Keith Stewart

Business Not As Usual: What Kinder Morgan Isn’t Telling Investors

kinder morgan IPO climate change

Kinder Morgan is providing potential investors with shoddy information, according to a complaint filed with the Alberta Securities Commission by Greenpeace Canada last week.

The formal complaint contends the company’s draft prospectus — a legal document prepared for investors ahead of its massive $1.75 initial public offering (IPO) — failed to properly disclose future Asian oil demand and the financial impacts of climate policy.

It turns out that Kinder Morgan used demand forecasts that assume “business as usual” for oil consumption, which effectively means no serious attempt to keep global warming below two degree celsius.

What The Oilsands Sell-Off Actually Means

Oilsands trucks

The last few months have been marked by some massive shifts in the oilsands.

In December, there was the $830 million Statoil sale to Athabasca Oil, followed in January and February by the writing down of billions of barrels of reserves by Imperial Oil, ConocoPhillips and ExxonMobil.

On March 9, Shell sold a majority of its oilsands assets to Canadian Natural Resources Limited (CNRL) in a huge $7.25 billion sale, while Marathon Oil split its Canadian subsidiary between Shell and CNRL for a total of $2.5 billion.

The question is: why are all of these companies selling their oilsands assets? While some celebrate the moves as successes for the climate movement, others blame the Alberta NDP for the exodus of internationals.

Tweet: Experts say #oilsands sell-off has more to do w/ a broader shift that’s made oilsands uneconomical http://bit.ly/2nK3zyQ #ableg #cdnpoliBut experts say the reality has more to do with a broader economic shift that’s made oilsands uneconomical — for the time being at least.

CAPP Lobbies Government to ‘Recycle’ Carbon Tax Revenues Back to Oil Industry

Canadian Association of Petroleum Producers Lobbies for Carbon-Neutral Carbon Tax

The Canadian Association of Petroleum Producers (CAPP), Canada’s largest oil and gas lobbyist group, asked the federal government to introduce a carbon pricing scheme that would “recycle” revenues back into oil and gas operations, documents released via Freedom of Information legislation reveal.

The documents, released to Greenpeace Canada, contain an August 2016 submission CAPP provided to the federal government in which the group argues a price on carbon should be revenue neutral for industry.

One of the decisions governments need to make is what to do with the revenue generated from the carbon pricing mechanism,” the document reads. “There are many options available to enable innovation for distribution of this generated revenue; CAPP recommends that to enable innovation, revenue generated by industrial emitters is best recycled back to industry for technology and innovation.”

Keith Stewart, senior energy strategist for Greenpeace Canada, says, “The oil industry formally supports action on climate change (in exchange for pipeline approvals) but wants to shape how the policy is implemented so as to minimize the impact on its own operations.”

In a summary piece for Policy Options, Tweet: .@OilGasCanada’s ask to route #CarbonTax back to industry “dramatically weakens effectiveness of the federal policy” http://bit.ly/2mPdAa9Stewart says the recommendation to channel carbon taxes back into industry operations “dramatically weakens the effectiveness of the federal policy.”

Why Trudeau Should Call Off the Reviews of Trans Mountain and Energy East

The National Energy Board is fundamentally broken.

That was a point repeatedly highlighted by Prime Minister Justin Trudeau during the 2015 federal election — and one confirmed for many with recent revelations that former Quebec premier Jean Charest had privately met with senior NEB officials while on the payroll of TransCanada.

Trudeau and his federal cabinet have the chance to change that: in June, the government announced dual review panels to assess the mandates and operations of the NEB and the country’s oft-criticized post-2012 environmental assessment processes (it also announced five interim principles until those reviews are completed, including a requirement to assess upstream greenhouse gas emissions although it’s unclear how that information is being used).

Suncor Opens Conversation about ‘Stranded Assets’ in Alberta’s Oilsands

Suncor Energy CEO Steve Williams rocked the oil industry boat Thursday when he announced a plan to leave some of the company’s oilsands reserves unrecovered during a conference call with investors.

Williams said the company is working to develop a plan with Alberta to “strand” its least economical reserves, a proposal that appears to align with the call of environmentalists to leave the high-cost and high-carbon fossil fuels in the ground to prevent catastrophic global warming.

Tweet: Whoa: ‘We’re advocating in a modest way to work with govt so we can strand some of the oil in the oilsands’ http://bit.ly/2aO78OU #ablegWe are advocating in a modest way to work with government so that we can strand some of the oil in the oilsands,” Williams said, as reported by The Canadian Press.

Our regulation is written so that we take to a very high percentage the last piece of oil out. That tends to be the most expensive both economically and environmentally. What we would like to do is leave that last piece in (the ground),” he said.

I’m very optimistic we are making some breakthroughs with government to do that.”

The proposal is about more than leaving some oil deposits undeveloped, according to Simon Dyer, director of the Pembina Institute.

