EXTRACTED: Daily News Clips 3/22/22
PIPELINE NEWS
Grand Forks Herald: With oil flowing, Line 3 battles now moving into courtrooms
Star Tribune: Enbridge crews punctured three aquifers during Line 3 oil pipeline construction, DNR says
Mlive.com: Pro-Line 5 businesses, critics argue whether legal fight should be in federal court
FOX News: Ohio Lt. Gov blasts Michigan Gov. Whitmer for 'unreasonable, irresponsible' effort to shut down oil pipeline
Press release: SUMMIT CARBON SOLUTIONS ANNOUNCES FINANCIAL ADVISOR ENGAGEMENTS
The Gazette: Hearing set over meeting location for Summit CO2 pipeline
KXLG: Public hearings begin on proposed carbon dioxide pipeline in South Dakota
WREG: Group opposes new bill allowing state to override pipeline decisions
Law360: DAPL Owner Narrows Allegations In Greenpeace Suit
WASHINGTON UPDATES
Reuters: Biden administration plans to resume plans for federal oil and gas development
Common Dreams: Poll Shows 'Incredible' 80% of US Voters Support Windfall Tax on Big Oil
Politico: ON FERC’S AGENDA THIS WEEK
STATE UPDATES
Bismarck Tribune: 'Pore space' a growing issue for North Dakota's energy industry, landowners
Cleveland.com: Ohio’s fracking industry - boon as promised or something less?
Associated Press: Steelworkers poised to strike at Chevron California refinery
EXTRACTION
Reuters: IEA urges reduced transport to cut oil use amid supply crunch
Guardian: Rich countries must stop producing oil and gas by 2034, says study
Guardian: Revealed: ships may dump oil up to 3,000 times a year in Europe’s waters
CLIMATE FINANCE
E&E News: ‘Watershed moment.’ SEC proposed landmark climate rules
Bloomberg: Finance Industry’s Climate Promises Leave Plenty of Room for Oil and Gas
Bloomberg: Canada to Sell Green Bond as Push to Exit Oil Rises Amid War
OPINION
Journal Times: Reynolds: Oppose pipeline build
Helena Independent Record: The shameless pretext oil, gas industry is using to demand more public land leasing
Bismarck Tribune: Editorial: No switch to flip to boost US oil output
Washington Post: Opinion: Canadian energy won’t save Europe from Russia
PIPELINE NEWS
Grand Forks Herald: With oil flowing, Line 3 battles now moving into courtrooms
Ingrid Harbo, 3/19/22
“Gina Peltier was arrested in Minnesota's Clearwater County while praying on a bridge in protest of the Enbridge Line 3 pipeline replacement project,” the Grand Forks Herald reports. “...The Grand Forks resident —who is is Anishinaabe, from the Turtle Mountain Band of Chippewa — faces two charges for trespassing and $10,000 in fines for her act of peaceful protest in August. While the region has seen fewer demonstrations since the $2.9 billion pipeline started flowing in October , the Stop Line 3 movement is far from over. Instead, the focus has shifted to legal battles faced by people like Peltier. Over the course of construction, around 900 people were arrested during protests. Many are still facing charges, anywhere from trespassing, a misdemeanor, to felony theft. In response to the charges, energy has shifted to facing legal battles head on and applying pressure to state leaders to drop charges against those arrested for protesting. On Nov. 17, Stop Line 3 launched a petition to Minnesota Gov. Tim Walz and Attorney General Keith Ellison to drop charges against protesters; the petition has more than 84,000 signatures. Joshua Preston, a Minneapolis-based attorney, told the Herald legal battles are a natural next step for the movement. Preston has been representing demonstrators involved in the Stop Line 3 movement since January 2021. He has between 40 and 50 clients in counties across northern Minnesota, charged with anything from misdemeanor public nuisance and unlawful assembly to gross misdemeanor trespass and felony theft… “For now, Line 3 defendants have little choice but to face the legal system and hope for charges to get dropped, but in the meantime, other organizations support those legal battles. Preston’s clients do not pay for his services; instead, he gets financial assistance from the Center for Protest Law and Litigation. The Line 3 Legal Defense Fund supports defendants directly with financial support for case-related expenses.”
