capital blight

By Climate Nexus - EcoWatch, April 19, 2021

Plugging and capping abandoned and orphaned oil and gas wells in Central Appalachia could generate thousands of jobs for the workers and region who stand to lose the most from the industry's inexorable decline.

According to a new report from the Ohio River Valley Institute, just four states (Ohio, West Virginia, Pennsylvania, and Kentucky) account for at least 538,000 unplugged abandoned oil and gas wells, though that number is almost certainly low.

The first oil well in the U.S. was drilled in Pennsylvania before the Civil War and the timeline of the region's oil and gas production contributes to its disproportionate number of orphaned wells.

Among other toxic pollution released from orphaned wells, Central Appalachian wells dumped 71,000 metric tons of methane — an extremely potent heat trapping gas — into the atmosphere every year.

The report comes as the Biden administration works to allay worries in a region still tied to the fossil fuel industry.

President Biden's infrastructure plan includes $16 billion for plugging and remediating orphaned oil and gas wells and abandoned mines.

By Elizabeth Perry - Work and Climate Change Report, April 19, 2021

Two new reports expose Canada’s continuing financial support of the fossil fuel industry and call for a phase-out. These appeared in the same week as the federal government reported Canada’s latest National Inventory of Emissions to the United Nations’ UNFCC, showing that the oil and gas industry is the top source of carbon emissions in Canada.

The first report, by Environmental Defence, is Paying Polluters: Federal Financial Support to Oil and Gas in 2020 , released on April 15. It estimates that the government has provided or promised at least $18 billion to the oil and gas sector in 2020 alone, including $3.28 billion in direct subsidy programs and $13.47 billion in public financing. Paying Polluters decries the lack of transparency – especially for funding through Export Development Canada – but nevertheless attempts to list the tax subsidies and direct spending programs, in an Appendix at the end of the report. In addition to obvious subsidies, the tally includes loans for pipeline construction, research into new technologies for cleaner processes, job subsidies for reclamation of oil wells, and even policing costs for pipeline construction – think $13 million taxpayer dollars paid to the Royal Canadian Mounted Police to protect the construction site of the Coastal GasLink pipeline.

Environmental Defence concludes with five recommendations, including a call for greater transparency, and for “a roadmap to achieve Canada’s commitment to phase out inefficient fossil fuel subsidies before 2025, and shift these investments and public finance towards supporting a path to resilient, equitable zero-carbon societies.” It should be noted that the government first pledged to phase out these subsidies in 2009. The report is summarized, with reactions, by Sarah Cox in The Narwhal, on April 16.

A second report, Correcting Canada’s “One-eye shut” Climate Policy, was released on April 16 by the Cascade Institute. It summarizes Canada’s history of fossil fuel production, and refutes those who argue that we are a small country whose emissions don’t compare to those of China or the U.S. Calling on Canada to accept its global responsibility, the authors state that “Canada’s 2021-2050 oil and gas production would exhaust about 16 percent of the world’s remaining carbon budget. Canada is indeed a “carbon bomb” of global significance.” This is the first of many hard-hitting, frank statements in the report, including a highly critical discussion of the “fool’s gambit” of hydrogen production, and an assessment that “A highly resourced and well-organized “regime of obstruction” has developed in Canada to block effective climate action and ensure increased fossil fuel extraction.”

Edited by Lucia Amorelli, Dylan Gibson, Tamra Gilbertson, the Indigenous Environmental Network, et. al. - Various Organizations (see below), April, 2021

Authored by grassroots, veteran organizers, movement strategists and thought leaders from across our climate and environmental justice movements, the third edition of Hoodwinked in the Hothouse is an easy-to-read, concise-yet-comprehensive compendium of the false corporate promises that continue to hoodwink elected officials and the public, leading us down risky pathways poised to waste billions of public dollars on a host of corporate snake-oil schemes and market-based mechanisms. These false solutions distract from the real solutions that serve our most urgent needs in an alarming climate justice moment of no-turning-back. By uncovering the pitfalls and risky investments being advanced by disaster capitalists to serve the needs of the biggest polluters on the planet, Hoodwinked also provides a robust framework for understanding the depth of real solutions and how they should be determined. As a pop-ed toolbox, Hoodwinked promises to be instructive for activists, impacted communities and organizers, while providing elected officials with critical lenses to examine a complex, technocratic field of climate change policy strategies, from local to national and international arenas.

The second version of Hoodwinked in the Hothouse was released in 2009 as a pop-ed zine collaboratively produced by Rising Tide North America and Carbon Trade Watch with the Indigenous Environmental Network and a number of allied environmental justice and climate action organizers leading up to the 2009 United Nations climate conference in Copenhagen (COP 15). During that mobilization and in years since, this zine has played a major role in raising awareness across climate movements around the world – both helping frontline organizers in their fights against destructive energy proposals and shifting policy positions of large non-governmental organizations.

