Category Archives: Clean energy

NRDC Attorney: The tar sands invasion that can be stopped

Repost from NRDC Switchboard, Danielle Droitsch’s Blog

The tar sands invasion that can be stopped

Danielle Droitsch
Danielle Droitsch, senior attorney with NRDC, Canada Project Director, International Program.

By Danielle Droitsch, April 28, 2015

Many across the United States are aware of the tar sands threat posed by the proposed Keystone XL pipeline but what many may not know is the U.S. faces a looming threat that is bigger than just this one pipeline. We call it a tar sands invasion. The plan would be to complete a network of pipelines (both new and expanded), supertankers and barges, and a fleet of explosive railway tank cars. What is at risk? San Francisco Bay, Puget Sound, the Great Lakes, the Hudson River and other places we all call home. While the threat of this invasion is already here with the proposed Keystone XL pipeline, the good news is that citizens across North America are rising up to respond and repeal the assault with a clear message: Not by pipeline, not by rail, not by tanker. The good news is that public opposition to tar sands oil is rising and projects like Keystone XL and Northern Gateway have been delayed. The tar sands assault is not inevitable. In fact, the U.S. doesn’t need this dirty form of fuel and neither does Canada. The time has come to limit tar sands expansion in favor of a cleaner and brighter energy future.

Tar Sands Invasion Map 4-27-15.jpg

A new report released by NRDC reveals that the amount of tar sands crude moving into and through the North American West Coast could increase by more than 1.7 million barrels per day if industry proposals for pipelines, tankers and rail facilities move forward. For more information about this new information see posts by my colleagues Anthony Swift and Josh Axelrod. Why the west coast? With the majority of the world’s heavy oil refinery capacity, the United States including the west coast is a critical market for the tar sands industry. To be clear, Keystone XL still remains at the heart of the industry plan to expand tar sands and gain access to the global market. But industry is still pushing hard for other ways to expand especially as KXL flounders. It is important to keep in mind the tar sands industry – which currently produces about 2 million barrels per day (bpd) – plans to triple production to exceed 6 million bpd in the next fifteen years. The oil industry has made clear it needs all of its rail and pipeline proposals to achieve its massive production goals.

We know that the tar sands industry and Canadian government has long had a plan to quadruple or more tar sands extraction in Canada. KXL has always been a huge part of that. But it is now very clear that they also plan to access the U.S. and global market through every means possible.

This threatened invasion puts our communities, waters, air and climate in jeopardy. The Tar Sands Solutions Network has done an outstanding job outlining many of the different campaigns that are emerging across North America. This plan threatens to expose communities from California to New York to health, safety and environmental risks unless the public rallies to stop it. Here are some of the specific impacts that North America faces as a result of the tar sands invasion:

