oil industry

Fri, 2014-02-14 11:00Farron Cousins
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Oil Industry Profited Off Polluting Oil Spills, Fraud Investigation Underway

When an oil company’s negligence leads to an oil spill, the financial costs incurred by the company can be crippling.  They have to pay clean up costs, federal fines, and, in many cases, settlements to victims who have been affected by the spill.  Since these costs can be such a burden to the multi-billion dollar industry, they’ve figured out a way to recoup some of their losses by deceiving all the players involved.

Of course, these aren’t the massive oil spills that we’ve seen from Exxon and BP; these are the smaller ones that most people don’t hear about that typically occur when storage containers leak.  That’s where the industry has learned that oil spills can actually be good for their bottom line.

The scheme is known as “double dipping,” and it involves oil companies receiving both insurance funds for spill cleanup along with state funds to clean up oil leaks from underground tankers.  This allows the company to use funds for cleanup, and usually have a little left over to put in their pockets.

A new report by Reuters succinctly captures the essence of what’s happening in a single quote:  “When I first saw these cases, I thought this is kind of incredible,” said New Mexico assistant attorney general Seth Cohen, who handled the lawsuit for the state. “The oil companies have, in effect, profited off polluting.”

Mon, 2013-06-10 08:36Jeff Gailus
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Greenwashing the Tar Sands, Part 3: Wherein money trumps fact every time

This is last installment of a three-part series on greenwashing and the tar sands. Be sure to read Part 1, A Short History of Greenwashing the Tar Sands, and Part 2, Do As I Say, Not As I Do.

Recently, Canadian Oil Sands Chief Executive Officer Marcel Coutu explained to Bloomberg why he and other big shot oil executives have been lobbying U.S. politicians so hard for the approval of the Keystone XL pipeline, which would ferry more than 800,000 barrels of tar sands crude to the Gulf Coast. Coutu had participated in a Canadian Association of Petroleum Producers (CAPP) lobbying junket in February, and another trip is being planned for this month.

The first reason is money. The Keystone XL pipeline is a vital component of the tar sands industry’s plans. Without it, it will be hard for Big Oil to double production of tar sands crude by 2020. With no way to transport the extra crude to markets in the U.S. and beyond, there would be no point in spending all that money to turn bitumen into a crude form of oil. This, Coutu said, has had a chilling effect on investment and share prices.

Canadian Oil Sands shares have risen just two per cent this year, while Cenovus’ have fallen seven percent and Imperial Oil’s are down 6.2 percent. Keystone XL, says Todd Kepler, a Calgary-based oil and gas analyst at Cormark Securities, would increase share prices for oil producers by as much as 20 per cent.

That's a big deal worth millions of dollars.

Sat, 2013-04-20 09:21Laurel Whitney
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Tim DeChristopher, Imprisoned For Nearly Two Years, To Be Released On Earth Day

Climate activist Tim DeChristopher is set to be released from prison on Earth Day, this Sunday April 21st, since being incarcerated on July 26, 2011.

Tim DeChristopher created quite a ripple in the activist community when he tried to buy millions of dollars of land in December of 2008 in order to stop the oil and gas industry from snatching it up at an illegitimate auction put on by the outgoing Bush administration. While the incoming Obama administration cancelled the auction, Tim was caught in the fallout, while the rest of the auctioneers presumably roam free.

He was slapped with two federal felony charges - one for making false statements and violating the Federal Onshore Oil and Gas Leasing Reform Act.

Tim's trial was pushed back 6 times over two years and was fraught with maddening plot twists. The judge refused to let Tim use the Necessity Defense or let the jury know crucial facts, including that the auction was illegal. Tim was also prohibited from testifying on how he acted on moral convictions relating to climate change.

His prison term was no less eventful. During March of last year, Tim was thrown in isolated confinement for two and a half weeks after writing correspondence that the Bureau of Prisons (BOP) deemed potentially harmful because it contained the word “threat.” It turned out he was only “threatening” to return a potential legal fund donation from a company whose ethics weren't aligned with his own.