Star Tribune: Enbridge crews punctured three aquifers during Line 3 oil pipeline construction, DNR says
Jennifer Bjorhus, 3/21/22
“Damage to Minnesota's public groundwater resources from construction of the Line 3 oil pipeline is more severe than previously known, state environmental regulators disclosed Monday,” the Star Tribune reports. “Enbridge Energy crews ruptured three groundwater aquifers while building the 340-mile Line 3 replacement pipeline across northern Minnesota last year and the Canadian oil company faces expanded sanctions, the state Department of Natural Resources (DNR) said… “Combined, the punctures led to nearly 300 million gallons of groundwater flowing to the surface, with the most serious breach occurring near the Fond du Lac Band of Lake Superior Chippewa Reservation in St. Louis County. That rupture alone discharged more than 200 million gallons of groundwater — and it continues to flow out… “Enbridge has paid more than $3.32 million related to the first violation and the State Attorney General's Office has been reviewing the incident for potential prosecution. The company announced in January, about one year after crews first punctured the aquifer, that it had finally stopped the flow of groundwater at that site… “All three aquifer punctures involved sheet piling to stabilize trenches for the pipe. Repairs at all three sites have involved injecting a grout mixture into the ground to stop flows, Juli Kellner, a spokeswoman for Enbridge, told the Tribune… “The Fond du Lac Band issued a statement saying Enbridge notified the tribe of the aquifer breach Sept. 10. The ruptured aquifer has poured groundwater onto reservation land upstream of Dead Fish Lake, the tribe said. The flows potentially could affect wild rice waters and violate the band's stringent water quality standards and ordinances, it said… "I'm shocked at the volume and I'm shocked that we didn't know exactly what was going on," Frank Bibeau, a lawyer for the White Earth Band of Ojibwe, told the Tribune. Bibeau told the Tribune he thinks repeated warnings about problems doing such construction in northern Minnesota's watery landscape were ignored during contested case proceedings. "It's very, very sad to think, 'How many times do yo have to keep telling the same story?'"
Mlive.com: Pro-Line 5 businesses, critics argue whether legal fight should be in federal court
Sheri McWhirter, 3/21/22
“Dueling court filings in recent days pit certain business interests against others in the legal fight between Michigan’s governor and Enbridge over the Canadian company’s Line 5 pipeline,” Mlive.com reports. “Amicus briefs filed a few days apart last week in federal court by the Great Lakes Business Network and a group of six large chambers of commerce argue opposing sides of the battle between Gov. Gretchen Whitmer and the energy transportation company. The governor wants Enbridge’s countersuit tossed out of federal court after she dropped her case to halt the flow of Line 5. Whitmer opted to instead support the pending case state Attorney General Dana Nessel filed against the company, also meant to halt the pipeline’s use. Representatives from the chambers argued to keep Enbridge’s case in federal court as a matter of national energy policy, while the business network officials want state authorities to shut down Line 5 because of the oil spill risk it poses to freshwater in the Great Lakes… “The chambers argue only the federal government can make interstate oil pipeline decisions, but that’s just not true, Bentley Johnson, federal government affairs director for the Michigan League of Conservation Voters, told Mlive. He told Mlive the location of the disputed section of pipeline in the water is what makes it inherently unsafe and as a result, a state matter. “Enbridge could put every pipeline safety measure available to the industry on Line 5 and it would still be an unacceptable threat to our state to have it sitting on the bottom of the Great Lakes, vulnerable to ship anchors and other threats. The State of Michigan has the legal and moral duty and obligation to protect these water resources that they manage in the public trust, and so the case belongs in state court, to be decided by state judges and decision-makers.”
