EXTRACTED: Daily News Clips 3/2/23
PIPELINE NEWS
Roanoke Times: Mountain Valley Pipeline does not threaten endangered species, federal agency finds
Energy News Network: Pipeline developer says Illinois carbon sequestration sites could be just the beginning
KIWA: House Panel Passes Proposed Carbon Pipeline Regulations
Sierra Club Iowa: CO2 Pipeline Legislation on its way to the House floor
The Courier: Bremer County's pipeline rules adopted as state lawmakers consider legislation
Nebraska Examiner: Oil-soaked soil from Kansas pipeline spill was sent to landfill near Omaha
The Meadville Tribune: Pa. state senators urge Biden to restart Keystone XL pipeline project
Oregon News Service: Gas pipeline expansion would hurt Northwest climate goals, say opponents
Inlander: Environmental and faith groups oppose plans to pump more gas through an Inland Northwest pipeline
Oil & Gas Journal: Enbridge to expand Flanagan South crude pipeline, build EHOT terminal
African Business: Paris court dismisses NGOs’ lawsuit against East African Crude Oil Pipeline
WASHINGTON UPDATES
Washington Post: Officials offer climate activists possible deal on Alaska oil project
Washington Post: House Republicans want to overhaul the nation’s permitting process. What will Democrats do?
InsideEPA: GOP Permit Plans Face Partisan Split Amid Broad Interest In Streamlining
NOLA.com: Garret Graves Wants To Revamp 50-Year-Old Environmental Law
E&E News: House Panels Approve 16 Republican Energy Bills
E&E News: States Ask Supreme Court To Upend NEPA Offshore Fracking Ruling
The Hill: EPA proposal expected to expand sales of high-ethanol gasoline in Midwest states
E&E News: EPA’s Risky Methane Gambit: Let Outsiders Look For Leaks
STATE UPDATES
U.S. Energy Information Administration: Colorado refinery outage is causing higher gasoline prices in Rocky Mountain region
EXTRACTION
Reuters: Canadian producers predict C$40 bln 2023 upstream oil and gas investment
Financial Post: Enbridge bets there's a future for oil and gas with $3.3 billion worth of new projects
Reuters: Chevron CEO does not rule out consolidation among oil majors
CLIMATE FINANCE
E&E News: Congress torpedoes Biden ESG rule
Press release: Stand.earth files no fossil fuel expansion financing shareholder resolution at Royal Bank of Canada
TODAY IN GREENWASHING
The Narwhal: In central Alberta, public school teachers gather for session on ‘bright future for oil and gas’
OPINION
Bismarck Tribune: Tribune editorial: Landowners need pipeline protections
Wall Street Journal: The Willow Oil Test for Biden
The Nelson Daily: OPINION: Rewarding destroyers, punishing defenders
PIPELINE NEWS
Roanoke Times: Mountain Valley Pipeline does not threaten endangered species, federal agency finds
Laurence Hammack, 3/1/23
“Five federally protected species of bats, fish and a plant are not likely to be jeopardized by running a large natural gas pipeline through their habitats, the U.S. Fish and Wildlife Service has determined,” the Roanoke Times reports. “A 297-page biological opinion of the Mountain Valley Pipeline’s impact on threatened and endangered species, released Wednesday, marked the third time the Fish and Wildlife Service has studied the issue. Two earlier opinions reached the same conclusion in 2017 and 2020, but were invalidated by a federal appeals court… “The finding was derided by opponents, who say building a 303-mile pipeline through pristine woodlands and across clear-running streams has already had dire environmental consequences. “Here on the ground, our critters — particularly the endangered and threatened ones — are invaluable to our entire ecosystem,” Russell Chisholm of the Protect Our Water, Heritage, Rights Coalition, told the Times. “We are in the midst of an escalating climate crisis where it’ll get harder for human and non-human species to stay alive. Yet our regulatory agencies are allowing an unnecessary fracked gas pipeline to destroy our home for no reason other than satisfying corporate greed.” “...Shortly before the completion deadline for the report, environmental groups involved in the litigation submitted “voluminous materials” to the Fish and Wildlife Service, it said. The “last-minute” submissions came too late to be meaningfully addressed, Cindy Schulz, a Virginia field supervisor for the agency, wrote at the end of the 297-page report… “Appalachian Voices, one of the groups involved in the legal action, expressed concerns about the way the decision was reached. “The agency has not addressed legitimate public concerns,” Peter Anderson, Virginia policy director of the organization, told the Times, “and the U.S. Fish and Wildlife Service’s lack of transparency and thoroughness during this decision process is irresponsible.”
