EXTRACTED: Daily News Clips 2/9/23
PIPELINE NEWS
Radio Iowa: GOP senator says it’s ‘politically uncomfortable’ to raise concerns about carbon pipelines
Dakota Rural Action: HB 1230 passed the House floor in a vote of 65-3 and is headed to the Senate!
Tri States Public Radio: McDonough County declines payment offer from pipeline company
Des Moines Register: Carbon capture pipelines a 'life or death' issue for Iowa's ethanol industry, advocate says
WGEM: Hearing both sides of the proposed CO2 pipeline
The Narwhal: Feds quietly backed off while Coastal GasLink pipeline work killed fish in B.C.
Bend Source: Coming... To A Pipeline Near You?
Bradford Today: County and Enbridge sparring over BWG construction costs
WASHINGTON UPDATES
InsideEPA: In Precedent, 10th Circuit Requires Cumulative GHG Review Of Oil & Gas
InsideEPA: Environmentalists Urge DOE To Rescind ‘Unlawful’ NEPA Exclusion For LNG
U.S. Senate Committee on Environment and Public Works: What They Are Saying: Industry Leaders Back Legislation to Reverse Biden WOTUS Rule
E&E News: Carbon removal project planned for Kevin McCarthy’s district
STATE UPDATES
The Hill: In drought-stricken states, fossil fuel production jeopardizes limited water supplies
Louisiana Illuminator: Growing body of research suggests offshore oil’s methane pollution is underestimated
Sacramento Bee: Fact check: Does less oil drilling and more imports lead to higher gas prices in California?
EXTRACTION
Reuters: U.S. crude output to rise in 2023, while demand to stay flat -EIA
Canadian Press: Carbon capture too expensive, takes too long to build: Report
Reuters: Canada's Imperial ordered to fix seepage from oil sands tailing ponds
CLIMATE FINANCE
E&E News: Explaining the Fed’s climate test
OPINION
Forbes: Mr. President, We Will Need Oil For Much Longer Than 10 More Years
Hamilton Spectator: Will Enbridge-Dofasco pipeline lock-in CO2 emissions?
Food & Water Watch: Exposing a New Threat to Our Water: Hydrogen Power
PIPELINE NEWS
Radio Iowa: GOP senator says it’s ‘politically uncomfortable’ to raise concerns about carbon pipelines
O. KAY HENDERSON, 2/7/23
“A state senator who’s proposed five different bills in response to proposed carbon pipelines says the current regulatory process is unfair to landowners,” Radio Iowa reports. “Senator Jeff Taylor told Radio Iowa the bill most likely to pass would require that developers get voluntary access to 90% of the land along the pipeline route before state regulators could grant permission to seize the rest through eminent domain. “The Iowa Farm Bureau has endorsed the 90% bill,” Taylor told Radio Iowa. “It’s probably seen as more of a reasonable compromise by Republicans who are leery of interfering for various reasons into the existing process.” “...Taylor told Radio Iowa since Summit is owned by major GOP donor Bruce Rastetter and former Governor Terry Branstad was an advisor to the project, it’s been “political uncomfortable” at times to raise concerns. “These pipelines, carbon capture, helping the ethanol industry, it’s a priority for a lot of my Republican colleagues,” Taylor told Radio Iowa. “I’m not against the pipelines per se, but it matters how we do things and I think we’re going about this the wrong way.” “...Dan Tronchetti lives near Paton in Greene County. The Summit pipeline would pass through one of his fields and be within 1200 feet west of his front door. He’s frequently at the Iowa Capitol, outlining his objections to having his land seized for the project. “I’ve been forced to come out of my comfort zone and become a political activist,” he told Radio Iowa.
Dakota Rural Action: HB 1230 passed the House floor in a vote of 65-3 and is headed to the Senate!
