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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).

Sat, 2011-10-22 22:14Farron Cousins
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Harry Reid to Hillary Clinton: Drop Keystone XL Pipeline Plan

Opponents of the Keystone XL pipeline have gained a new ally in the fight to prevent this disastrous oil boondoggle from moving forward: Senate Majority Leader Harry Reid (D–NV).

Earlier this month, Sen. Reid sent a letter to Secretary of State Hillary Clinton urging her to abandon the pipeline and instead focus on renewable energy. The Washington Post provided an excerpt of Reid’s letter to Clinton:

The proponents of this pipeline would be wiser to invest instead in job-creating clean energy projects, like renewable power, energy efficiency or advanced vehicles and fuels that would employ thousands of people in the United States rather than increasing our dependency on unsustainable supplies of dirty and polluting oil that could easily be exported.

This is the first time that Reid has publicly addressed the Keystone XL issue, and that signals a very powerful friend to the opponents of the pipeline. Already, some labor unions and Democratic lawmakers have thrown their support in favor of the pipeline, maintaining that the project would create much-needed jobs, despite evidence to the contrary.

Earlier this month, Congressman Henry Waxman (D–CA) called on the House Energy and Commerce Committee to investigate the Koch brothers' interests in the Keystone XL pipeline, as the majority of the members on the Energy Committee have received campaign contributions from Koch Industries and its employees.


The fact that Reid chose to single out Clinton on the issue shows that he is paying attention to the issue very closely. DeSmogBlog has put together some excellent pieces detailing Clinton’s ties to the lobbyists pushing 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, 2011-09-16 10:58Ben Jervey
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America's Woefully Inadequate Oversight of Pipeline Safety: A New York Times Stunner

Last week, the New York Times published a bombshell of an expose about the government's woefully inadequate program to monitor and ensure the security and safety of American energy pipelines. I’ve spent a lot of time lately investigating the state of North American energy pipelines, and this is by far the best overview I’ve seen of the government’s feckless attempt to oversee the sprawling system and protect the public from spills, leaks, and explosions.

Reporters Dan Frosch and Janet Roberts dig into federal government records and safety documents and surface some truly startling findings. Like the fact that there are “still more than 100 significant spills each year.” (“Significant” spills being those that cause a fire, serious injury or death, or release over 2,100 gallons.)

Or that the Pipeline and Hazardous Materials Safety Administration only requires companies to focus their inspections on “the 44 percent of the nation’s land-based liquid pipelines that could affect high consequence areas — those near population centers or considered environmentally delicate — which leaves thousands of miles of lines loosely regulated and operating essentially on the honor system.” Or the fact that the agency doesn’t even employ as many inspectors as federal law demands.

It’s well worth reading the whole expose, but here’s the crucial takeaway:

Mon, 2011-08-29 20:17Emma Pullman
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New Infographic Shows how Keystone Pipelines are ‘Built to Spill’

TransCanada claims their pipelines are the safest in the continent. And the State Department seems inclined to agree having released their Final Environmental Impact Statement (EIS) on the Keystone XL pipeline last week. They find that the pipeline poses “no significant impacts” to the environment, and advise the project move forward.

So what about the 12 spills along the Keystone I line in its first year of operation? Since commencing operation in June of 2010, the Keystone I pipeline has suffered more spills than any other 1st year pipeline in U.S. history.

In addition to a nasty spill record, the proposed Keystone XL will cross one of the largest aquifers in the world – the Ogallala – which supplies drinking water to millions and provides 30% of the nation’s groundwater used for irrigation. Pipeline construction will also disrupt 20,782 acres, including 11,485 acres of native and modified grassland, rangeland and pastureland, and pipeline construction will threaten sensitive wildlife and aquatic species habitats.

According to the EPA, carbon emissions from tar sands crude are approximately 82% higher than the average crude refined in the U.S. Given the extremely toxic nature of tar sands bitumen and the fact that Keystone is TransCanada's first wholly owned pipeline in the U.S., it seems reasonable to look to TransCanada's performance with Keystone I for clues on how it would manage Keystone XL.

And the clues are telling.

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.

Thu, 2011-06-02 14:31Emma Pullman
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Tar Sands Industry Has Its Eyes On Vancouver For Asian Export Terminal

In recent months, opposition to Enbrige's Northern Gateway Pipeline has mounted as citizens, environmental groups and First Nations groups have protested the $5.5 billion dollar pipeline that would bring as many as 220 supertankers per year to Kitimat, B.C., to ship dirty tar sands crude to hungry energy markets in Asia.

While opposition to this project has grown, it's curious that we haven't heard anything about an alternate project to route tar sands crude through Vancouver. 

The recent application to the National Energy Board (NEB) comes from Trans Mountain Pipeline, a subsidiary of Kinder Morgan that operates the 300,000 barrel per day (bpd) pipeline from Alberta to B.C. and Washington State. Their project would vastly expand oil tanker traffic through the waters of Vancouver's Burrard Inlet, and make Vancouver the major conduit of tar sands crude and bitumen to China.

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