Tag Archives: Saudi oil price cut

Weekly News Check-In 3/13/20

WNCI-6

Welcome back.

A lot of this week’s news relates to the widening effects of the COVID-19 pandemic. With public health a top priority, Weymouth Compressor Station opponents have begun to postpone some planned gatherings. You’ll see the virus take a lead role in articles throughout this post.

Opponents of the Granite Bridge Pipeline stood up and were counted at Exeter’s town meeting. Meanwhile, Greenpeace activists who blocked access to Houston’s oil port last September avoided felony charges for that unconventional act of protest.

We found some interesting examples of pending state and federal legislation. Even a quick scan of these articles offers insight about the support and opposition surrounding efforts to reduce greenhouse gas emissions. Our climate section underscores the urgency for action, including a recent report by the World Meteorological Organization that warns we’re falling far behind the emissions reduction schedule required to avoid the worst effects of global warming.

Clean transportation may benefit from General Motors’ recommitment to electric vehicles. The EV press is warily hopeful that the company is serious this time, since some of its past efforts have fallen short of the hype.

The fossil fuel industry is battered by low prices and falling demand at a time when fracking finances are already on shaky ground. At the same time, climate-related lawsuits multiply, advance, and demand a reckoning. Even so, the industry continues to wield incredible influence and remains a formidable barrier to meaningful action on climate change.

And last week, Rolling Stone published a big article calling out the plastics and fossil fuel industries for flooding the planet with forever-pollutants while working overtime to avoid shouldering the cleanup costs – passing those off to consumers and the environment. “More than half the plastic now on Earth has been created since 2002″….

— The NFGiM Team

WEYMOUTH COMPRESSOR STATION

gatherings discouraged
Coronavirus cancelations hit South Shore as residents, employers prepare
By Jessica Trufant, The Patriot Ledger, in Wicked Local Weymouth
March 10, 2020

Weymouth resident Andrea Honore planned to host a political meet-and-greet with candidate Brianna Wu and several dozen others at her house on March 25, but said she decided to postpone the event on Monday after seeing that the countries forcing quarantines and limiting gatherings are having some success controlling the disease.
» Read article

» More about the Weymouth compressor station

GRANITE BRIDGE PIPELINE

NH Primary Source: Exeter voters oppose Granite Bridge pipeline
By John DiStaso, WMUR News
March 12,  2020

TOWN MEETING VOTE. Exeter voters on Tuesday turned thumbs down on the proposed Granite Bridge natural gas pipeline project, which is currently under review by the state’s Public Utilities Commission.

The project calls for a $414 million, 27-mile, 16-inch pipeline and a liquified national gas storage tank in Epping. If approved by the PUC, the project would then be subject to review by the state Site Evaluation Committee. Consultants hired by the PUC opposed approval of the project last fall.

The plan calls for the pipeline to be located on state property along Route 101 from Exeter to Manchester, passing through Brentwood, Epping, Raymond, Candia and Auburn.

Although the communities affected have no veto power, Exeter residents voted by a 1,605-897 margin, approving a warrant article that asks town officials to express opposition to the project.
» Read article

» More about the Granite Bridge Pipeline

PROTESTS AND ACTIONS

hanging tough
Greenpeace Activists Avoid Felony Charges Following a Protest Near Houston’s Oil Port
Prosecutors in Harris County downgraded charges against a group of protesters to misdemeanors before a grand jury indictment Wednesday.
By Nicholas Kusnetz, InsideClimate News
March 6, 2020

Texas prosecutors downgraded charges filed against a group of Greenpeace activists on Wednesday, deferring a potential courtroom debate over a controversial new law the state passed last year.

More than two dozen protesters were arrested in September after several had dangled themselves off a bridge over the Houston Ship Channel, a vital conduit in one of the nation’s busiest oil ports.

