from the Washington Examiner: the us Northeast to face unprecedented hardships for winter heating and listed as the cause were two items; the jones act and another equal falsehood.
As mariners we are all abreast of threats to the Jones act but i don’t think i’ve seen it out in such force and it is all such a bunch of lying propaganda. nothing less.
If the US Govt. wasn’t actively trying to curb US oil production, shutting down pipelines, discouraging bank loans to the petroleum industry and all the other innumerable things the NE would have oil as they have had in the past.
It’s a ruse to encourage dismissal of the jones act, curtail wages of us mariners, lessen the impact of American Shipping Concerns and encourage more foreign influence in US waters.
Perhaps I’m just venting but as a casual observer this last article makes me realize why the subject has been coming up on Gcap lately. And if it’s here more often, it’s ashore more often too.
Provide facts. I have seen nothing indicating banks especially wanting to stop oil production but refusing loans. God knows banks would lend to Satan if the interest was good. Also haven’t seen pipelines shut down unless for repairing leaks. Where do you get these facts?
it isn’t hard to find if you look.
Then post em’
ESG ratings now rule all when it comes to investment decisions and the “Environment” part of that new buzz-phrase is killing investments.
Northern Access and Constitution pipelines which would have brought natural gas from PA to NY and New England are just 2 of the blocked projects that would have eased supply constraints in the region.
Seriously don’t be that lazy or obtuse. The bank- specific information is literally everywhere online. It’s the oil trade. Here are some fun facts from a 30 second google search. I did not even try to get beyond puff pieces amd secondary summaries. As I wrote- 30 seconds.
Goldman-Sachs, J.P. Morgan, B of A, Morgsn Stanley Chase, Citibank, Wells Fargo, and Deutsche Bank have all indicated they will stop financing new oil and gas projects in the American arctic, for example. Of the world’s 60 largest banks, 27 have decreased financing in fossil fuels.
UBS was one of the most heavily relied on creditors for midstream companies, where much of the new growth was happening. They’ve decreased loans by 73% in the past 5 years.
Overall, the 4 largest banks in the US have decreased oil financing 14.3% in just the last 2 years. They cite ESG and US federal policy forecasting as the rationale.
These 4 banks (chase, Citi, B of A and Wells Fargo) provide over 25% of global fossil fuel financing.
Those are not the best examples, as Constitution was canceled in early 2020 (after prolonged litigation with the State of NY), and Northern Access has been Approved by the US Govt and as recently as this past June Approved for a 36 month extension on the approval to build. The hold up of course being litigation with the State of NY.
If north east states want cheaper fossil fuels they might start by pushing New York DEC.
Regarding the JA, at what point are gas prices high enough to justify the financing of a JA tanker delivering to the north east? In the current regulatory environment, current administration, and current shareholder ESG push, you’d think that would help make the case.
thank you grundledemployee for the input here. I commend your effort to educate the ‘masses’ !
i figured eventually someone would step forth. I observe from a far view point and seldom involve myself in the tedious details and am not good at this minutia but i know others can thrive on these details, thanks!
Agree… Normally @tengineer1 wouldn’t post something that ludicrous… Looking forward to his reply.
Ah, quotes from Breitbart, haven’t looked at them for “news” in years.
Governments have little control over where banks invest as the 2009 crash shows. Banks can invest in crypto for god sake. Breitbart acts as if the “Banking on Climate Chaos 2022” is some sort of government paper which it clearly is not. I haven’t heard of one oil company saying they aren’t drilling because the banks won’t loan to them. They may put off investing due to the current high interest rates but some can easily self fund. Pipelines have been held up by the NIBY people as well as the convoluted permitting process for many years
These banks may say they are being more climate conscious but that is just PR BS. They and the oil companies are in business to make money, period.
For the record, was any of this from Breitbart?
Good on them. Why the Hell should an ethical organization finance projects that will destroy an environmentally sensitive region so a business that already has more money than they can hide or launder can increase its profits?
At a time when the average citizen is having to choose between food, heat, rent, or fuel to get to work, oil companies are stashing record profits. Exxon’s CEO banked a bonus of over $3 million while Suzie Smith had to remove stuff from her grocery cart because her usual purchases broke the food budget. Keeping that jar of peanut butter would have meant delaying the car payment.
If the oil companies want to look for more oil and gas, let them use their own money. You should applaud a business that tells them to go F themselves.
These oil companies don’t get much direct financing from Goldman Sachs, UBS etc but they do use these banks to issue bonds and pay the banks millions in fees, it is very lucrative business for the big banks and they compete to get to handle the issuance. Direct bank loans from Citi, Wells or the others is small potatoes compared to the bonds. The multinational oil companies lead the way in curtailing production because too much oil means too low profits. Profits are up a LOT since the Ukraine affair it was a gift. These companies just like the banks owe no allegiance to the USA or any country, their only allegiance is to themselves and their stockholders as they have stated previously. I own stock in two major oil companies and a pipeline company and though I consider them amoral they have treated me well financially, especially in the last year or so.
Exxon’s CEO banked a bonus of over $3 million
Total compensation was about 22 million. About 64,000/day if he worked 365 days. That’s decent pay if he cured cancer or something similar. 
Yeah, his wife probably thinks rent is just something her property managers collect and a grocery cart is what those nasty street people carry empty cans and old clothes in.
Maybe the CEO didn’t cure cancer but Exxon’s oil spills in the Niger Delta have probably killed a bunch of mosquito larva and maybe prevented a few malaria deaths. Does that count?
No, it wasn’t. They didn’t appear on my results page from Google. So I found a Brietbart link and it’s the same information, but with some hysterics and spin. Politicos sure do love watching people suffer if it serves their ends.
So, yeah, That was a terrible attempt at deflection. I’m more inclined to dismiss things written by people I hate too, but stats are stats.
And does it matter if it was Mother Jones, Pravda, The National Enquirer, Dog Fancy, Cigar Afficionado, Juggs or Brietbart, if it is accurate?
I feel this is a fair point.
Don’t want to get into a big political argument - but during the pandemic - lenders to producers in the US tight oil lost their shirts - on the oil price turn around post pandemic and Ukrainian invasion these same lenders wanted to recoup some losses before writing any more debt.
Some pipelines get built some don’t - there are a ton of environmental hurdles for a new pipeline - we can all argue if they are good or bad, they are certainly imperfect creations of men.
The future make up of the energy basket is going to have an impact on all major investment decisions going forward.
The US Government actions have very little even medium term impacts on energy markets.
Russia invading Ukraine and the sanctions that follow are having major impacts on energy markets. If you are looking for a boogie man here it is Putin.
I’m sure oil companies have had many spills, My time spent in the various garden spots in West Africa, most of the pipeline spills were locals tapping the line or sabotage.