EXTRACTED: Daily News Clips 2/2/23

PIPELINE NEWS

• Reuters: TC Energy hikes Coastal GasLink pipeline costs more than expected, shares plunge

• Texas Public Radio: One killed, two hospitalized in South Texas pipeline explosion

• KFYR: ND Legislature considering more anti-carbon pipeline bills

• Radio on the Go: Rowan City Council Holds Special Meeting

• Global News: Enbridge pitches natural gas pipeline across east Hamilton to aid green steel making initiative

• Reuters: Enbridge reports unplanned outage on T-south section of British Columbia natgas line

• Reuters: Pipeline operator Enterprise says bullish on Permian oil output

WASHINGTON UPDATES

• New York Times: Biden Clears the Way for Alaska Oil Project

• E&E News: Manchin, Westerman plot another push for permitting reform

• InsideEPA: OMB Begins Review Of NEPA Phase 2 Plan, Kicking Off Permit Reform Push

• World Oil: Western Energy Alliance, IPAA: BLM’s methane emissions regulation “oversteps authority”

• E&E News: Energy And Commerce Hearing Offers Glimpse Of Future Fights

STATE UPDATES

• Reuters: Suncor says leak contained at Commerce City, Colorado refinery

• Bloomberg: States Prep For Environmental Permit Flood

• Public News Service: Public Health Benefits of Limiting Oil, Gas Methane Pollution

EXTRACTION

• CNBC: Oil giant Shell posts highest-ever annual profit of $40 billion

• Reuters: Here’s how much these oil companies are giving back to shareholders

• CNBC: More than 13,000 Nigerian residents take Shell to court over oil spills

• Associated Press: Difficulty measuring methane slows plan to slash emissions

CLIMATE FINANCE

• Fortune: How Wall Street’s fossil-fuel money pipeline undermines the fight to save the planet

• Canadian Underwriter: Insurers have a role in Canadian natural gas exports

TODAY IN GREENWASHING

• Washington Post: Oil giant Shell accused of ‘greenwashing’ and misleading investors

• Reuters: Activist group accuses Shell of misleading investors on renewables

• King Weekly Sentinel: King, Enbridge team up to save lives

OPINION

• The Pantagraph: Guebert: The Great Carbon Boondoggle, Part 2

• Brandon Valley Journal: Letter to the Editor: Fisk – Federal government has cart before the horse

• The Hill: Biden can help reduce home energy prices and emissions by better managing LNG exports
  

PIPELINE NEWS

Reuters: TC Energy hikes Coastal GasLink pipeline costs more than expected, shares plunge
Arshreet Singh and Rod Nickel, 2/1/23

“North American pipeline operator TC Energy Corp (TRP.TO) on Wednesday raised its cost estimate more than expected for completing its troubled Coastal GasLink project, sending share prices sharply lower,” Reuters reports. “…The long-delayed pipeline, owned by private equity firm KKR & Co Inc (KKR.N), Alberta Investment Management Corp and TC, has been dogged by problems including protests over environmental concerns, inflation and mountainous terrain that has forced TC to move pipe with ski lifts. The company attributed the cost increase to a labor shortage, poor work by contractors and adverse weather. Coastal’s costs are now up 30% to to C$14.5 billion ($10.89 billion), from the project’s previous estimate of C$11.2 billion, which was already raised by 70% in July from the initial budget… “Costs could increase by another C$1.2 billion if construction extends well into 2024, TC added… “TC’s Toronto-listed shares (TRP.TO) fell 6.5% and have lost 18% since the company warned in November that Coastal’s costs were increasing… “TC is looking to sell C$5 billion worth of assets this year to raise funds to repay debt and pay for projects including Coastal… “An impairment will be recognized to TC Energy’s equity investment in Coastal in its fourth-quarter results scheduled for Feb. 14, the company said.”

Texas Public Radio: One killed, two hospitalized in South Texas pipeline explosion
Paul Flahive, 2/1/23

“A pipeline in Pearsall, Texas exploded as a maintenance crew worked on it Tuesday. The blast killed one and two others were hospitalized,” Texas Public Radio reports. “Fire crews were called just before noon Tuesday to respond to the emergency outside the city an hour southwest of San Antonio. The cause of the explosion has not been made public, but may have come from a leak, sources with knowledge of the incident told TPR. Federal and state regulators confirmed they were investigating… “Nexus Integrity Management, based in Corpus Christi, employed the men, according to OSHA. The company’s website says it maintains pipelines. The pipeline belongs to Targa, based in Houston.”

