EXTRACTED: Daily News Clips 1/4/23
PIPELINE NEWS
Nebraska Examiner: TC Energy plans diversion around Keystone pipeline leak; critics seek more transparency
KCUR: The Keystone pipeline is back in business while the Kansas oil spill cleanup continues
Topeka Capital-Journal: Even as Keystone pipeline reopens, drone ban remains in effect over Kansas oil spill site
Fairbury Journal-News: Concerns About Transparency Over Keystone Pipeline Oil Spill
WIBW: Cleanup from Keystone Pipeline rupture in KS to continue at least through January
E&E News: Biden Forest Plan Seen As Win For Mountain Valley Pipeline
Madison Daily Reader: County landowners voice numerous concerns with pipeline project
The Courier: Bremer County works to establish pipeline ordinance
Great Lakes Echo: Ice makes oil spills harder to detect, easier to contain
World Pipelines: Williams to acquire MountainWest natural gas transmission and storage business
WASHINGTON UPDATES
E&E News: Senate Dem Agenda: Oversight, Permitting, Foreign Affairs
InsideEPA: CEQ Readies NEPA Climate Guide, Amid Queries On GHG ‘Significance’
STATE UPDATES
Colorado Public Radio: Suncor has shut down Colorado’s only refinery. That’s raising concerns about air quality and higher gas prices
Star Tribune: Husky oil refinery explosion 'could have been avoided,' feds say in final report
Associated Press: Minnesota Environmental Reviews Now Include Climate Impact
Alaska Beacon: Hotly debated federal Cook Inlet oil and gas lease sale draws only one bid
Dickinson Press: $500K grant will allow for research into natural gas conversion at Bakken oil fields
Sacramento Bee: As California pursues aggressive climate goals, what happens to its oil and gas workers?
EXTRACTION
Wall Street Journal: Exxon, Chevron Focus on Oil Projects in the Americas
Carlsbad Current-Argus: $4.8 billion Permian Basin oil and gas merger starts off 2023 with growth in fossil fuels
CLIMATE FINANCE
Reuters: JPMorgan, Citi among firms facing potential divestment by Kentucky over energy 'boycott'
Bloomberg: Green Lending Tops Fossil Fuel as Big Oil Gets Cash Elsewhere
TODAY IN GREENWASHING
WDAF: Keystone Pipeline clean-up advances, $7,500 going to Kansas county
Washington County News: TC Energy matching program now open to general public
OPINION
KIOW: Sunday Talk: Guth Opposes Carbon Pipeline Projects
Financial Post: Why the oilsands could be the 'last barrel standing' in North America
The Hill: 4 reasons to give up defending fossil fuels
PIPELINE NEWS
Nebraska Examiner: TC Energy plans diversion around Keystone pipeline leak; critics seek more transparency
PAUL HAMMEL, 1/3/23
“TC Energy, operator of the Keystone pipeline, announced plans Tuesday to build a temporary bypass around a pipeline spill on a Kansas creek to aid in the cleanup and reclamation of Mill Creek,” the Nebraska Examiner reports. “Meanwhile, two critics of the pipeline questioned why more details have not been provided about the total amount of the spill, the extent of the cleanup, and its cause… “TC Energy, formerly TransCanada, said flows in Mill Creek will be diverted upstream of containment dams built to hold back crude oil. The water, pumped through an above-ground bypass, will then rejoin the creek below the dams. But both Jane Kleeb, founder of Bold Nebraska, and Zach Pistoria, a lobbyist for the Sierra Club of Kansas, told the Examiner TC Energy hasn’t been completely transparent about several aspects of the repair and reclamation project. Pistoria told the Examiner that nearly a month after the spill, the cause is still not known, nor are the results of testing on the integrity of the pipe in that area. “There’s a lot more transparency and information that the company could provide,” he told the Examiner. “(But) I can’t blame them, they don’t want to show the ugly side of their business.” Kleeb repeated an earlier call for PHMSA to conduct a “detailed inspection” of the entire Keystone pipeline system, not just the pipe in the spill area., “It’s clear they used faulty, foreign steel during construction that is putting communities and water at risk,” Kleeb told the Examiner.
