EXTRACTED: Daily News Clips 3/21/24

PIPELINE NEWS

• E&E News: Panel OKs pipeline, energy efficiency, air pollution bills

• WPBN: Michigan AG Nessel rallies in Ohio ahead of Line 5 pipeline federal court hearing

• Reuters: Canada regulator issues halt order to TMX over unauthorized work

• Reuters: Trans Mountain oil pipeline begins filling ahead of final construction challenges

• KIWA: Another Bill Emerges To Address Carbon Pipeline Issues

• Belmond Independent: County considers new pipeline rules

• Bleeding Heartland: Summit Carbon partner ethanol plants to pursue SAF opportunities in Iowa

• Reuters: Williams delays Louisiana natgas pipeline amid competitor dispute

• Gas World: HyNet CO2 pipeline gets go ahead

• Midland Reporter Telegram: Industry, Academics React To Recent Methane Emissions Study

WASHINGTON UPDATES

• Rally Outside the U.S. Forest Service: No climate scams on federal lands

• The Hill: House approves pro-fracking, pro-oil bills to kick off ‘energy week’ 

• Reuters: US permit reviews, red tape provoke energy conference debates

• Associated Press: EPA issues new auto rules aimed at cutting carbon emissions, boosting electric vehicles and hybrids

• E&E News: DOE backs Alaska gas exports over climate objections

STATE UPDATES

• Associated Press: Chevron agrees to pay more than $13 million in fines for California oil spills

• WTHI: EPA: Around 250 barrels of crude oil leaked from a Lawrence County facility last week

EXTRACTION

• Washington Post: Phasing out fossil fuels a ‘fantasy,’ oil executives say amid giant profits

• Inside Climate News: Companies Are Poised to Inject Millions of Tons of Carbon Underground. Will It Stay Put?

• E&E News: Gas industry leans on emissions tech as climate crackdown looms

• Bloomberg: Oil-Sands Producers to File for Carbon Capture Permits This Week

• Yale Environment 360: As Carbon Air Capture Ramps Up, Major Hurdles Remain

• Indiginews: In oil country, First Nation with high cancer rates accuses AER of ‘regulated murder’

• Inside Climate News: Flaring and Venting at Industrial Plants Causes Roughly Two Premature Deaths Each Day, a New Study Finds

• World Oil: ConocoPhillps’ Willow Project To Reach First Production In “Four More Winters;” Expects Modest Permian Growth 

• Wall Street Journal: Specialist Buyout Firms Cash In on Shale Consolidation

CLIMATE FINANCE

• Associated Press: SEC climate rule prompts a rush to sue. Experts say companies are likely to prepare to comply anyway

• Reuters: Canada’s big banks say sustainable finance pledges may not curtail emission growth

TODAY IN GREENWASHING

• Reuters: Dutch court finds KLM ads were misleading in ‘greenwashing’ case

• Enbridge: Embracing identity, overcoming obstacles, igniting a love of learning

OPINION

• Utility Dive: FERC needs a quorum to function. Tomorrow’s Senate hearing puts that work on the line.

• Cato Institute: FERC Nominees Can Avoid Pipeline Politics by Following the Law

• Financial Times: Wall Street is letting Orwellian doublethink kill climate action
  

PIPELINE NEWS

E&E News: Panel OKs pipeline, energy efficiency, air pollution bills
Andres Picon, Sean Reilly, Timothy Cama, Emma Dumain, 3/21/24

“The House Energy and Commerce Committee passed a contentious pipeline safety reauthorization bill Wednesday despite a litany of objections from Democrats concerned about the bill’s permitting provisions,” E&E News reports. “Republicans on the panel also advanced bills that would put new guardrails on EPA’s recently strengthened soot standard and block energy efficiency rules for a number of home appliances. Wednesday’s marathon markup came during House Republicans’ “energy week,” showcasing the deep partisan rifts on energy issues as House leaders work to pass a flurry of bills to undermine the Biden administration’s agenda. Chair Cathy McMorris Rodgers (R-Wash.) called the slate of energy bills coming out of her committee “important legislation to further advance America’s energy infrastructure and economic and environmental leadership.”

WPBN: Michigan AG Nessel rallies in Ohio ahead of Line 5 pipeline federal court hearing
Miya Ingle, 3/21/24

“Michigan Attorney General Dana Nessel will be in Ohio Thursday speaking at a rally to make her case against Enbridge’s Line 5 pipeline,” WPBN reports. “A federal appeals court will hear arguments Thursday… “AG Nessel backs Wisconsin tribe’s legal battle against Enbridge Energy over pipeline concerns Nessel filed a lawsuit to shut down and decommission the oil pipeline in 2019… “After Nessel speaks at the rally in Cincinnati, her office will deliver arguments to urge a court of appeals to move the lawsuit to state court… “An Enbridge representative is responding to the news saying: “We are confident that ultimately the Sixth Circuit Court will agree with the lower court’s decisions from August 2022 and November 2021 that this dispute—which has generated a US foreign policy controversy—properly belongs in federal court… “As we proceed with this modernization project, Enbridge also is investing in renewables, developing cleaner oil and natural gas solutions, and transporting and delivering these energy resources safely and sustainably.”

Reuters: Canada regulator issues halt order to TMX over unauthorized work
3/19/24

“Trans Mountains pipeline The Canada Energy Regulator said Tuesday it ordered Trans Mountain Expansion Pipeline (TMX) to stop work on a part of its expansion project after an inspection found contractors working without authorizations near an active nesting site of a red-tailed hawk,” Reuters reports. “Trans Mountain will be able to resume reclamation and clean-up activities on spread 6 of the expansion pipeline near Abbotsford, British Columbia, once an inspection officer determines the situation has been remedied, the regulator said in a statement.”