KFYR: ND Legislature considering more anti-carbon pipeline bills
Joel Crane, 2/1/23

“Last week, there was a slate of bills aimed at making it more difficult for a multi-state, billion-dollar carbon capture project to go forward. This week, that trend continues,” KFYR reports. “Senate Bill 2383 would take away the state tax exemption for carbon dioxide pipelines if the companies building the pipeline are also using federal 45Q tax credits. The 45Q tax credit is a piece of federal tax code that provides a tax credit for carbon dioxide storage. “The question I’ve had for many people is why are we funding these pipelines with federal taxes and state taxes? Is it a double dip? I don’t know that it is, but I hope to find that out today,” Senator Jeff Magrum, R-Hazelton told KFYR. The bill was opposed by leaders from the energy industry, including the Lignite Energy Council, the North Dakota Petroleum Council, and the North Dakota Ethanol Producers Association. They say this bill would eliminate investment opportunities for power sector carbon capture projects by effectively undoing two decades worth of legislation.”

Radio on the Go: Rowan City Council Holds Special Meeting
MITCH WILLIAMS, 1/31/23

“Last week, the Rowan City Council held a special meeting and reviewed a request from Summit Carbon Solutions for bulk water access,” Radio on the Go reports. “The council was not given an estimate of how much water would be needed but it was stated the city could put a daily limit on Summit Carbon Solutions. Use of the water would begin in the Summer of 2023.  It was stated that Rowan’s water system might not support the use by Summit. There were several comments from all council members, none of which were in favor of the project, as they do not want the city to be involved with the proposal. A motion was made to deny selling bulk water to Summit Carbon Solutions, no matter what they offer the city. The measure passed on a 4-0 vote.” 

Global News: Enbridge pitches natural gas pipeline across east Hamilton to aid green steel making initiative
Ken Mann, 2/1/23

“Enbridge Gas has outlined plans before city councillors for a new 14-kilometre pipeline to support ArcelorMittal Dofasco’s transition to green steel making,” Global News reports. “The 12-inch pipe would run north-south across Hamilton, primarily alongside Centennial Parkway. Enbridge says it’s proposal still requires public consultation, an environmental assessment and Ontario Energy Board approval. The pipeline is meant to be operational by the end of 2025, and is meant to meet the increased demand for natural gas at ArcelorMittal Dofasco’s Burlington Street plant, until greener alternatives such as hydrogen become viable at a larger scale… “While stressing that he sees the business case, Ancaster Coun. Craig Cassar told the News he has mixed feelings about the proposal. “This council has declared a climate emergency so any effort to reduce emissions should be lauded,” Cassar told the News, but he added that building any new natural gas infrastructure “could be seen as going in the wrong direction.”

Reuters: Enbridge reports unplanned outage on T-south section of British Columbia natgas line
2/2/23

“Enbridge Inc (ENB.TO) is working to restore full service on the southern (T-South) mainline system of its British Columbia (BC) natural gas pipeline following an unplanned outage,” Reuters reports. “A segment of a 36-inch pipeline near Chilliwack, British Columbia, was isolated for assessments as a precaution while another 30-inch line continued to operate, the company said in a statement posted on its website on Wednesday. “Those assessments have been completed and we are currently repressuring the 36-inch pipeline to return to full service,” it added… “The T-South mainline connects production from northeastern British Columbia to downstream markets within British Columbia and export markets in the U.S. Pacific Northwest.”

Reuters: Pipeline operator Enterprise says bullish on Permian oil output
Arathy Somasekhar, 2/1/23

“U.S. energy pipeline operator Enterprise Products Partners (EPD.N) was bullish on oil production from the top U.S. shale basin, the firm said on Wednesday, predicting that international demand for U.S. oil and gas will rise,” Reuters reports. “The comments come as top oil producers have warned of easing crude oil production from the Permian basin, spread across Texas and New Mexico, and as Enterprise’s oil pipeline volumes fell last quarter. Rising costs, dwindling reserves and pressures to hold down spending have slowed Permian output gains… “Enterprise, which is looking to build a crude oil export terminal, said the market still needs the project as pipelines to top oil export port Corpus Christi are nearly full.”