2/8/23
“This is great news for those working to reform the laws surrounding eminent domain and condemnation proceedings. HB 1230 clarifies the timeline and process of condemnation so that companies have to negotiate in good faith throughout the process. Tomorrow, Thursday Feb. 9th at 1:00PM, HB 1133 will head to the House floor to be debated. This bill is the flagship legislation for landowners and citizens seeking to reform the abuse of eminent domain in our state. If you are able to make it to Pierre Tomorrow morning to talk to legislators before the afternoon vote - please make plans to be there! It has been reported that nearly 30 lobbyists for various companies and organizations have flooded the House floor to try and convince our elected officials not to side with the citizens they represent for this issue. Reports have also been made of people receiving calls from phone centers spreading lies and misinformation about the bill and those who support it (i.e. - YOU!) We need to counter this tremendous effort by a strong grassroots effort.”
Tri States Public Radio: McDonough County declines payment offer from pipeline company
Rich Egger, 2/7/23
“For now, McDonough County won’t consider a monetary offer from Navigator Heartland Greenway, which wants to build a carbon dioxide pipeline through the region,” Tri States Public Radio reports. “The company offered the county $600,000 a year for 30 years in exchange for cooperation on the pipeline. County leaders received the proposal on Jan. 27, about four months after the county board approved a two-year moratorium on the construction of pipelines. The board’s Law and Legal Committee this week agreed to discuss the proposal but not vote on it. “Who wouldn’t want $18 million?” said committee chairperson Joe Erlandson. But he added that he cannot reverse his vote from October simply because money was offered. “I was against the project in my vote last fall. Really nothing’s changed other than money being offered now.” Erlandson told TSPR the committee agreed to publicly discuss the offer in the interest of transparency. He noted the offer could still come up for a vote in the future. A standing room only crowd attended the meeting. Union laborers spoke in favor of the project and the jobs it would bring during construction. Others, such as Terri Frisbie, raised concerns… “We feel that Navigator is trying to ram the project through and not fully go through a fair process,” she said. Frisbie said CO2 pipelines have not been properly vetted for safety by the state and federal governments. She said that needs to be done before anything else can happen regarding the project. Opponents often cite a CO2 pipeline rupture in Mississippi as an example of the safety hazards the projects pose.”
Des Moines Register: Carbon capture pipelines a 'life or death' issue for Iowa's ethanol industry, advocate says
Donnelle Eller, 2/8/23
“Iowa's ethanol industry is "toast" unless producers are able to lower their carbon intensity, economic and renewable fuel officials said Tuesday,” the Des Moines Register reports. “They predicted that failure to do so would lead to a decline in demand for the state's corn ― the most widely used raw material for the fuel ― and would eventually cut $1 or more from the market value of each bushel that farmers grow. "I don't think it's hyperbole to say that capturing and sequestering carbon will be life and death for most ethanol plants over the next five years," said Monte Shaw, the Iowa Renewable Fuels Association's executive director, kicking off the group's annual conference at the Iowa Event Center in downtown Des Moines. "If you don't have that, you're toast," Shaw told the Register, "because your competitors will have" the tax credits… “The state, also the nation's top corn grower, sends about half its crop to renewable fuel plants. If other Midwestern plants get the tax credits instead of those in Iowa and "can outbid you on corn," Shaw told the Register, it could cut Iowa corn prices by $1.80 a bushel… “Despite ethanol's role in Iowa, the carbon capture projects have been controversial: Landowners are concerned about pipeline developers' possible use of eminent domain powers to force unwilling property owners to sell access to their land. Iowa residents, schools and city and county officials have expressed safety concerns about the pipelines. And farmers' concerns include the impact to drainage systems underlying their fields if the pipelines are allowed pass through.”
WGEM: Hearing both sides of the proposed CO2 pipeline
Dylan Smith, 2/8/23
“There is a clear-cut line on what local residents and laborers think should happen with a proposed CO2 pipeline from Navigator CO2,” WGEM reports. “In Monday night’s McDonough County Law & Legal Committee meeting, many in support and many in opposition were on hand to see what would be done with a newly developed Carbon Pipeline Development Agreement, which states that Navigator could pay the county up to $630,000 per year for 30 years… “231 Local Laborer Shane Mettler shares a different perspective… “Mettler said the safety precautions he and other workers take should ease any concern. “If there’s a small leak in it, that pipe couldn’t go underground,” Mettler added. “It had to be completely redone, that section of pipe had to be tossed, if it was dinged the wrong way we couldn’t use it.” “...Bethel Township farmer George Hinderer said he’s received four calls from Navigator inquiring about land acquisition and surveying. He said the latest offer he’s been made was $90,000. “I don’t begin with CO2 capture to begin with,” Hinderer said. “I probably would have no interest in it at any price.”
