EXTRACTED: Daily News Clips 2/8/22
PIPELINE NEWS
Roanoke Times: Future of Mountain Valley Pipeline clouded by court decisions
Albuquerque Journal: Carbon capture will require massive pipeline construction
Press release: NATURAL LAW ANNOUNCES PLANS TO SEEK COMPENSATION OVER KEYSTONE EXPANSION CANCELLATION
The Storm Lake Times: BV County updates pipeline ordinance
StopLine3.org: CITIZENS EXPOSE GROSS INADEQUACIES IN ENBRIDGE LINE 5 DRAFT EIS, TELL DNR TO DO THEIR JOB
Associated Press: Pipeline's safeguards not working in Louisiana diesel spill
NorthEscambia.com: 36 Gallons Of Crude Oil Spilled From Pipeline Near Century
WASHINGTON UPDATES
Reuters: Factbox: Biden administration sees carbon capture as key tool in climate fight
InsideClimate News: The Biden Administration Rethinks its Approach to Drilling on Public Lands in Alaska, Soliciting Further Review
InsideEPA: Environmentalists Cite Small Wells, Flaring To Bolster EPA Methane Rule
STATE UPDATES
Albuquerque Journal: Debating the promise and perils of carbon capture in New Mexico
Texas Tribune: Earthquakes in Texas doubled in 2021. Scientists cite years of oil companies injecting sludgy water underground.
E&E News: Mont. kids’ climate case may be first to go to trial
WyoFile: Lawmakers want to reimburse fossil fuel producers to offset fed royalty hike
Carlsbad Current-Argus: 420,000 gallon oil, water spill reported east of Carlsbad. State works to clean up the site
InsideClimate News: A California Water Board Assures the Public that Oil Wastewater Is Safe for Irrigation, But Experts Say the Evidence Is Scant
EXTRACTION
Guardian: Rightwing lobby group Alec driving laws to blacklist companies that boycott the oil industry
Reuters: Spanish oil major Repsol considering selling parts of its Canadian assets, sources say
CLIMATE FINANCE
Reuters: Oil and gas bankers confront their own energy transition
Insure Our Future: CLIMATE LAGGARD TRAVELERS ADOPTS COAL & TAR SANDS POLICY
Stop the Money Pipeline: Toxic Money: Wall Street’s Trillion Dollar Gamble With our Economy and Planet
OPINION
The Daily Poster: The Pipeline Trap: Federal officials are approving fossil fuel projects that enrich shareholders, fleece customers, and exacerbate the climate crisis.
Cleveland Plain Dealer: Top-down reform of PUCO and its nominating process is needed
OilPrice.com: Big Oil Isn’t Losing Any Sleep Over The EV Revolution
PIPELINE NEWS
Roanoke Times: Future of Mountain Valley Pipeline clouded by court decisions
Laurence Hammack, 2/6/22
“For four years now, the half-mile hike from David Seriff’s front door to a ridgetop has offered the same vista: a 125-foot-wide trough plowed up one side of the mountain and down the other. Along the route, segments of an unfinished natural gas pipeline lie in a state of suspended animation. Seriff is a declarant in lawsuits that seek to stop the Mountain Valley Pipeline,” the Roanoke Times reports. “A federal appeals court recently rejected two government permits that are needed to complete a massive infrastructure project that opponents say is an environmental train wreck. “I think it’s another nail in the coffin,” he told the Times, of the 4th U.S. Circuit Court of Appeals’ Jan. 25 reversal of a permit allowing the pipeline to pass through the Jefferson National Forest, which abuts his home north of Blacksburg. A second ruling last Thursday invalidated a finding that endangered species would not be jeopardized. “But we haven’t killed the beast.” If the complex regulatory and legal proceedings that have enveloped the 303-mile pipeline since 2018 could be reduced to a simple baseball analogy, Mountain Valley has two strikes against it… “If the pipeline is to survive, government agencies must again rewrite permits to satisfy the Fourth Circuit — which has been perhaps the biggest challenge for developers since they first announced the project nearly a decade ago… “Regulatory agencies or the courts may not kill Mountain Valley outright. But opponents hope that the costs and delays caused by their legal challenges will eventually force investors to give up. “They’re eight years in, $3.5 billion over budget, and four years behind schedule,” Hansley told the Times. If the pipeline is to be stopped, she told the Times, “I don’t think we’ve ever had a stronger case than we do now.”