WASHINGTON UPDATES

New York Times: Biden Clears the Way for Alaska Oil Project
Lisa Friedman, 2/1/23

“The Biden administration on Wednesday took a crucial step toward approving a $8 billion ConocoPhillips oil drilling project on the National Petroleum Reserve in Alaska, drawing the anger of environmentalists who say the vast new fossil fuel development poses a dire threat to the climate,” the New York Times reports. “The Bureau of Land Management issued an environmental analysis that says the government prefers a scaled-back version of the project, which is known as Willow. The assessment calls for curtailing the project to three drill sites from five, as well as reducing the proposed length of both gravel and ice roads, pipelines and the length of airstrips to support the drilling. The analysis is the last regulatory hurdle before the federal government makes a final ruling on whether to approve the Willow project. If approved, it project would produce about 600 million barrels of oil over 30 years, with a peak of 180,000 barrels of crude oil a day. Separately, Bureau of Land Management and White House officials are considering additional measures to reduce carbon dioxide emissions and environmental harm, such as delaying decisions on permits for one of the drill sites and planting trees, two people familiar with the discussions told the Times. The final decision could come within the next month. But, in concluding that limited drilling could occur on the land in Alaska’s North Slope, the Biden administration has already sent a strong signal that it is likely to give the project a green light, both supporters and opponents said… “No other oil and gas project has greater potential to undermine the Biden administration’s climate goals,” Karlin Itchoak, Alaska regional director for The Wilderness Society, told the Times. “If this project were to move forward, it would result in the production and burning of at least 30 years of oil at a time when the world needs climate solutions and a transition to clean energy.”

E&E News: Manchin, Westerman plot another push for permitting reform
Emma Dumain, Kelsey Brugger, Jeremy Dillon, 2/2/23

“Capitol Hill’s permitting reform effort got new life Wednesday as two top Senate and House lawmakers held an initial summit on reviving the overhaul bid. This time, the House could take the lead,” E&E News reports. “Senate Energy and Natural Resources Chair Joe Manchin (D-W.Va.) and House Natural Resources Chair Bruce Westerman (R-Ark.) are discussing the path forward for the stalled permitting reform effort. “They’re going to work on something,” Manchin told E&E of the House. “I think it’s a high priority, which both sides know that we need it. Everyone has come to agreement that you got to have permitting. Let’s take the politics out of it, and do what’s doable.” “…Their current plan is to use, as a starting point, legislation introduced in previous sessions of Congress by Rep. Garret Graves (R-La.), known as the “Builder Act,” which would achieve the main goals of speeding up permits for energy projects by making changes to the National Environmental Policy Act — the bedrock law many Democrats consider sacrosanct. From there, Republicans could craft a bill that’s little more than a partisan wishlist and dare Democrats to oppose it. They could also choose to engage with more moderate Democrats who want to fashion themselves as bipartisan dealmakers on climate policy and remain committed to finding a compromise on permitting. Westerman, whose committee will have jurisdiction over permitting reform legislation alongside the committees on Energy & Commerce and Transportation & Infrastructure, told E&E he saw no point in trying to advance a permitting bill that wouldn’t have support from Democrats… “Westerman told E&E he believed that Democrats have “skin in the game” to want to get a deal on permitting, if for no other reason than to speed up the “green infrastructure projects they approved all that money for” as part of the Inflation Reduction Act.”

InsideEPA: OMB Begins Review Of NEPA Phase 2 Plan, Kicking Off Permit Reform Push 
1/31/23

“The White House Office of Management & Budget (OMB) has begun reviewing the Council on Environmental Quality’s (CEQ) eagerly awaited draft phase 2 plan overhauling Trump-era National Environmental Policy Act (NEPA) implementing rules, kicking the administration’s permit reform push into high gear as Congress remains deadlocked,” InsideEPA reports. “CEQ sent the draft plan to OMB on Jan. 30, according to OMB’s website. Given such reviews are generally expected to take 90 days, the OMB review puts the rule on track to be issued by the end of the first quarter of 2023, a slightly later schedule than the January target CEQ set in its recently released Unified Agenda, though the agenda does not have a target date for CEQ to finalize the rule. A federal court has also stayed litigation over the Trump rule until the beginning of March to give CEQ time to advance the proposal. In the phase 2 proposal, CEQ is expected to seek to find ways to speed approvals for clean energy infrastructure the Biden administration favors — and for which it received billions of dollars in funding under recently enacted legislation — while balancing that against calls from environmental justice and other groups to ensure that any rule preserves their participation rights and ensures rigorous environmental review.”

