Category Archives: energy policy

Fox News: Joint U.S.-Mexico Gulf Oil Drilling Deal Held Up Over Disagreements In Congress

http://latino.foxnews.com/latino/politics/2013/10/03/joint-us-mexico-gulf-oil-drilling-deal-held-up-over-disagreements-in-congress/

Published October 03, 2013Fox News Latino

KERR-MCGEE

Along with the budget and immigration, one more thing that the Senate and House can’t mutually agree upon is the proposed joint U.S.-Mexico effort to develop offshore oil and gas fields along the two countries’ maritime border in the Gulf of Mexico.

Both the Mexican government and many in Washington want to nail down the agreement soon, but its ratification by the U.S. Congress has been delayed by a dispute between the House and Senate over whether oil and gas producers should be required to publicly disclose their payments to foreign governments.

Mexico almost immediately ratified the treaty but the agreement has stalled on Capitol Hill as the House-passed version exempts oil and gas companies from disclosing their payments.
SUMMARY
The U.S. and Mexico have tried for decades to figure out a plan for divvying up the oil and gas resources in the Gulf, but a 2000 moratorium was placed on drilling in the region to allow time for the development of a joint plan. From that point on, the U.S. began expanding its drilling operations closer and closer to the maritime border in the Gulf, as Mexico grew increasingly concerned that the U.S. could be siphoning from deposits located on their side of the border.

“It is the hope that, through this Agreement and the proposed energy reforms in Mexico, the energy revolution the U.S. is currently experiencing can extend throughout the Western Hemisphere,” Democratic Sen. Ron Wyden of Oregon said in a statement Tuesday during a meeting of the Senate Energy and Natural Resources Committee. “This would make our region more competitive and less reliant on politically tumultuous states for obtaining energy.”

The U.S. and Mexico have tried for decades to figure out a plan for divvying up the oil and gas resources in the Gulf, but a 2000 moratorium was placed on drilling in the region to allow time for the development of a joint plan. From that point on the U.S. began expanding its drilling operations closer and closer to the maritime border in the Gulf, as Mexico grew increasingly concerned that the U.S. could be siphoning from deposits located on their side of the border.

The joint agreement is meant to set explicit guidelines for where each country can drill and provide the United States “substantial geopolitical, energy security and environmental benefits, while potentially helping the U.S. oil and gas industry gain access to a huge market that may offer jobs and gains across a long value chain,” the Brookings Institution stated earlier this year.

For Mexico, a ratified agreement would provide Latin America’s second-largest economy with new technology and investment needed to develop hard-to-reach regions along with giving a major boost to President Enrique Peña Nieto’s push for energy reform that includes opening the country’s state-run oil company -Pemex – to foreign investment.

“The motive for the U.S. is ‘We’re ready to drill, but we don’t want to drill ourselves into a legal nightmare,'” said George Baker, publisher of Mexico Energy Intelligence, an industry newsletter based in Houston, according to the Christian Science Monitor. “For Mexico, it’s ‘We want to make certain our oil rights are protected so that if they start drilling on the U.S. side – and discover crossborder oil – we have architecture in place to protect our interests.”

Besides the exemptions for oil and gas companies, the specter of the 2010 Deepwater Horizon oil spill looms heavy over drilling in the Gulf. Environmental activists argue that the U.S. and oil companies have not learned their lessons from the BP spill that left 11 people dead and dumped around 4.2 million barrels of oil into the Gulf of Mexico.

“[O]ur continued emphasis on expanding offshore drilling is slowing the necessary investment in clean energy projects that will stimulate the economy without the attendant risks, and help to alleviate the worst impacts of climate change,” said Jacqueline Savitz, vice president for U.S. oceans at the conservation organization Oceana during Tuesday’s hearing.

If finally approved, the agreement will be the first major test to Peña Nieto’s energy reform plan. The Mexican leader has already taken heat for his proposal to open Pemex up to foreign investment – with opponents claiming the move is tantamount to Mexico losing its sovereignty.

