Tuesday, July 20, 2021

Tobago-born M NourbeSe Philip wins Can$50,000 arts prize

Philip won the $50,000 Canada Council for the Arts Molson Prize in the arts category

JULY 20,2021
M NourbeSe Philip performing at Alice Yard, Woodbrook, Trinidad. Poet M NourbeSe Philip performs at Alice Yard, Woodbrook, Trinidad. Philip won a prestigious Can$50,000 cultural prize, the Canada Council for the Arts Molson Prize for arts, and her 2008 book Zong! tops the World Literature Today poll. - courtesy Maria Nunes

In a week and a half, Tobago-born Toronto-based poet, essayist, novelist, and playwright M NourbeSe Philip was awarded a prestigious Canadian cultural prize and saw her 2008 book Zong! win a literature magazine poll.

On July 7 the Canada Council for the Arts Molson Prize winners were announced: Philip in the arts category and psychologist and mental health researcher Gordon J G Asmundson in the social sciences and humanity category. The council awards two Molson prizes of Can$50,000 to distinguished Canadians in these fields annually.

The prize is funded by a $1 million endowment given to the council by the Molson Family Foundation and encourages recipients to continue contributing to the cultural and intellectual life of Canada.

On June 28 literature magazine World Literature Today (WLT) announced Philip's book Zong!, a book-length poem about the murder of Africans on board a slave ship in 1781 for financial gain, won the 21 Books for the 21st Century Readers' Poll. Earlier this year WLT editors invited 21 writers to nominate a single book, published since the year 2000, that has had a major influence on their own work, along with a brief statement explaining their choice. WLT published the longlist and then invited readers to vote on their favourites and Zong! was the winner.

Newsday interviewed Philip about Zong! recently.

The Zong Massacre

Philip learned about the case that inspired it years ago when she read Black Ivory: A History of British Slavery by English historian James Walvin. It mentioned an incident with a slave ship in 1781 coming across the Atlantic: the journey took longer than normal because the captain had never captained before.


Poet M NourbeSe Philip performs at Alice Yard, Woodbrook, Trinidad. Philip won a prestigious Can$50,000 cultural prize, the Canada Council for the Arts Molson Prize for arts, and her 2008 book Zong! tops the World Literature Today poll. - courtesy Maria Nunes

"It got lost and essentially came close to Tobago, but its destination was Jamaica, so it was really off-course."

During the voyage, water ran low and some of the people on board, both crew and enslaved Africans, became ill and died. The captain decided to throw overboard around 150 enslaved Africans.

"The number tends to be slippery, but about 130 to 150 (were) killed so he could ensure there was more water left for those who remained on board."

Philip said her research indicated the ship left the coast of Ghana with 470 enslaved Africans. She noted at that time an enslaved person was insured as "cargo," just as property is insured today, and at that time insurance law said if an enslaved person died during the normal course of events, the owner could not collect insurance money for them. However, if there was a rebellion or a revolt and the enslaved person was killed, the owner could make an insurance claim.

Philip said from the documents she read it appeared the captain and his associates feared there would be a revolt on the ship because there was not enough water,and came to the conclusion to throw some 130-150 people overboard in three separate groups.


The vessel ended up on the south coast of Jamaica, the slaves presumably sold to slave owners there, and returned to Liverpool. Then the owners of the ship, two relatives named Gregson, made a claim against the insurance company for "destruction of property."

"The very people they murdered, they now make a claim against the insurance company for that."

The company, owned by the Gilbert brothers, refused, not because the slaves were human beings, but because they disputed whether the Gregsons had the right to destroy "property."


  
Poet M NourbeSe Philip performs at Alice Yard in Trinidad.
Philip won the $50,000 Canada Council for the Arts Molson Prize in the arts category which was announced on July 7. - courtesy Maria Nunes


In the first hearing of Gregson vs Gilbert the court ruled in favour of the shipowners against the company. During the case, the idea of murder was raised by one of the lawyers, but the judges ruled it was not murder but a case of "destruction of property."

The company appealed, and at that hearing, the fact that it rained during the voyage and the crew would have been able to collect water to give to the enslaved people came up. The appeal was heard by Chief Justice Lord Mansfield, who made a lot of rulings related to slavery. Mansfield ruled in favour of the insurance company and ordered a new trial.

"After that, the trail goes cold. There does not appear to be a new trial. And the shipowner died."

Philip noted, however, the case became very significant to abolitionists organising against the slave trade and slavery.

She explained the name of the ship was originally Zorg, a Dutch word meaning "care," which would become "morbidly and macabrely ironic," given what happened. When the ship was repurposed on the African island of São Tomé and when it was repainted the "r" became an "n," changing the name to Zong. The event would become known as the Zong massacre.


'Unauthoring' Zong!

American writer Philip Metres who nominated Zong! for the WLT poll, described it as "at once a brilliant documentary long poem and a sort of ritual exorcism of the demons of the slave trade.

M NourbeSe Philip's triumph with Zong! happened on the 240th anniversary of the Zorg Dutch slave-trip massacre in which 130-150 people, who were sick, were thrown overboard. The book-length poem addresses the murder of Africans on board the ship in 1781. - courtesy Alex Woodward


"Philip’s visionary use of the burying language of law to recover the shreds of the voices of the lost is stark, elemental, and electrifying. It is poetry raised to the level of a truth commission. This work has launched a thousand poetic justice projects in the mode of documentary recovery."

Asked about her approach to Zong! Philip explained she used to practise law and visited the law library where the case was reported.

"I opened the book and it was a two-page case report. And I remember I was really stunned. Two pages? How do you condense the horrific murder of 150 people into two pages?"

She explained in her study of law she had to read a lot of cases and as cases "move up the ladder" it is an extractive process and the "messy human factors" are squeezed out.

"The issue of law is often very narrow."

Philip recalled thinking that in this two-page document were locked away all the stories aboard the Zong and she set about looking at various ways of using the legal document to try and find those stories.

"In the first stage, I was locked in the document as the slaves were locked in the hold of the slave ship."

She explained in the first section the only words she used to make her poems were the ones found in the document, which was a little over 500 words long.

World Literature Today magazine announced M NourbeSe Philip's book Zong! topped the 21 Books for the 21st Century Readers' Poll. Zong! is a book-length poem about the murder of Africans on board a slave ship in 1781 for financial gain. -

Then two years later she had the idea of breaking the words up and "find words inside words", a process she compared to the word game Boggle. She made dictionaries in which she listed all the words in the documents and found words from them. For example, from "Lord Mansfield" she could extract "man", "field", "fled", and "name."

"And then using only those words then the poem began to create itself."

The sections have Latin names for bone, salt, wind, reason, iron, and then "Ebora," the West African word for underwater spirits. The book ends with the Latin "notanda" or "that which must be noted," which is a prose section in which she talked about the process of the book.

Philip pointed out the cover of the book features her name and the phrase "as told to the author by Setaey Adamu Boateng."

Who is Setaey Adamu Boateng?


She explained that each name has a personal meaning to her, but it is no one person or being.

"There is a sense in which I 'unauthored' the book. A sense the story was given to me by the ancestors (and) the name stands in for that idea of my stepping aside to let the voices come through."

She recalled it was very important for her as part of the process at some point to "seek permission to bring these voices forward." She visited Ghana and consulted with a priest.

She stated in the notanda that it "is a story that can't be told yet it must be told."

"We can never know what happened onboard the ship or know the whole story.

"Also the horror of it. How do you tell horror? Atrocity?