Energy News Network: Pipeline developer says Illinois carbon sequestration sites could be just the beginning
Kari Lydersen, 2/2/23
“After filing a new application for a multi-state carbon dioxide pipeline, Navigator CO2 Ventures says its two proposed sequestration sites in Illinois will not be the last word on the project,” Energy News Network reports. “We want to build out something that’s dynamic in nature, which means a variety of on-ramps [and] a variety of off-ramps,” Elizabeth Burns-Thompson, Navigator’s vice president of government and public affairs, told ENN. “The geology in Central Illinois is ripe for sequestration, and the ability to do this safely in a number of counties has great potential. We want to go out and map landowner interest and appetite with where the geology makes sense.” Navigator has refiled its petition with the Illinois Commerce Commission for an expanded carbon dioxide pipeline route, adding a 42-mile spur to a proposed carbon sequestration site that was not listed in an earlier proposal. That petition was withdrawn in January at the urging of regulatory staff, who said it lacked sufficient detail, and in the face of intense local opposition… “Navigator’s Illinois application notes that carbon dioxide carried in the pipeline may be stored in “terminal facilities” that would make it available for industrial users as “an efficient source of carbon dioxide.” The application says these hubs would be located in Iowa, not Illinois, but Burns-Thompson told ENN that carbon dioxide could also be sold to industrial users in Illinois in the future… “As of December, the company had only secured 6% of the easements it would need from Illinois landowners, according to filings with the Illinois Commerce Commission. And Christian County, where it proposed to sequester carbon, passed a moratorium on carbon dioxide pipelines. Navigator has offered lucrative fees to both counties targeted for sequestration in exchange for local officials agreeing to facilitate pipeline development, and the company plans to offer such payments to all counties on the pipeline’s path, Burns-Thompson told ENN… “Critics see it differently, and they note that the offers were made despite Christian and McDonough counties passing moratoria on such pipelines… “They’ve been hitting counties along the route and trying to buy them out,” said Pam Richart, leader of an Illinois coalition against carbon dioxide pipelines, during a Feb. 27 webinar. “They’ve been offering some pretty hefty dollars. The counties are holding fast, holding firm and saying no.” “...During the Feb. 27 webinar where Richart discussed Navigator’s revised application, organizers in Iowa, South Dakota, Nebraska and Minnesota discussed other pipeline proposals and their efforts to block them… “Shelli Meyer, whose family has owned a Nebraska farm for a century, said landowners feel they are facing “harassment” as agents contact them repeatedly asking them to sign easements. “We’re telling people, ‘Don’t sign, don’t sign, don’t sign,’” she said.
KIWA: House Panel Passes Proposed Carbon Pipeline Regulations
SCOTT VAN AARTSEN, 3/1/23
“A House committee has approved a bill to require that developers get permits from every other state other along proposed carbon pipeline routes before construction could begin here,” KIWA reports. “Representative Steven Holt, a Republican from Denison, is chairman of the House Judiciary Committee. The bill was approved Tuesday night by Holt’s committee. It outlines how farmers could file claims if tile lines are damaged or the topsoil from cropland displaced by the pipelines isn’t restored. The bill also would require voluntary participation from property owners along 90 percent of the route before state regulators could grant the pipeline companies authority to seize the rest of the land. Pipeline developers and the renewable fuels industry oppose the bill. Representative Bobby Kaufmann, a Republican from Wilton who voted for the bill, told KIWA private property rights are worth protecting. During Tuesday night’s committee meeting, Representatives Megan Jones of Sioux Rapids and Megan Srinivas of Des Moines announced they would not vote on this or any other bills dealing with the pipelines. Both said their families may have a financial stake in the pipelines since the routes pass through their land and the companies offer compensation for those easements.”
Sierra Club Iowa: CO2 Pipeline Legislation on its way to the House floor
3/1/23
“A major bill has been introduced in the Iowa House that strengthens the pipeline easement requirements and landowner rights regarding pipeline construction,” Sierra Club Iowa reports. “This pipeline bill – HF368 - was introduced by Representative Steven Holt, along with 22 co-sponsors, including House Speaker Pat Grassley. Among its features are… The bill requires 90% of route miles as voluntary easements before eminent domain can be used… There are two parts of the bill that Sierra Club would like to see changed. First, instead of using miles to determine voluntary easements, we would prefer that it use parcels. Parcels is the unit used by the Utilities Board during its processes plus the county compensation boards deal with parcels during eminent domain proceedings. Second, we prefer that the amount of land required as voluntary easements needs to be greater than 90% and would prefer that to be 98% or even a total ban on eminent domain for these projects that are benefiting private companies and are not in the public good. With that being said, we encourage you to contact your state representative and ask for their support of HF368.”
The Courier: Bremer County's pipeline rules adopted as state lawmakers consider legislation
Andy Milone, 2/28/23
“Bremer County’s land use ordinance regulating carbon dioxide pipelines will become law soon,” The Courier reports. “The Board of Supervisors unanimously passed the new zoning rules on the third and final reading on Monday, according to Finance Director Kassandra Johansen. The ordinance establishes setbacks for any project and will become official upon its publication in a newspaper of regular circulation in the coming days… “Navigator representatives were present at the first two readings but not the third, Johansen told the Courier. They’ve not indicated whether the company intends to challenge the ordinance in court… “The county’s new ordinance also comes with a slew of emergency response and hazard mitigation planning requirements… "We are committed to continuing to work collaboratively, but also recognize that local ordinances should not and cannot be crafted in a manner that exceed legal authority under the law or effectively prevent development,” Navigator told the Courier.
