Tag Archives: Enbridge

Valero will soon have fifth refinery processing 100 percent North American crude

Repost from the San Antonio Business Journal
[Editor: Note brief reference to Valero’s Benicia Refinery at end of this article.   – RS]

Valero will soon have fifth refinery processing 100 percent North American crude

By Sergio Chapa, Sep 11, 2015, 6:44pm CDT
File photo Valero Energy Corporation's Jean Gaulin Refinery in Quebec City
File photo – Valero Energy Corporation’s Jean Gaulin Refinery in Quebec City

San Antonio-based Valero Energy Corp. is expected to have its fifth refinery capable of processing nothing but North American crude by the end of the year.

Valero (NYSE: VLO) revealed in an investors’ presentation released earlier this week that its Jean Gaulin Refinery in Quebec will be processing 100 percent North American crude oil by the end of the year.

Company figures show that the refinery was 100 percent dependent on foreign crude oil in first quarter 2013, but production from the tar sands region of Canada and the shale plays of the United States has dramatically changed the situation.

The Jean Gaulin Refinery is processing about 80 percent North American-sourced crude oil but will be at 100 percent once a project to modify the Enbridge Line 9B Pipeline is completed in the fourth quarter. The project will reverse the flow of the pipeline to enable oil from the tar sands region of Alberta to flow east to Valero’s refinery in Quebec.

Most refineries were built decades ago and were configured to process to Middle Eastern oil, but Valero spokesman Bill Day told the San Antonio Business Journal that the Jean Gaulin Refinery is lined up to be the fifth of the company’s refinery capable of processing 100 percent North American crude oil.

Day said Valero’s Ardmore, McKee, Memphis and Three Rivers refineries can already process 100 percent North American crude oil, while other plants are processing an increasing amount of North American crude.

The investors presentation shows that Valero is expanding its capacity to process a total of 185,000 barrels per day of light sweet crude from the Eagle Ford and other shale plays at the company’s McKee, Houston and Corpus Christi refineries in Texas.

Day said that the addition of the Keystone XL Pipeline would enable Valero to replace foreign heavy crude with heavy crude from Canada. He also noted that a proposed rail terminal at the company’s Benicia refinery in California, would enable Valero to offset foreign crude brought in by ship with North American crude brought in by rail.

Kalamazoo River 5 years later – still cleaning it up

Repost from OnEarth Magazine, Natural Resources Defense Council
[Editor:  Significant quote: “The Kalamazoo River still isn’t clean.  Let’s not forget how much it cost to (not completely) clean the Kalamazoo. The current price tag is $1.21 billion (and rising), making it the most expensive onshore oil spill in U.S. history.”  – RS]

Remember the Kalamazoo

Five years ago, a pipeline spilled a million gallons of tar sands crude into a Michigan river—and we’re still cleaning it up.
By Brian Palmer, July 22, 2015
Skimmers, like these used to clean up the Deepwater Horizon spill, were useless in Kalamazoo, where the tar sands crude sank to the bottom. Photo: NOAA

Five years ago, in the middle of the night, an oil pipeline operated by Enbridge ruptured outside of Marshall, Michigan. It took more than 17 hours before the Canadian company finally cut off the flow, but by then, more than a million gallons of tar sands crude had oozed into Talmadge Creek. The oil quickly flowed into the Kalamazoo River, forcing dozens of families to evacuate their homes. Oil spills of that magnitude are always disastrous, but the Kalamazoo event was historically damaging.

The first challenge was the composition of the oil. Fresh tar sands crude looks more like dirt than conventional crude—it’s far too thick to travel through a pipeline.

Try pumping this through a pipeline. Photo: Suncor

To get this crumbly mess to flow, producers thin it out with the liquid constituents of natural gas. Diluted bitumen, or dilbit, as it’s called in the tar sands industry, is approximately three parts tar sands crude, one part natural gas liquids.

When dilbit gushed into Talmadge Creek in 2010, the mixture broke apart. The volatile natural gas liquids vaporized and wafted into the surrounding neighborhoods. The airborne chemicals were so difficult to find and eliminate that Enbridge decided it would be better to simply buy some of the homes that were evacuated, preventing the residents from ever returning.

The tar sands oil, which stayed in the water, presented an even bigger chemistry problem. Most forms of oil, including conventional crude, are less dense than water. That’s why oil makes such pretty colors when dropped into a rain puddle—it floats and plays tricks with the sunlight. Traditional oil spill cleanup technology relies heavily on this density relationship. Skimmers and vacuums remove it from the surface. Floating booms prevent surface-level oil from moving into environmentally sensitive areas.

