oil sands

Mon, 2013-12-02 10:25Steve Horn
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Tar Sands' Next Frontier: Shipments on the Great Lakes

Great Lakes Tar Sands

The Great Lakes, drinking water source for over 40 million North Americans, could be the next target on tar sands marketers' bullseye according to a major new report out by the Chicago-based Alliance for the Great Lakes.

The 24-page report, “Oil and Water: Tar Sands Crude Shipping Meets the Great Lakes?unpacks a new looming threat to the Great Lakes in the form of barges transporting tar sands along the Great Lakes to targeted midwestern refinery markets. As the report suggests, it's a threat made worse by an accompanying “Wild West”-like regulatory framework.

“The prospect of tar sands shipping on the Great Lakes gives rise to fundamental social and economic questions about whether moving crude oil by vessel across the world’s single largest surface freshwater system is a venture this region wants to embrace, despite the known risks,” the report says early on.

Calumet Specialty Products Partners LP is one of the major corporations hedging its bets on moving tar sands along the Great Lakes — and oil obtained via hydraulic fracturing (“fracking”) from North Dakota's Bakken Shale basin — and may begin doing so as early as 2015.   

“[I]ndustry observers and consultants speculate this crude could travel from Wisconsin across Lake Superior to Lake Michigan, and on to refineries in Whiting, Ind., Lemont, Ill., and possibly Detroit, Mich. near Lake Erie,” the report details. “Other potential destinations include Sarnia, Ontario on Lake Huron, or even an East Coast refinery.”

As a recent GasBuddy.com article explained, BP's Whiting, Indiana refinery - capable of refining far more tar sands crude with its Modernization Project - will soon open for business.

“Sources say that BP's modernization of the company's 405,000-b/d Whiting, Ind., refinery is on schedule with all units now operating,” the article explained. “That includes a brand new 105,000-b/d coker that will eventually allow the plant to use about four times as much heavy sour Canadian crude compared with it had used previously.”

Tue, 2013-11-26 15:31Steve Horn
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Obama Approves Major Border-Crossing Fracked Gas Pipeline Used to Dilute Tar Sands

Although TransCanada's Keystone XL tar sands pipeline has received the lion's share of media attention, another key border-crossing pipeline benefitting tar sands producers was approved on November 19 by the U.S. State Department.

Enter Cochin, Kinder Morgan's 1,900-mile proposed pipeline to transport gas produced via the controversial hydraulic fracturing (“fracking”) of the Eagle Ford Shale basin in Texas north through Kankakee, Illinois, and eventually into Alberta, Canada, the home of the tar sands. 

Like Keystone XL, the pipeline proposal requires U.S. State Department approval because it crosses the U.S.-Canada border. Unlike Keystone XL - which would carry diluted tar sands diluted bitumen (“dilbit”) south to the Gulf Coast - Kinder Morgan's Cochin pipeline would carry the gas condensate (diluent) used to dilute the bitumen north to the tar sands.

“The decision allows Kinder Morgan Cochin LLC to proceed with a $260 million plan to reverse and expand an existing pipeline to carry an initial 95,000 barrels a day of condensate,” the Financial Post wrote

“The extra-thick oil is typically cut with 30% condensate so it can move in pipelines. By 2035, producers could require 893,000 barrels a day of the ultra-light oil, with imports making up 786,000 barrels of the total.”

Increased demand for diluent among Alberta's tar sands producers has created a growing market for U.S. producers of natural gas liquids, particularly for fracked gas producers.

“Total US natural gasoline exports reached a record volume of 179,000 barrels per day in February as Canada's thirst for oil sand diluent ramped up,” explained a May 2013 article appearing in Platts. ”US natural gasoline production is forecast to increase to roughly 450,000 b/d by 2020.”

Fri, 2013-11-22 12:37Steve Horn
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US Court Denies Halt on Pipeline Set to Replace Keystone XL Northern Half

Flanagan south, keystone xl pipeline

The ever-wise Yogi Berra once quipped “It's like déjà vu all over again,” a truism applicable to a recent huge decision handed down by the United States District Court for the District of Columbia. 