FOX News: Ohio Lt. Gov blasts Michigan Gov. Whitmer for 'unreasonable, irresponsible' effort to shut down oil pipeline
Marisa Schultz, 3/21/22
“Republican Ohio Lt. Gov. Jon Husted is calling out Michigan Gov. Gretchen Whitmer for her efforts to shut down a major oil pipeline that carries Canadian oil across the Midwest,” FOX News reports. “Whitmer, a Democrat, contends that Enbridge Energy’s Line 5 poses a risk of a "catastrophic" oil spill in the Great Lakes. She and Michigan Attorney General Dana Nessel have launched legal challenges to close the pipeline built in 1953 that moves oil through northern Wisconsin and Michigan to refineries in Ontario. The ongoing Line 5 dispute is getting renewed focus at a time of high gas prices, a ban on Russian oil imports and efforts to boost oil and gas supplies domestically. Husted told FOX Michigan needs to end its legal effort to shut off a friendly source of energy from the Canadian pipeline. Whitmer's actions threaten Ohio's economy and could deliver more pain at the gas pump, the Republican said. "With what’s going on with Russia and Ukraine, I think the world is learning right now that we can't be dependent on other nations for the supply of our oil and gas who are adversarial to us," Husted told Fox News Digital in an interview. "We can work with nations who are allies — in this case, with Canada and Line 5 — but Michigan is being unreasonable and irresponsible with their actions."
Press release: SUMMIT CARBON SOLUTIONS ANNOUNCES FINANCIAL ADVISOR ENGAGEMENTS
3/18/22
“Summit Carbon Solutions, developer of the world’s largest carbon capture and storage project, announced it has engaged Morgan Stanley and CohnReznick Capital as financial structuring advisors for Summit’s $4.5 billion project, which will be capable of capturing and permanently storing over 12 million tons per year of carbon dioxide. Morgan Stanley will lead all project-level debt structuring advisory services, and CohnReznick Capital will advise Summit on tax equity financing. “Since the launch of Summit Carbon Solutions, we’ve seen a significant increase of market interest in the carbon capture space,” said Aaron Hood, Chief Financial Officer of Summit Carbon Solutions. Summit Carbon Solutions’ project, scheduled to be completed in the first half of 2024, will connect 30+ ethanol and nitrogen production facilities across the states of Iowa, Minnesota, North Dakota, South Dakota, and Nebraska.”
The Gazette: Hearing set over meeting location for Summit CO2 pipeline
Erin Jordan, 3/21/22
“The Iowa Utilities Board will have oral arguments April 12 over where to hold a hearing to consider whether to grant Summit Carbon Solutions a permit for a carbon dioxide pipeline,” The Gazette reports. “Iowa law requires the hearing to be held “in the county seat of the county located at the midpoint of the proposed pipeline.” With the proposed Summit pipeline route sprawling across northern and Western Iowa, this midpoint may be a challenge to determine. A board order Friday said briefs or written comments on the hearing location must be filed with the board by March 31… “The Summit project is one of three proposed CO2 pipelines in Iowa. The projects have been contentious with more than a dozen county boards of supervisors opposing the potential use of eminent domain to secure easements for the pipelines. Hundreds of landowners on the pipeline routes have filed written objections.”
KXLG: Public hearings begin on proposed carbon dioxide pipeline in South Dakota
Kim Jarrett, 3/21/22
“A series of public hearings on a proposed liquified carbon dioxide pipeline begins in South Dakota this week, according to a notice from the state's Public Utilities Commission (PUC),” KXLG reports. “...The hearings this week will be held in Onida, Sioux Falls, De Smet, Redfield and Aberdeen… “The pipeline would slice the carbon footprint of ethanol in half, according to the news release from Summit. Carbon capture sequestration has not been successful in recent history, Mark Winegar, a member of the Sierra Club and Union of Concerned Scientists, told KXLG… “Not everyone is in favor of the pipeline. Bill Caram, executive director of the Pipeline Safety Trust, told KXLG they are not safe. "There are little to no regulations around appropriate siting, limiting dangerous and corrosive impurities or building the pipelines to withstand the unique properties of transporting high pressure fluid CO2," Caram told KXLG. "CO2 is an asphyxiant which is heavier than air and therefore, after a pipeline rupture, a plume can maintain a lethal concentration over large distances." Pipeline projects such as these are emerging because of the Infrastructure, Investment and Jobs Act passed by Congress last year that included tax credits for carbon capture and sequestration and carbon capture utilization and sequestration, Caram told KXLG. "These projects are not profitable without these expanded tax credits," Caram told KXLG.
