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Mon, 2014-10-20 14:57Justin Mikulka
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Natural Gas as 'Bridge Fuel' Is Excellent Political Solution But Fails As Climate Solution

Fracking for natural gas

“We cannot solely rely on abundant gas to solve the climate change problem. The climate change problem requires a climate change solution. Abundant gas could be great for any number of things, but it is not going to solve the climate change problem.”

This statement was made by Haewon McJeon, the lead author on a new study published last week by Nature magazine, which concluded that cheap abundant natural gas will actually delay any efforts to reduce carbon emissions.

This isn’t the first study to reach this conclusion. In the 2013 study “Climate Consequences of Natural Gas as a Bridge Fuel,” author Michael Levi reached a similar conclusion. He noted that for a natural gas to be beneficial as a bridge fuel it had to be a short bridge with gas consumption peaking by 2020 or 2030.

The new study, Limited Impact on Decadal-Scale Climate Change from Increased Use of Natural Gas, looks at natural gas consumption increasing through 2050.

Thu, 2014-09-25 05:00Mike G
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China To Create National Cap-And-Trade Program As Obama Admin Must Bypass U.S. Senate On Climate

The Obama Administration is pursuing an international climate agreement that would be “politically binding” but would not be a treaty requiring ratification by two-thirds of the U.S. Senate.

Meanwhile, China has announced it will create a national cap-and-trade program.

These two facts amount to a stunning juxtaposition. China, currently the world’s largest emitter of greenhouse gas pollution, is taking decisive action to lower its emissions, while the leader of the United States, historically the world’s largest climate polluter, must circumvent his own government to take even modest first steps towards dealing with climate change.

According to the latest Global Carbon Budget report, CO2 emissions rose 2.3% in 2013, with China responsible for 28% and the United States contributing 14%.

Emissions are projected to increase by another 2.5% in 2014, according to the report, which also notes that the world is on track for a temperature rise somewhere between 3.2 and 5.4 degrees Celsius over pre-industrial levels by 2100—well above the 2-degree mark scientists say we must limit warming to in order to avert the worst effects of climate change.

The New York Times reports that negotiators for the Obama Adminstration are calling an international agreement that bypasses the treaty ratification process in the Senate the only viable path forward:

Lawmakers in both parties on Capitol Hill say there is no chance that the currently gridlocked Senate will ratify a climate change treaty in the near future, especially in a political environment where many Republican lawmakers remain skeptical of the established science of human-caused global warming.


This is not the first time Obama has gone around Congress to take action on the climate. The centerpiece of President Obama’s Climate Action Plan uses authorities granted to the EPA under the Clean Air Act to limit carbon emissions on a state-by-state basis and requires states to come up with plans to achieve those cuts.

But even the Obama Administration admits that this type of measure is not, in and of itself, a solution to the climate crisis we’re facing.

“The point is, that this is a start,” White House science and technology advisor John Holdren recently told the House Science Committee. “The carbon-action plan is a start, and if we do not make a start, we will never get there.”

Tue, 2014-09-23 05:00Steve Horn
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Peabody Energy Booted From S&P 500, King Coal on the Defensive as Market Signals Industry Decline

King Coal and industry multinational Peabody Energy (BTU) have taken a beating in the markets lately, and it has some executives in the dirty energy industry freaking out

On September 19, Dow Jones removed Peabody Energy from its S&P 500 index, considered a list of the premier U.S. stocks for investors. The St. Louis Post-Dispatch cited the downward trajectory of the company's market capitalization as the rationale behind the ouster of Peabody from the S&P 500 index. Peabody will now join the JV leagues in the S&P MidCap 400.

Peabody's downfall symbolizes ongoing market trends within the coal industry overall.

“The total market value of publicly traded U.S. coal companies has rebounded slightly in recent months, but remains nearly 63% lower than a total of the same companies at a near-term coal market peak in April 2011,” explained SNL Energy in April. 

