Extracted: Daily News Clips 3/11/22
PIPELINE NEWS
The Hill: Manchin: Biden could invoke Defense Production Act to complete natural gas pipeline
The Center Square: Judge expected to render opinion ‘any day’ on moving Line 5 case from federal to Michigan court
WSJM: Groups Back Shutting Down Line 5, Despite Legislative Moves
Associated Press: Judge: Pipeline company failed to safeguard residents
KMA: Iowa landowners uniting against use of eminent domain
Globe Gazette: Summit Carbon works towards easements with CG landowners over pipeline
Reuters: Canada looking at boosting oil pipeline flows to U.S., minister says
SDPB Radio: Republicans want Keystone XL Pipeline but company says the project 'will not proceed'
Sightline Institute: FIVE REASONS THAT EXPANDING THE TRANS MOUNTAIN OIL PIPELINE IS STILL A COLOSSAL MISTAKE
Press release: EDF Tells Supreme Court There Is “No Basis for Review” of Spire STL Pipeline Decision
WASHINGTON UPDATES
Business Insider: Democrats unveil plan to issue quarterly checks to Americans by taxing oil companies posting huge profits
STATE UPDATES
Proactive: Vivakor secures long-term oil sands supply and lease agreement at its Utah facility
Colorado Newsline: Drill baby drill? Colorado oil producers have nearly 3,000 approved permits
Associated Press: Alaska North Slope natural gas leak is under investigation
Colorado Sun: Broomfield’s “best practices” for oil and gas are held up as a model. But they don’t curb neighbors’ complaints.
EXTRACTION
Press release: Canada Launches Impact Canada Oil Spill Response Challenge
Reuters: IEA says it will draw up plan to cut oil usage as prices surge
Guardian: Carbon dioxide will have to be removed from air to achieve 1.5C, says report
H2-View: Pipe dreams? Repurposing pipeline infrastructure for hydrogen
CLIMATE FINANCE
Bloomberg: Energy firms pay record prices to buy own shares as oil booms
OPINION
Truthout: Investors Are Reevaluating Mountain Valley Pipeline. Let’s Cancel It for Good.
The Storm Lake Times: An open letter to Gov. Reynolds
Estes Park Trail Gazette: Cancelling Keystone XL Pipeline makes good business sense
Forbes: Why Biden’s Killing Of Keystone XL Was An Energy Security Blunder
NRDC: Correcting the Record on FERC and Pipelines
PIPELINE NEWS
The Hill: Manchin: Biden could invoke Defense Production Act to complete natural gas pipeline
BY ZACK BUDRYK, 3/10/22
“Sen. Joe Manchin (D-W.Va.) on Thursday called on President Biden to invoke the Defense Production Act (DPA) if necessary to complete a U.S. natural gas pipeline following the ban on oil imports from Russia,” The Hill reports. “The West Virginia Democrat — at a Thursday hearing of the Senate Energy Committee, which he chairs — called the 303-mile Mountain Valley Pipeline “the quickest thing that we can get, it’s more energy into the market that’s going to be needed. “I’ve been preaching to the heavens for a long time on this one. It can be done with the Defense Production Act,” Manchin added. “What we do know is that Russia has weaponized energy. They have used it as a geopolitical weapon. The thing I know about an adversary or a bully is if they have a weapon, you better have one that will match it or be better than theirs. And we do, we just haven’t used it,” Manchin said, in reference to American energy stores… “Manchin said at the hearing that the pipeline could be completed in four to six months and added that he has also introduced legislation to remove regulatory hurdles. Under the DPA, which Biden has previously used for matters relating to wildfires and the COVID-19 pandemic, the president can direct private companies to prioritize developing materials crucial to national defense interests. As gas prices spike, environmentalist groups and Democrats to Manchin’s left on climate issues have also called on Biden to invoke the DPA to deploy renewable energy.”
The Center Square: Judge expected to render opinion ‘any day’ on moving Line 5 case from federal to Michigan court
Bruce Walker, 3/10/22
“As gasoline prices soar and inflation seems poised to rise above 8%, Michiganders are squinting to detect any signs of economic hope on the horizon. Among the variables drawing their attention is whether Gov. Gretchen Whitmer’s administration is successful in closing the Line 5 pipeline across a five-mile stretch of the Straits of Mackinac. The Canadian energy company Enbridge is suing the governor to keep the pipeline open,” The Center Square reports. “Whitmer’s administration is angling to move the case from federal court to state court, presumably to advantage Whitmer’s case. Enbridge argues jurisdiction over the case belongs on the federal level due to a 1977 international treaty between Canada and the United States. U.S. District Court Judge Janet Neff's decision on that matter is due any day. The U.S. Department of State and the Canadian government are in discussions over the pipeline.”
