EXTRACTED: Daily News Clips 3/3/22
PIPELINE NEWS
Bluefield Daily Telegraph: Manchin moves to help speed up finish of natural gas pipeline
Red Lake Nation News: Standing Rock Hosting Army, Tribes for Discussion About Dakota Access Pipeline Today
KBJR: Environmental activists call on Biden to stop Line 5
Badger Herald: Wisconsin communities to hold eight-week-long demonstrations in call for climate action
Engineering News Record: Enbridge to Issue RFPs for Great Lakes Oil-Gas Tunnel
Tri States Public Radio: Farm bureau: Landowners should band together, seek legal representation for carbon pipeline
Norfolk Daily News: Meetings set to let landowners know rights on carbon pipelines
Prairie Public Broadcasting: Proposed Northern ND natural gas pipeline will help all of North Dakota
U.S. Energy Information Administration: New pipelines carrying natural gas plant liquids increase natural gas processing
WASHINGTON UPDATES
STATE UPDATES
Colorado Newsline: Colorado oil and gas regulators approve ‘strongest in the nation’ financial rules
Daily Breeze: Oil terminal project in Port of LA draws criticism, prompting a public hearing
EXTRACTION
Politico: EXXON EXITS RUSSIA
Forbes: Fracking Billionaire Harold Hamm Plans To Reverse Course And Pump Millions Of Tons Of Carbon Into The Earth
Reuters: Exxon plans hydrogen and carbon-capture/storage plant near Houston
IEEFA: Shute Creek – world’s largest carbon capture facility sells CO2 for oil production, but vents unsold
Bloomberg: Fuel-Starved Europe Offers Push Needed for U.S. Gas Projects
Troy Media: For the first time, oil sands on path to total emissions reduction: report
CLIMATE FINANCE
Stand.earth: Research Shows Over $800 Million in U.S. Pension Funds Invested in Russian War Chest
Bloomberg: Texas Oil Regulator Heads for Apparent Runoff in Republican Primary Vote
OPINION
Superior Telegram: Nelson column: Line 5 needs to go
CNBC: Insana: Energy prices are soaring, but the Keystone Pipeline wouldn’t have helped ease the pressure
Forbes: Addressing Some Keystone XL Claims
Financial Post: Opinion: Canada can help wean Europe off Russian energy. But do we have the will to do it?
The Hill: The cure for our oil addiction
PIPELINE NEWS
Bluefield Daily Telegraph: Manchin moves to help speed up finish of natural gas pipeline
CHARLES BOOTHE, 3/3/22
“With energy independence a goal discussed by every leader in West Virginia now, Sen. Joe Manchin, D-W.Va., is set to meet with FERC (Federal Energy Regulatory Commission) today to find out why guidelines were changed recently that may impede pipeline construction with even stricter regulations,” the Bluefield Daily Telegraph reports. ““FERC reversed decades of precedent,” he told the Telegraph of new guidelines that require stricter considerations in several areas… “Manchin, Gov. Jim Justice and Sen. Shelley Moore Capito, R. W.Va., all want to pursue energy independence in light of the impact from the Russian invasion of Ukraine and use natural gas from West Virginia to help do so, as well as help countries in Europe who need it… “With the changes, gas pipeline reviews will consider a project’s effect on climate change, look at a wider set of impacts on landowners and environmental justice communities, and scrutinize the economic need related to the public need. On Wednesday, Manchin called the changes “sweeping and ill-informed” and he is now seeking answers, and remedies. “We cannot get a pipeline out of the Marcellus Shale (in north central West Virginia),” he told the Telegraph, referring to the shutdown of the Atlantic Coast Pipeline project and the problems with finishing the Mountain Valley Pipeline (MVP)... “Manchin also said the Biden administration is not helping and but can help “clarify” the FERC changes. “We need to ramp up (the supply of natural gas),” he told the Telegraph, and the Marcellus Shale is the “richest formation in the world.”
Red Lake Nation News: Standing Rock Hosting Army, Tribes for Discussion About Dakota Access Pipeline Today
3/3/22
“Following a Supreme Court victory last week in its lawsuit against the Dakota Access pipeline (DAPL), the Standing Rock Sioux Tribe is preparing to host a meeting today among its own tribal officials, U.S. Army officials and other leaders from across the Great Sioux Nation,” Red Lake Nation News reports. “According to Standing Rock Sioux Tribe Chairwoman Janet Alkire, the stakeholders will discuss the embattled pipeline’s future, including its delayed Environmental Impact Statement (EIS)... “Objections to DAPL from the tribe and its allies have routinely fallen on deaf ears at the government level… “Standing Rock officials say they expected the Army Corps of Engineers to release the EIS for public feedback in February. Anticipating that release, Standing Rock, Oglala and Cheyenne River Sioux Tribal leaders — citing concerns about Energy Resources Management, the firm tasked with preparing the EIS — wrote a letter demanding an alternative EIS with oversight from the U.S. Department of the Interior. Then, in January, Standing Rock withdrew as a cooperating agency from the environmental review process entirely. Alkire released press statements expressing concern about a lack of transparency in the process, dangers from low water levels in Lake Oahe — a reservoir adjacent to her reservation, which the pipeline crosses beneath — and DAPL’s potentially inadequate emergency response plan. Pending the opportunity to gather more feedback from tribes today, the Army Corps of Engineers still hasn't released its EIS for public comment. Army officials reached out to Standing Rock and asked for the meeting, which will take place at Prairie Knights Casino on Standing Rock’s North Dakota side from 9 a.m. to 1 p.m. CST… “Representatives are expected to attend from the Oglala, Cheyenne River, Flandreau, Rosebud, Yankton, Lower Brule, Spirit Lake, and Standing Rock Sioux Tribes. All tribes of the Great Plains have been invited, as well as Treaty Council officials.”