“A perfect storm of factors, including new federal regulations impacting coal-burning power plants, cheap competing fuels, railroad service issues and weak global markets has kept pressure on a number of coal operators since the industry's 2011 near-term peak.”

A new study published this week by the Carbon Tracker Initiative — best known for its work accounting for a “carbon budget” and unburnable carbon — raises further questions about the future of coal's global market hegemony. It's another blow to the coal industry as the United Nations convenes this week's Climate Summit in New York City to discuss climate disruption, in no small part driven by antiquated coal-fired power plants.

Sun, 2014-08-31 08:00Steve Horn
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Legal Case: White House Argues Against Considering Climate Change on Energy Projects

Just over a month before the United Nations convenes on September 23 in New York City to discuss climate change and activists gather for a week of action, the Obama White House Council on Environmental Quality (CEQ) argued it does not have to offer guidance to federal agencies it coordinates with to consider climate change impacts for energy decisions.

It came just a few weeks before a leaked draft copy of the Intergovernmental Panel on Climate Change's (IPCC) latest assessment said climate disruption could cause “severe, pervasive and irreversible impacts for people and ecosystems.”

Initially filed as a February 2008 petition to CEQ by the International Center for Technology Assessment, the Sierra Club and the Natural Resources Defense Council (NRDC) when George W. Bush still served as President, it had been stalled for years. 

Six and a half years later and another term into the Obama Administration, however, things have finally moved forward. Or backwards, depending on who you ask. 

NEPA and CEQ

The initial February 2008 legal petition issued by the plaintiffs was rather simple: the White House's Council for Environmental Quality (CEQ) should provide guidance to federal agencies it coordinates with to weigh climate change impacts when utilizing the National Environmental Policy Act (NEPA) on energy policy decisions. 

A legal process completely skirted in recent prominent tar sands pipeline cases by both TransCanada and Enbridge, NEPA is referred to by legal scholars as the “Magna Carta” of environmental law.

Magna Carta; Photo Credit: Wikimedia Commons

CEQ oversees major tenets of environmental, energy and climate policy. It often serves as the final arbiter on many major legislative pushes proposed by Congress and federal agencies much in the same way the White House's Office of Information and Regulatory Affairs (OIRA) does for regulatory policy. 

Wed, 2014-08-27 13:10Steve Horn
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State Dept. Overseers of Contentious Enbridge Tar Sands Pipeline Workaround Have Industry, Torture Ties

The Sierra Club, National Wildlife Federation (NWF) and other green groups recently revealed that pipeline giant Enbridge got U.S. State Department permission in response to its request to construct a U.S.-Canada border-crossing tar sands pipeline without earning an obligatory Presidential Permit.

Enbridge originally applied to the Obama State Department to expand capacity of its Alberta Clipper (now Line 67) pipeline in November 2012, but decided to avoid a “Keystone XL, take two” — or a years-long permitting battle — by creating a complex alternative to move nearly the same amount of diluted bitumen (“dilbit”) across the border.

The move coincides with the upcoming opening for business of Enbridge's “Keystone XL” clone: the combination of the Alberta Clipper expansion (and now its alternative) on-ramp originating in Alberta and heading eventually to Flanagan, Ill., the Flanagan South pipeline running from Flanagan, Ill. to Cushing, Okla. and the Cushing, Okla. to Port Arthur, Texas Seaway Twin pipeline.

Together, the three pieces will do what TransCanada's Keystone XL hopes to do: move dilbit from Alberta's tar sands to Port Arthur's refinery row and, in part, the global export market.

Environmental groups have reacted with indignation to the State Department announcement published in the Federal Register on August 18. The public commenting period remains open until September 17.

Jim Murphy, senior counsel for NWF, referred to it as an “illegal scheme,” while a representative from 350.org says Enbridge has learned from the lessons of its corporate compatriot, TransCanada.

