Tag Archives: Keystone XL

Photo by Mark Brooks

Obama’s Keystsone XL Reversal: Could the Tide Slowly be Turning Against Dirty Oil?

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Editor’s Note: We are pleased to welcome Ottawa-based environmental journalist and educator Mark Brooks to our team of Common Sense contributors. A former analyst for the Government of Canada and an author whose work has appeared in The Globe and Mail and Ottawa Citizen, Mark brings a national perspective to The Common Sense Canadian. 

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Strolling around Washington, D.C. last weekend, I came upon an impressive memorial to the famous wartime president Franklin Roosevelt. Upon the gray granite walls were inscribed many of FDR’s most memorable quotations. “Men and nature must work hand in hand,” he wrote in a 1935 message to Congress. “The throwing out of balance of the resources of nature throws out of balance also the lives of men.”

Having traveled to the U.S. capital to cover the latest protest of the Keystone XL project, I wondered what FDR might say about TransCanada’s controversial pipeline proposal. A pipeline that would transport tar sands crude from northern Alberta to the Gulf of Mexico, Keystone has been described as a 2700 km “fuse to the biggest carbon bomb on the planet” in the words of author and activist Bill McKibben. Protest organizers had hoped to encircle the White House with at least 4000 people in what McKibben called both an “O-shaped hug” and “house arrest.” Instead, at least 10,000 protesters showed up, young and old, from all over North America, ringing President Obama’s residence three-deep.

This action was the latest in a growing campaign to try to choke off supply routes to the tar sands. The company behind the pipeline, TransCanada, responded in an entirely predictable manner, betraying an almost total lack of understanding of some very legitimate concerns. “What these millionaire actors and professional activists don’t seem to understand is that saying no to Keystone means saying yes to more conflict oil from the Middle East and Venezuela filling American gas tanks,” TransCanada spokesman James Millar said. “After the Washington protesters fly back home, they will forget about the millions of Americans who can’t find work.”

Only a few months ago, approval of the proposed Keystone XL pipeline was considered a fait accompli by many of the project’s supporters. Prime Minister Stephen Harper called the approval a “no brainer” and TransCanada was so sure it would get the go-ahead from U.S. regulators, they had already bought the pipe and was stockpiling it in North Dakota. The company claims to have already spent $1.9 billion to secure land and equipment for the project and it fully expected to begin construction early in 2012. This has all changed dramatically now that President Obama has ordered the U.S. State Department to conduct a thorough re-review of the project, effectively delaying approval of Keystone until after next year’s U.S. elections.

While another version of Keystone XL may yet be approved, the delay represents a substantial victory for those groups opposing the pipeline. It is also another significant setback for the beleaguered tar sands industry coming as it does on the heels of a European Commission move to classify oil from the tar sands as carbon intensive and highly polluting.

Truth be told, Keystone approval has been plagued by problems for some time now. The U.S. State Department came under heavy criticism this summer for releasing a hasty environmental assessment that found the project would pose no significant environmental risks. It was later revealed that the Department not only allowed TransCanada to select the contractor that conducted the review, the company chosen, Cardno Entrix, turned out to have business ties with TransCanada and would likely stand to benefit from the project’s approval. Environmental groups also released emails that showed a friendly relationship between officials at State and representatives of TransCanada.

The Nebraska legislature then began considering legislation that would have forced TransCanada to reroute the pipeline away from the Ogallala aquifer, a major source of drinking water for the region. Comments by President Barack Obama further fuelled speculation that the writing was on the wall when he took personal responsibility for approval of the pipeline and said that “folks in Nebraska, like all across the country, aren’t going to say to themselves, ‘we’ll take a few thousand jobs’ if it means that our kids are potentially drinking water that would damage their health or if … rich land that is so important to agriculture in Nebraska ends up being adversely affected.”

