EXTRACTED: Daily News Clips 4/28/22
PIPELINE NEWS
Press release: Indigenous Women Leaders & over 200 Groups Urge the Army Corps to Stop the Line 5 Pipeline Expansion
Common Dreams: 'We Don't Trust Enbridge': Indigenous Women Push Biden to Block Line 5 Expansion
JD Supra: Nationwide Permit 12/Oil or Natural Gas Pipeline Activities: Republican Senators Announce Opposition to U.S. Corps of Engineers Formal Review
WDRB: Feds suspend permit for LG&E’s proposed Bullitt County pipeline
The Intercept: THE $287 MILLION PIPELINE NO ONE NEEDED? HOW SPIRE’S AMBITIONS ALMOST LEFT ST. LOUIS WITHOUT HEAT
NWIowa.com: CO2 pipeline a ‘false’ solution, report says
Daily Iowan: Johnson County Supervisors oppose use of eminent domain for CO2 pipelines
Norfolk Daily News: County board updated on proposed Summit carbon pipeline
Engineering News Record: First Interstate Carbon Capture Pipeline Is Proposed in US
Bucks County Herald: Upper Makefield Township considers pipeline replacement project
The Chetek Alert: Earth Day event warns of future oil spills
Reuters: Activists turn off German oil pipelines in North Sea drilling protest
WASHINGTON UPDATES
Press release: 500 Global Groups Urge Biden to End Fossil Fuel Era in Response to Russia-Ukraine War
FOX Business: American oil refineries shutter amid Biden's hostile fossil fuel policies, adding to pain at the pump: expert
E&E News: LNG terminal developers defend federal water permit in court
E&E News: House Democrats probe Alaska natural gas leak
STATE UPDATES
Politico: Will California ban offshore oil drilling?
Texas Monthly: A New Texas Oil Boom Is Coming, Finally
EXTRACTION
Press release: OVER 500 GLOBAL GROUPS CALL ON WORLD LEADERS TO HELP END THE RUSSIAN WAR IN UKRAINE AND TO END THE RELIANCE ON FOSSIL FUELS
Guardian: Just Stop Oil protesters sabotage petrol pumps on M25 motorway
Canadian Press: Federal tax credit not enough to get carbon capture projects built, Cenovus CEO says
Bloomberg: Cenovus Holds Line on Production Growth Even With Oil Above $100
Reuters: Canada overestimating hydrogen's potential cut carbon emissions, report says
CLIMATE FINANCE
Bloomberg: U.S. Lawmakers Push Insurers to Stop Underwriting Fossil Fuels
OPINION
Inforum: Port: Fractures in the North Dakota Republican Party loom over proposed carbon pipeline
Calgary Herald: Varcoe: As profits surge and dividend triples, Cenovus looks for extra government help for CCUS
The Hill: Cut the root of Russia’s power by making a clean energy transition
PIPELINE NEWS
Press release: Indigenous Women Leaders & over 200 Groups Urge the Army Corps to Stop the Line 5 Pipeline Expansion
4/27/22
“Today, Indigenous women leaders, joined by over 200 organizations, representing millions nationwide, submitted a letter to the Army Corps of Engineers urging the department to deny necessary permits for the expansion of Enbridge’s Line 5 pipeline, and to conduct a federal Environmental Impact Statement (EIS) for the entire pipeline within the Army Corps of Engineers’ jurisdiction… “The letter sent today delivers key information detailing the impacts the Line 5 tar sands pipeline expansion project would have in the region, and clarifies how it directly undermines Indigenous rights and perpetuates the climate crisis…”The letter comes from Indigenous women who are advocating to stop Line 5, and is endorsed by local and national groups representing Indigenous groups, environmental organizations, health professionals, faith groups, and more. “There needs to be a shift, to ensure that Tribes and Indigenous communities are part of the process not after the fact but from the very beginning. That’s consultation. Our very lifeways and cultures hang in the balance as pipelines like Line 5 get rammed through our territories and water. These are our lifeways– when that water is healthy enough that rice is growing– that not only benefits our communities, but that benefits everybody up and down stream. The Army Corps and Biden Administration must put people over profits. Allowing Line 5 to proceed is cultural genocide,” said Jannan J. Cornstalk, Citizen of Little Traverse Bay Bands of Odawa Indians, and Director of the Water is Life Festival.
