EXTRACTED: Daily News Clips 7/16/22
PIPELINE NEWS
Associated Press: Officials suggest pipeline company hid problems after spill
KETV: Farmers rally against propsed pipelines through Iowa, Nebraska
Facebook: Iowa CCI: Iowa Utilities Board Hearing Public Comments on Proposed Carbon Pipelines (VIDEO)
Iowa Agribusiness: Iowans raise concerns over CO2 pipelines
KPVI: Proposed carbon pipeline in Bremer County to be reviewed at Aug. 23 meeting in Waverly
Iowa Capital Dispatch: Public meetings set for third carbon pipeline
British Columbia Government News: Agreement struck to improve protection of waterways along pipeline route
KAXE: Jury Trial of Artist and Cultural Organizer, Shanai Matteson Begins Wednesday in Aitkin County
KFYR: Public Service Commission approves Continental’s enhanced oil recovery pipeline
The Bradford Era: Details trickling in about pipeline explosion
WASHINGTON UPDATES
E&E News: Fury from Dems, greens after Manchin blocks climate bill
Washington Post: Biden weighs breaking climate pledges to win Manchin’s support on bill
Utility Dive: Carbon capture projects, regional CO2 pipeline design to get $2.6B in DOE funding proposal
E&E News: Congress faces climate roadblock after Supreme Court ruling
World Oil: API releases video urging Biden to tour American energy sites
STATE UPDATES
Carlsbad Current-Argus: Oil and gas operations blamed for earthquakes in Permian Basin. New Mexico takes action
E&E News: Washington set to be 2nd East Coast city with gas ban
EXTRACTION
Science: In ominous sign for global warming, feedback loop may be accelerating methane emissions
Bloomberg: Big Oil Is Poised to Report Blockbuster Refining Earnings
CLIMATE FINANCE
Wall Street Journal: After Defeating Exxon, Engine No. 1 Works With Oil Giants on Emissions
OPINION
The Alpena News: It’s time to shut down Line 5
Edmonton Journal: Opinion: Invest in oilsands cleanup while energy is booming
The Hill: Weakening climate policies will degrade public land and waters, not lower gas prices
PIPELINE NEWS
Associated Press: Officials suggest pipeline company hid problems after spill
MATTHEW BROWN, 7/14/22
“U.S. prosecutors suspect a Wyoming company of potentially concealing problems with a pipeline that broke in 2015 and spilled more than 50,000 gallons (240,000 liters) of crude into Montana’s Yellowstone River, fouling a small city’s drinking water supply, court filings show,” the Associated Press reports. “The government is suing Bridger Pipeline for violations of environmental laws in the 2015 spill, which came after the line buried beneath the Yellowstone became exposed and broke when ice scoured the river bottom near Glendive, Montana. Prosecutors are pursuing similar claims against a related company over a 2016 spill in North Dakota that released more than 600,000 gallons (2.7 million liters) of crude. The accidents came a few years after an Exxon-Mobil oil pipeline broke beneath the Yellowstone during flooding. The spills helped put a national focus on the nation’s aging pipeline network, which has continued to suffer high profile accidents including recent spills in Louisiana and California. A survey of Bridger’s pipeline on the company’s behalf in 2011 included a note that the pipe was buried only 1.5 feet (0.5 meters) beneath the ever-shifting river bottom. That would have put it at heightened risk of breaking. But after the spill, prosecutors alleged, company representatives referenced a second survey when they told federal regulators that the pipeline had been buried at least 7.9 feet (2.4 meters), giving it “adequate cover” to protect against spills. “This raises questions – which Bridger has yet to answer – about whether Bridger concealed material facts about the condition of the crossing before the Yellowstone spill,” assistant U.S. Attorney Mark Elmer wrote in court documents. Attorneys for Bridger rejected the allegations about conflicting surveys as “conspiracy theories.” “...Prosecutors allege the spills violated the Clean Water Act and are subject to penalties of up to $6.6 million in the Montana case and up to $89.5 million in the North Dakota case.”
KETV: Farmers rally against propsed pipelines through Iowa, Nebraska
Josh Kristianto, 7/13/22
“Farmers and landowners in Iowa are coming out in full force against carbon pipeline projects set to cut through the state,” KETV reports. “These projects could also go through Nebraska if approved. A group of protesters remained united at the Iowa Utilities Board meeting on Tuesday. "If we lock arms and say 'Not on our farms or our neighbors,' you will support the overwhelming majority of Iowans and vote against this pipeline. Thank you," said James Norris, a Montgomery County resident… "It's not safe. nobody can guarantee that this won't explode," Sherri Webb, an Iowa farmer, told KETV. Webb farms in Shelby County in Iowa. Her 40 acres are along one of the proposed carbon capture routes. She worries she will lose her land to eminent domain unless she gives it up by choice. She also fears the pipelines will put the community's health and safety at risk. "We're out in the middle of nowhere. Council Bluffs is a good 45 mins away. So is Omaha. If we need a hazmat team to show up, we're going to have to wait a while," Webb told KETV. Parts of the pipeline could cross state lines. That is why Nebraska Democratic Party Chair Jane Kleeb also attended the meeting and joined the opposition. She supports these residents, who call it a battle for their livelihood. "We have worked very hard on that land to make it what it is today. And then in a matter of a few months, they can take my land," Kathy Stockdale, a Hardin County resident, told KETV. "If this was the savior for ethanol, the farmers would be lined up behind it. They're not," Norris told KETV.
