Why You Should Be Skeptical Of Big Oil Companies Asking For A Price On Carbon
By Emily Atkin, June 3, 2015 at 4:19 pm
Six large European oil and gas companies are asking governments across the world to charge them for the carbon dioxide they emit.
In a letter released Monday, Shell, BP, Total, Statoil, Eni, and the BG Group told the chief of the United Nations Framework Convention on Climate Change that a price on carbon “should be a key element” of an international agreement to address global climate change. The letter came while U.N. negotiators met in Bonn, Germany to work towards that agreement.
For those who want to fight climate change, this is good news. But it’s not totally unprecedented. Other high-emitting companies, including Shell, have expressed support for a carbon price before. And big oil companies have been expecting some sort of carbon price for a long time — the biggest ones have already incorporated it into their business plans. Exxon Mobil, ConocoPhillips, Chevron, BP, Shell; they’re all financially prepared for a carbon price if and when it comes their way.
That more and more oil companies are now actively calling for a carbon price, though, is good for the climate fight. Total, BP, Statoil, and Royal Dutch Shell are all among the 90 companies causing the vast majority of global warming via their exorbitant carbon emissions. Now, they’re acknowledging they want to at least pay for some of those emissions, and that seems like a positive development.
At the same time, it’s not like any of those six companies are halting their plans to drill. They haven’t recognized the science that says two-thirds of all proven fossil fuel reserves will have to be left in the ground to avoid catastrophic warming. Shell is still planning to explore for oil in the Arctic; BP just recently expanded its operations in the Gulf of Mexico.
More importantly, though — at least in terms of getting a carbon price in the final U.N. climate deal — the European companies that signed the letter wield little power within the U.S. Congress compared to other big oil companies. This matters because the terms of that deal will almost certainly have to be approved by Congress if it is to include an enforceable price on carbon. Under U.S. law, any international agreement that binds or prohibits the United States from actions not otherwise mandated by law must be ratified by Congress.
BP, Statoil, and Total might be actively calling for a carbon tax, but the three biggest U.S. oil companies — ExxonMobil, Chevron, and ConocoPhillips — aren’t. (ExxonMobil says they would prefer a carbon tax to a cap-and-trade system, but they don’t outright support it). And those U.S. companies are spending much more to influence Congress than the letter-writing companies on campaign donations and lobbying.
Contributions include donations from company employees, PACs, and soft money contributions. CREDIT: Patrick Smith
To be fair, European companies have more restrictions on how much they can give than U.S.-based companies do. But not only are the biggest U.S. companies spending far more to influence U.S. politics, their money is going to politicians who are actively fighting efforts to price carbon in the United States.
During the 2014 election, for example, the biggest receiver of funds from ExxonMobil, Chevron, and ConocoPhillips was former Sen. Mary Landrieu (D-LA). Landrieu marketed herself, among other things, as the “key vote” that made sure a carbon pricing system wasn’t implemented by Congress in 2010. Other candidates supported by those three companies were John Boehner, Mitch McConnell, Mark Begich, John Cornyn — allhavesaidthey oppose a price on carbon.
In fact, the Republican party as a whole in the United States is opposed to policies that price carbon. Though it says nothing about a carbon tax, the last official Republican party platform touts opposition to “any and all cap-and-trade legislation.” Unsurprisingly, the vast majority of all oil company campaign contributions is going to Republicans.
Oil Lobby CREDIT: Patrick Smith
There are other reasons to be skeptical of any big oil company fighting for a price on carbon. For one, some companies have said they would support a carbon tax, but only if they can avoid other climate-related regulations. As David Roberts pointed out for Grist back in 2012, “the fossil fuel lobby would never give a carbon tax their OK unless EPA regulations on carbon (and possibly other pollution regs) were scrapped.” It’s also reasonable to assume that oil companies see profits increasing in the markets for low-carbon natural gas while the high-emitting coal industry tanks, and realize that coal would be hurt far worse by the policy.
In other words, it is great that some of the world’s biggest contributors to climate change want to be charged for the carbon they emit. But we still have a long way to go before big oil actually joins the fight.
Repost from CNN [Editor: One of the best reports I’ve seen. The video has spokespeople for environmental concerns and footage of protests. Unfortunately, CNN does not permit embedding – you will need to go to CNN and watch the commercial first. Grrr. – RS]
Santa Barbara oil spill: Authorities, environmentalists step up response
By Michael Martinez, Sara Sidner, and Faith Karimi, CNN, May 23, 2015
Santa Barbara, California (CNN) – Authorities have intensified their response to this week’s Santa Barbara oil spill by announcing remedies and additional investigations.
The California attorney general’s office is working with local prosecutors as well as state and federal agencies in investigating Tuesday’s spill that prompted a state-issued emergency in Santa Barbara County and the closing of two state beaches until June 4.
“California’s coastline is one of the state’s most precious natural treasures. This oil spill has scarred the scenic Santa Barbara coast, natural habitats and wildlife. My office is working closely with our state and federal partners on an investigation of this conduct to ensure we hold responsible parties accountable,” Attorney General Kamala D. Harris said.
The cause of the oil spill remains under investigation.
