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Energy Transfer, Banks Lost Billions by Ignoring Early Dakota Access Pipeline Concerns

Energy Transfer, Banks Lost Billions by Ignoring Early Dakota Access Pipeline Concerns

Anti Dakota Access protesters in Philadelphia

Before that application was filed, on September 30, 2014, the Standing Rock Sioux Tribe met with ETP to express concerns about the Dakota Access pipeline (DAPL) and fears of water contamination. Though the company, now known as Energy Transfer, had re-routed a river crossing to protect the state capital of Bismarck against oil spills, it apparently turned a deaf ear to the Tribe’s objections.

Following that approach proved to be a very costly decision, a new analysis concludes, with ETP, banks, and investors taking billions in losses as a result.

This case study estimates that the costs incurred by ETP and other firms with ownership stake in DAPL for the entire project are not less than $7.5 billion, but could be higher depending on the terms of confidential contracts,” a new report, “Social Cost and Material Loss: The Dakota Access Pipeline,” concludes, noting that represented nearly double the initial project cost. “The banks that financed DAPL incurred an additional $4.4 billion in costs in the form of account closures, not including costs related to reputational damage.”

In addition, the company’s “poor social risk management” caused taxpayers and “other local stakeholders” to incur at least $38 million in costs, the report concludes.


“This is what it’s all about,” protestor says. “Sacred water.” Not sure guys on left agree.


As opposition to DAPL grew from a handful of locals to a movement attracting thousands of supporters to Standing Rock and backers worldwide, construction fell behind schedule and over-budget, with costs rising from a predicted $3.8 billion to at least $7.5 billion, the new report finds.

…click on the above link to read the rest of the article…

Decades of Denial and Stalling Have Created a Climate Crunch

Decades of Denial and Stalling Have Created a Climate Crunch

Firefighters spray water on a 2013 bush fire in Australia

In a 1965 speech to members, American Petroleum Institute president Frank Ikard outlined the findings of a report by then-president Lyndon Johnson’s Science Advisory Committee, based in part on research the institute conducted in the 1950s.

The substance of the report is that there is still time to save the world’s peoples from the catastrophic consequence of pollution, but time is running out,” Ikard said, adding, “One of the most important predictions of the report is that carbon dioxide is being added to the earth’s atmosphere by the burning of coal, oil, and natural gas at such a rate that by the year 2000 the heat balance will be so modified as possibly to cause marked changes in climate beyond local or even national efforts.”

Many scientists were reaching similar conclusions, based on a body of evidence that had been growing at least since French mathematician Joseph Fourier described the greenhouse effect in 1824. In the 1950s, Russian climatologist Mikhail Budykoexamined how feedback loops amplify human influences on the climate. He published two books, in 1961 and 1962, warning that growing energy use will warm the planet and cause Arctic ice to disappear, creating feedback cycles that would accelerate warming.

The predictions have proven to be accurate, and evidence for human-caused global warming has since become indisputable.

What happened? Over the ensuing decades, the fossil fuel industry didn’t try to resolve what it knew would become a crisis. Instead, it worked to downplay and often deny the reality of climate change and to sow doubt and confusion. Knowingly putting humanity — and countless other species — at risk for the sake of profit is an intergenerational crime against humanity, but it’s unlikely any perpetrators will face justice.

…click on the above link to read the rest of the article…

Climate Scientist Michael Mann Releases Emails Ahead of University of Arizona Response to E&E Legal

Climate Scientist Michael Mann Releases Emails Ahead of University of Arizona Response to E&E Legal

Michael Mann

Nearly a decade ago, in late 2009, a server at the University of East Anglia was hacked and thousands of emails from the university’s Climatic Research Unit were subsequently released in the run-up to the Copenhagen climate talks. Within these thousands of emails, climate change deniers attempted to cherry-pick a few sentences to falsely suggest scientific malfeasance. This so-called “Climategate” incident managed to briefly cast doubt on the public’s acceptance of the scientific realities of climate change. But ultimately, numerous investigations found there was no wrongdoing, and the media storm was found to only have a fleeting public impact.