Facebook: Iowa CCI: Iowa Utilities Board Hearing Public Comments on Proposed Carbon Pipelines (VIDEO)
7/13/22
“Over 50 Iowans attended the Iowa Utility Board mtg this morning to demand the IUB deny these pipeline projects. This livestream captures just the last four speakers.”
Iowa Agribusiness: Iowans raise concerns over CO2 pipelines
Dustin Hoffmann, 7/14/22
“We have been talking for over a year about the proposed carbon capture and sequestration pipelines proposed to be built around Iowa. We have heard about the goals these projects have for the environment, and how they hope to be able to turn CO2 into something useful in the future,” Iowa Agribusiness reports. “These are goals that many agree are noble as we look for ways to deal with CO2 levels. However, there are Iowans out there who are opposed to these pipelines and say that the projects will do more environmental harm than good. A group of these people met Tuesday at the Iowa Utilities Board meeting in Des Moines and raised their concerns over these projects. Jessica Mazour is with the Iowa Chapter of the Sierra Club, and she tells us why they felt it necessary to speak out. She talks about the dangers they see in this kind of system. Richard McKean is an Emmitt County farmer, and he talks about the damage they could see to the tiling systems in northern parts of the state. Drew Alexander of Fremont County says his family had eminent domain issues with the Dakota Access Pipeline that left their land scarred years later, and they are afraid of another land seizure this go round.”
KPVI: Proposed carbon pipeline in Bremer County to be reviewed at Aug. 23 meeting in Waverly
ANELIA K. DIMITROVA, 7/13/22
“An informational meeting will be held in Bremer County to review plans by a company to build a pipeline to capture carbon from the ethanol plants,” KPVI reports. “...In Bremer County, the board discussed the CO2 pipeline on June 20, according to minutes. Later, county officials viewed a presentation from Navigator. Supervisor Ken Kammeyer, who attended that second meeting, told Waverly Newspapers that it was an overview of the proposed project, a map of which is included in this article. Kammeyer said he had a question about safety. “They assured us that safety is the first thing on their mind,” he said… “He said that at the meeting, the public will hear from two presenters–a representative of the IUB who will summarize the legal rights of the affected homeowners; and a Navigator representative who will explain the project… “Kammeyer, the county supervisor, said he plans to attend the informational meeting in Waverly. “It’s just something to help Mother Nature,” he said. “It’s a project that has to take place. Is this a project everyone’s going to like? I doubt it, but we will find out more at the meeting.”
Iowa Capital Dispatch: Public meetings set for third carbon pipeline
JARED STRONG, 7/14/22
“The Iowa Utilities Board on Thursday set public informational meetings in late August for a proposed liquid carbon pipeline in eastern Iowa with a route that totals about 90 miles,” Iowa Capital Dispatch reports. “Wolf Carbon Solutions wants to lay the pipe to transport captured carbon dioxide from two ethanol plants in Cedar Rapids and Clinton to Illinois, where it would be pumped deep into the ground. The project has the potential to affect landowners in five counties: Cedar, Clinton, Johnson, Linn and Scott. Such meetings are held in each county and typically include the board’s overview of the hazardous liquid pipeline permit process — including an explanation of the potential use of eminent domain to obtain easements for the pipeline — and the company’s explanation of the project with a more-detailed route through the county. Attendees can also ask questions… “The board also set a virtual online meeting for Sept. 19 at 6 p.m.”
British Columbia Government News: Agreement struck to improve protection of waterways along pipeline route
7/15/22
“The Environmental Assessment Office (EAO) and Coastal GasLink Pipeline Ltd. (CGL) have entered into a compliance agreement that requires CGL to follow more proactive measures to control erosion and sedimentation for all new construction along the CGL pipeline route. The EAO and CGL have jointly recognized the need for this agreement as a positive additional step to address ongoing non-compliance with erosion and sediment-control requirements. The measures outlined in the agreement are intended to protect sensitive wetlands and watercourses from sedimentation caused by erosion, which can negatively impact fish, fish habitat, wildlife and other important values. Under the agreement, CGL will be required to enhance staff training and provide stronger and more qualified leadership on site to oversee construction activities. They must also develop comprehensive, detailed erosion and sediment management plans for all new construction, prioritizing erosion prevention over sediment control. The plans must be reviewed by an independent erosion and sediment-control expert and approved by the EAO before any new ground can be broken. On-site inspections by an independent expert, as well as ongoing maintenance to prevent erosion and control sediment, will also continue in all areas of the project. Failure to comply with the agreement can result in escalating enforcement action, up to and including stop-work orders by the minister of Environment and Climate Change Strategy… “The agreement applies to approximately 100 kilometres of the 670-kilometre pipeline where ground has yet to be broken. Existing requirements under the environmental assessment certificate for erosion and sediment control continue to apply to all activity along the pipeline route. Inspections of sites under construction conducted in spring 2022 identified a number of issues of non-compliance with erosion and sediment-control requirements that still must be addressed by CGL. The EAO is considering further financial penalties based on these previously identified issues.”
