EXTRACTED: Daily News Clips 2/3/22
PIPELINE NEWS
WPR: Hundreds participate in a hearing on Enbridge’s proposed oil and gas pipeline project
The Gazette: Summit Carbon Solutions asks to use eminent domain for CO2 pipeline through Iowa
Summit-Tribune: Sierra Club decries Summit pipeline petition filing without list of properties
York News-Times: Bold Nebraska to hold meetings for landowners, communities in areas of proposed carbon pipeline
Press release: Environmental groups seek to defend Virginia’s denial of air permit for MVP in court
WisPolitics: Dept. of Natural Resources: Extends public comment period for Draft Environmental Impact Statement on proposed Enbridge Pipeline relocation
Pittsburgh Post-Gazette: Energy Transfer charged with 9 environmental crimes over Revolution pipeline explosion
Reuters: Energy Transfer charged with environmental crimes in Pennsylvania
Bloomberg: Rover Pipeline, Energy Transfer Sue FERC Over $20 Million Fine
Buffalo News: National Fuel seeks another extension of pipeline construction deadline
STL Today: Debate over Spire's STL pipeline will drag out for another year, company says
Bloomberg: Plains All American Settles Class Claims Over Illinois Oil Spill
WickedLocal: Protesters outside the North Shore Chamber of Commerce Insight Breakfast: Energy Forum
WASHINGTON UPDATES
FOX Business: Biden administration stoking higher energy prices with oil and gas crackdown, JEC analysis shows
InsideEPA: Oil & Gas Sector Cites Numerous Concerns With EPA’s Methane Plan
STATE UPDATES
Aspen Times: Eagle County will challenge Utah rail line’s approval
Long Beach Post: City commission urges Long Beach to end oil drilling, declare a climate emergency
Los Angeles Daily News: SoCalGas settles with environmental watchdog group over Aliso Canyon facility
EXTRACTION
Forbes: Exxon, Chevron Promise Permian Basin Shale Production Boost
Politico: EXXON’S CARBON, HIGH PRICES
Gizmodo: Exxon "Cares"
Rigzone: Companies Team Up To Develop Full Value Chain CCUS Offering
Bloomberg: Oilsands emissions could start to fall in next five years, research says
Press release: Questerre polling data confirms majority of Quebecers support developing natural gas with new technologies
CLIMATE FINANCE
BlackRock’s Big Problem: BlackRock to Clients: Navigating Climate Transition is the New Standard
The Conversation: Alberta oilpatch may face lending crunch as financial regulators worry about the risks of climate change
E&E News: Fed nomination ignites debate over bank’s climate role
Bloomberg: Tamarack Sells First SLB From a North American Oil Producer
TODAY IN GREENWASHING
MyMuskokaNow: Enbridge grant funds new training materials for HLOB Fire Department
OPINION
The Hill: Tackling methane leaks is a climate win — but lets polluters off the hook
The Hill: Climate change beats Big Oil and Biden in court
PIPELINE NEWS
WPR: Hundreds participate in a hearing on Enbridge’s proposed oil and gas pipeline project
Danielle Kaeding, 2/2/22
“Nearly 300 people attended a 10-hour-long virtual public hearing Wednesday about a draft environmental review for a $450 million plan to reroute an oil and gas pipeline across northern Wisconsin,” WPR reports. “...Most people spoke in opposition to the reroute during a hearing that stretched into the early morning hours Thursday. Supporters of the project — including Republican lawmakers, labor unions and the state’s largest business lobby — touted the 700 construction jobs that would be created during the project. They also highlighted the $135 million economic impact it would create for the state, as well as the $36.5 million in property tax revenues that the company’s pipelines generate… “Environmental groups, tribal members, activists and residents from across the state, Midwest and beyond have argued the DNR’s draft environmental review is insufficient, lacks baseline data and doesn’t adequately evaluate impacts along the route that include the risk of spills. "The draft (environmental impact statement) doesn't properly recognize how harmful Enbridge's proposal for a new Line 5 segment would be to Wisconsin's waters, wetlands or climate," Jennifer Giegerich, director of government affairs for Wisconsin Conservation Voters, told WPR. "Secondly, this draft EIS fails to recognize the authority of the treaty rights of the tribes of Wisconsin." Others raised concerns that the plans would increase the risk of human trafficking along the route as seen during the construction of Line 3 in Minnesota. Opponents also highlighted the line’s contribution to climate change as scientists urge drastic cuts in carbon emissions… “The public hearing began at 4 p.m. and concluded around 2 a.m. on Thursday.”
