Keystone XL

Five Things You Need to Know About the Cancellation of the Energy East Oilsands Pipeline

Alberta oilsands

TransCanada’s Energy East pipeline is officially dead.

Announced via press release on Thursday, the news confirmed long-held suspicions that the $15.7 billion, 4,500 km oilsands pipeline simply wouldn’t cut it in today’s economic context.

But that hasn’t stopped commentators on all sides from pouncing on the cancellation as proof of their political project. Conservative politicians have lambasted the federal Liberals for introducing carbon pricing and new rules on pipeline applications, while environmentalists have claimed the company’s decision was a direct result of their organizing.

DeSmog Canada is here to help wade through the mess. Here are five things you should know about the cancelled Alberta-to-New Brunswick pipeline.

TransCanada Cancels Energy East Oilsands Pipeline

TransCanada pipeline

Canadian pipeline company TransCanada announced today it will no longer be proceeding with its proposed Energy East Pipeline and Eastern Mainline projects.

After careful review of changed circumstances, we will be informing the National Energy Board that we will no longer be proceeding with our Energy East and Eastern Mainline applications,” said president and CEO Russ Girling in a statement released Thursday morning.

The $15.7 billion Energy East pipeline planned to transport 1.1 million barrels of oil per day from western Canada’s oilsands to refineries in Quebec and Saint John, New Brunswick, as well as an export terminal in New Brunswick.

Montana Eased Regulations for Keystone XL After Lobbying by TransCanada

TransCanada oil pipelines visible above ground with a sign

As President Trump's State Department took steps to approve the Keystone XL pipeline, the project's owner, TransCanada, lobbied on two bills in Montana which will ease the company's regulatory burden in the state. 

Those bills, HB 365 and SB 109, moved along in the state's legislature with no media coverage despite the state being the first crossed in the pipeline's proposed journey from Alberta, Canada to Steele City, Nebraska. HB 365, which passed in May, will allow TransCanada to escape civil liability for any potential damages suffered by its contracted land surveyors. Meanwhile, SB 109 would have required environmental reviews for infrastructure projects in Montana to consider impacts beyond state lines, but failed to pass.

Keystone XL Pipeline Gets New Push From Revolving Door Team of Lobbyists

Keystone XL pipeline under construction

A changing of the guard in the White House, with President Donald Trump taking the helm, has spawned a hiring spree of new lobbyists to advocate for TransCanada's long-contested Keystone XL pipeline.

In the forefront, TransCanada has hired the firm CGCN Group — former employer of Trump's top White House energy adviser, Mike Catanzaro — to lobby for Keystone with a two-person team. TransCanada has also hired a duo of in-house lobbyists, one who worked as a Democratic congressional staffer and another who worked for a Republican, to make the case for the pipeline.

TransCanada's new team of lobbyists serves as a departure from recent years, in which teams of lobbyists and public relations professionals tied to the Democratic Party and President Barack Obama went to bat for Keystone. Keystone XL landed its long-desired presidential permit from President Trump in January, but now faces the specter of a lack of sufficient market demand for oil from the Alberta tar sands.

Goldman Sachs-backed Firm Invests Big in Shipping Tar Sands by Train Along Keystone XL Route

Oil train tank cars

USD Partners, a rail terminal operator owned in part by Wall Street giant Goldman Sachs, has signed a nearly three year deal to facilitate moving tar sands by train from where it is extracted in Alberta, Canada, to an offloading terminal in Stoud, Oklahoma, in a route mirroring that of the Keystone XL pipeline.

From Stroud, the heavy oil can be sent via pipeline to the nearby oil storage hub in Cushing, Oklahoma. USD's announcement, which said the company could transport up to 70,000 barrels per day of tar sands in rail cars, came in a June 2 filing with the Securities and Exchange Commission (SEC).

The deal, centering around the purchase of the Stroud terminal, also included the acquisition of 300,000 barrels of storage space in Cushing, a town known by oil and gas industry observers as the “pipeline crossroads of the world.” 

