Tag Archives: Oil and gas

BC Media Mogul David Black Proposes $13 Billion Refinery in Kitimat Linked to Enbridge Pipeline

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Read this story from the Vancouver Sun on BC media mogul David Black’s proposal to build a $13 Billion refinery in Kitimat to process Alberta bitumen from the Enbridge pipeline. (Aug 17, 2012)

VANCOUVER – B.C. community newspaper tycoon David Black proposed today building a $13-billion oil refinery near Kitimat to use all of the crude from Enbridge’s controversial Northern Gateway pipeline.

It would mean tankers would ship refined fuels like gasoline off of B.C. northwest coast, not heavy oil from Alberta, reducing environmental risks, says Black.

A refinery also promises 10 times as many jobs as an export pipeline.

See more David Black photos here

Black is hoping his proposal will change opposition from British Columbians and first nations, many of which have rejected the $6-billion project because they say the economic rewards for B.C. are not great enough to offset the risk and consequence of an oil spill on the pipeline or off the northwest coast of British Columbia.

Last month, B.C. Premier Christy Clark also declared the province would not even consider the Northern Gateway project unless it gets a much greater share of the economic benefits.

Acknowledging that oil producers that want to ship oil on the Northern Gateway pipeline are not in favour of a refinery in B.C., Black said his new company, Kitimat Clean Ltd., is submitting an environmental assessment application to build the refinery.

Since the economic returns from a refinery are less than exporting oil, and no company has stepped forward to spearhead the project, he decided to do it himself, said Black.

He first proposed the idea to Canada’s oil companies seven years ago when he was chairman of the B.C. Progress Board, and resurrected the idea 11 months ago.

“I am hoping to serve as a catalyst to attract an industry consortium that will undertake the project. But if no industry player steps forward during the two-year environmental assessment I will do all that I can to organize the capital and build the refinery,” said Black, who owns 150 community newspapers in B.C. and the United States.

Added Black: “I think the pipeline and the refinery are crucially important to our northern communities, to B.C., to Alberta and to Canada. We must protect the environment, but we must create jobs for the next generation as well. It is our responsibility to do both.”

The proposed refinery in Kitimat would provide many more jobs than an export pipeline.

The refinery is estimated to create 3,000 jobs, half of those directly in the refinery and the other half in contract jobs. Another 6,000 workers would be hired during the five-year construction period.

Black is proposing to reduce capital costs from Canada’s high labour rates by building refinery modules offshore to be shipped to Kitimat.

The Northern Gateway pipeline is estimated to create about 350 permanent and contract jobs in B.C., one-tenth of the permanent jobs a refinery would create.

A pipeline would also create thousands of jobs during its three-year construction phase.

The planned Northern Gateway pipeline is meant to open up new markets for crude from the Alberta oilsands, breaking the reliance on the U.S. market, and as a result bringing a higher price for Canada’s oil, an estimated $25 billion more a year.

That goal can be achieved with a refinery on the coast with access to Pacific Rim markets, said Black.

The refinery will also remove any threat of “catastrophic” offshore pollution from heavy crude oil because refined fuels such as diesel, gasoline and kerosene evaporate, said Black.

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TransCanada Begins Building Keystone XL in Texas Over Protests

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Read this story from the Los Angeles Times on Canaddian company TransCanada Pipelines’ preliminary construction on the controversial Keystone XL pipeline in Texas, amid strong opposition from local citizens and landowners. (Aug. 16, 2012)

The Canadian pipeline company TransCanada has quietly begun construction of the southern leg of the controversial Keystone XL pipeline, installing segments near Livingston, Texas, company officials confirmed Thursday.

“Construction started on Aug. 9. So we’ve now started construction in Texas,” TransCanada spokesman Shawn Howard told the Los Angeles Times.

The southern section of the pipeline received government approval in July.

The first in a series of protests also was launched Thursday as opponents of the pipeline, designed to eventually carry diluted bitumen from the tar sands of northern Canada to refineries on the Texas Gulf Coast, unfurled protest banners at two equipment staging yards in Texas and Oklahoma.

“We just wanted to demonstrate that although they might be ready to begin, we would be ready to meet them,” Ron Seifert, spokesman for Tar Sands Blockade, said in an interview.

He said citizens are prepared to stage sit-ins and other civil disobedience actions to halt the effort of “an international bully” to begin building a pipeline that has spurred widespread protests across the U.S.

