keystone

Wed, 2012-01-18 11:11Ben Jervey
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Keystone XL Pipeline Would Increase Oil Prices in Midwest

Twitter is ablaze with the news that the State Department will announce today that the original TransCanada presidential permit application is dead in the water. Details are murky, so stay tuned for more, but what this likely means is that the State Department will allow TransCanada to re-apply for the permit with a new route that avoids the heart of Nebraska's Ogallalla Aquifer.

While it's good to see that President Obama is standing up to oil industry bullying and Republican pressure to fast-track the permit, this still means Keystone XL is very much in play. If it's ever built, Keystone XL will allow the expansion of the Alberta tar sands that climate scientists worry will send us down a dangerous path of global warming pollution. 

What's more, the Keystone XL tar sands pipeline, if built, would increase oil prices in the American Midwest. That’s the shocking takeaway point from a bombshell report about Keystone XL as an export pipeline released today by the Natural Resources Defense Council and Oil Change International.

We’ve reported time and time again here on DeSmogBlog, the proposed Keystone XL tar sands pipeline would not improve America’s energy security, but never has that reality been more clearly conveyed than by this one real-world point that is worth repeating. The Keystone XL tar sands pipeline would increase oil prices in the Midwest.

To understand how, exactly, an increased supply of oil to America could increase oil prices domestically, you have to understand two things about the Keystone XL pipeline.

First, Keystone XL is is an export pipeline, funneling foreign crude through American soil to Gulf refineries that will profit most by processing the low-grade tar sands crude into diesel to sell to the booming international market.

Sun, 2012-01-08 12:14Ben Jervey
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Bechtel Whistleblower Warns Against Keystone XL; Witnessed Shoddy Work on TransCanada’s Keystone I

Back in August, DeSmogBlog’s own Emma Pullman co-produced a startling infographic about how the first section of TransCanada’s Keystone pipeline system was “Built to Spill,” with a dozen spills recorded in the pipeline’s first year of operation.

According to a must-read bombshell Op-Ed in the Lincoln Journal Star, these spills came as no big surprise to the workers closest to the project. The piece, published on New Years Eve by a former Bechtel engineer who worked on that original stretch of pipeline, tells the story of gross safety negligence and lax oversight in constuction of that first Keystone line, and warns against letting TransCanada again bring that threat to American soil.

Mike Klink was an inspector for the project, and claims he was fired by the company after repeatedly raising concerns about the substandard materials and poor construction of the pipeline. Klink warns that the company's missteps and shortcuts that already resulted in 12 spills in one year should serve as fair warning against TransCanada’s proposed Keystone XL pipeline.

Thu, 2011-11-10 13:27Ben Jervey
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Breaking: State Department Delays Keystone XL Decision Until 2013

The State Department announced today that they would “seek additional information” about the Keystone XL pipeline, meaning that they will take another 12 months at least to re-review the proposed pipeline route. This new review will build on (or make up) for the woefully-incompletely Environmental Impact Statement.

Here's the State Department's official language:


…given the concentration of concerns regarding the environmental sensitivities of the current proposed route through the Sand Hills area of Nebraska, the Department has determined it needs to undertake an in-depth assessment of potential alternative routes in Nebraska. …
Among the relevant issues that would be considered are environmental concerns (including climate change), energy security, economic impacts, and foreign policy.

The decision comes in the immediate wake of a massive protest at the White House on Sunday, as roughly 12,000 anti-pipeline activists circled the White House in a “solidarity hug.” The action was the latest in a series of protests and events staged by opponents of the proposed TransCanada pipeline that would funnel tar sands crude from Canada down to the Gulf Coast in Texas, much of it bound for export to other nations.

The decision to delay is a clear testament to the power of public engagement in the political process and good old-fashioned protest. But the battle isn't over yet.

Wed, 2011-11-09 06:00Ben Jervey
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Valero Positioning To Export Tar Sands Oil, Guarding Pot of Gold at End of Keystone XL Pipeline

In the heated Keystone XL debate, the Canadian company TransCanada, which is attempting to build the line, and the Koch brothers, who are throwing their considerable weight behind it in the interest of their Koch Industries’ subsidiaries, receive a lot of attention.
 

But there are other benefactors that are worth a closer look, as nobody stands to benefit as much in the longer term (if the Keystone XL pipeline is ever built) as the companies that operate the refineries on the Gulf Coast.

