EXTRACTED: Daily News Clips 1/5/23
PIPELINE NEWS
Minnesota Public Radio: Minnesota PUC to examine Summit Carbon’s CO2 pipeline project
Brookings Register: CO2 pipeline plans in Brookings, Moody counties: ‘Ain’t over ’til it’s over’
WSJM: Group: Kansas Keystone Spill a Cautionary Tale for Michigan Pipeline
Nelson County Times: After two-year battle, Dominion releasing some easements along proposed ACP route
Prince George Citizen: Coastal GasLink pipeline more than 80% complete
CBC: Fine issued to Trans Mountain pipeline for harming birds reduced from $88K to $4K
Oil & Gas Journal: Targa Resources to pay $1 billion to own 100% interest in Grand Prix NGL pipeline
WASHINGTON UPDATES
E&E News: Why 2023 Is A Cliff For Climate Rules
E&E News: Senate Democrats look for staffers to probe fossil fuels
Press release: Bennet Urges Secretary Haaland to Reform Outdated Oil and Gas Bonding Rates to Ensure Companies, Not Taxpayers, Pay Cleanup Costs of Wells Drilled on Federal Lands
STATE UPDATES
E&E News: Federal court gives win to major hydrogen, CCS project
EXTRACTION
E&E News: 3 trends set to shape oil and gas this year
The Energy Mix: Oilsands Won’t Meet 2030 Emissions Cap Before 2035
Reuters: Canada oil sands producers to begin evaluating proposed carbon storage site
TODAY IN GREENWASHING
Press release: Veterans' Values in Lock Step with Enbridge Principles
OPINION
Virginia Mercury: Game over for the Mountain Valley Pipeline
Eagle Herald: Enbridge Energy's history is troubling
Financial Post: Why 2023 could be a make-or-break year for the Canadian oilpatch's longterm survival
PIPELINE NEWS
Minnesota Public Radio: Minnesota PUC to examine Summit Carbon’s CO2 pipeline project
Hannah Yang, 1/4/23
“The Minnesota Public Utilities Commission will consider the state’s first carbon capture pipeline project application Thursday,” Minnesota Public Radio reports. “...The commission will discuss whether Summit’s application is complete. Members will also discuss requesting an environmental assessment worksheet, which might lead to a more detailed environmental impact statement. The PUC had also been gathering public comment on the project. Landowners, tribal communities and environmental groups rallied against the proposal, voicing concerns about possible impacts on farmland, and water sources, and to nearby communities. Hudson Kingston, staff attorney for PEER (Public Employees for Environmental Responsibility) told MPR the PUC’s decisions in the application will set a precedent for how Minnesota will regulate carbon pipelines for carbon storage in the future… “Summit only requested a permit for northwest Minnesota’s part of the pipeline. It would run west of Fergus Falls into North Dakota. Another part of the pipeline is planned in west-central and southern Minnesota which then connects to the main trunk in Iowa… “Overall, the project proposes about 2,000 miles of pipeline connecting 32 ethanol plants to transport sequestered carbon into an underground storage site somewhere in North Dakota. The meeting is at 10 a.m. in St. Paul. Those interested in attending the hearing virtually can view it on webcast or listen by phone.”
