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      Big oil could bring US gas prices down but won’t – so hit it with a windfall tax | Robert Reich

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      Big oil could bring US gas prices down but won’t – so hit it with a windfall taxRobert ReichIn the US, in times of crisis, the poor pay the price and the rich cash in. Democrats know it doesn’t have to be this way This morning I filled my car with gas, costing almost six dollars a gallon. My car is a Mini Cooper I bought years ago, partly because it wasn’t a gas-guzzler. Now it’s guzzling dollars.Putin and Trump have convinced me: I was wrong about the 21st century | Robert ReichRead moreWhen I consider what’s happening in Ukraine, I say what the hell. It’s a small sacrifice.Yet guess who’s making no sacrifice at all – in fact, who’s reaping a giant windfall from this crisis?Big oil has hit a gusher. Even before Vladimir Putin’s war, oil prices had begun to rise due to the recovery in global demand and tight inventories.Last year, when Americans were already struggling to pay their heating bills and fill up their gas tanks, the biggest oil companies (Shell, Chevron, BP, and Exxon) posted profits totaling $75bn. This year, courtesy of Putin, big oil is on the way to a far bigger bonanza.How are the oil companies using this windfall? I can assure you they’re not investing in renewables. They’re not even increasing oil production.As Chevron’s top executive, Mike Wirth, said in September, “We could afford to invest more” but “the equity market is not sending a signal that says they think we ought to be doing that.”Translated: Wall Street says the way to maximize profits is to limit supply and push up prices instead.So they’re buying back their own stock in order to give their stock prices even more of a boost. Last year they spent $38bn on stock buybacks – their biggest buyback spending spree since 2008. This year, thanks largely to Putin, the oil giants are planning to buy back at least $22bn more.Make no mistake. This is a direct redistribution from consumers who are paying through the nose at the gas pump to big oil’s investors and top executives (whose compensation packages are larded with shares of stock and stock options).Though it’s seldom discussed in the media, lower-income earners and their families bear the brunt of the burden of higher gas prices. Not only are lower-income people less likely to be able to work from home, they’re also more likely to commute for longer distances between work and home in order to afford less expensive housing.Big oil companies could absorb the higher costs of crude oil. The reason they’re not is because they’re so big they don’t have to. They don’t worry about losing market share to competitors. So they’re passing on the higher costs to consumers in the form of higher prices, and pocketing record profits.It’s the same old story in this country: when crisis strikes, the poor and working class are on the frontlines while the biggest corporations and their investors and top brass rake it in.What to do? Hit big oil with a windfall profits tax.The European Union recently advised its members to seek a windfall profits tax on oil companies taking advantage of this very grave emergency to raise their prices.Democrats just introduced similar legislation here in the US. The bill would tax the largest oil companies, which are recording their biggest profits in years, and use the money to provide quarterly checks to Americans facing sticker shock as inflation continues to soar.It would require oil companies producing or importing at least 300,000 barrels of oil per day to pay a per-barrel tax equal to half the difference between the current price of a barrel and the average price from the years 2015 to 2019.This is hardly confiscatory. Those were years when energy companies were already recording large profits. Quarterly rebates to consumers would phase out for individuals earning more than $75,000 or couples earning $150,000.Republicans will balk at any tax increase on big oil, of course. They and the coal-industry senator Joe Manchin even tanked the nomination of Sarah Bloom Raskin to the Fed because she had the temerity to speak out about the systemic risks that climate change poses to our economy.But a windfall profits tax on big oil is exactly what Democrats must do to help average working people through this fuel crisis. It’s good policy, it’s good politics and it’s the right thing to do.