A story covered only by McClatchy News' Michael Doyle, Judge Ketanji Brown Jackson shot down Sierra Club and National Wildlife Federation's (NWF) request for an immediate injunction in constructing Enbridge's Flanagan South tar sands pipeline in a 60-page ruling.

That 600-mile long, 600,000 barrels per day proposed line runs from Flanagan, Illinois - located in the north central part of the state - down to Cushing, Oklahoma, dubbed the “pipeline crossroads of the world.” The proposed 694-mile, 700,000 barrels per day proposed Transcanada Keystone XL northern half also runs to Cushing from Alberta, Canada and requires U.S. State Department approval, along with President Barack Obama's approval. 

Because Flanagan South is not a border-crossing line, it doesn't require the State Department or Obama's approval. If Keystone XL's northern half's permit is denied, Flanagan South - along with Enbridge's proposal to expand its Alberta Clipper pipeline, approved by Obama's State Department during Congress' recess in August 2009 - would make up that half of the pipeline's capacity and then some. 

Tue, 2013-11-12 08:02Steve Horn
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Public Citizen Report Reveals Dents, Holes in Keystone XL Southern Half Weeks Before Planned Startup

The southern half of Transcanada's Keystone XL tar sands pipeline is supposed to begin pumping up to 700,000 barrels of diluted bitumen per day through the Cushing, OK to Port Arthur, TX route within weeks. But is it ready to operate safely?

Public Citizen has released a chilling report revealing that the 485-mile KXL southern line is plagued by dents, faulty welding, exterior damage that was patched up poorly and misshapen bends, among other troubling anomalies.

In conducting its investigative report, “Construction Problems Raise Questions About the Integrity of the Pipeline,” Public Citizen worked on the ground to examine 250 miles of the 485 mile pipeline's route. The group and its citizen sources uncovered over 125 anomalies in that half of the line alone. These findings moved Public Citizen to conclude the southern half of the pipeline shouldn't begin service until the anomalies are taken care of, and ponders if the issues can ever be resolved sufficiently.

After President Barack Obama temporarily denied a permit for Keystone XL's northern half in January 2012, the U.S. Army Corps of Engineers granted Keystone XL's south half a legally dubious Nationwide Permit 12 to expedite construction. Soon after, President Obama issued his own Executive Order in March 2012 calling for the expedited building of the south half in de facto support of the Corps' permit. 

An August report by industry intelligence firm Genscape said the pipeline, rebranded by Transcanada as the “Gulf Coast Project,” will ship tar sands dilbit through the line beginning in the first quarter of 2014. Now, the race to build the south half literally looks like it could come with major costs and consequences.  

Mon, 2013-11-04 10:19Steve Horn
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MSNBC "Leans Forward" Into Running "Native Ads" Promoting Fracking

Three years into its “Lean Forward” re-branding campaign, MSNBC has given new meaning to the catchphrase, leaning forward into running branded content promoting hydraulic fracturing (“fracking”)

Looking to beef up its web presence, MSNBC has brought “Lean Forward” online with a new and improved website, calling it a “Platform for the Lean Forward, progressive community.” A key part of funding that platform: running “native advertisements” for America's Natural Gas Alliance and General Electric.

“General Electric and America’s Natural Gas Alliance are the site’s launch partners,” explained an October 30 MediaPost article.

GE, the first native ad partner for msnbc.com, will collaborate with MSNBC to deliver a content series that highlights how the 'Industrial Internet' and 'Brilliant Machines Innovation' are reshaping our world. America’s Natural Gas Alliance will be featured in sponsored polls in the 'Speak Out' section of the site centered on natural gas facts.”

GE, former owner of NBC, of which MSNBC is one of its many tentacles, is fully invested in the fossil fuel industry, with assets in fracking, coal, offshore drilling, tar sands, and more. ANGA is the shale gas industry's lobbying tour de force, both at the federal and state level.

Native advertising - also referred to as “branded content” or “native content” - is quickly replacing banner ads and pop-up ads as the go-to channel of reaching consumers for advertising executives. 

“Native content is a digital advertising method in which the advertiser attempts to gain attention by providing content in the context of the user’s experience, matching both the form and function of the environment in which it is placed,” explained a recent MarketingWeek article.

