No choice but to invest in oil, Shell CEO says

No choice but to invest in oil, Shell CEO says

SOURCE: Reuters DATE: October 14, 2019 SNIP: Royal Dutch Shell (RDSa.L) still sees abundant opportunity to make money from oil and gas in coming decades even as investors and governments increase pressure on energy companies over climate change, its chief executive said. Shell, which supplies around 3% of the world’s energy, set out in 2017 a plan to halve the intensity of its greenhouse emissions by the middle of the century, based in large part on building one of the world’s biggest power businesses. Still, the amount of carbon dioxide emitted from Shell’s operations and the products it sells rose by 2.5% between 2017 and 2018. A defiant van Beurden rejected a rising chorus from climate activists and parts of the investor community to transform radically the 112-year-old Anglo-Dutch company’s traditional business model. “Despite what a lot of activists say, it is entirely legitimate to invest in oil and gas because the world demands it,” van Beurden said. “We have no choice” but to invest in long-life projects, he added. Shell plans to greenlight more than 35 new oil and gas projects by 2025, according to an investor presentation from...
Oil firms to pour extra 7m barrels per day into markets, data shows

Oil firms to pour extra 7m barrels per day into markets, data shows

SOURCE: The Guardian DATE: October 10, 2019 SNIP: The world’s 50 biggest oil companies are poised to flood markets with an additional 7m barrels per day over the next decade, despite warnings from scientists that this will push global heating towards catastrophic levels. New research commissioned by the Guardian forecasts Shell and ExxonMobil will be among the leaders with a projected production increase of more than 35% between 2018 and 2030 – a sharper rise than over the previous 12 years. The acceleration is almost the opposite of the 45% reduction in carbon emissions by 2030 that scientists say is necessary to have any chance of holding global heating at a relatively safe level of 1.5C. The projections by Rystad Energy, a Norwegian consultancy regarded as the gold standard for data in the industry, highlight how major players seem to be ignoring government promises, scientific alarms and a growing public outcry so they can pump more fossil fuels – and profits – out of the ground. Rystad bases its work on companies’ assets and a long-term oil price of $65 a barrel, similar to its current level. The forecast shows an almost 8% rise in the projected output of the top 50 oil and gas companies between 2018 and 2030, which would account for almost two-fifths of the remaining 1.5C carbon budget and increase the risk of heatwaves, hurricanes, forest fires and floods. At least 14 of the 20 biggest historical carbon producers plan to pump out more hydrocarbons in 2030 than in 2018, according to the Rystad data. Its analysis shows the US is the centre of the...
Oil-Sands Crude Sails From B.C., Sidestepping Federal Ban

Oil-Sands Crude Sails From B.C., Sidestepping Federal Ban

SOURCE: Bloomberg DATE: September 25, 2019 SNIP: A Canadian law barring oil tankers from the northern coast of British Columbia hasn’t stopped crude from setting sail there. Two Calgary-based companies, Melius Energy and BitCrude, are exploiting a loophole in the law passed this summer — by shipping semi-solid bitumen mined from oil sands on a cargo ship rather than in liquid form on an oil tanker. About 130 barrels of bitumen left Prince Rupert, B.C., on Saturday bound for a refinery in China, according to Cal Broder, founder of both companies and chairman of BFH Corp. He declined to name the cargo’s buyer. Canada’s Senate in June passed Bill C-48, banning oil tankers off the northern B.C. coast, against the objections of the oil sands-producing province of Alberta. Broder was able to get around the ban by sending the bitumen in a 20-foot shipping container in a semi-solid state, undiluted with lighter oils such as condensate. The concept of sending bitumen in solid form in shipping containers isn’t new. Companies have been developing technologies to send oil in the form of bricks or pellets for several years. The technology could help Canadian oil producers overcome a pipeline shortage that’s caused local oil prices to collapse last year and prompted the Alberta government to impose production limits on large producers. The bitumen shipped to China came from an oil sands producer that Broder didn’t identify. After diluent was removed, it was loaded onto a rail car and sent to Prince Rupert. Broder said he is currently setting up a processing center near Edmonton and plans to start shipping his undiluted...
Facing Climate Crisis, Senators Have Millions Invested in Fossil Fuel Companies

Facing Climate Crisis, Senators Have Millions Invested in Fossil Fuel Companies

SOURCE: Sludge DATE: September 24, 2019 SNIP: As the United States Senate fails to act on catastrophic climate change, dozens of its members are profiting from investments in oil, gas, and coal companies that are fueling the crisis. Twenty-nine U.S. senators and their spouses own between $3.5 million and $13.9 million worth of stock in companies that extract, transport, or burn fossil fuels, or provide services to fossil fuel companies, according to a Sludge analysis of personal financial filings as of Aug. 16. The senators are invested in 86 fossil fuel companies, including well-known giants like ExxonMobil and Royal Dutch Shell, but also a range of lesser known companies that specialize in pipeline operations, natural gas exports, and oilfield services. Top Dems on Energy and Environment Committees Are Big Stock Owners The largest fossil fuel investment among all senators belongs to Sen. Joe Manchin (D-W.V.), the ranking member of the Senate Energy and Natural Resources Committee, who is in line to chair the committee if Democrats take control of the Senate in 2020. The committee’s legislative jurisdiction covers energy resources and development, nuclear energy, federal coal, oil, and gas, other mineral leasing, and other issues. Sen. Tom Carper (D-Del.), the top Democrat on the Environment and Public Works Committee, which handles air pollution, environmental policy, and water pollution, has up to $310,000 invested in more than a dozen oil, gas, and utility companies, as well as mutual funds with holdings in the fossil fuel industry. Oil giant ExxonMobil, the largest oil and gas company in the U.S. by revenue, exerts massive lobbying pressure in Washington D.C. to further its...
Why it’s premature to declare coal dead

Why it’s premature to declare coal dead

SOURCE: Yale Climate Connections DATE: August 28, 2019 SNIP: Coal’s story across the world is a study in contrasts: up sharply in some places and down in others. From a climate perspective, there is no simple characterization of the global status of coal, other than to say that overall, the world is still burning far too much of it. A few indicators point to a global slowdown in coal, but it’s unclear whether that can happen fast enough to meet global climate change emissions targets. A recent post at this site covered the downturn of the American coal market as a result of cheaper and cleaner alternatives. Although the U.S. is a major player in global energy, trends in American coal do not necessarily dictate or match what’s happening elsewhere in the world. It’s premature to say, as some do, that coal is dead. Domestic use of coal for electricity generation has dropped sharply, but American coal exports are up. Growing international demand for coal has boosted prices and made coal exports an attractive economic prospect. About 15% of America’s total coal production is exported. North America and Europe are leading the world in moving away from coal, but China and India are driving a surge in coal use. Increases in the Asia-Pacific region moved global coal consumption upward about 0.5% in 2017 and 1.4% again in 2018. The all-time global peak in coal use was in 2013, but the world once again is approaching that peak. Coal use is dominated by a handful of nations. China accounts for more than half of worldwide coal consumption, and then come...