EXTRACTED: Daily News Clips 4/2/24

PIPELINE NEWS

• E&E News: Mountain Valley pipeline land fight returns to Supreme Court

• E&E News: Feds tout revival of fish that vexed Mountain Valley pipeline

• WHBF: CO2 pipeline forum set for Port Byron

• Press release: Enbridge completes sale of its interests in Alliance Pipeline and Aux Sable

• Reuters: Summit Midstream launches open season on natural gas pipeline

WASHINGTON UPDATES

• Reuters: Biden’s oil boom: How fossil fuels thrived despite the White House’s climate policies

• Bloomberg: Hearing on LNG export pause’s effect announced

• E&E News: Johnson ties LNG exports to Ukraine aid package

• Reuters: US judge strikes down Biden highway climate rule for states

• Oil City News: Court Validates BLM’s Climate Analysis, Dings Agency For Failing To Show How It Factored In Oil And Gas Lease Sale 

• E&E News: GOP climate leader pitches marine carbon removal as fossil fuel fix

• E&E News: How do you ensure hydrogen is ‘clean’? Treasury rules draw fire.

• Guardian: Election of Donald Trump ‘could put world’s climate goals at risk’

STATE UPDATES

• Colorado Sun: Colorado lawmakers reject proposed ban on new oil and gas drilling after 2030

• Louisiana Illuminator: Where will Exxon store 10 million cubic tons of CO2 annually? It’s a trade secret.

• E&E News: Wyoming’s largest utility eyes CCS projects on coal plants

• Environmental Health News: Residents fear Pennsylvania, West Virginia chemical recycling proposals will deepen fossil fuel ties and pollution problems

• NM Political Report: District court judge allows industry groups to intervene in oil and gas lawsuit

• Oregonian: Zenith Energy violated city code by not reporting lobbying, city auditor says

• E&E News: Oil industry lawsuit asks to hit brakes on California data reporting law

EXTRACTION

• The Hill: US was world’s largest liquified natural gas exporter last year

• Reuters: Canada ‘not interested’ in investing in LNG facilities, energy minister says

• Reuters: Canada’s Indigenous peoples eye big energy deals, await Trudeau loan promise

• Reuters: Factbox – Indigenous investment in Canadian energy projects

• Wall Street Journal: The Climate Scientist Fossil-Fuel Companies Can’t Stand

CLIMATE FINANCE

• Utility Dive: SEC asks 8th Circuit not to pause climate rule pending challenges

• DemocracyNow: ESG Funds Under Attack: Why Republicans Are Targeting Socially Responsible Investing

OPINION

• Tri-City Record: Thinking about future uses of produced wastewater from oil operations

• Utility Dive: Don’t give up on green hydrogen

• Wall Street Journal: Green Shareholders Try to Sabotage America’s Energy Industry
  

PIPELINE NEWS

E&E News: Mountain Valley pipeline land fight returns to Supreme Court
Niina H. Farah, 4/2/24

“Virginia landowners are making a last-ditch request to the Supreme Court to allow their case against the Mountain Valley pipeline to continue — despite legislation from Congress blocking lawsuits against the project,” E&E News reports. “Cletus and Beverly Bohon are back with a new Supreme Court petition following a federal appeals court ruling in February that rejected the landowners’ constitutional challenge that aims to transform Federal Energy Regulatory Commission authorizations for new natural gas pipelines. The landowners last year convinced the high court to keep their eminent domain fight on life support after procedural disputes over which court could hear their case overshadowed the substance of their claims. In their new petition docketed March 22, the Bohons and other challengers are asking the Supreme Court to intervene again so that they can continue their fight to overturn what they say is FERC’s unconstitutional practice of delegating its power to condemn land to private pipeline developers.”

E&E News: Feds tout revival of fish that vexed Mountain Valley pipeline
Michael Doyle, 4/1/24

“The Roanoke logperch, a 6-inch-long fish that has at times complicated plans for the Mountain Valley pipeline, has now rebounded enough to warrant removal of Endangered Species Act protections, the Fish and Wildlife Service announced Monday,” E&E News reports. “Confined to only 14 streams when listed as endangered in 1989, the Roanoke logperch now inhabits upward of 31 streams throughout its range in Virginia and North Carolina, according to the federal agency. “Over time, the Roanoke logperch has benefited from the protections and resources provided by state and federal laws and regulations,” FWS stated. The agency added that the fish’s ESA listing “affected the course of large proposed and completed projects,” citing as one example a Roanoke River flood control project that “spanned multiple years” and was modified to minimize silt runoff, reduce the number of fish that were killed and maintain water quality.”

