Barack Obama

Wed, 2014-02-05 10:00Steve Horn
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Keystone XL's Northern Leg: A Fracked Oil Pipeline Along with Tar Sands

On January 31, President Barack Obama's U.S. State Department released its Final Environmental Impact Statement (FEIS) for the northern leg of TransCanada's proposed Keystone XL tar sands pipeline.

The State Department's FEIS argues that the northern half of Keystone XL, if built, “remains unlikely to significantly impact the rate of extraction in the oil sands, or the continued demand for heavy crude oil at refineries in the United States.”

But flying under the media's radar so far, the State Department review also highlights the prospect that Keystone XL will not only carry tar sands, but also be tapped to carry up to 100,000 barrels per day of oil extracted via hydraulic fracturing (“fracking”) from North Dakota's Bakken Shale basin.

“[Keystone XL] would have the capacity to deliver up to 830,000 bpd, of which 730,000 bpd of capacity has been set aside for [tar sands] and the remaining 100,000 bpd of capacity set aside for [Bakken] crude oil,” the report details.

“[TransCanada] has represented that it has firm commitments to transport approximately 555,000 bpd of [tar sands], as well as 65,000 bpd of crude oil from the Bakken.”

A smaller proposed project owned by TransCanada called the Bakken MarketLink pipeline and incorporated as Keystone Marketlink LLC in February 2011, would ship the fracked oil to Keystone XL's northern leg as an “on ramp.” 

“This project would include a 5-mile pipeline, pumps, meters, and storage tanks to supply Bakken crude oil to the proposed pipeline,” explains the FEIS.

Tue, 2014-01-07 14:11Steve Horn
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Days Before Casselton Oil Train Explosion, Obama Signed Bill Hastening Fracking Permits on ND Public Lands

On December 20, both chambers of the U.S. Congress passed a little-noticed bill to expedite permitting for hydraulic fracturing (“fracking”) on public lands in the Bakken Shale basin, located predominantly in North Dakota. And on December 26, President Obama signed the bill into law. 

Days later, on December 30, a Burlington Northern Santa Fe (BNSF) freight train owned by Warren Buffett carrying Bakken fracked oil exploded in Casselton, North Dakota. Locals breathed a smoky sigh of relief that the disaster happened outside the town center. In July 2013, a “bomb train” carrying Bakken oil exploded in Lac-Mégantic, Quebec, killing 47 people

Dubbed the “Bureau of Land Management (BLM) Streamlining Act,” the bill passed unanimously in the Senate as S.244 and 415-1 in the House as H.R. 767, with Rep. Justin Amash (R-MI) serving as the sole “nay” vote and 16 representatives abstaining. Among the abstentions were representatives Peter Defazio (D-OR), Henry Waxman (D-CA) and John Campbell (R-CA).

H.R. 767's sponsor is North Dakota Republican Rep. Kevin Cramer, who received $213,150 from the oil and gas industry prior to the 2012 election, and an additional $29,000 for the forthcoming 2014 elections.

Cosponsors include Wyoming Republican Rep. Cynthia Lummis ($109,050 from the oil and gas industry pre-2012 election, $28,500 in the 2014 election cycle), South Dakota Republican Rep. Kristi Noem ($95,501 from the industry pre-2012 election, $20,400 pre-2014) and Montana Republican Rep. Steve Daines ($124,620 pre-2012 election and $87,412 pre-2014).

S.244 is sponsored by Sen. John Hoeven (R-ND), who has taken $291,237 from the oil and gas industry since his 2010 election to Congress. Cosponsor Sen. Heidi Heitkamp (D-NDreceived $111,050 from the oil and gas industry since her 2012 electoral victory.

Tue, 2013-12-10 12:01Steve Horn
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TransCanada Begins Injecting Oil Into Keystone XL Southern Half; Exact Start Date A Mystery

Keystone XL's southern half is one step closer to opening for business. TransCanada announced that “on Saturday, December 7, 2013, the company began to inject oil into the Gulf Coast Project pipeline as it moves closer to the start of commercial service.”

The Sierra Club's legal challenge to stop the pipeline was recently denied by the U.S. Court of Appeals for the Tenth Circuit, so the southern half, battled over for years between the industry and environmentalists, will soon become a reality.

According to a statement provided to DeSmog by TransCanada, “Over the coming weeks, TransCanada will inject about three million of [sic] barrels of oil into the system, beginning in Cushing, Oklahoma and moving down to the company’s facilities in the Houston refining area.”

