Category Archives: Oil industry lobby

Alberta Canada: Don’t cheer the new premier yet. Demand she break the oil barons’ vice-grip

Repost from The Guardian
[Editor:  Significant quote: “…investment in oil and gas creates fewer jobs than practically any other industry. Investment in the clean energy sector, on the other hand, creates 7 to 8 times more work. The oil barons aren’t essential “job creators”; they’re economic suppressers.”  – RS

Don’t cheer Alberta’s premier yet. Demand she break the oil barons’ vice-grip

Alberta’s climate plan falls far short of what’s possible: unleashing a green economy that creates hundreds of thousands of jobs and transitions off the tar sands

By Martin Lukacs, 24 November 2015 14.12 EST, updated 25 November 2015 10.28 EST
The Syncrude Oil Sands site near to Fort McMurray in Northern Alberta. Photograph: David Levene for the Guardian

Alberta’s new climate plan is drawing praise from sources that have rarely got on with the oil-exporter – Al Gore, labour unions and some of North America’s biggest green groups. At first glance, it’s not hard to see why: Alberta is promising an accelerated phase-out of coal, increased funds for renewable energy and impacted workers, and a price on carbon. It’s a major step hard to imagine scarcely a year ago, when the province was still under a multi-decade Conservative reign.

So why then are the oil barons celebrating? Beaming with pride, the heads of Canada’s biggest tar sands companies flanked Premier Rachel Notley during Sunday’s announcement.

Their hope: that Alberta’s globally tarred reputation will suddenly be scrubbed clean. Despite the lofty rhetoric, the government has committed only to bringing emissions below today’s levels by 2030 – making it even less ambitious than what Stephen Harper’s federal petro-state offered. This might be what the Premier meant when she promised that new pipelines – which companies desperately need to export tar sands – would soon benefit from “creative lobbying and advocacy efforts.”

The tar sands now has a glossy new sheen. Alberta’s plan sets a cap on their emissions – an acknowledgement that tar sands will no longer grow infinitely. Except it’s so high as to allow a staggering forty percent increase over the next fifteen years. And if a Conservative government returns to power, could it abandon the policy and ensure nothing is accomplished? In other words, this is a cap big enough to drive a three-story tar sands truck through.

Here’s the other reason the oil barons are cheering: they know they could be getting squeezed a hell of a lot more. After all, Alberta’s New Democratic Party got elected with a mandate for bold change. Albertans were tired of oil-soaked politicians who let companies vacuum up billions in profit amidst skyrocketing inequality and deteriorating public services. And the oil price crash made clearer than ever before the cost of a boom-and-bust economy built on a single volatile commodity.

Climate science backs that mandate for rapidly transforming our economy: it tells us that since we’ve delayed for so long, small reforms will no longer suffice. And Albertans understand the scientific reports that the vast majority of fossil fuels need to stay in the ground to avert dangerous climate change – the impacts of which they’ve already experienced in flooded Calgary and a drought-parched countryside. But while good times fueled denial, the ecologically suicidal politics of the establishment could be ignored. When the oil shock hit, they also started looking economically reckless.

As the oil barons thrash about in a self-induced crisis, this should be the time to part ways with them. Exxon is being investigated in the United States for having discovered the lethal consequences of climate change in the 1970s, then lied about it for decades while doing everything to make this catastrophe a reality. Low oil prices – which don’t look to be going away – have already forced the cancellation of extraction projects and created a thaw in investment throughout Alberta’s oil patch. The cost of renewable energy has dropped at incredible and unexpected speed. And just weeks ago, President Obama rejected the Keystone XL pipeline. It was not, as Premier Notley put it, a “kick in [Alberta’s] teeth.” But you couldn’t pick a better moment to kick the oil barons to the curb.

None other than the Economist – not exactly a radical menace to big business – has argued that the oil price collapse offers a “once-in-a-lifetime opportunity” to transform a dysfunctional energy system.

The Alberta government could start by vanquishing the myth that the oil barons are economically indispensable. As the oil industry has thrown almost forty thousand people out of work, they have proved their interests never aligned with Albertans. The facts always told a different story: investment in oil and gas creates fewer jobs than practically any other industry. Investment in the clean energy sector, on the other hand, creates 7 to 8 times more work. The oil barons aren’t essential “job creators”; they’re economic suppressers.

