates a lot of outputs that have to be disposed of." Some of the angst over the project concerned the possible use of eminent domain to acquire property for the pipeline. In late March, the Montgomery County Board of Supervisors unanimously approved a letter of objection addressed to the utilies board to using eminent domain. The board's action followed a previous meeting, in which residents spoke out against the proposed legal maneuver. West Township resident Jan Norris says the pipeline is proposed to run behind her residence, and between her two farms. "The biggest question to ask yourself is: is eminent domain for this project all right, as long as it's your neighbor's property?" Norris asked. "Regardless of how we feel about ethanol, do you think it's okay as long as it's not your land? Please formally object to the use of eminent domain for the CO2 pipelines."
Kamloops This Week: Second group of pipeline protesters found guilty of criminal contempt
Michael Potestio, 12/19/22
“A second trial of members of a Secwépemc group protesting the Trans Mountain pipeline expansion project has resulted in convictions on criminal contempt charges,” Kamloops This Week reports. “Susan Bibbings, Miranda Dick, Heather Lamoureux and Laura Zadorozny, who are with the Secwépemc Unity Group to Stop the Trans Mountain Pipeline, have been found guilty of criminal contempt by B.C. Supreme Court Justice Shelly Fitzpatrick for breaching the court-ordered injunction on Trans Mountain construction sites. All four women were arrested, and later released by police, on the morning of Oct. 17, 2020, during work hours when they went to a gate at a Trans Mountain construction site near Kamloops Airport in Brocklehurst… “All eight protesters, who represented themselves at trial, are expected to be sentenced during the week of Feb. 21, 2023. In a Facebook Live post following Fitzpatrick’s decision, Dick, the group’s spokesperson, noted the reason for their protests. “This was all to bring awareness to stopping the Trans Mountain pipeline,” Dick said. She said the time they have spent in court over the past two years has allowed them to raise awareness of Indigenous injustice for communities impacted by the pipeline expansion project. “This has caused undue hardship for the peoples for protecting clean water,” Dick said, noting they argued the court has no jurisdiction over Secwépemc territory and only assumes it… “The protesters have said they represent the will of the Secwépemc people and contend elected First Nations band councils that support the pipeline project have been bought off to do so. Tk’emlúps te Secwépemc has a $3-million mutual benefits agreement with Trans Mountain. The band has said it does not condone the protests.”
Forum News Service: Photojournalist says she was wrongfully arrested during Dakota Access Pipeline protests
April Baumgarten, 12/19/22
“An Oregon photojournalist has claimed several enforcement officers from central North Dakota wrongfully arrested her during the Dakota Access Pipeline protests in 2017,” Forum News Service reports. “Tonita Cervantes of Portland, Oregon, filed the civil rights lawsuit Monday, Dec. 19, in North Dakota federal court. The social documentary journalist claimed Morton County Sheriff Kyle Kirchmeier, his deputy and a Mandan police officer violated her right to document the pipeline demonstrations south of Bismarck. “(Cervantes) was attacked, arrested, imprisoned and prosecuted because she was a photojournalist engaged in Constitutionally protected activity and to retaliate against her for doing so,” a civil complaint alleged… “She was wearing a fluorescent green vest and bright yellow poncho, both of which said press, according to the complaint… “Cervantes told law enforcement it was unfair to arrest members of the press who were covering the event, the complaint said. That’s when officers took her into custody, despite her saying she was a photojournalist, according to the complaint… “After her arrest, she was taken to the Morton County Jail and “placed in an enclosure resembling a dog cage,” the complaint alleged… “After arriving at Devils Lake (North Dakota) Correctional Facility, she was told she was ‘uncooperative' for asking to make her one phone call and told ‘criminals don’t have rights,’” the complaint said… “Cervantes’ attorneys told the Forum she didn’t violate the law and was compliant with law enforcement, but the defendants’ actions were “objectively unreasonable.” “...Cervantes was one of at least 15 journalists arrested and charged in connection to the DAPL protests, her attorneys said in court documents. Kirchmeier, Mandan Police Chief Jason Ziegler and Cervantes' attorney, Melinda Power, did not reply to phone messages left by The Forum.”