Oil company’s response
The oil firm, Plains All American Pipeline, has been actively participating in the cleanup and daily press conferences with federal and state officials.
“Our goal is zero (spills),” senior director Patrick Hodgins of Plains All American told reporters Friday. “Are we happy with this unfortunate event? Absolutely not.
“We’re going to be here until it is taken care of,” Hodgins added.
In a general statement Friday, the firm said it had “significantly increased” the size and spending of its safety program since 2008. The firm added that “releases from Plains pipelines have significantly decreased while throughput volume has increased since 2008.”
The firm had taken measures that “exceeded the federal regulatory requirement” for the Santa Barbara pipeline that eventually ruptured this week, and had inspected it two times in the past three years.
In fact, the pipeline was examined May 5, and investigators will be reviewing those results, officials said.
The coastal town of Goleta on Friday declared its own state of emergency, citing the spill as an “extreme peril to the safety of persons and property.”
Progress so far
As the cleanup entered its fourth day on Friday, vessels were “actually doing pretty well” recovering oil from the ocean, but “the harder part” will be cleaning the land — the shoreline, the beaches, the cliffs and the hillside near U.S. Highway 101 where the pipe ruptured, said U.S. Coast Guard Capt. Jennifer Williams.
“It could take months,” she said.
Officials provided a tally Friday of the cleanup and environmental damage:
• 10,000 gallons of oily water removed from the ocean;
• 91 cubic yards of oily solids and 800 cubic yards of oily soil removed from beaches;
• 9.5 square miles of ocean and 8.7 miles of coastline affected, from Arroyo Hondo beach to Refugio State Beach, near Goleta.
• Three brown pelicans were killed. Six more brown pelicans, two California sea lions and an elephant seal are being rehabilitated after oil coated them. A common dolphin was found dead without oil on its exterior, but it will be examined for signs of ingested oil.
On Friday, environmentalists declared the spill “a wake-up call” on continued oil development. They urged state and federal politicians to refuse additional oil projects, especially in Santa Barbara County, and called upon the nation to usher in a “post-oil era” by embracing renewable energy.
“When we have a huge solar spill around here, we just call it a nice day,” said Dave Davis, CEO and president of the Community Environmental Council.
The activists noted that a 1969 spill in Santa Barbara was so catastrophic it ignited the environmental movement and a host of federal and state laws to protect the natural world.
Putrid odor
The onshore pipeline behind this week’s Santa Barbara oil spill leaked more than 100,000 gallons of crude on coastal lands and into the ocean, the oil company said.
At its worst, the smell burns your nostrils and gives you a little nagging headache.
Stones at Refugio State Beach lay splattered with a jet black tar, like goo, which can only be crude oil.
An industrial-size trash bin of oily vegetation sits next to the beach. Bikinis and surfboards on once pristine sandy shores have been replaced with people in hazmat suits, digging in the dirt and picking up oil-laden sticks and plants.
Among the worst violators
The underground oil pipeline was carrying 1,300 barrels an hour, below its maximum capacity of 2,000 barrels an hour, said Rick McMichael of Plains All American Pipeline.
Plains All American is among the worst violators listed by the U.S. Pipeline and Hazardous Materials Administration.
It surpassed all but four of more than 1,700 operators in safety and maintenance infractions, the federal agency said.
Hodgins suggested the comparison wasn’t fair because “we’re also much larger than those companies that we were compared to.”
“Most of the companies that we’re compared to have half the amount of pipelines” that Plains All American has, Hodgins said Friday. “So therefore, with double the number of miles of pipelines, unfortunately incidents have occurred, (and) the larger and the more of those can be realized.”
Most of the spills were caused by pipe corrosion, the EPA said.
The oil company agreed to pay a $3.25 million civil penalty and spend $41 million to upgrade 10,420 miles (16,770 kilometers) of crude oil pipeline operated in the United States, the EPA said in 2010.
Lobsters killed, pelicans soaked in oil
Meanwhile, crews continued to clean beaches and coastal waters, and officials reported the leak killed an undisclosed number of lobsters, kelp bass and marine invertebrates. Six oil-soaked pelicans and one young sea lion were being rehabilitated.
As of Thursday night, vessels had skimmed 9,500 gallons of oily water from the ocean, McMichael said.
The cleanup could last months, officials said. For now, currents, tides and winds make the oil plume “a moving target” as it drifts offshore, said U.S. Coast Guard Capt. Jennifer Williams.
Houston-based Plains All American Pipeline estimated up to 105,000 gallons may have spilled from a broken pipe, based on the typical flow rate of oil and the elevation of the pipeline.
Since the pipeline is underground, it will take a few days to determine how much crude oil was spilled, said McMichael, who estimated 21,000 gallons of crude had gone into the Pacific Ocean, with the rest spilled on land.
Not the first time
A spill in January 1969 became what was, at the time, the nation’s worst offshore oil disaster. Though this week’s spill is smaller, it still prompted California’s governor to declare a state of emergency in Santa Barbara County.
The 1969 disaster was so catastrophic that it gave birth to an environmental movement, a host of regulations against the oil and gas industry, and a new commission to protect California’s coast, experts said.