The decision to delay was nonetheless remarkable given the current dismal economic climate in the U.S. and the well-financed campaigns being waged by TransCanada and the governments of Canada and Alberta promising jobs and economic growth should Keystone be approved. In the end, a hodge-podge collection of environmental and labour groups, Nebraskan residents, a few politicians and a handful of U.S. celebrities have managed to, temporarily at least, derail the $7 billion project. As Naomi Klein tweeted after the decision was announced, when the campaign against Keystone XL began, “most Americans hadn’t heard of the tar sands, let alone Keystone. This is what 3 months of amazing campaigning can do.”

The governments of Canada and Alberta both expressed disappointment with the decision but remain optimistic that the project will eventually be given the green light. But rather than addressing the very legitimate concerns of the many disparate groups who have come together to oppose Keystone XL, Federal Natural Resources Minister Joe Oliver said recently that “if they don’t want our oil…it is obvious we are going to export it elsewhere.” TransCanada immediately warned that the delay could kill the pipeline but vowed to work with the State Department to find a new route. The company’s Chief Executive Russ Girling has suggested a legal battle could ensue if the pipeline is delayed.

What backers of the pipeline have not yet been able to fully grasp is that, for the growing movement opposing the project, this campaign goes far beyond Keystone. At its core, this is a struggle over the kind of energy future we want to build for ourselves. When I spoke with Naomi Klein in Washington, she put it this way. “This is not just about Keystone, it’s about all the pipelines. Whether it’s in Nebraska or British Columbia, whether we’re talking about Northern Gateway or Kinder Morgan, people have made it clear they’re willing to take actions in line with the urgency of this crisis. Even if they approve this pipeline or any other, they have to know there will be people in front of every bulldozer.” Sure enough, in the hours following the State Department decision, the Twitter-verse was buzzing with individuals committing to take non-violent action should the Keystone project ever be approved.

Also speaking in D.C., NASA scientist James Hansen, one of the world’s leading climatologists, captured what many in the crowd and a growing number around the world are coming to realize, that we are at a critical juncture. “There is a limit to how much carbon we can pour into the atmosphere. Tar sands are the turning point in our fossil fuel addiction. Either we begin on the road to breaking our addiction or we turn to even dirtier fossil fuels.” If Keystone XL or the proposed Enbridge Northern Gateway pipeline to the west coast of B.C. is built, it will ensure increased tar sands production and a commensurate rise in greenhouse gas emissions.

For climate justice activists, labour groups and citizens assembled in Washington, this scenario is no longer acceptable. The decision to delay Keystone XL is no doubt reason for optimism, but it likely represents only the beginning for a movement that now appears to be at last finding its stride. What these folks are demanding is not simply that the tar sands pipelines be re-routed to safer terrain or that adequate measures are put in place to prevent oil spills, they want a long-term plan to gradually wean ourselves off fossil fuels and towards a clean energy future that could create millions of green jobs, something the governments of Canada and the U.S. have thus far refused to consider. Until they do, it will mean that “the arteries that are carrying this dirty oil all over the world” must be blocked, Maude Barlow of the Council of Canadians told me. “If we can stop Keystone, we can stop Enbridge going west. It’s the beginning of a real movement with Americans and people around the world to say this is the wrong model.”

Mark Brooks’ Video of Naomi Klein speaking in Washington, D.C. on November 5

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Rafe in the Tyee: Keystone XL Delay Increases Pressure for BC Pipelines, Tankers

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Read this editorial from Rafe Mair in The Tyee on the increased pressure to build oil pipelines from the Tar Sands through BC in the wake of Obama’s decision to send the proposed Keystone XL pipeline to Texas back to the drawing board.

“Now that the Obama administration has delayed its decision
on whether to approve the Keystone XL pipeline from Alberta’s oil sands
to refineries in Texas, we had better gear up for quite a fight here in
British Columbia. The pressure just rose to push through two dangerous
oil sands pipeline projects running through our own province.” (Nov. 14, 2011)

Read article: http://thetyee.ca/Opinion/2011/11/14/Oil-Spill-Threats/

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Obama Sends Keystone XL Pipeline Back to the Drawing Board for New Route

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Read this story form the Globe and Mail on the Obama Administration’s surprising decision to send Trans-Canada’s proposed Keystone XL pipeline back to the drawing board for a new route. The move is expected to set the project back at least a year and a half and is being hailed as a victory by the project’s opponents.