WSJM: Groups Back Shutting Down Line 5, Despite Legislative Moves
3/11/22
“The Michigan Legislature approved a resolution this week backing energy independence, and asking Gov. Gretchen Whitmer to call off attempts to shut down the Line 5 dual pipelines,” WSJM reports. “With gas prices surging amid the Russian invasion of Ukraine, lawmakers who supported this resolution say domestic oil production should be a priority. Sean McBrearty, campaign coordinator for the group Oil and Water Don’t Mix, told WSJM conversations about energy independence and security should focus on building renewables faster, rather than relying on more fossil fuel. “We have to realize that the sooner we can get away from oil, and natural gas and other fossil fuels, the sooner we can get away from dictators like Vladimir Putin being able to leverage things like that in this sort of a war that he’s pursuing right now in Ukraine,” McBrearty asserted. The pipelines are operated by Enbridge Energy, a Canadian company pursuing building a tunnel around them, though environmental advocates and engineers have raised serious financial and safety concerns. Enbridge has said shutting down Line 5 would cause energy-market disruptions, though McBrearty pointed to multiple studies showing the pipelines could be closed without any price or supply disruption. “There’s plenty of capacity elsewhere in the system for the product that moves through Line 5,” McBrearty told WSJM. “And with the declining demand that we’re going to be seeing in future years, there’s no reason we should be looking at building an oil tunnel through the Great Lakes.”
Associated Press: Judge: Pipeline company failed to safeguard residents
MICHAEL RUBINKAM, 3/11/22
“The developer of a multi-billion-dollar pipeline that traverses southern Pennsylvania should have done more to protect the safety of more than 200 residents of an apartment complex during eight months of construction work, a judge ruled,” the Associated Press reports. “Sunoco Pipeline LP, developer of the often-penalized Mariner East pipeline network, created a fire hazard during construction, made excessive noise and failed to adequately communicate with residents of Glen Riddle Station Apartments, a 124-unit complex in the Philadelphia suburb of Middletown Township, Delaware County, the ruling said. “More should have been done by Sunoco where the well-being and safety of more than 200 Pennsylvanians was at issue,” said the ruling, issued Monday by Joel H. Cheskis, deputy chief administrative law judge at the Pennsylvania Public Utility Commission. “Extreme care should have been taken but was not." Cheskis fined the company $51,000 — the latest in a series of penalties assessed against Mariner East. Sunoco's parent company, Texas-based Energy Transfer, has paid more than $20 million in fines for polluting waterways and drinking water wells during pipeline construction. Energy Transfer also faces 48 criminal counts over allegations it illegally released industrial waste at 22 sites in 11 counties.”
KMA: Iowa landowners uniting against use of eminent domain
Ethan Hewett, 3/9/22
“Iowa landowners have begun to organize in opposition to the carbon dioxide pipelines proposed to cut through a majority of the state,” KMA reports. “The Iowa Easement Team was formed to assist Iowa landowners affected by the proposed carbon pipelines in their legal efforts, and primarily Summit Carbon Solutions' Midwest Carbon Express Pipeline. Domina Law, an Omaha-based law firm, is handling the legal efforts for the group. Managing Lawyer Brian Jorde says one of the top concerns for him and the group he represents is the dangerous precedent that could be set by giving Summit, a private company, the ability to use eminent domain. "So now we're going to put the private profits to make these millionaires and billionaires more millions and more billions at the expense of thousands of people across the country, and hundreds if not thousands in Iowa alone, taxpayers, voters, residents," Jorde told KMA. "At some point you cant just go handing out the power to take what is someone else's and tell them what they can and can't do." “...In interacting with the hundreds of landowners that have joined the Iowa Easement Team, Jorde tells KMA he has yet to hear one positive experience a landowner has had with a pipeline representative. "It's all the lack of transparency, saying one thing, doing another, not following up, arrogance, attitude, 'if you don't do this it doesn't really matter because we can take it from you anyway,'" Jorde told KMA. "The typical attitudes you get with pipeline companies and the subcontractors (and) contractors they employ. The hundreds and hundreds of people that I've talked to, I haven't heard of any positive experiences."
