Category Archives: Alberta Canada

Photo essay: Tar-sands Country, Alberta, Canada

Repost from MSNBC
[Editor: This is a beautifully written and photographed documentary of the Alberta, Canada communities suffering under the grab for tar-sands bitumen, which Valero admits could allowably be part of its crude-by-rail import “mix” (in its diluted form, known as “dilbit”).  Read below, and click on the photo to see the photo essay.  -RS]

How Fort McMurray became an energy industry gold mine

By Olivia Kestin and Ned Resnikoff

Photo essay
Photos by Philippe Brault/Agence VU/Pictures from “Fort McMoney” directed by David DufresneyHighway 63 in North Alberta, Dec. 16, 2012. In the winter the road becomes entirely ice. It is called the "the highway of death" because the traffic is heavy and car crashes are deadly. On this road, approximately 150 miles north of Fort McMurray is Fort Chipewyan, one of the oldest communities in the area and home to native groups in North Alberta.

Whether you see it as the key to energy independence or the next step toward environmental catastrophe, tar sands oil’s transformative power cannot be denied. And nowhere is that power felt with more bracing immediacy than in the shale oil boomtowns.

Fort McMurray, in Alberta, Canada, is one such town. Once a sleepy rural village with a population of barely 2,500, “Fort Mac” now has 100,000 residents, many of whom work in the energy industry. The change began in 1967, when Suncor (then known as Sun Company of Canada) finished construction of its Fort McMurray oil sands plant. Since then, the town has practically lived and breathed black gold.

Today, Alberta exports over one million barrels of oil per day to the United States, and the energy industry accounts for over one quarter of the province’s GDP. The Keystone oil pipeline, currently the subject of a heated political battle in the United States, is just one of many pipelines which shuttle those millions of barrels into the United States around the clock. Even if President Obama acquiesces to the demands of environmental activists and blocks the Keystone XL pipeline extension, the blow would barely dent U.S. reliance on Alberta’s rapidly expanding tar sands operation. Fort McMurray, which rests atop the fruitful Athabasca tar sands deposit, is at the center of the boom.

That operation has done wonders for Fort McMurray’s economy, but that’s not all it has done. Tar sands oil is an especially hazardous fossil fuel, producing an estimated 12% more emissions than regular crude oil. Alberta health officials have confirmed that the cancer rate near oil sands is higher than expected, but the vice president of Alberta Health Services says there is “no cause for alarm.” Fishers have repeatedly found deformed fish in Lake Athabasca, near the oil sands.

Photojournalist Philippe Brault traveled to Fort McMurray to witness up close how the oil energy has reshaped nature and society there. His photographs document everyday life in the heart of an energy industry gold mine.

Brault’s photos are featured in the interactive web documentary, “Fort McMoney,” directed by David Dufresne and produced by Toxa, Arte, and the ONF (Canada). The multimedia series is an innovative part game part documentary where players step into the world of Fort McMurray.

Increasing Canadian Opposition To Big Oil Pipelines

Repost from HuffPost Alberta

What’s Behind The Rising Opposition To Canada’s Big Oil Pipelines

CBC | Posted: 04/29/2014

High-stakes oil pipeline projects have taken a public lashing lately, whether in a plebiscite in British Columbia, more protests in Washington, D.C., or from a former U.S. president and several Nobel laureates coming out strongly against billion-dollar plans to move the diluted  bitumen from Alberta’s oil sands to international markets.

The anti-pipeline pressure has been mounting for a while, but observers say that the ramped-up opposition to the Northern Gateway and Keystone XL proposals is no coincidence.

Rather, the turmoil is a result of a confluence of issues ranging from deep-seated environmentalism and concern about climate change to the aggressive tactics of energy companies and governments that want to see the pipes in the ground sooner than later.

Toss in some politics — midterm elections in the U.S. this fall, and anticipation of the federal decision on Enbridge’s $5.5-billion Northern Gateway project within a few weeks — and conditions have become ripe for ever more public push-back.

“I certainly don’t see any chance of the opposition receding,” says Michael Byers, a political science professor at the University of British Columbia who holds a Canada Research Chair in global politics and international law.

On the West Coast, in particular, he says, the roots of protest run deep.

In the psyche

“People in the rest of Canada need to understand the environmental movement was born in British Columbia, and it has a deep history here and is very wide-reaching,” says Byers.

“It’s almost part of the collective psyche here on the West Coast and that’s something that Enbridge clearly did not understand, and that the Harper government at least for its first four or five years did not understand.

“And when you add that to the unextinguished aboriginal rights, and the lack of appropriate consultation that took place, you have almost a perfect storm for opposition to pipelines.”