KAXE: Jury Trial of Artist and Cultural Organizer, Shanai Matteson Begins Wednesday in Aitkin County
Heidi Holtan, John Bauer, Maxwell Philbrook, 7/11/22
“This Wednesday, artist and cultural organizer, Shanai Matteson of Palisade is going to trial in Aitkin County. Matteson has been charged with gross misdemeanor for allegedly conspiring, aiding, and abetting criminal trespass on critical public infrastructure pipeline during the movement to Stop Enbridge Energy’s Line 3 pipeline. She has pled not guilty to these charges,” KAXE reports. “Matteson spoke with Heidi Holtan and John Bauer on the KAXE/KBXE Morning Show to explain the charges, describe her experience, and share what's next for the other 800 people who are facing charges related to the opposition to the Line 3 project. According to Matteson, the charges stemmed from a livestream video she posted in solidarity with protesters. "My charge is resulting of a live stream video where I spoke here at the Water Protector Welcome Center," she told KAXE. "And I spoke about the importance of standing together in solidarity with our waters and with Anishinaabe people who are struggling for their treaty rights to be recognized." “...For Matteson, the trial is important because she claims she was unfairly targeted by Aitkin County law enforcement through surveillance that was paid for by Enbridge. But the trial has greater significance to Matteson. "I'm just one of 800 people who received charges in the past couple of years for other movement-related actions." she told KAXE. "But my concern is really the precedent that this kind of thing sets. "We're at a time when our climate is in crisis and indigenous rights, womens' rights, our right to peaceful protest are being eroded. And we use social media to speak about the things that we care about, and in my case, social media was used by law enforcement to surveil me and then bring criminal charges for simply making a speech."
KFYR: Public Service Commission approves Continental’s enhanced oil recovery pipeline
Michael Anthony, 7/13/22
“The state’s public service commission has given Continental Resources the green light to build a pipeline for an enhanced oil recovery project,” KFYR reports. “The company was awarded a permit to build a 3-mile pipeline that would take natural gas from the WBI pipeline to their well pad in northwestern North Dakota. Officials said the relatively new process of injecting natural gas into the ground can extend a well’s production life, which could keep producers drilling for many years to come. “(Continental’s producers) estimate that the increase in oil production could be anywhere from 25 to 60 percent, and so, after this project they’ll have learned a lot and be able to determine the effectiveness,” Julie Fedorchak, Public Service Commission Chairwoman, told KFYR.
The Bradford Era: Details trickling in about pipeline explosion
MANDY COLOSIMO, 7/14/22
“Investigations into the cause of the gas line explosion in Clermont Tuesday have begun. Multiple companies and agencies are digging into what happened and why, though few details have been released,” The Bradford Era reports. “According to the Wilcox Volunteer Fire Department, a call came in at 5:23 p.m. Tuesday with a report of a suspected brush fire with flames “shooting over the trees with large columns of smoke” in the area of Instater Boat Launch. Dispatch reported the caller to say there had been a “loud roar” as well. However, fire crews could not find anything in the vicinity of the boat launch and the chief canceled additional units who were enroute. An hour later, at 6:35 p.m. the Clermont Volunteer Fire Department requested assistance from several departments for a large wildfire and, what had been reported as a gas line explosion. As crews began arriving at the Wilcox Clermont Road location, a command post was set up approximately two miles down the road. The crews walked the line belonging to Tennessee Gas Pipeline (TGP) until they were able to find where the 24-inch line had ruptured. According to reports, this rupture caused the fire that burned approximately five acres of surrounding land. TGP lowered the pressure on the pipeline which helped the crews who were extinguishing flames… “The most recent update from TGP stated, “As of (Tuesday) evening, Tennessee Gas Pipeline (TGP) confirmed that there was a natural gas release and fire on a pipeline segment of its 300 system in a rural area of McKean County, Pennsylvania. The company shut down the impacted pipeline segment and worked with local responders to isolate the area. The fire was extinguished later that evening, and there were no injuries from the event. The incident remains under investigation, and the company is working with regulatory agencies as needed.”