      Robert Reich, a former US secretary of labor, is professor of public policy at the University of California at Berkeley and the author of Saving Capitalism: For the Many, Not the Few and The Common Good. His new book, The System: Who Rigged It, How We Fix It, is out now. He is a Guardian US columnist. His newsletter is at robertreich.substack.com
      TopicsOil and gas companiesOpinionOilCommoditiesEnergy industryUkraineRussiaUS domestic policycommentReuse this content More

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      Kyrsten Sinema courted Republican fossil fuel donors with filibuster stance

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      Kyrsten Sinema courted Republican fossil fuel donors with filibuster stance Houston fundraiser reveals Democrat’s aggressive efforts to capitalize on her Senate power on matters ranging from climate to taxes With a crucial vote pending over filibuster rules that would have made strong voting rights legislation feasible, Democratic senator Kyrsten Sinema flew into Houston, Texas, for a fundraiser that drew dozens of fossil fuel chieftains, including Continental Resources chairman Harold Hamm and ConocoPhillips chief executive Ryan Lance.The event was held on 18 January at the upmarket River Oaks Country Club. One executive told the Guardian that Sinema spoke for about half an hour and informed a mostly Republican crowd that they could “rest assured” she would not back any changes with filibuster rules, reiterating a stance she took several days before during a Senate speech.The Arizona senator also addressed some energy industry issues according to the executive, who added that overall he was “tremendously impressed”.The day after the Houston bash, Sinema voted against changing filibuster rules, thereby helping to thwart the voting rights bill.The Houston gusher of fossil fuel donations for Sinema from many stalwart Republican donors underscores how pivotal she has become, along with West Virginia Democratic senator Joe Manchin, in an evenly divided Senate involving high-stakes battles for Republican and fossil fuel interests.Campaign finance watchdogs say that the Houston fundraiser reveals much about Sinema’s aggressive efforts to capitalize on her Senate power on matters ranging from climate change to taxes to the filibuster rule.“Sinema isn’t up for re-election this year, but she’s fundraising full-tilt,” Sheila Krumholz, the executive director of OpenSecrets, told the Guardian. “By her comment to oil-industry attendees last week, she clearly knew her vote to protect the filibuster would please them.”The Houston fundraiser, which was expected to raise tens of thousands of dollars for the senator’s campaign coffers, offers a stark example of how Sinema has been courting major Republican donors and special interests who, in turn, seem to be increasingly eager to help her.Sinema’s drive to rope in more big Republican donors was also apparent at a September fundraiser in Dallas at the $18m home of G Brint Ryan, a prominent Republican donor and CEO of a global consulting company, who hosted another money bash last year for Manchin.Sinema’s stance against changing filibuster rules has also won her support from other top Republican donors such as Stan Hubbard, a Minnesota billionaire broadcaster who gave her $2,900 last September, which reportedly was the first donation he made to a Democrat since 2019.Hubbard told the Guardian that her opposition to the filibuster was a crucial reason he donated, adding that it would “be terrible to get rid of the filibuster”, and that he thought voting rights were “just fine”, without passing a Democrat-backed bill to protect them.Little wonder that voting rights advocates were dismayed by Sinema’s staunch opposition to any changes with the filibuster.“We are very disappointed that Senator Sinema has put formalistic rules over protecting our democracy,” said Danielle Lang, the senior director of voting rights at the nonpartisan Campaign Legal Center.Sinema’s position on the filibuster rule has sparked anger among liberal backers such as the powerful group Emily’s List, which endorses Democratic women who support abortion rights. One week after Sinema gave a floor speech indicating that she wouldn’t support altering filibuster rules, Emily’s List publicly stated that the group would no longer endorse her.In her floor speech backing the filibuster rule, Sinema touted the need for more bipartisanship, stressing that she would not “support separate actions that worsen the underlying disease of division infecting our country”.But Sinema’s vote and speech only spurred more criticism in Arizona where the state Democratic party issued a rare censure in the wake of her continued support for the filibuster.Arizona’s Democratic party chair Raquel Teran has stated that the vote was a “result of her failure to do whatever it takes to ensure the health of our democracy”.More broadly, Democratic angst about Sinema was highlighted by a January tracking poll before her filibuster vote that showed just 8% of registered Arizona Democrats had a favorable view of the Senator.The recent poll reflects a steep drop from the 70% positive rating the Senator had in 2020. Her declining popularity also has been spurred by the senator’s voting against raising the federal minimum wage, and skipping a Senate vote to create a bipartisan commission to investigate the January 6 mob attack on the Capitol by Trump supporters.Sinema has also drawn brickbats from Democrats for her unwillingness last month to endorse the House passed Build Back Better legislation that she and Manchin were instrumental in whittling down from the measure’s original size, while accelerating their fundraising outreach to rightwing donors and lobbyists.Sinema told Democratic senators according to the New York Times that she was opposed to any tax increases in personal rates or corporate rates to pay for the bill, which included approximately $550bn