WLDS: Duckworth’s Letter, Landowners Complains of Spire STL Pipeline Doesn’t Help, FERC Reissues Certificate
Benjamin Cox, 12/19/22
“The Federal Energy Regulatory Commission voted Thursday to approve a fresh certificate for the already operating Spire STL Pipeline,” WLDS reports. “...The Environmental Defense Fund, which filed the lawsuit that led to the ruling last year, said Thursday it intends to file a request for rehearing with the commission. It had pushed FERC to hold a public review process on the need for the pipeline. Illinois Senator Tammy Duckworth wasn’t happy with the quick turnaround on the hearing. Duckworth’s Office filed an official letter with FERC on December 13th saying that the FERC staff had filed incomplete reports with the commission on December 6th about site visits that Duckworth, the Illinois EPA, the Illinois Department of Agriculture, members of FERC, and the landowners attended along the pipeline’s easement. The site visits were meant to present evidence to all of the agencies how Spire had not followed through on restoring the land to an appropriate state. Duckworth’s letter accused the incomplete reporting by FERC of allowing Spire to continue its regulatory and restoration along the pipeline’s easement. Duckworth also called the Thursday hearing to rule on the pipeline’s certificate “a surprise” because Duckworth’s staff had presented new information about “ongoing and unresolved compliance issues” about Spire to the Commission on the week of December 5th. Duckworth said in the letter: “FERC [is] not granted congressionally delegated authority to allow companies off the hook at the expense of landowners.” “...Landowners who remain frustrated with the lack of movement by FERC to force Spire to fix environmental problems and be in compliance with the Illinois Department of Agriculture’s Agricultural Impact Mitigation Agreement [AIMA] filed a petition to show cause with FERC on Wednesday asking the company to show why it has failed to comply with the agreement… “The Environmental Defense Fund said FERC once again oversaw a flawed review process at the Thursday hearing by shutting out affected landowners and Spire ratepayers from commenting or offering evidence about Spire’s most recent claims.”
The Chief: Sounding the Alarm: Reject fossil gas pipeline expansion, Oregon U.S. Senators say
12/19/22
“Oregon’s U.S. Senators Jeff Merkley and Ron Wyden have sent a letter to the Federal Energy Regulatory Commission (FERC) Chairman Richard Glick, and FERC commissioners urging them to listen to the Oregon Attorney General and deny permits for TC Energy’s Gas Transmission Northwest (GTN) Xpress project,” The Chief reports. “In order to reach a net-zero emissions economy by 2050, President Biden pledged to reduce greenhouse gas emissions by 50 to 52% by 2030, below 2005 levels,” wrote Merkley and Wyden. “According to FERCs FEIS, the project would emit 2.3 million metric tons of Carbon Dioxide equivalent emissions each year, until at least 2052. Your FEIS predicts the project will cause nine billion dollars in climate-related damage over the next 28 years. And that’s with a methodology that systematically minimizes the pipeline’s climate impacts. Adding new emissions through pipeline expansions like the GTN Xpress is incompatible with President Biden’s pledge.” “...Merkley and Wyden’s letter continues by urging the FERC chairman and commissioners to listen to Oregon when it says the GTN Xpress is incompatible with climate objectives, highlighting how moving forward would not be in the public’s interest. “Expanding fossil gas through the GTN Xpress will undermine the efforts in Oregon to support a cleaner, safer, and effective alternative to fossil gas. Rather than helping Americans, GTN Xpress would be supporting a market for dirty fossil gas from a foreign country,” they conclude.
WJAC: Lawyer speaks out on the Sunoco pipeline construction lawsuit in Jackson Township
Nicole Fuschino, 12/19/22
“A Cambria County couple filed a $150,000 lawsuit against Sunoco Pipeline L.P. regarding the construction of a local pipeline,” WJAC reports. “The Shawleys, who live on a private property along Allbaugh Park Road in Jackson Township, told WJAC the pipeline made their home "nearly uninhabitable." "What we heard from Mr. Shawley was absolutely horrific." That's what the couple's environmental attorney, Scott Edwards, told 6 News Monday morning just days after the lawsuit was filed. The lawsuit states that the pipeline construction damaged the couple's private well and septic system, causing flooding, sewage issues, and damage to household appliances and furniture. The Shawleys also claim that they have since suffered health issues, including headaches, burning eyes, rashes, and others. Attorney Edwards says he's now fighting for the couple to have clean drinking water and a strong septic system. "Right now, they don't have either of those things. We want their home and their property to be restored to what it was before Sunoco showed up and installed its pipeline and destroyed the entire hydrological system on and around their property," Edwards told 6 News.
Law360: Ruby Pipeline Seeks OK For $135M Kinder Morgan Settlement
Brian Steele, 12/19/22
“Ruby Pipeline LLC has asked a Delaware bankruptcy court to approve a $135 million settlement with its equity sponsors over claims that they company paid them quarterly dividends while it was insolvent, a move that would clear the way for Tallgrass MLP Operations to complete its purchase of the debtor…,” Law360 reports.