The Gazette: Summit Carbon Solutions asks to use eminent domain for CO2 pipeline through Iowa
Erin Jordan, 2/1/22
“Summit Carbon Solutions wants permission to use eminent domain to build a carbon dioxide pipeline through 30 Iowa counties in Northern and Western Iowa, according to a permit application filed with the Iowa Utilities Board,” The Gazette reports. “This means the Ames-based company doesn’t have all the voluntary easements from property owners to build 681 miles of pipeline, and now is asking the board for permission to use private property with payment, but against owners’ wishes. “It is uncertain at this time whether and to what extent the right of eminent domain will be required,” Summit said in the application, which was filed Friday. The company says it lists which properties it plans to condemn in an exhibit, but that exhibit is not included with the public filing. The board will decide whether the CO2 pipeline — designed to transport the greenhouse gas from ethanol and fertilizer plants to an underground sequestration site in North Dakota — fulfills a public use necessary to qualify for using eminent domain… “Since these pipelines have been announced, I have yet to speak with a single landowner who is supportive of the project,” Jessica Mazour, conservation program coordinator for the Sierra Club Iowa Chapter, told the Gazette. “Despite what Summit wants the public and our state legislators to believe, the opposition is widespread and diverse. We are Republicans, Democrats, farmers, environmentalists, young, old and everything in between. When unlikely allies can come together like this, we know this isn’t a Republican or Democrat issue — it’s a right or a wrong issue. It’s pretty clear this is just plain wrong.” The group pointed to dozens of opposition letters filed by citizens as well as 15 county Boards of Supervisors filing formal objections to the use of eminent domain for the project.”
Summit-Tribune: Sierra Club decries Summit pipeline petition filing without list of properties
2/1/22
“On Jan. 28, Summit Carbon Solutions filed its petition for a hazardous liquid pipeline permit with the Iowa Utilities Board,” the Summit-Tribune reports. “According to a Sierra Club Iowa Chapter news release, the permit application is despite overwhelming opposition from landowners, counties, and everyday Iowans. Sierra Club Iowa Chapter points to the long list of objections submitted to the IUB, the tone of the informational meetings, and the fact that half of the counties along Summit’s proposed route have submitted objections to the use of eminent domain for the private project… “In the petition, Summit failed to include a list of properties (Exhibit H) where it will be seeking eminent domain… “We believe Summit has very few signed easements at this point," Wally Taylor, who is an attorney for the Sierra Club Iowa Chapter, told the Tribune. "That is why they don't want to file Exhibit H now. Summit has been putting out PR that they have hundreds of signed easements and are getting more all the time. They should be required to file Exhibit H to prove this.” The Sierra Club says that this process that allows a company to delay filing a list of landowners who have signed easements and those who have clearly said no, encourages the company to continue harassing the landowners throughout the process. “When is the state going to step in and protect us from this abusive company that continues to harass us and our neighbors? We can’t be any more clear - the answer is no,” said Dan Tronchetti, who is a landowner and farmer from Greene County. “I am 74 years old and feel like I am being railroaded into losing my land to a private company without being able to say anything about it," said landowner and farmer from Holstein Patricia Moore… “Fifteen of the 30 boards of supervisors in counties along Summit’s route have submitted objections to the IUB that eminent domain should not be allowed for private projects like this one.”
York News-Times: Bold Nebraska to hold meetings for landowners, communities in areas of proposed carbon pipeline
Melanie Wilkinson, 2/2/22
“Bold Nebraska, the grassroots group that formed an alliance of farmers, ranchers, tribal nations and concerned citizens to stop the Keystone XL pipeline, will be holding a series of upcoming meetings for landowners and communities in areas of a proposed carbon capture pipeline,” the York News-Times reports. “One of those meetings will be held in York… “In York County, if the pipeline leg were to be built in the anticipated straight line from the York plant to the Central City plant, it would run at a southwest angle from the local plant, crossing land between Benedict and Bradshaw and then crossing the York County line near Polk… “When Murty met with the county board members, he was asked if the company would exercise eminent domain if they ran into problems with acquiring easements. Murty responded, “We don’t plan to, we don’t want to utilize eminent domain. We want all partners to be agreeable and we don’t want to try and force this on someone who doesn’t want a pipeline on their land. We are actively working to avoid that. But it’s also not taken off the table.” Besides the meeting in York, Bold Nebraska also held a meeting in O’Neill, as well as a virtual meeting online. Mark Hefflinger from Bold Nebraska said, “These projects aim to exert eminent domain authority to push these pipelines through landowners’ property, whether they want it or not. At the meetings, attorney Brian Jorde with Domina Law Group will be present to give an overview of landowners’ rights and answer questions about eminent domain, as well as providing information about forming a landowners’ legal co-op, similar to how landowners banded together to fight eminent domain for the Keystone XL pipeline. Pipeline expert Paul Blackburn will also give an overview of this unproven ‘carbon capture’ technology, and the unsound economics and safety and health risks from these proposed carbon pipelines.” “...Hefflinger and the Bold Nebraska organization say they are worried about “safety in the event of a rupture or leak; the abuse of eminent domain; damage to top soil and crop losses; the lack of regulations for carbon pipelines; that carbon capture doesn’t actually help reduce emissions and the impacts of climate change; and that all the risk will be put on landowners without reward.”
