General
News
Measuring Methane: Getting Accurate Data For New Regulations.
According to the Albuquerque Journal, “Since the fall, two Cessna aircraft have flown daily over New Mexico’s southeastern plains to snap detailed images of methane plumes billowing
out of oil and gas operations in the Permian Basin. The aircraft use special cameras equipped with spectrometers that measure methane through reflected sunlight while simultaneously collecting optical images backed by GPS to precisely identify where the plumes
are coming from. California-based Kairos Aerospace developed and patented the cameras, known as ‘LeakSurveyors,’ which it attaches to the wings of rented Cessnas. That allows the company to map hundreds of miles of Permian-based methane emissions every day.
Kairos plans to survey the entire Permian Basin in both West Texas and southeastern New Mexico, covering a total of 60,000 square miles by the end of this year.
‘We’re looking at everything, from well pads to pipelines,’ Kairos co-founder and CEO Steve Deiker told the Journal. ‘We can pinpoint emissions down to 20 feet or so from the source to
actually see where the leak is coming from. It will be the largest comprehensive survey of methane leaks in an oil field ever done.’” [Albuquerque Journal,
5/6/19 (=)]
NYC Pipeline Extension Gets Green Light.
According to E&E News, “The Federal Energy Regulatory Commission has issued the certificate for a major pipeline expansion that would move Pennsylvania natural gas for heating purposes
to much of New York City. On a concurring vote of three commissioners and a dissent in part by Democrat Richard Glick, FERC enabled the expansion of the Transcontinental Gas Pipe Line Co. (Transco) pipeline network with a new build-out connecting Pennsylvania,
New Jersey and New York through the 47-mile Northeast Supply Enhancement project. Transco estimates the cost of the project to be about $926.5 million. Democratic Commissioner Cheryl LaFleur joined with her Republican colleagues to grant the certificate after
the company behind the project provided supplemental greenhouse gas emission information about downstream impacts — a new development in pipeline greenhouse gas considerations. FERC staff did not include that data in the underlying environmental impact statement.
It did include data for direct greenhouse gas emissions from the project’s construction and operation. ‘I appreciate companies proactively submitting specific information into the record to assist the Commission in quantifying and considering the downstream
indirect impacts on a proposed project,’ LaFleur said in her concurrence.” [E&E News,
5/3/19 (=)]
Officials Face Risk As They Weigh Appeal On Ruling Reinstating Drilling Ban.
According to Inside EPA, “Top Trump administration officials are debating whether to appeal a precedential federal court ruling reinstating an Obama-era ban on offshore drilling in
much of the Arctic and parts of the Atlantic, a decision that could carry major legal and political risks for the administration’s deregulatory agenda and its efforts to encourage fossil fuel development. Sources say that officials in the Interior and Justice
departments are debating whether to appeal the March 29 ruling in League of Conservation Voters, et al. v. Donald Trump, et al., by Judge Sharon Gleason of the federal court in Alaska. While the decision focused relatively narrowly on Trump’s efforts to revoke
Obama-era moratoria, sources said at the time that it could also set a precedent in pending litigation over Trump’s similar efforts to scale back the size of two national monuments that Obama designated in Utah. The debate, which sources say will ultimately
be settled by DOJ’s solicitor general (SG), is pitting officials who believe Gleason’s decision is solidly reasoned and unlikely to be overturned on appeal, thus creating a risk of a higher court precedent, against others who want to take the case all the
way to the Supreme Court if necessary in a bid to advance the Trump’s administration’s ‘energy dominance’ pledge.” [Inside EPA,
5/3/19 (=)]
A Fringe Demand Goes Mainstream: Stop Drilling And Mining.
According to E&E News, “Democrats are embracing a once-fringe demand that could cut emissions at the scale of the Obama administration’s biggest climate policies. A growing number
of presidential candidates want to lock down the vast fossil fuel deposits sitting beneath federally owned lands and waters. President Obama resisted such calls until the end of his term, when he halted new leases for coal mines and some offshore drilling.
Now, White House hopefuls want to go even further on their first day in office. ‘Keep it in the ground’ has transformed from an activist chant into a mainstream campaign promise thanks to a Democratic electorate increasingly attuned to climate change. It also
signals a backlash against President Trump’s aggressive drilling proposals. ‘Any candidate that comes through the Low Country, or South Carolina in general, needs to be talking about banning offshore drilling. They need to be talking about protecting our beaches.
And if they don’t, I can’t imagine them having much credibility with our voters,’ said Rep. Joe Cunningham, a South Carolina Democrat who used the issue to flip a red seat in last year’s midterms.” [E&E News,
5/6/19 (=)]
Court Delays Block Pipeline Construction In 2019.
According to E&E News, “An executive for the company proposing the Keystone XL oil pipeline from Canada’s oil sands into the U.S. says it has missed the 2019 construction season due
to court delays. TransCanada Corp. Executive Vice President Paul Miller made the statement during a Friday earnings call with analysts. The company also announced it was changing its name to TC Energy Corp. Plans to begin construction of the long-delayed pipeline
got blocked last November when a federal judge in Montana ordered additional environmental reviews of the project. President Trump has been trying to push it through. He issued a new permit for Keystone XL last month. The $8 billion line would carry up to
830,000 barrels (35 million gallons) of crude daily, along a route stretching from Canada to Nebraska.” [E&E News,
5/6/19 (=)]
Anadarko Bidding War Heats Up.
According to E&E News, “Flush with a $10 billion commitment from Warren Buffett, Occidental Petroleum Corp. ramped up the pressure yesterday in its bidding war for Anadarko Petroleum
Corp. Occidental announced it’s increasing the cash portion of its offer to $59 a share, up from $38 a share, in an effort to convince Anadarko’s board to reject an offer from Chevron Corp. Anadarko announced April 12 it had accepted Chevron’s $33 billion
cash-and-stock offer, while turning down Occidental’s offer of $38 billion. Anadarko implied at the time that Chevron was a better deal because it’s a larger, more stable company. Adding more cash to the deal will help Occidental undercut that argument — the
cash portion now makes up more than three-fourths of its proposal. ‘We remain perplexed at your apparent resistance to obtaining far more value for Anadarko shareholders which has been expressed clearly through our interactions over the last week,’ Occidental
CEO Vicki Hollub wrote in a letter to Anadarko’s board. Both Occidental and Chevron have their eye on Anadarko’s position in the Permian Basin, one of the most productive oil fields in the world. Chevron, Exxon and other supermajors are moving into the field
seeking low-cost oil as a hedge against any price disruptions from climate change regulations (Energywire, April 23).” [E&E News,
5/6/19 (=)]
Chad Ellwood
Research Associate
202.448.2877 ext. 119