“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
“What The Keystone Vote Tells Us About The Democratic Party”: Republicans Succeeding In Defining What It Means To Be A Liberal
The bill to authorize construction of the Keystone pipeline failed to overcome a filibuster in the Senate last night by a single vote. Every Republican voted in favor, since support for the idea of sending Canadian oil to American refineries so it can be processed for sale overseas has become a core value of conservatism. But they were joined by 14 Democrats. And if we look at who those Democrats are, we can learn quite a bit about the state of their party.
Five of those Democrats are red-staters who discovered this year that “distancing” yourself from Barack Obama isn’t enough to win re-election in a year of extremely low turnout. The first is Mary Landrieu, on whose behalf this entire exercise was mounted, on the absurd theory that Louisiana voters will turn out in droves for her runoff in December once they learn how much she loves oil, a fact of which they were supposedly unaware before now. Then we have Mark Begich of Alaska, Kay Hagan of North Carolina, Mark Pryor of Arkansas, and John Walsh of Montana. The first three lost their seats, and Walsh would have been ousted by voters had he not resigned over a plagiarism scandal.
The next group of Democrats are also from red states: Heidi Heitkamp of South Dakota, John Tester of Montana, Joe Manchin of West Virginia, Joe Donnelly of Indiana, and Claire McCaskill of Missouri. Through whatever combination of electoral fear and genuine conviction, these are among the senators who disagree with their colleagues most often. McCaskill is a particularly notable case; lately she has been moving to the right in visible ways, including proclaiming her opposition to Harry Reid remaining leader of the Democrats in the Senate and criticizing President Obama’s proposed actions on immigration. Rumor has it that she’s preparing to run for governor, which could help explain why.
The final group of Democrats who voted in favor of the pipeline may have each had their own reasons, but none could have imagined that voting against the pipeline would be a huge political liability. These were Michael Bennet of Colorado, Robert Casey of Pennsylvania, Mark Warner of Virginia, and Tom Carper of Delaware.
So what does this tell us? To a great degree it suggests that Republicans are still succeeding in defining what it means to be a liberal, striking fear into the hearts of any Democrat who wants to win in a red state. Republicans haven’t actually spent too much time arguing the environmental concerns over Keystone, other than to dismiss them out of hand. Instead, they’ve touted the pipeline as a jobs boon that would boost the entire American economy, a claim no sane person believes.
But red-state Democrats still live their lives in a state of perpetual terror that someone might call them a liberal (the only red-state Democrats who voted No were Tim Johnson of South Dakota and Jay Rockefeller of West Virginia, both of whom are retiring).
If these votes don’t change, when Republicans bring the pipeline up again in the new Congress, it will have enough votes to overcome a filibuster — but still fall short of the 67 that would be needed to override a presidential veto. And the Democrats who supported the pipeline will find that it really didn’t help them.
Their red state colleagues who lost their elections have already found out that high-profile breaks with their party don’t keep you politically safe. And indeed, those red-state losses have made the Democratic caucus in the Senate more liberal, and it’s possible that in 2016 the number of red state Democrats will decline even further (even if Democrats gain seats overall). So even if there is still the possibility of Dem divisions on some issues, the fracturing off of red state Dems could matter less and less over time, making the future of Democrats in Congress one of more, not less, unity.
By: Paul Waldman, Contributing Editor, The American Prospect; The Plum Line, The Washington Post, November 19, 2014
“A Responsibility We Cannot Escape”: Keystone Stalemate; Fix Decaying Pipelines First For Jobs, Health, And Safety
With the Keystone XL pipeline stalled again, now perhaps we can look ahead and consider more promising ways to rebuild our energy system, creating many more jobs than that controversial project ever would. No matter where we look, the far larger issue that still confronts Americans is decaying infrastructure — which emphatically includes the enormous web of oil and gas pipelines crisscrossing the continental United States in every direction.
