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Tuesday, September 21, 2010

Racing for Remembrance

 This article appears in the September issue of Impact magazine. Photo: Terry Fox
By Peter McKenzie-Brown

When we lose someone, our humanity often takes the form of finding ways to help finish the unfinished work of those who are gone. Many of us participate in events to honour our heroes, to recognize the fallen, to protest the senseless waste of human life, to reflect on the loss of friends and family. Perhaps these efforts are an attempt by the living to follow the counsel of poet Dylan Thomas: “Do not go gentle into that good night. Rage, rage against the dying of the light.”

There is often a connection between athletic achievement and our remembrance of the tragically lost and the senselessly killed. The connection between our memories and our athletic achievements is often a source of good. It is increasingly harnessed to raise funds for health-related causes – from diabetes and heart disease to leukemia, lymphoma, Hodgkin’s disease and myeloma. First among these fund-raising causes, of course, is the scourge of cancer – a disease about half of us will experience in our lifetimes.

Our Heroes
The power of remembrance as an athletic motivator was expressed superbly by a young man who was possibly the greatest player in football history. The year was 1920. Here’s how Knute Rockne, the football coaching legend of Notre Dame, recorded the story.

George Gipp lay in his hospital bed dying at the age of 25. “I’ve got to go, Rock,” he said. “It’s all right. I’m not afraid. Some time, Rock, when the team is up against it, when things are wrong and the breaks are beating the boys, ask them to go in there with all they’ve got and win just one for the Gipper. I don’t know where I’ll be then, Rock. But I’ll know about it, and I’ll be happy.” Eight years later, Rockne used this story to galvanize his team to an underdog victory over the undefeated West Point team at Yankee Stadium.

The story of the Gipper has resonated through the decades. So has the story of Terry Fox – a story which epitomizes important features of the influence of the dead on the living.

Thirty years ago, the handsome young man with the prosthetic leg ceremonially dipped his foot into the Atlantic Ocean before beginning a run across Canada to raise money for cancer. Running the marathon distance every day, he slowly captured the hearts of Canadians from coast to coast to coast. When he had to quit his race because the cancer had spread to his lungs, there was an immediate outpouring of grief, sorrow and donations to his cause around the world. Another legacy was the Terry Fox Run, which has helped the Terry Fox Foundation raise half a billion dollars for cancer research since Terry died on June 28th, 1981, age 22.

Why did the Terry Fox story have such a vast and global impact? Certainly the efforts of his family to keep his memory alive have been an important factor. But the core of the story is that a personable young man captured our hearts as he pursued an astonishing goal – to run across Canada at the rate of one marathon a day with the aid of an artificial limb – and was defeated by the most dreaded disease of our time: lung cancer. Who could resist giving money to such a memory, in the hope of eventually vanquishing the disease that brought down our youthful hero?

We run for remembrance to honour heroes like Terry Fox when it turns out they were battling impossible odds. Compare the Terry Fox story with that of Canadian paraplegic athlete Rick Hansen, who in 1985 set out on a 40,000-kilometre, 26-month circumnavigation of the world by wheelchair. With single-minded determination and great personal charm, he ultimately raised $26 million for spinal cord research. However, he successfully finished his mission. There are no memorial events to celebrate his extraordinary achievement.

The Fallen

Sometimes we run for remembrance to protest an outrage. Consider the appalling events of March 3, 2005. On that day four Mounties were hunted and killed by a deranged man with a long criminal record and an obsessive hatred of police. Unprecedented in Canadian history, his horrific act took place near Mayerthorpe, Alberta. Shockwaves and outrage circled the globe. The slaying of four constables – Anthony Gordon, Leo Johnston, Brock Myrol and Peter Schiemann – led to the creation of a local park dedicated to their memory and to an annual fund-raising marathon. In this way their families, friends and colleagues were able to honour those in protective roles killed in the line of duty.

