tar sands exports

Fri, 2014-11-14 09:59Steve Horn
Steve Horn's picture

Former Treasury Secretary Timothy Geithner's Warburg Pincus May Profit from Tar Sands Exports

Several environmental groups have filed a lawsuit against the U.S. Department of State and Secretary John Kerry over the permitting of a controversial border-crossing northern leg of a pipeline system that DeSmogBlog has called Enbridge's “Keystone XL Clone.”

The Keystone XL Clone is designed to accomplish the same goal as TransCanada's Keystone XL: bringing Alberta's tar sands to Gulf coast refineries and export market. It consists of three legs: the Alberta Clipper expansion as the northern leg, the Flanagan South middle leg and the Seaway Twin southern leg.

Green groups have called the northern leg an “illegal scheme” because the Enbridge Alberta Clipper expansion proposal didn't go through the normal State Department approval process. Instead, State allowed Enbridge to add pressure pumps to two separate-but-connected pipelines on each side of the border and send Alberta's diluted bitumen (“dilbit”) to market.

Enbridge dodged a comprehensive State Department environmental review, which involves public hearings and public commenting periods. The groups say this is illegal under the National Environmental Policy Act (NEPA) and have demanded a re-do for Enbridge's application process.

“The only thing worse than dirty oil is dirty oil backed by dirty tricks. This is the fossil fuel equivalent of money laundering,” Kieran Suckling, executive director of the Center for Biological Diversity, said in a press release announcing the lawsuit. “The Obama administration should be ashamed of itself for letting Enbridge illegally pump more dirty tar sands oil into the United States.”

The maneuver has a key beneficiary: former Obama Administration Secretary of the Treasury, Timothy Geithner, who now serves as President of the private equity giant Warburg Pincus.

Geithner's connection to the lawsuit not only adds intrigue, but also reveals the purpose of Enbridge's Keystone XL Clone: an export fast-track to the global market.

Sat, 2013-02-16 10:00Ben Jervey
Ben Jervey's picture

Oil Aboard! Tar Sands Industry Eyes Nexen Rail Alternative to Stalled Pipelines

Facing enormous opposition to the proposed Keystone XL and Northern Gateway pipelines, Canada’s tar sands industry is taking to the tracks to get its sticky bitumen to China. Canadian and Chinese oil companies have explored the “pipeline by rail” option for years now, but over the past month, the prospect of tar sands trains has taken a few big steps closer toward reality.

For over a year, Calgary-based Nexen, Inc. has been developing plans to load tar sands crude onto trains for transport to the West Coast, where it would be loaded onto barges and shipped to China. Late last month, the Canadian government approved the sale of Nexen to a nationalized Chinese oil company, and earlier this week, the U.S. government, which has some say because of Nexen’s major operations in the Gulf of Mexico, gave its stamp of approval.  According to Nexen, the company now has “all the requisite approvals” and the deal “is expected to close the week of February 25, 2013.” (So much for Canadian tar sands benefiting Canadians first and foremost.)

Rail is considered more and more appealing to industry insiders as numerous plans to ship tar sands crude by pipeline have grown increasingly controversial and have been stalled by climate and private property activists from British Columbia to New England to Nebraska. (See: the Keystone XL, the Northern Gateway, and Trailbreaker/Enbridge Line 9.)

In fact, the industry is growing desperate to find ways to export the heavy Canadian crude, as export pipeline capacity is currently maxed out, causing a glut in supply in Alberta, which is driving down prices and causing, according to the Globe and Mail, “billions in forfeited revenues.”

Subscribe to tar sands exports