General News
White House Climate Adviser Meets With Oil And
Gas Companies. According to The Hill,
“National climate adviser Gina McCarthy on Monday met virtually with leadership from oil and gas companies to discuss ‘shared priorities’ according to a readout from the White House. The readout, which did not specify which companies or individuals participated,
said that these priorities included climate change, protecting and creating jobs and ensuring that the U.S. is a leader on clean energy. McCarthy ‘made clear that the Administration is not fighting the oil and gas sector, but fighting to create union jobs,
deploy emission reduction technologies, strengthen American manufacturing, and fuel the American economy,’ according to the White House. The meeting comes amid tensions between the White House and some in the industry over moves like putting a temporary pause
on new leases for oil and gas drilling on public lands. That pause is pending a review from the administration of its oil and gas program, and the Interior Department will hold a forum this week where groups representing industry, tribal and environmental
viewpoints will speak. The White House also said that Interior was represented at the meeting, though it did not say by whom, to discuss the pause, as well as outreach during the review of the program. Meanwhile, McCarthy also talked to the company leaders
about how the president is committed to ‘bringing the voices and perspectives of all stakeholders to the table’ on climate change and asked participants about their commitments and ideas on the topic.” [The Hill,
3/22/21
(=)]
Senate GOP Pushes Back On List Of Participants
In Oil And Gas Leasing Forum. According
to The Hill, “Republicans on the Senate Energy and Natural Resources Committee are raising objections to the Interior Department’s list of participants for a forum on federal oil and gas leases. In a letter sent Monday, Republicans on the panel accused the
department of deliberately excluding Republican governors of energy-producing states. The forum, set for March 25, will review the Biden administration’s moratorium on new oil and gas leases on federal lands. ‘We believe that you have intentionally limited
the right for the public to participate, including state-wide elected officials, namely the governors of our states,’ says the letter. GOP senators signing the letter included Sen. John Barrasso (Wyo.), the panel’s ranking member, as well as Sens. Cynthia
Lummis (Wyo.), Steve Daines (Mont.), Bill Cassidy (La.), James Risch (Idaho), John Hoeven (N.D.), John Cornyn (Texas) and Kevin Cramer (N.D.). Participants in the virtual forum are set to include representatives of industry groups, unions and advocacy groups,
according to the full list released by the department. These include Alaska Federation of Natives executive vice president and general counsel Nicole Borromeo, North America’s Building Trades Unions President Sean McGarvey, National Ocean Industries Association
President Erik Milito, National Congress of American Indians President Fawn Sharp and Frank Macchiarola, senior vice president for policy, economics and regulatory affairs at the American Petroleum Institute. The moratorium was one of Biden’s first acts as
president, and has drawn heavy criticism from Republicans in Western states in particular.” [The Hill,
3/22/21
(=)]
LNG Project Axed After Climate Pushback, Lawsuits.
According to E&E News, “A coalition of
energy companies is pulling the plug on a liquefied natural gas export terminal proposed for southern Texas, project developers said yesterday. Backers of the Annova LNG project, including the majority owner, Chicago-based utility company Exelon Corp., announced
the ‘immediate discontinuation’ of the facility planned along the Brownsville Ship Channel in Cameron County, citing ‘changes in the global LNG market.’ Annova had faced legal challenges from the Sierra Club and other groups who claimed the 731-acre project
would harm animals like the endangered ocelot, a wildcat. They also warned that the facility, along with two other proposed LNG projects in Brownsville, would lead to increased shipping channel traffic, affecting fishermen, shrimpers and recreational use (Energywire,
Sept. 9, 2020). Approved by the Federal Energy Regulatory Commission in late 2019, Annova was intended to liquefy and export natural gas produced in shale basins across the Lone Star State. Annova declined to comment on whether legal issues influenced the
project’s cancellation. In an email, project spokesman Mark Rodgers said that ‘global LNG supply has increased substantially while demand has not,’ calling discontinuation the ‘right decision to make at this time.’ He confirmed that Annova’s owners don’t plan
to resume work on the project. The cancellation came after the 5th U.S. Circuit Court of Appeals recently upheld the Fish and Wildlife Service’s analysis of the impacts of the project under the Endangered Species Act, dealing a setback to environmentalist
challengers (Energywire, March 12).” [E&E News, 3/23/21
(=)]
Gas Ban Fight Roils Nevada.