Law360: Del. Justices Undo $690M Award In Boardwalk Pipeline Case
Dave Simpson, 12/19/22
“The Delaware Supreme Court reversed a Chancery Court decision that awarded former minority unit-holders of Boardwalk Pipeline Partners LP $690 million in their class action lawsuit over a $1.5 billion public-unit buyout, ruling on Monday that Boardwalk’s general partner acted in “good faith” relying on the advice of counsel,” Law360 reports.
Prairie Public Broadcasting: PSC discussing fine for a natural gas pipeline company for building a pipeline without a corridor permit
Dave Thompson, 12/19/22
“North Dakota’s Public Service Commission is mulling what to do in the case of a short natural gas pipeline in McKenzie County, that was built without the proper siting permits,” Prairie Public Broadcasting reports. “It’s a short pipeline – just over two and a half miles long. But the company – Caliber North Dakota LLC – failed to get the siting permits. The company realized – after the pipeline was built – that it needed to get those permits, and brought it to the PSC’s attention. In a proposed settlement agreement, PSC staff recommended a $5000 fine. Commissioner Randy Christmann said $5000 was fair. "They brought it to our attention," Christmann said. "They made a mistake — no doubt about it. And it's a serious mistake. But I'm not sure we would have ever realized the company was doing business, because it's such a short pipeline." Christmann also said the company has been cooperative. But the other two commissioners believed the fine wasn't sufficient… “Haugen-Hoffart said the company had staff on hand that should have known about siting laws.”
AgWeek: No bids for North Dakota natural gas pipeline project funding on third go-around
Ann Bailey, 12/19/22
“No companies submitted applications by the deadline of Dec. 15, 2022, for a grant that would assist with construction of a high-pressure transmission pipeline to bring natural gas west to east across North Dakota,” AgWeek reports. “The pipeline project would partly be funded by $150 million from the North Dakota Industrial Commission. North Dakota lawmakers made the funds available to the Industrial Commission for matching grants during a special legislative session in November 2021. The amount includes $10 million designated to transport natural gas to Grand Forks County, where Fufeng Group Ltd., which has proposed to build a wet corn milling plant, and Northern Plains Nitrogen, a fertilizer plant, are potential customers. Viking Gas Transmission applied for the $10 million grant on April 28, 2022. That grant is still under review and has not been acted upon, Justin Kringstad, North Dakota Pipeline Authority director, told AgWeek. The full project cost in Viking's April application was $26.1 million, he said. However, by the Dec. 15 deadline, no one had applied for the main portion of the grant. The original application deadline was May 15, 2022, and the Industrial Commission now has extended that date twice, to Aug. 15, 2022, and then to Dec. 15, 2022, when no one applied. The North Dakota Industrial Commission will meet on Tuesday, Dec. 20, in Bismarck, and members likely will talk about its options for the grant, which include asking North Dakota legislators to modify the proposal during the 2023 session, Kringstad told AgWeek. In April 2022, WBI Energy Transmission wrote in a letter to North Dakota leaders that construction of the west-to-east pipeline was too costly because of the high project cost estimates, increased regulatory uncertainty and limited in-state demand potential, according to the Associated Press.”
WASHINGTON UPDATES
Bloomberg: Lawmakers release huge spending bill ahead of deadline
Eric Wasson, 12/20/22
“US lawmakers have agreed to a $1.7 trillion funding bill and plan to ram the compromise legislation through the House and Senate this week to avert a Dec. 24 government shutdown,” Bloomberg reports. “...Lawmakers were unable to attach a bevy of other congressional priorities to the must-pass legislation despite weeks of negotiations… “West Virginia Senator Joe Manchin attempted to add changes to energy project permitting but he was rebuffed.”
Press release: “The Earth Bill" Introduced in Congress to Meet USA Paris Commitments, Slashes Climate Pollution By An Additional 40% by 2030, and 50% by 2050.
12/17/22
“Heading the call at COP27 for faster climate pollution reductions, U.S. Representative Adriano Espaillat of New York has introduced historic legislation coined “The Earth BIll” to meet the USA Paris Accord goals and accelerate the transition to a clean economy. The Earth Bill proactively requires 100% renewable electricity from utilities, zero-emission vehicles from manufacturers, and regenerative agriculture by publicly-traded land and livestock corporations by 2030. The powerful approach reflects a different strategy, tackling the pollution at the factory, requiring specific pollution-free practicies, and charging the relevant companies to develop plans to make a smooth transition on a deadline. In doing so, it provides simple and clear laws that create a guaranteed market to spur private investment to build at scale. Putting the requirements in the law, with penalties for non-compliance, also make emission reductions more certain, providing true comfort that the crisis is being addressed… "At COP27 there was a clear demand for top emitters to reduce GHG emissions faster. The Earth Bill would be a game-changer and make the United States the world leader in domestic policy to stop climate pollution at the speed the crisis requires. We can still prevent the worst if we act as fast as possible, and we have a duty to set this course in law now to meet our Paris Commitments," said U.S. Representative Adriano Espaillat (NY-13). The U.S. Paris goal is to lower annual emissions to 3.3 Gt CO2-eq by 2030. The Earth Bill would reduce emissions to 2.49 Gt CO2-eq by 2030. The Earth Bill's solutions focus on three kitchen-table issues - electricity, cars & food – because they are three major pollution sources - and also because they are core necessities that meet the public at the pocket-book.”
