Keystone XL Cancellation: A Victory for the Environment?

Part 2 of 3

When the Biden administration effectively canceled the Keystone XL Pipeline as a first order of business in January, environmentalists all over North America celebrated a major victory.

“There was no magic to how we beat the Keystone XL Pipeline – it was grit, shared leadership and never forgetting who and what we were fighting for,” said Jane Kleeb, chair of the Nebraska Democratic Party, as quoted in a January 2021 article in Politico.

But did they really know what they were fighting for?

The Keystone XL – a 1,200-mile addition to the existing Keystone Pipeline – was proposed in 2008 to increase exporting capacity from Canada’s oil sands to U.S. refineries, many of which rely almost solely on Canadian heavy oil and bitumen. The pipeline was to be mutually beneficial for land-locked Alberta, which has long struggled with pipeline capacity, and the Gulf Coast refineries that have been losing crude supplies from Venezuela and Mexico.

What might seem like a victory to pipeline protesters may soon reveal itself to be a great loss. Without the Keystone XL, there is no question that Canada will rely more heavily on rail to move its product to the United States. In fact, statistics are already revealing a sharp uptick in rail shipments.

So, in exchange for a modern, safe and emissions-free pipeline, it is anticipated that both countries will see an increase in carbon emissions from diesel engines and greater risks for environmental incidents from this more precarious mode of transportation.

Serving the Narrative

In the oil and gas industry, it is widely believed that protests against pipelines are rarely about pipelines.

“The issue is the oil in the pipeline,” said Chris Bloomer, president and CEO of the Canadian Energy Pipeline Association, speaking specifically of production in the oil sands, which have long been targeted by environmentalists as a source of the most intense greenhouse gases. “This is the dirty oil campaign – an old narrative that environmentalists are clinging to.”

However, the sands have reduced emissions by 21 percent between 2017 and 2019 and continue to do so, Bloomer said.

“That’s not even being brought into the environmentalists’ analyses,” he said.

Furthermore, 80 percent of oil sands production occurs in the subsurface, yet oppositionists focus on the 20 percent that occurs at the surface, broadcasting unsightly images of open sandpits, said John Hogg, past AAPG president, past president of the Canadian Society of Petroleum Geologists and president of Skybattle Resources. He also noted that images of well pads in the boreal forest are shared by extremists as representations of all industry activities.

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When the Biden administration effectively canceled the Keystone XL Pipeline as a first order of business in January, environmentalists all over North America celebrated a major victory.

“There was no magic to how we beat the Keystone XL Pipeline – it was grit, shared leadership and never forgetting who and what we were fighting for,” said Jane Kleeb, chair of the Nebraska Democratic Party, as quoted in a January 2021 article in Politico.

But did they really know what they were fighting for?

The Keystone XL – a 1,200-mile addition to the existing Keystone Pipeline – was proposed in 2008 to increase exporting capacity from Canada’s oil sands to U.S. refineries, many of which rely almost solely on Canadian heavy oil and bitumen. The pipeline was to be mutually beneficial for land-locked Alberta, which has long struggled with pipeline capacity, and the Gulf Coast refineries that have been losing crude supplies from Venezuela and Mexico.

What might seem like a victory to pipeline protesters may soon reveal itself to be a great loss. Without the Keystone XL, there is no question that Canada will rely more heavily on rail to move its product to the United States. In fact, statistics are already revealing a sharp uptick in rail shipments.

So, in exchange for a modern, safe and emissions-free pipeline, it is anticipated that both countries will see an increase in carbon emissions from diesel engines and greater risks for environmental incidents from this more precarious mode of transportation.

Serving the Narrative

In the oil and gas industry, it is widely believed that protests against pipelines are rarely about pipelines.

“The issue is the oil in the pipeline,” said Chris Bloomer, president and CEO of the Canadian Energy Pipeline Association, speaking specifically of production in the oil sands, which have long been targeted by environmentalists as a source of the most intense greenhouse gases. “This is the dirty oil campaign – an old narrative that environmentalists are clinging to.”

However, the sands have reduced emissions by 21 percent between 2017 and 2019 and continue to do so, Bloomer said.