WREG: Group opposes new bill allowing state to override pipeline decisions
Alex Coleman, 3/21/22
“Another battle could be brewing over pipelines that run through Memphis and Shelby County,” WREG reports. “A Republican sponsored bill could limit the abilities for cities and counties to decide if a pipeline should run through their communities… “Sarah Houston is the executive director of Protect Our Aquifer. “I just want to say this is an example of state overreach. You know local communities know how to govern themselves and they know what’s best for their communities,” Houston told WREG. “It’s a very broad bill that could not only impact our water, but really our neighborhoods like fighting a petroleum tank next to a school or having a pipeline run underneath a church,” Houston said… “Protect Our Aquifer says it will be attending the Tennessee House Commerce Committee meeting to speak with lawmakers and try to stop the measure before it gets to full house and senate floor.”
Law360: DAPL Owner Narrows Allegations In Greenpeace Suit
Caleb Symons, 3/22/22
“Energy Transfer LP, the company with a majority stake in the controversial Dakota Access Pipeline, has narrowed its allegations against the environmental group Greenpeace over protests the organization helped coordinate in 2016 to stop the pipeline’s construction,” Law360 reports.
WASHINGTON UPDATES
Reuters: Biden administration plans to resume plans for federal oil and gas development
3/18/22
“The Biden administration on Friday said it would resume plans for oil and gas development on federal lands following a court ruling this week that temporarily restored a measure meant to factor the cost of global warming into federal decision-making,” Reuters reports. “The development is the latest in a string of stops and starts to the federal oil and gas leasing program since President Joe Biden took office in January 2021. Biden pledged during his presidential campaign to halt federal drilling auctions, but that effort has been stymied by a court challenge from Republican-led states… “Then earlier this week, a federal appeals court allowed the government to continue, temporarily, using the value of around $50 per ton of greenhouse gases emitted. The White House had reverted back to an Obama-era value, which is far higher than the roughly $10 a ton imposed by the Trump administration, early last year. "With this ruling, the department continues its planning for responsible oil and gas development on America’s public lands and waters," Interior spokesperson Melissa Schwartz told Reuters. She declined to say whether the administration would resume oil and gas leasing auctions in the near term.
Common Dreams: Poll Shows 'Incredible' 80% of US Voters Support Windfall Tax on Big Oil
JAKE JOHNSON, 3/18/22
“New survey data out this week shows that U.S. voters—regardless of party affiliation—overwhelmingly support a windfall profits tax on U.S. oil corporations that are using Russia's war on Ukraine to hike prices at the pump,” Common Dreams reports. “According to polling results released by the League of Conservation Voters, 80% of U.S. voters—including 73% of Republicans—support "placing a windfall profits tax on the extra profits oil companies are making from the higher gasoline prices they are charging because of the Russia-Ukraine situation." More broadly, 87% of U.S. voters want Congress and President Joe Biden to "crack down on price gouging and excessive price increases by oil companies that result in higher gas prices at the pump." Jamie Henn, director of Fossil Free Media, said in a statement Friday that the survey data shows voters "know who is to blame for high gas prices: Big Oil." "For politicians on both sides of the aisle, this polling is proof that their constituents overwhelmingly support the idea of a windfall profits tax that would stop Big Oil profiteering and send relief directly to consumers," Henn added. "If members of Congress refuse to act, it'll be concrete evidence that they’re in the pockets of the industry."
Politico: ON FERC’S AGENDA THIS WEEK
Matthew Choi, 3/21/22
“FERC's controversial recent gas policy statements are on the docket for this Thursday's open meeting, where commissioners offer to “at the very least” clarify some aspects of the policies based on feedback from industry,” Politico reports. “FERC voted to increase environmental consideration in gas project approvals and introduced an interim policy requiring high-emitting projects to undergo an additional environmental assessment. The commission got its first formal complaint on its new gas approach last week from the American Gas Association, which said FERC's move amounted to an “unlawful expansion of the Commission’s role and responsibilities under the Natural Gas Act” and would harm market certainty.”