Nebraska Examiner: Oil-soaked soil from Kansas pipeline spill was sent to landfill near Omaha
PAUL HAMMEL, 2/28/23
“Thousands of cubic yards of oil-soaked soil from a pipeline leak in Kansas ended up in a landfill in the Omaha area, and an environmental watchdog wants the state to make sure it isn’t contaminating anything here,” the Nebraska Examiner reports. “This is a foreign corporation that is using Nebraska as a dumping ground,” Jane Kleeb, the founder of Bold Nebraska, told the Examiner. State officials, she told the Examiner, should have informed Nebraskans that this waste was coming here and should now insist on regular monitoring to ensure it is not impacting soil or water here. The oil-drenched soil contains some hazardous chemicals, including benzene and hydrogen sulfide, according to lab reports posted on the Nebraska Department of Environmental and Energy website. Officials with both Canada-based TC Energy and the Pheasant Point Landfill near Bennington told the Examiner that lab tests of the soil, trucked from the crude oil leak on the Keystone pipeline in northeast Kansas, have deemed it safe to be deposited at the landfill. Carla Felix, a spokeswoman for the Nebraska Department of Environment and Energy, told the Examiner the department was “confident” the soil qualified as “nonhazardous solid waste,” after reviewing lab reports required by the Kansas Department of Health and Environment and the EPA… “Kleeb, whose group led the opposition to a now-abandoned companion to the Keystone pipeline, the Keystone XL, told the Examiner there is “no way” the soil and other materials hauled from the pipeline leak are not hazardous. Citizens, she told the Examiner, should have been informed that this waste was coming from Kansas and should be made aware of the ongoing monitoring of it. “How many landfills said ‘no’ before ours said yes?” Kleeb asked.
The Meadville Tribune: Pa. state senators urge Biden to restart Keystone XL pipeline project
Eric Scicchitano, 3/2/23
“The Pennsylvania Senate adopted a resolution Tuesday urging President Joe Biden to restart and expedite the completion of the Keystone XL pipeline,” The Meadville Tribune reports. “The resolution encourages Biden to reverse course on a decision he made on his first day in office to revoke a permit to construct the pipeline and related facilities that cross the U.S.-Canada border. The Biden administration determined the environmental risks were too great in light of climate change, instead favoring clean energy initiatives. The resolution states that the $8 billion pipeline project would create economic development, source crude oil from North America and limit reliance on imports from Russia, citing that country’s invasion of Ukraine and dependence on revenue from natural resources. State senators voted 31-18 to approve the simple resolution with four Democrats joining 27 Republicans in support. It was introduced by Sen. Wayne Langerholc and Sen. Gene Yaw. “The Keystone XL pipeline is critical to our national energy infrastructure and creates thousands of jobs,” Yaw told the Tribune. “Although shortsighted climate rhetoric has left our national security at risk, we can still pivot and limit the impacts of this geopolitical crisis.” “...The pipeline route passed through Indigenous tribal land. Indigenous persons, ranchers and local and global environmentalists opposed the project and its potential risks including to an aquifer in Nebraska that is a groundwater source for millions of Americans.”
Oregon News Service: Gas pipeline expansion would hurt Northwest climate goals, say opponents
Eric Tegethoff, 3/2/23
“Environmental groups want West Coast governors to speak out against the expansion of a gas pipeline in the region. The Canadian company T-C Energy is proposing to increase capacity for its G-T-N XPress pipeline, which stretches more than 1,300 miles from Canada through Washington state, Oregon and California,” Oregon News Service reports. “Maig Tinnin, coordinator for Rogue Climate in southern Oregon, told ONS a lot of work has been done to ensure state and local governments in the Northwest pass strong climate goals to transition away from fossil fuels. "This increase in fracked gas flowing through the Northwest would fly in the face of all of that work," Tinnin told ONS… “Oregon Senators Jeff Merkley and Ron Wyden have expressed their opposition to the expansion project. Audrey Leonard, staff attorney with Columbia Riverkeeper, told ONS the pipeline poses safety concerns, noting T-C Energy is the company behind the Keystone Pipeline System that recently leaked more than 600,000 gallons of oil in Kansas. The Federal Energy Regulatory Commission held a public hearing on the expansion project, and in response to the spill more than 150 opponents of the G-T-N XPress held a "people's hearing" earlier this month.”
Inlander: Environmental and faith groups oppose plans to pump more gas through an Inland Northwest pipeline
Samantha Wohlfeil, 3/1/23
“Plans to expand the capacity of an existing natural gas pipeline that goes through the Inland Northwest have concerned environmental and faith groups as they worry about climate impacts and resident safety,” Inlander reports. “TC Energy, the Canadian company that also owns the Keystone Pipeline System, has proposed increasing the capacity of its Gas Transmission Northwest (GTN) pipeline that runs from British Columbia to California, going through North Idaho, Eastern Washington and Oregon on the way… “But others are skeptical that the gas will actually be needed in the long run. The attorneys general of Washington, Oregon and California filed a motion last August arguing that the expansion would counteract emission reduction laws in the Pacific Northwest that are meant to combat climate change in coming years… "Expansions like this are not in the public interest," Helen Yost, community organizer for Wild Idaho Rising Tide, a conservation group in Sandpoint, told Inlander. "In terms of gas leaks, in some ways they're even more hazardous than tar sands and other oil leaks — they have the potential for fiery explosions that can impact people much farther away from the site of an accident." “...Faith groups organized through Earth Ministry/Washington Interfaith Power & Light gathered with environmental groups multiple times in recent months to protest the expansion. "This project has great risks to harm our neighbors both in Spokane if there were a potential explosion, and through increasing climate impacts and emissions in our state," Maddie Smith, an advocacy organizer for Earth Ministry, told Inlander. "And there would be impacts from fracking all of the gas ... that would happen in northeast British Columbia."
