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The 8 Reasons America Should Embrace Canada's Crude

Posted: 02/17/2013 12:10 am

Canada's oil sands are besieged with two myths: That a "clean" coal technology exists and that the oil sands imperil the planet as the world's dirtiest fuel.

Both statements are bunk and yet they inform an environmental movement that swarms the White House and Congress to fight the Keystone XL pipeline designed to bring more oil sands exports from Canada.

Meanwhile, for instance, they are not swarming around America's biggest carbon dioxide emissions culprit -- Southern Company's Scherer Plant. In 2007, the plant was the single largest source of carbon dioxide in the U.S. and 20th biggest worldwide, spewing out 27 million tons annually.

And while the environmental industry attacked Keystone during the 2012 election campaign with large protests and media noise, there were no dramatic sit-ins or mass arrests in Georgia or other dirty coal plants. In fact, that year the Scherer Plant hired KBR Haliburton to build yet-another gigantic smoke stack, increasing emissions.

Comparing a single plant with the oil sands sector may sound unfair, but consider the numbers. The Scherer Plant's emissions alone are equivalent to 75% of the carbon dioxide produced by Canada's oil sands and yet the filthy Georgia utility gets a pass while the oil sands are dubbed the pariah of polluters.

Digging deeper, the Georgia emissions are far worse using the "wheel to wheel" measure that environmentalists like to apply to the oil sands. This is because the Scherer is fed with coal from distant Wyoming and every day between two and five trains, with 124 cars each, are unloaded in Georgia. And there are dozens more plants like this one across the U.S.

But the greens pick on the oil sands even though a recent report stated that the oil sands have 9% more emissions than average crudes but roughly the same as most foreign crudes or California's heavy crudes. Canada's an easy target because Canadians don't vote in the U.S. and the Keystone XL Pipeline is even easier because there are so many jurisdictions to lobby.

What's most disturbing about oil sands bashing is that it may offer a distraction from smart energy/environmental policy. There are other benefits involved in importation of oil sands crude oil that are never acknowledged:

1. Canada is a reliable supplier, now providing 28% of America's oil imports.

2. Buying more crude oil from Canada is simply a means of backing out of equally heavy, or dirty, oil from Venezuela, Nigeria and Iraq. The U.S. cannot become totally oil independent.

3. Buying crude from Canada to value-add in U.S. refineries creates American jobs, as does operating and building pipelines and refineries.

4. Buying crude from Canada benefits the United States directly because the oil is produced in Canada by U.S.-owned companies or by Canadian companies with as much as half their stocks owned by Americans. Money sent to Hugo Chavez or Nigeria or Saudi Arabia never comes back.

5. Buying crude from Canada is more beneficial than buying from other countries because Canada is America's biggest customer, biggest supplier and one of its biggest investment destinations. In other words, the oil profits made by Canadians and their companies will be spent buying American products and services and vacations.

6. Geopolitically, International Energy Agency estimated that the U.S. will produce more oil but need about 4 million barrels a daily from Canada's oil sands to reach energy security by 2035.

7. Environmentally, buying crude from Canada will, one hopes, lead to a comprehensive energy/environmental treaty that will rationalize energy facilities, bankroll a "Manhattan Project" to reduce emissions, develop affordable alternatives and impose continental conservation measures.

8. Foreign policy-wise, the oil sands make sense. I told an audience of oil tycoons eight years ago at the Canadian embassy in Washington that their country's best bet would have been to invest $250 billion to develop the oil sands and back out all foreign oil imports.

"For $250 billion, you'd have acquired all the oil you need, you wouldn't have had to invade Iraq and nobody would have died."

Despite the common sense, nothing much changed because of domestic vested interests tied to the status quo as well as foreign skulduggery. Oil rivals in Venezuela, Saudi Arabia, Russia, Nigeria and elsewhere have been bankrolling and generating criticism of the oil sands for years.

This is because the sands is the only strategic oil deposit in the world in a safe jurisdiction and which is large enough to shut them out of the U.S. market. It would be in China's interest to shut Canadian oil out of the U.S. so it can import it readily.