"But then we must tell it. The only way it can be told is through untelling it or not telling it – putting the ego out of commission. The story is telling itself."

She pointed out the words are all over the page, almost as if floating on the water.

"You could read from beginning to end, or from top to bottom. Like water moving on the ocean, bobbing and moving around. I am kind of giving over to the reader. Let the reader make sense or nonsense of what is going on."

The true prize

On the Molson Prize, Philip said someone approached her who knew her work and wanted to nominate her. She learned about the win a couple of weeks ago.

For Canada Council for the Arts Molson Prize and WLT winner, "the prize" is about more people hearing about the work and understanding history. - courtesy Rothko Chapel


"I am pleased. Very, very pleased. There is a financial aspect, which is always nice (and) as a poet and writer who is unimbedded (not in the university system), artists often aren't phenomenally wealthy."

On the WLT win, Philip said there was no money attached but she was "very joyful" people chose Zong! as it was about people knowing about the events. She said she was deeply humbled and heartened that people would want to learn about them.

"It helps us to move on and become better people. Being human is hard. We are trying to live up to the best we are capable of.

"The thing that makes me happiest is if more people will hear about the work and read about it and more of our people, all people. Everyone needs to know this."

She pointed out 1781 was a time of agitation and upheaval (the slave trade drawing to an end, the American, French and Haitian revolutions) and was similar to what was happening today with the George Floyd uprising.

She added that it was lovely that it happened on the 240th anniversary of the event.

"We are trying to break through still. We still have not. We have not broken (through) to a place of ideals where many of us hold the view that everyone should be treated with dignity and respect. Have adequate housing, jobs and healthcare. It is so important and still far away for many people. And it is getting worse with climate change and people fleeing lands."

Philip said she always bears in mind that in today's societies racism is still very much present.

"We have to keep our eyes on that.

"I very much want for us as humankind and as African-descended people (to) understand that 'I am' must be sufficient. The fact that we exist must be sufficient. It cannot be contingent on whether we are black, white, pale, gay, straight, this class or that class, Hindu, Muslim, or Christian. We are human. 'I am.'"

She said she had worked hard for several years and her work spans poetry, fiction and drama.

"I took from the Caribbean the idea of being engaged as a member of society."

She has written about racism, sexism and homophobia.

"If the prize helps to expose more people to the work and they go on to read other black writers, then it is worth it.

"Prizes are wonderful. But I have never written because of prizes. They help pay a few bills, but it's not the driving force in my life."

Tobago-born, Toronto-based poet, essayist, novelist, and playwright M NourbeSe Philip. - courtesy Gail Nyoka

Asked about her Tobago roots, Philip said she was born in Tobago and then came to Trinidad at eight, attending Bishop Anstey High School.

"Both of my parents' families are from Tobago (but) both islands reside in me. I have a particular love for the island of Tobago and it is my rock and refuge. It is the place I write from even if I am not writing about it."

She returns home to TT every year except last year and she has been trying to make her way back.

"Tobago is my home, and Trinidad."

Philip said she also sees herself as a "Caribbean person."

"So the prize is not just for me; it is a prize for Tobago, and Trinidad, and the Caribbean.

"We Caribbean people always punch above our weight, no matter where we are. And the prize is also for the ancestors who allowed us to be here.

"And we come from societies with the Caribbean as a beginning. It is something we can be proud of, and we have produced wonderful people. And we are from Africa, the cradle of humanity. It is a marvellous continent in spite of all of the ills. It is important to pay the prize forward. Really important."

And what is Philip currently working on? She replied that it was "several things" including a lot of work she started years ago. She is writing a couple of plays, some poetry, and immediately working on some writing during the pandemic which she is hoping comes out next year.

NourbeSe Philip at a glance

Although primarily a poet, NourbeSe Philip also writes both fiction and non-fiction. She has published three books of poetry, Thorns – l980, Salmon Courage – 1983 and She Tries Her Tongue; Her Silence Softly Breaks – 1988.

She has received Canada Council awards, numerous Ontario Arts Council grants and a Toronto Arts Council award in l989.

In l988 Philip won the prestigious Casa de las Americas prize for the manuscript version of her book She Tries Her Tongue… She is also the l988 first prize winner of the Tradewinds Collective prize (TT) in both the poetry and the short story categories.

Her first novel, Harriet’s Daughter, was published in l988.

Her second novel, Looking For Livingstone: An Odyssey of Silence, was published in l991. In l994, her short story, Stop Frame was awarded the Lawrence Foundation Award by the journal, Prairie Schooner.

(Source: https://www.nourbese.com/)
Fossils and the petroleum industry of Trinidad and Tobago

NEWSDAY THURSDAY 15 JULY 2021
Figure 5: Home of Biostratigraphy; Geological Services Laboratory, Pointe-a-Pierre (Trinidad) under the tenure of Petrotrin. Photo taken in April 2017. (Bolli, Beckmann, &; Saunders, 2005) -

GEOLOGICAL SOCIETY

When people hear fossils, they immediately think dinosaurs. Unbeknownst to most Trinidadians, fossils have played a leading role in the discovery and development of oil and gas fields onshore and offshore Trinidad and Tobago for over 100 years.

When wells are drilled, geologists examine cuttings (bits of rock fragments) that are circulated to the top of the drill string as the drillbit grinds through rock. These cuttings often have micro-fossils in them, that geoscientists called biostratigraphers use high powered microscopes to see.

Key tool in foraminifera analysis. Photo courtesy Geological Society -

Biostratigraphy is a branch of geology that uses fossils to establish the relative ages of sedimentary rocks. In the oil and gas industry there are three main disciplines of fossils: foraminifera (fondly known as forams), nano-palaeontology and palynology.

Palynology is the study of fossilised pollen, historically used in Trinidad. Nano-palaeontology is the study of fossils even smaller than foraminifera used intermittently in the hydrocarbon industry in Trinidad.


Figure 2: Planktonic Foraminifera: Globorotalia mayeri. (Analysed from drill cuttings of Touchstone’s exploration well Cascadura Deep, onshore Trinidad) Photo courtesy Geological Society -

Foraminifera are widely abundant single-cell animals which are used to interpret ancient marine environments and determine rock ages from Palaeozoic to recent. They have shells (called tests) made of calcium carbonate. They are divided into two groups: benthic and planktonic (figures 1 and 2). Simply put, planktonic forams float in the ocean, while benthic forams are found on the seafloor. Critically for oil and gas, due to their small size, they are not destroyed by the drill bit, and thus can be examined from drill cuttings.

How does it work?

Say we know a particular bug (call it Fred) lived in a particular environment (say water 500 to 1000 ft deep) and existed during a particular period (say Upper Miocene, roughly between five and 23 million years ago). If that bug is found (in large quantities) in the cuttings from an oil-bearing reservoir, then we have a reasonably good indication that the rock was deposited between five and 23 million years ago in water 500 to 1000 ft deep. Therefore, if we are looking for the same reservoir elsewhere, we now know we should be looking for rock of that same age deposited in the same type of environment. Using geological models and data from other wells, we can figure out where we should drill, how deep and also what fossils to look out for.

Figure 4: Drill Cuttings from the Forest Reserve Field (Courtesy Touchstone Exploration) -
This is a very simplified example but illustrates the point. Experienced biostratigraphers have examined thousands of forams and know their names, shapes and features extensively.

A fact that many do not know, is that Trinidad was the global centre for work in micropaleontology (studying microscopic fossils) from the 1940s to 1960s. Unfortunately, as much of the industry became nationalised in the 1970s, research in micropaleontology came to a halt in TT. Over the last 100 years more than 100,000 foraminiferal samples have been analysed in TT.

