Alberta

Tue, 2014-10-14 13:35Steve Horn
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Tar Sands Trade: Kuwait Buys Stake in Alberta As It Opens Own Heavy Oil Spigot

Chevron made waves in the business world when it announced its October 6 sale of 30-percent of its holdings in the Alberta-based Duvernay Shale basin to Kuwait Foreign Petroleum Exploration Company (KUFPEC) for $1.5 billion.

It marked the first North American purchase for the Kuwaiti state-owned oil company and yields KUFPEC 330,000 acres of Duvernay shale gas. Company CEO and the country's Crown Prince, Sheikh Nawaf Al-Ahmad Al-Jaber Al-Sabah, called it an “anchor project” that could spawn Kuwait's expansion into North America at-large. 

Kuwait's investment in the Duvernay, at face-value buying into Canada's hydraulic fracturing (“fracking”) revolution, was actually also an all-in bet on Alberta's tar sands. As explained in an October 7 article in Platts, the Duvernay serves as a key feedstock for condensate, a petroleum product made from gas used to dilute tar sands, allowing the product to move through pipelines. 

And while Kuwait — the small Gulf state sandwiched between Iraq and Saudi Arabia — has made a wager on Alberta's shale and tar sands, Big Oil may also soon make a big bet on Kuwait's homegrown tar sands resources.

“Kuwait has invited Britain’s BP, France’s Total, Royal Dutch Shell, ExxonMobil and Chevron, to bid for a so-called enhanced technical service agreement for the northern Ratqa heavy oilfield,” explained an October 2 article in Reuters. “It is the first time KOC will develop such a big heavy oil reservoir and the plan is to produce 60,000 bpd from Ratqa, which lies close to the Iraqi border [in northern Kuwait]…and then ramp it up to 120,000 bpd by 2025.”

In the past, Kuwait has said it hopes to learn how to extract tar sands from Alberta's petroleum engineers.

Wed, 2014-08-27 13:10Steve Horn
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State Dept. Overseers of Contentious Enbridge Tar Sands Pipeline Workaround Have Industry, Torture Ties

The Sierra Club, National Wildlife Federation (NWF) and other green groups recently revealed that pipeline giant Enbridge got U.S. State Department permission in response to its request to construct a U.S.-Canada border-crossing tar sands pipeline without earning an obligatory Presidential Permit.

Enbridge originally applied to the Obama State Department to expand capacity of its Alberta Clipper (now Line 67) pipeline in November 2012, but decided to avoid a “Keystone XL, take two” — or a years-long permitting battle — by creating a complex alternative to move nearly the same amount of diluted bitumen (“dilbit”) across the border.

The move coincides with the upcoming opening for business of Enbridge's “Keystone XL” clone: the combination of the Alberta Clipper expansion (and now its alternative) on-ramp originating in Alberta and heading eventually to Flanagan, Ill., the Flanagan South pipeline running from Flanagan, Ill. to Cushing, Okla. and the Cushing, Okla. to Port Arthur, Texas Seaway Twin pipeline.

Together, the three pieces will do what TransCanada's Keystone XL hopes to do: move dilbit from Alberta's tar sands to Port Arthur's refinery row and, in part, the global export market.

Environmental groups have reacted with indignation to the State Department announcement published in the Federal Register on August 18. The public commenting period remains open until September 17.

Jim Murphy, senior counsel for NWF, referred to it as an “illegal scheme,” while a representative from 350.org says Enbridge has learned from the lessons of its corporate compatriot, TransCanada.

“When we blocked Keystone XL, the fossil fuel industry learned that they have a much stronger hand to play in back rooms than on the streets,” said Jason Kowalski, policy director for 350.org. “They will break the law and wreck our climate if that's what it takes for them to make a buck.”

But as the old adage goes, it takes two to tango. 

That is, influential State Department employees helped Enbridge find a way to smuggle an additional 350,000 barrels of tar sands per day across the border without public hearings or an environmental review. 