Brookings Register: CO2 pipeline plans in Brookings, Moody counties: ‘Ain’t over ’til it’s over’
John Kubal, 1/4/23
“With three mandatory public hearings – in November in Canton, Flandreau and Sioux Falls – now over, the South Dakota Public Utilities Commission will between now and Sept. 27 take action on a: “Permit to Construct a Carbon Dioxide Transmission Pipeline in the counties of Brookings, Moody, Minnehaha, Lincoln and Turner,” the Brookings Register reports. “...Meanwhile, as the project moves forward, some landowners in Brookings and Moody County are concerned that an 800-pound gorilla is hanging around and maybe ready to symbolically enter the room: “The landowners are against it big time,” Clayton Rentschler, a Moody County landowner who attended all three PUC public hearings,” told the Register “(Getting the land) through eminent domain is what’s making them so mad. And the fact that it’s not a public utility. A ‘garbage line’ is what I like to call it… “With the three public hearings now over, he sees that “what we really need to do is get people to call their legislators, their district representatives and others like that. That’s where we need the voice now, is to get everybody in Pierre aware and onboard. The more we get people speaking out against this pipeline, we need to contact our elected officials. And you don’t have to be a landowner to do that. It’s all our tax dollars when it comes right down to it. Everybody’s in this whether they like it or not.” Rentschler is a member of South Dakota Easement Team, which bills itself as “a landowner-organized and run group designed to help educate and empower other South Dakota landowners to understand the options available to you to protect your land and future from the abuse of eminent domain. SDET is working closely with a legal team and community organizers to build a statewide network of concerned and affected persons to join together as one powerful group. Stand with us as we say NO to corporate exploitation of South Dakota’s land and residents.”
WSJM: Group: Kansas Keystone Spill a Cautionary Tale for Michigan Pipeline
1/4/23
“An environmental watchdog group said the recent Keystone Pipeline oil spill should serve as a warning to Michiganders if a proposed expansion of the Enbridge Line 5 project is approved,” WSJM reports. “...Sean McBrearty, campaign coordinator for Oil and Water Don’t Mix, said a break in Line 5, which runs under the Mackinac Straits, could cause as much or more damage as the Keystone spill. “What the Keystone spill in Kansas goes to show is, even new pipelines spill,” McBrearty told WSJM. “There’s no foolproof way to build these. There is no way to respond to a major oil spill effectively, especially in a place like the Straits of Mackinac.” Line 5 is a 30-inch-wide, 645-mile-long pipeline which carries crude oil products from central Ontario through Michigan. Enbridge wants to move the pipeline to a planned tunnel under Lakes Michigan and Huron. The company claims the project will protect the Straits from an oil spill and create jobs. McBrearty disagreed. He pointed out studies have shown the proposed project is extremely risky, and rerouting the pipeline has the potential to create an environmental disaster… “Enbridge is awaiting an Environmental Impact Statement from the Army Corps of Engineers, and a decision from the Michigan Public Service Commission, which could take another two years.”
Nelson County Times: After two-year battle, Dominion releasing some easements along proposed ACP route
Emma Martin, 12/28/22
“During Christmas week 2014, many Nelson County landowners along the Atlantic Coast Pipeline (ACP)’s proposed route received a not-so-festive piece of mail: a notice that Atlantic Coast Pipeline LLC was suing them for survey access to their properties,” the Nelson County Times reports. “... Many Nelson landowners had refused ACP permission to survey their land for the project, the first act of resistance in what would be a six-year fight, Joyce Burton, landowner liaison and a former board member of Friends of Nelson, one of the first groups to formally organize around halting the pipeline, told the Times. On July 5, 2020, ACP parent companies Dominion and Duke Energy announced the cancellation of the project, citing environmental lawsuits and delays as having increased the estimated price tag from $5 billion to $8 billion. Two years later, most Nelson landowners along the pipeline’s proposed path still have easements, or right-of-way agreements, on their properties… “Since the pipeline’s cancellation, Burton has been fighting to have those easements returned to every Nelson landowner on the path. In the past few months, she’s finally started to see her work pay off, watching multiple landowners have their easements restored… “On Jan. 5, 2021, a day after ACP filed its restoration plan to FERC for repairing land damaged during construction, company spokesperson Aaron Ruby confirmed for the Associated Press that ACP did not intend to voluntarily release the easements and did not have plans to sell them to any third parties at that time. There’s a “human cost,” Burton told the Times, to those easements still sticking around post-pipeline, when they continue to affect property values and limit what a landowner can do on their property… “In fall 2021, Burton spearheaded an advocacy initiative with Washington D.C.-based think tank the Niskanen Center to return easements, first with a dozen or so landowners with no physical damage to their properties. She connected with the office of U.S. Sen. Tim Kaine, D-Va., and he intervened on behalf of these landowners to Dominion. She credits his advocacy for eventually breaking through, and those landowners received a letter in March from Dominion committing to release their easements within six months of FERC’s final order and notice to proceed on its restoration plan. The next few landowners Burton sent Kaine’s way also have had their easements returned… “We appreciate everyone’s patience as we worked through the lengthy approval process for the ACP restoration plan. We needed to keep the easements until receiving FERC approval so we would have certainty on which properties require restoration or access. With the limited FERC approval to proceed, we will now begin coordinating the release of easements for landowners whose properties do not require restoration or access.” Asked what landowners seeking their easements released can do, Ruby directed landowners with questions to contact their land agent — the ACP land supervisor for Nelson and nearby counties is Dave Aman, whose information is available on the ACP website, atlanticcoastpipeline.com. Burton is happy about the progress but isn’t resting: “Our goal through all of this has been to get this for everybody, and to not just have to have each one be a one-at-a-time advocacy effort. Landowners shouldn’t have to write a letter telling what their individual circumstances and story is in order to get their land back.”