Press release: Environmental groups seek to defend Virginia’s denial of air permit for MVP in court
2/1/22
“The Sierra Club and Appalachian Voices, represented by Appalachian Mountain Advocates, moved to intervene in a lawsuit to help defend the Virginia Air Pollution Control Board’s denial of an air permit for the proposed Lambert Compressor station. If built, the station would connect the beleaguered Mountain Valley Pipeline to the proposed “Southgate” extension into North Carolina. The conservation groups filed the motion in response to a lawsuit by the Mountain Valley Pipeline that seeks to reverse the board’s decision… “The board’s decision reflected two major concerns with the project. First, the board acknowledged that an additional industrial facility would degrade air quality in the region. The board also cited the lack of a thorough environmental justice study, including identification of and outreach to people of color and/or low income people living within three to five miles of the proposed Lambert Compressor Station site.”
WisPolitics: Dept. of Natural Resources: Extends public comment period for Draft Environmental Impact Statement on proposed Enbridge Pipeline relocation
2/2/22
“The Wisconsin Department of Natural Resources (DNR) today announced the department is extending the public comment period for the Draft Environmental Impact Statement that it has prepared for the proposed relocation of Enbridge’s Line 5 pipeline. The comment period is being extended by 14 days and will now close on March 18, 2022,” WisPolitics reports. “...The department has determined that this extension is reasonable given the complexity of the project, the volume of technical information, the length of the draft Environmental Impact Statement and the public interest in the project. In total, the public comment period on the Draft Environmental Impact Statement will be 92 days. The department hopes that this extended comment period will provide the public with ample time to review and provide comments on the Draft Environmental Impact Statement… “The public will be notified when the Final Environmental Impact Statement is completed. No permit decisions will be made until after the Environmental Impact Statement process is complete.”
Pittsburgh Post-Gazette: Energy Transfer charged with 9 environmental crimes over Revolution pipeline explosion
Anya Litvak, 2/2/22
“Energy Transfer, which built the Revolution Pipeline that exploded in Beaver County in 2018, is being charged with nine counts of environmental crimes over the incident,” the Pittsburgh Post-Gazette reports. “Attorney General Josh Shapiro announced on Wednesday that a grand jury had found the Texas-based pipeline company “repeatedly ignored environmental protocols,” failures that contributed to the landslide that caused the natural gas pipeline to rupture and explode on Sept. 10, 2018. The resulting fire burned down one family’s home and forced the early morning evacuation of houses near a steep hill in Center Township. The investigation, Mr. Shapiro said in a statement, showed that an earlier landslide had occurred at the same site, dumping sediment into Raccoon Creek below. The company is being charged with two counts of prohibition of discharge of industrial waste; two counts of prohibition against other pollutions; two counts of potential pollution; and three counts of unlawful conduct -— all second-degree misdemeanors… “These were recorded as violations by state and local regulators and as items that needed to be fixed by the third-party environmental inspectors hired by Energy Transfer to oversee the project. But there were so many erosion problems, the grand jury report states, that the construction company would pick the worst cases to be fixed and leave others languishing on to-do lists for months… “In October, Mr. Shapiro announced 48 environmental crimes charges against Energy Transfer over its construction of another pipeline, the Mariner East network that runs through southern Pennsylvania. That case has a preliminary hearing scheduled for next month.”
Reuters: Energy Transfer charged with environmental crimes in Pennsylvania
2/2/22
“The Pennsylvania attorney general's office on Wednesday charged a unit of Energy Transfer LP with nine counts of environmental crimes related to construction of the Revolution natural gas pipe in the western part of the state,” Reuters reports. “A portion of the 24-inch (61-centimeter) pipe failed in an explosion after heavy rains caused a landslide in Center Township in Beaver County on Sept. 10, 2018. The resulting fire destroyed a nearby home, damaged power lines and burned several acres of surrounding woodland… “The charges came a few months after the Pennsylvania Public Utility Commission approved a nearly $2 million settlement with Energy Transfer for the same explosion. Pipelines owned by Dallas-based Energy Transfer have had multiple problems in recent years in Pennsylvania. The state stopped work several times and fined the company millions of dollars for spills and other problems related to construction of its Mariner East system, which moves natural gas liquids from Western Pennsylvania to Eastern Pennsylvania.”
Bloomberg: Rover Pipeline, Energy Transfer Sue FERC Over $20 Million Fine
2/2/22
“The Federal Energy Regulatory Commission’s effort to impose a $20 million fine for removing a farmhouse should go through the court system, and not an in-house enforcement proceeding, Rover Pipeline LLC and Energy Transfer LP told a Texas federal court,” Bloomberg reports. “The agency is trying to “deprive” the companies of “vast sums of money by forcing them through” an administrative enforcement action for alleged violations of the Natural Gas Act, the companies argue. But this action is itself barred by the act, according to the lawsuit filed in the U.S. District Court for the Northern District of Texas.”