The Harris County District Attorney’s office had originally charged the protesters with felonies under the new law, which imposes harsh penalties on anyone who disrupts energy infrastructure. But prosecutors changed the charges to misdemeanors on the same day that a grand jury indicted 23 of the protesters on those misdemeanors.
» Read article

» More about protests and direct action

LEGISLATION

misguided energy bill
Delayed Senate Energy Bill Promotes LNG Exports, ‘Clean Coal’ and Geoengineering
By Steve Horn, DeSmog Blog
March 11, 2020

The huge bipartisan energy bill currently stalled in the Senate would fast-track exports of fracked gas, offer over a billion dollars in subsidies to “clean coal” efforts and make available hundreds of millions in tax dollars for a geoengineering pilot project.

Called the the American Energy Innovation Act, the 600-page bill is a compilation of 50 bills previously introduced by members of Congress.

The legislation has thus far received bipartisan support because it contains subsidies for renewable energy sources including wind, solar, and geothermal. It also creates federal financial incentives for creating energy-efficient buildings and boosts funding for energy storage. For that, it has garnered lobbying support from the likes of the American Council on Renewable Energy, the Nature Conservancy, and the Environmental Defense Fund.

The act has garnered widespread fossil fuel industry approval from organizations such as the American Gas Association, American Petroleum Institute, industry front group the Consumer Energy Alliance, the petrochemical trade association the American Chemistry Council, the National Mining Association, the U.S. Chamber of Commerce, and a slew of others.

Outside of the renewable energy, energy efficiency, and energy storage clauses, the energy bill contains provisions aiming to ease the way for exports of so-called “small scale” LNG export terminals, which rely on slightly smaller tankers and keep the LNG in liquid form instead of re-gasifying it.

The Senate bill also offers over $367.8 million in federal funding through 2024 to test out a geoengineering pilot project for a technique called direct air capture, which involves vacuuming carbon dioxide from the atmosphere. Geoengineering is a proposal to use various technologies with goals of either removing greenhouse gases already emitted or reversing global warming.
» Read article

Act on Climate 2020
Act on Climate bill faces resistance in [RI] House Environment Committee
By Steve Ahlquist, Uprise RI
March 8, 2020

Public testimony was heard by the House Environmental Committee on the Act on Climate 2020 bill, H7399. Dozens of people came out to testify for the short, simple bill that would strengthen Rhode Island’s commitment to fighting climate change through the establishment of a statewide greenhouse gas emission reduction mandate. The bill would require Rhode Island to reduce its greenhouse gas emissions 100 percent by 2050 and would bring Rhode Island into line with the mandatory, enforceable greenhouse gas emission reductions already in place in neighboring Massachusetts and Connecticut.
» Read article       
» Read Act on Climate 2020 bill H7399

Clean Economy Act VAVirginia Mandates 100% Clean Power by 2045
The Clean Economy Act will drive utility Dominion to procure gigawatts of solar, offshore wind and energy storage.
By Jeff St. John, GreenTech Media
March 6, 2020

Virginia has become the latest state to pass a law that sets it on a path to 100 percent carbon-free electricity by 2045, as well as setting targets for massive investments in energy efficiency, energy storage, and in-state solar and wind power.

The Clean Economy Act passed Virginia’s House of Delegates by a 51-45 vote on Thursday and the state Senate by a 22-17 vote on Friday, clearing the way for the bill to be signed by Governor Ralph Northam, who issued an executive order calling for it last year.

The primary feature of the law, SB 851, is its call for Dominion Virginia (the state’s dominant utility) and the smaller Appalachian Power Co. to supply 30 percent of their power from renewables by 2030, and to close all carbon-emitting power plants by 2045 for Dominion and by 2050 for Appalachian.
» Read article 

fracking ban support
Over 570 Groups Endorse Sanders and Ocasio-Cortez’s Fracking Ban Act as ‘Essential and Urgent Climate Action’
“The path to a Green New Deal starts with bold action to restrict the supply of fossil fuels, and that is precisely why a ban on fracking is an absolute necessity.”
By Jessica Corbett, Common Dreams
February 20, 2020


More than 570 national, regional, and local groups signed on to a letter Thursday endorsing the first-ever national legislation that would immediately prohibit federal permits for new fracking or related infrastructure and fully ban the practice in the United States beginning in 2025.

“At a time when study after study reveals the urgent need to rapidly move away from fossil fuels and onto 100% renewable energy, we write to express our strong support for the Fracking Ban Act,” declares the letter (pdf), organized by the national advocacy group Food & Water Action. “As we witness increasingly extreme impacts of the climate crisis, the federal government must act to stop the expansion of fossil fuels.”