WASHINGTON UPDATES
E&E News: Fury from Dems, greens after Manchin blocks climate bill
Nick Sobczyk, Jeremy Dillon, 7/15/22
“Environmentalists and progressives raged last night after West Virginia Democratic Sen. Joe Manchin killed the clean energy provisions of Democrats’ reconciliation bill, snuffing out nearly a year of negotiations and the first major attempt to legislate on climate change in over a decade,” E&E News reports. “Manchin told Senate Majority Leader Chuck Schumer (D-N.Y.) yesterday he “unequivocally” wouldn’t support a reconciliation measure that includes climate and clean energy provisions, according to a Democrat briefed on the conversation. The move almost certainly quashes the prospects for major climate legislation this Congress. With Republicans favored to take back at least one chamber in this year’s midterms, it could mean climate advocates will have to wait years to advance the kind of large-scale, emissions-slashing policies that were being negotiated as part of the reconciliation package. “I’m not going to sugar coat my disappointment here, especially since nearly all issues in the climate and energy space had been resolved,” Senate Finance Chair Ron Wyden (D-Ore.) said in a statement. “This is our last chance to prevent the most catastrophic — and costly — effects of climate change.” It’s a massive setback for Democrats politically and a blow to the nation’s climate goals. President Joe Biden had pledged to decarbonize the power sector by 2035 and halve emissions by 2030… “Political headlines are of no value to the millions of Americans struggling to afford groceries and gas as inflation soars to 9.1 percent,” Manchin spokesperson Sam Runyon said in a statement last night. “Senator Manchin believes it’s time for leaders to put political agendas aside, reevaluate and adjust to the economic realities the country faces to avoid taking steps that add fuel to the inflation fire,” said Runyon… “There truly aren’t words for how appalled, outraged, and disappointed we are,” League of Conservation Voters Senior Vice President of Government Affairs Tiernan Sittenfeld told E&E. “Senator Manchin had every opportunity to stand up for climate, jobs and justice, and save families money when they need it most, but instead he is choosing to stand with polluters. We urge him to reconsider — our children’s future depends on it.” The rage from Democrats and the environmental community appears to stem in part from the fact that Schumer had already granted concessions to Manchin.”
Washington Post: Biden weighs breaking climate pledges to win Manchin’s support on bill
Jeff Stein and Anna Phillips, 7/13/22
“In the past week and a half, the White House has taken steps that would have been considered unimaginable when President Biden first took office, suggesting that it might greenlight drilling plans in Alaska and the Gulf of Mexico that would produce hundreds of millions more barrels of oil,” the Washington Post reports. “Despite violating the president’s climate pledges, officials have opened the door to these proposals as they wait to see if their approval could help finally secure Senate Energy and Natural Resources Committee Chairman Joe Manchin III’s (D-W.Va.) vote for a historic climate package stuck in Congress. Complicating their calculus is that White House aides do not even know if approving them — or Manchin’s other preferred energy projects, such as a pipeline in West Virginia — would bring the elusive senator on board. The difficult balancing act, described by four administration officials who spoke on the condition of anonymity to avoid jeopardizing a potential deal, is part of the White House’s last-ditch effort to salvage the chances of meeting Biden’s carbon emissions reduction targets with just months until the 2022 midterm elections. The fossil fuel projects may also prove crucial to Democrats’ broader economic package focused on energy, prescription drugs and taxes, since Manchin has so far balked at only approving the new clean energy tax credits that form the core of the party’s climate legislation. The uncertain fate of the climate bill — and Manchin’s vote — has driven the White House to postpone decisions on energy projects with significant environmental impacts, including the long-delayed Mountain Valley Pipeline and future drilling plans in the Gulf of Mexico and on Alaska’s North Slope. Collectively, outside groups estimate these projects would generate anywhere between 680 million metric tons of carbon dioxide to up to six times that amount. Climate advocates argue that additional carbon pollution would undercut Biden’s pledge to reduce U.S. emissions by at least 50 percent below 2005 levels by 2030… “Climate advocacy groups have called on Biden to stay true to his pledge to rein in the production of fossil fuels. “We believe expanding leasing, onshore or offshore, would fly in the face of meeting the Biden administration’s climate commitments,” Alex Taurel, conservation program director for the League of Conservation Voters, told the Post. But after watching Manchin abruptly pull his support from Democrats’ social safety net, climate and tax bill last year, some activists told the Post they have reconciled themselves to limiting the new oil and gas infrastructure projects the senator wants rather than blocking them altogether. If Manchin has his price, advocates tell the Post, it may be worth paying to reach a compromise on the bill’s major climate change provisions.”