WHBF: CO2 pipeline forum set for Port Byron
Linda Cook, 3/28/24

“A discussion about a CO2 pipeline will be held Wednesday, April 3, in Port Byron, according to a news release,” WHBF reports. “What You Need to Know – Updates on Carbon Capture & Sequestration/CO2 Pipelines; Efforts in Springfield -What We Can Do Right Now” will be presented by Central Illinois Healthy Community Alliance and the Coalition to Stop CO2 Pipelines at 6 p.m. Wednesday, April 3… “The discussion will focus on major issues for Illinois citizens regarding carbon capture and sequestration (CCS). Wolf Carbon Solutions intends to refile an application with the Illinois Commerce Commission for a carbon dioxide (CO2) pipeline planned to cross the Mississippi River north of Port Byron, continuing southeast through Rock Island County into Henry County and further south, the release says. “Just as with carbon dioxide pipelines, there are significant regulatory gaps at both the Federal and State levels concerning CCS and how this technology would impact property owners and groundwater resources including a significant lack of knowledge about how to stop CO2 sequestered underground from leaking,” according to the release… “According to the release, “This community was not included in the company modeling for being at any risk. However, 200 people were evacuated and 45 went for hospital emergency treatment. Some individuals have lingering health issues from being in the CO2 plume area. High-pressure carbon dioxide pipelines are much more hazardous than oil or methane (natural gas) pipelines partly because of the much higher pressure in the pipeline.”

Press release: Enbridge completes sale of its interests in Alliance Pipeline and Aux Sable
4/1/24

“Enbridge Inc. announced today the closing of the agreement to sell its 50.0% interest in Alliance Pipeline and its 42.7% interest in Aux Sable to Pembina Pipeline Corporation for $3.1 billion, previously announced on December 13, 2023… “The divestiture represents a key element of Enbridge’s financing plan. The sale proceeds will fund a portion of the Company’s strategic U.S. gas utilities acquisitions and be used for debt reduction.”

Reuters: Summit Midstream launches open season on natural gas pipeline
4/1/24

“Pipeline operator Summit Midstream Partners on Monday launched a non-binding open season to gauge interest for services of a natural gas pipeline running from the Delaware Basin in New Mexico and Texas to the Waha hub in West Texas,” Reuters reports. “The open season for the 135-mile Double E pipeline will run through April 29, the company said in a statement. The pipeline can move 386 million cubic feet per day (bcfd), and is jointly owned by Summit and Exxon Mobil, with Summit holding a 70% stake.”

WASHINGTON UPDATES

Reuters: Biden’s oil boom: How fossil fuels thrived despite the White House’s climate policies
Prinz Magtulis, Nichola Groom, Jarrett Renshaw and Moira Warburton, 3/28/24

“The counter-intuitive fossil fuel boom under Biden reflects an awkward truth for his supporters and detractors alike ahead of the November elections, proving that what happens in globally interconnected markets like oil and gas is often well outside the immediate control of the person in the White House,” Reuters reports. “In Biden’s case, Russia’s invasion of Ukraine pushed oil and gas prices so high that many producers worldwide made record profits, not just those in the United States. The global economic recovery that followed the darkest days of the COVID pandemic also rapidly pumped up demand for fossil fuels. The profits of the top five publicly traded oil companies, for example — BP, Shell, Exxon, Chevron, and TotalEnergies — amounted to $410 billion during the first three years of the Biden administration, a 100% increase over the first three years of Donald Trump’s presidency, according to data compiled by Reuters… “Jobs growth in U.S. fossil fuels also far outpaced that in the renewable energy industries Biden has been promoting to fight climate change, according to the data… “Trump, Biden’s Republican presidential challenger this November, nonetheless frequently uses Biden’s energy policy as a punchline at his campaign rallies, promising to “drill baby, drill” and restore America’s energy independence when he returns to the White House — even as the U.S. cements its position as a fossil fuel superpower. Biden’s supporters, meanwhile, rarely, if ever, tout the lofty oil and gas performance, focusing instead on his push for a green economy through lucrative subsidy packages for solar, wind, electric vehicles and other clean energy technologies that have sparked new manufacturing projects across the country… “The White House told Reuters that the high U.S. oil and gas output is helping, not hurting, U.S. efforts to decarbonize the economy because it ensures steady energy supply in the meantime… “Among his biggest actions: He canceled the Keystone XL Pipeline project to bring in more Canadian crude to U.S. refineries, paused new LNG export permits pending an environmental review, reduced the federal oil leasing schedule, and is using the regulatory system and tax credits to speed up the transition to electric vehicles and renewables.”