Tar sands crude behaves differently. “Tar sands bitumen is a low-grade, heavy substance,” says Anthony Swift, director of NRDC’s Canada Project (disclosure). “Unlike conventional crude, when bitumen is released into a water body, it sinks.” (See “Sink or Skim,” onEarth’s infographic on why tar sands oil is more difficult to clean up than conventional crude.)

Skimmers, like these used to clean up the Deepwater Horizon spill, were useless in Kalamazoo, where the tar sands crude sank to the bottom. Photo: NOAA

Put simply, the spilled dilbit traveled in every direction—into the air, with the current, to the bottom of the river—at the same time. The U.S. Environmental Protection Agency’s indisputably naïve response reveals how little anyone knew about tar sands crude. The EPA demanded that Enbridge remove the oil from wetlands surrounding the pipe by August 27, a little more than one month after the spill began. The agency wanted the stuff out of the creek, river, and shorelines by the September 27. Those deadlines would have been practical for a typical spill—but not for a tar sands oil spill. A half-decade later, some of the oil still remains—though, much of that has to do with Enbridge botching the cleanup effort (see onEarth’s three-part series, “The Whistleblower”).

Enbridge’s bungling began even before the spill. First, the company knew the pipeline was vulnerable by 2005, if not earlier. When the rupture finally came in July 2010, operators dismissed the alarms as a malfunction of the system for 17 hours before finally accepting that the pipeline had failed. Making things worse, six hours after Calhoun County residents were complaining to 911 about the smell of oil, Enbridge employees were still trying to fix the problem by pumping additional oil into the pipeline. In its review of the accident, the National Transportation Safety Board faulted Enbridge’s “culture of deviance” for what happened, pointing out that the response team in the first hours consisted of four local pipeline maintenance employees who were inadequately trained and made a series of bad decisions.

Not only did Enbridge fail to make the EPA’s initial cleanup deadline, it also blew through a series of fallback deadlines across more than four years. Not until late 2014 did the agency finally sign off on the remediation effort, handing the remaining responsibilities to the Michigan Department of Environmental Quality.

As the cleanup winds down, though, there is little cause for celebration. “The Kalamazoo River still isn’t clean,” says Swift. “The EPA reached a point where additional cleanup might do more harm than good. Much of the river is still contaminated.”

Some local residents accuse the company of overstating its progress. “In the process of beautifying everything and giving money to everybody and making everybody feel good about it, they’re not really telling people about the dangers still there in that water,” says Linda L. Cypret-Kilbourne of Michigan’s Potawatomi tribe.

It’s not clear when the river will go back to pre-spill quality. After conventional oil spills, crews eventually back off and allow microbes to break down the last bits of crude. That approach isn’t a good option in Kalamazoo. First, the area doesn’t have a large natural population of oil-eating microbes like the Gulf of Mexico has. In addition, tar sands crude contains very high levels of heavy metals, which don’t break down easily.

Let’s not forget how much it cost to (not completely) clean the Kalamazoo. The current price tag is $1.21 billion (and rising), making it the most expensive onshore oil spill in U.S. history.

The Kalamazoo River still isn’t clean. The EPA reached a point where additional cleanup might do more harm than good. Much of the river is still contaminated.

It’s tempting to dismiss the slow, botched, expensive, and still-unfinished cleanup as growing pains. Tar sands imports have risen significantly since 2010, as has public awareness of the difference between the Canadian crude and the conventional product. In the five years since the incident, we should have improved tar sands oil spill response. But we didn’t.

If another Enbridge spill were to happen tomorrow, the company might respond more quickly, but huge volumes of heavy tar sands crude would still pour out of the pipeline. David Holtz of the Michigan chapter of the Sierra Club told reporters that a rupture in Enbridge Line 5, another pipeline that runs through Michigan, would be disastrous.

“If they hit the shutoff valve immediately after a rupture, there would still be more than 650,000 gallons of oil spilled into the Great Lakes,” he said.

Cleaning it up would be as challenging today as it was five years ago. There have been no technological breakthroughs since 2010. The tar sands industry should accept a large portion of the blame for this stasis.

“The efforts to improve spill response have been caught up in a public relations war,” says Swift. “The tar sands industry wants you to believe that oil is oil, and that its product involves no heightened concerns. As a result, spill responders are working with largely the same tools today as in 2010.”

Tar sands pipelines—like the one operated by Enbridge, or TransCanada’s proposed Keystone XL pipeline—run for thousands of miles, crisscrossing the United States and Canada in elaborate networks. They entail certain risks, and those risks are not going away. We have to decide how to respond. If we accept them, we must work to minimize the consequences by developing the appropriate safety measures and technology. Or we can reject them by eliminating tar sands from our energy infrastructure. The one thing we must not do is to pretend they don’t exist. The Kalamazoo spill is a reminder. It won’t be the last.