Oil & Gas Journal: Enbridge to expand Flanagan South crude pipeline, build EHOT terminal
Christopher E. Smith, 3/1/23
“Enbridge Inc. is negotiating with shippers for as much as 95,000 b/d of incremental contract capacity on its 585,000-b/d Flanagan South crude oil pipeline system (FSP) and plans to hold an open season in March 2023,” Oil & Gas Journal reports. “As part of managing the additional commitments on FSP, Enbridge will build the 15-million bbl Enbridge Houston Oil Terminal (EHOT)... “Finally, Enbridge is planning to build a 14 km natural gas pipeline to support ArcelorMittal Dofasco GP's plan to change the way it makes steel, eliminating coal as a fuel for ironmaking. Enbridge describes it as the largest greenhouse gas emissions-reduction project underway in Ontario, with expectations that it will reduce emissions by 60% from current levels.”
African Business: Paris court dismisses NGOs’ lawsuit against East African Crude Oil Pipeline
Leo Komminoth, 3/2/23
“A Paris court has thrown out a lawsuit filed against TotalEnergies by six NGOs, including two French and four Ugandan groups, over the controversial East African Crude Oil Pipeline,” African Business reports. “The $5bn pipeline is set to run from Uganda’s Lake Albert oil reserves to the Tanzanian port of Tanga, displacing an estimated 100,000 people from their land, according to environmental campaigners. The NGOs had accused Total Energies of failing to consider human and environmental rights, but the French court ruled that they had failed to respect legal procedures and presented different grievances during the trial than when the case was launched in 2019. During the trial, the NGOs presented over 200 pieces of supporting evidence in an attempt to strengthen their case, but the judge ruled that the case, which had been filed using a fast-track procedure, was beyond the court’s capacity and required thorough examination. The six NGOs had originally lodged their complaint four years ago, using a then-recently adopted French law that requires multinationals and their subcontractors to demonstrate rigorous consideration of human and environmental rights in the implementation of their projects. France was a pioneer in adopting the so-called “duty of care” laws, with other European countries such as the Netherlands, Germany, and Norway subsequently following suit. But the Paris court observed that the law remains unclear, with no specific guidelines on how multinationals should operate, making it difficult for judges to impose sanctions.”
WASHINGTON UPDATES
Washington Post: Officials offer climate activists possible deal on Alaska oil project
Maxine Joselow, 3/2/23
“White House officials have told major environmental groups in recent days that they may pair approval of the controversial Willow oil project on Alaska’s North Slope with new conservation measures across the state — but many climate activists are not sold on the compromise, according to three people involved or briefed on the calls, the Washington Post reports. “The administration is set to make a high-stakes decision on the multibillion-dollar Willow project as soon as Monday. The compromise measures under discussion include a new ban on drilling in the Arctic Ocean off Alaska’s North Slope and more protections for wildlife habitat in other parts of the state, two people familiar with the talks, all of whom spoke on the condition of anonymity to discuss confidential communications, told the Post. The people added that administration officials are seriously considering shrinking the project to just two approved drilling pads — a size so small that ConocoPhillips, the company behind Willow, could back out. Still, environmentalists remain convinced that the project would hasten a climate catastrophe… “Rejecting a project like Willow should be a no-brainer for a climate leader like Biden. And if he doesn’t, it’ll be a stain on his legacy,” Lena Moffitt, chief of staff at the climate advocacy group Evergreen Action, told the Post.
Washington Post: House Republicans want to overhaul the nation’s permitting process. What will Democrats do?
Maxine Joselow, 3/2/23
“House Republicans are racing to pass an energy package this spring that would speed up the nation’s permitting process for new natural gas pipelines, wind turbines and other energy infrastructure projects,” the Washington Post reports. “Democrats now have a dilemma: They could agree to work with Republicans on permitting legislation and risk blowback from prominent environmental groups, or they could shun the permitting talks and risk slowing the nation’s clean-energy transition. “Any final permitting package is going to probably include some stuff we don’t love — but we know we need to do this for our climate goals,” one House Democratic staffer who, like others interviewed for this report, spoke on the condition of anonymity to describe private discussions, told the Post… “Democrats could face fierce blowback from environmentalists if they’re seen as working to weaken NEPA, a bedrock environmental law that has been used to block polluting projects, often in low-income and minority neighborhoods… “Rep. Scott Peters (D-Calif.), who has been trying to persuade his party to support permitting legislation, acknowledged the politically explosive nature of reopening NEPA. “There’s a camp of people who, I think, view NEPA as sacrosanct and biblical,” Peters told the Post. “There’s another group of people who recognize that it’s totally reasonable to adapt environmental laws for the situation we’re facing today. I don’t think in 1970 we would’ve said that we were facing a climate crisis.” Peters told the Post he has discussed permitting proposals with several Democratic colleagues in recent weeks, although he declined to name them. Christian Unkenholz, a spokesman for Rep. Jimmy Panetta (D-Calif.), confirmed to the Post that his boss has spoken with Peters about the issue. But other Democratic lawmakers have told the Post they don’t want to be publicly associated with permitting talks for fear of angering major environmental groups, according to one person familiar with the matter. (It could not be learned who those lawmakers are.)”