Let’s step back and review what the refineries actually do. The diluted tar sands bitumen (or “DilBit”) that would flow through Keystone XL is an ultra-acidic, highly viscous mess, that doesn’t at all resemble the refined petroleum products like diesel or gasoline or even jet fuel that are sold on the commercial markets. DilBit is, in the words of Keith Schneider, ”thick as peanut butter and more acidic, highly corrosive, and abrasive” than typical crude.

This tar sands DilBit needs to be refined before it can be sold. But only certain refineries are capable of handling the corrosive DilBit.

Refiners along the Texas Gulf Coast, where the Keystone XL pipeline would ultimately deliver tar sands DilBit from Canada, are eager to accomodate. The company that appears positioned to receive and refine more of TransCanada’s crude than anyone else is the Valero Energy Corporation (NYSE: VLO).

Thu, 2011-11-03 20:14Emma Pullman
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Oil Industry Co-Opts Occupy Movement to Sell the Keystone XL Pipeline

The AFL-CIO's America's Building Trades Unions and Oil and Natural Gas Industry Labor-Management Committee are attempting to co-opt the Occupy movement with a new initiative to try to get the Keystone XL tar sands pipeline approved. Jobs for the 99% likens the growing celebrity support against the Keystone XL pipeline to an occupation of sorts. “Celebrities are taking over DC” the website says, and “Hollywood’s elite 1% should stop flying to DC and speaking out against jobs that help the other 99% of America!” 

Pitting celebrity support of anti-Keystone efforts against average Americans, “Jobs for the 99%” tells us that wealthy celebrities are killing valuable jobs, and that by telling the White House to support Keystone XL, “we” can act in solidarity with the 99%. 

You gotta hand it to them, it's a bold move. But here's why it's misleading and you shouldn't buy it. Hijacking the occupy movement to create a climate killing pipeline is a boon to the 1% who will harvest the profits. The 99% only get a few short term jobs (or not), not long term sustainable employment. That's why oil and gas companies, some of the largest and most notoriously corrupt corporations in the world, are backing this astroturf campaign with some serious funding.

And they're handing down the public health and environmental costs associated with a potential spill - and the “game over” climate change that expanding tar sands production will cause - back to the 99%.

Thu, 2011-09-29 17:01Ben Jervey
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Cornell Report Busts Myth of Keystone XL Job Creation

Pipe dreams: Jobs Gained, Jobs Lost by the Construction of Keystone XL

Proponents of the controversial Keystone XL pipeline project would like you to believe that, if approved, its construction will put hundreds of thousands of Americans to work. This is plainly untrue, according to a new report by the Cornell University Global Labor Institute.

TransCanada, the Canadian company behind the project, has spent the past few years making ambitious claims about the jobs that would be created by construction of the pipeline, which would carry diluted bitumen (or DilBit) crude 1,700 miles across six Great Plains states, 1,904 waterways, and the nation’s largest freshwater aquifer.

These jobs claims have grown more optimistic as the project has found itself the subject of increased scrutiny. This National Wildlife Federation post rounds up TransCanada’s mysteriously rising jobs claims:

In 2008, a report included in TransCanada’s Presidential Permit application for Keystone XL to the State Department said they anticipate “a peak workforce of approximately 3,500 to 4,200 construction personnel” to build the pipeline. In 2010, TransCanada put out a press release that said, “During construction, Keystone XL would create 13,000 jobs and further produce 118,000 spin-off jobs.” In 2011, TransCanada put out a fact sheet that said Keystone XL would “create about 20,000 construction and manufacturing jobs.”

In reality, according to the exhaustively researched Cornell report, even the earliest, most modest claims seem unrealistic.

In fact, in Pipe Dreams? Jobs Gained, Jobs Lost by the Construction of Keystone XL, the institute says more jobs could actually be destroyed than created by the pipeline.

Mon, 2011-09-19 15:04Ben Jervey
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EnergyNOW! Tackles Keystone XL, And Talks To Me About Pipelines

EnergyNOW! news on Keystone XL pipeline

On Sunday, energyNOW! news tackled the Keystone XL debate in a wide-ranging half hour program that covered the controversial pipeline in typically comprehensive fashion.

An overview intro segment looks at the “impact on America,” from the alleged reduction of imports of OPEC crude to potential for pollution. Reporter Thalia Assuras' trip to Nebraska to talk to local 'Huskers – landowners and politicians alike – is fascinating.

The show then travels up to Alberta, whose Athabasca tar sands reserves would feed the Keystone XL pipeline, funneling filthy DilBit crude down to Gulf Coast refineries.