Bloomberg: Hearing on LNG export pause’s effect announced
Katrice Eborn and Kellie Lunney, 4/2/24

“Republicans on the House Energy and Commerce Committee have scheduled a field hearing on the Biden administration freeze on new licenses to export liquefied natural gas,” Bloomberg reports. “The field hearing, to be held in Port Arthur, Texas, is planned for April 8. “Workers, families, and the people living in energy producing communities, like Port Arthur, benefit from the energy industry,” panel Chair Cathy McMorris Rodgers (R-Wash.) and Energy subcommittee Chair Jeff Duncan (R-S.C.) said in a statement to announce the hearing. “This hearing will be an opportunity to hear firsthand from local leaders about the importance of the LNG industry for their community and beyond,” they added… “Speaker Mike Johnson (R-La.) indicated in a Fox News interview Sunday evening that overturning the freeze would be attached to a Ukraine aid bill.”

E&E News: Johnson ties LNG exports to Ukraine aid package
Kelsey Brugger, 4/1/24

“House Speaker Mike Johnson plans to use President Joe Biden’s liquefied natural gas export permitting “pause” as a bargaining chip to advance Ukraine aid,” E&E News reports. “The Louisiana Republican said Sunday he would try to move bipartisan national security supplemental spending legislation that includes several “innovations,” including boosting American energy. “We want to unleash American energy,” he said on Fox News. “We want to have natural gas exports that will help unfund Vladimir Putin’s war effort there.” Johnson’s office declined to provide more details about what exactly the speaker was looking for. But a person familiar with the matter, who was granted anonymity to speak freely, told E&E there have long been discussions about ways to reverse Biden’s LNG export permitting pause.”

Reuters: US judge strikes down Biden highway climate rule for states
David Shepardson and Nate Raymond, 3/28/24

“A U.S. judge in Texas struck down a climate rule adopted by the Biden administration requiring states to measure and set declining targets for greenhouse gas emissions from vehicles using the national highway system,” Reuters reports. “Texas had sued the U.S. Department of Transportation (DOT) in December, arguing the agency lacked legal authority to enact the rule. A separate lawsuit was filed by 21 other states. In a decision issued late on Wednesday, U.S. District Judge James Wesley Hendrix, who was appointed by former President Donald Trump, said he agreed with Texas in its case that “the rule was unauthorized.” “…Transportation Secretary Pete Buttigieg said in December the “new performance measure will provide states with a clear and consistent framework to track carbon pollution and the flexibility to set their own climate targets.”

Oil City News: Court Validates BLM’s Climate Analysis, Dings Agency For Failing To Show How It Factored In Oil And Gas Lease Sale 
3/29/24

“The Bureau of Land Management ‘reasonably exhausted available tools’ to analyze the climate implications of June 2022 oil and gas lease sales in Wyoming and five other western states, but it failed to show its work or explain how the analysis factored into its decision to proceed with the sales, particularly in Wyoming,” Oil City News reports. “However, the sale in Wyoming, which included 122 lease parcels spanning some 120,000 mineral lease acres, is largely invalidated based on vagueness in the bureau’s climate analysis decision making, as well as failures to adequately consider impacts to drinking water and wildlife. But what that will mean in practice has yet to be determined by the court. That’s the upshot of two separate rulings handed down Friday by U.S. District Court Judge Christopher R. Cooper regarding two separate lawsuits brought by conservation groups challenging the sales.”

E&E News: GOP climate leader pitches marine carbon removal as fossil fuel fix
Corbin Hiar, 3/29/24

“A vice chair of the Conservative Climate Caucus is pushing for Congress to spend $165 million on efforts to increase the carbon-absorbing capacity of the world’s oceans,” E&E News reports. “Rep. Buddy Carter’s “Ocean Restoration Research and Development Act,” or H.R. 7797, offers a glimpse of how he and other Republicans might respond to rising temperatures if they win control of Congress or the White House in November. The idea, the Georgia Republican explained, is to shift the focus from weaning the world off oil, gas and coal to scaling up nascent technologies to clean up their emissions. “Instead of just talking about eliminating all fossil fuels and going only with renewable energy, we need to look at other ways that we can improve our carbon absorption,” Carter told E&E News on Thursday. “And this is one way that we can do it right here.”‘ Scientists say industrial-scale carbon removal will be necessary in the coming decades to avoid catastrophic climate change. But those efforts must be in addition to steep emissions cuts, they say, and not an excuse to keep burning the fossil fuels driving climate change.”

E&E News: How do you ensure hydrogen is ‘clean’? Treasury rules draw fire.
Christian Robles, 4/1/24

“Treasury Department rules for hydrogen tax credits are exposing deep divisions between industry and environmentalists, highlighting the challenge for the Biden administration as it aims to build hubs of “clean” fuel that do not spike emissions,” E&E News reports. “The split was on display last week as the department held its first hearings on the draft rules published in December to receive tax credits under the Inflation Reduction Act, known as 45V. Treasury, which is weighing more than 30,000 comments on the proposal, is aiming to ensure that the industry has ample incentives to grow and will rely only on low-carbon sources for production such as renewables, nuclear and carbon capture. “The results of the final regulations for this tax credit are truly make or break for this industry,” said Frank Wolak, president of the trade group Fuel Cell and Hydrogen Energy Association, at one of the hearings. “At this time, financiers and participants are largely sitting on the sidelines.”