InsideEPA: GOP Permit Plans Face Partisan Split Amid Broad Interest In Streamlining
2/28/23
“Democratic lawmakers are bashing various elements of Republican legislation to ease environmental reviews of fossil fuel development, certain other energy projects and hardrock mining, highlighting a deep partisan split on the issue even as lawmakers from both parties express an interest in streamlining permitting policies,” InsideEPA reports. “Democrats’ critiques at a Feb. 28 House hearing focused on provisions that speed fossil fuel permitting, but other, less-debated provisions of the legislation could gain some bipartisan traction in part because they could ease deployment of carbon-free energy sources or necessary grid upgrades. One of the bills is known as the Transparency and Production (TAP) of American Energy Act, and it was introduced by House Natural Resources Committee Chairman Bruce Westerman (R-AR), a key lawmaker in GOP efforts to overhaul permitting rules. The bill ‘would eviscerate the authority and discretion of land and ocean energy management agencies to make smart informed and prudent decisions about the best uses of our shared public lands and offshore areas,’ charged Rep. Alexandria Ocasio-Cortez (D-NY) during a Feb. 28 hearing of the committee’s energy panel. Another bill the panel considered, Rep. Pete Stauber’s (R-MN) Permitting for Mining Needs Act, would ‘limit environmental reviews and egregiously it would allow mining companies to conduct their own mining reviews’ Ocasio-Cortez argued.”
NOLA.com: Garret Graves Wants To Revamp 50-Year-Old Environmental Law
Mark Ballard, 2/28/23
“A hurricane protection and levee strengthening project along the Atchafalaya River from Morganza to the Gulf of Mexico began in the 1980s. A similar project for wetlands west of New Orleans began before U.S. Rep. Garret Graves was born in 1972. Neither began to turn dirt until a few months ago. The reasons for decades of delay, Graves said Tuesday, were the legal hurdles caused by the project’s permitting and litigation over its environmental impact,” NOLA.com reports. “It takes an average of seven years – and sometimes a billion dollars – to comply with the law, the Baton Rouge Republican said upon introducing his legislation Tuesday to the House Energy and Mineral Resources subcommittee. He said his plan, called the BUILDER Act, would ‘modernize’ the National Environmental Policy Act that was passed in 1970. The BUILDER Act proposes changes to NEPA that would calibrate the analysis of the environmental impact and put project work on a timeline. Environmental assessments would be shorter and simpler to review, Graves told reporters Tuesday morning. Environmental impact statements would still be done when necessary. And it would be trickier for opponents of projects to file lawsuits to stall the work, as his plan would require them to first try to reconcile their concerns through the public process.”
E&E News: House Panels Approve 16 Republican Energy Bills
Nico Portuondo, 3/1/23
“Two House Energy and Commerce subcommittees approved a roster of bills Tuesday that are likely destined to become part of a larger House Republican energy package in March, but the party-line votes showed GOP efforts may remain almost entirely partisan going forward,” E&E News reports. “The Subcommittee on Energy, Climate and Grid Security and the Subcommittee on Environment, Manufacturing and Critical Materials held two separate markups to pass 16 bills combined, which ran the gamut of hot energy and environment topics like minerals, oil exports and pipelines.”
E&E News: States Ask Supreme Court To Upend NEPA Offshore Fracking Ruling
Niina H. Farah, 3/1/23
“A ruling ordering a new environmental review of hydraulic fracturing off California’s coast could jeopardize state revenue from fossil fuel production, a coalition of red states told the Supreme Court on Monday,” E&E News reports. “Texas, Alaska, Idaho, Montana, Oklahoma and Utah said in a joint ‘friend of the court’ brief that the justices should reverse a 9th U.S. Circuit Court of Appeals decision upholding a ban on unconventional offshore oil production on the Pacific outer continental shelf. The ruling enables opponents of fossil fuel development to use procedural law to ‘weaponize a host of environmental statutes to thwart innovative and productive offshore oil-and-gas exploration activities,’ the states told the Supreme Court. The red states are lending their support to a petition filed in January by the American Petroleum Institute, Exxon Mobil Corp. and DCOR LLC, which seeks to reverse the 9th Circuit’s finding that the Bureau of Ocean Energy Management’s review of fracking and other extraction practices violated the National Environmental Policy Act. Environmental groups supporting the ban have warned that allowing the extraction methods would harm a region known as the ‘Galapagos of North America’ because of its biodiversity.”