Albuquerque Journal: Carbon capture will require massive pipeline construction
KEVIN ROBINSON-AVILA, 2/5/22
“The inherent dangers of capturing and transporting carbon dioxide for industrial operations exploded into the public domain two years ago when a CO2 pipeline suddenly ruptured in the tiny Mississippi town of Satartia,” the Albuquerque Journal reports. “The pipeline burst open in the early evening of Feb. 22, 2020, releasing a plume of carbon dioxide that within minutes engulfed Satartia and surrounding areas. It sickened scores of residents, sending 49 people to hospitals and forcing the evacuation of at least 250 others… “During the event, people collapsed in their homes and vehicles, according to the report. Others wandered around dazed, nauseated and gasping for air. “Even months later, the town’s residents reported mental fogginess, lung dysfunction, chronic fatigue and stomach disorders,” wrote Dan Zegart, CIC senior investigator and report author. The incident highlights the potential risks many more U.S. communities could face if carbon capture and sequestration technology is widely deployed, Zegart told the Journal in a recent interview. To manage the billions of tons of CO2 that industry and federal policy makers hope to trap over time from industrial operations across the nation, a new, continent-wide network of CO2 pipelines is needed to transport captured carbon to special locations equipped for permanent storage in deep, underground geologic formations… “The sheer cost of building the network alongside CCS deployment could reach trillions of dollars, especially given the special requirements to make CO2 pipelines safe, Zegart told the Journal. CO2 is highly corrosive, particularly if contaminated by water, requiring robust pipeline structures to contain it and careful monitoring of gas purity… “No one is really talking about the CCS pipeline issues, but transporting the CO2 is really the fly in the ointment,” Zegart told the Journal. “It requires a huge network that’s much more expensive to build than other pipelines, and it will go through many highly populated areas across the country. Getting public buy-in may be the biggest problem.”
Press release: NATURAL LAW ANNOUNCES PLANS TO SEEK COMPENSATION OVER KEYSTONE EXPANSION CANCELLATION
2/7/22
“Natural Law, a sovereign organization which represents many sovereign members and Nations, intends to pursue a claim in challenging U.S. President Joe Biden's cancellation of the Keystone XL pipeline under the United States–Mexico–Canada Agreement (USMCA) or through their Treaty and other rights as original sovereign people. In September of 2020, after three seasons of hard work and traditional Governance with ceremonial engagement, Natural Law Energy (NLE) and TC Energy (TCE) signed a historic Memorandum of Understanding. This was for NLE to pursue an equity interest in the Keystone XL Project and other potential related midstream and power projects, with the first of these being the Keystone Pipeline System expansion… “There was much skepticism amongst all the Nations and their leaders about becoming involved with Keystone, but the prospect of it providing responsible resources via the related returns in excess of $1 Billion of investment was deemed worth pursuing… “Now as TCE moves forward with seeking over $15 Billion in compensation from the U.S. government for the KXL cancellation, Natural Law as a sovereign organization intends to create a path and process forward… "I came to this process with a big vision for our people and the generations to come. I stand by that vision and look forward to moving ahead with a claim," said Alvin Francis, Chief Nekaneet First Nation.”
The Storm Lake Times: BV County updates pipeline ordinance
Tom Cullen, 2/4/22
“The Buena Vista County Board of Supervisors updated an ordinance for pipelines crossing the county’s drainage districts, a response to Navigator CO2’s proposed pipeline that is mapped from Sioux Rapids to Albert City as part of a larger 1,300 mile project,” The Storm Lake Times reports. “Drainage Engineer Brian Blomme proposed four updates to the county’s original ordinance the board passed in 2015: It named him as the county’s drainage engineer; the previous ordinance designated ISG staff. It banned contractors from installing the pipeline or repairing it when the soil is too wet. It eliminated the possibility of a CO2 pipeline being installed above drainage tile. It must be installed below the tile without exceptions. And it imposed fees for every instance the contractor breaks ground on a drainage district. The previous ordinance imposed fees on the first time ground was broken, not subsequent attempts.”
StopLine3.org: CITIZENS EXPOSE GROSS INADEQUACIES IN ENBRIDGE LINE 5 DRAFT EIS, TELL DNR TO DO THEIR JOB
Barbara With & Rebecca Kemble, 2/6/22
“On February 2, 2022, over 250 people attended the Wisconsin DNR public hearing to respond to the Enbridge Line 5 draft Environmental Impact Statement (EIS),” StopLine3.org reports. “The replacement pipeline is being proposed to be built through the Bad River watershed on the shores of Lake Superior. The 10-hour hearing revealed an overwhelming opposition to the project, with 147 people (88%) testifying against, and 20 (12%) in favor. Citizens who oppose the building of the pipeline through the Bad River watershed commented on the 400+ page statement, bringing to light the fatals flaws of Enbridge’s plan. There were repeated demands that the DNR do their job to address the myriad of deeper problems in the EIS… “Enbridge seemed to have prepared a handful of construction trade unions, industry associations and pipeline contractors who read the corporation’s statement, repeating the same talking points. Although the purpose of the hearing was to receive comments on the draft EIS, none of those testifying in support addressed the EIS itself. Instead they spoke another on the potential economic impact of Line 5, focusing only on “700 ‘good-paying’ jobs,” “$6 million in taxes paid” and “$36 million in potential tax revenue.” They also insisted that Enbridge is “honoring” the Bad River Band of Lake Superior Chippewa by moving the pipeline outside of “Tribal boundaries.” However, according to Bad River Chairman Mike Wiggins Jr.: “The Line 5 re-route is potentially even more harmful to the Bad River people. He said, “The crux of the issue is that they are in our hydrologically connected waterways and water aquifers.”