KCUR: The Keystone pipeline is back in business while the Kansas oil spill cleanup continues
Celia Llopis-Jepsen, 12/30/22
“Crude oil began flowing through the Keystone pipeline from Nebraska through Kansas to Oklahoma again this week,” KCUR reports. “For now, the U.S. Department of Transportation requires the pipeline segment to operate at a lower pressure than when it burst. The pressure must stay 20% lower than when the Keystone’s biggest-ever spill happened on Dec. 7 in north-central Kansas. The federal agency won’t disclose what the operating pressure was on Dec. 7. It told the Kansas News Service to file an open records request… “A Dec. 8 federal order required the eventual pipeline restart to ramp up gradually. That meant using “incremental pressure increases … with each increment to be held for at least 2 hours.” TC Energy also had to give local landowners and emergency response crews advance notice, the order from the Department of Transportation’s Pipeline and Hazardous Materials Safety Administration said. TC Energy won’t say what pressure level was in effect when the pipeline broke on Dec. 7. In 2017, the company received a federal greenlight to run sections of the Keystone at a higher pressure than is typically allowed, because the pipeline would use stronger steel… “The stuff that gushed out across several acres of farmland and into Mill Creek wasn’t conventional crude oil. It was diluted bitumen, also known as dilbit, and this poses extra challenges for environmental cleanup. Normal methods for cleaning oil spills in water rely on the fact that the oil floats. But dilbit sinks — a process that can start within days and makes tracking the stuff tricky… “TC Energy has said the oil spill is contained — with emergency dams and booms — to about four miles of Mill Creek, but Kansas environmental officials say benzene and other chemicals from the spill have shown up farther downstream. The chemicals won’t affect public drinking water, the state says, because they will become too diluted by river water before reaching areas that supply drinking water. However, the state says the chemicals pose a risk to wildlife that consume them through the food chain.”
Topeka Capital-Journal: Even as Keystone pipeline reopens, drone ban remains in effect over Kansas oil spill site
Andrew Bahl, 1/4/22
“A ban on media and other entities from flying drones near a major oil spill in north-central Kansas remains in effect, even as the operator of the Keystone pipeline reopened the affected segment last week,” the Topeka Capital-Journal reports. “That effectively prevents the public from seeing the full impact of the oil spill… “Cleanup at the spill site is ongoing, with TC Energy saying Tuesday they would temporarily divert Mill Creek "from a location upstream of the pipeline spill to downstream of the containment dams." “...It is unclear how long the drone no-fly zone will be in place. In the days immediately following the spill, drone footage was the lone way media could photograph and document events. Federal Aviation Administration records show the no-fly zone was renewed on Jan. 1 and that its latest iteration will expire on Saturday. It covers a 2-nautical-mile radius around the spill site. A nautical mile is slightly longer than a mile. When asked for comment, TC Energy defended the need for the no-fly zone and said the company is "committed to being transparent and to providing access to media when it is safe to do so," though it did not respond when asked when reporters might obtain access to the spill site. "Clearing the airspace remains critical for the safety and security of the pilots conducting ongoing monitoring as well as the working crew on the ground," the company said. "Crews are working around the clock on the incident and need to be distraction-free." "...It's their interest to keep this out of sight and out of mind," Zach Pistora, a lobbyist for the Kansas chapter of the Sierra Club, told the Journal… “The company has said it is spending $7,500 to purchase new radio equipment for Washington County emergency management officials and it has also started a giving program for the Washington County Hospital… “Officials have recovered at least five deceased mammals and over 100 dead fish, all of which have been turned over to the Kansas Department of Wildlife and Parks for assessment.”
Fairbury Journal-News: Concerns About Transparency Over Keystone Pipeline Oil Spill
Gordon Hopkins, 12/29/22
“Restricted airspace over the site of the oil spill into Mill Creek near Washington, Kansas, remains in place,” the Fairbury Journal-News reports. “The no-fly zone was set to expire on Tuesday, December 27, but has been extended once again, this time to Saturday, December 31. Expiration of the restricted airspace has been extended several times since a leak from the Keystone Pipeline first released an estimated 14,000 barrels, or 588,000 gallons, of crude oil on December 7, 2022. A number of early news reports featured photos and video taken from a drone flying over the site. As of now, the site remains off-limits to the public. FJN reached out to TC Energy, the company formerly known as TransCanada Corporation, and asked the reason for the restriction. A spoke person responded, “Clearing the airspace is critical for the safety and security of the pilots conducting ongoing monitoring as well as the working crew on the ground. Crews are working around the clock on the incident and need to be distraction-free.” When asked if the restriction is likely to be extended again, TC Energy said, “We will evaluate as we continue our response. Our focus continues to be the health and safety of onsite staff and personnel, the surrounding community, and mitigating risk to the environment.” Some public officials have expressed concern about the restricted airspace, such as Kansas State Representative Lindsay Vaughn, who recently said, “Third-party drones — if they’re not going to be allowed to monitor the site, then I think there has to be other ways that media or third parties can have greater information or access to what’s going on because that’s one of the best ways to hold all parties accountable for the best outcome possible.”