In mid-January, up to 700,000 barrels per day of Alberta's tar sands diluted bitumen (dilbit) could begin flowing through the 485-mile southern half of TransCanada's pipeline, known as the Gulf Coast Project. Running from Cushing, Oklahoma to Port Arthur, Texas, the southern half of the pipeline was approved by both a U.S. Army Corps of Engineers Nationwide Permit 12 and an Executive Order from President Barack Obama in March 2012.

BloombergThe Canadian Press and The Oklahoman each reported that the Gulf Coast Project pipeline is now being injected with oil. Line fill is the last key step before a pipeline can begin operations. 

“There are many moving parts to this process – completion of construction, testing, regulatory approvals, line fill and then the transition to operations,” TransCanada spokesman Shawn Howard told DeSmog. “Line fill has to take place first, then once final testing and certifications are completed, the line can then go into commercial service.”

Residents living along the length of the southern half will have no clue about the rest of the start-up process, as TransCanada says it won't provide any more information until the line is already running. “For commercial and contractual reasons, the next update we will provide will be after the line has gone into commercial service,” the company announced.

When DeSmog asked whether the company is currently injecting conventional oil or diluted bitumen sourced from the Canadian tar sands, TransCanada's Howard replied: 

“Many people like to try and categorize the blend, etc., however we are injecting oil into the pipeline. As you’ve likely seen me quoted before, oil is oil and this pipeline is designed to handle both light and heavy blends of oil, in accordance with all U.S. regulatory standards.

I am not able to provide you the specific blend or breakdown as we are not permitted (by our customers) from disclosing that information to the media. There are very strict confidentiality clauses in the commercial contracts we enter into with our customers, and that precludes us from providing that. The reason is that if we are providing information about a specific blend, when it is in our system, etc. – that has the potential to identify who our customers may be or allow others to take financial positions in the market and profit from that information when others do not have access to the same information. This has much farther reaching impacts for the financial markets (and ultimately all of us).”

Wed, 2013-12-04 13:32Steve Horn
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Documents Reveal ALEC's Looming Attacks on Clean Energy, Fracking Laws, Greenhouse Gas Regulations

The Guardian has released another must-read piece about the American Legislative Exchange Council (ALEC), this time laying bare its anti-environmental agenda for 2014. 

The paper obtained ALEC's 2013 Annual Meeting Policy Report, which revealed that ALECdubbed a “corporate bill mill” for the statehouses by the Center for Media and Democracy — plans more attacks on clean energy laws, an onslaught of regulations pertaining to hydraulic fracturing (“fracking”) and waging war against Environmental Protection Agency (EPA) greenhouse gas regulations.

“Over the coming year, [ALEC] will promote legislation with goals ranging from penalising individual homeowners and weakening state clean energy regulations, to blocking the Environmental Protection Agency, which is Barack Obama's main channel for climate action,” explained The Guardian. “Details of ALEC's strategy to block clean energy development at every stage, from the individual rooftop to the White House, are revealed as the group gathers for its policy summit in Washington this week.”

The documents also reveal ALEC's boasting of introducing myriad “model resolutions” nationwide in support of fast-tracking approval for the northern half of Transcanada's Keystone XL pipeline, along with another “model bill” — the “Transfer of Public Lands Act” already introduced in Utah — set to expropriate federally-owned public lands to oil, gas and coal companies. 

Tue, 2013-11-26 15:31Steve Horn
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Obama Approves Major Border-Crossing Fracked Gas Pipeline Used to Dilute Tar Sands

Although TransCanada's Keystone XL tar sands pipeline has received the lion's share of media attention, another key border-crossing pipeline benefitting tar sands producers was approved on November 19 by the U.S. State Department.

Enter Cochin, Kinder Morgan's 1,900-mile proposed pipeline to transport gas produced via the controversial hydraulic fracturing (“fracking”) of the Eagle Ford Shale basin in Texas north through Kankakee, Illinois, and eventually into Alberta, Canada, the home of the tar sands. 

Like Keystone XL, the pipeline proposal requires U.S. State Department approval because it crosses the U.S.-Canada border. Unlike Keystone XL - which would carry diluted tar sands diluted bitumen (“dilbit”) south to the Gulf Coast - Kinder Morgan's Cochin pipeline would carry the gas condensate (diluent) used to dilute the bitumen north to the tar sands.

