pipelines

Sun, 2014-10-26 22:45Steve Horn
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Drilling Deeper: New Report Casts Doubt on Fracking Production Numbers

Post Carbon Institute has published a report and multiple related resources calling into question the production statistics touted by promoters of hydraulic fracturing (“fracking”)

By calculating the production numbers on a well-by-well basis for shale gas and tight oil fields throughout the U.S., Post Carbon concludes that the future of fracking is not nearly as bright as industry cheerleaders suggest. The report, “Drilling Deeper: A Reality Check on U.S. Government Forecasts for a Lasting Tight Oil & Shale Gas Boom,” authored by Post Carbon fellow J. David Hughes, updates an earlier report he authored for Post Carbon in 2012.

Hughes analyzed the production stats for seven tight oil basins and seven gas basins, which account for 88-percent and 89-percent of current shale gas production.

Among the key findings: 

-By 2040, production rates from the Bakken Shale and Eagle Ford Shale will be less than a tenth of that projected by the Energy Department. For the top three shale gas fields — the Marcellus Shale, Eagle Ford and Bakken — production rates from these plays will be about a third of the EIA forecast.

-The three year average well decline rates for the seven shale oil basins measured for the report range from an astounding 60-percent to 91-percent. That means over those three years, the amount of oil coming out of the wells decreases by that percentage. This translates to 43-percent to 64-percent of their estimated ultimate recovery dug out during the first three years of the well's existence.

-Four of the seven shale gas basins are already in terminal decline in terms of their well productivity: the Haynesville Shale, Fayetteville Shale, Woodford Shale and Barnett Shale.

-The three year average well decline rates for the seven shale gas basins measured for the report ranges between 74-percent to 82-percent. 

-The average annual decline rates in the seven shale gas basins examined equals between 23-percent and 49-percent. Translation: between one-quarter and one-half of all production in each basin must be replaced annually just to keep running at the same pace on the drilling treadmill and keep getting the same amount of gas out of the earth.

Tue, 2014-10-07 10:41Justin Mikulka
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‘Wild West’ Approach to Regulation in Bakken Shale Means Bomb Trains Continue to Roll

Wild west Bakken

Prepare yourself for a rare moment of honesty from the oil industry.

It happened on Sept. 23 at a hearing of the North Dakota Industrial Commission during a discussion on ways to make Bakken crude oil less flammable for transportation.

The flammable characteristics of our product are actually a big piece of why this product is so valuable. That is why we can make these very valuable products like gasoline and jet fuel,” said Tony Lucero of oil producer Enerplus.

So, there you have it: making Bakken crude safer to transport by rail via oil stabilization, which removes flammable natural gas liquids such as butane, means making it less valuable to the refineries.

This profit motive is at least part of the reason why the American Petroleum Institute has made it clear it will not accept mandatory oil stabilization as part of the new oil-by-rail regulations.

Tue, 2014-07-29 05:00Sharon Kelly
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EPA Internal Audit Finds Flawed Pipeline Oversight Adds $192 Million a Year to Gas Bills, Harms Climate

On Friday, the Environmental Protection Agency's internal watchdog, the inspector general released a scathing report on the agency's failure to control leaks from the nation's natural gas distribution system.

The report, titled “Improvements Needed in EPA Efforts to Address Methane Emissions From Natural Gas Distribution Pipelines,” describes a string of failures by the EPA to control leaks of one of the most potent greenhouse gases, methane, from the rapidly expanding natural gas pipeline industry.

“The EPA has placed little focus and attention on reducing methane emissions from pipelines in the natural gas distribution sector,” the report begins. “The EPA has a voluntary program to address methane leaks — Natural Gas STAR — but its efforts through this program have resulted in limited reductions of methane emissions from distribution pipelines.”

To date, the industry has faced little binding regulation on leaks, in part because the EPA assumes that pipeline companies will not allow the product they are attempting to bring to market to simply disappear. But the reality is that when gas is cheap and repairs are expensive, pipeline companies often put off repairs unless there's a threat of an explosion.

Under many state policies, pipeline companies would have to pay upfront costs for pipeline repairs — or they simply choose to pass the cost of lost gas from unrepaired leaks on to consumers, an issue that the audit faults the EPA for failing to take into account.