Globe Gazette: Summit Carbon works towards easements with CG landowners over pipeline
Zachary Dupont, 3/11/22
“Summit Carbon Solutions is in the midst of acquiring easements for its carbon capture pipeline slated to run through parts of Iowa,” the Globe Gazette reports. “Many landowners and residents in Iowa have grown concerned about certain aspects of Summit Carbon Solutions' Midwest Carbon Express, which is is a carbon capture pipeline projected to span over 2,000 miles and run through five states. In an attempt to ease those concerns, Summit Carbon held an informational Q&A session in Mason City on Thursday afternoon… “One concern brought up by several of the approximately 30 landowners in attendance on Thursday brought into question the rights they have after signing an easement… "Another topic brought up by several landowners was the use of eminent domain on the project. "I think we would consider that a tremendous victory and milestone without the use of eminent domain," Pirolli said. "Whether that's feasible or not I don't know, that's definitely our goal, but I think it's possible." Emma Schmit, the chair of the Calhoun County Democrats, casted doubts over that possibility when speaking with the Globe Gazette last week, stating she believes Summit Carbon is struggling to obtain voluntary easements. "Summit has an absurdly low number of easements, I think," Schmit said. "The support just really isn't there for them." This claim was dismissed by Pirolli, who told the Gazette that thus far, Summit Carbon has somewhere around 15% of the easements required for the project in Iowa signed, which only a few months into the process Pirolli said is a very good number… “During the question and answer portion of the event, one landowner asked the room at large to raise their hands if they had signed a voluntary easement with Summit Carbon, as Pirolli asserted earlier in the event some in the room had. None of the attendees raised their hands, but Pirolli was quick to try to dissuade participation in this stating that he thought doing so would not be "appropriate."
Reuters: Canada looking at boosting oil pipeline flows to U.S., minister says
By Steve Scherer and Nia Williams, 3/10/22
“Canada is studying ways to increase pipeline utilization to boost crude exports as Europe seeks to reduce its dependence on Russian oil, the country's natural resources minister said on Thursday,” Reuters reports. “Pipeline operator Enbridge Inc (ENB.TO) said in a statement it was in talks with the government "about how the industry can help relieve the current energy crisis". Most of Canada's crude exports travel to the United States on Enbridge's Mainline system, with another 590,000 barrels a day flowing on TC Energy's (TRP.TO) Keystone pipeline. TC Energy did not respond to a request for comment. "We are looking at whether our pipeline network is fully utilized," Natural Resources Minister Jonathan Wilkinson said in a telephone interview. He said the aim was to make an "incremental" increase in exports to Europe. Canada exports more than 4 million barrels a day of oil to the United States and a small portion of that is then re-exported to other countries. "Both our liquids and natural gas systems are at or near capacity but we're exploring options that may be taken to provide more energy to the U.S. and Europe. That includes using export facilities on the Gulf Coast for crude and natural gas," Enbridge said… “Even if Canada is able to increase pipeline export capacity, many producers have been reluctant to adjust spending plans to significantly boost output… “Canadian oil companies exported a record amount of crude out of the U.S. Gulf Coast at the end of 2021, most of which went to big importers India, China and South Korea.”
SDPB Radio: Republicans want Keystone XL Pipeline but company says the project 'will not proceed'
Arielle Zionts, 3/10/22
“Republicans across the country are calling for the Keystone XL Pipeline to restart construction to help combat high oil prices, but the company says the canceled project 'will not proceed' as it ends permits and pulls infrastructure out of the ground,” SDPB Radio reports. “"The Keystone XL pipeline project was terminated in June 2021 and will not proceed," TC Energy said in an email. "TC Energy has now disposed of almost all of its project-related assets in South Dakota," the Canadian company said in a new report that lists the steps it's taken to exit the state. The company is also asking the South Dakota Public Utilities Commission for permission to terminate its $15.6 million road bond. Canceling this bond would be TC Energy's "final step in front of the PUC," staff attorney Kristen Edwards told SDPB. But Gov. Kristi Noem, South Dakota's congressional delegation, and other Republicans across the country are calling for pipeline construction to restart after Russia invaded Ukraine. U.S. House Republicans have even introduced a bill, co-sponsored by South Dakota Rep. Dusty Johnson, that would allow TC Energy to restart the pipeline without a presidential permit… “But TC Energy is not budging from the decision it made to shutter the project after President Joe Biden revoked the permit it needs to cross into the U.S.”
