China's State Owned Energy Firm CNOOC Makes Move Into South America

CNOOC, a Chinese state-owned energy firm, has announced plans to acquire 50 percent of Bridas Energy Holdings for $3.1 billion. Bridas has holdings in Argentina, Bolivia, and Chile.

The deal is likely to foretell other similar deals by CNOOC in South America. On Sunday CNOOC president Yang Hua characterized the deal as representing a "good beachhead for us to enter Latin America," according to the Financial Times ("CNOOC to Pay $3.1 Billion for Argentine Stake," March 14, 2010).

In a statement, CNOOC said, "The transaction is aligned with the company's growth strategy by expanding the company's reach into Latin America and establishes a foundation for future growth in the region and other countries."

Proven reserves of CNOOC will increase by 318 million barrels of oil equivalent when the transaction is completed.

European Union on Target to Achieve 20 Percent of Energy From Renewables by 2020

The European Union is on target to generate from renewable sources more than 20 percent of the total energy it consumes by 2020.

According to a statement released last week, the EU will reach an overall share of 20.3 percent of energy from renewable sources by 2020.

Gunther Oettinger, European Energy Commissioner, said, "This is a very positive sign for the environment, as it will help us to cut CO2 emissions and at the same time enhance our energy security. It is also a very positive message for our economy and our companies. It is an incentive to invest in green technology and the production of renewable energy."

According to the EU Renewable Energy Directive (2009/28/EC), member states unable to meet their targets with domestic resources alone must acquire transfers from other member states who have met their targets or from countries outside the EU.

Germany and Spain, two of the EU's renewable energy leaders, are expected to surpass their targets.

Colorado Governor's Climate Advisor Alice Madden Speaks to Cutting-Edge Renewable Energy Course at the Sturm College of Law

Alice Madden, Colorado Gov. Bill Ritter's Climate Change Advisor, spoke recently to Adjunct Prof. Bob Noun's "Renewable Energy in the 21st Century: Policy, Legislation, Technology, Markets" course at the Sturm College of Law.

Ms. Madden, who served from 2004 to 2008 as the Majority Leader in the Colorado House of Representatives, spoke about attending on behalf of Gov. Ritter the UN Conference on Climate Change in Copenhagen in December 2009 and the fact that the U.S. was much more active at the Copenhagen conference than it had been in previous climate change conferences.

She also explained the evolution of Colorado's renewable energy portfolio standard, the state mandated measure that sets a minimum level of renewable energy generation as part of a utility's entire generating portfolio. In 2004 state voters approved a "first of its kind" referendum that required investor owned utilities operating in Colorado to produce at least 10 percent of their electricity from renewables by 2020. Under her leadership that percentage was subsequently increased by the State Legislature to 20 percent in 2007 and now the state is on the verge of increasing the number yet again to 30 percent by 2020.

The Governor's office, under the direction of Ms. Madden, has worked carefully with key stakeholders to build legislative and business support for the 30 percent level. She noted that assuming the 30 percent level is approved by the legislature, Colorado will have one of the most ambitious renewable energy targets in the country, a level that will underscore Colorado's objective to be the center of "the new energy economy." Looked at another way, the fact that Colorado has gone from no renewable energy target in 2003 to probably 30 percent by 2010 is a testament to the leadership provided by a key group of renewables advocates including Ms. Madden.

Prof. Noun, who serves in a leadership position at the National Renewable Energy Laboratory in Golden, Colorado, and is widely recognized as one of the most knowledgeable experts in the U.S. about renewables policy, has organized what some consider the most forward-looking renewable energy course offered by any American law school. Including learning from Ms. Madden, who is situated directly in the center of Colorado's policy making process, students have also heard from leaders in the renewable energy field including policy makers, lawyers, and technology experts.

"Renewable Energy in the 21s Century" is a "one of its kind" offering and the Sturm College of Law is delighted to be associated with nationally recognized leaders such as Prof. Noun and Ms. Madden.

--Don Smith

New Wall Street Journal Special Report: Creating Environmental Capital

Those interested in what is becoming known as "the business of the environment" (and in reality this should involve all of us) should be sure to check out "Eco:nomics -- Creating Environmental Capital," a special report in the March 8, 2010, edition of The Wall Street Journal.

The two of the most interesting stories are about how a prominent entertainment firm, Disney, is approaching the environment and economics issues from all business perspectives and an interview with U.S. Energy Secretary Steven Chu, who talks about the Obama Administration's energy policies.

