Tag Archives: Exxon Mobil Corp

Supreme Court takes up energy companies’ appeal over Baltimore climate suit

By Lawrence Hurley

WASHINGTON (Reuters) – The U.S. Supreme Court on Friday agreed to hear an appeal by energy companies including BP PLC, Chevron Corp, Exxon Mobil Corp and Royal Dutch Shell PLC contesting a lawsuit by the city of Baltimore seeking damages for the impact of global climate change.

The justices will weigh whether the lawsuit must be heard in state court as the city would prefer or in federal court, which corporate defendants generally view as a more favorable venue. The suit targets 21 U.S. and foreign energy companies that extract, produce, distribute or sell fossil fuels.

The outcome could affect around a dozen similar lawsuits by U.S. states, cities and counties including Rhode Island and New York City seeking to hold such companies liable for the impact of climate change.

Baltimore and the other jurisdictions are seeking damages under state law for the harms they said they have sustained due to climate change, which they attribute in part to the companies’ role in producing fossil fuels that produce carbon dioxide and other greenhouse gases.

The plaintiffs have said they have had to spend more on infrastructure such as flood control measures to combat sea-level rise caused by a warming climate. Climate change has been melting land-based ice sheets and glaciers.

The Supreme Court in 2019 declined the companies’ emergency request to put the Baltimore litigation on hold after a federal judge ruled that the case should be heard in state court. In March, the Richmond, Virginia-based 4th U.S. Circuit Court of Appeals upheld the judge’s decision.

In the absence of federal legislation in the bitterly divided U.S. Congress targeting climate change, the lawsuits are the latest effort to force action via litigation.

The Supreme Court in a landmark 2007 ruling said that carbon dioxide is a pollutant that could be regulated by the Environmental Protection Agency. Under Democratic President Barack Obama, the agency issued the first-ever regulations aimed at curbing greenhouse gases. But efforts in Congress to enact sweeping climate change legislation have failed.

The court took action in the case three days before it begins its new nine-month term short one justice after the Sept. 18 death of Ruth Bader Ginsburg. President Donald Trump has nominated federal appeals court judge Amy Coney Barrett to replace Ginsburg.

(Reporting by Lawrence Hurley; Editing by Will Dunham)

U.S. energy firms tally hurricane damage, plot restarts as Laura races north

By Erwin Seba

HOUSTON (Reuters) – U.S. energy companies on Thursday were organizing crews and beginning to review offshore Gulf of Mexico platforms and assess damage to coastal operations as Hurricane Laura took its fierce winds inland.

The storm hit Louisiana early Thursday with 150 mile-per-hour (240 kph) winds, damaging buildings, knocking down trees and cutting power to more than 400,000 people in Louisiana and Texas. Its storm surge was less than predicted, sparing inland plants from feared flooding.

Laura passed over Lake Charles, Louisiana, and its oil refineries overnight and was moving quickly north toward Arkansas on Thursday.

Offshore operators were busy scheduling reconnaissance flights over the more than 300 offshore platforms and drilling rigs whose crews evacuated last week. Laura tore through the Gulf of Mexico’s prime oil production fields, with first assessments due Thursday for pipelines and platforms.

Exxon Mobil Corp said it was contacting employees of its 369,000 barrel-per-day (bpd) oil refinery and chemical plant in Beaumont, Texas, and preparing a preliminary tally of damages. The large plant was one of six plants along the Gulf Coast’s refinery row that shut this week ahead of the storm.

Even with no or little damage, refineries take days to resume production from a cold shut and the widespread power outages in the region and evacuations could slow the process further.

Utilities reported more than 650,000 customers in Texas and Louisiana were without power on Thursday and at least one reconnaissance flight was canceled because of travel disruptions.

Oil producers were preparing to fly over evacuated offshore platforms on Thursday. Some 1.5 million barrels of oil, and or 1.65 billion cubic feet of natural gas output were halted by well closures on Wednesday.

Companies have regularly scheduled crew changes beginning on Saturday and could take the first steps to resuming production this weekend if conditions allow, said Lani Moneyhon, manager of Bristow Group’s Galliano heliport. The company provides transport to offshore producers.

Energy firms typically fly over platforms looking for damage, and later conduct walk-throughs by safety experts before crews can return. It can take several days to run reviews and schedule crew returns.

(Reporting by Erwin Seba and Gary McWilliams; Editing by Marguerita Choy)