Associated Press: Pipeline's safeguards not working in Louisiana diesel spill
MATTHEW BROWN and JANET McCONNAUGHEY, 2/7/22
“A corroded pipeline that ruptured and spilled 350,000 gallons (1.6 million liters) of diesel fuel into a New Orleans area wetland did not have a fully functioning leak detection system at the time, according to federal records, which also show the spill was larger than previously reported,” the Associated Press reports. “Two of three components of a leak detection system for the 16-inch (40-centimeter) pipeline did not issue alarms as they were supposed to when it broke just east of New Orleans on Dec. 27, 2021, Collins Pipeline Company disclosed in an accident report submitted to federal regulators… “Quickly detecting pipeline ruptures is crucial to containing environmental damage. Yet coming up with systems that can do so reliably has been a longstanding challenge for the industry… “Collins initially estimated that as few as 8,400 gallons (38,200 liters) of diesel were released, then updated that days later to just over 300,000 gallons (1.4 million liters). On Jan. 27, the company increased its estimate yet again, to 350,000 gallons, the accident report shows. The diesel flowed into two man-made ponds and killed thousands of fish and dozens of birds, turtles, alligators and other animals. Most of the fuel was recovered but the accident caused an estimated $3.8 million in property damages, according to the company.”
NorthEscambia.com: 36 Gallons Of Crude Oil Spilled From Pipeline Near Century
2/7/22
“About 36 gallons of crude oil were spilled during an incident east-northeast of Century Sunday morning,” NorthEscambia.com reports. “According to a Florida Department of Environmental Protection notice, a release occurred at 6:33 a.m. on a St. Regis Gas Treating Facility production line located in Escambia County, Florida. An employee saw steam release from the site and notified the field lead and control room senior operator, and the production line was isolated by 7:10 a.m. A vacuum truck was called to remove any fluids. According to the FDEP notice, about 136.2 barrels of produced water and rainwater mix and 36 gallons of crude oil were recovered.”
WASHINGTON UPDATES
Reuters: Factbox: Biden administration sees carbon capture as key tool in climate fight
By Leah Douglas, 2/7/22
“U.S. President Joe Biden wants to achieve net-zero greenhouse gas emissions by 2050 to fight climate change, a plan that will require not just steep cuts in carbon output but also wider use of negative emissions technologies that can clear up the emissions that remain,” Reuters reports. “While there are many ways to soak up carbon from the atmosphere - ranging from tree planting to engineering changes in ocean currents - the administration and many polluting industries are betting on carbon capture and storage (CCS) as among the most promising methods… “According to the Department of Energy (DOE), there are enough underground geological sites in the United States to store 2.6 trillion tons of carbon dioxide, as much as the country has ever emitted plus centuries of future emissions. But capturing, transporting and injecting carbon underground can be expensive, and there are questions about whether it can be done reliably, safely, and economically at scale. With over $7 billion in taxpayer funds spent on CCS development since 2010, Congress is now mulling an administration-backed plan to expand subsidies for companies that employ CCS. There are 12 active CCS projects in the United States so far, according to the Global CCS Institute, which tracks the industry. Together they have the capacity to store 19.64 million tons of carbon, roughly 0.4% of national emissions. Only one of these projects, the Illinois Industrial Carbon Capture and Sequestration Project run by Archer-Daniels-Midland Co (ADM.N) in Decatur, Illinois, injects its carbon for permanent storage underground… “Despite the billions of dollars in investment to date, the CCS industry has failed to meet expectations. A recent report from the Government Accountability Office found that of $1.1 billion invested by the Department of Energy in nine CCS projects between 2010 and 2017, just two are currently operational… “But if new projects perform better, the technology could provide polluting technologies a lifeline, allowing them to continue operating without running afoul of climate mandates.”