Tue, 2014-08-19 15:40Steve Horn
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Court: Key Environmental Law Doesn't Apply to Part of Enbridge Keystone XL "Clone"

Keystone XL Clone Flanagan South

A U.S. District Court for the District of Columbia has ruled that Enbridge’s 600-mile-long Flanagan South Pipeline, a Keystone XL “clone,” is legally cleared to proceed opening for business in October

Approved by the U.S. Army Corps of Engineers via a controversial regulatory mechanism called Nationwide Permit 12 (NWP 12), Judge Kentanji Brown Jackson, an Obama-appointed judge, ruled NWP 12 was not a federal government “action.” Thus, Brown posited that Enbridge did not need to use the National Environmental Policy Act (NEPA) regulatory process and NWP 12 was up to snuff.

The case pitted the Sierra Club and the National Wildlife Federation (NWF) against the Army Corps of Engineers and Enbridge and has lasted for just over a year, with the initial complaint filed on August 13, 2013 (Case #: 1:13-cv-01239-KBJ). 

Sierra Club and NWF submitted the recent precedent-setting Delaware Riverkeeper v. Federal Energy Regulatory Commission (FERC) case as supplemental authority for Sierra Club v. U.S. Army Corps of Engineers on the day that decision was handed down. 

But Jackson brushed it aside, saying it doesn't apply to Flanagan South, despite the fact that the Delaware Riverkeeper v. FERC decision said that a continuous pipeline project cannot be segmented into multiple parts to avoid a comprehensive NEPA review.

Although Enbridge will operate this project as a single pipeline, Flanagan South was broken up into thousands of “single and complete” projects by the Army Corps of Engineers. This helped Enbridge skirt the requirement of a more comprehensive and public-facing NEPA review, which involves public hearings and a public comment period.

“Here, not only was there no NEPA analysis of this massive project, there was never any public notice or opportunity for involvement before it was constructed across four states,” Sierra Club attorney for the case, Doug Hayes, told DeSmogBlog. “The entire thing was permitted behind closed doors.”

For all intents and purposes, then, Flanagan South is a fait accompli and tar sands diluted bitumen (“dilbit”) will begin pumping through it as summer turns to fall. 

Sun, 2014-08-17 13:50Carol Linnitt
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The Oilsands Cancer Story Part 3: The Spotlight Turns on Fort Chip Doctor

Fort Chipewyan Cemetery. Fort Chip, located downstream of the oilsands, has higher than average cancer rates.

This is the third installment in a three-part series on Dr. John O'Connor, the family physician to first identify higher-than-average cancer rates and rare forms of cancer in communities downstream of the Alberta oilsands.

Part 3: The Spotlight Turns On Fort Chip Doctor

After the story of Fort Chip’s health problems broke, Health Canada sent physicians out to the small, northern community.

Dr. John O’Connor said one of the Health Canada doctors went into the local nursing station and, in front of a reporter, filled a mug with Fort Chip water and drank from it, saying, ‘See, there’s nothing wrong with it.’

That was such a kick in the face for everyone,” O’Connor said. “Just a complete dismissal of their concerns.”

Health Canada eventually requested the charts of the patients who had died. Six weeks later they announced the findings of a report that concluded cancer rates were no higher in Fort Chip than expected.

For O’Connor, however, the numbers “just didn’t match up.”

Fri, 2014-08-15 17:30Steve Horn
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Investor Call: Enbridge's Keystone XL Clone Opens in October, Rail Facility to Follow

In a recent quarter two call for investors, Enbridge Inc executives said the company's “Keystone XL” clone — the combination of the Flanagan South and Seaway Twin pipelines — will open for business by October.

As previously reported by DeSmogBlog, Enbridge has committed a “silent coup” of sorts, ushering in its own Alberta to Port Arthur, Texas pipeline system “clone” of TransCanada's Keystone XL tar sands pipeline. Unlike Keystone XL's northern leg, however, Enbridge has done so with little debate. 

With the combination of the Alberta Clipper (now called Line 67, currently up for expansion), Flanagan South and Seaway Twin pipelines, Enbridge will soon do what TransCanada has done via its Keystone Pipeline System.

That is, bring Alberta's tar sands to Gulf of Mexico refineries and send it off to the global export market.