Prince George Citizen: Coastal GasLink pipeline more than 80% complete
Arthur Williams, 1/4/23
“By the end of 2022, work on the $11.2 billion Coastal GasLink natural gas pipeline across northern B.C. was 81.2 per cent complete, according to information released by pipeline owner TC Energy,” the Prince George Citizen reports. “The construction portion of the overall project was 77.8 per cent as of the December update. As of Nov. 30, roughly 6,120 workers were employed along the 670-km pipeline route from the Wilde Lake Compressor Station, west of Dawson Creek, to LNG Canada’s liquified natural gas (LNG) export terminal under construction in Kitimat. “...Construction was least advanced in Section 7 of the project, where only 67.6 per cent of grading and 32.4 per cent of pipeline installation was complete, as of the December update. Section 7 is the 77 km stretch from south of Houston to north of Morice Lake, where a work camp was attacked in February and Wet'suwet'en First Nation hereditary chiefs and their supporters have engaged in blockades. In November, TC Energy announced that cost pressures had driven the expected pricetag of the project to $11.2 billion, up from earlier estimates of $6.6 billion.
CBC: Fine issued to Trans Mountain pipeline for harming birds reduced from $88K to $4K
Karin Larsen, 1/4/23
“The $88,000 penalty handed to Trans Mountain Pipeline almost a year ago for harming nesting birds has been reduced upon review to just $4,000,” CBC reports. “In the decision, the Commission of the Canada Energy Regulator said Trans Mountain Pipeline's violation of environmental regulations aimed at protecting nesting migratory birds was "unacceptable." However, the three-person review panel also said the amount of the penalty was not properly determined, characterizing the "level of actual harm as low, given that the species impacted are common species, and the number of individuals impacted is relatively low compared to the estimated populations." “...According to the review, the first violation on April 21, 2021, involved the destruction of an Anna's hummingbird nest and egg by workers clearing trees along the pipeline route in Spread 7, the section between Langley and Burnaby. A few days later, Environment and Climate Change Canada halted pipeline construction for four months — until the end of bird nesting season — in an area along the Brunette River in Burnaby… “The official who issued the violations and fine said Trans Mountain failed to adequately oversee its contractors and did not ensure the competency, training or supervision of personnel, "which resulted in potential and real harm to the environment." Last year, Trans Mountain Corp. announced the price of the expansion project had ballooned from $12.6 billion to $21.4 billion. Construction is expected to be finished sometime this year.”
Oil & Gas Journal: Targa Resources to pay $1 billion to own 100% interest in Grand Prix NGL pipeline
1/4/23
“Targa Resources Corp., Houston, has agreed to acquire Blackstone Energy Partners’ 25% interest in Targa’s Grand Prix NGL Pipeline for $1.05 billion in cash,” Oil & Gas Journal reports. “...Grand Prix has capacity to transport up to 1 million b/d of NGL to the Mont Belvieu, Tex. hub. Grand Prix connects Targa’s gathering and processing positions throughout the Permian basin, North Texas, and Southern Oklahoma (as well as third-party positions) to Targa’s fractionation and storage complex at Mont Belvieu. Targa farmed out the 25% joint venture interest in the NGL pipeline to funds managed by Blackstone in 2017.”
