Projects to build natural gas and crude oil in the United States are facing opposition from environmental groups. Backed by experienced lawyers and record funding, these groups are challenging the projects’ permits in court, and they have been successful so far. This movement has been increasingly targeting pipelines rather than oil or gas wells because they require various federal and state permits that can be more easily litigated.
On Sunday, Dominion Energy Inc and Duke Energy Corp announced that they would abandon the $8-billion Atlantic Coast gas pipeline after years of delays and swelling costs. Judges have halted the construction after ruling that the approval for the project was granted without conducting adequate environmental studies. The 966-km pipeline was among fossil fuel infrastructure projects in the US that face legal hurdles.
Separately, a US Court on Monday ordered Energy Transfer to shut and empty the 570,000-bpd Dakota Access oil pipeline due to concerns on potential environmental harm. According to the court, the US Army Corps of Engineers failed to provide an adequate Environmental Impact Statement (EIS) when granting allowance to Energy Transfer to build and operate a segment of the pipeline beneath Lake Oahe in South Dakota.
Separately, the US Supreme Court decided to keep ruling by a federal judge in Montana that blocks the construction of a segment of TC Energy Corp’s Keystone XL oil sands pipeline. Environmental groups have been challenging the project, saying it posed a threat to endangered species.
All of this came despite President Donald Trump’s pledge to support the US oil and gas industry by cutting environmental red tape. The US needs to build millions of miles of pipelines to distribute oil and gas from its production centres. The lack of pipeline development may create a supply constraint in many parts of the country.
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Published on July 7, 2020 5:33 PM (GMT+8)Last Updated on July 7, 2020 5:33 PM (GMT+8)