Climate-Denying Group Led by Trump Strategist Lobbied for Dakota Access, Keystone XL

Tony Fabrizio

The Center for Individual Freedom (CFIF), a conservative advocacy, lobbying, and electioneering group led by a strategist for Donald Trump’s presidential campaign, has lobbied for both the Dakota Access and Keystone XL pipelines.

Tony Fabrizio, a veteran Republican tactician and lead pollster, chairs CFIF’s Board of Directors, according to its 2017 incorporation filings, submitted in Florida. Documents from the state show that Fabrizio signed off on CFIF’s forms back in 2004.

According to federal lobbying disclosure forms, the group's team of lobbyists, at the end of 2016, engaged with then-President Barack Obama's staff to express “concern with ongoing violent protests and obstruction of the Dakota Access Pipeline and [to urge] allowance of construction to continue without any further delay.”

In Heat of Dakota Access Protests, National Sheriffs' Association Lobbied for More Military Gear

SWAT team

By Steve Horn and Curtis Waltman

At the end of 2016, as a mix of sheriffs, police, and private security forces were clashing with those protesting the Dakota Access pipeline at the Standing Rock Sioux Reservation, the National Sheriffs' Association was lobbying Congress for surplus military gear and on undisclosed issues related to the now-operating oil pipeline. This information comes from federal lobbying disclosure forms reviewed by DeSmog.

Weeks Before Becoming Trump Top Energy Adviser, Mike Catanzaro Lobbied for Keystone XL

Pipeline sections for Keystone XL pipeline in 2009

Just weeks before being hired as President Donald Trump's top White House energy adviser, Mike Catanzaro was paid by TransCanada to advocate for the Keystone XL pipeline.

Lobbying for his old employer, CGCN Group, disclosure forms reviewed by DeSmog reveal that a team of lobbyists including Catanzaro advocated for “Policy issues and executive branch approval of the Keystone pipeline.” TransCanada paid Catanzaro and the CGCN team $90,000 for their work during the first quarter of 2017. The Trump administration recently gave the Canadian energy company the green light to build the long-contested cross-border pipeline, which will carry tar sands from Alberta, Canada, to Cushing, Oklahoma.

These Industry Titans Oppose Trump's Order to Build Pipelines with U.S. Steel

sections of steel pipe for a gas pipeline

The April 7 deadline has come and gone for public comments on President Donald Trump's executive order calling for U.S. pipelines to be made with U.S.-produced steel, and some of the most influential titans of industry have come out against it.

The list of heavy-hitters who have voiced their discontent includes the likes of Dakota Access pipeline-owner Energy Transfer Partners, Russian-owned pipe producers Evraz North America and TMK IPSCO, and pipeline giants Williams Companies and EQT Midstream. It also includes the oil and gas industry at-large through its trade association and lobbying groups, such as the American Petroleum Institute (API), Independent Petroleum Association of America (IPAA), Association of Oil Pipelines, American Fuel & Petrochemical Manufacturers (AFPM), and others such as Magnolia LNG

Noticeably absent from the list is TransCanada, owner of the recently approved Keystone XL pipeline, which the Trump administration has said is exempt from the order. Both Keystone XL and Dakota Access will use steel made by Evraz North America, whose parent company is owned by a close political ally of Russian President Vladimir Putin, as previously reported by DeSmog.

Three Reasons Why Keystone XL May Never Get Built

Keystone XL pipeline

Almost a full decade since first applying for a presidential permit, TransCanada looks set to finally receive go-ahead in the U.S. for its massive $8-billion Keystone XL pipeline.

But here’s the thing: U.S. approval, while a great leap forward for TransCanada, doesn’t guarantee the Keystone XL pipeline will ever be built.

U.S. President Donald Trump was elected with the explicit promise to get the 830,000 barrel per day pipeline from Alberta to Nebraska built, under the conditions that the U.S. would receive a “big, big chunk of the profits, or even ownership rights” and it would be built with American steel; his administration has already flip-flopped on the latter pledge.

*Update: On March 24, 2017, Trump granted Trans Canada the presidential permit required to build Keystone XL, saying: “It’s going to be an incredible pipeline, the greatest technology known to man, or woman.”

So is Keystone XL going to be built? Not so fast. Here are three key reasons why it may never become a reality.

Pages

Subscribe to Keystone XL