“When we blocked Keystone XL, the fossil fuel industry learned that they have a much stronger hand to play in back rooms than on the streets,” said Jason Kowalski, policy director for 350.org. “They will break the law and wreck our climate if that's what it takes for them to make a buck.”

But as the old adage goes, it takes two to tango. 

That is, influential State Department employees helped Enbridge find a way to smuggle an additional 350,000 barrels of tar sands per day across the border without public hearings or an environmental review. 

Mon, 2014-08-25 13:58Farron Cousins
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BP Wins Big In Offshore Oil Drilling Lease Auction

For all of his administration’s tough talk on protecting our environment, President Obama doesn’t seem to have any problem increasing the nation’s dependence on dirty energy.  Earlier this year, the Obama administration announced plans to open up an astounding 112 million acres of the Gulf of Mexico for oil and gas exploration, setting a bidding war in motion for some of the worst environmental offenders in America.

It should come as no surprise then to find out that the big winner in the lease auction earlier this month was BP, the main culprit behind the 2010 Deepwater Horizon oil rig explosion and oil leak in the Gulf of Mexico. 

The Bureau of Ocean Energy Management (BOEM) put 21.6 million acres up for auction, with area blocks ranging everywhere from 9 miles offshore, to 250 miles offshore.  Overall, the auction brought in close to $110 million, with as much as 90 million acres still waiting to be auctioned off.

BP bid on a total of 31 lots, and was successful in winning 27 of those lots, more than any other energy company.  The company had previously been barred from bidding on new oil and gas exploration leases following the 2010 Macondo well blowout, but that ban was lifted in March of this year.

Many of the areas that the company won are for deepwater exploration, an unpleasant scenario for areas of the Gulf Coast still reeling from the company’s 2010 disaster.

But the British oil giant BP plc has very little to fear with their new leases, even if another blowout were to occur, and that’s the part of the story that has been routinely missed by the media. 

Wed, 2014-08-13 11:15Justin Mikulka and Steve Horn
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Rail CEOs to Investors: "Bomb Trains" Safe At Almost Any Speed

Burlington Northern Santa Fe (BNSF) recently said it would proceed with plans to increase speeds for oil-by-rail unit trains in Devil’s Lake, N.D. to 60 MPH from 30 MPH, despite opposition from local officials

BNSF’s announcement came merely a week after the Obama Administration announced its proposed regulations for trains carrying oil obtained via hydraulic fracturing (“fracking”) from North Dakota's Bakken Shale basin.  

The rail industry’s position on speed limits for “bomb trains” is simple: they continuously claim velocity has nothing to do with oil-by-rail accidents or safety.

For example, Big Rail — as revealed by DeSmogBlog — lobbied against all proposed oil train speed reductions in its dozen or so private meetings at the Obama White House before the unveiling of the proposed oil-by-rail regulations. 

Recent statements by rail industry CEOs during investor calls put the heads of many companies on record opposing oil-by-rail speed limits for the first time.

Sat, 2014-08-02 07:31Sharon Kelly
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As Energy Department Announces Methane Measures, Critics Call for Stronger Action

On Tuesday, the White House released a report estimating that delaying action on climate change could cause $150 billion a year in damage to the U.S. economy.

“These costs are not one-time, but are rather incurred year after year because of the permanent damage caused by increased climate change resulting from the delay,” the assessment warned.

That same day, President Obama announced moves to help reduce greenhouse gasses. But some critics charge that the President's actions have so far failed to be proportionate to the crisis the White House predicts.

As DeSmog reported, on Tuesday, the Environmental Protection Agency's program on natural gas pipeline leaks came under fire from the EPA's own internal watchdog. The EPA inspector general lambasted the agency for setting up rules that rely heavily on voluntary leak repairs by pipeline companies while turning a blind eye to state policies that allow those companies to simply pass the price of leaking gas to consumers instead of making costly repairs.

