EXTRACTED: Daily News Clips 12/9/21
PIPELINE NEWS
The Narwhal: Coastal GasLink could face million-dollar fines for repeated environmental infractions
Clinton Herald: Pipeline project pitched
Associated Press: California pipeline’s leak detection system was not fully working
West Coast Environmental Law: With more delays from BC floods, it’s time to rethink the Trans Mountain Expansion Project
Energy News Network: Meet a clean water activist fighting to protect Virginia streams from the Mountain Valley Pipeline
Reuters: Enterprise Products could repurpose pipelines for carbon projects -executive
Natural Gas Intelligence: Enbridge Plans Valley Crossing Expansion — If Texas LNG Brownsville Moves Forward
Reuters: Magellan exploring options for its Permian Longhorn crude pipe
Reuters: Permian shale producers warn of natural gas takeaway constraints
Press release: Pipeline Transportation Market Is Expected to Reach $34.8 Billion by 2030
WASHINGTON UPDATES
E&E News: Biden orders federal government to go carbon neutral
E&E News: Manchin eyes ‘good adjustments’ to methane fee
STATE UPDATES
E&E News: Va. governor-elect vows to exit cap-and-trade program
EXTRACTION
Reuters: At oil conference, low-carbon proposals steer clear of customer emissions
Reuters: Hess CEO says U.S. oil output to plateau by 2023
Bloomberg: Peak Oil Demand Is Coming But Not So Soon
Wall Street Journal: U.S. Boosted Oil and Food Exports in October, as the Trade Deficit Narrowed
Houston Chronicle: Big Oil says carbon capture is critical to meet net-zero goal
Reuters: Top-emitting Canada oil sands site gets government relief from pollution payments
Canadian Press: Politicians raise concerns about carbon pricing benefits given to oil sands companies
JWN Energy: Suncor CEO shines spotlight on oilsands partnership, need for collaboration to cut GHG emissions
Reuters: Cenovus Energy to boost capital spending on oilsands projects in 2022
Pro Publica: A Massive Oil Spill Helped One Billionaire Avoid Paying Income Tax for 14 Years
E&E News: Scientists say humans can move CO2 from air to oceans
CLIMATE FINANCE
Bloomberg: BlackRock Co-Leads $15.5 Billion Aramco Gas Pipelines Deal
Common Dreams: What Can Individual Bank Customers Do for Climate Justice? Unite
Daily Amherst Gazette: Environmental protesters target Amherst banks: ‘The money pipeline’
OPINION
Roanoke Times: Francis: Have Virginia regulators learned from their pipeline past?
NorthJersey.com: When feds fail, Gov. Phil Murphy must stop fossil fuel expansion | Opinion
Native News Online: Remembering Standing Rock Five Years Later: Importance of Indigenous Journalism
OilPrice.com: World Leaders Have To Face The Truth About Oil Demand
Center for American Progress: State Budgets Tied to Fossil Fuels Are Slowing the Energy Transition and Leaving Workers and Communities Behind
PIPELINE NEWS
The Narwhal: Coastal GasLink could face million-dollar fines for repeated environmental infractions
Matt Simmons, 12/8/21
“Jerry cans of gas in an overflowing pool of water. Oil barrels lying on the ground. A dumpster filled to the brim, its lid propped open and bags of garbage left out in bear country. Murky water flowing into wetlands, lakes, streams and rivers. These are scenes from the route of the Coastal GasLink pipeline, as documented by provincial inspectors,” The Narwhal reports. “All of this, including impacts to watercourses, their beds and banks not properly restored after workers cleared the land in preparation for laying pipe, violates the terms of its project approval — adding to a growing list of 11 non-compliance orders issued by B.C.’s environmental assessment office since construction on the project began in 2019, including three new orders issued in November. Collectively, the enforcement orders reveal a pattern of Coastal GasLink failing to abide by the rules of the pipeline project’s environmental permits, despite the repeated written warnings and orders… “The inspectors recommended an administrative penalty, which could mean daily fines of up to $750,000 for every day infractions are not addressed, according to the Ministry of Environment and Climate Change Strategy. In the coming weeks, the ministry will determine whether a penalty is necessary — or if additional information is needed — and then give Coastal GasLink another chance to respond to its findings and any proposed penalty.” “...While Coastal GasLink, owned by TC Energy, largely admitted to errors in responses to the inspections throughout the report, it also disputed whether it needed to do everything outlined by inspectors, arguing that some of it was “optional” and not mandatory. “As willow staking is an optional mitigation intended to help promote new growth along a reclaimed watercourse bank, Coastal GasLink argues that any use of willow staking (whether it adheres to the typical guidance or not) is more beneficial than no willow staking,” the company said in response to the inspectors’ findings.”
Clinton Herald: Pipeline project pitched
Charlene Bielema, 12/7/21
“Clinton County landowners Tuesday got their first glimpse of plans for a proposed pipeline that would slice through Iowa, the entire length of Clinton County and into southern Illinois, where carbon dioxide captured from industrial sites along the way would be permanently stored,” the Clinton Herald reports. “...Navigator officials told the hundreds of residents in attendance about the project known as Heartland Greenway, and how the company would collaborate with those living along the proposed pipeline’s path to obtain land… “A map with the proposed corridor has been released by Navigator, but its officials say a map detailing the specific parcels of land will not be available until the middle of next year. Landowners have been mailed informational packets and will be receiving telephone calls from right of way agents/company representatives, who are responsible for answering all landowner questions, gathering and accounting for information specific to each landowner, tenant and tract, and will seek voluntary survey permissions. Notification surveys will be mailed and surveys conducted in a manner to avoid and minimize impacts, to repair, replace, or compensate for damages, according to Navigator. The process also utilizes a detailed market study to make easement offers based on regional, county, and township market values and account for unique landowner and tenant circumstances.”
