A busy week in the future of oil in America will culminate in the largest anti-tar sands event ever to take place in the Midwest on Saturday along the banks of the Mississippi River, organizers say.
The Tar Sands Resistance March will start at Lambert Landing in St. Paul at 10 a.m. Saturday and will proceed to the State Capitol lawn, where a rally and concert will be held. Event organizer Andy Pearson of environmental group MN350 said he expects the event to draw thousands of protesters, including busloads of people from places as far as Nebraska and Ohio.
The event will begin with a water ceremony by Native American performers, with the march beginning at noon. After reaching the Capitol grounds, more than a dozen speakers will address the crowd, including speeches from Rep. Keith Ellison, D-Minn., and Winona LaDuke of Honor the Earth.
On Tuesday, Pearson was joined by MN350 founder Bill McKibben, Indigenous Environmental Network executive director Tom Goldtooth and Michael Brune, executive director of the Sierra Club, on a press conference call with national media to talk about the event, which hopes to highlight the potential environmental threats proposed pipeline expansions pose to northern Minnesota and the country.
In a stunning and laudable reversal, New York's Department of Environmental Conservation (DEC) has required Global Partners' Port of Albany air permit application to undergo a full environmental review. Global's air permit application is part of its plans to retrofit its existing Port of Albany crude-by-rail facility to allow it to begin handling tar sands crude oil from Alberta, Canada. The tar sands retrofit would require Global to install seven boilers that would be used to keep the tar sands warm as it is moved from rail cars into storage tanks. Eventually, this oil would be loaded onto barges and shipped down the Hudson River, destined for refineries in New Jersey, Delaware, and the Gulf Coast. Following receipt of 19,000 public comments and concerns from the U.S. Environmental Protection Agency, DEC has reversed its November 2013 finding that Global's proposed project would "not have a significant environmental impact." As one of the world's most carbon-intensive crude oils whose production is laying waste to Alberta's boreal forest, the DEC's November 2013 finding flew in the face of what is known about the environmental impacts of adding tar sands oil to our fuel mix. What's worse, infrastructure like Global's proposed modifications would lock the region into at least 50 years of tar sands transport and use at a time when the region needs to transition to cleaner fuels, especially for transportation. Moving forward, DEC must seriously consider the cumulative and long-term impacts of approving this project on both Albany and the broader region.
While the threat of a broader and larger tar sands invasion of the U.S. continues to loom over our communities, waterways, air, and climate, the DEC's decision is a significant roadblock in the tar sands industry's expansion plans. With refineries in New Jersey and Delaware already configured to refine tar sands crude oil, the industry has long eyed the Port of Albany as a gateway to dramatically increasing the quantity of tar sands refined on the East Coast. Now, because of the DEC's decision and the recent two-year delay for TransCanada's Energy East tar sands pipeline, there is hope that the Northeast will continue to remain mostly tar sands free into the foreseeable future. This gives local, state, and federal decision-makers time to take action to prevent a tar sands invasion and lay the groundwork for an alternative energy future.
Canada is expected to miss its 2020 Copenhagen obligations by a wide margin -- mostly due to increased tar sands expansion. As of 2014, Canada is only expected to meet half of its Copenhagen pledge to reduce greenhouse gas emissions 17 percent below 2005 levels by 2020. Even worse, Canada's emissions are increasing, and it is now expected to miss its 2020 goal by an amount that is more than the combined carbon pollution of every passenger car, truck, bus, train and plane in the country (127 MtCO2e). Looking ahead, Canada is on a path to increasing emissions through 2030, due largely to the expansion of its tar sands industry.
Tar Sands: While emissions from conventional crude oil production and natural gas production and processing are expected to fall by 2020, tar sands emissions are growing rapidly and are expected to continue to do so (See Figure 1). By 2020, tar sands emissions are expected to be nearly three times the level in 2005 according to the Government of Canada's Sixth National Report on Climate Change, (2014).
