Bakken Shale

Mon, 2012-10-08 10:25Ben Jervey
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Oil On the Tracks: How Rail Is Quietly Picking Up the Pipelines' Slack

We’ve talked a lot here on DeSmogBlog about oil (and tar sands crude) pipelines. You know, like the Keystone XL, which TransCanada is currently ramming through Texas, using whatever means necessary (including violence), and Enbridge's Northern Gateway, which was just declared "dead" by one of Canada's top newspapers.

And we’ve talked quite a bit about coal trains. All for very good reason. But we haven’t ever delved into the growing trend of shipping oil by train. Trains are a crucial -- and growing -- part of oil industry infrastructure, so it’s worthwhile to take a step back and get some perspective on this remarkable system. Understanding oil trains will help you understand, for instance, why oil markets are paying little attention to the pipeline debates.

Let’s start with the raw numbers.

Every week, over 17,000 carloads of oil are shipped in the U.S. and Canada. With roughly 600 to 700 barrels of oil in each carload, that’s between 1.4 and 1.6 million barrels of oil on the U.S. and Canadian rails every day. And these numbers are growing fast. This chart says it all.

Thu, 2012-05-03 12:46Steve Horn
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B.C. Protest This Saturday to Stop Warren Buffett's BNSF Coal Trains

Warren Buffett, the third wealthiest man on the planet (net worth: $44 billion), often referred to as the "Oracle of Omaha," is the target of a May 5 action called for by Stop Coal B.C. Well, not Buffett directly, but a rail company he owns through his massive holding company, Berkshire Hathaway: Burlington Northern Santa Fe (BNSF) Railway.

BNSF Railway is the second largest freight rail company in the United States and the exclusive carrier of thermal coal from coal basins in the northwestern U.S. to docks in British Columbia, where the dirty coal is exported to the global market, primarily to Asia.

The action calls for activists to blockade BNSF's four coal-loaded freight trains from reaching their final destination for the day and in the process, risk arrest. It is part of 350.org's broader "Connect the Dots" event taking place on Saturday, with actions planned throughout the world.

The Stop Coal B.C. call to action reads,

Thu, 2012-04-19 13:45Steve Horn
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New Bakken Shale Pipeline to Cushing, OK in the Works

The controversy over TransCanada's Keystone XL pipeline has raged on for years now, with no end in sight. 

The Keystone XL pipeline would carry tar sands crude from the tar sands epicenter of the world in Alberta, Canada, take it down to Cushing, OK, and then eventually down to Port Arthur, TX, where it will be refined and placed on the lucrative oil export market.

While Republicans continue to try to make Keystone XL a campaign issue, President Obama has officially put the fate of the pipeline on the backburner until after the November 2012 U.S. elections.

But this has not stopped other key pipelines and pipeline extensions from being built "in the meantime, in between time," as the song lyrics made famous by the classic novel, The Great Gatsby, go.

Most recently in the limelight: Obama's late-March approval of the TransCanada Cushing Extension, which extends from Cushing, OK -- the self-proclaimed "pipeline crossroads of the world" -- to Port Arthur, TX, where oil would be placed on the global export market. 

Now, another key pipeline proposal is in the works, one that would move unconventional oil and gas obtained via the problematic hydraulic fracturing ("fracking") process in North Dakota's Bakken Shale basin southward to Cushing, where it would then be moved to Port Arthur and also placed on the global export market. Another portion of that pipeline would move the oil and gas westward toward Coos Bay, Oregon, where it would also be exported to the highest bidder.

Sun, 2012-04-01 16:22Steve Horn
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Investors: No More Flaring of Fracked Oil and Gas in Bakken Shale

The debate over flaring unconventional oil and gas in shale basins across the United States has suddenly heated up immensely (excuse the bad pun). 

On March 27, the Coalition for Environmentally Responsible Economy (CERES) penned a letter calling for an end to the practice, writing,

We are a group of 37 investors, representing $500 billion in total assets, who areconcerned about the financial risks associated with the flaring of natural gas that has accompanied fast-proliferating oil production from shale formations in North Dakota, Texas and elsewhere in the U.S.

We are concerned that excessive flaring, because of its impact on air quality and climate change, poses significant risks for the companies involved, and for the industry at large,ultimately threatening the industry’s license to operate.

As you know, shale oil production, made possible by hydraulic fracturing technology,...is poised to become the world’s largest oil producer in the next five years, with nearly all of this projected growth coming from shale oil. ...

On a lifecycle basis, emissions from oil produced with high flaring rates may be comparable to those from Canada’s vast oil sands region.

The letter ended by calling for the building up of proper infrastructure, such as pipelines and refineries, in order to push for an eliminiation of the dirty practice. CERES concluded the letter with a firm request, stating, "We therefore are writing to request information about the amount your company is currently flaring, as well as details about your plans to reduce flaring at existing wells and prevent it at future wells."

Letter signarories included As You SowPresbyterian Church (USA)Turner Investments, and Praxis Mutual Funds, to name several.

North Dakota the New Nigeria? 

Nigeria has been ravaged at the hands of gas flaring. Will North Dakota's Bakken and other shale basins go the way of the Niger Delta?

The evidence is a bit ominous.

For example, gas flared in the Bakken, like in Nigeria, can be seen from outer space, a stark portrayal of the vast amount of gas being flared off in North Dakota on a daily basis.

So, kudos to CERES for taking on this fight. If you're going to drill it, use it. If not, leave it in the ground.