TransCanada hopes to construct a pipeline from the Canadian border to Texas. But President Obama in January rejected the company’s application for an international permit to build the entire structure, saying it needed further study — particularly of any route through the sensitive Sandhills of Nebraska, which lie atop a massive agricultural aquifer.

TransCanada has agreed to reroute the northern portion of the pipeline in Nebraska and has launched a new application. In the meantime, the company, with Obama’s endorsement, has moved to begin construction of the southern half, from Oklahoma to Texas. This portion does not require an international permit.

That construction was imminent became clear in late July, when the U.S. Army Corps of Engineers approved the last of three key permits needed to build the southern section.

Read more: http://www.latimes.com/news/nation/nationnow/la-na-nn-keystone-xl-pipeline-20120816,0,6693892.story

 

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Cartoonist Murphy at it again: New video mocks Enbridge’s route animation

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Province cartoonist Dan Murphy is back at it – poking fun at Enbridge’s laughable marketing campaign for the proposed Northern Gateway Pipeline. (Incidentally, The Common Sense Canadian first alerted the public to Enbridge’s deceptive animated map back in February).

This time, it’s a spoof on the company’s bucolic animation of the pipeline and tanker route, derided by the public and media of late for its airbrushing out of the significant geolocial and environmental challanges to the project posed by BC’s rugged landscape and coast. This latest cartoon comes on the heels of the one he made several months ago, taking on the company’s newly-launched TV ad. That spoof stirred up major controversy as it emerged Enbridge had leaned on The Province’s parent company, Postmedia, to yank the cartoon, under threat of pulling a million dollars of advertising from the media chain. Murphy bravely went public with the situation, which helped the cartoon to go viral, giving both the paper and Enbridge a black eye in the process.

Check out Murphy’s latest cartoon:

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NDP Supports Fracking Pipeline to Kitimat

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Read this story from The Georgia Straight on the BC NDP’s support for a new pipeline designed to take natural gas from controversial hydraulic fracturing operations in Northeast BC to Kitimat on the province’s coast to be converted to Liquefied Natural Gas and shipped to Asian markets. (Aug. 15, 2012)

The B.C. NDP is opposing the proposed Enbridge oil pipeline, but it supports a pipeline that will transport gas produced through fracking.

 

For Michael Jessen, the Green Party of B.C.’s energy critic, that’s a clear double standard.

 

“The NDP is trying to have its cake and eat it too,” the Nelson-based Jessen told the Straight in a phone interview. According to him, New Democrats are wrong to back the planned 463-kilometre Pacific Trail Pipelines project that will run a pipe from Summit Lake, 55 kilometres north of Prince George, to a liquefied-natural-gas plant in Kitimat. The project is a joint venture of Apache Canada Ltd., EOG Resources Canada Inc., and Encana Corporation.

 

Kitimat is also the western end of Enbridge’s 1,170-kilometre pipeline that would move bitumen from Alberta’s tar sands.

 

Jessen said that the B.C. NDP’s position on the two projects that involve exports to Asia, in particular China, is contradictory. “Every credible scientist in the world says that we are in very grave danger of passing a tipping point when the planet may reach temperatures that cause considerable havoc,” he said. “And the solution that many of these scientists say we need to follow is to decrease our dependence on fossil fuels.”

 

Fracking is the practice of pumping fresh water and toxic chemicals deep into the ground to fracture shale bedrock in order to release natural gas.

 

“It’s been proven that when fracking occurs, there is a considerable amount of methane that is released into the atmosphere,” Jessen explained. “Methane is a far more immediate threat in terms of greenhouse gas when it is released.”

 

John Horgan is the B.C. NDP critic for energy, mines, and petroleum resources. “In terms of the notion that there’s a contradiction in NDP policy, I don’t think there is,” the Juan de Fuca MLA told the Straight in a phone interview.

 

Although the extraction and use of both oil and gas affect the environment, Horgan stressed that the impacts of gas are “not as devastating”.

 

“One of the arguments being made is that they’re both the same, and they’re not,” he said about the two fossil fuels.

 

The two-term MLA noted that his party supports the expansion of the natural-gas industry in B.C. “provided that appropriate regulatory regimes were in place”. The two-term MLA added that if the B.C. NDP forms the government next year, it will strike an expert panel to review fracking.

