oil change international

Report: Fossil Fuel Industry Benefits from $20 Billion in Subsidies in the U.S.

A new joint investigative report by Oil Change International and the Overseas Development Institute reveals that, in the United States alone, the fossil fuel industry has benefited from over $20 billion per year in government subsidies between 2008-2015.

The percentage of subsidies has skyrocketed during the two terms of the Obama Administration, growing by 35 percent since President Barack Obama took office in 2009. The findings are part of a broader report on subsidies given to G20 countries ahead of the forthcoming G20 Leaders Summit in Antalya, Turkey, set to take place November 15-16.

Is it the Beginning of the End for the Alberta Oilsands?

A new report from Oil Change International challenges industry’s common assumption that the continued production of oilsands crude is inevitable.

The report, Lockdown: The End of Growth in the Tar Sands, argues industry projections — to expand oilsands production from a current 2.1 million barrels per day to as much as 5.8 million barrels per day by 2035 — rely on high prices, public licence and a growing pipeline infrastructure, all of which are endangered in a carbon-constrained world.

As the report’s authors find, growing opposition to oil production — especially in the oilsands, which is among the most carbon intensive oil in the world — has significantly altered public perception of pipelines, a change amplified by the cross-continental battles against the Enbridge Northern Gateway, Kinder Morgan Trans Mountain, TransCanada Energy East and TransCanada Keystone XL pipelines.

According to the report’s authors, production growth in the oilsands hinges on the construction of these contentious pipelines because the existing pipeline system is currently at 89 per cent capacity.

Shell To Proceed With Arctic Drilling Despite Damaged Icebreaker Ship Carrying Critical Emergency Gear Heading To Portland For Repairs

Shell officials are still hoping to launch exploratory drilling this month at the company’s Burger prospect, 70 miles off the coast of Alaska in the Chukchi Sea, even though a key ship in its fleet was forced back to port before it had even left the harbor last week after a 3-foot-long gash was discovered in its hull.

The company has to send the MSV Fennica to Portland because Terminal 5 at the port of Seattle, where Shell’s two drilling rigs were stored before they departed for Alaska, is a cargo terminal that doesn’t allow heavy repairs.

It is expected to take several weeks to repair the Fennica, according to FuelFix. The trip to Portland alone will take more than a week, and the Fennica appears to still be in Unalaska in the Aleutian Islands right now. But Shell has already begun moving its fleet into place in the Chukchi Sea, and does not plan on waiting for the Fennica to return before commencing drilling activities.

Public Interest Groups File FOIA Request To Compel Disclosure Of Crude Oil Export Ban Exceptions

Last month, DeSmogBlog broke the news that the Obama Administration was quietly letting oil companies export crude under the guise of “exceptions” to the crude oil export ban.

Now a coalition of public interest groups including Earthjustice, Oil Change International, and Sightline Institute says the public has a right to know what criteria the Department of Commerce’s Bureau of Industry and Security (BIS) used in determining which crude oil streams were exempt from the ban, and has filed a Freedom Of Information Act request to find out.

With the price of oil cratering and that trend not likely to reverse soon thanks in large part to the glut of production in the US, oil companies are desperate to sell their crude on the global market, where it can potentially fetch higher prices. The catch, of course, is the crude oil export ban, a policy that’s been in place since 1975.

The oil industry has apparently decided that its usual means of influencing public policy—lobbying and advertising to sway public opinion in its favor—would take too much time and money, as Justin Mikulka wrote here on DeSmog.

So if you are the oil industry, you innovate. You call the oil you are producing condensate, get the regulators at the little known Bureau of Industry and Security to agree to not define what condensate actually is and then have them tell you that you as an industry are free to “self classify” your oil as condensate and export it.

Problem solved. Billions in profits made.

Subsidy Spotlight: Utah Land Defenders Stand Up To Dirty Politics

This is a guest post by Anna Simonton, on assignment with Oil Change International | Part 2 of 2

Lauren Wood grew up in a family of river guides in the Uinta Basin region of Utah. She navigates tributaries of the Colorado River like her urban counterparts navigate subway systems. She learned to ride a horse, and then drive a car, on the Tavaputs Plateau. And she can name most any gorge or gully in the place she calls home.