World Oil: Western Energy Alliance, IPAA: BLM’s methane emissions regulation “oversteps authority”
1/31/23

“Western Energy Alliance and the Independent Petroleum Association of America (IPAA) submitted comments to the Bureau of Land Management (BLM) regarding the proposed rule on Waste Prevention, Production Subject to Royalties, and Resource Conservation,” World Oil reports. “The associations urged the agency to implement targeted changes to portions of the proposed regulations on methane emissions that overstep the authority granted by Congress. IPAA and Western Energy Alliance also reminded officials of the successful legal challenges to a similar rule in 2016. “BLM can regulate waste of methane, but it does not have the authority to regulate air quality. The Clean Air Act gives that authority to EPA and the states, as affirmed by a federal court in striking down a similar rule from the Obama Administration. BLM makes some of the same mistakes in this rule as in the rule we successfully overturned,” said Kathleen Sgamma, president of Western Energy Alliance… “This rule, which infringes on jurisdiction held by the EPA, is being hastily run through the process and impeding our ability to ascertain the true impact to our membership,” said Jeff Eshelman, President and CEO of the Independent Petroleum Association of America.”

E&E News: Energy And Commerce Hearing Offers Glimpse Of Future Fights
Nico Portuondo, 2/1/23

“Republicans are still formulating what exactly their permitting reform package will look like, but they may already have an ally in the Democratic Party,” E&E News reports. “Rep. Scott Peters (D-Calif.), a moderate clean energy backer, told E&E he would support a permitting overhaul package that would reform the National Environmental Policy Act, normally hallowed ground with most Democrats. ‘We have NEPA to thank for a great deal of environmental preservation, but its implementation is inevitably slow,’ Peters told E&E. ‘We have to update our environmental laws to make it easier, not harder, to build.’ Without specific details, Republicans are still a long way from winning bipartisan support on permitting reform from Democrats, who are mostly reticent to touch long-standing environmental protection laws.”

STATE UPDATES

Reuters: Suncor says leak contained at Commerce City, Colorado refinery
2/1/23

“Suncor Energy on Tuesday said a small leak that was detected in refining process equipment has been contained at its 103,000 barrel-per-day Commerce City refinery in Colorado,” Reuters reports. “ “All workers have been accounted for, and there have been no reported injuries,” the company said in a notice. In late December, the entire refinery was shut down and put into safe mode to allow for the inspection of all units after equipment damage due to extreme weather.”

Bloomberg: States Prep For Environmental Permit Flood
Katrice Eborn, Kellie Lunney, 2/1/23

“A growing number of states are trying to take the pain out of environmental permitting, steeling themselves for the billions of dollars of new construction made possible by Congress’s infrastructure and climate bills,” Bloomberg reports. “The new efforts don’t get as much attention as Sen. Joe Manchin’s (D-W.Va.) unsuccessful bid last year to change the federal rules. But builders say permitting bottlenecks at the state level are just as vexing as federal rules, and just as capable of delaying infrastructure projects like roads, bridges, and renewable energy facilities. State agencies issue far more environmental permits than their federal counterparts…”

Public News Service: Public Health Benefits of Limiting Oil, Gas Methane Pollution
Eric Galatas, 1/31/23

“The public has until February 13th to weigh in on new rules proposed by the Environmental Protection Agency to reduce methane pollution at oil and gas facilities,” Public News Service reports. “Emma Galofre Garcia, a doctoral student at C.U. Boulder’s environmental studies program, told PNS the EPA has an opportunity to build on successful efforts led by states including Colorado to rein in methane emissions, a dangerous air pollutant. “It’s a precursor to ozone and smog, causing lung damage, heart damage, greater susceptibility to respiratory infections. It causes and worsens lung disease such as asthma and bronchitis,” Garcia told PNS… “Some communities face greater risks than others. Latinos are twice as likely to go to the emergency room for asthma, and Latino children are twice as likely to die from asthma as white children. Garcia told PNS Latinos historically have had no other option but to live in the shadows of refineries and other sources of air pollution, but the goal should be to make all neighborhoods safe for families.”