 

“We think that the industry is mature here, as opposed to other places where they’ve had concerns,” Horgan said.

Read more: http://www.straight.com/article-755826/vancouver/bc-ndp-favours-fracking-pipeline

 

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Global TV: Enbridge Under Fire for Misleading Animation of Pipeline, Tanker Route

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Watch this video news story from Global TV on the controversy over Enbridge’s pipeline and tanker route animation, which is drawing criticism for its misleading portrayal of Douglas Channel without the many navigational impediments it contains. The Common Sense Canadian broke this story months ago with this story by Damien Gillis. (Aug. 15, 2012)

 Watch video here: http://www.globaltvbc.com/video/index.html?v=Is64y8ASHdAdTsYZEpfELzqMJHMzKE46#news+hour+final

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China: The World’s Next Fracking Frontier?

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Read this story and check out this audio clip from PRI’s The World exploring new shale gas finds in China and the future of controversial hydraulic fracturing there. (Aug. 15, 2012

On Shanghai’s Huangpu River, a barge hauls coal upstream to one of the power plants that keeps this city booming. China is the world’s biggest energy guzzler, and it gets three-quarters of its power from coal.

But coal is one of the dirtiest fuels around. It’s the main reason so many of China’s cities are choked with smog, and why China is now the world’s biggest greenhouse gas polluter.

China energy analyst Bill Dodson says it’s “one of the disappointments in China’s rapid development… that it chose to use technologies that are about 200-years-old.”

But these days China is scrambling to find newer and cleaner technologies. And it thinks it’s found a promising one in hydraulic fracturing, or fracking.

Fracking is a relatively new way of getting at cleaner-burning natural gas. It uses pressurized water and chemicals to fracture soft shale rock deep underground and pump out natural gas trapped inside. The technology is revolutionizing energy markets and helping gas take a big bite out of coal use in the US.

“We’d like to repeat the same successful story in China,” says Yang Fuqiang, with the Natural Resources Defense Council (NRDC) in Beijing,

Yang says China is already making big strides in pollution-free power sources like wind and solar, but they’re still likely to provide only 15 percent of China’s energy by 2020.

“That is not enough’” Yang says. “So I think another way is to develop more natural gas and shale gas.”

China has huge untapped shale gas deposits, and supporters hope they can be a bridge between coal and broader use of renewables. The country has drilled several dozen trial wells, and in March, state-owned PetroChina signed its first production agreement with Shell. China has also invited other global energy players to bring in their technology and expertise.

But no one’s sure the investment will pay off.

“There is no guarantee that the technology will be suitable for China,” says Tao Wang, a scholar at Beijing’s Carnegie-Tsinghua Center for Global Policy. Much of China’s shale may be difficult to fracture. It also tends to be under rugged and remote terrain. So Tao says the Chinese are tempering their hopes for fracking.

Then there are the perhaps more formidable challenges.

Perhaps the biggest is that fracking requires huge amounts of water. That’s a big concern in a place like China, where the country’s age-old problem of water shortages is written into traditional songs like “The Yellow River is Dry.”

Energy analyst Bill Dodson says China’s water problems are only getting worse, and fracking would have to compete for the ever-scarcer supplies with industry, agriculture, and growing cities.

But others say that’s not a deal-breaker.

Ming Sung, a former chemical engineer for Shell who’s now with the Clean Air Task Force, says he’s cautiously optimistic about the environmental benefits of fracking, in part because there are now technologies that allow fracking operations to recycle the water they use. Researchers are also exploring chemical alternatives to water.

Read more and listen to audio story: http://www.theworld.org/2012/08/the-next-fracking-frontier-china/

 
 
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Enbridge CEO Whines About Environmental Groups “Seizing Control” of Pipeline Debate

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Read this story from the Edmonton Journal detailing the whining of Enbridge CEO Patrick Daniel about environmental groups seizing control of the pipeline debate. (Aug. 13, 2012)

EDMONTON – Environmental groups opposed to the Northern Gateway pipeline have seized control of the public debate, Enbridge Inc. CEO Patrick Daniel told a radio audience Monday.

“Everything that we say sounds defensive and self-interested, and on the other side, everything they say … is really taken as gospel — and it isn’t,” Daniel said on the Rutherford Show.

“I think we’re facing a very strong, almost revolutionary movement to try to get off oil worldwide, and it creates a lot of passion and drive in those revolutionaries that are trying to change the environment in which we work.

