oilsands

'Woe is Us': Oil Industry a Hot Mess After NDP Alberta Victory

While Jim Prentice and his Progressive Conservative cadre lick their wounds after last night’s landslide victory by the New Democratic Party and leader Rachel Notley, punditry about the oil industry’s place in the transformed province is in full force.

Even before the results were in, Canadians were being warned new leadership in Canada’s oilpatch will mean very scary things for the economy: fleeing investors, abandoned projects, market uncertainty.

Now that the victory bells have rung, the hand-wringing has leveled up.

The NDP win is “completely devastating,” for the energy industry, Rafi Tahmazian, fund manager for Canoe Financial LP, told Bloomberg.

The oil patch will pack up and leave,” Licia Corbella, editor of the Calgary Herald’s editorial page, tweeted. “Woe is us.”

Yet many other onlookers are saying fresh leadership in Alberta could bring long-overdue policy changes that not only benefit a broader cross-section of society, but industry itself, by remedying systemic imbalances that have granted an unhealthy amount of power to oil interests for far too long.

Has Stephen Harper Helped or Hindered The Oil Industry?

At an estimated 2,700 litres, the bunker fuel spill in English Bay was relatively small — yet the stakes of that spill couldn’t be much higher.

With Enbridge and Kinder Morgan both hoping to build oil pipelines to B.C., which would significantly increase oil tanker traffic in the province’s inside coastal waters, a dramatically mishandled marine oil spill raises all sorts of questions — questions the federal government does not appear well-positioned to answer, despite its aggressive push for West Coast oil exports.

Obviously, from the oil industry’s perspective, you couldn’t have picked a worse place to have an oil spill,” Jim Stanford, economist at Unifor and founder of the Progressive Economics Forum, told DeSmog Canada.

While the federal government insisted its response was “world-class,” a former commander of the shuttered Kits Coast Guard station blamed the six-hour delay in even deploying a boom to contain the oil on the closure of that station in 2013 — a move that is reported to have saved the federal government at estimated $700,000 a year.

The English Bay spill, beyond being a systemic failure, has been a total PR disaster.

New Report Warns of West Coast Tar Sands Oil Invasion

The West Coast of the United States and Canada is facing an imminent tar sands oil invasion, according to a new report from the Natural Resources Defense Council (NRDC).

“The West Coast is about to fall victim to a tar sands invasion, unless our leaders choose to protect the health and safety of our communities and say no to Big Oil,” said Anthony Swift, deputy director of NRDC's Canada Project. “At a time when the nation is moving toward a clean energy future, there is no reason to welcome the dirtiest oil on the planet into our communities.”

While the West Coast is not currently the destination for much tar sands oil, the area’s heavy oil refining capacity and deepwater port access make it a likely destination for large amounts of Canadian tar sands oil in the future.

The Canadian Association of Petroleum Producers (CAPP) forecasts that tar sands supply will increase from 2.4 million barrels per day (bpd) in 2013 to 6.2 million bpd by 2030. To achieve those volumes, a significant portion of that oil would have to go to the West Coast by a combination of pipelines, rail and tanker.

Wolves Scapegoated While Alberta Government Sells Off Endangered Caribou Habitat

Culling Alberta’s wolves without prioritizing caribou habitat protection and restoration is like “shoveling sand,” according to Mark Hebblewhite, associate professor of ungulate habitat biology at the University of Montana.

Hebblewhite says the Alberta government is sponsoring a wolf cull without doing the one thing that could possibly scientifically justify it: conserving and restoring critical caribou habitat.

That’s the tragedy here: the Alberta government blew the opportunity to do the right thing,” he said.

It’s all shoveling sand without real commitment to habitat conservation.”

Pipeline Industry Promises to Review Disclosure Rules After Kinder Morgan Secrecy Scandal

pipeline spill Jimmy Jeong

The Canadian Energy Pipeline Association (CEPA) is working hard to undo damage caused by pipeline company Kinder Morgan’s refusal to release oil spill response plans in British Columbia. The company's lack of disclosure angered the province of B.C., especially when it was revealed that Kinder Morgan released detailed spill response plans in Washington State for portions of the pipeline that extend across the border.

The pipeline association recently announced it would form a task force to address the issue, hoping to waylay growing public concerns by developing “guiding principles” for disclosure.

A number of our members have faced significant public pressure to disclose all information contained in emergency response plans. The CEPA task force will work to support that by establishing clear principles and guidelines that seek to find the right balance between the public’s right to know, the privacy of personal information and the security considerations also required for public safety,” Jim Donihee, chief operating officer with CEPA, said.

