tar sands

Fri, 2014-01-24 08:58Emma Gilchrist
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Keystone XL Could Boost Global Oil Consumption By 500K Barrels A Day

A new study from the Stockholm Environment Institute (SEI) focuses on a greenhouse gas impact of the Keystone XL pipeline that hasn’t received much attention: how the pipeline could affect the global oil market by increasing supply, decreasing prices and therefore driving up global oil consumption.

Even if those effects are small in global terms, they could be significant in relationship to Keystone XL and U.S. climate policy, argue Peter Erickson and Michael Lazarus, senior scientists in SEI’s U.S. Center, in a new paper, Greenhouse gas emissions implications of the Keystone XL pipeline.

The more suppliers there are in the market for oil, the more they compete and that drives down prices for consumers,” Erickson said.

Climate policy and analysis often focuses on energy production and consumption, but rarely considers how energy infrastructure might shape energy use and the resulting greenhouse gas emissions.

The Keystone XL pipeline proposal to connect Canadian tar sands production with the Gulf of Mexico’s refineries and ports have brought these questions to light. U.S. President Barack Obama has said he will only approve Keystone XL if it “does not significantly exacerbate the problem of carbon pollution.”

To gauge the pipeline’s potential impact, Erickson and Lazarus built a supply-and-demand model using publicly available supply curves and peer-reviewed demand elasticities (the extent to which changes in oil consumption respond to changes in oil prices).

They examined three possibilities — 1) That the Keystone XL permit is rejected, and the same amount of oil would reach the market by other means; 2) if half of the oil reaches the market anyway; and 3) that none reaches the market.

For the last two cases, the researchers found the pipeline’s impact on global oil prices, though modest (less than one percent), would be enough to increase global oil consumption by hundreds of thousands of barrels per day.

Wed, 2014-01-22 11:53Steve Horn
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State Dept's Keystone XL Contractor, ERM Group, Also OK'd Controversial Pebble Mine in Alaska

A DeSmogBlog investigation has revealed Environmental Resources Management Inc. (ERM Group) — the contractor performing the U.S. State Department's environmental review for the northern half of TransCanada's Keystone XL tar sands pipeline — gave the greenlight to Alaska's controversial Pebble Mine proposal in June 2013.

The proposed Pebble Mine, located in Bristol Bay in southwest Alaska, contains mineable gold and copper. It's also a major hub for fishing and the seafood industry, leading the Center for American Progress to call the battle over Pebble Mine a “resource war.”

“Bristol Bay…is home to the world’s largest commercial sockeye salmon fishery,” explains a November 2013 EarthWorks blog post. “The devastation caused by a massive open pit mine would linger in perpetuity affecting not just Bristol Bay, but the commercial fishing industry everywhere in the Pacific Northwest.”

Wed, 2014-01-15 11:11Erin Flegg
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Michigan Judge Dismisses Charges Against Activist Who Protested Inside Enbridge's 6B Pipeline

Chris Wahmhoff

When Kalamazoo activist Chris Wahmhoff walked up to the fourth floor of the Calhoun County Circuit Court on Monday and checked the docket, he found his case sandwiched between three other cases also involving Enbridge — a telling sign of the times.
   
When Judge James Kingsley started speaking in the courtroom, Wahmhoff thought all was lost. He hung his head and waited, as the five minutes the judge spoke dragged on. 

Then there was just thing magical moment of him saying ‘but,’ ” Wahmhoff says. He lifted his head to hear the judge say he would quash the motion. Wahmhoff immediately jumped from his seat and cheered, accompanied by a room full of supporters.

Then we were very heavily scolded by the judge, who said they were going to arrest every one of us,” he said with a laugh.

Mon, 2014-01-13 10:49Carol Linnitt
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Legal Expert: "Inherent Challenge" in Having Enbridge Lobbyist Serve as Spy Watchdog

Chuck Strahl, CSIS, SIRC, Enbridge, Northern Gateway, DeSmog Canada

Recent revelations that Canada’s top spy watchdog Chuck Strahl is also a paid lobbyist for Enbridge and Northern Gateway Pipelines have Canadians in a rightful tizzy. The implications are grim, especially for citizens already concerned with federal overreach in the surveillance of environmental groups opposing the Enbridge's Northern Gateway oil pipeline and tanker proposal for B.C.'s coast.

Strahl is the federally appointed chairman of the Security Intelligence Review Committee (SIRC), an independent and non-partisan oversight agency designed to keep an eye on all activities of the Canadian Security Intelligence Service (CSIS).

In November the Vancouver Observer released internal documents showing the federal government, the RCMP and CSIS had been working closely with the energy industry to address the issue of pipeline opposition and other barriers to energy development. Cross-sector responses between government and industry included the monitoring of environmental groups.

Lorne Sossin, dean of the Osgoode Law School at York University and specialist in constitutional law, regulation of professions and public policy, told DeSmog while Strahl may not be using his role as CSIS watchdog to advance the interests of Enbridge, the overlap of roles poses some threat to his perceived ability to perform as an independent adjudicator.

Sat, 2013-12-21 12:23Erika Thorkelson
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Port City Secures Six-Month Moratorium on OilSands Exports

South Portland, home to the Portland Montreal Pipe Line

The city of South Portland, Maine banned the export of oilsands crude from local port facilities this week. 

Portland, the suburban community of 25,000 is the Atlantic terminal of the Portland Montreal Pipe Line, which currently carries millions of barrels of oil from the coast to refineries in Montreal. The city council is currently seeking to draft a law that would ban Portland Pipe Line Corp. from using Portland facilities to move western crude to the eastern seaboard. 