Associated Press: California pipeline’s leak detection system was not fully working
BY BRIAN MELLEY AND MATTHEW BROWN, 12/8/21
“The ruptured offshore pipeline that spilled tens of thousands of gallons of crude oil off the Southern California coast this fall did not have a fully functioning leak detection system at the time, the Associated Press reports. “The report was compiled by pipeline operator, Beta Offshore, a subsidiary of Houston-based Amplify Energy, and filed with federal regulators. It reveals Amplify is investigating whether personnel or control room issues contributed to the accident but does not explain what was wrong with the detection system… “But experts say that a properly functioning leak detection system might have been able to catch that things were amiss before an oil sheen spotted on the surface led to the leak’s discovery. “The fact that they did not have the leak detection system working is surprising,” University of Houston pipeline expert Ramanan Krishnamoorti told AP, noting that the company’s accounting of the accident appeared inconsistent. “For experienced hands at this, when you’ve got a leak like this, you’d have seen signatures of it with pressure drops and flow rates.” “...In its report, Beta said the pipeline’s leak detection system, while not fully functional, still helped to detect and confirm the leak. Federal investigators have previously said a low-pressure alarm went off at 2:30 a.m. on Oct. 2, indicating a possible failure. But in its report the company says the leak wasn’t discovered until 8 a.m. that day, by a third-party contractor who reported an offshore slick and notified personnel on a nearby Beta oil platform. The spill wasn’t reported to authorities until more than an hour later… “The break in the pipe that runs along the sea floor 100 feet underwater was less than one-hundredth of an inch wide and more than 20 inches long, the report said. That means the line could have been leaking for hours or days, according to Krishnamoorti and a second expert, pipeline accident consultant Richard Kuprewicz.”
West Coast Environmental Law: With more delays from BC floods, it’s time to rethink the Trans Mountain Expansion Project
12/7/21
“The catastrophic flooding in British Columbia will be the most costly climate disaster in Canadian history,” West Coast Environmental Law reports. “...At a time when the human and financial costs of climate change are in such stark relief, it is hard to believe that our federal government is still talking about expanding oil pipeline infrastructure. But if the climate impacts of enabling oilsands expansion aren’t enough, skyrocketing costs, exacerbated by the floods and wildfires themselves, should cause them to pause. Because of the flooding and mudslides, Trans Mountain shut down its existing pipeline on November 14, and it remained closed until December 5. Trans Mountain’s work has understandably been focused on assessing the condition of the 70-year-old pipeline, which was exposed in many areas due to the floods and landslides. The BC government introduced gasoline rationing in response to the shut down. The shut down caused a lot of confusion and misrepresentation about the original Trans Mountain Pipeline (TMPL) and the Trans Mountain Expansion Project (TMX). It is important to note that the Trans Mountain Expansion (TMX) project would not have alleviated the current gas supply situation... “Secondly, TMX has always and only been about the export of diluted bitumen, and not about supplying fuel to BC… “Indeed, the floods should be a catalyst to accelerate the shift away from a dependence on fossil fuels towards renewable resources with distributed generation, requiring less linear infrastructure that makes us all more vulnerable to catastrophes. This is especially true in light of the inevitable delays and cost increases to the expansion project caused by the floods.”
Energy News Network: Meet a clean water activist fighting to protect Virginia streams from the Mountain Valley Pipeline
Elizabeth McGowan, 12/8/21
“The quest for approval of the Mountain Valley Pipeline has proved to be so herky-jerky over the past seven years that even diligent watchdogs need a spreadsheet to stay on top of each layered zig and zag,” Energy News Network reports. “One such dogged individual is David Sligh, conservation director for the nonprofit Wild Virginia… “Sligh will be one of several speakers at a pipeline protest scheduled from 1-4 p.m. on Dec. 11 at Byrd Park in Richmond. The Rev. William J. Barber II, chair of the Poor People’s Campaign, will deliver the keynote address at the event organized by the Violation Vigil Project. It’s intentionally set to take place three days before the Virginia Water Control Board meets — and likely votes — to grant or deny a Clean Water Act permit for the natural gas pipeline… “He’s deeply aware that pipeline construction has already compromised the delicate karst topography, formed by limestone and other soluble rocks. The 107-mile stretch of the pipeline’s path in Virginia is characterized by steep slopes and underground sinkholes, caves, aquifers, and streams. Sligh finds it remarkable that so many Virginians are equally passionate about those landscapes. “In my long involvement in these fronts, I’ve never seen so many people who have stayed engaged with an issue for so long,” Sligh told ENN. “Now it’s time for the water control board to recognize they didn’t have the full story at first. They need to incorporate that new information into their next decision.”
