“Keystone Isn’t A Futile Fight”: The Owners Of The Keystone Pipeline Just Canceled A Project In Canada
TransCanada on Thursday announced a two-year delay to its plans to move the Canadian tar sands. The company is cancelling its plans to build a controversial export terminal in Quebec, citing environmental concern over the endangered beluga whale. This means a delay to plans for finishing the Energy East pipeline, now set for 2020. In the meantime, TransCanada will search for a new location for its port.
For once, then, Canadian oil news isn’t about the TransCanada-owned Keystone XL, which has faced a six-year delay as the Obama administration sits on a decision to issue a permit. At least not directly, anyway. Energy East, once completed, would be even bigger than Keystone XL, delivering 1.1 million barrels of crude oil per day, compared to Keystone’s 800,000 barrels. As its name implies, the pipeline would run from the Alberta tar sands eastward to the shipping lanes of the Atlantic coast.
Not only are Keystone and Energy East similar battles, but proponents (and opponents) often tie the two pipelines’ fates together. Keystone opponents say building that pipeline would ensure tar sands extraction continues at a rapid pace, setting the world on track for severe climate change. Proponents argue that Keystone doesn’t matter either way, because other pipelines like Energy East make tar sands development inevitable. If the United States doesn’t build its pipeline, they say, Americans will miss out on the economic benefits. “We don’t think there’s any way that the oil will stay in the ground,” Matt Letourneau, a spokesperson for the U.S. Chamber of Commerce, said last year. “Certainly the market will find a way.”
But so long as there are delays, tar sands development isn’t inevitable because Energy East’s future, like Keystone’s, is far from settled. Oil companies are still in the middle of working out how to get the landlocked tar sands to the coasts for refining and shipment, and during their delays on multiple fronts, Keystone isn’t a futile fight.
The delay could provide a boost to organizers trying to delay other tar sands projects. Each of these pipelines face a similar environmental playbook: Delay as long as possible in the hopes that it becomes unprofitable or impossible for companies to pursue their plans. Keystone has faced years of delay, and now Energy East faces its own uncertain future. Environmentalists weren’t the only reason for TransCanada’s change of plans. Because oil prices are low right now, companies have little incentive to pursue their plans to extract costly tar sands for little profit.
TransCanada still has a strong incentive to find a new port and finish construction. Oil prices surely will rebound eventually, making the tar sands profitable once again.
“I don’t think you can look at this as a major impediment to the future of oil sands development but it certainly speaks to the opposition to pipelines, the anxiety about shipments of oil and, of course, to the increasing importance of environmental protection to the public,” Andrew Leach, an economist with the University of Alberta, said. “The beluga is an iconic species, so I think the writing was on the wall for this once the risk to habitat was made clear, in particular in Quebec.”
In the short-term, however, this is a win for environmentalists. And it may even help them in their fight against Keystone.
By: Rebecca Leber, The New Republic, April 2, 2015
Koch Industries, considered Public Enemy Number One by many environmentalists, is blanketing the airwaves with an ad campaign touting its contributions to society.
Charles and David Koch, billionaire moguls of a fossil fuel empire, sign off their company’s self-aggrandizing ads with the triumphant exclamation “we are Koch!”
The main ad in their series of spot commercials features a kaleidoscope of bucolic farms as well as bustling factory workers and lab technicians. A narrator informs us that the company has a 60,000 strong workforce dedicated to providing a broad range of products to” help people improve their lives.” [“We Are Koch.”]
There is no mention of this second largest privately held company in the nation being slapped with numerous fines for pollution offenses. There is nary a word about the Koch brothers using their immense wealth to finance the debunking of climate change. No reference is made to the company’s lobbying efforts to thwart clean, renewable energy expansion and weaken anti-pollution regulations.
One of the ads features Claire Johnson, an environmental engineer lauding the work of her employer, Flint Hill Resources, a Koch chemical refining multi-site operation.
“If a pollution incident does occur,” Johnson declares as she stares into the camera, “we are great at self-regulation…” [We Are Koch.]
Koch’s perception of its self-regulatory skills is not shared by government authorities responsible for safeguarding our air, water and land. You can understand why when you learn that the very same Flint Hill Resources was recently fined $350,000 for allowing a Texas chemical plant to leak a lethal amount of hazardous emissions.
To counter the Koch’s pervasive propaganda, an advertising rebuttal is needed. Television satirist Jon Stewart took a one-time stab with a video parody displaying oil fields and polar bears. The video was accompanied by a supposed Koch narrator rhapsodizing that “with our devotion to fossil fuels, we [Koch] make your planet warmer and water more flammable while lubricating your birds and displacing your polar bears.”
Unfortunately, Stewart doesn’t have the resources to saturate the electronic mass media with his visual message. It is a shame there is no major ad campaign offering such responses as something like the following. Picture a Koch Industries chemical plant discharging suspicious-looking affluent into a waterway with a narrator boasting “here is a Koch plant operating at full tilt.” A sonorous voice then intones “They Are Koch.”
