Message From the Editor

It’s been a wild week.

A Saudi-Russia price dispute, on top of impacts from the novel coronavirus, has sent oil prices plummeting and financially troubled U.S. shale companies scrambling. Sharon Kelly breaks down how this turmoil reveals America’s economic vulnerability from relying on a shaky shale industry.

But even with this turmoil, Nick Cunningham writes, companies like ExxonMobil are still drilling away in West Texas’ Permian Basin — and as new data show — the industry’s rampant flaring problem is leading to huge increases in toxic air pollution levels.

And despite the U.S. natural gas industry’s struggles, the massive bipartisan energy bill currently stalled in the Senate would fast-track exports of fracked gas, Steve Horn reports, as well as offer huge subsidies for “clean coal” efforts.

Have a story tip or feedback? Get in touch: editor@desmogblog.com.

Thanks,
Brendan DeMelle
Executive Director

Stock Market Turmoil Undermines Claimed Energy Dominance Benefits of US Shale Drilling

— By Sharon Kelly (9 min. read) —

Oil prices collapsed today amid falling energy demand and the global response to the novel coronavirus outbreak, as the number of confirmed COVID-19 cases worldwide reached over 113,000. On Friday, talks disintegrated inside the so-called OPEC+ alliance, which includes Organization of Petroleum Exporting Countries (OPEC) as well as non-OPEC members like Russia.

This breakdown kicked off a global oil price war that left Wall Street reeling on Monday, threatening the already troubled U.S. shale oil and gas industry and challenging the resilience of the Trump administration's “energy dominance” theory that argues domestic shale oil production benefits national security and insulates the U.S. against the actions of other countries. Instead, relying on a shaky shale industry may have left the U.S. economy more vulnerable during times of crisis.

The Future of Exxon and the Permian’s Flaring Crisis

— By Nick Cunningham (8 min. read) —

On March 5, there was a sense of drama and tension unlike in years past as ExxonMobil’s top executives gathered for their annual Investor Day presentation, a highly anticipated event where the oil major lays out its plans for the next few years in an effort to woo investors.

Long a darling of Wall Street, that day the oil major’s share price had fallen to a 15-year low. Battered by a volatile oil market and increasing scrutiny over the climate crisis, investors wanted answers on how Exxon planned on dealing with the shifting landscape.

The North American Natural Gas Industry Is Struggling—Here's Why

— By Justin Mikulka (7 min. read) —

Last year, the financial prospects for the North American natural gas market were looking grim, as nervous investors started pulling back and producers announced big spending cuts and layoffs.

Today, the challenges facing the gas industry here have only worsened, even for LNG exports, its much-vaunted savior.

For example, a year ago, Chesapeake Energy — a leading producer of natural gas in the U.S. — was showing signs of financial stress and its stock price was near an all-time low of $2.60. The stock is now worth less than $0.20 a share.

Delayed Senate Energy Bill Promotes LNG Exports, 'Clean Coal' and Geoengineering

— By Steve Horn (7 min. read) —

The huge bipartisan energy bill currently stalled in the Senate would fast-track exports of fracked gas, offer over a billion dollars in subsidies to “clean coal” efforts and make available hundreds of millions in tax dollars for a geoengineering pilot project.

Called the American Energy Innovation Act, the 600-page bill is a compilation of 50 bills previously introduced by members of Congress. It appeared destined for quick passage until hitting a roadblock on amendment language calling for regulations on the globe-warming hydrofluorocarbons used in refrigerators and air conditioners. The legislation failed to gather the majority support needed to close debate on the bill in a March 9 vote.

Oil Industry Front Group Launches Latest Attack on Electric Vehicle Tax Credit in Senate Energy Bill

— By Dana Drugmand (4 min. read) —

As this week the U.S. Senate tries to advance stalled bipartisan energy legislation, the American Energy Alliance (AEA) last week announced its latest initiative opposing any tax credit extension for electric vehicles (EV) in that bill.

Through a series of digital ads, the group, which receives a substantial share of its donations from an oil refinery trade group, is calling on Senate Republicans to squash a proposed amendment expanding the number of vehicles eligible for the credit.

In Senate Hearing, Economic Experts Warn Climate Crisis Could Spur Financial Crash Like 2008

— By Dana Drugmand (6 min. read) —

Could the climate crisis precipitate a financial crash akin to or even greater than the one in 2008? With markets currently in turmoil due to the coronavirus pandemic, experts testified Thursday that there is high risk for an even larger economic crisis absent urgent climate policy.

A panel of economic experts brought this message to a handful of senators on Capitol Hill during a March 12 hearing convened by the Senate Democrats’ Special Committee on the Climate Crisis. This hearing on the economic risks of climate change delivered a clear warning that continued inaction on climate will result in enormous economic and societal consequences.

‘Fossil Fuel Companies Knew’: Honolulu Files Lawsuit Over Climate Impacts

— By Dana Drugmand (4 min. read) —

Hawaii has officially joined the fight to hold fossil fuel companies accountable for the climate crisis. On Monday the City of Honolulu filed a lawsuit against 10 oil and gas companies, seeking monetary damages to help pay for costs associated with climate impacts like sea level rise and flooding.

The lawsuit, filed in Hawaii state court, is based on claims of nuisance, failure to warn, and trespass and alleges that the climate impacts facing the city stem from the oil companies’ decades-long campaign to mislead policymakers and the public on the dangers of fossil fuels.

Oregon Republicans Flee Climate Legislation for the Second Time in Less Than 1 Year

— By Olivia Rosane, EcoWatch (3 min. read) —

Oregon's Republican Congresspeople have once again scuppered attempts to pass a climate change bill, by running away.

In June of 2019, Oregon Republican Senators refused to show up to work in order to deny the Senate a quorum to vote on a cap-and-trade bill that had passed the House. Some even fled the state to avoid being forced to return. That standoff ended when Senate Democrats said they did not have enough votes for the bill.

This time, Republicans from both the House and Senate refused to attend sessions, and their actions brought Oregon's 2020 legislative session to a close three days early Thursday, Oregon Public Broadcasting reported. This killed more than 100 bills and raised questions about the future of the democratic process in Oregon and across the country.

From the Climate Disinformation Database: Naomi Seibt

Naomi Seibt is a 19-year-old German YouTube “influencer” who has been described by climate science deniers as the “anti-Greta,” in reference to Swedish environmental activist Greta Thunberg. Seibt joined the Heartland Institute's Arthur B. Robinson Center on Climate and Environmental Policy in February 2020 in order to spread her message. She has said, “CO2 emissions are not actually harmful to the planet.” While Seibt has denied being a member of the far-right group Alternative for Germany (AfD), some reports suggest she has been a member of the party's youth wing, as reported at The Independent.
Read the full profile and browse other individuals and organizations in our Climate Disinformation Database or our new Koch Network Database.