Sightline Institute: FIVE REASONS THAT EXPANDING THE TRANS MOUNTAIN OIL PIPELINE IS STILL A COLOSSAL MISTAKE
Emily Moore, 3/8/22
“Canadians stand to lose billions from expansion of the Trans Mountain oil pipeline expansion (TMX), which has quadrupled in cost from Can$5.4B to Can$21.5B in the past decade,” according to the Sightline Institute. “If completed, TMX would imperil land and marine ecosystems, including in the Salish Sea, the viability of traditional Indigenous and First Nations cultural practices and resources based on those ecosystems, and Canada’s professed climate goals. What’s more, the pipeline’s remaining cost alone could more than double Canada’s solar capacity… “1. Canadians Stand to Lose Billions on the Project: Although the business case for the pipeline has always been shaky, the latest cost increase confirms that the pipeline has turned into a giant money pit, putting the Canadian public’s dollars at risk… “2. The amount not yet spent could more than double Canada’s solar capacity... “3. Producing the oil to fill the pipeline would produce more emissions annually than 125 countries… “4. The pipeline is excess capacity if we’re to believe Canada’s latest climate pledge… “5. The Salish Sea will become crowded with oil tankers, a death sentence for orcas… “Rather than waiting for TMX to die that slow death, then, Prime Minister Trudeau would be smart to step in now and cancel it. While it’s difficult and perhaps politically risky to admit a mistake, throwing good money after bad, down a fossil fuel pipe, is even worse: Can$11.5 billion more wasted, mounting climate hypocrisy, further degradation of Indigenous land and rights, the risk of a devastating oil spill along BC and Washington coasts. Not to mention, there is no upside for the immediate relief of Europe’s reliance on Russian oil. The writing is on the wall: the Trans Mountain Expansion Project is not the economic engine it was made out to be a decade ago, nor is it a credible path to Canada’s clean energy future.”
Press release: EDF Tells Supreme Court There Is “No Basis for Review” of Spire STL Pipeline Decision
3/9/22
“Environmental Defense Fund filed a brief with the U.S. Supreme Court today opposing Spire STL and Spire Missouri’s request that the Court review a unanimous ruling by the U.S. Court of Appeals for the D.C. Circuit about its natural gas pipeline. “Spire’s petition for Supreme Court review is unwarranted and should be denied,” said EDF senior attorney Erin Murphy. “The D.C. Circuit’s decision was clearly correct and there are no legal questions meriting further review. Supreme Court action is also unnecessary because there is a public process to determine the future of the Spire pipeline ongoing before the Federal Energy Regulatory Commission, which is the expert agency Congress entrusted to address these issues, and the pipeline is authorized to operate during this proceeding to ensure reliable service to St. Louis customers.” EDF filed suit in January of 2020 over concerns that the Spire STL pipeline was granted a certificate by the Federal Energy Regulatory Commission (FERC) without the legally required justification that the costly pipeline was needed and beneficial to the public. That legal safeguard is designed to protect customers from unnecessary costs and landowners from inappropriate condemnation of their property…“Going forward, we believe FERC must do a better job of assessing the benefits and burdens of the infrastructure it approves to ensure customers are protected from unnecessary costs,” said Murphy.
WASHINGTON UPDATES
Business Insider: Democrats unveil plan to issue quarterly checks to Americans by taxing oil companies posting huge profits
Joseph Zeballos-Roig, 3/10/22
“Democrats introduced a bill on Thursday to tax the largest oil companies recording their biggest profits in years — and use the money to provide quarterly checks to Americans facing sticker-shock just about everywhere they look,” Business Insider reports. “The legislation would apply only to large firms like ExxonMobil that produce or import over 300,000 oil barrels per day and exempt smaller companies. The 50% tax would be imposed on the difference between the current price of a barrel and the average price between 2015 to 2019. Rep. Ro Khanna of California and Sen. Sheldon Whitehouse of Rhode Island are the bill's main sponsors. Other co-sponsors includes Sens. Bernie Sanders of Vermont, Elizabeth Warren of Massachusetts, Michael Bennet of Colorado, and Sherrod Brown of Ohio among others. The plan would also establish a quarterly payment program to provide direct payments to Americans struggling with rising prices. The income thresholds were similar to the third stimulus check issued last year: Tax filers making under $75,000 for individuals and $150,000 for couples would receive the payments. At $120 per barrel, single-filers would receive $240 a year and joint-filers would get $360… “The plan faces long odds to become law. Republicans are opposed to tax hikes and centrist Democrats may balk at the measure as well.”
STATE UPDATES
Proactive: Vivakor secures long-term oil sands supply and lease agreement at its Utah facility
3/10/22
“Vivakor (NASDAQ:VIVK) Inc told investors it has signed a lease with Tar Sands Holdings II (TSHII) and an agreement with Greenfield Energy, which, together, are expected to provide it with multiple years of rich oil sands supply, along with access to world-class operational services. The South Salt Lake City, Utah-based company said the multi-year lease allows it up to 2,000 tons per day of oil sand material, which is guaranteed by TSHII to be at a minimum of 10% hydrocarbon by weight, that is expected to produce up to 200 tons of asphalt cement per day when processed through four of Vivakor’s patented Remediation Processing Centers (RPCs). "Locking in a reliable supply of rich, raw oil sands was an important step in preparation to execute long-term sales contracts and prepare for the continual production and sale of asphalt at our Vernal, Utah facility," said CEO Matt Nicosia.
