EXTRACTED: Daily News Clips 5/19/22
PIPELINE NEWS
AgWeek: Landowner attorney tells South Dakota that Summit's pipeline application should be thrown out
Pipeline Fighters Hub: Why is the Summit Carbon Pipeline Going to the Middle of North Dakota?
Star Tribune: Minnesota utility regulators vote Thursday whether to regulate CO2 pipelines
Press release: Tallgrass to Capture and Sequester CO2 Emissions From ADM Corn Processing Complex in Nebraska
Ames Tribune: 'We owe it to the landowners': Story County supervisors hear from CO2 pipeline inspector
Bloomberg: Premier of Oil-Rich Alberta Steps Down After Leadership Vote
Chatham Star Tribune: Pipeline builders will reapply for federal permits
Natural Gas Intelligence: FERC Issues DEIS for Tellurian Subsidiary’s Pipeline Project in Louisiana
The Narwhal: Letters reveal what energy companies told RCMP before Wet’suwet’en raid
On-Site: A tale of three pipelines: Renewing Canada’s energy infrastructure.
WASHINGTON UPDATES
Politico: GOP PRESS RAIMONDO TO FIX OFFSHORE PERMITS
WHYY: Worried by Ukraine war impacts, environmentalists petition feds to dump LNG by rail
E&E News: Community methane monitoring fills gaps left by EPA
STATE UPDATES
Politico: Court won't reconsider Baltimore climate suit ruling, teeing up SCOTUS appeal
Wisconsin State Journal: Judge upholds state approval of Superior gas plant; $700M project faces additional hurdles
EXTRACTION
Guardian: Shut down fossil fuel production sites early to avoid climate chaos, says study
CLIMATE FINANCE
Yahoo Finance: Oil stocks to keep gushing dividends, payouts in 2023: Scotiabank
E&E News: SEC to consider sustainable investing rules
OPINION
Calgary Herald: Varcoe: Keystone XL 'done and dusted,' but not buried — Kenney seeks new oil pipeline to U.S.
Forbes: Federal Financial Regulators Prepare To Throttle US Oil Producers
Calgary Herald: Varcoe: 'We need to get after it' — Enbridge CEO sees future growth for Canadian energy
Los Angeles Times: Op-Ed: California can do better than carbon neutrality by 2045
PIPELINE NEWS
AgWeek: Landowner attorney tells South Dakota that Summit's pipeline application should be thrown out
Jeff Beach, 5/18/22
“An attorney representing multiple landowners in the path of a proposed carbon pipeline says the company's South Dakota application for a permit should be thrown out,” AgWeek reports. “The filing with the South Dakota Public Utilities Commission by attorney Brian Jorde is in response to a request from Summit Carbon Solutions for more time for its permit to be processed. Jorde's response, filed May 17, says Summit Carbon Solution "has admitted and affirmed numerous Application deficiencies such that the appropriate course is to dismiss this Application and close this docket. In the alternative, Landowners move for a stay of all current proceedings and request no deadlines be established until a conforming and complete Application is filed ... ." In a letter on May 9, Summit also set an Oct. 13 deadline for it to submit an updated route. It initially filed for a permit in February but has since made adjustments to its route. Jorde's filing states: "It is impossible to analyze what threats this proposed hazardous pipeline may pose to the environment, to social, or to economic conditions of persons in the siting area if we do not have a definite route we are analyzing." “...Jorde, who represents landowners in other states along the route, has asked that his filing be addressed at the June 8 meeting of the South Dakota Public Utilities Commission.”
Pipeline Fighters Hub: Why is the Summit Carbon Pipeline Going to the Middle of North Dakota?