KBJR: Environmental activists call on Biden to stop Line 5
Larissa Milles, 3/2/22
“A large group gathered in Superior Wednesday, asking President Biden to focus on environmental initiatives,” KBJR reports. “Protesters stood outside the University of Wisconsin Superior campus holding signs calling for environmental action. They mainly spoke out against Enbridge’s Line 5, a pipeline that starts in Superior and runs through Northwest Wisconsin to Michigan… “Environmental advocates claim the pipeline could harm Indigenous lands and water and that the government should work to protect it. “I hope the president uses the full extent of his power to take action to address the climate crisis and to listen to the Indigenous people of this nation,” Devon Cupery, an environmental advocate, told KBJR… “Several groups hosted the protest including Honor the Earth and the National Wildlife Federation.”
Badger Herald: Wisconsin communities to hold eight-week-long demonstrations in call for climate action
CAT CARROLL, 3/2/22
“Wisconsin-based organizers are calling on leaders and policymakers to focus on defending the planet through prohibiting the expansions of fossil fuel infrastructure, removing Line 5 pipelines in Wisconsin and making investments to transition to clean and renewable energy sources, according to a press release,” the Badger Herald reports. “Beginning March 4, organizers will be staging demonstrations across Wisconsin every Friday to draw attention to their cause… “Twenty-two communities, including Madison, have indicated that they will be participating in the eight weeks of demonstrations. In Madison, demonstrations will be held at 5 p.m. on Fridays at Library Mall. In other communities, some demonstrations may be held at noon on Fridays… “One of the movement’s main objectives is to stand in solidarity with the Indigenous-led movement to stop Line 5, according to the press release. Owned by natural gas distribution company Enbridge, Line 5 is an oil pipeline built in 1953 that transports 540,000 barrels of oil per day Superior, Wisconsin to Sarnia, Ontario, according to the Stop Line 5 website. Grace Quinn, a statewide organizer of the March Forth to Earth Day with Sunrise Fox Valley — a diverse youth group advocating for climate justice as a racial and economic issue — told the Herald the recent proposal to relocate the pipeline fail to adequately address concerns. “The construction and operation of Enbridge’s Line 5 pose a significant threat to Native food systems, as fisheries and wild rice crops are put at risk for irreversible ecological damage,” Quinn said in an email statement to The Badger Herald.
Engineering News Record: Enbridge to Issue RFPs for Great Lakes Oil-Gas Tunnel
Annemarie Mannion, 3/2/22
“Enbridge Energy will issue requests for proposals in the coming weeks for contractors to construct a $500-million Great Lakes tunnel to carry crude oil and natural gas liquids through the Straits of Mackinac between Michigan and Ontario,” Engineering News Record reports. “Ryan Duffy, spokesman for the Calgary, Alberta-based energy company, told ENR the RFP process will take about six months. The announcement comes after the Mackinac Straits Corridor Authority on Feb. 16 concurred with a staff recommendation that Enbridge meets all requirements specified in a 2018 agreement between the firm and the State of Michigan.The agreement between the state and Enbridge calls for the company to start construction within 180 days of receiving a construction permit from the U.S. Army Corps of Engineers, which is still performing an environmental review. Construction of the approximately four-mile tunnel is expected to begin no earlier than the first quarter of 2024, with work expected to take at least four years… “A federal lawsuit filed in 2020 by Michigan Attorney General Dana Nessel seeking to shut down Line 5 still awaits a hearing.”
Tri States Public Radio: Farm bureau: Landowners should band together, seek legal representation for carbon pipeline
Rich Egger, 3/2/22
“Those who own land in the path of a proposed carbon dioxide pipeline are being urged to take steps to protect their property,” Tri States Public Radio reports. “The Illinois Farm Bureau (IFB) used a series of meetings with its members to share advice about dealing with Navigator CO2 Ventures, which plans to build the Heartland Greenway pipeline through five states, including Illinois and Iowa. Bill Bodine, Director of Business and Regulatory Affairs for the IFB, said the most important step landowners can take is to find an experienced attorney to negotiate easements and other agreements… “The farm bureau also suggested land owners band together to hire an attorney. Laura Harmon, Associate Counsel with the IFB, told TSPR, “We’ve seen farmers go together in groups. (There is) strength in numbers and leverage.” The farm bureau said that banding together also helps spread around the cost. Some landowners in western Illinois have already started doing that, and hundreds of farmers in Iowa have jointly hired a law firm to lead their legal effort. Harmon told TSPR those in Illinois who are interested in the case can review it and file comments about it on the Illinois Commerce Commission (ICC) website. She said the ICC will have up to 11 months to review the application and enter a decision once Navigator files for a permit, something it has not yet done. The farm bureau anticipates Navigator will file its application sometime this year. At that point, the company can begin approaching landowners about easements.”