Reuters: Trans Mountain oil pipeline begins filling ahead of final construction challenges
3/20/24

“Canada’s Trans Mountain Corp has begun filling its pipeline expansion with oil in a staged process, a senior executive said on Wednesday, as construction of the long-delayed progress nears an end,” Reuters reports. “The pipeline expansion faces technical challenges in the next two weeks as it finishes work on the last segment in British Columbia, Chief Financial Officer Mark Maki told Reuters. “We feel good about progress,” Maki told Reuters on the sidelines of the annual CERAWeek energy conference in Houston. “We’ve got some key technical things that are coming up here in the coming week or two. And once those are done, I think it should be relatively smooth sailing.” “…One of the technical challenges involves stringing pipeline through hard rock in the final segment, Maki told Reuters.”

KIWA: Another Bill Emerges To Address Carbon Pipeline Issues
3/19/24

“A House committee has approved a bill that outlines a new legal avenue for landowners who don’t want a carbon pipeline to run through their property,” KIWA reports. “Representative Bobby Kaufmann of Wilton told KIWA it’s the fifth time the House has introduced a bill to address the ability of developers to gain eminent domain authority to seize ground from unwilling property owners. The bill would give the Polk County District Court authority to review claims from landowners OR developers about whether eminent domain authority may be used for any project — including the proposed Summit Carbon Solutions Pipeline. Representative Chuck Isenhart of Dubuque told KIWA he’s not sure the Iowa Utilities Board will make a clear determination on whether Summit’s pipeline is a public necessity and, therefore, may use eminent domain. The bill cleared the House Ways and Means Committee on a 24-to-zero vote. It’s now eligible for House debate.”

Belmond Independent: County considers new pipeline rules
3/20/24

“The Wright County Planning and Zoning Commission will be meeting in April to possibly approve new setbacks for pipelines carrying hazardous materials,” the Belmond Independent reports. “The commission’s March 14 meeting was attended by a number of residents as well as two officials from Summit Carbon Solutions. P&Z Administrator Jeremy Abbas characterized the meeting as “fairly productive” with Summit officials answering a number of questions. Abbas said the commissioners want more information, including setbacks in other counties, before coming to a decision about possible changes and additions to county regulations. He added that the commission plans on meeting again soon – possibly April 11 – after one of the members returns to Iowa… “Supervisor Dean Kluss met last week with the attorneys and supervisors from several other counties where the pipeline project is proposed. He said there was discussion on what distance will be enough for setbacks. Kluss said March 18 he would like a setback of 3,000 feet, based on testimony about the effects on the human body during an accident that is classified as a level 3 or 4. But he added, “I think the distance will be something less that 3,000 feet.” “…But perhaps that decision will be delayed as the IUB considers the addition of 14 more ethanol plants. Some of the questions include: Will the pipes have to be bigger to handle the additional liquid carbon? The new easements that Summit asked for called for pipes up 16 inches in diameter. It was previously estimated that the liquified carbon dioxide would need only 8 to 10 inch pipes; Instead of bigger pipes, will the hazardous liquid be transported under great pressure? If so, how accurate are the plume studies which show the spread of the liquid carbon if there is an accident?”

Bleeding Heartland: Summit Carbon partner ethanol plants to pursue SAF opportunities in Iowa
Nancy Dugan, 3/19/24

“On March 11, Kaylee Langrell, stakeholder relations manager for TurnKey Logistics, and Grant Terry, senior project manager for Summit Carbon Solutions, appeared before the Worth County Board of Supervisors to explain the newly expanded pipeline route incorporating POET and Valero ethanol plants in Iowa,” Bleeding Heartland reports. “…When asked about Langrell’s March 11 comments, Sabrina Zenor, director of stakeholder engagement and corporate communications for Summit Carbon, stated the following in a March 15 email: “Summit Carbon Solutions (SCS) is working to lower the carbon intensity of ethanol, opening up the pathway for Alcohol (ethanol) to Jet. This does not involve Summit using CO2 to make SAF. It’s about enabling Midwest produced ethanol to have access to the markets.” Exactly how ethanol plants and other potential startups in Iowa intend to manufacture SAF is not known… “Whatever SAF production path is chosen, it appears that all involve vast quantities of water. As previously reported, in Iowa alone, Summit Carbon created 13 separate LLCs in 2023 in its quest for water permits, although with the exception of Lawler SCS Capture, LLC, those permits have been put on hold following concerted opposition by the Sierra Club Iowa chapter and the public… “One endlessly contested issue is the potential use of CO2 captured by Summit for enhanced oil recovery. “SCS only plans on permanent geologic sequestration, and does not have any plans to engage in enhanced oil recovery, nor is it exploring any such plans,” Zenor said in a March 15 email. North Dakota officials have stated precisely the opposite in recent months… “These three new water permits mean that Summit Farms Farmland, LLC is capable of pumping close to 1.3 billion gallons of water per year in Hardin County alone under the permits, assuming the wells are continuously operational at full capacity… “According to Wally Taylor, Legal Chair of the Sierra Club Iowa chapter, Iowa’s water permitting system is entirely too lenient. “The problem with the DNR’s interpretation of the law is that once a certain general category, e.g., crop irrigation, is deemed a beneficial use, every facility in that general category is automatically permitted. Instead of that, each facility should be evaluated on its own merits, or lack thereof.” “…Toward the end of the December 2023 BEK TV broadcast, moderator Scott Hennen asked the following of Wade Boeshans, executive vice president of Summit Carbon Solutions: I want to just reiterate that I’ve heard from Summit officials directly that enhanced oil recovery, when the, you know, technology is ready is part of the business model, right?… “Boeshans responded by stating that Summit Carbon is building a “common carrier pipeline” that will deliver CO2. “Today, we don’t have any shippers who want to ship CO2 for EOR. When that changes, we will likely move it for that purpose, because we are a common carrier pipeline providing that service.” Bleeding Heartland asked Zenor how Summit Carbon plans to separate the CO2 designated exclusively for sequestration from the CO2 designated for enhanced oil recovery. “Our business model is for 100% sequestration, and we have no intentions of engaging in enhanced oil recovery,” Zenor reiterated on March 15.”