If the agreement is not ratified by Congress by Jan. 17, 2014 then the moratorium in place will expire and it is unlikely that either country will drill in the region.

Special thanks to Richard Charter

Common Cause: Nobel Laureates to EU: Classify Tar Sands Oil As ‘Dirty Fuel’ It Is

http://www.commondreams.org/headline/2013/10/03-3

Published on Thursday, October 3, 2013 by Common Dreams

‘Extraction of unconventional fuels is having a particularly devastating impact on climate change,’ say noted scientists and peace advocates
– Jon Queally, staff writer

There is no proposed pipeline to pump Canada’s tar sands oil direct to customers in Europe, but that hasn’t kept twenty-one Nobel Prize laureates from demanding the European Union make a stand against the dirty and damaging fuel source.

In a letter this week to the EU president José Manuel Barroso, EU ministers and heads of state, the prominent group of peace advocates and scientists implored the government leaders to enact a law that would classify the heavy bitumen that comes from tar sands mining as a dirtier fuel than conventional crude oil. Such a move, the letter argues, would provide incentives for cleaner energy choices within the EU and also help discourage further development of Canada’s destructive tar sands industry.

“The world can no longer ignore, except at our own peril, that climate change is one of the greatest threats facing life on this planet today,” the letter reads. “The impacts of climate change and extreme resource extraction are exacerbating conflicts and environmental destruction around the world. The extraction of unconventional fuels—such as oil sands and oil shale—is having a particularly devastating impact on climate change.”

The letter highlights the European Commission’s own scientific research which found that one of the unconventional fuel sources identified in the proposed policy, tar sands, produces an average of 23% more greenhouse gas emissions than average conventional oil.

On the particulars of the law the group is pressing on, The Guardian reports:

EU member states approved legislation in 2009, called the fuel quality directive, with the aim of cutting greenhouse gases from transport fuel sold in Europe by 6% by 2020.

In October 2011, the commission proposed detailed rules for implementing the law, including default values to rank fuels by their greenhouse gas output over their wells-to-wheels life cycle.

So far the commission has said it is standing by its value for tar sands – of 107 grams per megajoule – making it clear to buyers that the fuel source had more greenhouse gas impact than average crude oil at 87.5g.

Intense Canadian lobbying and an inconclusive EU vote on the law forced the commission to announce an assessment of the impact of the fuel quality directive in April 2012.

EU sources say the assessment has been concluded, but not yet made public, so the law is still in limbo.

The Canadians have argued the EU law discriminates against Canadian oil and have taken every opportunity to press their case.

The commission has said repeatedly it would stand firm on the law, but the pressure to weaken the measure is intense.

The full letter follows:

EU climate legislation and unconventional fossil fuels

The world can no longer ignore, except at our own peril, that climate change is one of the greatest threats facing life on this planet today. The impacts of climate change and extreme resource extraction are exacerbating conflicts and environmental destruction around the world. The extraction of unconventional fuels—such as oil sands and oil shale—is having a particularly devastating impact on climate change.

For this reason, we are writing to urge you to support the immediate implementation of the European Union’s (EU) Fuel Quality Directive in order to fulfill its 6% reduction target in greenhouse gas emissions from fuels used for transportation by 2020. We have no doubt that the Directive must be applied fairly to unconventional fuels to ensure their climate impacts are fully taken into account. It follows that the fuel-producing companies should report their climate emissions and be held responsible for any emissions increase.

We welcome the EU’s scientific analysis—as it is now proposed for the implementation of the EU Directive—that the extraction and production of fuels from unconventional sources fuels including oil sands, coal-to-liquid, and oil shale leads to higher emissions and that this should be reflected in the regulations.

The International Energy Agency (IEA) is warning that unconventional fuel sources are especially damaging to the environment and climate, and is concerned that these fuel sources are now increasingly competing on a par with conventional fuel sources. In order to avoid catastrophic climate change, the IEA calculates that two thirds of known fossil fuel reserves must be left in the ground.

