General
News
Trump
Rallies Oil-And-Gas Workers In The Permian Basin Against Democrats Ahead Of The November Election.
According
to KSAT, “President Donald Trump sought to give a morale boost to the beleaguered Texas energy industry during a visit Wednesday to the Permian Basian, while also rallying oil-and-gas workers against Democrats ahead of the November election. ‘We are telling
the Washington politicians trying to abolish American energy: Don’t mess with Texas,’ Trump said during an afternoon speech at Double Eagle Energy in Midland, following an oil rig tour and fundraiser in nearby Odessa. Trump’s comments doubled as part campaign
speech, part policy announcement, as he repeatedly assailed Democrats’ energy proposals and predicted their presumptive presidential nominee, Joe Biden, would not ‘do too well in Texas’ as a result. Polls continue to show a close competition in the once-solidly
red state. As for policy, Trump announced an extension for liquified natural gas exporters, following through with the Department of Energy’s proposal earlier this year to extend export contracts through the year 2050. Trump also announced permits ‘granting
approval to vital pipeline and railway infrastructure’ along the U.S.-Mexico border, including ‘two permits allowing the export of Texas crude to Mexico,’ which he signed after speaking, alongside Texas Republicans who joined him in Midland. For now, though,
the industry continues to face severe headwinds from the coronavirus pandemic. Trump touted his administration’s actions to help the reeling industry earlier this year, including a deal with Saudi Arabia and Russia to drastically cut production.” [KSAT,
7/29/20
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New
Space Satellite Pinpoints Industrial Methane Emissions. According
to Phys.org, “Methane may not be as abundant in the atmosphere as carbon dioxide, but with a global warming potential many times greater than carbon dioxide, monitoring and controlling industrial emissions of this potent gas is imperative to helping combat
climate change. GHGSat is a New Space initiative that draws on Copernicus Sentinel-5P data for mapping methane hotspots—and its Claire satellite has now collected more than 60 000 methane measurements of industrial facilities around the world. Copernicus Sentinel-5P’s
role is to map a range of atmospheric gases around the globe every 24 hours. Its Tropomi spectrometer delivers data with a resolution as high as 7 km × 5.5 km for methane, but these data can’t be used to pinpoint specific facilities responsible for emissions.
However, GHGSat’s demonstration satellite ‘Claire’ can, but it is helped with a bit of guidance from Sentinel-5P. Drawing on Sentinel-5P data, the GHGSat tasks Claire to home in on methane point sources. Using this approach, GHGSat has been able to attribute
large methane leaks to specific industrial facilities. This is catching the attention of managers responsible for emissions from industries such as oil and gas, waste management, mining, agriculture and power generation. The Climate Investments arm of the
Oil & Gas Climate Initiative (OGCI) has taken particular interest, including an investment in GHGSat. Managing Director of Ventures for OGCI Climate Investments, Rhea Hamilton, says, ‘GHGSat’s methane monitoring product has achieved impressive results and
is attractive to oil and gas operators.” [Phys.org, 7/29/20
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Op-Ed:
We Won't Back Down On Fracking. According
to an op-ed by Leslie Weise in Colorado Politics, “Regarding Gov. Polis’ recent announcement that he has worked with both the oil and gas industry and environmental groups to withdraw ballot measures in 2020 and prevent future ballot measures through 2022:
The 32 environmental groups that make up the Colorado Coalition for a Livable Climate (CCLC) wish to clarify that not one of our groups was included in those ‘conversations’ (‘Give pivotal new oil and gas law a chance,’ July 24). The governor also failed to
contact Safe & Healthy Colorado and Colorado Rising, the only two environmental groups directly involved in pursuing ballot measures this year. Our member groups also strongly disagree with the governor’s opinions about the low value of ballot measures and
the effectiveness of the implementation of SB-181. The Colorado Oil & Gas Conservation Commission’s disastrous handling of SB-181 during its weak rule making attempts has only been effective in allowing the oil and gas industry to continue their status-quo,
harmful drilling activities nearly unabated. For example, the current proposed setback rulemaking by COGCC is lacking in scientific basis and is offensive to frontline communities that have been voicing their suffering for years. What has been proposed is
not an improvement from the current inadequate and harmful setback distance. It has been 15 months since SB-181 was signed into law, yet fracking still continues in force near the front steps of our homes, schools and throughout our communities.” [Colorado