Guardian: Election of Donald Trump ‘could put world’s climate goals at risk’
Fiona Harvey, 3/31/24

“Victory for Donald Trump in the US presidential election this year could put the world’s climate goals at risk, a former UN climate chief has said,” the Guardian reports. “The chances of limiting global heating to 1.5C above pre-industrial levels are already slim, and Trump’s antipathy to climate action would have a major impact on the US, which is the world’s second biggest emitter of greenhouse gases and biggest oil and gas exporter, Patricia Espinosa, who served as the UN’s top official on the climate from 2016 to 2022, told the Guardian. “I worry [about the potential election of Trump] because it would have very strong consequences, if we see a regression regarding climate policies in the US,” Espinosa told the Guardian… “She told the Guardian other countries must continue with climate action even if the US were to renege on its goals under Trump, but the absence of the US would be a significant blow. “What happens in the US has a very big impact in so many places around the world,” she told the Guardian… “On the contentious issue – particularly for the US – of climate finance, Espinosa told the Guardian Biden was now facing difficulty in getting climate finance commitments through a hostile Republican Congress… “Espinosa warned of the opposition to climate action that is being orchestrated around the world. “In the US, we see a very well organised and very strong campaign intending to reduce the perception of the critical nature of action that needs to be taken.”

STATE UPDATES

Colorado Sun: Colorado lawmakers reject proposed ban on new oil and gas drilling after 2030
Mark Jaffe, 3/29/24

“A bill to ban new oil and gas drilling in Colorado after 2030 — which sparked a spate of industry TV ads with dire warnings — was rejected Thursday by a bipartisan majority of the Senate Agriculture and Natural Resources Committee after a marathon hearing,” the Colorado Sun reports. “The legislation, Senate Bill 159 — sponsored by two Democratic senators, Kevin Priola, of Henderson, and Sonya Jaquez Lewis, of Boulder County —  would have required state oil and gas regulators to stop issuing new drilling permits starting in 2030, with those permits to be used by 2032… “The bill, however, faced pushback at the hearing from the industry, local and country governments, which depended upon severance taxes to fund schools and services, business groups, such as the Denver Metro Chamber of Commerce, and individuals, many of whom live and work in oil and gas areas. API-Colorado, an industry trade group, had run TV ads prior to the hearing calling the legislation “extreme” and saying it could jeopardize school funding and 300,000 jobs. About 50,000 people work directly in the Colorado oil and gas industry… “The bill did draw support from a wide range of environmental and grassroots groups and some public officials. In all, more than 200 people testified over nine hours. The fiscal note for the bill estimated a loss to the state of $305 million in revenue annually by 2035, primarily in severance taxes and lease funds. Those taxes make up a significant portion of local funding for schools, fire districts and other services.”

Louisiana Illuminator: Where will Exxon store 10 million cubic tons of CO2 annually? It’s a trade secret.
SARA SNEATH, 4/1/24

“While two dozen carbon capture projects are proposed in Louisiana, figuring out exactly where companies plan to inject carbon dioxide underground for storage is a bit of a mystery,” the Louisiana Illuminator reports. “That’s because a state law passed in 2021 regulating carbon capture includes a provision allowing companies to claim a wide range of project information — including location — as trade secrets. The state law mirrors a federal provision that also allows companies to classify the location of their injection site as “proprietary business information” (PBI), which means that, according to the U.S. Environmental Protection Agency (EPA), the most the agency can say without violating PBI status is the parish or county where carbon dioxide will be injected into deep geological formations. As a result, people concerned about these projects are unable to evaluate their potential for harm until the time-limited public commenting period, which no project in Louisiana has reached yet. Take for example, the case of David Levy, who served on Louisiana’s Oilfield Site Restoration Commission and was concerned about a potential conflict of interest with a carbon capture and storage (CCS) project proposed by ExxonMobil. Levy has been trying to figure out why the Department of Energy and Natural Resources (DENR) spent more than $900,000 plugging and cleaning up an orphaned wastewater well site on ExxonMobil’s property in Vermilion Parish, about 40 miles southwest of Lafayette, before more polluting and dangerous orphaned well sites. He suspected that Exxon asked the state to clean up the well site in preparation for a carbon capture project in the parish. But Levy was unsure of the exact location where the project’s Class VI injection well — used for long-term storage of carbon dioxide deep underground — would be drilled. DeSmog filed a public records request for communications between DENR decision-makers and ExxonMobil staff to find clues as to why the state prioritized the saltwater disposal well, called Freshwater City, and if it had anything to do with Exxon’s future plans to store carbon in the parish. The internal emails DeSmog received in response didn’t prove ExxonMobil directed the state to clean up a well abandoned by a smaller, bankrupt oil company on its property. But the records did show locations Exxon considered for their carbon capture project: on state lands, beneath White Lake Wetlands Conservation Area and Rockefeller Wildlife Refuge. As DeSmog tracked down the location of Exxon’s carbon injection site, the project changed locations and was later put on hold. Still, the proposed project raises red flags about the lack of transparency surrounding CCS permitting in the state, even when projects are proposed for state lands… “I don’t know why they want to do this on state lands. It makes no sense either,” he told DeSmog. “If that place being cleaned up gets tied to CCS in any manner, then it was just a gift to Exxon.”