Nationwide, the Inspector General report concluded $192 million worth of natural gas was lost from pipelines in 2011 alone.

Tue, 2014-07-15 15:09Emma Gilchrist
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Decision on Kinder Morgan's Trans Mountain Oil Pipeline Delayed Until After Next Federal Election

Kinder Morgan pipeline protest

Canada's National Energy Board (NEB) announced today that it is stopping the clock on the review of Kinder Morgan’s Trans Mountain oil pipeline expansion due to the company’s new proposed corridor through Burnaby, B.C.— which will push a decision on the project back to after the 2015 federal election.

The board will take a seven-month timeout from its 15-month timeline between July 11, 2014, and Februrary 3, 2015, to allow Kinder Morgan time to file studies for its new corridor through Burnaby Mountain, according to a letter to intervenors sent today.

That pushes the board’s deadline to file its report on the project with cabinet back seven months from July 2, 2015, to Jan. 25, 2016.

The significant thing is that this decision now won’t be made until after the next federal election. It’ll be up to the next Prime Minister to make that call,” says Karen Campbell, staff lawyer with Ecojustice.

From a campaign perspective, it certainly gives some wind in the sails of those who want to make sure this isn’t a fait accompli before the next election,” she says.

Sat, 2014-06-21 13:41Guest
Guest's picture

David Suzuki: Northern Gateway Approval Flies in Face of Democracy and Global Warming

Enbridge Northern Gateway protest

This is a guest post by David Suzuki.

There was little doubt the federal government would approve the Enbridge Northern Gateway pipeline project, regardless of public opposition or evidence presented against it. The prime minister indicated he wanted the pipeline built before the Joint Review Panel hearings even began. Ad campaigns, opponents demonized as foreign-funded radicals, gutted environmental laws and new pipeline and tanker regulations designed in part to mollify the B.C. government made the federal position even more clear.

Canadian resource policy is becoming increasingly divorced from democracy. Two infamous omnibus bills eviscerated hard-won legislation protecting Canada's water and waterways and eased obstacles for the joint review process, which recommended approval of the $7.9-billion project, subject to 209 conditions. The government has now agreed to that recommendation.

The time-consuming hearings and numerous stipulations surely influenced the government's decision to restrict public participation in future reviews, making it difficult for people to voice concerns about projects such as Kinder Morgan's plan to twin and increase capacity of its Trans Mountain heavy oil pipeline from Alberta to Burnaby from 300,000 to 900,000 barrels a day, with a corresponding increase in tanker traffic in and out of Vancouver.

And to keep democracy out of fossil fuel industry expansion, the government switched decision-making from the independent National Energy Board to the prime minister’s cabinet.

Sun, 2014-03-16 06:00Ben Jervey
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The "Significance" Trap: New Economic Analysis Finds that Keystone XL Would Increase Tar Sands Production, Carbon Emissions

In its environmental assessment of the proposed Keystone XL pipeline, the U.S. State Department severely underestimated the project’s impact on oil production, and the resulting greenhouse gas emissions.

That’s according to a rigorous economic analysis published in a new report by the Carbon Tracker Initiative. Researchers found that, if constructed, the Keystone XL pipeline would increase global greenhouse gas emissions by roughly a whopping 5 gigatons over the course of its lifetime. For some perspective, that’s the equivalent of the annual emissions from 1,400 coal-fired power plants or 1 billion automobiles, according to the report’s authors.

As you may recall, in a speech last June at Georgetown University, President Obama explicitly stated that he would approve the pipeline “only if this project doesn’t significantly exacerbate the problem of carbon pollution.”

In its recent environmental assessment, the State Department’s suggested that the pipeline is “unlikely to significantly impact the rate of extraction in the oil sands,” thereby implying that it would pass President Obama’s stated climate test.

However, the Carbon Tracker report, called Keystone XL: The “Significance” Trap (pdf), proves otherwise.

Using the State Department’s own numbers, Carbon Tracker researchers determined that the Keystone XL pipeline, if constructed, would increase the rate of extraction of tar sands, to the tune of roughly 510,000 barrels per day of bitumen (or roughly 730,000 barrels per day of DilBit, after dilution to allow it to flow through the pipeline). As Carbon Tracker researchers put it, “There is over 510kbpd of bitumen production which would benefit from even the narrowest improvement of margins.”