for clean energy and climate change measures, a crucial part of President Joe Biden’s agenda.Leftwing Vermont senator Bernie Sanders was especially irked when both Sinema and Manchin joined all the Senate Republicans in blocking the filibuster rule change, saying that they “forced us to go through five months of discussions which have gotten absolutely nowhere”, and indicating he might support primary challengers to both senators.Veteran Arizona Republican consultant Chuck Coughlin noted that Sinema “clearly understands the electoral position she is in, and is using this opportunity to raise as much as she can in order to make challenging her a herculean task – whether she runs as a Democrat or an independent.”Coughlin’s analysis seems on target based on the very robust $4.4m that Sinema’s campaign had in the bank at the end of September.Charlie Black, a longtime Republican operative and lobbyist, added that “Sinema’s gotten a lot of support from the business community, including both Republicans and Democrats.”Still, with Democratic attacks on Sinema increasing, the odds are good that if she opts to run again in 2024 she will have a primary opponent, perhaps Congressman Ruben Gallego, who has publicly suggested he might challenge her, and knocked the senator over her filibuster vote.A group called the Primary Sinema Project that began last summer has raised at least $330,000, including $100,000 during the week after her filibuster speech.Sinema’s drive to raise big bucks early seems to be underscored by the jump last year in donations from fossil fuel interests, according to campaign finance data.Last year, Sinema hauled in $24,310 from fossil fuel donors compared with just $7,522 the year before, according to OpenSecrets.Although there’s no data yet on how much Sinema raised in Houston, a veteran fossil fuel lobbyist told the Guardian that donors at such fundraisers are often asked to pony up the maximum of $5,800 to the senator’s campaign committee, and write another check for as much as $5,000 to the senator’s leadership Pac.For Krumholz of OpenSecrets, the Houston fundraiser offers a broader message.“The timing of the fundraiser and Sinema’s filibuster-protecting vote really puts a fine point on the return on investment for her donors.”Krumholz added that the fossil fuel fundraiser “seems well timed as Congress revisits the $550bn BBB measure focused on climate change provisions, where her vote could help industry minimize new regulatory and tax burdens.”TopicsOil and gas companiesUS SenateDemocratsUS politicsOilnewsReuse this content More

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      Exxon CEO accused of lying about climate science to congressional panel

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      Climate crimesEnvironmentExxon CEO accused of lying about climate science to congressional panelCongresswoman Carolyn Maloney likens oil company bosses’ responses to those of tobacco industry at historic hearing Supported byAbout this contentChris McGrealThu 28 Oct 2021 17.05 EDTFirst published on Thu 28 Oct 2021 16.33 EDTThe chief executive of ExxonMobil, Darren Woods, was accused of lying to Congress on Thursday after he denied that the company covered up its own research about oil’s contribution to the climate crisis.For the first time, Woods and the heads of three other major petroleum companies were questioned under oath at a congressional hearing into the industry’s long campaign to discredit and deny the evidence that burning fossil fuels drove global heating. When pressed to make specific pledges or to stop lobbying against climate initiatives, all four executives declined.Joe Manchin leads opposition to Biden’s climate bill, backed by support from oil, gas and coalRead moreThe chair of the House oversight committee, Representative Carolyn Maloney, pressed Woods about statements by his predecessor, Exxon CEO Lee Raymond, who in the 1990s said the scientific evidence for climate change was “inconclusive” and that “the case for global warming is far from air tight”. In 2002, Exxon ran advertisements in the New York Times calling climate science “unsettled”.Malone put it to Woods that Exxon’s own scientists had repeatedly warned the company about the threat from burning fossil fuels as far back as the 1970s.“There is a clear conflict between what Exxon CEO told the public and what Exxon scientists were warning privately for years,” she said.Woods denied that Raymond or Exxon misled anyone.“I do not agree that there was an inconsistency,” he said.Maloney said the response reminded her of “another hearing that we had with the tobacco industry”.“They said they did not believe that nicotine was addictive. Well, it came out that they lied. Tobacco nicotine was very addictive. And now I’m hearing from you that the science that was reported publicly, where your executives were denying climate change, we know that your scientists internally were saying that it’s a reality,” she said.“So I was hoping that you would not be like the tobacco industry was and lie about this.”The heads of the American operations of the other oil companies – Shell, Chevron and BP – were also firm in resisting pressure to admit they misrepresented climate science or deceived the public.They each said that they recognised global heating was a reality and a major challenge. But the executives did not accept that their companies had failed to take it seriously or that they were undermining attempts to cut greenhouse gases by funding trade groups pouring millions of dollars into lobbying Congress against tighter environmental laws.“We accept the scientific consensus,” said Michael Wirth, the CEO of Chevron. “Climate change is real. Any suggestion that Chevron is engaged in disinformation and to mislead the public on these complex issues is simply wrong.”But Maloney accused the oil companies of continuing the cover-up, including by hiding documents. She said she would take the unusual step of issuing subpoenas to force the firms to reveal what they knew.