On a much larger scale is Belgium’s In Flanders Fields Marathon. The race starts on the Flemish coast and finishes at the historic city of Ypres. Along the flat roads are the fields where many of the horrors of the First World War took place. According to race director André Mingneau, running this course “may help to keep people’s mind open against useless violence and terror. That’s why our English, American and Canadian friends talk about (this race) as a ‘peace marathon’ or ‘a marathon for peace’.”

This idea is not difficult to understand. Imagine yourself in a marathon head-space running through the land where the Battle of Passchendaele and other terrible struggles of that war took place. You can’t help contemplating the mud, death, futility and the wretched conditions of trench warfare. Yes, as you finish that race you value peace even though you may never have had direct experience of war.

Wasted Lives

In 1996, three gay triathletes founded the Pride and Remembrance Run, which became an annual 5k fundraising run and walk coinciding with Toronto’s Pride Week. The event is dedicated to gay pride and remembrance – especially remembrance of people in that community who had died of AIDS. More than other memorial events, the race combines no-holds-barred celebration by the gay community with personal achievement. In keeping with Toronto’s world-famous Pride celebrations, odd costumes are everywhere. One moment you may see a bevy of men running in bridal dresses. The next you may see the Queen of England parading down the street. Ahead of the pack are hard-core runners in standard running gear.

The event is a fund-raiser for gay and lesbian charities. Top fund-raising honours – more than $60,000 – go to a team formed by two-time Olympic silver medalist Brian Orser and named in memory of champion ice dancer Robert McCall. McCall died of AIDS nearly 20 years ago.

The Pride and Remembrance Run is “a really remarkable expression of community spirit and dynamism and engagement” said race director Alan Belaiche. “The number of organizations that have gained not only financial resources but also profile in the community has been of inestimable value to people and to our community.... The feeling that comes from raising so much money for beneficiaries, it’s just unmatched for me.” The event is quirky and fun, yet it originated as a testament to those who had wasted into death from AIDS-related causes.

Quiet Losses

In the summer of 2009 a remarkable young woman named Janice Plewes – the mother of three young children and an extraordinary athlete – died in Penticton while she was on her bike doing a training ride to prepare for her fourth Ironman. The young driver behind the wheel of a car had failed to yield the right of way at a difficult intersection.

Janice’s tragic death touched hundreds in Calgary, where she grew up and lived with her family. To commemorate her life, the following year her family and friends gathered with their bicycles at the Highwood Pass on the eastern slope of the Rockies near Calgary. Highwood is the highest paved pass in Canada. Because of snow and other high-altitude weather conditions, it’s only open to automobile traffic during the summer months.

The date for the Janice Plewes memorial event was June 12th, on the last weekend of traffic-free riding. The message from her family said, “Please invite anyone you think would enjoy a day of cycling in the mountains in memory of a good friend.” The organizers described the occasion as the “first annual,” and the road was bright with bicycles and colourful riding gear when the day arrived.

And so it is that the quiet loss of loved ones inspires memorial events. In this case the participants commemorated the loss of a friend after the period of mourning had mostly passed. Sometimes, however, death can inspire athletic excellence before mourning even begins.

An extraordinary example of such inspiration occurred during the recent Winter Olympics, when figure skater Joannie Rochette’s mother died of a massive coronary just as she arrived in Vancouver to see her daughter compete in the women’s singles competition. Joannie chose to continue competing in her mother’s honour.

Hearts around the world swelled with compassion. Typical of the endless online and blogosphere tributes was this: “She is the true definition of the Olympic spirit. With grief in her heart she skated with bravery, star quality and with confidence in her ability... No matter what happens tomorrow night, Joannie is a star in her own right. Skate from the heart, Joannie. I am blessed to have watched you skate and will forever remember your courage. Best of luck tomorrow, stay strong and know that you are truly loved by so many Canadians!”

The world then watched in awe as she somehow transmuted her loss and her sorrow into bronze. In the Olympic short program, she recorded a new personal best of 71.36 – the third-highest score of the night. Two days later, she held on to her third place position after the long program and won the bronze medal. Because of her determination in the face of personal tragedy, she received the first Terry Fox Award for the 2010 Winter Olympics.

