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New Report Names Alberta Oilsands as Highest Cost, Highest Risk Investment in Oil Sector

A total of $1.1 trillion USD earmarked for risky carbon-intensive oil sector investments need to be challenged by investors, according to a new report released today by the Carbon Tracker Initiative.

The research identifies oil reserves in the Arctic, oilsands and in deepwater deposits at the high end of the carbon/capital cost curve. Projects in this category “make neither economic nor climate sense” and won’t fit into a carbon-constrained world looking to limit oil-related emissions, Carbon Tracker states in a press release.

The report highlights the high risk of Alberta oilsands investment, noting the reserves “remain the prime candidate for avoiding high cost projects” due to the region’s landlocked position and limited access to market.

The isolated nature of the [oilsands] market with uncertainty over export routes and cost inflation brings risk.”

Greenpeace Complaint Against Ethical Oil Brings “Corrosive Effect of Oil on Our Politics” to Light

When Greenpeace Canada’s climate and energy campaigner Keith Stewart filed an official complaint with Elections Canada, he did a lot more than question the implications of the Ethical Oil Institute’s collusion with the Conservative Party of Canada: he called national attention to the corrosive effect oil money has had on Canadian politics in recent years.

At the broadest level,” Stewart told DeSmog Canada via e-mail, “we are trying to rebalance the playing field between money and people power in Canadian politics. You can never eliminate the influence of money on politics, but you can limit it and make it more transparent.”

Greenpeace’s request for an investigation is based on the fact that corporate donations to political parties are banned in federal politics — yet money raised by the Ethical Oil Institute appears to have been spent on advertising and other activities developed and implemented by people directly involved in the Conservative Party of Canada. The institute does not disclose its funding sources, but its website states it does “accept donations from Canadian individuals and companies, including those working to produce Ethical Oil.”

Look At These Incredible Photos Taken By Pulitzer Center Journalists Flying Over the Oilsands This Week

Dan Grossman, Alex McLean, Alberta tar sands, oilsands

Journalist Dan Grossman and photographer Alex MacLean are in the middle of their week long tour of the Alberta oilsands. Their on-the-scene reporting is meant to bring greater public attention to the scale – and the stakes – of developing oil from the world’s largest deposit of carbon-intensive bitumen.

As Grossman puts it on the Pulitzer Center website, “We know the ground beneath Alberta’s boreal forest—saturated with an estimated 150 billion barrels of oil—rivals all other troves of oil apart from those of Saudi Arabia and Venezuela. We know Alberta’s rich deposits underlie a territory of 54,000 square miles, as large as Iowa. But we can barely comprehend numbers this big. Alex will help us. He’ll show us waste ponds nearly the size of Manhattan and dump trucks that could swallow a McMansion whole.”  

Grossman has been tweeting about his experience in the oilsands region prolifically since April 4th. Below you can see some of the duo’s photojournalist coverage of their trip so far.

All the Positive and Helpful Things in the IPCC Report No One Will Talk About

climate change, IPCC

If you’ve come across any of the recent headlines on the release of the latest Intergovernmental Panel on Climate Change (IPCC) report, you’re probably feeling pretty low. The doom and gloom levels were off the charts. And understandably so. Major nations across the globe – especially Canada – are dragging their heels when it comes to climate change action. Canada, sadly, doesn’t have any climate legislation.

But maybe that’s because Canada was waiting for a group of the world’s most knowledgeable scientists to come up with a report for policy makers — you know, something to outline useful guidelines to keep in mind when looking to get your country out of the climate doghouse.

Well, Canada, you’re in luck. Here are some of the IPCC report’s most useful guidelines for responding to the multiple and growing threats of climate change:

New IPCC Report: Climate Hazards a “Threat Multiplier” and the World is Not Ready

climate change, IPCC

Human interference with the climate system is occurring, and climate change poses risks for human and natural systems.” IPCC WGII AR5

Every five years or so thousands of scientists from around the world release a major report on the state of climate science. These reports from the Intergovernmental Panel on Climate Change (IPCC) are the most definitive source of information for understanding not only the planet’s geologic and climatic history, but how humans are now influencing earth’s systems, most notably by altering the composition of the atmosphere.

The second part of the most recent report, released today in Yokohama, Japan, focuses on the impacts of climate change and how well governments are adapting to those impacts. This newly-released portion of the report, from the IPCC’s Working Group II, does not bode well for the future of people on this planet. The report predicts massively negative effects on crops, extinction of species, devastating heat waves, acid oceans and geopolitical conflict.

