U.S. Bank Raises $2 Billion in Oil and Gas Pipeline Finance Despite Pledging to Stop
Since revising its environmental policy last year, U.S. Bank financed more than $2 billion to companies building oil and gas pipelines, including an estimated $480 million to Energy Transfer Partners, new analysis released Thursday by Oil Change International concludes.
U.S. Bank CEO Andrew Cecere won praise from indigenous rights and climate advocates in April 2017 when he announced to shareholders that U.S. Bank would "not finance the construction of oil and gas pipelines." Days later, U.S. Bank issued a revised environmental policy significantly narrower in scope than what Cecere described, limited to only project financing which had never been a significant line of business for the bank.
New research conducted by Oil Change International shows that since Cecere's promise, U.S. Bank financing activity with oil and gas pipeline builders has continued apace. The analysis comes days ahead of the U.S. Bank annual shareholder meeting in Albuquerque, New Mexico where pipeline opponents plan to question executives about Cecere's empty promise.
"U.S. Bank says trust and ethics are its core values, but its actions seem to show the opposite" said Brant Olson, U.S. program director for Oil Change International. "Adopting a meaningless policy to create the impression of care for the environment paints a troubling picture of U.S. Bank's priorities."
The analysis released Thursday finds that since announcing its commitment in April 2017:
- U.S. Bank has participated in dozens of deals with pipeline companies, worth more than $40 billion, with U.S. Bank's estimated financial commitment totaling more than $2 billion.
- U.S. Bank has served as a bookrunner or manager, meaning it was a lead financial institution, on numerous pipeline deals totaling more than $17 billion, of which U.S. Bank raised more than $930 million.
Of particular interest is financing for pipelines being built by Energy Transfer Partners (ETP), a company notorious for its controversial role in building the controversial Dakota Access Pipeline. In addition to the Dakota Access Pipeline, Energy Transfer Partners is seeking to build numerous oil and gas pipelines throughout the U.S. which have been met with massive resistance as well as numerous construction mishaps, violations and mandated work stoppages.
Oil Change International's analysis finds that U.S. Bank continues to finance ETP projects as follows:
- U.S. Bank raised an estimated $480 million for ETP in transactions worth $7.25 billion since April 2017.
- U.S. Bank underwrote two bond issues together worth $2.25 billion for Sunoco (a subsidiary of ETP), with U.S. Bank directly responsible for more than $280 million.
- U.S. Bank was a lender on two revolving credit facilities for ETP, responsible for an estimated $200 million of $5 billion in total credit.
The analysis, "Empty Promise: U.S. Bank Continues Pipeline Finance" was published by Oil Change International in partnership with Indigenous Environmental Network, Earthworks, Greenpeace, MN 350, and Rainforest Action Network.
16 Top Groups #Divest from 'Pipeline Banks' https://t.co/oXNBOXWAPk @SierraClub @350 @divestinvestorg @CREDOMobile @HonorTheEarth @IENearth— EcoWatch (@EcoWatch)1496769573.0
Reposted with permission from our media associate Oil Change International.
- Most Meat Will Be Plant-Based or Lab-Grown in 20 Years, Analysts ... ›
- Lab-Grown Meat Debate Overlooks Cows' Range of Use Worldwide ... ›
- Will Plant-Based Meat Become the New Fast Food? - EcoWatch ›
EcoWatch Daily Newsletter
One city in New Zealand knows what its priorities are.
Dunedin, the second largest city on New Zealand's South Island, has closed a popular road to protect a mother sea lion and her pup, The Guardian reported.
piyaset / iStock / Getty Images Plus
- No Country Is Protecting Children's Health, Major Study Finds ... ›
- 'Every Child Born Today Will Be Profoundly Affected by Climate ... ›
By Jeff Masters, Ph.D.
Earth had its second-warmest year on record in 2020, just 0.02 degrees Celsius (0.04°F) behind the record set in 2016, and 0.98 degrees Celsius (1.76°F) above the 20th-century average, NOAA reported January 14.
Figure 1. Departure of temperature from average for 2020, the second-warmest year the globe has seen since record-keeping began in 1880, according to NOAA. Record-high annual temperatures over land and ocean surfaces were measured across parts of Europe, Asia, southern North America, South America, and across parts of the Atlantic, Indian, and Pacific oceans. No land or ocean areas were record cold for the year. NOAA National Centers for Environmental Information
Figure 2. Total ocean heat content (OHC) in the top 2000 meters from 1958-2020. Cheng et al., Upper Ocean Temperatures Hit Record High in 2020, Advances in Atmospheric Sciences
Figure 3. Departure of sea surface temperature from average in the benchmark Niño 3.4 region of the eastern tropical Pacific (5°N-5°S, 170°W-120°W). Sea surface temperature were approximately one degree Celsius below average over the past month, characteristic of moderate La Niña conditions. Tropical Tidbits
- NASA and NOAA: Last Decade Was the Hottest on Record - EcoWatch ›
- Earth Just Had Its Hottest September Ever Recorded, NOAA Says ... ›
In December of 1924, the heads of all the major lightbulb manufacturers across the world met in Geneva to concoct a sinister plan. Their talks outlined limits on how long all of their lightbulbs would last. The idea is that if their bulbs failed quickly customers would have to buy more of their product. In this video, we're going to unpack this idea of purposefully creating inferior products to drive sales, a symptom of late-stage capitalism that has since been coined planned obsolescence. And as we'll see, this obsolescence can have drastic consequences on our wallets, waste streams, and even our climate.
- Consumer Society No Longer Serves Our Needs - EcoWatch ›
- Electronic Waste: New EU Rules Target Throwaway Culture ... ›