I have discussed the manufactured scandal in the context of the larger industry-funded, bad faith attack on climate science in my book The Hockey Stick and the Climate Wars.

In increasingly desperate attempts to recreate this short-lived machination, there have since been repeated efforts to obtain my and other climate scientists’ emails via fishing expeditions through misuse of the legal system. Led by David Schnare, one coal-funded group masquerading as a think tank — which currently goes by the name of Energy & Environment Legal Institute(E&E Legal) — brought a lawsuit in Virginia seeking to obtain virtually every email I had ever sent or received during the six years I was a professor at the University of Virginia.

The case was struck down by the Virginia Supreme Court, but E&E Legal has continued to essentially relitigate the matter in friendlier forums. E&E Legal targeted two other prominent climate scientists at the University of Arizona, Jonathan Overpeck and Malcolm Hughes (the latter being one of my longtime co-authors), seeking a total of 13 years of emails from them, including correspondence with or about me or my research.

…click on the above link to read the rest of the article…

Polish Government Issues Terrorism Alert in Katowice Days Before Start of UN Climate Talks

Polish Government Issues Terrorism Alert in Katowice Days Before Start of UN Climate Talks

The Polish government has implemented a terrorism alert in the province where the annual UN climate talks are about to start.

Climate campaigners are warning of a “tense atmosphere” in and around the city of Katowice in southern Poland, where the global climate negotiations, known as COP24, are due to kick off on Monday.

Katowice, a city of around 300,000 people — and the smallest city to host the UN climate talks yet — is about to welcome nearly 30,000 people for the climate conference, including heads of state, government representatives and UN officials.

Over the weekend, Polish Prime Minister Mateusz Morawiecki has signed an order declaring an ALFA alert  — the first of four increasing terrorism security levels — across the entire southern province of Silesia, where Katowice is located, and the city of Krakow.

‘ALFA’ alert 

In a statement, the government confirmed the heightened security measures had been introduced in connection with COP24and will remain in force for the entire length of the talks, until December 15.

The heightened alert has seen increased controls implemented across the affected areas, with residents are asked to report any suspicious situation or individual.

It also means enhanced security forces will be deployed in cases of emergency and that officers can control and check vehicles as well as access private communications.

The Polish border police also confirmed that Poland’s borders with Germany, Lithuania, the Czech Republic and Slovakia had temporarily been restored and that the border could only be crossed in designated areas, with further checks being carried out at ports and airports.

The measures are due to last for the entirety of the climate conference with random checks being carried out for people entering Poland.

…click on the above link to read the rest of the article…

Ocean Warming Study Criticism Shows How the Scientific Method Works

Ocean Warming Study Criticism Shows How the Scientific Method Works

Overhead view of shark swimming in the Maldives

Errors in a recent ocean warming study illustrate global warming’s complexity. They also show the depths to which climate science deniers will stoop to dismiss or downplay evidence for human-caused climate change.

The study by researchers from the U.S., China, France and Germany concluded, “ocean warming is at the high end of previous estimates” and global warming might be advancing faster than scientists thought. British researcher Nic Lewis, who has a math and physics background, found discrepancies, which he noted on a skeptic’s blog. The scientists acknowledged the errors and offered a correction to the study, published in Nature.

The controversy illustrates how the scientific method works. Studies are often amended or overturned as new information becomes available or as inconsistencies or errors are pointed out.

Study co-author Ralph Keeling, a geosciences professor at Scripps Institution of Oceanography in California, noted, “The overall conclusion that oceans are trapping more and more heat mirrors other studies and is not inaccurate, but the margin of error in the study is larger than originally thought.”

Some climate science deniers have seized on the error to imply it discredits the mountains of evidence for human-caused climate change amassed by scientists from around the world for close to 200 years — evidence accepted by every legitimate scientific academy and institution and every government except the current U.S. administration.