Norfolk Daily News: Meetings set to let landowners know rights on carbon pipelines
By JERRY GUENTHER, 3/2/22
“For landowners and communities affected by proposed carbon pipelines, a series of meetings are planned for later this week,” the Norfolk Daily News reports. “Shelli L. Meyer, who grew up on a farm in Wayne County that is still in the family, told the News she would encourage anyone interested in the topic or whose property would be affected to attend one of the meetings. “I am just protecting my fourth-generation farm and my lifelong neighbors, which include my cousins,” she told the News. Meyer, who now lives in Iowa, told the News she had been doing lots of research but also has contacts at Sierra Club Iowa, BOLD Nebraska and Nebraska Easement Action Team. She also attends the Sierra Club Iowa Zoom meeting every Wednesday night… “Nebraska Easement Action Team (NEAT) had a representative earlier this year handing out flyers during a carbon pipeline open house in Battle Creek sponsored by one of the companies. The flyer describes NEAT as a nonprofit that helped to stop the Keystone XL pipeline from using eminent domain. It states that it is now working with landowners to prevent corporations from using eminent domain for carbon pipelines. Meetings are scheduled for Thursday, March 3, from 1 to 3 p.m. at The Table Coffee House, 203 Main St. in Wayne. Another one is scheduled for Thursday from 4:30 to 5:30 p.m. at CK Grill and Bar, 4018 S. Ninth St. in Columbus. Norfolk will host a meeting on Friday, March 4, from 10 to 11 a.m. It will be at the Divots Conference Center in the Rooftop Terrace room, 4200 W. Norfolk Ave. The final meeting will be in Grand Island, also on Friday. Meyer told the News one of the concerns is that eminent domain could be given to a private company to landowners who don’t want to sell land easements.”
Prairie Public Broadcasting: Proposed Northern ND natural gas pipeline will help all of North Dakota
Dave Thompson, 3/2/22
“The director of economic development and finance for the North Dakota Commerce Department says the proposed pipeline to bring Bakken natural gas to eastern North Dakota is a perfect example of energy and agriculture working together,” Prairie Public Broadcasting reports. “The Legislature approved $150 million in seed money to get that pipeline built. It will run along US 2. Josh Teigen told the Legislature’s interim Energy Development and Transmission Committee there’s a lot of support for the proposed pipeline – especially in the east, from potential value-added ag projects… “Teigen told PPB North Dakota has been losing some projects to other states that have access to Bakken gas, because of interstate pipelines.”
U.S. Energy Information Administration: New pipelines carrying natural gas plant liquids increase natural gas processing
3/2/22
“In 2020 and 2021, more than 2,000 miles of new liquids pipelines were brought into service, according to our Liquids Pipeline Projects database,” the U.S. Energy Information Administration reports. “Several of these recent infrastructure projects were dedicated to transporting a mix of natural gas plant liquids (NGPLs), which are produced at natural gas processing plants from raw natural gas streams. Natural gas plant liquids must be extracted from raw natural gas streams so the processed natural gas can be sold into the natural gas market. After these NGPLs—a mixture of ethane, propane, butanes, and natural gasoline known as the Y-grade mix—are separated from raw natural gas (primarily methane), they are shipped by pipeline for further processing… “Of the 14 Y-grade pipeline projects completed in the past two years, 5 projects, accounting for more than 800,000 barrels per day (b/d) of new capacity, originate in the Permian Basin of West Texas and Southeast New Mexico… “The additional capacity to ship Y-grade from the Permian Basin and the completion of two major dry natural gas pipelines in the region (the Permian Express and Whistler) have facilitated growth in natural gas production in the Permian Basin at a time when crude oil production has remained relatively flat.”
WASHINGTON UPDATES
Politico: ADMIN APPEALS SCC INJUNCTION
Zack Colman, 3/2/22
“The Biden administration on Tuesday asked the New Orleans-based U.S. Court of Appeals for the 5th Circuit to stay a district judge's injunction against the social cost of carbon,” Politico reports. “That nationwide block, the administration has said, is wreaking havoc on executive branch functions. The Justice Department had asked the Louisiana judge to stay his own injunction by Monday — and when no word came, took their request to the higher court. “Not only is the injunction overbroad—going well beyond appropriate [Administrative Procedure Act] relief—but its specific substantive provisions are illogical, unreasonable, and unlawful,” DOJ wrote. The filing asks for a decision by March 15. The 5th Circuit isn’t known to be particularly friendly to Biden’s agenda, but there are a few factors that might benefit the White House here. To start, the social cost of carbon has been used for over a decade, and presidents have issued orders defining how rules are analyzed since Richard Nixon. In addition, legal observers have pointed to some unusual aspects of the Louisiana judge’s order, including a novel use of the “major questions” doctrine and citation of a (non-existent) “separation of powers clause.”