Buffalo News: National Fuel seeks another extension of pipeline construction deadline
Thomas J. Prohaska, 2/2/22
“National Fuel has again asked federal regulators for an extension of the deadline to complete its long-delayed Northern Access natural gas pipeline,” Buffalo News reports. “Although the Federal Energy Regulatory Commission has usually ruled in National Fuel's favor on the project, a pipeline opponent said Tuesday she hopes President Biden's new appointees to FERC may produce a different outcome. "We're definitely holding out hope this will be denied," Diana Strablow, vice chair of the Niagara Group of the Sierra Club, which has opposed the project since it was first proposed in 2013, told the News. However, National Fuel spokeswoman Karen Merkel told the News the company expects to receive an extension of the completion deadline from Thursday of this week to Dec. 3, 2024. In December 2020, FERC refused to grant an extension of the completion date to December 2024. FERC said the request was premature at that time, but it allowed National Fuel to ask again later. Friday, National Fuel did so. Tuesday, FERC announced a 15-day public comment period that expires Feb. 16. The commission promised action on the extension within 45 days.”
STL Today: Debate over Spire's STL pipeline will drag out for another year, company says
Bryce Gray, 2/2/22
“Spire executives said Wednesday that they expect the debate about the utility’s controversial natural gas pipeline to drag out for another year, as federal regulators weigh the long-term fate of the two-year-old project that courts ruled was improperly approved,” STL Today reports. “At the same time, they promised they’d seek another rate hike, grumbling that regulators recently left Spire with the lowest rate of return of any utility in the state… “The fate of the pipeline rests in the hands of the Federal Energy Regulatory Commission, which continues to weigh the project’s future… “Spire executives said Wednesday that they expect the fight to grind on for at least another year. They said certain components of the agency’s review — like an environmental impact study — likely won’t be complete until around October. A public comment period is set to follow.”
Bloomberg: Plains All American Settles Class Claims Over Illinois Oil Spill
2/1/22
“Plains All American Pipeline LP reached a settlement with Illinois landowners who filed a class action after a pipeline rupture released 4,000 gallons of crude oil onto their properties, the company told a federal court in the state,” Bloomberg reports. “Three individuals alleged nuisance, negligence, and a violation of the federal Oil Pollution Act among other claims in the complaint filed after the 2015 spill in and around Highland, Ill. A pipeline fitting burst at one of Plains All American’s pump stations, and the subsequent spill affected nearby properties and the environment, according to the complaint.”
WickedLocal: Protesters outside the North Shore Chamber of Commerce Insight Breakfast: Energy Forum
2/2/22
“Members of the Red Rebel Brigade cross Elliott Street to protest outside the entrance to the Danversport in Danvers during the North Shore Chamber of Commerce Insight Breakfast: Energy Forum with guest from Enbridge and National Grid on Wednesday, Feb. 2, 2022.”
WASHINGTON UPDATES
FOX Business: Biden administration stoking higher energy prices with oil and gas crackdown, JEC analysis shows
Megan Henney, 2/2/22
“The Biden administration is exacerbating soaring energy prices by cracking down on the oil and gas industry with new regulations that limit production and discourage investments in traditional energy infrastructure, according to a new analysis published Wednesday by the Joint Economic Committee Republicans,” FOX Business reports. “...The JEC study, shared exclusively with FOX Business, shows how President Biden's policies have stoked higher energy prices by "imposing new barriers to accessing American oil and gas reserves, and by discouraging investment in these historically reliable and inexpensive sources of energy." "Washington is sending conflicting messages," the report, authored by economist Hugo Dante and data analyst Kole Nichols, said. "Policymakers seem simultaneously concerned about high prices reflecting the weak supply of oil and gas, while aggressively pursuing an agenda designed to entirely phase-out oil and gas from domestic energy production."
