The town of Weymouth dropped its fight against the Enbridge compressor station in return for a few concessions. Activists who fought the project for years were not pleased. We include a letter from Alice Arena of Fore River Residents Against the Compressor Station (FRRACS), to Weymouth Mayor Robert Hedlund.
Pipeline protesters have faced an increasingly hostile legal landscape in the last few years. To absolutely no one’s surprise, it turns out that state legislators who backed these draconian laws received substantial campaign funding from the oil and gas industry.
Financing continues to flow away from the fossil energy sector. The Association of European Development Finance Institutions (EDFI) just announced that all of its financing would align with Paris Climate Agreement goals as early as 2022.
Major climate news includes the Unites States withdrawal from the Paris Agreement. This was expected, and concludes a long formal process set in motion by the Trump administration a year ago. Joe Biden has pledged to rejoin that agreement “on day one”, if elected. As I write, votes are still being counted but a Biden victory appears likely.
We have news about local elections that are affecting the energy mix on the grid, as many communities vote to adopt community choice aggregation plans with substantial percentages of emissions-free energy.
Massachusetts’ new ConnectedSollutions program, which provides payments to customer-owned battery storage systems that discharge when called upon by utilities to help manage energy demand on the grid, has opened up an exciting new marker for storage sited in affordable housing units. This takes us one step closer to ending reliance on highly polluting peaker power plants.
Clean transportation is also benefiting from fresh thinking, particularly with a Massachusetts start-up that has found a way to finance electric school buses in districts where budgets can’t handle the hefty up-front price tag.
In a surprise shake-up, President Trump abruptly demoted Federal Energy Regulatory Commission (FERC) Chairman Neil Chatterjee and replaced him with ultra-conservative James Danly. While we regularly criticize FERC policy on this page, we acknowledge that some recent moves made good sense and earned praise from clean energy advocates. Chatterjee was right to guide the Commission through those important steps. He understood the risk, and this obvious retribution from Trump has left him without regrets. Well done, sir.
Finally, peak oil is behind us and the fossil fuel industry is officially circling the drain. That said, we can’t lose sight of the fact that it’s still huge and powerful, and has the capacity to thoroughly cook the planet unless its conversion or dismantling is properly managed.
We close with a new report on plastics in the environment, confirming that the U.S. leads the world in waste – discarded both at home and shipped for “recycling” abroad where it may be mishandled and find its way into oceans.
— The NFGiM Team
WEYMOUTH COMPRESSOR STATION
Weymouth, Enbridge strike deal worth up to $38 million
By Jessica Trufant, The Patriot Ledger
October 30, 2020
WEYMOUTH —Some residents and local officials say they’re disappointed that Mayor Robert Hedlund’s administration has struck an agreement with the gas company that owns the newly constructed natural gas compressor station, a deal that will provide the town with $10 million upfront and potentially $28 million in tax revenue over the next 35 years.
Hedlund said his administration and representatives from Enbridge, the energy company that owns the compressor station, have reached a host community agreement that covers a range of issues, from the property tax structure for the site to addressing coastal erosion and the ongoing hazardous waste cleanup.
Hedlund said the town has been more aggressive than any other community in fighting such a project, but officials also needed to face the reality of the situation and protect the town’s interests by entering a host agreement.
“The clock has run out on us, and we have a fully permitted facility that we know is going to start up very soon,” he said.
The controversial compressor station is part of Enbridge’s Atlantic Bridge project, which will expand the company’s natural gas pipelines from New Jersey into Canada. It has been a point of contention for years among neighbors and some local, state and federal officials who say it presents serious health and safety risks and has no benefit for the residents of Weymouth, Quincy, Braintree, Hingham and surrounding communities.
Alice Arena, leader of the Fore River Residents Against the Compressor Station, said the agreement will not cover the loss of security, safety, health, environment, and property value resulting from the compressor station.
» Read article
» Read FRRACS letter to Mayor Hedlund
EVERSOURCE PIONEER VALLEY (COLUMBIA GAS)
Activist group urges Eversource CEO to scrap plans for regional natural gas pipeline
By Peter Goonan, MassLive
Photo by Don Treeger / The Republican
October 28, 2020
SPRINGFIELD — An activist group has urged Eversource to abandon a long-planned natural gas pipeline project in the region, saying such an expansion is “unwarranted” and counter to energy conservation efforts.
