EXTRACTED: Daily News Clips 7/25/24

PIPELINE NEWS

• Roanoke Times: Mountain Valley Pipeline again cited for environmental violations

• Law360: FERC Can’t Give Pipeline More Time, Green Groups Say

• Oil & Gas Watch: Data shows Denbury’s carbon pipelines leak more than any other CO₂ pipeline company’s

• Law360: Unions, Energy Groups Back Enbridge 6th Circ. Rehearing Bid

• Reuters: Canada wildfires spread, prompting evacuation alerts, oil production worries

• Guardian: The Trans Mountain contradiction: how can Canada lead on climate while doubling down on oil?

• Ecojustice: Export Development Canada undermines climate commitments yet again with massive loan renewal for Enbridge 

WASHINGTON UPDATES

• E&E News: Harris Kicks Off Campaign, Knocks Trump For ‘Big Oil’ Ties 

• Axios: Big Thing: Fracking Quickly Drills Its Way Into Harris’ Run 

• Heated: When Kamala Harris Sued Obama Over Fracking 

• Wall Street Journal: Oil Billionaires Bet On Trump’s Energy Agenda 

• E&E News: Westerman, Peters Look To Fill NEPA Void 

• U.S. Senate Committee on Natural Resources: Chairman Manchin and Ranking Member Barrasso Announce Upcoming Committee Schedule 

• E&E News: Supreme Court has a shot at stopping another EPA climate rule

• E&E News: Dems release bill to cancel oil leases for collusion

• E&E News: Interior opposed to well-plugging bill over methane testing 

• U.S. Internal Revenue Service: IRS issues guidance for the procedures to claim a credit for utilization of carbon oxide

• E&E News: DOE launches second-ever ‘clean’ hydrogen hub

• U.S. White House Press Office: Biden-Harris Administration Delivers Environmental Justice with Cleaner Air, Clean Water, and Healthier Communities

STATE UPDATES

• Rigzone: Texas LNG Secures 20-Year LNG Agreement with EQT

• Pro Publica: California Isn’t Enforcing Its Strongest-in-the-Nation Oil Well Cleanup Law on Its Largest Oil Company

EXTRACTION

• Reuters: US oilfield firms slash prices as mega-mergers shrink customer base

• Euronews: Carbon purity rules could sink Europe’s capture ambitions, industry group warns

• Food & Watch Watch: New Report Details Massive Impact of Methane Emissions on Near-Term Climate Picture

• Toronto Star: This homeowner ended his natural gas service. Months later, Enbridge charged him hundreds of dollars in surprise fees

CLIMATE FINANCE

• Bloomberg: Oklahoma Judge Blocks Anti-ESG Law Targeting Financial Firms 

OPINION

• Des Moines Register: I welcome a carbon pipeline through my farm. It’ll open markets and preserve farming.

• WSIU: Scherer-Backed Carbon Capture Law Readies Illinois to Grow New Cutting-Edge Jobs

• Hart Energy: Safeguarding the Trend of Accelerating CCUS Adoption

• Heatmap: This Is the Best Permitting Reform Deal We’re Going to Get

PIPELINE NEWS

Roanoke Times: Mountain Valley Pipeline again cited for environmental violations
Laurence Hammack, 7/24/24

“Environmental regulators are imposing more fines against the now operational Mountain Valley Pipeline for problems with muddy runoff that began six years ago, with the start of construction, and continued through to the end,” the Roanoke Times reports. “The company was cited Tuesday by the Virginia Department of Environmental Quality for 22 violations of erosion and sedimentation control regulations. DEQ demanded a fine of $30,500. “It is utterly unsurprising that Mountain Valley Pipeline has been hit once again with tens of thousands of dollars in fines for erosion and sediment violations,” Peter Anderson, director of state energy policy for Appalachian Voices, one of the groups that fought the natural gas pipeline, told the Times. “Throughout its construction, MVP has proven incapable of complying with the law and permit requirements designed to prevent damage to private property and public waters.” It was the third time this year that DEQ sanctioned Mountain Valley. The most recent infractions occurred during the quarterly period that ended June 10 — four days before the 303-mile buried pipeline went into operation.”

Law360: FERC Can’t Give Pipeline More Time, Green Groups Say
Tom Lotshaw, 7/24/24

“Conservation groups are urging the D.C. Circuit to throw out a three-year deadline extension the Federal Energy Regulatory Commission granted for the completion of a southern extension of the controversial Mountain Valley Pipeline,” Law360 reports. 