The Fracking Ban Act (S. 3247/H. 5857) was introduced in the upper chamber last month by Sen. Bernie Sanders (I-Vt.), a top 2020 Democratic presidential candidate, and in the lower chamber last week by Rep. Alexandria Ocasio-Cortez (D-N.Y.), a supporter of Sanders’ presidential campaign and the main House sponsor of the Green New Deal.
» Read article       
https://www.commondreams.org/news/2020/02/20/over-570-groups-endorse-sanders-and-ocasio-cortezs-fracking-ban-act-essential-and
» Read letter
» Read The Fracking Ban Act (
S. 2347 / H. 5857)

» Read more about climate legislation

CLIMATE

you got to move
Trump Administration Presses Cities to Evict Homeowners From Flood Zones

By Christopher Flavelle, New York Times
March 11, 2020

WASHINGTON — The federal government is giving local officials nationwide a painful choice: Agree to use eminent domain to force people out of flood-prone homes, or forfeit a shot at federal money they need to combat climate change.

That choice, part of an effort by the Army Corps of Engineers to protect people from disasters, is facing officials from the Florida Keys to the New Jersey coast, including Miami, Charleston, S.C., and Selma, Ala. Local governments seeking federal money to help people leave flood zones must first commit to push out people who refuse to move.

In one city in the heartland, the letters have already started going out.
» Read article

Unisphere chiller
‘Time is fast running out’: World Meteorological Organization warns climate efforts are falling short
“Climate change is the defining challenge of our time,” United Nations Secretary-General Antonio Guterres said in a statement.
By Denise Chow, NBC News
March 10, 2020

The world is significantly falling short when it comes to efforts to curb climate change, according to a new report released Tuesday by the World Meteorological Organization.

The intergovernmental organization’s assessment evaluated a range of so-called global climate indicators in 2019, including land temperatures, ocean temperatures, greenhouse gas emissions, sea-level rise and melting ice. The report finds that most of these indicators are increasing, which means the planet is veering way off track in trying to control the pace of global warming.
» Read article       
» Read report        

Hawaii dives in
‘Fossil Fuel Companies Knew’: Honolulu Files Lawsuit Over Climate Impacts
By Dana Drugmand, DeSmog Blog
March 9, 2020

Hawaii has officially joined the fight to hold fossil fuel companies accountable for the climate crisis. On Monday the City of Honolulu filed a lawsuit against 10 oil and gas companies, seeking monetary damages to help pay for costs associated with climate impacts like sea level rise and flooding.

The lawsuit, filed in Hawaii state court, is based on claims of nuisance, failure to warn, and trespass and alleges that the climate impacts facing the city stem from the oil companies’ decades-long campaign to mislead policymakers and the public on the dangers of fossil fuels.

“For decades and decades the fossil fuel companies knew that the products they were selling would have tremendous damaging economic impacts for local governments, cities, and counties that our taxpayers are going to be forced to bear,” Honolulu’s chief resilience officer Josh Stanbro said at a press briefing outside the courthouse on Monday. “Instead of disclosing that information, they covered up the information, they promoted science that wasn’t sound, and in the process have sowed confusion with the public, with regulators, and with local governments.”

“This case is very similar to Big Tobacco lying about their products, as well as the pharmaceutical companies pushing an opioid epidemic,” added Council Budget Chair Joey Manahan.
» Read article

state rights asserted
Maryland Climate Ruling a Setback for Oil and Gas Industry
The decision thwarts the fossil fuel industry’s argument that the city’s lawsuit belongs in federal court, and may influence similar cases around the country.
By David Hasemyer, InsideClimate News
March 6, 2020

A lawsuit for damages related to climate change brought by the city of Baltimore can be heard in Maryland state courts, a federal appeals court ruled on Friday. The decision is a setback for the fossil fuel industry, which had argued that the case should be heard in federal court, where rulings in previous climate cases have favored the industry.