The group, the Columbia Gas Resistance Campaign, addressed the letter this week to Eversource Chief Executive Officer James Judge. It was signed by 92 community organizations and 12 state and local politicians, the campaign said.
Eversource said Wednesday that it is reviewing all projects following its recent purchase of Columbia Gas of Massachusetts for $1.1 billion.
On Oct. 13, while celebrating the purchase, Eversource gas operations president William Akley said improvement projects have environmental benefits and the gas system while in place, needs to be “safe and reliable.”
The Resistance Campaign’s letter said, in part: “As Eversource embarks on its new venture in Western Massachusetts, and indeed in all three service areas, we ask that you regard this moment as an opportunity to switch from a path involving harmful gas and fossil fuel development to a business plan that embraces green energy, stopping the steamroller of climate change that is now consuming communities across the globe.”
Columbia Gas had pursued pipeline projects with Tennessee Gas Pipeline and its owner, Kinder Morgan, for a pipeline loop project in Agawam, Longmeadow and Springfield. The project is designed to improve the horsepower at an Agawam compressor station; build a 12-inch diameter, create a two-mile pipeline loop in Agawam, and provide a new 16-inch line to Springfield’s South End via a new meter station in Longmeadow, officials said.
The Resistance Campaign welcomed Eversource as the successor company, but asked for a meeting “to discuss transitioning from fossil fuels toward energy conservation project and non-combustible clean energy sources.”
“With Eversource’s participation, we are confident that we can create an energy future where wind and solar sources heat and cool our homes and businesses, while powering our grid and transportation systems,” the campaign said.
In a statement, Eversource spokesman Reid Lamberty said the company will “collaborate and work with municipal and community leaders, organizations, and other stakeholders.”
“We are continuing our thorough review of all projects we assumed with our acquisition of Columbia Gas of Massachusetts,” Lamberty said. “We look forward to discussions with the community — especially around methane leaks from aging pipes, reliability and safety issues, and how we meet community expectations and needs.”
Lamberty said he has no further comment on the group’s letter.
The Resistance Campaign said that if Eversource is committed to its public plan to be carbon neutral by 2030, the planned expansion of the gas pipeline system is counter to that goal.
The coalition urged the company to begin reducing natural gas distribution services, actively pursue non-combustible clean options like geothermal district heating and electric pump technologies.
In addition, the coalition raised concerns about the safety of gas fuel, citing the Merrimack Valley explosions. Gas company officials have defended the new pipeline project as a step toward alleviating gas leaks.
» Read article
CONNECTICUT EXPANSION PIPELINE
Tennessee Gas and contractor to pay $800,000 in penalties, repairs over controversial natural gas project in Otis State Forest
By Jeanette DeForge, MassLive
November 2, 2020
Tennessee Gas Pipeline Company and its contractor which installed a controversial natural gas line through Otis State Forest will pay a total of $800,000 in fines and to make repairs after damaging an ecologically-important vernal pool, failing to protect wetlands and damaging the roadway during the construction.
Tennessee Gas Pipeline Company and its contractor Henkels & McCoy, Inc. will make about $300,000 in penalties and payments to the Massachusetts Natural Resource Damages Trust and will spend about $500,000 to repave part of Cold Spring Road, in Sandisfield, according to the agreement between the company and its contractor Henkels & McCoy Inc. and Massachusetts Attorney General Maura Healey.
The damage was done in 2017 while the company was installing a four-mile line through Otis State Forest as part of a 14-mile pipe extension that cut through New York and Connecticut. The work drew multiple protests and led to more than a dozen arrests for civil disobedience.
Under the claim, Tennessee Gas was accused of failing to maintain erosion and sediment controls causing soil and sediment to run into more than 630 square feet of wetlands. It was also accused of excavating and filling portions of a vernal pool and shutting down a required pump temporarily degrading water quality in Spectacle Pond Brook, the Attorney General’s office said in announcing the settlement.
In a second location, the companies were also accused of dumping 15,000 gallons of contaminated pipeline test water directly onto the ground adjacent to Tennessee Gas’ pipeline compressor station in Agawam, the announcement said.
