tar sands

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, 2014-02-04 10:13Kai Nagata
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Is Keystone in the National Interest? Of Canada, That Is?

keystone xl

It's up to the U.S. President to decide whether the cross-border leg of the Keystone XL pipeline is in the national interest of his country. Ultimately, his criteria are less scientific than political. Does he stand to lose more by alienating those who support or oppose the project?

With midterm elections coming up in November, Obama doesn't have time to worry about Canada's hurt feelings. Our economy, environment and opinion are very low on his list of priorities.

But the strongest pro-Keystone arguments on the American side raise an uncomfortable question: if the pipeline is approved, who benefits a little bit — and who benefits a lot? In other words, who gets the short end of the stick?

Wed, 2014-01-29 11:32Carol Linnitt
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Andrew Nikiforuk: Canada's Petrostate Has "Dramatically Diminished Our International Reputation"

“Alberta is very much a petrostate,” says journalist and author Andrew Nikiforuk. “It gets about 30 per cent of its income from the oil and gas industry. So as a consequence, the government over time has tended more to represent this resource and the industry that produces it, than its citizens. This is very typical of a petrostate.”

The flow of money, he says, is at the heart of the issue. “When governments run on petro dollars or petro revenue instead of taxes then they kind of sever the link between taxation and representation, and if you're not being taxed then you're not being represented. And that’s what happens in petrostates and as a consequence they come to represent the oil and gas industry. Albert is a classic example of this kind of relationship.”

In this interview with DeSmog, Nikiforuk explains the basics of his petrostate thesis and asks why Canada, unlike any other democratic nation, hasn't had a meaningful public debate about the Alberta oilsands and how they've come to shape the Canadian landscape, physically as much as politically.

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.

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