Those who understand science haven’t taken such a hard line. Even Lewis, who’s skeptical about climate models and warming rate predictions, said the study’s methodology is “novel, and certainly worthy of publication” and that the errors were “serious (but surely inadvertent).” He criticized Nature for not scrutinizing the study better, and mainstream media for extensive, “unquestioning” coverage.

…click on the above link to read the rest of the article…

Extinction Rebellion: From the UK to Ghana and the US, Climate Activists Take Civil Disobedience World-Wide

Extinction Rebellion: From the UK to Ghana and the US, Climate Activists Take Civil Disobedience World-Wide

More than 100 people were arrested during a week of action across the UK as protesters demanded the government treat the threats posed by climate change as a crisis and take drastic steps to cut emissions to net zero by 2025.

Thousands of people joined a mass protest that blocked roads and bridges in central London, with some gluing themselves to government buildings to draw attention to what they see as climate breakdown.

This was the birth of Extinction Rebellion, a movement that calls for mass economic disruption using non-violent direct action and civil disobedience to halt the destruction of the planet and its wildlife and prevent catastrophic climate change.

Around the world, environmental campaign groups and activists watched the action unfold. In London, there is a growing hope that this could be the start to a new form of international mobilisation for climate action.

‘A game changer’

From the US to Ghana and New Zealand to Western Europe, campaigners have shown enthusiastic support for Extinction Rebellion’s declaration of climate emergency.

Jamie Henn, co-founder of the campaign group 350, said watching the launch of Extinction Rebellion in London from the UShad been “incredibly exciting” and embodied “a growing sense of anger and desire for radical solutions”.

Henn said he was confident Extinction Rebellion would inspire similar non-violent direct climate actions in the US over the coming months, but whether the movement was one that could endure the test of time was yet to be seen.

Margaret Klein Salamon, founder of the US grassroot group Climate Mobilization, said she believed Extinction Rebellion is “a game changer” for the climate movement.

…click on the above link to read the rest of the article…

‘Time is Running Out,’ American Petroleum Institute Chief Said in 1965 Speech on Climate Change

‘Time is Running Out,’ American Petroleum Institute Chief Said in 1965 Speech on Climate Change

Fire crew in California fire

The warning is clear and dire — and the source unexpected. “This report unquestionably will fan emotions, raise fears, and bring demand for action,” the president of the American Petroleum Institute (API) told an oil industry conference, as he described research into climate change caused by fossil fuels.

The substance of the report is that there is still time to save the world’s peoples from the catastrophic consequence of pollution, but time is running out.”

The speaker wasn’t Mike Sommers, who was named to helm API this past May. Nor was it Jack Gerard, who served as API’s president for roughly a decade starting in 2008.

The API president speaking those words was named Frank Ikard — and the year was 1965, over a half-century ago.

It was the same year that Dr. Martin Luther King Jr. led a civil rights march from Selma to Montgomery, Muhammad Ali felledSonny Liston in the first round, and Malcom X was fatally shot in New York. The first American ground combat troops arrived in Vietnam and President Lyndon B. Johnson signed the law establishing Medicaid and Medicare.

It would be another four years before American astronaut Neil Armstrong first set foot on the moon — and another decade before the phrase “global warming” would appear for the first time in a peer-reviewed study.

And 1965, according to a letter by Stanford historian Benjamin Franta published this week in the peer-reviewed journal Nature, was the year that President Johnson’s Science Advisory Committee published a report titled “Restoring the Quality of Our Environment,” whose findings Ikard described at that year’s annual API meeting.

…click on the above link to read the rest of the article…

Pick Your Poison: The Fracking Industry’s Wastewater Injection Well Problem

Pick Your Poison: The Fracking Industry’s Wastewater Injection Well Problem

Oklahoma fracking industry site

The first known oil well in Oklahoma happened by accident. It was 1859 and Lewis Ross was actually drilling for saltwater(brine), not oil. Brine was highly valued at the time for the salt that could be used to preserve meat. As Ross drilled deeper for brine, he hit oil. And people have been drilling for oil in Oklahoma ever since.