We’re talking about Alberta moving philosophically from maximizing production to optimizing value,” Dyer told DeSmog Canada.

Kinder Morgan Pipeline Review to Continue Under Flawed Review Process, According to Natural Resources Minister

Natural Resources Minister Jim Carr told reporters Wednesday that ongoing oil pipeline reviews will continue on as usual, despite a promise by the Liberal government to make the environmental assessment process more robust.

They have not stopped,” Carr said. “The process continues.”

Ongoing National Energy Board reviews will continue for projects like the Kinder Morgan Trans Mountain pipeline expansion even though the Liberal party platform promised an immediate review of the process, saying the renewed assessments will “restore robust oversight and thorough environmental assessments” and “restore lost protections” resulting from weakened environmental laws under the Stephen Harper government.

Minister Carr indicated the National Energy Board review process will undergo a transition but until that time, project reviews will remain unchanged.

There will be a transition as we amend the ways in which the National Energy Board goes about the process of evaluating these projects,” Minister Carr said, “and we will announce those changes as soon as we can, but the process continues.”

The announcement has some wondering what to make of Prime Minister Justin Trudeau’s assertion that a more robust process would apply to the to Kinder Morgan Trans Mountain pipeline.

In August, Dogwood Initiative’s Energy and Democracy Director Kai Nagata pressed Trudeau to confirm if an NEB overhaul would apply to the Kinder Morgan project.

Yes. Yes,” Trudeau said. “It applies to existing projects, existing pipelines as well.”

July 2015 is Officially Hottest Month on Record. Ever.

Raging wildfires and apocalyptic smoke. Huge algal blooms visible from space turn seafood on the Pacific Northwest toxic. California’s drought. Alberta’s drought. Alberta’s floods.

There’s no doubt: it’s hot and weird out.

According to officials with the National Oceanic and Atmospheric Association (NOAA) July was the hottest month ever recorded, putting 2015 well on track to beat out 2014 for the hottest year on record. Records date back to 1880.

NOAA climate scientists Jake Crouch said the new data “just affirms what we already know: that the Earth is warming.”

The warming is accelerating and we’re seeing it this year.”

Stephen Harper Forgets Stephen Harper’s Pledge to End Fossil Fuels

If the recent frufrah over NDP candidate Linda McQuaig’s comment that “a lot of the oilsands oil may have to stay in the ground” is indicative of anything, it’s that Canada’s election cycle is in full spin. May all reasonableness and sensible dialogue and accountability be damned.

Perhaps that’s the blunt and singular reason behind the Conservative Party and Prime Minister Stephen Harper’s outrage at McQuaig’s entirely non-contentious assertion that, because of our international commitments to curtail global climate change, Canada won’t exploit the entirety of its oil reserves.

Harper accused the NDP of having a “not-so hidden agenda,” saying the party “is consistently against the development of our resources and our economy.”

That’s why they…would wreck this economy if they ever got in, and why they must never get into power in this country.”

But Harper’s reaction seems conspicuously overwrought given the Prime Minister’s own pledge, along with the other G7 nations, to phase out the use of fossil fuels by 2100.

At the time of signing — a whole two months ago — Harper said the plan would “require a transformation in our energy sectors.”

So You've Been Publicly Shamed Into Climate Action: On Harper’s Promise to End Fossil Fuels

Stephen Harper’s participation in the G7 leader’s declaration to decarbonize the global economy by 2100 was a massive headline generator in Canada, and not surprisingly so.

For a Prime Minister who has openly mocked the idea of carbon pricing, mercilessly driven an expensive (both financially and politically) energy superpower agenda and earned a reputation for pulling out of or stalling climate negotiations, the very idea of an ‘end’ to fossil fuels would seem … counterintuitive.

Although the shock of seeing Harper even touch something called ‘decarbonization’ is still reverberating, experts were quick to point out a long-term goal that shoves off concrete climate policy is likely just what Canada was hoping for.

Has Stephen Harper Helped or Hindered The Oil Industry?

At an estimated 2,700 litres, the bunker fuel spill in English Bay was relatively small — yet the stakes of that spill couldn’t be much higher.

With Enbridge and Kinder Morgan both hoping to build oil pipelines to B.C., which would significantly increase oil tanker traffic in the province’s inside coastal waters, a dramatically mishandled marine oil spill raises all sorts of questions — questions the federal government does not appear well-positioned to answer, despite its aggressive push for West Coast oil exports.

Obviously, from the oil industry’s perspective, you couldn’t have picked a worse place to have an oil spill,” Jim Stanford, economist at Unifor and founder of the Progressive Economics Forum, told DeSmog Canada.

While the federal government insisted its response was “world-class,” a former commander of the shuttered Kits Coast Guard station blamed the six-hour delay in even deploying a boom to contain the oil on the closure of that station in 2013 — a move that is reported to have saved the federal government at estimated $700,000 a year.

The English Bay spill, beyond being a systemic failure, has been a total PR disaster.

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