We applaud the City Council for their strong leadership in standing up to the oil industry,” said Roberta Zuckerman of Protect South Portland, a citizens group, told the Financial Post. “But now the City Council must turn the temporary ban on shipping tar sands out of our city into permanent legal protections.”

Wed, 2013-12-18 12:00Steve Horn
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Keystone XL Fork in the Road: TransCanada's Houston Lateral Pipeline

Only Barack Obama knows the fate of the northern half of TransCanada's Keystone XL tar sands pipeline.  But in the meantime, TransCanada is preparing the southern half of the line to open for commercial operations on January 22.

And there's a fork in that half of the pipeline that's largely flown under the radar: TransCanada's Houston Lateral Pipeline, which serves as a literal fork in the road of the southern half of Keystone XL's route to Gulf Coast refineries.

Rebranded the “Gulf Coast Pipeline” by TransCanada, the 485-mile southern half of Keystone XL brings a blend of Alberta's tar sands crude, along with oil obtained via hydraulic fracturing (“fracking”) from North Dakota's Bakken Shale basin, to refineries in Port Arthur, Texas. This area has been coined a “sacrifice zone” by investigative journalist Ted Genoways, describing the impacts on local communities as the tar sands crude is refined mainly for export markets.

But not all tar sands and fracked oil roads lead to Port Arthur. That's where the Houston Lateral comes into play. A pipeline oriented westward from Liberty County, TX rather than eastward to Port Arthur, Houston Lateral ushers crude oil to Houston's refinery row

“The 48-mile (77-kilometre) Houston Lateral Project is an additional project under development to transport oil to refineries in the Houston, TX marketplace,” TransCanada's website explains. “Upon completion, the Gulf Coast Project and the Houston Lateral Project will become an integrated component of the Keystone Pipeline System.”

Thu, 2013-12-12 14:45Steve Horn
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Federal Pipeline Safety Agency Approves Startup of Keystone XL Southern Half

DeSmogBlog has learned that TransCanada cleared the final hurdle for the southern half of its Keystone XL tar sands pipeline, receiving a green light last week from the Pipeline and Hazardous Materials Safety Administration (PHMSA) following a review of several safety concerns.

TransCanada announced this week that it has begun injecting oil into the southern half of its Keystone XL pipeline in preparation for commercial operations.  

Leading up to PHMSA giving Keystone XL south the go-ahead to start up, Public Citizen raised several questions about the safety of the pipeline. 

Will TransCanada respond to greivances raised about dents, faulty welding, pipeline material designated “junk” and other issues raised in the consumer advocacy group's November investigation? And what about September 10 and September 26 warning letters obtained by Public Citizen raising similar concerns from PHMSA to TransCanada?

Both TransCanada and PHMSA have provided DeSmogBlog answers to these questions.

Rebranded the “Gulf Coast Pipeline Project” by TransCanada, the 485-mile Cushing, Oklahoma to Port Arthur, Texas Keystone XL southern half — approved via a March 2012 Executive Order from President Barack Obama — is set to open for business by mid- to late-January.

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).”

Mon, 2013-12-02 10:25Steve Horn
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Tar Sands' Next Frontier: Shipments on the Great Lakes

Great Lakes Tar Sands

The Great Lakes, drinking water source for over 40 million North Americans, could be the next target on tar sands marketers' bullseye according to a major new report out by the Chicago-based Alliance for the Great Lakes.

The 24-page report, “Oil and Water: Tar Sands Crude Shipping Meets the Great Lakes?unpacks a new looming threat to the Great Lakes in the form of barges transporting tar sands along the Great Lakes to targeted midwestern refinery markets. As the report suggests, it's a threat made worse by an accompanying “Wild West”-like regulatory framework.

“The prospect of tar sands shipping on the Great Lakes gives rise to fundamental social and economic questions about whether moving crude oil by vessel across the world’s single largest surface freshwater system is a venture this region wants to embrace, despite the known risks,” the report says early on.

Calumet Specialty Products Partners LP is one of the major corporations hedging its bets on moving tar sands along the Great Lakes — and oil obtained via hydraulic fracturing (“fracking”) from North Dakota's Bakken Shale basin — and may begin doing so as early as 2015.   

“[I]ndustry observers and consultants speculate this crude could travel from Wisconsin across Lake Superior to Lake Michigan, and on to refineries in Whiting, Ind., Lemont, Ill., and possibly Detroit, Mich. near Lake Erie,” the report details. “Other potential destinations include Sarnia, Ontario on Lake Huron, or even an East Coast refinery.”

As a recent GasBuddy.com article explained, BP's Whiting, Indiana refinery - capable of refining far more tar sands crude with its Modernization Project - will soon open for business.

“Sources say that BP's modernization of the company's 405,000-b/d Whiting, Ind., refinery is on schedule with all units now operating,” the article explained. “That includes a brand new 105,000-b/d coker that will eventually allow the plant to use about four times as much heavy sour Canadian crude compared with it had used previously.”

Thu, 2013-11-28 13:10Brendan DeMelle
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Tar Sands! It’s What’s For Dinner!

tar sands thanksgiving

This Thanksgiving, Americans can be thankful that Canadian tar sands crude isn’t flowing across the border through the Keystone XL to refineries and export facilities on the Gulf Coast.

Canada, which is home to the third largest deposit of oil on the planet, is looking to export the fuel source from U.S. soil, because Canadians won’t let industry ship it from their own shores. The Keystone XL pipeline, which would transport the dilbit concoction from Alberta, Canada down to Texas, is pending approval from the Obama Administration and will only be cleared for construction if it doesn’t exacerbate climate change (although the southern half of the pipeline has already been built).

Nextgen Climate Action, a project of the Next Generation, released this video on Keystone crude just in time for Thanksgiving to show just how…strange…an appetite for dirty crude really is.

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