Common Dreams: 'We Don't Trust Enbridge': Indigenous Women Push Biden to Block Line 5 Expansion
JAKE JOHNSON, 4/28/22
“Indigenous women leaders and more than 200 advocacy organizations sent a letter Wednesday demanding that the U.S. Army Corps of Engineers block federal permits for an expansion of Enbridge's Line 5, a 645-mile-long pipeline that currently transports millions of gallons of crude oil and natural gas liquids per day from Wisconsin to Ontario, Canada,” Common Dreams reports. “The proposed expansion, Indigenous leaders and environmentalists warn, would route the pipeline through hundreds of waterways and further threaten tribal lands in Wisconsin and Michigan. Over the past 50 years, Line 5 has spilled at least 1.1 million gallons of oil in 29 separate incidents. "Both the current Line 5 and the proposed Line 5 expansion threaten to irreversibly damage our drinking water, our ecosystems, and manoomin," the new letter reads. "Both the existing and proposed pipelines violate our tribal usufructuary rights. They endanger the Great Lakes' waters and fisheries important to many people. They exacerbate the climate crisis that affects the whole planet." “...In their letter on Wednesday, the Indigenous leaders and advocacy organizations implored the Biden administration to step in and "reject permits for the expansion of Line 5 in northern Wisconsin": This plan places massive risk squarely upon the Bad River Tribe and the Red Cliff Tribe against their will. Furthermore, we consider the pipeline construction an act of cultural genocide. Damage to the land and water destroys food and cultural lifeways that are core to our identity and survival. The pipeline would cut through more than 900 waterways upstream of the Bad River Reservation. The U.S. EPA determined that the plan "may result in substantial and unacceptable adverse impacts" to the Kakagon and Bad River slough complex. This is unacceptable.”
JD Supra: Nationwide Permit 12/Oil or Natural Gas Pipeline Activities: Republican Senators Announce Opposition to U.S. Corps of Engineers Formal Review
Mitchell, Williams, Selig, Gates & Woodyard, P.L.L.C., 4/28/22
“Ranking Environment and Public Works Committee Member United States Senator Shelley Moore Capito and other Republican Senators sent an April 20th letter to the Assistant Secretary for the Army for Civil Works of the United States Corps of Engineers (“Corps”) expressing opposition to its recent decision to review Nationwide Permit (“NWP”) 12 for oil or natural gas pipeline activities,” according to JD Supra. “...NWP 12 was originally authorized in 1977 for “utility lines.” In January 2021 NWP 12 was modified and reissued expressly for “oil or natural gas pipeline activities.” Its application is limited to oil or natural gas pipelines rather than all utility lines, unlike previous versions of NWP 12… “The Senators view the decision to formally review NWP 12 as an unnecessary obstacle and generator of uncertainty for the development of energy projects. They also cite a court filing by the Biden Administration in the United States District Court for the District of Montana in NWP 12 litigation as contradictory to a concern the United States previously expressed: Vacatur [of NWP 12] would thus operate to require a cumbersome individualized Corps permitting process for thousands of projects across the country, contravening the statutory design Congress created in Section 404(e). That would be the case even for activities that required only a few square feet of fill at a single location. The resulting programmatic impacts on the Corps would be large, and lead to delays in permitting.”
WDRB: Feds suspend permit for LG&E’s proposed Bullitt County pipeline
Marcus Green, 4/27/22
“The U.S. Army Corps of Engineers has suspended a permit for a proposed natural gas pipeline in Bullitt County while federal officials conduct a new evaluation of possible impacts to endangered species,” WDRB reports. “The review under the Endangered Species Act comes at the request of the U.S. Fish and Wildlife Service’s Kentucky ecological services field office, which was prompted by two conservation groups that threatened a lawsuit earlier this year. Those groups — the Kentucky Resources Council and the Center for Biological Diversity — claim the federal agencies failed to protect three bat species whose underground habitat is imperiled by the pipeline route… “The permit, known as Nationwide Permit 12, governs the construction of oil and gas pipelines near waterways such as lakes, rivers and streams… “In notifying the two agencies of its plan to sue, the conservation groups argued that the Fish and Wildlife Service erred in concluding that there is no suitable cave habitat for the Indiana bat, northern long-eared bat and gray bat along the proposed 12-mile pipeline route… “The project has faced opposition from landowners who object to a high-pressure line crossing their property. Some refused to sell easements for the project; some lawsuits LG&E began filing under Kentucky eminent domain law in 2019 still haven’t been resolved… “John Cox, an attorney who represents landowners in the condemnation suits, told WDRB the Corps of Engineers’ decision to rescind its permit for the pipeline could affect those cases. “If they can't get a permit, for the project, they certainly — you wouldn't think — would have a right to condemn property for it.”.
The Intercept: THE $287 MILLION PIPELINE NO ONE NEEDED? HOW SPIRE’S AMBITIONS ALMOST LEFT ST. LOUIS WITHOUT HEAT
Mario ArizaMario Ariza, 4/27/22
“DEEP INTO MISSOURI’S feverish summer, a St. Louis hardware store owner found his customers clamoring for something surprising: electric space heaters,” The Intercept reports. “...The reason? The local gas utility company was warning people that come winter, they might not have heat. Spire Inc., an investor-owned gas conglomerate, issued the warnings last year after a court ordered it to shut down its new 65-mile STL pipeline. The court ruled that the company hadn’t proved to federal regulators that the customer-funded $287 million project was even needed. Spire’s only buyer for the gas from the pipeline was the utility it owns, Spire Missouri Inc. Critics said Spire was self-dealing at the expense of captive gas customers. The court decision left Spire — and St. Louis — with a problem. The company had spent years and hundreds of millions of dollars disconnecting its customers from the region’s existing pipelines and routing them to its own. Without the new pipeline, Spire warned that a winter storm could leave up to 400,000 customers without heat in the depths of winter. The energy company quickly undertook a bare-knuckle marketing campaign to warn the public of the threat — and try to convince them of the need for the pipeline… “The panic after Spire’s announcements served a purpose: to make sure the company got a temporary operating permit from the Federal Energy Regulatory Commission, even though a court had said that it wasn’t clear if the pipeline was necessary.”