Several months later, she became the honourary spokeswoman for a fund-raising campaign to support awareness about heart disease in women.

The Big One

No organization has more effectively used fitness events as fund-raisers than the ones fighting cancer. The Terry Fox Run was the first mega-run to raise money for cancer. Its amazing half-billion dollar fund-raising achievement took place without organizers asking for a minimum donation from participants. Give what you can, in remembrance of Terry.

Thirty years later, cancer is still the biggest motivator for fund-raising events, but the fund-raising system has dramatically changed. For example, the two-day Ride to Conquer Cancer was a wild success when it debuted in BC and Alberta last year. The cost of participation is to raise at least $2,500 for the cause, although some overachievers raised as much as $50,000.

On the coast, 1,700 participants took part in what the event’s website describes as “an epic cycling journey from Vancouver to Seattle” – a two-day, 282km effort. In Alberta, a similar number of participants rode a beautiful 180km course along the eastern slopes of the Rockies. In each province, the event raised approximately $6.9 million, with net proceeds going respectively to the BC Cancer Foundation and the Alberta Cancer Board. These superbly conceived and promoted events are managed by an American fund-raising firm named CauseForce.

A related CauseForce event is the Weekend to End Women’s Cancers – a two-day, 60km fund-raising walk, with events in Calgary, Edmonton and Vancouver and elsewhere in Canada. To participate, you need to raise a minimum of $2,000. Over the last five years these events enabled the Alberta Cancer Board to invest $21 million in cancer research, and the BC Cancer Foundation to invest $15 million.

A veteran of five of these walks is Rejeanne Taylor, a Calgary-based breast cancer survivor. The first four years she participated to celebrate the fact that she personally had dodged a bullet. This year, however, is different. “I will be remembering a good friend – Monika Brunk of Hamburg – who recently died,” she said. “I’ve had other friends who died of cancer, but she is the first to die of breast cancer. I will be walking for her.”

“During (Monika’s) last week and afterwards her husband Hans almost pleaded with me,” she recalls. “He said ‘Please, please don’t forget Monika’ in three separate emails. There is something about remembrance for those left behind that says ‘She’s real and she continues in some way’. By celebrating people even when they are gone, you somehow validate their existence.”
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Tuesday, September 07, 2010

Maintaining the Faith

Five visionaries who changed the path of the oilsands industry, and the wall over which the sixth must climb.Photo: Karl Clark
This article appears in the September 2010 issue of Oilsands Review
By Peter McKenzie-Brown

Oilsands development continually hits a wall of some kind, and obstacles to development seem insurmountable. However, at critical times in the history of the oilsands, a visionary leads the charge over the wall and an important new stage of development takes place. This is the idea behind an excellent presentation titled “Visionaries – Climbing the Wall” given by Dr. Clement Bowman. The present commentary develops that idea, but mostly uses different historical resources.

By the 1920s it was clear that the sands are not underlain by a huge pool of light, source oil. The oilsands are just what they appear to be: huge deposits of sand saturated with thick, gunky bitumen. Encouraged by government, some entrepreneurs tried paving roads with the stuff. No luck; now what?

Enter a research chemist Bowman’s first visionary. With tremendous determination and limited support from the newly fledged Alberta Research Council, his employer, between 1923 and 1930 Clark developed and demonstrated the bitumen extraction process which, with some tweaks, is in use today in oilsands mines. His work made it clear that oil can be extracted from the sands. His name was Karl Clark.

Over the next two decades a few small projects began producing. They were not commercially successful, however, and didn’t use Clark’s extraction process. Each was eventually destroyed by fire. After the Second World War there was no commercial interest in this intractable resource – especially after the 1947 Leduc discovery, which made it clear that large reservoirs of light oil were available in the province.

Despite the legacy of failed commercial efforts, a Canadian politician became the next visionary. He arranged for the province to commission the Bitumount demonstration plant using Clark’s hot water process, and had the entire legislature visit the plant in 1949. He also commissioned an independent evaluation by Sidney Blair – an oilsands expert who began his oilsands career as Karl Clark’s research assistant. Blair concluded that the oil sands were “a commercially viable source of crude oil that could compete on the world market.” The visionary’s name was Ernest Manning, Alberta’s longest-serving premier.