In Trinidad, studies of fossil foraminifera were first published in 1863 by Robert J Lechmere Guppy. Early studies focused on benthic foraminifera which were easily identifiable. Applications of foraminifera in the petroleum industry was initiated by Dr August Tobler in 1913. His young field scientist, Hans Kugler (known to some as the father of Trinidad geology for his compilation of our geological map in 1961), articulated the relationship of foraminifera analyses with worldwide geological correlations. This encouraged the industry’s first palaeontological laboratory at Pointe a Pierre, Trinidad in 1929 (figure 5). The lab functioned until 2018 when Petrotrin was closed.


From the 1940s emphasis was placed on planktonic foraminifera, high in abundance and greater accuracy in correlation. This group was used to establish geological ranges in Cretaceous and Palaeocene to Middle Miocene formations. Planktonic foraminifera work was done extensively between 1948 and 1957 by Paul Bronnimann, Hans M Bolli, Jean Pierre Beckmann, John B Saunders, R M Stainforth and Hans H Renz. They remarkably established the globally used planktonic biozonation for middle to low latitude regions which are utilised to this day. Joseph A Cushman and Percy W Jarvis also contributed to the commercial applications of foraminifera and published Cretaceous and Cenozoic foraminifera of Trinidad.

Trinidad’s geological history and hence oil and gas discoveries were predicated heavily on lithology (rock type) and foraminifera. Biostratigraphy has contributed to the production of 1.5 billion barrels of oil to date from 13,000 oil wells drilled onshore in the Southern Basin of Trinidad. This was accomplished without the use of seismic data, which is now a staple in exploration worldwide.


Figure1: Benthic Foraminifera: Haplophragmoides carinatum (left) & Jarvisella karamatensis (right). (Analysed from drill cuttings of Touchstone’s exploration well Cascadura Deep, onshore Trinidad). Photo courtesy Geological Society


Fortunately, TT has a few experts in biostratigraphy, many of which were trained right here at UWI as well as at Petrotrin. In fact, former UWI Professor Brent Wilson has been one of the university’s most published authors over the last 15 years and has had several MSc, MPhil and PhD students specialising in micro-fossils.

Trinidad is known in the oil and gas community as a graveyard for geologists due to our extremely complex geology. Biostratigraphy has been one of the low cost yet relatively accurate tools in the geologist’s arsenal since the early days of the industry. Most recently, Touchstone Exploration has had massive success onshore in their Ortoire Block, finding oil, gas and condensate, giving new life to Trinidad’s onshore. Biostratigraphers have been employed while drilling these wells, and some of the fossils found are shown below.

The Geological Society of TT is a professional and technical organisation for geologists, other scientists, managers and individuals engaged in the fields of hydrocarbon exploration, academia, vulcanology, seismology, earthquake engineering, environmental geology, geological engineering and the exploration and development of non-petroleum mineral resources.
BIG OIL'S UNICORN
Shell Canada president says carbon capture facility an integral part of company’s emissions reduction plan

EMMA GRANEY
GLOBE & MAIL
ENERGY REPORTER
PUBLISHED JULY 13, 2021

Susannah Pierce, who took the reins as Shell Canada president in April, says the proposed Polaris carbon capture and storage facility will play a key role in the company’s goal to hit net-zero emissions by 2050. 
AMBER BRACKEN/THE GLOBE AND MAIL

Shell Canada plans to capture more pollution at its Scotford refinery complex near Edmonton, the company’s latest move to convince the public and shareholders it is serious about reducing its greenhouse gas emissions.

The proposed Polaris carbon capture and storage (CCS) facility is part of a suite of projects the company is eyeing at the site to help lower emissions, including a new solar installation coming online later this year and, down the road, potentially producing hydrogen with renewable power.

Shell’s Quest CCS project, also at Scotford, has already captured and stored more than six million tonnes of carbon dioxide during its six years in operation. Susannah Pierce, who took the reins as Shell Canada president in April, says Polaris will play a key role in the company’s goal to hit net-zero emissions by 2050.

Shell has “a pretty aggressive goal with respect to carbon capture sequestration, which clearly is something that we need for projects or investments or assets that really can’t eliminate emissions on their own,” Ms. Pierce said in an interview Monday.

The initial phase of the new CCS project is expected to start operations around the middle of the decade, subject to a final investment decision by Shell in 2023. That first phase will capture and store about 750,000 tonnes of carbon dioxide a year, reducing direct and indirect emissions by up to 40 per cent from the refinery and 30 per cent from the chemicals plant.

The second phase of the project would create a CO2 storage hub to store emissions from other companies, further lowering discharges in the oil and gas sector.

Ms. Pierce succeeded Michael Crothers as president when he retired, and she is still getting up to speed on the company’s priorities and how to apply its net-zero strategy.

Donning her other hat as general manager of renewables and energy solutions, she’s also focused on how to fold greener options – including hydrogen and renewables – into the mix to help lower emissions from the start of the energy supply chain through to end use by customers.

As a woman leading one of Canada’s largest integrated energy companies, Ms. Pierce said promoting equity, diversity and inclusion will also be core to her new role. That means inside Shell, but also “How are we acting as a positive force of change in this space? How are we promoting diverse industries? How are we promoting a relationship with Indigenous communities?” she said.

Ms. Pierce acknowledged there is some public cynicism about Shell’s commitment to lowering emissions and addressing climate change.

“There’s always going to be those who will never believe what you say, and that’s fair. We’re an old company that has had a history of energy production – of oil and gas,” she said.

But Ms. Pierce rejects the charge that Shell is greenwashing. She points to the company’s public clean energy transition strategy on which its shareholders voted, Shell’s commitment to update them every two years on progress toward those goals, and tying top executive compensation to the targets.

“We’re holding ourselves accountable to our shareholders and the board. If we fail to deliver, well, then we have to come to terms with that when we meet every year at our AGM,” she said.

While the International Energy Agency says all options for lowering emissions must be on the table for the world to reach net zero, environmental groups are often leery of carbon capture.

The federal government is in the midst of consultations to develop a CCS tax credit, due to start next year. But in March, a group of 47 environmental, health and human-rights organizations penned a letter to Ottawa opposing subsidies or any such tax credits, arguing the technology actually increases oil production, thus increasing the total output of CO2.

Carbon capture is one of several opportunities Shell is eyeing for Scotford to reduce emissions and meet what the company believes will be strong future market demand for differentiated, low-carbon fuels.

Along with use of more renewables onsite, it’s also in the early stages of figuring out if it could produce green hydrogen at the complex, which is made through electrolysis powered by renewable energy. Earlier this month, Shell started up Europe’s largest hydrogen electrolyzer of its kind at an energy and chemicals park in Germany.

“Shell actually sees that the hydrogen market could grow close to 50 per cent of today’s oil demand by 2050, so we see a huge opportunity to grow it, primarily looking at the harder-to-abate sectors,” Ms. Pierce said.
As talks on infrastructure continue, Congress must invest in the workers who will build it

BY VERONICA GOODMAN, OPINION CONTRIBUTOR — 07/20/21

THE VIEWS EXPRESSED BY CONTRIBUTORS ARE THEIR OWN AND NOT THE VIEW OF THE HILL

© Getty Images


As talks on a bipartisan infrastructure deal continue, it’s critical to our country’s ongoing economic recovery that workforce development funding – specifically the $100 billion set aside in the American Jobs Plan – not be sidelined. To ensure a labor market recovery for all American workers, including those who have been left behind in the past, we need to invest in employment opportunities for those who have struggled during the pandemic and those who face challenges, no matter the economic conditions.