Fox Business: US poised to become net exporter of crude oil in 2023
12/19/22
“The United States has become a global crude oil exporting power over the last few years, but exports have not exceeded its imports since World War II. That could change next year,” Fox Business reports. “Sales of U.S. crude to other nations are now a record 3.4 million barrels per day (bpd), with exports of about 3 million bpd of refined products like gasoline and diesel fuel. The United States is also the leading liquefied natural gas (LNG) exporter, where growth is expected to soar in coming years. But the United States consumes 20 million barrels of crude a day, the most in the world, and its output has never exceeded 13 million bpd. Until recently, the idea that it would be anything but a big crude importer was folly. Last month, U.S. government data showed net U.S. crude oil imports fell to 1.1 million barrels per day (bpd), the lowest since record keeping began in 2001. That is down sharply from five years ago, when the United States imported more than 7 million barrels per day. Factors changing that equation this year include sanctions hurting Russia's exports of oil and natural gas following its invasion of Ukraine, and Washington's massive release of oil from emergency reserves to combat spiking gasoline prices… “To become a net exporter of crude, the United States needs either to boost production or curtail consumption. U.S. petroleum demand is expected to rise 0.7% to 20.51 million bpd next year, so that means production would have to rise… “The United States became the world's largest exporter of liquefied natural gas during the first half of 2022, surpassing Qatar and Australia, on the back of demand from Europe and surging prices.”
E&E News: Gas for coal? Debate rages on as electric companies invest.
Jeffrey Tomich, 12/20/22
“Some of the largest coal-burning power plants in the nation are being fast-tracked for retirement and replaced in part by cheaper, cleaner renewable energy — a trend that should accelerate following enactment of landmark federal climate legislation,” E&E News reports. “But in saying goodbye to coal, utilities like DTE Energy Co. and AES Corp. are proposing new fossil fuel investments they insist are essential for reliability at a time when electric generation is increasingly dependent on weather… “The U.S. Energy Information Administration says more than 22,000 MW of new gas generation is planned in the United States, a figure that doesn’t include Belle River, Petersburg and numerous other newly proposed projects. A recent analysis by consultants McKinsey & Co. looks out even further and estimates 100,000 MW of new gas generation will be needed by 2040. Power industry officials say the projects don’t conflict with achieving long-term climate goals. In fact, they say swapping gas for coal by itself equals a huge carbon reduction and some argue gas will help integrate more wind and solar more quickly than could be accommodated otherwise… “Not everyone agrees that fossil fuel additions are compatible with the science of avoiding the worst consequences of climate change. “The imperative to get to net zero by midcentury is kind of the main driver for why we really want to restrict investments in new fossil generation of any kind,” Mike O’Boyle, director of electricity at Energy Innovation, a think tank, told E&E. “Obviously, natural gas is a better alternative than coal. But the ship has sailed on new coal. It's really all about whether we can afford to build new gas. I don't think we can."
STATE UPDATES
Press release: SoCalGas Achieves Important Milestone in Advancing Proposed Angeles Link Green Hydrogen Infrastructure System
12/17/22
“The California Public Utilities Commission (CPUC) has approved Southern California Gas Co.’s (SoCalGas’) request to track costs for advancing the first phase of Angeles Link, a proposed green hydrogen pipeline system that could deliver clean, reliable, renewable energy to the Los Angeles region. As envisioned, Angeles Link could be the nation’s largest green hydrogen pipeline system and support significantly reducing greenhouse gas emissions from electric generation, industrial processes, heavy-duty trucks, and other hard-to-electrify sectors of the Southern California economy. In a final decision, the CPUC declared, “the public interest is served if SoCalGas begins conducting a feasibility study of the Project immediately.” The agency also asked SoCalGas to join members of the Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES) in support of California’s application for a share of $8 billion in available federal funds to support regional hydrogen hubs… “Proposed in February of this year, Angeles Link would serve hard-to-electrify industries like dispatchable electric generation, heavy duty trucking and industrial processes. As contemplated, Angeles Link would deliver green hydrogen in an amount equivalent to almost 25% of the natural gas SoCalGas delivers today. In serving those industries, Angeles Link’s green hydrogen could: Displace up to 3 million gallons of diesel fuel per day, or 1 billion gallons annually, and enable conversion of up to four natural gas power plants to run on clean renewable hydrogen….”
