oil change international

Thu, 2014-11-13 13:02Chris Rose
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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.

Mon, 2014-11-10 18:35Guest
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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.

Mon, 2014-11-03 15:41Chris Rose
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“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.”

Thu, 2014-10-16 15:30Guest
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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.

Wed, 2014-08-20 14:32Guest
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Not at Home on the Range: Subsidized Fracking Hits Colorado

This is a guest post by Paul Thacker, originally published by Oil Change International.

A general contractor in Colorado’s Grand Valley, Duke Cox says the first time he became aware that drilling for gas might be a problem was back in the early 2000s when he happened to attend a local public hearing on oil and gas development. A woman who came to testify began sobbing as she talked about the gas rigs that were making the air around her home impossible to breathe.

There were 17 rigs in the area, at that time,” Cox says. “And they were across the valley, so I wasn’t affected. But she was my neighbor.” The incident led Cox to join the Grand Valley Citizens Alliance, a group of activists concerned about drilling policies in his area on Colorado’s Western Slope. Within months he became the group’s President and public face. And as fracking for gas became more common across the state, he has found more and more of his time taken up with the cause.

We are ground zero for natural gas and fracking in this country,” he says.

Mon, 2014-07-28 11:22Guest
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Subsidy Spotlight: Paid to Pollute and Poison

This is a guest post by Paul Thacker, on assignment with Oil Change International. Cross-posted with permission.

A wife and mother of two from Venice, Louisiana, Kindra Arnesen says her life can be divided into two chapters: before April 20, 2010, and after. On that evening, an oil well located several miles off the coast of Louisiana discharged large bubbles of gas which traveled a mile to the surface before igniting, destroying the oil rig and killing eleven men. Thus began the worst marine oil spill in history and America’s largest environmental disaster, with hundreds of millions of gallons of oil eventually spilling into the Gulf of Mexico.

Four years later, residents from surrounding communities claim they still struggle with the health problems caused by the BP oil spill. “You just learn to live sick,” says Arnesen, who complains of headaches and unexplained rashes that won’t go away.

Kindra Arnesen
Kindra Arnesen on the water (photo courtesy Cherri Foytlin)

Her husband, who was hired by BP to help clean up the spill, has it much worse.

Sun, 2014-07-06 14:14Carol Linnitt
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One Year After Lac-Mégantic Disaster: Delay in Safety Regs, Groups Bring Oil Train Data to Communities

Lac-Mégantic oil train derailment, explosion

On July 6th, 2013, one year ago today, a train carrying oil derailed in the sleepy Quebec town of Lac-Mégantic, resulting in an explosion so wild and so hot it leveled several city blocks and incinerated the bodies of many of its 47 victims. The accident put the tiny town on the international media circuit and dragged a new social concern with it: oil trains.

Whether you call them oil trains, tanker trains or bomb trains, chances are you didn’t call them anything at all before this day last year.

Before the tragedy of Lac-Mégantic, several smaller tanker train accidents across North America had already raised alarm over the danger of transporting oil and other fuels by rail in small communities with tracks often running through city centres and residential areas.

In the wake of Lac-Mégantic, however, critics, environmental organizations, journalists and concerned communities began tracking the growing movement of volatile oil shipments across the continent.

Tue, 2014-06-17 07:28Ben Jervey
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Tar Sands on the Tracks: Railbit, Dilbit and U.S. Export Terminals

Last December, the first full train carrying tar sands crude left the Canexus Bruderheim terminal outside of Edmonton, Alberta, bound for an unloading terminal somewhere in the United States.

Canadian heavy crude, as the tar sands is labeled for market purposes, had ridden the rails in very limited capacity in years previous — loaded into tank cars and bundled with other products as part of so-called “manifest” shipments. But to the best of industry analysts’ knowledge, never before had a full 100-plus car train (called a “unit train”) been shipped entirely full of tar sands crude.

Because unit trains travel more quickly, carry higher volumes of crude and cost the shipper less per barrel to operate than the manifest alternative, this first shipment from the Canexus Bruderheim terminal signaled the start of yet another crude-by-rail era — an echo of the sudden rise of oil train transport ushered in by the Bakken boom, on a much smaller scale (for now).

This overall spike in North American crude-by-rail over the past few years has been well documented, and last month Oil Change International released a comprehensive report about the trend. As explained in Runaway Train: The Reckless Expansion of Crude-by-Rail in North America (and in past coverage in DeSmogBlog), much of the oil train growth has been driven by the Bakken shale oil boom. Without sufficient pipeline capacity in the area, drillers have been loading up much more versatile trains to cart the light, sweet tight crude to refineries in the Gulf, and on both coasts.

Wed, 2014-05-28 15:39Justin Mikulka
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Interactive Map and Report on Oil-By-Rail, "Booming Bomb Train Industry"

A new report and website released today by Oil Change International provides a comprehensive overview of the current oil-by-rail industry in North America and it isn’t a pretty picture.

The report and interactive map of the “booming bomb train industry” capture the alarming scope of this very recent development.  As the report points out, 70 times as much oil was moved by rail in 2014 as there was in 2005. That rapid expansion is continuing, placing more North American communities at risk.  

This analysis shows just how out of control the oil industry is in North America today. Regulators are unable to keep up with the industry’s expansion-at-any-cost mentality, and public safety is playing second fiddle to industry profits,” said Lorne Stockman, Research Director of Oil Change International and author of the report.

According to the report, Runaway Train: The Reckless Expansion of Crude By Rail in North America, approximately one million barrels of oil per day are moved on 135 trains of 100 cars or more each day in America.  If all of the currently planned development of oil-by-rail facilities occurs, the full capacity to move oil would be five times that amount.  

This is what the All of the Above Energy Strategy looks like – a runaway train headed straight for North American communities,” Stockman said.

Screen Shot 2014-05-28 at 9.40.08 AM.png

This massive investment by the oil and rail industries to expand their capacity to move oil by rail is one of the main reasons that improving oil-by-rail safety is unlikely when it comes to the unsafe DOT-111 tank cars.  These cars currently make up approximately 70% of the oil-by-rail tank car fleet and there is currently a two to three year waiting list for companies wanting new tank cars.  

Wed, 2013-11-20 11:00Brendan DeMelle
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Dirty Energy Subsidies Still 5x More Than Pledged Climate Aid, Activists Ask #WTF?

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Oil Change International released a briefing paper today at COP19 in Warsaw revealing that subsidies lavished on the fossil fuel industry by wealthy industrialized nations add up to more than five times the amount of climate finance aid the same countries have so far pledged to deliver to poorer nations to reduce their global warming emissions and adapt to manmade climate change.

Despite the fact that industrialized countries have pledged to scale up to $100 billion in annual climate aid by 2020, they are still pumping more money in the opposite direction, subsidizing fossil fuels production and consumption instead of helping
 the developing countries adapt and mitigate against climate change impacts. 

The G-20 has unanimously supported phasing out inefficient fossil fuel subsidies since 2009, and re-affirmed its commitment to doing so this fall, so there is no reason for this disconnect to persist, other than the powerful grip that the oil and coal industries have over many of these governments currently.

Oil Change International's website summarizes this backwards approach:

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