Many signs point to a labor market in recovery. The current unemployment rate is 5.9 percent, down considerably from historic highs in 2020 but still above pre-pandemic levels. Last week, initial unemployment claims were at the lowest level since March 2020 — welcome progress thanks to the success of the administration’s American Rescue Plan and aggressive vaccination campaign.

But the recovery has remained uneven across education levels and for certain groups. The unemployment rate for Black, Hispanic and non-college educated workers follows past trends and is elevated compared to those with a Bachelor’s degree or higher. In June 2021, the unemployment rate for those with a high school degree and no college was double (7 percent) that of workers with a bachelor’s degree or higher (3.5 percent).


Long spells of unemployment and becoming disconnected from the labor market have profoundly negative effects on families’ overall economic security, including the children of those workers, and can stunt local economies. It is in everyone’s economic interest not just to provide opportunities for workers across the economic distribution but to ensure that our workforce development infrastructure prioritizes good outcomes. The pandemic recovery is an opportunity to make workforce development more inclusive.

Our experience with past downturns offers evidence-based strategies for how policymakers can strengthen the labor market for all workers and ensure a more equitable economic recovery.

The American Jobs Plan recognizes that subsidized employment programs are a proven strategy for helping workers, especially those who face structural obstacles, become connected quickly to quality jobs and career pathways. Programs like the Temporary Assistance for Needy Families (TANF) Emergency Fund used during the Great Recession by states to place more than 250,000 workers in various industries should be scaled and replicated going forward.

Another workforce program that could help the long-term unemployed is the Work Opportunity Tax Credit (WOTC), which creates an incentive for employers to hire individuals from certain groups who face persistent barriers to employment, such as veterans and those receiving public assistance benefits.

To help workers, Congress should also not let the best be the enemy of the good when it comes to the minimum wage. Most agree that workers deserve a raise from the current inadequate rate of $7.25, yet there are disagreements on the exact amount, and momentum has slowed for $15. Democrats should negotiate up as much as they can – be it to $11 or $12 per hour – since any increase would be an improvement for low-income workers and peg ongoing increases to inflation. We can also ensure that minimum wage workers earn enough to move into the middle class by instituting a Living Wage Credit, which would absorb the Earned Income Tax Credit (EITC) and provide more generous tax relief for individuals making less than $40,000 per year, phased out beyond that income threshold.

There is still economic uncertainty from factors (including the Delta variant) that threaten our nascent recovery. Reforming unemployment insurance (UI) and making it function as an “automatic stabilizer,” triggered as soon as the economy enters a downturn, would help get aid to unemployed workers faster in a crisis. Our UI systems need to be modernized entirely, and Congress should consider updates, such as offering extended benefits for more weeks during severe recessions, adequately funding updates to state IT systems and covering more jobseekers, such as the self-employed.

Other important elements of the American Families Plan must also be included and will provide additional supports for working families, along with a permanent expansion of the Child Tax Credit. The White House has also signaled that competition across the economy will strengthen the bargaining power of workers by targeting non-compete agreements and monopsonistic labor markets, which have led to wage stagnation and income inequality.

These are all essential steps, but as Congress and the Biden administration work on the next infrastructure package, we cannot leave out investments in the workers who will build it. The $100 billion set aside in the American Jobs Plan, along with additional supports for workers, will all be important to support a healthy recovery that is equitable and long lasting.

Veronica Goodman is director of social policy at the Progressive Policy Institute.
Will the Democrats’ Climate Legislation Hinge on Carbon Capture?

The bipartisan infrastructure bill may include billions in support for the
 technology. 

Progressive groups are not happy about it.

By Nicholas Kusnetz
July 20, 2021

Equipment installed as part of the Petra Nova Carbon Capture Project stands at the NRG Energy Inc. WA Parish generating station in Thompsons, Texas, on Thursday, Feb. 16, 2017. The project later shut down operations indefinitely. 
Credit: Luke Sharrett/Bloomberg via Getty Images

The Democrats’ fragile package of sweeping climate and infrastructure legislation might end up being held together by a technology known as carbon capture and storage. That is, if it doesn’t pull it apart.

The Senate is expected to vote Wednesday on a bipartisan infrastructure bill that includes billions in government support for carbon capture, which pulls carbon dioxide out of smokestack emissions or straight from the air and pumps it underground. But on Monday, a coalition of hundreds of progressive environmental groups sent an open letter to President Joe Biden and Democratic Congressional leaders calling on them to reject the technology.

“Carbon capture is not a climate solution,” the groups wrote in the letter, which was accompanied by an advertisement in the Washington Post. “To the contrary, investing in carbon capture delays the needed transition away from fossil fuels and other combustible energy sources, and poses significant new environmental, health, and safety risks, particularly to Black, Brown, and Indigenous communities already overburdened by industrial pollution, dispossession, and the impacts of climate change.”

The letter reflects a split that has emerged in the advocacy community and among Democrats. Many of the nation’s most influential, mainstream environmental groups did not sign the letter, while those organizations that did sign included more left-leaning, justice-focused and local groups.

Carbon capture and storage, or CCS, has taken on an increasingly central role in climate policy discussions over the last couple of years. It is one of the few climate actions that draws bipartisan support. Most major labor unions also support CCS, arguing that its deployment could provide new jobs and help extend the life of some gas or coal-burning power plants, which often provide high-paying union jobs. And the fossil fuel industries have promoted the technology for decades.

Some environmental groups have also thrown their support behind carbon capture technology, arguing that it could prove critical to meeting ambitious climate goals. Global emissions have continued to rise, they note, and the world is already experiencing dangerous impacts of warming like the heat waves, fires and floods that hit North America and Europe in recent weeks. In particular, these organizations say, CCS could be attached to industrial sources like steel and cement manufacturing, which do not currently have good emissions-free alternatives, and might allow carbon dioxide to be pulled straight from the air to help bring atmospheric concentrations back to safer levels.

But some progressive groups, and many that are focused on environmental justice, have opposed carbon capture, saying that it only serves to extend the life of fossil fuels when those fuels should instead be phased out as rapidly as possible.

“If the argument is, we should not stop burning fossil fuels, we’re finished with the conversation,” said Natalie Mebane, policy director for 350.org, which was among the groups that signed the letter. “Because we are going to stop burning fossil fuels.”

As with so many national policy discussions this year, much may revolve around Sen. Joe Manchin, the West Virginia Democrat who is a moderate, a long-time supporter of the fossil fuel industry and chairman of the Senate Energy and Natural Resources Committee.

Last week, that committee approved legislation that will serve as language for the energy sections of a larger infrastructure package. The bill includes billions of dollars to support CCS, including measures that aim to finance and speed development of infrastructure to transport carbon dioxide from industrial capture sites to underground storage locations and money for producing hydrogen from natural gas with carbon capture technology.

“That’s a huge first,” said Brad Crabtree, who runs the Carbon Capture Coalition, which includes companies from the coal, oil and other industrial sectors, as well as unions and some environmental groups. “It would be a policy of global significance if it is adopted.”