The Narwhal: Feds quietly backed off while Coastal GasLink pipeline work killed fish in B.C.
Matt Simmons, 2/8/23
“On a dreary gray day in late October, passers by gawked at a scene outside a hotel in Smithers, B.C. The charred remnants of several trucks sat in the parking lot in the wake of what police described as a “targeted attack” in the pre-dawn hours of the morning,” The Narwhal reports. “Among the blackened wreckage were four police cruisers — marked and unmarked vehicles with the RCMP’s Community-Industry Response Group, a special task force assigned to police opposition to industrial projects. The controversial RCMP unit maintains a constant presence on Wet’suwet’en yintah (territory) where Coastal GasLink (CGL) is building a pipeline without the consent of the nation’s Hereditary Chiefs. Federal fisheries officers later exchanged emails about the incident. “Wanted to make sure you are aware of this as it appears to be related to CGL,” fisheries protection biologist Ian Bergmsa wrote to his superiors in an email obtained by The Narwhal through freedom of information legislation. “Given the previous vandalism attack at the CGL crossing site we should have a discussion about safety protocols for … monitoring of CGL crossings that [are] planned for this winter.” Vincent Harper, section head with Fisheries and Oceans Canada’s habitat protection program, replied the following day… “The newly released emails are the first indication that federal enforcement officers were using vandalism as an excuse not to do required monitoring and inspections. Ironically, the emails also indicate federal officials were concerned they were not doing enough monitoring during a period when the company reported an “abnormal amount” of fish deaths during ongoing construction. Fisheries and Oceans Canada, commonly called DFO, confirmed in a statement to The Narwhal that it could be scaling back some monitoring of the 670 kilometre project due to safety concerns, but it declined to provide details.”
Bend Source: Coming... To A Pipeline Near You?
JACK HARVEL, 2/8/23
“TC Energy, a company that transports 25% of North American natural gas, is seeking to pump 150 million additional cubic feet per day through a pipeline that zig zags through Idaho, Washington, Oregon and California,” the Bend Source reports. “The pipeline, called the Gas Transmission Northwest, is a 61-year-old, 1,377-mile system that currently delivers as much as 2.7 billion cubic feet of Canadian methane per day. In terms of emissions, the expansion is expected to add 3.24 million metric tons of greenhouse gas emissions per year, which is like adding 750,000 cars to the roadways… “The Federal Energy Regulatory Commission, a president-appointed body that regulates power transmission and sale of electricity and natural gas, is deliberating on the expansion of the pipeline… "By TC Energy's own admission, they say that the influx of the fracked gas into this old pipeline, the social cost of carbon on that is going to be $12 billion," Diane Hodiak, executive director of 350Deschutes, a climate advocacy nonprofit that seeks to stop new fossil fuel infrastructure, told the Source… “Keystone's most recent pipeline leak is its largest, spilling 600,000 gallons of crude oil into a creek in Washington County, Kansas, in December. "That was the worst spill that's happened in over a decade. And that happened right after they increased the pressure to that pipeline, just like they're pushing to do here," Maig Tinnin, the Rogue Valley Coordinator for Rogue Climate, an environmental advocacy nonprofit in Medford, west of TC Energy's pipeline, told the Source… “Support for the project is split along political lines, with Republican elected officials in Idaho supporting the expansion and Democratic officials in Oregon, Washington and California opposed… “FERC set a Feb. 16 deadline for other commissions, agencies and individuals to submit final comments before they decide the outcome of the expansion… “Tinnin is part of a group hosting a "People's Hearing" via Zoom on Feb. 13 from 5-7pm to raise awareness of the pipeline to gather public comments on the project. FERC didn't host any public hearings on the project, and all of the "People's Hearing" will be delivered to FERC as public comments.”