NWIowa.com: CO2 pipeline a ‘false’ solution, report says
Elijah Helton, 4/28/22
“Carbon capture is a dubious solution to climate change, policy researchers say, calling into question the necessity for carbon dioxide pipelines planned to dig through Iowa farmland,” NWIowa.com reports. “The Oakland Institute released a report earlier this month outlining the science behind the pipelines and their purported benefits. The California think tank focuses on environmental issues and it adds to the growing national attention on the pipeline issue. “If built, residents across the Midwest will be taking the risks associated with pipelines — including potential leaks, decreased property and crop values, and the likely allocation of public funds towards the project — while Summit Carbon Solutions and Bruce Rastetter will reap the profits,” the report concludes. In short, it says the science doesn’t back it up… “It’s going to be a boost for the ethanol industry and make it so these facilities are running at 100 percent. And when that happens, that’s more corn demand and better prices. This pipeline is definitely going to be beneficial to rural America and American farmers,” Siouxland Energy Cooperative board member Kelly Nieuwenhuis told NWIowa.com… “The way I look at it is every other row of corn in the state of Iowa goes to ethanol. We want to make sure that demand, that market continues for years and decades to come,” he said. The Oakland Institute called into question the long-term benefits of CCS. “Advocates for the Midwest Carbon Express fail to reckon with the growing body of evidence exposing CCS as a false climate solution. Despite the growing momentum behind CCS, these projects have systematically overpromised and underdelivered,” the report said. Those who are against the pipeline have argued the big bucks would be better spent on renewable energy which could power electric vehicles and reduce the need for biofuels. For them, it’s too large an investment for a small polluter like ethanol plants. Chris Jones is a research engineer at the University of Iowa in Iowa City. He called the whole thing a “scheme” for Big Ag.
Daily Iowan: Johnson County Supervisors oppose use of eminent domain for CO2 pipelines
Cooper Worth, 4/27/22
“The Johnson County Board of Supervisors has agreed to sign a letter to oppose the use of eminent domain for two proposed carbon sequestration pipelines that would run through 36 Iowa counties, not including Johnson County,” the Daily Iowan reports. “The letter is addressed to the Iowa Utilities Board, which is the authority over the proposed pipelines. Johnson County and its elected officials do not have any authority or capacity to overturn the utilities board’s decision. The supervisors are joining the neighboring Linn County Board of Supervisors in public opposition of the two pipelines that are projected to span around 3,300 miles underground in the state. The proposed pipelines do not enter Johnson County, but they go through Linn, Iowa, and Cedar Counties, which all border Johnson County… “Supervisor Lisa Green-Douglas said the supervisors need to follow suit with the Linn County Supervisors and address the environmental impact of the pipelines, as well as the potential misuse of eminent domain. “Eminent domain is for the greater good, not for private enterprise and private profit, which this would be,” Green-Douglas said… “Supervisor Rod Sullivan said he thought the proposed pipelines were “egregious” in terms of eminent domain usage and there may be significant risks associated with the pipelines. “Private property rights are just so fundamental to everything our government is based on,” Sullivan said. “The second thing is the whole environmental greenwashing approach that they’re taking to this. It’s not real, and we should call that out as well.”
Norfolk Daily News: County board updated on proposed Summit carbon pipeline
JERRY GUENTHER, 4/27/22
“A company that is partnering with 32 ethanol plants across five states to capture carbon dioxide and transport it by pipeline to North Dakota is continuing to work with ethanol plants and landowners to secure easements for the pipeline,” the Norfolk Daily News reports. “...Grant Terry, one of the senior project managers for Summit Carbon Solutions, said the company is working with ethanol plants to reduce their carbon intensity scores… “Terry said lowering the carbon intensity scores enables the ethanol plants to stay competitive for up to the next 15 years as many states work to reduce carbon emissions. Seth Harder, CEO of the Husker Ag ethanol plant near Plainview, said the pipeline represents a rare opportunity. There are 276 million gas-burning vehicles on the road today and, every hour, 2,000 more vehicles are sold. Only 4% are electrical, Harder said. “We have a low-carbon solution right now and with this project, we can be a zero-carbon solution,” Harder said… “The county commissioners did not take any action Tuesday on the presentation or anything related to the carbon pipeline.”