The carbon capture provisions could prove critical to maintaining Manchin’s support for a separate, more expansive budget deal that would address climate change and other issues, and would require the support of all 50 Senate Democrats to pass. Climate advocates have been pushing for that deal to include a clean electricity standard that would require utilities to move to carbon-free sources of energy, and a major question has been what types of energy could count as “clean.” Last week, Sen. Tina Smith (D-Minn.) issued a statement saying her proposed clean electricity standard, which counts fossil fuel plants with CCS as clean, had made it into the agreement.

A spokeswoman for Smith declined to comment further.

A Climate Tax Credit for Big Oil

Energy companies have been lobbying for increased government support for carbon capture and storage. In June, Greenpeace UK released an interview it had conducted undercover with an ExxonMobil lobbyist, Keith McCoy, who identified the technology as one of the company’s top lobbying priorities. McCoy, who believed he was speaking with a recruiter looking to hire a lobbyist, said Exxon was seeking support for the technology in the bipartisan infrastructure package.

“We’re entering into the carbon capture space, so now we’re talking about how do we get the government to support some of our activities,” McCoy said, according to a transcript of the interview provided to Inside Climate News.

McCoy identified a tax credit known as 45Q, which can be claimed by companies that capture carbon dioxide from their operations, as a key component of that government support.

Lawmakers have introduced several bills this year that would extend and increase the value of that tax credit, and Crabtree said his group hopes to see elements of those bills included in the Democrats’ budget deal.

As Inside Climate News reported last year, Exxon has probably benefited more than any other company from the tax credit, and may have received hundreds of millions of dollars in tax benefits from it over the last decade, according to estimates based on public records. While the IRS said last year that $1 billion had been claimed under the credit, it does not disclose which companies have claimed the credit or how much any individual company has received.

Some advocates have pointed to Exxon’s use of the tax credit to argue that carbon capture and storage is an example of how the fossil fuel industry has manipulated policy in its favor. One of the only current markets for captured carbon dioxide is the oil industry, which injects the gas into depleted oil wells to squeeze more petroleum from the ground. Under the tax credit, companies are allowed to claim it even if they sell the CO2 for this use, and that is exactly what Exxon does with the carbon dioxide captured from its natural gas processing plant in Wyoming.

“How in the world is that a climate-related tax credit?” Mebane said. The letter sent to Biden and the Democratic leaders by the progressive groups calls for lawmakers to prohibit the use of the tax credit when carbon dioxide is used for oil production. The letter was also signed by some Canadian environmental groups and sent to leaders in that country, where the oil industry is pursuing plans to build carbon capture plants.

A spokesman for Exxon declined to comment.

As oil companies have come under pressure from investors and advocates to transition their businesses, many have turned more attention to CCS. In April, Exxon announced a proposal to create a CCS “hub” in Houston, where industrial plants would be fitted with the technology and linked together with pipelines to carry the gas to underground storage sites. The company said the effort could cost $100 billion, and would need government support.

The proposal highlighted another concern of some environmental groups: Even if such a CCS hub was able to eliminate all the carbon dioxide from industrial sources, it might do little about the toxic pollution emitted by the refineries, petrochemical plants and other sources that have burdened environmental justice communities with unhealthy air.

Crabtree said that because the government will play a role in financing and supporting its development, policymakers could require that carbon capture deployment be paired with other technologies to address these harmful pollutants, too. And he pointed to the technology’s bipartisan support as evidence that it ought to be part of any climate bill.

“It’s not an either or proposition here,” he said. “It has to be an ‘and.’”





Nicholas Kusnetz
Reporter, New York City
Nicholas Kusnetz is a reporter for Inside Climate News. Before joining ICN, he worked at the Center for Public Integrity and ProPublica. His work has won numerous awards, including from the American Association for the Advancement of Science and the Society of American Business Editors and Writers, and has appeared in more than a dozen publications, including The Washington Post, Businessweek, The Nation, Fast Company and The New York Times. You can reach Nicholas at nicholas.kusnetz@insideclimatenews.org and securely at nicholas.kusnetz@protonmail.com.
BIG OIL SHILL
Carbon Capture: The Key Answer on Climate Change


By Dan Ervin
July 18, 2021
REAL CLEAR CLIMATE

Hard as it may be for many environmentalists to acknowledge, a technology that captures carbon dioxide emissions at coal plants needs to be a part of a global approach to carbon dioxide reduction.

It is a remarkable paradox: At a time when the rest of the world is looking toward America for leadership in combating global warming, the environmental movement refuses to accept the only technology that could make a real difference in reducing carbon emissions from coal and other fossil fuels that are the foundation of the global energy system. Coal plants with carbon capture technology along with advanced nuclear reactors can reliably provide all of the electricity needed globally with little or no CO2 emissions. These technologies will work in almost any region in the world.


Those politicians and environmentalists who claim that coal is a relic of the past ignore its importance in this country and abroad. Coal is the world’s leading fuel for electricity generation, providing nearly 40% of the world's electricity supply, and an even higher percentage in countries with fast-growing economies. For example, China last year added 40 GW of new coal-fired power capacity, more than four times the amount of coal capacity that was retired in the U.S. in 2020.

The U.S. cannot lead on climate by writing off coal or other fossil fuels. As Senator Joe Manchin recently said, “you cannot eliminate your way to a cleaner climate, you can innovate your way, but not eliminate your way.”

It’s absolutely critical that U.S. energy policy recognizes that American climate leadership will come directly from coal country and advanced fossil fuel technologies along with innovative nuclear reactor designs. Unfortunately, Greens who claim to care the most about reducing emissions seem far more determined to boost wind and solar power than they do about producing replicable climate solutions that work both in the U.S. and abroad. The environmentalists are aided by financiers that earn enormous fees from financing solar and wind projects. Despite generous subsidies and mandates for renewable energy, solar and wind power combined provide 10.7% of U.S. electricity in 2020. Globally, they supply even less – 7% of power.

While wind and solar are growing, we must recognize that they are unreliable. A recent Texas heat wave – which is common – prompted the local grid operator to ask Texans to conserve electricity. A quick search of the Energy Information Administration’s data provides an explanation, wind generation was approximately a third of expectations. Coal and nuclear production remained constant and natural gas generation increased by approximately 25 percent. This is a clear illustration of the need for reliable generation by fossil fuels and nuclear plants.


Fatih Birol, director of the International Energy Agency, has called carbon capture -- not wind or solar generation -- the "most vital" technology being developed to reduce emissions. He and other energy experts understand that fossil fuels will remain mainstays of the global economy for decades to come.

Using these fuels with cost-effective technologies to capture and utilize their emissions is just the kind of innovative, advanced energy system both the U.S. and the world need. The challenge now is to make carbon capture a key part of a portfolio of solutions to decrease emissions.

Growing concern about climate change is an opportunity for a reality check in the debate over how to slow the rise in greenhouse gas emissions. It brings into sharp focus the most pressing challenge: Can it be done fast enough, cheaply enough and on a sufficient scale without carbon capture? The answer is simply no.

President Biden has said we must double down on federal investments and enhance tax incentives for carbon capture. He’s absolutely right and West Virginia should become a hub for development and the deployment of the technologies the world needs.

There is simply no credible way to address the climate challenge without becoming more practical about the way we generate electricity and the need for carbon capture. This shouldn't be a secondary piece of the solution to reduce global emissions but rather right at the heart of the effort.

Dan Ervin, PhD, is a Professor of Finance in the Perdue School of Business at Salisbury University.
OIL LOBBY REPORT
Oil and gas were core of Wyoming economy before pandemic, industry report finds


The sun sets behind an oil pump outside the town of Glenrock on October 14. A report by the American Petroleum Institute found that 26.3% of Wyoming's 2019 GPD was contributed to directly or indirectly, or induced, by the oil and gas industry.
Cayla Nimmo, Star-Tribune


Before the mass layoffs of 2020, one-sixth of Wyoming’s jobs and more than a quarter of its GDP came from the oil and gas industry.

