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.
Across Canada’s north, diesel has long been the primary mode of providing year-round electricity to remote communities — but with the advent of small-scale renewables, that’s about to change.
Northern communities were already making strides toward a renewable energy future, but with $400 million committed in this year’s federal budget to establish an 11-year Arctic Energy Fund, energy security in the north has moved firmly into the spotlight.
“This level of support shows positive commitment from the Canadian government on ending fossil fuel dependency in Indigenous communities and transitioning these communities to clean energy systems,” said Dave Lovekin, a senior advisor at the Pembina Institute.
The B.C. government is subsidizing the LNG industry to the tune of hundreds of millions of dollars — and British Columbians are going to pay the price, according to a new report by Sierra Club B.C.
The report, Hydro Bill Madness: The BC Government Goes For Broke With Your Money, lays out the impact of tax breaks, subsidies and reduced electricity rates negotiated by industry.
“Power subsidies to even just two or three of the proposed LNG plants could amount to hundreds of millions of dollars per year,” reads a press release accompanying the report.
Two LNG export terminals have been approved in B.C. — Petronas’ Pacific Northwest LNG on Lelu Island near Prince Rupert and the Woodfibre LNG plant in Howe Sound near Squamish. Another 18 are proposed.
Both companies have been major donors to the B.C. Liberal party, which has ruled the province for 16 years and faces an election on May 9.
Malaysian-owned Pacific Northwest LNG donated more than $18,000 to the B.C. Liberals since 2014, while Indonesian-based Woodfibre has found itself in the midst of a growing scandal over illegal donations.
The Alberta Energy Regulator — responsible for regulating more than 430,000 kilometres of pipelines in the province — has finally started to try to clean up its image.
In the last two weeks of February, the agency launched a “pipeline performance report” that graphs recent pipeline incidents, it levelled a $172,500 fine against Murphy Oil for a 2015 spill that went undetected for 45 days and it shut down all operations by the notoriously uncooperative Lexin Resources, including 201 pipelines.*
But critics suggest there are major systemic flaws in the Alberta Energy Regulator (AER) that still need to be addressed if pipeline safety is to be taken seriously.
“It’s absolutely ridiculous,” says Mike Hudema, climate and energy campaigner for Greenpeace Canada. “You’re talking about a spill that went undetected for 45 days. And the company was fined an amount that they could likely make in less than an hour. That doesn’t send any message to the company. It definitely doesn’t send any message to the industry. And it doesn’t reform company behaviour.”
The federal government has committed $25 million over five years to funding Indigenous guardian programs.
The news, announced on Wednesday in the federal budget, marks the first time the government has ever financially supported the community-run programs, which work to monitor ancestral territories, enforce Indigenous laws, conduct scientific research and increase cultural knowledge. There are currently about 30 existing Indigenous Guardians programs across Canada.
However, the $25 million commitment represents only five per cent of what was requested by the Indigenous Leadership Initiative, which has been leading the charge to attain federal funding for 1,600 guardians and associated costs.
“This budget commitment acknowledges the leadership of Indigenous Peoples in determining the future of our lands,”said Ovide Mercredi, a senior advisor with the Indigenous Leadership Initiative.
While the investment will not enable new guardian programs to be established immediately, the seed funding will help develop a national network and prepare indigenous nations and communities to launch their own indigenous guardians programs, according to a press release from the Indigenous Leadership Initiative.
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.
But experts say the reality has more to do with a broader economic shift that’s made oilsands uneconomical — for the time being at least.
A little known federal plan to adopt a clean fuel standard could cut Canada’s emissions by as much as Ontario’s coal phase-out (North America’s single largest emissions reduction initiative) — if done right.
The clean fuel standard, announced last November, will require fuel suppliers to decrease the carbon footprint of the fuels they sell in Canada.
But unlike similar regulations in British Columbia and California, which target transportation fuels only, the federal government is considering using the clean fuel standard to also target emissions from fuels used in buildings and industrial processes, such as heating oil and petroleum coke.
“Gas, solids, liquids, whatever. If it is a fossil fuel, it is going to be subject to this standard,” Clare Demerse, policy advisor at Clean Energy Canada, told DeSmog Canada. “That is a really … powerful signal. All fossil fuels in Canada have to improve their carbon performance.”
“This is the biggest challenge as we have at the moment as a company,” Ben van Beurden, chief executive of oil giant Shell, said recently. “The fact that societal acceptance of the energy system as we have it is just disappearing.”
Speaking at the annual CERAWeek energy conference in Houston on March 9, van Beurden described the growing tensions between his industry, which has created our fossil fuel dependent energy system, and the public, which is demanding a switch to clean energy: “I do think trust has been eroded to the point where it starts to become a serious issue for our long-term future.”
The world’s largest oil companies are increasingly faced with public pressure to do something about their impact on climate change. And increasingly we’re seeing their chief executives responding. The question is though, how much is for real and what's just greenwash?