Oil & Gas Watch: Data shows Denbury’s carbon pipelines leak more than any other CO₂ pipeline company’s
Preet Bains, 7/18/24

“On April 3, a carbon dioxide pipeline ruptured in southwestern Louisiana, near the rural town of Sulphur, releasing more than 100,000 gallons of carbon dioxide,” Oil & Gas Watch reports. “…But it was not the first or even the largest such carbon pipeline leak in recent years, during a time of rapid growth of CO₂ pipelines and carbon capture projects, funded with federal subsidies meant to help combat climate change. In 2020, a CO₂ pipeline rupture in Yazoo County, Mississippi sent 45 people to the hospital. Two hundred residents needed evacuation, which was made more difficult by car engines stalling because of the lack of oxygen. Both leaks had one thing in common: the pipelines were owned by the same company, Denbury Inc… “However, data from the Pipeline and Hazardous Materials Safety Administration (PHMSA) shows Denbury is responsible for more CO₂ leakage than any other CO₂ pipeline company. Since 2010, there have been 76 incidents involving CO₂ pipelines reported to PHMSA, collectively releasing nearly 67,000 barrels of CO₂ into the air. Denbury was responsible for 12, releasing nearly 54,000 barrels, or 81 percent of that amount… “Three of the five largest CO₂ pipeline leaks reported to PHMSA involved Denbury’s CO₂ pipelines, including the April 3 leak in Sulphur, which is number five at just over 2,000 barrels. On average, a leak from one of Denbury pipeline released 4,700 barrels of CO₂… “Denbury’s pipeline leaks are so significant that even if the Satartia rupture were excluded, Denbury would still be responsible for about half of the CO₂ leaked into the air from pipelines… “Denbury’s recent incidents have also revealed weaknesses in the warning systems and emergency response planning for CO₂ pipelines. In Mississippi, Denbury’s modeling had not anticipated a pipeline leak that could reach Satartia, which meant that local responders were not prepared for a CO₂ leak.”  

Law360: Unions, Energy Groups Back Enbridge 6th Circ. Rehearing Bid
Tom Lotshaw, 7/24/24

“Labor unions and energy industry groups are joining Enbridge Energy’s push for the full Sixth Circuit to rehear a panel decision that sent a Michigan lawsuit aiming to shut down the company’s Line 5 pipeline back to state courts,” Law360 reports. 

Reuters: Canada wildfires spread, prompting evacuation alerts, oil production worries
Nia Williams and Mrinalika Roy, 7/24/24

“Hundreds of uncontrolled wildfires burned across western Canada on Wednesday, putting more communities under evacuation alert and raising concerns about the blazes impacting Canadian crude production,” Reuters reports. “There are 433 active wildfires in British Columbia and 176 active wildfires in Alberta, including more than a dozen in the Fort McMurray region, Canada’s key oil sands hub… “Around 25,000 people, including residents and visitors, were forced to evacuate the popular tourist town of Jasper, Alberta, and its surroundings early Tuesday as wildfires neared. The Canadian government-owned Trans Mountain pipeline, which can carry 890,000 barrels per day (bpd) of oil from Edmonton to Vancouver and runs through Jasper National Park, said on Wednesday it was still operating safely and using sprinklers to protect its infrastructure.”

Guardian: The Trans Mountain contradiction: how can Canada lead on climate while doubling down on oil?
Leyland Cecco, 7/25/24

“Like all major rivers winding through the country, Canada’s most controversial oil pipeline is destined for the ocean,” the Guardian reports. “The Trans Mountain pipeline crosses two provinces, threads a national park in the Rocky Mountains, dips underneath bodies of water and passes through dozens of First Nations communities before terminating at a sprawling oil storage facility on the verdant shores of the Pacific. After a decade of fierce protests, cost overruns and construction delays, oil started flowing at the beginning of May, but there was no grand ceremony or ribbon-cutting. Instead, a China-bound Aframax tanker named Dubai Angel departed with 550,000 barrels of diluted bitumen to be sold to global markets. In the coming years, the megaproject will move nearly 900,000 barrels every day. The number of tankers will surge sevenfold… “The pipeline itself has become emblematic of a Canadian contradiction: promises of strong climate action, coupled with billions in fossil fuel investments – and, critics say, massive government subsidies to the oil industry at a moment when the planet needs to move away from fossil fuels… “After a legal challenge by the province of British Columbia, and protests by Indigenous and environmental groups, Kinder Morgan, fearing a messy fight, threatened to abandon the expansion. In response, the federal government took the rare step of buying the pipeline… “The pipeline is now expected to cost more than C$25bn (US$18bn) over budget – all of it in an attempt to get more Canadian oil burned, not less… “Critics ask how pumping more oil is consistent with Canada’s promise to reduce emissions and avert a looming global catastrophe. Its goal to cut emissions by at least 40% below 2005 levels by 2030 is not on pace, as confirmed by a recent report from the government’s own environment commissioner… “The apparent hypocrisy is rationalised by the fact that global emissions pacts, such as the Paris climate agreement, are structured in a way that Canada is not directly punished for increasing oil and gas production… “The phenomenon, she says, is known as the “green paradox”. What it means is that “among the big oil exporters, there’s an incentive to get as much oil and gas to markets while they still can – even the ones that have signed on to the agreement to lower emissions”