Lewis Ross might find today’s drilling landscape in the Sooner State somewhat ironic. The oil and gas industry, which has surging production due to horizontal drilling and fracking, is pumping out huge volumes of oil but even more brine. So much brine, in fact, that the fracking industry needs a way to dispose of the brine, or “produced water,” that comes out of oil and gas wells because it isn’t suitable for curing meats. In addition to salts, these wastewaters can contain naturally occurring radioactive elements and heavy metals.

But the industry’s preferred approaches for disposing of fracking wastewater — pumping it underground in either deep or shallow injection wells for long-term storage — both come with serious risks for nearby communities.

In Oklahoma, drillers primarily use deep injection wells for storing their wastewater from fracked shale wells, and while the state was producing the same amount of oil in 1985 as in 2015, something else has changed. The rise of the fracking industry in the central U.S. has coincided with a rise in earthquake activity.

From 1975 to 2008, Oklahoma averaged from one to three earthquakes of magnitude 3 or greater a year. But by 2014, the state averaged 1.6 of these earthquakes a dayIt now has a website that tracks them in real time.

…click on the above link to read the rest of the article…

Matthew and Sarah Elliott: How a UK Power Couple Links US Libertarians and Fossil Fuel Lobbyists to Brexit

Matthew and Sarah Elliott: How a UK Power Couple Links US Libertarians and Fossil Fuel Lobbyists to Brexit

The Elliotts network map

If you have detected a distinctly American flavour to the rampant lobbying in Westminster corridors over a Brexit deal, there is a good reason why.

A close look at the transatlantic connections of the London-based groups pushing for the most deregulated form of Brexit reveals strong ties to major US libertarian influencers. These include fossil fuel magnates the Koch brothers — known for funding climate science denial around the world — and the man who bankrolled Donald Trump’s campaign, Robert Mercer.

At the heart of this network lies a little-known power couple, Matthew and Sarah Elliott. Together, the husband and wife team connect senior members of the Leave campaign and groups pushing a libertarian free-market ideology from offices in Westminster’s Tufton Street to major US libertarian lobbyists and funders.

Collectively, the network aims to use Brexit as an opportunity to slash regulations in the UK, paving the way for a wide-ranging USUK free-trade deal that could have disastrous consequences for the environment.

The current draft withdrawal agreement appears to try and provide some protection for the current level of environmental regulation — at least in principle. But politicians associated with this transatlantic network are lobbying hard for the draft deal to be scrapped, along with those protections.

This DeSmog UK investigation reveals the strength of the ties between Matthew and Sarah Elliott, UK lobbyists and politicians, and US groups with vested interests in fossil fuels keen to profit from deregulation.

It shows how organisations with strong ties to the Koch Brothers and Robert Mercer increased their political activities in the UKimmediately before and after the Brexit referendum.

…click on the above link to read the rest of the article…

What Terrible Injustices Are Hiding Behind American Energy Habits?

What Terrible Injustices Are Hiding Behind American Energy Habits?

Wayuu woman makes soup in La Guajira, Colombia

New research helps provide some clarity. A study led by Noel Healy from Salem State University in Massachusetts analyzes the hidden but interconnected injustices that can occur throughout the world’s fossil fuel supply chains.

The research project spanned three sites: a power plant in Salem, Massachusetts, recently decommissioned and converted from coal-fired to natural gas; the Cerrejón open-pit coal mine in La Guajira, Colombia, which was the primary coal supplier to the Salem plant for over a decade; and hydraulic fracturing (fracking) sites in Pennsylvania, which now supply natural gas to the power plant in Salem.

A Coal Mine’s Impacts

Healy and his colleagues Jennie Stephens from Northeastern University and Stephanie Malin from Colorado State University reveal what they call “interlinked chains of injustices,” or how local energy decision-making in one region generates social and environmental injustices in other, distant ones.

Reliance on coal mining in La Guajira to turn on the lights in Massachusetts supported a mine that over more than three decades has forcibly displaced several nearby indigenous communities and tried to suppress, with bloody results, union activity. The mine’s operations have been linked to widespread pollution from coal dust and the destruction of fishing and hunting grounds, leaving La Guajira plagued by food insecurity.