Politics, 7/29/20
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Analysis:
Routine Gas Flaring Is Wasteful, Polluting And Undermeasured. According
to Gunnar W. Schade in The Conversation, “If you’ve driven through an area where companies extract oil and gas from shale formations, you’ve probably seen flames dancing at the tops of vertical pipes. That’s flaring – the mostly uncontrolled practice of burning
off a byproduct of oil and gas production. Over the past 10 years, the U.S. shale oil and gas boom has made this country one of the world’s top five flaring nations, just behind Russia, Iran and Iraq. It’s a dubious distinction. Routine flaring gives the industry
a black eye. I am an atmospheric scientist studying trace gases – chemicals that make up a small fraction of Earth’s atmosphere, but can have significant effects on the environment and human health. In several recent studies with graduate and undergraduate
students, I have shown how routine flaring is inaccurately assessed and creates a sizable source of air pollution. Due to a rapid oil price drop in the spring of 2020, new oil exploration has plummeted and production is running at reduced levels. But the industry
can rapidly resume activities as demand and prices recover. And so will flaring. Regulatory agencies, under pressure from environmental groups and parts of the industry, are finally considering rules to curb flaring. But can this wasteful and polluting practice
be stopped? Each operating shale oil well produces variable amounts of ‘associated’ or ‘casinghead’ gas, a raw gas mixture of highly volatile hydrocarbons, mostly methane. Producers often don’t want this gas unless it can be collected through an existing network
of pipelines.” [The Conversation, 7/29/20
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Analysis:
How America's Shale Industry Can Navigate Tough Times And Emerge Resilient.
According
to Carrie Weisman in Real Clear Energy, “When the global pandemic brought entire industries to a grinding halt, the oil and gas sector and shale, in particular, suffered the brunt of COVID-19 in more ways than one. Many shale companies were already struggling
to turn a profit. But as pandemic-based restrictions rolled on over weeks and months, shale industry majors found themselves looking first at zero production and, subsequently, ways to somehow survive the market crash. Add to that the massive debts that shale
enterprises accrued when the market was booming, and you have yourself a situation. Rystad Energy has predicted the overall industry debt to reach $133 billion between 2020 and 2026. Shale Businesses Have Been Hit by More Than Just COVID-19 The overabundance
of oil had already shifted the advantage away from shale businesses because of the following reasons: Given the excess supply and lack of buyers, businesses are running out of space to store the oil. In fact, 76% of the global oil storage capacity has already
been utilized. Shale companies are looking at frac tanks for storage to deal with this space crisis. The dip in demand has led to massive production cuts since March 2020, which in turn has affected the people who worked for shale oil companies. The number
of active oil and gas rigs in the United States is dropping rapidly. The disturbance of the equilibrium between demand and supply is likely to drive the prices down even further in the near future.” [Real Clear Energy,
7/29/20
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Trump
Says Export Terms For Liquefied Natural Gas Extended Until 2050. According
to The Hill, “President Trump announced Wednesday that export authorizations for liquefied natural gas (LNG) will go through 2050 and signed four permits for pipeline and rail transport of fossil fuels. The administration had already proposed extending LNG
export terms through 2050, though it finalized the policy on Wednesday. The export terms previously lasted 20 years. ‘The United States is now the No. 1 producer of oil and natural gas on the face of the earth,’ Trump said during a speech in Midland, Texas.
‘To ensure we maintain this dominant position ... my administration is announcing today that export authorizations for American liquefied natural gas can now be extended through the year 2050,’ he added. Trump signed four energy infrastructure permits, including
two that allow for the transport of U.S.-produced oil into Mexico. ‘I will sign four critical permits granting approval to vital pipeline and railway infrastructure on our nation’s border,’ he said ahead of the signing. ‘This will include two permits allowing
the export of Texas crude to Mexico, a giant victory for the workers of this state.’ The permits allow for the construction and maintenance of pipeline facilities between the U.S. and Mexico and also for the construction of railway facilities at the U.S.-Mexico
border. His action also allows for the maintenance of an existing pipeline at the U.S.-Canada border.” [The Hill,
7/29/20
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N.M.