Ecojustice: Export Development Canada undermines climate commitments yet again with massive loan renewal for Enbridge 
7/24/24

“Export Development Canada (EDC) has renewed a $200- to $300-million loan to oil and gas giant Enbridge Inc., despite environmental organizations raising the alarm about the serious climate consequences and human rights concerns of this financing,” according to Ecojustice. “EDC is a federal Crown corporation and Canada’s official export credit agency – it has also been a prolific funder of fossil fuels. Just days prior to EDC signing the deal, environmental organizations submitted an analysis to EDC asserting that corporate financing to Enbridge Inc., which has significant plans to expand fossil fuel infrastructure, does not align with the Crown corporation’s climate commitments, nor with international obligations to phase out fossil fuels and reduce greenhouse gas emissions.   In the analysis submitted by Ecojustice on behalf of Above Ground (a project of MakeWay), the Center for International Environmental Law, Environmental Defence Canada, Oil Change International and Stand.earth, major concerns about EDC’s financing of Enbridge are raised. Their submission to EDC highlights the dire impacts of climate change while also citing public reports of human rights risks and violations, and active legal challenges involving Enbridge’s projects from Indigenous groups, impacted communities, and an Attorney General. The submission calls on EDC to examine the implications of continuing to fund fossil fuel companies like Enbridge. The groups are seriously concerned that EDC believes this type of financing is aligned with its and Canada’s climate commitments and obligations… “EDC’s continued fossil fuel financing underscores the need for the federal government to meet its commitment and release a strong implementation plan to phase out public financing of the fossil fuel sector, including by Crown corporations like EDC.” 

WASHINGTON UPDATES

E&E News: Harris Kicks Off Campaign, Knocks Trump For ‘Big Oil’ Ties 
Robin Bravender, 7/23/24

“The vice president traveled to Milwaukee for a campaign rally, where she laid out a case for her own presidency just two days after President Joe Biden dropped out of the race and threw his support behind her,” E&E News reports. “Harris, a former California attorney general, also previewed how she’ll campaign against the former president: as a prosecutor running against a convicted felon… “Trump, she said, “is relying on support from billionaires and big corporations, and he is trading access in exchange for campaign contributions.” “A couple months ago, you all saw that a couple months ago at Mar-a-Lago, he literally promised Big Oil companies, Big Oil lobbyists, he would do their bidding for $1 billion in campaign donations,” Harris said, pointing to reports that Trump asked oil industry executives to donate $1 billion to aid his presidential campaign.”

Axios: Big Thing: Fracking Quickly Drills Its Way Into Harris’ Run 
Ben Geman, Andrew Freedman, 7/23/24

“The most vote-rich swing state will test the political salience of the Biden-Harris energy record — and whether Kamala Harris’ move left in her brief 2019 primary run will help Donald Trump,” Axios reports. “Why it matters: Pennsylvania is likely a must-win for Harris (if she’s indeed the Dems’ nominee), and it’s the second-largest natural gas-producing state after Texas. Driving the news: Republicans are circulating Harris’ endorsement of a fracking ban during her short-lived 2019 White House run — even though she walked it back after becoming Biden’s running mate. Harris also co-sponsored a Senate resolution embodying the Green New Deal, which Republicans have for years sought to link with big-government extremism. Between the lines: “I think that Harris will be more open to attacks on fracking than Biden, given her rhetoric and policy positions before she became vice president,” Christopher P. Borick, who directs the Institute of Public Opinion at Muhlenberg College in Pennsylvania, told Axios. In 2020, Biden lost badly to Trump in portions of southwestern Pennsylvania and southeastern Ohio, at least partly due to his conflicting comments on fracking (and Trump’s attacks on them), political analysts have said.”

Heated: When Kamala Harris Sued Obama Over Fracking 
EMILY ATKIN AND ARIELLE SAMUELSON, 7/23/24

“It was 2016, and California’s coastline was about to get fracked. President Barack Obama’s administration had just finalized plans to allow oil companies to resume offshore hydraulic fracturing and acidizing in the Santa Barbara Channel, determining the controversial practices posed ‘no significant impact’ to the local environment or global climate,” Heated reports. “Enter: Kamala Harris. Following the lead of state environmental groups, the then-California Attorney General sued the Obama administration in December 2016, seeking a halt to new offshore fracking permits. A screenshot from Harris’s 2016 lawsuit against the Obama administration. The lawsuit called the decision to move forward on Pacific Coast fracking ‘arbitrary and capricious, an abuse of discretion, and contrary to the requirements of [the National Environmental Policy Act].’ “We must take every possible step to protect our precious coastline and ocean,” Harris said in a statement alongside the lawsuit. The arguments in Harris’s lawsuit ultimately helped environmental groups convince a federal judge to pause all new Pacific offshore fracking. The injunction remains in place to this day, infuriating the likes of ExxonMobil and the American Petroleum Institute, who tried and failed to get the U.S. Supreme Court to overturn it.”