In a unanimous ruling, a three-judge panel of the Fourth U.S. Circuit of Appeals dismissed the industry’s argument that the lawsuit was more appropriate for federal court because the damage claims should be weighed against federal laws and regulations that permitted the industry to extract oil and gas, the primary cause of the greenhouse gas emissions that drive global warming.
» Read article

» Read more about climate      

CLEAN TRANSPORTATION

Ultium platform
Inside Clean Energy: General Motors Wants to Go Big on EVs
The auto giant’s Bolt and Volt models never sold well, but now the company is touting a battery that has more range than Tesla’s.
By Dan Gearino, InsideClimate News
March 12, 2020

General Motors had a splashy event last week to announce a rededication to electric vehicles.

A lot was said, but what got my attention was one number: $100 per kilowatt-hour.

That’s the battery cost at which the price of an EV will be at about parity with the cost of a gasoline vehicle, according to analysts. And that’s the number GM said it soon will meet and then beat with a new Ultium battery system it is developing through a partnership with LG Chem.

Another important number: GM said its new battery system will be capable of going up to 400 miles on a single charge, which is slightly more than the current industry leader Tesla’s range of about 390 miles.
» Read article       
» Reality check on the Tesla-beater claim

flight clinic
Coronavirus Could Slow Efforts to Cut Airlines’ Greenhouse Gas Emissions
By Brad Plumer and Hiroko Tabuchi, New York Times
March 6, 2020

The coronavirus outbreak is pushing the world’s airlines toward financial crisis — and that is starting to complicate efforts to tame airlines’ greenhouse gas emissions, which had been growing rapidly in recent years.

Even though, in the short term, airlines have seen a sharp decline in air travel, and therefore emissions, demand is widely expected to bounce back eventually as the world resumes its embrace of flying. But in the meantime, the airline industry, an increasingly important contributor of planet-warming carbon dioxide in the atmosphere, is citing the financial pain caused by the heath scare as reason to weaken longer-term efforts to fight global warming.
» Read article

» More about clean transportation       

FOSSIL FUEL INDUSTRY

Senate hearing on climate threat to econ
In Senate Hearing, Economic Experts Warn Climate Crisis Could Spur Financial Crash Like 2008
By Dana Drugmand, DeSmog Blog
March 12, 2020

Could the climate crisis precipitate a financial crash akin to or even greater than the one in 2008? With markets currently in turmoil due to the coronavirus pandemic, experts testified Thursday that there is high risk for an even larger economic crisis absent urgent climate policy.

A panel of economic experts brought this message to a handful of senators on Capitol Hill during a March 12 hearing convened by the Senate Democrats’ Special Committee on the Climate Crisis. This hearing on the economic risks of climate change delivered a clear warning that continued inaction on climate will result in enormous economic and societal consequences.

In his closing remarks, Sen. Whitehouse called out the fossil fuel industry and its allies for continued obstruction of climate policy.

“At the moment, what I want to share with the panel and with the world, is that while some of the worst behavior of the fossil fuel industry has been moderated or obscured through deniable intermediaries, and while in my opinion evil institutions like the Heartland Institute appear to be suffering a collapse which could not be more helpful, nevertheless the prevailing political weight of the fossil fuel industry on this body, both directly and through its vast array of intermediary front groups, remains completely opposed to any serious climate legislation,” Whitehouse said.
» Read article

Permian flare Exxon
The Future of Exxon and the Permian’s Flaring Crisis

By Nick Cunningham, DeSmog Blog
March 11, 2020

On March 5, there was a sense of drama and tension unlike in years past as ExxonMobil’s top executives gathered for their annual Investor Day presentation, a highly anticipated event where the oil major lays out its plans for the next few years in an effort to woo investors.

Long a darling of Wall Street, that day the oil major’s share price had fallen to a 15-year low. Battered by a volatile oil market and increasing scrutiny over the climate crisis, investors wanted answers on how Exxon planned on dealing with the shifting landscape.

“ExxonMobil is committed to being part of the solution,” CEO Darren Woods said. “We’re investing in new energy supplies to improve global living standards, working on technologies that are needed to reduce emissions and supporting sensible policies, such as those putting a price on carbon or regulations to reduce emissions of methane.”

