Federal Judge Says Biden Cannot Pause New Leases for Drilling on Public Lands – The New York Times

“WASHINGTON — A federal judge in Louisiana has blocked the Biden administration’s suspension of new oil and gas leases on federal lands and waters, in the first major legal roadblock for President Biden’s quest to cut fossil fuel pollution and conserve public lands.

Judge Terry A. Doughty of the United States District Court for the Western District of Louisiana granted a preliminary injunction Tuesday against the administration, saying that the power to pause offshore oil and gas leases “lies solely with Congress” because it was the legislative branch that originally made federal lands and waters available for leasing.

Judge Doughty also ruled that 13 states that are suing the administration over its temporary halt to new leases “have made a showing that there is a substantial likelihood that President Biden exceeded his powers.” “

Thomas L. Friedman | The ‘Mean Greens’ Are Forcing Exxon to Clean Up Its Act – The New York Times

Opinion Columnist

“Since the 1990s, the wisest oil-producing countries and companies have regularly reminded themselves of the oil patch adage that the Stone Age did not end because we ran out of stones; it ended because we invented bronze tools. When we did, stone tools became worthless — even though there were still plenty on the ground.

And so it will be with oil: The petroleum age will end because we invent superior technology that coexists harmoniously with nature. When we do, there will be plenty of oil left in the ground.

So be careful, wise producers tell themselves, don’t bet the vitality of your company, community or country on the assumption that oil will be like Maxwell House Coffee — “Good to the last drop” — and pumped from every last well. Remember Kodak? It underestimated the speed at which digital photography would make film obsolete. It didn’t go well for Kodak or Kodachrome.

Alas, though, not every oil company got the memo.

One that most glaringly did not is the one that in 2013 was the biggest public company in the world! It’s ExxonMobil. Today, it is no longer the biggest. As a result of its head-in-the-oil-sands-drill-baby-drill-we-are-still-not-at-peak-oil business model, Exxon lost over $20 billion last year, suffered a credit rating downgrade, might have to borrow billions just to pay its dividend, has seen its share price over the last decade produce a minus-30 percent return and was booted from the Dow Jones industrial average.  . . . “

Climate Change Activists Notch Victory in Exxon Mobil Board Elections – The New York Times

“HOUSTON — Big Oil was dealt a stunning defeat on Wednesday when shareholders of Exxon Mobil elected at least two board candidates nominated by activist investors who pledged to steer the company toward cleaner energy and away from oil and gas.

The success of the campaign, led by a tiny hedge fund against the nation’s largest oil company, could force the energy industry to confront climate change and embolden Wall Street investment firms that are prioritizing the issue. Analysts could not recall another time that Exxon management had lost a vote against company-picked directors.

“This is a landmark moment for Exxon and for the industry,” said Andrew Logan, a senior director at Ceres, a nonprofit investor network that pushes corporations to take climate change seriously. “How the industry chooses to respond to this clear signal will determine which companies thrive through the coming transition and which wither.”

The vote reveals the growing power of giant Wall Street firms that manage the 401(k)s and other investments of individuals and businesses to press C.E.O.s to pursue environmental and social goals. Some of these firms are run by executives who say they see climate change as a major threat to the economy and the planet.   . . . . “

David Lindsay

tfJuusrodsSplton shnorteodw  · The New York Times  · Shared with Public

I have opposed divestment from the oil and gas companies for many years, arguing that persuation from within is as important as legislation and pressure from without. It appears that yesterday, folks like me had a good day. I was extremely proud to have voted my small batch of Exxon Mobil shares for all four of the new sustainability board members, and for the the two biting resolutions that passed, requiring transparecy of all money to politics, and to evaluate such donations against the goals of the Paris Climate Accord goals.

‘Climate Change Is Not a Subjective Thing.’ — NYT Video

How Does the U.S. Approach to the Environment Look From Abroad?Video by Chai Dingari, Adam Westbrook and Brendan Miller

 
 
“The United States has a schizophrenic relationship with the environment.
It boasts a spectacular system of more than 400 national park sites; a robust environmental lobby; and strong federal environmental law, including the landmark Endangered Species Act, which is credited with saving the bald eagle and the grizzly bear from extinction.
Yet it also harbors a dark side, including an insatiable appetite for fossil fuels; a longstanding romance with behemoth, gas-guzzling vehicles; and perhaps the highest per capita generation of plastic waste in the world.
For the video (below), we collated data and other information about America’s posture on the environment and presented them to people from other countries that, in some ways, have made the United States, the wealthiest country in the world, seem like an environmental laggard.”
Opinion | ‘Climate Change Is Not a Subjective Thing.’ How Does the U.S. Approach to the Environment Look From Abroad?
 
NYTIMES.COM

 

 
Opinion | ‘Climate Change Is Not a Subjective Thing.’ How Does the U.S. Approach to the Environment Look From Abroad
 
Source:

 

Big Oil laggard Exxon faces a new climate threat from Wall Street

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KEY POINTS
  • Exxon Mobil has been a laggard in the oil and gas sector and has seen its market value decline by hundreds of billions of dollars.
  • Pension giant CalSTRS is supporting a new activist fund effort to replace Exxon board members.
  • Activists see this as a perfect time to seek short-term value creation in a better run company as well as more long-term support from investors if the company becomes clearer about its climate plan.