WIBW: Cleanup from Keystone Pipeline rupture in KS to continue at least through January
Melissa Brunner, 12/30/22
“Cleanup from the Keystone oil pipeline rupture in Washington Co., Kan. will continue at least through the end of January,” WIBW reports. “Three weeks after the break sent 14,000 barrels of oil flowing across pasture land south of the Nebraska border and into Mill Creek, the on-site response has grown from 300 personnel to more than 700 today. Kellen Ashford, spokesperson for the Environmental Protection Agency’s Region 7, said an exact timeline for completing the response and recover is hard to pinpoint. “(We’ll be there) for the foreseeable future, definitely through the end of January,” he said Friday in an interview with 13 NEWS. Ashford says pipeline owner TC Energy is working with their agency, plus local, state and federal agencies. The extreme cold slowed efforts somewhat. He said personnel who could so do worked from indoors, and mechanical excavators temporarily replaced the traditional oil skimmers and vacuum trucks, digging the frozen oil/water mixture from the creek and putting it into roll-off boxes. “That mechanically-recovered frozen oil/water mixture was sitting in these roll off boxes until it could thaw and then be put into frac tanks,” he said. As of Thursday night, the EPA reported just shy of 745,00 gallons of oil and water was removed from the creek. Ashford says there’s no evidence the freeze and thaw allowed any oil to escape their barriers. “The earthen underflow dams are still there, still doing their job containing the oil that was discharged,” he said… “Five landowners were directly affected by the spill, and another nine indirectly affected. The cause of the rupture remains under investigation.”
E&E News: Biden Forest Plan Seen As Win For Mountain Valley Pipeline
Carlos Anchondo, 1/3/23
“The Biden administration has released an environmental review setting conditions for the controversial Mountain Valley pipeline to cut through a national forest in Virginia, drawing pushback from environmental groups who say the plan threatens waterways, soil and endangered species,” E&E News reports. “In a 188-page draft supplemental environmental impact statement (SEIS), the Forest Service proposed amending its plan for the Jefferson National Forest so the 303-mile project can cross a 3.5-mile section in Virginia’s Giles and Montgomery counties… “In its review, the Forest Service outlined two scenarios — one where the pipeline would cut through the forest and a ‘no action’ one where it would not, creating a major obstacle for the project. While the agency did not formally endorse either approach, green groups interpreted the document as supporting the pipeline. ‘The draft SEIS strongly indicates that the Forest Service intends to amend the Jefferson National Forest plan to allow the pipeline to cross the forest,’ Ben Tettlebaum, a senior staff attorney at the Wilderness Society, told E&E. If the agency was strongly opposed to that move, ‘there would be language in here that would probably tip their hand in that direction. And that’s just not how it reads,’ he told E&E.
Madison Daily Reader: County landowners voice numerous concerns with pipeline project
ZAC ZWASCHKA, 12/29/22
“Ever since Summit Carbon Solutions (SCS) announced its plan to construct the largest carbon capture and storage project in the world, landowners across the five states involved (S.D., N.D., Neb., Minn. and Iowa) have banded together to voice their concerns for the project’s safety as well as its true motivation,” the Madison Daily Reader reports. “...Recently, SCS crossed the 50% mark for needed easement agreements, yet landowners like Madison’s Charlie Johnson don’t find this number particularly impressive. “They cite that as progress; I cite that as a major failure,” Johnson told the Reader. “If after 18 months you only have 50%, that’s not much of a success story to brag about.” A major concern of landowners like Johnson is the lack of regulations for carbon dioxide pipelines through the Pipeline and Hazardous Material Safety Administration (PHMSA), a subsection of the U.S. Department of Transportation… “Aaron and Charlie Johnson, cousins, have side-by-side farms in rural Madison. They rent the land from neighbor Betty Strom, another Lake County landowner against the proposed project. Strom said: “They [SCS] don’t care about the concerns of landowners. Pipelines leak. The shutoffs are 20 miles apart, the carbon dioxide is at 2,100 PSI and, with a rupture, most of the carbon dioxide will escape and form a low cloud.” “...All four landowners critiqued SCS’s process of acquiring easement agreements… “All four have joined the South Dakota Easement Team, a group designed to push back on eminent domain for private gain. They have also hired Brian Jorde of Domina Law for legal representation. Strom said that land agents have been far less persistent since this move. Brown, McPherson, Edmunds and Spink counties have also attempted legal action, issuing moratoriums to SCS to halt progress until regulations are more solidified. This was met with lawsuits from SCS, who said the moratoriums should be considered unenforceable. “They’re taking individuals like myself to court who’re trying to do the best for their community, and I find that unacceptable,” Aaron Johnson said.