Some villages were bulldozed, communities forcibly removed, like the Afro-Colombian community of Tabaco,” said Healy, who has conducted research surrounding the Cerrejón mine. “Others were displaced via the ‘slow violence’ of contaminated farmland and drinking water.”

…click on the above link to read the rest of the article…

Peak Shale: Is the US Fracking Industry Already in Decline?

Peak Shale: Is the US Fracking Industry Already in Decline?

Fracking well sites from the air, in Jonah, Wyoming

But the industry shouldn’t get complacent, warned Robert Clarke of energy industry research and consulting group Wood Mackenzie. Cracks already are starting to emerge in the optimistic forecasts of how much these shale formations can produce, which is a bad sign for turning around the industry’s struggling finances.

It was only the best rigs, with the most experienced crews, drilling the best rock at the lowest service costs,” which were doing well in 2016, said Clarke at the 2018 Energy Information Administration (EIA) annual conference in June. “If you are a producer, it’s very dangerous to think that that is the new norm.”

But producers seemed to think it was the new normal and plowed ahead, going all in on fracking in the Permain Basin, currently seen as the best shale play in the country.

Granted, the results have been impressive from a production standpoint. The EIA expects “Permian regional production to average 3.3 million [barrels per day] in 2018 and 3.9 million [barrels per day] in 2019.”  Those numbers may reach 5.4 million barrels a day by 2023, according to oil industry consultants IHS Markit.

While the Permian’s oil production has been prolific, it hasn’t translated into profits. “Why Aren’t Permian Oil Producers Profitable?” asked a headline on industry publication Oilprice.com this past May.

…click on the above link to read the rest of the article…

A Field Guide to the Petrochemical and Plastics Industry

A Field Guide to the Petrochemical and Plastics Industry

Petrochemical plant in Saudi Arabia

The shale gas industry has been trying to build demand for fossil fuels from its fracked oil and gas wells by promoting the construction of a new petrochemical corridor in America’s Rust Belt and expanding the corridor on the Gulf Coast. To help demystify terms like “natural gas liquids” and “cracker plants,” DeSmog has begun building a guide to some of the equipment and terms used in the plastics and petrochemical industries.

This guide, which will expand over time, is intended to serve as an informal glossary of sorts and an introduction to what happens to fossil fuels that are transformed into chemicals, plastics, vinyl, Styrofoam and a variety of other materials.

Petrochemical Production and the Climate

Fracking for Plastics
This field guide is part of Fracking for Plastics, a DeSmog investigation into the proposed petrochemical build-out in the Rust Belt and the major players involved, along with the environmental, health, and socio-economic implications.

These fossil fuels have a significant global warming impact of their own. The methane leaks associated with the natural gas drilling and distribution industry are so pronounced that many experts say burning natural gas for electricity is worse for the climate than burning coal.

While hydrocarbons that are used as raw materials for petrochemical products aren’t burned (and therefore don’t release carbon dioxide into the atmosphere), that leaky infrastructure still results in methane pollution. Methane itself is a powerful greenhouse gas, capable of warming the climate about 86 times faster than an equal amount of carbon dioxide during the first decade after it’s released to the atmosphere.

Making petrochemicals also requires a huge amount of energy — some of the largest petrochemical plants like crackers may have their own power plants on site — and that energy comes from burning fossil fuels.

…click on the above link to read the rest of the article…

Why Canadian Tar Sands Oil May Be Doomed

Why Canadian Tar Sands Oil May Be Doomed

Fort McMurray, Alberta, Canada, tar sands oil operations

Producers are forced to keep cranking out product and selling it at a loss to cover the massive costs required to start one of these sprawling unconventional oil operations, a point made painfully clear when Alberta wildfires in 2016 forced some tar sands operators to shut down.

“I do think they’ll start up quickly once the danger from the fire is gone because there is a lot of motivation to do that,” Jackie Forrest, an energy economist for Arc Financial Corp, told The Globe and Mail. “They have a lot of fixed costs so they’re going to be motivated to get some revenue to pay for those costs that aren’t going away.”