“The decision allows Kinder Morgan Cochin LLC to proceed with a $260 million plan to reverse and expand an existing pipeline to carry an initial 95,000 barrels a day of condensate,” the Financial Post wrote

“The extra-thick oil is typically cut with 30% condensate so it can move in pipelines. By 2035, producers could require 893,000 barrels a day of the ultra-light oil, with imports making up 786,000 barrels of the total.”

Increased demand for diluent among Alberta's tar sands producers has created a growing market for U.S. producers of natural gas liquids, particularly for fracked gas producers.

“Total US natural gasoline exports reached a record volume of 179,000 barrels per day in February as Canada's thirst for oil sand diluent ramped up,” explained a May 2013 article appearing in Platts. ”US natural gasoline production is forecast to increase to roughly 450,000 b/d by 2020.”

Tue, 2013-11-12 08:02Steve Horn
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Public Citizen Report Reveals Dents, Holes in Keystone XL Southern Half Weeks Before Planned Startup

The southern half of Transcanada's Keystone XL tar sands pipeline is supposed to begin pumping up to 700,000 barrels of diluted bitumen per day through the Cushing, OK to Port Arthur, TX route within weeks. But is it ready to operate safely?

Public Citizen has released a chilling report revealing that the 485-mile KXL southern line is plagued by dents, faulty welding, exterior damage that was patched up poorly and misshapen bends, among other troubling anomalies.

In conducting its investigative report, “Construction Problems Raise Questions About the Integrity of the Pipeline,” Public Citizen worked on the ground to examine 250 miles of the 485 mile pipeline's route. The group and its citizen sources uncovered over 125 anomalies in that half of the line alone. These findings moved Public Citizen to conclude the southern half of the pipeline shouldn't begin service until the anomalies are taken care of, and ponders if the issues can ever be resolved sufficiently.

After President Barack Obama temporarily denied a permit for Keystone XL's northern half in January 2012, the U.S. Army Corps of Engineers granted Keystone XL's south half a legally dubious Nationwide Permit 12 to expedite construction. Soon after, President Obama issued his own Executive Order in March 2012 calling for the expedited building of the south half in de facto support of the Corps' permit. 

An August report by industry intelligence firm Genscape said the pipeline, rebranded by Transcanada as the “Gulf Coast Project,” will ship tar sands dilbit through the line beginning in the first quarter of 2014. Now, the race to build the south half literally looks like it could come with major costs and consequences.  

Sun, 2013-10-13 19:19Steve Horn
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US Court: Transcanada's Keystone XL Profits More Important than Environment

In a major ruling that's flown under the radar, the U.S. Court of Appeals for the Tenth Circuit - based in Denver, Colorado - decided not to grant the Sierra Club and Clean Energy Future Oklahoma a temporary injunction on the construction of the southern half of Transcanada's Keystone XL tar sands export pipeline

The Court's decision hinged on an “injury” balancing test: Would Transcanada be hurt more financially from receiving an injunction? Had it lost, it would be stuck with one until Sierra Club, et al receive a U.S. District Court decision on the legality of the U.S. Army Corps of Engineers' decision to grant Transcanada a Nationwide Permit 12 (NWP 12) for construction of what's now called the Gulf Coast Pipeline in February 2012. 

Or would ecosystems suffer even greater and potentially incalculable damage from the 485-mile, 700,000 barrels per day pipeline crossing 2,227 streams?

In a 2-1 decision, the Court sided with Transcanada, and by extension, the U.S. Army Corps of Engineers. The Court ruled, “the threatened environmental injuries were outweighed by the financial harm that the injunction would cause Transcanada.”

Commenting on the case brought by Sierra Club, et al, Judge Jerome A. Holmes and Judge Paul J. Kelly, Jr. - appointees of President George W. Bush and President George H.W. Bush, respectively - shot down the arguments sharply.

U.S. Appeals Court for the 10th Circuit Judge Jerome A. Holmes; Photo Credit: The White House

Holmes and Kelly ruled that Sierra Club, et al failed to show how the pipeline will have a significant environmental impact despite the fact it's been deemed a “fuse to the biggest carbon bomb on the planet” by retired NASA climate scientist James Hansen. 

Construction of Keystone XL's southern half - subject of significant grassroots activism by the Tar Sands Blockade and others - is now nearly complete. Tar sands dilbit is slated to begin to flow through it in early 2014. 

Wed, 2013-10-09 05:00Steve Horn
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Obama's Former Communications Director Anita Dunn Pitches "Ethical Oil" Keystone XL Ad

Ezra Levant is the man behind an attempt to re-frame the Alberta tar sands as “ethical oil.” “Ethical” - Levant's deceptive public relations campaign argues of the tar sands “carbon bomb” - because it doesn't come from the war-ridden and human rights-abusing Middle East. 

