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Wed, 2011-11-09 06:00Ben Jervey
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Valero Positioning To Export Tar Sands Oil, Guarding Pot of Gold at End of Keystone XL Pipeline

In the heated Keystone XL debate, the Canadian company TransCanada, which is attempting to build the line, and the Koch brothers, who are throwing their considerable weight behind it in the interest of their Koch Industries’ subsidiaries, receive a lot of attention.
 

But there are other benefactors that are worth a closer look, as nobody stands to benefit as much in the longer term (if the Keystone XL pipeline is ever built) as the companies that operate the refineries on the Gulf Coast.

Let’s step back and review what the refineries actually do. The diluted tar sands bitumen (or “DilBit”) that would flow through Keystone XL is an ultra-acidic, highly viscous mess, that doesn’t at all resemble the refined petroleum products like diesel or gasoline or even jet fuel that are sold on the commercial markets. DilBit is, in the words of Keith Schneider, ”thick as peanut butter and more acidic, highly corrosive, and abrasive” than typical crude.

This tar sands DilBit needs to be refined before it can be sold. But only certain refineries are capable of handling the corrosive DilBit.

Refiners along the Texas Gulf Coast, where the Keystone XL pipeline would ultimately deliver tar sands DilBit from Canada, are eager to accomodate. The company that appears positioned to receive and refine more of TransCanada’s crude than anyone else is the Valero Energy Corporation (NYSE: VLO).

Fri, 2011-10-14 07:33Ben Jervey
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Dominion Seeks To Export Marcellus Shale Gas While Claiming Its Necessity for U.S. Energy Security

As energy companies scramble to develop the Marcellus Shale and other natural gas reserves locked up in shale formations, you’ll hear a lot about American “energy security” and reducing dependence on fossil fuel imports. You won’t hear a lot about companies’ plans to export the gas.

It’s becoming clear, however, that gas companies like Dominion Resources and Jordan Cove have big plans for exporting the natural gas that they’re rushing to frack.

First, some background. To export or import natural gas, companies can either transport it through pipelines, or ship it as liquefied natural gas (LNG). LNG is natural gas cooled to -260 degrees Fahrenheit, at which point the gas becomes a liquid.

Currently, the vast majority of natural gas exports from the United States travel through pipelines into Mexico and Canada. Of the 1,136,789 million cubic feet of natural gas exported from the United States in 2010, only 64,763 million cubic feet were exported as liquefied natural gas. In other words, only about 5 percent of natural gas exports currently leave our borders as LNG from coastal ports.


  

Thu, 2011-09-29 17:01Ben Jervey
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Cornell Report Busts Myth of Keystone XL Job Creation

Pipe dreams: Jobs Gained, Jobs Lost by the Construction of Keystone XL

Proponents of the controversial Keystone XL pipeline project would like you to believe that, if approved, its construction will put hundreds of thousands of Americans to work. This is plainly untrue, according to a new report by the Cornell University Global Labor Institute.

TransCanada, the Canadian company behind the project, has spent the past few years making ambitious claims about the jobs that would be created by construction of the pipeline, which would carry diluted bitumen (or DilBit) crude 1,700 miles across six Great Plains states, 1,904 waterways, and the nation’s largest freshwater aquifer.

These jobs claims have grown more optimistic as the project has found itself the subject of increased scrutiny. This National Wildlife Federation post rounds up TransCanada’s mysteriously rising jobs claims:

In 2008, a report included in TransCanada’s Presidential Permit application for Keystone XL to the State Department said they anticipate “a peak workforce of approximately 3,500 to 4,200 construction personnel” to build the pipeline. In 2010, TransCanada put out a press release that said, “During construction, Keystone XL would create 13,000 jobs and further produce 118,000 spin-off jobs.” In 2011, TransCanada put out a fact sheet that said Keystone XL would “create about 20,000 construction and manufacturing jobs.”

In reality, according to the exhaustively researched Cornell report, even the earliest, most modest claims seem unrealistic.

In fact, in Pipe Dreams? Jobs Gained, Jobs Lost by the Construction of Keystone XL, the institute says more jobs could actually be destroyed than created by the pipeline.

Mon, 2011-09-19 15:04Ben Jervey
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EnergyNOW! Tackles Keystone XL, And Talks To Me About Pipelines

EnergyNOW! news on Keystone XL pipeline

On Sunday, energyNOW! news tackled the Keystone XL debate in a wide-ranging half hour program that covered the controversial pipeline in typically comprehensive fashion.

An overview intro segment looks at the “impact on America,” from the alleged reduction of imports of OPEC crude to potential for pollution. Reporter Thalia Assuras' trip to Nebraska to talk to local 'Huskers – landowners and politicians alike – is fascinating.

The show then travels up to Alberta, whose Athabasca tar sands reserves would feed the Keystone XL pipeline, funneling filthy DilBit crude down to Gulf Coast refineries.

The last segment features an exclusive interview with Energy Secretary Steven Chu, which they teased a few weeks back. (And which, you might recall, I responded to at the time, calling his claim that Keystone XL would increase our national “energy security” cynical politics.)

If you're able to spend a half hour learning about this urgent hot-button issue, this show is a great place to start. If you can't see the embedded video below, you can watch on energyNOW's website.

Sat, 2011-09-17 11:43Ben Jervey
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"Doubt" Video On Fossil Fuel Industry's Tobacco PR Tactics To Undermine Science

Doubt is our product

In case you didn't manage to catch all 24 hours of the Climate Reality Project (I mean, what the heck else were you doing?), I wanted to flag this one video for you, as it's particularly germane to the ongoing coverage here at DeSmogBlog.

It's called “Doubt,” and it's about how the fossil fuel industry took the tobacco industry's playbook (didn't just borrow a play, but really the whole playbook) to confuse the public on the science of climate change. Not by disproving the facts – because that's impossible – but just by creating enough doubt to make a busy public dismiss it.

DOUBT from The Climate Reality Project on Vimeo.

Fri, 2011-09-16 10:58Ben Jervey
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America's Woefully Inadequate Oversight of Pipeline Safety: A New York Times Stunner

Last week, the New York Times published a bombshell of an expose about the government's woefully inadequate program to monitor and ensure the security and safety of American energy pipelines. I’ve spent a lot of time lately investigating the state of North American energy pipelines, and this is by far the best overview I’ve seen of the government’s feckless attempt to oversee the sprawling system and protect the public from spills, leaks, and explosions.

Reporters Dan Frosch and Janet Roberts dig into federal government records and safety documents and surface some truly startling findings. Like the fact that there are “still more than 100 significant spills each year.” (“Significant” spills being those that cause a fire, serious injury or death, or release over 2,100 gallons.)

Or that the Pipeline and Hazardous Materials Safety Administration only requires companies to focus their inspections on “the 44 percent of the nation’s land-based liquid pipelines that could affect high consequence areas — those near population centers or considered environmentally delicate — which leaves thousands of miles of lines loosely regulated and operating essentially on the honor system.” Or the fact that the agency doesn’t even employ as many inspectors as federal law demands.

It’s well worth reading the whole expose, but here’s the crucial takeaway:

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