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LIBERAL SENATORS’ FOSSIL FUEL PLEA TO GARLAND: Liberal senators are calling on Attorney General Merrick Garland to bring lawsuits against the biggest fossil fuel industry for what they say is a coordinated effort to mislead consumers and downplay climate change in pursuit of profits amid record-breaking temperatures.
In a letter published today, the climate hawks called on the Department of Justice to file suits against ExxonMobil, Shell, and possibly other fossil fuel companies, which they allege have violated “federal racketeering laws, truth in advertising laws, consumer protection laws, and potentially other laws.”
“The fossil fuel industry has had scientific evidence about the dangers of climate change and the role that burning fossil fuels play in increasing global temperatures for more than 50 years,” the letter reads. “Despite these companies’ knowledge about climate change and the role their industry was playing in driving carbon emissions, they chose to participate in a decades-long, carefully coordinated campaign of misinformation to obfuscate climate science and convince the public that fossil fuels are not the primary driver of climate change.”
Who signed the letter: Democratic Sens. Bernie Sanders of Vermont, Jeff Merkley of Oregon, and Elizabeth Warren and Ed Markey of Massachusetts.
The senators likened the fossil fuel industry’s efforts to the tobacco industry’s campaign to bury the dangers of smoking while pushing tobacco products onto young people – stating that both industries have used the same public relations firm and researchers since the 1950s.
What they’re asking for: The climate hawks are asking for the Department of Justice to join forces with partners at the Federal Trade Commission, and other law enforcement agencies to file suits against the major players that may have participated in the alleged misinformation campaign and contributed to the fossil fuel industry’s influence on climate change.
On the topic of climate lawsuits: In April, the Supreme Court rejected several disputes with oil and gas companies that sought a venue change for nearly two dozen lawsuits filed by lower-level governments blaming the industry for contributing to climate change. Energy companies had requested to shift the lawsuits from state to federal court, reasoning they are governed by federal law. Defendants often have better odds in federal court – but the companies were ultimately rebuffed in their pursuit.
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OIL ON TRACK TO SEE BIGGEST MONTHLY GAIN IN MORE THAN A YEAR: Oil prices are set to post their biggest monthly gains in more than a year today, amid expectations that Saudi Arabia will extend its 1 million bpd voluntary supply cuts through September, tightening supplies and outpacing expected demand growth.
Brent crude futures rose above $85 per barrel this morning, while U.S.-based West Texas Intermediate climbed by a dollar to around $81.50 per barrel. Both have seen five straight weeks of gains, and are on track to close out July with the largest single-month gain since January 2022 (when Russia was preparing to invade Ukraine), according to Reuters.
“Oil prices are up 18% since mid-June as record high demand and Saudi supply cuts have brought back deficits, and as the market has abandoned its growth pessimism,” Goldman Sachs analysts said in a note yesterday, which they attributed to lower supply from OPEC members, including Saudi Arabia, which extended its voluntary production cuts this summer.
“We still expect the extra 1 million bpd Saudi cut to last through September, and to be halved from October,” they added.
Still, the bank left its Brent forecasts for the end of the year unchanged, at $86 per barrel, with an expected increase of up to $93 per barrel in the second quarter of 2024.
FIRST NEW VOGTLE REACTOR ENTERS OPERATION: Georgia Power’s Plant Vogtle 3 nuclear reactor entered commercial operation today, the first new U.S. nuclear reactor to come online in more than 30 years.
The Vogtle 3 reactor can power an estimated 500,000 homes and businesses, according to Georgia Power CEO Kim Greene, who said its operational status “marks the first day of the next 60 to 80 years that Vogtle Unit 3 will serve our customers with clean, reliable energy.” Each of the reactors will provide 1,000 MW of power, and, once fully operational, will be the largest generator of clan energy in Georgia.
Construction started on the Vogtle 3 reactor in 2013, and the project as a whole has run $17 billion over budget.
Another win for Georgia Power: It was cleared by the National Regulatory Commission to begin loading nuclear fuel into its Unit 4 reactor, slated to come online either late this year or early 2024, officials said. It plans to begin loading the fuel in September.
… MEANWHILE, CANADA EMBRACES NUCLEAR AFTER DECADES-LONG PAUSE: Canada started work this month to expand a nuclear power plant in Ontario and has pledged to add three small modular reactors at its existing Darlington nuclear site, becoming the latest country to shift its approach on nuclear as it looks to meet rising demand and also deliver on its climate commitments.
Currently, the utility Bruce Power is weighing plans to add 4.8 additional gigawatts of new capacity to its existing plant in Ontario—which, if approved, would make it the world’s largest nuclear power plant.
The news comes as Canada weighs plans to mandate a net-zero power grid by 2035, an ambitious goal and one that many see as achievable only with additional nuclear power supply.
ADNOC’S NEWEST EMISSIONS TARGET: UAE state energy company Adnoc has unveiled its emissions reduction targets as the country prepares to host this year’s COP28 climate talks in December.
According to the Financial Times, Adnoc announced that it would aim to achieve net zero emissions from its operations by 2045 rather than its previously stated target of 2050, and cut methane emissions to zero by 2030. The company’s newest net zero goal is the most ambitious emissions reduction target of any large state-owned oil and gas company – but only covers scope 1 and 2 emissions produced from its own operations. The targets exclude scope 3 emissions – that is, including the emissions caused by the products it sells – which represent the majority of emissions linked to fossil fuel consumption.
The announcement comes as the UAE has been facing criticism from activists and lawmakers over its preparations for the climate talks, which will be led by Adnoc CEO Sultan al-Jaber. Many have criticized al-Jaber’s role as chief executive as being at odds with his leadership of the climate summit.
AUSTRALIA’S LITHIUM CHALLENGE: Australia’s first lithium hydroxide refinery is running into setbacks, with production of the chemical plummeting as the country attempts to move into battery metal refining, according to Bloomberg.
The Kwinana refinery produced just 142 tons of lithium hydroxide in the three months to June 30, the project’s joint venture partner IGO Ltd. said in a statement Monday. That figure was down 85% from the March quarter, which was “significantly below expectations.” IGO said the declining production was due to “ongoing technical challenges following the scheduled shutdown during the quarter.”
IGO gave no production guidance for the 2024 fiscal year, but said it will aim to reach 50% capacity by the end of 2023.
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