It's well worth taking a few minutes to read through this special report.

The Times Are Changing: Royal Dutch Shell and PetroChina Team Up in Pursuit of Large Australian Energy Firm

If someone had said only five years ago that a major European-based energy company would be partnering with an arm of the Chinese government to try to buy an energy asset anywhere in the world, a reasonable person would have said, "That is simply impossible." But not only is it possible, it is happening right now in yet another indication of how the world is becoming much smaller indeed when it comes to energy assets.

Earlier this week Royal Dutch Shell and PetroChina announced plans to pursue Arrow Energy in Australia. As reported in the Financial Times ("Shell and PetroChina Offer to Buy Australia's Arrow," March 8, 2010), "The Australian company [Arrow] is at the vanguard of a handful of projects in the state of Queensland that are investing billions of dollars in a race to convert reserves of coal-bed methane into liquefied natural gas."

It is not clear whether the deal will close, but for now it is enough to be aware of the fact that Chinese government-related companies and large "western" firms see a benefit in working together to pursue energy assets. Making money and securing natural resources appear to be as natural for western firms as Chinese ones. And that will likely mean some very interesting opportunities for those who are prepared to participate in the "new look" related to global energy.

DU Graduate Students Attend Oral Argument on "Roadless Rule" at the U.S. Court of Appeals for the 10th Circuit

Yesterday a group of students attended the oral argument before the U.S. Court of Appeals for the 10th Circuit in Denver in the important case of State of Wyoming, et.al. v. U.S. Department of Agriculture, et.al. The case is also widely known as the "roadless rule case."

The case, which has been going on for more than 10 years, focuses on whether roads can be built on nearly 60 million acres of federal forest land. According to a recent article in Law Week Colorado, the case has national implications. "The roadless rule is one of the most progressive conservation initiatives in decades," Jim Angell with Earthjustice said. "Our old system of addressing this issue on a forest-by-forest basis was leading to the loss of millions and millions of acres of wild land because things were being piece mealed away." On the other hand, Paul Seby, an attorney representing the Colorado Mining Association, has said that the rule established "de facto wilderness areas" in spite of lacking approval from Congress.

Students were hosted at the important hearing by Lori Potter, a nationally recognized environmental attorney with the Denver firm of Kaplin Kirsch & Rockwell. Before the hearing, Ms. Potter explained to the students the context for the case and its overall importance. She also introduced the students to several key actors in the matter.

During the 60 minute hearing (which was only supposed to last 30 minutes, but went longer than anticipated because of the underlying importance of the issues involved), students watched the three-member judicial panel question both sides' attorneys as the judges probed the underpinning rationale on which each side based its arguments.

The students benefited enormously from Ms. Potter's observations both before and after the oral argument.

Before leaving the 10th Circuit Courthouse, Ms. Potter also arranged for the students to meet 10th Circuit Court of Appeals Judge Tim Tymkovich in his chambers. This was a particularly enjoyable experience as the students had the opportunity to ask Judge Tymkovich (who was not a member of the panel hearing the oral argument) questions about his tenure on the bench as well as the process of becoming a federal circuit court judge, one of the highest positions in the entire U.S. federal court system.

All of us at the Sturm College of Law owe a great debt of gratitude to Ms. Potter who proposed the idea of having students attend an oral argument and helped carry it out. Also special recognition goes to Lisa Reynolds, an attorney in Ms. Potter's office and Lucy Daberkow, Assistant Graduate Program Director, for their efforts organizing the event.

Yesterday's experience clearly demonstrates why DU is such a great place to study about environmental and natural resources law. With the help of "community members" such as Ms. Potter students attending DU have the opportunity to enjoy a wide range of events -- in this case an oral argument with national implications -- that add immense richness to the experience of studying at DU.

(The picture above is from the historic courtroom three at the 10th Circuit.)

Iberdrola, World's Largest Wind Energy Producer, to Invest More Than $10 Billion in U.S. Market

Spanish utility giant Iberdrola plans to spend more than $10 billion in the U.S. wind energy market in the next three years.

During the same period the company plans to spend about $6 billion in Spain and the United Kingdom and $3 billion in South America and other locations.

The money spent in the United States represents about 40 percent of the firm's total investment across its entire energy business, the Financial Times has reported ("Iberdrola to Focus on U.S. Growth," Feb. 24, 2010).

Currently Iberdrola has 3,500 MW of installed capacity in the U.S. and is aiming at growing to 23,500 MW of installed capacity.