Beneath that rhetoric is a bitter reality: Exxon flares more gas than any other company in the Permian Basin, America’s most prolific oil field, emitting massive volumes of greenhouse gases as well as toxic pollution that fouls the air in West Texas. The oil giant’s long history of funding climate science denial has given way to a craftier position of pledging support for climate goals while leaving an aggressive drilling and growth strategy mostly unchanged.
» Read article 

BP what it takes
The Loopholes Lurking in BP’s New Climate Aims

By Emily Bugden and Kelly Trout, Oil Change International, Blog Post
March 11, 2020

What would a meaningful climate commitment from BP look like?

Figure 2 below gives a sense of what a serious commitment to the Paris goals would look like for BP. It shows Rystad Energy’s projection of BP’s production to 2050, based on the company’s existing plans, against the rate of decline for oil and gas use under the most precautionary illustrative 1.5ºC energy pathway included in the IPCC special report (P1, which excludes BECCS).

If BP is serious about aligning with the full ambition of the Paris Agreement, the company’s investment in new exploration and expansion would need to stop today. More than that, it would need to decide which already-developed projects it will shut down early.
» Read article

Mr Misstep
Stock Market Turmoil Undermines Claimed Energy Dominance Benefits of US Shale Drilling
By Sharon Kelly, DeSmog Blog
March 9, 2020

Oil prices collapsed today amid falling energy demand and the global response to the novel coronavirus outbreak, as the number of confirmed COVID-19 cases worldwide reached over 113,000. On Friday, talks disintegrated inside the so-called OPEC+ alliance, which includes Organization of Petroleum Exporting Countries (OPEC) as well as non-OPEC members like Russia.

This breakdown kicked off a global oil price war that left Wall Street reeling on Monday, threatening the already troubled U.S. shale oil and gas industry and challenging the resilience of the Trump administration’s “energy dominance” theory that argues domestic shale oil production benefits national security and insulates the U.S. against the actions of other countries. Instead, relying on a shaky shale industry may have left the U.S. economy more vulnerable during times of crisis.

The price tag on a barrel of oil plunged over the weekend and continued its steep fall on Monday. Goldman Sachs Group warned that oil prices could fall as low as $20 a barrel. Meanwhile, the minimum price it would take for a new shale well to recoup its costs in Texas’ Permian basin is $48 a barrel, Goldman projects. In contrast, Saudi Arabia’s production costs are said to be $2.80 a barrel.
» Read article

what it means
Saudi Oil Price Cut Is a Market Shock With Wide Tremors
Oil producers in the United States and other nations brace for lower revenue, reduced investment and job losses as a global glut is compounded.
By Clifford Krauss, New York Times
March 9, 2020

HOUSTON — The sudden upheaval in the oil markets may claim victims around the world, from energy companies and their workers to governments whose budgets are pegged to the price of crude.

The fallout may take months to assess. But the impact on the American economy is bound to be considerable, especially in Texas and other states where oil drives much of the job market.

With the coronavirus outbreak slowing trade, transportation and other energy-intensive economic activities, demand is likely to remain weak. Even if Russia and Saudi Arabia resolve their differences — which led the Saudis to slash prices after Russia refused to join in production cuts — a global oil glut could keep prices low for years.
» Read article

boss move
How a Saudi-Russian Standoff Sent Oil Markets Into a Frenzy
Moscow refused to accept production cuts to offset the effect of the coronavirus outbreak. Now Saudi Arabia is trying an alternative: inflicting pain.
By Stanley Reed, New York Times
March 9, 2020

For the last three years, two factors have been hugely influential in the oil markets. The first has been the surge of shale oil production in the United States, which has turned the country from a large oil importer to an increasingly important exporter. The second is the alliance between Saudi Arabia and Russia, which recently have cooperated in trimming production to try to counter shale’s impact.