Engineering News Record: First Interstate Carbon Capture Pipeline Is Proposed in US
Mary B. Powers, 4/28/22
“Three Iowa companies want to spend billions to collect carbon dioxide from bio-refineries in the upper Midwest and build a pipeline network to ship it to sites for sequestering in underground caverns—the first such interstate system for CO2 recovery and storage in the U.S.,” Engineering News Record reports. “But an unlikely coalition of environmentalists, local governments and Republican Midwest farmers are uniting to oppose them… “Supporters of the Midwest Carbon Express worry that without reducing CO2, they would lose substantial revenue if ethanol fails to remain viable and cannot compete in low carbon fuel markets. More than half of the corn grown in Iowa us used to make ethanol… “Opponents say the projects are not public utilities and should not receive eminent domain status to cross private property. The Sioux County, Iowa, Board of Supervisors said that “CO2 pipelines serve no public purpose or utility." Franklin County, Iowa “strongly” urged state regulators to “cautiously and carefully” consider the benefits. “There is no direct benefit to the people,” it said, noting that the financial gains are only to the private businesses involved. Farmers are worried how it will affect property values and corn production, and Sioux County said its citizens are worried about pipeline safety. “There is a big honey pot of tax credits that companies are racing to get a piece of,” Jess Mazour, conservation program coordinator for the Iowa chapter of the Sierra Club, told ENR… “Environmentalists are also concerned that CO2 will be used for enhanced oil recovery from old wells, which also qualify for federal tax credits.”
Bucks County Herald: Upper Makefield Township considers pipeline replacement project
Chris Ruvo, 4/28/22
“Energy Transfer, a midstream energy company that transports oil and gas, wants to replace part of an existing fuel-carrying pipeline in Upper Makefield that also runs beneath the Delaware River into New Jersey,” the Bucks County Herald reports. “To do so, the firm will need conditional use approval from the Upper Makefield Board of Supervisors. Supervisors recently held a hearing in which representatives for Energy Transfer presented testimony on the project. A couple of residents raised concerns about the pipeline while supervisors adjourned the meeting without rendering a final decision, opting to take the legally allowed time to further deliberate. Energy Transfer has already obtained various state and federal permits they need to perform the project, officials said. Representatives said the current pipeline, located along Oakdale Avenue and dating to the 1950s, is in need of replacing, as current temporary repairs that have been made are insufficient for the long-term integrity of the line. Officials said the plan is to put in a new pipe that runs in a riparian buffer zone in Upper Makefield before heading under the river, where there is also an existing pipe that will be improved… “The old pipe would reportedly be purged, cleaned and filled with grout. Resident Ellen Radow raised concern about potential chemicals used during construction and truck traffic. “Almost constant truck traffic … can get noisy,” she said. Resident Priscilla Linden worried about possible pollution from the pipe. “I think you better be careful,” she told supervisors.”
The Chetek Alert: Earth Day event warns of future oil spills
4/27/22
“On Earth Day, 20 people gathered along a roadside south of Exeland, in Rusk County at the site of Wisconsin’s largest oil spill,” The Chetek Alert reports. “Nukewatch, a climate justice and peace group based in Luck, Wisconsin, responded to a call to action to oppose the reroute of Enbridge’s Line 5 by the Indigenous-led environmental advocacy organization Honor the Earth and the statewide campaign March Forth to Earth Day. The event was among many Pipeline Easement Monitoring Actions held internationally and one of 20 events statewide taking part in the March Forth to Earth Day Project. Paul DeMain, a citizen of the Oneida Nation of Wisconsin and of Ojibwe descent, and Board Chair for Honor the Earth, spoke at the event that brought nature lovers from Barron, Rusk, Polk, Burnett, Washburn, and Sawyer counties. Many of the attendees had not heard about the spill that occurred 15 years ago when a pipeline belonging to the Canadian oil transportation company Enbridge spewed 4,800 barrels (126,000 gallons) of crude oil into the ground… “What many find nearly as shocking as the news of this oil spill is that Line 5 goes under the Straits of Mackinac, with the potential to spread hazardous tar sands into our Great Lakes, which hold 20% of the entire Earth’s fresh water…“Wisconsin is known and loved for its clean water. This oil spill is a stain on our record and our land. Let’s not let invite it to happen again by approving another pipeline easement,” Kelly Lundeen, a co-director of Nukewatch, told the Alert.”
Reuters: Activists turn off German oil pipelines in North Sea drilling protest
By Zuzanna Szymanska, 4/27/22
“German climate activists turned off crude oil pipelines at five locations on Wednesday, demanding the country look for other ways to reduce its dependence on Russian gas than starting new fossil fuel-based infrastructure projects such as deep-sea drilling,” Reuters reports. “In mid-March, Finance Minister Christian Lindner said Germany should rethink its ban on allowing new drilling for oil and gas in the North Sea as it looks for new energy sources after Russia's invasion of Ukraine. "We are in a climate emergency! The German government not only ignores it, it plans to fuel it further. To now want to drill for oil in our North Sea - this is madness that you must stop, Mr. Habeck!" activist Edmund Schulz said in a statement. The activists entered the pipelines' emergency stations in teams of two and activated shut-off valves that allow the flow of oil and gas to be safely turned off in case of emergency, the organisation said in a statement… “By 1000 GMT, the protests had taken place at sites near Berlin, Munich, Leipzig, Greifswald and Koblenz, a spokesperson for the activist group "Last Generation" told Reuters. She added the group would continue with further protests later on Wednesday and in next days if the German government did not declare it would stop all fossil fuel projects.”