The Courier: Bremer County works to establish pipeline ordinance
Andy Milone, 1/1/23
“A Bremer County ordinance regulating land use for carbon sequestration pipelines is now in the pipeline,” The Courier reports. “It has received a favorable recommendation from the Planning and Zoning Commission and could come before the Board of Supervisors for the first of three readings as soon as the end of January, according to Building & Zoning Administrator Lindsey Lambert. Bremer County is one of a handful of local governments working to restrict what can be built and where, but it will not prohibit pipeline construction all together. The zoning office and board of adjustment will have jurisdiction on whether a conditional use permit is granted. “This will allow the county to protect future land use and economic development,” Lambert told the Courier. “The county’s priorities are laser focused on that. “The ordinance will allow the county to preserve agricultural land but also ensure the ability of our small towns to continue to grow. It will preserve our tax base and future revenues. It will ensure that this new land use doesn’t interfere with existing land uses in our county.” “...The class of use known as “hazardous liquid pipelines” will be established and restrictions will focus on setback requirements. The “separation requirements” are “designed to further the goals and objectives of the county’s comprehensive zoning plan, including to protect public health and welfare, to preserve existing infrastructure and future development, and to maintain property values,” states the ordinance. They include minimum separation distances from schools, hospitals, churches, parks, animal feeding facility, electric power generating facilities, public wastewater treatment plants, private water supply wells and any occupied structures, to name a few. The permit also comes with a slew of emergency response and hazard mitigation planning requirements, including information that would aid in implementation. For instance, one requirement asks the company to provide “an estimate of the worst-case discharge of carbon dioxide released in metric tons and standard cubic feet from a rupture.” “...Lambert told the Courier it’s possible the county could pass the ordinance but then have it challenged in court. Summit Carbon Solutions filed lawsuits in November in Shelby and Story counties to block similar ordinances.” “We’ll see if the company will abide by our local ordinance,” she told the Courier.
Great Lakes Echo: Ice makes oil spills harder to detect, easier to contain
Cameryn Cass, 1/3/23
“What happens if oil spills under ice in freshwater?,” the Great Lakes Echo reports. “People imagine that the risk is greater with a spill under ice, but there’s actually a lot of cases in which it might be helped by ice,” Douglas Bessette, the lead author of a 2021 study in the Journal of Great Lakes Research that examined that problem, told the Echo… “It also surveyed the public to gauge their perception of risks posed by a petroleum pipeline that crosses under the Straits of Mackinac – a major shipping channel – located between Michigan’s Upper and Lower peninsulas. The ice can contain the oil, making for an easier cleanup – but it’s harder to detect, the researchers said… “Over half of the Michigan residents surveyed for the study reported that they were extremely concerned about an oil spill at the straits. Most preferred that the almost 70-year-old pipeline be shut down… “There are locations where even a small spill can have large consequences and can quickly go from something small to something large,” Doug McLaughlin, the executive director of the Kalamazoo River Watershed, told the Echo. In 2010 that watershed experienced one of the largest inland oil spills in American history when an Enbridge-operated pipeline spilled there… “For nearly five years after the Kalamazoo River oil spill, people stayed away from the river because they didn’t know what they’d find, Cheryl Vosburg, who helped with the river’s restoration and is now the executive director of the Michigan Water Environment Association, told the Echo. The river was closed for two years, and Enbridge spent over $1 billion cleaning it up.
World Pipelines: Williams to acquire MountainWest natural gas transmission and storage business
Sara Simper, 12/31/22
“Williams has announced that it has reached an agreement to acquire MountainWest Pipelines Holding Company from Southwest Gas Holdings, Inc., in a transaction including US$1.07 billion of cash and US$0.43 billion of assumed debt, for an enterprise value of US$1.5 billion,” World Pipelines reports. “MountainWest comprises roughly 2000 miles of interstate natural gas pipeline systems primarily located across Utah, Wyoming and Colorado, totalling approximately 8 billion ft3/d of transmission capacity. MountainWest also holds 56 billion ft3 of total storage capacity, including the Clay Basin underground storage reservoir, providing valuable service to western markets. The acquisition price represents an approximate 8x estimated 2023 EBITDA multiple. “Our natural gas focused strategy is anchored in having the right assets in the right places to serve our nation’s growing demand for clean, affordable, and abundant natural gas. MountainWest is complementary to our current footprint, providing us with infrastructure for natural gas deliveries across key demand markets, including into Salt Lake City,” said Alan Armstrong, Williams President and CEO. “We also see this acquisition as an opportunity to bring value to both Williams and MountainWest customers as we integrate business processes and systems, allowing us to potentially offer new flow paths for next generation natural gas that could create additional market optionality for our shippers.”
WASHINGTON UPDATES
E&E News: Senate Dem Agenda: Oversight, Permitting, Foreign Affairs
NICK SOBCZYK, JEREMY DILLON, 1/3/23
“Democrats hope to use their expanded Senate majority to push climate and energy policy this year, despite the looming chaos of a divided Congress,” E&E News reports. “While they have no hope of passing another massive bill like the Inflation Reduction Act, Senate Democrats will help dictate how the law’s gargantuan climate are implemented. They could also use their majority to blunt the impact of the coming oversight regime from the Republican House. ‘Implementation, foreign relations, permitting reform,’ Sen. Brian Schatz (D-Hawaii) told E&E, ticking off what he believes will be on Democrats’ climate agenda this year.”
InsideEPA: CEQ Readies NEPA Climate Guide, Amid Queries On GHG ‘Significance’
12/30/22
“The White House in the coming days is expected to release a long-awaited Council on Environmental Quality (CEQ) guidance addressing climate change issues under the National Environmental Policy Act (NEPA), amid questions about whether the guide will set project-level thresholds for ‘significant’ greenhouse gas emissions,” InsideEPA reports. “In addition, observers are closely watching whether the forthcoming guidance will require agencies to use the social cost of carbon (SCC) metric to monetize projects’ climate-related damages, after an Obama-era guide only encouraged use of the tool. The White House Office of Management & Budget (OMB) completed its review of the draft guidance Dec. 27, clearing the way for the document to be issued publicly, though it had not been released at press time… “The guidance stems from an early executive order from President Joe Biden directing CEQ to review, revise and update its 2016 final GHG NEPA guide.”