STATE UPDATES
Bismarck Tribune: 'Pore space' a growing issue for North Dakota's energy industry, landowners
AMY R. SISK, 3/19/22
“The North Dakota Supreme Court will hear a case next week about tiny cavities within rocks, a topic of growing importance for the energy industry and landowners,” the Bismarck Tribune reports. “This is a new area of law for everyone, industry included,” Derrick Braaten, a lawyer representing a group of landowners who sued the state over a law they say deprives them of their right to compensation for the use of those cavities, told the Tribune… “Braaten described the topic as “some of the most complicated law I have ever encountered.” It has been at the center of a handful of recent court cases in North Dakota, and it’s something state legislators have waded into several times in recent years… “The North Dakota Petroleum Council is not a party named in the lawsuit, but it submitted a brief to the Supreme Court in favor of keeping the law on the books. The group said older state laws governing the use of pore space lacked definitions for terms such as “surface owner,” “land” and “pore space,” leading to uncertainty about whether an energy company needs to compensate landowners for using the cavities… “The Northwest Landowners Association sued the state over the law in July 2019, saying the changes enacted by it amount to a taking of property owners’ pore space and deny them the ability to fight energy companies in court if a dispute arises. Northeast District Judge Anthony Benson ruled in their favor in early 2021, declaring the law unconstitutional and concluding that it “acts to give North Dakota landowners’ value from pore space to the oil and gas industry, for free, under the guise of the North Dakota Industrial Commission." The state and oil producer Continental Resources, which intervened in the case, appealed to the Supreme Court.”
Cleveland.com: Ohio’s fracking industry - boon as promised or something less?
Eric Heisig, 3/19/22
“A Cleveland State University report in 2012 predicted that Ohio’s then-growing fracking industry would add 66,000 direct and indirect jobs and $5 billion a year to the state’s economy by the end of 2014,” Cleveland.com reports. “...A decade later with operations spread out across the eastern side of the state to cash in on shale drilling’s economic potential, many numbers are in. But they are fuzzy and tell different stories from different viewpoints. And like many things perceived political, the industry’s successes and failures depend largely on who is doing the explaining. There are more than 3,600 permits to operate such wells in Ohio. One estimate tied more than 200,000 jobs to the industry, directly or indirectly, though the state acknowledges that count is exaggerated. And Ohio ranks sixth in the country for natural gas production and 13th for oil production. Yet environmental concerns remain… “But some opponents of the industry’s proliferation in Ohio and surrounding states have said any job growth would likely be short-lived. Sean O’Leary, a senior researcher at the environmental and public policy think tank Ohio River Valley Institute, told Cleveland.com that after drilling is completed, it takes fewer workers to extract gas and oil… “But take some of the numbers that backers push with a grain of salt, say detractors. For example, the 208,000 jobs number was pulled out of a Department of Jobs and Family Services report from 2019. It counts every person the U.S. Census Bureau codes in its surveys as working both in the drilling field and the sectors supporting it. That includes, say, truck drivers, who haul a lot more than fracking materials. So there are more workers in that number than just those tied to oil and gas. In addition, numbers released by the same department from 2020 say that an average of 9,425 people worked in industries directly related to oil and gas that year, down by 3,000 jobs from 2019.
Associated Press: Steelworkers poised to strike at Chevron California refinery
3/21/22
“More than 500 workers at a Chevron Corp. refinery in the San Francisco Bay area have told the company they will go on strike at 12:01 a.m. Monday,” the Associated Press reports. “Members of United Steelworkers Local 5 voted down the company’s most recent contract offer and gave notice of intent to go on strike, the union said in a statement Sunday. The statement says Chevron refused to return to the bargaining table. Chevron said in a statement Sunday night that it has negotiated with the union for months and believes the contract offered was fair and addressed union concerns. If the strike shuts down the Richmond, California, refinery, it could crimp gasoline supplies in the state, which has the highest regular gas price in the nation at $5.847 per gallon, according to AAA.”