“Tennessee Gas repeatedly assured the state and Sandisfield residents that water quality and wetlands would be protected during pipeline construction, but they failed to make that happen,” Healey said in writing.
» Read article
» Read AG Healey’s statement
PROTESTS AND ACTIONS
State Backers of Anti-Protest Bills Received Campaign Funding from Oil and Gas Industry, Report Finds
By Sharon Kelly, DeSmog Blot
October 31, 2020
Politicians responsible for drafting laws criminalizing pipeline protests in Louisiana, West Virginia, and Minnesota did so after receiving significant funding from the fossil fuel industry, according to a new report by the Institute for Policy Studies, a progressive think tank based in Washington, D.C.
The major pipelines studied in the report disproportionately impact historically disenfranchised communities who, in turn find themselves potentially targeted by the protest criminalization measures, often framed as efforts to protect “critical infrastructure,” the report details.
“Under the premise of protecting infrastructure projects,” the Institute wrote, “these laws mandate harsh charges and penalties for exercising constitutional rights to freely assemble and to protest.”
The past decade has seen a glut of new pipeline construction in the U.S. More than 80,000 miles of major new pipelines, like interstate gas transmission lines and oil pipelines, have been built across the U.S., federal data shows — enough to crisscross the country from the coast to coast roughly 30 times. That’s not including over 400,000 miles of smaller gas distribution and service pipes laid across the nation during that time.
These new projects have often been dogged by controversy, both due to local opposition and because the climate crisis has spurred a needed transition away from the fossil fuels that would be carried in those pipes.
In the face of that opposition, 13 states have passed laws since 2017 designed to criminalize protests specifically related to oil and gas projects. At least three states — Kentucky, South Dakota, and West Virginia — have pushed forward on their “critical infrastructure” protest criminalization bills since the COVID-19 pandemic began.
The report from the Institute for Policy Studies focuses on critical infrastructure laws passed or introduced in Louisiana, Minnesota, and West Virginia, three states where controversies over major pipeline projects have simmered. It follows the flow of money from the backers of major pipeline projects underway in each state to local politicians.
» Read article
» Read the IPS report
Exclusive: European Development Finance group to exit fossil fuel investments by 2030
By Nina Chestney, Kate Abnett, Simon Jessop, Reuters
November 5, 2020
The Association of European Development Finance Institutions (EDFI), whose 15 government-owned members invest across emerging and frontier markets, also said it would align all new lending to the Paris Agreement on climate change by 2022.
It would also ensure that all investment portfolios achieve net-zero carbon emissions by 2050 at the latest.
“As taxpayer-funded organisations, we are committed to promoting green growth, climate adaptation and resilience, nature-based solutions, access to green energy and a just transition to a low-carbon economy,” EDFI Chief Executive Søren Peter Andreasen told Reuters in a statement.
Development Finance Institutions refer to state-backed lenders such as CDC Group in Britain, Norfund in Norway and Proparco in France, which provide financing in areas like infrastructure and healthcare to help boost economic development, often in low- and middle-income countries.
» Read article
US Now Officially Out of the Paris Climate Agreement
By Olivia Rosane, EcoWatch, in DeSmog Blog
November 4, 2020
The U.S. has officially left the Paris climate agreement.
However, the permanence of its departure hangs on the still-uncertain outcome of Tuesday’s U.S. presidential election. While President Donald Trump made the decision to withdraw the U.S. from the agreement, his rival former Vice President Joe Biden has promised to rejoin “on day one,” as NPR pointed out. Either way, the U.S. withdrawal has hurt trust in the country’s ability to follow through on climate diplomacy initiated by one administration when another takes power.
The landmark 2015 agreement was designed to limit the global warming causing the climate crisis to well below two degrees Celsius above pre-industrial levels, and ideally to limit it to 1.5 degrees Celsius. The U.S. is currently responsible for around 15 percent of greenhouse gas emissions, but it is historically the country that has contributed the most emissions to the atmosphere, NPR pointed out. Under the Paris agreement, the U.S. had pledged to reduce emissions around 25 percent by 2025 compared to 2005 levels, but it is now only on track to reduce them by 17 percent.
This is partly due to Trump administration environmental policies like the rollback of Obama-era emissions controls on power plants and vehicles. Emissions rose during the first two years of Trump’s presidency but have declined in 2020 because of the economic downturn caused by the coronavirus pandemic.