According to Guy Jarvis, president of liquids pipelines for Enbridge, even though the Cushing, Oklahoma to Port Arthur, Texas Seaway Twin is technically operational, it will not become functional until Flanagan South opens in October. 

“The base plan had been, and still is, to do the line fill of the Seaway Twin from Flanagan South. So we don't expect to see too much off the Seaway Twin until Flanagan South does go into service,” Jarvis said on the investor call.

“It does have the capability to be line filled at Cushing if the barrels are available and the market signals would suggest that you would want to do that. But at this point in time, we think it will be the base plan that it is filled on from Flanagan South.”

Beyond piping diluted bitumen (“dilbit”) to market, Enbridge also has plans to market dilbit via rail in a big way.

Wed, 2014-08-13 15:00Ben Jervey
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Fuse to the Carbon Bomb: Keystone XL Much Worse for Climate Than Obama Admin Estimated

Last week, supporters of the Keystone XL pipeline got all worked up about a study that purported to find that the delay in approving the project has actually increased greenhouse gas emissions.

The narrowly-focused study was based on faulty assumptions (that the tar sands would always find a way to market) and cherry-picked data (disregarding entirely any increases emissions that greater access to tar sands crude would create) in order to portray the pipeline project as positive for the climate. The five year or more delay in approving Keystone XL will ultimately increase carbon dioxide emissions by up to 7.4 million tons, argued the American Action Forum, a self-described “center-right policy institute.”

A study released this week by scientists at the Stockholm Environmental Institute shows just how misleading the American Action Forum claims really are. 

If built, the Keystone XL pipeline would flood global oil markets with crude, increase demand, and dump as much as 110 million tons of carbon dioxide equivalent into the atmosphere every year, according to the study published in the journal Nature Climate Change.

This figure is a full four times higher than the State Department estimated in its final environmental review of the project.

The state department had figured that, at most, the pipeline would increase world carbon dioxide emissions by 30 million tons.

“The sole reason for this difference is that we account for the changes in global oil consumption resulting from increasing oil sands production levels, whereas the State Department does not,” wrote study authors Peter Erickson and Michael Lazarus, both scientists with the Stockholm Environment Institute.

The flawed State Department assumption — saying that the pipeline wouldn’t result in increased production of Canadian tar sands — is the same assumption used by the American Action Forum and other Keystone XL proponents when arguing that the oil will find its wa to market one way or another.

However, the oil industry and other energy experts have acknowledged that Keystone XL and other pipeline projects are crucial to the development of Alberta’s tar sands.

Mon, 2014-08-04 12:05Carol Linnitt
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The Oilsands Cancer Story Part 2: Deformed Fish, Dying Muskrats Cause Doctor To Sound Alarm

Robert Grandjambe Jr. Shows DeSmog Sick Fish from Lake Athabasca

This is the second installment of a three-part series on Dr. John O'Connor, the family physician to first identify higher-than-average cancer rates and rare forms of cancer in communities downstream of the Alberta oilsands.

Part 2: Deformed Fish, Dying Muskrats Cause Doctor To Sound Alarm

When Dr. John O’Connor arrived in Fort Chipewyan in 2000, it took him a little while to get familiar with the population.

The town was a bit larger than his previous post of Fort MacKay, with a population of around 1,000 at that time. Locals had few options when it came to medical care. Their town was 300 kilometres north of Fort McMurray and accessible only by plane in the summer or by ice road for a few of the colder months.

O’Connor recognized it was a close-knit community and yet hard to get a foothold in.

You had to be trusted to gain their respect, I guess,” he said.

Most doctors hadn’t established a continuous practice up there, O’Connor said, so the community hadn’t received continuous care by the same medical expert for many years.

What they were looking for was one pair of eyes, one pair of hands. Consistency,” he recounts.

That was one of the reasons why I was approached to provide service. So that made it easier to get to know people and for them to get to know me.”

O’Connor immediately began poring over patient files, piecing together what a series of seasonal doctors had left behind. Patients there felt there was no continuity between what rotating doctors would say about their symptoms.

