Cushing MarketLink

Sun, 2012-04-01 16:22Steve Horn
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Investors: No More Flaring of Fracked Oil and Gas in Bakken Shale

The debate over flaring unconventional oil and gas in shale basins across the United States has suddenly heated up immensely (excuse the bad pun). 

On March 27, the Coalition for Environmentally Responsible Economy (CERES) penned a letter calling for an end to the practice, writing,

We are a group of 37 investors, representing $500 billion in total assets, who areconcerned about the financial risks associated with the flaring of natural gas that has accompanied fast-proliferating oil production from shale formations in North Dakota, Texas and elsewhere in the U.S.

We are concerned that excessive flaring, because of its impact on air quality and climate change, poses significant risks for the companies involved, and for the industry at large,ultimately threatening the industry’s license to operate.

As you know, shale oil production, made possible by hydraulic fracturing technology,…is poised to become the world’s largest oil producer in the next five years, with nearly all of this projected growth coming from shale oil. …

On a lifecycle basis, emissions from oil produced with high flaring rates may be comparable to those from Canada’s vast oil sands region.

The letter ended by calling for the building up of proper infrastructure, such as pipelines and refineries, in order to push for an eliminiation of the dirty practice. CERES concluded the letter with a firm request, stating, “We therefore are writing to request information about the amount your company is currently flaring, as well as details about your plans to reduce flaring at existing wells and prevent it at future wells.”

Letter signarories included As You SowPresbyterian Church (USA)Turner Investments, and Praxis Mutual Funds, to name several.

Tue, 2012-03-20 14:03Steve Horn
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Obama Sojourns to "Pipeline Crossroads of the World" for Campaign Speech

It's the multi-pronged fight that never seems to end.

The Alberta Tar Sands have been near the forefront of the North American energy and climate debate, thanks in large part to growing public concern and grassroots efforts like Tar Sands Action, a campaign led by climate activists to block construction of the Keystone XL pipeline.

The temporary derailing of Keystone XL by President Obama - who in January delayed permission to construct the pipeline for the foreseeable future - was labeled a “victory” by many activists. 

But complicating the “victory” narrative, Obama later granted permission to TransCanada Corporation to build the southern segment of the pipeline, the Cushing Extension, sometimes also referred to as the Cushing Marketlink Project, which will run from Cushing, Oklahoma to Port Arthur, Texas

Pandering to Big Oil, Obama will visit Cushing on Thursday, the self-proclaimed “Pipeline Crossroads of the World,” to give a stump speech for his 2012 election campaign.

The Stillwater News Press explained the rationale for the visit this way:

The White House has announced the president will be in Cushing Thursday to discuss his 'all-of-the-above' energy policy…Thursday appears to some locals as an opportune time for Obama, who said he supports the southern leg, to get on board on the northern segment of the 36-inch pipeline from Canada.

CBC News reports that “Obama will make a speech at a storage yard that's holding pipes to be used to build the pipeline.” 

As the old adage goes, “A picture is worth a thousand words.” 

Mon, 2012-01-23 21:38Steve Horn
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Demise of Keystone XL Means More Bakken Shale Gas Flaring

Damned if we do, damned if we don't - this is the CliffsNotes version of the ongoing Keystone XL pipeline debate. President Barack Obama recently halted TransCanada's proposed Keystone XL tar sands pipeline project, which would bring tar sands crude, or dilluted bitumen (“dilbit”) from Alberta through the heart of the U.S., to Gulf Coast refineries near Port Arthur, Texas, where the oil would then be exported to the global market.

Most environmental organizations declared victory and suggest the Keystone XL pipeline is dead. Unfortunately, this is far from the case. Republican House Majority Leader John Boehner (R-OH) recently told The Hill he may attempt to rope the pipeline into the next payroll tax extension. Furthermore, a recent Congressional Research Services (CRSpaper said that under a little-used Consitutional clause, the two chambers of Congress, rather than the White House, could have the final say on the pipeline's ultimate destiny. CRS explained, 

[I]f Congress chose to assert its authority in the area of border crossing facilities, this would likely be considered within its Constitutionally enumerated authority to regulate foreign commerce.

Because the pipeline crosses the U.S.-Canada border, many thought that the U.S. State Department, and by extension the White House, had the final say in the manner. This may no longer be true.

On the other hand, even if the Keystone XL becomes a “pipe dream,” the grass isn't necessarily greener on the other side.

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