But the matter will be resolved soon. President Obama can approve or nix the pipeline and may use it as a bargaining chip in his fiscal negotiations with Republicans, who have mostly lined up in favor of oil sand imports and Keystone.

But messages are mixed which means he hasn't weighed all options. His postponement of Keystone in 2011 doesn't preclude approval because in 2009 he approved a bigger pipeline from the oil sands. The delay was mostly due to the election, but he still may turn it down.

On the other hand, many Canadian oil interests took his silence in the State of the Union on the issue as a positive sign. There was also an interesting argument in favor of the pipeline this week in the Washington Post by Obama-friendly Larry Summers, former U.S. Treasury Secretary: "Those who will decide whether to approve the Keystone XL pipeline, which would run between the tar sands of western Canada and Nebraska, need to recognize that Canadian oil not flowing to the United States will probably flow to Asia, where it will be burned with fewer environmental protections."

The facts are that the oil sands is not the environmental line in the sand that activists have concocted. In 2012, U.S. coal-fired power plants account for roughly 25% of the carbon dioxide produced in the world, China's coal plant for 24% -- a combined total larger than all other countries globally.

"Coal presents a climate challenge 1500x greater than that presented by the oil sands," wrote University of Victoria Professor Andrew Weaver in Nature Climate Change. "We will live or die by our future consumption of coal."

Despite that, American oil sands combatant Bill McKibben has labeled the oil sands as "the dirtiest fuel on Earth".

He's totally wrong. Coal is the energy killer and one hopes the White House will opt for smart, rather than expedient, policies.

Financial Post

Loading Slideshow...
  • Total Jobs

    If unhindered, it's estimated that expected investment in the oilsands will result in 100,000 new jobs a year for the next 13 years, either directly or in companies supplying goods and services.

  • Alberta Reaps

    As much as 54% of the benefits accrued from ongoing investments in the Alberta oilsands will stay in Alberta.

  • Ontario Gets Its Share

    Within Canada, the biggest winner outside Alberta is Ontario, which is expected to benefit from 10,000 new jobs per year.

  • B.C. Gets A Little Smaller Share

    British Columbia comes next with approximately 5,400 new jobs per year. Alberta and B.C. are currently locked in a fight surrounding the proposed Northern Gateway pipeline, which would carry bitumen from the Alberta oilsands to the B.C. coast for shipping to Asian markets.

  • The Prairies

    The prairies would gain 2,700 new jobs per year.

  • Quebec

    Quebec would benefit from approximately 2,500 new jobs a year.

  • Atlantic Canada

    Atlantic Canada can expect to see approximately 530 jobs a year, says the study.

  • The Rest Of The World

    Other countries will reap approximately 27 per cent of the benefits from continued, expected investment in the oilsands. In the U.S., 8,300 jobs a year

  • The U.S.

    The biggest benefactor of continued investment in the oilsands outside Alberta would be the U.S., with 8,300 new jobs being created each year.But the benefits for the U.S. extend beyond mere jobs alone.

 

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12:02 PM on 02/18/2013
The entire problem is the artificially low price of oil products in the United States. If they had forced the consumer to pay the real price for gasoline twenty years ago, I doubt there would be too many Hummers on the road today.

No other country in the world subsidizes a private industry that makes billions in profits. Each gallon of gasoline sold in the United states should have a green tax applied to it, and that money should be immediately applied research into everything from fusion to wind and solar power.

As for the Tar Sands, the developers have been in breach of contract with the Canadian people since the seventies, since the promise was that they would develop a clean method of extraction BEFORE massive profits would be distributed. The greenhouse effect of simply producing a barrel of Tar Sands oil is shocking, never mind the refining and use of the byproducts. But no one seems to be counting that nowadays. Not one dime of profit should leave the country until they fix this. Not one permit should be issued until they get their act together.