Paul Blackburn, 5/18/22
“One wonders, why is Summit Carbon Solutions’ “Midwest Carbon Express” pipeline proposed to go all the way to the middle of North Dakota? What’s so special about this particular location?,” Paul Blackburn writes for the Pipeline Fighters Hub. “...Does Summit need to go this far into North Dakota to find a geologically suitable sequestration site? Probably not… “Considering all of these maps, it appears that there is substantial suitable sequestration geology at least 100 miles to the southeast of Summit’s proposed sequestration wells. Why build 100 additional miles of expensive pipeline? What’s so special about the border area between Oliver and Mercer Counties? Answer: This area contains two coal strip mines (the Coyote Creek and Antelope Coal Mines), two coal-fired power plants (the Coyote and Antelope Generating Stations), a coal gasification plant that turns coal into natural gas (the Great Plains Synfuels Plant), and an existing 14-inch diameter CO2 pipeline (the Souris Valley Pipeline) that runs north from the synfuel plant to an enhanced oil recovery (EOR) operation at the Weyburn oilfield in Canada… “There are a number of potential reasons why Summit might have chosen the border area of Oliver and Mercer Counties for the terminus of its proposed pipeline and sequestration wells: 1. The coal mines own a lot of land that could be used for CO2 sequestration, including active mine sites, reclaimed sites, and possible future sites… “4. The corporate entities that would own the CO2 captured in Iowa, Nebraska, Minnesota and North and South Dakota and shipped through the Summit Pipeline are not required by government regulation to sequester this CO2. Instead, they can decide on an ongoing basis whether it is used for EOR or sequestered… “Ultimately, Summit is in business to make money, and it should be expected to jump at any option to maximize its profits. While Summit may have no expectation in the near-term that its CO2 would be used for EOR, nothing in federal law would prevent such use. Even if private contractual conditions exist to sequester the CO2, such contracts could and likely would be amended if there is money to be made. It could be that Summit at first injects CO2 into long-term geological storage. Then, once a steady supply of CO2 is assured, whoever owns the carbon capture equipment could begin selling CO2 to EOR projects to pump even more oil (and carbon) out of the ground. That would be a bait and switch.”
Star Tribune: Minnesota utility regulators vote Thursday whether to regulate CO2 pipelines
Mike Hughlett, 5/17/22
“Minnesota utility regulators on Thursday will likely decide whether two planned carbon dioxide pipelines should be classified as "hazardous," and thus regulated,” the Star Tribune reports. “The multistate pipelines would transport carbon dioxide captured at ethanol plants, including eight in Minnesota. CO2 is considered a hazardous pipeline material under federal law and in some states, but not Minnesota. In December, the Minnesota Public Utilities Commission (PUC) opened an inquiry into the two multibillion-dollar pipelines, which also cross neighboring states, particularly Iowa. If the PUC opts to regulate the pipelines, both would require the commission's approval. Currently, individual counties would have to approve both pipelines. Several state agencies have submitted comments to the PUC favoring regulation, including the departments of public safety, commerce and transportation. "All of Minnesota, including state agencies, rely on the robust regulatory process that the commission provides, and carbon capture projects that fall within the correct size category should be no exception," the Transportation Department said in PUC filing… “Environmental groups, Indian bands and several citizens have also weighed in on the side of PUC oversight. The Upper Sioux Community, which is nearby one proposed pipeline, said in a PUC filing that it "believes that further review is necessary by the state to ensure the preservation of human, animal and plant health for this generation and future generations." In a filing, Navigator CO2 said the state's current regulatory scheme is adequate and PUC intervention now would delay and possibly jeopardize its project. Summit questioned whether the PUC has the authority to modify its own rules, saying that's the Legislature's responsibility… “Still, the Great Plains Institute, a Minneapolis-based nonprofit energy research group, said in a PUC filing that there's never been a fatality from a CO2 pipeline accident — and that risks can be avoided if a pipeline is properly sited. The Great Plains Institute argued against deeming CO2 as hazardous, saying such a classification could hinder the development of carbon capture projects — which are vital to address climate-change goals. Some other clean energy and environmental groups, however, are skeptical of carbon capture, saying it prolongs the lifespan of CO2-emitting power and fuel production.”
Press release: Tallgrass to Capture and Sequester CO2 Emissions From ADM Corn Processing Complex in Nebraska
5/18/22
“Tallgrass announced it has entered into an agreement with ADM that would pave the way for Tallgrass to capture carbon dioxide (CO2) from ADM’s corn-processing complex in Columbus, Neb., and transport it to Tallgrass’ Eastern Wyoming Sequestration Hub for permanent underground storage. By utilizing a converted natural gas pipeline for CO2 transportation, Tallgrass minimizes the need for new pipeline infrastructure while enabling ADM, a global leader in sustainable products, to further decarbonize its global operations and strengthen Nebraska’s agriculture industry. Tallgrass is advancing a project to convert its Trailblazer natural gas pipeline to CO2 transportation service and establish an approximately 400-mile CO2 pipeline to serve as the backbone of a regional CO2 transportation system. The pipeline, which runs through Wyoming, Colorado, and Nebraska, will be capable of transporting more than 10 million tons of CO2 per year for permanent sequestration and is ideally situated to transport CO2 from ADM’s plant and other commercial and industrial sources to a sequestration hub in eastern Wyoming. In preparation for this initiative, Tallgrass recently announced plans to develop a commercial-scale CO2 sequestration hub in eastern Wyoming expected to be in service in 2024… “Nebraska Farm Bureau’s farm and ranch member families have long supported pipeline projects for use as part of our nation’s important energy and carbon capture infrastructure,” said Mark McHargue, president of the Nebraska Farm Bureau. “As those who rely upon our nation’s natural resources to produce the world’s food, fiber, and fuel, Nebraska’s farmers and ranchers are also dedicated to ensuring their future use for generations. Projects like these provide agricultural producers with options that add value and support key industries like ethanol production, while continuing to steward the land and climate families rely upon.”