The industry acquired additional oilsands properties and undertook experiments in mineable oilsands development in the 1950s and 1960s. For his part, Manning maintained a life-long belief in the importance of the sands to Canada.

In the 1960s, Alberta announced that it would only approve small oilsands projects. Light oil production was still growing, and the province didn’t want too much competition between oilsands and conventional oil. The province’s insistence on small-scale projects led to thin private sector support.

The visionary who surmounted this obstacle was an octogenarian and a personal friend of Premier Manning. On his insistence, Sun Oil Company filed an application for a 31,500 barrel per day project (later amended to 45,000 barrels per day). In 1967, he told his audience at opening ceremonies for Great Canadian Oil Sands that “No nation can long be secure in this atomic age unless it be amply supplied with petroleum . . . . It is the considered opinion of our group that if the North American continent is to produce the oil to meet its requirements in the years ahead, oil from the Athabasca area must of necessity play an important role.”

The name of this visionary is J. Howard Pew, and he was then chairman of Sun Oil Company, Today, GCOS is known as the Suncor Oilsands Plant.

In 1973, a second commercial project was losing private sector support because of the alarming escalation of costs besetting major North American projects. The Syncrude budget had more than doubled to $2.3 billion, and a major corporate partner pulled out. One man more than any other saved the day. He kept the remaining partners onside while marshalling equity participation in the project from the Alberta, Ontario and federal governments. He set up the first lab dedicated to oilsands research, and developed a long-term plan for upgrading bitumen. He was Syncrude’s first president, Frank Spragins.

In the 1970s, multinational companies had few active development plans for in situ leases. While these deeper deposits represent 80 per cent of the resource, there were no viable in situ technologies for the Athabasca, Peace River, Carbonates, or Wabasca deposits. The major exception was Imperial Oil, which was making limited progress at its Cold Lake site.

Once again a provincial politician took the lead. In 1975, he created the Alberta Oil Sands Technology Research Authority (AOSTRA) to provide government support for private research. During its 15-year life, AOSTRA provided $670 million of funding for oilsands research. Roger Butler’s SAGD process was the single most important advancement from this program. The politician? Premier Peter Lougheed.

Visionary number six has the opportunity to change Canada over this decade, leading the shift to production of cleaner, higher-value products from the oilsands.

There are more major obstacles, they are here and now, and they are environmental. Water, air and land are no longer free; there is a powerful green consciousness demanding that they be protected. Many consumers do not want to use products manufactured from Alberta’s “dirty oil.” Financial markets are concerned about the burden of environmental risk.

Who will help the industry overcome these obstacles? According to Clem Bowman, the next visionary will be able to articulate energy as an integrated system with the oilsands, hydro, natural gas, coal, nuclear and renewable energy all performing key roles. As importantly, that person will have the skills to forge the national will to make Canada a sustainable energy superpower.

Bowman does not conjecture on who this person might be,but his or her name will be marked in history.
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Sunday, September 05, 2010

In Alberta, An Instinctive Understanding


This article appears in the August issue of Oilweek magazine
By Peter McKenzie-Brown
“Pipelines are us,” Bob Taylor reminded me one day over lunch. Formerly Assistant Deputy Minister of Energy (Oil) with the Alberta government and now a consultant who specializes in energy systems innovation, he was discussing the two-fold importance of pipelines to the oilsands.

Before moving to the punch line, however, he put the discussion into context. Because of environmental worries, “oilsands producers are facing steadily increasing resistance in the provincial, national and international arenas.” He continued: “Unless we address these issues, the industry risks losing the social license to operate.”

With that, our wide-ranging discussion turned briefly to a particular theme. One reason you need pipelines is to take production to market. Without new or expanded pipelines, production growth would be next to impossible. However, the oilsands also require specialized pipeline networks to reduce their environmental impacts and to produce more efficiently.