Reuters: Enterprise Products could repurpose pipelines for carbon projects -executive
By Liz Hampton, 12/8/21
“Pipeline operator Enterprise Products Partners could repurpose some of its vast U.S. network of energy pipelines for carbon capture and sequestration projects, co-Chief Executive Jim Teague said,” Reuters reports. "We're not going to do it for the hell of it. There has to be a business there," Teague said during remarks at the World Petroleum Congress on Wednesday… “Major oil companies including Exxon Mobil and Occidental Petroleum view carbon capture and sequestration as an emerging market opportunity and that could lower their carbon emissions. Teague, speaking at a panel with Charif Souki, chairman of liquefied natural gas development firm Tellurian, said one issue with repurposing its oil and gas pipelines for such projects is lack of transparency in carbon pricing… “Both men stressed the role of oil and gas in alleviating poverty and admonished policy decisions being floated by U.S. lawmakers, including reimposing a ban on exporting U.S. crude oil, which they said could hurt global energy markets.”
Natural Gas Intelligence: Enbridge Plans Valley Crossing Expansion — If Texas LNG Brownsville Moves Forward
GORDON JAREMKO, 12/8/21
“Enbridge Inc. has set a 2022 budget of C$1.1 billion ($880 million) to expand “newly sanctioned growth projects” for natural gas, oil and power generation operations in Canada, the United States and in Europe, President Al Monaco said Tuesday,” Natural Gas Intelligence reports. “During the annual investor day, Monaco and the management team detailed initiatives through 2024 to expand infrastructure and fund the emerging low-carbon business… “A C$500 million ($400 million) commitment to expand capacity on the Valley Crossing Pipeline LLC in South Texas topped the growth agenda outlined during the annual investor day presentation in Toronto. The 2.6 Bcf/d Valley Crossing system expansion would depend on whether a liquefied natural gas (LNG) export project in deep South Texas is sanctioned. Valley Crossing began operations in late 2018, with a cross-border connection in the Gulf of Mexico to Mexico’s Sur de Texas-Tuxpan. As proposed, Enbridge’s expansion would enable up to 0.72 Bcf/d to be transported to Texas LNG Brownsville LLC, a terminal that would be sited near the border in South Texas… “Meanwhile, Enbridge also is seeing potential gas demand growth on the Pacific coast of Canada. Export projects including Woodfibre LNG, plus growing Canadian gas demand, create the potential for a C$2.5 billion ($2 billion) expansion of the Westcoast pipeline in British Columbia, according to the company.”
Reuters: Magellan exploring options for its Permian Longhorn crude pipe
By Arathy Somasekhar, 12/8/21
“Magellan Midstream Partners LP (MMP.N) is evaluating alternative uses for its Longhorn crude pipeline from Texas's Permian Basin, including converting it to carry other commodities like natural gas or refined products, the pipeline and storage company said on Wednesday,” Reuters reports. “Pipeline operators' shipping volumes have dipped due to lower production, forcing them to reduce rates to attract barrels to their pipelines. The COVID-19 pandemic slashed energy demand on the heels of a construction spree that added several build pipelines to carry crude out of the Permian, the top U.S. shale field… “He added that he expects to see slow but steady growth over the next few years in Permian production, which should match the current pipeline infrastructure carrying oil out of the basin by 2024 or 2025.”
Reuters: Permian shale producers warn of natural gas takeaway constraints
By Liz Hampton, 12/7/21
“U.S. oil and gas producers Diamondback Energy Inc (FANG.O) and ConocoPhillips (COP.N) said on Tuesday the top U.S. shale field will face natural gas pipeline constraints as production grows and companies strive to reduce flaring,” Reuters reports. “While other U.S. oilfields are seeing production plateau, the nation's largest in the Permian Basin in west Texas and New Mexico is anticipated to continue to grow because of its low cost of output… “At the same time, operators are under pressure by investors and government regulators to reduce the flaring of excess natural gas, they said. Gas is less lucrative than oil and producers will flare, or burn it off, to get more oil. "You don’t have a seat at the table today if you don’t have very aggressive environmental objectives," Travis Stice, CEO of Permian producer Diamondback Energy, told Reuters, referring to investor concerns about emissions.
Press release: Pipeline Transportation Market Is Expected to Reach $34.8 Billion by 2030
12/9/21
“According to the report published by Allied Market Research, the global pipeline transportation market was estimated at $16.3 billion in 2020 and is expected to hit $34.8 billion by 2030, registering a CAGR of 7.9% from 2021 to 2030. The report provides an in-depth analysis of the top investment pockets, top winning strategies, drivers & opportunities, market size & estimations, competitive scenario, and varying market trends. Increase in demand for oil & gas, rise in the production of offshore resources, and surge in demand for cost efficient transportation system for chemicals and other liquids drive the growth of the global pipeline transportation market. On the other hand, presence of intrusion and leakage detection during transportation impede the growth to some extent. However, emerging technologies to overcome pipeline transportation are expected to pave the way for lucrative opportunities in the industry.”