The Hill: EPA proposal expected to expand sales of high-ethanol gasoline in Midwest states
RACHEL FRAZIN, 3/1/23
“The Environmental Protection Agency is proposing action that’s expected to expand the sale of gasoline made with higher concentrations of ethanol in eight states near the Midwest,” The Hill reports. “The move is expected to allow more sales of gasoline with 15 percent concentrations of ethanol, rather than the more common type with 10 percent concentrations of ethanol, in the summer. It comes after a request from the states’ governors, and is seen as a win for the biofuels industry. However, it is not expected to take effect until 2024. Brian Jennings, CEO of the American Coalition for Ethanol, told The Hill that in the long-term, the change would be “enormously important” for the industry… “Jennings told the Hill that this puts gasoline with a higher concentration of ethanol on “equal footing” in those states as fuel refiners would now be expected to make gasoline using different methodology that could also include gasoline with more ethanol.”
E&E News: EPA’s Risky Methane Gambit: Let Outsiders Look For Leaks
Jean Chemnick, 3/1/23
“EPA has proposed something new, and oil and gas advocates are sounding the alarm,” E&E News reports. “The agency’s draft methane rules released last fall would, for the first time, give citizens and communities a formal role in policing petroleum operations for spikes in pollution from equipment malfunctions or other mishaps. There’s nothing new about cities or citizen organizations keeping a watchful eye on emissions from local energy developers to safeguard their air quality. But when a sudden leak is found, the state regulators and the company have largely had the discretion to respond as they see fit.”
STATE UPDATES
U.S. Energy Information Administration: Colorado refinery outage is causing higher gasoline prices in Rocky Mountain region
3/1/23
“The only petroleum refinery in Colorado shut down in late December after sustaining damage from extremely cold weather, and it is expected to remain offline for months to repair, the refinery owner and operator, Calgary-based Suncor, stated. The refinery outage may tighten the supply of gasoline and diesel in Colorado and, more broadly, the Rocky Mountain region, leading to higher retail prices for both,” according to the U.S. Energy Information Administration. “From the end of December to February 20, the average retail gasoline price increased 51% in Colorado and 27% in the Rocky Mountain region, according to our Gasoline and Diesel Fuel Update, compared with a 9% increase in the United States overall. On December 24, Suncor shut down its 103,000-barrel per day (b/d) oil refinery in Commerce City, Colorado, just outside of Denver. Suncor announced that extreme cold weather earlier in the month had damaged equipment and that the repairs would require a full shutdown of the facility and delay operations until the end of the first quarter of 2023… “The Commerce City refinery outage means the region must draw from existing regional inventories and transfer petroleum products from other out-of-state refineries.”
EXTRACTION
Reuters: Canadian producers predict C$40 bln 2023 upstream oil and gas investment
3/1/23
“The Canadian Association of Petroleum Producers (CAPP) said on Wednesday it expects oil and natural gas investment in upstream production will reach C$40 billion ($29.4 billion) in 2023, surpassing pre-COVID levels,” Reuters reports. “The total investment forecast is C$4 billion, or 11%, more in additional spending across Canada's economy than the previous year, mainly directed towards environmental protection and emission reduction technologies. "Investment into Canada's oil and natural gas industry circulates back into the economy, benefiting all Canadians," said Lisa Baiton, CAPP President and CEO. Out of the total investment, conventional oil and natural gas capital investment for 2023 is forecast at C$28.5 billion, while oil sands investment is expected to reach C$11.5 billion, CAPP said in a statement. "The year 2023 may be one of the most pivotal moments in time for Canada's oil and natural gas industry," Baiton told Reuters. The additional spending on emission reduction technologies will include advancing the development of carbon capture utilization and storage (CCUS), the statement added.”
Financial Post: Enbridge bets there's a future for oil and gas with $3.3 billion worth of new projects
Meghan Potkins, 3/1/23
“Pipeline giant Enbridge Inc. announced $3.3 billion in new spending on a trove of projects, including an oil terminal in Texas that could become an outlet for increased Canadian crude exports via the United States,” the Financial Post reports. “In an update to investors on March 1, Calgary-based Enbridge announced it will spend US$240 million to construct a new heavy-oil terminal in Houston, at the terminus of its Seaway Pipeline system, which carries Canadian crude and other U.S. crude types to the Gulf Coast. “We plan to move forward with our Houston oil terminal for an initial capacity of 2.5 million barrels,” Enbridge chief executive Greg Ebel said at his first investor day conference since taking over from former CEO Al Monaco last month. “This will provide even more U.S. Gulf Coast optionality for our customers.” The new terminal will have access to Houston-area refineries and export access through the Seaway docks at Freeport and Texas City — as well as potential future export access through Enbridge’s partnership in Enterprise Products Partner L.P.’s proposed Sea Port Oil Terminal (SPOT) project offshore of Freeport… “Enbridge also announced a number of gas projects, including an agreement to acquire 35 billion cubic feet of gas storage in the Gulf Coast for US$335 million, as well as an US$80-million investment in U.S. biogas company Divert Inc.”