A report released Tuesday by the American Petroleum Institute found that in 2019, the industry directly supported 28,270 jobs — 6.8% of the state’s total employment. It generated 18% of Wyoming’s GDP and 17.3% of its labor income, including wages, salaries, benefits and proprietors' income.

Through indirect impacts, which occur along the supply chain, and induced impacts, which come from the spending of industry-related earnings, oil and gas supported another 9.8% of jobs, 8.3% of GDP and 8.3% of labor income in the state.

Nationally, the industry impacted 5.6% of U.S. jobs, 7.9% of GDP and 6.8% of labor income, according to the report.

“Stepping back from those specific numbers, I think what this study tells us is that the oil and natural gas industry will be essential in the post-pandemic recovery,” said Frank Macchiarola, API’s senior vice president of policy, economics and regulatory affairs. “Not just in creating good paying jobs and economic growth, but also in providing for low-cost energy for the American people.”

Wyoming was especially vulnerable to the fuel demand crash caused by COVID-19. In 2019, it had the second-highest share of residents whose employment was impacted significantly by the oil and gas sector — 16.6%, behind Oklahoma’s 16.7% — and the highest proportion of labor income from the industry.

In total, 26.3% of Wyoming’s 2019 GDP was contributed to directly or indirectly, or induced, by the oil and gas industry — the fourth-highest percentage after Alaska, Louisiana and Oklahoma. And the state’s tax structure is structured around resource extraction.

“If you aggregate all of the tax revenue from oil and gas in 2019, it was $1.67 billion,” said Pete Obermueller, president of the Petroleum Association of Wyoming. “The annual general fund budget in Wyoming is about $3 billion. So one industry sector basically pays for half or more of the state's general fund.”

Over the last decade, U.S. natural gas production increased by about 60%, while oil production doubled, Macchiarola said. Despite the push by the federal government and a growing number of states to transition to electric vehicles and renewable energy sources, demand for oil is expected to continue rising through 2030, concluded a new report by researchers from Columbia University and the University of California, Davis.

But in 2019, Wyoming saw combined oil and gas production of 369,434,845 barrels of oil equivalent, according to the petroleum association — a 22.4% decline from its 2009 total of 475,782,140 barrels of oil equivalent.

And though, nationally, the oil and gas industry is rapidly nearing 2019 production levels as it recovers from its 2020 slump, Wyoming’s recovery has lagged behind other states.

Obermueller says the Biden administration’s restrictions on leases for new drilling — an executive order, intended to address climate change, that was struck down by a federal judge last month — has had a disproportionate effect on Wyoming.

“The biggest hurdle is that we are highly, highly dependent upon federal government rules and regulations and law, because there's hardly any hydrocarbons produced in Wyoming that’s not from federal lands or federal minerals,” Obermueller said. “So if you take the universities at their word that we have not reached peak demand, but we have federal policies that do not allow Wyoming to play in the space, that demand is going to be met by Texas, and North Dakota, and China, and Saudi Arabia and other places.”
How Big Oil keeps a grip on New Mexico – with the help of a major lobbyist

Records show the firm FTI and its fossil fuel clients benefit from local government ties

Cody Nelson for Floodlight and Adrian Hedden for the Carlsbad Current-Argus
This story is a collaboration with Floodlight and the Guardian.
JULY 20,2021

When Joe Biden paused oil and gas drilling leases on federal lands earlier this year, the alarm bells rang in southeastern New Mexico.

Officials in Eddy County – which, along with neighboring Lea County, holds New Mexico’s share of the oil- and gas-rich Permian Basin – immediately worried about potential economic fallout.

“This news is exceptionally disappointing,” county manager Allen Davis wrote in an email to colleagues. “The message couldn’t be more clear: southeast New Mexico is not a business friendly for an industry that has sustained the state of New Mexico finances for decades [sic].”



Situated in the Chihuahuan desert of New Mexico’s staunchly Republican southeast region, Eddy County is a rural, industrial area, where the top employers are in the mining and oil and gas industries. And county leaders appeared to be depending on their influential allies, including the international lobbying firm FTI Consulting, to keep it that way.

Carlsbad and Eddy County paid $50,000 for consulting firm services

FTI, best known for consulting large corporations, has previously worked on behalf of major oil and gas companies like ExxonMobil, Chevron and Cimarex.

But for the past several years, it has also had lobbying contracts with much smaller clients: Eddy County and the City of Carlsbad, the county seat.

Emails, contracts and other records obtained by Floodlight and the watchdog organization Documented show how FTI has used its footholds in Carlsbad and Eddy County for years to help push pro fossil-fuel messaging and policy. At the same time, FTI has been able to give its energy company clients easy access to local officials. The firm and one of its spinoffs are not registered as lobbyists with the state.


In the first quarter of this year alone, Carlsbad and Eddy County together paid at least $50,000 for FTI’s influence services. These publicly funded lobbying efforts have helped to maintain the fossil fuel industry’s stronghold in New Mexico – a state where Indigenous communities have criticized previous oil and gas policies as environmental racism because of the long-term impact on their health and land.




FTI has a reputation across the U.S. for running influence campaigns that give the impression they were started by local concerned citizens, despite being funded by big oil, a practice known as astroturfing. The New York Times reported that FTI staffers help run an organization called New Mexicans for Economic Prosperity, a coalition of business associations and other partners. Among them is the New Mexico Oil and Gas Association, which advocates for “responsible development” in the state, per the group’s website.

How FTI Consulting works for New Mexico officials

While it’s unclear exactly what FTI’s lobbying has achieved in southeast New Mexico, the firm has close ties to the extractive industries, and its relationship with the small localities of Carlsbad and Eddy County is unusual, especially for a company of FTI’s size.

For Carlsbad and Eddy County, contracting with FTI was one way of trying to maintain the drilling status quo.

One way FTI has used its influence on behalf of New Mexican county officials is by helping wrangle press. When Eddy leaders needed help pushing back against Biden’s drilling order earlier this year, they got in touch with Jeff Murray, a former Democratic congressional staffer and a high-powered lobbyist working with FTI Consulting.

Murray offered to help them get “friendly press”, including in the conservative Washington Examiner, adding that it would be “a good opportunity to get our story out to a wide audience,” according to an email obtained by Floodlight.

A few weeks later, the Examiner published a quote from Davis, the county manager, in which he criticized Democratic governor Michelle Lujan Grisham’s response to the drilling lease moratorium: “When the oil and gas production from Eddy and [nearby] Lea counties provide 35% of her state’s general revenue money, you’d think she’d want to understand how the bread is going to be buttered.”

Soon after, the governor publicly said she was seeking a waiver to exempt New Mexico from the order, a move that environmentalists strongly opposed.

State representative Jim Townsend, a Republican from Artesia, New Mexico, said oil and gas “ought to work hand-in-hand” with local government officials.



“They (oil and gas industries) employ lots of New Mexicans, they pay lots of taxes and they have a big impact on our state. I’m a big proponent of getting employers at the table equitably and within reason,” he said. “Most of those jobs are high-paying, career-based jobs. They deserve a significant seat at the table.”

Carlsbad’s mayor, Dale Janway, defended the city’s work with FTI and said the primary reason for its contract with the firm was to consult on nuclear energy waste regulations issues at the federal level. He said the oil and gas industry keeps Carlsbad’s economy thriving.