Ames Tribune: 'We owe it to the landowners': Story County supervisors hear from CO2 pipeline inspector
Danielle Gehr, 5/18/22
“A potential inspector for two carbon-sequestration pipelines proposed for Iowa presented its plan to the Story County Board of Supervisors on Tuesday,” the Ames Tribune reports. “If hired, Snyder & Associates Inc. would be tasked with protecting landowners from any damage that construction of the hundreds of miles of pipelines could cause… "First and foremost, our obligation is to the county and to the citizens," Synder & Associates transportation business unit leader Wade Greiman said. "We're here to make sure your interests are taken care of, as well as the property owners." After the Dakota Access Pipeline left damage to property across Iowa, many opponents have used the dozens of informational meetings to speak against the CO2 pipelines. Though the companies offer reimbursement for loss of yields, farmers worry over how damage could cause inferior production for years following… “Even if they are hired, their work would be necessary only if the projects are approved for permits by the Iowa Utilities Board. "If they get a permit," Snyder & Associates construction technician Kristina Paradise said. "That's the first big 'if.'" Synder & Associates would be charged with maintaining documents and being present with each crew during construction in counties they serve. Paradise said the inspectors would have the authority to stop construction if issues such as wet conditions damaging to soil arise. Paradise said that her background includes work for Columbia Pipeline and TransCanada on the Keystone Pipeline, among other pipeline projects, and that she has previously halted work on a project due to safety concerns.”
Bloomberg: Premier of Oil-Rich Alberta Steps Down After Leadership Vote
Brian Platt and Robert Tuttle, 5/18/22
“Jason Kenney stepped down as Alberta premier after winning just 51.4% support of party members in a leadership vote, plunging the oil-rich Canadian province into political turmoil,” Bloomberg reports. “The result is not what I hoped for or frankly what I expected,” Kenney told a Calgary audience after the result was announced Wednesday evening. The vote, conducted by mail-in ballot, was a make-or-break moment for Kenney ahead of the provincial election scheduled for spring 2023… “It’s a stunning defeat for a politician who has dominated Canada’s conservative movement for the past decade… “Kenney is stepping down just as Alberta’s economy is turning a corner after years of depressed prices halted development in the oil sands, the world’s third largest source of crude reserves. Earlier this year, the government tabled a balanced budget for the first time since 2014 as oil surged above $100 a barrel, bringing a windfall of royalty revenue.”
Chatham Star Tribune: Pipeline builders will reapply for federal permits
CHUCK VIPPERMAN, 5/18/22
“The group building the Mountain Valley Pipeline hopes the third time is the charm. Twice they’ve been granted federal permits to proceed with the $6 billion project, and twice those permits have been yanked,” the Chatham Star Tribune reports. “Equitrans, the lead investor in the effort, announced last week they will reapply for permits from the U.S. Forest Service and the U.S. Fish and Wildlife Service. Earlier this year, the Fourth Circuit Court of appeals in Richmond revoked the permits both agencies granted for the pipeline in 2021. It was the second time the court had revoked previously-issued pipeline permits from those two agencies. By reapplying for the federal permits, Equitrans is forgoing the option of appealing those two rulings to the U.S. Supreme Court. Under a best-case scenario, Equitrans tells shareholders they would restart construction next spring or summer and finish it before the end of 2023.”
Natural Gas Intelligence: FERC Issues DEIS for Tellurian Subsidiary’s Pipeline Project in Louisiana
JAMISON COCKLIN, 5/18/22
“FERC has prepared a draft environmental impact statement (DEIS) for a Tellurian Inc. pipeline project that would potentially serve natural gas demand in Southwestern Louisiana and the company’s Driftwood liquefied natural gas (LNG) export project,” Natural Gas Intelligence reports. “The Federal Energy Regulatory Commission (FERC) concluded that construction and operation of the Driftwood Line 200 and Line 300 projects would result in some environmental impacts that could be mitigated. The Commission found that most impacts would be temporary and occur during construction. “With the exception of climate change impacts, that are not characterized in this EIS as significant or insignificant, we conclude that project effects would not be significant based on implementation of Driftwood’s impact avoidance, minimization and mitigation measures, as well as their adherence to our recommendations,” FERC said. Commission staff developed specific mitigation measures for construction and operation, recommending that they be included as conditions for authorizing the pipelines… “Tellurian is developing the 27 million metric tons/year Driftwood LNG export terminal in the region, but has yet to sanction the project… According to regulatory filings, Tellurian said it signed a 20-year transportation agreement for 4.6 Bcf/d with an undisclosed foundation shipper.”