Colorado Newsline: Drill baby drill? Colorado oil producers have nearly 3,000 approved permits
CHASE WOODRUFF, 3/11/22
“For the second time in 10 days, a major Colorado oil producer told shareholders that it’s unlikely to ramp up production amid skyrocketing global energy prices, promising instead to funnel much of the additional cash flow into investors’ pockets,” Colorado Newsline reports. “Speaking on an earnings call Wednesday, Civitas Resources chairman and CEO Ben Dell told investors that the company’s financial decision-making this year will “come down to a discussion about what’s best, in terms of the easiest way to return capital” to Wall Street… “Civitas was formed last year as the result of a chain of mergers and acquisitions involving four of Colorado’s top nine oil producers: Extraction Oil and Gas, Crestone Peak Resources, Highpoint Operating and Bonanza Creek Energy. The new company just added a fifth sizable acquisition, privately held operator Bison Oil and Gas, in a deal announced last month. Combined, the five companies operate thousands of producing wells statewide — and have another 358 approved drilling permits in hand, according to data from the Colorado Oil and Gas Conservation Commission. That stockpile is only a small portion of the nearly 3,000 approved permits to drill held by operators throughout Colorado, including roughly 1,900 in the oil-rich Denver-Julesburg Basin in the northeast quarter of the state. But despite ongoing calls from Republicans at the state and national level for policymakers to “unleash” domestic oil production in response to Russia’s invasion of Ukraine, Civitas’ recent financial statements further underline the economic realities and investor demands that make a significant increase in drilling activity unlikely… “But in recent communications to shareholders, Colorado’s largest oil producers have consistently said much less about such regulatory concerns than about their financial fundamentals and commitments to limit production growth.”
Associated Press: Alaska North Slope natural gas leak is under investigation
By BECKY BOHRER, 3/9/22
“Authorities are investigating a natural gas leak detected last week at a ConocoPhillips Alaska oil drill site on Alaska’s North Slope, officials said,” the Associated Press reports. “...The leak was detected early last Friday, according to a statement from ConocoPhillips, which said that “out of an abundance of caution” Monday it took steps to relocate non-essential personnel from the area because of what it described as a subsurface gas release at the drill site… “The company described the gas leak as being below the surface of the ground and said the cause was under investigation. It said it did not have an estimate on the volume of gas that was released. Walter, in response to additional questions, told AP the company had no additional information to disclose… “ConocoPhillips’ Colville River Unit is commonly referred to as Alpine. It is located 8 miles (13 kilometers) north of the Inupiat community of Nuiqsut, according to the company.”
Colorado Sun: Broomfield’s “best practices” for oil and gas are held up as a model. But they don’t curb neighbors’ complaints.
Mark Jaffe, 3/9/22
“Broomfield has been a leader in local regulation of oil and gas drilling, and its approach is being held up as a formula for allowing more drilling in suburban areas. But residents caution that while things may be better in Broomfield, that doesn’t make them good,” the Colorado Sun reports. “Even with 147 required “best management practices” for operators, extensive air monitoring and the city’s own oil and gas inspectors, residents have filed legions of complaints about noise, odors and health problems they suspect are linked to the drilling. “People should not think they are protected because they have best management practices in place,” Barbara Binder, a resident who lives near one of six Broomfield oil and gas pads, told the Sun. “They are good to have but they are not the silver bullet.” “...Most of those actions were copies of the best management practices included in an operating agreement between Broomfield and Extraction Oil and Gas, which has subsequently merged into Civitas Resources. These included the use of quieter, less polluting electric drills, drilling muds free of hydrocarbons and the use of pipelines to transport water off site to cut down on pollution from tanks and trucks… “Yet even with the changes, Broomfield residents caution that they provide no guarantees that things will go smoothly or safely… “Levels of benzene — also an irritant and with chronic exposure a carcinogen — were 0.071 ppb on a good day and more than four times as high on a bad one… “Barbara Binder, who lives 1,600 feet from the Northwest B pad, south of Northwest Parkway at about North Pecos Street, is not reassured. “We live next to this and have this ongoing anxiety and fear because we don’t trust the operator,” she told the Sun. “I don’t know if the place is going to blow up or what my health will be in five years.” Some days the fumes are so bad that Bender tells the Sun she is driven indoors. “Kudos to the city for doing what they have, but for someone living next to a site, it isn’t enough.”