“They know that going after the end user, going after you and I when we drive our cars, … won’t work. So they’re coming after what they consider to be the weak link in the whole process, and that’s the infrastructure part of it.”

Calgary-based Enbridge wants to build the pipeline to the B.C. coast to export Alberta’s oilsands products to booming Asian countries.

The company is mounting its own public relations offensive, taking out newspaper advertisements and pressing its leaders into the public spotlight, highlighting the company’s long safety record and decades of “dependable service” to Canadians.

Read more: http://www.edmontonjournal.com/opinion/blogs/Enbridge+says+environmental+groups+have+taken+control+pipeline+debate/7084411/story.html

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CN already transports bitumen by rail - more proposals to do the same are now being floated as Enbridge runs out of steam

Replacing Enbridge with Rail, Other Routes Misses the Point

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The tide seems to be turning against the Enbridge Pipeline but we must take great care not to lose by winning.

Industry seems to be talking alternative routes by using rail or other methods.

My old friend Tex Enemark weighs in this morning in an op-ed in the Sun(August 15) and makes several points – we can soak the companies by levying high taxes for rights of way, we can make the pipelines safer (you will note he doesn’t say “safe”), we can use other routes, and that if we don’t permit the pipelines China will retaliate by reducing imports of our other goods.

WHAT NONE OF THESE VOICES SEEMS TO UNDERSTAND IS THAT BECAUSE THERE WILL BE SPILLS,THE DAMAGE, EVEN OF SMALL SPILLS, OF BITUMEN IS SO TOXIC THAT IT CAN NEVER BE REPAIRED AND THAT THE GUNK MUST GO TO MARKET VIA SOME OTHER METHOD.

Let me deal with the last point first – are we to announce to all trading partners, including the USA, that if you threaten our exports, you can come here and do as you please?

This is not a rhetorical question because a new government in 2013 will surely look at Private Power projects, many American owned, which could be canceled, altered or refused in the first place. Do we back off our sovereignty and say, “sorry for even thinking of this, Uncle Sam, please bring your money here and do with us that which you wish”?

Taxing the pipelines misses the point – this isn’t about money but our environment and while I know that old pols seem to believe that money solves all disputes, when it involves our sacred wilderness and our fish, money is off the table.

Making the pipelines safer is, with respect, a non starter. “Safer” does not mean “safe” and the latter is what we insist upon.

Let me pause for a moment and deal with the allegation that we environmentalists are simply bloody minded and are against all projects. The answer to that, from my perspective at any rate, is fourfold:

  1. We question all projects that impact our environment – if we didn’t, corporations would do as they pleased and that’s bad enough as it is.
  2. We insist upon any project that impacts our environment to leave little or no permanent damage. This can be and indeed is done all over the province.
  3. We expect the Precautionary Principle to be always in place, meaning that the onus of proving the environmental viability of any project rests with the proponent.
  4. We regard the safety and protection of our environment as protecting a sacred trust to be passed on.

The issue is unsolvable. It can’t be compromised or mitigated or compensated – not all problems can be solved by compromise, this and lost virginity being examples.

We run a very grave risk here – because once we get rid of the Enbridge line, we will be expected to go away.

We seem to be ignoring the Kinder Morgan line already pumping bitumen across British Columbia and plans to do more are coming. It will be said that because the absence of the Enbridge line removes the tanker issue in Douglas Channel, we can go away.

This simply is not so. Railways simply move the problem. The suggestion by Mr. Enemark that the port of Prince Rupert be used overlooks the fact that that pipeline would be alongside the Skeena River, one of the last great salmon rivers in the world. Always bearing in mind that pipeline leaks are inevitable, do we want to see the same happen to the Skeena that happened to the Kalamazoo?

We are, then, a hell of a long way from success and, in fact, must re-double our efforts.


A response from Tex Enemark:

Well, Rafe, there is a difference between “fair inferences” and quotes. You say flat out I said “safer” which I did not, and then reinforce your point by saying I did not say “safe” when in fact I said neither. I said “politically acceptable”. I think there is a very clear and quantifiable difference between the two. I made no mention of safe pipelines. Nor, as you say in your response, did I say anything about “better testing pipelines”.

One puts me in the position of being some kind of proponent or apologist for pipelines, which I am not. I am simply bringing out issues that have not yet surfaced.