Bradford Today: County and Enbridge sparring over BWG construction costs
Patrick Bales, 2/8/23
“Not only did the reconstruction of the Line 5-County Road 27 intersection take longer to complete than anticipated, but the project also is nearly $1.5 million over budget, and Simcoe County staff want the company they feel is responsible to pay up,” Bradford Today reports. “Simcoe County councillors, sitting as committee-of-the-whole, recommended approving a budget increase of 17.6 per cent for the completed reconstruction project at their Jan. 31 meeting. They also gave staff the okay to pursue recovery of funds from Enbridge, to cover the overage as the increase was “as a result of the re-classification of a gas main by Enbridge to ‘vital.’” “...A Jan. 7, 2022, letter to Enbridge from the county provides a play-by-play of planning events that it argues “clearly demonstrates that (Enbridge) was well aware of the county’s project and the many opportunities (Enbridge) had to notify the county of the proposed changes to the gas main classification that would have then provided the county with the opportunity to review and consider the potential impacts to our intersection project.”
WASHINGTON UPDATES
InsideEPA: In Precedent, 10th Circuit Requires Cumulative GHG Review Of Oil & Gas
2/7/23
“An appellate court covering several major energy-producing states has issued a first-of-its-kind ruling requiring officials to weigh the cumulative greenhouse gas effects of approving oil and gas drilling in National Environmental Policy Act (NEPA) reviews and to use a GHG budget, setting a precedent that environmentalists say is long overdue,” InsideEPA reports. “Kyle Tisdel of the Western Environmental Law Center (WELC) told InsideEPA that the U.S. Court of Appeals for the 10th Circuit’s Feb. 1 decision in Dine Citizens Against Ruining Our Environment, et al. v. Debra Haaland, et al., found the Department of the Interior’s Bureau of Land Management (BLM) violated NEPA by failing to account for the cumulative impacts of GHGs and toxic air pollution when it approved 199 applications for permits to drill (APDs) -- marking the first time a circuit court has ruled in favor of environmentalists on this issue in a drilling context… “‘This is the first time a circuit court has answered the question of’ whether NEPA requires ‘consideration of cumulative impacts’ of oil and gas projects, whether the approval is for leasing or drilling. That means the decision has ‘significant precedential value,’ Tisdel told InsideEPA.”
InsideEPA: Environmentalists Urge DOE To Rescind ‘Unlawful’ NEPA Exclusion For LNG
2/7/23
“Environmentalists are urging the Department of Energy (DOE) to rescind a Trump-era categorical exclusion (CE) exempting liquified natural gas (LNG) projects from National Environmental Policy Act (NEPA) review, saying the exclusion violates the DOE’s Natural Gas Act (NGA) authority and that the projects undermine the nation’s climate goals,” InsideEPA reports. “They also charge that LNG projects risk locking in long-term fossil fuel usage abroad, since the terminals are used almost exclusively to export natural gas. The groups make these arguments in comments responding to DOE’s request for information (RFI) on establishing new NEPA CE rules and revising existing ones, as the department is expected to expand the exclusions to speed permitting of clean energy projects authorized under the Inflation Reduction Act (IRA) and the 2021 bipartisan infrastructure law, for which it is receiving about $100 billion.”