Utility Dive: Carbon capture projects, regional CO2 pipeline design to get $2.6B in DOE funding proposal
Ethan Howland, 7/14/22
“The Department of Energy plans to offer $2.54 billion to help finance six carbon capture and storage, or CCS, demonstration projects at coal- and gas-fired power plants as well as at industrial facilities, according to a notice of intent issued Wednesday,” Utility Dive reports. “DOE will also provide $100 million for designing regional carbon dioxide pipeline systems, the department said in a separate notice. “To meet President Biden’s climate goals, we have to rapidly decarbonize our power generation and heavy industries – such as steel production – that are essential to the clean energy transition,” DOE Secretary Jennifer Granholm said in a statement. So far, CCS hasn’t taken off in the power sector. NRG Energy, for example, mothballed its Petra Nova carbon capture project at a Texas power plant in 2020 after experiencing operating problems and financial losses. It was the only carbon capture facility at a U.S. power plant. DOE aims to spur carbon capture and storage development using funding authorized by the Bipartisan Infrastructure Law. The department intends to begin taking applications for funding in August or September. The department said it expects to accept 12 applications for the initial design of CCS projects, which would receive a total of $160 million in DOE funding. It then plans to offer $2.1 billion for the detailed design and construction of six CCS projects, two at coal-fired power plants, two at gas-fired plants and two at industrial facilities. The funding requires applicants to pay for at least half of their project’s costs. Proposed projects must capture at least 95% of the carbon emissions from the facilities… “DOE said it will require funding applicants to show how their proposals will benefit communities and meet diversity, equity, inclusion, accessibility and environmental justice requirements.” “...The funding aims to support open access or common carrier pipeline projects that connect multiple potential regional CO2 hubs for sources and storage options, according to DOE. It can also be used for pipeline projects that connect local carbon sources with storage and conversion options to form an integrated regional CO2 storage hub, the department said.”
E&E News: Congress faces climate roadblock after Supreme Court ruling
Lesley Clark, Niina H. Farah, 7/15/22
“The Supreme Court’s landmark climate decision is expected to reverberate far beyond the walls of EPA — and possibly all the way up to Capitol Hill,” E&E News reports. “A number of legal observers tell E&E the justices’ 6-3 ruling last month in West Virginia v. EPA — which provides a first look at how the court’s new conservative supermajority will handle climate cases — clips agency authority and, perhaps more significantly, constrains how lawmakers can address planet-warming emissions. “The most dangerous aspect of the court’s decision is the court’s seizure of power from Congress, not from the agency,” Georgetown University law professor Lisa Heinzerling said at a recent Georgetown Climate Center event. “Under the opinion, Congress may no longer enlist an agency’s help in addressing major issues — as it has done throughout U.S. history — unless it speaks clearly enough for a hostile Supreme Court to hear it.” Heinzerling, who worked at EPA under former President Barack Obama, and other environmental attorneys said the court’s opinion in West Virginia creates a supremely high barrier for Congress, which has never passed substantial climate legislation. Of particular concern is the court’s conclusion that EPA violated the “major questions” doctrine when it finalized a sweeping regulation in 2015 to curb greenhouse gas emissions from power plants… “In writing the regulation, the Obama-era EPA relied on a rarely used section of the 1970 Clean Air Act, and environmental attorneys said the Supreme Court’s rejection of that approach poses a dilemma for federal agencies looking to address emerging problems. “The court repeatedly says that Congress has to be more clear and more specific, but the problem there is that agencies often need flexibility, so you don’t want to have very particularized language,” Georgetown law professor William Buzbee said at the climate center event. “To pass laws, compromise is often needed, and sometimes broader language is a way for Congress to pass laws. So the decision hamstrings agencies and actually makes it harder for Congress.”
World Oil: API releases video urging Biden to tour American energy sites
7/14/22
“As President Biden prepares to meet with Saudi officials on Friday, the American Petroleum Institute (API) released a new video once again inviting the president to visit American energy sites and support the American producers who are poised to meet the growing demand for affordable, reliable energy and lead in this global crisis instead of turning to foreign governments for increased supply,” World Oi reports. “President Biden, on behalf of the men and women fueling America’s economic recovery, I invite you to visit America’s vast energy fields and infrastructure,” API President and CEO Mike Sommers said in the video. “Instead of meeting with foreign governments to ask them to increase energy production, look to reliable U.S. energy sources here at home.” “With a tight global market, Washington can no longer ignore the immense potential of American energy. President Biden, join me and the men and women of America’s energy industry – from the fields of New Mexico and plains of North Dakota, to the mountains of Pennsylvania and bayous of Louisiana. Together we can tackle today's energy challenge with energy solutions right here under our feet.” This renewed invitation comes after API joined with 27 energy associations to urge President Biden and his Cabinet to visit America’s major energy facilities - from production to distribution to refining to innovation hubs – last month ahead of the president’s visit to Saudi Arabia. In a letter to President Biden and key administration officials, the organizations - who represent more than 11 million American skilled workers keeping the lights on and fuels flowing - encouraged the administration to recognize domestic energy resources as a strategic asset for U.S. national and economic security and highlighted America’s vast natural gas and oil reserves that can help meet growing demand for reliable energy.”