In this article

VIDEO05:41
CalSTRS’s Chris Ailman on calling for company overhaul at Exxon Mobil

Exxon Mobil is poised for a new role in a changing world it doesn’t want: target and test case for a new form of combined attack from activist hedge funds and long-term impact investors focused on sustainability and climate change. A newly formed activist investor group, Engine No. 1, announced plans on Monday to seek four board seats at the oil and gas giant, and underlying the effort are both short-term and long-term goals to change the way Exxon approaches the energy business at a time of rapid transition forced by fears about carbon emissions.

The activist firm — which includes founders from successful activist hedge funds including Partner Fund Management and JANA Partners — thinks the time is ripe for an overhaul of Exxon’s management. The market stats cited in its letter to Exxon’s board highlight a significant drop in operating performance and “dramatic” decline in Exxon’s stock value in recent years as many investors have lost faith in the company.

Source: Big Oil laggard Exxon faces a new climate threat from Wall Street

Ezra Klein | Texas Is a Rich State in a Rich Country, and Look What Happened – The New York Times

Opinion Columnist

Credit…Mark Felix/Agence France-Presse — Getty Images

“A few months back, because I really know how to live, I spent a night reading “The Green Swan: Central banking and financial stability in the age of climate change.” The report, released in January 2020 by the Bank for International Settlements, argued that central banks, concerned as they are with the stability of prices and financial systems, were negligent if they ignored climate change. The economies we know are inseparable from the long climatic peace in which they were built. But that peace is ending. There are no stable prices in a burning world.

This is one of those papers where the measured language preferred by technocrats strains against the horrors they are trying to describe. What emerges is almost an apocalyptic form of poetry. One line, in particular, has rung in my head for months. “Climate-related risks will remain largely unhedgeable as long as systemwide action is not undertaken.” If you know anything about financial regulators, you know the word “unhedgeable” is an alarm bell shrieking into the night. Financial systems are built to hedge risk. When a global risk is unhedgeable, the danger it poses is existential.

The point of the report is simply this: The world’s economic systems teeter atop “backward-looking risk assessment models that merely extrapolate historical trends.” But the future will not be like the past. Our models are degrading by the day, and we don’t understand — we don’t want to understand — how much in society could topple when they fail, and how much suffering that could bring. One place to start is by recognizing how fragile the basic infrastructure of civilization is even now, in this climate, in rich countries.

Which brings me to Texas. Two facts from that crisis have gotten less attention than they deserve. First, the cold in Texas was not a generational climatic disaster. The problem, as Roger Pielke Jr., an environmental analyst at the University of Colorado at Boulder, wrote in his newsletter, is that the Electric Reliability Council of Texas’ worst-case scenario planning used a 2011 cold snap that was a one-in-10-year weather event. It wasn’t even the worst cold Texas experienced in living memory: in 1989 temperatures and electricity generation (as a percentage of peak demand) dropped even further than they did in 2011. Texas hadn’t just failed to prepare for the far future. It failed to prepare for the recent past.

Second, it could have been so much worse. Bill Magness, the president and chief executive of ERCOT, said Texas was “seconds and minutes” from complete energy system collapse — the kind where the system needs to be rebuilt, not just rebooted. “If we had allowed a catastrophic blackout to happen, we wouldn’t be talking today about hopefully getting most customers their power back,” Mr. Magness said. “We’d be talking about how many months it might be before you get your power back.”

This was not the worst weather imaginable and this was not the worst outcome imaginable. Climate change promises far more violent events to come. But this is what it looks like when we face a rare-but-predictable stretch of extreme weather, in a rich state in a rich country. The result was nearly 80 deaths — and counting — including an 11-year-old boy found frozen in his bed. I can barely stand to write those words.” . . .

Thomas Friedman | Can You Believe This Is Happening in America? – The New York Times

” . . . What’s going on? Well, in the case of Texas and Mars, the basic answers are simple. Texas is the poster child for what happens when you turn everything into politics — including science, Mother Nature and energy — and try to maximize short-term profits over long-term resilience in an era of extreme weather. The Mars landing is the poster child for letting science guide us and inspire audacious goals and the long-term investments to achieve them.

The Mars mind-set used to be more our norm. The Texas mind-set has replaced it in way too many cases. Going forward, if we want more Mars landings and fewer Texas collapses — what’s happening to people there is truly heartbreaking — we need to take a cold, hard look at what produced each.

The essence of Texas thinking was expressed by Gov. Greg Abbott in the first big interview he gave to explain why the state’s electricity grid failed during a record freeze. He told Fox News’s Sean Hannity: “This shows how the Green New Deal would be a deadly deal for the United States of America. … Our wind and our solar got shut down, and they were collectively more than 10 percent of our power grid, and that thrust Texas into a situation where it was lacking power on a statewide basis. … It just shows that fossil fuel is necessary.”

