Companies back US carbon price to cut greenhouse gases
More than a dozen companies, including large US electric utilities and major oil refiners, are joining together to push the federal government to put a price on greenhouse gas emissions.
The 13 companies today launched the CEO Climate Dialogue, an effort to convince Congress to pass legislation to drive major reductions in US GHG emissions.
The coalition, which includes BP, Shell, Dominion Energy, Exelon and Pacific Gas & Electric, issued a set of principles they say should guide any legislation, including the need for an economy-wide carbon price, certainty for its emissions-reduction timeline and ultimate goal of at least an 80pc cut in US GHG emissions by 2050.
An effective carbon pricing policy "is one of the strongest levers we can pull to foster innovation, inspire new technology and drive lower carbon consumer choices," Shell US president Gretchen Watkins said.
The companies said they plan to initiate "constructive and ongoing discourse" with members of Congress, and will try to build support for climate legislation "in their home states and districts and in the public sphere."
One of the most vocal supporters of congressional action, senator Sheldon Whitehouse (D-Rhode Island), called today's announcement a good sign but said more companies need to break with industry trade groups that have been "relentlessly hostile" to federal efforts to cut emissions.
"The test will be whether these companies make good on their promise," he said.
Near-term action is unlikely, as President Donald Trump and the Republican-controlled Senate remain opposed to setting limits on domestic GHG emissions. Democrats in the US House of Representatives are working on legislative proposals to build support for future action and to put political pressure on the White House and Republicans.
Many of the companies that make up the group are also members of other efforts to seek a federal price on GHG emissions or are covered by existing state programs, such as in California and the northeast US, that use a carbon price to drive emissions cuts.
For example, BP and Shell are among five oil sector companies in the Climate Leadership Council, which is pushing for a federal carbon tax to reduce emissions. The new CEO Climate Dialogue is not specifically calling for a tax or system such as cap-and-trade to serve as a pricing mechanism.
Other members of the dialogue include BASF, Citi, Dow, DTE Energy, DuPont, Ford Motor Co., LafargeHolcim, and Unilever, with support from environmental organizations the Center for Climate and Energy Solutions, Environmental Defense Fund, the Nature Conservancy, and World Resources Institute.
Related news posts
Spain-Portugal congestion income up by 554pc in March
Spain-Portugal congestion income up by 554pc in March
London, 19 April (Argus) — The spread between the Spanish and Portuguese spot index prices has widened in the first quarter of 2024, with Portugal clearing at the lowest price in Europe in March, Iberian power exchange Omie reported. Spanish and Portuguese day-ahead market prices have cleared at larger spreads between them compared with the first quarter of 2023, Omie data show. Congestion income between the two at times of decoupling more than doubled on the year in January, but fell in February. March registered the largest decoupling, supporting congestion income to 554pc compared with February, and was up by 172pc from March 2023. Negotiated output in the intra-day market auctions increased by 19.6pc on the month, and rose by 10pc from March last year. But lower prices pushed economic volume down by 43pc on the month, and by almost 76pc on the year. The volume of negotiated power in the day-ahead market in the first quarter of 2024 was up by 5.49TWh from the same period in 2023. March accounted for the largest increase, rising to 21.52TWh from 19.39TWh in March 2023. 1Q24 spot index price down Spot index prices rose by €4.64/MWh on the year in January, but fell during the rest of the first quarter. February cleared at an average discount to the previous year of €93.92/MWh, and March of €70.02/MWh. Combined the first quarter of 2024 has cleared below half of the same period in 2023. Portugal cleared at the lowest average price among European day-ahead market indexes in March, followed by Spain at a €1.03/MWh premium. The Spanish spot has cleared at an average of €5.82/MWh so far in April, sharply below the €73.77/MWh it cleared at in April 2023. This is also below expectations in the over-the-counter (OTC) market, as the April contract expired at €23.55/MWh at the end of March. The Spanish spot also cleared below zero for the first time . Gas-fired output down, hydropower generation up CCGT generation has averaged 2.6GW in the first quarter of 2024, down from 4GW in the same quarter last year. Average nuclear output also fell by 800MW to 6GW compared with the same period. And the trend has continued so far in April, with nuclear generation averaging 4.9GW, down from 6.3GW in April 2023. Solar photovoltaic (PV) output increased by around 240MW, while wind generation remained similar to the previous year's levels. Operational wind capacity increased to 30.29GW from 30.18GW over the quarter, and PV to 25.22GW from 25.16GW. Hefty rainfall over the first quarter has supported an increase of hydropower output by 1.5GW. And the trend of higher hydropower generation has carried on so far in April, supported by stocks at around 75pc, the highest in a decade . Hydropower has averaged 6.2GW so far in April from 2.36GW in the same month in 2023. But wind generation is down by around 500MW compared with the same period last year. By Thess Mostoles Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US restricts future oil leasing in NPR-A
US restricts future oil leasing in NPR-A
