Tag Archives: Climate change

2020 elections, Benicia elections, Climate Change, Crude By Rail, Economic diversification, Environmental crisis, Oil Industry, Oil trains, Valero Benicia Refinery

Game Over for the Oil Industry, What Will Benicia Do?

Emergency flaring at Valero Benicia Refinery, May 5, 2017. (Chris Riley/Times-Herald)
By Grant Cooke, Benicia resident and President, AgTech Blends, September 14, 2020
Grant Cooke

During the 2016 resistance to Valero’s horrendous attempt to bring crude oil by rail into Benicia, I urged the city council to rethink its dependence on Valero for the bulk of its tax support. I suggested then that we move away from being a “company town” to one that embraced a more knowledge-based economic model with a diversified tax base.

I pointed out that as the world’s industrial nations shift from carbon-driven economies that threatened severe climate disruption and environmental catastrophe to a clean energy driven model, those mega-trend shifts would have significant impact on our little town.

I noted that the era of the Bay Area’s refineries was drawing to a close and that most—including Valero—would be closed before mid-century.

It was not a popular observation, even though at the time there was a rumor that all five Bay Area refineries were for sale, but title couldn’t change hands because the environmental cleanup was prohibitive. Besides, the oil industry’s business model of ever-increasing demand was suspect.

Well, then the nation’s leadership banked a hard right, the Environmental Protection Agency was gutted, the heavy oil interests broke free, and the carbon boys rode tall as the U.S. became a net exporter and one of the world’s major oil producers.

2019 saw the highpoint. Production was up 11 percent to new historic U.S. highs of over 12 million barrels per day. In 2018 Brent Crude’s price was over $70 per barrel. It slipped to $65 per barrel in 2019, but production was at a fever pitch.

And then it all collapsed. The Saudis and the Russians did a circular firing squad, OPEC stumbled, supply burgeoned, the novel coronavirus hit, and the U.S. economy tanked. At this spring’s lows, Brent Crude dropped to about $34 per barrel.

Now that the Saudis and Russians have given up their battle, Brent has budged a bit to $44 per barrel.

With the economic collapse so too has the demand for gasoline. Storage is full, demand is way down, supply is way up.

Valero as a refiner makes money when oil prices slide. As long as supply increases and oil prices drop but demand for gas is constant, money is made, profits are up, bonuses and dividends are paid.

Back in June 2018, Valero was in its glory, and the stock price was a couple of cents under $127 per share. The fall was ugly. By April 2020, it broke down to around $31. It has since rebounded a bit—what the financial folks colorfully describe as a Dead Cat bounce—to the mid-$50s. Most likely, it will turn down again and the dividend will be reduced.

What’s equally as devastating to Valero and the oil industry, is that Covid-19 and the subsequent economic collapse has pushed clean energy forward into the nation’s recovery plans. A huge national infrastructure plan is on the horizon, much of it encompassing renewable energy.

This is the TESLA tsunami with its market cap of $144 billion, and the growing consumer recognition that e-vehicles are better, faster, and cleaner than gas-powered cars. E-vehicles and hybrids are the growing segment of the auto market.

About 13 percent of California’s vehicles are e-vehicles or hybrids, and the percentage is growing with the state’s goal of 5 million zero emission vehicles on the road by 2030.

Pickups and commercial vehicles like trucks and forklifts are turning to electric motors for their increased power and torque. Even in the mining industry, electric, autonomous vehicles are being phased in to reduce costs and improve efficiency.

Eventually, there won’t be any more diesel trucks idling in Oakland’s port, and the incidence of asthma will drop significantly in nearby neighborhoods.

The oil industry needs to look no further for discouraging news than the recent announcement by General Motors, the largest U.S. automaker, that it is converting most of its fleet to electric power. Led by Cadillac, GM intends to have 20 electric nameplates by 2023, including an electric Hummer and a rumored Corvette that will hit 200 mph to compete with the 2021 Ford Mustang Mach-E.

Further, Southern California’s Hyperion just introduced the XP-1, a mind-blowing mega car powered by hydrogen with a top speed over 220 mph and a range of 1,000 miles on a tank of hydrogen. Europe already has hydrogen-powered buses, and hydrogen fuel cell technology will only hasten the development of carbon-free vehicles.

