Worries Build Among Investors Over Oil and Gas Industry’s Exposure to Water and Climate Risks

When it comes to financial risks surrounding water, there is one industry that, according to a new report, is both among the most exposed to these risks and the least transparent to investors about them: the oil and gas industry.

This year, 1,073 of the world’s largest publicly listed companies faced requests from institutional investors concerned about the companies’ vulnerability to water-related risks that they disclose their plans for adapting and responding to issues like drought or water shortages.

Food Industry Warns Of Devastating Food Shortages Amid Climate Inaction

Leaders from the food industry issued a warning to Congress recently, telling elected politicians to take action on climate change or face a global food shortage.  Leaders from companies such as Kellogg’s, General Mills, Nestle, Mars, and many others co-signed a letter published in The Washington Post, where they warned about the threats that climate change poses to the food industry.

Prime Minister Harper’s Inaction on Climate Killed the Keystone XL Oilsands Pipeline

Stephen Harper climate change

With U.S. President Barack Obama expected to deny a permit to the Keystone XL pipeline this fall, Canada’s oil industry is looking for someone to blame.

The National Post’s Claudia Cattaneo wrote last week that “many Canadians … would see Obama’s fatal stab as a betrayal by a close friend and ally” and that others “would see it as the product of failure by Stephen Harper’s Conservative government to come up with a climate change plan.”

The latter is the more logical conclusion. Obama has made his decision-making criteria clear: he won’t approve the pipeline if it exacerbates the problem of carbon pollution.

Even the U.S. State Department’s very conservative analysis states the Keystone XL pipeline would “substantially increase oilsands expansion and related emissions.” The Environmental Protection Agency has agreed.

While Canada’s energy reviews take into account “upstream benefits” — such as jobs created in the oilsands sector as a result of pipelines — they don’t even consider the upstream environmental impacts created by the expansion of the oilsands.

For all the bluster and finger-pointing, there’s no covering up the fact that Canada’s record on climate change is one of broken promises.

Will This Be Remembered as The Summer North Americans Woke Up to Climate Change?

Lizard Lake wildfire

Smokey haze, intense heat, encampments of evacuated residents next to the highway: these were the conditions that greeted Renee Lertzman when she recently drove through Oregon. It’s no wonder why the environmental psychology researcher and professor resorts to the term “apocalyptic” to describe the scene.

It was a surreal experience,” says Lertzman, who teaches at Victoria’s Royal Roads University. “We’re all driving along and it’s so smoky and it’s terrifying. Yet we’re all doing our summer vacation thing. I couldn’t help but wonder: what is going on, how are people feeling and talking about this?”

It’s really the question of the hour. Catastrophic wildfires and droughts have engulfed much of the continent, with thousands displaced from their homes; air quality alerts confine many of the lucky remainder behind locked doors (with exercise minimized and fresh-air intakes closed).

Firefighters have been summoned from around the world to battle the unprecedented fires, which are undoubtedly exacerbated by climate change. Yet the seemingly reasonable assumption that witnessing such horrific natural disasters may increase support for action on climate change is vastly overestimated, Lertzman tells DeSmog Canada.

July 2015 is Officially Hottest Month on Record. Ever.

Raging wildfires and apocalyptic smoke. Huge algal blooms visible from space turn seafood on the Pacific Northwest toxic. California’s drought. Alberta’s drought. Alberta’s floods.

There’s no doubt: it’s hot and weird out.

According to officials with the National Oceanic and Atmospheric Association (NOAA) July was the hottest month ever recorded, putting 2015 well on track to beat out 2014 for the hottest year on record. Records date back to 1880.

NOAA climate scientists Jake Crouch said the new data “just affirms what we already know: that the Earth is warming.”

The warming is accelerating and we’re seeing it this year.”

California Regulators Miss First Reporting Deadline For Oil Industry Water Use

California is facing such a severe drought and water crisis that Governor Jerry Brown issued the first mandatory water restrictions in state history last month. But it appears that the state’s oil and gas regulators did not get the memo about just how urgent the situation is.

The Division of Oil, Gas and Geothermal Resources (DOGGR), the oil and gas regulatory agency within the California Department of Conservation, reported last week that it had missed the April 30 deadline for making public the critical information about water usage by oil and gas production, claiming it was simply too much data to process.

