Why is LNG being pimped around the world to the tune of $Trillions as more and more investors & communities say no to frac’ing and fossil fuels? Calls into question motivations of gov’ts and companies–do they just want to assert power?

Jimmy Carter Put Solar Panels on His Farmland and They’re Now Powering Half of His Georgia Hometown, Where the former president used to grow crops, 3,852 solar panels were put up to capture the Georgia sunlight, providing more than 50 percent of Plains’ energy

Wet’suwet’en: The canary in the Canadian fossil fuel cage, The era of fossil fuels is drawing to an end. Projects like Coastal GasLink and LNG Canada no longer make any economic sense by Will Dubitsky, Feb 22, 2020, ricochet

Ad nauseum, mainstream media have focused on the economic consequences of the blockades in support of the Wet’suwet’en Nation. Equal media attention has been dedicated to the complexities of Indigenous ancestral rights in unceded territories and who has the right to speak for the Wet’suwet’en. Rare are those who characterize the impasse as a clash of two economies, the resource-based economy and the green economy.

Jason Kenney got it half right in saying that the standoff is a “dress rehearsal” for future major fossil fuel projects.

LNG oversupply

The other half of the truth is that the era of fossil fuels is drawing to an end and the markets for these resources will plateau or decline by the time any of Canada’s pending major fossil fuel projects are completed. Hence such projects no longer make any economic sense. Canada has not one, but two major LNG and shale gas combos on the horizon.

The liquefied natural gas and shale gas sectors are but one example to this effect. For two-thirds of the global market, renewables are coming in cheaper than natural gas and coal for electrical power generation. Yet global natural gas supplies are increasing at astronomical rates in the U.S., while more supply will be coming on the market from Russia, Egypt and Australia.

And Canada has not one, but two major LNG and shale gas combos on the horizon. One is the Kitimat, B.C.-based LNG Canada facility and the Coastal GasLink pipeline that is at the centre of the Wet’suwet’en national story. The other is the proposed Énergie Saguenay LNG plant 210 kilometresnorth of Quebec City and the Gazoduc pipeline to transport Alberta shale gas to the LNG site, collectively known as GNL Québec.

This is happening while the oversupply and resulting low prices for natural gas have become so acute that LNG is being stored in ships while awaiting market improvements.

Large multinational stakeholders involved in fossil fuel activities have been caught off-guard. GE had had to write off $193 billion slated for gas and coal-fired projects in the three years leading up to 2018. In 2019, Chevron wrote down the value of its assets by $10–$11 billion, and this includes a devaluation of its assets in LNG Canada.

For 2020, the U.S. Energy Information Administration predicts that 76 per cent of the 42 gigawatts of new electrical generation supply added during the year will pertain to wind and solar energy installations.

Risky investments

A recent Global Energy Monitor report estimated that $1.3 trillion in global gas infrastructure is risky. Nevertheless, the report indicated another $2 trillion worth are planned and a minimum of 202 LNG plants are in development worldwide. One of the authors of the report, James Browning, surmised that the combination of all the new projects coming online could triple production.

The shale gas plight is no better. The sector is now at the precipice of a boom-to-bust scenario. This is because a shale well is only economically productive for three years, its productivity incrementally declining 85 per cent over the three years. Around 75 per cent of a shale well’s life cycle production occurs in the first year or two. This means constant requirements to develop new wells.

Aggregated across the sector, costs exceed revenues. The industry has been cash flow negative since the mid-2000s.

With most of the shale sector comprised of small and mid-size independent firms providing their products to the multinational oil and gas giants, bankruptcies among shale businesses are now common. Between May and September 2019, at least 33 U.S. shale firms went bankrupt.

According to the Institute of Energy Economics and Financial Analysis, a cross-section of 33 U.S. publicly traded shale oil and gas firms collectively had negative cash flows in the first six months of 2018, with expenses exceeding revenues by $3.9 billion.

However, in the face of the Wet’suwet’en standoff, shouldn’t the opening question be whether the Coastal GasLink and LNG Canada project should be built? Ditto for the similar LNG facility and Gazoduc pipeline projects of GNL Québec.