Reuters: Williams delays Louisiana natgas pipeline amid competitor dispute
Georgina Mccartney, 3/20/24

“U.S. energy firm Williams Companies delayed the completion of its Louisiana Energy Gateway natural gas pipeline project following a dispute with a rival, Williams CEO Alan Armstrong said on Wednesday at a conference,” Reuters reports. “The 1.8-billion cubic feet per day (bcfd) pipeline was originally set to come online this year but was delayed to the second half of 2025 following a dispute with Energy Transfer (ET.N), opens new tab, the company previously said. The company is still pushing ahead with the project but has not laid out a new start date, Armstrong said… “Other energy firms, including Momentum Midstream and DT Midstream (DTM.N), opens new tab, have fought with Energy Transfer in court, accusing Energy Transfer of “blocking” their pipeline projects by not allowing them to cross Energy Transfer’s pipelines in the area.”

Gas World: HyNet CO2 pipeline gets go ahead
Dominic Ellis, 3/20/24

“The HyNet Carbon Dioxide (CO2) Pipeline application has today been granted development consent by the UK Secretary of State for Energy Security and Net Zero Claire Coutinho,” Gas World reports. “The project consists of a new build pipeline that will transport CO2 produced and captured by future hydrogen producing facilities and existing industrial premises in North West England and North Wales for offshore storage. According to HyNet, the offshore transportation and storage proposed development involves the repurposing of the existing offshore natural gas import pipeline from Point of Ayr (PoA) Gas Terminal to become an export pipeline to transport CO2 to a newly constructed Douglas Carbon Capture and Storage (CCS) platform, and onwards to Hamilton Main, Hamilton North, and Lennox platforms for injection into depleted oil and gas reservoirs. The first CO2 injection is scheduled for the fourth quarter of 2027… “The CO2 Pipeline application was submitted to the Planning Inspectorate for consideration by Liverpool Bay CCS Limited on the 3rd October 2022 and accepted for Examination on 31st October 2022.”

Midland Reporter Telegram: Industry, Academics React To Recent Methane Emissions Study
Nella McEwen, 3/20/24

“A recent study published in the journal Nature garnered attention with its report that US wells, pipelines and compressors are spewing three times the amount of methane as the government thinks,” according to the Midland Reporter Telegram. “The study also said those emissions cause $9.3 billion in yearly climate damage. However, the study found that because over half those emissions come from a tiny amount of sites — 1% or less — the problem is fairly fixable. “There are a lot of studies that are being done on the methane issue, based on any number of assumptions and data from various sources. But the bottom line is that the story for industry is a relatively good one,” commented W. Bruce Bullock, Jane and Pat Bolin Endowed Executive Director at the Maguire Energy Institute, Southern Methodist University Cox School of Business.”

WASHINGTON UPDATES

Rally Outside the U.S. Forest Service: No climate scams on federal lands
3/20/24

“Join the Center for Biological Diversity, Food & Water Watch, Institute for Policy Studies, WE ACT, and more for a rally outside the U.S. Forest Service headquarters in Washington, DC to demand: no climate scams on federal lands! Date: Thursday, March 21 Time: 3pm (will last around an hour) Place: U.S. Forest Service headquarters at 201 14th St. S.W. (the red brick building at the corner of 14th Street and Independence Ave). Let’s keep the heat up on the Forest Service and other agencies to reject CCS!”

The Hill: House approves pro-fracking, pro-oil bills to kick off ‘energy week’ 
RACHEL FRAZIN AND ZACK BUDRYK, 3/20/24

“House Republicans on Wednesday kicked off voting on a slate of legislation for what they are dubbing “energy week,” passing two measures in support of oil and gas development,” The Hill reports. “… Rather, it’s a messaging tool for the GOP to show voters where their energy agenda lies ahead of this year’s elections… “The first bill Wednesday, which passed in a 229-188 vote, would bar a president from declaring any kind of pause on fracking, a controversial oil and gas extraction method that has been linked to water contamination and other pollution. Biden has not said he wants to ban fracking overall, though during his 2020 campaign he said he wanted to stop new drilling, including fracking, on publicly owned lands and waters… “The second bill, which passed 216-200, undoes action by the administration to raise fees for drilling on public lands. Fifteen Democrats voted with Republicans in support of the first measure, while three voted with them on the second measure.” 

Reuters: US permit reviews, red tape provoke energy conference debates
3/20/24

“U.S. energy permitting delays and the need for streamlined new project reviews dominated conversations among oil and gas executives and lawmakers in meeting rooms and hallways at the CERAWeek energy conference this week,” Reuters reports. “The fossil fuel industry historically has objected to red tape that slows or raises development costs. But the topic has moved higher on their agenda after U.S. President Joe Biden’s administration hit pause on reviews of permits of new gas export plants as rules governing clean-energy incentives undercut enthusiasm around the Inflation Reduction Act. Permitting for pipelines to wind farms have all been “equally daunting,” said Colin Gruending, an executive vice president at Enbridge, which transports fuels for refineries and liquefied natural gas plants, and invests in solar and wind farms. “Policy is at bit of an intersection right now, given the energy transition and uncertainties,” he added. The energy industry is facing “punitive executive orders, punitive polities and punitive interpretations by agencies,” said Toby Rice, CEO of top U.S natural gas producer EQT Corp. “Permit reform is the answer,” he said. The complaints have important allies in U.S. Senators Joe Manchin and Daniel Sullivan, both if whom vowed to work on legislation streamlining approvals for new infrastructure.”