E&E News: Wyoming’s largest utility eyes CCS projects on coal plants
Jason Plautz, Carlos Anchondo, 4/2/24

“Electricity giant PacifiCorp is considering carbon capture retrofits to several Wyoming coal plants, despite previous concerns about the cost and viability of the technology,” E&E News reports. “The company’s Rocky Mountain Power subsidiary announced last week that it is teaming up with climate technology company 8 Rivers Capital and South Korean conglomerate SK Group to explore carbon capture at either its Wyodak coal plant near Gillette or the Dave Johnston coal plant near Glenrock. It’s also weighing an additional project on its coal-fired Jim Bridger power plant in the state. “The partnership and collaboration announced today is a major step forward in determining if carbon capture technologies can bring benefits to our customers in Wyoming at a reasonable cost,” James Owen, Rocky Mountain Power’s vice president for environmental, fuels and mining, told E&E. The moves put PacifiCorp — the largest power provider in Wyoming — in the race to build the second commercial-scale carbon capture and storage (CCS) project on a U.S. coal plant.”

Environmental Health News: Residents fear Pennsylvania, West Virginia chemical recycling proposals will deepen fossil fuel ties and pollution problems
Kristina Marusic, 4/1/24

“When Sandy Field first heard about the plan to build a new chemical recycling facility in her community in Point Township, Pennsylvania, she thought it sounded like a great idea,” Environmental Health News reports. “The plastic waste crisis is a real problem and I thought this sounded like a good solution,” she told Environmental Health News (EHN). “But then I went to the company’s open house and did some more research and I started to realize what a toxic process they’re proposing, taking 450,000 tons of plastic, melting it and making chemicals out of it right next to our river.” “…Field, who lives about four miles from the proposed site, joined a campaign to stop the plant, citing concerns about air emissions and discharges of unregulated pollutants including microplastics and “forever chemicals”(commonly known as PFAS) into the Susquehanna River. There are proposals in the works for similar chemical recycling plants across the country. According to a 2023 report by the nonprofit activist organization Beyond Plastics, 11 such facilities had already been constructed in the U.S. as of September 2023, with one closing this year… “Local officials have had mixed reactions to the proposal, with some welcoming the temporary construction jobs the project would bring to the region and others expressing concern about environmental health impacts. In 2020, former Pennsylvania Governor Tom Wolf signed into law a bill exempting chemical recycling facilities from having to obtain a solid waste permit. The Encina plant had already been proposed at the time and it remains the only proposed chemical recycling facility in the state, so the bill is seen as having been passed specifically to benefit Encina. Pennsylvania is one of 24 states — including Ohio, West Virginia, Virginia, Kentucky — that have passed similar laws, which the American Chemistry Council has lobbied for, to reclassify chemical recycling facilities as manufacturing rather than waste facilities, which reduces regulatory oversight and makes it easier for these companies to obtain public subsidies.”

NM Political Report: District court judge allows industry groups to intervene in oil and gas lawsuit
Hannah Grover, 4/1/24

“A state district court judge approved a request by the Independent Petroleum Association of New Mexico to intervene in a lawsuit brought against state officials and agencies that could result in significant changes to the oil and gas industry,” according to NM Political Report. “New Mexico First Judicial Court Judge Matthew Wilson ruled that the industry association could be significantly impacted by the outcomes of the case and that its interests were not adequately represented by the state defendants. The plaintiffs allege that New Mexico agencies and officials have violated the state’s constitutional duty to protect residents from pollution created by the oil and gas industry. Gail Evans, an attorney with the Center for Biological Diversity who is representing the plaintiffs, argued that the IPANM does not have the legal standing to intervene.  “This case targets the action and inaction of the state and the harms that the state has caused plaintiffs by authorizing oil and gas production. Plaintiffs have not sued private companies, or private actors because private actors cannot violate the constitution,” Evans said. She argued that the IPANM does not have substantial interest in the case and therefore should not be allowed to intervene. Additionally, she said allowing them to intervene would delay the case.”