WASHINGTON UPDATES
E&E News: Biden orders federal government to go carbon neutral
By Kelsey Brugger, 12/8/21
“President Biden signed an executive order today that would compel the U.S. government to be “net-zero” by 2050 and have a zero-emissions vehicle fleet within 13 years,” E&E News reports. “It directs the government to reduce its greenhouse gas releases by 65 percent by 2030 and also make sure facilities are powered with no carbon energy. That will mean greening 300,000 buildings, 600,000 cars and trucks, and its $650 billion yearly purchasing power. The scope of the plan, the order says, should catalyze the development of at least 10 gigawatts of American clean energy by 2030. “By transforming how the federal government builds, buys, and manages its assets and operations, the federal government will support the growth of America’s clean energy and clean technology industries, while accelerating America’s progress toward achieving a carbon pollution-free electricity sector by 2035,” the White House said in a release. In addition, the order directs agencies to buy 100 percent “light duty” vehicles within five years.”
E&E News: Manchin eyes ‘good adjustments’ to methane fee
By Nick Sobczyk, George Cahlink, Emma Dumain, 12/9/21
“Senate Democrats are continuing to negotiate changes to the proposed methane fee to satisfy Sen. Joe Manchin (D-W.Va.) and other moderates, complicating their push to wrap up a procedural review and finish their climate and social spending package by Christmas,” E&E News reports. “...Manchin, who chairs the Senate Energy and Natural Resources Committee, said yesterday that Democrats had “made some good adjustments” to the policy in response to his concerns about overlap between the fee and the Biden administration’s newly proposed methane regulations. “If they’re basically complying with the regulations, then you shouldn’t be subject to a fee,” Manchin told reporters yesterday. “So we’re talking about different things like that.” Those comments reflect a debate that’s been raging behind closed doors for months but are further indication that Manchin is not fully satisfied with the compromise version of the provision Democrats struck in October.”
STATE UPDATES
E&E News: Va. governor-elect vows to exit cap-and-trade program
By Miranda Willson, 12/9/21
“Virginia Gov.-elect Glenn Youngkin said he intends to remove the state from a regional carbon emissions trading program, a significant blow to climate policy advocates in the South,” E&E News reports. “Calling the Regional Greenhouse Gas Initiative a "carbon tax," the Republican reportedly announced his aim to take Virginia out of the multistate program at an event this week in the Hampton Roads region of southern Virginia. "RGGI describes itself as a regional market for carbon, but it is really a carbon tax that is fully passed on to ratepayers," said the governor-elect in a statement tweeted out by his press secretary yesterday. "It’s a bad deal for Virginians. It’s a bad deal for Virginia businesses, and as Governor, I will withdraw us from RGGI by Executive Action." “...But Cale Jaffe, an associate professor at the University of Virginia School of Law, told E&E removing the state from the program will require a specific process under Virginia law that cannot be accomplished instantly through an executive order. "Respectfully, governors do not have the authority to undo regulations via executive order, and the Virginia Air Pollution Control Board has finalized the regulations that guide Virginia’s participation in RGGI and Virginia’s transition to a zero-carbon electricity grid," Jaffe told E&E.
EXTRACTION
Reuters: At oil conference, low-carbon proposals steer clear of customer emissions
By Sabrina Valle, 12/8/21
“As top oil and gas officials reconvene on Wednesday to discuss how they expect to respond to demands for more energy with lower greenhouse gas releases, one topic will be missing: Cutting emissions from customers' fuel use,” Reuters reports. “Exxon Mobil and Pioneer Natural Resources in sessions at this week's World Petroleum Congress pledged to slash greenhouse gas emissions from their production in the top U.S. shale field. Both are moving to electrify drilling operations and halt the routine burning of unwanted natural gas, two big contributors to greenhouse gases. What's missing so far was any talk of cutting emissions from customers' use of their fuel, commonly called Scope 3 emissions. Instead, congress panelists have used the stage to argue against moving too quickly from oil and gas to renewables. In the United States, oil companies have largely rejected any plan to set targets on Scope 3 emissions despite public pressures to do more. "It is more challenging for oil companies to deal with Scope 3," Keisuke Sadamori, a director at producing nations' group the International Energy Agency, told Reuters. Restraining customer emissions "is a shared responsibility" between consumers, companies and policy makers, he told Reuters. "There is a role for consumers to play as well," American Petroleum Institute (API) senior vice president of Policy, Economics and Regulatory Affairs Frank J. Macchiarola told Reuters. "And for consumers it is ultimately about choice."
Reuters: Hess CEO says U.S. oil output to plateau by 2023
Liz Hampton, 12/7/21
“U.S. oil output may recover to its pre-pandemic peak of around 13 million barrels per day (bpd) in the next few years and likely plateau by 2023 due to underinvestment, John Hess, chief executive of oil producer Hess Corp said on Tuesday,” Reuters reports. “The Permian Basin of west Texas and New Mexico, the largest U.S. oilfield, will drive output growth in the coming years, Hess said at an energy conference, adding that other shale oil areas, like the Bakken in North Dakota, have hit a plateau. Investment is the greatest challenge facing the oil and gas industry, he said… “Hess also expressed concern about a potential reinstatement of a ban on U.S. crude oil exports, an idea floated by lawmakers and members of the Biden administration in response to higher fuel prices. Such a policy would be ill conceived and hurt consumers, he said.”
