The Costly Compromises of Oil From Sand

The New York Times prints a summary of the issues facing Canada’s Oil Sands. Of course, most people are well aware of the huge environmental impacts, water pollution, strip mining, destruction of avian habitats, greenhouse gas emissions, air pollution, you name it, they got it. The NY Times waits till the penultimate paragraph to get to the most important point:

Even if Canadian producers dislike American climate change policies, they will be hard-pressed to sell their oil elsewhere. Canada’s pipeline network takes oil sands production south and offers no routes to ports for export to other countries.

The Costly Compromises of Oil From Sand – NYTimes.com

In essence, any meaningful climate change regulation in the United States directly affects the viability of these projects. Canada is already trying to lobby against existing US regulation that explicitly forbids the use of fuels with higher lifecycle carbon emissions that conventional fuels by the military.

Nothing new in the article, just a reminder that any noises you hear emanating from Canada about US climate change regulation are driven by this issue.

Similar Posts

  • King Coal Country Debates a Sacrilege, Gas Heat

    Hidden in the beginning of an article on a county heavily dependent on coal contemplating a switch to natural gas heating…

    “Heritage should account for something,” said James J. Rhoades, a Republican state senator from Schuylkill County.

    King Coal Country Debates a Sacrilege, Gas Heat – NYTimes.com

    Of course, this argument can be made to defend any practice including child marriage, the caste system, widow burning, slavery, genocide (the list goes on…). Coal is in august company.

    Some of the issues with anthracite:

    But what makes this brittle and lustrous rock, often known as black diamond, so hard and pure is that it is often deeper and under greater pressure than other forms of coal, which also explains why it is expensive and dangerous to extract.

    The anthracite mines in this area have seen more than 30,000 deaths since 1870.

    The argument about local jobs being lost and local economies being damaged is a valid one and needs to be addressed. In theory, destructive practices cannot be continued in order to prop up local economies. But decisions are made locally and it takes a lot of political courage to shutdown a destructive economy and possibly doom a town to fast death. I guess the solution is to provide alternative modes of economy and employment growth during the transition, easier said than done. Problem with being a one horse town, you better hope your horse stays forever young!

    Blogged with the Flock Browser
  • We're all going to die – Indian Glacier Melting edition

    Big Melt Threatens India’s Water — Bagla 2007 (112): 1 — ScienceNOW

    The massive glaciers of the Himalayas, which hold one of Earth’s largest reserves of snow and ice, have dwindled by one-fifth in the past 4 decades. A team of Indian geologists and remote sensing experts published the alarming news this week–a grim warning that if the trend continues, it could jeopardize the fresh water supply of more than 500 million people in India

    Well, still early news, the worst case scenarios come to pass if there is not enough rain during the monsoon to replenish the glaciers. Here’s a concise Yahoo Answers page compiled by an 18 year old Nicaraguan

    All states will have increased rainfall except Punjab, Rajasthan, Tamil Nadu where it will decrease. Extreme precipitation will increase, particularly along the western coast and west central India.

    Excerpted from the Stern report… My reading of the Stern report leads to the conclusion that global warming will increase water availability in the subcontinent, but also lead to more extreme rainfall and flood events, increased run off, more soil erosion, landslides, etc. Increased glacial melting will add to this mess. So, I don’t really like the conclusion this science article seems to come to. South Asia is not going to run out of fresh water anytime soon, it’s just going to have a hell of a time dealing with it!

  • Trade Agreements Create Pollution Havens

    Interesting paper out of the Berkeley Global Economy Journal
    Trade Agreements and the Environment: An Industry Level Study for NAFTA
    Raymond MacDermott. Global Economy Journal Volume 6, Issue 3 2006 Article 3

    We find strong evidence of both the pollution-haven hypothesis and the positive impact of the NAFTA on FDI.  In addition, we find the trade agreement exacerbates the pollution-haven effect.  That is, the incentive to invest in countries with weak environmental regulations is greater under a trade agreement such as the NAFTA.  Surprisingly, stronger evidence of this effect is found in lower polluting industries than in higher polluting industries.

  • Canada's Budget – FAIL on Renewables

    Canada's Conservative government released a federal budget last week that would kill off the country's main program for developing renewables and channel most of the money from a new “Green Infrastructure Fund” into carbon capture and storage CCS technology, or so-called “clean” coal.

    Of course, the carbon capture is not aimed at coal here specifically, but at the oil sands. More bad news –

    The new pro-coal budget effectively killed all support for the nation’s ecoENERGY Program for Renewable Energy (equivalent to America’s Production Tax Credit for renewables). The program was the nation’s main support mechanism for developing renewable energy. The Pembina Institute, a Canada-based sustainable energy think tank, reacts to the budget defeat:

    “The federal government’s failure to renew and expand this program has jeopardized at least 1,500 megawatts of “shovel read” wind energy projects across the country, while putting the brakes on billions of dollars of potential future investment.”

    The renewable energy industry had hoped for a five-year extension of the program in the budget, which would have spurred over $6 billion of private investment in the Canadian economy and created 8,000 jobs, according to the Institute.

    Note that this is not just the Conservatives. The Liberals are supporting this budget, and Liberal leader Michael Ignatieff has spoken glowingly about the oil sands industry.