Several examples illustrate this theme, and each carries a budget of $400 million or so. One is Williams Energy’s Boreal Pipeline, which will run from just north of Fort McMurray to Redwater, Alberta. The other is Enbridge’s Waupisoo pipeline expansion. Waupisoo originates at a terminal on Enbridge’s Athabasca Pipeline, 70 kilometres south of Fort McMurray. From there it stretches southwest to a pipeline hub near Edmonton. In addition, Pembina Pipelines is building a pair of lines to serve producers operating near Slave Lake.

Boreal Pipeline
The proposed new Williams pipeline is part of a project which turns waste into commercial products. So doing, it reduces carbon emissions and feeds valuable feedstock to the petrochemical sector. Williams Energy’s cryogenic liquids extraction plant near Fort McMurray recovers natural gas liquids and olefins from a stream of off-gases produced at the Suncor plant. Located about five kilometres away, it returns a sweet, leaner fuel to Suncor, which uses the returned gas for generating industrial heat. This enables the plant to operate more efficiently and reduces its carbon dioxide emissions.

As importantly, this profitable project provides feedstock for the petrochemical industry. Williams transports the recovered gas liquids to a facility in Redwater, northeast of Edmonton, for processing into products such as ethane, propane, butane, condensate and the olefins of ethylene, propylene and butylene. Before Williams began this operation, the hydrocarbons were just burned.

Now eight years old, this business has been so successful that Williams is expanding it. The new 420-kilometre long, 12-inch diameter Boreal pipeline will initially transport to Redwater up to 43,000 barrels of liquids per day. Later, it will expand to 125,000 barrels per day. Pipeline construction will take three seasons – from this fall to spring 2012.

As part of this large project, the company is building up processing facilities at both ends of the pipe. For example, Williams recently raised a 70-metre fractionation tower at its Redwater plant. This allows the company to produce a higher-quality product from the existing 14,000-barrel-per-day plant by splitting the butane and butylene components. There is much more to come.

Waupisoo Expansion
As summer began, Enbridge announced that it had made commitments to producers to make available an additional 229,000 barrels per day of capacity on the Waupisoo Pipeline. The 380-kilometre pipeline system is designed to carry up to 600,000 barrels per day of oilsands crude.

Four additional pumping stations and upgrades to two existing stations are the basis for the expansion which will take Waupisoo to design capacity of 600,000 barrels a day. The expansion will take place in two phases. The first 65,000 barrel per day expansion will be complete in the second half of 2012. An additional 190,000 barrels per day will be added by the second half of 2013.

The actual capacity of the line will depend on the viscosity of the crude it is carrying. Heavier oils travel more slowly, reducing capacity. Lighter oil blends are faster, and will be the transportation product used when the line is operating at design capacity.

Regulated by Alberta’s Energy Resources Conservation Board (ERCB), Waupisoo links producers to their upgraders and to refineries in the Edmonton area. It also connects to some of Canada’s other oil pipeline systems.

Enbridge operates the world’s longest crude oil and liquids transportation system, with a network of lines in Canada and the United States. The Waupisoo expansion will strengthen Enbridge’s position as the largest pipeline operator in the oil sands region; also, it likely will cement the company’s position as the shipper of choice for new oilsands producers.

Pembina
Of course, no one will ever dominate that market, as another pair of lines now under construction by Pembina Pipelines illustrates. The company’s new Nipisi Pipeline – designed initially to transport 100,000 barrels per day of diluted heavy oil – will reach from north of Slave Lake to Judy Creek. From there it will connect to an existing pipeline system, delivering products to the Edmonton area. Ultimately, Nipisi’s capacity can be doubled.

As part of this project, Pembina will construct its Mitsue Pipeline, which will ship 20,000 barrels per day of condensate diluent from Whitecourt to producers operating north of Slave Lake. Mitsue could ultimately be expanded to 45,000 barrels per day. Cost of this package of pipelines? About $440 million.