Bloomberg: Peak Oil Demand Is Coming But Not So Soon
Nathaniel Bullard, 12/9/21
“Electric passenger vehicle sales are on a tear. In the first quarter of 2010, 395 EVs were sold worldwide. Last quarter, more than 1.7 million were sold — of those, more than 935,000 sold in Asia,” Bloomberg reports. “Earlier this year, BloombergNEF research found that EVs of all types, including buses and 2- and 3-wheelers, were displacing more than a million barrels of oil demand per day – and that was analysis done before this year’s surge in EV sales. By the middle of the century, oil demand could be 21 million barrels less per day thanks to EVs, compared to an entirely internal combustion engine global vehicle fleet. When, then, might oil demand peak?.. “In June of 2019, a fifth of those surveyed said that oil demand would peak as recently as February of this year, more than a third of investors said that demand would peak in just a few years, by 2025. In the first four surveys, the majority of respondents said that oil demand would peak within this decade. That is, until Bloomberg Intelligence’s most recent survey last month — in which only 2% of investors responding said that oil demand would peak before 2025, and fewer than 40% said that it would peak before the end of the decade… “For now, investors still see a demand peak coming, just not quite so soon.”
Wall Street Journal: U.S. Boosted Oil and Food Exports in October, as the Trade Deficit Narrowed
Josh Zumbrun and Anthony DeBarros, 12/7/21
“The U.S. trade deficit narrowed sharply in October as an increase in exports of U.S. energy and agricultural commodities outpaced growth in imports, which were restrained by a backlog at U.S. ports that month,” the Wall Street Journal reports. “...Crude-oil exports increased by $1.2 billion, reflecting U.S. refineries that came back online in October after being partially shutdown in September after Hurricane Ida struck Louisiana… “Automobile exports, which had been restrained in recent months, climbed $1.5 billion. Many automakers had idled U.S. factories in September as they contended with a shortage of the chips needed for vehicles.”
Houston Chronicle: Big Oil says carbon capture is critical to meet net-zero goal
Paul Takahashi, 12/9/21
“Oil executives at the World Petroleum Congress on Wednesday outlined their case for carbon capture as a key way to reduce greenhouse gas emissions from the industry and keep fossil fuels viable in a low-carbon future,” the Houston Chronicle reports. “The decades-old technology, which captures carbon dioxide from the atmosphere or industrial operations and buries it underground, could help oil producers and carbon-intensive industries such as cement, steel and petrochemicals eliminate emissions from their operations. The International Energy Agency, the United Nations’ Intergovernmental Panel on Climate Change and academics from Columbia University have said carbon capture is critical to help the world meet its net-zero emissions target by 2050. “Carbon capture is one of the few proven technologies that could enable these hard-to-decarbonize sectors to decarbonize,” Joe Blommaert, president of Exxon Mobil’s Low Carbon Solutions business, told the Chronicle. “Renewable and alternative power sources are very important, but they can only address a portion of emissions associated with some of these industrial processes.” Oil companies, including Exxon and Houston-based Occidental Petroleum, are investing in carbon capture projects as public and investor pressures mount over climate change. While many European oil majors are responding to climate risks by shifting investments from fossil fuels to wind and solar power, American oil giants are investing in carbon capture and storage facilities in the hope of gaining public approval to keep extracting fossil fuels.”
Reuters: Top-emitting Canada oil sands site gets government relief from pollution payments
By Rod Nickel, 12/8/21
“For three straight years, Alberta's government granted Canada's most emissions-intense oil sands facility reductions in payments that polluters are required to make for generating higher emissions than most of the industry, a government document shows,” Reuters reports. “From 2018 to 2020, Alberta lowered Canadian Natural Resources Ltd's (CNQ.TO) (CNRL) costs for its oil-producing Peace River site to comply with provincial emissions requirements. Peace River's per-barrel emissions are triple that of the already-high oil sands average. CNRL, Canada's biggest oil producer, which made C$2.1 billion ($1.66 billion) adjusted profit in the third quarter, is one of six companies to receive financial relief under Alberta's compliance cost containment program, which launched in 2018. Alberta requires high-emitting facilities that pollute more than the industry benchmark to comply, either by buying emissions credits or offsets from better-performing facilities, or by paying into a government fund at the going rate for carbon emissions, currently C$40 per tonne. The province's cost containment program, however, eases the financial pain for facilities whose compliance costs are greater than 3% of their sales or more than 10% of their profits, to prevent "economic hardship." “...Countries that produce fossil fuels face the challenge of cutting emissions without damaging their economies. But Alberta's policies are "particularly egregious" for prolonging the life of high-emitting facilities, Dale Marshall, national climate manager at Environmental Defence, told Reuters.
Canadian Press: Politicians raise concerns about carbon pricing benefits given to oil sands companies
BOB WEBER, 12/8/21
“Federal and Alberta Opposition politicians want the province to be more transparent about a government program supporting profitable oil sands and other energy companies that say carbon pricing hurts their competitiveness,” the Canadian Press reports. “We can only make progress on climate change if industrial emitters are paying their fair share,” Alberta New Democrat environment critic Marlin Schmidt told CP… “The program allows successful applicants to meet reduction targets through a greater emphasis on offsets rather than absolute reductions. It could also allow them to apply for emissions reduction grants or simply emit more carbon… “The document shows Canadian Natural Resources Limited successfully applied five times under the program between 2018 and 2020, the only company to benefit in every year. The company declared more than $2 billion in profits in the third quarter of 2021… “The document contains no information on the size or nature of the benefits provided – a lack that damages the credibility of the Alberta government’s entire carbon pricing system, Schmidt told CP… “Federal Environment Minister Steven Guilbeault told CP his office is aware of the document and is looking into how the program was used to ensure it meets federal requirements on carbon pricing. “We expect everyone to follow the rules and regulations,” he told CP. “If they don’t, of course there will be consequences.”