Wall Street Journal: Oil Billionaires Bet On Trump’s Energy Agenda 
Benoît Morenne, 7/24/24

“Conservative operatives say oil-and-gas donors want to diminish the authority of regulatory agencies such as the Environmental Protection Agency and Interior Department, which slowed drilling permits at the start of the Biden administration,” the Wall Street Journal reports. “Trump has said during the campaign that he plans to quickly make deep cuts and changes at environmental agencies if elected. Oil lobbyists said they hoped that in addition to opening up more federal land for drilling, Trump would target Biden-imposed regulations that oil-and-gas groups have denounced as an attack on the industry. Among them, the EPA has passed the strictest-ever rules on tailpipe emissions from light-duty vehicles, and rules aiming to curb methane emissions from oil and gas production. At the convention, Trump criticized spending on EV-charging infrastructure and said that under his administration, Americans would be able to keep buying gasoline-powered cars. At a recent meeting with Senate Republicans, Trump focused on energy, saying his support for drilling in the Arctic National Wildlife Refuge encapsulates his philosophical differences with the Biden’s administration, which canceled oil-and-gas leases there.”

E&E News: Westerman, Peters Look To Fill NEPA Void 
7/24/24

“House Natural Resources Committee Chair Bruce Westerman (R-Ark.) and Rep. Scott Peters (D-Calif.), a moderate member of the Energy and Commerce Committee, are looking to build upon the long-awaited permitting reform bill released by Sens. Joe Manchin (I-W.Va.) and John Barrasso (R-Wyo.) on Monday,” E&E News reports. “Our Josh Siegel caught up Tuesday with the duo — who are negotiating their own parallel bipartisan permitting proposal — as they huddled together after floor votes to brainstorm how their effort could complement what Peters called a ‘strong first step’ from Manchin and Barrasso. Westerman and Peters said their bill — which they hope to introduce by the end of the year — would address easing reviews under NEPA, the landmark environmental law that does not fall under the jurisdiction of the Energy and Natural Resources Committee that Manchin and Barrasso lead. “There wasn’t much on NEPA,” Westerman told E&E. “Maybe what we do could marry with theirs.”

U.S. Senate Committee on Natural Resources: Chairman Manchin and Ranking Member Barrasso Announce Upcoming Committee Schedule 
7/24/24

“Today, the U.S. Senate Committee on Energy and Natural Resources announced its schedule for next week. The full committee will hold a business meeting on Wednesday, July 31, 2024, at 10:00 a.m. to consider S. 4753, the Energy Permitting Reform Act of 2024.  The hearing will be held in Room 366 of the Dirksen Senate Office Building and will be webcast live on the committee’s website. Archived video will be available shortly after the hearing concludes.”  

E&E News: Supreme Court has a shot at stopping another EPA climate rule
Niina H. Farah, 7/25/24

“The Supreme Court is facing calls to undermine EPA’s efforts to curb planet-warming emissions from the power sector for a second time,” E&E News reports. “But at least some legal observers questioned whether the Biden administration’s power plant rule will meet the same fate on the high court’s “shadow” docket as the Obama-era Clean Power Plan did nearly a decade ago. “For the Supreme Court to grant a stay would be shocking, and truly ominous,” Michael Gerrard, faculty director of the Sabin Center for Climate Change Law at Columbia University, told E&E of President Joe Biden’s rule… “The applicants are asking the justices to put the Biden rule on ice while they and other opponents make their case to a lower court that EPA exceeded its authority. That would include the time it would take for the Supreme Court to consider any appeals. If they get their way, EPA critics could repeat the massive victory they won in 2016, when the Supreme Court stayed the Obama Clean Power Plan — a move that prevented the regulation from ever going into effect… “A court order freezing the Biden rule could mean delays in establishing federal standards to address pollution from the nation’s second-largest source of greenhouse gas emissions. And if former President Donald Trump wins a second term, his administration would likely ensure that the rule is never implemented.” “…It certainly looks like a less likely candidate for a Supreme Court stay than did the CPP or cross-state rule,” Jonathan Adler, a law professor at Case Western Reserve University School of Law, told E&E… “The principal issue here is whether CCS is an adequately demonstrated technology — a purely technical, not legal, issue that is squarely within EPA’s expertise,” Gerrard told E&E. Opponents of the rule say CCS technology is not yet ready to be used at the scale envisioned by the Biden regulation.”

E&E News: Dems release bill to cancel oil leases for collusion
Garrett Downs, 7/25/24

“Massachusetts Democratic Sen. Ed Markey and California Rep. Nanette Barragán introduced legislation to bar oil companies from leasing on federal lands if they are found to be colluding to raise prices,” E&E News reports. “The bill comes after the Federal Trade Commission in May accused a major oil executive of colluding with OPEC nations to artificially inflate oil and gas prices. Democrats have used the accusation as a springboard into the 2024 campaign, seeking to pin the high gas prices rankling voters on Big Oil and the GOP rather than President Joe Biden’s policies. Lawmakers have since piled on the probes, urging the administration to investigate more companies while launching their own congressional investigations.”