Now that cooperation between two of the world’s three largest oil producers — the third is the United States — appears to be at an end. Saudi Arabia, as the dominant member of the Organization of the Petroleum Exporting Countries, last week proposed production cuts to offset the collapse in demand from the spreading coronavirus outbreak. Russia, which is not an OPEC member, refused to go along. And the impasse has turned into open hostilities.
» Read article

dog day Dow
As Dow falls by 2,000 points, White House calls on Wall Street executives
Wall Street executives are to meet with President Trump on Wednesday to discuss the response to the outbreak.
By Lucy Bayly, NBC News
March 9, 2020

The Dow Jones Industrial Average plunged by more than 2,000 points Monday afternoon, part of a global market rout caused by collapsing oil prices and fears that the coronavirus epidemic would stymie the global economy.

Traders had anticipated a bloodbath on Monday, after oil prices cratered overnight by 30 percent and European exchanges saw their worst day since June 23, 2016, when Britain voted to leave the European Union.
» Read article

cheap and crude
Oil Prices, Stocks Plunge After Saudi Arabia Stuns World With Massive Discounts
By Avie Schneider, Camila Domonoske, NPR Morning Edition
March 8, 2020

Oil prices and stock indexes were in freefall Sunday after Saudi Arabia announced a stunning discount in oil prices — of $6 to $8 per barrel — to its customers in Asia, the United States and Europe.

Benchmark Brent crude oil futures dove 30% — the steepest drop since the Gulf War in 1991 — in early trading Sunday night before recovering slightly to a drop of 24%. The benchmark Brent crude oil price fell below $34 per barrel.

The oil price shocks reverberated throughout financial markets. Dow futures dropped more than 1,000 points, S&P 500 futures hit their limits after tumbling 5%, and the key 10-year Treasury note yield fell below 0.5%, a record low.

Saudi Arabia, the world’s second-largest producer, this weekend said it will actually boost oil production instead of cutting it to stem falling prices, in a dramatic reversal in policy.
» Read article

expensive and underperforming
‘Expensive and underperforming’: energy audit finds gas power running well below capacity
Report challenges justification for [Australia] government underwriting of up to five new gas-fired generators
By Adam Morton, the Guardian
March 7, 2020

Australia’s existing gas power plants are running well below capacity, challenging the justification for a Morrison government program that may support up to five new gas-fired generators, according to a new report.

Energy analyst Hugh Saddler, from Australian National University’s Crawford school of public policy, found the combined-cycle gas plants in the national grid – those expected to be available near constantly, sometimes described as “baseload” – ran at just 30% capacity across the past 18 months.

The Australia Institute, the thinktank that publishes Saddler’s monthly energy audit which includes the gas analysis, said it suggested the government’s commitment to underwrite new gas generators made little sense, and if it wanted to increase supply it should find ways to get the current fleet to operate at greater capacity.
» Read article

» More about the fossil fuel industry

THE PLASTICS / FRACKING CONNECTION


planet plastic
Planet Plastic

How Big Oil and Big Soda kept a global environmental calamity a secret for decades
By Tim Dickinson, Rolling Stone
March 3, 2020

More than half the plastic now on Earth has been created since 2002, and plastic pollution is on pace to double by 2030. At its root, the global plastics crisis is a product of our addiction to fossil fuels. The private profit and public harm of the oil industry is well understood: Oil is refined and distributed to consumers, who benefit from gasoline’s short, useful lifespan in a combustion engine, leaving behind atmospheric pollution for generations. But this same pattern — and this same tragedy of the commons — is playing out with another gift of the oil-and-gas giants, whose drilling draws up the petroleum precursors for plastics. These are refined in industrial complexes and manufactured into bottles, bags, containers, textiles, and toys for consumers who benefit from their transient use — before throwing them away.

“Plastics are just a way of making things out of fossil fuels,” says Jim Puckett, executive director of the Basel Action Network. BAN is devoted to enforcement of the Basel Convention, an international treaty that blocks the developed world from dumping hazardous wastes on the developing world, and was recently expanded, effective next year, to include plastics. For Americans who religiously sort their recycling, it’s upsetting to hear about plastic being lumped in with toxic waste. But the poisonous parallel is apt. When it comes to plastic, recycling is a misnomer. “They really sold people on the idea that plastics can be recycled because there’s a fraction of them that are,” says Puckett. “It’s fraudulent. When you drill down into plastics recycling, you realize it’s a myth.”
» Read article

» More about the plastics / fracking connection  

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