Now is the time to transition swiftly away from fossil fuels, with a special focus on those that pollute the most. We must all move toward a future built on safe, clean and renewable energy. Fully implementing the EU’s Fuel Quality Directive will send a clear signal that the European Union is committed to action that supports the rights of future generations to a healthy planet.

It is not too late to avert our actions that only amount to palliative care for a dying planet. The time for positive action is now. The European Union can demonstrate clear and unambiguous leadership by upholding its climate principles. We look forward to working together as we move forward to confront this frightening challenge to our global survival.

Mairead Maguire, Nobel Peace Prize, 1976, Ireland

Roger Guillemin, Nobel Prize in Physiology or Medicine, 1977, France

Adolfo Pérez Esquivel, Nobel Peace Prize 1980, Argentina

Archbishop Desmond Tutu, Nobel Peace Prize 1984, South Africa

Rigoberta Menchú Tum, Nobel Peace Prize, 1992, Guatemala

Richard Roberts, Nobel Prize in Physiology or Medicine, 1993, United Kingdom

Paul Crutzen, Nobel Prize in Chemistry, 1995, Netherlands

Harold Kroto, Nobel Prize in Chemistry, 1996, United Kingdom

José Ramos-Horta, Nobel Peace Prize, 1996, East Timor

John Walker, Nobel Prize in Chemistry, 1997, UK

Jody Williams, Nobel Peace Prize, 1997, USA

John Hume, Nobel Peace Prize, 1998, Ireland

Paul Greengard, Nobel Prize in Physiology or Medicine, 2000, USA

Shirin Ebadi, Nobel Peace Prize, 2003, Iran

Gerhard Ertl, Nobel Prize in Chemistry, 2007, Germany

Mark Jaccard, member of the Intergovernmental Panel on Climate Change, Nobel Peace Prize, 2007, Canada

John Stone, member of the Intergovernmental Panel on Climate Change, Nobel Peace Prize, 2007, Canada

Martin Chalfie, Nobel Prize in Chemistry, 2008, USA

Thomas Steitz, Nobel Prize in Chemistry, 2009, USA

Leymah Gbowee, Nobel Peace Prize, 2011, Liberia

Tawakkol Karman, Nobel Peace Prize, 2011, Yemen

_____________________________________________

Voice of America News: Greenpeace Crackdown Part of Moscow’s Arctic Cold War?

http://www.voanews.com/content/crackdown-on-greenpeace-is-part-of-russias-new-cold-war-in-the-arctic/1759706.html

James Brooke
September 30, 2013

SALEKHARD, RUSSIA – Icy blasts of water greeted Greenpeace protesters climbing Russia’s lone offshore oil platform in the Arctic.

Then, Russian police fired warning shots.

And then arrested 30 activists.Today, 28 Greenpeace activists and 2 journalists from the ship are serving 2 months detention terms in Murmansk, where their ship, the Arctic Sunrise, also is impounded.

Greenpeace Russia lawyer Anton Beneslavski says last year there were no legal penalties after Greenpeace boarded the same platform and unfurled a protest banner.

He said that last year, border police never reacted. This year, police are accusing Greenpeace of piracy.

But Russia is increasingly flexing its muscles in its vast Arctic region.

In September, Russia’s only nuclear-powered guided missile cruiser led a flotilla to the Novosibirsk Islands, where Russian soldiers reopened a military base that had been closed 20 years ago.

As Arctic ice melts more, the base will check on ships passing in summer.

Last summer, China’s first icebreaker, the Snow Dragon, made the Arctic passage. This summer, the first Chinese freighter passed over the top of Russia.

Last May, at a meeting in Sweden, the Arctic Council admitted China as an observer.

That meeting also drew Greenpeace protesters. They called for a ban on drilling and mining in the fragile Arctic environment.