According to E&E News, “A fight over the
future of natural gas is simmering in Nevada, highlighting questions about equity and energy costs that could cloud efforts to decarbonize the buildings sector. Nevada is one of at least seven states this year where lawmakers are considering proposals to phase
out or reduce the use of natural gas in homes and businesses, according to a tally by the American Gas Association. A state lawmaker, Assemblywoman Lesley Cohen (D), is set to introduce legislation that would set emissions reduction targets for buildings over
the next 30 years, to ultimately achieve a 95% decrease in emissions from buildings by 2050. Under the plan, energy efficiency measures and electrification would be the primary means for decarbonization. While it’s unclear if the bill will pass, Gov. Steve
Sisolak (D) backed a climate strategy last year that called for switching from gas-powered to all-electric buildings. The Nevada debate is also showcasing how gas ban proposals nationally can face resistance not just from gas utilities, but from business and
union groups in states with Democratic-controlled legislatures. Supporters say the measure provides a framework for the state to plan a gradual, cost-effective transition away from natural gas that protects ratepayers from potential so-called stranded assets
— such as new gas infrastructure that could be of little value in the future. They say the proposal is a natural step for Nevada to move toward its commitment to ‘zero or near-zero’ greenhouse gas emissions economywide by 2050, as the state pledged to do under
a bill passed in 2019.” [E&E News, 3/23/21
(=)]
Op-Ed:
Sensible Methane Regulations Will Protect
New Mexico’s Great Outdoors. According
to an op-ed by Eric Puckett in the Santa Fe New Mexican, “I am a resident of New Mexico for many reasons. Access to our incredible public lands is at the top of that list. I live a quick and winding drive down the road from the Santa Fe National Forest. This
past year, it was impossible to escape the summer’s 28 days of smoke from the Medio Fire that ravaged some of my favorite places to recreate. Unfortunately, these fires will become more and more common if we don’t start actively addressing climate change.
As a resident of Santa Fe and an owner of an outdoor recreation business, I feel a responsibility to demand our state government address the methane problem that is severely damaging the air we breathe and the public lands that make this home so special. Methane,
as you may know, is a powerful climate change pollutant that is responsible for 25 percent of global warming. As a business owner that makes gear for climbing and cycling, I have a dual investment and heightened passion for accessible outdoor recreation. Methane
pollution from the Permian Basin is significantly damaging the air quality in New Mexico (along with the entire western United States). If we don’t adequately address this, our sense of adventure and place in the mountains will be a thing of the past. This
issue is detrimental to the environment, and on a more personal scale, outdoor businesses that rely on natural resources for their livelihood.
Since the pandemic started in early 2020, our state’s economy has been hit hard. Outdoor recreation has been a respite for a tough year and will continue to be an economic powerhouse in New Mexico when this virus is gone, or more realistically, controlled
and understood.” [Santa Fe New Mexican, 3/22/21
(+)]
Op-Ed: Fracking Ban Threatens American Jobs And
Derails Our Environmental Progress. According
to an op-ed by Stephanie Catarino Wissman in Real Clear Energy, “Now the global leader in natural gas and oil production, the U.S. has set the standard for safe, reliable, and affordable energy. America’s energy sector supports more than 10 million jobs across
the nation, driving nearly $290 billion of capital investment – all while reducing greenhouse gas emissions. But unrealistic energy policies and bans on hydraulic fracturing, or fracking, could swiftly undo years of progress and economic growth. Most aspects
of our daily lives are touched in some way by energy from natural gas and oil – from the roads we drive on to the medicine we take and the clothing we wear. If we are to meet the ever-increasing demand for efficient and cleaner energy, then natural gas development
must continue to be part of the solution. Banning fracking ignores sound science in favor of a false choice between renewable energy and natural gas. Today, more than 95 percent of U.S. natural gas and oil wells are developed using fracking. With the increase