STATE UPDATES
Colorado Public Radio: Suncor has shut down Colorado’s only refinery. That’s raising concerns about air quality and higher gas prices
Sam Brasch, 12/29/22
“Colorado's only oil and gas refinery is offline and might not resume full operations until March, raising concerns about gas prices and local air quality after a series of recent incidents,” Colorado Public Radio reports. "...The inspection and repair of the damaged equipment [are] ongoing. Based on our current assessment, we anticipate a progressive restart of the facility with a return to full operations expected to be completed by late Q1 2023," the company wrote… “The shutdown will disrupt local gas and diesel resources. Grier Bailey, the executive director of the Colorado Wyoming Petroleum Marketers Association, told CPR Suncor supplies between 35 to 40 percent of all gasoline sold in Colorado. A company website notes the facility is also a primary source of asphalt and produces about a third of the jet fuel for Denver International Airport… “The problems at the Suncor facility appeared to begin during the recent extreme cold snap along the Front Range. In an emergency alert released December 20, the company said it had started to shut down part of the facility in response to the frigid weather. A few days later, the company said the shutdown process led to a fire that injured two employees on December 24. The employees were transported to a nearby hospital with burns. The company then responded to a second fire on Tuesday afternoon, which it said did not result in any further injuries. Those incidents led to air pollution releases into neighborhoods around the facility. After the initial shutdown, Leah Schleifer, a spokesperson with the Colorado Department of Public Health and the Environment, told CPR Suncor has reported a series of excess emission events, including releases of hydrogen sulfide, sulfur dioxide, visible smoke and an “opacity exceedance,” which is how the state refers to the release of dust or other visible particles.”
Star Tribune: Husky oil refinery explosion 'could have been avoided,' feds say in final report
Jana Hollingsworth, 1/3/23
“When the former Husky Superior oil refinery reopens this year under new management, it faces heightened scrutiny as regulators have said the accident that caused $550 million in damages and injured nearly 40 workers was avoidable,” the Star Tribune reports. “A final federal report on the 2018 Husky Energy refinery explosion in Superior, Wis., was released last week, and it details a slew of safety issues that led to the incident, along with recommendations for the new plant. The 200-page U.S. Chemical Safety and Hazard Investigation Board (CSB) report identifies six areas that show likely cause for the explosion, which resulted in the release of 39,000 pounds of flammable hydrocarbon vapor into the air. "This accident could have been avoided," board chair Steve Owens said in a statement. The spring morning explosion led to black, acrid plumes of smoke seen for miles as the refinery burned into the night. More than 2,500 residents in the city of 27,000 were evacuated along with businesses and schools, leaving roads gridlocked as people fled the city. In neighboring Duluth, officials told residents to shelter in place because of the smoke. The explosion occurred while the refinery was shutting down its fluid catalytic cracking unit for planned maintenance. The unit is a common piece of equipment at oil refineries used to refine crude oil into higher octane fuels… “Refineries with fluid catalytic cracking units should review the board's findings to prevent similar disasters during shutdowns and startups, Owens said in the statement. The report lays out several problems, some already shared since the incident: a lack of safeguards and industry guidance around its fluid catalytic cracking unit, outdated equipment that failed and issues with emergency preparedness.”
Associated Press: Minnesota Environmental Reviews Now Include Climate Impact
1/3/23
“Minnesota environmental regulators are now requiring developers to calculate projects’ effects on the climate,” the Associated Press reports. “The state’s environmental review process requires regulators to consider a project’s potential impact on the land, air, water and animals. Minnesota Public Radio reported that the state Environmental Quality Board voted Dec. 14 to amend the process to require developers to calculate how much carbon dioxide, methane and other greenhouse gases they’ll pump into the atmosphere and list methods they considered to reduce those emissions. ‘This is a really big deal for Minnesota,’ Amelia Vohs, regulatory attorney for the nonprofit Minnesota Center for Environmental Advocacy, which pushed for the change, told MPR. ‘We weren’t counting greenhouse gas emissions for projects before we permitted them before.’ “...Vohs told MPR she hopes that eventually the state will adopt requirements calling for developers to reduce emissions before earning permits.