The Narwhal: Letters reveal what energy companies told RCMP before Wet’suwet’en raid
Matt Simmons, 5/18/22
“In late April, RCMP officers walked into the Gidimt’en Camp near the confluence of Ts’elkay Kwe (Lamprey Creek) and Wedzin Kwa (Morice River). Their visits on unceded Wet’suwet’en territory in northwest B.C. had been a daily occurrence, with members of the RCMP’s Community-Industry Response Group showing up at all hours, including in the middle of the night according to locals,” The Narwhal reports. “...The RCMP told The Narwhal the purpose of these visits is related to a February incident, during which unidentified individuals chased off Coastal GasLink security workers and vandalized equipment… “While some elected chiefs and councils and Wet’suwet’en members support the Coastal GasLink project, Wickham, other land defenders and their allies say the escalating police activity is a sign of how a private corporation has been able to get RCMP officers to handle its own security needs. Internal correspondence and emails obtained by The Narwhal also show how pipeline company TC Energy provided instructions to the RCMP that made their way to the force’s headquarters in Ottawa. “It indicates the relationship between the RCMP — C-IRG specifically — and TC Energy, Coastal GasLink employees,” Wickham told The Narwhal in an interview. “On multiple occasions, I have witnessed the RCMP on the ground take direction from Coastal GasLink workers. Their relationship is so close and intertwined that it’s hard to distinguish roles.” “...TC Energy’s Kent Wilfur, a vice president of Coastal GasLink, wrote to RCMP Commissioner Brenda Lucki and RCMP Chief Superintendent John Brewer on Nov. 2… “In the letter, Wilfur said the police force was “not enforcing the injunction” and stated that lack of action is “contrary to upholding the rule of law.” “...Wilfur singled out Wickham in his letter, noting that she “has been arrested in the past for breaching the injunction as a result of the unlawful activities.” “...Wilfur concluded: “We are left with very little recourse but to make an application to the court to have direction provided to the RCMP to enforce, so that we may resume work on this critical aspect to our project.” “The courts can’t instruct police to enforce,” Jeffrey Monaghan, associate professor at Carleton’s Institute for Criminology and Criminal Justice, told The Narwhal in an interview. “The company just has no clue what they’re talking about.” “...TC Energy did not answer questions about why they decided to note the presence of Wickham in communications to the RCMP, noting “there are a number of matters before the courts and an active criminal investigation underway.”
On-Site: A tale of three pipelines: Renewing Canada’s energy infrastructure.
Saul Chernos, 5/19/22
“Economic sanctions imposed in response to Russia’s invasion of Ukraine have raised the profile of Canadian energy supplies, along with the pipelines that enable access and distribution of oil and gas,” On-Site reports. “Last year, TC Energy announced the termination of its Keystone XL Pipeline Project following the revocation of its Presidential Permit in the United States. That would have carried crude from Canada’s Oil Sands to refineries and other facilities in Illinois, Oklahoma and Texas. Three other major Canadian pipeline projects have carried on, however. Coastal GasLink’s $6.6-billion natural gas pipeline, majority owned by TC Energy, is 60 per cent complete and is intended to transport liquefied natural gas 670 kilometres from Dawson Creek, British Columbia to an LNG Canada liquefaction plant near Kitimat, B.C., where the gas will be processed for export, mainly to Asia. The Trans Mountain Pipeline System, built in 1953, is undergoing a $21.4 billion expansion to twin 1,150 kilometres of existing pipeline from Edmonton to the coast at Burnaby, B.C... “Enbridge’s Line 3, an oil line in operation since 1968, runs 1,659 kilometres from Hardisty, Alta., to Superior, Wisc., and is a significant conduit of Canadian crude to American markets… “All three projects have faced multiple challenges, including opposition from Aboriginal communities whose traditional lands they cross, and from environmentalists. In some cases, local protests have spread across Canada, leading to rail blockades and other disruptions… “Gurpreet Lail, president and CEO of the Petroleum Services Association of Canada, told On-Site the advanced stage of the projects, combined with work to improve rapport with First Nations, bodes well for Canadian pipeline efforts now and down the road. “I think the conversation is shifting,” Lail told On-Site. “The better relationships we build between industry and indigenous partners, the more opportunities will open up.”