Life for humanity on earth as we know it, after all, depends on it.

Tue, 2012-03-20 14:03Steve Horn
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Obama Sojourns to "Pipeline Crossroads of the World" for Campaign Speech

It's the multi-pronged fight that never seems to end.

The Alberta Tar Sands have been near the forefront of the North American energy and climate debate, thanks in large part to growing public concern and grassroots efforts like Tar Sands Action, a campaign led by climate activists to block construction of the Keystone XL pipeline.

The temporary derailing of Keystone XL by President Obama - who in January delayed permission to construct the pipeline for the foreseeable future - was labeled a "victory" by many activists. 

But complicating the "victory" narrative, Obama later granted permission to TransCanada Corporation to build the southern segment of the pipeline, the Cushing Extension, sometimes also referred to as the Cushing Marketlink Project, which will run from Cushing, Oklahoma to Port Arthur, Texas

Pandering to Big Oil, Obama will visit Cushing on Thursday, the self-proclaimed "Pipeline Crossroads of the World," to give a stump speech for his 2012 election campaign.

The Stillwater News Press explained the rationale for the visit this way:

The White House has announced the president will be in Cushing Thursday to discuss his 'all-of-the-above' energy policy...Thursday appears to some locals as an opportune time for Obama, who said he supports the southern leg, to get on board on the northern segment of the 36-inch pipeline from Canada.

CBC News reports that "Obama will make a speech at a storage yard that's holding pipes to be used to build the pipeline." 

As the old adage goes, "A picture is worth a thousand words." 

Fri, 2012-02-03 13:00Steve Horn
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Warren Buffett Exposed: The Oracle of Omaha and the Tar Sands

Credit: Pete Souza, Office of the President

On January 23, Bloomberg News reported Warren Buffett's Burlington Northern Santa Fe Railway (BNSF), owned by his lucrative holding company Berkshire Hathaway, stands to benefit greatly from President Barack Obama’s recent cancellation of the Keystone XL pipeline

If built, TransCanada's Keystone XL (KXL) pipeline would carry tar sands crude, or bitumen (“dilbit”) from Alberta, B.C. down to Port Arthur, Texas, where it would be sold on the global export market

If not built, as revealed recently by DeSmogBlog, the grass is not necessarily greener on the other side, and could include increased levels of ecologically hazardous gas flaring in the Bakken Shale, or else many other pipeline routes moving the prized dilbit to crucial global markets.

Rail is among the most important infrastructure options for ensuring tar sands crude still moves to key global markets, and the industry is pursuing rail actively. But transporting tar sands crude via rail is in many ways a dirtier alternative to the KXL pipeline. “Railroads too present environmental issues. Moving crude on trains produces more global warming gases than a pipeline,” explained Bloomberg.

A key mover and shaker behind the push for more rail shipments is Warren Buffett, known by some as the “Oracle of Omaha” -- of "Buffett Tax" fame -- and the third richest man in the world, with a net worth of $39 billion. With or without Keystone XL, Warren Buffett stands to profit enormously from multiple aspects of the Alberta Tar Sands project. He also, importantly, maintains close ties with President Barack Obama.

Mon, 2012-01-23 21:38Steve Horn
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Demise of Keystone XL Means More Bakken Shale Gas Flaring

Damned if we do, damned if we don't - this is the CliffsNotes version of the ongoing Keystone XL pipeline debate. President Barack Obama recently halted TransCanada's proposed Keystone XL tar sands pipeline project, which would bring tar sands crude, or dilluted bitumen ("dilbit") from Alberta through the heart of the U.S., to Gulf Coast refineries near Port Arthur, Texas, where the oil would then be exported to the global market.

Most environmental organizations declared victory and suggest the Keystone XL pipeline is dead. Unfortunately, this is far from the case. Republican House Majority Leader John Boehner (R-OH) recently told The Hill he may attempt to rope the pipeline into the next payroll tax extension. Furthermore, a recent Congressional Research Services (CRS) paper said that under a little-used Consitutional clause, the two chambers of Congress, rather than the White House, could have the final say on the pipeline's ultimate destiny. CRS explained, 

[I]f Congress chose to assert its authority in the area of border crossing facilities, this would likely be considered within its Constitutionally enumerated authority to regulate foreign commerce.

Because the pipeline crosses the U.S.-Canada border, many thought that the U.S. State Department, and by extension the White House, had the final say in the manner. This may no longer be true.

On the other hand, even if the Keystone XL becomes a "pipe dream," the grass isn't necessarily greener on the other side.

Wed, 2011-08-24 05:00Steve Horn
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General Electric's Jim Cramer Heads to Midwest As Fracking Cheerleader

This article is cross-posted from the Center for Media and Democracy's PRWatch

Today, CNBC's Mad Money with Jim Cramer's "Invest in America" series will take the show to a seemingly unlikely locale, a place many would consider the middle of nowhere -- North Dakota.

Why North Dakota? Four words: The Bakken Shale Formation.

Referred to as "Kuwait on the Prairie" by The New Yorker in an April 2011 feature story and located predominately in northwest North Dakota, the shale formation possesses a vast amount of both oil and methane gas, gathered via the notorious fracking process. Recognizing the economic opportunities that the formation would present to fossil fuel corporations, the U.S. Energy Information Administration penned a report in November 2006 titled "Technology-Based Oil and Natural Gas Plays: Shale Shock! Could There Be Billions in the Bakken?", highlighting them in some depth.

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