InsideClimate News: The Biden Administration Rethinks its Approach to Drilling on Public Lands in Alaska, Soliciting Further Review
Nicholas Kusnetz, 2/4/22
“The Biden administration will give the public a new opportunity to weigh in on a major oil project proposed in the Alaskan Arctic, handing a victory to environmental groups that have opposed the development,” InsideClimate News reports. “In an announcement late Thursday, the Bureau of Land Management said it would solicit comments about the Willow project, which would pump about 590 million barrels of oil over 30 years from a rapidly-warming ecosystem on Alaska’s North Slope. The ConocoPhillips project was approved in the final months of the Trump administration, but its future was thrown into doubt after a federal court in Alaska vacated the approval last year and sent the project back to the BLM for further environmental review. The Biden administration initially supported the project by defending it in court, but then declined to appeal last year’s ruling. Climate advocates had called on the BLM to open a public “scoping period” as part of the court-ordered review of Willow, and they said Thursday’s announcement was a sign that the Biden administration may be taking their concerns seriously. “The agency is going to start from the very beginning to assess the project,” Layla Hughes, an attorney with Earthjustice, an environmental law nonprofit that represented Indigenous and climate advocates in one of two lawsuits challenging the project that led to last year’s court ruling, told ICN. Hughes and other advocates had described Willow as a major test for the Biden administration’s climate policy, and had expressed concern that the BLM was conducting a narrow review in response to the court ruling, rather than taking a broader look at environmental and climate impacts. Advocates argue that such a review would show that the project should not proceed at all, given the urgency of limiting global warming and protecting a melting Arctic. With Thursday’s announcement, Hughes told ICN, “the agency is basically signaling its intent to meaningfully assess the project. Whether or not it does, we’ll have to see.”
InsideEPA: Environmentalists Cite Small Wells, Flaring To Bolster EPA Methane Rule
2/4/22
“Environmental groups are bolstering their calls for stringent limits on oil and gas sector methane pollution with new analysis of foregone emissions cuts if EPA does not strengthen its proposed requirements for smaller wells, while also citing a new report highlighting cost-effective options for curbing gas flaring. The arguments surface in broader Jan. 31 comments from a coalition of 18 environmental groups regarding EPA’s November proposal to establish or strengthen methane and volatile organic compound (VOC) emissions standards for oil and gas operations. The comments also highlight an array of suggestions on technical issues, including endorsement of alternative monitoring methods if they produce equivalent methane reductions -- as well as a broad legal defense of EPA’s threshold authority to impose methane limits on the oil and gas sector. ‘Covering smaller, leak-prone wells with frequent inspections is critical, as our analysis here shows that EPA’s currently proposed one-time-only inspections at these well sites could reduce the overall effectiveness of its Leak Detection and Repair (LDAR) program by as much as half,’ the coalition writes. Groups signing the comments include the Environmental Defense Fund (EDF), Clean Air Task Force, Environmental Law and Policy Center, Natural Resources Defense Council, Sierra Club, National Parks Conservation Association, Wyoming Outdoor Council, and many others. At issue is EPA’s proposed oil and gas emissions plan, including fugitive emissions provisions that would allow smaller wells -- those with a potential to emit of less than 3 tons per year (tpy) of methane -- to conduct one-time rather than regular leak inspections. The comments cite an EDF-generated estimate that EPA’s proposed rule could reduce 2026 oil and gas sector methane emissions by over 6.7 million metric tons -- from a 17 million-ton baseline that includes existing EPA and state emissions programs. Almost half of that reduction, or over 3.7 million tons, is due to the fugitive emissions program.”
STATE UPDATES
Albuquerque Journal: Debating the promise and perils of carbon capture in New Mexico
BY KEVIN ROBINSON-AVILA, 2/5/22
“Carbon capture and sequestration technology is rapidly gaining momentum in national and global debate over how best to combat climate change, and New Mexico has a major role to play,” the Albuquerque Journal reports. “Industry efforts to equip carbon-emitting facilities in both the Northwest and Southeast corners of the state with carbon capture and sequestration, or CCS, systems are steadily advancing, spurred on by federal tax incentives to promote such projects. And Gov. Michelle Lujan Grisham’s administration is aggressively supporting those plans, proposing new rules, regulations and state incentives that could position New Mexico to win a share of billions of dollars in forthcoming federal funding to accelerate the deployment of CCS technology… “Supporters say CCS technology is well-developed and ready for broad deployment, providing a critical bridge to economy-wide decarbonization as the U.S. and other countries continue to construct renewable-based generation. But most environmental organizations are adamantly opposed to CCS as a “greenwashing” ploy by the fossil fuel industry to perpetuate oil and gas production — and even coal-based generation — well into the future. The technology, they say, has yet to be proven environmentally effective and economically viable on any commercial or utility-scale project to date, and it will require massive investments backed by federal and state subsidies to build out the complex infrastructure needed to make it work. Even then, success is far from guaranteed, potentially leading to stranded assets, massive financial waste, and a critical loss of time and resources at a moment when society urgently needs to pursue non-carbon technologies like solar, wind and battery storage. Renewable development should be today’s top priority to both decarbonize the electric grid, and to replace fossil-fuel consumption with clean electricity to power up basic things like transportation or the heating and cooling of homes and buildings, Noah Long of the Natural Resources Defense Council, told the Journal. “The good news is, renewables combined with investments in energy efficiency can get us nearly all the way to a zero-carbon economy quickly and cost effectively,” Long told the Journal. “In contrast, carbon capture and sequestration is still largely untested and expensive, and it has real risks.”