WASHINGTON UPDATES
Politico: GOP PRESS RAIMONDO TO FIX OFFSHORE PERMITS
Matthew Choi, 5/18/22
“Several top Senate Republicans are asking Commerce Secretary Gina Raimondo to expedite permitting for offshore oil and gas leases that were delayed due to miscalculations on environmental impacts,” Politico reports. “The letters of authorization would be for geological exploration on existing leases in the Gulf of Mexico and have been backlogged at Commerce’s National Marine Fisheries Service, some for over 100 days, the lawmakers wrote in a letter to Raimondo sent Tuesday evening and shared exclusively with ME. “NMFS’ permitting delays represent one example of the Administration’s de facto ban on new drilling — impeding domestic oil and gas investment, exploration and production,” the senators, led by Sen. Ted Cruz (R-Tex.) wrote. Other signatories include Energy Committee ranking member John Barrasso, Environment and Public Works ranking member Shelley Moore Capito and several other prominent energy Republicans.”
WHYY: Worried by Ukraine war impacts, environmentalists petition feds to dump LNG by rail
Susan Phillips, 5/19/22
“Environmental groups are urging the Biden Administration to reverse a Trump era rule that allows rail shipments of liquified natural gas (LNG). The groups say the war in Ukraine, and the subsequent plans by the White House to increase LNG exports, should not derail the Department of Transportation’s proposal to reinstate limits on LNG-by-rail,” WHYY reports. “We cannot let an energy crisis that comes out of Ukraine turn into a blanket thrown over the climate crisis,” said Tracy Carluccio, of the Delaware Riverkeeper Network, during a virtual press conference Wednesday. “The climate crisis is the fight of our lives, it’s the fight of our time.” The Delaware Riverkeeper Network, along with half a dozen other advocacy groups, petitioned the Department of Transportation on Wednesday to follow through on their plan to suspend a Trump-era rule that opened up the nation’s railways to LNG. While industry advocates say rail transport is safe, a leak of LNG carries risk of explosion. The petition also urges the Biden Administration to outright ban any LNG-by-rail due to both safety hazards, and the climate impacts of expanding fossil fuel infrastructure and development. Carluccio told WHYY the groups are against all forms of LNG production and transport, including pipelines. “We leave it in the ground, that’s basically the answer,” Carluccio told WHYY. “We’re not going to be able to ever safely move it, process it, or export it.” “...The petitioners also want PHMSA to reject the Gibbstown LNG-by-rail permit. But plans for a liquefaction plant in Bradford County that would feed the export terminal have run into their own permitting roadblocks that could put the project on hold, if not derail it altogether.”
E&E News: Community methane monitoring fills gaps left by EPA
Jean Chemnick, 5/17/22
“When EPA issues its supplemental draft rule on methane later this year, it’s expected to propose a new role for air quality monitoring by nonprofits and fence-line communities sited near oil and gas development,” E&E News reports. “The agency’s first draft of the methane rule, released in November, solicited ideas on how EPA could leverage a recent boom in monitoring conducted by communities, independent scientists and nonprofits to find and fix leaks more swiftly. Agency officials have said the goal is to empower fence-line communities that live in the shadow of oil and gas development and may be affected by its pollution. But in comments posted to the rule’s docket last winter, the petroleum industry questioned whether EPA has the authority under the Clean Air Act — the law it uses the regulate emissions linked to climate change — to lean on third-party monitoring when implementing a rule. And community-based groups say EPA should furnish the technology they need to conduct air quality monitoring — or at least subsidize it. That’s especially important, they say, if the goal is to catch and fix leaks in poor neighborhoods as well as rich ones and to guarantee access to high-quality data. “Our stance as an organization is that if the EPA is looking to expand monitoring in places like Washington County in southwest Pennsylvania, here in places where there are lots of distributed sources of air emissions, it would be best if the EPA themselves were the ones that did that,” Nathan Deron, an environmental data scientist at the Environmental Health Project, which helps communities located near shale gas development in Pennsylvania conduct monitoring and interpret the results, told E&E.
STATE UPDATES
Politico: Court won't reconsider Baltimore climate suit ruling, teeing up SCOTUS appeal
Alex Guillén, 5/17/22
“The U.S. Court of Appeals for the 4th Circuit on Tuesday rejected a request from oil companies for the full court to reconsider an April ruling that sent Baltimore’s climate tort case back to Maryland courts,” Politico reports. “The order tees the case up for an appeal to the Supreme Court, the third time the corporate defendants will have taken this lawsuit before the high court. Background: A three-judge panel in April ruled "resoundingly" in Baltimore's favor, rejecting efforts from the energy company defendants to move the lawsuit to federal courts. Baltimore named a litany of companies in its suit, including BP, Chevron, Exxon Mobil, ConocoPhillips, Hess and Shell. Details: The companies sought an en banc rehearing before the full 4th Circuit, arguing that the suit is related to interstate greenhouse gas emissions and thus necessarily implicates federal laws. They were backed up by a coalition of Republican-controlled states that argued that the ruling "threatens to give Maryland courts the power to set climate-change policy for the entire country."