“The U.S. State Department’s move to withhold a permit on
TransCanada’s Keystone XL pipeline until after the 2012 election is
officially meant to give the Obama administration more time to find an
alternative route for the conduit through Nebraska. But the
additional review announced Thursday has all the markings of a delaying
tactic aimed at sparing the President the dicey task of making a
politically tough call that could alienate a critical constituency
and/or hand ammunition to his opponents.” (Nov. 10, 2011)

Read full article

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Robert Redford Talks Tough to Obama on Keystone XL, Water and Air Quality

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Read this op-ed from famed American actor and filmmaker Robert Redford in ReaderSupportedNews.com, calling out President Obama for not living up to his election promises.

“One reason I supported President Obama is because he said we must
protect clean air, water and lands. But what good is it to say the right
thing unless you act on it? Since early August, three administration decisions –
on Arctic drilling, the Keystone XL pipeline and the ozone that causes
smog – have all favored dirty industry over public health and a clean
environment. Like so many others, I’m beginning to wonder just where the
man stands.”

http://readersupportednews.org/opinion2/271-38/7303-obamas-priority-corporate-profits-or-public-health

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Naomi Klein Joins Growing List of Arrests in DC Over Keystone XL

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Read this report from the Toronto Star on the arrest of Canadian activist and author Naomi Klein in Washington, DC at the protest over the proposed Keystone XL Pipeline from the Alberta Tar Sands to refineries on the US Gulf Coast.

Klein was arrested alongside fellow Canadian Gitz Deranger, from the
Athabasca Chipewyan First Nation, and several American native leaders on
Day 13 of the protest. “I have seen the devastation of our environment and people’s health
with increased cancer deaths,” Deranger said before his arrest. “If
Obama approves this pipeline, it would only lead to more of our people
needlessly dying.” (Sept. 2, 2011)

http://www.thestar.com/news/canada/article/1048697–canadian-author-naomi-klein-arrested-at-white-house-pipeline-protest

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Nebraska Governor Calls on Obama Administration to Reject Keystone XL

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Read this report from USA today on Nebraska Governor Dave Heineman’s call for President Barack Obama and Secretary of State Hillary Clinton to reject the proposed Keystone XL Pipeline from the Alberta Tar Sands to refineries on the US Gulf Coast.

“Heineman said he supports pipeline projects but
opposes the proposed TransCanada’s Keystone XL route that would cross
the vast Ogallala aquifer. In a letter to
Obama and Clinton, the Republican governor said he was concerned about
the potential threat to the crucial water source for Nebraska’s farmers
and ranchers.” (Sept 1, 2011)

http://www.usatoday.com/money/industries/energy/story/2011-08-31/Neb-governor-urges-Obama-to-deny-pipeline-permit/50204660/1?fb_ref=.Tl-MPJ7D1VY.like&fb_source=profile_oneline

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Keystone XL Protest Arrests Include Former Obama Campaign Writer

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Read this article form the Huffington Post on the arrest of Elijah Zarlin, a former new media writer for the Obama campaign, at the protests in Washington, DC over the proposed Keystone XL Pipeline from the Alberta Tar Sands to the US Gulf Coast.

