tar sands

How a Russian Steel Oligarch and Putin Ally Is Profiting from the Keystone XL Pipeline

Pipes for the Keystone XL pipeline sit in piles

By Steve Horn and Itai Vardi

Believe it or not, there's a key connection to Russia and its president, Vladimir Putin, in the fight over North America's controversial Keystone XL pipeline.

One of President Donald Trump’s first actions in office was to sign an executive order on January 24 expediting the approval of the Keystone XL. Owned by TransCanada, this tar sands oil pipeline was halted by former President Barack Obama in November 2015. Trump signed another order on January 24, calling for steel for U.S. pipelines to be made in the U.S. to the “maximum extent possible,” and two days later TransCanada filed a new presidential permit application for Keystone XL with the U.S. Department of State.

Critics, such as John Kemp of Reuters, pounced on the caveat language in Trump’s steel order and noted that it appears “designed to preserve lots of wiggle-room.” In fact, a DeSmog investigation reveals that much of the steel for Keystone XL has already been manufactured and is sitting in a field in rural North Dakota.

DeSmog has uncovered that 40 percent of the steel created so far was manufactured in Canada by a subsidiary of Evraz, a company 31-percent owned by Russian oligarch Roman Abramovich, who is a close ally of Putin and a Trump family friend. Evraz has also actively lobbied against provisions which would mandate that Keystone XL's steel be made in the U.S.

Dakota Access Pipeline Approved a Week After Co-Owner's Pipeline Spilled 600,000 Gallons of Oil in Texas

Oil spill in Blue Ridge, Texas

On January 30, 600,000 gallons (14,285 barrels) of oil spewed out of Enbridge's Seaway Pipeline in Blue Ridge, Texas, the second spill since the pipeline opened for business in mid-2016.

Seaway is half owned by Enbridge and serves as the final leg of a pipeline system DeSmog has called the “Keystone XL Clone,” which carries mostly tar sands extracted from Alberta, Canada, across the U.S. at a rate of 400,000 barrels per day down to the Gulf of Mexico. Enbridge is an equity co-owner of the Dakota Access pipeline, which received its final permit needed from the U.S. Army Corps of Engineers on February 7 to construct the pipeline across the Missouri River and construction has resumed.

The alignment of Native American tribes, environmentalists, and others involved in the fight against Dakota Access have called themselves “water protectors,” rather than “activists,” out of concern that a pipeline spill could contaminate their drinking water source, the Missouri River. 

Key Trump Donor Stands to Profit from Order to Approve Keystone XL, Dakota Access Pipelines

On January 24, President Donald Trump signed two executive orders calling for the approval of the Dakota Access and Keystone XL pipelines, owned by Energy Transfer Partners and TransCanada, respectively. He also signed an order calling for expedited environmental reviews of domestic infrastructure projects, such as pipelines.

Fights against both pipelines have ignited nationwide grassroots movements for over the past five years and will almost assuredly sit at the epicenter of similar backlash moving forward. As DeSmog has reported, Donald Trump's top presidential campaign energy aide Harold Hamm stands to profit if both pipelines go through. 

Hamm, the founder and CEO of Continental Resources who sat in the VIP box at Trump's inauguration and was a major Trump campaign donor, would see his company's oil obtained from hydraulic fracturing (“fracking”) in the Bakken Shale flow through both lines. Kelcy Warren, CEO of Energy Transfer Partners, was also a major Trump donor.

Secrecy Around Composition of Oilsands Dilbit Makes Effective Spill Response, Research Impossible: New Study

Knowledge gaps about the behaviour of diluted bitumen when it is spilled into saltwater and lack of information about how to deal with multiple problems that can result from extracting and transporting bitumen from the Alberta oilsands, make it impossible for government or industry to come up with effective policies to deal with a disaster, says a newly published research paper, Oilsands and the Marine Environment.

Canada’s Trudeau Plans to Work with Trump Admin to Approve Keystone XL, Pump Exxon-owned Tar Sands into U.S.