Rumors went around that an unnamed Congressman had put in the order, but investigations never figured out if it was true.

Tue, 2012-12-04 17:46Carol Linnitt
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"Big Oil's Oily Grasp": Polaris Institute Documents Harper Government Entanglement with Tar Sands Lobby

Oil industry lobbyists in Canada have taken the country by the reins. At least, that's the implication of the Polaris Institute's new report released today. The report, “Big Oil's Oily Grasp - The Making of Canada as a Petro-State and How Oil Money is Corrupting Canadian Politics,” (pdf) documents 2,733 meetings held between the oil industry and federal government officials since 2008. That figure outstrips meetings with environmental organizations by a whopping 463 percent. 

“Canada's increasing dependence on the export of bitumen to the United States has, in effect, served to redefine this nation in the form of a petro-state,” the report opens. Lobbying activities in Ottawa may help explain why “the Canadian government has increasingly watered down or withdrawn its role and responsibilities to regulate the economic, environmental and social impacts of the tar sands industry.”
 
The report highlights the spike in lobbying activities - of six major Big Oil players including Enbridge and TransCanada - in the period between September 2011 and September 2012, right when the industry-friendly omnibus budget Bill C-38 made its infamous debut. In that same period of time, the federal government met once with Greenpeace. 
 
Since 2008, oil and gas industry groups held meetings with officials 367 percent more than the two major automotive associations in Canada, and 78 percent more than the top two mining associations. 
 
“The amount of face time the oil industry gets in Ottawa in personal meetings and other correspondence greatly exceeds the time afforded other major industries in Canada,” says the report's co-author Daniel Cayley-Daoust. “No one doubts the hold the oil industry has on this current government, but it is important Canadians are aware that such a high rater of lobbying to federal ministers has strong policy implications.”
 
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.

Thu, 2011-03-31 08:59Farron Cousins
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The Ticking Time Bombs In The Gulf of Mexico

Image Source - http://www.thiscantbehappening.net/node/65

49 weeks have passed since the Deepwater Horizon oil rig exploded and sank into the Gulf of Mexico, resulting in millions of barrels of oil leaking into the Gulf, and yet the same fatal flaws that doomed that rig are still present in most offshore oil rigs in the Gulf of Mexico.

The reason that BP’s Macondo well managed to leak oil into the Gulf was because the blowout preventer on the Deepwater Horizon rig malfunctioned, meaning that the preventer could not blow up and seal off the well. But the Deepwater Horizon is not the only rig that contained a malfunctioning blowout preventer. According to new reports, blowout preventers on rigs throughout the Gulf have not been properly inspected or maintained, meaning that another rig explosion could result in more oil in the Gulf.

Mon, 2011-02-28 15:21Laurel Whitney
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Tim DeChristopher Trial Commences in Salt Lake City

Today in Salt Lake City, climate activist Tim DeChristopher (aka Bidder 70) finally gets his day in court after waiting almost 2 years since his original indictment for disrupting an illegal auction of oil and gas leases that would have opened pristine public lands in Utah to drilling. The district attorney has delayed the trial as many as 6 times as the government hoped DeChristopher would succumb to a plea bargain, but DeChristopher’s legal team has stood firm in demanding a public trial by a jury of his peers so that the public might hear the truth about the original BLM auction, which was a last-minute parting gift to the oil and gas industry from outgoing President George W. Bush.

Back in December 2008, DeChristopher showed up at a controversial oil and gas auction in Utah that was offering leases to companies to drill on environmentally-sensitive public lands, including Nine Mile Canyon and Dinosaur National Monument. An economics student at the time, DeChristopher was troubled by the Bush Administration’s efforts to skirt around required environmental assessments, essentially making the auction illegal in the first place.

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