E&E News: Interior opposed to well-plugging bill over methane testing 
SCOTT STREATER, 7/24/24

“A senior Interior Department official expressed opposition Tuesday to legislation that backers say would allow states to plug more abandoned and orphaned oil and gas wells,” E&E News reports. “Steve Feldgus, Interior’s principal deputy assistant secretary for land and minerals management, detailed the administration’s opposition to H.R. 7053, from Rep. Glenn Thompson (R-Pa.), in written testimony to the Natural Resources Subcommittee on Energy and Mineral Resources. Feldgus objected to eliminating requirements for states to measure methane leaks before and after plugging a well as a condition for obtaining Infrastructure Investment and Jobs Act funding. The “Orphan Well Grant Flexibility Act,” which Thompson is co-sponsoring with Pennsylvania Democratic Rep. Christopher Deluzio, would make it optional for states to measure methane emissions to qualify for grants. Eliminating this requirement would make it very difficult to gauge the success of the grant program and its impacts on emissions of methane, a volatile greenhouse gas that is helping to drive climate warming, Feldgus wrote.”

U.S. Internal Revenue Service: IRS issues guidance for the procedures to claim a credit for utilization of carbon oxide
7/24/24

“The Internal Revenue Service today issued Notice 2024-60 PDF to provide initial guidance on the credit for the sequestration of carbon oxide. This credit was amended significantly by the Inflation Reduction Act of 2022 (IRA). The notice provided today describes information that must be included in a written report known as the lifecycle analysis (LCA) report and provides the procedures a taxpayer must follow to submit the report along with required supporting information to the IRS and the Department of Energy for review. Before any credit is determined, the IRS must approve the lifecycle analysis of greenhouse gas emissions documented in the LCA report with respect to carbon capture property placed in service on or after Feb. 18, 2018. Accordingly, the IRS must approve the taxpayer’s LCA before the taxpayer may claim the utilization of carbon oxide credit.”

E&E News: DOE launches second-ever ‘clean’ hydrogen hub
Clare Fieseler, 7/25/24

“The Department of Energy launched its second hydrogen hub Wednesday, signing a multistate deal for a $1 billion network in the Pacific Northwest,” E&E News reports. “The hub, known as PNWH2, is the second of seven hubs funded by the 2021 bipartisan infrastructure law expected to come online this year. The announcement, which was applauded by lawmakers from the hosting states of Washington, Oregon and Montana, comes on the heels of last week’s launch of California’s $1.2 billion hub. “Mitigating climate change requires enormous effort and prioritization of resources,” Oregon Democratic Gov. Tina Kotek told E&E. “Today’s announcement marks an exciting step forward in reaching our collective goal to reduce greenhouse gas emissions and ensure a clean energy future.” The infrastructure law provided $7.8 billion dollars for building out regional networks to produce and use clean hydrogen, which envisions producing fuel with low-carbon power or gas tied to carbon capture. DOE selected seven regional hubs in October. PNWH2’s proposed plan includes 19 major projects that span the three states.”

U.S. White House Press Office: Biden-Harris Administration Delivers Environmental Justice with Cleaner Air, Clean Water, and Healthier Communities
7/24/24

“President Biden and Vice President Harris believe that every person has a right to breathe clean air, drink clean water, and live in a healthy community – now and into the future. During his first week in office, President Biden launched the most ambitious environmental justice agenda in our nation’s history. Today, at the first-ever White House Summit on Environmental Justice in Action, the Biden-Harris Administration released detailed progress reports from 24 federal agencies showcasing how the President is delivering for communities that have faced longstanding environmental injustices and inequities. The second annual Environmental Justice Scorecard describes the impacts and benefits of more than $600 billion in federal investments that President Biden has secured over Fiscal Years 2022-2027, including through his Investing in America agenda, for programs that are part of the Justice40 Initiative. The goal of the President’s Justice40 Initiative is to deliver 40 percent of the overall benefits of certain federal investments to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution. The federal agency updates released today outline how these investments – along with new regulatory protections, stronger enforcement of environmental laws, and environmental justice reforms across government – are resulting in cleaner air and water, more affordable clean energy, good-paying jobs, and other real-world benefits that people are experiencing today and will continue to experience for decades to come. In addition to highlighting the unprecedented progress on environmental justice that has been made over three and a half years under President Biden’s leadership, the Administration has in recent days – as part of its fifth Investing in America tour – announced nearly $5 billion in funding awards from programs covered by the Justice40 Initiative… “Today, the Biden-Harris Administration announced additional new steps to further the President’s historic commitment to environmental justice, including new actions to advance Executive Order 14096 on Revitalizing Our Nation’s Commitment to Environmental Justice for All.”