EXTRACTION
Reuters: IEA urges reduced transport to cut oil use amid supply crunch
By Noah Browning, 3/18/22
“The International Energy Agency (IEA) on Friday urged consumers to travel less, share transport and drive more slowly, part of a 10-point plan to cut oil use as Russia's invasion of Ukraine deepens concerns about supply,” Reuters reports. “The plan by the Paris-based grouping of 31 industrialized countries - which does not include Russia - underlines the urgency of a supply crunch brought on by sanctions and buyer aversion to Russian oil, which has raised fuel prices. The recommendations - which include lower speed limits, working from home, car-free days in cities, cheaper public transport and more carpooling - could cut oil demand by 2.7 million barrels a day within four months, the IEA said. As the bulk of oil demand comes from transport, it said, the plan focuses on "how to use less oil getting people and goods from A to B", drawing on "concrete measures" that have already been used in multiple countries and cities. In a potential setback to the agency's aim to cut demand, many IEA members states and other countries have implemented, or are discussing, power and transport fuel subsidies. The agency projected in November that fossil fuel subsidies soared by the highest annual rate ever in 2021 to $440 billion as governments around the world tried to shield consumers from price hikes in a boon to consumption and pollution.”
Guardian: Rich countries must stop producing oil and gas by 2034, says study
Matthew Taylor, 3/21/22
“Rich countries must end all oil and gas production in the next 12 years, while the poorest nations should be given 28 years, to provide a fair transition away from fossil fuels, according to a study,” the Guardian reports. “The report, led by Prof Kevin Anderson from the Tyndall Centre for Climate Change Research at Manchester University, found that wealthy countries such as the UK, US and Australia had until 2034 to stop all oil and gas production to give the world a 50% chance of preventing devastating climate breakdown, while the poorest nations that are also heavily reliant on fossil fuels should be given until 2050. Anderson told the Guardian that while it was now clear there had to be a rapid shift away from “a fossil fuel economy”, it was essential this was done in a fair and equitable way. “There are huge differences in the ability of countries to end oil and gas production, while maintaining vibrant economies and delivering a just transition for their citizens.” The report examines each country’s wealth and how dependent its economy is on fossil fuel production. It found that many poorer countries would be crippled economically and politically by a rapid move away from oil and gas, while wealthier nations could afford to end fossil fuel production while remaining relatively prosperous.”
Guardian: Revealed: ships may dump oil up to 3,000 times a year in Europe’s waters
Laura Paddison, Beatriz Ramalho da Silva, Max Bernhard and Max Muller, 3/22/22
“Up to 3,000 cases of oil dumped by commercial ships may be happening every year in European waters, according to a new investigation, which found the scale of illegal “bilge dumping” is likely to be far higher than publicly acknowledged,” the Guardian reports. “Bilge water is a mix of liquids from the engine room of a ship along with other potentially toxic substances including lubricants, cleaning solvents and metals such as lead and arsenic, which collects at the bottom of the vessel. Dealing with this oily wastewater – by treating it to remove pollutants or by offloading it at port – is expensive. To cut down on operational costs, some ships simply dump it directly into the ocean, where it can pose a serious threat to marine life. A six-month investigation by Lighthouse Reports, a European non-profit newsroom, with nine publications across Europe, used satellite technology, whistleblowers’ testimonies and freedom of information requests to document hundreds of incidents of potentially illegal oil spills from ships. It found that despite the use of sophisticated satellite technology, countries were slow to act and prosecution levels were low, leading to what some experts say is a culture of impunity.”
CLIMATE FINANCE
E&E News: ‘Watershed moment.’ SEC proposed landmark climate rules
Avery Ellfeldt, 3/21/22
“Large companies that do business in the United States would be required within three years to lay bare their contributions and vulnerabilities to climate change — including, in some cases, the planet-warming emissions associated with their customers and suppliers,” E&E News reports. “That’s according to the Securities and Exchange Commission, which voted today to propose groundbreaking climate disclosure rules. It’s a landmark moment for President Biden, environmental groups and climate-concerned investors. If finalized, the rules would fundamentally overhaul how publicly listed companies divulge detailed information about their climate risks, strategies and more… “Under the new framework, publicly listed companies would be required to disclose information including how extreme weather events and the clean energy transition might affect their business in existing SEC filings, such as the Form 10-K. The proposal also aims to crack down on the growing number of corporate climate commitments. It would do so by requiring companies that have set splashy emissions reduction goals to provide more details about how they would achieve those reductions, the extent to which they would rely on carbon offsets to do so and the progress they have made already. Perhaps most important, though, is how the rules handle companies’ planet-warming emissions. The SEC said all public companies regardless of their size would, in the coming years, be required to report their direct greenhouse gas emissions, as well as the carbon output associated with its purchased electricity.”