The same with the allegation that I favour a pipeline to Prince Rupert. There are vast differences between the loss/possible breakage of a few rail cars that hold bitumen which will literally go nowhere when they hit cold water, and a pipeline in which the tar has been diluted.

Nonetheless, the damage to my reputation has been done among the readers of your blog.

I think a simple correction is in order, frankly–and fairly.

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Alberta bitumen must be diluted with toxic condensate just to make it flow

Meet ‘Dil Bit’: The Enbridge Testimony Stephen Harper Doesn’t Want Heard

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The following statement was made by Miranda Holmes today at the National Energy Board’s Joint Review Panel hearings into the proposed Enbridge Northern Gateway Pipeline in Comox, BC.

——————————————————————————————

Many voices have been heard during these hearings, yet one has remained silent: the oily character at the centre of the debate. I think that’s a shame and so I am using my time before the panel to allow this character’s case to be made.

Hi, my name’s Dil Bit. That’s short for Diluted Bitumen, but I feel like I’m amongst friends here, so let’s not be too formal.

I come from the tar sands and, as you know, Alberta totally digs me. Alberta’s so generous she wants to share me with everyone.

If she gets her way, I’ll be passing through British Columbia a lot in the future, so I thought I should introduce myself properly.

As fossil fuels go, I’m a bit unconventional. But, as Alberta’s favourite son Steve will tell you, I’m totally ethical. (And don’t let those jet setting celebrities tell you any different.)

I’m also way better than conventional crude oil.

For instance, my total acid concentrations are up to 20 times higher than conventional crude. My sulphur content is up to 10 times higher and I’m up to 70 times thicker. Pretty impressive, eh?

Yeah, it’s true I can be a bit abrasive. Bits of quartz, pyrite, silicates, sure I carry them around. It’s just the way I’m made.

So conventional crude doesn’t have my grit. So what? No need to point out, like those granola eaters at the Natural Resources Defense Council did, that putting me in a pipeline is “like sandblasting the inside of the pipe.”

I don’t know why the Americans have taken against me, because – like so many of them – I pack some serious heat. Thanks to my true grit and my thickness (I like to think of it as strength), I make pipes hotter than conventional crude – and harder to monitor. In fact, pipelines carrying me are16 times more likely to leak.

See? I told you I was better.

I’m Alberta’s most precious resource. You think she and Steve are going to let just anyone transport me? No way.

For my travels through British Columbia, they’re going to use Enbridge, a fine, upstanding company with an excellent track record. Why, it took Enbridge 10 years to spill half as much oil as the Exxon Valdez. And they didn’t just spill it in one spot – they spread it around.

Regulators in the US thought the three million litres of me Enbridge spilled in Michigan was so funny they compared the company to those great comedy characters the Keystone Kops.

If Enbridge maintains its current success rate it should be able to meet Steve’s federal standards, which allow undetected pipeline leaks of less than 2% of capacity per week.

For the Northern Gateway project that means Enbridge could legally leave 11 million litres of me a week behind on my way to Kitimat without getting into any serious trouble. And why should they? Eleven million litres of me would be more than three times funnier than Michigan, right?

That’s good news for me, because I’ve heard there are some mighty pretty places in northern BC and I think it would be a shame not to get to know them better.

And it’s good news for BC, because your premier’s promising lots of jobs out of oil and gas exports, and cleaning up after me will sure keep people employed.

Sorry if any of the spots I’m going to wreck is one of your favourites, but I’ve got to keep Alberta happy. You know what she’s like. 

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Would the Enbridge pipeline really deliver Canadian jobs?

Audio: Damien Gillis on Enbridge ‘Jobs’ Myth, Harper Working with Oil Lobby, Pipeline Politics

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Listen to this half-hour interview of Damien Gillis on Opposition Radio, an Ontario-based online radio program. Hosts Mike and Tony discuss with Damien the recent revelation that the Harper Goverment has been working with the oil lobby on a coordinated PR strategy to promote the Alberta Tar Sands. The three also delve into recent pipeline politics in BC and the “jobs” myth around the proposed Enbridge pipeline, discussing a recent story by Damien on the drive to import American and Chinese labour to build the pipeline and expand Tar Sands operations, and how that flies in the face of the Harper Government’s contention these developments are good for the Canadian economy. (30 min – recorded July 31, 2012)

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