Politico: SPEAKING OF OVERSIMPLIFICATIONS
Zack Colman, 3/2/22
“Republicans on Capitol Hill have blamed Democratic policies that favor clean energy for, essentially, causing the Russia invasion,” Politico reports. “The attacks are a Frankenstein of conservative talking points repackaged for the current crisis, with inflation-baiting for garnish. The claims run the gamut: That Biden and Democrats have shut off U.S. oil and gas, boosting global oil prices to finance Putin's war; that the Keystone XL pipeline would stifle conflict; and that Biden forfeited U.S. energy independence. The problem is those charges are factually untrue. The Biden administration has approved oil and gas permits on federal land at a faster clip than former President Donald Trump's final year, the U.S. still exports more crude oil and petroleum products than it imports and Keystone XL never started while much of the oil it would have transported got to market through rail and other means. Plus, the U.S. has never been closed off from oil imports, even bringing in 7.9 million barrels per day in the first year of the coronavirus pandemic when demand cratered.”
STATE UPDATES
Colorado Newsline: Colorado oil and gas regulators approve ‘strongest in the nation’ financial rules
CHASE WOODRUFF, 3/2/22
“Colorado regulators on Tuesday approved a sweeping set of new financial requirements for oil and gas companies that operate within the state, completing the last major rule change mandated by a landmark drilling reform law passed by Democrats in the General Assembly three years ago,” Colorado Newsline reports. “The five-member Colorado Oil and Gas Conservation Commission voted unanimously to adopt the new rules on financial assurance, also known as bonding. When they take effect in April, the changes will significantly increase the amounts of the bonds that oil and gas producers must provide to the state to cover potential cleanup costs, and new fees will raise millions of dollars to fund the plugging of wells that are abandoned, or “orphaned,” typically as a result of bankruptcy. In a press release, COGCC officials called the new rules “the strongest in the nation.” Commissioner John Messner, a former Gunnison County commissioner, told CN prior to Tuesday’s vote that the rules represent a “paradigm shift.” “I think they fundamentally change how financial assurance for oil and gas activities in the state of Colorado are addressed,” Messner told CN. “They were an outcome of over a year’s worth of collaboration and input from a really diverse group of individuals and stakeholders.” “...Additionally, the new rules establish an annual well registration fee that is projected to raise $10 million annually to fund the cleanup of orphaned wells. That money will be augmented by the $10 million or more annually that the COGCC expects to receive for orphaned-well cleanup from the federal government as a result of last year’s infrastructure law. Environmental groups, who had long criticized the state’s bonding requirements as inadequate, applauded the new rules. Between the higher bonding amounts, incentives for operators to plug existing wells and the expanded orphaned well program, they’re hopeful that up to one-fifth of the state’s 50,000 active wells could be plugged in the coming years.”
Daily Breeze: Oil terminal project in Port of LA draws criticism, prompting a public hearing
By DONNA LITTLEJOHN, 3/1/22
“A proposal that could provide Phillips 66 continued operation of a marine oil terminal in the Port of Los Angeles for up to 40 years — after significant improvements to the wharf –has drawn criticism from community members and environmental groups,” the Daily Breeze reports. “The port released a Negative Declaration — a document explaining why a proposed project will not have a significant effect on the environment and therefore does not require a full Environmental Impact Report — in November and an extended comment period ended earlier this month. But because of the widespread interest and numerous objections, port Executive Director Gene Seroka said, a public hearing will be held before March 31, with the date to be announced at the March 10 harbor commission meeting… “Three neighborhood councils were among the parties that submitted letters raising concerns and asking for a full environmental study to be done. Others expressed many of the same concerns, including about the lack of a full environmental report for the project, the potential for oil leaks and other accidents, vessel cal possibly increasing, and the prospect of investing port property in what many hope will be a dying industry as more sustainable fuel sources are developed. The California Coastal Commission and a group of environmental interests, including the Natural Resources Defense Council, were among the entities that sent letters asking for more study.”
EXTRACTION
Politico: EXXON EXITS RUSSIA
Zack Colman, 3/2/22
“Exxon Mobil, one of the largest foreign investors in Russia, is winding down operations at a large liquefied natural gas facility in eastern Russia and will cease new investments in the country as a result of Putin's war,” Politico reports. “Exxon will start a "carefully managed" exit from the the Sakhalin-1 LNG project that also includes Russian oil company Rosneft as a major stakeholder, the company said in a press release. Sakhalin-1 has an export capacity of 6.2 million tons a year, and was one of the largest foreign direct investments in the country.”