Associated Press: EPA issues new auto rules aimed at cutting carbon emissions, boosting electric vehicles and hybrids
MATTHEW DALY AND TOM KRISHER, 3/20/24

“The Biden administration announced new automobile emissions standards Wednesday that officials called the most ambitious plan ever to cut planet-warming emissions from passenger vehicles,” the Associated Press reports. “The new rules relax initial tailpipe limits proposed last year but eventually get close to the same strict standards set out by the Environmental Protection Agency. The rules come as sales of electric vehicles, which are needed to meet the standards, have begun to slow. The auto industry cited lower sales growth in objecting to the EPA’s preferred standards unveiled last April as part of its ambitious plan to cut planet-warming emissions from passenger vehicles. The EPA said that under its final rule, the industry could meet the limits if 56% of new vehicle sales are electric by 2032, along with at least 13% plug-in hybrids or other partially electric cars, as well as more efficient gasoline-powered cars that get more miles to the gallon… “The EPA rule applies to model years 2027 to 2032 and will significantly reduce emissions of planet-warming greenhouse gases, as well as other air pollution such as nitrogen oxides and particulate matter from new passenger cars, light trucks and pickups… “The new rule slows implementation of stricter pollution standards from 2027 through 2029, after the auto industry called proposed benchmarks unworkable… “Let me be clear: Our final rule delivers the same, if not more, pollution reduction than we set out in our proposal,’’ EPA Administrator Michael Regan told reporters. In addition to carbon pollution, the final standards also will reduce other serious air pollution that contributes to heart attacks, respiratory illnesses, aggravated asthma and decreased lung function, Regan said. “Folks, these new standards are so important for public health, for American jobs, for our economy and for our planet,’’ he said.

E&E News: DOE backs Alaska gas exports over climate objections
Niina H. Farah, 3/20/24

“The Department of Energy is defending its decision to re-approve exports from a massive liquefied natural gas project in Alaska, even as the agency acknowledged the project would likely result in a net increase in global greenhouse gas emissions,” E&E News reports. “In a brief filed in federal court last week, DOE said it has broad discretion under federal law to deem Alaska LNG to be in the public interest, a finding that is being disputed by environmental groups. The agency’s determination predates its January decision to pause new LNG export approvals as it takes a closer look at the effect that shipping natural gas overseas has on climate change and energy costs. The $43 billion Alaska LNG project includes an 800-mile pipeline connecting a gas treatment facility in Alaska’s remote North Slope to a liquefaction facility in the south of the state. Most of the LNG from the project would be exported, starting in 2032.”

STATE UPDATES

Associated Press: Chevron agrees to pay more than $13 million in fines for California oil spills
3/20/24

“Chevron has agreed to pay more than $13 million in fines for dozens of past oil spills in California,” the Associated Press reports. “The California-based energy giant agreed to pay a $5.6 million fine associated with a 2019 oil spill in Kern County. The company has already paid to clean up that spill. This money will instead go toward the state Department of Conservation’s work of plugging old and orphaned wells. The department said it was the largest fine ever assessed in its history. “This agreement is a significant demonstration of California’s commitment to transition away from fossil fuels while holding oil companies accountable when they don’t comply with the state’s regulations and environmental protections,” department Director David Shabazian said in a news release. The 2019 oil spill dumped at least 800,000 gallons (3 million litres) of oil and water into a canyon in Kern County, the home of the state’s oil industry. Also, Chevron agreed to pay a $7.5 million fine for more than 70 smaller spills between 2018 and 2023. These accounted for more than 446,000 gallons (1.6 million litres) of oil spilled and more than 1.48 million gallons (5.6 million litres) of water that killed or injured at least 63 animals and impacted at least 6 acres (2.4 hectares) of salt brush and grassland habitat, according to the California Department of Fish and Wildlife’s Office of Spill Prevention and Response.”

WTHI: EPA: Around 250 barrels of crude oil leaked from a Lawrence County facility last week
Chris Essex, 3/19/24

“We have new information after last week’s oil spill in Lawrence County, Illinois,” WTHI reports. “The spill happened Friday in Petrolia, north of Bridgeport. The county’s EMA director said nobody was hurt, and there were no evacuations. The EPA says the leak came from Indian Liberity’s Boyd Facility. In total, it involved 250 barrels of crude oil and 1,000 barrels of saltwater from an oil/water separation pit. EPA officials say the leak went over land into a ditch, and then into Muddy Creek and then to the Embarras River. They said oil potentially went to the Wabash River, too. It traveled around 11 miles before it was contained – about a mile and a half from the Wabash River. The EPA says Indian Liberty hired an environmental contractor for clean-up. An Illinois conservation office was the first to notice the issue. From there, it was reported to the Lawrence County EMA. According to a referral, there were violations of the Illinois Environmental Protection Act and Illinois Pollution Control Board regulations.”

EXTRACTION

Washington Post: Phasing out fossil fuels a ‘fantasy,’ oil executives say amid giant profits
Maxine Joselow, 3/20/24

“When nations struck a historic deal to phase out fossil fuels last fall, then-U.S. climate envoy John F. Kerry was elated… “But three months later, it appears that some of the world’s biggest oil and gas companies did not get the memo. At an energy conference here this week, their leaders struck a much different tone, predicting that fossil fuels will continue to power the global economy well into the future,” the Washington Post reports. “We should abandon the fantasy of phasing out oil and gas,” Amin Nasser, president and CEO of Saudi Aramco, said to applause at CERAWeek by S&P Global. Shell CEO Wael Sawan declared that “there is going to be a multidimensional energy system in the future, [and] oil and gas will continue to have an important role in stabilizing that system for a long, long, long time to come.” And Patrick Pouyanné, CEO of the French energy giant TotalEnergies, said he was “quite pleased” that the Dubai deal recognized “that we need some transition fuels, and gas is one of them.” It’s hardly surprising that oil industry executives would see a continued role for their products, even as the world shifts to cleaner fuels to fight climate change. But their remarks underscored an uncomfortable reality for climate advocates and policymakers globally: Demand for oil keeps rising, delaying the end of the fossil fuel era. The industry executives’ pronouncements are backed up by record oil-and-gas production and consumer misgivings over purchasing electric vehicles. At the same time, utilities are rushing to line up more natural gas to meet explosive power demand fueled by electricity-hungry data centers… “Nasser projected that global oil demand will reach a new record of 104 million barrels per day this year, despite the growth of electric vehicles and wind and solar energy. He rejected the International Energy Agency’s forecast that oil consumption will peak in 2030. (The coalition of oil-producing nations led by Saudi Arabia and Russia, known as the Organization of the Petroleum Exporting Countries, has also criticized the IEA’s forecast as unrealistic.) Two top Biden administration officials pushed back on Nasser’s prediction. “That is one opinion,” Energy Secretary Jennifer Granholm told attendees at CERAWeek. “There have been other studies that suggest the opposite, that oil-and-gas demand and fossil demand will peak by 2030.” John D. Podesta, a senior adviser to Biden on international climate policy, told reporters that Nasser “said he thought the estimates of demand from the IEA and others were off. We don’t think so. We think there’s a high demand for electrification.”