Texas Tribune: Earthquakes in Texas doubled in 2021. Scientists cite years of oil companies injecting sludgy water underground.
ERIN DOUGLAS, 2/8/22
“One local said it sounded like a pickup truck had rammed into the side of their house. Another said it sounded like the air conditioner fell off the roof. A third compared the experience to getting off of a rollercoaster, dizzy and a bit shaky,” the Texas Tribune reports. “...More than 200 earthquakes of 3 magnitude and greater shook Texans in 2021, more than double the 98 recorded in 2020, according to a Texas Tribune analysis of state data maintained by the Bureau of Economic Geology at the University of Texas at Austin. The record-setting seismic activity is largely concentrated in West Texas’ Permian Basin, the most productive oil and gas region in the state. Scientific studies show that the spike in earthquakes is almost certainly a consequence of disposing huge quantities of contaminated, salty water deep underground — a common practice by oil companies at the end of the hydraulic fracturing process that can awaken dormant fault lines… “For years, oil companies have loaded those formations with hundreds of millions of gallons of the black watery mixture — which contains a slurry of minerals, oil and chemicals used in fracking — every day, slowly increasing the pressure on ancient fault lines. An analysis by Rystad Energy provided to The Texas Tribune found that the amount of wastewater injected underground in the Permian Basin quadrupled in a decade, from 54 billion gallons in 2011 to 217 billion gallons last year.”
E&E News: Mont. kids’ climate case may be first to go to trial
By Lesley Clark, 2/8/22
“A group of young people suing the state of Montana over the effects of global warming may be the first U.S. youth climate coalition to be heard in court,” E&E News reports. “Attorneys from Our Children’s Trust, an Oregon-based public-interest law firm that handles a number of kid-centered climate lawsuits in the United States, said yesterday that the Montana case will go to trial Feb. 6, 2023, at the 1st Judicial District Court in Helena. The 16 challengers in Held v. State of Montana filed suit in March 2020, calling on the courts to declare the state’s energy policies unconstitutional. District Judge Kathy Seeley last August rejected Montana’s attempt to stop the case from proceeding to trial. “Montana has a long history of promoting fossil fuels and exacerbating the climate crisis, and we are hopeful our case could turn over a new leaf for the state and its youth,” Melissa Hornbein, an attorney for the plaintiffs and senior attorney at the Western Environmental Law Center, told E&E. She noted that the state is one of only a handful that “recognizes a fundamental right to a clean and healthful environment, and that includes the climate.” “...The case is one of several that Our Children’s Trust is pursuing, though judges have often found that the issues raised in the suits should be addressed by lawmakers, not by judges.”
WyoFile: Lawmakers want to reimburse fossil fuel producers to offset fed royalty hike
Dustin Bleizeffer, 2/4/22
“Some Wyoming lawmakers want to provide a tax refund to fossil fuel producers to help offset a potential federal mineral royalty rate hike,” WyoFile reports. “The Select Federal Natural Resource Management Committee on Thursday unanimously passed the Mineral royalties proportional severance tax relief, version 1.1 bill for introduction to the full Legislature in the upcoming budget session that begins Feb. 14. Wyoming would dip into the bucket of money earned from state-imposed severance taxes on fossil fuels and write a check to each producer “equal to” a federal royalty rate increase, according to the draft bill. The state would then backfill those severance tax dollars with its share of federal mineral royalty payments. The proposed refund program is based on the expectation that any increase in federal mineral royalty rates would be applied to newly leased federal minerals and not to minerals already under lease and production. About half the state’s surface and nearly 70% of the underlying mineral estate is federal. Nearly 53% of the state’s annual revenue comes from mining federal coal and extracting federal oil and natural gas, according to the Wyoming Taxpayers Association. Although an increase in the federal rates could generate more royalty revenue for Wyoming and all American taxpayers, lawmakers worry it would curtail production rates in the state and result in job losses and other ancillary losses that could result in a net-negative economic impact at home.”
Carlsbad Current-Argus: 420,000 gallon oil, water spill reported east of Carlsbad. State works to clean up the site
Adrian Hedden, 2/5/22
“About 420,000 gallons of oil-contaminated water was spilled in an area about 5 miles east of Carlsbad last fall and the state just recently completed clean-up efforts,” the Carlsbad Current-Argus reports. “The spill, reported in October 2021, sent a mixture of water and petroleum flowing across U.S. Highway 62/180, impacting nearby homes and a trailer park in the area. It originated from an illegal surface water management facility, per a notice from the New Mexico Energy, Minerals and Natural Resources Department (EMNRD), that was unlicensed and owned by a private landowner. Remediation work, led by EMNRD’s Oil Conservation Division (OCD) saw the division removing about 391 cubic yards of contaminated soils and other material, while backfilling 513 cubic yards of clean soil and material, and gathering 100 soil samples from the area. The work cost about $400,000, records show, which was taken from the State’s Oil Reclamation Fund to expedite the process. EMNRD spokesperson Susan Torres told the Argus the Department planned to file litigation to recoup the taxpayer dollars and assess fines on the owner of the site.
