Tue, 2014-09-23 23:08Mike G
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Investors Waking Up To Risks Of Stranded Assets, Realities Of Shale Bubble

The day after some 400,000 people marched in the streets of New York to call for climate justice, the world woke to some more historic news: The Rockefeller family, heirs to the Standard Oil fortune, announced that they were directing their $860 million charitable fund to divest from fossil fuels.

The Rockefellers cited their moral obligation to leave a better planet for their children as motivation, but it was also a business decision: “We see this as having both a moral and economic dimension,” Steven Rockefeller says.

Investors are beginning to realize that it’s not just coal in decline. All fossil fuels, including oil and natural gas, are living on borrowed time.

According to Carbon Tracker, we can only burn one-fifth of proven fossil fuel reserves if we are to avert the most catastrophic global warming, and if capital expenditures continue at current rates, some $6.74 trillion will be wasted over the next decade developing reserves that are likely to become unburnable.

Translation: The clean energy revolution is coming, and the forward-looking money is backing renewables, not fossil fuels.

Tue, 2014-09-23 14:00Mike G
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California Farmers File Suit Alleging Oil Companies' Faulty Wastewater Injection Caused Crop Loss

A farming company in Kern County, California, has sued four oil producers over claims that their faulty wastewater injection methods led to the contamination of groundwater it uses for irrigation.

Palla Farms LLC, a ninety-two-year-old family farm operation, says it had to tear out hundreds of cherry trees due to high levels of salt and boron in the groundwater it has used to irrigate its crops for the past 25 years. The company claims its almond orchard has also experienced production declines.

Palla Farms' suit alleges that the four oil companies—Crimson Resource Management Corp., Dole Enterprises Inc., E&B Natural Resources Management Corp. and San Joaquin Facilities Management Inc.—violated state environmental regulations when disposing of produced water, drilling mud, and flowback water from fracking, which led to the contamination of the groundwater.

The Bakersfield Californian has the details on the allegations:

Tue, 2014-09-23 08:26Justin Mikulka
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Government Accountability Office Report of Oil-By-Rail Safety Fails to Address Most Important Safety Issue

This week’s release of the government report titled Department of Transportation Is Taking Actions To Address Rail Safety, But Additional Actions Are Needed To Address Pipeline Safety — a year long review of the risks associated with the large increases in transporting domestically produced oil and gas in the United States — identifies several well known risks with moving oil by rail but concludes that the new proposed regulations address these issues.

As previously reported on DeSmogBlog, the new proposed rules actually do little to improve safety and also phase in any changes over many years meaning that the oil trains running right now are not meaningfully safer than the five that have crashed and exploded since July 2013. And won’t be for years to come.

The report has received a scathing review from ForestEthics Matt Krogh. ForestEthics has been one of the leading voices in the effort to get improved safety regulations for the oil trains and are the creators of the Oil Train Blast Zone website.

The Department of Transportation hasn’t kept pace with the expansion of oil train traffic.” Krogh said, “The agency still hasn’t banned tanker cars that were declared unfit for service more than two decades ago. The new proposed rules do little to improve safety.”

Tue, 2014-09-23 07:00Chris Rose
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Australia Sea Level Rise Will Rack Up $200 Billion Bill by 2100

Major coastal cities in Australia, that vast southern continent of perpetual surf, sun and endless barbeques, are facing a climate change bill of more than $203 billion in commercial, industrial and residential assets by the end of this century.

A new report by the Climate Council of Australia, Counting the Costs: Climate Change and Coastal Flooding, has found that coastal flooding and erosion caused by global warming will become a significantly larger problem with a projected sea level rise of 1.1 metres by 2100.

The report found that Australia is highly vulnerable to increasing coastal flooding because its cities, towns and critical infrastructure are mainly located on the coast.

Australia’s infrastructure has been built for the climate of the 20th century, the report said, and is unprepared for rising sea level.

Coastal flooding is a sleeping giant,” the report said, “If the threat of sea level rise is ignored, the projected increases in economic damage caused by coastal flooding are massive.”

Tue, 2014-09-23 05:00Steve Horn
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Peabody Energy Booted From S&P 500, King Coal on the Defensive as Market Signals Industry Decline

King Coal and industry multinational Peabody Energy (BTU) have taken a beating in the markets lately, and it has some executives in the dirty energy industry freaking out

On September 19, Dow Jones removed Peabody Energy from its S&P 500 index, considered a list of the premier U.S. stocks for investors. The St. Louis Post-Dispatch cited the downward trajectory of the company's market capitalization as the rationale behind the ouster of Peabody from the S&P 500 index. Peabody will now join the JV leagues in the S&P MidCap 400.

Peabody's downfall symbolizes ongoing market trends within the coal industry overall.

“The total market value of publicly traded U.S. coal companies has rebounded slightly in recent months, but remains nearly 63% lower than a total of the same companies at a near-term coal market peak in April 2011,” explained SNL Energy in April. 

“A perfect storm of factors, including new federal regulations impacting coal-burning power plants, cheap competing fuels, railroad service issues and weak global markets has kept pressure on a number of coal operators since the industry's 2011 near-term peak.”

A new study published this week by the Carbon Tracker Initiative — best known for its work accounting for a “carbon budget” and unburnable carbon — raises further questions about the future of coal's global market hegemony. It's another blow to the coal industry as the United Nations convenes this week's Climate Summit in New York City to discuss climate disruption, in no small part driven by antiquated coal-fired power plants.

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