Associated Press: Investigators in west Texas following 5.4 earthquake
12/17/22
“The Texas Railroad Commission, which oversees the state’s oil and gas industry, on Saturday sent investigators to west Texas following a 5.4 magnitude earthquake near Midland,” the Associated Press reports. “RRC inspectors will be examining disposal activity at injection well sites near the earthquake,” according to a statement from the commission, “and will take any necessary actions to protect public safety and the environment.” The Railroad Commission earlier this month directed producers to reduce injection volumes following a 5.4 magnitude earthquake on Nov. 16 in Mentone, about 90 miles (145 kilometers) west of Midland. The Friday afternoon earthquake, about 315 miles (507 kilometers) west of Dallas, resulted in no injuries and only minimal damage, including no apparent damage to oil and gas wells in the area, Midland County Emergency Management Coordinator Justin Bunch told AP… “Earthquakes in the south-central United States have been linked to oil and gas production, particularly the underground injection of wastewater, which is a byproduct of oil and gas production. In neighboring Oklahoma, thousands of earthquakes of varying magnitudes have been recorded in the past decade, leading state regulators to direct producers to close some injection wells.”
InsideClimate News: Fracking Waste Gets a Second Look to Ease Looming West Texas Water Shortage
Dylan Baddour, 12/19/22
“Fracked wells in West Texas don’t just produce petroleum. Much more than anything else, they spit up salty, mucky water. Typically, companies have discarded that fluid, hundreds of millions of gallons per day, by injecting it back underground, occasionally causing small earthquakes. But as water becomes more scarce, they’re beginning to reconsider,” InsideClimate News reports. “For now, hydraulic fracturing in arid West Texas uses large amounts of fresh aquifer water to crack open subterranean shales, unleashing a mixture of oil, gas and fossil brine 10 times as salty as the sea. Increasingly, frackers are starting to reuse that brine, easing their burden on aquifers. “We’ve just month by month seen extraordinary growth in the volumes we are managing,” Matthew Gabriel, CEO of XRI Holdings, which recycles oilfield wastewater in the Permian Basin, the nation’s top oil-producing region, told ICN. This month, XRI announced a 230-mile expansion to its existing 450-mile Permian pipeline network. Unlike other Permian pipelines, these carry water from oilfields to treatment plants and back, linking the major oil producers’ batteries of tanks. XRI, based in Houston, is also adding three more treatment plants to its existing 30. Fracking doesn’t require particularly clean water and the treatment to prepare it is pretty simple, Gabriel said. It’s the pipeline network that makes it economical, providing the equivalent of oilfield plumbing to replace the laborious process of trucking in water and trucking out waste… “XRI currently manages 1 million barrels of wastewater per day and recycles 800,000 — a small portion of the total volume produced by Permian Basin oil fields. Recently, Texas convened water experts for a state-funded study of recycling that so-called “produced water,” the term for wastewater from oil wells. Released this year, the Texas Produced Water Consortium report estimated Permian Basin wastewater production at approximately 11 million barrels, or 462 million gallons, per day in 2019, the last year of available data. Since then the figure has likely increased in step with soaring Permian oil and gas output. In response to a survey by the Texas consortium, fracking companies on average said they were already reusing about 30% of their wastewater. Even if they satisfied 100% of their need with recycled water, they would still have millions of barrels of produced water left over every day. Underground disposal remained a much cheaper option than reuse, it said, but might not be so for long. “Scarcity conditions,” the 130-page report said, “will eventually make this an economically viable option.” According to the latest Texas water plan, statewide water supplies will decrease by approximately 18% within 50 years, “primarily due to depletion of aquifers.” “Without additional supplies … one-quarter of Texas’ population would have less than half of the municipal water supplies they will require in 2070,” the plan said.
