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Fri, 2012-08-03 05:00Steve Horn
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Delaware Tax Haven: The Other Shale Gas Industry Loophole

Most people think of downtown Houston, Texas as ground zero for the oil and gas industry. Houston, after all, serves as home base for corporate headquarters of oil and gas giants, including the likes of BP America, ConocoPhillips, and Shell Oil Company, to name a few.

Comparably speaking, few would think of Wilmington, Delaware in a similar vein. But perhaps they should, according to a recent New York Times investigative report by Leslie Wayne.

Wayne's story revealed that Delaware serves as what journalist Nicholas Shaxson calls a “Treasure Island” in his recent book by that namesake. It's an “onshore tax haven” and an even more robust one than the Caymen Islands, to boot.

The Delaware “Island” is heavily utilized by oil and gas majors, all of which are part of the “two-thirds of the Fortune 500” corporations parking their money in The First State.

Delaware is an outlier in the way it does business,” David Brunori, a professor at George Washington Law School told The Times. “What it offers is an opportunity to game the system and do it legally.”

The numbers are astounding. “Over the last decade, the Delaware loophole has enabled corporations to reduce the taxes paid to other states by an estimated $9.5 billion,” Wayne wrote

“More than 900,000 business entities choose Delaware as a location to incorporate,” explained another report. “The number…exceeds Delaware's human population of 850,000.”

Sun, 2012-07-29 13:13Farron Cousins
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How Do You Spend $375 Million A Day? Ask The Oil Industry

The average U.S. household has seen both their net worth and their average income steadily decline over the last seven years. Unemployment in the United States still remains at uncomfortably high levels, and the poverty rate is about to reach highs that haven’t been seen since the 1960’s. But as average citizens are struggling to provide food for their families and gainful employment, there are a special few in the U.S.A. who have more cash than they know what to do with. Those special few would be the oil industry.

While most of us in the U.S. were cringing every time that ticker on the gas pump climbed higher and higher, executives at the top five oil companies were squealing with delight as their profits climbed even faster and higher than the prices at the pump.

This week, oil companies are sheepishly coming forward with their 2nd quarter earnings statements, likely praying that Americans forget about the fact that gas prices were recently at near-historic highs in areas of the country. From Climate Progress:
  

The top two corporations on the Fortune 500 Global ranking, Royal Dutch Shell and ExxonMobil, announced their 2012 second-quarter earnings today, bringing the total profits for three Big Oil companies to $44 billion for 2012 or $250,000 every day this year. Exxon profited by $16 billion this quarter, bringing its earnings for 2012 to $25 billion.

The New York Times wrote that Exxon and Shell’s earnings “disappoint,” because energy prices unexpectedly dropped for consumers this summer. Put their profits in the appropriate context, however, and Exxon and Shell still made a combined $160,000 per minute last quarter, even though the top five oil companies benefit from $2.4 billion federal tax breaks every year.
 
Tue, 2012-07-24 14:23Guest
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Breaking Up With Keystone XL and Dirty Energy - It's Not Us, It's You [Video]

This is a guest post by Heather Libby.

A new video from the Post Carbon Institute pokes fun at the Keystone XL pipeline’s tendency to reappear no matter how very little we want it around - much like an ex-boyfriend who won’t get the hint.

Like many in the environmental movement, I was thrilled when President Obama denied the permit for the Keystone XL pipeline. I really thought it was the end of the Keystone XL. Silly me.

Within weeks, Republicans were looking for new ways to resubmit the Keystone XL plan. Mitt Romney has said he’ll make approving the Keystone XL a priority for his first day in office if he wins.

Seeing all of this, I was frustrated and felt disenfranchised. So I did what I always do in that situation: write comedy. 

All I could think of was how much pipeline companies like Transcanada, Enbridge, Shell and Kinder Morgan reminded me of guys who simply won’t take no for an answer. They're going to keep coming back no matter what we tell them, unless we cut them off for good - and remove their subsidies.

Fortunately there are many organizations - including 350.org and Oil Change International who are working hard to convince governments that eliminating subsidies is the right thing to do for our energy future. 

Don’t you think it’s time we end this dirty relationship?
  

Thu, 2012-07-19 14:41Farron Cousins
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Texas Refineries And Chemical Plants Releasing Tens Of Thousands Of Tons Of Pollution

A damning new report from the Environmental Integrity Project (EIP) reveals some startling information regarding pollution in the state of Texas. According to the report, oil refineries and chemical plants in the state are releasing tens of thousands of tons of pollution every year, without as much as a peep from state regulators or the Environmental Protection Agency (EPA.)

Most of these emissions are the result of industrial accidents and other “equipment malfunctions” taking place at processing plants across the state. Among the more dangerous chemicals being released into the atmosphere and surrounding environment are sulfur dioxide and nitrogen oxide, both of which are major contributors to ozone depletion.