The U.S. withdrawal has also affected a global fund intended to help poorer countries on the frontlines of the climate crisis adapt to rising seas and temperatures. The U.S. had originally committed to supplying $3 billion, but the Trump administration withdrew two-thirds of that amount..
Trump first formally announced his intention to withdraw from the Paris agreement in 2017, arguing that it would harm U.S. jobs, The New York Times reported. His administration formally began the withdrawal process Nov. 4, 2019, the earliest date possible under UN rules. That process then took a year, which is why the U.S. is officially out today. If Biden wins and rejoins the agreement on Jan. 20, the reversal would be effective 30 days later.
» Read article
Greta Thunberg Hears Your Excuses. She Is Not Impressed.
By David Marchese, New York Times
Photo illustration by Bráulio Amado
October 30, 2020
Greta Thunberg has become so firmly entrenched as an icon — perhaps the icon — of ecological activism that it’s hard to believe it has been only two years since she first went on school strike to draw attention to the climate crisis. In that short time, Thunberg, a 17-year-old Swede, has become a figure of international standing, able to meet with sympathetic world leaders and rattle the unsympathetic. Her compelling clarity about the scale of the crisis and moral indignation at the inadequate political response have been hugely influential in shifting public opinion. An estimated four million people participated in the September 2019 global climate strikes that she helped inspire. “There’s this false image that I’m an angry, depressed teenager,” says Thunberg, whose rapid rise is the subject of “I Am Greta,” a new documentary on Hulu. “But why would I be depressed when I’m trying to do my best to change things?”
What do you see as the stakes for the U.S. presidential election? Is it a make-or-break ecological choice? We can’t predict what will happen. Maybe if Trump wins that will be the spark that makes people angry enough to start protesting and really demanding things for the climate crisis. I think we can safely say that if Trump wins it would threaten many things. But I’m not saying that Joe Biden is good or his policies are close to being enough. They are not.
» Read article
Local elections are changing America’s energy mix, one city at a time
Renewable energy just won in a few local elections
By Justine Calma, The Verge
November 4, 2020
Local races can go a long way toward changing how Americans get their electricity. After yesterday’s election, both the city of Columbus, Ohio, and township of East Brunswick, New Jersey, are projected to pass measures that allow their local governments, instead of utilities, to decide where residents’ power comes from.
These “community choice” programs are boosting the growth of cheap renewable energy and are already prying loose investor-owned utilities’ tight grip on energy markets in places like California. More and more of these programs are popping up in states where they’re allowed, and they’re expected to grow beyond those borders in the future.
“We’ve seen a big grassroots push for state and national action on climate. In the meantime, cities and communities have sought out creative ways to make change from the ground up where possible,” Kate Konschnik, director of the Climate & Energy Program at the Nicholas Institute for Environmental Policy Solutions at Duke University, wrote to The Verge in an email. “Cities are also stepping up to demand cleaner and more locally sourced electricity, for themselves and for their residents.”
The measures that voters cast their ballots for in Columbus and East Brunswick yesterday allow local governments to decide what energy mix is available for their residents and use their collective purchasing power to bargain for cheaper rates. Utilities will still be in charge of getting that power to people but will no longer be calling the shots when it comes to deciding how much of that energy comes from renewables versus fossil fuels in places that have adopted community choice measures.
» Read article
Battery Storage is Coming to Affordable Housing Thanks to Efficiency Program
By Seth Mullendore, Clean Energy Group, and Christina McPike, WinnCompanies
October 19, 2020
Developing affordable housing is challenging, and incorporating energy efficiency and renewables into affordable housing development is even more challenging. Nevertheless, some affordable housing providers have continually been at the forefront of advancements in the clean energy space, improving the energy efficiency of their properties and, increasingly, incorporating solar PV and other clean energy technologies
But, to-date, few have found success in adopting energy storage to cut costs and increase energy resilience. Now, a new utility program in Massachusetts has dramatically changed the economic landscape for battery storage in the state and created a pathway to deliver the benefits of storage to affordable housing providers and residents.