WASHINGTON UPDATES
Press release: 500 Global Groups Urge Biden to End Fossil Fuel Era in Response to Russia-Ukraine War
4/27/22
“More than 500 organizations from six continents sent a letter to President Biden and other world leaders today, urging them to speed the end of the fossil fuel era and spur a just and equitable transition to 100% renewable energy. The letter demands an end to the violence and climate chaos sowed by fossil fuels. It was sent in solidarity with the people of Ukraine and people worldwide affected by the global volatility of oil and gas prices. Today’s letter states: “Humanity now faces a cascade of emergencies. The Russian military, business and political elites around President Putin are committing brutal crimes in Russia’s war of aggression in Ukraine, annihilating basic principles of state sovereignty and undermining democracy. At the same time, the climate crisis is wreaking an ‘atlas of human suffering.’ These crises may seem entirely independent, but they share the same dangerous thread: dependence on fossil fuels.” The groups’ letter comes two months after Russia began its unlawful, fossil fuel-funded assault on Ukraine and days after the Biden administration made a renewed Earth Day push to confirm its commitment to addressing the climate emergency. However, this purported commitment clashes with the administration’s plans to rapidly expand U.S. fossil gas exports to Europe and restart the federal fossil fuel leasing program. The letter condemns fossil fuel expansion and calls for an end to fossil fuel extraction, windfall profits, subsidies and other financial support to the fossil fuel industry.”
FOX Business: American oil refineries shutter amid Biden's hostile fossil fuel policies, adding to pain at the pump: expert
4/28/22
“LyondellBasell, the owner of one of the oldest refineries in Houston, became just one the latest refineries to close amid rising gas prices,” FOX Business reports. "These decisions are never easy, and we understand this has a very real impact on our refinery employees, their families, and the community," LyondellBasell interim CEO Ken Lane said in a statement over the weekend. The closure is not limited only to LyondellBasell. Houston oil analyst Andy Lipow pointed out that other Gulf Coast refineries have faced the same fate. "This is the third refinery on the Gulf Coast that is being shut in the last couple of years," Lipow told Fox 26… “Phil Flynn, a senior account executive/market analyst at the Price Futures Group and FOX Business contributor, warned that strict regulation under the Biden administration will continue to put pressure on refineries to stay in business. "It wasn't too long ago the country was clamoring for the industry to buy and build new refineries because they couldn't keep up with demand," Flynn told FOX. But government pressure to wean the country off of fossil fuels has made business difficult, with Flynn arguing that "refineries are getting squeezed out of business because of stricter regulations from the Biden administration and the pressure by the government" to "reduce demand for gasoline."
E&E News: LNG terminal developers defend federal water permit in court
NIINA H. FARAH, 4/27/22
“Developers of a proposed liquefied natural gas export facility in southern Texas this week urged a federal appeals court not to toss out a water permit for the project,” E&E News reports. “The companies behind the Rio Grande LNG terminal and associated Rio Bravo pipeline said addressing environmental and local groups' concerns about the impacts of construction of the LNG project to nearby wetlands did not require the Army Corps of Engineers to begin its review from scratch. "Ultimately, Petitioners simply disagree with the Corps’ bottom-line conclusions and ask this Court to re-weigh the evidence and substitute its views for that of the expert agency," Rio Grande LNG LLC and Rio Bravo Pipeline Co. LLC told the 5th U.S. Circuit Court of Appeals in a brief filed Monday. "But the Corps’ decision was supported by a reasoned basis," they continued, "and this Court must respect the agency’s weighing of evidence and ultimate determinations about the duration of construction impacts and the timing of restoration."
E&E News: House Democrats probe Alaska natural gas leak
HEATHER RICHARDS, 4/27/22
“Leading Democratic lawmakers on the House Natural Resources Committee are pressing ConocoPhillips Co. to answer “troubling questions” about a natural gas leak in the Arctic earlier this year that took several weeks to contain,” E&E News reports. “In a letter yesterday to CEO Ryan Lance, Chair Raúl Grijalva, of Arizona questioned why it took the company so long to stem the leak and asked whether a similar release could occur from the $6 billion Willow project the company has proposed on public lands in the nearby National Petroleum Reserve-Alaska. Oversight and Investigations Subcommittee Chair Katie Porter (D-Calif.) and Energy and Mineral Resources Chair Alan Lowenthal (D-Calif.) also signed the letter, which notes ConocoPhillips’ disclosure that trace amounts of gas may continue to escape over time. “The ongoing leak and ConocoPhillips’ response raises a number of troubling questions, including how your company would respond to similar leaks at your proposed Willow project inside the National Petroleum Reserve-Alaska,” the lawmakers wrote.
STATE UPDATES
Politico: Will California ban offshore oil drilling?