STATE UPDATES

Rigzone: Texas LNG Secures 20-Year LNG Agreement with EQT
Rocky Teodoro, 7/24/24

“Texas LNG Brownsville LLC and EQT Corporation have executed a definitive 20-year tolling agreement for natural gas liquefaction services for two million metric tons per annum (mtpa) of liquefied natural gas (LNG),” Rigzone reports. “The agreement solidifies the two heads of agreement (HOA) signed by Texas LNG and EQT earlier this year, the Glenfarne Energy Transition, LLC subsidiary said in a news release… “Texas LNG is a 4-mtpa LNG export facility to be constructed in the Port of Brownsville, Texas. Texas LNG is “led by an experienced team committed to creating one of the cleanest, lowest emitting LNG export facilities in the world through electric motor drives,” according to the company’s website. Texas LNG will begin construction in 2024 and begin commercial operations in 2028. Earlier in the month, Texas LNG said it signed a non-binding HOA with an affiliate of an undisclosed top-tier credit-rated market participant for LNG… “Texas LNG is in advanced negotiations with several potential offtakers for the remaining volume of the project, according to the release… “Texas LNG also signed an offtake agreement with Gunvor Group’s subsidiary in Singapore for 500,000 metric tons per annum in March.”

Pro Publica: California Isn’t Enforcing Its Strongest-in-the-Nation Oil Well Cleanup Law on Its Largest Oil Company
Mark Olalde, 7/24/24

“Unplugged oil and gas wells accelerate climate change, threaten public health and risk hitting taxpayers’ wallets. Money set aside to fix the problem covers less than 2% of the impending cost,” Pro Publica reports. “Last October, California passed the nation’s strongest law to address the glut of oil and gas wells that are unplugged and ownerless, many leaking pollutants into the environment. The legislation required that, as part of any sale or transfer of wells, the purchasing company set aside enough money in financial instruments known as bonds to cover the entire cleanup cost of low-producing wells if the companies go out of business without plugging them. It was a striking departure from the piecemeal steps taken by other state legislatures and federal agencies to reduce the number of orphan wells. California lawmakers repeatedly cited ProPublica’s work on the subject as a reason to act. The California Geologic Energy Management Division, the state’s oil regulatory body, announced in late June that the law does not apply to the merger of California Resources Corp. and Aera Energy, two of the three companies that account for the vast majority of the state’s oil and gas production. If the law had been enforced, the deal would have provided billions of dollars in new bonds to ensure taxpayers weren’t eventually left with the cleanup bill… “In other words, because Aera is still listed as the operator of the wells, the state can’t act. That explanation did not appease Carrillo.”

EXTRACTION

Reuters: US oilfield firms slash prices as mega-mergers shrink customer base
Georgina McCartney, 7/24/24

“A wave of mega-mergers among oil producers is forcing the U.S. service companies that drill and hydraulically fracture wells to slash their prices, merge, or risk bankruptcy as they compete for a dwindling number of customers,” Reuters reports. “U.S. oil producers, also known as operators, announced more than $275 billion in deals over the past year and a half, including multi-billion-dollar combinations such as Exxon Mobil and Pioneer Natural Resources. As big producers integrate and become more efficient while raising oil output, there is less work for the oilfield services companies that depend on them, service company executives and energy analysts told Reuters. Diamondback Energy, for example, anticipates $550 million in annual cost synergies following its acquisition of Endeavor Energy. Of that, $325 million in savings are tied to operations, $150 million to land and $75 million to financial and corporate costs… “The fragmented U.S. oilfield service sector is led by Halliburton with 14% of market share, according to Rystad. Some smaller firms with older technology have been forced to lower prices to stay competitive as their customer bases shrink and clients opt for more efficient drilling, executives and analysts told Reuters… “The outlook is a bloodbath,” Rystad vice president Thomas Jacob told Reuters.”

Euronews: Carbon purity rules could sink Europe’s capture ambitions, industry group warns
Robert Hodgson, 7/24/24

“The EU is pinning its climate ambition on carbon capture and storage (CCS) to prevent billions of tonnes of CO2 emissions in the coming years, but a technical hitch could delay the deployment of a technology that even its cheerleaders recognise has barely got off the ground,” Euronews reports. “EU hopes of locking tremendous volumes of CO2 underground to mitigate climate change have hit another obstacle, with big emitters warning that prospective storage operators are demanding the greenhouse gas first be purified to a point where it ceases to be economically viable. The European Commission yesterday published fresh guidelines for the implementation of a CO2 Storage Directive dating back to 2009, but the trade association Carbon Capture and Storage (CCS) Europe has warned the EU executive has failed to address the issue of CO2 purity. Director Chris Davies told Euronews the law was essential to reassure the public that CCS is a safe climate mitigation strategy, as it demands that CO2 storage facilities – typically using depleted oil and gas fields – pose no significant threat to health or the environment. “Yet it still provides no assessment of what standards of CO2 purity are acceptable, leaving to operators to impose their own requirements,” Davies, who as a British MEP steered the EU’s first CCS legislation through the European Parliament, told Euronews… “Davies warned that purifying it to meet the demands of storage operators, who fear substances like sulphur oxides (SOx) or even water vapour could corrode their CO2 transport and injection machinery, would lead to “a cost that may be so onerous that industry emitters continue to release CO2 into the atmosphere”. This presents another obstacle to deployment of a technology that the Commission now believes is essential to meet EU climate targets and its goal of net-zero by mid-century.”