So why – and this applies equally to Prime Minister Trudeau – fixate on building cross-country pipelines, when you could create more jobs in clean energy? Tackling climate change could be not just a public relations strategy to finesse the exporting of Alberta’s bitumen. It could be a chance to massively boost and transform the economy – making it more healthy, just and humane.

Look at what Germany – a similar, industrialized nation – has accomplished. In just over a decade, Germany has generated 30 percent of their electricity through renewables and created 400,000 good jobs in clean energy, much of it community-controlled and run by energy cooperatives. Using the right policies, Alberta could make this transition happen even more quickly, with greater benefits for First Nations, workers, and those getting the worst deal in the current economy.

It’s not too late to seize the historic opportunity. The NDP could still put forward a plan to create 200,000 good, green jobs over the next several years. Reports have laid out how this could happen with targeted investment: in accessible public transit, in energy-saving housing retrofits, in eco-system restoration, and by taking advantage of Alberta’s incredible potential for renewable energy. Nature didn’t make Alberta an oil province. Erect new signs: welcome to solar, wind and geothermal country.

How should Alberta pay for this transition? By putting their hands on the enormous profits of the industry that created the crisis in the first place. The new carbon tax – and the royalty hike the government must vigorously pursue – should be raised to send a stronger message to the market to jump-start a transition off oil.

Economists have shown a fair and effective tax would look more like $200 a tonne. $20 or $30 a tonne will not cut it – especially when half of the revenue generated will return as subsidies to oil and gas companies and dirty electricity generators. At this rate, most oil companies will be spending barely $1 more per barrel of oil. Polluters should be paying, not being paid off. The only message this will send the market is to “dig, baby, dig.”

Rolling out a plan to create a new, cleaner economy that’s more just and prosperous would convince voters there is an alternative to the oil economy. At that point the NDP could initiate a debate on a moratorium on tar sands development that has been called for by a hundred of North America’s top scientists. Scientific studies show we could get all of our electricity from renewables by 2030, not just 30 percent as Alberta now promises; and an economy entirely run by renewables by 2050. When popular movements can build pressure for such a transition, one thing will be sure: oil barons won’t be hand-clasping on the stage – they’ll be howling from the sidelines.

These movements, with Indigenous communities leading the way, have pushed the Alberta government this far. Now they must push them farther, and faster. It’s not time yet to cheer Alberta’s premier. Demand instead she break the oil barons’ vice-grip on our future.

California regulators restore emissions-cutting fuel rule

Repost from the Associated Press

California regulators restore emissions-cutting fuel rule

By Judy Lin, Sep. 25, 2015 5:49 PM EDT
Mary NIchols, Barbara Riordan
Mary Nichols, left, chairwoman of the California Air Resources Board, applauds after the board restored ambitious rules to cut transportation fuel emissions 10 percent within 5 years, during a hearing in Sacramento, Calif., Friday, Sept. 25, 2015. By a 9-0 vote the board restored rules requiring a 10 percent cut in carbon emissions on fuels sold in the state by 2020, despite oil industry objections that it could drive up gas prices. At right is ARB board member Barbara Riordan. (AP Photo/Rich Pedroncelli)

SACRAMENTO, Calif. (AP) — California regulators on Friday restored ambitious rules to cut transportation fuel emissions 10 percent within 5 years, a decision that gives Gov. Jerry Brown a boost for his climate change agenda.

The rules further strengthen California’s toughest-in-the-nation carbon emissions standards, but oil producers warn the changes could drive up costs for consumers at the gas pump.

The changes are expected to add a few cents a gallon to the cost of gasoline and diesel fuel in the state that already has some of the highest gas prices in the nation. The state estimates a typical commuter will pay an extra $20 to $24 in 2017, increasing to $52 to $56 in 2020.

“We are on a path to reduce our dependence on petroleum and this program is a key piece of that action,” Mary Nichols, chairwoman of the California Air Resources Board, said ahead of the vote.