By LARA KORTE, JUHI DOSHI and CHRIS RAMIREZ, 4/26/22
“Six months after a busted ocean floor pipeline leaked 25,000 gallons of crude oil into the waters off the coast of Huntington Beach, lawmakers today will vote on a bill that could end offshore oil and gas activity in state waters by 2024,” Politico reports. “Senate Bill 953 by Costa Mesa Democratic Sen. Dave Min is a direct response to the oil spill, which shut down beaches from Orange County to San Diego in October and renewed calls from progressives to further stem Caifornia’s oil and gas production. The bill gets its first hearing in the Senate Natural Resources and Water Committee this morning, but faces opposition from groups that say an end to offshore drilling will only increase California’s reliance on foreign oil imports, creating a higher risk of spills… “Gov. Gavin Newsom’s support could prove critical on this bill, which unsurprisingly faces industry opposition. But despite exorciating the “damn platforms” after last year’s oil spill, the governor hasn’t publicly backed SB 953. Min in October told POLITICO that the Newsom administration had cautioned him about the money and logistics involved with halting all drilling in state waters.”
Texas Monthly: A New Texas Oil Boom Is Coming, Finally
Russell Gold, 4/26/22
“In the two months since Russia invaded Ukraine and oil prices shot up to more than $100 a barrel, the perplexing question for the Texas energy industry has been: Why isn’t anyone drilling?,” Texas Monthly reports. “The answer initially was that the oil business has become beholden to a new group of investors who have no interest in strapping in for a roller-coaster ride. They ponied up their money for a nice calm turn on the kiddie train. This dynamic still holds, but evidence is emerging that the recent fossil fuel boom may stick around for a while. That could melt the frosty resistance to deploying more rigs—if only the exploration companies can find enough workers and parts to make that happen… “Le Peuch is the CEO of Schlumberger, the world’s largest oil-field service company. When anyone from Chevron to a one-rig family company wants to work on a well, they call Schlumberger, giving the Houston company a wide-angle view of energy trends. Last week, Le Peuch, while announcing a surge in business and profits, said the Russian invasion had spurred interest by companies and countries in having a more secure and diverse supply of oil and gas. That means a lot of energy investment can be expected to open new producing areas and boost the output of existing areas. Overall, he said the industry is entering an “exceptional” period marked by “a cycle of higher magnitude and duration than previously anticipated.” In other words, there will be a boom—and it will be stronger and longer than expected. This message will likely be reinforced later this week when Exxon reports its first-quarter earnings, which it has hinted could feature record-breaking profits.”
EXTRACTION
Press release: OVER 500 GLOBAL GROUPS CALL ON WORLD LEADERS TO HELP END THE RUSSIAN WAR IN UKRAINE AND TO END THE RELIANCE ON FOSSIL FUELS
4/27/22
“Today over 500 civil society organisations from six continents urge world leaders to renew efforts to facilitate an end to the Russian war in Ukraine and to end a dangerous dependence on fossil fuels that is driving war, instability and conflicts globally. Two months after the start of this war, which continues to kill and displace millions of people in Ukraine, this letter calls on national leaders to view this moment as an inflection point and usher in global peace, international solidarity and stability that is built around the rapid, just and equitable transition to renewables and energy efficiency technologies. The letter states: “Humanity now faces a cascade of emergencies. The Russian military, business and political elites around President Putin are committing brutal crimes in Russia’s war in Ukraine, annihilating basic principles of state sovereignty and undermining democracy. At the same time, the climate crisis is wreaking an “atlas of human suffering”. These crises may seem entirely independent, but they share the same dangerous thread: dependence on fossil fuels.” The letter specifically urges leaders to stop fossil fuel expansion, tax windfall profits, and eliminate subsidies and other financial support to the oil, coal, and gas industry. The letter also demands that safe, distributed, democratic renewable energy systems and energy-efficiency technologies proliferate in the place of fossil fuels and reach the one billion people still without electricity.”
Guardian: Just Stop Oil protesters sabotage petrol pumps on M25 motorway
Damien Gayle, 4/28/22
“Environmental activists have sabotaged petrol pumps at two motorway service stations, in what they described as a “significant escalation” in their campaign against fossil fuel distribution in England,” the Guardian reports. “About 35 supporters of the Just Stop Oil campaign staged blockades at the Cobham services in Surrey and the Clacket Lane services in Kent, both on the M25, smashing the display glass on petrol pumps with hammers and defacing them with spray paint. The action against new fossil fuel targets came after the companies controlling the fuel terminals that had previously been targeted obtained civil injunctions banning protests at their sites. The activists struck at the two motorway services at 7am. A video from one site showed a campaigner using a small window-breaking hammer to smash the glass on one pump, and spraying the broken dial with orange spray paint… “Since 1 April, when supporters of Just Stop Oil first began blocking oil terminals, there have been over 1,000 arrests. The supporters of Just Stop Oil will continue the disruption until the government makes a statement that it will end new oil and gas projects in the UK.”