EXTRACTION
Press release: Canada Launches Impact Canada Oil Spill Response Challenge
3/9/22
“From coast to coast and all across Canada, healthy oceans and waterways provide prosperous local economies and resilient communities. Now more than ever, as the country transitions to a net-zero economy, the Government of Canada is focused on protecting diverse ecosystems, Canada's natural heritage and the jobs that rely on them. That's why we are pursuing next-generation oil spill detection and recovery technologies to protect and preserve our coastlines and the natural environment from oil spills due to accidents or system malfunctions. The Honourable Jonathan Wilkinson, Minister of Natural Resources, today launched the $10-million Impact Canada Oil Spill Response Challenge, which encourages innovators to develop rapidly deployable solutions to detect oil spills and to increase oil spill recovery rates in a Canadian context. The Challenge will assess technologies through two streams: detection, to improve data availability and accuracy to inform oil spill response measures; and recovery, to clean up oil spills in aquatic environments to the fullest extent possible and expedite environmental recovery. The Challenge will also provide the opportunity for innovators to compete for government funding to develop and test their oil spill response solutions… “Through this Challenge, we are providing the opportunity for innovators to create the tools we need to help keep our ecosystems safe and respond to accidents while creating jobs and supporting the clean technology sector,” said Jonathan Wilkinson, Minister of Natural Resources.
Reuters: IEA says it will draw up plan to cut oil usage as prices surge
3/9/22
“The International Energy Agency (IEA) could release more oil from stocks to ease surging fuel prices and will draw up an action plan to swiftly reduce oil usage, the head of the agency said on Wednesday,” Reuters reports. “..."Next week, as we did for gas, we are coming up with a 10-point action plan how to reduce oil in a hurry," Fatih Birol told an energy conference in Paris. "...Members of the IEA agreed last week to release 60 million barrels of oil reserves to compensate for supply disruptions following Russia's invasion. Birol described the 60 million barrels as "an initial response", adding: "It is only 4% of our stocks. If there's a need, if our governments decide so, we can bring more oil to the markets, as one part of the response."
Guardian: Carbon dioxide will have to be removed from air to achieve 1.5C, says report
Adair Turner, 3/9/22
“Removing carbon dioxide from the air will now be essential if there is to be any chance of meeting global climate targets, a thinktank has warned,” the Guardian reports. “Carbon offset markets will need to be tidied up and managed properly, as offsets will form a critical route to limiting global heating to 1.5C in line with scientific warnings, according to the Energy Transitions Commission, as switching to renewable energy alone will not produce enough carbon savings. Other methods, such as tree planting and carbon capture and storage, will also be critical. Lord Adair Turner, the former head of the CBI and ex-chair of the UK government’s Committee on Climate Change and now chair of the Energy Transitions Commission, told the Guardian carbon offsets and carbon markets were viewed with suspicion as they had been subject to mismanagement and abuse, but that well-functioning markets were possible… “The Guardian and others have uncovered numerous instances of questionable benefits from carbon offsets offered for sale on the voluntary carbon markets, so-called because they are not formally regulated by governments… “Technologies to remove carbon dioxide, such as carbon capture and storage which requires liquefying the gas and pumping it into underground caverns, and direct air capture, using chemicals to suck carbon from the air, are still expensive. Turner warned that these technologies should not be seen as a “get out of jail free card”, which companies and others could rely on to avoid having to switch to renewable energy or finding other ways of cutting their greenhouse gas emissions. Carbon removal could not be enough on its own, but would be needed to supplement green energy, he told the Guardian.”
H2-View: Pipe dreams? Repurposing pipeline infrastructure for hydrogen
Emily Tetley-Jones, 3/11/22
“Today, hydrogen, a colourless, odourless, tasteless, flammable gas, is mainly used as a feedstock for the chemical industry. Following the publication of the UK Hydrogen Strategy in August 2021 and the outcome of COP26 meeting of world leaders the following November, hydrogen’s applicability looks set to be expanded,” H2-View reports. “In the light of looming longstops on various carbon-intensive technologies and stricter carbon reduction commitments, policymakers and pipeline operators need to urgently consider what will be required to make hydrogen part of the UK’s cleaner energy mix from a transmission perspective… “If the long-term goal is to increase the UK’s piped gas mix to 100% hydrogen, it is not yet clear how this could be achieved without significant new infrastructure. Repurposing the UK’s ageing gas supply network (including the NTS) to accommodate hydrogen will mean ironing out a number of issues with the existing network. The bulk of the subterranean gas pipeline infrastructure that forms the basis of the UK’s NTS is made of steel and was installed between 1940 and 1970. While anti-corrosion cathodic protection and new monitoring technologies have kept this network in far better condition than could have been initially anticipated, high hydrogen concentrations speed up degradation by making the pipes more brittle and prone to cracking. Hydrogen’s low density, increased leakage risk and high flammability also makes transportation and storage an additional headache from a transmission and liability perspective. In an industry typically reliant on self-insurance, pipeline operators will need to consider whether self-insurance will be acceptable for a fuel makeup including hydrogen and, if not, what sort of insurance the market will be prepared to offer and on what terms.”