I want my fusion powered flux capacitor that I ordered twenty years ago and I blame the oil companies for not allowing it to be invented yet.
09:40 AM on 02/18/2013
9. The Koch brothers want to punish Venezuela by not buying their heavy crude and instead getting it from Canada. So if the Koch brothers want it, 1 reason is enough.
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11:39 PM on 02/17/2013
There's a bit of confusion / conflation of the climate change objection to Keystone with the other and to many more convincing argument, of serious toxic pollution from pipeline failure. The other argument against it is more subtle, that the route to Louisana is not to discount prices for domestic US consumption but to refine and export it out of a Mexican Gulf port, and alleviate the $20 discount of American crude relative to the Brent world price, i.e. the pipeline will make Alberta oil more expensive and justify extracting it. Poor Alberta, it's done everything right. It adopted low taxation. It is religiously fundamentalist. But unlike its peers Texas, Saudi and Nigeria, it failed to locate next to a seaport.
11:35 PM on 02/17/2013
8 reasons can really be summarized in 2 - #1 get 'oil' (sand-filled tar) from Canada and it reduces the dependence on other countries (Venezuela, Nigeria, Iraq) - all countries where the US, or oil companies have already committed horrendous atrocities. - No mention of Saudi Arabia, which the US will have no problem continuing to deal with, sell massive amounts of arms to, etc. - #2 create jobs (which could also be created by investing in clean energies which do not pose the risk of massive oil spills, explosions, massive-scale clear-cutting and landscaping to build the pipeline). This is not worth our future. There are countless ways to progress the economy and to supply clean, free, abundant energy rather than continuing our archaic process of wasting enormous amounts of energy to create some more energy by burning our Earth. Pipelines are dead.
09:17 PM on 02/17/2013
The tar sands oil will fuel China. The profits are for the Koch brothers and not Americans or Canadians. the tar sands are scaping the barrel and indicate the need to go to green energy. I mean I am sure the makers of candles were upset by the advent of kerosene lamps and the makers of kerosene lamps were upset by the advent of the light bulb. Now we have LED's and the next stage in lighting is with nanobulbs. The tar sands oil is inefficient. It takes thre BTUs to create one BTU of oil from the tar sands. It is the filthiest oil. It is destroying clean water and clean air and the climate is truly jeopordized by it. Time to move on to clean energy.
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Mike Keohane
02:46 PM on 02/17/2013
The US is on it's way to short term energy suficiency. They'll only buy our oil because it's cheap and their policy is to keep our oil cheap. We need leadership in Canada that's willing to take the political heat to open up new markets for our oil and gas.
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logicanada
Blogger, radio co-host, writer, editor, voice-over
02:21 PM on 02/17/2013
Canada is a reliable supplier, now providing 28% of America's oil imports.

Hmmmm. According to this report, Canada only supplies about 15.1%

http://www.npr.org/2012/04/11/150444802/where-does-america-get-oil-you-may-be-surprised.

Makes me question the validity of the rest of the info.
11:48 AM on 02/17/2013
You notice there are no quotes around Francis' statement ... the oil sands imperil the planet as the world's dirtiest fuel. And there’s good reason Francis omitted the quotes: Everyone acknowledges coal is dirtier than the tarsands; that's not news.

All Francis is doing is repeating the lie tarsands proponents want everyone to believe, and trying to throw out a strawman: dirty coal.

The trouble with folks like Francis is they only want to hear what they want to hear. They don’t want to hear that the tarsands will never replace foreign oil; dirty or otherwise. The tarsands aren’t resource limited, they are process limited, they need huge supplies of water and nat gas. And as those necessities become increasingly costly the cost of extraction will skyrocket. There will be no “Manhattan Project” to deal with CO2 emissions; that’s a dream of those who still believe in the tooth fairy and santa claus.