“We need to get to the bottom of the oil industry’s disinformation campaign and with these subpoenas we will,” she said.The oil and gas industry, which spent about $100m on political lobbying last year, was strongly backed by a number of Republicans on the committee who sought to distract by denouncing Joe Biden’s energy policies.Republicans called their own witness, Neal Crabtree, who said he lost his job as a welder within three hours of Biden being sworn in as president because the Keystone pipeline was cancelled. Crabtree was used to portray Biden as colluding with China and Russia against America’s oil industry.The highest-ranking Republican on the committee, Representative James Comer, questioned the legitimacy of the investigation. He said the committee would be better off spending its time investigating the White House’s handling of inflation, illegal immigration and the US military withdrawal from Afghanistan.In a hearing meant to focus on climate misinformation, several Republican members openly questioned the urgency of the climate crisis. Representative Clay Higgins called the hearing “a threat from within” because the American way of life was built on oil.Another Republican member said Maloney owed the oil executives an apology for intruding on their right to free speech by pressing them to make a commitment that their firms will “no longer spend any money, either directly or indirectly, to oppose efforts to reduce emissions and address climate change”.None of the executives would make a direct commitment.Maloney showed the hearing a video secretly recorded by Greenpeace earlier this year of an Exxon lobbyist describing the oil giant’s backing for a carbon tax as a public relations ploy intended to stall more serious measures to combat the climate crisis.“How did Exxon respond?” asked Maloney. “Did they come clean about this shocking conduct? No. Mr Woods called Mr McCoy’s comments inaccurate and then they fired him. And they are obviously lying like the tobacco executives were.”While the oil executives largely maintained a united front, Representative Ro Khanna, a leading critic of the petroleum industry on the committee, drew out testimony that showed the European companies, Shell and BP, were working to cut production while the US firms, Exxon and Chevron, intended to increase drilling in the coming years.Wirth said that his company would raise oil production while cutting carbon admissions.The hearing also questioned the leaders of two powerful lobby groups accused of acting as front organisations for big oil, the American Petroleum Institute and the US Chamber of Commerce.Khanna noted that API was heavily funded by oil company money as it resisted the expansion of infrastructure for electric vehicles and opposed a methane fee backed by Biden, including flooding Facebook with advertisements in recent months.Khanna challenged each of the oil executives in turn to resign from API over its position on electric vehicles or to tell it to stop its opposition to a methane fee. All of them declined to do so.TopicsEnvironmentClimate crimesExxonMobilBPRoyal Dutch ShellChevronOil and gas companiesOilnewsReuse this content More

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      Joe Manchin leads opposition to Biden’s climate bill, backed by support from oil, gas and coal

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      US CongressJoe Manchin leads opposition to Biden’s climate bill, backed by support from oil, gas and coal West Virginia senator objects to bill that would steadily retire the coal industry which continues to provide ample financial support to himOliver Milman@olliemilmanWed 20 Oct 2021 06.00 EDTLast modified on Wed 20 Oct 2021 13.28 EDTIn the tumult of negotiations over the most consequential climate legislation ever proposed in the US, there is growing scrutiny of the fossil fuel industry connections of the man poised to tear down the core of the bill – the West Virginia senator Joe Manchin.Manchin, a centrist Democrat, has objected to key provisions of a multitrillion-dollar reconciliation bill that would slash planet-heating emissions and help the US, and the world, to avert catastrophic climate breakdown. In a finely balanced Senate, Democrats need all 50 of their senators to vote for the bill, with no Republicans willing to vote for the climate measures.The legislation would steadily retire the coal industry that once formed the backbone of the West Virginia economy and continues to provide ample financial support to Manchin, who has spent the past four decades as a political heavyweight in his Appalachian home state, including acting as its secretary of state, governor and now US senator.Chart showing Joe Manchin has received the largest donations across multiple energy sectorsIn the current electoral cycle, Manchin has received more in political donations from the oil and gas industry than any other senator, more than double the second largest recipient. He is also the No 1 beneficiary of donations from the coal mining sector, leads the way in money accepted from gas pipeline operators, and is sixth in the ranking of senatorial donations from electricity utilities.This industry largesse has led to accusations that the senator has been unduly influenced by the companies that have helped stoke the climate crisis. Manchin’s office did not respond to a request for comment.But Manchin’s ties to the fossil fuel industry run deeper than political donations. After initially working in his family’s furniture and carpet business, Manchin set up a coal brokerage firm called Enersystems in 1988, running it until he became a full-time politician.The majority of Manchin’s assets are in a coal brokerage firm’s stockDespite handing control of Enersystems to his son Joseph, Manchin’s links to the business have proved fruitful to the senator. His shares in Enersystems are worth between $1m and $5m, according to his latest financial disclosure document, with the senator receiving more than $5m in dividend income from the company over the past decade. The coal brokerage represents 71% of Manchin’s investment income, and about a third of his total net worth.The reconciliation bill contains a huge expansion in tax support for clean energy and electric vehicles and new curbs on methane, a potent greenhouse gas, but the core of the climate measures is something called a Clean Electricity Performance Program (CEPP). The $150bn scheme would use payments and penalties to spur utilities to phase out fossil fuels from the US electricity system over the coming decade.The program, along with the clean energy tax credits, “are the best shot we’ve had in a generation to supercharge the clean energy transition and reduce fossil fuel pollution in marginalized communities”, said Patrick Drupp, deputy legislative director of the Sierra Club.Manchin has called the bill’s spending “reckless” and said it “makes no sense” to pay utilities to increase their share of renewable energy when they are doing so already. This is despite the fact that barely any utilities across the US are adding solar, wind and other sources of clean energy at the rate envisioned by the bill to force emissions down quickly enough to stave off climate disaster.“His statement on this is demonstrably false. Utilities aren’t growing renewables that quickly, certainly not in West Virginia,” said Robbie Orvis, senior director of energy policy design at Energy Innovation. “It’s not a secret he has ties to the coal industry. One would hope anyone elected to Congress would not hold significant financial holdings in industries they would consider regulating, but that’s the system we have, unfortunately.”Recent analysis by Energy Innovation found that the CEPP is the “carbon reduction lynchpin” of the legislation, representing around a third of the emissions cuts that would come from the bill. “It’s really unfortunate that the CEPP is not on the table anymore,” said Orvis. “But this bill would still result in a huge cut in greenhouse gas emissions, it does a lot. There may be a way to fill the gaps left by CEPP.”Projected emission reductions of Build Back Better programs by 2030Joe Biden has set a goal for the US to cut its planet-heating emissions in half this decade, before zeroing them out by 2050. America is currently on track for a 17% to 25% cut in emissions by 2030, an analysis released on Tuesday by Rhodium Group found, leaving up to 2.3bn tons of emissions left to eliminate in order to meet the goal. John Larsen, director of Rhodium Group, said that with further cuts from the federal government and states, “the US’s ambitious 2030 climate target is within reach, even with a more limited policy package from Congress”. But he added: “The US and the world have little time or room for error to avoid the worst impacts of climate change.”TopicsUS CongressOil and gas companiesCoalOilUS politicsFossil fuelsEnergy industrynewsReuse this content More

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      A US small-town mayor sued the oil industry. Then Exxon went after him

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      Climate crimesClimate crisisA US small-town mayor sued the oil industry. Then Exxon went after him The mayor of Imperial Beach, California, says big oil wants him to drop the lawsuit demanding the industry pay for the climate crisisSupported byAbout this contentChris McGreal in Imperial BeachSat 16 Oct 2021 06.00 EDTSerge Dedina is a surfer, environmentalist and mayor of Imperial Beach, a small working-class city on the California coast.He is also, if the fossil fuel industry is to be believed, at the heart of a conspiracy to shake down big oil for hundreds of millions of dollars.Imperial Beach, CaliforniaExxonMobil and its allies have accused Dedina of colluding with other public officials across California to extort money from the fossil-fuel industry. Lawyers even searched his phone and computer for evidence he plotted with officials from Santa Cruz, a city located nearly 500 miles north of Imperial Beach.The problem is, Dedina had never heard of a Santa Cruz conspiracy. Few people had.“The only thing from Santa Cruz on my phone was videos of my kids surfing there,” Dedina said. “I love the fact that some lawyer in a really expensive suit, sitting in some horrible office trying to find evidence that we were in some kind of conspiracy with Santa Cruz, had to look at videos of my kids surfing.”That’s where the laughter stopped.The lawyers found no evidence to back up their claim. But that did not stop the industry from continuing to use its legal muscle to try to intimidate Dedina, who leads one of the poorest small cities in the region.The mayor became a target after Imperial Beach filed a lawsuit against ExxonMobil, Chevron, BP and more than 30 other fossil-fuel companies demanding they pay the huge costs of defending the city from rising seas caused by the climate crisis.Imperial Beach’s lawsuit alleges the oil giants committed fraud by covering up research showing that burning fossil fuels destroys the environment. The industry then lied about the evidence for climate change for decades, deliberately delaying efforts to curb carbon emissions.The city’s lawsuit was among the first of a wave of litigation filed by two dozen municipalities and states across the US that could cost the fossil-fuel industry billions of dollars in compensation for the environmental devastation and the deception.Dedina says his minority majority community of about 27,000 cannot begin to afford the tens of millions of dollars it will cost to keep at bay the waters bordering three sides of his financially strapped city. The worst of recent storms have turned Imperial Beach into an island.One assessment calculated that, without expensive mitigation measures, rising sea levels will eventually swamp some of the city’s neighbourhoods, routinely flood its two schools and overwhelm its drainage system.Imperial Beach’s annual budget is $20m. Exxon’s chief executive, Darren Woods, was paid more than $15m last year.