  • Across the West Coast, tar sands laden tanker and barge traffic could increase twenty-five fold, with a projected 2,000 vessels along the Pacific West Coast– including the Salish Sea and the Columbia River–shipping nearly two million barrels of tar sands crude every day.
  • A dozen proposed rail terminals would substantially increase tar sands by rail traffic going through densely populated American citizens like Los Angeles and Albany New York risking explosive derailments of hazardous crude unit trains
  • Nearly a million barrels of tar sands would be destined for California and Washington refineries, exposing fenceline communities in Anacortes, San Francisco and Los Angeles to increasing toxic air pollution.
  • In the Midwest, the pipeline company Enbridge is moving to nearly double the flow of tar sands moving through the Great Lakes region, an area that already has suffered from a 2010 spill of more than 800,000 gallons of the tar sands into the Kalamazoo River in Michigan sending hundreds of residents to the hospital. Four years later, the cleanup, which has cost more than $1 billion, is still unfinished.
  • On the East Coast, the tar sands industry is seeking to build the Energy East pipeline across Canada. The pipeline would run from Alberta east across Canada to New Brunswick and Quebec, carry 1.1 million barrels of tar sands oil per day and require hundreds of oil tankers traveling along the East Coast and Gulf Coast annually, through critical habitat of the extremely endangered Right Whale.
  • In Albany, New York, a proposed oil transfer facility could lead to the shipment of tar sands oil on barges down the Hudson River or rail cars along the river destined for facilities in the New Jersey and Philadelphia areas.
  • In Maine, Vermont, and New Hampshire, the constant threat of a proposed reversal of the aging Portland-Montreal Pipeline is likely to arise again as Enbridge completes work on a pipeline reversal that will connect the tar sands directly to Montreal this summer.
  • This network of pipelines will feed refineries that produce millions of tons of hazardous petroleum coke waste – known as “petcoke” – which are piling up in residential neighborhoods like Chicago.
  • In Canada, pipeline companies are trying to access the west and east costs with pipeline proposals that would ship the heavy tar sands oil across pristine landscapes in British Columbia or across the Prairies into Ontario and Quebec. Communities are raising concerns about the threat of a spill to waters from the pipeline or tankers leaving the Bay of Fundy of the Gulf of St. Lawrence.
  • And last but not least, communities in Alberta at ground zero have been facing the enormous consequences of tar sands development which has brought about significant contamination of water, air, and land. Increasingly, there are calls for a moratorium on development.

Targeting at risk communities

The tar sands invasion puts a high toll on low-income and aboriginal communities located in railway corridors, near oil refineries, and next to petcoke waste sites. In refinery fence-line communities, emissions associated with tar sands are suspected to be even more detrimental to human health than existing harmful emissions from conventional crude. Derailments of tar sands unit trains – mile long trains carrying over a hundred tankers full of explosive tar sands crude – pose a catastrophic risk for communities throughout the country. And as more tar sands oil is refined in the United States, the public will also face increased health and environmental risks from massive piles of petroleum coke, a coal-like waste full of heavy metals that results from tar sands oil refining and can cause serious damage to the respiratory system.

Industry would like for you to believe that tar sands development is inevitable and there is nothing that can be done. Wherever they turn today they are being faced with public opposition. Expansion is not inevitable, especially because of this growing and formidable opposition.

A climate problem

It is clear that tar sands reserves – some of the world’s most carbon intensive – are at the top of the list of reserves that must remain in the ground. Mounting scientific and economic analysis shows that the tar sands industry’s proposed expansion plan is incompatible with global efforts to address climate change. The Intergovernmental Panel on Climate Change (IPCC) concludes that 75% or more of discovered fossil fuel reserves must remain in the ground in order to limit warming to the international two degrees Celsius goal. The clear inconsistency between tar sands expansion and efforts to address climate change have made opposition to tar sands expansion projects a clear rallying point for a broad group of allies advocating for action on climate.

A water problem

A tar sands spill from train, pipeline, or tanker could devastate local economies, pristine wilderness, harm human health, and lead to an especially costly and challenging cleanup. Tar sands spills have proven more damaging than conventional spills, as heavy tar sands bitumen sinks below the water surface making it difficult to contain or recover. A spill from shipping the tar sands crude could devastate communities, contaminate freshwater supplies or marine habitats and damaging local economies.

Undermining efforts to grow our clean energy economy

The growing exploitation of Alberta’s tar sands threatens to undermine North American efforts to build a clean energy economy and combat global climate change. Because most tar sands crude is destined for the United States, its expansion would create a greater dependence on the world’s dirtiest crude oil and undermine our transition to environmentally sustainable energy and a cleaner transportation fleet. Responding to the tar sands invasion will require solutions reduce fossil fuel use and spur low-carbon transportation and energy solutions such as broadened electric vehicle use and development of renewable and clean fuels.