And they don’t want to hear that we’re at the tipping point in CO2-induced climate change.
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01:17 PM on 02/17/2013
Speaking of people who only want to hear what they want to hear.
07:25 PM on 02/17/2013
Nice to hear your acknowledgment. You know what they say about coming to terms with addiction problems: the first step is admitting you have the problem.
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08:13 PM on 02/17/2013
but she'll be a senator by then living on a mountain top estate.
10:48 AM on 02/17/2013
If I follow, Canadian oil is mined by american companies, refined at american refineries, and consumed by Americans. We seem to get no benefit.I can see why they should buy it - environmental costs aside - but I can't see why we should sell it.
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01:20 PM on 02/17/2013
Because it contributes a significant amount to our GDP. In other words several of your yearly paychecks come from the oil snads. If you want a pay cut or want to give up your ability to buy an SUV and Tim's everyday then you can be against the oil sands.
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arachne646
No more hurting people--Peace
03:34 PM on 02/17/2013
Your yearly paycheque may come from the tar sands, but not most Canadians, and more jobs will come from the clean energy economy that we MUST transition to if we want the people that are being born now to have a future at all. The tar sands and the petroleum corporations that the Stephen Harper government have hitched their wagon to are not the only star in the sky--even if they are yours.
06:37 PM on 02/17/2013
Not sure I follow. The product and profits are consumed elsewhere. All that's left is local employment - pennies on the dollar relative to the value of the resource.
09:12 AM on 02/17/2013
evidently it is an either/ or solution--------false choice

oil execs dont to the right thing --they do what is expedient --and it blows up in their faces often ---BP comes to mind ---pipeline leaks come to mind
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01:24 PM on 02/17/2013
No they do what will make them money, and why we need government regulation - and regulation is only valuable if it is with non emotional and informed hard facts. This is the hard facts about coal and how if we do not allow money to develop them we are actually contributing to more pollution.

The only alternative for doing away with carbon burning is no SUVs, no fresh fruit and vegatives in the winter, not heating our houses as much, using cold water to bath in and having fewer children.
03:32 PM on 02/17/2013
the only alternative ?? good thing you werent around when they invented the wheel
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arachne646
No more hurting people--Peace
03:38 PM on 02/17/2013
We have to make some changes, yes. Smaller vehicles, less stuff shipped shorter distances and different technology to heat our houses with less waste. People are already having fewer children whenever they get the choice.
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09:11 AM on 02/17/2013
This article is all about money and political relationships, not global warming which is the hidden topic.

"Since the beginning of human civilization up until about 200 years ago, our atmosphere contained about 275 parts per million of carbon dioxide."

"350 parts per million is what many scientists, climate experts, and progressive national governments are now saying is the safe upper limit for CO2 in our atmosphere."

Currently, "the planet has about 392 parts per million CO2 – and this number is rising by about 2 parts per million every year."

"Scientists are now saying that's too much – that number is higher than any time seen in the recorded history of our planet—and we're already beginning to see disastrous impacts on people and places all over the world."

Quoted source: 350.org

Want to see the National Post's series on scientists who are climate change deniers? See their article "Climate change: The Deniers"

Most scientists in the world agree that global warming is manmade - and that means the burning of oil, dirty or not. I find it irresponsible to keep planting narrow half-truths about the present economy in light of the damage to the future of our planet.
12:21 PM on 02/17/2013
Scientists also agree that twenty million years ago there was 1500 ppm of carbon dioxide in the atmosphere. and so the cycle continues.
01:20 PM on 02/17/2013
Back then the sea level was over 100 feet higher and 2-3 degrees warmer as a result of the carbon dioxide. In the last 800000 years the levels were pretty stable, then the industrial revolution happened and ever since the levels have been going up. So either the cycle started again at exactly the same time we started burning fossil fuels or we are the cause.
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03:03 PM on 02/17/2013
This time the scientists are talking man-made climate change. Do your homework and your will keep the conversation sensible.
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01:28 PM on 02/17/2013
Where do you think all the carbon in oil and coal came from in the first place? It seems the loony left thinks they are God and can create something from nothing.
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03:12 PM on 02/17/2013
Amazing.
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arachne646
No more hurting people--Peace
03:41 PM on 02/17/2013
And when you talk about the "loony left" and all your spelling is American, and all your politics and science is Republican, what are you doing on a Canadian blog?
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Fluffyevil
07:44 AM on 02/17/2013
The only point in comparing tar sands emissions to coal emissions is if tar sands oils will replace coal. Since there are no coal-fired plants slated to close if more tar sands crude is produced then the tar sands will only add to the problem.
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Peter Burgess1
06:41 PM on 02/20/2013
"The only point in comparing tar sands emissions to coal emissions is if tar sands oils will replace coal. "