Alaska Beacon: Hotly debated federal Cook Inlet oil and gas lease sale draws only one bid
YERETH ROSEN, 12/30/22
“A controversial auction for rights to drill for oil and gas in the federal waters of Alaska’s Cook Inlet drew only a single bid, according to results released on Friday,” the Alaska Beacon reports. “Hilcorp Alaska LLC, the dominant oil and gas operator in the Cook Inlet basin, submitted the sole bid in the lease sale held by the Department of the Interior’s Bureau of Ocean Energy Management. Nearly 1 million acres, broken into 193 blocks, had been offered in the auction, called Lease Sale 258. Hilcorp’s bid totaled $63,983, BOEM said… “Hilcorp also submitted the only six bids received in a special Alaska Division of Oil and Gas lease sale for state territory in Cook Inlet, according to results released Friday. That state sale, which offered 721 tracts spread over 2.8 million acres, was added to the division’s schedule to coincide with the federal lease sale. Hilcorp’s submitted bids totaled about $360,000, according to preliminary results. The federal lease sale, previously canceled, was held under Congressional mandate. It drew a lawsuit last week that seeks to overturn the decision to hold it… “The lawsuit filed on Dec. 21 in U.S. District Court in Anchorage alleges that environmental studies leading up to it were rushed and inadequate and that BOEM neglected to consider the required wide range of options. The lawsuit cites climate-warming greenhouse gas emissions, dangers for the endangered Cook Inlet beluga whale population and other negative impacts it says would result from the sale. The lawsuit remains active, Erik Grafe, an Earthjustice attorney who is representing some of the plaintiffs, told the Beacon. In a statement, he called the sale a “flop” and “good news for the climate and those who call Cook Inlet home, like the endangered beluga whale.
Dickinson Press: $500K grant will allow for research into natural gas conversion at Bakken oil fields
Joe Banish, 12/31/22
“A $500,000 grant from the Department of Energy will allow research into separating carbon and hydrogen from natural gas obtained at North Dakota’s oil wells,” the Dickinson Press reports. “The grant was awarded to the University of North Dakota's UND’s College of Engineering and Mines, in consultation with H Quest Vanguard, a Pittsburgh-based energy startup. The research will examine the efficacy of using a process called “microwave pyrolysis” to separate carbon and hydrogen from natural gas emitted at oil fields in the Bakken formation of western North Dakota. Dan Laudal, director of UND’s institute for energy studies, said the technology has the potential to reduce carbon dioxide emissions. “Pyrolysis uses heat and electricity to break down natural gas into carbon and hydrogen,” Laudal told the Press. “The carbon isolated during pyrolysis is a solid, so you’re not releasing any CO2 into the atmosphere. Rather, the isolated carbon, called ‘carbon black’ can be sold for use in a variety of industrial applications. Hydrogen is also of great interest to the energy industry in North Dakota, as a potential source of energy with a lower carbon footprint.”
Sacramento Bee: As California pursues aggressive climate goals, what happens to its oil and gas workers?
MAGGIE ANGST, 1/3/23
As California transitions away from fossil fuels in the years ahead to pursue aggressive climate goals, an increasing number of oil and gas workers across the state will be forced to put their skills to use elsewhere,” the Sacramento Bee reports. “But just how many workers will be affected and how difficult will it be for them to acquire new jobs earning comparable salaries? A new analysis released Tuesday offers a rosier forecast than previous predictions. The report, produced by the nonpartisan think tank Gender Equity Policy Institute, counted about 59,200 workers directly employed by the oil and gas industries in California. And of those workers, the analysis found that two out of three will likely be able to move into new jobs in other industries without any retraining. For workers at serious risk of displacement and whose skills are not as easily transferable, the report estimates that the projected cost assumed by the state of California to support them with income subsidies and relocation assistance may also be far lower than prior projections. “Our data absolutely shows that there are people who work in the oil and gas industry who will be negatively impacted by the transition to clean energy, but the big takeaway from our study is that an equitable transition is both affordable and achievable,” Nancy Cohen, president of the Gender Equity Policy Institute, told the Bee. Previous studies, including one commissioned by the Western States Petroleum Association, have incorporated a wider array of occupations in the oil and gas workforce, which led to a higher number of people considered at risk of displacement and inflated the cost of potential transition programs for fossil fuel employees… “The Western States Petroleum Association, a trade group that represents oil operations in California, staunchly rebuked the latest findings. “Studies like this and the political rhetoric they fuel make it difficult to have the real discussions we need to have about energy policy,” Kevin Slagle, a spokesperson for the Association, told the Bee. “Californians are much smarter than these groups and some of our elected leaders give them credit for — they won’t buy into simplified and ridiculous claims that don’t match what they see in the real world.”
EXTRACTION
Wall Street Journal: Exxon, Chevron Focus on Oil Projects in the Americas
Collin Eaton, 1/3/23
“The globe is shrinking for Exxon Mobil Corp. and Chevron Corp. as the two largest U.S. oil companies pull back on big international oil projects and concentrate on a handful of more lucrative assets closer to home,” the Wall Street Journal reports. “The two fossil-fuel giants plan to spend most of their annual budgets in the Americas this year, with Chevron saying it will pour 70% of the capital allocated for production into oil fields in the U.S., Argentina and Canada, and Exxon saying it will spend a similar portion of its budget in the Permian Basin of New Mexico and West Texas, Guyana, Brazil and liquefied natural-gas projects.”