InsideEPA: Oil & Gas Sector Cites Numerous Concerns With EPA’s Methane Plan
2/2/22
“The oil and gas sector is raising numerous objections to EPA’s proposal to strengthen methane limits for the industry, alleging that the agency’s consideration of cost is flawed, it over-relied on recent congressional action, the plan lacks detailed regulatory language and improperly allows federal enforcement for overly tough state standards. The arguments are aired in public comments submitted ahead of a Jan. 31 deadline from groups such as American Petroleum Institute (API). They highlight a balancing act by the industry, with API expressing general support for expanding current requirements but still raising sundry objections to EPA’s November proposal. In addition, API appears to be trying to define as narrowly as possible the effect of last summer’s congressional repeal of a Trump-era methane ‘policy’ rule that eliminated methane requirements and narrowed volatile organic compound (VOC) controls. At issue is EPA’s plan that would strengthen methane and other limits for new sources -- which were reinstated by that Congressional Review Act (CRA) resolution -- and impose first-time methane requirements for existing facilities that would be implemented via state compliance strategies. ‘API supports the cost-effective direct regulation of methane from new and existing sources across the supply chain, and directionally supports the EPA proposal to reduce VOC and methane emissions,’ the group writes in its Jan. 31 comments. The group says this includes general support -- albeit with recommended changes -- for requirements concerning fugitive emissions at wells, compressors, and gas processing plants. It also means support -- contingent again on modifications -- of proposed requirements for new and existing pneumatic pumps, storage vessels, centrifugal compressors, gas well liquids unloading and associated gas from oil wells. Similarly, Business Roundtable says in its comments that it ‘broadly supports the objectives of EPA’s proposed rule,’ and that the plan offers ‘international climate leadership.’ Nevertheless, the group urges EPA to ‘provide a clearer and more certain pathway for the approval of innovative technologies that can be credibly verified to be as effective as those prescribed for leak detection and monitoring.
STATE UPDATES
Aspen Times: Eagle County will challenge Utah rail line’s approval
Scott Miller, 2/1/22
“Eagle County officials are launching an effort to keep rail cars filled with crude oil off the rail line that runs along the Colorado River through much of western Colorado,” the Aspen Times reports. “The U.S. Surface Transportation Board in December approved an application for a new rail line to run from oil fields in Utah to the national rail line that runs roughly parallel to Interstate 70 and the Colorado River. If running at full capacity, the line could carry between three and 10 trains per day, with a maximum daily haul of 350,000 barrels of oil… “Eagle County Commissioner Matt Scherr told the Times the county has a number of worries about the line. Scherr said while the Tennessee Pass line, unused since 1996, isn’t currently being considered for hauling oil, the county is concerned that the Surface Transportation Board could allow use without a broader review… “Eagle County Attorney Bryan Treu told the Times the commissioners and his office believe the Surface Transportation Board made “procedural errors” in its decision. That includes making the transportation decision before an Environmental Impact Statement was completed… “Treu acknowledged that the request may have a hard time passing muster with a federal judge, adding that standards generally defer to federal agencies.”
Long Beach Post: City commission urges Long Beach to end oil drilling, declare a climate emergency
Laura Anaya-Morga, 2/1/22
“The Long Beach Sustainable City Commission recently approved a recommendation intended to accelerate the phase-out of oil drilling in the city and address the climate crisis,” according to the Long Beach Post. “The commission on Jan. 28 voted to draft a memo with recommendations for Mayor Robert Garcia and the City Council that would urge them to declare a climate emergency to halt new oil drilling permits in Long Beach. It also asks the City Council to move more swiftly toward a net-zero emissions economy by expanding rebate programs to encourage decarbonizing buildings and transportation options in Long Beach. The commission’s recommendations would have to be taken up by the City Council for them to carry any legal weight, but the vote advances the cause of local activists who have fought for a quicker pivot away from fossil fuels… “Dowell told the Post the city is relying on money brought in by new wells to fund the high cost of safely capping abandoned wells, a price tag currently estimated at $81 million to $146 million. The commission’s recommendation directs city officials to collaborate with Los Angeles County’s third-party amortization study to accelerate the phase out of all oil operations, increase the state’s contribution to abandonment liabilities and identify alternative sources of revenue and options to help oil field workers transition into new careers.”
Los Angeles Daily News: SoCalGas settles with environmental watchdog group over Aliso Canyon facility
LINH TAT, 2/1/22
“Southern California Gas Co., which operates the Aliso Canyon natural gas storage facility in the San Fernando Valley, will have to monitor benzene levels around its site and alert nearby residents in the event of a future gas leak, according to a binding settlement with an environmental health watchdog group,” the Los Angeles Daily News reports. “The settlement comes more than six years after the storage facility spewed over 100,000 tons of methane and other chemicals into the air, resulting in the largest natural gas blowout in the nation’s history. The gas leak, which was first detected in October 2015 and lasted about four months, exposed residents to a host of chemicals, including benzene, which can cause cancer and harm to the reproductive system… “As part of the latest settlement, SoCalGas did not admit to any wrongdoing. “Settling Defendant denies the factual and legal allegations in the Notices and Complaints and expressly denies any wrongdoing whatsoever,” states the consent judgment, signed by Los Angeles Superior Court Judge Daniel Buckley… “According to the consent judgment, SoCalGas must have up and running within 180 days a system to monitor benzene levels at two locations at the Aliso Canyon site. Thirty days after the monitoring system is operational, if methane levels exceed 25 parts per million for 30 minutes, nearby residents who sign up for text or email alerts shall be notified.”
