New Colorado environmental law stalls oil investment
Laila Kearney, David French, Reuters, May 9, 2019
New environmental regulations in Colorado have chilled investment in the state’s oil and gas fields as companies grapple with how local officials will respond to a law giving them more power to restrict energy production. Colorado now ranks fifths among U.S. states in oil production at about 500,000 barrel per day, up from just 90,000 barrels in 2010. That boom, however, has come just as state politics has shifted to the left with an influx of urbanites who tend to oppose fossil-fuel development.
Our Take: Uncertainty has “nearly halted energy deal activity.” Uncertainty is the enemy of investment and Alaska has, unfortunately, had a history of creating uncertainty for the state’s biggest industry. As the state comes out of a recession and the industry continues to invest, create jobs, pay taxes – a good lesson to remember.
Landmark FERC pipeline challenge fails
Pamela King E & E News, My 9, 2019
An appellate court today tossed a lawsuit targeting a federal plan to significantly narrow climate analyses for natural gas infrastructure. During oral arguments last month, judges for the U.S. Court of Appeals for the District of Columbia Circuit seemed skeptical of the Federal Energy Regulatory Commission’s defense of its drastic climate policy shift (Energywire, April 12). But the case failed on the question of whether the plaintiff in the case, the small New York environmental nonprofit Otsego 2000, had standing to bring the challenge. “Otsego’s affidavits do not identify any injury other than the organization’s expenditure of time and money related to this litigation,” the court wrote in a short order today.
Our Take: Victory! Alaska knows all-to-well the damage that outside organizations can do to responsible resource development. Good to see a judge recognizing that the only damage is to the outside organization’s pocketbook! Case. Closed.
Trump: China ‘broke the deal’ in trade talks
CNBC, May 9, 2019
U.S. President Donald Trump said Wednesday that China “broke the deal” in the ongoing U.S.-China trade talks. Speaking at a rally in Florida, the president attributed his recent threat of increased tariffs to Beijing’s negotiating position. “By the way, you see the tariffs we’re doing? Because they broke the deal. They broke the deal,” Trump said. “So they’re flying in, the vice premier tomorrow is flying in — good man — but they broke the deal. They can’t do that, so they’ll be paying.”
From the Washington Examiner Daily on Energy:
EXXON TEAMS UP WITH FEDERAL LABS ON CARBON CAPTURE: Exxon Mobil, the biggest private oil company in the world, announced Wednesday one of the largest deals with the Trump administration meant to make low-emission technology a commercial reality in the next decade.
The oil company will invest $100 million over 10 years to advance the technology in collaboration with the two largest federal energy technology labs overseen by the Energy Department: The Colorado-based National Renewable Energy Laboratory and the West Virginia-based National Energy Technology Lab.
The announcement comes as the company has faced increasing calls by shareholders to be transparent about its greenhouse gas emissions and set carbon pollution reduction targets. It has also faced legal scrutiny by New York’s attorney general over allegations it tried to hide the true cost of climate change.