Friends of the Earth

Big Oil Can Survive Low Prices, The Climate Can’t

This is a guest post by Lukas Ross from Friends of the Earth.

Last week seemed like a bad time to be Big Oil.

As the world’s biggest energy companies announced their quarterly results, billions in profits still managed to disappoint shareholders. ExxonMobil and Chevron both missed their targets, Shell prepared for steep spending cuts, and BP took a well-deserved hosing on news of its latest Deepwater Horizon penalty.

The price of crude, half of what it was a year ago, definitely made for some lower numbers. But does bad news for the oil industry mean good news for the climate? Absolutely not.

California State of Emergency: Up To 105,000 Gallons of Oil Spill in Santa Barbara from Plains All American Pipeline

Up to 105,000 gallons of oil obtained via offshore drilling have spilled from a pipeline owned by Plains All American at Refugio State Beach in Santa Barbara County in California. At least 21,000 gallons have poured into the Pacific Ocean and the spill's impacts stretch nine miles, according to the Associated Press.

Brother of Hillary Clinton's Top Campaign Aide Lobbied for Fracked Gas Export Terminal Co-Owned by Qatar

Anthony “Tony” Podesta began lobbying in late 2013 on behalf of a company co-owned by ExxonMobil and Qatar Petroleum aiming to export liquefied natural gas (LNG) to the global market. Tony is the brother of John Podesta, former top climate change adviser to President Barack Obama and current top campaign aide for Hillary Clinton's 2016 bid for president

In October 2012, Podesta Group began lobbying on behalf of the proposed ExxonMobil-Qatar Petroleum Golden Pass LNG facility in Sabine Pass, Texas, according to lobbying disclosure forms. The forms indicate that Tony Podesta himself, not just his staff, lobbied on behalf of the terminal beginning in quarter four of 2013.

'The Drop in Oil Price Means We Need More Action on Climate Change Not Less'

Simon Bullock, senior campaigner at Friends of the Earth, asks: How should governments react to the drop in oil price?

This month, a powerful article in Nature highlighted yet again that most of the world’s oil, coal and gas needs to stay in the ground, if we want to prevent dangerous climate change. This is the “unburnable carbon” analysis that President Obama and Bank of England Governor Mark Carney have both made mainstream in recent months.

Related, over the last 6 months the world oil price has crashed, catching almost all economists and analysts by surprise. As well as profound economic effects, this crash affects “unburnable carbon” in two broad and opposite ways.

Obama Vows To Fight For Climate Policies In State Of The Union But What He Didn’t Mention Was Just As Telling

President Barack Obama could not have signaled more clearly in his 2015 State of the Union address that he intends to fight for his legacy on climate change in the face of a hostile, anti-science GOP-led House and Senate.

But it was what the President didn’t mention that could negate his climate legacy: free trade deals like the Trans Pacific Partnership that undermine local efforts to lower emissions, projects like Keystone XL that lock us into decades of continued dirty energy use, and the exporting of American-made coal, crude oil and natural gas to overseas markets.

Which is not to say that every policy position Obama laid out regarding energy and the environment entirely matched his lofty rhetoric about climate change.

Duty to Maximise Oil and Gas a ‘Dangerous Addition’ to the Infrastructure Bill

The UK’s climate change ambition will be undermined if the duty to maximise oil and gas extraction is included in the Infrastructure Bill, argue environmental NGO, Friends of the Earth and non-profit environmental law organisation, ClientEarth.

Clause 36 will introduce a new legal obligation on current and future governments regarding “maximising economic recovery of UK petroleum”. This puts the bill in direct conflict with Britain’s target to reduce emissions by 80% by 2050.

Clause 36 is not consistent with the spirit of the Climate Change Act and the UK in the context of global action on meeting climate change targets and should be deleted,” Friends of the Earth said in evidence to the Public Committee for the Infrastructure Bill.

BLM Hasn't Performed An Environmental Review of Coal Leasing Program Since 1979

It has been 35 years since the Bureau of Land Management (BLM) last performed an environmental review of its coal leasing program.

Two environmental groups are suing the BLM to force a review of the program.