In Kitimat, B.C., the coastal community that would serve as the endpoint of Northern Gateway, and the place where supertankers would fill up with Alberta bitumen, residents recently voted “No” to the project.

The plebiscite isn’t binding on anyone, but it sent a signal, and left Enbridge with another reminder it might have done things differently in the early days of the project.

“Something we’ve certainly learned is that we definitely needed an earlier, stronger presence on the ground,” says John Carruthers, president of Northern Gateway Pipelines.

“We have had an office in Kitimat since 2008, but I think the key is you have to be there early and you have to be there often to work with people and build trust and provide information about what we are doing to address the concerns.”

Changing the route

Carruthers says the company has won support in instances where it has sat down, talked with people and come up with solutions for particular issues such as river crossings.

“We made a number of changes to the route based on public input.”

Responding to concerns from aboriginal groups, Enbridge revised 24 crossings, including for the Pembina, Athabasca, Smoky and Murray rivers, according to the joint panel review for the project.

Carruthers says that between 2009 and 2013, there were “tens of thousands of exchanges with stakeholders through face-to-face meetings, coffee chats, presentations, public forums, technical meetings, community meetings, Community Advisory Boards, blogs, social media sites, receptions, community investment events, emails, telephone calls, letters, advertisements and website postings.”

Enbridge’s approach to working with communities is an “evolving process,”  he says. “It doesn’t stop with the plebiscite. It doesn’t stop with the joint review panel recommendation, or even the decision by the federal government.

“It’s ongoing, so there will be continued consultation, discussions, all the way through the process.”

However, Byers says there was a lack of serious consultation by Enbridge with the coastal First Nations in the early going, and that “is a mistake that both Enbridge and the Harper government must rue to this day. Essentially that failure to take aboriginal rights seriously in those early years I think created a situation today where the project cannot proceed.”

He sees “more sensitivity” being shown around discussions of Kinder Morgan’s Trans Mountain project to expand capacity of an existing pipeline running from Alberta through the Fraser Valley to Burnaby, B.C.

“Kinder Morgan has made a significant public outreach effort. The Harper government has not weighed in with the same degree of passion and divisiveness that it did on Northern Gateway.”

Another Exxon Valdez?

As Byers sees it, the big issue of climate change figures prominently in this debate, particularly for environmentalists. “But for the person on the street, the concern is about a repeat of the Exxon Valdez.”

“That oil spell happened just north of Kitimat on the southwestern coast of Alaska and people here look at the fact that oil continues to be found along the Alaskan coastline from that spill more than two decades later.”

For his part, Byers sees some distinction between the kind of opposition that these pipeline projects in B.C. have garnered with that exerted on TransCanada’s $7.6-billion US Keystone XL project, which would pipe Alberta bitumen to the Texan Gulf Coast. “With Keystone XL, the debate is mostly about climate.”

A presidential decision on Keystone XL has been delayed again, and won’t likely come until after the Nov. 4 midterm elections, which some are seeing as a win for its opponents.

For environmental groups that want fossil fuel production to stop, “slowing down crude infrastructure is actually one of the politically easiest targets,” says James Coleman, an assistant professor in the University of Calgary’s faculty of law and Haskayne School of Business.

Coleman sees a “dramatic” increase in the push-back against pipelines, something he attributes to several factors, including increased pressure for climate regulation, along with a desire for increased to “takeaway capacity” from Alberta because of the increased production there.

Times change

“People sometimes forget Keystone XL is just the second part. There was an original Keystone pipeline that was approved in the U.S. in 2008 and was defended by President [Barack] Obama’s administration,” says Coleman.

“But the dramatic thing is that pipeline was approved with no consideration at all of the climate effects of increased oil production.”

Now, a few years later, he notes, there’s a section of the U.S. environmental impact statement on Keystone XL devoted to the greenhouse gas output of increased oilsands production, and President Barack Obama says the key factor determining the project’s fate is whether it’s going to increase greenhouse gas emissions because of increased oilsands production.

“It’s all about climate change. It’s not the pipe itself,” says Richard Dixon, executive director of  the centre for applied business research in energy and the environment at the University of Alberta in Edmonton.

“The issue is what’s going through the pipe,” he says, and how that has become a symbol of dealing with climate change.

“It’s not about the amount of emissions. I mean, we’re one-10th of one per cent of world emissions. It’s negligible.”

Finding the weak link

Dixon says the opposition to pipelines has become more organized, and that more environmental groups are involved. Environmentalists have also identified the “weak link” energy companies have in their efforts to be sustainable: access to markets.