A few highlights from the new report:

Every year, refineries, chemical plants, and natural gas facilities release thousands of tons of air pollution when production units break down, or are shut off, restarted or repaired. Most of these “emission events” release pollution through flares, leaking pipelines, tanks, or other production equipment. Information obtained from the Texas Commission on Environmental Quality (TCEQ) for the last three years shows just how significant that pollution can be.

Between 2009 and 2011, emission events at chemical plants, refineries, and natural gas operations released a combined total of more than 42,000 tons of sulfur dioxide and just over 50,000 tons of smog- forming Volatile Organic Compounds (VOCs), according to industry reports filed with TCEQ. See Table 1. These releases are in addition to the amounts released year-round during so-called “normal operations,” and are usually not included in the data the government uses to establish and enforce regulations, or to estimate their health impacts. Natural gas operations — which include, well heads, pipelines, compressors, boosters, and storage systems — accounted for more than 85% of total sulfur dioxide and nearly 80% of the VOCs released during these episodes. Both pollutants are linked to asthma attacks and other respiratory ailments, and can form fine particles that contribute to premature death from heart disease.

Upsets or sudden shutdowns can release large plumes of sulfur dioxide or toxic chemicals in just a few hours, exposing downwind communities to peak levels of pollution that are much more likely to trigger asthma attacks and other respiratory systems. The working class and minority populations typical of neighborhoods near refineries and chemical plants bear the brunt of this pollution.
 
Sun, 2012-07-15 15:23Farron Cousins
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Romney, Obama Surrogates Spar Over Energy Policy

On Wednesday of this week, representatives from both the Obama and Romney campaigns debated issues of energy and environment, where the two campaigns’ differences on issues ranging from renewable energy subsidies to approval of the Keystone XL Pipeline were on full display.

Speaking for the Obama campaign, spokesperson Dan Reicher told us that the President believes that U.S. tax dollars can be used effectively to bolster development and investment into renewable energy technologies.

Linda Stuntz, Romney’s spokesperson who currently sits on the board of Shell Oil, said that her candidate is not completely against supporting renewable energy, but that the “free market” should really be the entity to make those decisions, not the government. Stuntz did tell us that Romney planned to end a production tax credit for wind energy that has helped keep that industry growing for more than 20 years.

Before getting into the other arguments discussed in the debate, it is important to let that previous paragraph sink in. Romney’s energy and environmental surrogate, a member of his campaign giving him advice on energy issues and acting as his spokesperson in that arena, is a board member of one of the largest oil companies in the world. This fact can't be ignored, and it indicates where Romney’s allegiance will lie when it comes to energy issues. Stuntz also served as a deputy energy secretary under President George H.W. Bush, and we know well how that administration buddied up to Big Oil.

One of the big issues, and a major talking point for industry-friendly politicians and lobbyists, was the Keystone XL Pipeline. From the Houston Chronicle:

Wed, 2012-06-06 08:36Steve Horn
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TransCanada's Latest Extreme Energy Export Pipelines in the U.S. and Canada

TransCanada was once in the limelight and targeted for its Keystone XL pipeline project. Now, with few eyes watching, it is pushing along two key pipeline projects that would bring two respective forms of what energy geopolitics scholar Michael Klare calls “extreme energy” to lucrative export markets.

Pipeline one: the southern segment of the originally proposed TransCanada Keystone XL tar sands pipeline, popularly referred to as the Cushing Extension, but officially referred to as either the Gulf Coast Project or the Cushing Marketlink pipeline. This pipeline will carry tar sands crude, or “dilbit,” extracted from Alberta, Canada's Athabasca oil sands project southward first to Cushing, Oklahoma, and then to Port Arthur, Texas, where it will be shipped off to global export markets.

While the northern Alberta-to-Cushing segment has been punted until after election season by President Barack Obama's U.S. State Department, the Cushing-Port Arthur segment has been rammed through in a secrective manner by various Obama regulatory agencies, as pointed out recently by Friends of the Earth-U.S. (FOE-U.S.). 

FOE-U.S. explained in a long blog post published on June 5, well worth reading in its entirity,

Sat, 2012-03-10 14:42Laurel Whitney
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Big Oil Rakes In Billions, Still Complains Taxes Are Too High

The President rolled out his FY2013 budget recently, which includes eliminating $40 billion in tax breaks from Big Oil companies, such as BP, Chevron, ConocoPhillips, ExxonMobil, and Shell. Meanwhile, the American Petroleum Institute's response would have you believe that cutting the subsidies would be the equivalent of moving back into their parents' basement.

It's propaganda at its most repetitive, crying that they are “job creators” and that it's so “unfair” to raise taxes because they already contribute millions to the economy every day, and if you do they swear to god prices will rise and the inevitable dependency on foreign oil will bring about the apocalypse itself if you don't let them have their way.

That's like Donald Trump begging to not get kicked out of rent-stabilized, low-income housing even when raking in billions annually, and then threatening to trash the place once the landlord actually puts up an eviction notice.