WASHINGTON UPDATES
E&E News: Why 2023 Is A Cliff For Climate Rules
Jean Chemnick, 1/4/23
“It’s go time for EPA climate regulations. The Biden administration’s team of veteran lawyers and regulatory experts tasked with proposing clear air rules and climate mandates is far behind schedule at the outset of 2023,” E&E News reports. “Deadlines have come and gone for EPA actions on power plant mercury and air toxics, cars, and atmospheric ozone. The agency is also under the gun to propose carbon rules for new and modified power plants and to finalize its methane standards for the oil and gas industry. If those rules slip to next year, advocates warn, it could jeopardize the administration’s chances of defending the rules in court, or even open the door for a Republican president and Congress to easily reverse them in 2025.”
E&E News: Senate Democrats look for staffers to probe fossil fuels
Nick Sobczyk, 1/5/22
“The Senate Budget Committee is looking to hire staffers with experience investigating fossil fuel influence campaigns, a sign of how incoming Chair Sheldon Whitehouse could use the gavel to go after the industry,” E&E News reports. “The committee is seeking several new aides, including a climate policy expert and an oversight director, according to job bulletins posted on the Senate website. The committee wants the oversight director to have “experience working on corporate accountability issues, particularly with respect to the fossil fuel industry, climate change, and identifying sources of dark money in political influencing campaigns,” according to the job posting. Climate also makes an appearance in a posting for an economist position. The committee said it is seeking a person with knowledge of public policy, “particularly climate change and pollution-related matters.” “...Whitehouse has said he wants to continue the investigation of Big Oil started in the House during the last Congress by Rep. Ro Khanna (D-Calif.) and then-Oversight and Reform Chair Carolyn Maloney (D-N.Y.).”
Press release: Bennet Urges Secretary Haaland to Reform Outdated Oil and Gas Bonding Rates to Ensure Companies, Not Taxpayers, Pay Cleanup Costs of Wells Drilled on Federal Lands
12/22/22
“Colorado U.S. Senator Michael Bennet urged U.S. Department of the Interior (DOI) Secretary Deb Haaland to address outdated and insufficient federal oil and gas bonding rates to ensure companies, not taxpayers, are the ones on the hook for the costs of cleaning up wells drilled on federal lands. These rates have not been updated since they were set more than fifty years ago, and as a result, are insufficient to cover the true costs of cleaning up drilling sites. “[T]he challenge that dangerous orphaned wells pose on our federal lands in Colorado and across the West demands immediate action across the government,” said Bennet in the letter. “These wells release harmful pollution affecting our water and air, pose a hazard to fish and wildlife, and can impair other uses of public lands such as recreation.” Abandoned wells are a major source of climate-harming methane emissions and pose a number of environmental and health risks for nearby communities. Bennet’s Oil and Gas Bonding Reform and Orphaned Well Remediation Act would strengthen and increase minimum bonding requirements for oil and gas development on federal lands to ensure adequate financial resources are available for future cleanup and remediation.”