InsideClimate News: A California Water Board Assures the Public that Oil Wastewater Is Safe for Irrigation, But Experts Say the Evidence Is Scant
Liza Gross, 2/6/22
“After years of controversy, the Central Valley Regional Water Quality Control Board assured the public in the fall that eating California crops grown with oil field wastewater “creates no identifiable increased health risks,” based on studies commissioned as part of an extensive Food Safety Project. Yet a review of the science and interviews with a public health scientist affiliated with the project and other experts show that there is scant evidence to support the board’s safety claims,” InsideClimate News reports. “The “neutral, third-party consultant” the board retained to conduct the studies, GSI Environmental, has regularly worked for the oil industry. That work includes marshaling evidence to help Chevron, Kern County’s biggest provider of produced water, and other oil giants defend their interests in high-stakes lawsuits around the country and globe. GSI did not tell water board officials about its ties to the oil industry, which shared the roughly $3.4 million in costs for the firm’s studies and related work with the water districts that benefit from the distribution of wastewater from oil extraction, known as “produced water.” One member of the board’s Food Safety Expert Panel that reviewed GSI’s studies was nominated by Chevron and initially paid by the oil industry, and a second panel member worked as a consultant for an oil company selling produced water. Still, the expert panel’s own review concluded that GSI’s studies could not answer fundamental safety questions about irrigating crops with produced water. Thomas Borch of Colorado State University, a leading expert on treating and reusing produced water for crop irrigation who was not involved in the project, told ICN that based on the data GSI had and the way they designed the experiments, “they were not able to draw the conclusions they did. Period.” “...Testing crops for harmful chemicals to figure out if they’re safe to eat may seem logical, but techniques to analyze food for oil-related chemicals are “light years” behind those for detecting the compounds in water and soil, Shonkoff told ICN. He raised the problem repeatedly at panel meetings.”
EXTRACTION
Guardian: Rightwing lobby group Alec driving laws to blacklist companies that boycott the oil industry
Chris McGreal, 2/8/22
“The influential rightwing lobby group the American Legislative Exchange Council (Alec) is driving a surge in new state laws to block boycotts of the oil industry,” the Guardian reports. “The group’s strategy, which aims to protect large oil firms and other conservative-friendly industries, is modelled on legislation to punish divestment from Israel. Since the beginning of the year, state legislatures in West Virginia, Oklahoma and Indiana have introduced a version of a law drafted by Alec, called the Energy Discrimination Elimination Act, to shield big oil from share selloffs and other measures intended to protest the fossil fuel industry’s role in the climate crisis. A dozen other states have publicly supported the intent of the legislation. Texas has already begun compiling a list of companies to target for refusing to do business with the oil industry after the state passed a version of the law last year. Top of the list is the world’s largest asset manager, BlackRock. The push to blacklist firms that boycott the oil industry follows a meeting in December between politicians and Alec, a corporate-funded organisation that writes legislation for Republican-controlled states to adopt and drive conservative causes. At that meeting in San Diego, members of Alec’s energy taskforce voted to promote the model legislation requiring banks and financial companies to sign a pledge to not boycott petroleum companies in order to obtain state contracts. The wording closely resembles that of laws drafted by Alec and adopted in more than 30 states to block support for the Boycott, Divestment and Sanctions (BDS) movement against Israel’s oppression of the Palestinians. Similar laws are also being promoted to protect the gun industry from boycotts.”
Reuters: Spanish oil major Repsol considering selling parts of its Canadian assets, sources say
SHARIQ KHAN AND ROD NICKEL, 2/7/22
“Spanish oil major Repsol SA is considering putting some of its Canadian assets for sale later this year as it looks to reap the benefits of higher oil and gas prices, four sources told Reuters on Monday. Repsol is seeking buyers for its holdings in the Duvernay basin, in Western Canada, which are still in early development stages, according to its website. The company’s 170,000 acres in the Duvernay could fetch about $750-million, according to an industry source. The move by Repsol follows several global oil majors that have rushed to sell assets in the No. 4 oil-producing country over the past four years over concerns ranging from high production costs and emissions to scarcity of capital for fossil-fuel projects. Imperial Oil Ltd., whose majority owner is U.S. oil producer Exxon Mobil Corp., marketed its Canadian joint venture last month while Japan’s JAPEX sold its stake in the Hangingstone oil sands project last year and Abu Dhabi’s TAQA hired advisers to sell all of its Canadian oil and gas producing assets.”