Brown, a Democrat, has vowed to intensify his fight against climate change after the oil lobby helped kill a Democratic legislative proposal earlier this month to slash statewide petroleum use by half in 15 years. The board is the state’s top regulatory agency to enforce rules aimed at reducing air pollution.

Regulators voted 9-0 to re-adopt its low-carbon fuel standard, which requires producers to cut the carbon content of fuels 10 percent by 2020 to help the state meet its emission-reductions goals.

The program was initially adopted in 2009 but the reduction target has been frozen at 1 percent because of a court fight. Friday’s vote allows the state to resume its program; modifies rules in response to industry concerns about price spikes; and gives companies more credits for using renewable hydrogen and other investments to reduce pollutants.

Supporters say the program is worthwhile because it will encourage greater use of cleaner biofuels and electric vehicles, which can be cheaper to operate than those powered by gasoline or diesel.

“This puts it back on track,” Bill Magavern, policy director at Coalition for Clean Air, an environmental advocacy group, said after the vote. “We have other programs that address vehicle technologies and vehicle miles traveled, and this is the one that tells oil companies to reduce the carbon intensity of their fuels.”

Oil producers counter that the rules are unworkable and too costly. They said the standard will impact consumers as the companies try to comply with the mandate or face being shut out of the market.

Catherine Reheis-Boyd, president of the Western States Petroleum Association, which represents oil companies, said the low carbon fuel standard jeopardizes the state’s energy future and adds uncertainty.

“California motorists need to know what is coming and how these regulations will impact transportation fuels,” Reheis-Boyd said in a statement.

Unlike other rules the state has adopted requiring cleaner-burning fuel or more fuel-efficient vehicles, the standard, first proposed in a 2007 executive order from then-Gov. Arnold Schwarzenegger, calls for counting all the pollution required to deliver gasoline, diesel or alternative fuels to in-state consumers — from drilling a new oil well or planting corn to delivering it to gas stations.

In addition to tailpipe emissions, it includes factors such as whether an ethanol factory uses coal or natural gas to power production or an oil rig uses diesel fuel to drill.

Regulators are targeting transportation fuels because California’s roughly 30 million vehicles account for about 40 percent of the state’s emissions — the largest source. The rest comes from generating electricity and industrial manufacturing, as well as commercial, residential and agricultural uses.

All fuels are measured against a baseline pollution standard. If a fuel falls above or below the baseline, it generates a credit or deficit that other producers can buy and sell to meet the target.

It’s up to fuel producers to figure out how to meet the goal, whether by changing production methods, using ethanol or electric vehicles for transportation or buying credits on the market.

After the rule’s initial adoption, out-of-state refiners and ethanol companies were among those who sued, arguing that transporting the fuels into California alone made them less competitive against in-state producers. They argued the law unconstitutionally limits interstate commerce.

The U.S. Supreme Court let stand a 2013 appeals court decision upholding the fuel standard.

Opponents continue to challenge the state’s authority to regulate out-of-state production. Oil firms are also trying to block a similar standard enacted in Oregon, the only other state with a clean fuel standard.

Friday’s move to restore California’s program is not related to Volkswagen drawing international attention for violating separate federal and state rules that regulate emissions from vehicles.

California Lawmakers Abandon Key Part Of Climate Legislation – Big Oil wins

Various sources …

Jerry Brown: Oil lobby gutted climate bill – San Francisco Chronicle
Gov. Jerry Brown and legislative leaders said a well-financed oil industry won a fight over the state’s efforts to pass legislation that would drastically reduce California’s gas consumption. But the feisty governor pledged to keep pushing for climate change policies that reduce the state’s dependence on oil..more..

Big Oil Slick Captures Round 1 of CA Climate Change Drive – Huffington Post
The power of California’s oil refiners is always felt but rarely visible in Sacramento. It was on full display at Wednesday’s press conference when ..more..

California Lawmakers Abandon Key Part Of Climate Legislation, Blaming Oil Industry Lobbying – ThinkProgress
The oil industry has poured money into a campaign against SB 350, calling the legislation the “California Gas Restriction Act of 2015″ and warning that it could ..more..