“Like many of the 2,000 volunteers who have signed up to participate in
the White House sit-ins, Zarlin, who now works as a campaign manager at
CREDO Action, is calling on Obama to block approval of TransCanada’s
Keystone XL. The oil pipeline would run from the Canadian tar sands in
Alberta to refineries on the coast of the Gulf of Mexico.” (Aug 30, 2011)

http://www.huffingtonpost.com/2011/08/30/keystone-xl-pipeline-protest-obama-writer-arrested_n_942523.html

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CTV Video: Arrests Made at Tar Sands/Keystone XL Protest in DC

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Read and watch these video and print reports from CTV News on the start of week-long protests in Washington, DC over the proposed Keystone XL Pipeline from the Alberta Tar Sands to the US Gulf Coast – where some peaceful arrests are already being made. (Aug 20, 2011)

Additional story at Huffington Post: Tar Sands Action Protests In Washington, D.C.

YouTube video: Climate Wars: Episode 1: The Tar Sands

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Climate Justice meets Civil Rights in DC over Keystone XL pipeline

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Read this story from the Tyee’s Geoff Dembicki on the historic civil uprising brewing in Washington, DC over opposition to the proposed Keystone XL Pipeline and other climate flashpoints, like the Tim DeChristopher issue.

“The end-goal of this mass act of civil disobedience, hyped as the largest in American climate movement history, is to kibosh TransCanada Corp.’s proposed Keystone XL pipeline. For organizers, this proposal is about much
more than a US$7 billion steel artery pumping crude from Alberta’s oil
sands to Texas Gulf Coast refineries — it’s a referendum on the fate of the climate.” (Aug 19, 2011)

http://thetyee.ca/News/2011/08/19/Climate-Justice-Movement/

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Enbridge Chairman Pat Daniel

Rumours of Pipeline’s Demise Grow as Speculation Surrounds Enbridge

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It’s impossible to divine anything concrete from the flurry of interesting chatter surrounding Enbridge’s embattled 1,100 km Northern Gateway Pipeline proposal. Alternate routes, Asian energy experts laughing at our stupidity, Enbridge as a straw man to help push through another pipeline to the US…Much of it coming via rumours, hypotheses, and veiled political innuendo.

But one thing it does indicate is a sudden shift in the once-predictable narrative connected to Enbridge’s project.

Up until recently, the story was all about a stand-off between the world’s biggest pipeline builder and stubborn First Nations and environmentalists in BC opposed to the project. The company and its political boosters maintained it was good for the economies of Western Canada, would provide oodles of person-years of employment and a bituminous shot to our GDP.

If they could just get us skeptical citizens and First Nations to get that through our thick skulls – and stop worrying about the threat of spills, in spite of the company’s dismal track record.

As the storm has brewed over the past year and a half, the company has focused its efforts on shoring up political support and wooing First Nations with increased economic incentives. Postmedia’s resident corporate/oil industry apologist, Barbara Yaffe, was issuing free lectures to aboriginal leaders as recently as a couple weeks ago, advising them to suck it up, get with the times, and get onside this oil pipeline project, as well as a highly contentious mine proposal at Fish Lake in the Chilcotin region.

The political strategy seemed to be working – with the exception of the Clark Government’s coy avoidance of outright support for the pipeline of late (even they can read polls and see how unpopular the concept is in BC – better to sit on the sidelines than say something printable in support). The issue figured prominently at recent meetings between the country’s provincial energy ministers and premiers – and Alberta’s energy minister Ron Liepert has been an enthusiastic torch bearer for the project.

With a fresh Harper majority in Ottawa, it would seem the political conditions are right for Enbridge.

But on every other front, the company is, well, getting its butt handed to it. Their image woes now extend to major international press, including National Geographic, ABC News and the New York Times.

And so it is that rumours and hypotheses implying the pipeline is in real trouble (or should be) begin to spread.

All of a sudden, we have 3 – count ’em – relatively new proposals for getting Alberta Tar Sands crude to tankers on the north Pacific Coast. One by rail to Prince Rupert, one a spur off a proposed KinderMorgan pipeline expansion, and the other floated just this week in a Sun column by Barbara Yaffe.

