Energy Exchange

Why clean energy investments should be part of your risk management strategy

By Jake Hiller

There’s a new way to approach energy risks that should interest business leaders who navigate today’s changing economy.

Is your corporate risk management strategy considering these three realities, and how to respond?

1. Energy prices are volatile and hard to predict

Energy prices fluctuate so knowing when to lock in the best price, and for how long, is a perennial challenge for businesses. Unless, that is, you consider signing a long-term Power Purchase Agreement with an energy provider that specializes in predictable renewable energy – or install your own clean energy infrastructure.

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Posted in Clean Energy / Comments are closed

Private equity has opportunity to step up on methane, says Harvard Management Company

Earlier this year, we had the opportunity to sit down with Michael Cappucci, Senior Vice President of Compliance and Sustainable Investing at Harvard Management Company (HMC). In a recent blog post, Michael shared his outlook on the methane opportunity for oil and gas companies, along with his opinion on the pace of change within the industry.

Below is the second part of our conversation, where Michael offers new insights on investor ESG engagement and its correlation to portfolio performance. He also talks about private equity’s somewhat quiet stance on methane, and the sector’s potential to bring about change among mid-size operators that have yet to tackle methane emissions.

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Posted in General, Methane, Natural Gas / Tagged , , , | Comments are closed

Three ways Zinke failed as Interior Secretary. Why the next Secretary will likely fail, too.

USDA photo by Lance Cheung.

This blog was co-authored by David Festa and Dan Grossman.

Two years ago, a colleague of ours penned a blog titled, “How Interior pick can make good on Trump’s promise to honor Theodore Roosevelt.”

Looking back now, it was optimistic for any of us to believe that Ryan Zinke could fulfill the responsibilities of the Interior Secretary, when it’s clear that the Trump administration has no respect for America’s natural resources and cultural heritage.

Here are three reasons why Zinke failed as Interior Secretary, and why we are deeply skeptical that his replacement will succeed, either.

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Posted in Methane, Natural Gas / Comments are closed

EPA methane rollbacks contradict agency’s own scientific findings

By Rosalie Winn and Hillary Hull

As the world races to adopt cleaner fuels and implement carbon-reducing strategies to combat a warming climate, the Trump administration is moving feverishly to severely weaken federal methane emissions regulations across the entire oil and gas industry.

The Trump EPA’s current proposal to weaken the New Source Performance Standards 2016 methane rule will add 480,000 tons of methane, a potent greenhouse gas, into the atmosphere within the next seven years, while simultaneously wasting tens of millions of dollars-worth of natural gas.

The EPA is proposing to weaken the current standards in the face of recent research warning that excessive waste of natural gas (methane) from the oil and gas sector is much higher than previously estimated, underscoring the harmful climate implications of methane leaks from oil and gas production well sites. This move also comes on the heels of a new federal government report published last month highlighting the dire social and economic consequences of climate change.

Particularly baffling is that the EPA’s own new analysis recognizes that increasing methane detection efforts will reduce methane emissions in the atmosphere, and doing so is more cost-effective than originally estimated by the agency. Despite the agency’s own scientific conclusions, the Trump EPA is choosing to move forward and weaken the standards, disregarding logic and common sense. Read More »

Posted in Methane, Natural Gas / Comments are closed

Investors call on BP, Exxon, Shell to defend EPA methane regulations

Last week, investors representing $1.9 trillion assets under management called on 30 oil and gas companies, urging them to publicly oppose the EPA’s proposed weakening of its methane rules. This letter is signed by investors including CalSTRS, the New York City Comptroller’s Office, and Robeco, all of which have joined together to say no to these regulatory rollbacks.

Investors look to minimize risk while maximizing value. Methane emissions are a risk, and the proposed rule changes will increase emissions by the EPA’s own estimates. So it is no surprise that investors with nearly $2 trillion worth of assets are speaking up to defend this risk-reducing rule.

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Methane rollbacks test BP, ExxonMobil, Shell commitments to support Paris goals

By Ben Ratner and Nat Keohane

As business executives join leaders from government and civil society for COP24 in Katowice, Poland, a regulatory rollback across the Atlantic puts a sharp focus on the seriousness of energy companies’ commitments to support the goals of the Paris Agreement.

The recent Intergovernmental Panel on Climate Change special report detailed the devastating consequences from a rapidly warming planet. One critical piece of the solution is reducing emissions of highly potent short-lived climate pollutants. In fact, deep reductions in emissions of non-CO2 pollutants, particularly methane, are essential to staying below temperature targets, and have the added benefits of improving public health, food security, and ecosystems.

The oil and gas industry is a leading source of potent methane emissions. But in the world’s largest oil and gas producing nation—the United States—the Trump Administration is working to withdraw from the Paris Agreement, while simultaneously rolling back common sense standards to limit methane emissions from the oil and gas industry.

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Posted in Climate, Methane, Natural Gas / Tagged , , , | Comments are closed