BankTrack

Energy Transfer, Banks Lost Billions by Ignoring Early Dakota Access Pipeline Concerns

Read time: 8 mins
Anti Dakota Access protesters in Philadelphia

Roughly four years ago, Energy Transfer Partners (ETP) filed a federal application to build a 1,172 mile oil pipeline from North Dakota’s Bakken shale across the U.S. to Illinois at a projected cost of $3.8 billion.

Before that application was filed, on September 30, 2014, the Standing Rock Sioux Tribe met with ETP to express concerns about the Dakota Access pipeline (DAPL) and fears of water contamination. Though the company, now known as Energy Transfer, had re-routed a river crossing to protect the state capital of Bismarck against oil spills, it apparently turned a deaf ear to the Tribe’s objections.

Following that approach proved to be a very costly decision, a new analysis concludes, with ETP, banks, and investors taking billions in losses as a result.

Morgan Stanley Targeted Over Coal Financing

Read time: 3 mins

Earlier this year, Bank of America and Credit Agricole both announced they were moving away from financing coal, citing a number of factors, among them the threat of future regulation due to coal’s impact on the planet and human health and pressure from environmental activists.

Now the Rainforest Action Network is targeting Morgan Stanley with calls to meet or beat its Wall Street colleagues’ commitments by adopting policies to end its financing for companies involved in coal mining and coal-fired power.

The Coal Industry Is a Job Killer

Read time: 4 mins

The coal industry performs horribly on jobs. In fact, you could say that the modern coal industry is about as anti-jobs as it gets.

Take Virginia, for instance. Earlier this week, Governor Terry McAuliffe vetoed legislation meant to extend a tax credit for coal producers because of how little it did to spur job creation. In fact, despite coal companies claiming more than $573 million in tax credits between 1988 and 2014, coal-mining jobs in the state fell by more than two-thirds in that time period.

World’s Major Banks Poured Over $80 Billion into Coal Last Year Alone

Read time: 4 mins

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.

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