EXTRACTION

CNBC: Oil giant Shell posts highest-ever annual profit of $40 billion
Sam Meredith, 2/2/23

“British oil giant Shell on Thursday posted its highest-ever annual profit, bolstered by soaring fossil fuel prices and robust demand since Russia’s full-scale invasion of Ukraine last year,” CNBC reports. “Shell reported adjusted earnings of $39.9 billion for the full-year 2022. This comfortably surpasses the $28.4 billion in 2008 which Shell said was the firm’s previous annual record and is more than double the firm’s full-year 2021 profit of $19.29 billion… “Shell announced a $4 billion share buyback program, which is expected to be completed by its first-quarter 2023 results — due out by early May — and a 15% dividend per share increase for the fourth quarter… “The results follow in the footsteps of historic annual earnings for U.S. oil majors Exxon Mobil and Chevron, with the West’s largest oil and gas companies expected to rake in combined profits of nearly $200 billion for the year, according to Refinitiv data. The extraordinary scale of the industry’s earnings has renewed criticism and sparked calls for a Big Oil windfall profit tax. Shell said last month that it expected to take a $2 billion hit for the final three months of 2022 as a result of new taxes in the European Union and the U.K.”

Reuters: Here’s how much these oil companies are giving back to shareholders
Sourasis Bose, Ankit Kumare and Arunima Kumar, 2/1/23

“Energy firms are using a chunk of their bumper quarterly profits from surging natural gas and fuel prices to reward shareholders with higher dividends and share buybacks,” Reuters reports. “The top 25 North American oil and gas companies by market capitalization posted a combined profit of US$70.04 billion for the quarter ended Sept. 30, 186.3 per cent higher than a year earlier, according to Refinitiv data. However, the record profits have renewed calls for a windfall tax, especially as sky-rocketing prices have fuelled inflation around the globe. Below are some of the companies that have announced higher dividends and repurchases in recent weeks: VALERO ENERGY CORP. Dividend: Increased quarterly dividend by 4.1 per cent to US$1.02 per share; Net income in latest quarter: More than tripled to US$3.11 billion. EXXON MOBIL CORP. Dividend: Q4 per-share dividend of US91 cents, up three cents; Net income in latest quarter: Jumped 191.2 per cent to US$19.66 billion. CHEVRON CORP. Dividend: Q4 per-share dividend of US$1.51, up nine cents; Share buyback: Raised existing share repurchase authorization by US$50 billion; Net income in latest quarter: Jumped 89.6 per cent to US$10.78 billion. CONOCOPHILLIPS Dividend: 11 per cent increase to quarterly ordinary dividend; Share buyback: Raised existing share repurchase authorization by US$20 billion; Net income in latest quarter: Rose 87.5 per cent to US$4.5 billion.”

CNBC: More than 13,000 Nigerian residents take Shell to court over oil spills
Sam Meredith, 2/2/223

“Over 13,000 residents from two Nigerian communities are seeking damages from Shell in the High Court in London, calling for the energy giant to clean up residual oil and compensate devastating environmental damage,” CNBC reports. “The claim from 11,317 people and 17 institutions in the Niger Delta area of Ogale, a rural community of around 40,000 situated in Ogoniland, was filed last week, according to Leigh Day, the U.K. law firm representing the plaintiffs. The action follows individual claims from 2,335 people in the smaller Nigerian community of Bille, which were submitted to the High Court in 2015. The combined 13,652 claims are asking Shell to take responsibility for the loss of their livelihoods, saying their ability to farm and fish has largely been destroyed… “The claims are expected to come to trial next year. They follow a 2021 ruling by the U.K.’s Supreme Court that there was “a good arguable case” that London-listed Shell was legally responsible for the systemic pollution caused by its Nigerian subsidiary, the Shell Petroleum Development Company of Nigeria. Shell said in 2021 that it plans to leave the Niger Delta and sell its onshore oilfields and assets after 80 years of operations. The company has frequently been challenged in court over its environmental track record in the West African nation. Daniel Leader, partner at Leigh Day, told CNBC the case raised important questions about Big Oil’s responsibilities over environmental damage overseas. “It appears that Shell is seeking to leave the Niger Delta free of any legal obligation to address the environmental devastation caused by oil spills from its infrastructure over many decades,” Leader told CNBC. “At a time when the world is focused on ‘the just transition,’ this raises profound questions about the responsibility of fossil fuel companies for legacy and ongoing environmental pollution.”

