Obama says it should not be approved unless made ‘carbon neutral’.
OSFC Rapid Response on Obama’s Keystone XL Announcement Not To Approve Keystone XL Unless Determined First It Will Not Lead to net Increase of GHG Emissions
Ahead of President Obama’s announcement of his climate agenda today, the Huffington Post reports that the President will ask the State Department “not to approve the construction of the controversial Keystone XL pipeline unless it can first determine that it will not lead to a net increase in greenhouse gas emissions, a senior administration official told The Huffington Post. The policy pronouncement will come during the president’s highly publicized speech on climate change at Georgetown University on Tuesday. It will add another chapter to what has been the most politically difficult energy-related issue confronting this White House.”
Well, the State Department has already found that Keystone XL will have no impact on the climate because Canada will still develop its oil sands.
In fact, if Keystone XL isn’t built, global greenhouse gas emissions are likely to increase because more oil sands crude would be refined in countries like China where current emissions standards allow three times more sulfur dioxide than in the United States. Canada accounts for only 2% of global greenhouse gas emissions and emissions from oil sands are a small fraction of that.
Oil Sands Fact Check has been making this point for quite some time. Here are a few facts President Obama needs to know.
- As we’ve said before, in its 2011 Keystone XL assessment, the State Department was very clear that regardless of Keystone XL’s fate, Canada will still develop its oil sands, and therefore rejecting the pipeline will have no impact on the climate: “from a global perspective, the project is not likely to result in incremental GHG emissions.” In its 2013 assessment of the project, the State Department reiterated this point: “…the incremental life-cycle emissions associated with the proposed Project are estimated in the range of 0.07 to 0.83 MMTCO2e annually.” This number, according to the State Department’s calculation is not considered to be a significant incremental increase.
- · The Washington Post’s March 4 editorial, Environmentalists are fighting the wrong battles, stated that the State Department’s 2,000 page analysis “dismantled the case that nixing the Canadian pipeline must be a priority for anyone concerned about climate change.”
- Washington Post columnist Eugene Robinson admits in his Feb. 25 piece Obama has the power to act on global warming, that President Obama’s “seriousness about addressing climate change is not his pending decision on the much-debated Keystone XL pipeline.” Like so many others, he explains, “the oil is likely to be extracted eventually, regardless of the pipeline decision.”
- New York Times op-ed contributor Joe Nocera wrote in his February 18 piece, How Not to Fix Climate Change, that approval of the Keystone XL pipeline “should be a no-brainer for the president, for all the reasons I stated earlier, and one more: the strategy of activists like McKibben, Brune and Hansen, who have made the Keystone pipeline their line in the sand, is utterly boneheaded.”
- “One of the world’s top climate scientists has calculated that emissions from Alberta’s oil sands are unlikely to make a big difference to global warming… ‘I was surprised by the results of our analysis,’ said Andrew Weaver, a University of Victoria climate modeller, who has been a lead author on two reports from the United Nations Intergovernmental Panel on Climate Change. ‘I thought it was larger than it was.’… ‘The conventional and unconventional oil is not the problem with global warming,’ Dr. Weaver said.” (Globe and Mail, February 2012)
- “And despite fears by climate change activists that increased oil sand production has profoundly negative consequences to global warming, Alberta’s massive reserve base contributes relatively little to the problem at a global scale, [Michael Levi, senior fellow for energy and environment at Council on Foreign Relations] says. Though increasing oil sands production, which many expect will triple by 2030, will grow Canada’s greenhouse gas emissions to a huge extent if business-as-usual practices continue, the added carbon dioxide emissions are marginal in the U.S. and global contexts. Studies show CO2 output from oil sands production is equivalent to 0.5 percent of U.S. aggregate emissions from energy use and less than 0.1 percent of total global emissions.” (Scientific American, March 2009)
- “…regarding the Keystone pipeline, the administration should face down critics of the project, ensure that environmental standards are met and then approve it. As Nature has suggested before (see Nature 477, 249; 2011), the pipeline is not going to determine whether the Canadian tar sands are developed or not. Only a broader — and much more important — shift in energy policy will do that. Nor is oil produced from the Canadian tar sands as dirty from a climate perspective as many believe…” (Nature editorial, January, 2013)
Americans overwhelmingly support building the pipeline
As API’s Cindy Shield put it today, if the President truly wants to lead, “way to lead is to follow what your Americans, what your constituents are saying” – and Americas overwhelmingly support Keystone XL. As a new poll conducted by Harris Interactive reveals, 85 percent of Americans agree that Keystone XL would help strengthen America’s economic security; 81 percent of say that Keystone XL would help strengthen America’s energy security. Then there are dozens of newspaper editorial boards from communities across the country that have called on President Obama to approve the pipeline. Even some of the most unlikely sources – Washington Post editorial board, Nature magazine, USA Today, and Washington Post columnist Eugene Robinson – have written to urge the pipeline’s approval. Union and trade groups including the AFL-CIO, the Chamber of Commerce, National Association of Manufacturers, International Brotherhood of Teamsters, and the International Union of Operating Engineers also support the construction of Keystone XL.