Washington, 19 April (Argus) — President Joe Biden's administration today finalized a rule to prohibit future oil leasing on nearly half of the 23mn-acre National Petroleum Reserve in Alaska (NPR-A), adding to a flurry of recent environmental regulations that have frustrated oil interests. The rule will make it harder for oil producers to expand beyond development in the northeast section of NPR-A, where ConocoPhillips is developing its $8bn Willow drilling project. The rule outright bans new leasing on 10.6mn acres of the reserve, including around the ecologically sensitive Teshekpuk lake "special area" that is believed to hold large volumes of crude. The rule also restricts future leasing on an additional 2mn acres in the NPR-A that includes other special areas. "These natural wonders demand our protection," Biden said. "I am proud that my administration is taking action to conserve more than 13mn acres in the western Arctic." The US Bureau of Land Management (BLM) said it received more than 100,000 comments on its proposal to limit oil leasing in the NPR-A, a federal area established in 1923 where commercial oil production began only in 2015. The restrictions came after former president Donald Trump tried to increase drilling in the NPR-A through a plan to allow leasing on an additional 7mn acres, including around Teshekpuk lake. With the rule complete, BLM said it plans to solicit input on whether to revise the boundaries of the "special areas" and identify additional lands in NPR-A that could qualify for protection. Biden administration officials previously described the rule as creating a "one-way ratchet" for conservation that a new administration could not reverse. The rule will not affect existing oil and gas leases in NPR-A, including Biden's decision in 2023 to approve the Willow project, which is expected to reach a peak output of 180,000 b/d and that environmentalists strongly opposed. BLM said the 10.6mn acres of NPR-A that it closed to leasing has only medium or low potential for oil and gas resources. Environmentalists cheered the new NPR-A restrictions, with Sierra Club executive director Ben Jealous calling it a "major victory" for the arctic. But oil industry groups say the restrictions are a step in the wrong direction, adding to other recent regulations they say will make it hard to produce energy on federal land. BLM recently finalized more stringent bonding requirements for onshore and offshore land, in addition to finalizing a plan to lease federal land for conservation. "This misguided rule from the Biden administration sharply limits future oil and natural gas development in Alaska's National Petroleum Reserve, a region explicitly intended by Congress to bolster America's energy security," American Petroleum Institute senior vice president of regulatory affairs Dustin Meyer said. The administration has been working to finish regulations in recent weeks ahead of an upcoming deadline where any rule could be subject to "disapproval" in 2025 under the Congressional Review Act. The exact deadline remains in flux because it depends on how long the US Congress stays in session, but it could arrive as early as next month. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Troll and Oseberg gas production high in February
Troll and Oseberg gas production high in February
London, 19 April (Argus) — Gas output from Norway's Troll and Oseberg fields stayed high in February, and production from the two fields must fall over the remainder of the gas year unless the fields overproduce their quotas. Maximum output from Troll and Oseberg is capped by a yearly quota, set at 40.47bn m³ for Troll and 7bn m³ for Oseberg for October 2023-September 2024, although there may be some flexibility to overproduce or carry over unused quota from previous years. Production at Troll edged down in February from previous months to 124.6mn m³/d, but was still the fourth-highest for any single month. The three months with higher production were November 2023-January 2024. And production from the Oseberg area — including Oseberg proper and the South and East satellite fields — averaged 24.4mn m³/d, slightly down on the month but still the second highest since April 2022. High output from both fields means that they will have likely each produced more than half their quota in the first half of the gas year. Troll produced 18.9bn m³ from its 40.47bn m³ quota in the first five months of the gas year, the latest data available, while Oseberg produced 3.2bn m³ of its 7bn m³ quota. And deliveries on offshore system operator Gassco's network in March and April so far have been similar to in previous months, suggesting output from the two largest fields has held similarly high. Assuming this is the case, production from the two fields may have to hold at no more than 93mn m³/d and 17mn m³/d for the remainder of the gas year if they are to avoid exceeding their quotas. But if the fields were to produce to quota, plus unused quota from the 2022-23 gas year, output would be 103mn m³/d and 23mn m³/d, respectively. There is an average of 8.3mn m³/d of maintenance scheduled at Troll over the remainder of the gas year, leaving flexibility for the field to produce up to quota and still have capacity to produce another 10mn-15mn m³/d more. Oseberg has less than 1mn m³/d of maintenance scheduled, but producing to the quota while also producing unused quota from the 2022-23 gas year would take it much closer to its nameplate capacity of roughly 25mn m³/d. While the quotas could allow continued strong production, output in previous years has always been lower in summer than in winter. And operators could have an incentive to delay some production if prices in the remainder of the season fall far below prices for future summers. TTF monthly contracts for delivery in the remainder of the summer were assessed an average of €2.02/MWh ($2.15/MWh) below the summer 2025 price on Thursday, but €3.36-8.22/MWh above summer contracts for delivery in 2026-28. No return to strong reinjections