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Bill Chameides

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The Keystone XL Pipeline: A Tar Sands Folly?

Posted: 07/26/11 06:20 PM ET

Oil Pipeline

Hillary Clinton is in the tar sands hot seat. Is she asking the right questions?

The U.S. State Department is in the rare position of having to decide on an environmental issue. TransCanada wants to expand an existing pipeline to bring tar sand oil from Alberta, Canada, to Texas. Because it's an international project, the State Department must review and approve it, a process expected to be completed by year's end but that could be extended to complete a "thorough review process."

The review process requires, among other things, "disclosure of potential environmental impacts (beneficial and adverse) and the consideration of possible alternatives." So far, two environmental impact drafts have been prepared -- the latest released on April 15. Both have been roundly criticized [pdf] by the Environmental Protection Agency for not adequately assessing oil spill risks and potential alternate pipeline routes. Until this is done, the agency warns that it will characterize the project with "environmental objections -- insufficient information."

Meanwhile, some in the House, in hopes of increasing the likelihood of a green light from the State Department, are throwing their weight behind a measure, to be voted on Tuesday, to cut off the pipeline's environmental review by November 1 ($ub req'ed).

The Keystone Scoop

The story starts with western Canada's tar sands -- also known colloquially as oil sands. The stuff is a far cry from what we normally think of as oil. First, the bitumen -- a heavy viscous, tar-like hydrocarbon locked up in these deposits -- is extracted. If mined, it's separated from mining clay and sand, then "upgraded" and diluted so it can "flow" like oil.

Tar sand oil generally receives a low rating among environmentalists for energy sources.

  • It's among the dirtiest of petroleum fuels when it comes to greenhouse gases; and
  • Bitumen extraction is energy- and water-intensive.

In fact, bitumen extraction has significantly degraded Canada's boreal forests and created vast wastelands of tailing ponds that have been linked to river contamination. (See here and here.)

But Canada's got lots of tar sands and we need lots of oil, so there's strong desire to move the stuff to American refineries and ultimately into our cars. How? In a word, Keystone.

The Keystone XL represents the final two phases of a $13 billion, 3,800-mile pipeline system owned and operated by TransCanada. (See map and description.) Its proposed U.S. path would enter Montana and cut across South Dakota and Nebraska before joining with Phase II in Steel City, Kansas -- crossing some of our wildest and most productive lands, including our agricultural heartland and the Ogallala Aquifer, which supports a huge part of our nation's breadbasket.

And there's the rub for the environmental community -- concerns that pipeline leaks and spills will damage these unique and valuable resources have sparked opposition. The New York Times has called the project "the wrong pipeline for the wrong oil." And EPA, as noted above, has "environmental objections."

Now, one would like to think that with all the precautions we take, oil and gas pipeline leaks and spills would be rare, quite small or quickly contained. In reality, they do occur without such qualifiers. Does the Yellowstone River ring a bell? And then there are these from the past year, not in any way an exhaustive list:


As for TransCanada's Keystone system, since May 2010, it's had 12 leaks -- mostly from pumping stations and mostly minor except for the one that spilled hundreds of barrels (see here and here).

And sending bitumen down a pipeline is especially problematic and damaging -- it's a more acidic form of petroleum that requires more heat and pressure than conventional oil (which increase pipeline stress) to keep it moving.

So objections to the project are not without merit.

But on the other side folks like the Wall Street Journal's editorial board, citing national security and economic issues, maintain that Keystone XL would "reduce U.S. reliance on oil from dictatorships" and create jobs.

And here's where I start to scratch my head. I fully appreciate the need to make our nation less dependent on oil from anti-American interests. But why do we need Keystone XL to do this?

Canada's tar sand oil is already getting here. Just look at TransCanada's interactive map again.

The pipeline's Phase I, which opened in June 2010, zigzags across 1,853 miles, cutting eastward across Canada then south into North Dakota. through Steele City, Kansas, and then east into Illinois. Phase II, which opened February 2011, extended the pipeline from Steele City south in a straight shot to a major pipeline hub in Oklahoma fairly close to Texas refineries. Keystone XL (Phases III and IV) would make the path less circuitous, connecting the tar sand oil to Texas refineries, but it's not necessary to move tar sand oil into the country. Just look at the map here.

An analysis [pdf] prepared for the Energy Department last December found that Keystone XL's capacity would not be needed until sometime after 2020 at the earliest and maybe not until after 2030.

So I have to ask: Why this pipeline? Why now? And is Secretary Clinton asking these same questions?


