coal

Tue, 2014-11-18 19:10Steve Horn
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Gulf-Bound Tar Sands for Export? Follow the Oiltanking Trail

The U.S. Senate failed to get the necessary 60 votes to approve the northern leg of TransCanada's Keystone XL pipeline, but incoming Senate Majority Leader Mitch McConnell (R-Ky.) already promised it will get another vote when the GOP-dominated Senate begins its new session in 2015.

Though the bill failed, one of the key narratives that arose during the congressional debate was the topic of whether or not the tar sands product that may flow through it will ultimately be exported to the global market. President Barack Obama, when queried by the press about the latest Keystone congressional action, suggested tar sands exports are the KXL line's raison d'etre.

Obama's comments struck a nerve. Bill sponsor U.S. Sen. Mary Landrieu (D-La.) and supporter U.S. Sen. John Hoeven (R-ND) both stood on the Senate floor and said Keystone XL is not an export pipeline in the minutes leading up to the bill's failure.

“Contrary to the ranting of some people that this is for export…Keystone is not for export,” said Landrieu, with Hoeven making similar remarks.

But a DeSmog probe into a recent merger of two major oil and gas industry logistics and marketing companies, Oiltanking Partners and Enterprise Products Partners, has demonstrated key pieces of the puzzle are already being put together by Big Oil to make tar sands exports a reality. 

And both Keystone XL and Enbridge's “Keystone XL Clone” serve as key thoroughfares for making it happen.

Sun, 2014-11-16 11:54Sharon Kelly
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Prosecution of Don Blankenship a Historic Moment for Coal Industry

This week's indictment of former Massey Energy CEO, Don Blankenship, was as much a political turning point for West Virginia as it was a moment of reckoning economically for the coal industry writ large. It marked the wane of one of America's last great robber barons and yet another ominous warning for the country's dirtiest and deadliest of fossil fuels.

The decision represented a political shot across the bow by a smart, dogged and politically ambitious US attorney, R. Booth Goodwin II. For several years now, Goodwin has systematically worked his way up Massey’s hierarchy, convicting not only low-level supervisors, but also executives higher and higher within the corporate hierarchy. Goodwin has based his prosecutions on conspiracy charges rather than on violations of specific health and safety regulations, which means he can reach further up into the corporate structure.

Goodwin's pursuit of Blankenship was politically daring — and, if the indictment is to be trusted — based on solid evidence. But it was also a welcome development for the state's democrats since for over a decade Blankenship had single-handedly dismantled the mine workers union and bank-rolled a resurgent GOP movement in the state, altering the make-up of the state Supreme Court and funneling funds to astro-turf 501c drives for pet issues like “tort reform”.

More than anything, though, the indictment was a small vindication for the families of the 29 men who died at the Upper Big Branch mine on April 5, 2010 in the worst explosion of the past 40 years. But the incident, a range of investigators concluded, was less an accident and more the outcome of deliberate wrongdoing by Massey.

Thu, 2014-11-13 14:59Mike Gaworecki
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Former Massey Energy CEO Don Blankenship Indicted Over 2010 Mine Disaster

Former Massey Energy CEO Don Blankenship has been indicted on conspiracy and fraud charges for his role in the 2010 explosion at the Upper Big Branch Mine in West Virginia that killed 29 workers.

According to a statement by US Attorney Booth Goodwin of the Southern District of West Virginia: “The indictment charges Blankenship with conspiracy to violate mandatory federal mine safety and health standards, conspiracy to impede federal mine safety officials, making false statements to the United States Securities and Exchange Commission (SEC), and securities fraud.” You can read the full indictment online.

Blankenship has long been a controversial figure. News of the indictment validates charges that have been made against him by environmentalists for years, not only over the poor safety and environmental record of Massey Energy but also his union busting tactics, his opposition to government regulations on extractive industries, and his outspoken belief that climate change does not exist.

Blankenship donated to just one federal candidate in this year's midterm elections: future Senate Environment Committee Chairman James Inhofe, who infamously called global warming “the greatest hoax ever perpetrated on the American people” (h/t Lee Fang).

Wed, 2014-11-12 16:40Graham Readfearn
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Coal Companies Avoid Coal When Funding Energy Poverty Projects In Poorest Countries, Report Finds

When the coal industry says its product is the only way the world’s poor can lift themselves from poverty, some people in Australia believe them.

Chief among the industry’s promoters has been the country’s Prime Minister, Tony Abbott, who has said that coal is “good for humanity” and that the energy source and main driver of climate change shouldn’t be “demonised”.