STATE UPDATES
E&E News: Federal court gives win to major hydrogen, CCS project
DAVID IACONANGELO, 1/4/23
“A federal court has slapped down a Louisiana ordinance that jeopardized a $4.5 billion hydrogen and carbon storage project, giving a boost to developers in a case seen as a preview of national battles over the fuel,” E&E News reports. “...The company wants to build a new production facility that makes "blue" hydrogen from natural gas while capturing the resulting carbon emissions. The carbon dioxide would then be transported and permanently stored beneath Lake Maurepas, about 40 miles from the city of Baton Rouge. The company’s plans were upended last fall by a rural parish bordering the lake. Livingston Parish’s council passed an ordinance establishing a 12-month moratorium on well drilling and other surveying activities on parish land, which halted exploratory activities for the carbon storage facility. That prompted an October lawsuit from Air Products, which called it an illegal attempt to block what it said is a crucial project for Louisiana’s climate goals. On Dec. 26, a U.S. district court judge, Shelly Dick, issued a preliminary injunction preventing Livingston Parish from enforcing its moratorium… “In legal filings, the parish defended its moratorium and said it was not preempted by state or federal law, arguing that Air Products' exploratory work would interrupt spring and summer boating activities on Lake Maurepas and leave "traces of damage and destruction." Parish Council members have also complained about lack of consultation from the company and said the carbon storage site could threaten the lake's ecosystem in the event of a leak… “Livingston Parish and a neighboring parish have passed additional ordinances that target exploratory activities not addressed by the lawsuit, while environmentalists in the state have signaled that they plan to protest against carbon pipelines associated with the complex. Green groups have been broadly skeptical of blue hydrogen and carbon storage, pointing to studies finding that leakage of methane or of the hydrogen itself could outweigh the climate benefits of using it in place of natural gas.”
EXTRACTION
E&E News: 3 trends set to shape oil and gas this year
Mike Lee, Carlos Anchondo, 1/5/23
“After posting record profits in 2022, oil and gas companies say they’re preparing to ramp up investments in clean energy and new technology this year,” E&E News reports. “...The industry’s plans will get a boost from the Inflation Reduction Act, the massive climate law that includes $369 billion in tax credits and other incentives to promote technologies such as carbon capture and low-emissions sources of fuel and power. At the same time, the oil industry is being criticized for not spending more of its profits on renewables and low-carbon energy. Both Exxon and Chevron plan to allocate more than 80 percent of their total energy spending to traditional oil and gas, not low-carbon fuels… “Overall, the industry has locked in plans to spend $58 billion on oil and gas projects globally that will push the global temperature rise past the 1.5-degree-Celsius threshold, according to research by Carbon Tracker. Here are three trends to watch with oil and gas in 2023: 1. Renewable and certified gas: Since October, three of the biggest global oil and gas producers have bought companies that produce natural gas from landfills, wastewater plants and other sources… “2. Big Oil and CCS: The Inflation Reduction Act is also expected to boost carbon capture and storage (CCS), as well as carbon removal, which several oil companies are counting on to help reduce their emissions… “Additionally, funding from legislation like the bipartisan infrastructure law passed in 2021 may eventually help carbon capture on natural gas power plants, according to John Northington, director of the National Carbon Capture Center, in a December webinar organized by the Department of Energy… “3. LNG outlook: The new year could bring clarity for a jumble of projects that have been proposed to export liquefied natural gas from the United States. Currently, seven terminals are operating in the lower 48 states, and five are under construction. The Federal Energy Regulatory Commission has approved 11 more, but not all of them have lined up the financing and gas delivery contracts that they need to proceed with construction.”
The Energy Mix: Oilsands Won’t Meet 2030 Emissions Cap Before 2035
1/5/23
“With investors elsewhere turning up the heat on fossil companies to declare firm climate goals for the end of this decade, the Pathways Alliance is admitting it won’t likely comply with its 2030 emissions cap until 2035 at the earliest,” The Energy Mix reports. “...It’s gonna take another five or 10 years to get there to those levels based on the current plan,” said Pathways Alliance President Kendall Dilling. “By the mid-2030s we could probably get to that level of ambition.” Over the last year, the five-member alliance has taken severe criticism for failing to invest in emission reductions, instead building an industry decarbonization plan on costly and unproven carbon capture and storage (CCS) technology. In October, the companies announced plans for a C$24.1-billion CCS megaproject, but said their final investment decision would depend on government subsidies, on top of the $7.1 billion in tax support they’d already received in the 2022 federal budget—and in spite of the record profits they took in last year, an estimated $152 billion, according to a late September analysis by the Calgary-based Pembina Institute… “The investment climate under which any of these companies would make any of these big CCS investment decisions is still not completely favourable,” so “it’s not that surprising for something this big that it ends up on a delay,” University of Alberta professor Andrew Leach told CBC. But “the urgency comes in a way from how patient our government is going to be in waiting for the oil and gas sector or the Pathways group to figure this out and get something that makes it clear that they can deliver on their promises.”
