Posts Tagged ‘Keystone XL’

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Canada to sell Alberta oil to Asia

January 20, 2012

In the wake of the Obama administration’s decision to kill the Keystone XL pipeline, Canadian officials have responded by announcing their determination to sell the products of the oil sands to Asia and, in particular, to China.  It was easy to see this one coming – the alternate (and more environmentally risky) route has already been mapped out.

In the past, I wrote that Obama would be able to campaign in 2012 on his foreign policy successes, but this one decision undercuts that entire theme.  His GOP opponent, whomever that turns out to be, can easily cast the Keystone XL decision as one that hurts the US and aids our greatest challenger (China) in one fell swoop.

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US incoherence on energy policy

January 18, 2012

It is very hard to call these two reports anything but incoherent.  First, the President’s jobs council recommends an “all-in” policy on energy to include expanded drilling, development of unconventional resources, and new pipelines and refineries (although it does not specifically mention Keystone XL).

Next, early reports indicate that the State Department is going to reject the Keystone pipeline.  This is a foolish policy decision for many reasons which we have detailed before, but it is utterly incoherent when juxtaposed with the pronouncement from the jobs council the day before.  To paraphrase a favorite line of US liberals, it appears that the left hand doesn’t know what the far left hand is doing.

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New Keystone pipeline route gets support from Nebraska legislators

November 18, 2011

When President Obama punted the final decision on Keystone XL until after the 2012 election, he put forward the idea that the threat of groundwater contamination required further review.  Specifically, environmental groups have warned of a threat to Nebraska’s Ogallala aquifer.  Responding quickly to Obama’s objections, TransCanada, the company behind the pipeline project, has already proposed a re-routing scheme that has support from key members, both Democrat and Republican, in Nebraska’s legislature:

On Nov. 14, TransCanada announced it supports proposed legislation within the State of Nebraska to move the Keystone XL pipeline project forward. If passed, this legislation, introduced the same day in the State legislature, will ensure a pipeline route will be developed in Nebraska that avoids the Sandhills.
TransCanada is pleased with the positive conversations it is having with Nebraska leaders, which have resulted in legislation that respects the concerns of Nebraskans and supports the development of the Keystone XL pipeline. TransCanada at the same time confirmed to state leaders that the route for Keystone XL will be changed and reaffirmed that Nebraskans will play an important role in determining the final route.

These developments in Nebraska follow the Nov. 10 announcement by the U.S. Department of State (DOS) that further assessment of alternative routes for Keystone XL was needed in Nebraska to move forward with the National Interest Determination. The proposed state legislation in Nebraska is a critical first step in that process.

Working together with the State Department, Nebraska’s Department of Environmental Quality will conduct an environmental assessment to define the best location for Keystone XL in Nebraska. TransCanada will work closely with these agencies and provide them with the information they need to complete a thorough review that addresses concerns regarding the Sandhills region.

In short, there is no longer any need to defer the decision, at least not for 15 months.  The State Department can expedite consideration and have a decision by early next year.  The ball is back in the administration’s court.

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Obama administration poised to kill Keystone XL

November 10, 2011

The US State Department has demanded changes to the route of the Keystone XL pipeline that will delay the pipeline for at least another year:

The State Department is ordering the developer of a pipeline that would carry oil from western Canada to Texas to reroute the project away from environmentally sensitive areas of Nebraska.

That decision could delay a final U.S. decision on the project until after the 2012 election.

The decision will require an environmental review — and that could take at least a year.

TransCanada Corp. is seeking to build the $7 billion pipeline. Part of the 1,700-mile pipeline would pass through Nebraska’s Sandhills region and an aquifer that supplies water to eight states

Two senior State Department officials who are familiar with the project described the decision to The Associated Press. The officials spoke on condition of anonymity because they weren’t authorized to discuss the decision before an official announcement.

Petroleum Economist states that this is more than a mere delay – that the pipeline is now “all but dead.”  This means that the oil from the Alberta tar sands will instead flow west, through a vastly more sensitive ecosystem, and be shipped via tanker to Chinese markets rather than to US markets.  I wrote yesterday that Obama is poised to run as a Warrior President; however, for all those victories, it is difficult to paint any of them as beneficial to US energy security, which I believe is our most vital foreign policy concern for the next half century.  This decision further weakens the president on that front ahead of the election campaign, even as he tries to defer a formal decision until after the election.

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Pipeline security

October 18, 2011

Yesterday, I posted an argument on environmental grounds that the Keystone XL pipeline should be built – that, because the route traverses a relatively more built  and accessible environment, that it is far preferable to the alternate proposed route through a largely pristine region of biological diversity.