CLIMATE FINANCE
Bloomberg: Energy firms pay record prices to buy own shares as oil booms
Geoffrey Morgan, 3/10/22
“Energy stocks are on a roll as soaring oil prices push them to record highs. So what are the companies doing with the windfalls? Buying back their shares,” Bloomberg reports. “At least 21 large U.S. and Canadian energy companies have bought back their own stock in the last quarter, with the move continuing this year in the buildup to Russia’s invasion of Ukraine: Halliburton Co. signalled late in January it could use excess free cash flow to buyback shares and more recently, Occidental Petroleum Corp. launched a US$3 billion buyback program. To Wall Street strategists schooled in the logic of “buy low, sell high” this makes little sense particularly at a time when oil revenues are surging and the stocks hit yearly, multi-year or — in some cases — all-time highs. Even some companies are scratching their heads… “Occidental, which also hit a 52-week high on Monday, raised eyebrows when it announced on Feb. 24 a US$3 billion buyback program in light of the mound of debt it took on for its US$55 billion takeover of Anadarko Petroleum Corp. in 2019. The Texas-focused oil producer’s net debt was US$27.7 billion at the end of the fourth quarter… “Though we support returning cash to stakeholders via dividends, the US$3 billion share-buyback program does nothing for the company’s financial health,” Bloomberg Intelligence analyst Vincent Piazza wrote on Occidental’s buyback… And Desjardins Securities analyst Justin Bouchard wrote in a recent note that “there is a price at which buybacks cease to be attractive.” For companies including Canadian Natural Resources Ltd., messages such as Bouchard’s have yet to resonate. The company spent US$1.26 billion on buying back its own stock in the fourth quarter, even as it breached a previous all-time high. For this year, the Canada’s largest oil and gas company plans to spend 50 per cent of its free cash flow buying back up to 10 per cent of its shares, which are up nearly 40 per cent since January.”
OPINION
Truthout: Investors Are Reevaluating Mountain Valley Pipeline. Let’s Cancel It for Good.
William Limpert, 3/9/22
“The unjust, unneeded and destructive Mountain Valley Pipeline (MVP), a fracked-gas pipeline from West Virginia down into Virginia, should be canceled. Project completion is already in jeopardy,” William Limpert writes for Truthout. “...The MVP has exploited the communities and landowners along the route. Project cancellation could enable impacted landowners to get their land back. Their land was taken from them, in large part, through an unfair use of eminent domain for private gain. The trauma of having their property seized would finally be over, and their property values would go back to pre-pipeline levels, without a dangerous 42-inch pipeline transporting fracked gas through it. Most of our fellow citizens along the MVP are low- and middle-income earners, and communities of color, low-income communities, elderly residents and Indigenous sites would be most impacted and overburdened by the environmental harms and risks from this dirty pipeline. They face possible health impacts through air and water pollution, along with property damage. Buying their homes and properties may have been the biggest investment of their lives, and the MVP may have made that their biggest loss. Project cancellation can begin to right these wrongs… “I am calling on the Mountain Valley Pipeline owners and investors to end this nightmare that impacted property owners have endured for so long, and stop this unjust, unneeded and destructive project. Investors have disclosed their million-dollar losses relating to the pipeline and are reevaluating its investment following the string of legal losses for the embattled pipeline. People of good faith should come together to urge the Mountain Valley Pipeline to do the same.”
The Storm Lake Times: An open letter to Gov. Reynolds
Vickie Beck | Spirit Lake, 3/9/22
“On March 1, 2022, I watched your State of the Union response. I agreed with a lot of what you had to say, but when you made the statement, “You should not have to wake up every morning and worry about the next thing the government is going to do to you, your business or your children,” it hit my heart,” Vickie Beck writes for The Storm Lake Times. “In September 2021, we received certified letters from Summit Carbon Solutions that either we voluntarily sign a forever easement for access to our farmland or it will be taken by eminent domain. We were in total disbelief that this could happen to us… “Six months ago, CO2 pipelines and fighting for our right to our own land were the farthest things in our minds. Now it is everyday-all day that Iowa farmers worry about the special interest groups taking our farms with eminent domain and destroying our rich Iowa soils! “...This boondoggle pipeline project is proposed by a private company and being paid for by elite political influencers, including Bruce Rastetter, Terry Branstad, Jess Vilsack (Tom’s son), and now the biggest oil driller in North Dakota, Harold Hamm, to name just a few. After the Feb. 16 pulling of SF2160, it seems this big money group has gotten to most of Iowa’s lawmakers. You too, Gov. Reynolds! Who are you working for? The landowners of Iowa, or big money? “...You pride yourself on being an Iowan, so stand up for the farms of Iowa and do the right thing! stop eminent domain for private gain and stop the CO2 pipelines!”