JWN Energy: Suncor CEO shines spotlight on oilsands partnership, need for collaboration to cut GHG emissions
Crystal Rhyno, 12/8/21
“An “unprecedented global collaboration” like the Oil Sands Pathways to Net Zero initiative is just the type of partnership needed to drive down emissions, says Suncor Energy Inc.’s chief executive,” JWN Energy reports. “I think Canada will be a long-term provider of oil to the world because we are going to solve this and figure this out,” said Mark Little, president and CEO of Suncor. “And we have this unprecedented collaboration to do it.” Little made the remarks Tuesday during a plenary discussion on shaping the energy future at the World Petroleum Congress in Houston… “Moreover, oil use is not going away because it is so pervasive in everyday uses from cellphones to EVs, added Little… “The Oil Sands Pathways to Net Zero initiative proposes a massive carbon capture, utilization and storage (CCUS) scheme as its “foundational project,” along with other measures to reduce emissions, including process improvements, electrification and fuel substitution, energy efficiency, and emerging technologies and offsets… “We have the ability to deploy billions and billions of dollars, and we have technology and all these different things,” said Little. “For us, we think that the industry has to be part of the solution, not the problem associated with it. And we need to be able to harness this resource and figure out how to move forward. I think that’s [done through] collaboration, and it’s a collaboration not just within the industry, but also with the governments and with other stakeholders and NGOs and all of the various [stakeholders].”
Reuters: Cenovus Energy to boost capital spending on oilsands projects in 2022
12/8/21
“Cenovus Energy Inc. on Wednesday forecast slightly higher capital expenditure and production next year, as the Canadian company bets on a sustained recovery in energy prices with crude climbing over US$70 a barrel,” Reuters reports. “Canada’s oilsands are inching toward record production, as the country’s biggest producers squeeze more barrels out of existing assets, but they are still holding back on large spends despite oil prices at their highest in recent years. The Calgary-based firm forecast 2022 spending between $2.6 billion and $3 billion, higher than $2.3 billion to $2.7 billion expected in 2021. Cenovus plans to spend between $1.4 billion and $1.6 billion in the oilsands, with the increase from 2021 mainly related to additional sustaining capital investment directed towards assets where investment was lower in recent years. These include major planned turnarounds at Foster Creek and Christina Lake facilities. This company also intends to allocate as much as $250 million to complete the Superior Refinery rebuild in Wisconsin, and spend between $100 million to $150 million to complete the Terra Nova project off the coast of Newfoundland and Labrador, and Spruce Lake North thermal project in Saskatchewan, both of which are expected to start up in the fourth quarter of 2022.”
Pro Publica: A Massive Oil Spill Helped One Billionaire Avoid Paying Income Tax for 14 Years
Jesse Eisinger, Paul Kiel and Jeff Ernsthausen, 12/9/21
“After the Deepwater Horizon offshore drilling rig exploded in 2010, environmentalists surveying the damage in the Gulf of Mexico came upon a mystery. The water had oil slicks that, because of the currents, couldn’t have originated from the site of the notorious accident,” Pro Publica reports. “With the help of satellite imagery, they figured out that oil was leaking from a different spill, a six-year-old disaster the public knew almost nothing about. In September 2004, Hurricane Ivan had swept the legs out from under a 40-story oil-drilling platform operated by a company called Taylor Energy, causing a leak that continues to this day. It is the longest-running — and by one estimate, the largest — U.S. oil spill ever recorded, a contentious saga that prompted a recent “60 Minutes” segment. It’s been an environmental nightmare for the region — but a massive tax bonanza for Phyllis Taylor, the owner of Taylor Energy and the fallen rig. According to ProPublica’s analysis of a secret trove of tax data, from 2005 to 2018, Taylor took in some $444 million in income, most of it from wages, interest, dividends and capital gains, and didn’t pay a cent in federal income tax. That’s in significant measure because she was able to transform money her company was compelled to spend cleaning up the oil spill into a perfectly legal nine-figure tax write-off for herself. Taylor is part of a set of ultrawealthy Americans who manage to avoid federal income taxes for years on end by using their businesses or leisure interests to throw off enough deductions to offset the millions or even billions of dollars they make. We’ve nicknamed the group the biggest losers.”
E&E News: Scientists say humans can move CO2 from air to oceans
By John Fialka, 12/9/21
“Climbing concentrations of carbon dioxide make it likely that humans will have to move some gases from the atmosphere into the oceans to prevent crippling effects of climate change, the National Academies said in a major report released yesterday,” E&E News reports. “It came after months of deliberation among top U.S. scientists who concluded that global efforts to reduce emissions, even if successful, "may not be enough to stabilize the climate." The report identified six ways to capture and store carbon dioxide in the oceans, a controversial idea that the report said "will likely be needed." Potential methods include stimulating more plant growth in and around the oceans and manipulating ocean currents to draw CO2 deep underwater. The report by the National Academies of Sciences, Engineering and Medicine (NASEM) is cautiously written and points out that research for ocean-based CO2 reductions has only recently begun. It noted that “showstoppers” could be ahead, including prohibitive costs and legal conflicts.”