Inside Climate News: Companies Are Poised to Inject Millions of Tons of Carbon Underground. Will It Stay Put?
Nicholas Kusnetz, 3/20/24

“After more than a century of pulling carbon from underground, a rush is underway to pump it back down. Companies have applied for scores of permits across the country to inject carbon dioxide deep into the earth. Several projects have already been approved. With industry planning to inject tens of millions of tons annually, a looming question is whether the climate-warming gas will stay underground,” Inside Climate News reports. “The most likely points of failure, experts say, could be some of the millions of abandoned oil and gas wells that perforate the nation, often in the same areas targeted for storing carbon dioxide underground. A new report underscores the risk those wells pose in Louisiana, home to more proposed carbon storage projects than any other state. There are about 120,000 abandoned wells in Louisiana overlying geological zones that could store carbon dioxide, more than 13,000 of which were plugged before modern standards were adopted in 1953, according to a report published by the Center for Applied Environmental Science at the Environmental Integrity Project, a watchdog group. A separate count, by the Louisiana-based advocacy group Healthy Gulf, looked within a 5-mile radius of the proposed projects and found about 7,000 oil and gas wells. “It’s not a question of whether they’re going to leak,” Abel Russ, director of the Center for Applied Environmental Science, which published an accompanying map of the wells, told ICN. “It’s a question of how much, how often, and whether it’s an acceptable level of leakage.” “…Many environmental advocates remain skeptical, however, and they point to problems caused by the injection of oilfield wastewater under high pressure in West Texas and other regions, the best existing analogue for the planned industrial-scale storage of CO2. In recent years, toxic brine has seeped and spewed out of old oil and gas wells across West Texas near wastewater injection wells, spouting more than 100 feet in the air and creating an artificial saline lake. The wastewater injections have also caused earthquakes, as the pressurized fluid interacts with faults. Carbon dioxide would be injected as a “supercritical” fluid that has properties of both a gas and liquid. While the regulations for carbon dioxide storage are more rigorous than those that cover injection of other substances, abandoned oil wells represent a weak spot in the rules, Dominic DiGiulio, a former EPA geoscientist and co-author of the new report, told ICN.

E&E News: Gas industry leans on emissions tech as climate crackdown looms
Brian Dabbs, Shelby Webb, 3/21/24

“With electricity demand set to spike, U.S. energy companies are aiming to make sure natural gas is part of the world’s fuel mix for decades to come,” E&E News reports. “Chevron, Exxon Mobil and firms like pipeline operator Williams Cos. delivered a stark message here this week — at the CERAWeek by S&P Global energy conference — that the lights won’t turn on and data centers won’t run without U.S. liquefied natural gas spread across the globe. They’re also pledging to crack down on emissions of methane, a potent greenhouse gas with much more short-term planet-warming potential than carbon dioxide to meet federal regulations and address concerns about the industry’s effect on the environment. Chad Zamarin, Williams’ executive vice president of corporate strategic development, said his company has launched two satellites to detect methane leaks. Williams is striving for satellite monitoring around the clock. “We’re not there,” Zamarin said Wednesday at CERAWeek. “The reality is we need to get there.”

Bloomberg: Oil-Sands Producers to File for Carbon Capture Permits This Week
Kevin Crowley, 3/20/24

“A group of major oil-sands producers will submit applications for a $12 billion carbon capture project to Canada’s energy regulator this week with an aim of making a final investment decision next year, according to an executive leading the process,” Bloomberg reports. “The project will be ready by 2030 if permits are approved within a year, said Kendall Dilling, chief executive officer of the Pathways Alliance, a group of six oil-sands producers. It’s a “significant milestone” in a project that’s been in the works for years, he told Bloomberg in an interview at the CERAWeek by S&P Global Conference in Houston on Wednesday.”

Yale Environment 360: As Carbon Air Capture Ramps Up, Major Hurdles Remain
NICOLA JONES, 3/20/24

“…The concept of direct air capture has been around for decades…Now, direct air capture is seriously ramping up, with about 20 plants in operation across Europe, Canada, and the U.S., where the Department of Energy is funding four regional direct air capture hubs. Globally, more than 100 plants are at some stage of development,” according to Yale Environment 360. “Though the concept is simple, there are still plenty of hurdles. Building and operating an air capture plant is about 50 times more expensive than planting trees per ton of CO2 taken up. Researchers are working hard to come up with new materials and systems to lower that price tag, encouraged by government prize money and rising tax breaks and carbon credits… “The largest of these — a project called Orca, run in Iceland by Climeworks — soaks up 4,000 metric tons per year. But the International Energy Agency’s (IEA) pathway to net zero by 2050 calls for pulling 80 million metric tons of CO2 from the air annually by 2030, and more than a billion metric tons by 2050. That will involve a herculean effort, requiring tens of megaton-scale plants to be built per year… “It’s technologically feasible,” World Resources Institute analyst Katie Lebling, who dug into the topic in a 2022 working paper, told Yale E360. But, she adds, “are all the policies ready? Is the financing there? Are people supportive?” “…But the amount of carbon stored by nature can be hard to estimate and uncertain: A wildfire can wipe out a forest, for example… “About three-quarters of globally captured C02 is currently being used for enhanced oil recovery, which is controversial. To tackle both cost and energy use, the DOE’s Carbon Negative Shot program, launched in 2021, ambitiously aims to get the cost of direct air capture below $100 per metric ton by sponsoring technology innovation. That price would make air capture profitable against, for example, a U.S. tax credit that, as of 2022, offers $180 per metric ton for large-scale stored CO2… “The energy it takes to power capture, says one critic, would be better spent replacing fossil-fuel-based electricity. For now, though, about three-quarters of all globally captured CO2 (which comes mainly from industrial flue stacks) is currently being used for enhanced oil recovery, Fajardy told Yale E360. The CO2 gets injected into oil wells to both bury it and to help push out more oil. This is controversial, as many note that it doesn’t disincentivize fossil fuels. “Enhanced oil recovery has been a stepping stone for early carbon capture and storage projects to help with the economics,” says Herzog. “If your primary goal is negative emissions, it is not a good fit.” “…The economic and environmental hurdles leave some concluding that air capture is not a good idea at all. Mark Jacobson, director of the Atmosphere/Energy program at Stanford University, has long been a detractor: The energy it takes to power capture, he told Yale E360, would be far better spent replacing fossil-fuel-based electricity for decades to come. “There is never a case where direct air capture or carbon capture is useful,” Jacobson told Yale E360.