How about a video in which a melting iceberg collapses into the sea as a Koch narrative drones “global warming is a natural phenomenon. There is no human-induced climate change. They Are Koch.”
The camera zooms in on a bulldozer unloading toxic coal residue into a hazardous waste landfill with a voice-over proclaiming “renewable energy at this stage is unaffordable. That leaves the plentiful coal and other fossil fuels we supply as the only practical alternatives for the foreseeable future. They Are Koch.”
Koch Industries employs a lot of people, but it jeopardizes a lot as well.
By: Edward Flattau, The Blog, The Huffington Post, March 25, 2015
It’s a very exciting time in the world of oil geopolitics, if you’re a fan of juvenile saber-rattling in the service of making billionaires even richer:
The fracking boom has driven US output to the highest in three decades, contributing to a global surplus that Venezuela has estimated at 2 million barrels a day. That’s equal to or more than the production of six OPEC members…
Conventional oil producers in OPEC can no longer dictate prices, United Arab Emirates Energy Minister Suhail Al-Mazrouei said in an interview in Vienna this week. Newcomers to the market who have the highest costs and created the glut should be the ones to determine the price, he said.
“That is what OPEC is hoping for,” said Carsten Fritsch, a commodity analyst at Commerzbank in Frankfurt. “It’s the question of who will blink first.”
OPEC will feel pressure too, with prices now below the level needed by nine member states to balance their budgets.
The United States has been making it a matter of public policy to poison its own groundwater and stress its fault lines by fracking, steaming and acidizing for oil. This is partly in order to enrich its own oil magnates, and partly to stick its thumb in the eye of Russia, Venezuela and OPEC. The Hillary Clinton-led state department has only been too happy to strongly encourage shale gas fracking in Europe in order to frustrate Russian ambitions as well.
So OPEC has been flooding the world with cheap oil partly out of revenge, partly in a regional power play against Iran and others, and partly to disincentivize Western fracking by making it economically unfeasible.
It’s all good fun, and I’m sure the players feel like they’re doing great work to advance the interests of their “good people” against all those other “bad people” in those nasty other countries.
Of course, what almost no one is paying attention to in the middle of all this is the impact on climate change and the planet. We now know beyond a doubt that if all of this new shale oil comes out of the ground and gets burned into the atmosphere as CO2, the world’s youngest inhabitants may not have many habitable places left to live by their retirement age.
But that’s not so important compared to frustrating the economic ambitions of that rival nation-state, right?
By: David Atkins, Political Animal, The Washington Monthly, November 29, 2014
“Selfless Libertarian Activist?”: Charles Koch Personally Founded Group Protecting Oil Industry Hand-Outs, Documents Reveal
“Lifestyles of the Rich Environmentalists,” produced by a group called the Institute for Energy Research, is a slick web video campaign designed to lampoon Leonardo DiCaprio and will.i.am as hypocrites for supporting action on climate change. The claim is that wealthy celebrities who oppose industrial-scale pollution supposedly shouldn’t fly in airplanes that use fossil fuels. The group, along with its subsidiary, the American Energy Alliance, churns out a steady stream of related content, from Facebook memes criticizing the Environmental Protection Agency, to commercials demanding approval of new oil projects like the Keystone XL, to a series of television campaign advertisements this year attacking Democratic candidates in West Virginia, Colorado, North Carolina and Alaska. On Capitol Hill, IER aggressively opposes any effort to repeal tax breaks afforded to the oil and gas industry.
Documents obtained by Republic Report reveal for the first time that the group was actually founded by none other than Charles Koch, the petrochemical, manufacturing, and oil-refining tycoon worth an estimated $52 billion.
IER has no information about its founding members on its website, and only lists a board composed of seemingly independent conservative scholars and businessmen. Earlier reports revealed that IER/AEA has received grants from Koch-funded foundations, and its leadership includes several individuals who have at times worked for Koch or Koch-related interests. But this is the first time it has been revealed that Charles personally founded the organization.
In October of 1984, Charles, then using a Menlo Park, California address, founded a non-profit called the Institute for Humane Studies of Texas. That organization briefly lost its charter in 1989 for failure to pay the Texas state franchise tax. Four years later, incorporation documents reveal, the group rebranded as the Institute for Energy Research, or IER, which later formed a subsidiary called the American Energy Alliance.
IER/AEA’s advocacy contrasts sharply with Charles’ personal brand as a selfless libertarian activist. The industrialist has argued that he is resolutely against special government handouts, such as tax credits or subsidies that benefit one industry over another. “Far from trying to rig the system, I have spent decades opposing cronyism and all political favors, including mandates, subsidies and protective tariffs—even when we benefit from them,” Charles wrote in a column for The Wall Street Journal this year.