U.S. Senate Committee on Environment and Public Works: What They Are Saying: Industry Leaders Back Legislation to Reverse Biden WOTUS Rule
2/8/23
“Last week, U.S. Senator Shelley Moore Capito (R-W.Va.), Ranking Member of the Senate Environment and Public Works (EPW) Committee, led all 48 of her Senate Republican colleagues in introducing a formal challenge to the Biden administration’s Waters of the United States (WOTUS) rule through a Congressional Review Act (CRA) joint resolution of disapproval (S.J. Res. 7). An identical resolution was introduced by more than 150 members of the House of Representatives, led by U.S. Rep. Sam Graves (R-Mo.-06), chairman of the House Transportation and Infrastructure Committee. Numerous industry leaders and stakeholders have issued statements of support for the effort to overturn this rule, which will lead to sweeping changes to the federal government’s authority to regulate what is considered a navigable water, with enormous impacts on small businesses, manufacturers, farmers, home and infrastructure builders, local communities, water districts, and private property owners.. ““The American Pipeline Contractors Association is grateful for the introduction of this Congressional Review Act resolution and urges Congress to come together and swiftly overturn the new burdensome and unnecessary WOTUS regulations. There is widespread understanding in Washington that permitting reforms and regulatory overhaul are necessary to meet infrastructure goals and unlock the full potential of American energy, but this decision from the administration directly contradicts those goals.”
E&E News: Carbon removal project planned for Kevin McCarthy’s district
Corbin Hiar, 2/8/23
“An oil and gas company is leading an effort to build massive machines capable of sucking carbon dioxide from the air in the congressional district of House Speaker Kevin McCarthy,” E&E News reports. “But to be viable, the California project will likely need millions of dollars in support from a program created by the 2021 infrastructure law — a bill McCarthy (R-Calif.) urged his Republican colleagues to oppose… “If the so-called California Direct Air Capture (DAC) Hub project goes forward, it would be the most high-profile instance of Republican lawmakers’ constituents benefiting economically from climate spending bills they’ve opposed… “Direct air capture is a nascent industry,” Chris Gould, California Resources’ chief sustainability officer, told E&E. “It needs this early stage funding to get the first projects initiated and begin to drive the cost down that will come with economies of scale.” “...The coalition, though led by an oil company, has committed not to use any CO2 captured by the DAC plants to extract more fossil fuels out of the ground… “Up to 10 billion tons of CO2 will need to be removed annually from the atmosphere by 2050, according to the National Academies of Sciences, Engineering and Medicine, a figure that increases to 20 billion tons per year by 2100… “But there are currently only 18 DAC facilities operating worldwide, which are collectively capable of capturing less than 10,000 metric tons of CO2 per year, according to an April 2022 report from the International Energy Agency.”
STATE UPDATES
The Hill: In drought-stricken states, fossil fuel production jeopardizes limited water supplies
Gianna Melillo, 2/8/23
“Fossil fuels are primarily notorious for the carbon emissions and air pollution they release when burned. But production of oil and gas in the United States can also take a toll on the nation’s water resources, posing risks to dwindling supplies in drought-stricken states,” The Hill reports. “This is thanks to the large quantities of water used in some oil and gas production processes, the pollution threats they pose to nearby water sources and those carbon emissions, which contribute to climate change and thereby further exacerbate drought and aridification. “Fracking and drilling contribute to climate change and suck up finite water resources, then drought and wildfires worsen from climate change,” summarizes a recent report from the nongovernmental organization Food and Water Watch. “At the same time, oil and gas development pollutes and threatens California’s finite freshwater resources.” States and companies are working to mitigate those impacts by shifting away from certain drilling practices or reusing wastewater generated for future oil and gas production. A broader solution may also lie in the transition to renewable energy sources like solar and wind power, which would reduce the threat of water pollution, help conserve water going forward and cut down emissions, too. Energy production accounts for around 40 percent of all water withdrawals in the United States. The recent Food and Water Watch report found that in California alone, oil and gas operators used 3 billion gallons of freshwater from municipal sources between 2018 and 2021, an amount equal to what would be used in more than 120 million showers… “ In total, according to the nonprofit FracTracker Alliance, oil and gas industries in the state consume more than 280 billion gallons of water for extraction and refining each year.”