This tar sands invasion can be stopped: Clean Transportation Solutions

The good news is this tar sands invasion can be stopped starting with leadership from government officials to embrace climate and sustainable transportation solutions. NRDC’s report for the west coast outlines detailed recommendations for decision-makers at all levels. The first step is for decision-makers at all levels to become familiar with the unique issues associated with tar sands oil and then to actively identify the full range of solutions to confront this problem. Without action, the U.S. will unintentionally become a thoroughfare for this oil undermining climate policies and presenting risks to communities and water. With support for regional clean energy policies, we can prevent the influx of tar sands crude and build the green infrastructure and public support necessary to begin transitioning to a clean energy economy.

US House approves $279 million renewable energy cut; raises funding for fossil fuel research by $34 million

Press Release from Friends of the Earth
[Editor:  As you might expect, this travesty was passed on a nearly complete party line vote, with 230 Republicans and 10 Dems in favor.  Dems voting FOR the bill included:  A. Dutch Ruppersberger MD, Ami Bera CA, Brad Ashford NE, Collin Peterson MN, Doris Matsui CA, Filemon Vela TX, Gene Green TX, Henry Cuellar TX, Jim Costa CA, and William Keating MA.  Republicans voting AGAINST the bill included: Christopher Gibson NY, James Sensenbrenner Jr. WI, Joseph Heck NV, Justin Amash MI, Mo Brooks AL, Thomas Massie KY, Walter Jones Jr. NC.   Track the bill here.  – RS]

House approves $279 million renewable energy cut

By: Kate Colwell, May. 1, 2015

WASHINGTON, D.C. — The House of Representatives passed H.R. 2028, “The Energy and Water Development and Related Agencies Appropriations Act of 2016,” by a vote of 240-177.

The bill sets funding levels for important programs within the U.S. Departments of Energy, Interior, and the Army Corps of Engineers. While staying within the limits set by the sequester, the bill manages to raise funding for fossil fuel research by $34 million from 2015 levels while cutting renewable energy and efficiency research by $279 million. Simultaneously, it is packed with policy riders that undermine bedrock environmental laws like the Clean Water Act and limit the Environmental Protection Agency’s ability to study the dangers of hydraulic fracturing.

Friends of the Earth Climate and Energy Campaigner Lukas Ross issued the following statement in response:

Shoveling more of our tax dollars into the pockets of ExxonMobil and the Koch Brothers while defunding clean energy is climate denial at its worst. Fossil fuel interests don’t need more money. Solutions to the climate crisis do.

From hobbling the Clean Water Act to limiting the Environmental Protection Agency’s ability to even study fracking, House Speaker John Boehner is continuing his assault on the air we breathe and the water we drink.

###

Expert contact: Lukas Ross, (202) 222-0724, lross@foe.org
Communications contact: Kate Colwell, (202) 222-0744, kcolwell@foe.org

California billionaire fights to keep tar-sands oil out of state

Repost from The San Francisco Chronicle
[Editor:  See the full report, West Coast Tar Sands Invasion.  See Anthony Swift’s NRDC Blog for summary details.  See also the ForestEthics press release.  – RS] 

Billionaire fights to keep tar-sands oil out of state

By David R. Baker, April 29, 2015
Tom Steyer hopes  to block Canada oil from the state. Photo: David Paul Morris, Bloomberg
Tom Steyer hopes to block Canada oil from the state. Photo: David Paul Morris, Bloomberg

Billionaire environmentalist Tom Steyer has a new mission

— keeping oil from Canada’s tar sands out of California.

Steyer’s NextGen Climate organization released a report Tuesday warning that an “invasion” of tankers and railcars carrying crude from the oil sands could soon hit West Coast refineries, which currently process very little Canadian oil.

Steyer, a major Democratic donor who quit his hedge fund to focus on fighting climate change, has risen to prominence as a vocal opponent of the Keystone XL pipeline extension, which would link the oil sands to American refineries on the Gulf Coast.