Carlsbad Current-Argus: $4.8 billion Permian Basin oil and gas merger starts off 2023 with growth in fossil fuels
Adrian Hedden, 1/3/23
“A $4.8 billion merger of two Permian Basin-based oil and gas operators was completed as region appeared poised for early growth in fossil fuel production,” the Carlsbad Current-Argus reports. “Sitio Royalties and Brigham Minerals announced the merger’s completion Dec. 29, and the combined company which retained the Sitio name. The sale first announced in September 2022 included about 30 percent coverage of the Permian Basin region – the U.S.’ busiest oilfield spanning southeast New Mexico and West Texas – along with 100 drilling rigs and 50 active wells. The combined company held a total of 259,510 net acres, with about 32,800 barrels of oil equivalent per day of production as of June 30, 2022, read the announcement. The merger was part of a broader trend of oil companies consolidating assets throughout last year on the heels of the COVID-19 pandemic, which drove down fuel demand and subsequently oil prices. In response to historically low prices, companies opted to improve fiscal discipline, hoping to insulate themselves from future production disruptions brought on by the health crisis. Sitio Chief Executive Officer Chris Conoscenti said the merger with Brigham would boost profits for shareholders by consolidating assets to increase the scale of operations, capitalizing on continued growth in the Permian Basin region.”
CLIMATE FINANCE
Reuters: JPMorgan, Citi among firms facing potential divestment by Kentucky over energy 'boycott'
1/3/23
“Kentucky on Tuesday warned 11 major financial companies, including Citigroup Inc (C.N), JPMorgan Chase & Co (JPM.N) and BlackRock Inc (BLK.N), of potential divestment over their "boycott" of energy companies,” Reuters reports. “State government entities must notify the Treasurer of direct or indirect holdings in the companies in the list. They must also write to the firms, asking them to stop the "boycott" failing which, they could be subject to divestment, Kentucky State Treasurer Allison Ball told Reuters. Republicans have been ramping up pressure on the finance industry over what they say are their increasingly aggressive environmental, social and governance (ESG) practices. In the past year, other states like West Virginia and Texas have also boycotted several financial firms. A JPMorgan spokesperson told Reuters "we believe our business practices are in line with Kentucky law, and we are hopeful a deeper look at these facts would lead to reconsideration," adding that the bank was among the largest financiers of the U.S. traditional and renewable energy industries, including in Kentucky.
Bloomberg: Green Lending Tops Fossil Fuel as Big Oil Gets Cash Elsewhere
Tim Quinson, 1/4/23
“For the first time, more money was raised in the debt markets for climate-friendly projects than for fossil-fuel companies,” Bloomberg reports. “Roughly $580 billion was arranged in 2022 for renewable energy and other environmentally responsible ventures, while the oil, gas and coal industries turned to lenders and underwriters for closer to $530 billion, according to data compiled by Bloomberg. But it’s not that green financing is finally winning out over fossil fuel lending. Rather, Big Oil looks to be getting more money from elsewhere. High oil prices over the past year have likely freed energy companies from their dependence on capital markets, April Merleaux, research manager at the environmental nonprofit Rainforest Action Network, told Bloomberg. “We’re also seeing fossil-fuel companies turn to less traditional sources of capital, such as private equity, which is much harder for us to track,” Merleaux told Bloomberg. Given this backdrop, “it’s difficult to say with confidence that there’s a new trend in the lending markets that will extend into 2023.” The big question for oil, gas and coal companies is how they plan to use their balance sheets to make the transition to clean energy, Merleaux told Bloomberg. Currently, many are saying they plan to expand fossil-fuel production now and decarbonize later, she told Bloomberg. “This is false logic, and it isn’t what the International Energy Agency (IEA) recommends,” she told Bloomberg. As for the banks, “they know what needs to be done, but we don’t yet see evidence that they’re really ready to follow through on their emissions-reduction objectives.”
TODAY IN GREENWASHING
WDAF: Keystone Pipeline clean-up advances, $7,500 going to Kansas county
Rebekah Chung, 1/3/23
“Clean-up efforts in Washington County, Kansas, are advancing following last month’s massive oil spill at Mill Creek,” WDAF reports. “...TC Energy has also announced it will be donating $7,500 toward mobile and radio equipment to enhance the communication and response capabilities of the Washington County emergency responders. The company is also expanding its community giving program to the Washington County Hospital. The public will be able to contribute with 100% marching from TC Energy’s Build Strong Program.”
Washington County News: TC Energy matching program now open to general public
Dan Thalmann, 1/3/23
“TC Energy is expanding their community giving program to allow the general public to participate in their 100% matching effort to the Washington County Hospital Foundation,” the Washington County News reports. “This local effort started recently as an employee donation option, as a thank you for the support from the community. But now TC Energy is offering the match opportunity to anyone through their Build Strong Program.”