Canadian Press: Federal tax credit not enough to get carbon capture projects built, Cenovus CEO says
4/27/22
“The investment tax credit unveiled by the federal government earlier this month isn't enough to convince Canada's major oilsands producers to begin construction on a proposed massive carbon capture and storage transportation line, the chief executive of Cenovus Energy Inc. said Wednesday,” the Canadian Press reports. “On a conference call with analysts, Alex Pourbaix said industry will need "more help" from both the federal government and the government of Alberta in order to go ahead with large-scale carbon capture and storage projects like the one proposed by the Oil Sands Pathways to Net Zero consortium… “But while Pourbaix said the recently unveiled federal tax credit for companies investing in carbon capture projects is a good start, companies need to be certain there will be additional government money over the long-term to help with building and operating the expensive technology… “Starting this year, companies will be able to claim a tax credit of up to 60 per cent for direct air capture projects and 50 per cent for all other eligible carbon capture projects. A 37.5 per cent tax credit is available for investment in equipment for carbon transportation, storage and use. But Pourbaix said in some parts of the world, governments have provided up to 60 or 70 per cent of the capital costs of new carbon capture projects, in addition to providing operating support. He said the Pathways alliance will need more detail about what kind of additional support to expect before it can make a final investment decision… “Pourbaix made the comments the same day Cenovus announced a first-quarter profit of $1.6 billion, or 81 cent per share, compared with a profit of $220 million or 10 cents per share in the first quarter of 2021. Revenue totalled $16.2 billion, up from $9.3 billion in the same quarter last year. Cenovus also announced the tripling of its quarterly dividend, to 42 cents per share a year, up from 14 cents per share a year.”
Bloomberg: Cenovus Holds Line on Production Growth Even With Oil Above $100
Robert Tuttle, 4/27/22
“Cenovus Energy Inc. is holding back on spending to increase oil and gas production even as Russia’s invasion of Ukraine keeps oil above $100 a barrel,” Bloomberg reports. “The oil sands company’s $300 million boost to total capital expenditures for the year will cover increased costs to complete the rebuild of the Superior Refinery in the U.S. Spending on oil sands and conventional oil and gas output was unchanged from previous guidance in December. The outlook for oil sands production was cut by about 3%, while forecasts for offshore and conventional oil and gas production were also unchanged. Cenovus is limiting growth even with oil prices in excess of $100 as buyers scramble to find alternatives to Russian crude after its invasion of Ukraine. Earlier this year, the Canadian government said the country could increase oil output by about 200,000 barrels a day to make up for lost supplies… “The company announced it would triple its dividend as it nearly doubled operating earnings guidance. Cenovus plans to use a windfall of cash to reduce its net debt to C$4 billion ($3.12 billion) as early as the end of this year, at which time 100% of excess free fund flows will be returned to shareholders through share buybacks and variable dividends.”
Reuters: Canada overestimating hydrogen's potential cut carbon emissions, report says
By Nia Williams, 4/26/22
“Canada has overestimated how much using hydrogen could reduce greenhouse gas emissions over the next decade, potentially jeopardizing Ottawa's ability to meet climate targets, a report from the Auditor General's office said on Tuesday,” Reuters reports. “Hydrogen is a low carbon fuel that policymakers hope will replace fossil fuels used in industry and heavy-duty vehicles. Canada's Natural Resources ministry released a federal hydrogen strategy in December 2020 but used "unrealistic assumptions" to calculate that the clean fuel could cut 45 megatonnes of emissions by 2030, Jerry DeMarco, Commissioner of the Environment and Sustainable Development, said in his report… “DeMarco told Reuters Canada's hydrogen strategy assumed a low price for electricity, the adoption of aggressive and sometimes nonexistent policies, and an ambitious uptake of new technology. "In our view, the assumptions in the federal hydrogen strategy are overly optimistic and compromise the credibility of the expected emission reductions," DeMarco said in a statement.
CLIMATE FINANCE
Bloomberg: U.S. Lawmakers Push Insurers to Stop Underwriting Fossil Fuels
Josh Saul, Max Reyes & Sarah McGregor, 4/28/22
“A group of Democratic lawmakers, mostly members of the Congressional Progressive Caucus, have asked some of the nation’s biggest insurance companies to stop underwriting new fossil fuel projects that contribute to climate change,” Bloomberg reports. “New York Representatives Mondaire Jones and Alexandria Ocasio-Cortez as well as California’s Jared Huffman and Adam B. Schiff were among 16 lawmakers who issued the letters on Wednesday to more than a dozen insurance companies, including American International Group Inc., Berkshire Hathaway Specialty Insurance Co. and Chubb Ltd. “The insurance industry profits from the expansion of fossil fuels while ripping the rug out from under the communities most affected by climate change,” according to the letters. To avoid the most catastrophic effects of climate change, the International Energy Agency says there can’t be any new development of fossil fuel projects. The letter also criticized insurers for cutting back services and raising prices in areas most affected by climate threats, like wildfires. The letters come as insurers try to distance themselves from fossil fuels and achieve carbon neutrality goals.”