With the proliferation of false solutions in the Paris Climate Agreement, national and subnational climate plans, the third edition of Hoodwinked in the Hothouse aims to provide a resource that dismantles the barriers to building a just transition and a livable future.

Includes contributions from the following organizations:

• Biofuelwatch
• Energy Justice Network
• Global Alliance for Incinerator Alternatives
• ETC Group
• Global Justice Ecology Project
• Indigenous Climate Action
• Indigenous Environmental Network
• Just Transition Alliance
• La Via Campesina
• Movement Generation Justice and Ecology Project
• Mt. Diablo Rising Tide
• Mutual Aid Disaster Relief
• North American Megadam Resistance Alliance
• Nuclear Information and Resource Service
• Rising Tide North America
• Shaping Change Collaborative

Read the text (PDF).

By Nicholas Kusnetz - Inside Climate News, April 2, 2021

When Congress looked to prop up a tanking economy and stanch its hemorrhaging of employment as the pandemic spread last year, the oil industry was among those that sought relief. Now, a new analysis shows that dozens of fossil fuel companies received billions of dollars in tax benefits in the coronavirus relief package, but slashed tens of thousands of jobs anyway.

While Congress ended up sending billions in direct loans to small and large businesses, a significant portion of CARES Act benefits came in the form of changes to the tax code. At least 77 fossil fuel companies took advantage of those to claim a total of $8.2 billion in benefits last year, even as they cut nearly 60,000 jobs, according to an analysis published Friday by BailoutWatch, a nonprofit supported by Rockefeller Philanthropy Advisors.

Chris Kuveke, a BailoutWatch analyst, said the data shows that the aid to the industry failed to deliver the benefits that Congress had intended.

“These companies did not use that money they received through the CARES Act to maintain payroll,” he said.

As oil prices collapsed last year, some energy companies began lobbying Congress and the federal government for various forms of relief. Occidental Petroleum, for example, enlisted its employees to send letters to members of Congress to ask that they “provide liquidity” to the energy industry, according to Bloomberg News.

Among the various forms of stimulus included in the final relief package were changes to the tax code that proved beneficial to the oil industry.

For example, companies for years were allowed to “carry back” their losses in one year to offset profits from previous years to get a retroactive tax refund. That allowance helped companies with volatile earnings, but it was eliminated by the 2017 tax cuts signed into law by President Donald Trump. The change was one of the few provisions of the tax overhaul that modestly increased the tax burden for corporations, even as the bill overall drastically reduced corporate taxes, said Thornton Matheson, a senior fellow at Urban-Brookings Tax Policy Center.

The CARES Act eliminated that change, and even expanded on the original provision, allowing companies to carry any losses incurred from 2018-2020 back five years, instead of the two years allowed before the 2017 tax bill. Matheson said the oil and gas industry was among a few likely to benefit most from that part of the CARES Act, because its earnings can swing wildly with commodity prices.

Thus the change allowed companies to stretch losses from 2018 back to 2013, when oil prices were above $100 a barrel and profits for some of them were sky high (prices fell sharply in late 2014, and have not fully recovered).

Marathon Petroleum, a major refiner, benefited the most, the analysis found, claiming $2.1 billion in tax benefits, according to the BailoutWatch analysis. The company cut nearly 2,000 jobs last year, not counting those in its retail business.

Marathon disputed the figure, saying that less than 30 percent of its $2.1 billion tax benefit was due to the CARES Act provisions. However, its annual securities filing said that based on the carryback “as provided by the CARES Act, we recorded an income tax receivable of $2.1 billion” to reflect the company’s estimate of the refund it expected to receive in its 2020 tax return.

Marathon spokesman Jamal T. Kheiry said some of the layoffs were associated with the idling of refineries, and added that the company was generous with employees who lost their jobs. “To help affected employees transition, we provided severance, bonus payments, extended healthcare benefits at employee rates, job placement assistance, counseling and other provisions,” he said.

NOV, a drilling company, cut nearly 8,000 workers, more than 20 percent of its employees, despite receiving a $591 million tax benefit. The company did not respond to a request for comment.

Occidental collected $195 million and cut 2,600 jobs.

Eric P. Moses, a spokesman for Occidental, said the job cuts were associated with its 2019 acquisition of Anadarko Petroleum “and completed prior to the COVID pandemic and Congress’ passage of the CARES Act.”