STATE UPDATES
Carlsbad Current-Argus: Oil and gas operations blamed for earthquakes in Permian Basin. New Mexico takes action
Adrian Hedden, 7/13/22
“Oil and gas operations were blamed for causing earthquakes in the Permian Basin throughout southeast New Mexico and West Texas via new research from the University of Texas at Austin, which warned increased production could spell disaster for the region's geologic stability,” the Carlsbad Current-Argus reports. “The study, published by the university’s Jackson School of Geosciences, cited both wastewater injection wells and hydraulic fracturing, known as fracking, as contributors to recent increased seismicity in both states. Production across the basin grew in as fracking was increasingly used to target deeper and harder-to-reach shale deposits of crude oil and natural gas. In the years since, the region became the most productive for fossil fuel in the U.S., boasting the most oil and gas rigs among the nation’s major producing-basins with 350 rigs as of July 8, per the latest data from Baker Hughes. The next most active region was the Haynesville Shale in the southeast U.S. with just 49 rigs – about 14 percent of the Permian’s rig count. But all those operations could lead to an increase in earthquakes and geological instability, the UT-Austin report said, with seismicity gradually rising since 2009, primarily in the western Delaware sub-basin of the Permian which straddles the New Mexico-Texas border. Researchers studied regional seismicity and oil and gas operations between 2017 and 2020, considered boom years in the area, finding 68 percent of earthquakes at a magnitude (M) of 1.5 or greater resulted from fracking or disposal injection.” “...Researcher Alexandros Savvaidis, a co-author of the study told the Argus the work proves that oil and gas is linked to seismicity occurring near extraction activities and could help the industry better identify the risks stemming from their operations. “This paper shows that we now know a lot about how oil and gas activities and seismic activity are connected,” Savvaidis told the Argus. “The modeling techniques could help oil and gas producers and regulators identify potential risks and adjust production and disposal activity to decrease them.”
E&E News: Washington set to be 2nd East Coast city with gas ban
David Iaconangelo, 7/15/22
“Washington, D.C., is expected to become the second East Coast city to ban fossil fuel boilers and water heaters in most new buildings, following the unanimous approval of two bills by the City Council this week that are supported by the mayor,” E&E News reports. “When the bills are enacted, the nation’s capital would join New York City in instituting a ban on most fossil fuel heat — an idea that has also spread to several dozen West Coast municipalities and, in a more limited way, across Washington state… “One of the Washington bills, known as the “Clean Energy DC Building Code Amendment Act,” would prohibit the use of fossil fuels for space and water heat in new commercial buildings — a category that includes residences four stories and up — starting in 2027. By that same year, those buildings would need to be considered “net-zero energy,” meaning they would have to produce or conserve more energy on-site from solar panels or other sources than they consume. The measure would exempt gas stoves, meaning restaurants and residents could continue to cook over open flames instead of electric induction. Buildings deemed “essential to protecting public health and safety” would also be able to use fossil fuel for backup power generation. But if a building owner were to carry out “substantial improvements,” or deep retrofits, the energy requirements would kick in… “Gas utilities and builders, however, have allied with conservative lawmakers to push counter-policies across a swath of the nation. Some 20 states now have “preemption” laws that prohibit cities from restricting access to fossil fuels in homes or businesses. This week, Pennsylvania came close to becoming the 21st such state, before its Democratic governor vetoed a preemption bill. In D.C., the two measures would rule out use of the gas industry’s favored substitutes — hydrogen and biogas — and instead favor electric heat pumps and water heaters.”
EXTRACTION
Science: In ominous sign for global warming, feedback loop may be accelerating methane emissions
PAUL VOOSEN, 7/13/22
“If carbon dioxide is an oven steadily roasting our planet, methane is a blast from the broiler: a more potent but shorter lived greenhouse gas that’s responsible for roughly one-third of the 1.2°C of warming since preindustrial times,” Science reports. “Atmospheric methane levels have risen nearly 7% since 2006, and the past 2 years saw the biggest jumps yet, even though the pandemic slowed oil and gas production, presumably reducing methane leaks. Now, researchers are homing in on the source of the mysterious surge. Two new preprints trace it to microbes in tropical wetlands. Ominously, climate change itself might be fueling the trend by driving increased rain over the regions. If so, the wetlands emissions could end up being a runaway process beyond human control, although the magnitude of the feedback loop is uncertain. “We will have handed over a bit more control of Earth’s climate to microorganisms,” Paul Palmer, an atmospheric chemist at the University of Edinburgh and co-author of one of the studies, posted late last month for review at Atmospheric Chemistry and Physics, told Science… “Studies are now implicating the Sudd in South Sudan, the continent’s largest swamp and a region researchers have been unable to study on the ground because of the long-term conflict in the region. Using Japan’s Greenhouse Gases Observing Satellite, which measures the amount of light absorbed by methane at infrared wavelengths, Palmer and his colleagues were able to show the Sudd had grown as a methane hot spot since 2019, adding some 13 million extra tons per year to the air—more than 2% of annual global emissions. A second study, posted in late June by Harvard University researchers and submitted to Environmental Research Letters, finds nearly the same story, especially the surge in East Africa. When combined with smaller increases from the Amazon and the northern forests, it largely explains the observed rise in the atmosphere. Climate change may be setting the pace of the emissions. In work published earlier this year in Nature Communications, Palmer and colleagues showed how East African methane emissions from 2010 to 2019, measured by satellite, synced up with a temperature pattern in the Indian Ocean that periodically warms the waters off the Horn of Africa, causing increased rainfall on land. Climate projections call for this positive phase of the Indian Ocean dipole, as it’s known, to grow in strength and duration with continued global warming. If it does, Palmer says, warming will beget more methane emissions from the Sudd, which in turn could fuel more warming and rains—a positive feedback loop.”