It's true. The combined profit of the “big 5” oil companies listed above was $137 billion last year, with ExxonMobil, Chevron, and ConocoPhillips coming in first, fourth, and 15th, respectively, on the Fortune 100 list of most profitable companies.

Fri, 2012-03-02 16:50Farron Cousins
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U.S. Chamber Hits The Road To Promote "Oily" Highway Transportation Bill

A bitter fight has erupted in Washington, D.C. in recent weeks surrounding the fate of a much-needed transportation and infrastructure bill. Congressional Democrats wanted to pass a bill that would fund projects to help rebuild roads and bridges, but Republicans were against the idea.

So, in an attempt to get something more tangible out of the legislation, Congressional Republicans loaded the bill down with dozens of handouts to the oil industry, including immediate approval of the Keystone XL pipeline and expanded access to U.S. lands for oil exploration. The amendments would also take national gas tax money away from public transportation projects, and reduce the amount of federal contributions to public employee pensions – two actions that will have devastating effects on middle class America. And with the fight bringing the discussion on the legislation to a halt, the U.S. Chamber of Commerce took it upon themselves to hit the road and sell the bill to the American public.

From the U.S. Chamber:

The business group will be hosting breakfasts, lunches and policy roundtables with local chambers and business associations this week in 12 different cities in Ohio, Idaho, Georgia, North Carolina, South Carolina, Alabama and Louisiana.

Janet Kavinoky, the Chamber’s executive director of transportation and infrastructure, will be on the road trip, along with Alex Herrgott, one of the business group’s transportation lobbyists.

“The idea is to get out, give people a good sense what the bill is and get them talking to their members of Congress and have them get the bill done,” Kavinoky said. “We want Congress to feel like it needs to come back to Washington and get the bill done and put it to bed.”
Tue, 2012-02-07 21:14Farron Cousins
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China Looks To Stephen Harper For Lessons In Dirty Energy Exploitation

Canadian Prime Minister Stephen Harper is in China this week to meet with Chinese leaders about how both countries can profit big by exploiting China’s shale gas reserves, as well as by importing Canadian tar sands oil. Harper is scheduled to meet with both Chinese officials, as well as heads of oil and gas companies during his four-day visit to the country.

More on the specifics of who will be attending these meetings, from Reuters Canada:

During his trip Harper will meet President Hu Jintao and Premier Wen Jiabao as well as two important regional players - Chongqing Communist Party chief Bo Xilai and Wang Yang, the chief of Guangdong province.

The Canadian mission, which will arrive in Beijing on Tuesday, is the largest of its kind since 1998. Guests include top executives from Shell Canada, Enbridge and Canadian Oil Sands as well as uranium producer Cameco Corp and mining firm Teck Resources Ltd.

Other firms include plane and train maker Bombardier Inc, Air Canada, Eldorado Gold Corp, SNC-Lavalin Group Inc, Canfor Corp and West Fraser Timber Co Ltd.

After the United States’ rejection last month of the Keystone XL pipeline, Canadian officials are hoping to reap a profit in the world’s largest emerging market. But any energy trade deals would certainly benefit both sides, as just last week PetroChina, parent of China’s largest oil producer, purchased a 20% stake in a Canadian shale gas project being run by Royal Dutch Shell.

Chinese oil companies are hoping that their cooperation with Shell and the Canadian government will help them use these valuable resources to teach officials more about the process of extracting shale gas, mostly through fracking.

Just last year, with some financing through other Chinese oil companies, Shell invested more than $400 million in Chinese shale gas projects, which included the drilling of at least 15 different shale extraction wells.

Fri, 2011-11-18 05:15Steve Horn
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ExxonMobil and Shell Eyeing North American LNG Export Deals

Yesterday, LNG World News reported that ExxonMobil Vice President Andrew Swiger announced, at a conference hosted by Bank of America Merrill Lynch, that it was actively seeking LNG (liquefied natural gas) export terminals throughout North America, including, but not limited to, in British Columbia and on the Gulf Coast.

In terms of exports from North America, whether it is the Gulf Coast or whether it is Western Canada, it’s something we’re actively looking at,” said Swiger.

So, where are these prospective export terminals located, what are the key pipelines carrying the unconventional gas produced from shale basins, and what are the key shale basins in the mix? Hold tight for an explanation.

Golden Pass LNG Terminal and Golden Pass Pipeline

The LNG World News article explains that ExxonMobil “has a stake in the Golden Pass LNG Terminal in Texas,” but does not explain exactly what the “stake” is.

A bit of research shows that ExxonMobil is a 17.6% stakeholder in the Golden Pass LNG Terminal, according to a March 2011 article publshed by Platts. It is co-owned by ConocoPhillips and Qatar Petroleum, who own a 12.4% and 70% stake in Golden Pass LNG, respectively.

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