No. Coal is esily replacable with dozens of here-today green alternatives unlike oil. Which is better for the planet? Removing 2.2 billion tons of coal produced GHG's per year (that's the US only) or keeping them and removing 78 million tons per year.....only to have those 78 million tons replaced by increased production of the very same dirty oil in Venezuelia, China or Nigeria?
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Fluffyevil
10:05 PM on 02/21/2013
My point was made in relation to the article under discussion. I was making no reference to alternative energy.
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NTodd
Aude Sapere
06:00 AM on 02/17/2013
"Meanwhile, for instance, they are not swarming around America's biggest carbon dioxide emissions culprit -- Southern Company's Scherer Plant. In 2007, the plant was the single largest source of carbon dioxide in the U.S. and 20th biggest worldwide, spewing out 27 million tons annually."

Um, we're Canadians. The tar sands is OUR largest source of CO2, so it's up to us to oppose it. And we have a bigger carbon footprint per capita than the U.S., so we have a greater responsibility to be public about it. If the Scherer Plant goes unopposed, shame on them; it's their responsibility. If the tar sands go unopposed, the shame is on us.

Typical all-or-nothing thinking from the fossil fuel apologists. Ho hum.
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08:48 PM on 02/17/2013
"The tar sands is OUR largest source of CO2"

You don't what the heck you're talking about. Our gas and oil sector only makes up 7% of our total CO2 emissions.

"And we have a bigger carbon footprint per capita than the U.S., so we have a greater responsibility to be public about it."

No we don't. the US is not only the largest culprit for per capita CO2 emissions, but it emits 21% of total global GHG emissions. Canada is only 1.9%.

"If the tar sands go unopposed, the shame is on us."

If you ruled the country and shut down our oil sands sector, the economic results of a double dip recession, 150,000+ job losses, 20-30% less in exports, and $10's of billions in tax revenue losses would make you ashamed. Fortunately, thank god mindless ideologues don't rule our country.

"Typical all-or-nothing thinking from the fossil fuel apologists. Ho hum."

So out of 8 reasons that she provided, you try to refute one reason of her's with half truths and lies, and think you disproved her entire argument?
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NTodd
Aude Sapere
05:48 AM on 02/18/2013
Here's figures as of 2008 that has oil and gas at 21% of Canada's total

http://www.ec.gc.ca/doc/publications/cc/COM1374/ec-com1374-en-s2.htm#s2-1

I believe it's up to around 24-25% now, but I don't have time to look those figures up now. This something that it took me about 20 seconds to get my hands on, and it's peer reviewed data. Where'd you get your data, the Heartland Institute, perhaps?

In one sense, though, you're right: in the above cited report the Transportation sector contributes more CO2 by 1 or 2%, but of course that's mostly from burning oil as well.

Mindless ideologues DO rule our country; ones that value the short-term profit of a dying industry over the long- term fate of the planet.
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Whistlejackett
Hey stop doing that
02:23 AM on 02/17/2013
Your comparison between coal and bitumen is understandable, there is however a point or two you didn't mention. Nancy Pelosi mentioned last year that the oil sands are not for domestic use and were never intended to be so at any time. The oil sands are for export, and it is easy to understand with all the new advanced VLCC's that are being constructed. Another point you missed is that Trans Canada hired an adviser from Azerbaijan to push the Keystone. That move might appear to not have much credit, but that country is the most corrupt oil nation globally. Her work on the BTC pipeline was commendable, as that line is the most destructive ever built to this day. What a way to boast success.

Because the oil from Alberta is meant for export, China will most likely get that oil no matter what lines are going to be built. The oil industry isn't particularly interested in who gets it, as it is to who will pay the highest dollar. Converting from coal to Alberta's oil would be a great scenario, but we know that won't happen. Obama knows what he's going to do, he's just hoping we'll think whatever he says was his only option. The Keystone will be built.
11:30 AM on 02/17/2013
EXACTLY! You nailed it Whistlekackett. Here in North America, a phase out of coal fired plants with natural gas would be appropriate from my perspective.
12:28 PM on 02/17/2013
The keystone is already built, phase two is extra large.