CLIMATE FINANCE
Reuters: Oil and gas bankers confront their own energy transition
By Isla Binnie and David French, 2/8/22
“Can oil bankers learn renewable tricks? They may need to in this climate, judging by the experience of Douglas MacKenzie, a Citigroup banker who has spent decades advising global energy giants on fossil fuel deals since joining Goldman Sachs as an associate in 1985,” Reuters reports. “"I cover Big Oil. I'm a supermajor guy," the 63-year-old told Reuters. "Now all of my clients are focused on the transition." He decided he had to get up to speed with greener energy sources in 2018 and is now EMEA chairman of Citi's new Natural Resources and Clean Energy Transition team, which was launched last March, part of a wider pivot by investment banking towards helping energy clients move away from fossil fuels. Oil and gas dealmakers, once the darlings of banking, must plot their own transitions to lower-carbon careers. Many are being retrained and repurposed as major banks including Citi (C.N), Credit Suisse (CSGN.S) and Societe Generale (SOGN.PA) merge them into bigger teams that include clean power and sustainability specialists… “Yet some bankers face dilemmas over when to take the plunge, and risk being left behind in an evolving low-carbon finance arena. Jason Moore, founder of London-based recruiting firm Harrington Moore, told Reuters some seasoned bankers were moving to niche oil and gas boutiques. Many people are racing to learn about new green technologies, though, before the competition becomes too intense, he added.
Insure Our Future: CLIMATE LAGGARD TRAVELERS ADOPTS COAL & TAR SANDS POLICY
2/7/22
“Insurance giant Travelers adopted a policy commiting to not underwrite new coal-fired power plants. It also committed not to underwrite new policies for or make new investments in companies that generate more than 30% of their revenue or energy production from coal or have more than 30% of their reserves in tar sands. It will phase out existing relationships that exceed these thresholds by 2030. (Note: for a detailed analysis of the policy, see Insure Our Future’s Analysis of Travelers’ Climate Commitments). “Adopting a coal and tar sand exclusion policy is a notable first step from Travelers. The insurance industry is being forced to wake up to the threat posed by climate change, and to its role and responsibilities. There is real momentum now for insurance companies in the U.S. to align their policies with climate science and end support for new fossil fuels,” said Connecticut Citizen Action Group Executive Director Tom Swan. Travelers was one of the last major insurance companies left in the world without any restrictions on coal underwriting. It now joins a growing list of at least 35 insurers globally that have ended or limited their coverage for coal projects, including all major European and most Asian insurers. It is the 3rd North American insurer and 14th overall to restrict insurance for the tar sands oil sector… “Travelers’ announcement will increase the pressure on AIG and Berkshire Hathaway to rule out coal, as they are the two remaining major U.S. insurers with no restrictions on underwriting coal; as well as on Chubb and Liberty Mutual to include tar sands in the scope of their fossil fuel restrictions.”
Stop the Money Pipeline: Toxic Money: Wall Street’s Trillion Dollar Gamble With our Economy and Planet
2/7/22
“The Stop Money Pipeline coalition is hosting a four-part public education and training series on how we can build power to demand that federal regulators end Wall Street's financing of environmental racism and climate disaster. The first training will be next Tuesday, February 8th at 7pm ET. We have an amazing line-up of speakers, including one of our incredible BBFF Steering Committee members! Check out this powerhouse line up below: Sharon Lavigne, Founder of RISE St. James and 2021 Goldman Prize Recipient North America, BBFF Steering Committee member; Lisa Anne Hamilton, Climate Law and Policy Expert and former Adaptation Program Director for the Georgetown Climate Center; Tracey Lewis, Policy Counsel at Public Citizen (moderator); We’re asking allies to boost this event across their platforms so that we can build grassroots power to win bold and transformational regulation that ends the direct flow of money from financial institutions to the fossil fuel industry, the deforestation sector, and other industries that target and harm BIPOC communities.”
OPINION
The Daily Poster: The Pipeline Trap: Federal officials are approving fossil fuel projects that enrich shareholders, fleece customers, and exacerbate the climate crisis.