OPINION
KIOW: Sunday Talk: Guth Opposes Carbon Pipeline Projects
Senator Dennis Guth, 12/29/22
“As a state senator, agricultural landowner, and shareholder in an ethanol plant, I would like to register my opposition to the carbon sequestration pipeline projects,” Senator Dennis Guth writes for KIOW. “The Summit Pipeline would pass just 1.25 miles from my home. Its original route would have passed through a quarter section of land that I rent. I understand that the route has currently been moved across the road, so it probably won’t cross that farm. I am also an early investor in the MGP ethanol plant, which is currently operating as Valero Renewables. The Navigator pipeline would connect with this ethanol plant with the idea that doing so would improve the marketability of their ethanol in some states, primarily California. I am still opposed to this pipeline and would like the ethanol plants to consider some of the many alternative and profitable uses of CO2… “I would contend that there is no proof that sequestering this carbon would have any effect on the world’s climate. Even at its maximum capacity, this project would not sequester enough carbon to move the needle on CO2 levels in our atmosphere… “Pressurized CO2 in pipelines will dramatically increase the safety risk to rural residents and increase the cost of training fire and EMS personnel. CO2 is heavier than air and causes death in just 4 minutes. How could emergency services ever respond that fast?.. “In conclusion, I find the carbon pipeline projects a gross misuse of taxpayer funds that is completely unnecessary. These pipelines will increase safety risks in rural areas and compromise the productivity of our most precious agricultural land… “For these reasons, I see no public good coming from these pipelines and oppose the use of eminent domain in constructing them. One of the basic rights ensured in our constitution is the right to own property and not have it taken from us unwillingly. Eminent domain must be reserved for projects that give a recognizable public benefit, like roads or public utilities.”
Financial Post: Why the oilsands could be the 'last barrel standing' in North America
Pamela Heaven, 1/3/23
“Contrary to popular belief, Canada’s oilsands may be the “last barrel standing” as the world shifts away from fossil fuels, says a report from the C.D. Howe Institute,” Pamela Heaven writes for the Financial Post. “The study, by Kent Fellows of The School of Public Policy at the University of Calgary, goes against the accepted narrative that the oilsands would be too expensive to maintain if global oil demand falls. Instead its findings show that nearly all oilsands producers will continue as long as the price of Western Canadian Select (WCS) remains above $40 per barrel, while conventional producers in the U.S. and OPEC would require higher prices. “The analysis … forms a strong argument that legacy oilsands production is more resilient in the face of potential global demand reductions than is commonly understood,” Fellows told the Post. “In fact, it is possible that we will see production declines from large international state-owned oil producers — specifically, coordinated reductions by members of the Organization of Petroleum Exporting Countries (OPEC) — before we see reductions in existing oilsands production.” “...But once these investments have been made, oilsands projects are able to maintain, or even increase, production over several years or decades with relatively small marginal costs per barrel, says the report. On the other hand, the productivity of the conventional oil well falls much faster over time, and requires new annual capital investments to maintain production. Because of this the oilsands can weather short-term price dips as long as the WCS price doesn’t stay below $40 a barrel persistently. Conventional oil producers generally stop or slow investments in production when the West Texas Intermediate (WTI) price is below US$45… “Most would continue to produce as long as the price stayed above the $25-$30 range, and some would continue even if prices fell as low as $15 to $20.”
The Hill: 4 reasons to give up defending fossil fuels
William S. Becker is a former U.S. Department of Energy central regional director, 1/2/23
“There are at least four reasons that businesses, asset managers, individual investors and governments should avoid fossil fuels,” William S. Becker writes for The Hill. “They are unacceptable risks. Coal, oil and natural gas are dead industries walking… “They can’t be trusted. Big Oil denied for decades that global warming was real and a consequence of burning carbon-based fuels, even though their scientists told them differently… “Fossil fuels have sacrificed their social licenses to operate. Companies must work in socially acceptable ways to earn and keep a social license. They must maintain the ongoing support of their stakeholders and the communities in which they operate. But pollution from power plants and vehicles still makes it dangerous for 40 percent of Americans to breathe… “Fossil fuels can’t compete with renewable energy… “For reasons like these, more than one-third of the world’s publicly traded companies have resolved to achieve net-zero carbon pollution by 2050, the goal of the Paris climate agreement. In addition, nearly 300 asset managers have promised to allocate funds in line with this goal. These commitments are having an effect. Analysts report that renewable energy and energy efficiency have dominated global investments in the power sector in recent years. In contrast, oil, gas and coal investments remained below their levels before the pandemic in 2019. Nevertheless, several Republican governors and attorneys general appear to be bullying companies and investment managers into keeping or putting money into fossil fuels… “However, environmentally and socially conscious investing is a profitable growth sector that’s “crushing the traditional investment benchmarks,” according to Bloomberg analysis… “Real free market capitalists would conclude that if fossil fuels can’t sustain their social licenses and their appeal to investors, they no longer belong in America’s energy portfolio.”