of natural gas consumption, particularly in power generation, the U.S. has reduced carbon dioxide emissions to their lowest levels in a generation. Additionally, methane emissions rates decreased by nearly 70 percent from 2011 to 2018 in the largest-producing
U.S. regions, including Appalachia, even as combined production in those regions tripled. A nationwide ban on fracking would have disastrous consequences, including a potential loss of $7.1 trillion in cumulative GDP and millions of jobs by 2030, likely triggering
a recession.” [Real Clear Energy, 3/22/21
(-)]
Lawsuit: BLM Approval Of Calif. Oil Leases Violated
NEPA. According to E&E News, “The Center
for Biological Diversity is leading a new lawsuit this week challenging the Bureau of Land Management’s approval of an oil and gas lease sale in Kern County, Calif. The challengers are opposing what they call the federal agency’s ‘hasty decision’ under President
Trump to sell the fossil fuel leases on public lands for the first time in 10 years. BLM’s decision to lease the seven parcels covering 4,133 acres did not include an adequate analysis of how development would affect the environment and local communities as
required under the National Environmental Policy Act, they said. ‘Because the agency failed to take a hard look at reasonably foreseeable impacts from the sale to air quality, climate, precious water resources, species, and the health and safety of local communities,
the sale is unlawful and should be vacated,’ they wrote in their complaint to the U.S. District Court for the Eastern District of California. Friends of the Earth and the Sierra Club joined the lawsuit. Among the groups’ concerns are that the leases will exacerbate
poor air quality in the county, which is one of the largest oil and gas production regions in the state. Opponents of the leases also warn that fracking could harm limited groundwater supplies in the area. The groups are asking the district court to toss out
the leases authorized by last year’s sale and overturn the agency’s underlying environmental assessment and finding of no significant impact supporting the decision. The lawsuit comes more than a year after CBD and former California Attorney General Xavier
Becerra (D) launched parallel lawsuits against BLM over its resource management plan for California’s Central Valley and Central Coast.” [E&E News,
3/23/21
(=)]
Democrats Introduce Package To Crack Down On Fracking.
According to E&E News, “A group of House
Democrats introduced legislation yesterday that they say would hold big oil and gas companies accountable to national standards for environmental protection. Dubbed the ‘Frack Pack,’ sponsors said the five bills would require environmental impact reports on
hydraulic fracturing, eliminate waste cleanup exemptions and close loopholes to environmental mandates. Reps. Matt Cartwright (D-Pa.), Yvette Clarke (D-N.Y.), Diana DeGette (D-Colo.) and Jan Schakowsky (D-Ill.) are backing the bills. ‘The American people are
sick and tired of living in a system that allows oil and gas companies to pump highly toxic chemicals into the ground we all share, with little or no oversight,’ DeGette said in a statement. ‘We have to do more to protect people from the very real threat the
use of these chemicals poses to nearby communities,’ said DeGette, who for years has been a champion of more oversight of hydraulic fracturing. The ‘Fracturing Responsibility and Awareness of Chemicals (FRAC) Act,’ H.R. 4014, would authorize EPA to regulate
fracking wells. It would also require disclosure of chemical components in the drilling process. DeGette and Schakowsky’s ‘Safe Hydration Is an American Right in Energy Development (SHARED) Act,’ H.R. 3604, would require companies to report on fracking’s effects
on water quality. Cartwright’s ‘Closing Loopholes and Ending Arbitrary and Needless Evasion of Regulations (CLEANER) Act,’ H.R. 4006, would scrap certain cleanup exemptions under the Resource Conservation and Recovery Act of 1976.” [E&E News,
3/23/21
(=)]
Frack Pack’s Back.
According to Politico, “Four House Democrats are introducing a new version of the ‘Frack Pack’ today — a package of five bills focused on tightening the rules around fracking. The legislation would close the so-called Halliburton loophole, which bars the EPA
from regulating fluids used in fracking under the Safe Water Drinking Act. Matt Cartwright (Pa.), Yvette Clarke (N.Y.), Diana DeGette (Colo.) and Jan Schakowsky (Ill.) are introducing the legislation, which will face a steep uphill battle, particularly in
the Senate. There have been numerous attempts at passing a FRAC Act since 2009.” [Politico,
3/23/21
(=)]
Democratic Oil And Gas Ally Announces Retirement.
