Political Activities of the Oil & Gas Industry Seen Nationwide

by Duane Nichols on April 23, 2020

There is much more to learn on this story ....

Oil and gas industry is exploiting a crisis

Essay by Harv Teitelbaum, The Pueblo Chieftain – Pueblo, CO, April 9, 2020

These are difficult times. Most of us are sacrificing to protect ourselves, our families and our communities from COVID-19. Unfortunately, there are others who are using this crisis as cover to further their own exploitative agendas.

According to Associated Press reports, the oil and gas industry approached the Environmental Protection Agency, seeking easing of enforcement on environmental protection rules in recognition of the industry’s supposed virus-related staffing issues. But Trump’s EPA, run by a revolving door of former industry officials, went far beyond relaxing a few rules.

It suspended the issuance of fines and other penalties companies might incur for failure to report or monitor the release of toxic pollutants. In the words of former Barack Obama-era official Gina McCarthy, this latest gift to the fossil fuel industry is “an open license to pollute.”

Besides ensuring unhindered continuation of its polluting and climate-destroying emissions, the oil and gas industry has been busy on other fronts. While we’ve been self isolating, sanitizing and social distancing, the industry stealthily has approached Republican legislators in conservative states and enlisted them in criminalizing citizen protests against oil and gas operations, protests that inconveniently bring attention to how dirty and toxic oil and gas development is to our families’ health and future.

Within the span of a few days in mid-March, they were successful in passing felony anti-protest laws in Kentucky, South Dakota and West Virginia.

The industry, and the Trump administration, are using the current crisis, a crisis worsened by the president’s own inaction, to first designate oil and gas facilities “critical infrastructure” and to then use that designation to rationalize these free speech-chilling statutes.

By criminalizing any peaceable assembly that may be construed as “impairing” or “interrupting” operations and by making any perceived damage to property more than $1,000 a felony, the industry and its political cronies again have successfully sold out our constitutional rights for fossil fuels’ profits, pollution and domination of our democracy, all while our attention is focused elsewhere.

Why is this important now? Perhaps you agree that the industry should be given free rein at this vulnerable time. Well, here a few things to consider:

Fracking in northern Colorado is the primary driver of our ultra high levels of ozone. These levels, which exceed allowable federal standards, are both a primary driver of respiratory illnesses such as asthma and an immune system suppressant.

This makes those experiencing respiratory distress, particularly the elderly and the immuno-compromised, more susceptible to the severest effects of COVID-19.

There’s more. According to recent studies, Earth’s glaciers and permafrost, thawing as a result of continued fossil fuel production and use, confine multiple species of ancient bacteria and viruses, many of which could be released into our environment with potentially tragic results.

This thawing, according to one Tibetan glacier study’s authors, “will release glacial microbes and viruses that have been trapped and preserved for tens to hundreds of thousands of years.” Not only ancient microbes, but relatively recent ones that we thought we had eradicated, such as smallpox, may be poised for release from the ice and permafrost.

One last consideration: COVID-19, along with other recent epidemic diseases such as SARS, Ebola and AIDS, are thought to be zoonotic in origin; that is, they transferred from animals to humans. In response to climate change, we are seeing more people in environmentally stressed locales shift to over-reliance on their local fauna resources for basic survival needs, increasing the chances for these inter-species transfers.

Meanwhile, oil and gas agents in Colorado and neighboring states haven’t been idle. They also heard the industry call to get moving on its schemes. The industry, fearing that laws such as Colorado’s Senate Bill 181 might lead to a surge in municipalities banning fracked “natural” gas in homes and buildings, is pushing for laws outlawing such bans.

A new law in Arizona prohibits cities from restricting energy “choices” and an initiative to do the same is in the works for the November ballot right here in Colorado. This is just one backstab of a planned multi-pronged industry assault on the health and future of Coloradans (and people everywhere) for the upcoming ballot and legislative sessions.

Manipulators and opportunists in our society always have taken advantage of difficult times to rationalize away our rights, health and futures, enlisting the morally compromised among officials and politicians in their efforts. But as President Dwight D. Eisenhower said: “The opportunist thinks of me and today. The statesman thinks of us and tomorrow.”

>> Harv Teitelbaum is a retired environmental science teacher who now works with such organizations as 350Colorado, the Sierra Club and Physicians for Social Responsibility.

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Duane Nichols April 23, 2020 at 11:29 pm

Oil Extends Recovery from Selloff —- Oil & Gas News

by Bloomberg | Elizabeth Low and James Thornhill, April 23, 2020

(Bloomberg) — Oil extended its recovery from Monday’s plunge below zero but remained under intense pressure from a swelling global supply glut.

Futures in New York rose 12% to above $15 a barrel after swinging between gains and losses earlier. Already inundated with bearish signals, the market shrugged off data released Wednesday showing U.S. crude stockpiles rising to a three-year high and petroleum demand at a record low. An order by President Donald Trump authorizing the Navy to destroy any Iranian gunboats that harass American ships may have lent some support.

Prices near or below zero are expected to persist until production drops to a level that will offset the unprecedented collapse in demand caused by the coronavirus. ICE Futures Europe Ltd. confirmed on Tuesday night that it has taken steps to prepare for negative Brent pricing. Meanwhile, oil traders are rewriting their risk models to accommodate potentially limitless declines.

OPEC+’s deal to slash daily production by about 10 million barrels from May is proving insufficient to offset demand losses that could be as high as 30 million barrels a day. In the U.S., the world’s biggest oil producer, operators have started shutting wells and halting drilling, steps that could cut output by 20% and leave thousands of workers unemployed.

“While some may see negative WTI pricing earlier this week as a quirk of the futures market, it’s an ominous sign,” said Victor Shum, vice president of energy consulting at IHS Markit. It “reflects brutal market forces that are forcing supply to adjust to a much lower level of world oil demand,” he said.

West Texas Intermediate for June delivery rose 12% to $15.38 a barrel on the New York Mercantile Exchange as of 7:36 a.m. in London. The May contract plunged to as low as -$40.32 on Monday.

Brent for June settlement climbed 9.3% to $22.26 a barrel on the ICE Futures Europe exchange. It advanced 5.4% in the previous session after falling to a 21-year low earlier. Dated Brent, a reference for almost two-thirds of the world’s physical flows, was assessed at $14.21 a barrel Wednesday, compared with $13.24 the day before, according to price reporting service S&P Global Platts.

U.S. crude stockpiles rose 15 million barrels to 518.6 million, the highest in almost three years, the Energy Information Administration reported. Inventories at the storage hub at Cushing, Oklahoma swelled by 4.8 million barrels to 59.7 million, taking it closer to its maximum capacity of around 76 million barrels.

As onshore tanks fill, demand for tankers to store oil at sea is surging. There’s currently around 34 million barrels of crude oil in floating storage, with another 45 million to be loaded onto ships before the end of the month, according to Rahul Kapoor, head of commodity analytics and research at IHS. The maximum capacity for floating storage is around 190 million barrels at the moment, he said.

Oil markets are also having to grapple with a wave of volatility spurred by exchange-traded funds. The United States Oil Fund said it may roll more of its WTI contracts forward due to extraordinary market conditions, while the futures division of brokerage INTL FCStone Financial Inc. is limiting the ability of some clients to enter into new trades in the most active oil benchmarks.

Asian retail investors were also caught out by the WTI’s collapse on Monday. From Beijing to Seoul to Mumbai, the oil-tracking funds that offered cheap entry for the layperson suffered substantial losses. That’s led to several Chinese banks suspending opening new positions on crude oil products.

by Bloomberg | Elizabeth Low and James Thornhill

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