Associated Press: Difficulty measuring methane slows plan to slash emissions
CATHY BUSSEWITZ, 2/1/23

“The doors of a metal box slide open, and a drone rises over a gas well in Pennsylvania. Its mission: To find leaks of methane, a potent greenhouse gas, so that energy companies can plug the leaks and reduce the emissions that pollute the air,” the Associated Press reports. “…Along with satellites, ground sensors and planes armed with infrared cameras, drones are part of the backbone of a new federal policy to compel energy companies to record and slash their methane emissions. The problem is, no one knows when — or even whether — that will be possible. Technology that might allow for precise methane measurements is still being developed. Under the Biden administration’s Inflation Reduction Act, enacted into law last year, companies must start producing precise measurements of their methane emissions next year and face fines if they exceed permissible levels. Yet if no one knows how much methane an energy company has emitted, it’s unclear that any fines could be justified. “They don’t measure the methane because the capability hasn’t been there,” Drew Shindell, a professor of earth science at Duke University, told AP of regulators. “It’s challenging to really go measure all these methane sources.” Even energy companies that have begun developing systems to reduce their methane emissions are likely years away from being able to make comprehensive calculations. Most of them are measuring leaks for only a fraction of their operations… “Under the new law, the EPA can fine companies $900 per ton of methane starting in 2024, rising to $1,500 in 2026. For companies with significant leaks, the costs could be substantial. Kayrros, a satellite analytics firm, observed a Texas natural gas compressor station that released about 2,000 tons of methane over eight days in 2020. That leak would trigger fines of of $1.8 million if it occurred in 2024 or $3 million in 2026.”

CLIMATE FINANCE

Fortune: How Wall Street’s fossil-fuel money pipeline undermines the fight to save the planet
JEFFREY ROTHFEDER AND CHRISTOPHER MAAG, 2/2/23

“An oil-sands mining site in Alberta, Canada. Enbridge Energy, whose pipelines carry crude to the U.S. from the region, has received $100 billion in financing from banks that have signed “net-zero” pledges, despite the massive carbon footprint of tar-sands oil,” Fortune reports. “…Over the next 30 years, oil transported via Line 3 is projected to result in 5.8 billion metric tons of carbon dioxide being released into the atmosphere, equal to the emissions of 50 coal-burning power plants. That figure doesn’t account for the incalculable impact of the destruction of 2 million acres of carbon-absorbing forest in Alberta—denuded to access the oil in the ground—or the energy-intensive process of extracting oil from tar sands. Yet despite Line 3’s obvious environmental impact, some of the world’s biggest banks have financed it—including several that have pledged to reach net-zero carbon emissions. Indeed, Enbridge has been the top fossil fuel client of big banks in total dollars since the Paris climate change accords in 2015, bringing in nearly $100 billion in loans and equity investments through 2021. And incredibly enough, Enbridge gets a discount on some loans—for being “green.”

Canadian Underwriter: Insurers have a role in Canadian natural gas exports
Philip Porado, 2/1/23

“Liquified natural gas (LNG) and infrastructure connectivity across Europe will be critical to ensuring a long-term energy supply for the continent, noted a Fitch Ratings report,” Canadian Underwriter reports. “The ratings agency said strong supplies of LNG, along with a relatively mild winter, have helped Europe avoid rationing and other severe consequences from an energy crisis spurred nearly a year ago by Russia’s invasion of Ukraine. Canada has been exploring ways to export more of its LNG output to Europe as the western half of the continent looks to wean off Russian energy imports for the foreseeable future. But, so far, Canada’s insufficient export infrastructure means those goals remain on the drawing board despite the country  being the world’s fifth-largest natural gas producer. Beyond logistical challenges, Canada’s oil and gas producers are contending with insurers announcing intentions to exit from oil sands coverage due in part to pressure from consumers and governments to address climate change. Going forward, oil and gas firms will have to apply a combination of three strategies to cover their risk: convincing, creating capacity and self-insuring, Javier Pardo, senior vice president for the complex risk solutions group at NFP in Canada told CU… “Self-insurance, meanwhile, uses captives so that companies can effectively self-insure. Plus, recently passed laws in Alberta encourage commercial, third-party reinsurance entities to write new business in the province that can be structured as reinsurance behind a captive.”