DeSmogCAST 10: California Fracking Waste, Keystone Climate Impacts and Energy East Pipeline

In this episode of DeSmogCAST our team discusses an ongoing investigation into hundreds of aquifers in California that may have been contaminated with fracking waste. 
 
We also discuss a letter submitted by the U.S. Environmental Protection Agency (EPA) to the State Department which gives new weight to concerns the proposed $8 billion Keystone XL pipeline, destined to carry crude from the Alberta oilsands to export facilities along the Gulf of Mexico, will have significant climate impacts.
 
Finally we discuss the Energy East pipeline, a massive project currently proposed by TransCanada, the same company behind Keystone. 

Low Oil Prices, High Oilsands Emissions Should Influence Keystone XL Decision: EPA

tar sands, oilsands, kris krug

A letter submitted by the U.S. Environmental Protection Agency (EPA) to the State Department gives new weight to concerns the proposed $8 billion Keystone XL pipeline, destined to carry crude from the Alberta oilsands to export facilities along the Gulf of Mexico, will have significant climate impacts.

The EPA letter suggests existing analyses – which downplay the importance of greenhouse gas emissions associated with the project – are out of date and require revision in light of low global oil prices.

Due to the plummeting of oil prices and related market changes “it is important to revisit [the] conclusions” of previous reports, EPA told the State Department.

Given recent large declines in oil prices and the uncertainty of oil price projections, the additional low prices scenario in the (State report) should be given additional weight during decision making, due to the potential implications of lower oil prices on project impacts, especially greenhouse gas emissions.”

The State Department is due to release a revised analysis of the Keystone XL project and is currently gathering comments from the EPA and other agencies.

DeSmogCAST 8: Oilsands Tailings Ponds, UK Drilling Imperative and Skeptics vs. Deniers

DeSmogCAST

In today's January 15, 2015 episode DeSmogCAST host Farron Cousins joins DeSmoggers Carol Linnitt, Kyla Mandel, and Mike Gaworecki to discuss Canada's efforts to prevent a NAFTA-led investigation into the management of Alberta's oilsands tailings ponds.

We also discuss a clause in the UK's new Infrastructure Bill that mandates efforts to “maximize economic recovery of UK petroleum” and what that means for the nation's climate policy.

Lastly we discuss recent developments in the denier/skeptics debate and a recent open letter to media, calling on journalists to reserve the favourable term 'skeptic' for those engaged in truly scientific critical investigation.

DeSmogCAST 7: Obama's Keystone Veto, U.S. Oil Exports and the World's Unburnable Carbon

In this episode of DeSmogCAST our team discusses Obama's recent promise to veto legislation put forward by a Republican-led Congress to expedite construction of the Keystone XL pipeline. While the fate of Keystone remains uncertain, the Obama Administration made changes in the final days of 2014 that now allows for the export of U.S. crude oil. As Justin Mikulka reports, the change doesn't lie in a newly passed bill but rather in a language game used to mask the difference between crude oil and condensate

Finally we take a look at a new study recently published in Nature that analyzes the globe's total carbon reserves and pinpoints those that must remain unburned if we are to stay within the 2 degrees Celsius warming limit recommended by scientists and policy makers. That study highlights the Canadian oilsands and almost all coal reserves in the U.S. as carbon deposits that must remain in the ground in a carbon-constrained future.

White House Confirms Obama Will Veto TransCanada's Keystone XL Pipeline

The White House confirmed today that President Obama will veto Congressional legislation designed to greenlight construction of the Keystone XL pipeline, the contentious project first proposed six years ago to carry more than 800,000 barrels per day of Canadian oilsands crude from Alberta to refineries and export facilities along the Gulf of Mexico.

Despite strong indications of support in Congress, the Obama Administration has already indicated it will veto the bill to expedite approval of the $8 billion project if approved. A similar bill was blocked by Democrats in the Senate in November.

If this bill passes this Congress the president won’t sign it either,” Josh Earnest, White House press secretary, said. Obama rejected TransCanada's application to build the pipeline in 2012, suggesting congressional Republicans had set a “rushed and arbitrary deadline” for the project's approval.

The bill, proposed by Republican Senator John Hoeven from North Dakota and Democratic Senator Joe Manchin from West Virginia, will be debated in a Senate Energy and Natural Resources Committee hearing Wednesday with the panel set to vote on the project Thursday.

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