Each in its way, the pipelines covered in this review represent different aspects of what’s going on in the industry. On the one hand, they support growth. On the other, they contribute to greater efficiency and reduced environmental impacts. In Alberta the understanding of these two purposes seems almost instinctive – probably because, for decades, within the province vast networks of these systems have been operated by tens of thousands of employees. As a result, new pipelines and pipeline expansions encounter relatively little public resistance. Pipelines are us.
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Thursday, September 02, 2010

Pipeline Politics

The fate of two key oilsands projects is anything but certain. In red, above, Keystone.
This article appears in the September issue of Oilweek.
By Peter McKenzie-Brown

A web of oilsands pipelines is spreading from Canada’s oil hub at Hardisty, Alberta into American markets. At the beginning of summer, TransCanada’s Keystone Pipeline began delivering 435,000 barrels of oil to refining centres in Illinois. This fall, Enbridge’s Alberta Clipper will begin delivering an additional 450,000 barrels per day to Superior, Wisconsin.

That’s just the beginning, though. The Alberta government believes US imports from the oilsands will increase from today’s level of about 1.5 million barrels daily to nearly 4.3 million barrels daily in 2030, and there is plenty of potential to expand production beyond those numbers. So much expansion calls for a lot of pipelines. Will they reach primarily into the US, or will East Asia also become a key market?

The answer lies with the fate of two great pipeline proposals – TransCanada’s Keystone expansion and Enbridge’s Northern Gateway lines – which are both before the regulators. Although they reflect fundamentally different approaches to the market, TransCanada’s Keystone Expansion and Enbridge’s Gateway line represent vitally important industrial links from Alberta to the outside world. In different ways, the two proposals are embroiled in a conflict of old issues pitted against the new.

The old issues are technical and economic. The barrel of oil is blackening everywhere as supplies of light, sweet oil decline, and global demand is rising. Oilsands production is increasingly available and needs markets. The world’s big refining centres need feedstock and have the capacity to refine bitumen; pipelines are efficient and safe. The proposed pipelines are mega-projects which will provide jobs and economic stimulus. Oil-importing countries around the world want to develop secure, longer-term supplies.

The new issues are soft and ecological. Some environmental groups are aggressive against hydrocarbons, especially bitumen; they have successfully painted the oilsands black and want to further punish Canada’s merchants of dirty oil. Citizens wanting a greener world worry that the pipelines may lead to industrial accidents which spoil the environment. Politicians respond by supporting green measures that are sometimes ill-considered. Regulatory hearings drag on for months or years, and court challenges add to the delay.
In different ways, these are the issues facing Keystone and Gateway. Taken together, they are a fascinating study in pipeline politics.

Keystone
The Keystone Pipeline focuses entirely on delivering oilsands oil to US markets. The first phase of Keystone line began deliveries to the US Midwest in June.

About 3,500 kilometres in length, the pipeline transports oil from Hardisty, Alberta to US refineries in Wood River and Patoka, Illinois. The Alberta section involved construction of some 375 kilometres of pipeline, pump stations and terminal facilities from Hardisty. The next section involved the conversion to oil of nearly 900 kilometres of TransCanada’s natural gas mainline in Saskatchewan and Manitoba. The American section, to Illinois, is about 2,200 kilometres in length.

That was only the beginning, however. Phase II will involve a 480-kilometre extension from Nebraska to the marketing/refining and pipeline hub in Cushing, Oklahoma. Then comes the $7-billion Keystone Gulf Coast Expansion Project – approximately 2,700 kilometres in length, 36 inches in diameter, with completion planned for 2013. If constructed, this line would extend the system to 5,150 kilometres of total length: from Cushing it would be extended to Port Arthur, Texas and possibly also to Houston.

Keystone already has capacity of 435,000 barrels per day, and that will increase to 591,000 barrels per day with completion of the Cushing leg at the end of this year. With the completion of the expansion, the project would be able to deliver 1,100,000 barrels per day. Completion would run the total tab for the Keystone project up to US$12.2 billion.