Although the Canadian government announced a series of new measures as part of its post-2020 targets, it still failed to address the largest source of emissions, tar sands. Historically, the Canadian government has not followed through with its promises to address this troubling growth in tar sands emissions. Instead, the Canadian government has aggressively promoted unchecked tar sands expansion. The expanding tar sands industry bears heavy responsibility for Canada's failure to meet its international climate commitments.
Rather than addressing the growing carbon emissions from its tar sands sector, the government has as discussed in this backgrounder actively facilitated tar sands expansion by eliminating environmental protections, stripping away public review processes, lobbying internationally for approval of new tar sands pipelines, and undermining clean energy policies in Canada, the United States, and the European Union.
Alberta’s oil sands producers have suffered another hit to their reputation, as a group of prominent scientists and academics called for a moratorium on further development due to environmental concerns.
Decisions on oil sands development “add up to a social and environmental legacy that will last for generations,” Simon Fraser University ecologist Wendy Palen said on a conference call Wednesday. Ms. Palen said the group pulled together scientific research on oil sands development from their various fields and reached a consensus: “We offer a unified voice, calling for a moratorium on new oil sands projects.”
In a statement signed by 110 researchers from across North America, the group says the planned growth in oil sands production is inconsistent with efforts to cut greenhouse-gas emissions and avert the worst impacts of climate change, and also threatens the ecosystem of a vast stretch of the boreal forest.
“No new oil sands or related infrastructure projects should proceed unless consistent with an implemented plan to rapidly reduce carbon pollution, safeguard biodiversity, protect human health and respect [aboriginal] treaty rights,” their statement said.
Imagine a Canada with an abundance of nature and wildlife, clean air and water, healthy citizens, and a prosperous economy. Sounds close to what we have, doesn't it? But it may not be for long if we keep heading down the road we're on.
Author Andrew Nikiforuk has argued that Canada is becoming a petro-state. "Without long-term planning and policies, Canada and Alberta will fail to secure reliable energy supplies for Canadians, to develop alternative energy sources for the country, or to create valuable resource funds for the future," he writes in his best-selling book Tar Sands: Dirty Oil and the Future of a Continent. Because of the response of Alberta to Pierre Trudeau's National Energy Plan, Canada doesn't even have a national energy plan.
The reality is that our government is putting all its eggs in one basket, relying on the tar sands to fuel the economy. And although the government has at least come around to acknowledging that global warming is a problem, it hasn't acted as if it's a problem worthy of much attention. Its energy and environmental policies show that it is willing to let the economics of the fossil fuel industry trump concern for our common future.
This ongoing failure on the part of those elected to serve our interests is bad from both an environmental and an economic standpoint. A briefing note prepared for Natural Resources Minister Lisa Raitt last fall and recently obtained by Canadian Press warns that a lack of clarity and certainty regarding the government's climate change policies is jeopardizing investment in Canada's energy sector. The government promised new regulations more than two years ago but now says it is "reworking" its plan.
The briefing note says the government should have policies that facilitate investment in green equipment, buildings, and infrastructure.
Cog wrote:Once the liberals in Canada get done destroying the oil industry, I guess the unemployed can go back to providing guide service for polar bear hunts.
The Canadian Press wrote:The National Energy Board has recommended that the federal government approve the contentious $6.8-billion Trans Mountain pipeline expansion with 157 conditions.
The federal regulator has issued its long-awaited report on the project after a two-year debate that cost millions, galvanized aboriginal and environmental protests and prompted mass arrests.
A three-member review panel recommended Ottawa approve Kinder Morgan Canada’s proposal to triple the capacity of the pipeline, which carries crude from oilsands near Edmonton to Burnaby, B.C.
But Kinder Morgan will first have to address 157 engineering, safety, environmental and emergency preparedness conditions.
The positive recommendation has cleared a major hurdle for the project, with Prime Minister Justin Trudeau’s cabinet set to make a final decision by the end of the year.
There was fierce opposition to the project and the process throughout the energy board’s hearing, with the British Columbia government and cities of Vancouver and Burnaby opposing the expansion.