A train carries crude oil through Kansas City, Mo., in 2014. Environmentalist Tom Steyer’s NextGen Climate organization warns that railcars carrying oil from Canada could soon hit West Coast refineries. Photo: Curtis Tate, McClatchy-Tribune News Service
A train carries crude oil through Kansas City, Mo., in 2014. Environmentalist Tom Steyer’s NextGen Climate organization warns that railcars carrying oil from Canada could soon hit West Coast refineries. Photo: Curtis Tate, McClatchy-Tribune News Service

But Tuesday’s report, prepared with the Natural Resources Defense Council and a coalition of other environmental groups, notes that the oil industry is pursuing other pipeline routes that would carry tar-sands petroleum to Canada’s Pacific Coast. From there, it could be shipped to refineries in California and Washington. In California, companies have proposed five new terminals for receiving oil shipped by rail — another potential means of entry. California’s policies to fight climate change discourage but don’t prevent the use of oil-sands crude.

“Keystone is not the only way the tar sands threaten our country,” Steyer said Tuesday at an event in Oakland, releasing the report. “The owners of the tar sands are always looking for other routes to the world’s oceans and the world’s markets.”

Steyer and other environmentalists have made blocking Keystone a rallying cry in the fight against global warming, since extracting hydrocarbons from the oil sands releases far more carbon dioxide into the atmosphere than other forms of oil production. And unlike common oil, the diluted bitumen (a tar-like substance extracted from the sands) sinks in water, making spills from pipelines and tankers difficult to clean.

“It is shockingly toxic, it is extremely nasty and it takes forever to clean up,” Steyer said. “To end the risk from tar-sands oil once and for all, we need to move beyond oil to a clean energy future. Luckily, this is the kind of leadership California excels at.”

The oil industry, and the Canadian government, call the oil sands a reliable source of oil from a friendly ally. And industry representatives often note that California’s dependence on imported oil has grown in recent years, in large part because production in Alaska — once one of California’s biggest suppliers of crude — has dropped.

Steyer has devoted a sizable chunk of his personal fortune, estimated at $1.6 billion, to backing political candidates who support action on climate change and targeting those who don’t, spending $73 million in the last election cycle. He said Tuesday that he has not yet decided whether to pay for an advertising campaign against bringing oil-sands crude to the West Coast.

“I’m not 100 percent sure,” he said. “Exactly how we fight it, I don’t think we’ve determined.”

Crude from the tar sands makes up a tiny fraction of the oil processed in California refineries — less than 3 percent, according to the report. And while the amount of oil shipped into the the Golden State by rail has soared in recent years, most of that petroleum comes from North Dakota and other states where hydraulic fracturing, or fracking, has produced a glut of crude.

But oil companies have proposed two pipeline projects that would link the oil sands to the Pacific Ocean, both of them traveling through British Columbia. If built, they could lead to an additional 2,000 oil tankers and barges moving up and down the West Coast each year, according to the report. The rail terminal projects proposed in California could raise the amount of oil-sands crude processed in the state each day from the current 50,000 barrels to 650,000 barrels by 2040.

However, that outcome is hardly certain.

A California policy known as the low carbon fuel standard requires oil companies to cut by 10 percent the amount of carbon dioxide associated with each gallon of fuel they sell in the state, reaching that milestone by 2020. In addition, the state’s cap-and-trade system forces refineries to cut their overall greenhouse gas emissions. Neither policy specifically prevents refineries from using oil-sands crude, but both give oil companies a powerful incentive to use other sources of petroleum.

Anthony Swift, one of the report’s authors, said California needs to adopt more stringent emissions targets to keep out crude from the oil sands.

“These policies are a very good start,” said Swift, of the Natural Resources Defense Council. “We need to get more robust targets — for both the low carbon fuel standard and the cap — to signal to the industry that California is not going to be an option for tar-sands refining.”

David R. Baker is a San Francisco Chronicle staff writer.