Indiginews: In oil country, First Nation with high cancer rates accuses AER of ‘regulated murder’
BRANDI MORIN, 3/20/24

“There were more than 100 people in the gathering hall in the isolated Northern “Alberta” hamlet of Fort Chipewyan on an evening in early March, as residents waited to hear from Alberta Energy Regulator (AER) CEO Laurie Pusher. He made the trek to the fly-in community to address the AER’s response to a massive tailings leak from an Imperial Oil site that was first disclosed in February of last year,” Indiginews reports. “When he arrived he was met with scowling faces and angry outbursts, as residents expressed their frustration with the regulator’s failure to promptly notify the community of the leak. Athabaska Chipewyan First Nation (ACFN) councillor Mike Mercredi stood up several times to yell across the room to Pusher, accusing him of overseeing “regulated murder.” Mercredi seethed at the CEO, saying he was making excuses for the AER’s lack of oversight. “I got a graveyard full of family and people and friends that you killed. Their blood is on your hands! Your rules are being broken and you do nothing.” ACFN Chief Allan Adam, who was expected to be away for the meeting, arrived unexpectedly and served a statement of claim to Pusher, whose face blazed red with embarrassment.  The chief along with the ACFN band are named as plaintiffs in the $500 million lawsuit that claims the regulator failed to inform the First Nation about the leaks. The lawsuit alleges “negligence, nuisance, breach of the duty to consult, breach of the Honour of the Crown, breach of fiduciary duty, and unjustified treaty infringement.” “We’re going to court,” declared Adam, after taking the microphone. Cheers erupted in the room. Last year, Fort Chipewyan officials, alongside those from several other affected Indigenous communities, learned of a 5.3 million litre spill from Imperial Oil’s Kearl Mine (located about 75 kilometres upstream of the community). Soon after, they found out about another spill at the same mine site that had been leaking for at least nine months before they learned about it. Despite mine employees discovering the leak in 2022, and then notifying Imperial, which in turn alerted the AER, neither told affected Indigenous communities, the public, or provincial, territorial and federal governments. They were only informed when an Environmental Protection Order was released by the AER. In October, the Canadian Press reported that Imperial Oil and the AER already knew that the tailings had been leaking for years. “You’re coming here saying you’re concerned about us? Do you think I believe you?” Dene elder Alice Rigney chastised Pusher at the meeting.”

Inside Climate News: Flaring and Venting at Industrial Plants Causes Roughly Two Premature Deaths Each Day, a New Study Finds
Victoria St. Martin, 3/20/24

“Meeka Outlaw spent most of her childhood growing up in a South Philadelphia rowhouse that was essentially sandwiched between an oil refinery and an electrical power plant,” Inside Climate News reports. “Less than a mile north of her home on Latona Street, there’s the Vicinity Electrical Cogeneration Plant, whose towering stacks are a familiar part of the neighborhood’s skyline. About two miles to the south was the now-shuttered PES Refinery, which began processing oil during the Civil War and didn’t stop until it was destroyed in an explosion in 2019. “If I would go out the backyard, I could see this huge torch—I called it a torch—and I would be like, ‘Mom, this is great. Look at that. Did you see that big flame?’” recalled Outlaw, who’s now 45. “Then she would just say, ‘Yeah, Meeka, I see it.’ “I never quite understood why she wasn’t as excited as I was when I was young. Not until I got older and started going to school and hearing about climate change.” Although she didn’t know it then, Outlaw was witnessing what scientists call flaring and venting, processes used to burn off or release excess natural gas. A new study has found not only does flaring pollute the air of surrounding communities across the nation, but it also causes roughly two premature deaths each day.  The study, which was published in the peer-reviewed journal Geohealth, also found that flaring and venting increases emergency room visits, worsens incidences of asthma in children, and costs the U.S. about $7.4 billion annually in so-called health damages—financial losses because of lost work time and other factors because of its adverse health effects. The study’s authors—from Boston University, the University of North Carolina at Chapel Hill and the Environmental Defense Fund—examined the adverse effects of the primary pollution hazards that are contained in the emissions produced in flaring and venting activities, including fine particulate matter, also known as PM 2.5, ozone and nitrogen oxides… “Researchers said that three states—Texas, Pennsylvania, and Colorado—accounted for roughly 45 percent of the people who were adversely affected by flaring and venting activities. Roughly half a million Americans live within three miles of oil and gas, or O&G, plants that engage in venting and flaring. All told, researchers said that venting and flaring led to more than 73,000 asthma exacerbations in children and 710 premature deaths each year. The scientists wrote that because some data may not be reported at local levels, their findings may be “missing potential hotspots for diseases, most notably asthma.” “…Among the most alarming findings, researchers said, was the role of pollutants in exacerbating childhood asthma.”