    At this point, we do not control our own environmental future. The Conservatives are an Alberta centred party and their motivation is not surprising. The Liberals clearly want back in power and do not have the money to fight another election next month. Canadians seem to not favour the most logical option, a coalition government of the left leaning parties which make up a majority of seats and voting percentages in parliament, so the Liberals have to support the Conservative budget or face an election soon.

    With Ignatieff leading the Liberals, they know that all they need a little time to get money and reverse their losses from the previous election. His personal popularity advantage over previous Liberal leader Stephane Dion will most probably lead to better election results, especially if the Canadian economy continues to tank. A Liberal budget would have not killed the renewables, but would have not done anything to make the oil sands projects pay for all their externalities either.

    With the two main parties objectively in favour of unproven boondoggles and greenwashing, only firm decisive action by the US administration to institute some kind of carbon controls will change the game in Canada. My fear is that by killing money support at a critical time, you kill the renewables industry and disperse its people elsewhere, and no reversing course in 3 years will get those people and companies back.

  • | |

    California Ban on Diacetyl?

    Flavoring-Factory Illnesses Raise Inquiries – New York Times

    For a good background on flavoring-factory lung disease (formerly known as popcorn worker’s lung), check out the Pump Handle’s many posts, especially this recent one. Short primer, diacetyl is the chemical that gives popcorn its so called buttery taste (and smell, it’s fake!!). Well, there’s pretty good evidence that diacetyl causes bronchiolitis obliterans. Some symptoms…

    Bronchiolitis obliterans renders its victims unable to exert even a little energy without becoming winded or faint.

    “The airways to the lung have been eaten up,” said Barbara Materna, the chief of the occupational health branch in the California Department of Health Services. “They can’t work anymore, and they can’t walk a short distance without severe shortness of breath.”

    OSHA has been unwilling to seriously regulate diacetyl, so California, as it is wont to do, is considering banning this killer chemical.

    But in California, which has 28 flavoring plants known to use diacetyl, some legislators and government officials seem unwilling to wait. A bill to ban diacetyl in the workplace by 2010 has passed two committees in the State Assembly and could be taken up by the full body this summer. It is the first proposal of its kind in the nation. Assemblywoman Sally Lieber, the author of the bill, said she introduced it because of what she said was the slow response by the flavoring industry, which is largely self-regulating on occupational safety. “What we’ve heard is that the flavoring industry has known for years that this is potentially a problem, and they haven’t taken action,” said Ms. Lieber, a Democrat.

    I am all for California’s regulation. But as written, this law will only protect workers in California. They should also consider going one step further by restricting the use of diacetyl in food sold in California. Only then can the giant market that is California exert its influence on the diacetyl manufacturers and users.

  • U.S. "compromises"

    The head of the U.S. delegation — Under Secretary of State for Democracy and Global Affairs Paula Dobriansky — was booed Saturday afternoon when she announced that the United States was rejecting the plan as then written because they were “not prepared to accept this formulation.” She said developing countries needed to carry more of the responsibility. While rhetoric at such conferences is often just words, a short speech by a delegate from the small developing country of Papua New Guinea appeared to carry weight with the Americans. The delegate challenged the United States to “either lead, follow or get out of the way.”Just five minutes later, when it appeared the conference was on the brink of collapse, Dobriansky took to the floor again to announce the United States was willing to accept the arrangement. Applause erupted in the hall and a relative level of success for the conference appeared certain.

    U.S. agrees to Bali compromise – CNN.com

    Papua New Guinea, way to go!! Apparently, this administration can still “compromise”. Now the Bali talks are being called a success with all kinds of shenanigans happening on the last day. So, what did they compromise on?

    The EU wanted an agreement to require developed countries to cut their emissions by 25 to 40 percent of 1990 levels by 2020. The United States opposes those targets, along with Japan and Canada.

    The latest draft of the agreement removes the specific figures and instead, in a footnote, references the scientific study that supports them.

    While the EU and the United States appeared to have ended their impasse, India had objections to other parts of the agreement, notably the contributions developed nations would make to help developing nations clean up their emissions problems. Talks were expected to continue for several more hours.

    So, no mandatory cuts on the table, they agreed to talk some more in 2 years time. So, who will it be in 2009? President Clinton/Obama sending Al Gore for talks, or President Giuliani/Huckabee/Romney further stonewalling. Apparently, this US election is going to be pretty important as well!

    So, what does Nobel price winner Rajendra Pachauri think?

    “I wouldn’t term that a failure at all,” Pachauri said. “I think what would be a failure is not to provide a strong road map by which the world can move on, and I think that road map has to be specified with or without numbers. If we can come up with numbers, that’s certainly substantial progress, and I hope that happens.”

    I disagree. This is a numbers game. The damage caused by CO2 in the atmosphere is non-linearly proportional to the the amount in the atmosphere. The more you cut, the less damage you will cause later. At some number, the emission cuts may affect the lifestyles of certain countries. But to say that you don’t need numbers for success is just diplomatese.

    Note that Japan and Canada opposed cuts as well, but thanks to the exalted world leader position of the US, they can get away with little scorn.

    Blogged with Flock

    Tags: ,