Ms. Yaffe’s now signing a different tune – suggesting that all the controversy from the Enbridge line could be avoided by shifting to a new scheme from a little-known Vancouver consulting company called G Seven Generations, Ltd. The company is apparently involved in a plan to move bitumen by train from Alberta to Valdez, Alaska (yes, the same Valdez of Exxon infamy) – one would presume through the Yukon, though that detail is omitted in Yaffe’s column.

Yes, perhaps this $20 Billion pipeline on rails (almost 4 times the projected cost of the Enbridge line) is the answer. Ms. Yaffe certainly seems to think it should be a breeze. Just as, I’m sure, Enbridge thought about its pipeline only a few short years ago.

Or maybe KinderMorgan – the company stealthily trying to slip by the public with a massive expansion (potentially totalling over 800,000 barrels/day of new Tar Sands capacity) will build a spur off its Trans-Mountain Pipeline east of Prince George and follow a very similar corridor as Enbridge to a new tanker terminal in Kitimat (how they think this proposal will be music to people’s ears following a defeated Enbridge line with essentially the same flow of oil through the same path is a mystery). The company floated the spur on its website earlier this year.

Or could the bitumen be carried on CN rail lines to the Port of Prince Rupert?…

Then, just this week we read in a column in the Tyee by Dr. Michael Byers an account of a candid conversation he claims to have had at a recent international conference in Hawaii, shedding yet new light on the subject.

Byers says he overhead a number of high-level Asian energy players mocking us silly Canadians for building a pipeline to our Pacific Coast, ostensibly to carry bitumen to Asian countries that have no use for it – owing to a severe lack of refinery capacity to deal with the problematic black sludge. The man Byers is speaking to is “the chairman of a Singapore-based consulting firm that operates at the highest levels of the global oil and gas industry.”

This energy consultant tells Byers:

“‘The Gulf of Mexico coast is the only place in the world with any significant capacity for handling bitumen. That’s because it has refineries equipped to handle heavy oil from Venezuela. If the Asians buy any bitumen from Canada, they’ll insist on a very steep discount, because they’ll have to ship it to the Gulf of Mexico, too.’

He chuckles. ‘But we don’t tell the Canadians this straight-out. We write a report for them.'”

Byers relates more of their conversation, as he asks the consultant:

“‘But what about the Northern Gateway?…Enbridge is a major player. Surely they would realize that there’s no market in Asia?’

‘Enbridge is a pipeline company, not an oil company,’ he replies, taking an even closer look at me. ‘They’ve promised to find a market, and nothing more. They don’t care if it’s at a discount.’

‘So you’re saying that Northern Gateway doesn’t make economic sense,’ I studiously repeat.

He nods emphatically. ‘If the Canadians were smart, they’d build the capacity to refine all their bitumen at source, so as to ship a much more valuable product to Asia and elsewhere. But there are only a handful of upgraders in Alberta — and their capacity is actually going down.'”

So the Asian market will take Canadian bitumen, but only at a “steep” discount – which completely contradicts one of Enbridge’s main justifications for the project: that it will enable Canadian oil companies to fetch a higher dollar for Tar Sands crude on the international market (which typically pays a little more than the West Texas-based crude exchange for North American oil).

The upshot, according to Byers’ consultant, is that the Enbridge Northern Gateway is primarily functioning as added pressure on US regulators to approve the proposed 3,200 km Keystone XL pipeline from the Tar Sands to refineries on the US Gulf Coast. In the wake of two serious spills in the States from the pipeline’s existing sister line, the Keystone Pipeline, this latest proposal form TransCanada Pipelines is meeting unexpected opposition from environmentalists and political forces in Washington as the Sate Department deliberates the project’s future.

The idea is that the possibility of a competing export route to Asia will heighten pressure for our southern neighbours to pass the Keystone XL.

Does all this second-hand speculation portend the end of Enbridge’s pipe dream, or are these rumours of its death – as Mark Twain once said – greatly exaggerated?

The coming months, in the lead-up to the public hearings for the project at the National Energy Board, should provide some interesting new chapters to this saga.

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