Mon, 2014-07-21 14:26Justin Mikulka
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Maine Residents Fight American Petroleum Institute Lobbyists Over Ban on Tar Sands Shipments

Portland, Maine, has become the latest battleground in the fight against tar sands oil, with local residents facing off against energy industry forces in an attempt to ban tar sands oil from the city’s port.

The South Portland Clear Skies Ordinance, would ban tar sands oil from being loaded on to ships at the local port. City council will take a final vote on the measure today.

Three weeks ago, about 200 people attended a presentation on the proposed ordinance, many wearing blue “clear skies” t-shirts to show their support. Only three people spoke against the ordinance at that meeting.

But on July 7, when many of the same 200 people in blue t-shirts showed up at the meeting when the city council was set to vote on the ordinance, they were met with a surprise. The meeting room was packed with people in red shirts that read “American Energy” on the front and “SoPo Jobs” on the back.

Wed, 2014-07-02 10:42Carol Linnitt
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PHOTOS: Famed Photographer Alex MacLean’s New Photos of Canada’s Oilsands are Shocking

Alex MacLean, oilsands, keystone xl, tar sands

Alex MacLean is one of America’s most famed and iconic aerial photographers. His perspective on human structures, from bodies sunbathing at the beach to complex, overlapping highway systems, always seems to hint at a larger symbolic meaning hidden in the mundane. By photographing from above, MacLean shows the sequences and patterns of human activity, including the scope of our impact on natural systems. His work reminds us of the law of proximity: the things closest to us are often the hardest to see.

Recently MacLean traveled to the Alberta oilsands in western Canada. There, working with journalist Dan Grossman, MacLean used his unique eye to capture some new and astounding images of one of the world’s largest industrial projects. Their work, funded by the Pulitzer Center on Crisis Reporting, will form part of a larger, forthcoming report for GlobalPost.

DeSmog Canada caught up with MacLean to ask him about his experience photographing one of Canada’s most politicized resources and the source of the proposed Keystone XL and Northern Gateway pipelines.

Wed, 2014-06-25 13:27Steve Horn
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Recent Federal Court Decision Could Muddy Waters for Keystone XL South, Flanagan South

On June 6, the U.S. Court of Appeals for the District of Columbia Circuit handed down a ruling that will serve as important precedent for the ongoing federal legal battles over the Keystone XL and Flanagan South tar sands pipelines.

In the Delaware Riverkeeper v. Federal Energy Regulatory Commission (FERC) case, judges ruled that a continuous pipeline project cannot be segmented into multiple parts to avoid a comprehensive National Environmental Policy Act (NEPA) review. This is what Kinder Morgan proposed and did for its Northeast Upgrade Project.

As reported on DeSmogBlog, the U.S. Army Corps of Engineers did the same thing to streamline permitting for both the southern leg of TransCanada's Keystone XL and Enbridge's Flanagan South. Sierra Club and co-plaintiffs were denied injunctions for both pipelines in October and November 2013, respectively.

Delaware Riverkeeper v. FERC dealt with breaking up a new 40-mile long pipeline upgrade into four segments. For the other two cases, the Army Corps of Engineers shape-shifted the two projects — both hundreds of miles long each — into thousands of “single and complete” projects for permitting purposes.

On the day of the Delaware Riverkeeper v. FERC decision, Sierra Club attorney Doug Hayes submitted the case as supplemental authority for the ongoing Flanagan South case.

On May 5, Hayes also submitted paperwork to appeal the Keystone XL South decision in front of the U.S. Court of Appeals for the Tenth Circuit, which was docketed by the clerk of Ccurt the next day.

Hayes told DeSmogBlog his side will file an opening brief for the appeal on July 30. It seems likely Delaware Riverkeeper v. FERC will be a key part of that appeal.

In a sign of the importance of the outcome for the oil and gas industry, the American Petroleum Institute (APIentered the Sierra Club v. Army Corps of Engineers case on Keystone XL as an intervenor on May 16, represented by corporate law firm Hunton & Williams.

At the federal level, Hunton & Williams lobbies on behalf of Koch Industries, a company with a major stake in tar sands leases and refining.

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