EXTRACTION
Forbes: Exxon, Chevron Promise Permian Basin Shale Production Boost
David Blackmon, 2/2/22
“Last month, the U.S. Energy Information Administration (EIA) projected that overall domestic crude production would rise by 1 million barrels per day in 2022. With the International Energy Agency (IEA) estimating that global oil demand will rise by 3.3 million barrels per day this year, consumers are going to need all the added production they can get to avoid major increases in gasoline and other energy-related costs,” Forbes reports. “If U.S. energy giants ExxonMobil and Chevron have anything to do with it, the Permian Basin of Texas and New Mexico will play a big role in meeting the EIA’s target. On Friday, Chevron announced during its investor presentation that it plans to raise its Permian production by 10%, which would amount to another 60,000 barrels per day. Not to be outdone, Exxon detailed plans during its own presentation to raise its own Permian volumes by 25% in 2022, which would increase its overall output by 100,000 barrels per day. The announcements by the two majors come as some of the big independent producers in the basin, including EOG Resources and Pioneer Natural Resources, said they are planning to limit their overall production growth to 5% or less in the basin… “Taken together, Chevron and Exxon control roughly 20% of overall oil production in the Permian. On January 18, the EIA projected that total Permian production will achieve a new record high of 5.076 million barrels per day this month… “America’s 2nd-largest oil producing basin according to the EIA, the Bakken Shale, produces just 1.192 million bopd, and the Eagle Ford Shale comes in third at 1.116 million.”
Politico: EXXON’S CARBON, HIGH PRICES
Matthew Choi, 2/2/22
“Exxon Mobil says it’s new “Low Carbon Solutions” business is showing signs of success even without a global, widespread government push for carbon capture technology,” Politico reports. “The company in its latest earnings statement said it has 10 carbon capture projects underway around the world and is fielding interest from potential customers looking to cut their emissions. Low Carbon Solutions, which Exxon created in 2021, “is rapidly expanding, utilizing existing [global] policy,” Exxon Chief Executive Darren Woods said during the company’s earnings call on Tuesday.”
Gizmodo: Exxon "Cares"
Molly Taft, 2/2/22
“There are changes ahead at ExxonMobil. On Monday, the oil giant announced major shakeups in how it will do business moving forward—and continued its attempts to convince the public that it’s working towards a brighter climate future. The company is relocating offices, restructuring, and touting a new flashy but dubious “low carbon” division,” Gizmodo reports. “...Never mind that a lot of the technologies that form the backbone of this new division are seriously questionable and, in some cases, may actually increase emissions. Never mind that the company’s net zero plan may not do anything beyond make them more efficient at drilling for oil and gas. Never mind that “low carbon” is a largely bullshit term that doesn’t really mean anything. Never mind that some of these “lower-emission energy solutions” will be created to support operations at the company’s other two divisions—namely, developing slightly less polluting technologies that could keep oil flowing and energy pouring into new plastic production… “For all the lip service Exxon might start paying to “low-carbon technologies,” it’s important to remember: it’s still an oil company, through and through.”
Rigzone: Companies Team Up To Develop Full Value Chain CCUS Offering
Eldina Jahic, 2/1/22
“Aker Carbon Capture, Altera Infrastructure, and Höegh LNG have entered a non-exclusive collaboration to explore a full value chain offering for carbon capture, utilization, and storage (CCUS),” Rigzone reports. “The parties will collaborate on offering carbon capture as a service to industrial emitters, enabling the implementation of the full value chain needed to realize carbon capture, utilization, and storage projects for industrial emitters… “Altera Infrastructure and Höegh LNG are global maritime and infrastructure companies, providing services in the CCUS value chain including gaseous and liquid CO2 gathering, purification, liquefaction, transportation, and permanent underground storage of CO2. The two are involved in the Stella Maris CCS project which covers large-scale transport with the shuttling of CO2 to an offshore site for injection and permanent storage in a relevant subsea reservoir. Höegh LNG operates floating LNG import terminals, floating storage and regasification units, as well as LNG carriers while Altera is focused on the ownership and operation of FPSOs, shuttle tankers, towing vessels, and a unit for maintenance and safety.”
Bloomberg: Oilsands emissions could start to fall in next five years, research says
Robert Tuttle, 2/2/22
“Total greenhouse-gas emissions from Canada’s oilsands could begin to fall in the next five years as pollution per barrel has already been declining since 2009, IHS Markit said,” according to Bloomberg. “Greenhouse gas intensity from the region has fallen by a yearly average of 1.5 kilograms of carbon dioxide equivalent per barrel since 2009, the research firm said. The largest oil sands companies, facing opposition from some investors due to the industries larger-than-average effect on climate change, have pledged to achieve net-zero emissions from their operations by 2050, mostly by using carbon capture and storage technology. Unlike shale or conventional energy companies, oilsands producers need not spend cash on constantly drilling new wells just to keep production going. Even during the pandemic, when a reduction in output was expected to increase emissions per barrel because of less efficiency, the intensity also declined, Kevin Birn, chief Canadian oil market analyst for IHS Markit, said in the report.”
