Kevin Grandia's blog

International Implications of Trudeau's Kinder Morgan Pipeline Approval

justin-trudeau-kinder-morgan-pipeline

Canadian Prime Minister Trudeau's decision this week to approve a major expansion of the Kinder Morgan Trans Mountain pipeline has negative implications that go well beyond the borders of the Great White North.

Canada is currently the largest supplier of oil to the United States. We export more oil to the US than Saudi Arabia, Venezuela and Mexico combined. We are a secure, stable and reliable trading partner with the US for a product that can make or break their economy.

Canadian Taxpayers Fork Out $3.3 Billion Every Year to Super Profitable Oil Companies

Some of the largest, most profitable companies in Canada are collectively receiving an estimated $3.3 billion in subsidies every year from Canadian taxpayers, according to a new analysis.

The report, released today by the International Institute for Sustainable Development, a Canadian-based think tank, outlines how billions in federal and provincial tax breaks and corporate incentives benefit companies in the oil and gas sector like Imperial Oil, whose earnings in 2015 were CDN$1.1 billion.

The new analysis comes as Trudeau is in China for the G20 Summit. In 2009 G20 leaders committed to a complete phase out of all fossil fuel subsidies over the medium term and Justin Trudeau, while on the campaign trail, made an election promise to fulfill that commitment.  

Tweet: Fossil fuel subsidies work against Canada’s progress in putting a price on carbon http://bit.ly/2bMVAII @JustinTrudeau #cdnpoli #oilandgasFossil fuel subsidies work against Canada’s commendable progress in putting a price on carbon — they give money and tax breaks to the sources of carbon pollution that we’re trying to scale back,” Amin Asadollahi, North American Lead on Climate Change Mitigation at the International Institute for Sustainable Development, said.

Pure Play Peabody and Other U.S. Coal Kings Getting Pummelled in Stock Market

So far, 2016 has not been very kind to U.S. energy companies solely invested in coal production, and there is no indication that it's going to get better anytime soon. 

With cheap natural gas substituting coal for electricity production, a sustained downturn in coal demand in China, and tough new regulations on greenhouse gas emissions in the United States, pure play coal companies like Peabody Energy (NYSE: BTU) and Arch Coal (NYSE: ACI), are having a horrible run of it. 

St. Louis-based Arch Coal filed for bankruptcy protection on Monday, and that news saw trading immediately halted and proceedings undertaken to have Arch Coal delisted from the New York Stock Exchange. Over the last ten years, Arch Coal's share price dropped from a high of $104.45 per share, to trading at a mere 15.5 cents this week prior to the halt to trading.

A Mythbusting Guide to the Paris Climate Agreement

Climate Nexus has published a helpful mythbusting page correcting the misinformation that is already being spread about the Paris Climate Agreement. It is rewritten here with permission.

Myths and Facts about COP21, the Paris Climate Agreement

MYTH: “Paris is not legally binding; it won’t change anything. China and India will still emit so much CO2 as to make all US reductions pointless.”

FACT: Paris does have legally binding aspects, and other nations are already taking action.

Five Energy Stocks to Watch After Paris Climate Agreement

With a new global agreement on climate change gaveled into the history books in Paris tonight, many people including me believe we have just witnessed the end of the fossil fuel era.

So-called “pure play” fossil fuel companies that have not significantly diversified into other areas of energy production will be huddled in boardrooms this coming week trying to figure out what the Paris Agreement means to their bottom line. 

Your guess is as good as mine what will happen given how fickle global commodity markets can be, but here are five stocks to watch this coming week to get a good idea of how the energy market is reacting to the Paris Agreement:

Agreement in Paris Paves Road For The End of Fossil Fuels

paris climate conference cop21

History was made tonight in Paris as the leaders of 195 nations agreed to an ambitious, science-based pact to move the world away from the fossil fuels that are to blame for the rapid increase in global temperatures.

After two weeks of negotiations here in the airport hangars of Le Bourget, 195 parties have signed a global pact that will curb global warming pollution and rapidly escalate the growth of the clean energy solutions the world needs.

The consensus here is that the Paris deal on the table is a good one. Could it be better? Of course. But this deal is about as good as it is going to get from a consensus process involving 195 countries.

Pages

Subscribe to RSS - Kevin Grandia's blog