Oregonian: Zenith Energy violated city code by not reporting lobbying, city auditor says
Gosia Wozniacka, 3/28/24

“Zenith Energy attempted to influence city officials by communicating directly with city directors and commissioners to gain approval of a controversial land use document that allows the company to continue doing business in Portland, according to an investigation released Tuesday by the city auditor,” the Oregonian reports. “City Auditor Simone Rede’s office found that Zenith, a Texas-based fossil fuel company, engaged in improper lobbying right before the city gave Zenith the stamp of approval in October 2022. Zenith had failed to register as a lobbying entity, auditors said. The unexpected approval of a so-called land-use credential for Zenith came after the city had previously denied it and defended that denial in court. The approval is key in Zenith gaining a new air quality permit with the Oregon Department of Environmental Quality for its terminal. The DEQ is currently reviewing Zenith’s air quality permit application and will launch a public comment period and public hearing later this spring. The audit’s findings serve as a warning and do not entail any fines… “Environmental, labor and community organizations accused the city of giving Zenith special treatment and conducting backroom negotiations to obtain the land use credential, known formally as a Land Use Compatibility Statement or LUCS… “In 2022, officials at the City of Portland — including Commissioners Carmen Rubio and Dan Ryan — plotted behind closed doors with Zenith to rush new permissions to allow the oil company to continue running oil trains through Portland neighborhoods,” Nick Caleb, an attorney with the Breach Collective, a Eugene-based climate justice advocacy organization that tracks and opposes Zenith’s operations, told the Oregonian… “I’m glad that the City Auditor is holding Zenith accountable for its part, and now we need state regulators to hold city officials accountable as well.”

E&E News: Oil industry lawsuit asks to hit brakes on California data reporting law
Wes Venteicher, 3/29/24

“A trade association representing independent gas stations and fuel suppliers sued the California Energy Commission on Tuesday seeking to slow down an oil oversight law championed by Gov. Gavin Newsom,” E&E News reports. “The California Fuels and Convenience Alliance lawsuit challenges the CEC’s use of emergency rulemaking authority to rapidly impose new oil market reporting data requirements on the industry and to bypass the California Environmental Quality Act. Newsom signed SBX 1-2 last spring to try to bolster oversight after lambasting the oil industry for “gouging” consumers with gas prices of more than $6 per gallon. He has pressed the agency to quickly move to prevent future spikes even as the state tries to wind down fossil fuel use to meet its climate goals. The CEC expanded the data it collects on oil market transactions last summer to inform its development of new regulations. The agency is tasked with deciding whether to impose a first-in-the-nation cap on oil refiners’ profits under the law.”

EXTRACTION

The Hill: US was world’s largest liquified natural gas exporter last year
RACHEL FRAZIN, 4/1/24

“The U.S. was the world’s largest exporter of liquified natural gas (LNG) in 2023, according to federal data released Monday,” The Hill reports. “U.S. exports of the fossil fuel last year surpassed those of major exporters Qatar and Australia, and it amounted to 12 percent more American gas shipped than in 2022, the independent Energy Information Administration said. The increase comes as Europe, the primary customer for U.S. gas exports, is looking to move away from another major supplier, Russia, in the wake of Russia’s 2022 invasion of Ukraine. It also comes as the Biden administration is facing increasing political pressure — particularly from climate activists — over its natural gas exports. In response to objections to the nation’s growing gas exports, the administration paused approvals for some new natural gas export projects earlier this year — though that pause does not impact existing exports or projects that are already under construction. Experts have also debated the environmental impacts of U.S. natural gas exports, given that the fuel does contribute to climate change, but displaces even-dirtier coal in some nations.” 

Reuters: Canada ‘not interested’ in investing in LNG facilities, energy minister says
3/31/24

“Centre Block Canada is not interested in subsidizing future liquefied natural gas (LNG) projects, including electrification of projects currently in the works, Energy and Natural Resources Minister Jonathan Wilkinson said in a television interview on Sunday,” Reuters reports. “Countries including Greece, Germany and Japan have expressed interest in purchasing Canada’s LNG while the United States has paused expansion of American LNG exports. “The government is opposed to using government money to fund inefficient fossil fuel subsidies… We are not interested in investing in LNG facilities,” Wilkinson said on CTV. “That’s the role of the private sector. They need to assess the business case and make the investments.” The minister said meeting a 2030 target for reducing greenhouse gas emissions will require that LNG production rely on clean electricity.”

