Keystone XL

Thu, 2013-04-18 11:05Ben Jervey
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Yet More Proof That Keystone XL Won't Reduce Gas Prices

There are four days left to submit a public comment to the State Department on the Keystone XL pipeline. As we’ve reported time and time again here on DeSmogBlog, the proposed Keystone XL tar sands pipeline would not improve America’s energy security as proponents of the pipeline insist. Nor would completion of the pipeline reduce gas prices here in America, another common claim.

Over a year ago, when the State Department was turning down TransCanada’s first bid, we took a look at why and how Keystone XL wouldn’t reduce gas prices here in the U.S.

This week, Public Citizen released a report that piles on a whole lot more evidence to support this fact. In fact, it makes a rock solid economic case that construction of the pipeline would almost certainly result in an increase in gas prices in the American Midwest. An increase

For the report, titled “America Can’t Afford the Keystone Pipeline” (PDF download here), Public Citizen analyzed an abundance of data and found that average U.S. gas prices over the past year would have been as much as 3.5-percent lower had there not been any exports of oil. Because Keystone XL would primarily be an export pipeline (as we’ve reported again and again, and as Canadian Energy Minister Ken Hughes has recently admitted), all evidence points to the fact that construction of the pipeline would actually increase gas prices.

Here’s a quick rundown of the report’s main takeaways.

Sat, 2013-04-13 05:30Steve Horn
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Arkansas Hires Notorious Private Contractor To Clean Up Mayflower Tar Sands Spill, Same Firm Also Contracted For KXL

Arkansas' Attorney General Dustin McDaniel has contracted out the “independent analysis of the cleanup” of the ExxonMobil Pegasus tar sands pipeline spill to Witt O'Brien's, a firm with a history of oil spill cover-ups, a DeSmogBlog investigation reveals. 

At his April 10 press conference about the Mayflower spill response, AG McDaniel confirmed that Exxon had turned over 12,500 pages of documents to his office resulting from a subpoena related to Exxon's response to the March 29 Pegasus disaster. A 22-foot gash in the 65-year-old pipeline spewed over 500,000 gallons of tar sands dilbit through the streets of Mayflower, AR

McDaniel also provided the media with a presser explaining that his office had “retained the assistance of Witt O’Brien’s, a firm whose experts will immediately begin an independent analysis of the cleanup process.” 

Witt O'Brien's describes itself as a “global leader in preparedness, crisis management and disaster response and recovery with the depth of experience and capability to provide services across the crisis and disaster life cycle.”

But the firm's actual performance record isn't quite so glowing. O'Brien's has had its hands in the botched clean-up efforts of almost every high-profile oil spill disaster in recent U.S. history, including the Exxon Valdez spill, the BP Deepwater Horizon spill, the Enbridge tar sands pipeline spill into the Kalamazoo River, and Hurricane Sandy. 

Most troubling of all, Witt O'Brien's won a “$300k+ contract to develop a Canadian-US compliant Oil Spill Emergency Response Plan for TransCanada’s Keystone Oil Pipeline Project” in Aug. 2008.

Thus, if the Keystone XL (KXL) pipeline inevitably suffered a major spill, Witt O'Brien's would presumably handle the cleanup. That should worry everyone along the proposed KXL route.

Wed, 2013-04-10 13:23Steve Horn
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Stephen Colbert Highlights DeSmog's Exxon Arkansas Tar Sands Spill No Fly Zone Investigation

The Colbert Report last night featured DeSmogBlog's investigative findings on the U.S. Federal Aviation Administration (FAA) delegating authority over its “no-fly zone” above the Mayflower tar sands spill site to ExxonMobil “aviation advisor,” Tom Suhrhoff.

Stephen parodied Exxon's secrecy at the site of ExxonMobil's Pegasus tar sands pipeline spill, honing in on the fact that the “private empire” threatened a reporter at Inside Climate News with arrest when she sought to ask a spokesperson questions at the spill relief command center headed by Exxon.  

On March 29, Exxon's Pegasus pipeline spilled up to an estimated 7,000 barrels of tar sands diluted bitumen (“dilbit”) into Mayflower's neighborhoods and surrounding wetlands, causing the evacuation of 22 homesExxon's poor handling of the spill clean-up was also featured in the April 8 edition of “The Rachel Maddow Show.”

Check out “The Colbert Report” segment:

Tue, 2013-04-09 05:00Steve Horn
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Ties That Bind: Ernest Moniz, Keystone XL Contractor, American Petroleum Institute and Fracked Gas Exports

Congress will review the Obama Administration's nomination of Ernest Moniz for Secretary of the Department of Energy (DOE) in hearings that start today, April 9.

Moniz has come under fire for his outspoken support of nuclear power, hydraulic fracturing (“fracking”) for shale gas and the overarching “all-of-the-above” energy policy advocated by both President Barack Obama and his Republican opponent in the last election, Mitt Romney

Watchdogs have also discovered that Moniz has worked as a long-time corporate consultant for BP. He has also received the “frackademic” label for his time spent at Massachusetts Institute of Technology (MIT). At his MIT job, Moniz regularly accepted millions of dollars from the oil and gas industry to sponsor studies under the auspices of The MIT Energy Initiative, which has received over $145 million over its seven-year history from the oil and gas industry. 