OPINION
Inforum: Port: Fractures in the North Dakota Republican Party loom over proposed carbon pipeline
Rob Port, 4/27/22
“According to Daryl Lies, president of the North Dakota Farm Bureau, the CO2 pipeline proposed by Summit Carbon Solutions is the most pressing issue facing our state right now,” Rob Port writes for Inforum. “I know because a visibly angry Lies shouted this at me during an angry rant at the North Dakota Republican Party's state convention earlier this month… “He said that I should instead be writing about the Midwest Carbon Express pipeline and the threat it poses to landowners… “I have had the opportunity to lead the organization for 6½ years now,” Lies said at that meeting, per the Bismarck Tribune . “In that 6½ years, I have not had another single issue that I have received more messages, more phone calls, more emails about than this issue. That’s saying a lot.” “...Add in the looming question of eminent domain —- Summit Carbon Solutions say that's a possibility they're trying to avoid — and things become all the more controversial… “I suspect it has more to do with the fractures in the North Dakota Republican Party than the particulars of the pipeline project. Gov. Doug Burgum and his administration have been outspoken proponents of carbon capture and sequestration, not just as an avenue for keeping North Dakota's carbon-heavy industries viable amid the shifting winds of climate politics, but as a new industry for North Dakota in and of itself… “But Burgum is also the bête noire for Becker and his Bastiat Caucus movement, and Lies is a Becker Backer. It's not hard to see a motivation there. There is nothing wrong with landowners opposing a pipeline to be built across their property. There's nothing wrong with asking questions or holding out to get a better deal on an easement. But one has to wonder if the North Dakota Farm Bureau, under the leadership of Lies, is helping landowners in that goal, or inflaming the already fraught process of building a pipeline in pursuit of a rank political agenda.”
Calgary Herald: Varcoe: As profits surge and dividend triples, Cenovus looks for extra government help for CCUS
Chris Varcoe, 4/28/22
“Oil is back over US$100 a barrel and Canadian petroleum producers are seeing first-quarter profits take off. At the same time, Canadian oilsands producers are also seeking financial help from governments as they consider making mammoth capital investments in carbon capture, utilization and storage projects (CCUS) in Alberta. To state the obvious, this will be a tough sell,” Chris Varcoe writes for the Calgary Herald. “Oil prices go up, oil prices go down. But when we make these kinds of investments, these are . . . multibillion-dollar projects and we have to have certainty that they are investable and we can manage those investments over the entire commodity price cycle,” Cenovus CEO Alex Pourbaix said Wednesday on the company’s first-quarter earnings call. Cenovus posted stellar first-quarter results with net income jumping more than 600 per cent from a year earlier to $1.6 billion, and the oilsands giant tripled its base dividend… “This company is generating massive amounts of free cash flow,” analyst Phil Skolnick of Eight Capital told the Herald, noting the market was expecting a doubling of the dividend, not a tripling… “Ottawa included an investment tax credit of 50 per cent in this month’s federal budget for equipment to capture CO2 in such CCUS projects. It falls short of the request by the Canadian Association of Petroleum Producers for a 75 per cent tax credit, although Pourbaix called it “a very good start.” “...As an industry, we are going to require some more help at a steady-state to probably go forward with these really meaningful large-scale CCUS projects,” Pourbaix said… “How does the industry press for incentives when profits are growing and pump prices recently hit record levels? Prepare for a battle ahead. “These are guys who are Scrooge McDuck-style swimming in cash at the moment,” Keith Stewart, senior energy strategist for Greenpeace Canada, told the Herald. “These guys can afford to do this.” “...It’s a pretty hard case to make for additional incentives after getting a 50 per cent tax credit . . . at a time when they have substantial free cash flow and are making substantial dividend payments,” Sara Hastings-Simon, director of the University of Calgary’s masters in sustainable energy development program, told the Herald.”
The Hill: Cut the root of Russia’s power by making a clean energy transition
Eric W. Orts is the Guardsmark Professor at the Wharton School of the University of Pennsylvania, 4/27/22
“We need to connect the dots: The war in Ukraine is inextricably linked with the climate emergency. We need to save both democracy and the climate,” Eric W. Orts writes for The Hill. “Much stronger responses are needed than cheering on Ukrainians, selling them weapons, and levying economic sanctions on Russia. We need a strategy to cut the root of Russia’s power: the global economy that runs on fossil fuels… “The answer is for other countries — led by the United States, Europe, and other major democracies — to make the hard turn toward a clean energy transition that climate scientists have been urging for decades… “The recipe for a decisive victory, however, is not mindlessly to “drill, baby, drill.” President Biden should also double down on his commitment to lead an energy transition to zero-carbon energy. He should declare a national energy emergency to turbocharge a climate-friendly conversion of electricity, transportation, buildings, industry, and agriculture, as well as call for cost-saving energy efficiency measures. This strategy would undermine the geopolitical power of Russia and other authoritarian petrostates such as Saudi Arabia and, to some extent, China. Not for nothing does Vladimir Putin fear a clean energy revolution. Failing to “invest in our planet,” the theme of Earth Day this year, will not only play into Putin’s hands but will condemn current and future generations to a climate apocalypse… “Russia’s invasion of Ukraine provides a clarifying moment. The free world should unite to protect both our climate and democracy. China, India, and other governments would then face a choice too: on which side of history do they wish to stand?”