Wed, 2014-02-26 15:03Ben Jervey
Ben Jervey's picture

WHITEWASH: State Dept Keystone XL Inspector General Report Clears Botched Handling of Environmental Resources Management Conflicts

The State Department's Office of the Inspector General (OIG) has finally weighed in on potential conflicts of interest in the environmental assessments of the proposed Keystone XL pipeline. Sort of.

The office just released its long-anticipated report, capping off an investigation on whether Environmental Resources Management, the contractor hired by TransCanada to conduct the environmental impact study, had too close a relationship with TransCanada, and whether it deliberately hid those ties in filings with the State Department. 

On first look, the inspector general report takes an extremely narrow view of the potential conflicts, but does declare that the department's procedures for dealing with conflicts of interest are weak and need to be improved. 
 

Specifically, from the OIG's findings:

  • OIG did find that the process for documenting the contractor selection process, including the conflict of interest review, can be improved.
  • OIG also found that the Department’s public disclosures concerning its conflict of interest review could be improved.

Finally, the Office of the Inspector General makes these specific recommendations:

  • OIG recommends that the Department’s Bureau of Oceans and International Environmental and Scientific Affairs, in coordination with the Office of the Legal Adviser, enhance its guidance to more fully articulate its selection and conflict of interest review processes.
  • OIG recommends that the Department explain in greater detail the definition of “organizational conflict of interest” relied upon by the Department.
  • OIG recommends that the Department specify in its guidance the documentation required in the contractor selection and conflict of interest processes and establish standard operating procedures to capture and retain this information.
  • OIG recommends that the Department enhance its guidance to integrate a process for public disclosure of

appropriate information.

Attention will now turn to the Government Accountability Office, which will begin an investigation on the State Department's environmental review process. Earlier this week, Representative Raúl Grijalva of Arizona requested a GAO review, suggesting that the Keystone XL environmental assessment has been corrupted by conflicts of interest. “Nothing should be glossed over; nothing should be ignored,” Grijalva said. “The questions that we posed to GAO had to do with the State Department process. And if this is a tainted process, I suggest the president at that point shouldn't trust that information,”

DeSmogBlog will take a closer look at all the details in the report and update this post throughout the evening. 

Wed, 2014-02-26 11:46Ben Jervey
Ben Jervey's picture

Keystone PipeLIES Exposed: New Film from Center for Media and Democracy

On Tuesday, the Center for Media and Democracy released a new short film that sets out to debunk the many false claims — the films calls them “pipeLIES” — used by promoters of the Keystone XL pipeline. These industry talking points, many of which are repeated without verification by mainstream media sources, have corrupted any reasonable public discourse on the pipeline, and the film's producers hope that using the video medium to expose the mistruths will lead to better public understanding of the true risks of the pipelines. 

The film, Keystone PipeLIES Exposed, takes a close and critical look at both ends of the proposed pipeline — from the open pit tar sands mines in Alberta to the toxic refineries in Port Arthur, Texas. But the meat of the 23-minute film looks at the pipeline itself — the route, the construction jobs, the spill risks, the communities and ecosystems that would be made vulnerable.

While traveling down the pipeline, so to speak, the film pays special attention to the talking points and falsehoods — the massively inflated job creation claims, promises of lower gas prices, and so on — that are constantly repeated by those who stand to profit from the pipeline's construction, and often by a mainstream media too lazy to verify them. 

Emmy Award-winning journalist Dave Saldana wrote, directed and produced the film. Saldana is also an attorney, and says this background was particularly useful in exploring and debunking many of the oil industry's suspicious claims. Saldana says:

I looked at the claims as a lawyer; what did the evidence show me? The evidence shows that its job creation claims are grossly inflated; that better, greener alternatives would aid America's energy independence and put more Americans to work for a longer time than the pipeline; and that the pumping of tar sands oil across the U.S. primarily for export to foreign countries poses enormous risks to America's water supply, food supply, and air quality. And that’s before you even get to what it does to climate change.”

Here's the film. You can also check out the PipeLIES Exposed site to find references for all the arguments debunking the lies. 

Keystone PipeLIES Exposed from Center for Media and Democracy on Vimeo.

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.”

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