Germany leads the world in harnessing the benefits of energy efficiency, followed by Italy, the European Union, China and France, according to a new ranking of the world's 16 largest economies. The United States was near the bottom, placing 13th.
U.S. oil demand reversed course in dramatic fashion in 2013, as the nation's growth in crude consumption outpaced perennial leader China for the first time since 1999, according to oil company BP's annual compendium of world energy statistics.
The U.S. increase follows two years of declines, and dampens hopes that the world's largest oil guzzler was permanently reining in its appetite for crude. The nation's oil use rose by 400,000 barrels per day to a daily draw of 18.9 million barrels; China's oil consumption grew by 390,000 barrels a day, to 10.8 million barrels a day, according to the BP figures released last month.
"Are these data points a harbinger of things to come or just an aberration?" asked Christof Rühl, group chief economist at BP. "Too early to tell is the appropriate response."
ExxonMobil could restart the northern leg of its Pegasus oil pipeline within a year, but the company's pre-startup tests could leave behind threats large enough to endanger the public, according to a review of Exxon's proposal.
Those details and others are laid out in Exxon's repair plan for the Pegasus northern segment, a document that was submitted to federal pipeline regulators at the end of March. The so-called "integrity verification and remedial work plan" was not publicly released, but InsideClimate News obtained a copy through a public records request.
Exxon plans to conduct stress tests on the pipeline to prove that it can be safely restarted. But the company also said if high-pressure tests trigger a significant number of pipeline failures, it might lower the pressures—a downgrade that could leave dangerous cracks in the pipe. The Pegasus split apart in Mayflower, Ark. in March 2013, and sent a flood of Canadian diluted bitumen into a neighborhood.
Federal and state attorneys who sued ExxonMobil Corp. over its Arkansas pipeline spill have won court rulings to keep the lawsuit alive and to deny the company's attempt to limit the information it must provide in the case.
The rulings, which came earlier this month, represent a critical step forward for a case that has moved slowly since it was filed a year ago. The lawsuit, filed June 13, 2013 in U.S. District Court in Little Rock, Ark., accuses Exxon of violating federal and state air and water pollution laws as well as Arkansas' hazardous waste regulations.
U.S. District Judge Kristine G. Baker on June 9 rejected Exxon's request to have the lawsuit dismissed, concluding that the governments had sufficient grounds to proceed with the case. In a separate ruling, she ordered the oil company to provide opposing attorneys with overdue documents and other requested information by July 10. Baker also said that Exxon must disclose its current estimate for how much oil was spilled, and must comply with requests for information about the entire length of the 858-mile Pegasus pipeline, not just a portion of it.
Despite last week's approval from the Canadian government, uncertainty still dogs Enbridge Inc.'s Northern Gateway oil sands pipeline largely because of a vow from key aboriginal communities to block it.
Others in the oil industry are trying hard to avoid the mistakes Enbridge made when it comes to approaching Canada's powerful First Nations about projects that could contaminate their lands and waterways.
Earlier this month, the company unveiled plans for a $10 billion refinery in British Columbia that would convert Alberta's tar sands bitumen into gasoline, diesel and jet fuel for export to Asia and other markets. Pacific Future Energy pledged to form a "full partnership" with affected First Nations, provide permanent jobs and build the "greenest refinery in the world."
ExxonMobil intends to restart the southern portion of its Pegasus oil pipeline on July 1, ending a 15-month shutdown that began when the pipeline ruptured and flooded a residential street in Arkansas with crude.
The move is a disappointment to Texans like Barbara Lawrence, who said the 1950s-era southern leg of the Pegasus runs under the Richland-Chambers Reservoir, where she lives on the shore. She and others worry about potential oil spills in reservoirs and other waterways, and have questioned the safety of reopening any part of the Pegasus line without extensive testing.
"I think that's too bad, and I really think it's short-sighted," Lawrence said of the pipeline restart. Noting that the Richard-Chambers Reservoir is a source of drinking water, she added, "You'd think that other people, particularly in a drought situation, would want to protect the water supply."
Alarmed by a string of explosive and disastrous oil spills, two states recently passed laws aimed at forcing rail and pipeline companies to abide by more rigorous emergency response measures instead of relying on the federal government.
The moves by New Hampshire and Minnesota reflect a desire for more control over in-state hazards, as well as mounting frustration over gaps in federal law involving oil pipelines and oil trains, superficial federal reviews and the secrecy surrounding spill response plans submitted to U.S. regulators.
"At this point, lots of states are looking at oil-by-rail and thinking about how they would respond—whether they have the resources, whether their first responders have the resources, and whether their laws are sufficient to protect their communities," said Rebecca Craven, program director at the Pipeline Safety Trust, a safety advocacy group based in Washington State.
Federal pipeline regulators and ExxonMobil lawyers will spar Wednesday in Houston over a proposed $2.7 million fine and allegations that the company delayed crucial inspections, skewed risk data and ignored warning signs before its Pegasus oil pipeline ruptured in Arkansas last year.
The two sides are presenting evidence for and against the fine and allegations in an "informal" administrative hearing that's closed to the public. It is being heard by a presiding officer from the Pipeline and Hazardous Materials Safety Administration (PHMSA), according to Damon Hill, spokesman for the regulatory agency. A final ruling could take six months or longer.
PHMSA's Pegasus case is being closely watched by pipeline opponents who question the government's ability to stand up to oil company pressure and protect the public from harmful—and sometimes deadly—incidents involving oil pipelines and railroad cars filled with crude.
"What gets everybody really suspicious is that you don't have access to watch it, which raises all kinds of issues about transparency," said Richard Kuprewicz, a pipeline safety consultant who serves on PHMSA’s safety standards advisory board for oil pipelines. "The pipeline is owned by the company, but it's running through public assets, so [the closed process] tends to be frustrating."
Monday's unveiling of the Obama administration's proposal to cut carbon emissions triggered a withering response from politicians and business groups tied to the coal industry—the most vocal of them proclaiming Obama's "war on coal" would decimate jobs and companies, create the next energy crisis and devastate the U.S. economy.
Wall Street must have missed the memo.
On the day the proposal was released, the Dow Jones Industrial Average and the Standard & Poor's 500—the stock indexes most closely associated with the nation's economic health—rose. Results in the coal sector were mixed. The stock price of the nation's largest coal producer, Peabody Energy Corp., closed down 15 cents, or 1 percent. Natural Resource Partners, Cloud Peak Energy Inc. and Walter Energy Inc. also saw their stocks fall on Monday, while shares of Alliance Resource Partners, Westmoreland Coal Co., and Rhino Resource Partners moved higher.
By the time U.S. stock exchanges closed on Thursday, the Dow and the S&P 500 had settled at new record highs. Traders had largely shrugged off dire warnings about the carbon-cutting plan and sent the share prices of Peabody Energy and three other coal companies above where they started on Monday morning.
On March 17, a Los Angeles-area oil pipeline spilled between 1,500 and 3,000 gallons of crude onto a neighborhood street, surprising residents and creating a noxious mess that took weeks to fully rectify.
The pipeline's owner, Phillips 66, must have been plenty shocked, too. It thought the pipe was empty.
Phillips 66 told state officials that it took ownership of the pipe through a 2001 acquisition, that it never used the line, and that it didn't know it still contained oil, according to Rep. Janice Hahn, whose Congressional district includes the spill site. The company and state oil pipeline regulators declined to confirm those statements or discuss other aspects of the case, citing an ongoing investigation into the spill.
In a statement, the Houston-based refiner and pipeline owner said the pipe involved was "out of service" and that it was being maintained "in compliance with [federal] requirements for this type of pipeline."