Press release: Questerre polling data confirms majority of Quebecers support developing natural gas with new technologies
2/2/22
“Questerre Energy Corporation reported today the recent Quebec polling results on developing natural gas with new technologies. Over 66% of decided Quebecers support local natural gas development and 20% have no opinion. This support increases to 74% with only 15% against if new technology is used to eliminate emissions, the use of municipal water systems and the use of toxic fluids below ground and 11% have no opinion. Michael Binnion, President and Chief Executive Officer of Questerre, commented, “Over three years ago, the current Government made it clear to us that their approval for our project depended on demonstrating social acceptability. We have since worked closely with stakeholders to understand their concerns. This polling data and the support of local towns, farmers, trade unions and First Nations shows the progress we have made to achieve this goal.”
CLIMATE FINANCE
BlackRock’s Big Problem: BlackRock to Clients: Navigating Climate Transition is the New Standard
2/3/22
“Today, BlackRock published its annual letter to clients and centered it on climate issues and how to navigate the energy transition. A key statement BlackRock makes is that the question is no longer whether a transition to a decarbonized economy will happen, but how,” according to BlackRock’s Big Problem. “ Together with the letter, the asset manager released a report introducing a framework for how to invest in the transition to net zero. However, a 2030 interim decarbonization target and disclosure of the share of BlackRock’s assets already on track with its net zero goal have not yet been released, despite the investment firm announcing in last year’s letter to clients that these metrics would be made available in 2021. “BlackRock is making it clearer than ever that the transition to a clean energy economy is inevitable, and the key questions are how fast we will progress and which businesses will fail to seize the opportunities that lie ahead,” said Ben Cushing, Fossil-Free Finance Campaign Manager with the Sierra Club: “BlackRock is putting in place the measures needed to help investors navigate the transition, but the accelerating climate crisis means that the gap between current progress and the action that’s needed is ever-growing. BlackRock deserves credit for its leadership thus far, but successfully navigating and leading the transition will require hard choices about how to stop investing in the companies holding us back.”
The Conversation: Alberta oilpatch may face lending crunch as financial regulators worry about the risks of climate change
Robert L. (Bob) Ascah, 2/2/22
“New battle lines are being drawn between Canada’s financial regulators and Alberta’s oilpatch over the country’s climate change policies,” The Conversation reports. “The Bank of Canada and Canada’s Office of the Superintendent of Financial Institutions (OSFI) recently released a pilot study that looked at how prepared Canada’s financial institutions are in understanding and managing climate change risks. The study found that the creditworthiness of oilsands producers will fall dramatically over the next three decades… “The pilot study reported findings from a sample of six large financial institutions, including the Royal Bank of Canada, TD Bank Group, Intact Financial Corporation, Co-operators Group Limited, Sun Life Financial and Manulife Financial Corporation. These firms have loaned $240 billion to companies in climate-exposed sectors. Of this total, about $70-billion is to the oil and gas industry… “The study’s key finding was that the probability of default to exposed sectors would rise over time. This was especially true in the case of oilsands producers. Their probability of default was estimated to rise by at least 400 per cent by 2050 under the 2 C immediate scenario. The probability of default for other oil and natural gas producers was expected to rise by 200 per cent. In contrast, the probability of default for a renewable electricity producer is expected to fall by up to five to 15 per cent.”
E&E News: Fed nomination ignites debate over bank’s climate role
Avery Ellfeldt, 2/3/22
“Sarah Bloom Raskin’s nomination to serve as the Federal Reserve’s top bank cop is kicking up a lot of dust over the central bank’s role in addressing climate change — and where President Biden’s pick falls on the issue,” E&E News reports. “Lawmakers, green groups and financial experts have outlined sharply different positions in advance of today’s 8:45 a.m. nomination hearing before the Senate Committee on Banking Housing and Urban Affairs… “That said, her nomination already has led to partisan skirmishing. Republicans and the oil and gas industry, for their part, have accused the nominee of being a “radical” who would inappropriately use her role at the Fed to “de-bank energy companies.” Progressive groups, the White House and a growing number of financial regulation experts, meanwhile, argue that the former Fed governor and deputy Treasury secretary is highly qualified for the job — and that while she’s certainly been outspoken on climate, her past comments on the topic are squarely in the mainstream… “In speeches, op-eds and public appearances over the two years, the former Fed governor and Treasury Department official has made the case that absent intervention, the consequences of both climate change and the clean energy transition have the potential to destabilize finance firms and the broader system they constitute. As a result, she’s argued, financial regulators including the Fed have a responsibility to examine those risks more carefully and ensure that the lenders they oversee are doing the same. Raskin also has floated potential tools regulators could use to mitigate threats, such as scenario analysis to gauge banks’ climate preparedness. Another possible option down the line, she has said, could be setting portfolio limits that would “assist a financial firm in checking their exposure to potential losses and costs.”