 

Cause of biggest oil-related spill on land ever in North America – Nexen Energy, Fort McMurray, Alberta

Repost from Reuters
[Editor:  See also:  Nexen pipeline may have been leaking for over two weeks.  Also: Alberta pipelines: 6 major oil spills in recent history.  – RS]

Nexen says may take months to pinpoint cause of Alberta pipeline spill

By Mike De Souza, Jul 22, 2015 6:40pm EDT

FORT MCMURRAY, Alberta  –  Finding the root cause of the oil-sands pipeline leak discovered earlier this month in northern Alberta, one of the biggest oil-related spills on land ever in North America, will likely take months, a senior Nexen Energy executive said on Wednesday. Nexen, a subsidiary of China’s CNOOC Ltd, is putting a higher priority on cleaning up the spill from its pipeline and investigating its cause than on restarting the Kinosis oil sands project where the spill took place, Ron Bailey, Nexen’s senior vice president of Canadian operations, said during a tour of the site.

Bailey said there were about 130 workers doing clean-up and investigation work at the site.

The leak in the double-layer pipeline spilled more than 31,500 barrels of emulsion, a mixture of bitumen, water and sand, onto an area of about 16,000 square meters (172,000 square feet).

“We’ve actually shut in everything at Kinosis and our priority is not to bring Kinosis back on production,” Bailey said. “We will be focusing on understanding the root cause of any failure here and the reliability of our systems before we ever start up this system again.”

The spill site, south of the oil sands hub of Fort McMurray, was detected on July 15 by a contractor walking along the pipeline route. Nexen has not determined when the leak started or why a new state-of-the-art leak detection system failed.

Bailey said leak likely occurred after June 29, when the pipeline was cleaned with water.

Nexen executives on Wednesday brought journalists to tour the site, which smells like tar, and where the company was using sound cannons to deter birds and other wildlife from becoming entangled in the gooey emulsion.

Nexen Chief Executive Fang Zhi personally apologized for the spill on Wednesday, echoing an apology by the company on Friday.

The Nexen leak was larger than the July 2010 rupture of an Enbridge Inc pipeline that spilled an estimated 20,000 barrels of crude, with some reaching Michigan’s Kalamazoo River.

The Nexen spill dealt another blow to the oil sands industry in Alberta, which is under fire from environmental groups and aboriginal communities for its carbon-intensive production process.

Extracting and processing heavy grade oil from the massive oil sands deposits in the Western Canadian province requires large amounts of energy and water.

(With additional writing by Jeffrey Hodgson; Editing by Peter Galloway)

MN approves Bakken oil pipeline to Lake Superior

Repost from The Capital Journal, Pierre SD

MN approves Bakken oil pipeline to Lake Superior

By Capital Staff and Wire Reports, June 5, 2015 5:08 pm

ST. PAUL — The Minnesota Public Utilities Commission has approved a certificate of need for the proposed Sandpiper pipeline route through northern Minnesota as it goes from North Dakota’s Bakken oil fields to Superior, Wisconsin.

While the PUC agreed 5-0 Friday that the $2.6 billion, 610-mile pipeline – about 300 miles across Minnesota –  is necessary, they didn’t foreclose the possibility of more changes on its proposed path, the Associated Press reported.

The PUC said it still might reroute Enbridge’s proposed route away from environmentally sensitive lakes, streams and wetlands in northern Minnesota. Enbridge Energy will still have to go through a lengthy review of its proposed route and a proposed alternative.

Enbridge says it would like to have it operating in 2017.

The proposed route goes from the oil field near Tioga, N.D., near Williston, to Superior, Wis., where ocean-going vessels can dock just below Duluth on Lake Superior. In North Dakota it follows fairly closely to U.S. Highway 2.

The Minnesota portion would go 75 miles from Grand Forks, N.D., east to the main Enbridge junction at Clearbrook, Minn., with 24-inch pipe with a capacity of 225,000 barrels per day.

Then for a 225-mile leg,  it jogs south to Park Rapids, Minn. – which is on a line east of Fargo –  and then east to Superior with a 30-inch pipeline with a capacity of 375,000 barrels per day, according to Enbridge.

At a capacity of 375,000 barrels a day across Minnesota, the Sandpiper would carry the equivalent of about 525 rail tanker cars, each holding 714 barrels, or about five trains of crude oil, every day.

Enbridge says Sandpiper is needed to move the growing supply of North Dakota crude safely and efficiently to market.

But environmentalists and tribal groups say the risk of leaks is too high.

North Dakota regulators have already approved Sandpiper.

North Dakota produces about 1.2 million barrels of oil per day, about 13 percent of U.S. production; roughly two-thirds of it leaves the state by train.

Recent explosive derailments of oil trains have informed the debate over building new pipelines.