Finally, and what really should worry Valero and Benicia, is that Phillips 66 just announced that they are converting the Rodeo facility from refining crude oil to a renewable fuels plant using cooking oil and food wastes to produce motor fuels. The conversion should be finished in 2024.

The oil industry is not known for its vision and if Phillips sees that the carbon era is over, most likely it is.

As the world transitions away from carbon energy, the remaining crude-based Bay Area refineries will suffer, and some will lock their gates. The money isn’t there for the environmental cleanup, so the cities—Benicia, Martinez, Pinole, Richmond—will be left without tax revenue and worse, holding the bag for the hazardous waste.

The November election is critical for our nation, and equally important for our town. Some city council candidates are being funded by the oil industry, in a last-ditch effort to cement political power and influence, preserve profits, and probably re-introduce a Crude-by-Rail agenda.

The oil industry and union Political Action Committee, or PAC, has in fact set aside $250,000 this year to steer the 2020 election to their chosen candidates. It would be tragic for Benicia’s if they succeed.

The future for Benicia is not in clinging to the century-long carbon industry that is in decline. Benicia’s future is, or at least should be, in the knowledge-based economy. Science, technology and innovation are the drivers that create wealth and municipal security in the Bay Area. That is where the future is, not in the gas pumps.

Benicia is facing a severe challenge. The carbon-based tax structure that supported its amiable lifestyle with a full range of municipal services is ending.

Allowing a last gasp effort by the oil industry to control the city’s future is a terrible idea. That game is, and should be, over.

I’m voting for and supporting Steve Young for mayor. (And no, Steve has not approved this message.)

Grant Cooke is a Benicia resident and co-author of two books:
By Woodrow Clark II and Grant Cooke, published by Elsevier and available at Amazon:
Grant Cooke
President, AgTech Blends
https://agtechblends.com
Climate Change, Coronavirus, Covid 19, Mental Health, Public protest, Racial justice, Smoke, Social Distancing, Wildfire

Year of calamities taking toll on mental health

Mental health professional: “In the past two weeks, my practice has exploded.”

San Francisco Chronicle, by Steve Rubenstein and Nora Mishanec, Sep. 11, 2020
Michael Waddell, a professional dog walker, out in Alamo Square Friday. He said the loss of dog-walking business has caused him more stress than the recent meteorological calamities.
Michael Waddell, a professional dog walker, out in Alamo Square Friday. He said the loss of dog-walking business has caused him more stress than the recent meteorological calamities. Photo: Nora Mishanec / The Chronicle

In a year of wondering what could possibly come next, the next things just keep on coming.

After eight months, they’re starting to add up, say mental health experts. And there’s lots of 2020 left, plenty of time for more next things.

“I’ve been hearing the word ‘apocalyptic’ a lot,” said San Francisco psychiatrist Scott Lauze. “I’m doing a tremendous amount of hand-holding these days. You can’t even rely on the color of the sky anymore.”

Lauze, in private practice for three decades, said he had never seen the call for his services take off like right now.

“In the past two months, there was a significant uptick in demand,” he said. “In the past two weeks, my practice has exploded.”

Pandemic, social unrest, heat waves. Wildfires. Smoke. Mass evacuations. Therapists call them stressors, and there has been no shortage of things to get stressed over.

And this just in: ash raining from the heavens, and darkness at noon.

“I couldn’t fall asleep,” said San Francisco nurse Valieree MacGlaun, who works the night shift and was walking home Friday on Divisadero Street from the VA hospital in her scrubs.

She said she feels overwhelmed, though her job is to help other people overcome feeling overwhelmed.

“This is my calling,” she said. “But you have to take care of yourself.”

Connie and Michael VonDohlen flew from their home in Tennessee to San Francisco on Wednesday to attend their daughter’s wedding, just in time for the dark orange daytime skies that made some locals say it felt like living on Mars. Streets were deserted. The VonDohlens, who don’t seem to shock easily, said they were shocked.

“We thought we had gone into the Twilight Zone,” Michael VonDohlen said. “I was expecting zombies to jump out from every doorway.”

“The fires, added to the pandemic, and the inability to escape — all that adds to the potential for hopelessness,” said emergency room psychiatrist Yener Balan, head of behavioral health services at Kaiser Permanente Northern California.