“We don’t have a pot to piss in in this city. So why not go after the oil companies?” he said. “The lawsuit is a pragmatic approach to making the people that caused sea level rise pay for the impacts it has on our city.”InteractiveThat’s not how Exxon, the US’s largest oil company, saw it. Its lawyers noted that Imperial Beach filed its case in July 2017, at the same time as two California counties, Marin and San Mateo. The county and city of Santa Cruz followed six months later with similar suits seeking compensation to cope with increasing wildfires and drought caused by global heating.Exxon alleged that the sudden burst of litigation, and the fact that the municipalities shared a law firm specialising in environmental cases, Sher Edling, was evidence of collusion.Exxon filed lawsuits claiming the municipalities conspired to extort money from the company by following a strategy developed during an environmental conference at the Scripps Institution of Oceanography in La Jolla, 25 miles north of Imperial Beach, nine years ago.The meeting, organised by the Climate Accountability Institute and the Union of Concerned Scientists, produced a report outlining how legal strategies used by US states against the tobacco industry in the 1990s could be applied to cases against fossil fuel companies.Dedina was also targeted by one of the US’s biggest business groups at the forefront of industry resistance to increased regulation to reduce greenhouse gases, the National Association of Manufacturers, and a rightwing thinktank, the Energy & Environment Legal Institute.The manufacturing trade group was behind the efforts to obtain data from Dedina’s phone and documents in 2018. In its public disclosure request to the mayor’s office, NAM called Imperial Beach’s lawsuit “litigation based on political or ideological objections more appropriately addressed through the political process”.Exxon is attempting to use a Texas law that allows corporations to go on a fishing expedition for incriminating evidence by questioning individuals under oath even before any legal action is filed against them. The company is trying to force Dedina, two other members of Imperial Beach’s government, and officials from other jurisdictions, to submit to questioning on the grounds they were joined in a conspiracy against the oil industry.“A collection of special interests and opportunistic politicians are abusing law enforcement authority and legal process to impose their viewpoint on climate change,” the oil firm claimed. “ExxonMobil finds itself directly in that conspiracy’s crosshairs.”How cities and states could finally hold fossil fuel companies accountableRead moreA Texas district judge approved the request to depose Dedina, but then a court of appeals overturned the decision last year. The state supreme court is considering whether to take up the case.The target on Dedina is part of a wider pattern of retaliation against those suing Exxon and other oil companies.In an unusual move in 2016, Exxon persuaded a Texas judge to order the attorney general of Massachusetts, Maura Healey, to travel to Dallas to be deposed about her motives for investigating the company for alleged fraud for suppressing evidence on climate change. The judge also ordered that New York’s attorney general, Eric Schneiderman, be “available” in Dallas on the same day in case Exxon wanted to question him about a similar investigation.Healey accused Exxon of trying to “squash the prerogative of state attorneys general to do their jobs”. The judge reversed the deposition order a month later and Healey filed a lawsuit against the company in 2019, which is still awaiting trial.But similar tactics persuaded the US Virgin Islands attorney general to shut down his investigation of the oil giant.Patrick Parenteau, a law professor and former director of the Environmental Law Center at Vermont law school, said the attempt to question Dedina and other officials is part of a broader strategy by the oil industry to counter lawsuits with its own litigation.“These cases are frivolous and vexatious. Intimidation is the goal. Just making it cost a lot and be painful to take on Exxon. They think that if they make the case painful enough, Imperial Beach will quit,” he said.If the intent is to kill off the litigation against the oil industry, it’s not working. Officials from other municipalities have called Exxon’s move “repugnant”, “a sham” and “outrageous”, and have vowed to press on with their lawsuits.Dedina described the action as a “bullying tactic” by the oil industry to avoid accountability.“The only conspiracy is [that] a bunch of suits and fossil-fuel companies decided to pollute the earth and make climate change worse, and then lie about it,” he said. “They make more money than our entire city has in a year.”The city’s lawsuit claims it faces a “significant and dangerous sea-level rise” through the rest of this century that threatens its existence. Imperial Beach commissioned an analysis of its vulnerability to rising sea levels which concluded that nearly 700 homes and businesses were threatened at a cost of more than $100m. It said that flooding will hit about 40% of the city’s roads, including some that will be under water for long periods. Two elementary schools will have to be moved. The city’s beach, regarded as one of the best sites for surfing on the California coast, is being eroded by about a foot a year.Imperial Beach sits at the southern end of San Diego bay. Under one worst-case scenario, the bay could merge with the Tijuana River estuary to the south and permanently submerge much of the city’s housing and roads.The city has received some help with creating natural climate barriers. The Fish and Wildlife Service restored 400 acres of wetland next to the city as a national wildlife refuge which also acts as a barrier to flooding, and is expected to restore other wetlands together with the Port of San Diego. A grant is paying for improved equipment to warn of floods.But that still leaves the huge costs of building new schools and drainage systems, and adapting other infrastructure. Dedina said that without the oil companies stumping up, it won’t happen.