When TransCanada CEO Russ Girling touted Keystone as an engine of employment on ABC News’ This Week last Sunday, he insisted that its construction would create 42,000 jobs. Not only would his venture create those 42,000 “direct and indirect” jobs, boasted Girling, but those positions would be “ongoing and enduring” rather than temporary, like most construction jobs — citing a State Department study that drew no such conclusions. A company spokesman later tempered Girling’s pronouncements, more or less acknowledging that they were grossly exaggerated. The number of permanent jobs when construction is completed would top out at around 50. With or without Keystone, the national economy already produces about 42,000 jobs every week, so it just doesn’t matter much.
Yet even if Keystone would actually result in tens of thousands of permanent jobs, its expected impact on the environment, health and safety raised grave questions about whether it should be permitted to proceed. But there are pipeline projects of unquestioned value that could create far more jobs for many more years that any of Keystone’s promoters ever contemplated.
Rather than a new pipeline for the dirtiest tar-sands fuel, what America needs is a commitment to repair the “leaks and seeps” that have made the old network of pipelines into a continuing danger to health and safety, air and water – as AFL-CIO President Richard Trumka noted in a 2013 interview with The National Memo. The labor chief estimates that a serious program of repair to degraded oil and gas facilities would mean at least 125,000 jobs a year – three times as many as Keystone – and they would continue for decades.
In that brief remark, Trumka alluded to an important point: With more than 2.5 million miles of corroding underground pipes, often made of steel or cast iron laid decades ago, the likelihood of deadly and potentially catastrophic accidents increases every year. Fuel and fumes that escape old pipelines every day, along with occasional large spills of petroleum products, pour carbon dioxide into the atmosphere as well.
Using pipelines to transport natural gas and hazardous liquid fuels is generally safer than the alternatives of road and rail, but when pipeline accidents happen, they can be devastating – as we have learned in recent years from the tragic explosions in San Bruno, CA, which killed eight people and razed dozens of homes, and in Allentown, PA, which killed five people and destroyed 50 buildings.
Officials in Michigan are concerned about the condition of 61 year-old pipelines under the Straits of Mackinac, where Lake Huron and Lake Michigan meet – and where, if the pipelines failed, a ruinous oil spill could conceivably leave the Great Lakes in the same ruinous condition as the Gulf of Mexico after the Deepwater Horizon disaster. And New York officials worry every day about the perilous state of the city’s gas mains, aging and decrepit, which exploded in East Harlem last March, killing and injuring dozens of people and causing millions in property damage.
An investigation by reporters at Pro Publica, the nonprofit news service, revealed that over the past three decades, pipeline accidents accounted for more than 500 deaths, over 4,000 injuries, and almost $7 billion in property damage – numbers that will swell in the years ahead unless repairs and inspections are stepped up drastically. At the moment, replacing only the most dangerously corroded pipes in New York’s Con Edison system is estimated to require $10 billion and 30 years of construction.
The upside of this looming threat is that confronting it would create hundreds of thousands of permanent, well-paid jobs while preserving the environment and improving public safety and health. Like so much of the incredible infrastructure left to us by previous generations, the pipelines need to be maintained, modernized, or mothballed for the sake of the future. Politicians and their paymasters may prefer to look the other way, but it is a responsibility we cannot escape.
By: Joe Conason, Editor in Chief, The National Memo, November 19, 2014
Republicans have sought to frame the Keystone XL pipeline as a job-creating project being thwarted by “radical environmentalists.” Is it? A new Cornell University study claims that the pipeline could actually have a negative impact on the economies of the states it would pass through.
“In the national debate, job creation has been set alongside environmental concerns in a rigid either-or fashion,” says Sean Sweeney, one of the study’s authors, “But oil spills also kill jobs, they consume resources, they have an impact on health, and can also lead to a lower quality of life.”
The range of estimates of jobs vary widely. TransCanada claims the pipeline will create 20,000 jobs. A State Department report estimates that only 20 permanent operating jobs would be created in the six states along the pipeline route. By comparison, those same states are home to robust agricultural, ranching and tourist industries that are dependent on water and vulnerable to environmental contamination. Across the six states agriculture employs 571,000 workers and tourism 780,000; the total revenue from those sectors, respectively, is $76.3 billion and $67 billion.