CLIMATE FINANCE
Bloomberg: BlackRock Co-Leads $15.5 Billion Aramco Gas Pipelines Deal
By Matthew Martin, 12/6/21
“A group co-led by BlackRock Inc. will invest $15.5 billion in Saudi Arabia’s natural-gas pipelines as the kingdom opens up more to foreign companies and looks to fund a huge increase in fossil-fuel production,” Bloomberg reports. “The consortium will buy a 49% stake in a new entity that holds 20-year leasing rights over pipelines carrying Saudi Aramco’s gas across the country. Hassana Investment Co., controlled by the Saudi government’s pension fund, will head the group alongside BlackRock Real Assets… “BlackRock’s investment comes even as Chief Executive Officer Larry Fink puts pressure on firms to boost environmental, social and governance, or ESG, standards. Gas is a cleaner fuel than crude oil but still contributes to heating the plant. The deal illustrates that even the most climate-progressive firms can’t ditch polluting industries entirely while the world is still years away from clean energy being able to replace them.”
Common Dreams: What Can Individual Bank Customers Do for Climate Justice? Unite.
SARAH LASOFF, 12/8/21
“For years now, climate activists have been campaigning hard on U.S. banks. They have shut down bank branches, disrupted Wall Street CEOs public speaking events, organized shareholder revolts and swamped bank executives with thousands of phone calls and millions of emails, demanding that they stop funding fossil fuels. But there is one major block of power that climate activists have yet to activate: bank customers,” Common Dreams reports. “Working with Stop the Money Pipeline, a coalition of nearly 200 organizations, I recently helped to launch a new campaign called Customers for Climate Justice. The goal is simple: support thousands of Chase, Wells Fargo, Bank of America, and Citibank customers in advocating for climate justice within their financial institutions. The first step that we’re asking customers to take is to sign-on to an open letter to their bank’s CEO asking them to stop financing fossil fuels and deforestation. In the two weeks after launching the campaign, over 6,000 customers signed on to our open letters. In the coming months, we plan to support customers in letting bank executives know about their concerns, setting up meetings with branch managers and financial advisors, and organizing other customers in their area.”
Daily Amherst Gazette: Environmental protesters target Amherst banks: ‘The money pipeline’
SCOTT MERZBACH, 12/8/21
“Over the summer, Felicia Mednick of Amherst allied with Indigenous tribes in Minnesota trying to fend off construction of a pipeline they say will compromise their water supply and cause other environmental degradation. Drawing on this experience, Mednick, a member of the local Mothers Out Front chapter, on Wednesday gathered with other protesters outside downtown Amherst banks to make the case against funding similar pipelines,” the Daily Amherst Gazette reports. “We’re asking the bank managers to tell their higher-ups that customers may pull their money out of the banks if they don’t change their investment strategies,” Mednick said. The hourlong Stop the Money Pipeline action was organized by Climate Action Now, Extinction Rebellion and the Amherst chapters of Mothers Out Front and Sunrise… “The banks were chosen for their involvement in financing Line 3, an oil pipeline owned by the Canadian multinational Enbridge, that runs more than 1,000 miles from Hardisty, in Alberta, Canada, to Superior, Wisconsin. “Collectively we are asking financial institutions to divest from fossil fuel pipelines,” said ChristeneDeJong of Amherst, a member of both Extinction Rebellion and Mothers Out Front.”
OPINION
Roanoke Times: Francis: Have Virginia regulators learned from their pipeline past?
Lee Francis serves as deputy director of the Virginia League of Conservation Voters, 12/7/21
“In the historic village of Newport in Giles County, instead of the normal welcome signs you see in rural Virginia, pointing you to local eateries, museums, and attractions, visitors are instead greeted with a different message: A full size billboard with bold type reminding them that they are “Entering the Pipeline Blast Zone,” Lee Francis writes for the Roanoke Times. “The cleared Mountain Valley Pipeline right-of-way runs slam through the middle of this small village, just a stone’s throw from peoples’ homes, churches, and small businesses. The “blast zone” referenced in the can’t-miss billboard refers to the area that would be incinerated from an explosion here — homes, buildings, and all their occupants included. In the next few weeks, state regulators have one last chance to reject this destructive, unnecessary, and dangerous project before the worst-case scenario looming over Newport ever has a chance to become reality… “In mid-December, the board will vote on whether to allow MVP to cross hundreds of Virginia waterways — a decision that federal decision-makers are awaiting to issue final permits allowing the pipeline to cross the Jefferson National Forest and to bore underneath larger waterways in its path. It’s worth noting that MVP has already run afoul of Virginia’s water protection laws more than 300 times, at some points racking up multiple violations per day… “The Air Board has already made the right call. We all will be watching with hope that our state’s Water Board instead makes the right decisions for our environment and for the citizens in this project’s path. I’m sure everyone who calls the village of Newport home will be watching as well.”