Wisconsin State Journal: Judge upholds state approval of Superior gas plant; $700M project faces additional hurdles
Chris Hubbuch, 5/18/22
“Efforts to halt construction of a natural gas generator in Superior suffered a setback Tuesday, though the $700 million project faces additional legal hurdles,” the Wisconsin State Journal reports. “Dane County Circuit Judge Jacob Frost said utility regulators followed the law when they approved the Nemadji Trail Energy Center. Frost rejected arguments made by the Sierra Club and Clean Wisconsin that the Public Service Commission failed to consider the full environmental impact of the plant, which would be jointly owned by Dairyland Power Cooperative and two Minnesota utilities. In his ruling, Frost wrote that the PSC simply needs evidence on which to base its decision, not a specific burden of proof, and he declined to second-guess the commission’s evaluation… “Environmental groups say the 625-megawatt plant is not needed and will result in the release of heat-trapping gasses at a time when scientists say emissions must be rapidly eliminated. “Building a new gas plant would be an environmental and economic disaster that would leave communities saddled with climate-disrupting emissions and a bad investment, both of which we’ll be paying for for decades,” Elizabeth Ward, director of the Sierra Club’s Wisconsin chapter, told the Journal. The groups have also challenged the construction permit over perceived bias by former PSC commissioner Mike Huebsch, one of two commissioners who voted to approve the plant shortly before leaving the PSC in early 2020. Huebsch later applied to lead Dairyland, though he did not get the job.”
EXTRACTION
Guardian: Shut down fossil fuel production sites early to avoid climate chaos, says study
Damian Carrington, 5/17/22
“Nearly half of existing fossil fuel production sites need to be shut down early if global heating is to be limited to 1.5C, the internationally agreed goal for avoiding climate catastrophe, according to a new scientific study,” the Guardian repors. “The assessment goes beyond the call by the International Energy Agency in 2021 to stop all new fossil fuel development to avoid the worst impacts of global heating, a statement seen as radical at the time. The new research reaches its starker conclusion by not assuming that new technologies will be able to suck huge amounts of CO2 from the atmosphere to compensate for the burning of coal, oil and gas. Experts said relying on such technologies was a risky gamble… “Greg Muttitt, at the International Institute for Sustainable Development, was one of the leaders of the new research and told the Guardian: “Halting new extraction projects is a necessary step, but still not enough to stay within our rapidly dwindling carbon budget. Some existing fossil fuel licences and production will need to be revoked and phased out early. Governments need to start tackling head-on how to do this in a fair and equitable way, which will require overcoming opposition from fossil fuel interests.” Kelly Trout, at Oil Change International, the other lead author of the work, told the Guardian: “Our study reinforces that building new fossil fuel infrastructure is not a viable response to Russia’s war on Ukraine. The world has already tapped too much oil and gas.” The researchers said governments should accelerate the introduction of renewable energy and efficiency measures instead. The new study, published in the journal Environmental Research Letters, analysed a database of more than 25,000 oil and gas fields and developed a new dataset of coal mines. The researchers found that fields and mines that have already been developed would lead to 936bn tonnes of CO2 when fully exploited and burned. That is 25 years of global emissions at today’s rate – the world’s scientists agree emissions must fall by half by 2030. The researchers calculated that 40% of developed fossil fuels must stay in the ground to have a 50-50 chance of global temperature rise stopping at 1.5C. Half the emissions would come from coal, a third from oil and a fifth from gas. The researchers found that almost 90% of developed reserves are located in just 20 countries, led by China, Russia, Saudi Arabia and the US, followed by Iran, India, Indonesia, Australia and Canada.”
CLIMATE FINANCE
Yahoo Finance: Oil stocks to keep gushing dividends, payouts in 2023: Scotiabank
Jeff Lagerquist, 5/18/22
“Canada's oil patch will keep gushing dividends and payouts in 2023. That's according to analysts at Scotiabank Global Equity Research who say the high price of crude and disciplined spending have given companies a "significant margin of safety" to keep rewarding shareholders,” Yahoo Finance reports. “Such rewards were in focus as the biggest names in the sector reported financial results in recent weeks. Cenovus Energy (CVE.TO)(CVE) announced plans to triple its base dividend when it reported first-quarter earnings on April 27. Suncor Energy (SU.TO)(SU) said on May 9 that it will hike its dividend to the highest level in the company's history as of June 3. Energy peers, including Crescent Point Energy (CPG.TO)(CPG), Enerplus (ERF.TO)(ERF), Paramount Resources (POU.TO), and Tourmaline Oil (TOU.TO), also sweetened their shareholder perks as they announced first-quarter results. "Generally, the US$1 per barrel increase in breakeven WTI prices was driven by higher oil sands royalties, increased dividends, and cost inflation," Bouvier wrote, noting a US$65 per barrel "margin of safety" at current prices. "Industry's focus on capital discipline and operational efficiency is likely to support further increases in dividends and share buybacks," he wrote. "We expect balance sheet improvements will continue, but once targets are reached, we think special/variable dividends will be initiated (likely in 2023)."