Sludge not crude
Tar sands oil — known in energy circles as diluted bitumen — may be more damaging to environments and communities than regular crude. Said Sweeney, “Diluted bitumen is an irregular substance — it runs thick and thin, hot and cold. It’s basically a sludge, not like regular crude — it behaves differently.” Tar sands also seem more likely to spill than conventional crude: The spill rate for diluted bitumen in the northern Midwest between 2007-2010 was three times the national average for conventional oil. This may be because the heavy, corrosive material puts greater stress on pipelines.
The already existing Keystone I pipeline, which runs 2,100 miles from Alberta to Illinois, began operating in 2010; in the two years since, 35 spills have occurred. In the pipeline’s first year of operation alone, its spill rate was 100 times TransCanada’s projection. All told the amount of tar sands oil being transported through the United States has more than tripled in the past decade to 600,000 barrels in 2010. Keystone XL, if built, would add another 830,000 barrels per day.
John Stansbury, a professor of civil engineering at the University of Nebraska, analyzed spill data from the Keystone I pipeline to estimate that 91 spills would occur over the course of 50 years of Keystone XL’s operation — close to two spills each year. In a worst-case scenario, he says, a spill could contaminate 4.9 billion gallons of groundwater in Nebraska’s Sand Hills with benzene, a known carcinogen.
The threat the pipeline poses to Nebraska’s Ogallala Aquifer, which provides 30 percent of the irrigation water in the U.S., has been much-discussed, but the pipeline would also cross another 1,747 bodies of water, including the Yellowstone and Missouri Rivers and the Carrizo-Wilcox aquifer, the third largest aquifer in Texas.
If Keystone were to leak — or worse, rupture — the consequences could be serious. In July 2010, a pipeline operated by the company Enbridge ruptured — the company has never explained why — spilling 1 million gallons of tar sands oil into Michigan’s Kalamazoo River. The oil drifted 40 miles upstream, causing 145 reported instances of illness and health problems for people living in the riverside community of Marshall, Mich. Marshall residents living within 200 feet of the river were eligible for a buyout program; about 130 people sold their houses to Enbridge, leaving some areas uninhabited.
The Kalamazoo cleanup has cost $725 million so far — twice as much as Enbridge estimated — and the river remains closed to fishing, hunting and other recreational activities over a year and a half after the spill occurred. Officials in the Calhoun County Health Department have said some bitumen will likely remain in the river “indefinitely.” Sweeney points out that the rural areas along pipeline routes are unprepared to cope with spills. “They had to bring someone in from the Gulf to deal with Kalamazoo,” he explained.
While the Kalamazoo spill was the biggest-ever tar sands spill, pipeline spills occur with startling frequency. In 2011 alone, there were 600 reported pipeline incidents. TransCanada’s website argues that “if they do occur, pipeline leaks are small,” yet pipeline spills caused 17 deaths and 68 injuries, and over $335 million in property damage. In 2010, when the Kalamazoo spill occurred, the damages from pipeline spills topped $1 billion. While pipeline spills don’t get the attention of disasters like the Exxon-Valdez and BP, they point to a familiar pattern of underestimating risk and underpreparing for disaster.
TransCanada insists that it will comply with all federal regulations, and construct and operate Keystone XL “to the highest industry standards.” Danielle Droitsch, an attorney with the National Resources Defense Council, argues that we don’t know enough about diluted bitumen to be able to transport it safely. “We’re building these pipelines as if they were conventional oil pipelines,” she said. “We don’t have any special regulations in place to deal with the fact that these are tar sands pipelines and they are very different. Until we have a new regulatory system in place there are no safety measures proposed that would make this pipeline safer.”
And in the meantime? “There’s no question this pipeline will spill — it’s a question of when.”
By: Allyssa Battistoni, Salon, March 19, 2012