Bloomberg: Tamarack Sells First SLB From a North American Oil Producer
Esteban Duarte, 2/2/22
“Tamarack Valley Energy Ltd. sold a sustainability-linked bond, the first such sale by an oil and gas driller in North America, according to an underwriter of the offering,” Bloomberg reports. “The Calgary-based company priced C$200 million ($173 million) of bonds maturing May 2027 at a yield of 7.25%, according to people with knowledge of the matter. The transaction will include an interest rate increase of as much as 100 basis points should Tamarack fail to reach certain targets for reduction of greenhouse-gas emissions and hiring of indigenous people, the people told Bloomberg. “It is encouraging to see that Tamarark Valley ties its financing to their carbon intensity target but they will need to execute on operational efficiencies,” Aaron Young, associate portfolio manager at RP Investment Advisors LP, told Bloomberg, who added that the company’s carbon intensity rose between 2019 and 2020 due to factors including acquisitions. The “target for indigenous workforce representation is a positive development.” Sustainability-linked bonds generally penalize issuers with higher borrowing costs if they don’t meet certain environmental, social and governance metrics. If the borrower meets or exceeds targets, coupons remain unchanged. In contrast to green bonds, companies can use deal proceeds as part of their general funding plans.”
TODAY IN GREENWASHING
MyMuskokaNow: Enbridge grant funds new training materials for HLOB Fire Department
Martin Halek, 2/2/22
“The Huntsville Lake of Bays Fire Department (HLOB) has bought training materials with a $5,000 grant from Enbridge Gas,” MyMuskokaNow reports. “The department is one of 50 receiving a chunk of the $250,000 Safe Community Project Assist program this year. Larry Brassard, HLOB’s Interim Fire Chief, told MyMuskoka the funding is a great help towards training. “$5,000 is quite a significant bonus for us in that sense,” says Brassard. “We’re using it, of course, to purchase educational materials that all complement the training that we do here, as well as building code and fire code material. Just a great initiative, we’re so thankful for it.”
OPINION
The Hill: Tackling methane leaks is a climate win — but lets polluters off the hook
Andreas Karelas is author of the book “Climate Courage: How Tackling Climate Change Can Build Community, Transform the Economy, and Bridge the Political Divide in America” published by Beacon Press, 2/2/22
“This week, the Biden administration took one of its more formidable actions for the climate yet. It mobilized $1.15 billion from the bipartisan infrastructure package, signed into law in November, to start capping abandoned oil and gas wells,” Andreas Karelas writes for The Hill. “...Oil and gas companies dug these wells and left these holes in the ground leaking contaminants, after getting what they came for. Yes, some of the companies who initially dug the wells have gone out of business, but what about the ones who are still operating, creating more methane leaking wells in more communities — just business as usual? Does taxpayers footing the bill to clean up their mess send a message that they should change their practices? But the infrastructure bill also includes $1 billion for “modernizing natural gas pipelines.” Really? Are we still going to invest in the dirty energy infrastructure of the past? When will we stop investing in an “all of the above” energy strategy and start making the clean renewable energy investments we need and were promised? We need to stop new wells from being drilled, stop new homes and power plants from being designed to burn natural gas, get on with the process of decarbonizing our economy, as well as electrifying everything as fast as possible… “We now have (and have for some time) all the technology we need to power everything with clean renewable energy — from shipping, to heavy industry, to our stovetop cooking. Please, let’s stop letting the fossil fuel industry write our policies as it profits on pollution — and let’s stop letting them off the hook by cleaning up their messes for them.”
The Hill: Climate change beats Big Oil and Biden in court
Deborah Brosnan, Ph.D., is an environmental scientist and a marine resilience specialist, working to bolster science in decision-making involving the environment, endangered species, energy development, sea-level rise, climate change and environmental hazards, 2/2/22
“Last Thursday was not a good day for Big Oil and it was a dubious one for the Biden administration,” Deborah Brosnan writes for The Hill. “...A district court judge in Washington D.C. canceled oil and gas leases covering more than 80 million acres in the Gulf of Mexico, auctioned at a cost of around $192 million – the largest lease sale in U.S. history. Shell, BP, Chevron and Exxon Mobil had bid for the rights to drill in about 1.7 million acres in the area offered by the government for sale. The reason? Simple, the Biden administration did not account for the impact of drilling on climate change and emissions of greenhouse gases (GHG)... “No question about it, this ruling is a game-changer. Even if the administration isn’t living up to its promises, the courts are demanding that the government take climate change into account in decisions impacting ecology, ecosystems and the environment. And Biden is being held accountable by voters. Big Oil took another beating, but this ruling should be a wakeup call for any industry or company whose activities impact climate change — and not just looking at where their products are sold in the U.S., but internationally. Climate change is a reality, and we’ll all increasingly feel the consequences. That reality applies to companies that will feel the business consequences if they don’t take action today.”