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Why This Matters: The up and down sides of the scrambled new world order are coming into focus. The energy price war continues to lead to cuts in production, which was badly needed for climate change purposes. Big banks like JP Morgan and Citi may have a reckoning ahead since they fueled much of the pumped-up supply – they invested $2.7 trillion in those fossil fuel companies most aggressively expanding production since the Paris agreement, according to The Banking on Climate Change 2020 report out this week by a number of prominent environmental groups. Storing jet fuel in tankers at sea and allowing sleepy truck drivers to take over the highways seem like recipes for disaster that could have huge negative environmental and safety impacts. We need a whole of government approach that minimizes these risks and moves to reduce permanently oil and gas production now while it makes economic sense.
The Banks Pumping Up Oil and Gas
The report’s most disturbing finding was about the banks’ practice of aggregating financing for the 100 companies that were aggressively planning new coal, oil, and gas extraction and related infrastructure. The groups found that of the $2.7 trillion in fossil fuel finance, $975 billion went to these companies — financing for these top 100 expanders skyrocketed 40% from 2018 to 2019. At times of low prices, often oil and gas demand increases, but COVID-19 may disprove this logic.
Arctic oil and gas production has become an investment that is being eliminated by banks — but COVID-19 may also play a role in reducing production if there continue to be interruptions to transporting workers to the Arctic oil fields, all of which is good news for climate change. Similarly, slowdowns in the production of dirty oil from the Dakotas and fracking in the Permian Basin of Texas would be welcome news, as long as the government can keep production from surging again. In the “tar sands sector” according to the environmental NGO’s report “bank financing has fallen since 2017, though 2019 levels remain higher than 2016.” And in order to get rid of excess jet fuel, oil and gas companies may begin to mix it into diesel gas, which is more profitable right now, but ultimately this is another way to prop up the oil and gas market.
H/T to my brother Ted M who is keeping the supply chains intact — make sure those truckers get enough sleep!
Yesterday at the annual meeting of the United Nations General Assembly, Chinese President Xi Jinping pledged to achieve “carbon neutrality before 2060” with the aim of hitting peak emissions before 2030. China had choice words for the Trump administration and its complete lack of international leadership on climate change action. Chinese foreign ministry spokesman Wang […]
The world’s richest one percent cause more than double the CO2 of the poorest 50% according to a new study from Oxfam. From 1990 to 2015, CO2 emissions rose by 60%; experts saw the wealthiest one percent’s emissions rise three times more than those of the poorest half during that period.
Why this matters: While the wealthiest indulge in luxuries that contribute more to climate change, a federal report found that the poor will be among the earliest victims of climate crises and will be impacted the most.
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