Reuters: Chevron CEO does not rule out consolidation among oil majors
2/28/23
“Chevron Corp. Chief Executive Michael Wirth on Tuesday said a consolidation between the five top Western oil producers remains a possibility but would face regulatory hurdles,” Reuters reports. “Soaring stock prices and cash levels at oil-focused U.S. energy majors has driven Wall Street talk of potential deals for European oil producers. Citi analysts in January speculated Chevron or Exxon Mobil could acquire BP PLC, Shell PLC or TotalEnergies due to valuation differences. “I never say never about anything,” Wirth said in a media briefing following the company’s annual business update for investors. “But it would not be simple to execute, just given the realities of getting something like that approved.” Regulatory and government approvals make the process more complex than in the late 1990s when the greater number of oil companies and depressed shares prices triggered consolidation that led a handful of supermajors. “As you get down to fewer people who overlap, the regulatory challenges and government approvals, etc., gets a little bit more complex,” Wirth said… “Spending faster doesn’t necessarily make opportunities better. It just means spending faster…We will be patient.”
CLIMATE FINANCE
E&E News: Congress torpedoes Biden ESG rule
Jeremy Dillon, 3/2/23
“President Joe Biden faces his first veto prospect after the Senate voted Wednesday to nullify an administration rule that would enable retirement funds to consider environmental, social and governance factors when considering investments,” E&E News reports. “The 50-46 vote, which required only a simple majority to advance, is likely to embolden Republican attempts to roll back more Biden administration environmental regulations. GOP lawmakers are eager to put vulnerable Democrats on the spot for controversial regulations — the party is already teeing up another effort to undo a Clean Water Act rule. Every Republican along with centrist Democrats Joe Manchin of West Virginia and Jon Tester of Montana — both of whom are up for reelection in 2024 — backed the resolution. Four senators, including Sens. Mike Crapo (R-Idaho), Dianne Feinstein (D-Calif.), Jeff Merkley (D-Ore.) and John Fetterman (D-Pa.) did not vote. The White House reiterated yesterday that Biden would follow through with his veto threat. With only 50 senators backing the effort to undo the rule, the effort falls far short of the required two-thirds majority needed to override a presidential veto. “Republicans talk about their love of free markets, small government and letting the private sector do its work. The Republican bill is opposite of that,” White House press secretary Karine Jean-Pierre told E&E. “It forces MAGA Republicans’ ideology down the throats of the private sector and handcuffing investors as well … that is why he will veto this bill if it does come to his desk.”
Press release: Stand.earth files no fossil fuel expansion financing shareholder resolution at Royal Bank of Canada
3/1/23
“Today, Stand.earth is announcing the filing of a climate related resolution with Canada’s largest bank, the Royal Bank of Canada (RBC) to end financing for fossil fuel expansion. The bank is expected to release its proxy circulars this week ahead of its April 5 annual general meeting (AGM) in Saskatoon. RBC is Canada’s worst fossil fuel bank, and the 5th worst offender in the world, including financing Indigenous sovereignty-violating projects like the Coastal GasLink fracked gas pipeline without consent from Wet’suwet’en Hereditary leadership. Despite net-zero commitments and public climate rhetoric, RBC has financed over CAD $262 billion in fossil fuel companies since the Paris Climate Agreement was signed in 2016, and continues to finance the expansion of fossil fuel projects. Richard Brooks, Stand.earth Climate Finance Director, issued the following statement: “Right now, people across Canada and North America are paying the costs of RBC’s misguided fossil fuel financing through devastating fires and floods. Instead of greenwashing and redwashing, RBC has the opportunity to step into real leadership and end fossil fuel expansion financing at its April 5 shareholder meeting. Science and justice make it clear: for any shot at curbing the worst of climate destruction, there can be no new fossil fuel projects. We are calling on all shareholders – from retail investors to big pension funds – to support this resolution, and direct RBC to align its financing with its rhetoric of honoring Indigenous sovereignty and acting on the climate crisis.” “...Ahead of AGMs, Stop the Money Pipeline, a coalition of over 200 organizations, is launching a Shareholder Showdown campaign to encourage investors to vote yes on the resolutions and against incompetent directors.”
TODAY IN GREENWASHING
The Narwhal: In central Alberta, public school teachers gather for session on ‘bright future for oil and gas’
Carl Meyer, 3/1/23
“Claire Kraatz was alarmed to find a fossil fuel industry session on the schedule for a teachers’ conference last week that promoted “a bright future for oil and gas,” The Narwhal reports. “She’s worried teachers are getting a one-sided message about the industry, one that won’t accurately reflect the scientific reality that fossil fuel emissions need to drop dramatically to hold global warming to less extreme levels… “The annual convention held by the Central Alberta Teachers’ Convention Association, which represents five local Alberta Teachers’ Association groups, hosted a talk focused on the Pathways Alliance, a group of oilsands companies. Kraatz, who is the volunteer co-lead for the Alberta chapter of For Our Kids, a national network of parents focused on climate action, told the Narwhal she didn’t know the content of the session, only how it was being promoted. She acknowledged it could lead to meaningful or genuine engagement on the issue of climate change, if the conversation moved beyond industry contributions to climate targets like cutting operational emissions through carbon capture, to include an emphasis on how society needs to transition to renewable energy sources… “The Alberta Teachers’ Association, the professional association for teachers and teacher administrators in the province, told the Narwhal that conventions put on “hundreds of sessions,” and organizers try to present a “wide variety of topics, speakers and viewpoints” teachers can learn from… “Lella Blumer, a national coordinator with For Our Kids, told the Narwhal the group is trying to call out attempts by the oil and gas industry to present the industry as on track to meet emissions reduction targets… “There’s a bright future for oil and gas, and students can drive change from within the industry,” the summary stated.