Alaska Beacon: Alaska, source of carbon-emitting fossil fuels, aims to raise money by storing carbon
Lisa Phu, 12/16/22
“Alaska’s state government raises hundreds of millions of dollars each year through the sale of oil that when burned contributes to climate change. Now the state is looking to also make money by preventing some of these gasses from entering the atmosphere,” the Alaska Beacon reports. “...Alaska has a real opportunity to sequester carbon in many different ways in the state – through our forests, through our depleted oil and gas basins, as well as the potential for seaweed sequestration off our coasts,” Gov. Mike Dunleavy said during a press briefing Thursday where he and his cabinet released the proposed budget for the fiscal year that starts in July 2023… “Dunleavy said Alaska’s depleted basins, like Cook Inlet, are perfect places to sequester carbon. He said Cook Inlet could store upwards of 50 gigatons of carbon. “As a matter of fact, Alaska probably has more capacity to sequester carbon underground than anywhere on the West Coast,” he said… “Dunleavy told the Beacon the bill he plans to introduce this coming session will be a starting point to figure out what carbon sequestration would look like in the state and explore things like how the state can contract with companies and other entities, what’s in the contract, and what lands, basins and coastlines could be involved.”
Albuquerque Journal: NM Gas Co. wants to build a $180M liquid natural gas storage facility in Rio Rancho
KEVIN ROBINSON-AVILA, 12/16/22
“The New Mexico Gas Co. wants to reinforce system reliability and help mitigate sharp price fluctuations in cold winter months with a new, $180 million liquid natural gas storage facility it hopes to build in Rio Rancho,” the Albuquerque Journal reports. “The company filed for project approval Friday morning at the state Public Regulation Commission, which must issue a certificate of public convenience and necessity authorizing construction before the utility can move forward, N.M. Gas Vice President for External Affairs Gerald Weseen told the Journal. The PRC review could take up to 15 months, meaning the company couldn’t break ground until likely early 2025, assuming the commission approves the project. “This could provide us with increased reliability and help us to mitigate the potential risks of price volatility,” Weseen told the Journal. “We faced extreme price swings last year during a severe winter storm in February 2021, and we spent more on gas in that one weeklong event than we normally do in an entire year.” “...As part of last year’s cost-recovery proceedings, the PRC asked New Mexico Gas to look at alternative storage options to give the utility more control over its gas supplies. Currently, the company stores its natural gas in underground caverns in West Texas operated by a third party, creating reliability problems during severe weather events, plus additional costs, utility Vice President of Gas Management and Technical Services Tom Bullard told the Journal.
EXTRACTION
The Narwhal: Documents reveal how Alberta oil and gas industry used pandemic to push ‘wish list’
Carl Meyer and Drew Anderson, 12/19/22
“Oil and gas producers were in dire straits in the spring of 2020,” The Narwhal reports. “...In Alberta, oil and gas lobbyists sprung into action, warning government officials the industry could barely cover operating costs. Companies needed financing and government help to keep people employed, they argued, and to provide shelter from the twin crises of COVID-19 and an oil market crash. But correspondence and meeting records obtained by The Narwhal have revealed the lobbying went far beyond surviving the pandemic and included what one former government official described as a long-standing oilpatch industry “wish list.” The records, including dozens of pages the Alberta government initially refused to release, in violation of a provincial information law, reveal details of the long list of changes proposed by the lobby group, the Canadian Association of Petroleum Producers. An analysis by The Narwhal has revealed four key areas the oil lobbyists discussed — wetlands, oilsands monitoring, tailings ponds and public involvement — could also be found in earlier lobbying efforts that took place far before the COVID-19 pandemic began. Eric Denhoff, who acted as a deputy minister of Alberta’s Environment Ministry under the previous NDP government, reviewed the lobbyists’ list upon The Narwhal’s request. “When you look at the enormous volume of requests, what you really have there is a 20-year wish list of requests that they’ve been trying on the [Progressive] Conservatives, then the NDP and then the UCP governments over the last couple of decades,” Denhoff told the Narwhal. “Many of these go back a long way, and they’ve been pushed back on — both by conservative and NDP governments — because they were inappropriate to try and let industry wriggle out of basic, core responsibilities.” Jan Gorski, director of the Pembina Institute’s oil and gas program, called the scale and scope of the requests “alarming.” Gorski told the Narwhal it appeared that during the pandemic, oil lobbyists “sought the removal of a critical number of environmental protections which were unjustified and would have had long-term negative consequences to Albertans and our environment.”