Recently, at Salekhard, a Russian city on the Arctic Circle, Russian President Vladimir Putin spoke at an Arctic Forum. He rejected Greepeace’s protest tactics.

He said: “They are obviously not pirates, but formally, they did attempt to board the platform.”

After Putin spoke, Vera Orlova of the Russia Geographical Society told foreign reporters that their permits to visit the Russian Arctic had expired.

She said that it was an absolutely normal procedure for reporters to receive permits to visit Salekhard for only the two days of the conference.

No other nation restricts visits to its Arctic cities. But Putin’s Russia is taking the road of more and more government controls.

__________________
Special thanks to Richard Charter

FuelFix: Feds to release new rules for offshore emergency equipment this year

http://fuelfix.com/blog/2013/09/30/feds-to-release-new-rules-for-offshore-emergency-equipment-this-year/

Posted on September 30, 2013 at 3:24 pm by Jennifer A. Dlouhy

blowout_preventer_bp_oil_spill-306x203
The blowout preventer stack (right) and lower marine riser stack (left) from the Deepwater Horizon explosion and oil spill (AP file photo/Gerald Herbert)

The nation’s top offshore drilling regulator said he hopes to unveil new requirements for blowout preventers by Dec. 31, nearly four years after the Deepwater Horizon disaster revealed vulnerabilities in the emergency devices.

The hulking devices sit atop wells and can be activated in an emergency to cut drill pipe and block off the hole, trapping oil and gas inside. But a forensic investigation of the blowout preventer used at BP’s failed Macondo well concluded that a powerful rush of oil and gas caused drill pipe to buckle and shift, ultimately preventing powerful shearing rams on the device from cutting the pipe and sealing the hole.

In response, the nation’s three main blowout preventer manufacturers are developing and selling newly robust shearing rams and other designs to slash through thick pipe connections and debris. But a new federal rule would give those voluntary changes the force of law.

The Bureau of Safety and Environmental Enforcement aims to issue those proposed requirements by the end of 2013, said agency director Brian Salerno.

“Blowout preventers are an integral part of the safety systems on drilling rigs,” Salerno said in a letter to Rep. Pete Olson, R-Texas, and other lawmakers. The safety bureau “is working to continue to advance blowout preventer improvements.”

In July, the lawmakers told the safety bureau they were concerned that regulators were “failing to provide clarity for rig operators” while preparing potentially “sweeping new rules” for blowout preventers.

Response ready: Spill containment system headed for Texas coast

Regulators at the safety bureau are likely to lay out specific performance standards for the devices, such as a mandate that they be capable of cutting through casing and drill pipe and effectively sealing a well. Officials could insist that companies use a second set of shearing rams, potentially boosting the odds of successfully cutting drill pipe – a method already being used by some operators in the Gulf of Mexico.

The measure also could require the use of real-time technologies that could aid in diagnosing problems or detecting unexplained surges of oil and gas.

Salerno said his agency is consulting with the manufacturers of blowout preventers and the oil companies that use them as it writes new requirements. The consultation officially began with a public forum in May 2012.

“BSEE has received significant input and specific recommendations from stakeholders, such as industry groups, operators, equipment manufacturers and environmental organizations,” Salerno said.

When a notice of proposed rule making is issued, Salerno said, stakeholders will have a chance to comment further.

Offshore operators say they want to make sure there is a sufficiently long on-ramp for compliance, with plenty of time to redesign blowout preventers and retrofit existing drilling rigs with the devices.

Regulators previously have vowed to give the oil industry plenty of time to adapt, especially given the prospect that requirements could hasten the retirement of some older industry equipment. For instance, a mandate for a second set of shear rams could grow the size of blowout preventers beyond the available space in some rig cellars at shallow-water operations.

The safety bureau is also drafting new standards for oil and gas activity in U.S. Arctic waters, with hopes to unveil that proposal by the end of the year.

(Melissa Phillip / Houston Chronicle)
Employees at National Oilwell Varco work on a lower blowout preventer stack (left) and lower marine riser package (right).