The resulting leaks, the EPA audit concluded, cost consumers over $192 million and the resulting greenhouse gasses each year were equal to putting an addition 2.7 million cars on the road.

On the heels of that report, the Obama administration announced that it would adjust its methane pollution controls — but the measures they announced fell far short of what some experts argue is necessary to curtail methane's climate hazards. The Department of Energy's new measures include adjustments to its voluntary leak control program and add funding for research into ways to better curb leaks.

While we applaud the commitments made by DOE, labor unions, utility groups, and other stakeholders,” Earthworks Policy Director Lauren Pagel told the Oil and Gas Journal, “voluntary measures and new research initiatives don’t adequately protect communities and the climate.”

Thu, 2014-07-31 13:42Steve Horn
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Documents: Cheniere Fuels ALEC’s New Push for Fracked Gas Exports

Today, legislative and lobbyist members of the American Legislative Exchange Council (ALEC) voted on model legislation promoting both exports of gas obtained via hydraulic fracturing (“fracking”) and vehicles powered by compressed natural gas (CNG)

Dubbed a “corporate bill mill” by its critics, ALEC is heavily engaged in a state-level effort to attack renewable energy and grease the skids for exports of U.S. oil and gas. Today's bills up for a vote — as conveyed in an ALEC mailer sent out on June 25 by ALEC's Energy, Environment and Agriculture Task Force — are titled “Resolution In Support of Expanded Liquefied Natural Gas Exports“ and “Weights and Measures and Standards for Dispensing CNG and LNG Motor Fuels.” 

An exclusive investigation conducted by DeSmogBlog reveals that Cheniere — the first U.S. company to receive a final liquefied natural gas (LNG) export permit by the U.S. Federal Energy Regulatory Commission (FERC) — has acted as the lead corporate backer of the LNG exports model resolution. 

Further, Clean Energy Fuels Corporation, owned by energy baron T. Boone Pickens, of Pickens Plan fame, and trade associations it is a member of, served as the main pusher of the CNG model resolution.

ALEC has served as a key vehicle through which the fracking industry has curried favor and pushed for policies favorable to their bottom lines in statehouses nationwide. Now ALEC and its corporate backers have upped the ante, pushing policies that will lock in downstream demand for fracked gas for years to come. 

With Cheniere becoming an ALEC dues-paying member in May 2013 and with America’s Natural Gas Alliance (ANGA) — the fracking industry's tour de force — crowned an ALEC member in August 2013, it looks like many more fracking-friendly model bills could arise out of ALEC in the months and years ahead.

Mon, 2014-07-28 16:00Farron Cousins
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Has The Gulf Of Mexico Hit Peak Oil?

There are enough articles on the “myth of peak oil” floating around the Internet to fill a book; and there are enough books on the subject to fill a small library.  One of the common threads throughout these publications is their lack of credible sources, because not only is peak oil real, but we’re rapidly approaching that threshold. 

An example that is smacking the United States and the oil industry in the face right now is floating in the Gulf of Mexico. 

According to a new government report, oil and natural gas production in the Gulf has been steadily declining for the last decade. The report looked at oil production in the Gulf of Mexico on federal lands only, not any privately-held lands where production is taking place. Since 2010, according to the report, the annual yield of oil from the Gulf has fallen by almost 140 million barrels. 

While the Gulf region still accounts for 69% of U.S. oil produced on federal lands, the dramatic decline in production tells a story that the oil industry doesn’t want us to hear.  Peak oil is clearly beginning to play a role in U.S. exploration.

Contrary to what some of the peak oil deniers want the public to believe, peak oil does not mean that we’re about to run out of oil. What it means is that the United States is running out of easily accessible, financially viable oil. As that easy to retrieve oil disappears, companies have to drill deeper and deeper or in otherwise inaccessible places in order to get their oil. 

This makes the process much more expensive and drives costs up to the point that profits are hard to come by. And this is what we’re beginning to see in the Gulf of Mexico.

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