Calgary Herald: Varcoe: Smith favours ’carrots of tax incentives' for carbon capture investment
Chris Varcoe, 12/19/22
“Premier Danielle Smith suggests her government is willing to consider provincial assistance to kickstart investment in carbon capture and storage developments, including the mega-project being considered by the country’s largest oilsands producers,” the Calgary Herald reports. “In an interview, Smith told the Herald she’s heard that Ottawa wants a partner “if we’re going to offer tax credits and tax incentives” for such developments. The premier has asked Alberta Environment Minister Sonya Savage to talk with federal officials “to see what we might do to create an environment that would allow for us to attract that investment.” Earlier this year, the Trudeau government introduced an investment tax credit for CCUS developments worth up to 50 per cent for spending on equipment to capture CO2. However, this measure now lags behind more lucrative incentives made available through the U.S. Inflation Reduction Act, which was signed by President Joe Biden in August. Asked if the province is willing to provide any direct assistance to attract investment from the Pathways Alliance — a group of six large oilsands producers — and other CCUS project proponents, Smith indicated the door is open for talks with Ottawa. “I’m very conscious of the fact that in the U.S. the measures being proposed by Biden are some of the best in the world for business attraction — same with Norway. And I would hope that we could try to be comparable,” she told the Herald. “Our approach in Canada has been all stick. It’s been all costs and taxes and punitive measures. It’d be nice if we could offer some carrots of tax incentives. “And so, I’m prepared to have that conversation and I know that my environment ministry has reached out and we’ll see if we get a positive response from the federal government.”
E&E News: 5 questions answered about ‘clean’ hydrogen
David Iaconangelo, 12/19/22
“Hydrogen’s long crawl into the energy sector mainstream has turned into a sprint the past few years, as the private sector and policymakers champion the idea of creating “hubs” for the fuel’s production,” E&E News reports. “But what would the hubs do exactly, and would they be as “clean” as envisioned? And will the Biden administration be able to deliver on its promises about hydrogen? The answers are pivotal for the Department of Energy, which is planning to take a major step next year in testing hydrogen by shelling out billions for the U.S.’s first big demonstrations of low-carbon production, transport, storage and consumption of the fuel. About $7 billion in infrastructure law funds will flow out to six to 10 of those hydrogen hubs in fall 2023. The department started accepting concept papers for the demonstrations in late September, with full applications due April 7… “Yet hydrogen’s uses, merits and drawbacks as a climate tool remain opaque to some — not least, for much of the public. In the meantime, questions remain over whether hydrogen can live up to its branding as a low-emissions technology and become cheap fast enough to replace fossil fuels… “For manufacturing, shipping, aviation and other energy consumers that are considered hard to electrify, hydrogen could substitute for fossil fuels and allow those industries to scale back their carbon emissions, supporters say. And fuel-cell vehicles, including semitrucks and other heavy classes of vehicle, could consume clean hydrogen without a greenhouse gas emissions footprint. Environmentalists and environmental justice groups tend to support those use cases, as long as the hydrogen is “green” rather than derived from fossil fuels. Other possible applications are more controversial, however. For instance, power plant turbines could burn hydrogen instead of natural gas as a way of reducing CO2 emissions… “Major gas utilities also want to blend low-carbon hydrogen into the natural gas lines that provide building heat, along with biomethane and synthetic methane. That would allow utilities to repurpose their gas infrastructure, companies say. Green groups are often deeply critical of that concept, seeing it as a veiled attempt to preserve natural gas’s role in buildings.”
CLIMATE FINANCE
Reuters: BlackRock plans no big changes to ESG stance despite backlash
Simon Jessop, 12/19/22
“BlackRock plans no major changes to the way it engages with companies and votes on environmental and social issues in the year ahead, despite a backlash against its stance on climate change from some U.S. Republican politicians,” Reuters reports. “The world’s biggest asset manager, with oversees around $8 trillion for investors, has been challenged by some Republican lawmakers as it pushes companies to make changes as part of a global transition to a low-carbon economy. Among its most vocal critics has been oil-rich Texas, where officials last week confronted BlackRock executive Dalia Blass over the issue, including challenging its membership of a global group of money managers looking to cut portfolio emissions. Elsewhere, Florida said it plans to pull $2 billion in investments from BlackRock, which said the action put politics above investor interest. BlackRock, meanwhile, also faces pressure from campaigners and others to drive quicker change by using its voting power to force boards to act to reduce carbon emissions. The fund giant is also facing a campaign by activist investor Bluebell Capital Partners to oust Chief Executive Larry Fink, in part because of its ESG efforts. Against that backdrop, BlackRock said in an annual update on its stewardship policies, which guide talks with boards ahead of shareholder meetings, that it had only made a “few changes”...“As a result, we do not anticipate material changes in our voting, and much of our engagement with companies will be continuing the dialogue on material risks and opportunities that we had in 2022,” it said.
