Does Tar
Sand Oil Increase the Risk of Pipeline Spills?
Not exact matches
The latest National Energy Board forecasts for
increases in
oil sands production through 2025 roughly add up to what Keystone and Trans Mountain could handle, says University of Calgary economist Trevor Tombe.
Labor unions have pushed for approval of the pipeline, saying it would create thousands of construction jobs, while environmentalists opposed it because it would
increase greenhouse gas emissions from Canada's
oil sands.
The Panel excluded any discussion of the environmental impacts of
oil sands development, although they did allow the consideration of
increased oil prices generated by the pipeline on the taxes and royalties associated with forecast future
oil sands production.
Oil sands production will continue to
increase in the near term, likely through 2020 if not beyond, unless prices decrease materially relative to today.
Cenovus» first quarter saw an
increase in its
oil sands production to 144,000 barrels per day, up 20 % from the same period in 2014, and lowered operating costs across its assets.
The report also counters warnings from environmentalists that the pipeline's construction would spur a huge
increase in production from western Canada's tar
sands, believed to be one of the biggest reserves of crude
oil outside Saudi Arabia — unleashing torrents of greenhouse gases into the atmosphere.
The company says it is working to ease the pain of toll
increases, but it argues that the line is needed as a result of
oil sands growth.
Indeed, just ask the
oil industry itself how important new pipeline connections are to not only
increasing production, but also the very commercial viability of the
oil sands resource.
Contrary to the opinion of the US State Department, approving Keystone XL is indeed a necessary condition to
increasing oil sands production.
Ultimately, though, the State Department finds that an
increase in the amount of
oil moved by rail will allow new
oil sands production to come on - stream whether or not new pipelines are built.
But when the B.C. government announced this week plans to bar
increases to diluted bitumen (
oil sands crude) shipments while it launches a new panel study of spill research, the group Stand.earth advised Kinder Morgan investors to call their brokers because this will delay or permanently thwart the company's federally approved Trans Mountain pipeline expansion.
So, using their numbers above, for each barrel shipped on KXL, you'd have somewhere between 0.08 and 0.78 barrels of
increase in total consumption, with between 0.22 and 0.92 barrels of
oil which would have been produced elsewhere being substituted - for by
oil sands production.
Let me give you a simple example — suppose the marginal barrel of
oil globally is, in fact, an
oil sands barrel, and so an
increase in
oil sands supply (i.e. more barrels available at a lower price) would
increase world
oil production and consumption.
«It is likely that Keystone XL would, in fact, drive
increased oil sands production in Alberta,» says an institute paper.
Consider this: the US is
increasing its own production of natural gas — much cleaner than tar
sands oil.
The Pembina Institute argues the pipeline would enable
oil sands companies to get a better price at U.S. Gulf refineries, sending a market signal to
increase production.
Despite a saturated world market, North American production, whether it's bitumen from Alberta's
oil sands or light
oil from North Dakota or Texas, continues to
increase.
Now they want to relive the glory days by
increasing the amount of
oil flowing from the tar
sands at any cost.
Moreover, lower potential output in the U.S. eases the risk of a regulatory ban on
oil from Canada's
oil sands, and could lead to
increased oil exports to the U.S.»
And even if Canadian courts ultimately deem such probing too onerous within the rubric of «reasonableness» review, such details can provide fodder for public commentary that can undermine the government's position in the court of public opinion (regarding the economic case for
increased oil sands production, for example, see University of Alberta Professor Andrew Leach's commentary here).
Probably the most discussed aspect of the NGP Report (see this excellent discussion on CBC's The 180 beginning at around the seven minute mark) is the JRP's treatment (or lack thereof) of «upstream» greenhouse gas emissions (GHGs), and specifically the apparent asymmetry between the JRP's decision to consider the need to open markets for projected
increases in
oil production — the vast majority of which would uncontrovertibly be from the
oil sands — but not the GHGs associated with this projected growth.
In his May 2009 paper «The Canadian
Oil Sands: Energy Security vs. Climate Change» (long one of my favorite sources), Levi identifies a list of six security and economic consequences of oil consumption and production and then examines how increased oil sands production and exports to the U.S. would mitigate or exacerbate these impac
Oil Sands: Energy Security vs. Climate Change» (long one of my favorite sources), Levi identifies a list of six security and economic consequences of
oil consumption and production and then examines how increased oil sands production and exports to the U.S. would mitigate or exacerbate these impac
oil consumption and production and then examines how
increased oil sands production and exports to the U.S. would mitigate or exacerbate these impac
oil sands production and exports to the U.S. would mitigate or exacerbate these impacts.
In fact, absent new measures Environment Canada's 2014 emissions trends report projected that
oil sands emissions would drive
increased emissions from the
oil and gas sector of 45 Mt CO2e (to a total of 204 MtCO2e) between 2005 and 2020, offsetting the emission reductions made in other sectors.
The Crown corporation's original government funding of $ 100 - million
increased over time to $ 1 - billion, with the objective of developing technologies and processes that would get the private sector back working on the 90 per cent of the
oil sands that were too deep to be surface mined.