Reuters: Canada oil sands producers to begin evaluating proposed carbon storage site
Nia Williams, 1/4/22
“Canada's largest oil sands producers signed an agreement with the Alberta government allowing them to assess the geology of an underground carbon storage site, a step in their plan to tackle greenhouse gas emissions, the companies said on Wednesday,” Reuters reports. “The Pathways Alliance, consisting of six companies representing 95% of Canada's oil sands production, is proposing a carbon capture and storage (CCS) hub that will gather and store emissions from 14 oil sands projects in northern Alberta by 2030… “But the costly technology takes years to build, and proposed Canadian projects are relying on government support to move forward. The CCS plan is expected to cost about C$16.5 billion ($12.22 billion) by 2030. Last year the Canadian government unveiled a CCS investment tax credit, but the oil industry is asking federal and provincial governments for further financial support… “Pathways has not yet made a final investment decision on the CCS project. The alliance plans to file a regulatory application in the fourth quarter of 2023 for a proposed carbon transportation pipeline and storage network. If the project proceeds, some facilities that do not need a carbon pipeline to reach the hub could be injecting as early as 2026.”
TODAY IN GREENWASHING
Press release: Veterans' Values in Lock Step with Enbridge Principles
1/4/23
“An upcoming segment of Military Makeover: Operation Career spotlights Enbridge employees who've transitioned from the U.S. Armed Forces to successful careers with North America's leading energy infrastructure company. Military Makeover is hosted by former talk show host Montel Williams, an advocate for U.S. military veterans who himself retired from the U.S. Naval Reserve in 1996 after 22 years of service… “Small spoiler alert: Interviewed participants impactfully cite a specific word on several occasions that links the two institutions intrinsically together. The word is "values." As well, a resounding sense of appreciation and respect between company and employee is conveyed throughout. "The values of Enbridge as a corporation are integrity, respect, safety and inclusion-very much in line with the military," says Stephanie Guerrero, who joined Enbridge in 2008 following time working in health care. Prior to that, Guerrero began her military career serving in the IL Army National Guard at age 17, and she later joined the U.S. Navy.”
OPINION
Virginia Mercury: Game over for the Mountain Valley Pipeline
Elle De La Cancela serves as the Central Virginia Campaign Coordinator for the Chesapeake Climate Action Network and leads the organization’s No New Fossil Fuels work, 1/5/23
“The Mountain Valley Pipeline (MVP) is 0-4 on first down conversions. The red zone is nowhere in sight, and the clock is running out. Why are people still betting on this team?,” Elle De La Cancela writes for the Virginia Mercury. “...It would boost the bottom line of fossil fuel companies at the expense of regional clean water and endangered species. It would require up to four new compressor stations, facilities that keep the gas pressurized as it travels. The pipeline would also cut through about five miles of the Jefferson National Forest and bisect the iconic Appalachian Trail and Blue Ridge Parkway… “Since construction began, MVP has racked up 300-plus violations of existing permits across West Virginia and Virginia. These violations have had devastating impacts on local ecosystems and people who live along the route. The company continues to peddle to its investors the false narrative that MVP is almost finished, while outside reports show the project is barely over halfway complete. Which part of the construction still needs to happen? The steepest and most treacherous terrain. Construction, however, is off the table completely for at least another year. Why? Because seven years after construction began, MVP still lacks critical permits… “If this was the NFL, the fantasy leagues would be hedging their bets. Somehow NextEra Energy and other Wall Street gamblers keep putting their money on a failing team, a failing project and failing legislative attempts… “With every failed congressional endeavor, the stock of Equitrans Midstream Corporation (EQT), MVP’s parent company, takes a dip – ranging from 3 to 8%. EQT and Roanoke Gas have recorded several multimillion dollar impairment charges over the last year alone, but the bettor’s sunk-cost fallacy wins against reason. In its earnings calls this past quarter, EQT outlined the “hostility” of the courts and the company’s reliance on congressional intervention to complete the project. With sine die in sight, the legislative pathway is closing. MVP now has to stand on its own merits. The Mountain Valley Pipeline is down $6 billion with seconds on the clock in overtime. Even casual viewers can see that the game is over. MVP has lost. Gamblers should cut their losses while they still can.”