Bank Advises Clients Against Fossil Fuel Investment

Reprint from Time Magazine

HSBC Advises Clients Against Fossil Fuel Investment

By Nick Cunningham / Oilprice.com, April 29, 2015
The HSBC logo on the facade of HSBC France headquarters in Paris on Feb. 9, 2015.
The HSBC logo on the facade of HSBC France headquarters in Paris on Feb. 9, 2015.

The bank wrote to its clients that fossil fuel companies will become “economically non-viable”

The fossil fuel divestment campaign is picking up steam.

Often dismissed as unwise by oil industry proponents and criticized as a distraction even by supporters of action on climate change, the divestment movement is no longer being ignored.

Look no further than CeraWeek, an annual get-together of North America’s fossil fuel elite. On April 22, amid discussion panels such as “Asia: Still the Promised Land for New Energy Investment?” or “Canada’s role in the rising North America energy powerhouse,” there was also a session dedicated to divestment and the implications for energy companies. The conversation analyzed how sustainable the business model is for fossil fuel companies as the world moves towards regulating carbon emissions.

The attention paid to the divestment at CeraWeek suggests that the growing publicity and success from the environmental movement’s ability to secure divestment commitments from universities, banks, pension funds, churches, and other wealth funds are starting to be perceived as a threat by the fossil fuel industry.

A few weeks earlier, The Guardian made a splash with its “Keep it in the Ground” campaign, a very firm declaration in support of divestment. The Guardian Media Group vowed to divest its £800 million fund as well.

The growing concern over carbon pollution raises the possibility of a regulatory or tax crackdown, both at the national and international level. Newsweek reported on April 21 that HSBC wrote in a private note to its clients that there is an increasing risk that fossil fuel companies will become “economically non-viable.” As a result, HSBC advised its clients to divest from fossil fuels because they may be too risky. If investors fail to get out of fossil fuels, the bank says, they “may one day be seen to be late movers, on ‘the wrong side of history.’” As the divestment campaign builds up steam, major oil and gas companies are starting to see the writing on the wall.

But there could be a way to adapt. The Carbon Tracker Initiative (CTI) just published a “blueprint” for fossil fuel companies to adapt to a carbon-constrained world. The blueprint provides several recommendations. For example, oil companies should avoid high cost projects such as the struggling Kashagan field in Kazakhstan or expensive oil sands projects in Canada. High-cost projects put companies at risk when they are hit with unforeseen events, such as an oil price crash, a decline in demand, or a change in tax regimes. Instead, companies should invest in lower risk projects with higher rates of return, CTI says. CTI also insists that corporate governance within fossil fuel companies is critical – management needs a clear-eyed prognosis of how exposed their assets are to a potential scenario in which their oil and gas reserves are no longer wanted.

It is far from clear whether or not the oil majors will heed CTI’s advice on adapting their companies. In mid-April, 98 percent of BP’s shareholders voted in favor of an initiative that would force the company to disclose which of its assets would become “unburnable” in a low-carbon world. The results of that analysis will be much anticipated. ExxonMobil undertook a similar study, but summarily dismissed the likelihood that its assets would be affected in the future by climate action.

“Our analysis and those of independent agencies confirms our long-standing view that all viable energy sources will be essential to meet increasing demand growth that accompanies expanding economies and rising living standards,” William Colton, ExxonMobil’s vice president of corporate strategic planning, said in a March 2014 statement. In other words, investors have little to fear — ExxonMobil will be fine.

However, much has changed since then. The divestment movement has gathered quite a bit of momentum as protests hit more campuses and city halls. The U.S. and China reached a landmark agreement to reduce their greenhouse gas emissions. More countries will set policies to reduce energy demand ahead of international negotiations in Paris later this year. Oil prices have crashed, highlighting the vulnerabilities of many over-leveraged oil companies. And clean energy continues to make inroads, amid falling costs for solar, wind, and energy storage.

Oil companies ignore the divestment campaign – and other threats to their business models – at their own peril.

This article originally appeared on Oilprice.com.