Bloomberg: Big Oil Is Poised to Report Blockbuster Refining Earnings
James Herron, 7/15/22
“More evidence has emerged that Big Oil’s second-quarter will be dominated by blockbuster refining profits,” Bloomberg reports. “Shell Plc already flagged last week a potential $1 billion gain from soaring margins at the unit that processes crude into fuels and chemicals. On Friday, TotalEnergies SE said its refining business had an “exceptional” performance in the period. The French giant said the variable cost margin for European refining -- which represents the average earnings per barrel at its plants across the region -- was a staggering $145.70 in the second quarter, more than three times higher than the prior period. A shortage of refining capacity, compounded by a reduction in exports of Russian oil products since the invasion of Ukraine, have pushed road fuel prices to record levels in many countries. The trend has been good for the oil majors after several tough years, but could backfire as rampant inflation forces central banks to raise interest rates and prompts some governments to consider windfall taxes.”
CLIMATE FINANCE
Wall Street Journal: After Defeating Exxon, Engine No. 1 Works With Oil Giants on Emissions
Collin Eaton, 7/14/22
“Three of the largest U.S. oil companies said they have joined a United Nations-backed group working to curb greenhouse-gas emissions,” the Wall Street Journal reports. “On Thursday, U.S. oil companies ConocoPhillips, Pioneer Natural Resources Co. and Devon Energy Corp. said they have joined the Oil & Gas Methane Partnership 2.0. It is an international initiative of mostly European companies and others that has created a framework for measuring and reporting emissions of methane, a potent greenhouse gas that seeps from oil-field operations and pipelines. Christopher James, founder of Engine No. 1, the investment firm that elected three directors to Exxon’s board last year after arguing the oil giant was a climate laggard, helped convince the companies to join the group, company executives and other people involved in the process told the Journal. Last August, Mr. James called ConocoPhillips Chief Executive Ryan Lance, Pioneer CEO Scott Sheffield and Devon CEO Rick Muncrief to discuss investors’ concerns around methane emissions, according to the executives. But instead of threatening a campaign similar to the one against Exxon, Mr. James took a friendlier approach, offering to collaborate and encouraging them to join the group, known as OGMP 2.0. The group—led by the U.N. Environment Programme, the European Commission and the Environmental Defense Fund—had counted only a few American oil-and-gas companies among its membership until now, including Occidental Petroleum Corp. and EQT Corp. Most members are based in Europe, including Shell PLC, BP PLC and TotalEnergies SE. Mr. James, who is also executive chairman of Engine No. 1, told the Journal he now wants to work with companies, rather than take an activist role. “It’s really important for us to move on from the moniker of activist,” Mr. James told the Journal. A passive exchange-traded fund managed by Engine No. 1 has relatively small investments in each of the three companies. Its active funds don’t.” Engine No. 1’s turn to diplomacy comes after the departure late last year of Charles Penner, one of the primary architects of the successful campaign against Exxon. The fund has pivoted its strategy, launching an actively managed exchange-traded fund this year that will invest in companies focused on cutting carbon emissions.”