Canada oblivious to global clean energy revolution

The economic prospects are no better for the Trans Mountain pipeline, the Teck Frontier Project, Energy East and tar sands developments at large.

It seems Canadians are oblivious to the impacts of vehicle legislation in China and the European Union, respectively the largest and third-largest vehicle markets in the world, forcing global automakers to introduce a plethora of electric vehicle models in the next three to five years. The impacts of these legislative initiatives are global since even the U.S.-based Big Three automakers (GM, Ford and Fiat Chrysler) must compete with foreign automakers in North America, as well as in the rest of the world.

Since two-thirds of global petroleum consumption is associated with transportation, 89 per cent of which is for road transport, peak oil is but a few years away. Even Shell concurs that peak oil demand is coming soon. It’s over for Big Oil too. The Canadian government has never had a green economy annual budget, one where economic development and sustainable development are integrated.

… This brings things back to the real significance of the impasse between the Wet’suwet’sen Nation and the government of Canada.

Half a million people, including Greta, marching for the climate in Montreal changed nothing.

But now a group of Indigenous people, led by the Wet’suwet’en hereditary chiefs, are forcing us to wonder about the feasibility of all significant future fossil fuel projects — Coastal GasLink, LNG Canada, Trans Mountain, GNL Québec, Teck Frontier and others to come.

Concurrently, domestic government investments to develop Canadian clean technology sectors are pitiful. The situation is so bad that it is almost impossible for an individual to invest in Canadian clean technology market. …

Refer also to:

Bye Bye Canadian LNG? Bye Bye Need for Site C? China introduces new incentives for domestic production of tight and shale gas and CBM

New logo for British Columbia: British CoLNGumbia, The Best Fracking Place on Earth

Is LNG fracturing worth its weight in water?

Down down down goes LNG!~ It “looks to be a damp squib.” In Permian Basin of West Texas and New Mexico, gas “prices have slid below zero…that means producers are paying others to take their supply.”

Nikiforuk writes his most powerful: Wet’suwet’en Raids: Canada Chooses Colonialism Again, A future of reconciliation is now squandered along with our billions propping up LNG.

Is LNG safe? Three injured, hospitalized, one with critical burns in massive LNG explosion in Westmoreland Co, Pa.

Chevron biting frac ‘n LNG dust? Bites 400 more staff in Pennsylvania after cutting 150 staff there in 2014. Frac’ing is going the way Arthur Berman said it would – down into the gutter with tens of billions of dollars in losses; Banks, investors, investment firms running for frac-free hills.

Hanky Panky Power Pimping Codswallop! Canadian & BC gov’ts forcing demand for Site C dam? Why give the failing frac ‘n dash industry another near $Billion in corporate welfare? LNG & frac’ing, even electrified, are not green or clean or safe!

Some courts uphold the Rule of Law (unlike in Canada)! Irish High Court delivers killer blow to US Fracked Gas Imports by ‘New Fortress Energy’ (Shannon LNG)

Nikiforuk: Canada’s Methane Leakage Massively Under-reported, Studies Find, New data shows ‘fracking and LNG industry is a much dirtier industry than it is made out to be.’

Will China’s “colossus” green energy growth and Russia’s agreement to sell Japan oil & gas kill Canada’s grossly uneconomical Fracking, LNG & Bitumen industries?

2016: British Columbians’ views on hydraulic fracturing have “hardened,” 61 per cent opposed; Opposition to LNG “up significantly”

Canada: $750,000 Fine For Killing 7,500 Migratory Birds from Direct or Indirect Contact with Canaport’s LNG Burning Natural Gas Flare Stack in New Brunswick

The Ultimate Frac Synergy Paradox: Australian Industry Harmed by LNG Export Boom Wants Frac Bans and Watershed Protections Lifted to Frac for More Gas, Claiming this will Decrease Gas Prices set Soaring by LNG Exports

2014: B.C. will rival Alberta’s domination once LNG starts flowing; LNG explosion injured one, 17 workers and residents within 2 mile radius evacuated; Industry, federal and provincial governments lying about labour shortages to drive wages down

2013: Oil and gas industry seeks 2 billion-dollar tax break to lure LNG plants

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