War of Words
The day after TransCanada Corp.’s outgoing chief executive officer Hal Kvisle went to Wood River to ceremonially turn on the Keystone tap, Alberta premier Ed Stelmach published a half-page ad in the Friday edition of The Washington Post. His letter was partly a response to a letter to Secretary of State Hillary Clinton from 49 Democratic representatives. The letter urged her to halt the Keystone expansion on grounds the bitumen represents damaged environments in northern Alberta and higher carbon dioxide emissions in North America. For construction to proceed, the project needs approval from Clinton’s State Department.

Hoping to face down these congressmen, Stelmach argued that the oilsands are a reliable source of energy, and that the province is reducing pollution. His hottest zinger: “A good neighbour lends you a cup of sugar. A great neighbour supplies you with 1.4 million barrels of oil per day.” The response? Heavy-hitting U.S. Congressman Henry Waxman sent yet another letter hostile to the oilsands to the Secretary of State.

Consistently using the pejorative term “tar sands,” he described the Keystone expansion as “a multibillion-dollar investment to expand our reliance on the dirtiest source of transportation fuel currently available.”

The Keystone expansion, he added, “is a $7 billion pipeline that would transport up to 900,000 barrels/day of tar sands crude oil almost 2,000 miles from Alberta to refineries in the Gulf Coast. This pipeline would roughly double the quantity of tar sands fuel currently being imported, and in conjunction with two previously permitted tar sands pipelines that are not yet in full operation – Keystone and Alberta Clipper – would more than triple the quantity of tar sands fuel imported to the United States. The cumulative effect of the three tar sands pipelines would be to increase tar sands imports to over 3 million barrels per day. To process this large increase in tar sands imports, U.S. refineries will invest billions of dollars more in refinery upgrades.”

Outside the American Congress of course, there are many proponents of oilsands imports. According to lobbyist Tom Corcoran, executive director of the Washington-based Center for North American Energy Security, “ensuring access to affordable, reliable energy from our North American allies…should be a national priority. Projects such as the Keystone pipeline ensure increased domestic energy security, stable prices for consumers (and) minimal environmental impacts.” He added that “any evaluation of the indirect (greenhouse gas) emissions (such as from oil sands production or the transportation sector) would be purely speculative.” In all likelihood the energy security argument will prevail in Washington, and Secretary of State Clinton will issue a Presidential Permit allowing the Keystone Expansion to proceed.

Northern Gateway
But with so much resistance to bitumen imports from America’s environmental camp, why not just export the stuff to other countries? That’s the concept behind the other big pipeline project, Enbridge’s Northern Gateway Pipelines. This project is also being jeopardized by environmental concerns, but of quite a different kind.

The $5.5 billion Northern Gateway project would take oil from the Edmonton area to the nearest deepwater port – at Kitimat, on a British Columbia inlet.

To export the stuff would involve building a marine terminal with two ship berths, condensate tanks and 11 petroleum tanks. Only modern, double-hulled tankers could use the terminal, and escort tugs would be in charge of moving them in and out of risky waters. The Enbridge proposal also calls for third-party tanker inspections. The terminal would have a radar monitoring station and first response capabilities in the event of safety incidents or spills.

The 1,172 kilometre dual pipeline project would have a 36-inch pipe able to carry about 525,000 barrels of upgraded bitumen and bitumen blends into export markets every day. For the first time, Canadian oil would have significant access to overseas markets, primarily in East Asia. Northern Gateway would have a parallel 20-inch pipeline for flow of imported condensate from Kitimat to Alberta.

Condensate is the low-density (63o API) mixture of hydrocarbon liquids used as diluent to enable bitumen to flow, and this line would carry 193,000 barrels per day. Domestic supply is very short and there is little potential for internal growth because of declining gas production. To make up for shortfalls, for years the industry has been shipping condensate into Alberta by railway.

This line would thus assist the oilsands industry by opening up overseas markets, but also by bringing in the thinning solution needed to take the product to port. Enbridge wins both ways, but so does the oilsands sector.

