Thursday, January 21, 2021


Big Oil Takes Unsteady Steps to Cut Transition Risk


Tim Quinson
Wed, January 20, 2021

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(Bloomberg) --

Of the biggest U.S. oil and gas companies, EOG Resources Inc. is the least prepared for a low-carbon economy, according to BloombergNEF.

That’s based on an analysis of the company’s business-model transition risk. The overall research focuses on which companies are developing low-carbon revenue streams by investing in renewables; whether (or not) they’re expanding their fossil-fuel operations; and how threatened their current business is to the potential decline in oil demand.


EOG, the largest shale-focused independent oil company, scored the worst, partly because pure exploration and production companies face more transition risk, according to BNEF. Integrated companies tend to have stronger financial positions and a greater variety of skills that enable them to invest in and develop low-carbon businesses.

Investment in scalable, low-carbon business models is the most important part of BNEF’s score, said Jonas Rooze, BNEF’s head of sustainability research.

“EOG is doing nothing in areas like clean energy, hydrogen or carbon capture, as far as we can tell,” Rooze said. The company has poor scores on all its transition activities, he said.

In response to the BNEF assessment, Houston-based EOG said its long-term strategic planning process involves an analysis of “market forces that present risks and opportunities to our business plans and strategy.” The company said it has set up the EOG Sustainable Power Group to identify and implement low-emissions electricity generation to reduce its “carbon footprint with favorable economics,” including the recent startup of an eight-megawatt solar and natural gas hybrid electric power station.

Chevron Corp. is in the best position relative to its biggest U.S. competitors, such as Exxon Mobil Corp., ConocoPhillips and Occidental Petroleum Corp., according to the study. The company is exploring renewables, electric-vehicle charging and battery systems, and making some clean-energy acquisitions. Its activities in carbon capture and storage in particular rival the best in the world, Rooze said. Last week, Chevron said it’s investing in a California startup that captures carbon dioxide from factories and then converts the greenhouse gas into gravel and other building materials.

Chevron still lags far behind European rivals, including Royal Dutch Shell Plc, Total SE and Equinor ASA, in most other investment areas, Rooze said. Where Chevron is installing dozens of megawatts of renewables or EV charging points, the European companies are installing hundreds or even thousands in some cases, he said.

BloombergNEF is working with Bloomberg Intelligence (BI), both of which are research centers within Bloomberg LP, on climate transition scores for 39 major oil and gas companies. The scores are designed for investors to identify companies most threatened by accelerating global climate action and technological transformation, and to understand the material transition factors affecting the industry.

BI is focused on the companies’ current carbon performance and future targets, while BNEF examines transition risks posed by current business models and how companies are adapting their models.

It’s not all about whether a company is engaging with low-carbon technologies. For example, in the face of declining oil demand, companies are more likely to be forced to write down the value of their reserves if they’re unable to produce it competitively, or if it will take them many years to produce all of it. Meanwhile, companies like EOG that devote significant funds to high-carbon activities rather than transition to cleaner energy are actively increasing their transition risk, Rooze said.

“Setting up low-carbon businesses represents the opportunity side of the equation,” he said. “But these are still oil and gas companies and you can't measure the risks without getting to grips with that.”

Sustainable Finance in Brief

Investors managing more than $2 trillion of assets are calling on world leaders to address the “unfolding humanitarian crisis at sea” where marine workers are stranded due to border closures and restrictions on movement imposed to contain Covid-19. Fidelity Investments and Capital Group ranked the worst of the world’s 10 biggest asset managers last year on pushing high-carbon emitters to curb their role in global warming. China is set to post the fastest growth in Asia for environmental, social and governance investments after the country boosted exchange-traded fund assets 18-fold in the past two years. Total SE became the first oil major to quit the influential American Petroleum Institute due to a clash on climate change policy. Allianz SE may cut investments in stocks and bonds issued by emissions-intensive companies as it steers away from businesses that foment global warming.

Bloomberg Green publishes the Good Business newsletter every Wednesday, providing unique insights on climate-conscious investing and the frontiers of sustainability.

 Greta Thunberg perfectly trolls Trump on his last day in office by using his own words against him


Greg Evans

Never let it be said that Greta Thunberg never misses her shot especially when she is making fun of Donald Trump

The teenage climate change activist has a long-running feud with the ongoing president mostly due to their opposing takes on the climate crisis. 