Calamity and malaise are part of the human condition, he said, and pondering the world wars endured by prior generations can put a virus or a wildfire in perspective.

Coronavirus live updates: SF urges people to stay inside due…
“As a species, we are resilient,” he said. “Many generations have seen this level of calamity.”

Taking care of oneself, living in the moment, checking in with family and friends, getting enough exercise and sleep — those are the keys to coping, Balan said. And turning off the TV and the computer when enough is enough — that helps, too. It also reduces exposure to the added stresses of a national election and its apocalyptic nuances.

“Just when you think you’re beginning to deal with one disaster, another one comes along,” said David Spiegel, a psychiatry professor at Stanford University. “Patients who have been stable are experiencing an exacerbation of depression and anxiety.”

The year 2020, he said, is turning out to be a “remarkable test of everyone’s ability to cope.”

Trying to cope in Alamo Square, while holding three dogs on a leash, was professional dog walker Michael Waddell. He used to wear a plain mask, for the virus. Now he wears a mask with an air filter, for the virus and the smoke. Different disaster, different mask.

Two in 5 U.S. adults say they are “struggling with mental health or substance abuse” since the pandemic hit, according to a report from the Centers for Disease Control and Prevention. And the “prevalence of symptoms of anxiety disorder” were triple those of last year, the report added.

Even if psychiatrists are doing more business these days, Waddell said, dog walkers aren’t. Business has largely fallen off as people staying home can walk their own dogs.

Waddell’s usual complement of dogs is six. Losing half his income, Waddell said, “has added more to my immediate stress than the smoke or the wildfires.”

Dogs, who have no problem living in the moment, help. So do hobbies, said Melissa Smith, who was waiting for 5-McAllister bus. She said her therapy was to try “old lady hobbies.”

“This is the perfect excuse to take up knitting,” she said. “It’s a good outlet for the frustration. You need something to channel your energy.”

Smith was on her way home, where the knitting was waiting.

“What better place to practice peace than the middle of a storm?” she said. “I just think, after this, we are all going to be so resilient.”

Carbon dioxide, Clean Air Act, Clean Power Plan, Climate Change, Climate change denial, COP21 Climate Conference Paris, Federal Regulation (U.S.), Fossil fuels, Greenhouse gas emissions, President Barack Obama, Public utilities

Obama vetoes GOP push to kill climate rules

Repost from The Hill

Obama vetoes GOP push to kill climate rules

By Timothy Cama – 12/19/15 08:35 AM EST 
Getty Images

President Obama has vetoed a pair of measures by congressional Republicans that would have overturned the main pillars of his landmark climate change rules for power plants.

The decision was widely expected, and Obama and his staff had repeatedly threatened the action as a way to protect a top priority and major part of his legacy.

The White House announced early Saturday morning, as Obama was flying to Hawaii for Christmas vacation, that he is formally not taking action on the congressional measures, which counts as a “pocket veto” under the law. “Climate change poses a profound threat to our future and future generations,” the president said in a statement about Republicans’ attempt to kill the carbon dioxide limits for existing power plants.

“The Clean Power Plan is a tremendously important step in the fight against global climate change,” Obama wrote, adding that “because the resolution would overturn the Clean Power Plan, which is critical to protecting against climate change and ensuring the health and well-being of our nation, I cannot support it.”

That rule from the Environmental Protection Agency mandates a 32 percent cut in the power sector’s carbon output by 2030.

He had a similar argument in support of his regulation setting carbon limits for newly-built fossil fuel power plants, saying the legislation against it “would delay our transition to cleaner electricity generating technologies by enabling continued build-out of outdated, high-polluting infrastructure.”

Congress passed the resolutions in November and December under the Congressional Review Act, a little-used law that gives lawmakers a streamlined way to quickly challenge regulations from the executive branch.

Obama had made clear his intent to veto the measures early on, so the passage by both GOP-led chambers of Congress was only symbolic.

The votes came before and during the United Nations’ major climate change conference in Paris, as an attempt to undermine Obama’s negotiating position toward an international climate pact.

Sen. Jim Inhofe (R-Okla.), chairman of the Environment and Public Works Committee and a vocal climate change doubter, said it’s important to send a message about congressional disapproval, even with Obama’s veto.

