U.S. Department of State

New Records Show More US Involvement in Mexico Oil, Gas Privatization Efforts as Mexican Government Says "100%" Its Idea

New records obtained by DeSmog shed further light on the role the U.S. government has played to help implement the privatization of Mexico's oil and gas industry, opening it up to international firms beyond state-owned company PEMEX (Petroleos Mexicanos).

Obtained from both the City of San Antonio, Texas and University of Texas-San Antonio (UTSA), the records center around the U.S.–Mexico Oil and Gas Business Export Conference, held in May in San Antonio and hosted by both the U.S. Department of Trade and Department of Commerce, as well as UTSA.

They reveal the U.S. government acting as a mediator between Mexico's government and U.S. oil and gas companies seeking to cash in on a policy made possible by the behind-the-scenes efforts of then-Secretary of State Hillary Clinton's U.S. State Department. State Department involvement was first revealed here on DeSmog, pointing to emails obtained via Freedom of Information Act and cables made available via Wikileaks.

Exclusive: Hillary Clinton State Department Emails, Mexico Energy Reform and the Revolving Door

Emails released on July 31 by the U.S. State Department reveal more about the origins of energy reform efforts in Mexico. The State Department released them as part of the once-a-month rolling release schedule for emails generated by former U.S. Secretary of State Hillary Clinton, now a Democratic presidential candidate.

Originally stored on a private server, with Clinton and her closest advisors using the server and private accounts, the emails confirm Clinton's State Department helped to break state-owned company Pemex's (Petroleos Mexicanos) oil and gas industry monopoly in Mexico, opening up the country to international oil and gas companies. And two of the Coordinators helping to make it happen, both of whom worked for Clinton, now work in the private sector and stand to gain financially from the energy reforms they helped create.

The appearance of the emails also offers a chance to tell the deeper story of the role the Clinton-led State Department and other powerful actors played in opening up Mexico for international business in the oil and gas sphere. That story begins with a trio.

Emails: Enbridge Attorney, Lobbyist Wrote Provisions into Wisconsin Budget for "Keystone XL Clone" Pipeline Leg

Emails reveal that an attorney and lobbyist for Canadian pipeline company giant Enbridge helped draft the controversial provision placed into the 2015 Wisconsin Budget set to fast-track expansion of the company's Line 61 pipeline. 

The emails, published by the Wisconsin Legislative Reference Bureau and first covered by Wisconsin Public Radio, emerge just months after DeSmog revealed emails showing Enbridge's attorney for its border-crossing Alberta Clipper expansion project proposal, which connects to Line 61 in Superior, Wisconsin, doing much the same to curry favor with the U.S. Department of State to fast-track permitting for that project.  

Together, Alberta Clipper (also called Line 67) and Line 61 are two parts of the four that make up the broader “Keystone XL Clone” pipeline system. That system carries tar sands bitumen extracted in Alberta down to Gulf coast refineries and the global export market.

Hillary Clinton State Department Emails Contain Redacted Job Description for Top Energy Diplomat

The U.S. State Department released a batch of 3,000 searchable documents formerly stored on the private hard drive and in a private email account of Democratic Party presidential candidate and former U.S. Secretary of State Hillary Clinton. Among them: a fully redacted job description for State Department International Energy Coordinator/Diplomat-At-Large.

David Goldwyn — now a fellow at the Atlantic Council, fellow at the Brookings Institution and head of Goldwyn Global Strategies — would eventually come to assume that role as head of the State Department's Bureau of Energy Resources, a Bureau that premiered under the watch of then-Secretary Clinton.

Enbridge Gets Another Federal Tar Sands Crude Pipeline Permit As Senate Debates Keystone XL

On January 16, the U.S. Army Corps of Engineers gave Enbridge a controversial Nationwide Permit 12 green-light for its proposed Line 78 pipeline, set to bring heavy tar sands diluted bitumen (“dilbit”) from Pontiac, Illinois to its Griffith, Indiana holding terminal.

The permit for the pipeline with the capacity to carry 800,000 barrels-per-day of tar sands dilbit came ten days after the introduction of S.1 — the Keystone XL Pipeline Act — currently up for debate on the U.S. Senate floor, which calls for the permitting of the northern leg of TransCanada's Keystone XL

Enbridge Line 78 Army Corps of Engineers Permit

Griffith is located just south of Whiting, Indiana, home of a massive refinery owned by BP. In November 2013, BP opened its Whiting Modernization Project, which retooled to refine up to 85-percent of its capacity as heavy dilbit from the tar sands, up from its initial 20-percent capacity.

Heather Zichal, Former Top Obama Energy Aide, Named Fellow at Industry-Funded Atlantic Council

Heather Zichal, former top climate and energy aide to President Barack Obama his top aide in crafting his 2008 presidential campaign energy platform, has joined the industry-funded Atlantic Council as a fellow at its Global Energy Center.

New Obama State Dept Top Energy Diplomat Amos Hochstein A Former Marathon Oil Lobbyist

The U.S. State Department recently announced that Amos Hochstein, currently the special envoy and coordinator for international energy affairs, will take over as the State Department's top international energy diplomat.

Hochstein will likely serve as a key point man for the U.S. in its negotiations to cut a climate change deal as part of the United Nations Framework Convention on Climate Change (UNFCCC), both at the ongoing COP20 summit in Lima, Peru and next year's summit in Paris, France. Some conclude the Lima and Paris negotiations are a “last chance” to do something meaningful on climate change.