Eagle Herald: Enbridge Energy's history is troubling
Tom Boerner, 1/4/23
“Almost every week I see a full-page ad from Enbridge Energy in newspapers telling us that their Line 5 pipeline that runs under the Straits of Mackinac is safe,” Tom Boemer writes for the Eagle Herald. “These ads prompted me to do some investigating. What I found is troubling… “Enbridge officials have said that properly maintained pipelines can last indefinitely, but the company’s history of major spills in Michigan and North America proves otherwise. Line 5 has spilled 33 times and at least 1.1 million gallons along its length since 1968. In 2018, an anchor strike gashed and dented both underwater pipelines… “University of Michigan scientists modeled the currents in the Straits of Mackinac and called it "the worst possible place for an oil spill to occur in the Great Lakes." Line 5 is a shortcut for Canada's benefit, with less than 5 to 10% of the product used in Michigan. Remember hearing about the Keystone Pipeline? How the environmentalists were being irrational asking for more oversight and not having this pipeline run through environmentally sensitive areas. A damaged section of the was reopened Thursday after weeks of repairs and clean up following a leak of 600,000 gallons of crude oil into a Kansas creek, officials said… “What do these two pipelines have in common? Some politician(s) were wined, dined, and given money by some lobbyists in exchange for favorable laws for their clients to be written and existing laws that protected local rights gutted.”
Financial Post: Why 2023 could be a make-or-break year for the Canadian oilpatch's longterm survival
Meghan Potkins, 1/4/23
“By the end of 2023, the majority of the policy required for Canada to meet its 2030 emissions goals will be in place, representing a watershed moment for the country’s climate response — and a reckoning for the oilpatch,” Meghan Potkins writes for the Financial Post. “Canada has promised to reduce greenhouse gasses by 40 per cent below 2005 levels by 2030, and the year ahead will bring a suite of climate policies that will disrupt the energy industry. Key among them are: the establishment of a cap on emissions from the oil and gas sector and new measures to firm up carbon pricing, including carbon contracts for differences, which would provide companies and investors clarity by locking in prices. And while not aimed directly at emissions reduction, Ottawa’s long-promised and controversial “Just Transition” legislation also could drop early this year. Prime Minister Justin Trudeau promised programs that would ease the exit of thousands of oil and gas workers from an industry destined to shrink — a proposal vociferously opposed by Alberta Premier Danielle Smith, who has decried the policy as “extremely harmful” to Canadians whose livelihoods depend on the energy industry. But executives in the Canadian oilsands, one of the most carbon-intensive sources of crude in the world, are acutely aware the industry’s long-term prospects depend on taking climate change seriously. They are laser-focused on pushing provincial and federal governments to write climate policies that won’t threaten continued oil and gas production, while banking on government support for large-scale decarbonization infrastructure projects, such as carbon capture and storage. “It is a pivotal year. 2023 will determine whether we achieve these 2030 targets,” Kendall Dilling, head of the Pathways Alliance, a consortium of six oilsands majors, including Canadian Natural Resources Ltd., Cenovus Energy Inc., ConocoPhillips Canada, Imperial Oil Ltd., MEG Energy Corp. and Suncor Energy Inc., told the Post. “We’re not doing this because we’re being regulated to do it. We’re doing this because our CEOs truly have a conviction that we don’t have a long term future if we can’t address what’s been our Achilles heel: our greenhouse gas emissions.” “...Dilling told the Post the industry is largely agnostic on the exact mix of policies, but that governments must be willing to do more to alleviate the cost burden of decarbonization. He said carbon contracts for differences, a carbon capture production tax credit or breaks on provincial royalties could play a role.”