Bloomberg: Finance Industry’s Climate Promises Leave Plenty of Room for Oil and Gas
Eric Roston, 3/21/22
“Fewer than half of 150 major financial institutions have restricted their business with the oil-and-gas sector, even though many of them have made high-profile pledges to reduce their contribution to climate change, according to new research by the Paris-based nonprofit Reclaim Finance,” Bloomberg reports. “The analysis, called the Oil and Gas Policy Tracker, looked at governance policies at 60 banks, 60 investment institutions and 30 insurers. Of the whole group, 74 belong to the Glasgow Financial Alliance for Net Zero 1 , an initiative that requires members to end their contribution to global heating by mid-century. More than half of the companies—including 20 of the GFANZ members—have no policies governing their oil-and-gas business. Among the companies with policies in place, the most popular restrictions are bans on several kinds of unconventional oil. More than a third of the firms limit Arctic and oil-sands work, with fewer prohibitions on shale and ultra-deepwater oil. Many of these policies are weak or flawed, according to Reclaim Finance and more than 15 NGO partners in the analysis. Forty-six of 54 rules governing Arctic oil and gas, for example, fail to use the common guidelines developed by a unit of the Arctic Council, a group of countries and peoples with land in the far north. Just five companies, all banks, have quit or limited financing oil and gas expansion, according to the research.”
Bloomberg: Canada to Sell Green Bond as Push to Exit Oil Rises Amid War
Esteban Duarte, 3/21/22
“Canada started taking orders for its inaugural green bond amid a renewed global push to reduce dependence on fossil fuels after the Russian invasion of Ukraine brought reliance on non-renewable sources of energy back into the spotlight,” Bloomberg reports. “The world’s fourth largest oil and fifth biggest natural gas producer is marketing C$5 billion ($4 billion) of December 2029 bonds which may yield 2.5 basis points over the Canada bond due June 2029, according to people with knowledge of the matter… “Canada is debuting in the green bond market as governments and investors worldwide digest the geopolitical consequences of a war pursued by an energy superpower. While the country’s green-bond program can help the government finance projects that reduce pollution, it excludes the oil and gas sector -- the biggest contributor to greenhouse gas (GHG) emissions in Canada… “Canada is excluding activities including transportation, exploration and production of fossil fuels as well as nuclear energy from the potential use proceeds of its green bonds “in recognition of the exclusionary criteria embedded in major green bond indices and green investor and market expectations,” the government said on its website… “What governments include or outright exclude in their green bond frameworks are closely watched by other borrowers and lenders because there isn’t yet a global standard for these securities, which frequently allow issuers to lock into lower borrowing costs than a comparable conventional debt due to strong investor demand.”
OPINION
Journal Times: Reynolds: Oppose pipeline build
Shirley A. Reynolds, Mount Pleasant, 3/22/22
“Compliments to Adam Rogan for his in-depth coverage of the March 4 rally to oppose building an oil pipeline, referred to as Line 5, through northwestern Wisconsin. The rally was held by a coalition of local organizations and was part of a statewide effort called March Forth to Earth Day,” Shirley A. Reynolds writes in the Journal Times. “...In the article, Rogan explained that the pipeline, which carries 23 million gallons of crude oil and natural gas between Superior and Sarnia, Ontario, daily has already leaked into the Bad River watershed and is threatening the Great Lakes. We must not take our water from Lake Michigan for granted. We must not allow it to become polluted and worthless. Please notify the Wisconsin Department of Natural Resources by March 18 to let them know that you oppose the building of Line 5… “Without clean water, there is no life of any kind. It is imperative that we act now to protect it for ourselves and for future generations.”