“Given the thousands of local residents who work in the oil and gas industry, there’s clearly going to be a correlation between supporting this industry and supporting our community,” Janway said. “Our governing body is always going to do what we feel is best for Carlsbad and its citizens.”
Drilling brings money, but critics point to climate change and health concerns

Big oil’s presence has long been felt in the southeastern corner of New Mexico, where Eddy County sits.

The extractive industry took hold in the formerly humble ranching community first for the mineral potash and later for oil and gas – overwhelming roadways with truck traffic and making housing less affordable as transient workers moved into apartments, RV parks and hotels.

The area is home to the Carlsbad Caverns national park and the Guadalupe Mountains national park, major tourist sites that could be threatened by pump jacks and pipelines. Along the Pecos River, wildlife could be threatened by expanded industrial activity, including the endangered Texas hornshell mussel.



Critics say a tight relationship among government officials and the fossil fuel industry, facilitated by an aggressive lobbying firm, is not in the best interest of Carlsbad residents.

Nicole Ghio, senior fossil fuels program manager at Friends of the Earth, said funneling local tax dollars to oil lobbying firms derails needed reforms for the people of Carlsbad and Eddy County.

“For far too long, front-line communities have dealt with the irresponsible boom-bust cycle of fossil fuel development while being saddled with clean-up costs, exposed to toxic pollution, and the reality of climate change,” Ghio said.


Oil and gas drilling, which has boomed in Eddy County and is only expected to grow, is a major driver for ozone and other kinds of air pollution that cause health problems and are driving the climate crisis.

Air quality in Eddy County is among the worst in the nation, according to the American Lung Association, which gave it an F grade for ozone pollution – which can cause myriad health problems from chest pain to reduced lung function.



Rather than moving away from these industries, Eddy County officials are doubling down. After all, the local government – like the rest of New Mexico – relies on tax revenues from drilling. Oil and gas taxes were expected to contribute more than $30 million to Eddy County in fiscal year 2021.

The industry often touts its contributions to the state budget, especially for public school funding, which in fiscal year 2020 totaled over $1 billion. However, the state’s public services – including its schools – are ranked among the nation’s worst.
Ghostwriting and unregistered lobbying

Late last year, when both presidential candidates were debating how to handle oil and gas drilling leases on federal lands, FTI’s Jeff Murray stepped in to help local leaders in the southeastern New Mexico region craft their response.

He wrote a letter to Joe Biden and Donald Trump that extolled the virtues of oil and gas drilling in New Mexico. “Energy is one of the top industries in New Mexico, and more than half of oil production and nearly two-thirds of natural gas production takes place on federal lands in our state,” he wrote.

Murray then sent the letter to Eddy County officials, asking them to sign it. All five county commissioners as well as Davis, the county manager, signed, and a county letterhead was attached. FTI’s messaging was sent to the president and the future president under the banner of a county government

.

FTI has fostered relationships between local New Mexico officials and leaders of some of its large energy clients. For example, in 2019 Murray organized a trip to Washington DC for the former Eddy County manager as well as current County Commissioner Ernie Carlson. On the agenda were meetings with officials for Cimarex and Chevron – both of which have been FTI clients and drillers in Eddy County.

In addition to its work on the federal level, FTI has lobbied New Mexico state officials, including Democratic House speaker Brian Egolf. FTI representatives met with Egolf numerous times in recent years and even threw him a private campaign fundraiser, according to documents obtained by Floodlight and Documented. FTI’s Murray made a $1,500 in-kind donation to Egolf’s PAC.

However, neither FTI nor Jeff Murray are registered as lobbyists in the state’s database. Murray did not respond to a request for comment for this article.

Delaney Marsco, senior legal counsel for ethics at Campaign Legal Center, said the public has a right to know when special interests are paying to influence public officials.

“FTI is a sophisticated actor. If it’s evading lobbying registration requirements in New Mexico, which appears to be the case here, that’s a big problem – it means the public is being kept in the dark about FTI’s influence efforts,” Marsco said.

Murray left FTI in February to start his own firm, 535 Group LLC. Records show that 535 Group isn’t a registered lobbyist in New Mexico, either, though it had a $10,000 contract with Carlsbad and a smaller one with Eddy in 2021. Murray’s work in New Mexico appears to be the same in scope as when he was an FTI employee; the firm contracts with 535 still.

Despite the health and climate risks to reliance on a fossil fuel economy, officials in southeast New Mexico continue to push drilling. Davis, a top public official in the county, defended FTI’s pro- oil and gas lobbying in an email.

SEE




He wrote that there “is a lack of understanding about the business and fundamental economic drivers” that will be necessary to transition away from fossil fuels.

But Kayley Shoup, a Carlsbad-based organizer with the environmental group Citizens Caring for the Future, said local leaders are pushing a false narrative.

It “keeps our local community from having a seat at the table when it comes to this long economic transition that our country is and will be undergoing,” Shoup said.

'Eye of fire,' Exxon lobbyist's comments fuel renewed attacks on oil industry

BY RACHEL FRAZIN - 07/07/21

Environmentalists are ramping up their criticism of the oil and gas industry following revelations last week from an Exxon Mobil lobbyist on climate change and a viral "eye of fire" video from the Gulf of Mexico caused by a pipeline leak.

Progressives on Capitol Hill seized on the two events by pushing for robust climate provisions in forthcoming infrastructure legislation and renewing threats to haul company executives before Congress to testify.

Longtime congressional critics of the industry argued that the past week underscores the need to transition away from fossil fuels to mitigate climate change.


“Any reasonable person would look at the events of the past week—the ocean on fire and the fossil fuel industry actively complicit in the continuing climate crisis—and realize we need to pass the biggest, boldest climate infrastructure package possible,” Sen. Ed Markey (D-Mass.), sponsor of the Green New Deal in the Senate, told The Hill in a statement.

Rep. Raúl Grijalva (D-Ariz.), chairman of the House Natural Resources Committee, said that the events give “more power” to climate legislation and efforts to restrict drilling on public land and waters.

“It gives more power to those pieces of legislation because it’s a way to rein this in and it’s a way to indicate from this administration or from this Congress that that’s not going to be tolerated,” he said in an interview.

The firestorm started last week when an undercover activist group released a recording of Exxon lobbyist Keith McCoy discussing how the company has fought “against some of the science,” adding that Exxon’s support for a carbon tax was just a talking point. He also said he has sought to influence the infrastructure debate in Washington.

A few days later, a viral video showed a ring of fire in the Gulf of Mexico caused by a gas leak from an underwater pipeline belonging to Mexican state-owned oil company Pemex.

The two events come as Congress prepares to move forward on a bipartisan infrastructure proposal as some Democratic senators dig in on their demands for significant climate provisions.


In the Senate, this has led to something of a two-track system, where a bipartisan measure will be complemented by a likely Democrat-only package that will sidestep a GOP filibuster through the budget reconciliation process and carry a higher price tag.

Rep. Ro Khanna (D-Calif.), a former co-chair of the Congressional Progressive Caucus, said that while he wouldn’t draw any red lines, he’d like to see an infrastructure bill that gets rid of fossil fuel subsidies but includes investment in electric vehicles, clean energy tax credits and a requirement that power providers obtain a certain amount of their energy from renewable sources.

He said in an interview that the news of the past week “reinforces the view that there has to be climate legislation for an infrastructure deal.”