Environmentalists Are Taking California To Court Over Illegal Oil Industry Wastewater Injection

Environmentalists filed a motion requesting a preliminary injunction today in a California court to immediately stop the daily illegal injection of millions of gallons of oil field wastewater into protected groundwater aquifers in the state.

Last week, Earthjustice filed a lawsuit on behalf of the Sierra Club and the Center for Biological Diversity in Alameda County Superior Court that challenges California regulators’ emergency rules meant to rein in the state’s disastrous Underground Injection Control (UIC) program.

What’s In The Recycled Oil Field Wastewater Sprayed On California Crops?

“You can't find what you don't look for,” UC Berkeley researcher Seth B.C. Shonkoff recently told the LA Times, referring to the chemicals that state regulators don’t know to test for in the recycled wastewater the California oil industry sells for use on crops here in the top agricultural producing state in the US.

Chevron produces more than 10 times as much water as it does oil at its Kern River oil field in California’s Central Valley, for instance — 760,000 barrels of water a day versus 70,000 barrels of oil. Half of that water is treated and sold to the Cawelo Water District in Bakersfield, which mixes it with fresh water and sells it exclusively to farmers.

Nobody knows if that water contains chemicals from fracking or other extreme oil extraction techniques, because the companies aren't required to test for them before selling the water. Nobody knows what those chemicals are, anyway, because companies aren't required to make that information public.

How Much Water Does The California Oil Industry Actually Use?

When California Governor Jerry Brown issued mandatory water restrictions for the first time in state history, he notably excluded the agriculture and oil industries from the conservation efforts, a decision that was heavily criticized.

The oil industry, for its part, insists it is a responsible user of water. The Western States Petroleum Association, an oil industry lobbying group, for instance, wrote that “Oil companies are doing their part to conserve, recycle and reduce the water they use to produce oil and refine petroleum products.”

Some perspective is certainly needed here: the amount of water used to produce oil in California is, in fact, dwarfed by the amount used for agriculture. But the thing is, the state can’t make any fully informed decisions about whether or not to include oil development in water cuts because no one knows exactly how much water the California oil industry is using in the first place. That all changes on April 30, however.

Last September, Governor Brown signed into law SB 1281, which requires companies to make quarterly reports to state regulators at the Division of Oil, Gas and Geothermal Resources (DOGGR) detailing the source and volume of water — whether fresh, treated, or recycled — used during oil development processes, including extreme oil extraction methods like fracking, acidization and steam injection. The first set of data required to be reported to DOGGR under SB 1281 is due at the end of the month.

Required reporting on water usage is an important first step in devising an effective water conservation plan for drought-wracked California, Peter Gleick, president of the Pacific Institute, tells DeSmogBlog.

“Without good data, we can’t have good policy,” Gleick says. “And it’s long overdue that the oil industry be transparent about water use and water quality. So I’m looking forward to more transparency.”

California Urban Water Use Restricted While Regulators Give Oil Industry Two More Years To Operate Injection Wells In Protected Groundwater Aquifers

With snowpack levels at just 6% of their long-term average, the lowest they’ve ever been in recorded history, California Governor Jerry Brown has announced new regulations to cut urban water use 25%, the first ever mandatory water restrictions in the state.

California is in the fifth year of its historic, climate-exacerbated drought and, per a recent analysis by a senior water scientist at NASA, has only one year of water left in its reservoirs, while groundwater levels are at an all-time low.

The Golden State’s towns and cities only account for about 20% of all water used for human purposes, however (including residential, institutional, industrial and commercial uses). Agriculture uses the other 80%.

Half of the produce grown in America comes from California, yet 2015 is likely to be the second year in a row that California’s farmers get no water allocation from state reservoirs. In some parts of the state, agricultural operations have pumped so much groundwater that the land is starting to sink.

Governor Brown’s executive order has been criticized for not including restrictions on groundwater pumping by agricultural operations, but Brown defended the decision, saying that hundreds of thousands of acres of land were already lying fallow because of the state’s water crisis.

There’s another industry conspicuously exempt from California’s new water restrictions, though. “Fracking and toxic injection wells may not be the largest uses of water in California, but they are undoubtedly some of the stupidest,” Zack Malitz of the environmental group Credo says, according to Reuters.


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