MIT's “The Future of Natural Gas” report, covered by many mainstream media outlets without any effort to question who bankrolled it, was funded chiefly by the American Clean Skies Foundation, a front group for the shale gas industry's number two domestic producer, Chesapeake Energy. That report concluded that gas is a “bridge fuel” for a renewable energy future and said that shale gas exports were in the best economic interests of the United States, which should “not erect barriers to natural gas imports and exports.” 

As first revealed on DeSmogBlog, Moniz is also on the Board of Directors of ICF International, one of the three corporate consulting firms tasked to perform the Supplemental Environmental Impact Study (SEIS) for TransCanada's Keystone XL (KXL) tar sands pipeline. KXL is slated to bring tar sands - also known as “diluted bitumen,” or “dilbit” - from Alberta to Port Arthur, TX, where it will be sold to the highest bidder on the global export market

Moniz earned over $300,000 in financial compensation in his two years sitting on the Board at ICF, plus whatever money his 10,000+ shares of ICF stock have earned him. 

Thu, 2013-04-04 02:28Brendan DeMelle
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Alberta Govt Hires Bipartisan Team of Lobbyists to Woo Washington on Risky KXL Tar Sands Pipeline

The Alberta government has hired a team of “foreign special interest groups“ to lobby the U.S. Congress and the White House in a desperate attempt to garner support for the risky Keystone XL pipeline that would carry (and certainly spilltar sands crude through the heartland of America to the Gulf Coast and on to export markets overseas. Given the Exxon tar sands spill in Arkansas, dilbit train derailment in Minnesota and other tar sands disasters in recent weeks, I suppose Alberta figured it needs all the help it can muster.

Politico reports that Alberta is spending $200,000 over the next few months to retain the lobbying and PR services of Rasky Baerlein Strategic Communications and Mehlman Vogel Castagnetti. 

Politico quotes a filing from the Mehlman Vogel Castagnetti firm that says it will provide “strategic consulting in educating U.S. government officials about the Keystone XL pipeline and Alberta's energy resources,” while the Rasky firm will “assist in communicating priority issues and promoting the principal's energy and environmental positions to the executive and legislative branches of government as well as other U.S. institutions.”

While the ultimate fate of the Keystone XL pipeline rests squarely in the hands of President Barack Obama and Secretary of State John Kerry, Alberta is ramping up its all-out Washington blitz to win support for the controversial proposal in Congress and anywhere on the Hill their lobbyists can get in the door. 

Here is a brief look at the specific lobbyists retained to curry favor on behalf of the Alberta government. Note that at least two have experience working on the presidential campaigns of Barack Obama and John Kerry.

Wed, 2013-04-03 05:00Steve Horn
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State Dept. Keystone XL Contractor ERM Also Green-Lighted Explosive, Faulty Peruvian Pipeline Project

Environmental Resources Management (ERM), the State Department consulting firm that claims TransCanada's proposed Keystone XL tar sands pipeline proposal is safe and sound, previously provided a similarly rosy approval for the expansion of a Peruvian natural gas project that has since racked up a disastrous track record. 

On March 1, the U.S. State Department declared KXL's proposed northern half environmentally safe and sound in its draft Supplemental Environmental Impact Statement (SEIS), part of TransCanada's Presidential Permit application for the proposed tar sands pipeline. 

KXL is a 1,179-mile tube set to blast 800,000 barrels of tar sands crude a day - also known as diluted bitumen or “dilbit” - from Alberta down to Port Arthur, TX. After it reaches Port Arthur, the crude will be sold to the highest bidder on the global export market. “XL” is shorthand for “expansion line,” named such because it would expand the marketability of tar sands crude to foreign buyers.

Because the Obama State Dept. has the final say on the project due to its crossing the Canada-U.S. border, clearing State's EIS hurdle was crucial for TransCanada. Just days later, though, watchdogs revealed that State had outsourced the EIS out to oil and gas industry-tied consulting firms hand-picked by TransCanada itself

One of those firms - Environmental Resources Management (ERM) Group - has historical ties to Big Tobacco; published a study declaring “safe” a Caspian Sea pipeline that ended up spilling 70,000 barrels of oil; and has a client list that includes Koch Industries, ConocoPhilips and ExxonMobil - corporations all with skin in the tar sands game. ExxonMobil's Pegasus Pipeline recently spilled 189,000 gallons of tar sands crude into a Mayflower, Arkansas neighborhood. 

An examination into the historical annals shows that ERM Group also green-lighted a major pipeline and liquefied natural gas (LNG) expansion project akin to KXL in Peru. The project in a nutshell: a 253-mile-long, 34-inch pipeline carries gas obtained from Peru's Camisea field - located partly in the Amazon rainforest with the pipeline snaking through the Andes Mountains - to Peru's west coast. From there, it's exported primarily to the U.S. and Mexico.