Helena Independent Record: The shameless pretext oil, gas industry is using to demand more public land leasing
Aubrey Bertram is a staff attorney at Wild Montana, 3/20/22
“In the last few weeks, we’ve watched with horror as Russian troops have invaded Ukraine and committed one atrocity after another against innocent civilians,” Aubrey Bertram writes for the Helena Independent Record. “...President Biden has rightly implemented a series of sanctions, including banning Russian oil and gas imports… “The oil and gas industry isn’t helping, and may in fact be driving up energy costs by prioritizing stock buybacks and shareholder payouts over efforts to make the cost of oil more affordable for consumers. But we shouldn’t be surprised. The industry is, after all, driven by profit, not by altruism. To make matters worse, the industry is right now shamelessly using the war in Ukraine and the economic hardships many Americans are facing as pretexts for demanding more federal oil and gas leases and permits than it already has. And it has a mountain of them. Currently, the oil and gas industry is sitting on more than 9,000 unused permits. There’s nothing stopping companies from using those permits and drilling now on public lands. Moreover, of the more than 26 million acres of public lands currently leased to the oil and gas industry, nearly 13.9 million (or 53%) of those acres are sitting unused… “Let’s be clear: making more public land available for leasing and issuing more permits to drill will do nothing to ease the economic burden Americans are facing at the gas pump. It will, however, exacerbate the climate crisis that is already having devastating effects around the globe, including here in Montana. That’s because leases and drilling permits issued today are huge sources of potential emissions, threatening today’s efforts to reduce emissions and transition us away from fossil fuels.”
Bismarck Tribune: Editorial: No switch to flip to boost US oil output
3/19/22
“Too often politicians, pundits and others try to simplify complex issues into short statements with a kernel of truth. Such is the case with rising oil and gas prices,” the Bismarck Tribune Editorial Board writes. “Republicans blame President Joe Biden’s policies for the high cost of gas and urge him to open more public land for leasing. Biden counters that the Russian war against Ukraine has caused prices to spike. The president also points out that the industry has 9,000 drilling permits nationwide to develop federal minerals… “While many are encouraging companies to increase production, it’s not easy to do. Companies plan a year or more in advance on production levels. There’s also the issue of capital, which is more difficult with reluctant investors… “The upstream industry is not a public service industry,” Ben Dell, founder of Kimmeridge Energy Management, told the Associated Press. “For 10 years we made no money. The industry is profitable for two months, and the argument is that we’re supposed to price down the product or give away margins to support the consumer." It’s doubtful the industry will rush to increase production because of the war. As of last month there were more than 4,300 drilled but uncompleted wells in the country. There also are federal leases that have been granted, but not acted upon. It’s not accurate to blame Biden for the industry not ramping up production. Nor is it correct for Biden to totally blame the Russian invasion for soaring gas prices… “It would be helpful if our leaders from both parties didn’t imply increased oil production could be easily achieved.”
Washington Post: Opinion: Canadian energy won’t save Europe from Russia
J.J. McCullough, 3/21/22
“The world needs more Canada.” The phrase began life as a bookstore slogan, but has since evolved into the foreign policy mantra of a certain sort of Canadian,” J.J. McCullough writes for the Washington Post. “...In the wake of Russia’s invasion of Ukraine, and the shake-up of the world order that it has provoked, Canadians inclined to view their country as the world’s answer to everything have emphasized one particular helping hand they’re eager to extend: oil and gas. European nations import around a quarter of their oil and about 40 percent of their natural gas from Vladimir Putin’s Russia… “Europe’s dependence on Russian oil and gas, which in the absence of regime change in Moscow it must lessen, is an opportunity for Canada,” declared the Globe and Mail editorial board… “Yet this abundance has also resulted in a bit of a “to a hammer, every problem looks like a nail” mind-set among Canadian elites, in which the country’s large oil and gas supply is perceived as being more useful, both economically and geo-strategically, than it might actually be… “Unless Canada wants to abruptly reroute its supply to a new overseas market, the country would have to increase its output at levels not even the oil industry itself considers plausible to fill the Russian gap. And that’s without factoring in Canada’s extraordinarily limited capacity to even ship oil overseas at all. Canada’s natural gas situation should provoke more optimism, given that the Europeans don’t seem to have as well developed a strategy to phase out gas… “Yet here, too, Canada is hampered by a limit of export capacity… “The idea of Canada saving Europe with its energy bounty is a romantic one, affirming the sort of grand, global role many Canadians assume their country is destined to play.”