It’s time for President Obama to approve Keystone XL.
http://oilsandsfactcheck.org/2013/06/25/osfc-rapid-response-on-obamas-keystone-announcement/
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Alan Clark:
You have raised a good point about the current problem facing Alberta sands oil from North Dakota oil. As you know, the President approved construction of the Cushing OK – Gulf Coast portion of KXL. You have also noted that the 750,000 bpd production of Bakken oil is flowing along pipelines also used to move Alberta sands oil. This piece:
http://www.refinerlink.com/blog/SuperOilChampionship_Bakken_WCS/
states that Bakken field oil, with an API rating of 40 and a sulfur content of only 0.2%, has a problem in that it is a higher grade than are many of the refineries where this oil is shipped to (presumably in the midwest). Presumably, such refiners cannot maximize the value of Bakken field oil.
First question is, when the already approved southern portion of KXL is completed, won’t this encourage the use of Chicago-Cushing pipeline to get Alberta product to Gulf Coast refiners or will Bakken field crude overwhelm Alberta tar crude. Second question is, won’t this situation encourge an expansion of the Enbridge pipeline complex to Chicago which would ensure the ability to deliver Alberta product to Cushing and hence to the Gulf Coast.
It seems that, one way or another, much of this product will in time find its way to Gulf Coast refineers regardless of what Obama does with KXL. No?
Alec Rawls:
I’m a huge fan of CO2. May it continue to emanate from within me. My position is as you have stated; Alberta’s oil reaching the gulf refineries will bring us a higher price and because of the additional supply, the differential between WTI and Brent crude will narrow and all things being equal, America will enjoy a slightly lower price. So we agree completely. I’m also a huge fan of fracing moratoriums. Everywhere except Alberta.
All the carbon entering the pipeline will exit it. Hence, carbon neutral.
“Unless Determined First It Will Not Lead to net Increase of GHG Emissions”
Will a GHG Emissions “model” that shows no increase be acceptable proof?
Or will observations and other hard data be required?
AJ:
Alberta bitumen is mixed with condensate (http://en.wikipedia.org/wiki/Natural-gas_condensate) in Hardesty, Alberta to enable the product to flow in pipelines. This product is marketed and priced as Western Canadian Select (WCS). Product from the North Dakota fractured oil fields have an API rating and sulfur content virtually the same as West Texas Intermediate oil (WTI). Therefore, it should be priced more or less the same as WTI. Current futures contracts (http://www.cmegroup.com/trading/energy/crude-oil/western-canadian-select-wcs-crude-oil-futures_quotes_globex.html) are pricing WCS crude at about a $22 per barrel discount to WTI crude. Because the cost of refining WCS oil is higher than refining WTI oil, there will always be a spread between the two oils. However, the spread would decline considerably should KXL be approved. The current spread likely reflects some expectation that the project would not be approved.