The last segment features an exclusive interview with Energy Secretary Steven Chu, which they teased a few weeks back. (And which, you might recall, I responded to at the time, calling his claim that Keystone XL would increase our national “energy security” cynical politics.)

If you're able to spend a half hour learning about this urgent hot-button issue, this show is a great place to start. If you can't see the embedded video below, you can watch on energyNOW's website.

Fri, 2011-09-02 14:16Ben Jervey
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Reality Check: New Keystone XL Report Blows Up Steven Chu's "Energy Security" Claim

Earlier this week, in an interview with EnergyNow!, U.S. Energy Secretary Steven Chu hinted that the administration would likely approve the Keystone XL tar sands pipeline. The controversial pipeline, which would carry filthy diluted bitumen (or DilBit) crude 1,700 miles across six Great Plains states, 1,904 waterways, and the nation’s largest freshwater aquifer, needs State Department approval to cross the international border. Opposition to the pipeline is fierce – over the past two weeks over 1,000 activists have been arrested at the White House in a massive act of civil disobedience – as environmentalists, Great Plains landowners, scientists, and public health activists alike warn of the inevitable oil spills and immense carbon pollution that would result from Keystone XL’s construction.
 
Proponents of the pipeline have been pushing the claim that building this pipeline will improve our energy security and reduce our dependence on oil from Venezuela and the Middle East. Companies like TransCanada, the Canadian energy company hoping to build the pipeline, and Valero, the Texas-based refinery company that stands to profit the most from the DilBit crude that it would deliver – have been more than happy to help perpetuate that myth, even if their internal discussions and the economics of the oil industry don’t back it up.  

Unfortunately, Secretary Chu’s interview on Wednesday revealed that the administration is going to use this false claim as political cover if (or, more realistically, when) they approve the construction of Keystone XL. Here’s the interview:
Wed, 2011-08-03 06:15Ben Jervey
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U.S. Chamber Of Commerce Launches Campaign To Lobby For Keystone XL Tar Sands Pipeline

keystone pipeline keystone xl

Last Friday, after applauding the House’s vote to rush a decision on TransCanada Corp’s Keystone XL tar sands pipeline, the U.S. Chamber of Commerce launched a new campaign to boost the controversial project. The Partnership to Fuel America is run out of the U.S. Chamber’s Institute for 21st Century Energy, and seems positioned to be the U.S. Chamber’s main influence channel to drum up support for Keystone XL. Supportive comments aside, it’s also the first time the U.S. Chamber has so publicly and overtly aligned with the Canadian company’s project.

The launch comes at a pivotal moment for Keystone XL. The Obama administration has the final say in approving the pipeline, and they’ve said the decision will be made by the end of the year. The new House legislation declared that the Obama administration must make the call by November 1st. A final environmental review of the prospective project is expected from the State Department in August. (To learn more about how tar sands pipelines like Keystone XL are a much greater risk than normal crude pipelines, see my earlier post.)

Fri, 2011-07-29 12:14Ben Jervey
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The Many Problems With Tar Sands Pipelines

Enbridge tar sands pipeline spill Kalamazoo River Michigan

Note: This post is part of an ongoing series about North American pipelines. For an introduction and links to the wide-ranging coverage–from safety to legal issues to the business and economics to vulnerabilities–see this regularly-updated intro post.

On Monday, the House passed a bill that would force the Obama administration to make a final decision on TransCanada’s controversial Keystone XL pipeline by November 1. The Keystone XL project (which regular DeSmogBlog readers should be familiar with) would funnel tar sands oil from Alberta’s massive reserves down to Gulf Coast refineries in Texas.

This isn’t the place to discuss in too much depth the various and plentiful problems with Alberta tar sands itself – from extraction to transportation to refining to combustion, it’s the dirtiest oil on the planet. From a climate perspective, the Alberta tar sands contain enough carbon to lock the planet into climate chaos. In the words of NASA climatologist Jim Hansen, “if the tar sands are thrown into the mix it is essentially game over.”

Because Keystone XL is so controversial, and because its construction could be such a tipping point in the climate fight, a broad and diverse coalition of scientists and activists are digging in their heels for a big fight, and planning a multi-week action at the White House. (Here’s more on how to get involved.)

But since this is a post about pipelines, I’m going to focus on how tar sands pipelines are different than those that carry conventional crude, how they’re much more prone to leaks and spills, and how those spills are particularly bad for the environment.

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