Louisiana Illuminator: Growing body of research suggests offshore oil’s methane pollution is underestimated
SARA SNEATH, 2/28/23
“Flying 10,000 feet above the Gulf of Mexico, in a plane outfitted with infrared imaging equipment, researchers could see methane gas bubbling under water, likely from an undetected pipeline leak,” the Louisiana Illuminator reports. “Over the course of several flights in 2021, they spotted frequent gas plumes from platforms, storage tanks, and pipelines offshore, leading the team to believe that the 151 platforms near the Louisiana coast had a much higher methane leak rate than what’s been measured for onshore oil and gas production. “I think the bottom line message in this study is there’s a lot of emissions in the shallow waters that are currently unmeasured,” Riley Duren, the CEO of Carbon Mapper and coauthor of the nonprofit’s 2022 study of offshore methane emissions, told the Illuminator… “About 15% of U.S. oil production and 1% of U.S. natural gas production comes from federal leases in the Gulf of Mexico, according to the Bureau of Ocean Energy Management. Far from land and oversight, it’s a wild west that makes it easy for companies to fudge numbers and avoid accountability from regulators who acknowledge they’ve fallen short, even as questions emerge about how methane emissions may be contributing to helicopter crashes around oil and gas platforms.”
Sacramento Bee: Fact check: Does less oil drilling and more imports lead to higher gas prices in California?
LINDSEY HOLDEN AND MAGGIE ANGST, 2/8/23
“California oil producers, fighting Democratic lawmakers’ efforts to limit drilling and cap gasoline profits, are running an advertising campaign that claims to lay out the “facts” about the state’s energy situation,” the Sacramento Bee reports. “Californians for Energy Independence, an organization tied to the Western States Petroleum Association (WSPA) and the California Independent Petroleum Association (CIPA), is behind the digital and television spots. Claim: Californians are paying higher gas prices because the state no longer produces most of its own oil and instead imports the majority of its supply… “Sutter Rating: Misleading Details: The ad says California has “shut down about 25% of local oil production in the last four years” and says California imports 75% of its oil, resulting in an “unstable energy supply and even higher gas prices for working families.” This is accurate only if you count Alaskan oil as “imported,” which the industry seems to do… “Claim: An increase in imports drives up California gas prices. Rating: Misleading Details: Kevin Slagle, a WSPA spokesman, said rising gas prices are the result of basic supply and demand… “Claim: Californians for Energy Independence’s website says the group is made up of “over 200,000 Californians.” Rating: Can’t be verified Details: The organization’s description of its membership is vague.”
EXTRACTION
Reuters: U.S. crude output to rise in 2023, while demand to stay flat -EIA
2/7/23
“U.S. crude production will rise in 2023 even as demand flattens, the U.S. Energy Information Administration (EIA) said on Tuesday in its Short Term Energy Outlook,” Reuters reports. “EIA’s latest forecast calls for crude oil production to rise by 590,000 barrels per day, to 12.49 million barrels per day (bpd) in 2023, and by another 160,000 barrels to 12.65 million bpd next year… “U.S. petroleum and other liquid fuels consumption will stay flat at 20.3 million bpd this year, the EIA said, while forecasting U.S. economy would contract slightly in the first six months.”
Canadian Press: Carbon capture too expensive, takes too long to build: Report
Amanda Stephenson, 2/9/23
“By betting it can solve its emissions problem with carbon capture and storage, Canada's oil and gas industry risks saddling itself with expensive stranded assets, a new report argues,” the Canadian Press reports. “The report, released Thursday by the International Institute for Sustainable Development — a Winnipeg-based think-tank that focuses on climate and sustainable resource development — concludes carbon capture and storage technology costs too much and takes too long to build to have any hope of helping industry meet Canada's 2030 emissions reductions target. Calling the technology "expensive, energy intensive (and) unproven at scale," the report urges the federal government not to put any more public money into the oil and gas industry for carbon capture deployment. "The application of CCS does not align with the time scale or ambition necessary for limiting global warming to 1.5 degrees C," the report states. "The opportunity cost of investing in CCS and the risk of stranded assets for Canada’s oil and gas sector will intensify as global climate ambition ratchets up and demand for oil and gas declines." "...The oil sector in Canada has been identifying CCS as the major component of its plan to bring down emissions," Angela Carter, co-author of the IID report, told CP. "In fact, some industry representatives, they frame CCS as the only option to make the kind of large inroads that are needed to reduce emissions in the oil and gas sector. It's very much like the industry is putting all of its eggs in the basket of CCS." “...She pointed out the seven CCS projects currently operating in Canada capture just 0.5 per cent of national emissions, and that ramping that up to significant levels by 2030 would require massive government subsidies. "CCS has been over-promised and under-delivered," she told CP, adding a more cost-effective use of public funds would be to encourage near-term emissions cuts through regulations, such as the federal methane rules currently under development.”