Alfred Tennyson wrote:We are not now that strength which in old days
Moved earth and heaven, that which we are, we are;
One equal temper of heroic hearts,
Made weak by time and fate, but strong in will
To strive, to seek, to find, and not to yield.
CALGARY — Analysts say lost oilsands production from the Fort McMurray wildfires could top 30 million barrels and cost the industry upwards of $1.4 billion.
Some of the largest oilsands producers in the province were forced to shut down or curtail operations last month as 80,000 residents of Fort McMurray evacuated the city to escape the fierce blaze, which has yet to be extinguished.
Damage to oilsands projects was minimal but Calgary-based analysts say restarting operations is taking longer than expected.
Analyst Martin King of FirstEnergy Capital estimates the industry’s production loss at $1.4 billion, while Nick Lupick, an analyst for AltaCorp Capital, puts the value of the losses so far at almost $1.6 billion. Both said Wednesday that they expect their numbers to grow.
“It sounds like there have been some pipeline clogging issues on some of these projects,” said King. “I guess when the bitumen cooled it hardened and so they’re having trouble getting stuff down these pipes right now.”
King said his wildfire cost estimate is based on a production loss of about 37 million barrels, about half in the form of raw bitumen, which must be mixed with light oil to facilitate flow in a pipeline. The other half is much more valuable synthetic crude.
Lupick said he based his calculation on lost production of about 28 million barrels but with a higher proportion in the form of synthetic crude, which commands prices similar to West Texas Intermediate oil, thus delivering the higher dollar figure.
“Based on an outage of three weeks during the fires on average for all of the affected projects, the total lost revenue works out to be roughly $1.6 billion,” he said. “Made up of roughly $1.05 billion of SCO and $550 million of bitumen revenue.”
He said he expects the final production loss to grow beyond 30 million barrels because of delays in restarting projects and the fact that Syncrude Canada must complete a maintenance turnaround at its upgrader before returning to normal operations.
Lupick estimated Suncor Energy (TSX:SU) has lost about 21 million barrels of output from its own oilsands operations as well as from Syncrude, in which it has a majority stake.
Those barrels would have been worth about $700 million, he said, adding an outage at Suncor’s Edmonton refinery that caused gasoline shortages in Western Canada would take the loss to about $800 million.
Lupick said other costs of restarting production could easily inflate Suncor’s total losses to nearly $1 billion.
In a recent report to investors, analyst Paul Cheng of Barclays said about half of the one million barrels per day of production interrupted by the fire has been restored.
“By the end of June, we estimate the majority of production would be back online, with about 300,000 bpd still ramping up or undergoing planned turnarounds, and operations basically back to normal by mid to end of July, assuming no new shut-ins from ongoing fires,” he wrote.
Alfred Tennyson wrote:We are not now that strength which in old days
Moved earth and heaven, that which we are, we are;
One equal temper of heroic hearts,
Made weak by time and fate, but strong in will
To strive, to seek, to find, and not to yield.
Clogged Pipeline Delays Restart of Suncor's MacKay River Facility -Source
June 15 (Reuters) - An Enbridge Inc pipeline connected to Suncor Energy Inc's MacKay River oil sands facility near Fort McMurray, Alberta, has clogged after heavy oil cooled in the system, prolonging a shutdown of the site, three sources familiar with the matter said on Wednesday.
Norwegian oil giant Statoil said Thursday it was exiting its oil sands projects in Canada, booking a loss, in a move hailed by environmental activists.
The group said it had reached an agreement to sell its 100-percent stake in the Kai Kos Dehseh (KKD) oil sands projects in the province of Alberta, to the Athabasca Oil Corporation of Canada for Can$832 million ($626 million, 597 million euros).
Included in the sale was a 24,000 barrels per day thermal oil project along with other oil leases and related strategic infrastructure.
Following the divestment, Statoil will not operate any oil sands projects, a business area the deepwater oil specialist had moved into to great dismay of analysts.
Statoil will take a loss of between $500 and $550 million on the deal.
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