“So they’ve focused on that and as they’ve gained more and more strength, they’re able to then focus on the issue of climate change.”

That was the focus of a letter signed by former U.S. president Jimmy Carter and a group of Nobel laureates who urged Obama to reject Keystone XL.

The letter sent earlier this month says the president’s decision will either signal a “dangerous commitment” to the status quo, or “bold leadership” that will inspire millions counting on him to do the right thing for the climate.

Dixon argues, though, that “if the goal of the environmentalists is to get us off oil, in fact, it’s doing the opposite,” as the public opposition is prompting energy companies to improve pipeline technology.

“It will make sure that our pipelines are safe so that you can’t really complain about them. So that’s the irony of it — that it will improve pipeline technology. Quite an irony actually.”

Neil Young: “We need to end the fossil fuel age”

Repost from Democracy Now!
[Editor: Our struggle here in Benicia, California is in many ways a “NOT IN MY BACKYARD” fight.  But our work is incredibly important to those whose backyards, front doors, ranches and open spaces are located uprail from here.  We are called upon to STOP crude by rail on behalf of those  who live near the tar-sands mining operations in Canada and the fracked shale fields in North Dakota and Montana.  Listen as Neil Young speaks from the heart.  – RS]

“We Need to End the Fossil Fuel Age”: Music Legend Neil Young Protests Keystone XL Oil Pipeline

29 April 2014  |  By Amy Goodman, Democracy Now!

NBC report: If Keystone Pipeline is not built: more oil by rail

Repost from NBC News

What Happens if the Keystone XL Pipeline Isn’t Built?

By Lisa Riordan Seville

After five years, it appears the Obama administration will soon issue a decision on whether to build the long-delayed and controversial Keystone XL oil pipeline, which would cross an environmentally sensitive area of the Great Plains and move nearly a million barrels of oil a day to Gulf Coast refineries.

Backers of the project say it would stimulate the U.S. economy and enhance energy security, stressing that a new pipeline is the cheapest, safest way to transport dirty tar-sands crude from Canada’s booming oil fields to U.S. refineries.

Environmentalists, who earlier this month chained themselves to the White House fence in protest, counter that it would endanger the water supply in several states and exacerbate climate change. They want to stop or slow the exploitation of an energy source the Sierra Club calls “the most toxic fossil fuel on the planet.”

Graphic: TransCanada's Keystone pipelines  
Reuters

But what happens if, after all the shouting, the pipeline isn’t built? NBC News consulted with experts on both sides of the debate to provide some possible answers about the impact on the environment, the economy and the global oil supply.

“We don’t think there’s any way that the oil will stay in the ground,” said Matt Letourneau, a spokesperson for the U.S. Chamber of Commerce’s Institute for 21st Century Energy. “Certainly the market will find a way.”

More oil moves by rail. Will more spill?

As oil production has surged in North Dakota’s Bakken region and Alberta’s oil patch, the volume of oil moved by rail has increased exponentially. With the rapid growth of “crude by rail” has come a series of derailments, some involving explosions and one, in Lac Megantic, Que., resulting in nearly 50 fatalities.

The crude from Canada, far less flammable than that from the Bakken, is unlikely to explode. But the tar-like oil does present major cleanup problems if it spills, particularly in water.

Without Keystone XL, more crude will likely move by rail both to Canada’s Atlantic and Pacific coasts and down into the U.S.

Last month the State Department released an environmental impact statement predicting three possible scenarios if the President decides to block the pipeline. All three point to more crude by rail. The oil would either 1) move to Oklahoma by train before being shipped by existing pipelines, 2) ship by rail to British Columbia before being loaded on tankers, or 3) travel directly by rail from Alberta to the Gulf.

In addition to the potential for derailments, shipping oil by rail is more expensive than moving it via pipeline, which could add to the end cost for consumers. Regardless, some companies are already moving forward with rail transport expansion, independent of Keystone’s fate. About 16 different rail terminal projects have been announced in Canada and the U.S., with the potential to move about 1.5 times as much oil as the projected volume for Keystone XL.

So far, rail shipment of Canadian crude isn’t expanding as quickly as expected. A recent analysis by Reuters found rail shipments of Canadian crude to the Gulf Coast were 40,000 barrels per day in 2013, far below industry projections of 200,000 barrels per day by the end of 2013. Statistics obtained by Reuters from Canada’s National Energy Board indicated deliveries to the Gulf Coast may have now reached 57,000 barrels per day, still short of projections.