Forbes: Fracking Billionaire Harold Hamm Plans To Reverse Course And Pump Millions Of Tons Of Carbon Into The Earth
Christopher Helman, 3/2/22
“Today in Fargo, North Dakota, at the Tharaldson Co. ethanol plant, billionaire Harold Hamm will make one of the most unusual announcements in the 50-year history of his oil company, Continental Resources,” Forbes reports. “...But now, at age 76, Hamm is making a big bet on a course reversal—instead of pulling fossil fuels out of the earth, he finds himself working on ways to put the carbon in. Publicly traded Continental (80% owned by Hamm and his children), will invest $250 million toward a $4.5 billion project to capture 8 million tons per year of carbon dioxide (the most copious fossil fuel by-product), move it across five states via a 2,000-mile pipeline and inject it into a highly porous and permeable rock formation more than a mile beneath North Dakota farmland. “No one knows the geology better than we do,” Hamm, who has been drilling in North Dakota for decades, for oil, told Forbes. “...Continental’s partner in the project is Summit Agricultural Group. Its CEO, Bruce Rastetter, has been working for years to convince the owners of 31 corn ethanol plants across five states to capture and contribute 8 million tons per year of carbon dioxide… “Perhaps most excited about the project is North Dakota Gov. Doug Burgum, who says deep geologic sequestration of carbon dioxide is a cornerstone of his ambition to make North Dakota “carbon-neutral” by 2030… “Burgum is convinced by Hamm’s assertion that once the gas is injected, it won’t be escaping: “Not only will it be confined to this reservoir, any migration would be awful slow.” “...Continental investors will question whether $250 million might be better invested in drilling and fracking new wells that will be very profitable with oil at $90 a barrel, or more. “Sure we could drill 30 wells,” Hamm told Forbes. “But we expect a big return here as well.” In time. Meanwhile, Rastetter told Forbes, they could use a helping hand from Congress. The tax code already has a provision called the 45q tax credit, which pays up to $50 per ton of carbon dioxide sequestered. Summit would like to see 45q expanded and extended; language to do so was in the Build Back Better package. He hopes backers of the idea find another congressional path. “If we have to do this, then we have to do it at scale. Which won’t happen unless the government puts a price on carbon,” Rastetter told Forbes. A cynic might call it greenwashing—ransom paid by an oil company to obtain a social license to operate. Hamm vehemently dismisses the notion, insisting that the efficient capture of carbon will become vital. “I never give a rat’s ass what most people thought about,” Hamm told Forbes. Cynicism “won’t ever keep me from doing the right thing.” “...They expect to raise more than $1 billion in equity, including $250 million from Continental. Morgan Stanley and CohnReznick are advising.”
Reuters: Exxon plans hydrogen and carbon-capture/storage plant near Houston
By Sabrina Valle, 3/1/22
“Exxon Mobil Corp. (XOM.N) on Tuesday said it plans a hydrogen production plant and a carbon capture and storage (CCS) project at its Baytown refinery near Houston, Texas, an effort to reduce its carbon footprint while earning a profit,” Reuters reports. “The complex would be Exxon's first contribution to a cross-industry effort to create a $100 billion carbon capture and storage zone along the Houston Ship Channel, the so-called Houston Hub. A final investment decision is expected in two to three years and is pending regulatory permits and engineering studies, Ed Graham, vice president of Exxon's Low Carbon Solutions venture, told Reuters. The largest U.S. producer has allocated $15 billion in initiatives to lower carbon emissions over a six-year period. "This is a significant step for efforts to decarbonize the existing industry," Graham told Reuters. "This is both in the petrochemical and ultimately into cement and steel, which are hard to abate". The project will help Exxon to meet its target to achieve net zero carbon emissions for its global operations while making money to shareholders at the same time, Graham told Reuters. The profitability of the project will be considered for a final investment decision, he told Reuters, declining to comment on numbers… “The company is considering onshore and offshore locations along the Gulf of Mexico to store the carbon, Graham told Reuters.”
IEEFA: Shute Creek – world’s largest carbon capture facility sells CO2 for oil production, but vents unsold
3/1/22
“ExxonMobil has consistently failed to reach carbon dioxide (CO2) capture capacity in its long-running Shute Creek carbon capture utilization & storage (CCUS) project and has vented captured CO2 back into the atmosphere when it couldn’t be sold to companies extracting more oil from depleted reservoirs, finds a new report by the Institute for Energy Economics and Financial Analysis (IEEFA). ExxonMobil’s Shute Creek, the biggest Carbon Capture Utilization and Storage (CCUS) project in the world and one of the longest running, has failed to reach its CO2 nominal capture capacity during its 35-year lifetime… “Around 73% of all captured CO2 from carbon capture projects globally is used in EOR. Producing more oil is not “climate friendly.” Shute Creek gas is very high in CO2. To produce ‘natural’ gas, CO2 must be removed. The CO2 was sold to oilfield developers for EOR, improving the economics of the project. Based on ExxonMobil’s disclosures, IEEFA estimates that the Shute Creek CCUS plant has produced gas with around half of the CO2 vented and only around half captured over its lifetime… “Over its 35-year history, Shute Creek has captured around 40% of all anthropogenic (human-induced) CO2 captured in history – approximately 120 million tonnes – which is around 34% less than its specified capture capacity… “Report author gas/LNG analyst Bruce Robertson says with projects designed to capture CO2 generally attracting a significant amount of government subsidies and tax credit incentives, the business model of fossil fuel projects with CCS needs closer examination. “Oil and gas companies with carbon capture facilities are selling captured CO2 for EOR and what can’t be sold is more often vented,” says Robertson. “CCS/CCUS effectively extends the life of fossil fuel companies, giving them a licence to ramp up production…CCUS projects could prove to be unsustainable both economically and environmentally. Each project’s emission reduction projections and performance must be questioned. This is a point that IEEFA has made repeatedly.”