Food & Watch Watch: New Report Details Massive Impact of Methane Emissions on Near-Term Climate Picture
7/23/24

“A new report from the national advocacy group Food & Water Watch presents a stark picture of the immense amount of climate-killing methane emissions emanating from the top two sources of such pollution: fossil fuel fracking and corporate factory farming.  While carbon dioxide still remains a larger source of greenhouse gas emissions, methane has a vastly outsized impact on climate stability in the near term, as it has an 86 times stronger warming effect than carbon dioxide over a 20-year period.Fossil fuel extraction, processing and distribution operations in the U.S. released 26.4 million metric tons of methane pollution in 2022… “Food & Water Watch (FWW) estimates that in 2022, fracking across the U.S. released lifecycle emissions of over 26.4 million metric tons of methane.This includes emissions from well sites, processing, and distribution, but excludes combustion. This is equivalent to over 500 million cars driven for a year, or 255 billion gallons of gasoline burned. Peer-reviewed research has shown that the EPA consistently underestimates the scale of this pollution.”

Toronto Star: This homeowner ended his natural gas service. Months later, Enbridge charged him hundreds of dollars in surprise fees
Marco Chown Oved, 7/25/24

“When Paul Dowsett made the call to Enbridge to cut off his natural gas service last year, it was the culmination of years of efforts to show that zero emissions households aren’t just possible, they’re practical and affordable,” the Toronto Star reports. “But a year later, he has received a bill for more than $350 and is finding out it’s much harder to get off gas than he thought.”

CLIMATE FINANCE

Bloomberg: Oklahoma Judge Blocks Anti-ESG Law Targeting Financial Firms 
Brenna Goth, 7/22/24

“An Oklahoma judge blocked enforcement of the state’s anti-ESG law penalizing companies deemed to be boycotting the oil and gas industry in a case that addresses whether the law is vague and hurts retirees,” Bloomberg reports. “The Friday ruling from the Oklahoma District Court in Oklahoma County came from the bench, according to Collin Walke, the attorney representing a retired public employee who sued Oklahoma Treasurer Todd Russ (R) over the state’s 2022 law… “The injunction could buoy opponents of similar laws in other states that restrict how companies consider environmental, social, and governance factors such as addressing climate change. ESG-related laws, which often target public pensions and state contracts, have created an increasingly complex landscape for financial firms in particular. ESG restrictions have also been challenged in Missouri. Proponents of pro-ESG laws also have encountered recent setbacks. California lawmakers abandoned a bill (SB 252) last month that would have required the state’s two biggest pension systems to divest from fossil fuel companies. Environmentalists backed the measure but it also pit some public employee unions against each other as opponents, including local governments, argued it would ultimately hurt the pension systems. The bill’s backer, state Sen. Lena Gonzalez (D), pledged to reintroduce a similar bill next year.”

OPINION

Des Moines Register: I welcome a carbon pipeline through my farm. It’ll open markets and preserve farming.
Kelly Nieuwenhuis, 7/25/24

“Being a farmer is not for the faint of heart,” Kelly Nieuwenhuis writes for the Des Moines Register. “…A tremendous market for corn growers has been ethanol and biofuels. But cars have become more fuel-efficient and more electric vehicles keep hitting the road… “We need to open new markets for our corn. Twenty years ago, ethanol created domestic demand for corn that completely changed the way farmers in this country make a living. If we are allowed to participate, Sustainable Aviation Fuel, or SAF, will be the next huge change for producers… “The only way for us to get there is to reduce the carbon index score for corn, which we can only do through carbon capture and sequestration… “My farmland is on the path of the proposed Summit Carbon pipeline, and I am absolutely thrilled at the innovation and future it represents. In fact, the silent majority along the route agrees with me and recognizes what this means for our state and our nation. It’s groups who have always been hellbent on destroying production agriculture that are the vocal minority… “And without robust, innovative solutions like the Summit Carbon pipeline to open new markets, family farms in Iowa may cease to exist altogether.”