Northern Gateway’s condensate pipeline is part of a two-pronged effort by Enbridge to bring diluent to the oilsands and heavy oil sectors. The company’s Southern Lights project from Chicago to the Edmonton area has already begun to fill, and will begin delivering 180,000 barrels per day of condensate this fall. The Southern Lights project runs roughly parallel to Enbridge’s Alberta Clipper line, but in this case the hydrocarbons are coming into Canada for use by oilsands producers.

Looming Engagement
As described earlier, the Keystone expansion is already dealing with political opposition, and its proponents have joined battle with its political and ENGO opponents. By contrast, Northern Gateway has barely begun the struggle. However, the company has employed armies of public relations and public consultation teams to do battle.

Armies they will need, because public opinion on the West Coast seems to be strongly against the project.

According to a poll commissioned by Forest Ethics, an ENGO, 80 percent of British Columbians support a crude oil tanker ban for BC’s coastal waters, while 15 percent think tanker traffic should be allowed. Significantly more British Columbians oppose the Enbridge Northern Gateway pipeline (51 percent) than support it (34 percent). And British Columbians who strongly oppose Enbridge’s pipeline (31.7 percent) outnumber four-to-one strong supporters (8.1 percent).

The basic issues are two: transporting oil across aboriginal territory, and using tankers to transport oil along the B.C. coast. Both of these are greatly complicated, however, by the perception that oil from the oilsands is dirty.

Enbridge needs to secure rights-of-way to construct the line through the lands of 48 Aboriginal communities located along the pipeline route – half of them in B.C. To prepare for hearings in this area, Enbridge commissioned studies on the project’s potential cultural, social and economic effects; its impact on traditional land and resources use; and its potential effects on heritage and archaeological resources. However, in March nine coastal First Nations declared a ban under their traditional laws on the transport of oilsands oil through their territories, and announced at a news conference that they would take whatever steps were necessary to stop the project.

Getting approval for tankers to carry oil through the passage from Kitimat to the Pacific, and thence within Hecate Strait, to the east of the Queen Charlotte Islands, is becoming a political football. In 1972 the Liberal government of Pierre Trudeau imposed an informal ban on oil tanker traffic in this area. At the beginning of summer, Liberal Leader Michael Ignatieff announced that the federal Liberals would formalize a moratorium on crude oil tanker traffic in British Columbia’s northern coastal waters. He was clearly playing to public opinion in the province. Oil tankers have been moving through southern coastal waters for half a century, carrying oil from a Kinder Morgan pipeline terminal in Burnaby at Burrard Inlet without a major spill.

“It’s been (our) vision...to find another market for Western Canadian oil,” Enbridge’s engineering manager Raymond Doering told the Caledonia Courier, which is published in the town of Fort St. James. Gateway has “been described as the largest private infrastructure investment in B.C.” He added that the company has established positive working relationships with 24 First Nations communities in Alberta and 18 of the 24 affected First Nations in B.C. So far, so good. Then he added that there is a small, vocal minority of First Nations people opposed to the project
.
“A small group of (First Nations) people object to the dirty oil pipeline?” an infuriated reader wrote in response. “There are thousands of BC people opposed to the dirty oil tankers in our pristine coastal waters....When (an oil spill) happens, the beautiful Orca and Humpback whales, and all the marine life will perish. I don't give a dam (sic) if the dirty tankers have 10 hulls, those are dangerous seas, and hard to navigate. There is still oil collecting on the rocks from the Valdez spill, 21 years ago....”

Struggles
As we said at the beginning, after the engineering and the economics come soft issues which can be hard to deal with. America’s Department of State will make the final decision for the Keystone Expansion – probably buying the energy security argument.

In Canada, the National Energy Board will make the final decision for Gateway. The NEB has appointed a joint review panel to examine the project’s environmental effects, look for ways to mitigate negative effects, hold public hearings and consider comments from the public and Aboriginal peoples, and submit an environmental assessment report with reasons and recommendations about the project to the federal government. Gateway’s fate is far less assured than Keystone’s.

For the oilsands sector, which needs expanding export markets to continue to grow, the pipeline struggles are vital. Watch them closely.
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