But a new report from progressive think tank The Australia Institute (TAI) has put a looking glass up to the industry’s claims to a glistening future and found what it claims is little more than self-serving industry spin.

The industry has been pushing its supposed concerns for “energy poverty” in media statements, columns, industry presentations, reports and advertising campaigns this year.

According to the International Energy Agency, there are about 1.3 billion in the world without access to electricity and about 2.7 billion without access to clean cooking and heating. Almost all these people live in rural areas in either sub-Saharan Africa or Asia.

The coal industry – led by a PR campaign from the world’s biggest private-sector coal company, Peabody Energy – has been using the energy poverty issue as way to lobby investors and world leaders.

But the TAI report – All Talk, No Action – finds that the industry’s claim are largely misrepresenting the current economic climate and forecasts for the future.

Tue, 2014-11-11 10:00Mike Gaworecki
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Peabody Energy Goes On Offense With New PR Campaign Designed To Sell Same Old Dirty Coal

Despite what you may have heard about the death of the coal industry, Peabody Energy is ramping up mining activities and going on the offensive, pushing “clean coal” on the world’s poor with a disingenuous but aggressive PR campaign. And for good reason: Peabody has got to sell the coal from the world's largest coal mine to someone.

Speculation is rife that the new GOP-led Senate will join with its similarly fossil fuel-beholden House colleagues to usher in a new era of coal. Peabody, the world’s largest privately held coal company, isn’t waiting around to find out.

The company has teamed with public relations firm Burson-Marsteller—the notorious PR giant that helped Big Tobacco attack and distort scientific evidence of the dangers of smoking tobacco—to launch Advanced Energy for Life, a desperate attempt to shift the discussion around coal away from its deleterious effects on health and massive contributions to climate change and instead posit the fossil fuel as a solution to global poverty.

The aim of this PR offensive, according to a piece by freelance journalist Dan Zegart and former DeSmog managing editor Kevin Grandia (one of Rolling Stone’s “Green Heroes,” and deservedly so), the reason for Peabody’s charm offensive is simple: there’s money to be made selling coal in Asian markets, and Peabody aims to make it—as long as initiatives to combat global warming emissions don’t intervene. Which makes Burson-Marsteller the perfect ally:

Burson-Marsteller, which has a long history of creating front groups to rehabilitate the images of corporate wrongdoers, helped Philip Morris, maker of Marlboro, tackle the Asian market, where Burson fought anti-smoking regulations and developed crisis drills for Philip Morris personnel in Hong Kong on how to handle adverse scientific reports.
 

As the US produces a glut of cheap natural gas, the EPA’s Clean Power Plan seeks to set emissions standards that would make building new coal-fired power plants all but impossible impossible, and the domestic demand for coal drops, Peabody’s value as a company has dropped as well, from $20 billion to just $3.7 billion in the space of three years. The company is in desperate need of new business if it’s to even stay afloat.

Tue, 2014-11-04 04:00Sharon Kelly
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Marcellus Shale Fracking Rush Brings Worries of Boom-Bust Cycle

Across the U.S., the shale gas industry's arrival has been marked by wariness, not only of the environmental impacts associated with fracking, but also due to the oil and gas industry's long history of flashy booms followed by devestating busts.

In towns across the state, the lingering effects of past economic downturns – the flight of manufacturing, the 2008 financial collapse, the slow erosion of the auto and steel industries – have left communities eager for jobs, but also experienced with job loss.

Nowhere better illustrates the potential for a shale rush to heal old economic wounds, or communities' vulnerability to new ones, than Cameron County, Pennsylvania. At the eastern edges of the rust belt, Cameron County has been hit hard by the decline of the American auto industry.

Hopes for a shale renassiance are running up against some difficult realities. A report released Monday by the Post-Carbon Institute, titled “Drilling Deeper: A Reality Check on US Government Forecasts for a Lasting Tight Oil & Shale Gas Boom,” concludes that the Marcellus shale is unlikely to fully live up to government forecasts, and that natural gas prices will have to rise to keep drilling going across the state. The vast majority of the Marcellus shale is not the same high quality as the areas where drillers are currently focusing most of their efforts, referred to in the industry as “sweet spots,” making the gas there more expensive to produce.

The report also finds that shale gas production in the Marcellus is expected to reach it's peak in 2018 or 2019 – meaning that within five years, production will begin dropping. “These projections are optimistic in that they assume the capital will be available for the drilling treadmill that must be maintained to keep production up,” the report says. “This is not a sure thing as drilling in the poorer quality parts of the play will require higher gas prices to make it economic.”