Now, the “ethical oil” campaign has a new backer: Anita Dunn, former White House Communications Director for President Barack Obama and current Principal of SKDKnickerbocker, a public relations firm with offices in Washington, D.C.; New York City and Albany.

SKDK - as covered here on multiple occasions by DeSmogBlog - does PR for Transcanada, the company behind the controversial Keystone XL tar sands export pipeline. Transcanada has paid SKDK - and by extension, Dunn - to place ads in strategic television and radio markets in the Washington, D.C. area. 

America imports millions of barrels of oil from the Middle East every week,” a narrator says in an ominous tone in the most recent ad, as images of violent protests in the Middle East blare across the screen. “But we don’t have to.”

The T.V. ad then switches to serene music and landscape views with pipeline stretched across it, alluding to “ethical oil” coming from Canada if the northern half of Transcanada's Keystone XL pipeline is approved by both the U.S. State Department and President Barack Obama.

The radio ad - also singing the “ethical oil” tune - claims that building the northern half of the Keystone XL will create “over 40,000 good American jobs.” Independent studies point to it creating 35 full-time jobs and 3,950 temporary construction jobs

The New York Times explained that Transcanada paid Dunn and SKDK to place the “ethical oil“-style ad “to reach power players in Washington’s media market.”

Wed, 2013-09-11 12:45Steve Horn
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Breaking: First Marcellus Fracked Gas Export Permit Approved by Energy Dept

The U.S. Department of Energy (DOE) has granted the first ever LNG export permit license to Dominion Resources, Inc. to export gas obtained from the controversial hydraulic fracturing (“fracking”) process in the Marcellus Shale basin.  

It's the fourth ever export terminal approved by the DOE, with the three others along the Gulf Coast: Cheniere's Sabine Pass LNG, Freeport LNG (50-percent owned by ConocoPhillips) and Lake Charles Exports, LLC

Located in Lusby, Maryland, the Dominion Cove Point LNG terminal will be a key regional hub to take gas fracked from one of the most prolific shale basins in the world - the Marcellus - and ship it to global markets, with shale gas exports a key geopolitical bargaining chip with Russia, the biggest producer of conventional gas in the world.

Dominion owns not only Cove Point, but also the pipeline infrastructure set to feed the terminal.

“Dominion…owns both the existing Cove Point LNG Terminal and the 88-mile Cove Point pipeline,” explained industry publication LNG Global. “Dominion Cove Point…stated in their application that natural gas will be delivered to the Cove Point Pipeline from the interstate pipeline grid, thereby allowing gas to be sourced broadly.”

DOE handed Dominion a permit lasting a generation.  

Fri, 2013-08-16 10:51Steve Horn
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Warren Buffett Buys Over $500 Million of Suncor Tar Sands Stock, Latest in "Dirty Deeds Done Dirt Cheap"

Warren Buffett - the fourth richest man on the planet and major campaign contributor to President Barack Obama in 2008 and 2012 - may soon get a whole lot richer.

That's because he just bought over half a billion bucks worth of Suncor Energy stock: $524 million in the second quarter of 2013, to be precise, according to Securities and Exchange Commission filings. Suncor is a major producer and marketer of tar sands via its wholly owned subsidiary Petro-Canada (formerly Sunoco) and this latest development follows a trend of Buffett enriching himself through dirty investments and deal-making. 

So far in 2013, Suncor (formerly Sun Oil Company) has produced 328,000 barrels per day of tar sands crude.

Though he receives far less negative press than the Koch Brothers, Buffett's no deep green ecologist. Not in the slightest. 

Referred to as one of 17 “Climate Killers” by Rolling Stone's Tim Dickinson in a January 2010 story, Buffett owns the behemoth holding company, Berkshire Hathway. It's through Berkshire that he's making a killing - while simultaneously killing the ecosystem - through one of its most profitable wholly-owned assets: Burlington Northern Santa Fe (BNSF).

Buffett purchased BNSF for $26 billion and was “the largest acquisition of Buffett's storied career,” Dickinson wrote.

BNSF hauls around frac sand for the controversial horizontal oil and gas drilling process known as “fracking.” The rail company also moves fracked oil from North Dakota's Bakken Shale basin, tar sands logistical equipment and tar sands crude itself and tons of coal. And not only does Buffett's BNSF haul around ungodly amounts of coal, he actually owns coal-burning utility companies, too.

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