Crossposted with National Geographic's Great Energy Challenge Blog and The Nicholas School's TheGreenGrok.com

 

Follow Bill Chameides on Twitter: www.twitter.com/theGreenGrok

Hillary Clinton is in the tar sands hot seat. Is she asking the right questions? The U.S. State Department is in the rare position of having to decide on an environmental issue. TransCanada wants t...
Hillary Clinton is in the tar sands hot seat. Is she asking the right questions? The U.S. State Department is in the rare position of having to decide on an environmental issue. TransCanada wants t...
 
 
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11:47 AM on 07/29/2011
We need the pipeline – to not do this would be utterly ridiculous because it would put the same oil on Tankers and then offload it in the US. And where are most spills from – Tankers.
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john frodo
armchair expert
02:05 PM on 07/27/2011
A real test. I predict the usual failure, national security and promises from Canada to be good steward.
02:05 PM on 07/27/2011
The Bakken oil field is a much better move for the U.S.A. right now in my thinking. It is sweet crude and covers a huge area of Saskatchewan, Manitoba, Montana, and I believe North Dakota. Sweet crude I think is more enviro friendly and far cheaper to refine.And as a bonus a lot of the bakken oil play is right in your own back yard.As a bonus think of the job creation.
11:50 AM on 07/29/2011
agreed
Fanned
01:13 PM on 07/27/2011
If the govt would just issue a permit for a new refinery near the border the long pipeline would not be required.
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Paul Stacey
Kill guns, not children.
12:46 PM on 07/27/2011
Why now? After the disgraceful behaviour of the republicans over the debt limit/taxation question, I would imagine the oil industry feels that in a few short years they are not going to be able to rely on weakened environmental protection any more.
11:50 AM on 07/29/2011
Or - we need the oil and the safest way to get it here is the pipeline. we could have drilled our own but the idiotic environmentalist lobby stopped that - so now we pay more to canada.

I agree with pinnsy above - Bakkken oil is ours......
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08:59 AM on 07/27/2011
Why a pipeline? Simple. So a few can get rich at the risk of many. SSDD.
01:09 PM on 07/27/2011
Why a pipeline? Simple. Because Americans continue to consume oil at high rates. Why are the sins of the general consumers always blamed on the greedy rich and evil oil companies? Because we , the average consumer, don't want to admit that we are the ones causing the problem.
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marshhen
Northern by birth, southern by choice
08:26 AM on 07/27/2011
1. It's being sent to Texas to be refined.
2. Transporting oil through pipelines is a proven safe technology.
3. And lastly and most importantly, the project would create over 20,000 jobs.

Yet, once again, this administration puts roadblocks up to prevent jobs, prevent an economic recovery, and prevent energy independence.... Shameful.
01:41 PM on 07/27/2011
just s small point marshhen. About that energy independence prevention. Canada is a country that has its own ideas. Even though Stephen Harper is in bed with the Republicans via Aberta (in your last federal election 1 out of 10 Calgary citizens was american). As a side bar i wonder if all those republicans living in Calgary use the Canadian medical coverage or insist on filing through the american medical coverage when health issues arise. Anywho, in the last election in Canada 69% did not vote and of the remaining 31% harper got approximately 40% of that vote. So the Canadian oil is not entrenched to anyone forever yet.
11:52 AM on 07/29/2011
Correct. that killed jobs in the Gulf because of their screw up and now want to stop more good jobs.

We need to get the fools OUT of the Congress and WH
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Dredd
Our government is a wartocracy.
08:10 AM on 07/27/2011
When the addiction becomes obvious, and it is, the entire political exercise is to cover it up and divert the blame for the madness to someone else.

That is what is taking the State Department so long to counter the EPA. The House lunatics are trying to avoid all that with a quickie McCoverup and McDiversion getting rid of the EPA. Their demented philosophy is "No EPA no problem".

http://blogdredd.blogspot.com/2011/07/embryonic-look-at-civilizations-future.html
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02:23 AM on 07/27/2011
Why does oil have to be shipped all the way from Canada to Texas?

For one thing, Texans waste more oil than any other state in the Union. They are number one in consumption, at a whopping 1,130 million barrels of oil consumed per year.

California is number two in consumption, at 666 million barrels per year, but has 50% more people than Texas.

Sounds like an awful of environmental damage is being done, and a lot of money and oil is being wasted, just to keep all of those Texans in their monster pickups.
11:55 AM on 07/29/2011
need refineries.....