Thu, 2014-10-30 17:00Chris Rose
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World’s Major Banks Poured Over $80 Billion into Coal Last Year Alone

At least $83 billion USD in financing was provided to 65 coal mining and energy companies last year by 92 of the world’s leading commercial banks, according to a Dutch report published Wednesday.

Leading banks provided $500 billion in financing for the coal industry through 2,283 lending and underwriting transactions between 2005 and April 2014, said the report Banking on Coal 2014, which was released by BankTrack in Nijmegen.

The top 20 financiers provided 73 per cent of this amount alone, added the report, released just days ahead of the publication of the fifth United Nations Intergovernmental Panel on Climate Change (IPCC) assessment.

The report said JPMorgan Chase was the top financier between 2005 and this year, lending more than $27 billion, while Citi, in second place, lent $25.8 billion and third-place RBS provided $22.9 billion to coal-related borrowing.

Bank finance for coal is increasing rapidly, the report said, adding 2013 was a record year for coal finance, with commercial banks providing more than $88 billion to the main 65 coal companies – over four times the amount provided in 2005.

Mon, 2014-10-27 11:33Emma Gilchrist
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B.C. LNG Strategy Won’t Help Solve Global Climate Change: New Pembina Institute Report

Christy Clark at LNG Canada announcement

The B.C. government’s claim that LNG exports offer the “greatest single step British Columbia can take to fight climate change” is inaccurate in the absence of stronger global climate policies according to a new report released today by the Pembina Institute and the Pacific Institute for Climate Solutions.

Natural gas does have a role to play in a world that avoids two degrees Celsius in global warming, but only if strong emissions reduction policies are put in place in the jurisdictions that produce and consume the gas, says the report, LNG and Climate Change: The Global Context authored by Matt Horne and Josha MacNab.

Natural gas is often described as a bridge fuel. The question is, how long should that bridge be?” says MacNab, B.C. regional director for the Pembina Institute, a national non-profit focused on transitioning Canada to a clean energy future.

Our research suggests it must be very short if we’re going to be able to get off the bridge in time to avoid the worst impacts of climate change.”

Thu, 2014-10-16 20:24Graham Readfearn
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Coal One of 'Greatest Products In History' Says Australian Coal Industry Figure

THE Australian newspaper has run a free advertisement today for the coal industry in the form of an op-ed column by a leading industry figure that says that coal is one of the best things ever.

And no I'm not exaggerating.

New South Wales Minerals Council chief executive Stephen Galilee, a former advisor to several high-ranking Liberal Party politicians including the now Prime Minister Tony Abbott, writes in The Australian that coal is “one of the greatest overall products in ­history” and is just totally awesome (he didn't use the word awesome, that was me).

Galilee's column in the Murdoch-owned newspaper is the latest repetition of the industry's favourite PR line that coal can end global poverty.

Tony Abbott, the environment minister Greg Hunt and the Treasurer Joe Hockey have all used this coal industry line in recent weeks.

I've written about the industry's attempt to lobby the G20 for The Guardian and looked at Hockey's recent contribution for DeSmogBlog. You should go and read those pieces because they are among the greatest overall products blogs in history.

Wed, 2014-10-15 18:28Graham Readfearn
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Australian Treasurer Joe Hockey Latest Minister To Tout Coal Industry "Energy Poverty" Spin

Australia's Treasurer Joe Hockey barely missed a beat when challenged to justify the country's massive fossil fuel export industry and bottom-dwelling record for domestic greenhouse gas emissions.

“We are exporting coal so that nations can lift their people out of poverty,” the Liberal Treasurer told the journalist Stephen Sackur on the BBC's HARDTalk interview program.

Hockey's argument should be recognised for what it is - a line straight out of the coal industry's newest campaign playbook.

As I wrote earlier this week on The Guardian, the coal industry is attempting to hijack the issue of “energy poverty” by claiming the only way that the world's poorest can prosper is by purchasing and then burning more of their product.

The United Nations Environment Programme wouldn't agree. In a summary report of climate change impacts, UNEP says: “In Africa and other developing regions of the world, climate change is a threat to economic growth (due to changes in natural systems and resources), long-term prosperity, as well as the survival of already vulnerable populations.”
 
The latest Intergovernmental Panel on Climate Change report on the impacts of climate change found climate change would “exacerbate multidimensional poverty” in most developing countries and create “new poverty pockets” in both rich and poor countries.

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