Weekly Energy Digest for June 19, 2020
Some energy-related news stories we’ve been reading this week …
California
COVID-19 adds complications for Cal Fire and SDG&E as weather heats up. (San Diego Union-Tribune, June 19)
Federal Approval of Oil Well at Carrizo Plain National Monument Sparks Outrage
The Federal Bureau of Land Management has approved oil drilling in Carrizo Plain National Monument, sparking outrage among conservationists. (Los Angeles Times, June 18)
PG&E Ordered to Pay $4 Million for Camp Fire that Killed 84
PG&E Corp. was ordered to pay $4 million for its role in causing the 2018 fire that killed 84 people, a penalty the judge who imposed the sentence said didn’t fit the enormity of the crime. (Los Angeles Times, June 18)
Meet the New PG&E. It Looks a lot Like the Old PG&E
Pacific Gas & Electric Chief Executive Bill Johnson promised his company would emerge from bankruptcy a “reimagined utility.” But as PG&E prepares for life after Chapter 11 — a Bankruptcy Court judge filed a written decision Wednesday saying he would approve the company’s reorganization plan — it’s unclear there’s anything fundamentally different about the utility, which over the last decade has caused a deadly pipeline explosion, deadly fires and days-long power shut-offs affecting millions of people. (Los Angeles Times, June 18)
Families of California Wildfire Victims Slam PG&E for Crimes
The families of some of the 85 people killed by a horrific Northern California wildfire ignited by Pacific Gas & Electric’s long-neglected equipment vilified the company Wednesday as greedy, corrupt and reckless, telling heartbreaking stories of their loss in court. (Associated Press, June 18)
PG&E Becomes one of America’s Deadliest Corporate Criminals after Guilty Plea for Lethal Paradise Inferno
PG&E pleaded guilty Tuesday to killing 84 people during the devastating 2018 Camp Fire that destroyed the town of Paradise, a somber conclusion to a prosecution that showed the utility had failed to learn crucial lessons from the deadly San Bruno explosion and triggered the fatal wildfire. (San Jose Mercury, June 17)
California’s Gas Tax is Going Up Again. Amid Coronavirus, Some Say Now is Not the Time
California’s gas tax is set to increase July 1, but some lawmakers are calling for a freeze on the higher levy, citing the financial burden of the coronavirus-spawned recession on millions of the state’s residents. (Los Angeles Times, June 14)
PG&E Braces for a Hard Fire Season – and Blackouts – Amid Coronavirus
Wildfire season has arrived in California, and the company behind some of the state’s worst blazes is again preparing to take drastic measures to prevent more catastrophes — all while the whole state is simultaneously grappling with the coronavirus pandemic. (San Francisco Chronicle, June 13)
PG&E, Fire Victim Lawyers Reach Stock Deal in Bankruptcy Case
PG&E Corp. has agreed to provide more stock to pay wildfire victims as part of a deal that resolves one of the last hurdles in its waning bankruptcy case. (San Francisco Chronicle, June 13)
Nation/World
Private-equity-owned Chisholm Oil & Gas has become the latest shale driller to file for bankruptcy, pushed into chapter 11 by a decline in commodity prices and production challenges in Oklahoma. (Wall Street Journal, June 18)
FERC Asks Puerto Rico LNG Importer Why it Built Terminal without Agency Approval
The Federal Energy Regulatory Commission demanded that the owner of a natural gas import terminal in Puerto Rico explain why it did not seek agency approval before building the infrastructure that is now in service at the Port of San Juan. (S&P Global, June 18)
Talen-Owned Gas Plants Enter Third Bankruptcy Since 2014
A pair of natural-gas-fired power plants owned by Talen Energy are going into chapter 11 protection for the third time since 2014, and the plan is to hand ownership to senior creditors owed nearly $555 million. (Wall Street Journal, June 18)
The global oil market is slowly starting to rebalance thanks to production cuts and relaxing coronavirus lockdowns, but the industry is still swimming in excess supply, the Organization of the Petroleum Exporting Countries said. (Wall Street Journal, June 17)
Supply cuts from producers and a record rebound in demand next year will help to rebalance the oil market from the shocks incurred during the coronavirus pandemic, the International Energy Agency said. (Wall Street Journal, June 16)
Before the U.S. Can Have Clean Power, It Needs More Power Lines
The country’s electrical grid isn’t built to carry energy from remote solar and wind farms to populated cities. (Bloomberg, June 16)
The Supreme Court removed a legal barrier to the construction of an $8 billion pipeline that would deliver natural gas from West Virginia, ruling the project could run under a major East Coast hiking trail. (Wall Street Journal, June 16)
BP Prepares for a Future That Needs Less Oil
The energy giant said its oil and gas assets were worth less, a move reflecting broad changes in the industry. (New York Times, June 15)
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