TODAY IN GREENWASHING

Washington Post: Oil giant Shell accused of ‘greenwashing’ and misleading investors
Maxine Joselow, 2/1/23

“An advocacy group is accusing the oil giant Royal Dutch Shell of misleading investors by classifying its investments in natural gas as spending on renewable energy,” the Washington Post reports. “In a complaint filed today with the Securities and Exchange Commission, the group Global Witness argues that Shell’s classifications amount to “greenwashing” — the practice of portraying a business or product as more environmentally friendly than it really is. The pioneering complaint opens a new front in a burgeoning battle over gas’s green credentials. While gas has lower emissions than coal, its primary component is methane, a powerful planet-warming pollutant. “Shell has been engaging in what we consider to be pretty egregious greenwashing,” Zorka Milin, a senior legal adviser at Global Witness, told the Post. “And we would like to invite scrutiny from the appropriate authorities.” The complaint alleges that Shell has improperly included gas investments in the category “Renewables and Energy Solutions” in its annual reports to the SEC… “As a result, Global Witness alleges, Shell has misled investors about its commitment to transitioning away from fossil fuels and reducing its exposure to climate-related risks. The complaint urges the SEC to investigate the matter and take “appropriate enforcement action” if it finds that Shell has unlawfully made misleading statements or omissions.”

Reuters: Activist group accuses Shell of misleading investors on renewables
Ron Bousso, 2/1/23

“Oil major Shell (SHEL.L) has been accused of misleading investors over its renewable energy spending plans in a complaint filed with the U.S. securities regulator by activist group Global Witness,” Reuters reports. “In Wednesday’s complaint to the Securities and Exchange Commission (SEC), Global Witness said it was “concerned that Shell has materially misstated its financial commitment to renewable sources of energy by inflating” its spending in that area. The British company said in February 2021 that it aims to spend between $2 billion and $3 billion a year on renewables and energy solutions. Shell’s spending on the division, which includes renewables, carbon capture and offsets as well as hydrogen and retail gas and power sales, amounted to $2.4 billion in 2021, its annual report said. That equated to 12% of the company’s total spending. Global Witness said that its own calculations showed Shell spent only 1.5%, or $288 million, of its total spending of $20 billion on renewable energy sources such as wind and solar… “The complaint also requested that the SEC examine whether the inclusion of gas trading in Shell’s renewables and energy solutions division “constitutes a materially misleading misstatement”.

King Weekly Sentinel: King, Enbridge team up to save lives
2/1/23

“Enbridge Gas and King Fire & Emergency Services are working together to improve home safety and bring fire and carbon monoxide-related deaths down to zero,” the King Weekly Sentinel reports. “King Fire & Emergency Services received 252 combination smoke and carbon monoxide alarms through Safe Community Project Zero – a public education campaign with the Fire Marshal’s Public Fire Safety Council (FMPFSC) that will provide more than 8,000 alarms to residents in 50 municipalities across Ontario. This year, Enbridge Gas invested $250,000 in Safe Community Project Zero, and over the past 14 years, the program has provided more than 76,000 alarms to Ontario fire departments.”