Jennifer A. Dlouhy
Jennifer A. Dlouhy covers energy policy, politics and other issues for The Houston Chronicle and other Hearst Newspapers from Washington, D.C. Previously, she reported on legal affairs for Congressional Quarterly. She also has worked at The Beaumont Enterprise, The San Antonio Express-News and other newspapers. Jennifer enjoys cooking, gardening and hiking. She lives in Washington, D.C., with her husband and toddler son.

Special thanks to Richard Charter

Common Dreams: The Yes Men — Pipeline Company’s PR Dream Turns Into a Nightmare

http://www.commondreams.org/newswire/2013/09/30

FOR IMMEDIATE RELEASE
September 30, 2013
12:21 PM

CONTACT: The Yes Men

TransCanada’s “community consultation” squad dogged by activist lookalikes

WASHINGTON – September 30 – In towns across Canada, troupes of mischievous activists are successfully derailing the attempts of TransCanada—the company building the stalled Keystone XL pipeline—to ram through their latest proposed project, the Energy East pipeline, which would bring over a million barrels of Tar Sands oil to the East Coast for export, primarily to Europe and Asia.

During previous pipeline projects, stakeholders were able to express concerns in front of their whole community. To impede the type of opposition that has stalled past projects, this time TransCanada has changed the format of community consultations, turning them into trade-show-like promotional events where stakeholders can only speak one-on-one with company representatives (or PR contractors hired for the occasion).

To outwit this latest ploy by TransCanada, local activists all along the pipeline route have been swarming these events dressed just like TransCanada reps, but with lookalike “SaveCanada” name tags and brochures. Instead of promoting the pipeline, the SaveCanada reps communicate risks.

“Since TransCanada has come up with a new way to lie to the public, we had to come up with a new way to tell the truth,” said North Bay farmer Yan Roberts, who helped to launch the unusual protest. “We’re friendly folks, so our solution is to dress like them, outnumber them, and ‘out-friendly’ them in every community they’re trying to scam.”

The series of SaveCanada actions began at TransCanada’s open house in North Bay, where roughly 30 TransCanada reps were surprised to see their meeting overwhelmed by newcomers wearing nearly identical shirts and also carrying slick PR materials, but with a twist.

Now, ten other towns have orchestrated their own versions of the prank. When TransCanada came to the Montréal area on September 24, members of the Québécois SaveCanada counterpart, “SansTransCanada,” nearly outnumbered the TransCanada reps. A Global TV segment even identified a SansTransCanada activist as a TransCanada rep.

The Montréal SaveCanada action came to a carnivalesque conclusion when attendees were invited to play “pin the bitumen spill on the pipeline” and a crowd formed around TransCanda’s large route map to see where the sticky-note spill would end up.

NASA’s James Hansen has said of the Keystone XL pipeline that, if built, it will be “game over” for the climate. This is truer still for the Energy East pipeline, as it’s designed to carry a greater volume. The new pipeline also threatens the local communities in its path with inevitable leaks.

“In the next few weeks TransCanada is holding more of these so-called ‘consultations,’ and we are looking forward to seeing them derailed by every community they hope to fool.” said Roberts. “Then we’ll see what they try next, and we’ll derail that, too.”

Upcoming TransCanada “consultations” are scheduled in: Saint-Honoré-de-Témiscouata, Québec (Oct. 1); Kemptville, Ontario and St-Onésime-d’Ixworth, Québec (October 2); Montmagny, Québec and Horton, Ontario (Oct. 3); and Ottawa, Ontario, Canada’s capital city (Oct. 10). To help derail one of these events, please visit www.save-canada.com.

“Companies may try to invent new ways to fool people, but citizens will always be more powerful because we care more,” said Shona Watt, a local organizer of the Montréal SaveCanada/SansTransCanada action. “What’s guaranteed is that, ultimately, people will win.”
### Special thanks to Common Cause