But before getting a job at the State Department, where Hochstein has worked since 2011, he worked as a lobbyist for the firm Cassidy & Associates. Cassidy's current lobbying client portfolio consists of several fossil fuel industry players, including Noble Energy, Powder River Energy and Transwest Express. 

Back when Hochstein worked for Cassidy, one of his clients was Marathon Oil, which he lobbied for in quarter two and quarter three of 2008, according to lobbying disclosure forms reviewed by DeSmogBlog.

Hochstein earned his firm $20,000 each quarter lobbying the U.S. House of Representatives and the U.S. Senate on behalf of Marathon. 


Image Credit: Office of the Clerk, U.S. House of Representatives

Introducing "Natural Gas Exports: Washington's Revolving Door Fuels Climate Threat"

DeSmogBlog's Steve Horn and Republic Report's Lee Fang have co-written an in-depth report on the influence the government-industry revolving door has had on Big Oil's ability to obtain four liquefied natural gas (LNG) export permits since 2012 from the Obama Administration.

Titled “Natural Gas Exports: Washington's Revolving Door Fuels Climate Threat,” the report published here on DeSmogBlog and on Republic Report serves as the launching pad of an ongoing investigation. It will act as the prelude of an extensive series of articles by both websites uncovering the LNG exports influence peddling machine. 

The report not only exposes the lobbying apparatus that has successfully opened the door for LNG exports, but also the PR professionals paid to sell them to the U.S. public. It also exposes those who have gone through the “reverse revolving door,” moving from industry back to government and sometimes back again.

It reveals that many former Obama Administration officials now work as lobbyists or PR professionals on behalf of the LNG exports industry, as do many former Bush Administration officials. So too do those with ties to potential 2016 Democratic Party presidential nominee, Hillary Clinton. 

They include:

Tar Sands Trade: Kuwait Buys Stake in Alberta As It Opens Own Heavy Oil Spigot

Chevron made waves in the business world when it announced its October 6 sale of 30-percent of its holdings in the Alberta-based Duvernay Shale basin to Kuwait Foreign Petroleum Exploration Company (KUFPEC) for $1.5 billion.

It marked the first North American purchase for the Kuwaiti state-owned oil company and yields KUFPEC 330,000 acres of Duvernay shale gas. Company CEO and the country's Crown Prince, Sheikh Nawaf Al-Ahmad Al-Jaber Al-Sabah, called it an “anchor project” that could spawn Kuwait's expansion into North America at-large. 

Kuwait's investment in the Duvernay, at face-value buying into Canada's hydraulic fracturing (“fracking”) revolution, was actually also an all-in bet on Alberta's tar sands. As explained in an October 7 article in Platts, the Duvernay serves as a key feedstock for condensate, a petroleum product made from gas used to dilute tar sands, allowing the product to move through pipelines. 

And while Kuwait — the small Gulf state sandwiched between Iraq and Saudi Arabia — has made a wager on Alberta's shale and tar sands, Big Oil may also soon make a big bet on Kuwait's homegrown tar sands resources.

“Kuwait has invited Britain’s BP, France’s Total, Royal Dutch Shell, ExxonMobil and Chevron, to bid for a so-called enhanced technical service agreement for the northern Ratqa heavy oilfield,” explained an October 2 article in Reuters. “It is the first time KOC will develop such a big heavy oil reservoir and the plan is to produce 60,000 bpd from Ratqa, which lies close to the Iraqi border [in northern Kuwait]…and then ramp it up to 120,000 bpd by 2025.”

In the past, Kuwait has said it hopes to learn how to extract tar sands from Alberta's petroleum engineers.

Labor Day News Dump: FERC Hands Enbridge Permit for Tar Sands by Rail Facility

On the Friday before Labor Day — in the form of an age-old “Friday News Dump“ — the Federal Energy Regulatory Commission (FERC) handed a permit to Enbridge, the tar sands-carrying corporate pipeline giant, to open a tar sands-by-rail facility in Flanagan, Ill. by early-2016. 

With the capacity to accept 140,000 barrels of tar sands product per day, the company's rail facility serves as another step in the direction towards Enbridge's quiet creation of a “Keystone XL Clone.” That is, like TransCanada's Keystone Pipeline System sets out to do, sending Alberta's tar sands all the way down to the Gulf of Mexico's refinery row — and perhaps to the global export market.

Flanagan sits as the starting point of Enbridge's Flanagan South pipeline, which will take tar sands diluted bitumen (“dilbit”) from Flanagan to Cushing, Okla. beginning in October, according to a recent company earnings call. From there, Enbridge's Seaway Twin pipeline will bring dilbit to Port Arthur, Texas near the Gulf.

Enbridge made the prospect of a tar sands-by-rail terminal public for the first time during its quarter two investor call.

“In terms of the rail facility, one of the things we're looking at is – and the rail facility is really in relation to the situation in western Canada where there is growing crude oil volumes and not enough pipeline capacity to get it out of Alberta for a two or three year period,” Guy Jarvis, president of liquids pipelines for Enbridge, said on the call.

“So, one of the things we're looking at doing is constructing a rail unloading facility that would allow western Canadian crudes to go by rail to Flanagan, be offloaded, and then flow down the Flanagan South pipeline further into Seaway and to the Gulf.”

FERC has given Enbridge the permit it needs to make that happen.

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