But the fact of the matter is that the
oil sands have
increased incomes across Canada to an extent much greater than that paragraph implies.
To be certain, the opposition to projects like the Keystone XL pipeline, which would carry Alberta
oil sands products to US markets, and the Northern Gateway pipeline, which would carry
oil sands products to a new west coast terminal for export to Pacific markets, has caused delays and
increased costs to proponents.
Speaking in New York in May, Mr. Harper emphasized that the rejection of the Keystone XL pipeline would lead to an
increase in
oil sands shipments by rail, which he called «more environmentally challenging» than pipelines.
This has
increased pressure on companies with
oil sands assets to improve (i.e., reduce) their environmental footprint, and in some cases, to divest such assets.
The additional boycott from Avon and others announced in early December just goes to show that the risks that the
oil sands will lose its social licence
increase.
How can it be that blocking the Trans Mountain pipeline expansion — which, if built, will almost assuredly
increase the GHG emissions from Alberta's
oil sands — would undermine Canada's climate change plan?
How else could he argue, as he did recently in a Maclean's opinion piece, that blocking the Trans Mountain pipeline expansion — and along with it,
increased GHG emissions from Alberta's
oil sands — would jeopardize Canada's climate change plan and make it impossible to meet our emissions reduction target under the UN Paris Agreement?
The company, Canada's No. 2 pipeline operator, released a letter sent to U.S. Secretary of State John Kerry and other department officials saying that
increased carbon levies for Alberta
oil sands producers and new Canadian targets for greenhouse - gas emission cuts should serve to help assuage U.S. concerns that approving the C$ 8 billion ($ 6.41 billion) project would
increase climate change.
The Canadian province, which holds the world's third - largest crude reserves, is reviewing renewable - energy policies as exports from its
oil sands face
increasing opposition from environmental groups and lawmakers in the U.S. and Europe.
On the other hand, Canadian
oil production, especially from the
oil sands of Alberta, but also from offshore fields in the Atlantic, is bound to
increase with the passage of time.
Even building just one LNG terminal coupled with modest
oil sands growth would
increase oil and gas emissions from 26 per cent of Canada's total greenhouse gas emissions in 2014 to 45 per cent by 2030.
But in the end,
increasing pipeline capacity to get more tar
sands oil to market is a clear contradiction to Canada's promises under the Paris Agreement.
«Until ongoing efforts to reduce greenhouse gas emissions associated with the production of
oil sands are more successful and widespread, the Final SEIS makes clear that, compared to reference crudes, development of
oil sands crude represents a significant
increase in greenhouse gas emissions,» the EPA states in a letter made public Tuesday.
And in the environmental impact statement, Pilgrim officials wrote: «While crude
oil shipment downriver is a relatively recent phenomena on the Hudson River, the
increasing production of crude in North America because of fracking, and Canadian tar
sands, is likely to result in
increasing demand to move the crude
oil to coastal areas for shipment to refineries.
Since it received permission to
increase the amont of
oil it transports, Global has also sought to add a crude
oil heater that would allow it to bring in thick tar
sands.
«Common sense holds that the Keystone XL pipeline will
increase supply from the Alberta
oil sands region,» he says.
In a surprise move, the president also weighed in on the controversial Keystone XL pipeline, planned to transport
oil from Canada's tar
sands to refineries on the Gulf of Mexico — suggesting that it will go ahead only if it causes no
increase in carbon emissions.
For every barrel of extra
oil obtained from tar
sands as a result of the pipeline, global
oil consumption would
increase by 0.6 barrels, because the extra
oil would lower
oil prices and encourage people to use more.
Of the 6 mb / d
increase in global
oil production between 2006 and 2014, almost a fifth came from the Canadian tar
sands, and the rest from the US «shale
oil revolution» driven by fracking.
The study, published Wednesday in the journal Nature, showed that the production of tar
sands and other heavy
oil — thick, highly viscous crude
oil that is difficult to produce — are a major source of aerosols, a component of fine particle air pollution, which can affect regional weather patterns and
increase the risk of lung and heart disease.
However, the stark reality is that global emissions have accelerated (Fig. 1) and new efforts are underway to massively expand fossil fuel extraction [7]--[9] by drilling to
increasing ocean depths and into the Arctic, squeezing
oil from tar
sands and tar shale, hydro - fracking to expand extraction of natural gas, developing exploitation of methane hydrates, and mining of coal via mountaintop removal and mechanized long - wall mining.
It will reduce producer's transportation costs, while also
increasing the average price per barrel as
oil from the
sands starts to trade more in line with WTI.
Concerns included the footprint of the pipeline and it generally causing an
increase in
oil production from the
oil sands in Alberta.
Production for Baaken and the Canadian
oil sands continues to
increase faster than pipeline and transportation capacity.
However, peak
oil means a double whammy — it reducec GHG emissions from
oil, however, there is the danger, that we switch to coal - to - liquids, gas - to - liquids, tar
sands and
oil shales, just because
increases in energy efficiency, solar and wind output are not enough to counter population
increase, decrease in
oil availability, and
increase in total energy consumption...