World Oil: ConocoPhillps’ Willow Project To Reach First Production In “Four More Winters;” Expects Modest Permian Growth 
Bethany Fischer, 3/19/24

“During CERAWeek by S&P Global’s second day, ConocoPhillips’ CEO Ryan Lance announced that his firm’s highly-anticipated Willow project in Alaska is making developmental headway,” World Oil reports. “Sitting down with S&P Global’s Dan Yergin, Lance also discussed Biden’s controversial LNG export ban, the U.S.’ unprecedented production growth in 2023, the role of artificial intelligence, and regulatory issues plaguing the U.S. oil and gas industry. ‘Four more winters’ until first Willow production… “Lance was happy to share that the company is making swift progress developing the facility. Lance predicted that first production from its Willow development will occur in ‘four more winters.’ The CEO applauded the project as an important boost for Alaska’s economy, creating many jobs and enhancing U.S. energy security.” 

Wall Street Journal: Specialist Buyout Firms Cash In on Shale Consolidation
Luis Garcia, 3/18/24

“Some private-equity firms backing oil-and-gas producers cashed in on rising consolidation in the U.S. shale industry last year, selling assets for an expected $30.55 billion and fueling distributions to investors—a contrast with the dearth of exit deals plaguing buyout shops focused on other sectors,” the Wall Street Journal reports. “EnCap Investments, for example, distributed $7.8 billion to investors in its oil and gas-focused funds, a record for the Houston firm, thanks partly to the sale last June of three producers in the Midland Basin of West Texas to energy company Ovintiv in a $4.28 billion deal, according to an investor letter viewed by WSJ Pro Private Equity.”

CLIMATE FINANCE

Associated Press: SEC climate rule prompts a rush to sue. Experts say companies are likely to prepare to comply anyway
SUMAN NAISHADHAM, 3/20/24

“The U.S. Securities and Exchange Commission’s new rule requiring companies to disclose some emissions and climate-related information was barely passed before the agency was being hauled to court,” the  Associated Press reports. “The rule adopted in early March was watered down from what the nation’s top financial regulator had proposed two years ago, thanks to intense lobbying and talk of litigation from business and trade groups and some conservative lawmakers. But weakening the rule didn’t stave off lawsuits, and what’s expected to be a lengthy legal battle is now underway… “Ropes & Gray attorney Michael Littenberg told AP companies will prepare for compliance while the lawsuits move forward. Whatever the outcome, many companies will have to comply with similar rules in California and the European Union, which recently moved ahead with requirements for companies to disclose their emissions and other climate-risk information. “What does the stay mean for companies subject to the rules? At this point, likely not much,” Littenberg told AP. “The climate risk reporting architecture takes time to build,” Suzanne Ashley, a former special counsel and senior advisor to the SEC’s enforcement director and founder of Materiality Strategies, which advises companies on issues including regulation, told AP. “It’s not prudent for companies to delay or fail to prepare betting on the outcome of the legal challenge.”

Reuters: Canada’s big banks say sustainable finance pledges may not curtail emission growth
Nivedita Balu, 3/19/24

“Some of Canada’s biggest banks have for the first time said their green financing efforts may not necessarily curtail emissions growth, after years of pressure from activists to improve transparency in their climate goals,” Reuters reports. “Canadian banks, said to be one of the biggest fossil fuel financiers globally, have drawn criticism from climate activists and investors over using sustainability-linked financing (SLF) merely for the pretence of a lower carbon footprint rather than take meaningful steps in that direction. In their latest annual climate reports released during the past week, many Canadian banks have pledged billions of dollars in sustainable financing to decarbonize high-emitting sectors, while highlighting major challenges to meeting their goals. “The question for regulators will be whether it’s enough for the banks to insert these brief disclaimers deep in their ESG reporting or whether they need to do a better job telling their investors and the public that these huge financial numbers they promote as green aren’t necessarily adding up to emissions reductions at all,” Matt Price, executive director of Investors for Paris Compliance, told Reuters. In January, the group urged securities regulators to investigate major Canadian banks on their climate-related claims and alleged misleading disclosures. The complaint gave climate activists more fuel in their fight, which is part of a broader international push for accountability on corporate climate pledges… “Regulators in the Americas and Europe have increasingly been worried about greenwashing, in which companies exaggerate their environmental credentials.”

TODAY IN GREENWASHING

Reuters: Dutch court finds KLM ads were misleading in ‘greenwashing’ case
Toby Sterling and Joanna Plucinska, 3/20/24

“A Dutch court ruled on Wednesday that KLM had misled customers with an advertising campaign aimed at improving the company’s environmental image, in a case of so-called “greenwashing,” Reuters reports. “The decision, which comes at a time when regulators are more closely scrutinising environmental claims, will serve as a benchmark for airlines on what they can say publicly about their efforts to reduce greenhouse gas emissions. “A number of advertisements made by KLM in the past were misleading and therefore illegal,” the court said in a summary of judges’ written decision, adding that some company claims about sustainability had been too vague. In others, “KLM paints a too-rosy picture” about measures it is taking to reduce its emissions, such as using more biofuel or planting trees, it said. “Those measures only marginally lessen environmental impacts and give the wrong impression that flying with KLM is sustainable,” the court said… “Environmental groups told Reuters it was a landmark decision. Claims such as those made by KLM “are common across the (aviation) industry and we think this is being very closely watched,” lawyer Johnny White of ClientEarth, which advised Fossil Free, the Dutch group which led the case against KLM, told Reuters.”