Exec: U.S. Needs More Refineries

Posted on: Wednesday, 12 October 2005, 18:00 CDT

By Gene Powell Jr., Odessa American, Texas

Oct. 12--Increasing U.S. refining capacity requires expanding existing plants as well as building new ones, ConocoPhillips CEO James Mulva told oil and gas industry executives Tuesday in Houston.

And, if the stars aligned and everything fell just right, it's possible a refinery could be built just south of Odessa.

"There have been some discussions that we do have some infrastructure in place that would allow for the quick construction of a refinery," Neil McDonald said, adding that it would largely depend on how difficult the permitting process would be.

"Given some relaxation of those permitting requirements, it might be possible," McDonald said, adding there was "nothing official" about the refinery discussions.

McDonald, director of economic development at the Odessa Chamber of Commerce, was referring to the infrastructure of the former Shell refinery in the Odessa Petrochemical Complex south of Odessa.
http://www.redorbit.com/news/science/269657/exec_us_needs_more_refineries/index.html
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IPredictARiot
US Military = largest socialist entity on earth
12:18 AM on 07/27/2011
Keystone never seems to mention what they do with the oil once it gets to the gulf. Currently, at least 3 out of the 7 refinery complexes in the gulf are exporting refined diesel and gasoline to other countries.

This discussion should never, ever be framed as a question of national energy security. The oil sands come from another nation, and are shipped to other nations. The excess capacity in the gulf is part of the world market for oil and gas, it does not pay special favorites with any nation.

Canadian oil refined by a global refinery and sold on the international market does not improve US energy security.
11:56 AM on 07/29/2011
but increased capacity and efficiency does affect the world price for oil
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IPredictARiot
US Military = largest socialist entity on earth
06:34 PM on 07/29/2011
That increased capacity already exists; it doesn't need this pipeline. The volume of oil is so small compared to the world market that it wouldn't have a measurable impact on the price of oil. Demand is the primary driver of the price of oil, not the location of refining.
10:53 PM on 07/26/2011
You left out the most important reason to stop the tar sands pipeline: It will destroy civilization! According to Climate Scientist Jim Hansen, exploiting the tar sands will increase the CO2 concentration in the atmosphere by 200 ppm (parts per million) and it will be "Game Over" for the climate. According to Hansen: "An overwhelming objection is that exploitation of tar sands would make it implausible to stabilize climate and avoid disastrous global climate impacts." Given these risks, it's quite insane that we are still pursuing the pipeline.

http://www.columbia.edu/~jeh1/mailings/2011/20110603_SilenceIsDeadly.pdf
11:58 AM on 07/29/2011
Too late. The environmentalists had their chance to approve nice clean offshore and Alaska drilling and have blocked it for DECADES. Now the price is up and tar sand and shale oil make sense - and if its dirtier - well the eco lobby owns it now.

Its called unintended consequences..
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John Nail
35 yr. vet in benefits & health industry
08:32 PM on 07/26/2011
Thanks for the thorough explanation on this. This is a hard call but it seems strategically like we need to do it IF we can limit the downside. I will be interested in the debate here.
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Oregon Mick
No bread? Let them eat micro-bio!
06:39 PM on 07/26/2011
Is tar sand now viable? Last I heard about it was it took more energy to get it out that it produced when used. I didn't see that addressed anywhere in the article.
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AvgJoeBlow
We are smarter than any of us.
08:13 AM on 07/27/2011
Since when has science or accounting entered into this equation?
This is a twenty first century gold rush, plain and simple.
and in the end will have the same disappointing, devistating ecconmimcal and environmental impacts.
Send more oil to Texas -- WTF for?
-AJB
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Oregon Mick
No bread? Let them eat micro-bio!
11:53 AM on 07/27/2011
Of course there is irony of sending oil to Texas; kind of like sending blonds to SoCal, or something. I just don’t see the economics unless something has changed and they have developed a new process that doesn’t involve huge amounts of super heated steam and high pressure. But I have to admit on this one somebody may have and I haven’t heard about it. So where’s the gold rush? Unless there whole thing is a complicated tax and subsidy scam. According to the Tea Party it’s politically incorrect to question business’ right to free government money so I guess there’s nothing left to say.
11:59 AM on 07/29/2011
because the biggest user - US is not increasing production and world demand is up the price is up and will go higher. Making this oil economic
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Oregon Mick
No bread? Let them eat micro-bio!
06:16 PM on 07/31/2011
I suppose, but isn't the cost of energy production going up? Or maybe ironically they are using a renewable like wind or solar to provide the energy to release the oil. See, the rightwingers are right, renewable enery is bad for the enviroment.