“That’s not even being brought into the environmentalists’ analyses,” he said.

Furthermore, 80 percent of oil sands production occurs in the subsurface, yet oppositionists focus on the 20 percent that occurs at the surface, broadcasting unsightly images of open sandpits, said John Hogg, past AAPG president, past president of the Canadian Society of Petroleum Geologists and president of Skybattle Resources. He also noted that images of well pads in the boreal forest are shared by extremists as representations of all industry activities.

While the oil sands span nearly 55,000 square miles, the part that is mined is 1,650 square miles – just three percent of the total resource, he said, adding, “But that fact doesn’t make people raise money and protest.”

By linking false narratives and frightening photos to the oil sands, which hold the world’s third largest oil reserves, it is easy to see how extreme environmental groups could help convince the public, celebrities and policymakers to fight the pipeline that would have economically bolstered the oil sands’ production.

“How is it that pipelines, of all things, are now a major election issue?” said Vivian Krause, a controversial Canadian researcher and writer, in a June 2019 issue of Pipeline News. “They used to be out of sight, out of mind. No one ever had a pub conversation or dinner conversation over pipelines. But now we do.”

Kleeb confirmed as much to Politico: “Not a single farmer or rancher I know would have ever guessed that they would have been at the center of one of the largest climate battles of the last decade.”

As a new generation of environmental groups emerge – fueled by genuine concerns about climate change, yet gross mistruths about the oil and gas industry that run rampant on social media – pipelines have become a bullseye in what is now a mainstream movement to handicap the industry.

Knowing that Canada places a heavy emphasis on support from indigenous groups on industry-related projects, many environmentalists invade those communities to “stronghold” them, said Gregory John, president of Four Peaks Business Development, which specializes in indigenous and stakeholder relations, and a citizen of the Métis Nation of Alberta, with family relations at Siksika Nation in Alberta and Lhtako Dene Nation in British Columbia.

“When environmentalists go and stir things up, it doesn’t reflect the true nature of discussions happening at the community level,” he said. “The dilemma occurs when the community’s true voice is drowned out by environmental groups not acting in their best interests. It is all about fear.”

After researching tax returns of charitable organizations in the United States, Krause learned that multiple, prominent foundations, including the Rockefeller Brothers Fund, were contributing to Canadian environmental groups. A grants database specified that certain donations were “specifically to cap tar sands production in Alberta,” she said in Pipeline News. She also shared that payments were made to indigenous groups that voiced opposition to pipelines.

Brad Hayes, director of the Canadian Society for Unconventional Resources and president of Petrel Robertson Consulting, said her theories are credible. “American interests don’t want to see competition from Canada so they are happy to back the environmentalists,” he said. “This is not conspiracy theory. It is evidence.”

Oil Is Still Moving

If environmentalists believe that axing the Keystone XL Pipeline will slow production in Canada’s oil sands, they need to think again.

In 2019, Canada exported 3.7 million barrels of crude per day to the United States – 98 percent of its crude exports, according to Natural Resources Canada. Many believe, even without the Keystone XL, the oil will continue to flow.

Despite it being a more costly way to ship crude, bitumen transport by rail is already on the rise: “For November 2020, the volume of Canadian crude oil exports by rail had soared 86.5 percent month over month to 173,095 barrels daily,” stated a January 2021 report from OilPrice.com. In December, the Canada Energy Regulator reported that the country exported 190,454 barrels per day.

“We are moving toward 400,000 barrels a day,” Hogg said. “It’s being pulled by diesel engines in a less safe way with more carbon dioxide being sent into the atmosphere. That’s why the Keystone XL was approved the first time – it’s a cheaper and safer way to transport the oil and emits far fewer greenhouse gases.”

Many find it difficult to forget past rail incidents. A 2013 explosion in Lac-Mégantic, Quebec killed 47 people. And the following year explosions and fireballs forced the evacuation of 150 people in Manitoba. While neither incident involved heavy crude or bitumen, the memories remain.

Studies have conclusively demonstrated that pipelines pose far fewer hazards in terms of spills and emissions.