Reuters: Canada's Imperial ordered to fix seepage from oil sands tailing ponds
Nia Williams, 2/8/23
“Canada's Imperial Oil (IMO.TO) on Wednesday said it is working with the Alberta Energy Regulator (AER) to fix industrial wastewater seepage from tailings ponds at its Kearl oil sands project that has been ongoing for months,” Reuters reports. “...The order steps up regulatory enforcement from the AER, which previously issued Imperial with two non-compliance notices and conducted site inspections… “The AER said the seepage, first reported in May 2022 after Imperial spotted pools of discoloured surface water, involves industrial wastewater leaking from the external tailings area in four locations on and outside the boundaries of the Kearl site. Imperial, which is majority-owned by Exxon Mobil Corp (XOM.N), said it has been working to determine the cause of the seepage and that the issue is related to gaps within the seepage interception system… “However, Imperial on Saturday also reported a separate leak of more than 5,000 cubic metres of tailings water from one of its holding ponds. Schmidt told Reuters the cause of that release is still being determined and Imperial has notified local communities.”
CLIMATE FINANCE
E&E News: Explaining the Fed’s climate test
Avery Ellfeldt, 2/9/23
“Turns out modeling catastrophic climate change is harder than it looks. Just ask the Federal Reserve,” E&E News reports. “The U.S. central bank is now in the process of gauging six major banks’ approach to preparing for the economic realities of a warming world. And as part of that effort, the Fed is developing a “pilot climate scenario analysis” that will test those lenders’ ability to model — and then handle — a variety of climate-related events, such as a major hurricane strike in the northeastern United States or a future with robust climate laws. Climate risk experts have lauded the move as a critical first step toward addressing the financial threats of global warming. But the Fed’s efforts also have drawn criticism and elicited a long list of questions — including what the Fed and the six banks will gain from the effort, and what comes next. “This is the Fed engaging in an extremely narrow exercise,” Sarah Bloom Raskin, a partner at climate advisory firm Kaya Advisory and a distinguished professor of practice at Duke University School of Law, told E&E… “But as Raskin sees it, the key question going forward is whether the Fed will “step up this so-called climate scenario analysis from a weak, six-bank-only pilot into a supervisory tool that is realistic and credible.” The pilot program will zero in on six major banks — JPMorgan Chase & Co., Bank of America Corp., Wells Fargo & Co., Goldman Sachs Group Inc., Morgan Stanley and Citigroup Inc. — and their exposure to climate impacts, or physical risks, and the clean energy transition. To gauge physical risk, the lenders will assess how their current commercial and residential real estate portfolios would perform over a one-year period if hurricanes of varying strengths were to hit the country’s northeast corner.”
OPINION
Forbes: Mr. President, We Will Need Oil For Much Longer Than 10 More Years
Robert Rapier is a chemical engineer in the energy industry, 2/8/23
“During President Biden’s 2023 State of the Union Address, he relayed an anecdote that I believe explains his stance toward the oil and gas industry,” Robert Rapier writes for Forbes. “...But then President Biden went off script. He said that he had pressed oil executives on the issue of increasing investments, and he said they told him: “We’re afraid you’re going to shut down all of the oil wells and all the oil refineries anyway so why should we invest in them?” President Biden said he responded: “We’re going to need oil for at least another decade.” The chamber burst into laughter, and then Biden quickly added, “and beyond that.” I think this attitude explains the seeming disconnect in the President’s stance toward oil and gas companies. He and some of his advisors really believe we are going to rapidly phase out oil. He views that as absolutely necessary to address climate change. Thus, in his mind the oil industry’s relevance is going to soon fade, so there’s no harm in using them as his foil by blaming their high profits for high gasoline prices. The reality is that we are going to need oil for a lot longer than another decade. Never mind that there is nothing in the pipeline that is going to displace jet fuel used in air traffic a decade from now. There may be some minor dent in petroleum used in marine traffic by then, but most ships will still run on oil in a decade. But the widespread perception seems to be that electric vehicles (EVs) are going to substantially displace combustion vehicles a decade from now. That view is also not supported by facts… “Go ahead and aggressively try to speed up this transition, but also recognize that oil will still be our most important commodity in a decade; probably even two decades from now. The Biden Administration should recognize this and cease the hostility toward this critically important U.S. industry.”