In the past the Trump had mocked Thunberg on Twitter, posting things such as “She seems like a very happy young girl looking forward to a bright and wonderful future. So nice to see!” back in September 2019. At the time Thunberg briefly changed her Twitter bio to “A very happy young girl looking forward to a bright and wonderful future.”

Unfortunately for Trump, lightning has struck twice, as Thunberg has returned to the well to mark Trump’s final departure from the White House. The president and first lady, Melania Trump left Washington DC on Wednesday morning by helicopter, as Trump has opted not to attend Joe Biden’s inauguration ceremony. 

The sight of Trump leaving the White House for the last ever time was celebrated by many but perhaps none were as good at Thunberg who used Trump’s own words against him again. She tweeted, “He seems like a very happy old man looking forward to a bright and wonderful future. So nice to see!”

Too bad Trump is no longer on Twitter as he won’t get to see or respond to this. Needless to say, the rest of Twitter enjoyed the activist taking another swipe at Trump on his way out of office.



this makes me so happy right now


Greta Thunberg Mocks Ted Cruz, Welcomes U.S. Return to 'Pittsburgh Agreement'

Swedish climate activist Greta Thunberg has mocked Senator Ted Cruz (R-TX) after he criticized President Joe Biden's decision to rejoin the Paris climate agreement.
© JONATHAN NACKSTRAND/AFP/Getty Images Swedish climate activist Greta Thunberg takes part in a Fridays For Future protest in front of the Swedish Parliament (Riksdagen) in Stockholm on September 25, 2020. Thunberg has mocked Senator Ted Cruz for his opposition to the Paris climate agreement.

"So happy that USA has finally rejoined the Pittsburgh Agreement. Welcome back!" Thunberg tweeted on Thursday in response to Cruz' comment, without mentioning him by name.

Cruz was one of many Republicans to take aim at Biden's executive order rejoining the international agreement aimed at tackling climate change, but his particular statement drew attention on social media.

"By rejoining the Paris Climate Agreement, President Biden indicates he's more interested in the views of the citizens of Paris than in the jobs of the citizens of Pittsburgh," Cruz tweeted on Wednesday.

"This agreement will do little to affect the climate and will harm the livelihoods of Americans."

Many other Twitter users found Cruz's phrasing odd, and suggested he believed the Paris agreement was written by the residents of the French capital or its local government, rather than being an international agreement signed by 189 countries.

Others pointed out that the city of Pittsburgh, Pennsylvania had publicly backed the agreement in 2017 in response to former President Donald Trump's decision to pull out of the accord.


By rejoining the Paris Climate Agreement, President Biden indicates he’s more interested in the views of the citizens of Paris than in the jobs of the citizens of Pittsburgh. This agreement will do little to affect the climate and will harm the livelihoods of Americans.— Senator Ted Cruz (@SenTedCruz) January 20, 2021

"As the Mayor of Pittsburgh, I can assure you that we will follow the guidelines of the Paris Agreement for our people, our economy & future," Mayor Bill Peduto tweeted at the time.

Peduto, a Democrat, won election to a second term as mayor in 2017 and is due to remain in office until 2022. He highlighted the city's commitment to the Paris agreement again on Wednesday.

"Pittsburgh has exceeded our Paris commitments," Peduto said. "Recognized by @usmayors as National Environmental Initiative of 2020, we've met our 2030 goal of 100% renewable energy for city operations, ten years early. If we can do it in a city that is/was fueled by coal/nuclear, you can, too."

The graphic below, provided by Statista, illustrates the countries which participate in the Paris Agreement.© Statista Statista




Thunberg, who has been a frequent target for criticism from some conservatives, also mocked Trump as he left the White House for the last time on Wednesday in a tweet that was a callback to a comment the former president made about her.

"He seems like a very happy old man looking forward to a bright and wonderful future. So nice to see!" Thunberg tweeted, including a photo of Trump raising a first while boarding Marine One on the White House lawn.

Biden issued 15 executive orders on Wednesday and more are expected today. In addition to rejoining the Paris climate agreement, the U.S. has rejoined the World Health Organization (WHO).

Ted Cruz criticised for claiming Biden’s Paris Agreement reversal will ‘harm livelihoods of Americans’

The US senator said the agreement ‘will do little to affect the climate and will harm the livelihoods of Americans’ / REUTERS

By Leah Sinclair

Ted Cruz has been criticised for calling out Joe Biden’s decision to reverse the US’s withdrawal from the 2016 Paris Agreement to tackle climate change.