According to E&E News, “Rep. Filemón Vela, a moderate Texas Democrat and supporter of the oil and natural gas industry, won’t run for
reelection next year. Vela became a top target for Republicans in the 2022 midterm election cycle and might have faced an even tougher battle after the redistricting process. He represents a district that stretches from the San Antonio suburbs to the Mexico
border at Brownsville. He was first elected in 2013. ‘I will not be seeking reelection to the House of Representatives in 2022,’ he said in a statement. ‘I will continue to focus on maintaining a Democratic House and Senate Majority in my capacity as a member
of Congress and Vice Chair of the Democratic National Committee, while working diligently for the people I am so grateful to represent.’ Vela became a founding member of the Congressional Oil and Gas Caucus when his colleague Rep. Vicente González (D-Texas)
launched it in 2017. But he hasn’t joined with other Texas Democrats in denouncing President Biden’s early moves against fossil fuels, like canceling the Keystone XL pipeline and halting new oil and gas drilling leases on federal land. The National Republican
Congressional Committee welcomed Vela’s exit and attributed it to the surge of migrants seeking to cross the southern border. ‘Filemon Vela knows Biden’s border crisis will cost him his seat and Democrats’ their House majority. Texans deserve a congressman
who is going to stand up to Biden’s open border agenda, not defend it,’ NRCC spokeswoman Torunn Sinclair said in a statement. Vela sits on the Agriculture and Armed Services committees.” [E&E News,
3/22/21
(=)]
White House, Oil And Gas Industry Meet To Discuss Climate Change.
According to Politico, “Oil and gas industry officials are meeting with White House National Climate Adviser Gina McCarthy on Monday to discuss climate change and measures to cut
methane emissions, according to two people with knowledge of the meeting. Details: The White House reached out to the industry to discuss the new administration’s goals on combating climate change and how the industry can align itself with those targets, the
people said. Attending the meeting are members of the American Petroleum Institute and the American Gas Association, the sources said. The meeting was first reported by Bloomberg. A White House spokesperson declined to comment. Context: The gathering comes
as the administration seeks to toughen regulations surrounding the oil and gas industry. President Joe Biden has pledged to reduce emissions of methane, a potent greenhouse gas that leaks from oil and gas wells, pipelines and other infrastructure the industry
uses. Large oil companies have backed the goal of reducing emissions as customers, especially in Europe, have started to balk at the greenhouse gas footprint of some of the fuel imported from the U.S. Smaller companies in the U.S. have fought previous efforts
to crack down on how much methane their operations leak, however, saying the rules were too onerous. Besides the meeting with McCarthy, the administration has also invited oil companies and other stakeholders to discuss possible changes in how the Interior
Department leases public land for fossil fuel development. Biden paused new leasing to review the decades-old rules that dictate which land is available for leasing and how much money companies pay the government for the oil, gas and minerals they extract
from that land. What’s next: Interior has scheduled its forum on leasing for Thursday.” [Politico,
3/22/21 (=)]
A New Industry Push For Clean Hydrogen. According to the Washington Examiner, “Natural gas
companies, utilities, and labor unions are joining forces to lobby the Biden administration to invest in developing hydrogen as it pursues a historic federal clean energy spending program. The Clean Hydrogen Future Coalition, which launched today with a letter
to President Biden, doesn’t have specific policy proposals in mind yet. But they’re organizing now to make sure federal dollars are directed to hydrogen development and the fuel is recognized as ‘clean’ in any policies the Biden administration crafts to curb
emissions. The new group consists of 20 largely fossil fuel companies, including Chevron, Duke Energy, Sempra Energy, and General Electric, and labor unions that represent many fossil fuel workers, including the National Building Trades Union and the International
Brotherhood of Electrical Workers. The coalition represents a new push for policies to support hydrogen, which to date has really only been promoted by federal investments and research as an option to reduce emissions in the transportation sector. Increasingly,
however, hydrogen is being viewed as a critical technology to curb emissions in the power and industrial sectors, as well. Natural gas groups, for example, see opportunity to use their infrastructure to transport hydrogen and generate electricity with it.
In the industrial sector, hydrogen could be used as a replacement fuel for carbon-intensive processes like chemical, steel, and concrete production.” [Washington Examiner,
3/22/21
(=)]
Chad Ellwood
Senior Research Associate
Climate Action Campaign
202.448.2877 ext. 119