The route of Keystone XL is also a preferred route because of security issues.  Last month, a pipeline in Kenya exploded, causing the death of 100 local inhabitants.  The explosion was caused when those locals gathered to siphon fuel from the leak.  A suspected cigarette ignited the pipeline and disaster ensued.   Today, the professional industry newsletter Oil & Gas IQ notes that the Kenyan tragedy is the largest and most recent example of a problematic issue of pipeline security in the developing world.   Through poor monitoring and maintenance, leaks on such pipelines go unreported and/or untended, and as a consequence, fires and explosions are common.  Additionally, pipelines through regions with unsettled political situations are frequent objects of attack and sabotage.  This is not a weakness of pipelines, per se, but rather a weakness of local conditions.   Regulation, monitoring, and the availability of trained repair crews render such disasters almost unheard of in developed nations.  Building Keystone XL, with the inherent pipeline security that comes with its location, relieves the pressure to build other pipelines through far riskier environments.

 

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The environmental argument in favor of the Keystone XL pipeline

October 17, 2011

The Canadian province of Alberta has immense reserves of unconventional oil called tar sands or oil sands.  A combination of technological advances and the rising cost of conventional oil has suddenly made the Alberta oil sands a very valuable commodity.  Multinational corporations and state owned companies from China are competing over the rights to develop this resource.  Meanwhile, the issue of how to get the oil from its remote location to refineries or shipping ports has become divisive.  Environmentalists correctly point out that oil sands require particularly carbon-intensive production techniques.  There are efforts under way to mitigate this, but they are not fully on line yet. Additionally, a key component of the environmental movement is dedicated to the fairly rapid elimination of the oil economy, and the commercialization and widespread use of unconventional oil would wreck those plans – there is more unconventional oil than conventional oil, and incorporating unconventionals into the economy on a large scale basis would usher in a Second Age of Oil  that would probably last well into the next century.  Although carbon mitigation programs would probably appear and grow alongside this exploitation of unconventional resources, the most ardent anti-oil environmentalists are not willing to take a chance on a mere probability.  This is their moment to end the use of oil, and they will not give up that goal.  To that end, they have organized a series of protests and political activities with the goal of killing the proposed Keystone XL pipeline, which planners envision running through the Canadian and American plains states to terminals in Port Arthur, LA and Houston, TX.

Online, I have come across many supporters of Keystone who believe that these environmentalists are irrational obstructionists, and that they should simply be steamrolled and the pipeline forced upon them despite their objections.   The “steamroll” strategy is becoming increasingly appealing to parties across the political spectrum, and it is as sophomoric as it is ineffectual.   Politics is an art, and there are a few basic ways to get what you want, and to get it in such a way that the other side doesn’t seek to undo it once they regain power.  One is old fashioned horse trading – wherein you give the other side something that they value in return for something that you value.    Another is to co-opt members of the other side to your own position, to convince enough of them to “switch sides” that the core opposition is small enough that it is made politically ineffective.  It is this latter approach which is the best option for Keystone supporters.  Because, the fact of the matter is that the national government of Canada and the provincial government of Alberta are both committed to fully developing this resource and sending their oil to market.  The question is in which direction will it head – south to the US, or west, to the Pacific coast and from there, largely, to China?

In the August 2011 issue, National Geographic magazine spotlighted what it called “the wildest place in North America,” British Columbia’s Great Bear Rainforest.  The feature story exalts the stunning beauty and the environmental diversity of this ecological treasure.   But, there is another article in the issue.  That article highlights a threat to this region . . . the alternative to Keystone, “the pipeline through paradise,” across the Rockies to the Pacific.   The dangers of this pipeline are greater than from the Keystone pipeline because it is more remote, more difficult to get to should something go wrong, and perhaps most important, because it would terminate at a waterway that is difficult for large vessels to navigate.  Indeed, the various channels through which oil laden tankers would have to traverse are currently designated a “tanker free zone.”

Keystone supporters should seize for themselves the mantle of environmental protectors.   Although the regions through which Keystone would be built are also ecologically rich and beautiful, they are also more developed than the Great Bear Rain Forest.  The latter is an unspoiled treasure in greater need of protection.  The oil is going to flow, the argument should state, and it is far better that it flow south, where we can respond more quickly and adeptly should a problem arise, than that we should risk disaster in one of the very few wild and remote places left on our continent. One of these pipelines is going to be built; the opponents of Keystone are willingly putting the irreplaceable treasure of Great Bear Rain Forest at risk.

Make the environmentalists choose.  You won’t win them all over, but you will certainly sap their strength.

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Essential reading for the Keystone XL pipeline fight

September 1, 2011

Michael Levi at the Council on Foreign Relations’ Energy, Security and Climate blog takes a close look at the protestors’ claims against the pipeline.

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