Reuters: Canada’s Indigenous peoples eye big energy deals, await Trudeau loan promise
4/2/24

“Canada’s First Nations are eyeing their biggest opportunities yet to invest in multi-billion-dollar energy projects from pipelines to power lines, hinging on Prime Minister Justin Trudeau keeping a promise this spring to make the deals easier to finance,” Reuters reports. “Trudeau’s government will release its budget April 16 and has said it will include plans to guarantee loans for Indigenous communities investing in major resource projects. The government, which is trying to cut greenhouse gas emissions, has not said whether oil and gas projects will be included but if they are then they would represent some of the biggest Indigenous investment opportunities, from the government-owned Trans Mountain oil pipeline to TC Energy’s Coastal GasLink pipeline. At least 38 Canadian energy projects were announced with Indigenous investment between 2022 and 2024, ranging in value from C$13 million to C$14.5 billion ($10.69 billion), according to the Fasken law firm, which has worked on some of the projects. Enbridge is willing to sell Indigenous stakes in all types of assets, including North America’s biggest oil pipeline network, the Mainline, executive vice-president of liquids Colin Gruending told Reuters, adding that a Mainline deal would be complex because it crosses the Canada-U.S. border. “Being open to all forms of energy, I think that’s important,” Gruending told Reuters of the federal guarantee. “If we’re going to involve more nations quicker, we need to open it up.” “…For energy companies, Indigenous partnerships provide capital infusions and a way to speed projects through approval from provincial governments that in some cases require First Nations equity.”

Reuters: Factbox – Indigenous investment in Canadian energy projects
4/2/24

“Canada’s First Nations are buying stakes in Canadian energy projects at an accelerating pace as they seek economic benefits from projects on their land and companies look to raise capital,” Reuters reports. “Here are some of the opportunities and recent deals: UPCOMING: Trans Mountain: The Canadian government owns the C$34-billion ($25.06 billion) oil pipeline that runs from Alberta to the Pacific coast and plans to sell it, at least in part to First Nations. Coastal GasLink: Operator TC Energy signed an option in 2023 to sell 10% of the British Columbia (B.C.) natural gas pipeline to Indigenous communities. Mainline: Enbridge is open to Indigenous part-ownership in the North American oil pipeline network but any deal may be complex since the pipeline runs through both Canada and the U.S., said executive vice-president of liquids Colin Gruending. B.C. Northwest Transmission Line expansion: BC Hydro is talking with K’uul Power, a consortium of First Nations, to buy 50% of the C$3-billion project. RECENT DEALS: Enbridge sold a C$1.12-billion minority stake in seven Alberta oil pipelines to a group of Indigenous communities in 2022…”

Wall Street Journal: The Climate Scientist Fossil-Fuel Companies Can’t Stand
Benoît Morenne, 3/31/24

“Robert Howarth is getting under the skin of the oil-and-gas industry. The gray-haired climate scientist says he doesn’t care,” the Wall Street Journal reports. “Howarth, a methane researcher at Cornell University, said in a recent study that exports of liquefied natural gas from the U.S. were so bad for the climate that ending the use of LNG should be a global priority. The research influenced President Biden’s decision in January to pause new approvals of LNG exports… “The turn of events riled executives throughout the fracking industry—especially at Pittsburgh-based EQT, the country’s largest natural-gas producer… “William Jordan, EQT’s general counsel, told the Journal Howarth has been seeking to influence policymakers at the expense of rigor. He told the Journal Howarth crossed the line between research and advocacy, and his work contributes to a false narrative that shutting down natural gas pipelines and blocking LNG plants helps mitigate climate change. “It’s a problem when the purpose of scientific research shifts from gaining understanding to influencing,” Jordan told the Journal  in the company’s first public remarks about the research… “Howarth, a tenured faculty member at Cornell for nearly 40 years, told the Journal EQT’s rebuke annoyed him but didn’t surprise him. “The oil-and-gas industry has a track record of trying to trash the reputations of scientists whose results they do not like.” 

CLIMATE FINANCE

Utility Dive: SEC asks 8th Circuit not to pause climate rule pending challenges
Lamar Johnson, 4/1/24

“The Securities and Exchange Commission has asked the Eighth Circuit Court of Appeals not to pause the implementation of the agency’s final climate risk disclosure rule, according to a Wednesday filing, after Liberty Energy and Nomad Proppant Services asked to reinstate an administrative stay ordered by another circuit on Tuesday,” Utility Dive reports. “The SEC told the federal court that Liberty Energy — whose case in the Fifth Circuit Court of Appeals previously led the rule to be temporarily halted pending review — has “identified no imminent harm” to stop implementation of the rule. The stay was dissolved when all the cases were consolidated into the Eighth Circuit last month. The agency said Liberty Energy and Nomad have neither followed correct procedures for requesting an administrative stay of a regulation nor proven that there is a need for such emergency relief, according to its filing.”