“People ask, how did you go against the world’s largest fossil fuel companies? Isn’t that scary? No. What’s scary is coastal flooding and the idea that whole cities would be under water,” said the mayor.“Honestly, bring it on. I can’t wait to make our case. I can’t wait to take the fight to them because we have nothing to lose.”This story is published as part of Covering Climate Now, a global collaboration of news outlets strengthening coverage of the climate storyTopicsClimate crisisClimate crimesCaliforniaUS politicsExxonMobilOil and gas companiesFossil fuelsfeaturesReuse this content More

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      The Louisiana gas industry’s answer to lax safety enforcement? Loosen it more

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      When a natural gas pipeline fire south-west of New Orleans killed one worker and burned three others, the Louisiana state police ordered Phillips 66 to pay a $22,000 fine for failing to immediately report the incident. The fire burned for four days before first responders could put it out.But the company ultimately didn’t pay any police fine, ending up with just a warning.That story is common, according to public records reviewed by the Louisiana Illuminator and Floodlight with the Guardian. The Louisiana state police – which oversees pipeline safety – issued 34 fines and five warning letters in the past five years. A quarter of those penalties were reduced: three were lowered, five were replaced with warning letters and two were dismissed. The fines that did stick were low, between $2,250 and $8,000.Aside from the obvious potential harms to workers, gas leaks pose fire risks and can cause respiratory problems for people in nearby communities.Phillips 66 declined to comment for this story. The company was separately fined $20,000 over the incident by the department of natural resources.Despite the record of lax enforcement by the state police, gas companies in the state say they are being treated unfairly and have lobbied for legislation to loosen requirements around reporting pipeline leaks. Louisiana has more gas pipelines than any other state except Texas, and more gas pipeline projects are planned in the state to support the growing demand for US natural gas exports.The proposal, House Bill 549 from Louisiana’s Republican representative Danny McCormick, was approved by Louisiana lawmakers and has been sent to the Democratic governor John Bel Edwards’ desk. It is one of many efforts by the influential oil and gas industry to avoid regulation and keep its tax rates low in the state. If signed into law, it would absolve companies from reporting natural gas leaks of less than 1,000 pounds, unless they cause hospitalization or death.Gene Dunegan, the program manager for Louisiana state police’s emergency services unit, defended the department’s record on fines, saying it had reduced them when pipeline companies present reasonable explanations for failing to report them within an hour. While Louisiana law requires pipeline companies to “immediately” report leaks, it does not define a deadline for doing so. The state police ask companies to report incidents within an hour.“Our goal is not to collect monies, but to keep the violation from recurring,” Dunegan said. “Most [companies] are proactive and implement needed changes and training prior to hearing from us, others not so much.”The state police issued few tickets over the past five years – less than 10 a year on average. One pipeline company’s name appears on the list more than any other: Centerpoint Energy. The company was ticketed seven times over the past three years, totaling $38,750.Trey Hill, a lobbyist representing Centerpoint, helped push McCormick’s bill through the Louisiana legislature. Centerpoint contested a ticket for failing to notify state police of one natural gas release, but state police dismissed the fine before a judge could decide on the case, Hill said in a legislative meeting in April. Atmos Energy, which was fined by Louisiana state police twice in 2020, also supported McCormick’s bill.Louisiana was among the first states to make trespassing on pipelines a felony, which pipeline companies have used to target environmental protesters and journalists. A federal judge recently allowed a challenge to Louisiana’s anti-protest pipeline law to move forward.Pipeline incidents are already underreported, said Anne Rolfes, the director of Louisiana Bucket Brigade, an environmental organization that opposed the Bayou Bridge pipeline. “These accidents are overlooked, business as usual,” she said.In other states, the leaks are often overseen by energy regulators. In Oklahoma, for example, violations are enforced by the state’s Corporation Commission, but the highway patrol can also file charges against companies.In Louisiana, the department of natural resources’ pipeline division regulates only much larger gas leaks in intrastate pipelines that carry toxic or flammable products. “Our role is to conduct an investigation after the fact,” Steven Giambrone, the pipeline division director, said in the April committee hearing. “We’re not a first responder.”John Porter, the commander of the emergency services unit of the Louisiana state police, warned lawmakers that looser reporting thresholds could trigger public health concerns when smaller leaks happen in populated areas.“If we have a gas leak at a major intersection, 1,000 pounds would be an extreme amount with vehicles traveling by, with pedestrians traveling by,” he said. “And all we’re asking is for notification for us so we can get the proper emergency services people out there to protect the public.” More