Hamilton Spectator: Will Enbridge-Dofasco pipeline lock-in CO2 emissions?
Eugene Ellmen, 2/8/23
“A proposal to double natural gas shipments to ArcelorMittal Dofasco for its new lower-carbon steelmaking facility raises a crucial question: Will the project help create a path to a net-zero future or lock-in more decades of fossil fuel emissions?,” Eugene Ellmen writes for the Hamilton Spectator. “Enbridge Gas and ArcelorMittal Dofasco are proposing to build a pipeline that would double the amount of gas delivered to the steelmaker from about 500 million cubic metres annually to over one billion… “Instead of coal employed in blast furnaces, the DRI furnace will use natural gas to turn iron ore into pure iron. Far less CO2 will be released in the new process because natural gas emits much less carbon per tonne of iron produced than coal used in blast furnaces… “The company says the DRI furnace will run on gas as a first step, but eventually it will operate on 100 per cent hydrogen… “This has caused some critics to suggest that ArcelorMittal Dofasco can move even faster to help reduce global climate emissions by shifting directly to hydrogen DRI production, skipping the natural gas stage… “To transition to a hydrogen future, ArcelorMittal Dofasco would need to place massive new electricity demands on Ontario just when agriculture, home heating and electric vehicles are also expected to add to provincial power needs… “But company officials say there is no firm date for the transition to hydrogen, and it may not happen until sometime after 2035. Without a target date for the hydrogen transition, ArcelorMittal Dofasco could blow a hole in Canada’s carbon emission targets by operating the DRI plant with natural gas for a decade or more.”
Food & Water Watch: Exposing a New Threat to Our Water: Hydrogen Power
Ben Murray and Mia DiFelice, 2/7/23
“Our water supply faces threats on multiple fronts, from greedy corporate giants, to climate change-fuelled natural disasters. But a new threat looms on the horizon, boosted by billions in federal dollars: hydrogen power,” Ben Murray and Mia DiFelice write for Food & Water Watch. “The hype around hydrogen is gaining steam. Proponents tout it as the clean energy of the future. But hydrogen entrenches fossil fuel use and infrastructure, as well as the resulting pollution in frontline communities. Just as outrageous — it devours everything from electricity, to tax dollars, and even water, that essential ingredient to all life… “To use it for transporting, storing, and delivering energy, you need to isolate hydrogen using other energy sources. That requires a feedstock (often fossil fuels like coal, oil, and gas), a chemical reaction powered by energy, and lots of water. The process also uses more water for cooling, water treatment, and disposal. Powering and sourcing hydrogen production with fossil fuels raises water requirements even higher. That’s because extracting and processing fossil fuels have their own huge water demands… “We found that if we met U.S. goals with that energy mix, our water supplies would be in big trouble. Hydrogen production would gulp down so much water, it would equal the annual water use of 34 million Americans. And these numbers don’t even include the water needed for gas production. Fracking is an incredibly thirsty process… “Companies have proposed hydrogen projects in areas with already-dwindling freshwater supplies. That’s a huge problem for these projects, because hydrogen is so thirsty. So they’ve turned to the ocean for its seemingly endless supply — but that’s no solution… “We cannot waste our time, resources, and energy on hydrogen when we already have solutions that we know will work, like electrification with solar and wind. As it stands, hydrogen will slow down our clean energy transition and entrench fossil fuels. And, it’ll suck up billions upon billions of gallons of our precious water supply along the way.”