OPINION
The Alpena News: It’s time to shut down Line 5
GREG AWTRY, 7/15/22
“The Canadian Enbridge Inc. pipeline that crosses Michigan’s Upper Peninsula and lays at the bottom of the Straits of Mackinac just west of the Mackinac Bridge is 69 years old and, now, Enbridge wants to build a tunnel under the Straits to replace this aging pipeline,” Greg Awtry writes for The Alpena News. “One thing people should know is that Line 5 is a Canadian pipeline shipping oil from Canada, crossing the state of Michigan on its way to Sarnia, Canada refineries. Gov. Gretchen Whitmer revoked Enbridge’s easement and ordered the line shut down, but Enbridge has defied her orders and it is now in the courts for some type of resolution. Studies have been done saying gas and diesel prices could increase about 10% percent if Line 5 were shut down, but, now, in court documents, a consultant for Enbridge admits that closing down the pipeline would affect gas prices by only one half of 1 cent, which is basically nothing. Replacing Line 5 with a tunnel built under the Straits might reduce the risk of a tragic oil spill in the Great Lakes, but it won’t eliminate the risk, so the basic question is, what — if any — risk is acceptable? I say the answer is “none”. The Great Lakes contain 20% of the entire world’s fresh water, and thousands of Michiganders rely on the Great Lakes for jobs, recreation, shipping, and fishing. Studies have also been done by the University of Michigan showing that one of the worst places in America to build an oil pipeline would be in the Straits. The currents are strong enough that a significant oil spill could not be cleaned up, let alone if that spill occurred in winter under several feet of ice… “No risk is acceptable considering Enbridge’s poor safety records. One only has to remember the largest inland oil spill in the history of the United States was Enbridge Line 6 in Marshall in 2010. It took over five years and $1 billion to try and get the Kalamazoo River cleaned up… “The Great Lakes can’t be moved. Pipelines can. The Great Lakes can’t be replaced. Pipelines can be rerouted. The Great Lakes are one of the most vital and precious natural wonders of America, and putting them at risk when that risk can be avoided is a horrible idea, and the time has come to shut Line 5 down and encourage Enbridge to seek alternative routes.”
Edmonton Journal: Opinion: Invest in oilsands cleanup while energy is booming
David Cooper is emeritus professor of accounting, University of Alberta. Thomas Schneider is associate professor of accounting, Toronto Metropolitan University, 7/14/22
“The Mine Financial Security Program (MFSP) is the key tool of the Alberta Energy Regulator (AER) ensuring that adequate funds are in place to perform the massive cleanup that will be required in the oilsands. Cleanup will involve tailings ponds, water and soil contamination, reforestation and much else,” David Cooper and Thomas Schneider write for the Edmonton Journal. “As accounting professors who have done extensive research on accounting rules and disclosures, government regulations, and environmental liabilities, we consider the new rules implemented by the AER as of June 30, 2022, to constitute a serious weakening of the requirements for cleanup for oilsands owners and operators, thus creating additional environmental risks for Albertans. This cleanup liability is no longer something that is in the distant future and is already estimated by the AER to be over $100 billion. And it is increasing all the time due to ongoing and planned developments and investments. For the operators, it is the largest single liability on most of their balance sheets… “The new rules, however, seriously weaken the requirements on cleanup for oilsands owners and operators. They can now provide financial surety, not in cash or cash equivalents as previously dictated, but in the form of a “surety bond” — simply a company’s promise that it will be “good for the money” when they actually do the cleanup. Currently, with sky-high oil prices, the oilsands are extremely profitable, and the owners and operators are indeed “good for the money.” However, we know this is a highly cyclical industry and current conditions will not last forever… “No Alberta government will make a multi-billion-dollar demand on an Alberta oil and gas company in a period of downturn. It is imperative that the Alberta government start putting real money aside for the future cleanup of oilsands development and not wait until existing projects approach their end of life, which will inevitably occur in the coming few decades… “We must today address and plan for these inevitable liabilities, not let oilsands operators spend their current surpluses on share buy-backs, executive bonuses and increased dividends to owners (most of whom are outside Alberta and even Canada).”
The Hill: Weakening climate policies will degrade public land and waters, not lower gas prices
Louis Geltman is a lawyer based in White Salmon, Washington and director of Outdoor Alliance’s policy program, Jason Keith is a founding managing director for Public Land Solutions, 7/14/22
“A common piece of counsel when responding to an emergency is to “never let a good crisis go to waste.” Right now, the oil and gas industry is certainly trying to parlay the war in Ukraine, inflation and high gas prices into support for more oil and gas development. Instead of using this crisis to justify more fossil fuel development, we should seize the moment and reform our leasing system to move the country toward renewables and energy independence as well as protecting our climate and public lands and waters,” Louis Geltman and Jason Keith write for The Hill. “The reality is that we’re never going to drill our way to lower gas prices and energy independence, and, meanwhile, there’s another crisis — climate change — that demands our immediate attention. The good news is that we can protect our public lands and waters while freeing our country from its dependence on fossil fuels. But this starts with reforming the federal oil and gas leasing system. High gas prices exact a toll on hard-working Americans, and lawmakers are right to seek solutions. But weakening America’s climate policies will not reduce the price at the pump… “The administration must align the Interior Department’s oil and gas leasing program with the climate commitments it made during Biden’s first weeks in office. In keeping with the administration’s commitment to a “whole of government” response to the climate crisis, the Interior Department should be setting the curve for vigorous action to protect our climate by pursuing a broad rulemaking that will give durability to long-overdue and much-needed reforms to the federal oil and gas leasing system. These reforms should move purposefully toward making public lands and waters carbon neutral as soon as possible, ensure accountability to those goals, and provide a just transition for fossil fuel dependent communities.”