In the face of such challenging economics, what are Canadian tar sands producers doing? Tapping more oil than ever.

In June 2018 Canada set a new record for exporting oil to the U.S., hitting well over three million barrels per day. This record coincided with another one for oil exported by rail from Canada to the U.S. The U.S. is currently the only major market for Canadian crude, with 99 percent of its exports going to either U.S. refineries or ports for export.


Source: U.S. Energy Information Administration

America Is Maxing out on Canadian Crude

American refineries certainly enjoy buying Canadian crude at such low prices. How low are the prices? As the Financial Post reported in mid-October, Western Canadian Select (WCS) was $19 a barrel — approximately $50 a barrel cheaper than a barrel of the American oil standard known as Western Texas Intermediate (WTI).

…click on the above link to read the rest of the article…

Big Oil Cheers Trump’s ‘New NAFTA’ But Mexico Could Complicate Things

Big Oil Cheers Trump’s ‘New NAFTA’ But Mexico Could Complicate Things

While the oil and gas industry has lauded the new trade deal that may soon replace the North American Free Trade Agreement (NAFTA), a provision added by Mexico, along with its new president’s plan to ban fracking, could complicate the industry’s rising ambitions there.

The new agreement, known as the United States–Mexico–Canada Agreement (USMCA), has faced criticism as being tantamount to NAFTA 2.0 — more of a minor reboot that primarily benefits Wall Street investors and large corporations, including oil and gas companies.

Mercilessly critiqued by then-candidate Donald Trump during the 2016 presidential campaign, NAFTA is now the second major trade deal kicked to the curb by now-President Trump. The other, the Trans-Pacific Partnership (TPP), was canceled days intoTrump’s presidency.

After the most recent deal’s announcement, the oil and gas industry offered praise for USMCA. The White House even pointed this out in a press release, highlighting a quote given by the U.S. industry’s major trade group, the American Petroleum Institute (API).

“We urge Congress to approve the USMCA. Having Canada as a trading partner and a party to this agreement is critical for North American energy security and U.S. consumers,” said Mike Sommers, President and CEO of API. “Retaining a trade agreement for North America will help ensure the U.S. energy revolution continues into the future.”

In its own press release declaring its support for USMCA, API further spelled out the parts of the deal it supports.

Those include “continued market access for U.S. natural gas and oil products, and investments in Canada and Mexico; continued zero tariffs on natural gas and oil products; investment protections to which all countries commit and the eligibility for Investor-State Dispute Settlement (ISDS) for U.S. natural gas and oil companies investing in Mexico…

…click on the above link to read the rest of the article…

US Oil Exports Are Exceeding Almost All Predictions—Thanks to Fracking

US Oil Exports Are Exceeding Almost All Predictions—Thanks to Fracking

Oil tanker in the Houston ship channel

And crude oil exports are supposed to double by 2020, according to the San Antonio News-Express. That’s a lot of oil — and almost all of it is fracked.

That should come as no surprise. In August 2015, my story for DeSmog, “Lifting Ban On U.S. Crude Oil Export Would Enable Massive Fracking Expansion,” pretty much sums up what is happening now. However, that’s not what the industry experts at the time were predicting.

Last year I noted how quickly these experts, from energy consultants to academics, were proven wrong in their predictions about the effects of overturning the 40-year-old ban, which occurred in December 2015.

If exports double by 2020, those experts will be that much more wrong. Perhaps the best example of this phenomenon is from a December 2015 newsletter from CME Group — a commodities trading group that stood to profit greatly from trading U.S.exported oil. The newsletter, which takes a question-and-answer format, included the following:

Question #2: Will lifting the crude oil export ban result in greater U.S. production?

The answer: No.

Couldn’t get more wrong that, but CME now lists U.S. WTI crude on its website as one of the top commodities it trades. I guess there’s a lesson here about whether to trust a commodities trader.

…click on the above link to read the rest of the article…

Olduvai IV: Courage
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Olduvai II: Exodus
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