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      Biden must be our 'climate president'. He can start by ending pipeline projects | Faith Spotted Eagle and Kendall Mackey

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      As we prepare to turn the page on 2020, and inaugurate Joe Biden as president on 20 January 2021, the incoming administration has a climate mandate to listen to people across America – and keep fossil fuels in the ground. This means stopping the Keystone XL, Dakota Access and Line 3 pipelines on day one.While Trump props up failing fossil fuel companies, including through government handouts from Covid-19 stimulus packages to the tune of $15bn, Biden has already committed to transitioning the United States off oil, holding polluters accountable, honoring treaty rights and stopping the Keystone XL pipeline.In August, Joe Biden laid out his $2tn climate plan, which has the support of Indigenous peoples and their allies, Black communities and environmental voters. Biden’s climate plan is the most ambitious plan of a major party presidential nominee ever. To be the most ambitious climate president ever, Biden must implement a climate test on all federal permitting and projects, to ensure any project not aligned with tackling the climate crisis and keeping warming under 1.5 degrees does not move forward. A meaningful climate test must keep fossil fuels in the ground.Just last week, Biden announced the New Mexico congresswoman Deb Haaland as his nominee for US secretary of the interior. Haaland is a member of the Pueblo Laguna tribe; if confirmed she will be the first Native person to serve in the role. We hope her leadership will help protect our public lands and Indigenous sovereignty as we phase out fossil fuels.As we write, communities across Minnesota are rising up to protect land, water and treaty rights as Line 3 pipeline construction begins and lawsuits are filed in opposition. Meanwhile, communities in South Dakota are mobilizing to pressure Biden to rescind the permit for Keystone XL and end the project once and for all.If built, Line 3 would release as much greenhouse gas pollution as 50 new coal-fired power plants, violate Ojibwe treaty rights, and put Minnesota’s water, ecosystems and communities in harm’s way. Keystone XL would have a similarly devastating impact on water, land, people and the Oceti Sakowin tribes’ treaty and inherent rights.Both pipeline projects have blatantly refused meaningful consultation with the tribes impacted. This is glaringly disrespectful to grassroots dedication in territories that have stood up to this invasion for years, as well as a denial of the irreversible impact these pipelines will have on cultural and spiritual sites.Projects like Line 3 and Keystone XL are also directly linked to violence against and trafficking of Native women and girls, due to the installation of temporary housing for mostly male pipeline workers, known as “man camps”. These man camps are also a hotbed for Covid-19, drawing thousands of out-of-state workers. South Dakota is at a crisis point with Covid-19 cases, yet the threat of Keystone XL construction looms.There is increasing anticipation of violence from militarized police partnered with Enbridge, the Canadian pipeline company backing Line 3, triggering memories of violence against water protectors and allies in the fight to halt the Dakota Access Pipeline (DAPL).In the shadow of centuries of genocide and erasure of Indigenous peoples, Barack Obama halted DAPL and rejected Keystone XL. Now, Biden has a chance to build upon this legacy and stop Line 3, Keystone XL and DAPL.Stopping these pipelines is completely within Joe Biden’s purview and responsibility. Through executive action, Biden can order an immediate pause on oil pipeline construction, and a moratorium on any new projects or expansions, as he reviews Trump-era approvals for conflict or undue influence from the fossil fuel industry. Biden must also reverse over 100 environmental and climate protection rollbacks brought on by the Trump administration.But to be a true climate president, Biden must go further. Just as pipelines will inevitably spill, any new or existing fossil fuel project would inevitably fail a climate test. There is no safe or clean way to extract, transport, or refine coal, oil or gas without poisoning our communities and driving us past 1.5C of warming. In addition, the construction, transport and burning of fossil fuels have grave impacts on public health and safety, including premature death, lung cancer and increased rates of Covid-19.From the Keystone XL Promise to Protect to the Line 3 Pledge of Resistance, tens of thousands of people are prepared to wield our sacred and patriotic duty to stop these toxic and unnecessary fossil fuel projects. In addition, thousands of people have already sent petitions to Joe Biden urging him to halt these projects.It’s time to make polluters pay for the damages done to our communities’ health, land and wellbeing. This starts with stopping fossil fuel projects and returning land to Indigenous peoples. Ultimately, we must dismantle existing projects and fund a just and equitable transition to a regenerative 100% renewable economy.The stakes are higher than ever – economically, socially and politically. Biden must show guts in holding coal, oil and gas executives accountable for knowingly bringing climate disasters, pollution, sickness and death to our doorsteps.It’s our time to leap toward a renewable energy revolution that centers Indigenous sovereignty, community health, and a safe, livable future for all.Faith Spotted Eagle is a Yankton Sioux Tribe member, an opponent of pipeline projects including Keystone XL and the Dakota Access Pipeline, and the first Indigenous person to win an electoral vote for president
      Kendall Mackey is 350.org regional campaign manager More