China’s energy strategy is bad for bidness, bad for Montana

China’s making major moves in global energy markets, and one of them isn’t very good for Montana.

The New York Times ran a story yesterday that we’ve already re-read multiple times, here, because it spells big stuff for our Nation’s energy security: newly-invigorated Chinese competition. As the story details, China is aggressively investing in nations like Russia and Venezuela, and global firms like Brazil’s Petrobras, all the to tune of squeezing out American competitors.

While the implications of this stepped-up competition will impact American firms and positions across the globe, it also brings to light a name familiar to many Montanans who keep up with the coal and oil bidness: Rio Tinto. The Australian-owned firm is getting $19.5 Billion from China’s targeted investment campaign. Dollars, not Yuan.

Chinese Vice President Xi Jingiping at a 2008 news conference announcing the early stages of their new investment strategy. As recently reported, it's now a targeted investment campaign aimed at squeezing out American competitors. (Photo Courtesy: China Daily)

Rio Tinto has gained visibility in Montana’s political landscape recently. Last week, it was one of several sponsors of March Against Meth, a rally that sent over 1,000 teenagers to march on the hill in Helena to urge the Montana legislature to give more money to republican Tom Siebel’s pet project, the Montana Meth Project, which already has millions in private funding. (We’ve posted before on the Meth Project here, where we discussed GOP General Erik Iverson’s transition from Chairman and Chief Operative to behind-the-scenes low-profiler at MMP.)

Environmentalists will also tell you Rio Tinto owns the Spring Creek Mine, near Decker, and a 50 percent share in Decker Coal. Check out a well-developed commentary on this at Montana Public Radio, here.

We’ve included a lovely picture of the mine so you can see how Decker Coal and Rio Tinto want to help beautify our landscape.

The beautiful Spring Creek Mine, owned by Rio Tinto, near Decker Montana. (Photo Courtesy: Rio Tinto)

On the political finance front, the Rio Tinto America Inc. PAC gave $1,000 contributions to the PACs of both Rep. Denny Rehberg (R-MT) and, we’re sad to say, Sen. Max Baucus (D-MT). The PAC also gave what people in the political business call a “shit-ton” of cash to COALPAC, the National Mining Association’s PAC, in sums beginning at $25,000 over a multi-year time frame. COALPAC gave $7,000 to Max, and nearly twice that amount, $13,500, to Denny Rehberg, and not one dime to Senator Jon Tester (D-MT). (Check all these stats and a very lengthy list of other big-name contributors at the FEC‘s contribution database, here.)

Back in 2007, Rio Tinto sponsored a conference for the National Coal Transportation Association, where our Good Governor, Brian Schweitzer (D) was a keynote luncheon speaker. But Schweitzer has made no secret of his passion for coal, a topic many environmentalists love to go ballistic over. We should clarify, though, that his rhetoric tends toward coal gassification and other “clean coal” technology, not the rape-the-mountaintop-shit-in-the-river variety of open-pit coal mining. We’re not into that.

In the past 24 hours, Rio Tinto’s name emerged in the State Legislature amidst a heated water-rights battle. Before a House Committee  sunk a bill (HB-575) that would change Montana’s water rights law to allow the water runoff from Coal Bed Methane (CBM) operations to be re-classified from ground water, to beneficial use water, Rio Tinto was mentioned by many proponents as a beneficiary of the bill. Many ranchers and farmers have long felt otherwise. This was a big deal under Montana’s water rights law, but an explanation of why would be an entirely different post. The upshot was that folks at Rio Tinto were kicking the dog over this one. Legislators, ranchers, irrigators, and folks from Northern Plains Resource Council (Much Respect) opposed this bill, and offered testimony against it… thankfully.

Rep. Bill McChesney (D-Miles City) sponsored the damn thing.

Did we mention that McChesney is a Democrat?

Yep.

He’s also been pimped-out by big oil and coal with a couple other sponsored and supported bills helping the oil and coal bidness. It may not surprise you that he took campaign contributions from Exxon Mobil and the Montana Gas and Oil PAC (Which you can verify at the Montana Commissioner of Political Practices site, here). We’ve put his picture below, so if you’re in Helena, or Miles City and bump into him, tell him he’s full of shit, and needs to switch parties and be more honest about his political philosophy. That’s just how we feel.

Rep. Bill McChesney (D-Miles City), giving new meaning to the term "Republicrat." (Photo Courtesy: Montana Legislature)

[Environmentalists dully note Bill's name as author types, and will remember it next time he's up for re-election. Theresa Keaveny at MCV does not kick a dog or kitten, but does need to go for a walk to calm down as she does whenever democrats act like this.]

From Australia to China and Helena to Miles City, Rio Tinto isn’t doing Montana or our Country any favors, unless you’re in the coal bidness, or you like Russia. And while major advancements on the coal-to-liquids front may improve the environmental impacts of certain aspects of coal-to-liquids development, those aren’t the markets Rio Tinto is in.

Think Montana…

Then think Appalachia…

West Virginia…

Kentucky.

Tags: Brian Schweitzer, British Petroleum, Coal Gassification, Coal-to-liquids, Coalbed Methane, COALPAC, Denny Rehberg, Exxon Mobil, HB-575, Jon Tester, March against Meth, Max Baucus, Montana Conservation Voters, Montana Legislature, Montana Meth Project, MT Gas and Oil PAC, New York Times, Northern Plains Resource Council, Petrobras, rape-the-mountaintop-shit-in-the-river, Rep. Bill McChesney (D-Miles City), Rio Tinto, Russia, Spring Creek Mine, Theresa Keaveny, Venezuela