Oil giants derail California bill to reduce gasoline use by 50% – The Guardian
With only two days left in the legislative session, oil industry successfully rallies for amendment to ambitious environmental bill SB350 ..more..

California Democrats Wanted to Save the World. They Just Caved to Big Oil – Mother Jones
It appears I was a bit too bullish on the prospects for historic new climate legislation in California. Yesterday, Democrats in the state legislature caved to pressure from the powerful oil industry and dropped a critical piece of the bill..more..

California climate change bill: Jerry Brown, Democrats drop oil-reduction target; talks on taxes stall – San Jose Mercury News
With just two days to go before the end of the legislative session, Gov. Jerry Brown and Democratic legislative leaders suffered a pair of stunning defeats at the hands of Republicans, oil companies and even some members of their own party..more..

SF CHRONICLE EDITORIAL: California should lead way, again, on climate

Repost from the San Francisco Chronicle, Sunday Editorial

California should lead way, again, on climate

San Francisco Chronicle, August 28, 2015 5:53pm

By any clean-and-green measure, California zooms past the rest of the nation, requiring cleaner fuels, more alternative energy and cars that use less gas. As these policies have taken root, the state economy has strengthened, creating more jobs in a forward-looking marketplace.

The connection should be clear. California is not only plotting a new energy course, but it’s also prospering. The state law that set emission goals nearly a decade ago hasn’t harmed livelihoods or sent business fleeing.

This experience should teach Sacramento an important lesson as lawmakers face a decision on doing more about climate change. The state Legislature is on the verge of approving a sweeping measure, SB350, that would cut gas and diesel use by half, boost renewable sources of electricity from a third to 50 percent, and double energy efficiency in buildings, all within 15 years. A second measure, SB32, would widen a state cap-and-trade program that cuts other sources of emissions blamed for rising global temperatures.

These targets will put California far beyond President Obama’s plans to curb pollution from power plants and boost solar, wind and biofuels in the nation’s mix of energy sources. But SB350, which has passed the state Senate, could falter in the Assembly where more moderate, business-friendly Democrats hold power.

The forces are building to block the bill, sponsored by Senate President Pro Tem Kevin de León, a Los Angeles Democrat. The oil industry, a steady source of campaign funds, is putting pressure on Assembly Democrats to stop the bill or water it down. These foes predict gas rationing, extra fees and arbitrary directives from state bureaucrats if the law kicks in.

Walking away from the bill would be a mistake, a step backward that will deny California cleaner air, greener energy and an opportunity to lead a timid nation on an essential issue. Wavering lawmakers should consider a recent poll showing that two-thirds of the state believes a deepening drought is linked to climate change and supports Gov. Jerry Brown’s directives that match up with SB350.

Along with California’s welcoming politics on the topic, there is direct experience to consider. Tech breakthroughs ranging from cleaner-burning engines to cheaper solar panels are helping this state move forward. Growing numbers of high-mileage cars, including electric and hybrid models, are expected to provide nearly half of the gas savings needed to hit the 50 percent drop by 2030.

There are reasons to be cautious. Energy improvements often come with steep startup costs such as solar panels on the roof or the purchase of a gas-thrifty car. Low-income residents will need a break in tapping technology available only to well-off consumers. State regulators should be flexible in designing new programs to advance conservation.

But California has shown it can adapt and thrive as it heads in this direction. Climate change is a provable and genuine threat to the state’s future. It’s time to adopt genuine changes that guide the state in the right direction and serve as a model for the rest of the country.

How far should California go?
A sweeping bill would change the way residents drive, live and work. Here are the major ingredients of SB350, which has passed the state Senate and is up for a vote in the Assembly:

On the road: Cut petroleum use in half by 2030. Tailpipe emissions are a top source of carbon dioxide, the main factor behind climate change. Oil companies are lobbying heavily against the limit, saying it will bring angry lines at gas pumps in a car-crazy state. Higher-mileage cars including electric and hybrids will be key in making this directive work.

On the grid: Half of the state’s electricity would come from renewables, up from a one-third level in five years. Utilities have qualms but are not actively opposed.

In the home: Doubling the efficiency in buildings to conserve heating and cooling costs. No major opposition.