Subsidy Spotlight: Publicly Funding a Utah Disaster in the Making

This is a guest post by Anna Simonton, on assignment with Oil Change International | Part 1 of 2

A green stegosaurus graces the logo of Uintah County, Utah, a gateway to the famed Dinosaur National Monument, where breathtaking landscapes and fossils preserved in sandstone attract thousands of visitors every year.

That logo has taken on new meaning over the past decade as prehistoric remains have attracted a different crowd. Now oil and gas executives are flocking to the Uinta Basin in Eastern Utah, as new technologies––and support from the government––offer the dubious possibility of digging up the region’s vast deposits of oil shale and tar sands.

G20 Governments are Spending $88B Each Year to Explore for New Fossil Fuels. Imagine if Those Subsidies Went to Renewable Energy?

oil change international, subsidies, oil gas exploration

Rich G20 nations are spending about $88 billion (USD) each year to find new coal, oil and gas reserves even though most reserves can never be developed if the world is to avoid catastrophic climate change, according to a new report.

Generous government subsidies are actually propping up fossil fuel exploration which would otherwise be deemed uneconomic, states the report, “The fossil fuel bail-out: G20 subsidies for oil, gas and coal exploration.”

Produced by the London-based Overseas Development Institute and the Washington-based Oil Change International the 73-page analysis also noted the costs of renewables is falling and the investment returns are better than fossil fuels.  

Every U.S. dollar in renewable energy subsidies attracts $2.5 in investment, whilst a dollar in fossil fuels subsidies only draws $1.3 of investment,” said the report released Tuesday, just days ahead of the G20 leaders meeting in Brisbane, Australia.

The report also notes the G20 nations are creating a ‘triple-lose’ scenario by providing subsidies for fossil-fuel exploration.

Shell Accused of “Hijacking” Clean-up Process in Niger Delta

This is a guest post by Andy Rowell, cross-posted with the permission of Oil Change International.

Today is the nineteenth anniversary of the muder of the writer Ken Saro-Wiwa by the Nigerian junta for his campaign against the oil giant Shell.

Saro-Wiwa was the leader of a campaign by the Ogoni against Shell’s chronic pollution and gas flaring in the Niger Delta.

Whilst the oil giant quite clearly operated to double standards and made huge profits, the locals were on the front line of Shell’s pollution, but they received no compensation in return.

In those nineteen years, life has moved on in the Delta, but little has changed.

“Citizen Interventions” Have Cost Canada’s Tar Sands Industry $17B, New Report Shows

Oil companies and fossil fuel investors seeking further developments in the Alberta tar sands have been dealt another setback with the publication of a report showing producers lost $17.1 billion USD between 2010-2013 due to successful public protest campaigns.

Fossil fuel companies lost $30.9 billion overall during the same period partly due to the changing North American oil market but largely because of a fierce grassroots movement against tar sands development, said the report — Material Risks: How Public Accountability Is Slowing Tar Sands Development.

A significant segment of opposition is from First Nations in Canada who are raising sovereignty claims and other environmental challenges, added the report, which was produced by the Institute for Energy Economics and Financial Analysis (IEEFA) and Oil Change International (OCI).

Tar sands producers face a new kind of risk from growing public opposition,” Tom Sanzillo, director of finance at IEEFA, and one of the lead authors on the report, said. “This opposition has achieved a permanent presence as public sentiment evolves and as the influence of organizations opposed to tar sands production continues to grow.”

Subsidy Spotlight: Paying the Price of Tar Sands Expansion

This is a guest post by Anna Simonton, on assignment with Oil Change International.

Carolyn Marsh was in her living room watching television on a Wednesday night in August when she heard a loud boom from somewhere outside. Having lived in the industrial town of Whiting, Indiana––just south of Chicago––for nearly three decades, she wasn’t terribly shaken. “There’s a lot of noise constantly,” she explains.

But when the news came on an hour later and reported an explosion at the nearby BP refinery, Marsh was incensed. It was the second serious incident since the recent completion of BP’s Whiting Refinery Modernization Project, which Marsh had fought to prevent.

In December 2013, after six years of community pushback, court battles, Environmental Protection Agency citations, and ongoing construction in spite of it all, BP’s $4.2 billion retrofitted facility came fully online.


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