Due in part to better technology and safety requirements, “pipelines are the safest and most efficient way to move large volumes of oil and natural gas,” states the Canadian Association of Petroleum Producers. “Nearly all – more than 99 percent – of the oil and natural gas products transported through transmission pipelines reach their markets safely.”

Pipeline operators are required to design safety, emergency, security, integrity management and environmental protection programs as a means to anticipate, prevent and mitigate potentially dangerous conditions, according to CAPP. Operators also use sophisticated, computerized monitoring and control systems to provide continuous real-time information and conduct routine inspections and aerial patrols of pipelines.

In fact, the Alberta Energy Regulator reports that over the last decade, the number of pipeline incidents in Canada declined by 32 percent while the length of pipelines grew by 13 percent.

The Keystone XL – the most studied pipeline in industry history – would have served as a prototype for efficient and safe pipelines of the future. Its builder, TC Energy, pledged net zero emissions, a conversion to 100-percent renewable power, a $1.7 billion investment in renewable energy, thousands of “green jobs” and “green energy” training.

Fueling the Transition

While there is no dispute that Canada, the United States and much of the world are working toward transitioning to renewable energy, there are wide-ranging thoughts as to when and how that will take place.

“Some people believe we are right at the end of the fossil fuel era,” said Mark Pinney, manager of markets and transportation at CAPP. “But the world is going to require decades yet of fossil fuels being the main staple of the energy mix. People are in denial about how quickly we can phase out.”

Referring to younger generations who get their news from social media and are saturated with messages about global warming, Hogg said these future leaders must be educated about the ongoing, critical need for hydrocarbons.

Speaking to the EXPLORER on a particularly cold day, Calgary-based Hayes said, “It’s -30 degrees Celsius now and the wind is not blowing, and the sun is not shining. There is nothing going on (regarding renewable electricity generation) and the demand for power is at its highest. You can’t possibly live here without fossil fuels. We have to progress, bring on new technology and we are nowhere close to it.”

Policymakers who shut down pipelines, ban drilling and systematically close the doors on the oil and gas industry could contribute to what Bloomer called “absolute chaos” in a February 2021 op-ed piece in the Calgary Herald.

“Some say they would like to see the oil and gas taps turned off tomorrow. Can you imagine what would happen?” Bloomer said. “Widespread power and heating shortages. No gasoline.”

“China and India are not changing their energy mix. In fact, coal, oil and gas are growing. If we shut down North American production tomorrow, we will be buying oil from the Middle East, Africa and Russia,” Hogg said. “We’re going to do the German experiment all over again: shut down the nukes and coal plants to go green. But the green grid did not work for them, and they built 26 new coal plants from 2007 to 2020.”

Some say it is time for the industry to speak up about its essential role both during and after the transition. “For the longest time, the average person wanted cheap fuel and a reliable supply of natural gas and to live life,” Hogg said, explaining the value of the industry did not seem necessary to justify its presence.

But today is a new day.

In his op-ed, Bloomer stresses that, “… we can’t flip a switch. And we can’t destroy the industry that is going to fund and fuel this change.”

Excerpt of Part 3:

The oil and gas industry is finding new ways to move crude and bitumen, and its efforts to earn support from indigenous groups are paying off. But how does it convince younger generations that fossil fuels are still needed?

“The challenge to the industry is to understand how to engage in effective communication tactics that are respectful of our code of ethics and desire to be truthful while making impacts on people,” said Brad Hayes, director of the Canadian Society for Unconventional Resources and president of Petrel Robertson Consulting. “There has to be better communication.”

Comments (2)

XL Pipeline
The cancellation of the XL Pipeline is nothing more than political payback from President Biden to his campaign contributor Warren Buffet. Should the pipeline be completed and we transport Canadian crude via safe pipelines then Mr. Buffet stands to lose significant value in his holdings of railroad stock; railroads that are presently transporting the crude. Just another day in the Oval office that has nothing to do with anything other than money.
5/5/2021 12:46:52 PM
A Victory for the Environment
Very good article, well written. A Victory for the Environment would be the the full acceptance of the inevitable Age of Natural Gas as the transition to the Age of Renewable and Sustainable Nuclear Energy. Solar and wind are extremely damaging to the environment and only serve to profit the green thieves.
5/4/2021 2:18:35 PM

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