E&E News: SEC to consider sustainable investing rules
Avery Ellfeldt, 5/18/22
“The Securities and Exchange Commission is set to vote next week on rules that would crack down on the Wild West that has become environmental, social and governance (ESG) investing,” E&E News reports. “The agency said today that it will meet next Wednesday to consider whether to propose rules that would push financial firms such as asset managers to lay bare more details about their sustainability-related activities and investment products. The SEC’s notice indicated that the agency will vote on rules that could do so in two key ways. The first would be by proposing amendments to address “investment company names that are likely to mislead investors about an investment company’s investments and risks.” The second would entail proposing amendments that would ask fund managers and investment companies to disclose, in a standardized manner, ESG-related information… “The notice comes amid intense partisan debate over the SEC’s other, more prominent, sustainability-related effort: landmark rules that would require public companies to disclose their greenhouse gas emissions and climate risks.”
OPINION
Calgary Herald: Varcoe: Keystone XL 'done and dusted,' but not buried — Kenney seeks new oil pipeline to U.S.
Chris Varcoe, 5/18/22
“How many times can Keystone XL be left for dead and then revived?,” Chris Varcoe writes for the Calgary Herald. “On the political front, there is apparently no statute of limitations for such attempts as the defunct oil project still casts a long shadow over discussions involving Canada’s energy relationship with the United States. Premier Jason Kenney appeared in front of the U.S. Senate energy committee Tuesday to promote greater co-operation between the countries… “While Kenney acknowledged Keystone XL is “done and dusted,” he wants to restart the conversation about developing a new pipeline between Alberta and the United States at a time of record gasoline prices and oil trading above US$112 a barrel. “...Let’s work together to see, can we bring back something like another major pipeline between Alberta and the United States?” “...During the hearing, plenty of flack was directed toward the White House from Republican senators over the project’s cancellation… “It’s done and dusted, KXL is behind us,” he added. “But I hope that the invasion of Ukraine and the imperative of energy security causes a fundamental rethink about these issues in Washington.” The foundation of the energy relationship between Canada and the U.S remains strong, Ben Cahill, senior fellow on energy security at the Centre for Strategic and International Studies, a Washington-based think-tank, told the Herald. Yet, there is still a fierce debate surrounding Keystone XL, which has turned into a powerful political symbol in the U.S. “Personally, I think the market moved on years ago, but some political leaders haven’t,” Cahill told the Herald. “Keystone XL is a zombie pipeline that won’t die. It keeps coming back.” Christine Tezak, managing director of research at ClearView Energy Partners, told the Herald with the Trans Mountain expansion under construction and the potential for future pipeline optimization projects, she’s skeptical another major oil conduit is needed. “Another greenfield line would be very tough to sell to investors in a carbon-constrained world.” However, that won’t stop Alberta’s premier from trying to revive it, or the debate on Keystone XL from continuing to churn. While the megaproject is dead, it’s far from buried in the province — or within the political bedrock south of the border.”
Forbes: Federal Financial Regulators Prepare To Throttle US Oil Producers
Dan Eberhart is CEO of Canary, LLC, 5/19/22
“The federal Securities and Exchange Commission’s proposal mandating public companies disclose climate-related risks is the latest in a series of moves by President Joe Biden and his progressive coalition to kneecap America’s oil and gas industry,” Dan Eberhart writes for Forbes. “The SEC proposed rule would require public companies to submit far-reaching data on the potential environmental impact of their activities and their financial exposure to climate-related risks. The proposed rule change under the Securities Act and the Securities Exchange Act follows a nearly two-year effort by the Biden administration to curtail domestic energy production. When combined with the growing influence of Environmental, Social and Governance (ESG) investment funds that typically shun oil and gas industry stocks, the proposed disclosure rules are fueling a historic supply crunch in U.S. energy markets… “At a time when the market is desperate for more supply, it doesn’t require a sophisticated observer to recognize that the SEC’s climate rule is guided by political motivations rather than economic logic. While most of the Biden administration’s climate agenda has stalled in Congress and the courts, the White House is counting on its chosen appointee at the SEC, Gary Gensler, to deliver a climate victory… “The President’s new approach marshals the federal government’s financial regulatory agencies to shove the economy toward a Green New Deal in the capital markets. The disclosure proposal requires public companies to report climate data in their annual financial filings with the SEC, including measurements of their GHG emissions, climate-related financial expenditures, company transition plans, and climate scenario analyses. While proponents argue the new rules will provide investors with important information about a company’s exposure to climate-related risks, the practical effect will be to add to the already chilly investment environment around U.S. energy producers… “The federal government’s attempts to influence capital markets will leave consumers – and our economy – out in the cold. The Biden administration must not allow the SEC to take control of America’s energy policy.”