In 2019, Massachusetts became the first state in the nation to establish a program within its energy efficiency plan for customer-sited, behind-the-meter battery storage. The Commonwealth had already recognized peak demand reduction as a valuable new form of energy efficiency; now, with analysis and technical support from Clean Energy Group, an incentive program has been developed to support customer batteries as a demand-reducing efficiency measure. The program, called ConnectedSolutions, provides payments to customer-owned battery storage systems that discharge when called upon by utilities to help manage energy demand on the grid. This new value stream for storage is a game-changer for behind-the-meter batteries, providing a reliable source of revenue backed by contractual utility payments.
For several years, Clean Energy Group has been working with affordable housing developers in the Greater Boston area, helping them to assess the economic feasibility of solar paired with storage at their properties. Again and again, we found that, while the economic case was often promising, affordable housing properties just didn’t have the types of spiky demand profiles that make for a strong financial case to install battery storage, especially not for the large battery systems needed to deliver significant backup power during emergencies. And properties outside Eversource service territory had an even tougher time making the economics of storage work without grants or other incentives, due to lower demand charge rates.
ConnectedSolutions has changed all that. Now, the customer’s pattern of electricity use doesn’t matter, and their demand charge rate is irrelevant. Customers simply sign a contract with their utility, and receive payments based on their battery’s response to a utility signal. ConnectedSolutions allows all customers to economically install battery storage, and it guarantees that these behind-the-meter batteries are used to benefit the entire grid, generating cost savings for all ratepayers. As more customers sign up for the program, the shift from site-specific to systemwide peak demand reduction could transform thousands of residential and commercial electricity customers into a flexible, grid-responsive energy asset, providing grid-scale services currently being met—at great cost—by fossil-fueled assets, such as peaker power plants.
» Read article
Start-up bets on new model for putting electric school buses on the road
Highland Electric Transportation has partnered with a Massachusetts city to provide electric school buses without the upfront costs or maintenance hassles.
By Sarah Shemkus, Energy News Network
Photo By David Sokol / USA Today Network
November 2, 2020
A Massachusetts company that aims to transform the electric school bus market has rolled out its first vehicle as part of the city of Beverly’s plan to convert its entire fleet to electric power.
“We’re excited that it’s finally in our hands,” said Beverly mayor Michael Cahill. “We have a good feeling about it.”
Beverly’s new bus is just the fourth electric school bus to be put into service in Massachusetts; the other three were part of a state-funded pilot program in 2016 and 2017.
Some 9,000 school buses are on the road across Massachusetts. Many cities and towns have started looking for ways to cut emissions from their school bus fleets, both to lower greenhouse gas emissions and to reduce the exhaust fumes students are exposed to on a daily basis. In Beverly, more than 45% of the city’s emissions come from transportation, so the city’s fleet of 22 school buses is a logical place to look for carbon reductions, Cahill said.
The rollout of Beverly’s new bus is a collaboration between the city and Highland Electric Transportation, a local start-up founded in 2018 by renewable energy industry veteran Duncan McIntyre. In his previous work, McIntyre helped develop solar power purchase agreements, a model in which a company builds, owns, and operates a solar installation on a customer’s property and the property owner agrees to buy the energy generated.
As electric vehicle technology evolved, McIntyre spotted an opportunity to apply the same concept to the school bus industry.
Though prices vary, electric school buses can cost more than $300,000, roughly three times the cost of a comparable diesel vehicle. Charging infrastructure can add another 15% to 30% to the final price tag. Highland, therefore, plans to partner with school districts that are interested in using electric school buses but unable to afford these high upfront costs. The company will buy and own the buses and charging infrastructure. Customer school districts will pay a monthly fee for the use of the buses and chargers, as well as ongoing maintenance.
» Read article
Airbus Hopes to Be Flying Hydrogen-Powered Jetliners With Zero Carbon Emissions by 2035
The company says it is studying three designs for commercial air travel, but a host of complex problems remain related to producing “clean” hydrogen fuel.
By Leto Sapunar, InsideClimate News
October 27, 2020
The aerospace giant Airbus hopes to put a hydrogen-powered commercial airliner in the sky that will release zero carbon dioxide emissions in the atmosphere. But not until 2035.
While 15 years might seem like a long time for research and development given the urgent need to reduce carbon emissions under the Paris climate agreement, processing and storing “clean hydrogen” requires solving an array of complex technical challenges. Three early design concepts the company is studying would run off of hydrogen and oxygen fuel and have no carbon exhaust. But that doesn’t mean they won’t affect the climate at all.