If banner ads and pop-up ads are “overt ads,” then native ads are best described as “covert ads,” akin to the controversial “video news releases” for TV news.

Sun, 2013-11-03 10:57Steve Horn
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Coal Baron and Major Ken Cuccinelli Campaign Donor Sues Blogger for Defamation, Invasion of Privacy

Robert Murray, owner of the Ohio-based coal giant, Murray Energy Corporationfiled a defamation lawsuit against a prominent liberal blogger and The Huffington Post

Filed on September 25 in Belmont County's Court of Common Pleas, Murray's complaint accuses Mike Stark, creator of FossilAgenda.com and Stark Reports, and The Huffington Post of defamation and invasion of privacy stemming from Mr. Stark's September 20 article, “Meet the Extremist Coal Baron Bankrolling Ken Cuccinelli's Campaign.”

Stark, represented by the American Civil Liberties Union of Ohio and David Halperin, former Senior Vice President of the Center for American Progress pushed back this week, filing a motion asking the presiding federal judge to dismiss charges for the case.

Published in the midst of the heated Virginia gubernatorial race between Republican Virginia Attorney General Ken Cuccinelli and Democrat Terry McAuliffe - one of Hillary Clinton's 2008 presidential campaign chairmen - Stark's piece apparently struck a nerve with Murray, one of Cuccinelli's key campaign contributors.

Ken Cuccinelli; Photo Credit: Wikimedia Commons

In the piece published on The Huffington Post, Stark points to the $30,000 that Murray Energy has given Cuccinelli, as well as Robert Murray's campaign work on behalf of 2012 Republican Party presidential nominee Mitt Romney. Stark also covers Murray's call for the impeachment of President Obama at a recent speaking engagement, along with his firing of 150 workers after Obama's 2012 victory over Mitt Romney and the prayer he offered the U.S. public after Obama's 2012 victory. 

Sun, 2013-10-13 19:19Steve Horn
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US Court: Transcanada's Keystone XL Profits More Important than Environment

In a major ruling that's flown under the radar, the U.S. Court of Appeals for the Tenth Circuit - based in Denver, Colorado - decided not to grant the Sierra Club and Clean Energy Future Oklahoma a temporary injunction on the construction of the southern half of Transcanada's Keystone XL tar sands export pipeline

The Court's decision hinged on an “injury” balancing test: Would Transcanada be hurt more financially from receiving an injunction? Had it lost, it would be stuck with one until Sierra Club, et al receive a U.S. District Court decision on the legality of the U.S. Army Corps of Engineers' decision to grant Transcanada a Nationwide Permit 12 (NWP 12) for construction of what's now called the Gulf Coast Pipeline in February 2012. 

Or would ecosystems suffer even greater and potentially incalculable damage from the 485-mile, 700,000 barrels per day pipeline crossing 2,227 streams?

In a 2-1 decision, the Court sided with Transcanada, and by extension, the U.S. Army Corps of Engineers. The Court ruled, “the threatened environmental injuries were outweighed by the financial harm that the injunction would cause Transcanada.”

Commenting on the case brought by Sierra Club, et al, Judge Jerome A. Holmes and Judge Paul J. Kelly, Jr. - appointees of President George W. Bush and President George H.W. Bush, respectively - shot down the arguments sharply.

U.S. Appeals Court for the 10th Circuit Judge Jerome A. Holmes; Photo Credit: The White House

Holmes and Kelly ruled that Sierra Club, et al failed to show how the pipeline will have a significant environmental impact despite the fact it's been deemed a “fuse to the biggest carbon bomb on the planet” by retired NASA climate scientist James Hansen. 

Construction of Keystone XL's southern half - subject of significant grassroots activism by the Tar Sands Blockade and others - is now nearly complete. Tar sands dilbit is slated to begin to flow through it in early 2014. 

Wed, 2013-10-09 05:00Steve Horn
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Obama's Former Communications Director Anita Dunn Pitches "Ethical Oil" Keystone XL Ad

Ezra Levant is the man behind an attempt to re-frame the Alberta tar sands as “ethical oil.” “Ethical” - Levant's deceptive public relations campaign argues of the tar sands “carbon bomb” - because it doesn't come from the war-ridden and human rights-abusing Middle East. 