Tar sands Mildred Lake plant

At a speech given to the Calgary Chamber of Commerce, Canada's Prime Minister Justin Trudeau said he intends to work with President-elect Donald Trump to approve the northern leg of TransCanada's Keystone XL pipeline. 

The speech comes as Trump revealed in a recent interview with Fox News that one of the first things he intends to do in office is grant permits for both Keystone XL and the perhaps equally controversial Dakota Access pipeline. Because Keystone XL North crosses the U.S.-Canada border, current processes require it to obtain a presidential permit from the U.S. Department of State, which the Obama administration has denied.

The next State Department, however, could be led by the recently retired CEO of ExxonMobil, Rex Tillerson, who was just nominated to be U.S. Secretary of State and soon will face a Senate hearing and vote. Potentially complicating this situation is the fact that Exxon holds substantial interest in both tar sands projects and companies, which stand to benefit from the Keystone XL pipeline bringing this carbon-intensive crude oil across the border.

In Photos: Lessons from the Scene of the Sea Empress Oil Spill

Dr. Robin Crump had a front row seat to one of the world’s worst oil spills.

Twenty years ago, on Feb. 15, 1996, the Sea Empress oil tanker ran aground on mid-channel rocks in Pembrokeshire Coast National Park in Wales.

Over the course of the following week, the Sea Empress spilled almost 18 million gallons — 80 million litres — of crude oil, making it Britain’s third largest oil spill and the world’s 12th largest at the time.

Beaches were coated in a thick brown chocolate mousse of petroleum. Thousands of birds and other creatures perished. The rare species, Asterina Phylactica, first discovered by Dr. Crump, was reduced to a handful of individuals. Thanks in large part to Crump’s efforts, the species was well on the road to recovery within six months.

The Billionaire Energy Investor Who Vetted Trump's EPA Pick Has Long List of EPA Violations

Natural gas refinery

Asked for his take on President-elect Donald Trump's appointment of Oklahoma Attorney General Scott Pruitt to head the U.S. Environmental Protection Agency (EPA), multi-billionaire investor and Trump business partner Carl Icahn told Bloomberg that Pruitt is “going to really be a breath of fresh air.” Given Icahn's business ties, that statement is steeped in accidental irony. 

Icahn, owner of the holding company Icahn Enterprises and a major donor to Trump's presidential campaign, was instrumental in choosing Pruitt — a man who as state prosecutor actively opposed most federal environmental regulations and denied the science of climate change — for the nation's top environmental job. As reported by The Wall Street Journal, Trump allowed Icahn, the 26th most wealthy man on the planet, to vet and interview finalists for high-level EPA jobs even though Icahn owns business assets impacted by current EPA regulations.

In addition, a DeSmog investigation shows that Icahn Enterprises owns oil industry assets based in Oklahoma, which are involved in EPA enforcement violations, and does business with TransCanada's Keystone pipeline system. 

Ethical Oil Institute

Ethical Oil Institute

Background

Donald Trump's Top Energy Aide Could Profit From GOP-Promised Keystone XL Permit

Harold Hamm — founder and CEO of Continental Resources, top energy aide for Republican Party presidential nominee Donald Trump and Trump's possible choice for energy secretary — may stand to gain from a cross-border permit of TransCananda's Keystone XL pipeline. 

Continental Resources has been dubbed the “King of the Bakken” because of the vast amount of acreage the company owns in North Dakota's Bakken Shale basin, while Hamm also served as energy adviser in 2012 for Republican Party presidential nominee Mitt Romney. Handing TransCanada a permit for Keystone XL receives an explicit mention in the Republican Party platform.

Warren Buffett Attacks Clean Energy While Increasing Dirty Oil Investments

Warren Buffett, one of the world's richest men and a campaign fundraiser and donor for Hillary Clinton's presidential run, has made headlines lately for the attacks on rooftop solar energy launched by subsidiaries of his holding company Berkshire Hathaway.

As Ben Jervey explained here on DeSmog, Buffett and Berkshire Hathaway have numerous ties to coal-fired power plants, the utility industry and the coal-by-rail industrial complex.

But Buffett's tentacles reach far into the oil industry, as well. 

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