But Charles’ group, IER/AEA, has fought to protect special tax breaks that benefit fossil fuel producers. Along with issuing press releases against various federal efforts to eliminate oil and gas industry tax credits, IER/AEA commissioned a study claiming that such tax reforms would have an adverse effect on jobs and on oil production.
Charles and his brother David are personally responsible for founding and funding much of the modern conservative infrastructure. The popular libertarian think tank, the Cato Institute, was in fact first named the Charles Koch Foundation, Inc before rebranding. The largest political organization in America outside the Democratic and Republican parties is Americans for Prosperity, the Tea Party-organizing foundation also founded by the Kochs.
The latest organs in the Koch political network have carefully guarded the sources of their funding and direction. There is the new youth group, Generation Opportunity, along with the new veterans-related campaign organization, Concerned Veterans for America. But IER/AEA’s true origin casts new light on its motivations.
By: Lee Fang, Public Report, September 3, 2014
In the latest Times Magazine, Robert Draper profiled youngish libertarians — roughly speaking, people who combine free-market economics with permissive social views — and asked whether we might be heading for a “libertarian moment.” Well, probably not. Polling suggests that young Americans tend, if anything, to be more supportive of the case for a bigger government than their elders. But I’d like to ask a different question: Is libertarian economics at all realistic?
The answer is no. And the reason can be summed up in one word: phosphorus.
As you’ve probably heard, the City of Toledo recently warned its residents not to drink the water. Why? Contamination from toxic algae blooms in Lake Erie, largely caused by the runoff of phosphorus from farms.
When I read about that, it rang a bell. Last week many Republican heavy hitters spoke at a conference sponsored by the blog Red State — and I remembered an antigovernment rant a few years back from Erick Erickson, the blog’s founder. Mr. Erickson suggested that oppressive government regulation had reached the point where citizens might want to “march down to their state legislator’s house, pull him outside, and beat him to a bloody pulp.” And the source of his rage? A ban on phosphates in dishwasher detergent. After all, why would government officials want to do such a thing?
An aside: The states bordering Lake Erie banned or sharply limited phosphates in detergent long ago, temporarily bringing the lake back from the brink. But farming has so far evaded effective controls, so the lake is dying again, and it will take more government intervention to save it.
The point is that before you rage against unwarranted government interference in your life, you might want to ask why the government is interfering. Often — not always, of course, but far more often than the free-market faithful would have you believe — there is, in fact, a good reason for the government to get involved. Pollution controls are the simplest example, but not unique.
Smart libertarians have always realized that there are problems free markets alone can’t solve — but their alternatives to government tend to be implausible. For example, Milton Friedman famously called for the abolition of the Food and Drug Administration. But in that case, how would consumers know whether their food and drugs were safe? His answer was to rely on tort law. Corporations, he claimed, would have the incentive not to poison people because of the threat of lawsuits.
So, do you believe that would be enough? Really? And, of course, people who denounce big government also tend to call for tort reform and attack trial lawyers.
More commonly, self-proclaimed libertarians deal with the problem of market failure both by pretending that it doesn’t happen and by imagining government as much worse than it really is. We’re living in an Ayn Rand novel, they insist. (No, we aren’t.) We have more than a hundred different welfare programs, they tell us, which are wasting vast sums on bureaucracy rather than helping the poor. (No, we don’t, and no, they aren’t.)
I’m often struck, incidentally, by the way antigovernment clichés can trump everyday experience. Talk about the role of government, and you invariably have people saying things along the lines of, “Do you want everything run like the D.M.V.?” Experience varies — but my encounters with New Jersey’s Motor Vehicle Commission have generally been fairly good (better than dealing with insurance or cable companies), and I’m sure many libertarians would, if they were honest, admit that their own D.M.V. dealings weren’t too bad. But they go for the legend, not the fact.
Libertarians also tend to engage in projection. They don’t want to believe that there are problems whose solution requires government action, so they tend to assume that others similarly engage in motivated reasoning to serve their political agenda — that anyone who worries about, say, environmental issues is engaged in scare tactics to further a big-government agenda. Paul Ryan, the chairman of the House Budget Committee, doesn’t just think we’re living out the plot of “Atlas Shrugged”; he asserts that all the fuss over climate change is just “an excuse to grow government.”
As I said at the beginning, you shouldn’t believe talk of a rising libertarian tide; despite America’s growing social liberalism, real power on the right still rests with the traditional alliance between plutocrats and preachers. But libertarian visions of an unregulated economy do play a significant role in political debate, so it’s important to understand that these visions are mirages. Of course some government interventions are unnecessary and unwise. But the idea that we have a vastly bigger and more intrusive government than we need is a foolish fantasy.
By: Paul Krugman, Op-Ed Columnist, The New York Times, August 10, 2014