Santa Barbara Harbor after what was then the worst oil spill in U.S. history, in February 1969.
In all, about 3 million gallons of oil spewed from a Union Oil drilling rig 5 miles off the coast of nearby Summerland, California. The pipe blowout cracked the seafloor, and the oil plume killed thousands of seabirds and “innumerable fish,” according to a 2002 paper by geographers at the University of California, Santa Barbara.
Subsequent U.S. oil spills were much larger, including the Exxon Valdez accident, which dumped 11 million gallons off Alaska’s shores in 1989, and the Deepwater Horizon spill, which put 210 million gallons into the Gulf of Mexico in 2010.
But the 1969 Santa Barbara spill energized a movement that led to new federal and state environmental laws and helped establish the first Earth Day the next year.
The threat
The environment remains a major concern around Refugio State Beach, which was desolate Thursday, as were its campgrounds, which are normally packed for Memorial Day weekend. The only sounds were the waves and the helicopter above, a buzzing reminder of the oily mess below.
CNN’s Sara Sidner reported from Santa Barbara, and Michael Martinez wrote and reported from Los Angeles and Faith Karimi from Atlanta. Jackie Castillo also contributed to this report.
BREAKING NEWS from multiple sources (thank you, Google)
[Editor: what with the rash of explosive news of late (Derailments in Alberta on the 14th, Ontario on the 15th, West Virginia on the 16th, and now this refinery explosion in Torrance), I can hardly keep up. Here are Mr. Google’s stories on Torrance. – RS]
Torrance Fire Department Crews Respond To Explosion At … KABC-TV-56 minutes ago Torrance School District officials instructed its 30 schools to shelter in place. Although air quality readings were withing normal range, residents were also …
Video: Flames after explosion reported at Torrance, Calif., ExxonMobil … Photo: Smoke, flames from an explosion at the Exxon Mobil refinery in Torrance, Calif.
One afternoon in late January, Howard Flysher, an avuncular 67-year-old with a neatly trimmed white short-boxed beard, walked the length of the towering …
Southern California authorities say an explosion has occurred at an Exxon Mobil refinery in the city of Torrance, triggering a very large smokestack flare to burn …
TORRANCE, Calif. (AP) — Southern California authorities say an explosion has occurred at an Exxon Mobil refinery in the city of Torrance, triggering a very …
Repost from Reuters [Editor: Watch industry lobbying efforts as the scramble for power ensues. For instance … note the posturing in this article by Lynn Helms, director of the North Dakota Department of Mineral Resources, who reportedly said “dealings with Quarterman have improved in recent months as oil train hysteria has subsided.” Nice to know that our concern for safety and clean air is so easily dismissed as hysteria. – RS]
Quarterman, regulator for U.S. oil trains, to step down: sources
By Patrick Rucker, WASHINGTON, Sep 24, 2014
PHMSA Administrator Cynthia Quarterman, left, during House testimony (Photo by Scott J. Ferrell/Congressional Quarterly)
(Reuters) – Cynthia Quarterman, the federal regulator who oversaw expansion of the U.S. oil train sector and the fallout from several fiery derailments, will step down, two sources familiar with her intentions said on Wednesday.
As administrator of the Pipeline and Hazardous Materials Safety Administration (PHMSA) since November 2009, Quarterman has been a leading safety official as oil train deliveries from North Dakota neared 750,000 barrels a day and spectacular derailments in the United States and Canada raised concerns about such shipments.
PHMSA, an agency within the U.S. Department of Transportation, has been under scrutiny for more than a year as officials have tried to respond to the hazards posed by oil train cargoes, which have grown in volume along with a rise in domestic crude production.
PHMSA did not confirm Quarterman’s departure, which reportedly will come next week.
Quarterman, previously an attorney whose practice focused on the transportation and energy industries, was often the face of federal policy, defending government actions to lawmakers, industry and safety advocates.
“If you have upset everyone a little, you’re probably doing a good job,” said Brigham McCown, a former PHMSA head.
“The prevailing view is she’s done a good job in challenging times,” McCown said.
Among other things PHMSA has been tasked with writing new safety standards for oil trains and other hazardous cargo. Tuesday marks a deadline for public comment on the proposed safety rules.
Quarterman and other regulators have often been caught between energy interests who argue oil-by-rail safety concerns are inflated and political leaders who represent communities along the tracks.
Lynn Helms, director of the North Dakota Department of Mineral Resources, said dealings with Quarterman have improved in recent months as oil train hysteria has subsided.
“As we moved to more of a science-based approach, things smoothed out,” he said. “Our more recent work with Quarterman and (U.S. Transportation Secretary Anthony) Foxx has been very, very positive.”
Another major incident on Quarterman’s watch was the pipeline rupture in Mayflower, Arkansas, in March 2013. About 5,000 barrels of crude oil spilled from a line that is part of Exxon Mobil’s Pegasus pipeline from Illinois to Texas.
(Reporting by Patrick Rucker; additional reporting by Ernest Scheyder in North Dakota; Editing by Ros Krasny and Sandra Maler)
Six large European oil and gas companies are asking governments across the world to charge them for the carbon dioxide they emit.
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