The combined dishonesty and boneheadedness of those few sentences was breathtaking. The truth? Texas radically deregulated its energy market in ways that encouraged every producer to generate the most energy at the least cost with the least resilience — and to ignore the long-term trend toward more extreme weather.” . . . .

Paul Krugman | Et Tu, Ted? Why Deregulation Failed – The New York Times

Opinion Columnist

Credit…Justin Sullivan/Getty Images

“Nobody is ever fully prepared for natural disaster. When hurricanes, blizzards or tsunamis strike they always reveal weaknesses — failure to plan, failure to invest in precautions.

The disaster in Texas, however, was different. The collapse of the Texas power grid didn’t just reveal a few shortcomings. It showed that the entire philosophy behind the state’s energy policy is wrong. And it also showed that the state is run by people who will resort to blatant lies rather than admit their mistakes.

Texas isn’t the only state with a largely deregulated electricity market. It has, however, pushed deregulation further than anyone else. There is an upper limit on wholesale electricity prices, but it’s stratospherically high. And there is essentially no prudential regulation — no requirements that utilities maintain reserve capacity or invest in things like insulation to limit the effects of extreme weather.

The theory was that no such regulation was necessary, because the magic of the market would take care of everything. After all, a surge in demand or a disruption of supply — both of which happened in the deep freeze — will lead to high prices, and hence to big profits for any power supplier that manages to keep operating. So there should be incentives to invest in robust systems, precisely to take advantage of events like those Texas just experienced.” . . .

” . . . The disaster in Texas, however, was different. The collapse of the Texas power grid didn’t just reveal a few shortcomings. It showed that the entire philosophy behind the state’s energy policy is wrong. And it also showed that the state is run by people who will resort to blatant lies rather than admit their mistakes.

Texas isn’t the only state with a largely deregulated electricity market. It has, however, pushed deregulation further than anyone else. There is an upper limit on wholesale electricity prices, but it’s stratospherically high. And there is essentially no prudential regulation — no requirements that utilities maintain reserve capacity or invest in things like insulation to limit the effects of extreme weather.” . . .

What Caused the Blackouts in Texas? – The New York Times

“The outages and the cold weather touched off an avalanche of failures, but there had been warnings long before last week’s storm.

After a heavy snowstorm in February 2011 caused statewide rolling blackouts and left millions of Texans in the dark, federal authorities warned the state that its power infrastructure had inadequate “winterization” protection. But 10 years later, pipelines remained inadequately insulated and heaters that might have kept instruments from freezing were never installed.

During heat waves, when demand has soared during several recent summers, the system in Texas has also strained to keep up, raising questions about lack of reserve capacity on the unregulated grid.

And aside from the weather, there have been periodic signs that the system can run into trouble delivering sufficient energy, in some cases because of equipment failures, in others because of what critics called an attempt to drive up prices, according to Mr. Hirs of the University of Houston, as well as several energy consultants.

Another potential safeguard might have been far stronger connections to the two interstate power-sharing networks, East and West, that allow states to link their electrical grids and obtain power from thousands of miles away when needed to hold down costs and offset their own shortfalls.

But Texas, reluctant to submit to the federal regulation that is part of the regional power grids, made decisions as far back as the early 20th century to become the only state in the continental United States to operate its own grid — a plan that leaves it able to borrow only from a few close neighbors.

The border city of El Paso survived the freeze much better than Dallas or Houston because it was not part of the Texas grid but connected to the much larger grid covering many Western states.” . . .

Richard Parker | Texas Could Have Kept the Lights On – The New York Times

“. . .  A cold, sharp dagger has slashed through Texas, America’s largest and proudest producer of fossil fuels, while stranding millions without heat or light. The frigid disaster has also laid bare the fallacy, still prominent in the Lone Star State, that oil and gas are more important than impending climate catastrophe, embarrassing a political class that just weeks ago pledged to defend the oil and gas industry — its own Alamo — from the Biden administration.

The fallacy is hard to unwind even as people are dying. But some Texans are also furious about how their state’s ruinous laissez-faire governance led to a cascade of human-caused disasters of epic proportions. Indeed, this was no act of God.

Last week, 29 million Texans learned that the weather would turn unseasonably cold. It would be no ordinary blue norther: As the planet warms, so does the Arctic, disrupting the jet stream, which usually keeps the polar vortex of frigid air in place there. Now there is an emerging, if not unanimous, view among climatologists that the vortex is wobbling and dipping south, paralyzing Madrid, freezing the American Midwest and blanketing the Sierra Nevada, all since the start of this year.

Yet the folks over at the Texas power grid appear to have been caught flat-footed by spiking demand in energy to keep houses warm and phones charged. In general, there’s a storage problem in Texas when it comes to natural gas. Utility companies often don’t bother to buy gas reserves: It’s easier, cheaper and more profitable to tap the gas in the field with a pipeline — usually.

But the moment to invest in resilience has passed. The spot price in early February was under $3 per million British thermal units; this week those spot prices have soared to all-time highs. After a cold snap in 2011, the power companies were supposed to better winterize their plants. Ten years later, they hadn’t done it. It’s hard to believe they couldn’t afford it: Oncor, the giant power utility serving Dallas, reported $651 million in net income in 2019.” . . .