“I will let you in on a little secret, they are not zero emission,” Amanda Simpson, vice president for research and technology for Airbus Americas, said.
Burning hydrogen produces water, which comes out of the engines as a vapor that, especially at high altitudes, acts as a greenhouse gas.
Recent studies have shown that contrails—the white streaks of condensed water that follow jets across the sky—have a significant climate impact. Still, these hydrogen-powered designs could significantly limit the total warming that airlines cause by reducing or eliminating the carbon dioxide they emit. Airlines accounted for more than 2 percent of global CO2 emissions in 2018, with the total contribution of contrails and the various pollutants from commercial aviation driving about 5 percent of warming globally.
Up to this point, industry attempts at zero carbon flight have been smaller proof-of-concept designs, like short range electric planes that don’t scale up practically for larger passenger flights.
Simpson said she thinks hydrogen power is going to be “as clean as we can get,” so the development of a plane that runs on it is an important step in decarbonizing the aerospace industry.
» Read article
FEDERAL ENERGY REGULATORY COMMISSION
‘Totally worth it’: Chatterjee speculates DER order, carbon pricing are behind Trump ousting him
By Catherine Morehouse, Utility Dive
November 6, 2020
“I knew when I moved forward with Order 2222, convening the tech conference on carbon pricing, and ultimately moved forward with a proposed policy statement, that there was the risk of blowback,” he said in an interview Friday morning. FERC announced Thursday evening that President Donald Trump had replaced him as chairman with Commissioner James Danly, a more conservative presence on the commission, though Chatterjee will remain on the commission. “I knew that, [but] went forward anyway, because I thought it was the right thing to do. I don’t know for certain that that is the reason that the action was taken … but if it was, I’m actually quite proud of it. And it would have been totally worth it.”
Some analysts saw Chatterjee’s moves in recent months as a signal that he was moving to more Democrat-focused priorities, though the former chairman, who plans to remain for the rest of his term as commissioner until June 2021, says these policies were totally consistent with his market-based approach to the energy transition.
Chatterjee maintains his actions received broad support across the political spectrum, adding that relatively few Republicans opposed recent FERC actions.
» Read article
Trump Replaces FERC Chairman Neil Chatterjee with Commissioner James Danly
Surprise switch at federal agency that’s passed market regulations opposed by states pursuing clean energy policies.
By Jeff St. John, GreenTech Media
November 6, 2020
President Donald Trump has replaced Neil Chatterjee, the Republican chairman of the Federal Energy Regulatory Commission, with James Danly, another Republican who has taken a more conservative approach to federal energy policy at an agency that’s taken fire from clean energy advocates for using its regulatory power to impose restrictions on state-subsidized clean energy.
Thursday’s surprise announcement comes as Trump is trailing Democrat Joe Biden in the electoral votes needed to win the U.S. presidential election, with several key states yet to complete their vote tallies.
A Thursday report from the Washington Examiner quoted Chatterjee as speculating whether his abrupt replacement was due to his decision to issue a policy statement in September affirming FERC’s willingness to consider proposals for the country’s interstate grid operators to integrate carbon pricing into the wholesale energy markets they manage.
“I have obviously been out there promoting a conservative market-based approach to carbon mitigation and sending signals the commission is open to considering a carbon price, and perhaps that led to this,” Chatterjee was quoted as saying.
The Trump administration has restricted federal agencies from sharing information on the global warming impacts of human-caused carbon emissions. Danly issued a partial dissent to FERC’s carbon pricing policy statement, calling it “unnecessary and unwise.”
Danly also voted against last month’s Order 2222, which orders the country’s grid operators to allow aggregated distributed energy resources such as batteries, electric vehicles and demand response to participate in their wholesale energy, capacity and ancillary services markets. His no vote was overridden by Chatterjee and Richard Glick, FERC’s sole Democratic commissioner.
» Read article
FOSSIL FUEL INDUSTRY
On the horizon: the end of oil and the beginnings of a low-carbon planet
With demand and share prices dropping, Europe’s fossil fuel producers recognise that peak oil is probably now behind them
By The Guardian
November 1, 2020
A year ago, only the most ardent climate optimists believed that the world’s appetite for oil might reach its peak in the next decade. Today, a growing number of voices within the fossil fuel industry believe this milestone may have already been passed. While the global gaze has been on Covid-19 as it ripped through the world’s largest economies and most vulnerable people, the virus has quietly dealt a mortal blow to oil demand too.