Camisea - described by Amazon Watch as the “most damaging project in the Amazon Basin“ - has created a whole host of problems. These include displacing indigenous people, clear-cutting forests that serve as a key global carbon sink to make way for the project, and major pipeline spills, to name a few.

Tue, 2013-04-02 15:30Carol Linnitt
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Because 'Bitumen is not Oil,' Pipelines Carrying Tar Sands Crude Don't Pay into US Oil Spill Fund

As Think Progress has just reported, a bizarre technicality allowed Exxon Mobil to avoid paying into the federal oil spill fund responsible for cleanup after the company's Pegasus pipeline released 12,000 barrels of tar sands oil and water into the town of Mayflower, Arkansas.

According to a thirty-year-old law in the US, diluted bitumen coming from the Alberta tar sands is not classified as oil, meaning pipeline operators planning to transport the corrosive substance across the US - with proposed pipelines like the Keystone XL - are exempt from paying into the federal Oil Spill Liability Trust Fund.

News that Exxon was spared from contributing the 8-cents-per-barrel fee to the clean-up fund added insult to injury this week as cleanup crews discovered oil-soaked ducks covered in “low-quality Wabasca Heavy Crude from Alberta.” Yesterday officials said 10 live ducks were found covered in oil, as well as a number of oiled ducks already deceased.

Mon, 2013-04-01 18:46Ben Jervey
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Everything You Need to Know About the Exxon Pegasus Tar Sands Spill [Updated]

In Greek legend, everytime the winged horse Pegasus struck his hoof to the Earth, an “inspiring spring burst forth.” Unfortunately for residents in Mayflower, Arkansas, when the Pegasus pipeline ruptured, the only thing bursting forth was a nasty tar sands oil spill.

On Friday afternoon, the Pegasus pipeline operated by Exxon Mobil ruptured, flooding an Arkansas neighborhood with thousands of barrels of Wabasca Heavy crude from the Athabasca tar sands in Alberta. 

Here’s what you need to know about the spill, with links to some reporting on this awful event, which at very least ruined the holiday weekends of many Mayflower, Arkansas residents, many of whom didn’t even know the pipeline was running through their neighborhood.

Thu, 2013-03-28 10:31Ben Jervey
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Oil On The Tracks: Canadian Pacific Rail Spills 30,000 Gallons of Crude in Minnesota

Who ever saw this coming? Yesterday, a Canadian Pacific train carrying crude oil jumped the tracks in Parkers Prarie, Minnesota and immediately spilled 20,000 to 30,000 gallons of crude onto the snowy, frozen fields.

Fourteen cars of the 94-car, mile-long train (stop and picture that for a moment) left the tracks during an emergency braking maneuver, the cause of which is yet unclear. The National Transportation Safety Board is conducting an immediate review.

According to Reuters, “the company did not comment as to what kind of crude the train was carrying,” and Canadian Pacific spokesman Ed Greenberg said he “did not know if the oil that spilled was tar sands oil.”

Tue, 2013-03-26 05:30Steve Horn
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State Department's Keystone XL Contractor ERM Green-Lighted BP's Explosive Caspian Pipeline That Failed To Live Up to Jobs Hype

The more things change, the more they stay the same. 

Almost 11 years ago in June 2002, Environmental Resources Management (ERM) Group declared the controversial 1,300 mile-long Baku–Tbilisi–Ceyhan (BTC) Pipeline environmentally and socio-economically sound, a tube which brings oil and gas produced in the Caspian Sea to the export market.

On March 1, it said the same of the proposed 1,179 mile-long TransCanada Keystone XL (KXL) Pipeline on behalf of an Obama State Department that has the final say on whether the northern segment of the KXL pipeline becomes a reality. KXL would carry diluted bitumen or “dilbit” from the Alberta tar sands down to Port Arthur, Texas, after which it will be exported to the global market

Environmental Resources Management Group, a recent DeSmogBlog investigation revealed, has historical ties to Big Tobacco and its clients include ExxonMobil, ConocoPhillips and Koch IndustriesMother Jones also revealed that ERM - the firm the State Dept. allowed TransCanada to choose on its behalf - has a key personnel tie to TransCanada

Unexamined thus far in the KXL scandal is ERM's past green-light report on the BTC Pipeline - hailed as the “Contract of the Century” - which has yet to be put into proper perspective.

ERM is a key player in what PLATFORM London describes as the “Carbon Web,” shorthand for “the network of relationships between oil and gas companies and the government departments, regulators, cultural institutions, banks and other institutions that surround them.”  

In the short time it has been on-line, the geostrategically important BTC pipeline - coined the “New Silk Road” by The Financial Times - has proven environmentally volatile. A full review of the costs and consequences of ERM's penchant for rubber-stamping troubling oil and gas infrastructure is in order.

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