Julia Rock, 1/31/22
“Scientists and international governing bodies have been very clear: In order to have a shot at limiting the worst impacts of global warming, investment in new fossil fuel projects must stop,” Julia Rock writes for The Daily Poster. “Yet the federal body that regulates America’s pipelines has created a perverse incentive for companies to keep building methane-leaking fossil fuel infrastructure that doesn’t serve anybody except shareholders. In St. Louis, Missouri, a legal battle over a new pipeline called Spire STL is a glaring example of a nationwide problem: “self-dealing” between energy and pipeline companies fleeces customers and exacerbates the climate crisis, all with the government’s blessing… “Amid a fracking boom over the past decade, Spire was far from the only company that built an unnecessary natural gas pipeline to tap into the large profit margins allowed by federal rate-setting formulas. Now energy customers are bearing the costs, and even if courts rule that some of these pipelines should not have been approved, the infrastructure could be here to stay. In the next few months, FERC is set to issue new guidelines for how it will assess proposed natural gas pipelines for the first time since 1999. Environmental watchdogs hope the guidelines will make changes to how FERC addresses whether a project is needed, as well as take into account the impacts of natural gas on climate change and environmental justice when considering proposed pipelines. “If the pipeline had never been built, we would have been fine,” NRDC’s Giannetti told the Poster. “But then Spire took actions after the fact to essentially shore up need, such that if something like this happened, it would be very difficult to actually take it out of service.” One such action, according to an affidavit filed on behalf of the Environmental Defense Fund by energy markets expert Gregory Lander, was that Spire downgraded the capacity of one of its transmission lines so customers would be dependent on getting gas from the new Spire STL pipeline. Lander noted that Spire had taken these actions while its FERC approval was being challenged — and he argued that during this time, Spire should have instead been ensuring that if the pipeline was shut down, customers would still be able to get gas.”
Cleveland Plain Dealer: Top-down reform of PUCO and its nominating process is needed
By Editorial Board, cleveland.com and The Plain Dealer, 2/4/22
“If the corruption scandal clouding House Bill 6 has done nothing else, it has exposed the way utility regulation and the law that governs it in Ohio have both become captive of the utilities the state is supposed to be regulating,” Cleveland Plain Dealer Editorial Board writes. “Leading the way has been Akron-based FirstEnergy Corp., long a master of the political game, but the system appears routinely skewed toward utility interests. That’s why Public Utilities Commission of Ohio reform needs to be a key issue in this year’s governor’s and state legislative races. In particular, voters need to demand from candidates for governor and the Ohio Statehouse the specific reforms and other balancing measures they contemplate to make the PUCO serve the people, not utilities. We have suggestions. To start, 1982 PUCO “reforms,” via a law that took effect in 1983, need to be replaced by a law that makes it harder to circumvent that reform’s requirements for a rough partisan balance among PUCO commissioners. The law requires that no more than three of five PUCO commissioners be from the same political party, but there is currently just one Democrat and three Republicans -- plus an “independent,” M. Beth Trombold, who’d previously applied for the commission as a Republican. A revamped reform law also should shore up the intent of a key requirement dating to 1953 that PUCO commissioners and staff not be yoked to utilities, either through professional positions or financial holdings. This bears on the sad morality tale of former PUCO Chair Sam Randazzo and his FirstEnergy associations. Among the Akron utility’s own admissions as part of a deferred prosecution agreement in the HB 6 bribery scandal, FirstEnergy says it gave Randazzo a $4.3 million payment through his consulting company in exchange for his working on behalf of FirstEnergy at the PUCO. Randazzo has not been charged with any wrongdoing. A new PUCO law should require that commissioner candidates disclose details of any and all financial arrangements and past beneficial relationships with regulated utilities in Ohio, and add teeth to the enforcement of that provision…”
OilPrice.com: Big Oil Isn’t Losing Any Sleep Over The EV Revolution
Alex Kimani, 2/6/22
“With the global energy transition in full swing, few clean energy sectors, if any, are expanding faster than the electric car market,” Alex Kiman writes for OilPrice.com. “...EV sales accounted for 8.6% of the global light-duty vehicle market, compared to just 2.5% in 2019, as per a new International Energy Agency report… “Tesla sold 352k units in its U.S. home turf; 321k in China, 170k in the European market and 93k elsewhere. EV sales in the U.S. totaled 487,560 units in 2021, an 89% Y/Y increase over the 257,872 units sold in 2020… “But how much threat does the EV revolution actually pose for the fossil fuel sector? A report from IHS Markit shows that in 2020, light plug-in and fuel-cell vehicles, as well as electric city buses and two-wheelers, collectively displaced about 370,000 barrels per day of global oil consumption, a figure that is projected to grow to 1.5 million barrels per day by 2025, equal to about 1.4% of the projected level of total world oil demand… “The new energy research provider also says that it will take at least two decades for EV sales to hit 60% of all new vehicle sales… “Bloomberg New Energy Finance estimates that road fuel oil demand will peak in 2027, but it will take another decade for the impact of advancements to be materially felt. Emissions will almost halve by 2050, but the sector will still be nowhere near net zero. In the best-case scenario, by the 2050s, fossil-derived road fuel demand will fall below levels last seen in the early 1970s. In this case, oil-related emissions will drop to 3.4 gigatons CO2 by 2050, down from almost 6.5Gt in 2019. That said, the EV sector could end up hurting the oil sector in the long run, with BNEF predicting that electric and fuel cell vehicles will displace 21 million barrels per day in oil demand by 2050. In other words, it's probably going to be decades before the impact of the EV revolution begins to be truly felt by the fossil fuel sector.”