Given advances in scientific knowledge of the risks posed by mining and burning coal to human health and Earth’s climate made since 1979, the groups argue that the review will “compel the Bureau of Land Management to deliver on its legal obligation to promote environmentally responsible management of public lands on behalf of the citizens of the United States.”

Friends of the Earth and the Western Organization of Resource Councils filed the lawsuit last week in the U.S. District Court for the District of Columbia, naming Secretary of the Interior Sally Jewell and BLM Director Neil Kornze as lead defendants, along with the Department of the Interior and the BLM.

Shell Knew Of Pipeline Problems Years Before 2008 Oil Spill In Nigeria

Oil giant Shell was warned by its own staff that the Trans Niger Pipeline had a “risk and likelihood of rupture” years before two spills in 2008 spewed as much as 500,000 barrels of oil in the town of Bodo in Southern Nigeria.

The BBC reported these revelations after viewing internal company documents submitted to a court in London, where some 15,000 Nigerians are suing Shell over a separate spill from the same pipeline.

The documents uncovered in the London court may lead to a much bigger penalty against the company for the 2008 spills. A court in the Hague found Shell only partly responsible for those spills after four farmers sued the company in 2012. Shell's lawyers argued that the company had taken the necessary precautions, including installing leak detection systems, prior to the rupturing of the pipeline, and blamed acts of sabotage and attempted thefts for the spills.

But internal emails, letters, and reports show not only that no leak detection system was ever installed, according to the BBC, but also that Shell employees were warning management of the pipeline's decrepit state and the risk it posed to the surrounding communities. One study conducted by Shell's Nigeria business and a consulting arm as far back as 2000 had concluded that the pipeline's life expectancy was “more or less non-existent or short, while some sections contain major risk and hazard.”

Keystone XL Review Extended, Delaying Final Decision Until After 2014 Elections

Reuters and Politico broke a major story today that TransCanada's northern leg of the Keystone XL tar sands pipeline will not be decided on until after the 2014 mid-term elections.

“The U.S. State Department will…extend the government comment period on the Keystone XL pipeline, likely postponing a final decision on the controversial project until after the November 4 midterm elections,” Reuters explained.

Secretary of State John Kerry and President Barack Obama have final say over whether the pipeline will be built because it crosses the U.S.-Canada border.

Reporters learned of the decision after a call between high-level congressional staff and State Department officials. 

“The justification is the need to wait on continued litigation over a Nebraska court decision earlier this year, which threw part of the project’s route in doubt, two sources said today after a call between the State Department and congressional staff,” reported Politico.

In the end, the decision came down to politics, according to Politico, though there are no shortage of climate change and ecological concerns for the prospective pipeline.

“A delay past November would spare Obama a politically difficult decision on whether to approve the pipeline, angering his green base and environmentally minded campaign donors — or reject it, endangering pro-pipeline Democrats,” they reported.

Friends of the Earth Sues State Department on Keystone XL FOIA Delay, DeSmog Requests White House Financial Disclosure Forms

Friends of the Earth-U.S. (FOE) has filed a lawsuit against the U.S. State Department for failing to expedite its April 2013 Freedom of Information Act (FOIA) request seeking communications between TransCanada Keystone XL tar sands export pipeline's influence peddlers and the agency tasked to make the final decision on KXL's northern half.  

FOE's request seeks records of communications between State - which FOE has yet to hear back from since the April expedition request denial - and a cadre of powerful lobbyists.

The most well-connected of the group is Anita Dunn, a principal at SDKnickberbocker, a senior advisor to Obama's 2012 reelection campaign and former communications director for the Democratic Senatorial Campaign Committee under then-Senator Kerry. Dunn - who had over 100 private meetings with the Obama Admininistration between 2009 and 2012 according to a New York Times investigation - now does public relations on behalf of TransCanada at SDKnickberbocker.

Dunn's husband Robert “Bob” Bauer - President Obama's personal attorney, former White House Counsel for Obama, Counsel for the Democratic National Committee and election law attorney for Obama's 2012 reelection campaign - works at a law firm that does legal work on behalf of another TransCanada-owned pipeline, Alaska's South Central LNG.

DeSmogBlog submitted a FOIA request to the White House for the financial disclosure forms of Dunn and Bauer on July 5.


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