“While I fully expect these CRA resolutions to be vetoed, without the backing of the American people and the Congress, there will be no possibility of legislative resurrection once the courts render the final judgments on the president’s carbon mandates,” he said on the Senate floor shortly before the Senate’s action on the resolutions.

Twenty-seven states and various energy and business interests are suing the Obama administration to stop the existing plant rule, saying it violates the Clean Air Act and states’ constitutional rights.

They are seeking an immediate halt to the rule while it is litigated, something the Court of Appeals for the District of Columbia Circuit could decide on later this month.

All Republican candidates for the 2016 presidential election want to overturn the rules.

In addition to the veto, Obama is formally sending the resolutions back to the Senate to make clear his intent to disapprove of them.

Obama has now vetoed seven pieces of legislation, including five this year, the first year of his presidency with the GOP controlling both chambers of Congress.

Air Quality, Carbon emissions, Climate Change, Federal Regulation (U.S.), Land, Oil exports, Public Health, Solar energy, Tax credits, Water quality, Wildlife, Wind energy

Federal spending deal falls short on environment

Repost from the San Francisco Chronicle

Spending deal falls short on environment

By Annie Notthoff, December 17, 2015  |  Annie Notthoff is director of the Natural Resources Defense Council’s California advocacy program.
Senate Majority Leader Mitch McConnell Photo: J. Scott Applewhite, Associated Press
Senate Majority Leader Mitch McConnell Photo: J. Scott Applewhite, Associated Press

The spending and tax policy agreement Congress and the White House have reached to keep the government funded and running includes important wins for health and the environment.

But there’s good news to report, only because of the Herculean efforts of House Minority Leader Nancy Pelosi, D-San Francisco, Senate Minority Leader Harry Reid, D-Nev., and the White House, who worked tirelessly to block nearly all of the dozens and dozens of proposals Republican leaders were pushing.

Those proposals would have blocked action on climate, clean air, clean water, land preservation and wildlife protection and stripped key programs of needed resources. The Republican leaders’ proposals were the clearest expression yet of their “just say no” approach to environmental policy. They literally have no plan, except to block every movement forward on problems that threaten our health and our planet.

The worst aspect of the budget agreement is another clear indication of Republican leaders’ misplaced priorities — they exacted an end to the decades-long ban on sending U.S. crude oil overseas in this bill, in return for giving up on key elements of their antienvironment agenda.

Senate Majority Leader Mitch McConnell, R-Ky., made that give-away to the oil industry one of his top priorities. It will mean increased oil drilling in the U.S., with all the attendant dangers, with the benefits going to oil companies and overseas purchasers. That won’t help the American public, or the climate. It’s simply an undeserved gift to Big Oil.

In good news, the agreement extends tax credits for wind and solar energy for five years, which will give those industries long-sought certainty about their financing.

Wind and solar will continue to grow by leaps and bounds, helping domestic industry, reducing carbon pollution and making the U.S. less vulnerable to the ups and downs of fossil fuel prices.

Democratic leaders deserve all our thanks for what they were able to keep out of the budget deal. Gone are the vast majority of obstacles Republican leaders tried to throw in the way of environmental protection. Recall for a moment the 100 or more antienvironmental provisions Republican leaders tried to attach to these spending bills. Those included efforts to:

• Block the Environmental Protection Agency’s Clean Power Plan, which sets the first-ever limits on carbon pollution from power plants — our best available tool to combat dangerous climate change.

• Roll back the Obama Administration’s Clean Water Rule, which would restore protections for the potential drinking water supplies of 1 in 3 Americans.

• Repeal the EPA’s newly issued health standards to protect us from smog.

• Bar the Interior Department from protecting our streams from the pollution generated by mountaintop removal during coal mining.

• Strip Endangered Species Act protections for gray wolves, the greater sage grouse, elephants, the Sonoran Desert tortoise, and other threatened animals.

• Force approval of the proposed Keystone XL tar sands oil pipeline, which President Obama already has rejected.

There’s more work ahead to protect the environment, starting with eliminating the threat of oil drilling in the Arctic and off the Atlantic Coast.

But despite the efforts of Republican congressional leaders to hold the public hostage and bring us to the brink of another government shutdown, a budget deal has emerged that protects environmental progress.