Implied injections at fields where operators have halted gas reinjections — Skarv, Visund, Gina Krog and Gullfaks — ticked up to 8.2mn m³/d in February, the highest since November 2021. But the upwards move does not necessarily indicate a return to injections at levels similar to before mid-2021. Injections were low and steady on the month at Skarv and Visund, where operators have indicated that gas reinjections have mostly been halted for good. Injections were flat at Gina Krog as well, although production of 8.4mn m³/d was the highest since June 2022. And the spike in injections at Gullfaks was similar in size to other spikes since mid-2021, and still well below injections before mid-2021 (see implied injections graph). Aggregate output from all fields connected to the pipeline export network averaged 341mn m³/d in the month, down from January but up slightly on the year. By Rhys Talbot Monthly production from pipeline-linked fields Implied reinjections at selected fields Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Limited strike on Iran opens door to de-escalation
Limited strike on Iran opens door to de-escalation
Dubai, 19 April (Argus) — A limited aerial assault on the central Iranian city of Isfahan earlier today could mark the beginning of the end of the latest escalation in the Mideast Gulf. Iranian state media reported in the early hours of Friday, 19 April, several explosions over Isfahan at 04:00 local time. These were later confirmed by the Iranian military to have been the result of air defences bringing down three small drones over the city. Isfahan is the home to a number of strategically important facilities, among them the Shekari airbase that houses some of Iran's F-14 Tomcat fighter planes and SU-24 Sukhoi bombers, and a uranium conversion facility. There was "no impact or damage" to either, according to Iranian army commander-in-chief Seyyed Abdolrahim Mousavi. Other Iranian officials also sought to downplay the strike. Hossein Dalirian, spokesman for Iran's National Center for Cyberspace, said on social media platform X that it was so minor "it would not be considered an attack anywhere in the world." Ice Brent crude futures rose by nearly $3/bl earlier today, but are now trading below the previous settlement level. Iran and the wider Mideast Gulf region were on high alert as Israel weighed its options for a response to Tehran's assault on Israeli territory last weekend. That attack, involving more than 300 drones, ballistic missiles and cruise missiles, was the first ever direct assault on Israel from Iranian territory. As yet, there has been no official confirmation from either side that today's attack originated from Israel. Media reports quoted unnamed US and Israeli officials saying Israel had launched the drones, and Oman's foreign ministry condemned Israel "for its attack this morning on Isfahan". Iran's attack on Israel last weekend was itself in response to a suspected Israeli air strike on an Iranian diplomatic compound in the Syrian capital, Damascus, at the start of April. That killed seven members of Iran's powerful Islamic Revolutionary Guard Corps (IRGC), including two generals. Despite its magnitude, the Iranian retaliation was not only highly choreographed, but also telegraphed to key stakeholders beforehand in an effort to limit damage and casualties. Israel said immediately after the attack that almost all of Iran's drones and missiles were intercepted with the help of allied forces in the region and that there were no fatalities, only "light" damage to the Nevatim military base in Israel's Negev desert. De-escalatory strike The limited nature of Iran's strike prompted Israel's western allies to urge it to show restraint. The US appealed to Israeli prime minister Benjamin Netanyahu to "take the win" and claim victory for its defence. But as it became increasingly clear that a response without a military dimension would be unpalatable for Israel, the US and Europe turned their efforts to making sure whatever Israel chose to do was also limited and fell below a threshold that could trigger yet another escalation in tensions. "This was probably the level of attack that on one hand was necessitated by internal Israeli calculations within the security cabinet and broader political coalition, and by virtue of the pressure by allies and what the US was willing to countenance," said Geneva Graduate Institute senior research associate Farzan Sabet. "It was a limited strike with the message that we can hit you anywhere, anytime, and without having to resort to a major strike involving 300-plus missiles." In the days following Iran's attack on Israel, several key IRGC figures said Tehran had "decided to create a new equation with Israel" ꟷ specifically that Tehran would retaliate to any Israeli attack on its interests or citizens from Iranian territory. This would be a shift from the previous status quo, which would see Israel regularly target Iranian interest and officials in third countries, many times without response from Tehran. But the limited nature of Israel's latest attack, and the very concerted effort by Iranian officials, military personnel and media to downplay its severity and impact so far, suggests it could feasibly provide a de-escalatory off-ramp for Iran. "Should Israel's response be limited to this, the Islamic Republic will not be under pressure to retaliate," said Arab Gulf States Institute senior fellow Ali Alfoneh. But is too early to say whether today's incident is the totality of Israel's response. "We're running up to [the Jewish holiday of] Passover [on 22-30 April]. The Israelis may not have wanted to carry out a major retaliation ahead of Passover so as to avoid the threat of war hanging over the country during the holiday," Sabet said. "So it is very possible that more [retaliatory attacks] could come after Passover." By Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more