Energy economists claim with increasing certainty that the world may never require as much oil as it did last year. Even as economies slowly emerge from the financial fallout of the pandemic, the shift towards cleaner energy has gained pace. A sharp plunge in fossil fuel use will be followed in quick succession by a renewable energy revolution, which will occur at unprecedented pace. The tipping point for oil demand may have come and gone, and major oil companies are taking note.
Royal Dutch Shell told investors last week that the oil giant will probably never again produce as much oil as it did in the year before coronavirus hit. It is on a mission to overhaul a business steeped in more than a century of oil production and embrace clean energy alternatives. But the admission that its own oil production may have already reached its peak is less of a climate target than an acknowledgment of an inevitable and inexorable march towards a low-carbon future.
» Read article
Exxon Flags Possible $30B Writedown After Third Straight Loss
By Tsvetana Paraskova, Oil Price
October 30, 2020
ExxonMobil (NYSE: XOM) warned on Friday that it could write down North American natural gas assets with a carrying value of up to US$30 billion as it reported its third consecutive loss this year amid low oil demand and oil prices.
Exxon is currently re-assessing its portfolio to decide which assets with the highest potential to create value should be developed, the U.S. supermajor said in its Q3 earnings release.
“Depending on the outcome of the planning process, including in particular any significant future changes to the corporation’s current development plans for its dry gas portfolio, long-lived assets with carrying values of approximately $25 billion to $30 billion could be at risk for significant impairment,” Exxon said, flagging the possibility of major writedowns.
Unlike other major oil corporations, Exxon hasn’t yet adjusted the value of its assets during the pandemic. In fact, Exxon hasn’t been doing much of that over the past decade at all.
Even Chevron took impairment charges in Q2 due to a lower commodity price outlook and write-offs in its Venezuela operations due to the U.S. sanctions.
Exxon expects to complete the re-assessment of its portfolio this quarter, so possible writedowns could be announced early next year.
» Read article
PLASTICS IN THE ENVIRONMENT
U.S. Leads the World in Plastic Waste, New Study Finds
By Olivia Rosane, EcoWatch
November 3, 2020
The U.S. is the No. 1 generator of plastic waste in the world and as high as the No. 3 generator of ocean plastic waste.
That’s the finding of a new study published in Science Advances last Friday that sought to paint a more accurate picture of the U.S. contribution to the plastic crisis. While previous studies had suggested that Asian countries were responsible for the bulk of ocean plastics, the new study upends this assumption by taking into account the plastic that the U.S. ships abroad.
“For years, so much of the plastic we have put into the blue bin has been exported for recycling to countries that struggle to manage their own waste, let alone the vast amounts delivered from the United States,” lead author and Sea Education Association professor of oceanography Dr. Kara Lavender Law said in a press release emailed to EcoWatch. “And when you consider how much of our plastic waste isn’t actually recyclable because it is low-value, contaminated or difficult to process, it’s not surprising that a lot of it ends up polluting the environment.”
It has long been known that the U.S. produces lots and lots of plastic, but the assumption was that this plastic was being effectively managed. The U.S. Environmental Protection Agency, (EPA), for example, reports that 75.4 percent of plastic waste is landfilled, 15.3 percent is incinerated and 9.3 percent is recycled, which suggests that all U.S. plastic is accounted for. But this does not take into account illegal littering or what happens once plastic is collected for recycling, the study authors pointed out. A 2010 study ranked the U.S. 20th in terms of its overall contribution to ocean plastic pollution. But that study also did not consider the plastic that the U.S. exported to developing countries.
The new analysis concluded that the U.S. generated around 42 million metric tons of plastic in 2016. Of the U.S. plastic collected for recycling, more than half of it was shipped abroad, and 88 percent of that was to countries that struggle to adequately recycle. Further, 15 to 25 percent of it was contaminated or poor quality plastic that would be extremely difficult to recycle anyway. These figures mean that the U.S. is polluting coasts in foreign countries with as much as one million tons of plastic.
» Read article
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