DemocracyNow: ESG Funds Under Attack: Why Republicans Are Targeting Socially Responsible Investing
3/29/24

“Republicans are on a “crusade” against responsible investing, says Andrew Behar, CEO of the nonprofit group As You Sow that promotes corporate responsibility through shareholder advocacy,” DemocracyNow reports. “His group was subpoenaed to testify before the House Judiciary Committee this week as Republicans probe whether investments that take into account environmental, social and governance (ESG) concerns violate antitrust laws. Republicans have introduced bills in dozens of states across the U.S. to limit state bodies from working with banks and other financial firms that take things like climate change into consideration in their investments. ESG is “a framework for assessing risk,” Behar told DN. “Basic good business says you want to assess and address risk, and that’s what they’re trying to suppress.” “…Republicans currently have introduced 145 bills in 27 states making it illegal to work with banks and asset managers that use environmental, social and governance, or ESG, policies in their investment practices. So far, 18 states have adopted these laws, leading to financial losses at state pension funds and forcing state treasurers to pay premiums on interest for state bonds. The crusade against socially responsible investing is backed by the right-wing judicial activist and Federalist Society co-chair Leonard Leo.”

OPINION

Tri-City Record: Thinking about future uses of produced wastewater from oil operations
Joseph Zupan, Amigos Bravos-Executive Director, 3/29/24

“The term “produced wastewater” refers to wastewater generated from the exploration and production of oil and gas, and unlike other kinds of waters, New Mexico has a lot of produced wastewater,” Joseph Zupan writes for the Tri-City Record. “…However, most produced wastewater is a problem for oil and gas companies, and most of it is reinjected into deep wells for disposal. Oil field operators and other engineers and scientists are exploring ways to benefit from wastewater, such as to irrigate crops. However, hurdles stand in the way of such uses. Produced wastewater contains many constituents that are toxic; for example, it is almost always very saline (“salty”) and can contain other minerals, including arsenic and radium, depending on the local geology. Given that it is commingled with oil and gas, it usually contains toxic constituents found in oil such as benzene, toluene, etc. Additionally, it can contain any number of chemicals that oil and gas operators add to fracking fluids to enhance their processes… “As it stands now, it is prohibitively expensive to treat it to a level that is safe for human or animal consumption, and because it may contain undisclosed “trade secret” chemicals, it is difficult to know how to treat it to remove those constituents… “While we acknowledge the early work of the Produced Water Research Consortium and the breadth and daring of the governor’s proposal for a “strategic water supply,” our position is that using produced wastewater outside the oil field – in agriculture or into surface water bodies – is not safe and should be prohibited. We need to make sure we get it right the first time.”

Utility Dive: Don’t give up on green hydrogen
Clay Norris is the executive director of the Washington Green Hydrogen Alliance, 3/29/24

“…The reality is that we will never achieve a carbon-free economy without green hydrogen and green hydrogen carriers like ammonia, ethanol and formic acid,” Clay Norris writes for Utility Dive. “It is true that the transition to green hydrogen faces significant challenges, including one that the author did not directly cite — government regulations and purity tests that other electricity-consuming industries don’t face. However, we shouldn’t let the fact that it will be hard to make the transition dissuade us from moving as rapidly as possible in that direction. Production costs for green hydrogen are indeed a big challenge and the Inflation Reduction Act provided incentives to assist with the cost differential between grey and green hydrogen. Even so, in most cases it is true that if there is no cost to emit carbon, fossil fuels will be a cheaper way to produce hydrogen. It is also true that sourcing renewable energy at all hours will be difficult, if not impossible, in the near future… “In summary, policy-makers should not narrow the applications of green hydrogen research and application, but rather look for ways to incorporate the true societal costs of greenhouse gas emissions into all energy sources. Then we will see what is realistic when it comes to green hydrogen.”

Wall Street Journal: Green Shareholders Try to Sabotage America’s Energy Industry
Michael Toth is a founding partner of PNT Law, based in Austin, Texas, 3/31/24

“When the spring proxy season kicks off in April, executives at public companies should expect a flood of political shareholder proposals focused on issues like climate change rather than traditional business concerns. From 2021 to 2023, the number of environmental and social shareholder proposals jumped 52%. It wasn’t an accident,” Michael Toth writes for the Wall Street Journal. “Weeks after the last presidential election, a well-connected network of asset managers and nonprofits began an effort to use shareholder proposals to push European-style climate policies on U.S. companies and consumers. In December 2020, the Shareholder Rights Group and the Interfaith Center of Corporate Responsibility—the latter an association of religious organizations, other nonprofit groups, unions and investors with more than $2 trillion in total assets—presented a briefing paper to the Biden transition team that called on the new administration to allow shareholder proposals “to set greenhouse gas targets aligned with global climate goals,” in particular the Paris climate accord’s goal of net zero carbon emissions by 2050… “Fortunately, these activists have mostly failed. Shareholders approved only 3% of environmental and social proposals last year. However much corporate leaders say they want to address climate change, the actual sacrifices that European-style climate policies demand are unpopular with U.S. companies… “Taking ideological proponents to court may help investors in another way. It may reveal the degree to which this is a coordinated effort to open the door to purely ideological proposals that undermine shareholder returns.”