Bloomberg: Fuel-Starved Europe Offers Push Needed for U.S. Gas Projects
Sergio Chapa, 3/2/22
“The threat of supply disruptions in Europe, along with Germany’s pledge to build two new fuel-import terminals, could be the push U.S. developers need to move forward with the nearly dozen proposed liquefied natural gas projects,” Bloomberg reports. “...The jump in gas prices comes even with LNG producers in the U.S., the world’s biggest exporter, running flat out and sending flotillas of cargoes to Europe through this winter. The crisis, along with German Chancellor Olaf Scholz’s comments that Germany would move quickly to build two LNG terminals to cut dependence on Russian gas, could help spur financing and approval decisions for U.S. LNG developers. Germany’s decision “is a complete game changer,” Fred Hutchison, chief executive officer of the Washington-based trade association LNG Allies, told Bloomberg… “There are almost a dozen U.S. LNG export projects that hold federal permits but lack enough contracts to finance the billions of dollars of construction. Citigroup Inc analysts listed expansions at Corpus Christi LNG, Freeport LNG and Cameron LNG as the most likely to succeed, along with new construction such as Plaquemines LNG, Driftwood LNG and Rio Grande LNG. Their combined capacity of 66 million tons is more than 15% of the current global LNG market, and would be enough to displace 40% of the amount of natural gas Russia sold to Europe in 2019. Corpus Christi Stage III is expected to reach a final investment decision this summer. Cameron Train 4 is projected to be complete third quarter 2027 and still needs a regulatory permit, contracts and a final investment decision. Freeport LNG Train 4 has a FERC permit but needs offtake agreements and a final investment decision.”
Troy Media: For the first time, oil sands on path to total emissions reduction: report
By Deborah Jaremko, 3/2/22
“Canada’s oil sands sector is poised for a major environmental improvement within the next five years. According to analysis by consultancy IHS Markit, total oil sands greenhouse gas emissions are on track to start going down,” Troy Media reports. “This follows more than a decade of producers consistently decreasing emissions per barrel, otherwise known as emissions intensity. “If the industry keeps doing what it’s been doing pretty much consecutively for the last 11 years, then it is destined to overtake a slowing pace of production growth, which has frankly outpaced improvements over the past decade,” Kevin Birn, IHS Markit’s head of greenhouse gas emissions estimation, told Troy Media. Oil sands production is expected to continue increasing, albeit at a slower pace. IHS Markit’s most recent forecast sees oil sands production rising to 3.6 million barrels per day in 2030, nearly 650,000 barrels per day more than in 2021. IHS Markit said this week that average oil sands emissions intensity has declined by 20 per cent since 2009, or a drop of about 17 kg of CO2 equivalent per barrel.”
CLIMATE FINANCE
Stand.earth: Research Shows Over $800 Million in U.S. Pension Funds Invested in Russian War Chest
Travis Nichols, 3/2/2
“Today, Stand.earth revealed new research showing how over $800 million USD of U.S public pension funds are still invested in the top five Russian oil and gas companies, despite the international outcry against Vladimir Putin’s invasion of Ukraine. The pensions include the retirement plans for California and New York teachers, state investments from Washington, Alaska, and New Jersey, as well as public employee retirement plans for Colorado and Massachusetts, among others. Since Putin began his illegal invasion last week, many government and corporate actors have begun to sever relationships with Russian oil and gas majors — including Norway, BP, Shell, and Exxon – but billions of dollars remain invested in Russia’s oil and gas majors. “We know banks, insurance companies, and institutional investors like pension funds are the great enablers of climate chaos, but the war in the Ukraine makes it tragically clear that they're the enablers of military chaos as well,” Stand.earth Executive Director Todd Paglia said. “By financing and subsidizing fossil fuel companies like Rosneft and Gazprom, these financial institutions are complicit in climate-fueled global conflict, vulnerability, and instability. Public pension funds are meant to be the longest-term investors, and these institutions have an obligation to use their power to pressure Russia to end this conflict. They can make a real difference by divesting from Rosneft, Lukoil, Gazprom, and the other Russian carbon majors that fuel Putin’s war chest.” On Monday, Stand.earth released data showing how top Canadian financial institutions remain invested in Russian oil and gas, and on Tuesday the environmental organization did the same for U.S. financial institutions. None of these institutions have yet signaled an end to their investments, despite global pressure to do so.”