Calgary Herald: Varcoe: 'We need to get after it' — Enbridge CEO sees future growth for Canadian energy
Chris Varcoe, 5/19/22
“The world has moved into an energy crisis, additional supplies are required and a window has opened to build new liquefied natural gas developments, says Enbridge CEO Al Monaco,” Chris Varcoe writes for the Calgary Herald. “In such turbulence, Canada can play an “outsized role” in the future of global energy, although regulatory challenges need to be removed so the country can provide low-carbon, secure and affordable energy to the world… “The federal government has also been discussing with European countries what role Canada, the world’s fifth-largest natural gas producer, can play to provide LNG in the future… “Canada missed the first LNG window,” Monaco told the audience. “We are behind, no doubt about that. But we can catch up, that’s the good news.” “...However, the ability to attract investment will be essential if major energy projects are to move ahead. That requires some degree of regulatory certainty… “But the prolonged length of time to get a project moving is daunting. Costs to get through the regulatory process can top hundreds of millions of dollars — and it can still be turned down, as Enbridge saw with its Northern Gateway pipeline proposal in 2016. “The problem right now is timing, of getting from initial concept to regulatory approval and then, finally, cabinet approval,” Monaco told the Herald. “That is an uncertain timeline. And we need to get our heads around the timing of this in order for capital to be invested.” Greenfield LNG projects typically take four to seven years to develop, including the permitting process, consulting with communities and constructing the development, LNG expert Geoffrey Cann, a principal at MadCann Alberta, told the Herald. “If Canada wants to compete, we have to get moving, and our country is chronically unable now to mobilize very large energy infrastructure projects. I do not believe we will see an LNG boom in Canada. I’m not optimistic.”
Los Angeles Times: Op-Ed: California can do better than carbon neutrality by 2045
Daniel Kammen is a professor of sustainability at UC Berkeley. He is a former coordinating author of the Intergovernmental Panel on Climate Change and is a senior advisor for energy and innovation at the U.S. Agency for International Development, 5/17/22
“Ten years ago, many Californians could not have imagined the climate nightmare we are living today — dark orange skies during wildfire season, heat waves in the dead of winter, mandatory water restrictions amid crippling drought,” Daniel Kammen writes for the Los Angeles Times. “Without urgent action, we may well look back on this moment as the calm before the storm. Over the course of the next decade, California’s biggest climate challenges — hotter summers, a shorter rainy season and more destructive wildfires — could double in intensity. It’s against this backdrop that the California Air Resources Board (CARB) last week released a draft of our state’s scoping plan, a blueprint for combating climate change that will guide California’s policy for years. Despite the stakes for Californians, and although my research indicates the state could actually become carbon negative by 2030, the draft proposal would delay reaching carbon neutral until 2045. The barriers to a target of 2030 are political, not technical. The draft plan calls for investment in new fossil fuel electricity resources, and it relies on unproven and costly carbon capture technologies that would lock in fossil fuel pollution. Adopting this approach would be lazy, nonsensical and racially unjust. During the current 45-day period for public review of the plan, California has the chance to choose a smarter path… “If we don’t begin to rapidly reduce fossil fuel pollution, the impacts on California’s healthcare system, our economy, our food supply and our communities will be orders of magnitude greater than what CARB has accounted for. Regulators can correct this by aligning with experts’ latest analysis, which calculates the true social cost of carbon at $50 per ton of pollution emitted. As a next step, regulators need to acknowledge it is far too late in the game to gamble our state’s future on unproven carbon capture technologies that may never materialize. CARB’s draft scoping plan projects that California will use 100 million metric tons (MMT) of direct air capture in 2045. Globally, only 0.01 MMT of annual direct air capture is happening today. It is unrealistic to assume we can scale up this technology so much overnight, and foolish to direct investment to unproven experiments when affordable natural carbon removal solutions like composting and tree-planting are readily available now.”