Image: The proposed termination point for the Enbridge Northern Gateway Project  
Darryl Dyck / AP file 
The Douglas Channel, the proposed termination point for an oil pipeline in the Enbridge Northern Gateway Project at Kitamaat, British Columbia, Canada, Jan. 2012. The fear of oil spills is especially acute in this pristine corner of northwest British Columbia, with its snowcapped mountains and deep ocean inlets.

New Pipelines – But Not in the U.S.

As the Keystone XL project has languished, pipeline companies have proposed a number of other projects to move oil out of Alberta, most of them entirely on Canadian soil.

TransCanada, the company that wants to build Keystone XL, recently took the first step in the approval process for a different pipeline, a massive project that would snake nearly 2,800 miles from Alberta to Eastern Canada. “Energy East” would transport a whopping 1.1 million barrels of crude a day to refineries in Quebec and terminals on the Atlantic coast.

The next largest project, Kinder Morgan’s proposed TransMountain pipeline, would carry about 890,000 barrels a day in the other direction to the coast of British Columbia.

Enbridge, another major Canadian pipeline company, has two projects in the works — the Northern Gateway, which would send 520,000 barrels a day to the coast of British Columbia, and its Line 3 replacement, which could move 760,000 barrels a day from Canada into Wisconsin. Because Line 3 would replace an existing cross-border pipeline, the company argues it would not need the presidential permit that has held up Keystone XL.

If all the projects are approved, more than 4.1 million barrels of oil could flow through Canada by 2018. But the projects could be delayed by opposition from some of Canada’s aboriginal “First Nation” communities. Several proposed routes would cross aboriginal land. Canadian law gives them the leverage to block or redirect the projects, and some groups have already said they intend to fight.

Click here to see a map with all proposed pipelines to the Atlantic, Pacific, Gulf Coast and Great Lakes.

Oil Goes to China

If approved, the alternative pipelines could provide slower, more circuitous routes to America’s Gulf Coast refineries. They could also provide more direct routes to other markets, like those burgeoning in China and India.

Much of the crude that would have been refined in Gulf Coast refineries would have then been shipped to end users in Asia. But cutting out the U.S. middleman could mean more crude going straight to Asia – and new refineries in Asian countries to process it.

The threat of cheap crude slipping through America’s fingers to China has become a key talking point for pipeline advocates. Bill Day, a spokesman for the oil company Valero, which operates a Port Arthur, Tex. refinery that would receive oil via Keystone XL said that this could mean costs to the environment as well as the American economy.

“It’s going to come out of the ground, it’s going to get processed,” said Day. “We think it would probably be better to be processed here under our environmental rules rather than China.”

China’s state-owned companies have already invested heavily in Alberta’s oil sands. In 2012, Asian firms sunk nearly $30 billion in the area. Investments slowed last year after Canada changed some rules governing foreign investment, and after the Chinese companies already on the ground encountered roadblocks building pipelines. But investments are expect to climb again this year.

Image: A protest against the proposed Keystone XL oil pipeline  
Manuel Balce Ceneta / AP file 
Demonstrators lie down along Pennsylvania Ave. in front of the White House during a protest against the proposed Keystone XL oil pipeline, March 2. The protestors say the pipeline would contribute to global warming.

The Environmentalists Get What They Want – Sort of

Environmentalists want to delay or prevent the pipeline because doing so, they believe, will delay or prevent the extraction of Canadian tar-sands oil, estimated to be the world’s third-largest oil reserve. They’d prefer that the U.S. focus on alternative energies instead of searching for new sources of fossil fuel.

They also have a particular dislike for tar-sands oil, which is dirtier and heavier than other crude. When it spills it sinks in water and is hard to clean up. The Keystone XL pipeline would ship this dirty, heavy oil over one of the largest supplies of underground fresh water in America, Nebraska’s Ogallala Aquifer.

Opponents of Keystone are right, in part, to think that blocking it will slow down production. Without the pipeline, the supply of oil has so far exceeded the oil companies’ capacity to ship it out of land-locked Alberta to its largest market — the U.S.

The glut has driven down prices, making development in the region less attractive. A pipeline would not only make shipping faster and easier, it would lower the cost of transport, making the product still more attractive to customers.

“Industry plans to triple tar sands production over the next 20 years, and they simply will not be able to do it without pipeline capacity,” said Anthony Swift, an attorney with the National Resources Defense Council, a vocal opponent of the project. “We’re seeing projects begin to get cancelled as it becomes apparent that pipelines aren’t coming in as quickly as industry expected.”

But even without the pipeline, and with the cancelled projects, production is rising. A market assessment by Canada’s National Energy Board released in November estimated that Canadian crude production is on track to soar to nearly 6 million barrels per day — thanks in large part to oil coming from the sticky sands that have become the symbol of the debate over the energy future of North America.