OPINION

The Pantagraph: Guebert: The Great Carbon Boondoggle, Part 2
1/30/23

“Bruce Rastetter, Iowa’s longtime agricultural and political power center, has a sixth sense when it comes to making money,” Alan Guebert writes for The Pantagraph. “…Soon, Rastettter began investing in global ag and local politicians. Today he’s a top collector of both: His Summit Agricultural Group reportedly controls 14,000 acres in Iowa, owns several livestock operations and “ethanol businesses in Brazil,” and has “spent millions on federal, state, and local politics over the past two decades,” notes the Register… “But not even Rastetter has deep enough pockets to bankroll this pipe dream. Enter his network of politicians and investors… “A May 2022 Securities and Exchange Commission (SEC) filing, highlighted by Oakland, lists the biggest investors in the Midwest Carbon Express, Summit’s cheeky name its pipeline. They include TPG Rise Climate Fund ($300 million), Continental Resources ($250 million), SK E&S ($110 million), Tiger Infrastructure ($100 million), and Deere & Co., the farm equipment giant whose “size of its ‘strategic investment’… remains unknown.” What also is known, though, is that most of these investors have deep ties to fossil fuels and some to oil-producing giants like Saudi Arabia. Collectively, Oakland estimates the three CO2 pipelines planned for the Midwest could collect $45 billion in federal guarantees — all transferable to any taxpayer for cash — over the next 12 years. Summit’s share of that juicy federal pie is an estimated $12 billion. But that’s only one slice. An estimated $7 billion in federal “pilot program” and “development” money is also on the CO2 table. Additionally, several state programs could, figures Oakland, raise the value of each ton of sequestered carbon to a wallet-bulging $250 per ton, or three times what is promised today. And yet, adds Oakland, almost every penny of this lard-laced federal program will prop up “polluting industries… (and) delay the transition away from dirty energy …” Little wonder that ag insiders like Rastetter often move from growing actual hogs to nurturing government-fattened porkers like carbon pipelines. These big pigs, after all, could yield massive profits while greenwashing even more fracking oil billions.”

Brandon Valley Journal: Letter to the Editor: Fisk – Federal government has cart before the horse
Jamie Fisk, Tulare, 1/30/23

“Under the last six U.S. Presidents research has been conducted because of Global Warming. CO2 capture and its removal from the atmosphere is one of the methods being looked at,” Jamie Fisk writes for the Brandon Valley Journal. “…At present, the PHMSA (the Government organization that oversees and writes regulations on pipelines) is researching and re-writing new regulations that will govern C02 pipelines in the future. They told me in a phone call that this could take at least two years to accomplish. 202-366-5523 (pipeline side of the PHMSA). The question then is: Why is the SD PUC NOT postponing the siting of Navigator’s Pipeline and Summit Carbon Solution’s Pipeline until the Federal Government has the new guidelines for CO2 pipelines (considered a hazardous waste) in place?.. “The ethanol companies keep saying that they cannot stay viable without the markets in the states that will NOT buy ethanol because it has a carbon footprint. If you check the financial records of these companies, you will find that they continue to make record profits… “The investors in these pipelines have their eyes set on the money that can be obtained with the 45Q Federal Tax Credit. It is all about greed that taxpayers will be forced to support and pay for… “Many county commissions erroneously THINK that the SD PUC will protect the counties and enforce reasonable depths and setbacks. The PUC, at several meetings and phone conversations, have made the statement: “It is up to the counties to write ordinances to address setback and depths.” Most counties being crossed by these two pipelines have NO ordinances in place; the South Dakota Ag Department has NO laws in place. So, the State of South Dakota has dropped the ball from the top down… “At the Navigator PUC input meeting, the assemblage was asked the question: “Who would want to live by the pipeline?” NOT a single hand was raised, including the pipeline representatives nor the ethanol industry representatives.”

The Hill: Biden can help reduce home energy prices and emissions by better managing LNG exports
Mark Wolfe is an energy economist and a public policy expert on climate change and the impact of rising temperatures on low-income families; Tyson Slocum directs Public Citizen’s Energy Program, 2/1/23

“The U.S. is now the world’s largest exporter of liquified natural gas (LNG), even though prior to 2016, the country had not exported any natural gas in this form,” Mark Wolfe and Tyson Slocum write for The Hill. “This dynamic is the culmination of a years-long lobbying push by the U.S. fracking industry. But this good news for the fracking industry has resulted in bad news for American families that have faced the steepest electric and natural gas prices in more than a decade… “This means that the U.S. now must compete with other countries, including Europe and China, for American-produced natural gas. Yet, many low-income families and others in the U.S. are already struggling to pay their electric and natural gas bills because prices have been increasing… “The Biden administration must take action to do more to protect low-income families as well as farmers and small business from the significant economic hardship they face caused by these higher natural gas prices that are a direct result of rising exports… “Rather, instead of increasing drilling, the U.S. should boost investments in energy efficiency measures and the electrification of buildings, as well as in wind and solar technologies… “The Biden administration needs to do the right thing for consumers as natural gas exports continue to increase, and as new licenses for exporting U.S. natural gas are considered. The administration must address the impact LNG exports have on raising natural gas bills for millions of Americans, and particularly on the burden that this increase in the cost of energy puts on low-income families.”