Following the inauguration on Capitol Hill on Wednesday, Mr Biden issued 17 executive orders, undoing some of the policies enforced by predecessor Donald Trump, including the controversial decision to withdraw from the multilateral agreement.

The international treaty is considered the biggest global effort to curb climate change, which aims to limit global warming “well below” 2C compared to pre-industrial levels.

The agreement was signed by world leaders in Paris before Mr Trump pulled out of the deal in 2017.

Mr Cruz, who supported Mr Trump’s claims that the election was “stolen” by the Democrats, tweeted: “By rejoining the Paris Climate Agreement, President Biden indicates he’s more interested in the views of the citizens of Paris than in the jobs of the citizens of Pittsburg

“This agreement will do little to affect the climate and will harm the livelihoods of Americans.”

The tweet from Mr Cruz ignited criticism for indicating that the resurgence of the deal will only benefit residents of the French capital despite it being a multinational treaty.

Among those calling out the Republican’s tweet was Pittsburgh Mayor Bill Peduto and environmental activist Greta Thunberg, who sarcastically tweeted: “So happy that the USA has finally rejoined the Pittsburgh Agreement. Welcome back!”

Congresswoman Alexandria Ocasio-Cortez, D-N.Y., also responded to Mr Cruz’s tweet, saying: "Quick question: do you also believe the Geneva Convention was about the views of the citizens of Geneva?"

Mr Cruz’s comments come as Mr Biden continues to make a number of changes, including an increase in coronavirus measures to tackle the pandemic.

Coronavirus has claimed over 406,000 lives according to Johns Hopkins University, and it’s believed Mr Biden is set to sign 10 executive orders to combat the widespread growth of the virus.

Mr Biden's Covid-19 task force coordinator, Jeff Zients, told reporters that under Mr Trump there was no clear strategy at a federal level.

"As President Biden steps into office today, that all changes," he said.

The Trump administration was widely criticised for its approach to handling the pandemic.

"The American people deserve an urgent, robust and professional response to the growing public health and economic crisis caused by the coronavirus (Covid-19) outbreak," an introduction to the plan said.

Their aim is to give 100 million vaccine doses by the end of April and to safely reopen schools within 100 days.

Community facilities and stadiums will also become vaccine centres and there will be a mandate to ensure those on federal government property are social distancing and wearing masks.


TC Energy to cut 1,000 construction jobs, halt Keystone XL work

WINNIPEG, Manitoba/WASHINGTON (Reuters) - TC Energy Corp will eliminate more than 1,000 construction jobs in coming weeks and halt work on the Keystone XL oil pipeline after U.S. President Joe Biden revoked the project's presidential permit, the company said in an email to employees.
© Reuters/Terray Sylvester FILE PHOTO: A depot used to store pipes for TC Energy Corp's planned Keystone XL oil pipeline is seen in Gascoyne

Calgary-based TC Energy confirmed the authenticity of the email, sent by KXL President Richard Prior on Wednesday and seen by Reuters.

Biden's decision to cancel the permit is likely to be the project's death knell, after more than a decade of legal battles and shifting fortunes based on who held office in the White House. Opponents of the line fought its construction for years, saying it was unnecessary and would hamper the U.S. transition to cleaner fuels.

Proponents of the line argued that it created several thousand good-paying jobs and that pipelines remain the safest ways to transport fuel, but many analysts thought the chances of its completion were slim.

"KXL never quite escaped the shadow of uncertainty in the eyes of many producers," said Thomas Liles, vice president for North American shale at Rystad Energy, in an email.

The United States imports more crude from Canada than any other nation, receiving roughly 3.8 million bpd in 2019, according to U.S. Energy Department figures.

The line, which would have carried 830,000 barrels of oil per day through the United States to Nebraska, was already well under construction in Canada.

Prior, in his email, said they will start to shut down construction at U.S. pump station sites and the Canadian portion of the project in coming weeks.

"I believe this will send a concerning signal to infrastructure developers that resonates far beyond our project and will stifle innovation for a practical transition towards sustainable energy," he said in the letter.

During the U.S. campaign, Biden had committed to canceling the project, which has been in development since 2008. Former President Donald Trump approved a permit for the line in 2017 shortly after taking office, but the line afterward faced numerous legal challenges that hampered construction.

(Reporting by Valerie Volcovici in Washington and Rod Nickel in Winnipeg; Editing by Steve Orlofsky)