Shuns Gas, Chooses Renewables To Replace Coal. According
to E&E News, “Supporters of renewable energy and carbon-capture technology found reason to cheer in New Mexico yesterday as regulators endorsed a plan for the state’s largest electric utility to use solar and battery storage to replace capacity from a coal-fueled
power plant. But the utility itself — Public Service Co. of New Mexico, or PNM — didn’t get the outcome it sought. PNM had proposed that natural gas-fired generation be among the resources used to replace its share of power from two coal-fired units at the
San Juan Generating Station, which PNM plans to take offline in mid-2022. The New Mexico Public Regulation Commission voted 5-0 for a plan to put about 430 megawatts of replacement resource capacity and $447 million of capital investment in a school district
that includes the San Juan plant. That’s part of an overall plan featuring more than $1 billion of potential investment and some 950 MW comprised of solar and storage. San Juan is in the Four Corners region of northwestern New Mexico, and its future is being
closely watched as regulators and utilities across the U.S. weigh how to meet clean energy goals and standards. PNM, which was seeking to replace 497 MW of coal-fueled power, said it would review the regulators’ decision. Renewable advocates as well as Enchant
Energy Corp., which is proposing carbon capture at San Juan, offered praise for the commission known as the PRC.” [E&E News,
7/30/20
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Drilling
Down In Texas.
According to Politico, “President Donald Trump’s remarks at a Midland, Texas, drilling rig brought swipes at former Vice President Joe Biden, who is leading in some polls in the Lone Star State, but no new policy announcements. Trump made brief comments on
the finalization of an Energy Department rule first proposed under former Secretary Rick Perry (or, as Trump called him, ‘my Rick’) to extend the life of liquefied natural gas export permits already on the books to 2050. He also signed four permits allowing
— or, in two cases, merely re-upping — permits for pipelines to carry oil over the borders with Canada and Mexico, including the original Keystone Pipeline, which started carrying Canadian crude into the U.S. in 2010. What’s really going on? ME would wager
that Trump was more worried about what once seemed impossible: Texas, the beating heart of the U.S. oil industry, flipping for Biden. Recent polls have put Biden with the margin of error for winning the state. Trump spent most of his rig appearance extolling
the virtues of the oil and gas industry and warning that a Biden presidency would kill it. ‘We saved your industry,’ Trump told the audience, claiming credit for convincing OPEC+ to cut its own oil output earlier this year when it threatened to flood the market.
Biden ‘would ban oil and gas leasing on public land,’ Trump continued. ‘Let me ask you, Mr. Governor, how would that work in Texas?’ Well, that would work fine in Texas, which has hardly any federal land. What has worked less well for the industry is the effect
of the coronavirus pandemic. The U.S. has recorded more than 150,000 deaths — and Texas has more than 400,000 cases, with Covid-19 sufferers now filling up hospital ICU units in the Permian Basin.” [Politico,
7/30/20
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BLM Kills Pandemic Royalty Relief, Proposes Reg Revisions.
According to E&E News, “The Bureau of Land Management is gradually ending pandemic-related royalty relief offers for oil and gas companies, closing a controversial mechanism for industry
navigating historic low oil prices in the COVID-19 era. Slammed by a pandemic-driven oil price crunch, industry representatives sought blanket royalty cuts in the spring, but the Trump administration was loathe to offer a broad response. Companies were encouraged
instead to seek royalty reductions or extensions on individual leases. Hundreds of requests were filed in short order after BLM released guidance promising a rapid turnaround for applications (Energywire, May 20). But that offer is ending as pandemic-related
limitations on work and operations are lifted, a spokesman confirmed to E&E News today. ‘The states are now in various stages of reopening and the time for a COVID-19 basis for approvals is coming to a close,’ said Interior Department spokesman Conner Swanson
in an email. ‘Applications still pending, and any applications received will continue to be evaluated based on longstanding policies and procedures under which the BLM has evaluated requests for discretionary royalty relief, as well as for the suspension of
operations or production.’ Swanson said applications that have already been approved for 60-day relief would be allowed to run their full course. The BLM change was first noted by the Center for Western Priorities, which has been tracking the pandemic-related
royalty reductions and lease extensions and has been critical of offering royalty cuts during the public health crisis and state revenue shortfalls.” [E&E News,
7/29/20 (=)]
Chad Ellwood
Senior Research Associate
Climate Action Campaign
202.448.2877 ext. 119