WSIU: Scherer-Backed Carbon Capture Law Readies Illinois to Grow New Cutting-Edge Jobs
Office of State Rep. Sue Scherer, 7/24/24

“Commentary: A new law passed by state Rep. Sue Scherer, D-Decatur, will help position Central Illinois communities to take advantage of cutting edge, job-creating technology,” the office of State Rep. Sue Scherer writes for WSIU. “The law, signed by Gov. Pritzker at Richland Community College on Thursday in Decatur, enabling underground storage of carbon dioxide in Illinois—a process known as carbon capture and sequestration (CSS). “Our land, transportation infrastructure, and skilled workforce make Central Illinois a prime destination for this emerging technology, and the good-paying jobs that will come with it,” Scherer said. “This is another example of businesses, environmental advocates, and labor working together to make a bright, prosperous future for our communities.” Scherer helped pass Senate Bill 1298, which will regulate the capture, transportation, utilization and underground storage of carbon dioxide… “Scherer’s measure expands these green job efforts, creating a permit framework and clarifies rock pore space ownership rights that would be used in carbon capture and sequestration. Surface property owners will retain ownership of the pore space beneath their land under the law and are entitled to just compensation for the use of their space for sequestration. creates the Safe CCS Act, which will implement new regulatory standards around CCS projects in Illinois. These new standards will ensure that Illinois is the safest state in the union for carbon capture.”

Hart Energy: Safeguarding the Trend of Accelerating CCUS Adoption
Katie Zimmerman, decarbonization director Americas, Wood, and David Bahr, technical director decarbonization, Wood, 7/24/24

“As decarbonization policy continues to evolve on a global scale, carbon capture, utilization and storage (CCUS) adoption is gaining momentum,” Katie Zimmerman and David Bahr write for Hart Energy. “…To successfully deploy carbon capture at scale, projects must consider the carbon capture itself, in addition to the transport and final destination of the CO2. Installing a new CO2 pipeline and planning for sequestration and/or end-use is an expensive effort for just one company to undertake. A more cost-effective approach is for groups of emitters to partner on transportation and storage projects for mutual benefit, a practice now commonly referred to as a “hub” or “cluster.” “,,,With most carbon capture projects still in the FEED and pre-FEED phases, early engagement with experts is essential… “With billions of dollars in grants from the U.S. Department of Energy’s Office of Clean Energy Demonstrations (OCED) and increased tax incentives from 45Q, Wood is moving forward with projects focused on accelerating the commercial deployment of CCUS technologies at scale… “Despite the increased interest in CCUS, as of 2023, only 40 commercial facilities were operational in industrial processes, fuel transformation and power generation; that’s a small share of the 500 projects in the pipeline… “Beyond this, policy momentum must continue to accelerate to fully unlock the potential of CCUS to advance the energy transition. We have already made exceptional policy progress in the U.S., but replicating this on a global scale is far more difficult… “Ensuring that the pipeline system will operate as intended with varying compositions and contaminants at different flow rates requires a lot of engineering. Understanding the varying permitting requirements along pipeline routes adds additional complexity as well… “While government incentives have had a positive effect on the uptick in project development, incentives alone will not ensure sustainability. Engaging the market on the role of CCUS, the different variations and how to effectively design CO2 transport systems will be essential in ensuring its adoption and longevity. In our experience, there isn’t a “one size fits all” approach to CCUS. What determines success is designing a decarbonization strategy that is specific to a company’s carbon reduction goals and asset portfolios.” 

Heatmap: This Is the Best Permitting Reform Deal We’re Going to Get
JAEL HOLZMAN, 7/24/24

“We now know what a real bipartisan permitting overhaul could look like. Senators Joe Manchin and John Barrasso on Monday unveiled the Energy Permitting Reform Act, the product of months of negotiations over how to craft a sweeping change to the nation’s federal energy project approvals system that could actually pass through Congress,” Jael Holzman writes for Heatmap. “It’s got a little bit of everything: For the oil and gas folks, there’s mandatory offshore oil and gas lease sales and streamlined permitting requirements… “Lastly there’s a fresh limit on the length of time allowed for legal challenges against energy projects of all types. In other words, it’s an energy smorgasbord, and all sorts of fuels and resources are invited to the party. Will such a bill be able to sail through Congress in the middle of a close election cycle? Unclear, but highly doubtful. Will it be able to overcome opposition from the major environmental groups — Sierra Club, the Natural Resources Defense Council, and Earthjustice — that stymied Manchin’s prior permitting deal?… “But to the people most deeply invested in bipartisan permitting compromise, none of that matters — for now, at least. In their view, this bill sets the parameters for whatever permitting deal will eventually become law, whether that’s in this Congress or the next. “Some of the environmental community is going to look at this and see it as a net win for climate change, and some in the environmental community are more anti-fossil fuel than they are pro-reducing emissions, and so it’s harder for them to get over the fossil fuel aspect of the bill,” Xan Fishman, senior director of the energy program at the Bipartisan Policy Center, told Heatmap. “But to some extent, that’s how bipartisan deals come together. Not everyone is going to be happy.”