OPINION
Bismarck Tribune: Tribune editorial: Landowners need pipeline protections
2/20/23
“A proposed Burleigh County ordinance to require companies building hazardous liquid pipelines to submit emergency plans to local officials makes sense. Residents need to know a plan is in place if a pipeline problem occurs,” the Bismarck Tribune Editorial Board writes. “The proposed ordinance follows concerns by residents over the Midwest Carbon Express carbon dioxide pipeline… “The developer, Summit Carbon Solutions, has said the route 5 miles north of Bismarck is an adequate distance. Residents in the area question the safety of the pipeline and also have expressed concerns the pipeline could impede Bismarck’s growth to the north. County Planning Director Mitch Flanagan told commissioners they can't stop the pipeline, but the commission can ask for mitigating factors such as a safety plan. The proposed ordinance would require a pipeline company to provide educational materials to landowners and other interested parties. It also would require the company to submit an emergency action plan for approval to the Rural Fire District, Sheriff’s Department, Emergency Management Department and local emergency service providers… “The proposed rules seem more than reasonable to the Tribune editorial board. There’s nothing more important than the safety and health of our residents. A safety plan provides assurance to residents that there’s a plan of action for local responders if something bad happens… “Former Bismarck Mayor John Warford, who owns a ranch along the proposed route of the pipeline, questions the public benefits of the pipeline. Other than property taxes, he argues the major beneficiary of the pipeline will be Summit. The Tribune agrees that too often landowners are asked, actually ordered, to sacrifice for pipelines and other projects. They get paid, but often they value their land more than payments. The Burleigh County Commission should provide as much protection as possible for landowners and county residents.”
Wall Street Journal: The Willow Oil Test for Biden
The Editorial Board, 3/1/23
“President Biden says the only barrier to more U.S. oil production is recalcitrant drillers. Ok, Mr. President, then are you going to approve Alaska’s Willow project?” the Wall Street Journal Editorial Board writes. “ConocoPhillips acquired its first Willow leases in 1999 in Alaska’s National Petroleum Reserve (NPR-A), an area the size of Indiana that Congress specifically set aside for oil development. It’s the largest pending oil and gas project in the U.S., with expected production of 180,000 barrels of oil a day, and 600 million over 30 years. The Willow plan has passed every environmental analysis, would employ union labor and yield a revenue gusher… “But the green left opposes Willow as a climate “bomb,” no matter that career scientists in federal agencies disagree. Willow completed its first federal environmental review in August 2020, only to watch a judge require another one. The Biden Bureau of Land Management (BLM) narrowed the scope from five drilling pads to three, and Willow recently passed another environmental review… “Willow is also a low-carbon project… “Willow is an $8 billion investment that will create 2,500 mostly union construction jobs, and hundreds more long-term positions… “Yet approval remains uncertain, in part because of doubts about anti-fossil-fuel Interior Secretary Deb Haaland… “The Administration may try to split the baby by approving the project but with limits that make it uneconomical. ConocoPhillips has made clear that fewer than three drilling pads won’t be worth the investment. This duck and cover would be the equivalent of killing the project—and would betray the many bureaucratic professionals who approved it. Willow should be easy to approve, especially given the world’s growing energy security. If Mr. Biden kills this project, either outright or on the sly, no one should believe another word he says about energy or oil prices.”
The Nelson Daily: OPINION: Rewarding destroyers, punishing defenders
David Suzuki is a scientist, broadcaster, author and co-founder of the David Suzuki Foundation, 3/1/23
“As of early February, police have “made more than 90 arrests and dozens of detentions” to facilitate construction of the Coastal GasLink pipeline in northern B.C., “running up a taxpayer tab of more than $25 million,” according to the Narwhal,” David Suzuki writes for The Nelson Daily. “François Poirier, President and CEO of TC Energy, which owns the project, was rewarded with “$9.81-million in his first full year as CEO, including a $1.1-million bonus and share and stock option awards valued at $6-million,” the Globe and Mail reported. During the November COP27 climate talks in Egypt, more than 30 climate protesters were jailed in the U.K., adding to more than 2,000 arrests in a campaign that began in April… “Worldwide, climate activists — and journalists and scientists — have been arrested, jailed, silenced and even killed for protesting to keep the planet livable for humans. Meanwhile, “The top executives at seven big energy companies had an average increase in their compensation of more than 21 per cent in 2021, compared with the prior year. In dollar terms, that was an extra $2.3-million for each, bringing the average pay package to $13.4-million,” the Globe and Mail reported. For decades, oil companies covered up their own and other scientific evidence that their products could cause catastrophic climate disruption. Not only have they faced no consequences, they’ve reaped massive benefits… “We need to change our ways of thinking and acting. It’s not too late, but every delay increases the challenges and costs. A better world is possible. We just need to imagine it and make it real.”