Motley Fool: Oilsands Producers: Up to 100% of Free Cash Flow Will Go to Investors
Christopher Liew, 12/19/22
“If you have investments in energy stocks in 2022, particularly Canadian Natural Resources (TSX:CNQ) and Cenovus Energy (TSX:CVE), don’t sell them. The cash-rich oilsands producers have returned 50% of their free cash flow (FCF) to investors this year but promised to return up to 100% next year,” the Motley Fool reports. “The pledge, however, hinges on hitting net debt targets of $8 billion and $4 billion, respectively. According to industry analysts, the plan to hit these milestones and enrich shareholders is achievable. Because of their ability to generate ample cash, BMO Capital Markets analysts say it could happen by year-end 2023… “Canadian Natural still had an FCF of approximately $1.7 billion after paying $2.5 billion in dividends in Q3 2022. In the nine months that ended September 30, 2022, net earnings climbed 83.6% year over year to $9.4 billion. The Board also approved a 13% hike to CNQ’s quarterly dividend… “CVE investors enjoy a 63.2% year-to-date gain ($24.86 per share) in addition to a modest 1.91% dividend. In Q3 2022, cash from operating activities and free funds flow rose 91% and 23% to $4 billion and $2 billion versus Q3 2021, respectively. The company spent $659 million on share buybacks and paid $219 million in variable dividends… “Large-cap stocks Canadian Natural and Cenovus Energy are founding members of the Pathways Alliance. In addition to the promise to enrich investors, these oilsands producers aim to reduce gas emissions by 40% from 2020 to 2035.”
OPINION
Norfolk Daily News: Keeping conversation going during disputes rarely is a bad thing
Editorial Board, 12/19/22
“Many things related to infrastructure — such as pipelines — can be worked out by talking, answering questions and keeping communication open,” the Norfolk Daily News Editorial Board writes. “Infrastructure is a challenging and tricky business, but it’s not impossible.” That comment was offered this month by Rob Latimer of Summit Carbon Solutions, which is continuing to work toward acquiring land easements for a carbon sequestration pipeline in five states, including Nebraska and several Northeast and North Central Nebraska counties, including Madison County… “After his presentation, he spent more than 10 minutes taking comments and getting questions from two landowners. One of the landowners said he has concerns, including that there would be a lifetime easement on the ground being sought by the Ames, Iowa, company. He also questioned who the investors are backing the pipeline and getting the tax credits?.. “There’s a lot at stake here for everyone beyond the companies and landowners. There’s additional revenue for the county from property taxes and carbon capture from many of the state’s ethanol plants, helping to ensure that the industry remains viable into the future… “There remains to be some fair questions that need to be addressed… “Will these pipelines be sustainable if the federal tax credits dry up? If climate change is such a big threat, why wouldn’t we want carbon sequestration proposals like those offered by Summit and Navigator to be successful, especially in rural states that are dependent on agriculture?”
The Hill: Natural gas and permitting reform are critical to a clean energy future
Chad Zamarin is chair of the board for the Interstate Natural Gas Association of America and senior vice president of corporate strategic development for The Williams Companies, Inc., 12/17/22
“When charting our energy future, it’s critical to consider how past successes can be replicated to help us meet our energy, security, climate, and reliability goals. Natural gas must be part of a low-carbon energy future, and to serve growing end-user demand, both at home and abroad, more pipeline infrastructure will be needed,” Chad Zamarin writes for The Hill. “As chair of the Interstate Natural Gas Association of America (INGAA), and Senior Vice President of Corporate Strategic Development for The Williams Companies, Inc., I am keenly aware of the rhetoric used to paint natural gas and its infrastructure as obsolete and environmentally detrimental — but I am also keenly aware that rhetoric is false. In fact, over the course of the past decade, natural gas and its infrastructure have fundamentally reshaped the global energy landscape and enabled significant emissions reductions, both in the U.S. and around the world… “In many regions, natural gas is already used to complement the deployment of renewable sources of energy and provides an on-demand fuel source that can easily be ramped up or down. Natural gas demand will become even more critical to ensuring electric reliability in the coming years as the U.S. increases its adoption of renewables… “INGAA released a set of climate commitments last year that outline the membership’s dedication to reaching net-zero GHG emissions from natural gas transmission and storage operations by no later than 2050… “But make no mistake — if we cannot reform energy permitting processes in this country, we will see the benefits of this valuable fuel disappear. At present, many of our existing pipelines in the U.S. are running at capacity. Additional takeaway capacity is needed to help move natural gas from where it is produced to where it is consumed quickly, safely, and affordably, and will provide the opportunity to move future fuel sources, such as hydrogen and carbon dioxide. New pipeline infrastructure is critical to advancing the energy and climate progress made over the past decade. But to build that infrastructure, we need a clear, consistent permitting process. Today, it can take several years for a new pipeline project to receive the necessary state and federal permits to begin construction. This has a chilling effect on investment in new pipelines, raising costs for consumers and slowing our progress to provide natural gas to end users, including right here in the United States… “Natural gas is a fuel of the future, not just in America, but across the globe.”