Enbridge: Embracing identity, overcoming obstacles, igniting a love of learning
3/20/24

“Taught alongside standard subjects like math and history, culture is embedded in the land-based learning curriculum at Mother Teresa Middle School in Regina, and helps young learners—70% of whom are Indigenous—know and connect with who they are through a commitment to truth and reconciliation,” according to Enbridge. “…In support of MTMS’ important mission, Enbridge contributed a $110,000 Fueling Futures grant in late 2023—$50,000 in support of the cultural and-based learning program, $50,000 to help purchase a new school bus, and $10,000 for the school’s holiday fundraising campaign… “Their mission aligns with our long-held commitment to strengthen relationships with Indigenous communities and advance reconciliation, as outlined in our Indigenous Reconciliation Action Plan… “The students know they can rely on us. They have a place that has their back. We want them to become all that they can be,” Koop Sawatzky continues. “Because of supporters like Enbridge, we are making a lasting impact.”

OPINION

Utility Dive: FERC needs a quorum to function. Tomorrow’s Senate hearing puts that work on the line.
Amy Andryszak is president & CEO of the Interstate Natural Gas Association of America, 3/20/24

“Amidst global unrest, geopolitical tensions and rapidly growing energy demand, reliability and affordability remain paramount to the United States’ energy, economic and environmental future. The Federal Energy Regulatory Commission is at the center of it all, and the confirmation hearing tomorrow in the Senate Energy & Natural Resources Committee to consider three nominees to the commission is essential to shaping an energy future that prioritizes security, dependability and lower costs to consumers,” Amy Andryszak writes for Utility Dive. “Widely regarded as one of the most reliable, dispatchable fuel sources, natural gas accounts for roughly 43% of U.S. power generation, ensuring our lights turn on and homes are warm… “By law, FERC needs a minimum of three commissioners to function. Currently, the commission only has three commissioners with one set to leave at the end of her term in June. If FERC loses quorum, vital natural gas projects may be delayed, stalling economic growth and hindering U.S. producers’ ability to meet energy demands. Representatives across the energy value chain have outlined the clear need for the commission to permit new interstate pipelines. Over the past several years, regions across the U.S. have experienced increased power outages due to inclement weather events. Both the electric grid and the natural gas pipeline system have experienced supply shortages in these extreme weather events, underscoring the need for more — not less — natural gas infrastructure to ensure adequate natural gas supplies reach the regions in need… “Simply put: the confirmation hearing tomorrow in the Senate Energy & Natural Resources Committee for three FERC commissioner nominees is essential to shaping an energy future that prioritizes a secure, reliable and sustainable energy system.”

Cato Institute: FERC Nominees Can Avoid Pipeline Politics by Following the Law
Travis Fisher, 3/20/24

“Tomorrow, the Senate Committee on Energy and Natural Resources (ENR) will hold a confirmation hearing for three new nominees to the Federal Energy Regulatory Commission (FERC)—David Rosner, Lindsay See, and Judy Chang. If confirmed, these nominees would represent a majority of votes on the five‐​commissioner panel and help shape the future of electricity and natural gas regulation in America,” Travis Fisher writes for the Cato Institute. “The best (read: least bad) option from a libertarian perspective is for the future commissioners to uphold FERC’s organic statutes. In these statutes from the 1930s—the Federal Power Act (FPA) and the Natural Gas Act (NGA)—Congress has already answered the major policy questions that have plagued FERC in recent years, including the question of whether FERC should continue to approve natural gas pipelines despite their greenhouse gas (GHG) emissions (so long as there are willing natural gas customers, the answer is yes). Based on my reading of the FPA and NGA, Congress dictated that (1) electricity should be reliable and available at just and reasonable rates, and (2) supplying natural gas to American consumers is in the public interest… “Still, administrative agencies like FERC should avoid overstepping their statutory bounds and subjecting energy markets to unnecessary intervention and political uncertainty. Paraphrasing Hippocrates, FERC nominees should “first, do no harm.” “…Perhaps the most critical policy question before FERC is whether to attempt—once again—to give itself climate authorities Congress never granted. Commissioner Mark Christie noted in his dissent against the now‐​draft policy statements that there is no textual support in the NGA for FERC to deny a pipeline application due to potential upstream and downstream GHG emissions. Commissioner Christie wrote: “Whether this Commission can reject a certificate based on a GHG analysis—a certificate that otherwise would be approved under the NGA—is undeniably a major question of public policy. It will have enormous implications for the lives of everyone in this country, given the inseparability of energy security from economic security.”

Financial Times: Wall Street is letting Orwellian doublethink kill climate action
Pilita Clark, 3/21/24

“Only a fool would say the people running the world’s top financial companies are fools. But when historians look back at Wall Street’s response to climate change in the third decade of the 21st century, they will see much that looks deeply unwise,” Pilita Clark writes for the Financial Times. “Exhibit one: the growing number of financial giants pulling back from climate action in the face of specious campaigns against so-called “woke capitalism”. In the past five weeks, JPMorgan, State Street, Pimco and Invesco have all quit Climate Action 100+, an international investor coalition that pushes big companies to address global warming. BlackRock, the world’s biggest money manager, also scaled back its involvement with the group. Vanguard, the second-biggest asset manager, never joined up but has deserted another large climate alliance, the UN-backed Net Zero Asset Managers initiative. Separately, a sister net zero group for insurers has suffered such an exodus of members that some thought it would collapse.  These defections matter. The world is warming faster than scientists expected. Fossil fuel emissions must come down pronto… “Instead, we’re seeing the reverse. Big investors are not merely distancing themselves from clubs they recently joined. They have also contributed to a steep plunge in support for shareholder resolutions aimed at pushing companies to do more on climate change and social issues. They may plead that climate resolutions have grown more demanding, and shunning fossil fuels when energy prices are high risks breaching their duty to maximise returns. But they also know that ultimately, this business-as-usual approach poses a powerful risk to those returns. All this reflects the rising success of US Republicans who claim “woke corporations” that take ESG factors into account and join industry climate alliances are putting politics above profits, with a leftwing agenda that could violate antitrust laws. Their victories show how easy it is to manipulate language, deny basic facts and deploy the process of “doublethink” that George Orwell warned of more than 70 years ago… “Here’s another for all the firms that have retreated from climate action instead of making the increasingly necessary case for it: why did you cave in to such disingenuous and flawed attacks in the first place?”