REPLY: Heinzsight is 20/20 – Anthony
I will relish that remark.
The oil is definitely dirty. It’s full of sand! If our Canadian friends are willing to pick the sand out of it so we can put it in our gas tanks, we should be thanking them. Thank you, guys!
The oil sands are intended to supply heavy crude, presently bought from Venezuela, for the dedicated refineries that process it in Texas.
Sorry, benfromo mentioned that above. Note that the refineries can handle ONLY that grade, and cannot be readily converted.
Obama made it sound like it could go either way. Now he’s waiting to see how much money flows in from the “greenies” before he decides. Lets see how his next fundraiser goes.
I just went to check what Intrade was saying. Their shut down.
Rejoice, cry, or rage; it is a done deal…
I rather suspect that if the US doesn’t ‘get real’ on the realities of fuel for energy production and ditch the stupid “targets’ set by idiots in the IPCC, Greenpeace et al, for “limiting climate change” (dream on boys, the climate will change in the direction it intends to go with or without your puny efforts to control it), the Canadian Dollar will soon be ‘par’ with the US Dollar and eventually a ‘harder’ currency – simply because they’ve had the sense to send the Greens packing.
This is the Obama “Leading From Behind” political ploy that he’s perfected over his lifetime on just about any issue – especially ones which divides his voting blocks or voting blocks that may vote for him. Keystone divides unions and the eco-folks. Both are huge voting blocks for him. You’re dreaming if you think he’ll be the one that will step forward and either raise the flag of full pipeline ahead or stomp it like a cockroach. And, of course, someone will casually tell old John “Your all Genghis Khans” Kerry that it’s ok if he stomps. Afterword, he’ll defend “the conclusion reached by the experts at State”, etc. During a fundraiser, no less, at the Sierra Club amid wild cheers.
Meanwhile Warren Buffet continues to ship Oil from Canada to the US by train.
“We don’t have time for a meeting of the flat-earth society.”
This is a totalitarian statement which closes the door on discussion. If this had been a statement from a Banana Republic Tinpot Dictator I would understand but I really don’t get this kind of statement coming from the head of a large Western Democracy.
“””””…..Mike Alexander says:
June 25, 2013 at 3:14 pm
Hey… Don’t pick on John Kerry…. He was in Veitnam! …..””””””
But how many times did he shoot himself in the arse; well not counting his most recent instance ?
And that gun runner Eric Holder, says he is just going to ignore the Supreme Court rulings.
I guess Himmler was a saint after all.
Well, I served in Viet Nam, too. Maybe I would get a free pass if I started selling guns to Mexicans, eh? Ya think?
There are three ways to deliver crude oil: rail, tanker or pipeline, pipelines by far deliver oil with the least amount of “carbon pollution”. Regardless of how the oil is delivered and who buys it, Canada is going to produce it. If we don’t buy it they will deliver it by rail to the west coast put it on tankers then ship it to China, who will deliver it by rail to their refineries which have little to no environmental regulations. The U.S. will have a shortage and need to import oil from somewhere else, probably the middle east via tanker to our ports then deliver it by rail to our refineries.
If Obama did approve the Keystone pipeline we could bypass shipping oil all over the world and maybe even produce enough oil in this hemisphere or even this continent where we wouldn’t have to import any from the Middle East. This would eliminate the possibility of tankers sinking and causing oil slicks plus all the emissions that the ships and railroad lines would produce would be eliminated. We wouldn’t need to have a military presence in the Middle East anymore which would cut down on terrorism and we could start cutting back on that whole Military Industrial Complex thing. Which is probably why Obama won’t approve the Keystone Pipeline.
I feel like laying pipe, bend over America…
Some more 4play…
ooops, my bad, this was to be the 4play…
This is interesting.
http://video.foxnews.com/v/2509326577001/is-billionaire-against-keystone-xl-pipeline-a-hypocrite/
That is interesting Gunga Din.
So the K0ch Bros have another bully in the “play ground”.