Khanna, chairman of the House Oversight and Reform Subcommittee on Environment, has for weeks discussed the possibility of subpoenaing major energy companies after executives declined to appear at recent hearings.

“Last week’s events crystallize the opinion of Democratic leaders that fossil fuel executives need to come into Congress to testify,” he told The Hill, saying he might try to seek testimony from leaders at Chevron, Peabody Energy and Shell.

“They will come in to testify to the Oversight Committee,” he said of industry in general. “I will do everything in my power ... to make sure that happens.”

Asked whether subpoenas were possible, he said, “that decision is the committee’s but let me just say everything has been discussed, everything is on the table and we will make sure they show up.”

Grijalva, too, said he would speak with Rep. Katie Porter (D-Calif.), who leads the Natural Resources Oversight and Investigations Subcommittee, about possibly compelling the companies to testify.

Lindsay Reilly, a spokesperson for Porter, said the lawmaker “is determined to get answers from the oil and gas industry on behalf of the American people, and she is open to all options, including subpoenas, to get those answers.”

Frank Maisano, senior principal at Bracewell LLP’s policy resolution group, which represents various energy companies, dismissed the idea that the Exxon and Gulf of Mexico incidents will make much of a difference on Capitol Hill, adding that they were being used by activists to “try to jam their agenda at you.”

“The fact that all of these things are happening at once gives them the ability to have a talking point,” Maisano said.

He also characterized the subpoena threats as “political grandstanding.”

After the tapes of the lobbyist's remarks were published, Exxon Mobil CEO Darren Woods attempted to distance the company.

“Comments made by the individuals in no way represent the company’s position on a variety of issues, including climate policy and our firm commitment that carbon pricing is important to addressing climate change. The individuals interviewed were never involved in developing the company’s policy positions on the issues discussed,” Woods said in a statement last week.

Pemex, meanwhile, blamed the Gulf of Mexico fire on a gas leak, but said there was no oil spill and that the fire was extinguished after about five hours.
Oil industry: Shareholders revolt for climate action

Powerful investors are demanding climate action from oil and gas giants for the sake of their bottom lines as well as the planet.



Oil industry giants like Exxon and Shell are coming under increasing pressure to adopt energy transition measures



It was an earthquake for the oil industry and its financiers.

Shareholders of ExxonMobil, the world's second largest oil and gas giant, elected three candidates from the hedge fund Engine No. 1 to the company's 12-member board of directors in a crucial vote at the end of May.

The fund holds just 0.02% of the shares in ExxonMobil and had campaigned to accelerate the group's transition from polluting fossil fuels to clean energy. In doing so, it hoped to secure Exxon's profitability in the long term.

"Shareholders have spoken and the message is clear. It's time for board accountability," said Anne Simpson of Californian pension fund CalPERS. "We need climate competent directors willing and able to drive the energy transition."

The three largest pension funds in the US — CalPERs, the Californian Teachers' Pension Fund CalSTR and the New York State Common — supported the initiative, as did Black Rock, the world's largest asset manager and Exxon's second largest shareholder. "The votes at Exxon mark a new era in financial markets, with investors behaving like owners," said Simpson.

Companies without a climate strategy need to change, CalSTR said in a statement to DW. "Shareholders have the power to effect change at even the most resistant companies... to contribute to the sustainable value of their investments. "



Chevron is among a number of big oil and gas companies whose shareholders are pushing it to pollute less

The power of shareholders in large corporations


Other corporations have also felt the pressure from so-called impact investors, who advocate for a more sustainable corporate strategy. At the end of May, 61% of the shareholders of US oil giant Chevron also voted in favor of drastically reducing the company's emissions. Although the vote is not binding, it was a clear signal to the company's management that shareholders are increasingly demanding climate protection.

Last year, the French oil company Total set itself a zero-emissions target by 2050. This came after negotiations with investors who demanded a significant change in direction — with success. The initiators are part of ClimateAction100+, a network of over 500 investors responsible for $54 trillion (€45 trillion) in assets. They are pushing to bring emissions in large corporations in line with the goals of the Paris Climate Agreement to limit warming to well below 2 degrees Celsius above pre-industrial temperatures.



Following pressure from lobby groups, companies like BASF, Shell, General Electric, Eni, BP and Occidental Petroleum have also announced steps towards emissions cuts.

"Every large oil and gas company will need to adapt to the global energy transition — this is an unavoidable reality, even though not all management teams currently realize that fact," said Pavel Molchanov, financial analyst at consulting firm Raymond James. "That means investing less in oil and gas production, and more in low-carbon energy."

But as recently as October, Exxon CEO Daren Woods had rejected the claim that climate change poses a long-term risk to the industry. The company issued a public apology last Thursday after one of its senior lobbyists was caught in a Greenpeace sting operation admitting that Exxon worked with shadow groups against climate action and only supported a carbon tax because they did not think it politically viable.



Fossil fuel companies have volatile share prices

Oil, gas and coal could soon be burning money

It's not just about the climate.


If investors are to share in profits through dividends, a company must first generate profits. But Exxon, for example, made losses of $22 billion last year. Engine No. 1's campaign focused on how the company can stay profitable by moving away from fossil fuels.

"This isn't a climate organization, this is a hedge fund driven by financial returns," said Mike Coffin, financial analyst of the London-based financial think tank Carbon Tracker. But although the financial risk of investing in oil, gas and coal is constantly growing, hundreds of billions of dollars continue to be invested annually in fossil fuel projects.

The upheavals of recent years are just the beginning, said Coffin. "The energy transition is only accelerating. It's very hard to predict what will happen over the coming years. And that's where the risk comes."

Even if drastic measures are taken today, investments of $10 trillion in the oil, gas and building sectors risk becoming "stranded assets," investments that generate losses instead of profits. About 2% of global GDP, as of 2015, would be effectively burned as a result.

Extinction Rebellion protestors are calling for an end to oil exploration and demanding governments and banks stop financing fossil fuel projects

Exxon coup also possible in Europe?


Still, a vote like the one at Exxon in the US would hardly be conceivable in Europe today, said Guillaume Prache, managing director of Better Finance, the interest group representing European shareholders.

On the one hand, this is because many investors are withdrawing their capital from climate-damaging companies instead of working to change them. As a result, investors who are less concerned about sustainability goals buy into these companies cheaply, thus losing the influence of critical investors, said Prache. "What will happen when their majority is owned by Chinese or Middle Eastern treasures? You think that are huge cash flows will be put to accelerate the energy transition? I'm really not sure about that."

What's more, it's much more difficult for private investors in the EU to get involved in the running of a company, for instance by drafting resolutions, said Prache. These procedures would have to become simpler and more digital. "Give the small investors the power to exercise their votes... and you will see things happening like what happened at Exxon."


Since 2016 companies have been drilling for oil even in the Arctic



For now, wind turbines are not replacing oil


The restructuring of global corporations takes years or even decades. In the case of Exxon, some observers doubt how serious the hedge fund Engine No. 1 is about sustainability — and whether they really live up to the title of "activist investors."

One of the new board members, Alexander Karsner, is a top manager at Google, while his colleague on the board Gregory Goff earned money in the oil and gas industry for decades. Writing in a blog post, stock market analyst Paul Sankey said: "Anyone who thinks that Greg Goff is going to storm into the Exxon Mobil boardroom and start yelling about wind farms does not know Greg Goff... We know Greg Goff, this will be orderly."

Goff would be more concerned with whipping the group into shape rather than achieving net zero, Sankey said. But the former no longer excludes the latter.

This article was translated from German.

DW