Message From the Editor

The accounting companies hired by oil companies to evaluate their inflated financial claims are increasingly on the hook from investors frustrated by the lack of accountability. Major accounting firm KPMG, for instance, has recently come under fire from investors who filed a class action lawsuit against the firm for overstating the asset values of now-defunct oil exploration company Miller Energy Resources. And last month, a judge dismissed KPMG’s attempt to have the case thrown out. Justin Mikulka unpacks what’s going on.

Meanwhile, in two new studies this week experts shine a spotlight on the worst offenders in the Permian basin. Only a handful of super emitters are responsible for an enormous amount of the methane pollution in the Permian basin, according to one study. At the same time, another report found that some smaller oil drillers in the Permian basin have worse methane pollution rates than the largest oil and gas companies’ operations there, including ExxonMobil and Chevron. But while the technological fixes are obvious, researchers say, state regulators are so far unwilling to act. Nick Cunningham has the story.

And in case you missed it, the House and Senate recently called in the CEOs of six big banks for two wide-ranging hearings that lawmakers touted as efforts to hold “megabanks accountable.” It was the first time in roughly two years that the heads of major banks have collectively appeared before Congress. Sharon Kelly reports.

Have a story tip or feedback? Get in touch: editor@desmogblog.com.

Thanks,
Brendan DeMelle
Executive Director

P.S. Readers like you make it possible for DeSmog to hold accountable powerful people in industry and government. Even a $10 or $20 donation helps support DeSmog’s investigative journalism.

How Third-Party Auditors Make Oil Industry Fraud Possible

— By Justin Mikulka (10 min. read) —

Major accounting firm KPMG is under fire from investors who filed a class action lawsuit against the firm for overstating the asset values of now-defunct oil exploration company Miller Energy Resources. And last month, a judge dismissed KPMG’s attempt to have the case thrown out.

At issue in the lawsuit, filed in 2016, is a $4.55 million purchase by Miller Energy in 2009 for land and offshore oil assets in Alaska which included existing oil production infrastructure. Miller Energy then claimed those same assets were worth approximately half a billion dollars, a claim which would require approval by third-party auditors.

Cleaning Up Methane Pollution From Permian Super Emitters is ‘Low Hanging Fruit’ for the Climate, Study Finds

— By Nick Cunningham (5 min. read) —

Only a handful of super emitters are responsible for an enormous amount of the methane pollution in the Permian basin, according to a new study. And ratcheting down these emissions can lead to quick and significant wins for the climate.

According to the study published on June 2 in the journal Environmental Science & Technology Letters, a relatively small number of sites — 11 percent — account for nearly a third of methane emissions in the region. Methane is a highly potent greenhouse gas — more than 80 times more powerful than carbon dioxide over a 20-year time-frame.

After Pouring Over $1 Trillion Into Fossil Fuel Finance, CEOs of 6 US Banks Testify Before Congress

— By Sharon Kelly (8 min. read) —

This week, the House and Senate called in the CEOs of six big banks for two wide-ranging hearings that lawmakers touted as efforts to hold “megabanks accountable,” the first time in roughly two years that the heads of major banks have collectively appeared before Congress.

Combined, the six CEOs lead organizations that have poured over $1 trillion in financing into the fossil fuel industry since the Paris Agreement was signed in 2015, based on the numbers tallied in a 2021 report from Rainforest Action Network and other environmental advocates.

The IEA’s New Net Zero ‘Roadmap’ is Dangerously Reliant on Destructive Bioenergy

— By Almuth Ernsting (4 min. read) —

The International Energy Agency’s new “Net Zero by 2050” report has won plaudits for its bold recommendations on how the world can limit warming to 1.5°C, in line with the Paris Agreement: no investment in new fossil fuel projects, and an end to petrol and diesel cars by 2035.

But the vision it presents governments is fantastic in another sense of the word, too.

From the Climate Disinformation Database: Tony Abbott

Tony Abbott was Prime Minister of Australia between 2013 and 2015, having led the centre-right Liberal Party in opposition since 2009. He was ousted as Liberal Party leader by Malcolm Turnbull in September 2015 following poor approval ratings. Abbott has historically opposed measures to combat climate change, advocating for the (ultimately successful) repeal of Australia’s carbon tax in 2014, introduced by the previous Labor government. In 2017, he gave a lecture entitled “Daring to Doubt” to the UK-based climate science denial group the Global Warming Policy Foundation, following in the footsteps of fellow Australian PM John Howard. In September 2020, Abbott was appointed to the UK Government’s “Board of Trade,” advising on the negotiation of new post-Brexit agreements with countries such as Australia.

Read the full profile and browse other individuals and organizations in our Climate Disinformation Database and Koch Network Database.