Bloomberg: Texas Oil Regulator Heads for Apparent Runoff in Republican Primary Vote
Joe Carroll, 3/2/22
“A Texas oil regulator critical of renewable fuel and “woke” ESG investing appeared headed for a runoff vote after failing to win a clear majority in the Republican primary for a seat on the powerful panel that oversees oil production in the nation’s largest source of crude,” Bloomberg reports. “Texas Railroad Commission Chairman Wayne Christian held a 47.1% lead in the GOP election with 88% of the votes counted, according to the Associated Press. That was short of the simple majority required to avoid a May run-off with one of the two top challengers: oil and natural gas lawyer Sarah Stogner and consultant Tom Slocum, who were neck and neck as of early Wednesday. The winner of the runoff contest will take on Democrat Luke Warford as well as Green and Libertarian candidates in the November general election. In the GOP race, a candidate who died in a February car accident — Marvin “Sarge” Summers — was running in fourth place with almost 12% of the votes, the AP figures showed. The commission has regulated oil and gas exploration and production in the second-largest U.S. state for more than a century, at times wielding considerable power over global energy markets through its ability to limit the flow of crude in response to price swings or geopolitical disruptions… “The agency was the template used by OPEC’s founding nations upon the group’s creation in 1960.”
OPINION
Superior Telegram: Nelson column: Line 5 needs to go
Tom Nelson is the Outagamie County Executive and a Democratic candidate for U.S. Senate, 3/2/22
“President Biden’s trip to Superior this week after the State of the Union had much to like,” Tom Nelson writes for the Superior Telegram. “...The trip would have been even better, however, had the president announced that he was removing the presidential permit for Enbridge's controversial Line 5, which threatens the air and water quality of our beloved Northwoods. Now is the time, with opposition to Line 5 peaking and catastrophic climate change upon us. Leaders like Michigan Gov. Gretchen Whitmer , the heads of all 12 federally recognized tribes in Michigan and the Bad River Band of Lake Superior have urged Biden to stop this ecological disaster, along with so many of the concerned citizens of the Northwoods. On Feb. 2, I was proud to be among the many ordinary citizens and the only Senate candidate who testified at the Wisconsin DNR hearing on Line 5 . It lasted until 2 a.m., and the opposition was overwhelming, with good reason… “Instead of Line 5, let’s invest in a Blue-Green New Deal that builds sustainable infrastructure, lowers our energy costs, protects our environment and grows good-paying union jobs. We need public servants who are not afraid to stand up to deep-pocketed corporations. I’m always humbled to know this seat was held by Gaylord Nelson and proud to not only share a last name, but also his commitment to championing an environmental vision that does right by our beloved lakes, rivers and wetlands. I am hopeful President Biden shares our values and vision as well and will commit to stopping Line 5.”
CNBC: Insana: Energy prices are soaring, but the Keystone Pipeline wouldn’t have helped ease the pressure
Ron Insana, 3/2/22
“South Dakota governor, Kristi Noem, has been tweeting that we need to make America energy independent again. She’s criticizing President Joe Biden for halting the completion of the Keystone XL pipeline, claiming that the loss of that pipeline is keeping America from being energy independent,” Ron Insana writes for CNBC. “...If only the halt of that project was the sole source of surging energy costs at home and abroad. It’s highly likely that energy prices will remain elevated for some time to come… “If one wants to be true to the facts and to history, blame the Saudis and the Russians for the decline in U.S. output, not the cancellation of a single project that, in the overall scheme of energy production, is a rounding error. There is no doubt that current events, as they have since the 1970s, require a coherent national energy policy that strips the power away from America’s enemies and puts our nation entirely in control of its energy future. But let’s place the blame where it belongs: with our enemies, not our leadership.”
Forbes: Addressing Some Keystone XL Claims
Robert Rapier, 3/2/22
“Two of my recent articles — namely here and here — seem to have spawned or at least contributed to a firefight between critics of the Biden Administration and its defenders,” Robert Rapier writes for Forbes. “... In response to some of the claims — in fact they included Representative Crenshaw’s tweet — The Washington Post wrote a rebuttal: “The clumsy effort to criticize Biden on Ukraine using Keystone.” “...There are some specific things the article gets wrong (more on that below), but it concludes with “...the point of the Keystone XL comparison isn’t to hurt Russia in the first place. The point is to hurt Biden.” Let me assure you that my intention isn’t to hurt President Biden… “In the follow-up article I will spell out in simple terms why I so strongly believe cancelling the Keystone XL pipeline was a bad decision… “Let me state the obvious first. If President Biden had allowed Keystone XL to be completed, it would have made no difference regarding the current situation. It wouldn’t be helping to keep oil prices in check, because it wouldn’t have been completed yet (although it could have been if not for years of delays)... “I always thought the win-win scenario was to build the pipeline, and then work hard to ensure that it is never needed. But if it is needed, it’s there.”