Now, the “ethical oil” campaign has a new backer: Anita Dunn, former White House Communications Director for President Barack Obama and current Principal of SKDKnickerbocker, a public relations firm with offices in Washington, D.C.; New York City and Albany.

SKDK - as covered here on multiple occasions by DeSmogBlog - does PR for Transcanada, the company behind the controversial Keystone XL tar sands export pipeline. Transcanada has paid SKDK - and by extension, Dunn - to place ads in strategic television and radio markets in the Washington, D.C. area. 

America imports millions of barrels of oil from the Middle East every week,” a narrator says in an ominous tone in the most recent ad, as images of violent protests in the Middle East blare across the screen. “But we don’t have to.”

The T.V. ad then switches to serene music and landscape views with pipeline stretched across it, alluding to “ethical oil” coming from Canada if the northern half of Transcanada's Keystone XL pipeline is approved by both the U.S. State Department and President Barack Obama.

The radio ad - also singing the “ethical oil” tune - claims that building the northern half of the Keystone XL will create “over 40,000 good American jobs.” Independent studies point to it creating 35 full-time jobs and 3,950 temporary construction jobs

The New York Times explained that Transcanada paid Dunn and SKDK to place the “ethical oil“-style ad “to reach power players in Washington’s media market.”

Fri, 2013-09-20 11:18Steve Horn
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This Graphic Says It All About Keystone XL Web of Deceit

Friends of the Earth-U.S. (FOE) and 350.org have jointly unveiled an easily sharable graphic depicting the web of deceit surrounding the environmental review for the northern half of Transcanada's Keystone XL tar sands export pipeline

The graphic's notorious star: Environmental Resources Management, Inc., better known as ERM Group. ERM Group was chosen by the State Department - more specifically by Transcanada for the State Department - to perform the review.

“[T]he process has a built-in conflict of interest, because the contractors who do EIS studies for the government are paid for by the applicant,” a July investigative piece in Bloomberg explains

The graphic serves as a summation of lots of the work done here on DeSmogBlog over the last six months. In so doing, it digs into conflicts of interest, lobbyist influence peddling and outright corruption occurring at the U.S. State Department pertaining to Keystone XL.

Check out the graphic below:

Mon, 2013-09-16 12:50Steve Horn
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Frackademia: The People & Money Behind the EDF Methane Emissions Study

Update: UT-Austin has released the Steering Committee roster for the study. It consists of lead author David Allen, two EDF employees, and nine oil industry representatives, including lobbyists and PR staff from ExxonMobil, Shell, Southwestern Energy and more. See DeSmog's follow-up coverage.

The long-awaited Environmental Defense Fund (EDF)-sponsored hydraulic fracturing (“fracking”) fugitive methane emissions study is finally out. Unfortunately, it's another case of “frackademia” or industry-funded 'science' dressed up to look like objective academic analysis.

If reliable, the study - published in the prestigious Proceedings of the National Academy of Sciences and titled, “Measurements of methane emissions at natural gas production sites in the United States” - would have severely reduced concerns about methane emissions from fracked gas.

The report concludes .42% of fracked gas - based on samples taken from 190 production sites - is emitted into the air at the well pad. This is a full 2%-4% lower than well pad emissions estimated by Cornell University professors Robert Howarth and Anthony Ingraffea in their ground-breaking April 2011 study now simply known as the “Cornell Study.”

peek behind the curtain show the study's results - described as “unprecedented” by EDF - may have something to do with the broad spectrum of industry-friendly backers of the report which include several major oil and gas companies, individuals and foundations fully committed to promoting the production and use of fracked gas in the U.S.

One of the report's co-authors currently works as a consultant for the oil and gas industry, while another formerly worked as a petroleum engineer before entering academia.

The study will likely be paraded as “definitive” by Big Oil, its front groups and the media in the days and weeks to come.

DeSmogBlog exclusive investigation reveals the study actually stands to make its pro-gas funders a fortune in what amounts to industry-favorable data meant to justify shale gas in the public mind as a “bridge fuel” - EDF's stance on gas - now and into the future.  

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