NorthJersey.com: When feds fail, Gov. Phil Murphy must stop fossil fuel expansion | Opinion
Matt Smith is the New Jersey State Director at Food & Water Watch. Julia Somers is the New Jersey Highlands Coalition Executive Director, 12/9/21
“As Hurricane Ida battered New Jersey in September with two to three inches of rain per hour — leaving 91 people dead, including 31 here in our state — staffers at an agency called the Federal Energy Regulatory Commission were reviewing proposals for new fossil fuel projects, all of which would contribute to the warming that is driving the climate crisis and supercharging storms like Ida,” Matt Smith and Julia Somers write for NorthJersey.com. “...FERC has approved 99% of applications for permits for gas industry pipelines and compressor stations, denying just two of these permits out of 500 applications since 1999… “Despite decades of scientific research providing evidence that burning fossil fuels is driving the climate crisis, FERC has been very slow to recognize these impacts when assessing new projects. In its recent analysis of the Tennessee Gas project, the agency wrote that it had not “identified a methodology to attribute discrete, quantifiable, physical effects on the environment resulting from the Project’s incremental contribution to GHGs [greenhouse gases].” That bizarre conclusion is music to the ears of the fossil fuel industry, which at least acknowledges on paper that burning more fossil fuels creates more fossil fuel pollution… “Because FERC is not performing its statutory duties, it’s up to the New Jersey Department of Environmental Protection to step in… “Gov. Phil Murphy has the power to stop this ill-fated project. Just weeks ago, he signed an executive order to cut greenhouse gas emissions in half by the end of this decade, an important goal if we want to avoid the most disastrous consequences of climate change. But we can only get there if we stop allowing new sources of fossil fuel pollution to be built.”
Native News Online: Remembering Standing Rock Five Years Later: Importance of Indigenous Journalism
BY LEVI RICKERT, 12/5/21
“Opinion. Five years ago, the first weekend of December, I was at Standing Rock covering the resistance to the Dakota Access pipeline for Native News Online. Bolstered by some 2,000 veterans who arrived to show support, the crowd swelled to an estimated 10,000 over the weekend. That Sunday was one of the most memorable days for me as an American Indian journalist,” Levi Rickert writes for Native News Online. “...Five years later, I reflect back on the cold wintry weekend at Standing Rock where I slept in a pickup truck bundled in sleeping bags and blankets. Waking up in the truck and looking out into the stillness of the night to see smoke rise into the winter’s sky from fires among tents, campers and teepees will remain in my mind as long as I live. Covering Indian Country as a Potawatomi man is gratifying and challenging. The challenges come in because of the constant need to fund the coverage. As publisher of Native News Online, I have come to understand the importance of the work of Native American journalists and the need to keep the fire going by raising money. Reflecting on Standing Rock, I also realize the best journalism—the best Standing Rock articles—came from Indigenous writers who told stories through the lens of tens of thousands Native Americans from over 300 tribes who gathered there to fight against big oil. “
OilPrice.com: World Leaders Have To Face The Truth About Oil Demand
By Irina Slav, 12/8/21
"Our products make the world run." This is what Chevron's chief executive Mike Wirth said at this week's World Petroleum Congress in Houston. The statement echoed a sentiment expressed by other oil executives attending the event—oil and gas are indispensable and will continue to be indispensable for the observable future and beyond it,” Irina Slav writes for OilPrice.com. “This is not something that a lot of people want to hear. It is certainly not what environmentalist organizations want to hear. It is certainly not what the Biden administration and the EU want to hear. Yet, it appears to reflect a hard reality… "I understand that publicly admitting that oil and gas will play an essential and significant role during the transition and beyond will be hard for some," said the chief executive of Aramco, Amin Nasser, also at the World Petroleum Congress. "But admitting this reality will be far easier than dealing with energy insecurity, rampant inflation and social unrest as the prices become intolerably high and seeing net zero commitments by countries start to unravel.” “...The premature shift to relying on wind and solar is leaving countries vulnerable to the weather and effectively increasing their dependence on fossil fuels. Perhaps the current crunch will teach some important lessons to those willing to learn.”
Center for American Progress: State Budgets Tied to Fossil Fuels Are Slowing the Energy Transition and Leaving Workers and Communities Behind
Mark Haggerty, 12/8/21
“Achieving America’s net-zero energy future and avoiding the worst impacts of climate change requires a rapid transition away from fossil fuels toward clean energy. But a significant source of state funding for important programs—including schools, public health, and infrastructure—relies on continued oil and natural gas extraction from federal lands. Simply put, direct payments from the federal government to states are higher when more oil and natural gas is extracted from public lands and waters, creating a perverse incentive to drill more,” Mark Haggerty writes for the Center for American Progress. “These payments are at odds with public policy objectives: The federal oil and gas program creates political opposition to climate policy and undermines efforts to build a more equitable economy that works for all Americans. Dependence on oil and gas to fund state budgets means the country can’t simply end production on public lands. Doing so would devastate communities whose economies and public revenues are tied to fossil fuel extraction. Short-term appropriations to transition budgets away from their reliance on fossil fuels are also not enough. Rather, the country needs structural and institutional transformation to invest in rural prosperity… “Congress must help the climate and just transition communities meet this challenge by embracing solutions to realign public revenue with climate and rural development goals. A key place to begin is ending federal revenue sharing that distributes half of onshore oil and gas revenue—$2 billion on average—directly into state budgets each year. This system exacerbates dependence on fossil fuels and directly undermines efforts to achieve climate goals.”