Estes Park Trail Gazette: Cancelling Keystone XL Pipeline makes good business sense
THOMAS BECK, AIA, NCARB, 3/9/22
“Among the numerous executive orders President Biden signed on his first day in office, January 20, 2021, were orders revoking “permits signed over the past 4 years that do not serve the U.S. national interest.” This included revoking the Presidential permit the previous administration granted to the Keystone XL pipeline,” Thomas Beck writes for the Estes Park Trail Gazette. “In the decade that the battle over the Keystone XL pipeline has been waged, Keystone XL pipeline proponents have touted the jobs it would create. But the jobs numbers are quite exaggerated. According to an article in the Austin American-Statesman, of the more than 11,000 Americans projected to be employed, most would be temporary and seasonal, equating to approximately 3,900 jobs over a two-year period. The State Department forecast that no more than 50 jobs, only 35 of them permanent, and some located in Canada, would be required to maintain the pipeline… “But that’s not all! The route of the pipeline has been disputed by Native American communities for numerous infractions… “The benefit of the Keystone XL pipeline is a fairy tale built on lies and greed. Our president’s decision to rescind an unlawful permit makes good economic, environmental, and human rights sense.”
Forbes: Why Biden’s Killing Of Keystone XL Was An Energy Security Blunder
David Blackmon is an independent energy analyst/consultant based in Mansfield, TX. He is the Editor of Shale Magazine, 3/10/22
“Watching the Biden administration go hat-in-hand to ask for more oil production from the despotic regime of Nicolas Maduro in Venezuela reminded me of the reason why the Keystone XL Pipeline was such a key system for U.S. energy security,” David Blackmon writes for Forbes. “According to the U.S. State Department in 2014, America’s energy system had a need for more heavy crude from Canada to replace declining volumes from Mexico and - you guessed it - Venezuela… “Moving crude by truck or rail is far more polluting and hazardous than moving it by a brand new, environmentally sensitive pipeline - which the Keystone XL system, if completed, would be - and thus was not consistent with the environmental objectives of the Obama/Biden administration…. It is completely fair to note that, had President Biden not cancelled the cross-border permit for Keystone XL on his first day in office, that pipeline system would likely be in service today, and would be bringing as much as 900,000 barrels of crude oil into the U.S. system. That’s more than enough to offset volumes of crude coming into the U.S. from Russia, and to eliminate a need to offset those now-banned Russian volumes by begging for more such heavy crude from Venezuela… “So “here’s the deal”: The Keystone XL pipeline was going to be built to offset declining imports from Venezuela, because Canadian oil is the same type as what they produce in Venezuela. The White House canceled the Keystone XL pipeline and they are now asking Venezuela for more oil. The White House is acting like those are completely separate events, but it’s actually a case of cause meeting effect.”
NRDC: Correcting the Record on FERC and Pipelines
Gillian Giannetti, 3/10/22
“Ever since the Federal Energy Regulatory Commission approved its new gas pipeline policy statement last month, the gas industry and its supporters have been stomping around in a huff. It’s not hard to see why: After getting its way for more than two decades, the industry will now be facing a more balanced process. What has been lost in all of the industry’s complaints (on full display in last week’s Senate Energy and Natural Resources hearing) are a few basic facts. As background, it’s worth noting at the outset that FERC has authority over the review of gas pipelines and liquefied natural gas (LNG) projects, not—as some have wrongly said—fracking or oil prices or oil pipelines. Fact #1: FERC has a duty to consider the public interest when considering pipeline projects… FACT #2: The gas industry has had a de facto rubberstamp from FERC for 20+ years… Fact #3: All five commissioners agree on many of the key changes in the new policy… Fact #4: Federal courts have ordered FERC to change its gas review procedure… Fact #5: The new policy means that FERC will no longer treat climate and environmental justice as second-class environmental impacts… “So, that’s what we have here: FERC is updating its gas policy to conform to the black-letter law and court orders. It will review new pipelines given these new criteria while considering further adjustments to its interim greenhouse gas review process. If that sounds reasonable, that’s because it is.”