By Benjamin Hitchcock Auciello, et. al. - Earthworks, March 31, 2021

It is critical that the clean energy economy not repeat the mistakes of the dirty fossil fuel economy that it is seeking to replace. The pivot from internal combustion engines towards electric vehicles provides an unprecedented opportunity to develop a shared commitment to responsible mineral sourcing. We can accelerate the renewable energy transition and drive improvements in the social and environmental performance of the mining industry by reducing overall demand for new minerals, increasing mineral recycling and reuse, and ensuring that mining only takes place if it meets high environmental, human rights and social standards.

This report is designed to inform downstream battery metal users of key environmental, social, and governance issues associated with the extraction and processing of the three battery metals of principal concern for the development of electric vehicles and low-carbon energy infrastructure—lithium, cobalt and nickel—and to offer guidance on responsible minerals sourcing practices. This report reflects and summarizes some of the key concerns of communities impacted by current and proposed mineral extraction in hotspots around the world: Argentina, Chile and the United States for lithium, Papua New Guinea, Indonesia and Russia for nickel, and the Democratic Republic of Congo for cobalt.

Read the text (PDF).

By Tara Lohan - The Revelator, March 29, 2021

Mined lands reclaimed for biking trails, office parks — even a winery. Efforts like these are already underway in Appalachia to reclaim the region’s toxic history, restore blighted lands, and create economic opportunities in areas where decades-old mines haven’t been properly cleaned up.

The projects are sorely needed. And so are many more. But the money to fund and enable them remains elusive.

Mining production is falling, which is good news for tackling climate change and air pollution, but Appalachia and other coal states are also feeling the economic pain that comes with it. And that loss is more acute on top of pandemic-related revenue shortfalls and the mounting bills from the industry’s environmental degradation.

Local leaders and organizations working in coal communities see a way to flip the script, though. The Revelator spoke with Rebecca Shelton, the director of policy and organizing for Appalachian Citizens’ Law Center in Kentucky, about efforts focusing on one particular area that’s plagued coal communities for more than 50 years: cleaning up abandoned mine lands.

Shelton explains the history behind these lands, the big legislative opportunities developing in Washington, and what coal communities need to prepare for a low-carbon future.

By Patrick Mazza - The Raven, March 29, 2021

Helped by a high tide, MV Ever Given was freed from the Suez Canal shallows yesterday at 3pm local time after two heavy-pull tugs arrived and thousands of tons of material were dredged away. 

After a week in which the massive container ship was lodged between two banks and under maximum stress - with maritime experts worrying it could break at the sagging center - the stern was freed early Sunday and the bow later in the day. Finally coming on the scene Sunday were tugs capable of anchoring to the bottom and exerting pulling force four times or more greater than most of the tugs on site. By this morning the ship had arrived at Great Bitter Lake mid-canal where the hull could be examined for cracks. Bow and stern compartments had been taking on water.

Now the questions will come. Why did the Suez Canal Authority not have rescue tugs on station for incidents like this? How prepared were authorities for the emergence of the new mega-ships, capable of carrying 20,000 and more containers?

In a broader sense, the Suez crisis shines a light on what maritime historian Sal Mercagliano, a merchant marine veteran, calls “a hidden industry” and its impacts on waterways and ports as well as port communities and workers. A powerful shipping industry has been dictating terms, based on its own economic calculations, and shunting costs off to the public. Taxpayers have been paying for expensive dredging and port upgrades. Communities have been subject to increased pollution and accidents from drayage trucks hauling containers, with drivers working under brutal conditions. And the global economy just suffered $10 billion in blocked trade each day for the last seven. It’s a large topic beyond the scope of a single post, so I will try to hit the high points. 

By Ruth Santiago, Sabrina Fernandes, Julie Michelle Klinger, Thea Riofrancos, and Daniel Aldana Cohen - NACLA Report, March 26, 2021

By Aaron Gordon - Vice, March 22, 2021

Just before 5 a.m. on August 2, 2017, Alice Murray was fast asleep when her entire house shook, almost as if a freight train had crashed into the block, she told the Cumberland Times-News.

That's exactly what happened.

About 30 yards away, just off Cleveland Street in Hyndman, Pennsylvania, 33 cars in a 178-car freight train belonging to CSX Corporation derailed. The train crashed into one house and damaged two others. The entire town had to be evacuated. Miraculously, no one was killed. 

As scary as the derailment in Hyndman was, it could have been much worse. Of the 178 cars on that train, 70 contained hazardous material, including 15 of the derailed cars, according to a National Transportation Safety Board (NTSB) investigation. Luckily, just three of them—which contained molten asphalt, molten sulfur, and propane—either leaked or lit on fire. 

The town was evacuated because molten asphalt, if released, can create vapors that, according to the NTSB, are an "explosive mixture with air." Some of the other derailed cars contained liquified petroleum gas, and one car that did not derail contained Sodium Chlorate, which is potentially poisonous to inhale.