And that’s being called a “conservative” outlook.

Los Angeles Becomes Largest City to Approve Fracking Moratorium

Fracking for oil and gas will not be happening in Los Angeles any time soon after City Council members unanimously voted to ban the practice within city limits today. The vote passes the motion to the City Attorney's office where it will be rewritten as a zoning ordinance before returning to City Council for a final vote.

L.A. is now the largest city in the U.S. to refuse the dangerous extraction process. Local bans have become an effective protective measure against fracking, and are in place in numerous jurisdictions worldwide including Vermont, Hawaii, areas of New York State, Quebec, and France among many others.

The Los Angeles ordinance prevents the use of fracking until effective governmental oversight and regulation is in place at the local, state and federal levels.

I think we can all agree unregulated fracking is crazy,” said Councilman Paul Koretz, co-author of the motion.

California is in the midst of a devastating drought, raising concerns over access to fresh water supplies. Fracking uses approximately 5 million gallons of water per frack job.

CNRL Releases New, Lower Cold Lake Oil Spill Estimates

bitumen emulsion oil spill at CNRL Primrose CSS site in the Alberta oilsands

The Alberta Energy Regulator (AER) has released new figures tallying the total volume of bitumen emulsion recovered at the Canadian Natural Resources Ltd. (CNRL) Primrose site in Cold Lake, Alta. The new total — 1,177 cubic metres or 1.1 million litres — is more than a third lower than previously reported amounts.

An earlier incident report from November 14, 2013, states more than 1,878 cubic metres of emulsion was recovered at the four separate release sites, where the mixture of bitumen and water had been leaking uncontrollably into the surrounding environment for several months without explanation. That's enough liquid to fill an Olympic-sized swimming pool three-quarters of the way full.

CNRL's July 31, 2013, statement (pdf), released to investors just over one month after the leaks were reported to the AER, said that within the first month of cleanup, 1,000 cubic metres of bitumen emulsion had been collected.

Scientist Kevin Timoney, who's authored several reports on the CNRL leaks, said the reported figures just don't add up.

The bottom line is, how do you go from essentially 1,900 cubic metres, which is what you get if you listen to the president of CNRL when he was talking in January, down to 1,177 cubic metres. How does that happen?” Timoney said. “And nobody has answered that.”

Andrew Nikiforuk: Canada's Petrostate Has "Dramatically Diminished Our International Reputation"

“Alberta is very much a petrostate,” says journalist and author Andrew Nikiforuk. “It gets about 30 per cent of its income from the oil and gas industry. So as a consequence, the government over time has tended more to represent this resource and the industry that produces it, than its citizens. This is very typical of a petrostate.”

The flow of money, he says, is at the heart of the issue. “When governments run on petro dollars or petro revenue instead of taxes then they kind of sever the link between taxation and representation, and if you're not being taxed then you're not being represented. And that’s what happens in petrostates and as a consequence they come to represent the oil and gas industry. Albert is a classic example of this kind of relationship.”

In this interview with DeSmog, Nikiforuk explains the basics of his petrostate thesis and asks why Canada, unlike any other democratic nation, hasn't had a meaningful public debate about the Alberta oilsands and how they've come to shape the Canadian landscape, physically as much as politically.

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.

US State Department Considers Rail Transport of Crude in Keystone XL Decision

keystone xl pipeline oil by rail

A decision on the proposed northern half of the Keystone XL pipeline - under review since 2008 - hinges on a final environmental review by the State Department now taking into consideration the importance oil-by-rail transport might have on growth of Alberta's tar sands.

US officials are evaluating the impact Keystone XL will have on expansion of the tar sands and whether or not the pipeline will worsen climate change. According to a new report by Reuters the evaluation has created a balancing test, “zeroing in on the question of whether shipment by rail is a viable alternative to the controversial project.”

The test's crux: “if there is enough evidence that the oil sands region will quickly grow with or without the 1,200-mile line, that would undercut an argument from environmentalists that the pipeline would turbocharge expansion,” Reuters reports.

President Barack Obama's State Department is asking rail executives to report on logistics, market dynamics and what obstacles oil-by-rail alternatives face in delivering 830,000 barrels of Canadian oil to Cushing, Oklahoma - the “pipeline crossroads of the world” - where Keystone XL's northern half will link up with Keystone XL's southern half which is expected to be up and running by the end of October.

In other words, could rail realistically provide an alternative to the Keystone XL, aiding in the expansion of Canada's highly-polluting tar sands?

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