Los Angeles Times: Editorial: End drilling in California waters to protect the coast and climate
BY THE TIMES EDITORIAL BOARD, 3/2/22
“When an undersea pipeline off the Orange County coast spilled thousands of gallons of crude oil last fall and fouled beaches and wetlands, it was only the latest illustration of the serious and ongoing danger of aging oil infrastructure along California’s shoreline,” the Los Angeles Times reports. “State lawmakers should begin reducing the risks to the coastal environment and the climate by ending drilling in California waters. They have the opportunity to do so by supporting legislation by state Sen. Dave Min (D-Irvine), drafted in response to the October oil spill off Huntington Beach. The bill would end oil production in state-controlled waters by requiring the State Lands Commission to terminate its coastal oil and gas leases by the end of next year. The legislation would affect 11 leases actively producing oil and gas in state waters and only three platforms operating off the coast of Huntington Beach and Seal Beach, operated by two leaseholders, California Resources Corporation and DCOR. This bill’s limited scope will by no means eliminate the risk of another spill… “But it would be a meaningful step toward reducing risks from decades-old oil platforms and pipelines off the coast and moving beyond dirty and dangerous fossil fuels… “Offshore drilling cannot be allowed to drag on with no end date as the climate crisis worsens. Ending these leases is a focused and reasonable approach and a logical and necessary step in California’s efforts to fight climate change and protect its treasured coastline. It also aligns with Gov. Gavin Newsom’s goal of phasing out all oil production in the state by 2045. With so much offshore drilling in federal waters and beyond state control, California leaders must act where they can and do more to quickly end production of risky, polluting and planet-warming fossil fuels. Putting a stop to drilling along our coast isn’t enough to safeguard our collective future, but it’s a healthy step in the right direction.”
Financial Post: Opinion: Canada can help wean Europe off Russian energy. But do we have the will to do it?
Yrjo Koskinen is the Associate Dean of Research and Business Impact and the BMO Professor of Sustainable and Transition Finance at the Haskayne School of Business at the University of Calgary, 3/2/22
“I was born in Finland 18 years after the end of the Second World War,” Yrjo Koskinen writes for the Financial Post. “...Today, I study the economics of the transition to net zero and, more than ever, I see the connection between national security in Europe and the transition to low-emission energy. Both are connected and Canadians should take note of the leadership role we can take… “If Europe is to wean itself off Russian oil and gas, who better than a stable democracy with reliable supply? But Canadian energy companies face two significant hurdles to replace Russia’s market share. First, Canada needs LNG export terminals on the east coast. Attempts to convert the LNG import terminal in Saint John, N.B., fell apart in 2016 with no outside investors. But it appears that the war in Ukraine is helping to renew interest in the idea, with at least two companies reportedly pursuing projects. Being able to export gas from the East Coast would put Canadian gas geographically closer to the European market than the U.S., which ships from the Gulf, or from the Middle East. An east coast hub with two terminals — the other in Nova Scotia — could replace a sizeable portion of Russia’s supply. Canada’s second challenge is the reputation of our energy industry in Europe where it’s commonly dismissed as “tar sands” and where divestment from Canadian oil and gas companies is almost a done deal. Canada has work to do here too.”
The Hill: The cure for our oil addiction
William S. Becker is a former U.S. Department of Energy central regional director who administered energy efficiency and renewable energy technologies programs, and he also served as special assistant to the department’s assistant secretary of energy efficiency and renewable energy, 3/1/22
“An important but easily missed subplot is wrapped up in the Ukraine tragedy. It has to do with America's dangerous addiction to oil,” William S. Becker writes for The Hill. “I use the word "addiction" advisedly because it is an apt metaphor and President George W. Bush, a former Texas oilman, used it first. He surprised many in 2006 when he acknowledged during his State of the Union address that "America is addicted to oil." His statement begged questions that persist today: Since oil is an addiction, why does the government keep subsidizing the drug? And when will we finally commit to a cure? We have a long history of oil dependence. Congress has given fossil fuels tax breaks for more than a century. Tax subsidies rose 28 percent between 2017 and 2019, and now amount to more than $20 billion annually. Oil and gas production receive 80 percent. However, the actual cost is much higher. The International Monetary Fund (IMF) calculates that America subsidies fossil fuels with $660 billion yearly when we count adverse social and environmental impacts ranging from extortion by unfriendly oil-producing countries to lung diseases and climate change… “However, our answer was not to kick the habit but to produce more of the drug ourselves. In 2018, the United States became the world's largest producer of crude oil, leading then-President Donald Trump to declare America had finally achieved energy independence under his watch. "We are ending decades of foreign energy reliance to unleash the blessings of American energy independence," he boasted. He was wrong. We still import oil, about 8 percent of it from Russia. More to the point, a drug is a drug no matter where it's made. We don't control its price — market forces do… “And oil use worldwide causes about one-third of the carbon emissions that have us barreling toward catastrophic and irreversible climate change. The only way to cure oil addiction is to stop making and using the drug. The only way to end our economic vulnerability is to cure the addiction worldwide. “The cure is energy resources that are inexhaustible, clean, indigenous, ubiquitous, easily accessible and free. How do we withdraw? The Brookings Institution offers one formula. We make subsidies transparent in government budgets and accounts, eliminate them in a sequence of gradual steps, incorporate those steps in regulations and laws to prevent backsliding, as well as replace tax subsidies with direct cash transfers to the income groups that would be hurt by higher energy prices. I would add greater transparency for the adverse effects of fossil fuels on society, the economy and the environment.”