What about Keystone XL?

It would seem that President Obama gave a tacit approval of the Keystone XL pipeline yesterday saying he would NOT approve the pipeline if it would “significantly exacerbate” the problem of climate change. The U.S. State Department’s Draft Supplemental Environmental Impact Statement, finds that, “approval or denial of the proposed Project is unlikely to have a substantial impact on the rate of development in the oil sands, or on the amount of heavy crude oil refined in the Gulf Coast Area.”

The final determination will rest on the President’s use of the phrase “significantly exacerbate.” While the phrase is very ambiguous, CEA’s analysis of the relevant environmental impact statements shows the project will not significantly contribute to U.S. carbon emissions.

During the construction period, GHG emissions from these sources and activities would be approximately 240,423 metric tons of CO2e. Emissions during the operation of the proposed project would be approximately 3.19 million metric tons of CO2e per year.” [ES-15]

All this discussion comes at a time when U.S. carbon emissions are around 5.2 billion metric tons, which is the lowest level in 20 years. This means that once constructed, annual greenhouse gas output from the pipeline will account for 0.0613% of U.S. carbon emissions.

Moreover, denying the pipeline would force refineries to continue to import heavier crudes from Mexico, Venezuela and potentially the Middle East. The GHG transport footprint of a barrel of oil from each of these importing countries is significantly higher than the transport footprint of oil imported from Canada.

Transporting crude from:

  • Mexico is 13% more GHG intensive than transporting Canadian
  • Venezuela is 26.4% more GHG intensive than transporting Canadian
  • Nigeria is 90.5%  more GHG intensive than transporting Canadian
  • Saudi Arabia is 194% more GHG intensive than transporting Canadian

*According to the Department of State’s Final Environmental Impact Statement for the Proposed Keystone XL Project (released August 2011), the top four crude oil importers to the Gulf Coast refinery complex are Mexico, Venezuela, Nigeria and Saudi Arabia.  Keystone XL could displace up to 40% of these imports.
 

What is the President’s definition of “significantly exacerbate?” Will he call for additional studies of the GHG emissions associated with the project? Will the administration rely on the already-completed GHG analysis of the project?

Diluted Bitumen Ready for Transport, Report Finds

The National Academy of Science released a report on Tuesday explaining Canadian oil is no different than any other type of oil shipped safely via a pipeline.  The Omaha World-Herald has the story:

LINCOLN — The heavy Canadian oil that would flow in the proposed Keystone XL pipeline doesn’t cause more leaks than lighter crudes, the National Academy of Sciences has determined.

A committee of 12 experts assembled by the National Academy released a report Tuesday that found diluted bitumen, the category of oil shipped from Alberta’s tar-sands region, has no greater likelihood of causing pipeline failure than other oils. The committee reviewed pipeline incident statistics, reports, investigations and data on the chemical and physical properties of diluted bitumen.

The heavy tar-sands oil has been imported from western Canada for more than 30 years and transported in numerous pipelines in the United States, the report stated.

“There’s nothing extraordinary about pipeline shipments of diluted bitumen to make them more likely than other crude oils to cause releases,” said Mark Barteau, a chemical engineering professor at the University of Michigan who chaired the report committee. 

Consumer Energy Alliance’s Michael Whatley explained the report will alleviate some people fears over the safety of transporting Canadian oil.

Michael Whatley is executive vice president of the Consumer Energy Alliance, a strong proponent of the Keystone XL project. He said the report should put to rest any questions that diluted bitumen is inherently more dangerous to ship by pipeline than other oils.

“We are glad to have the backing of the National Academy of Science to knock down that argument,” he said Tuesday.

Full article

KFQD Radio Segment on Alaskan Energy Production

In this radio interview on KFQD in Anchorage Alaska, CEA President David Holt discusses a number of Alaska related energy issues and how they impact Americans in the lower 48.

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National Academy Examines Impact of Dilbit on Pipelines

The National Academy of Sciences released a new report today, Special Report 311: Effects of Diluted Bitumen on Crude Oil Transmission Pipelines, refuting many claims that Diluted Bitumen or Dilbit from Canadian oil sands will corrode pipelines.

As discussed in Chapter 3, the bitumen imported into the United States is derived from Canadian oil sands. Canadian bitumen is both mined and recovered in situ using thermally assisted techniques. A large share of the bitumen deposits is too deep for mining, so in situ recovery accounts for an increasing percentage of bitumen production. Because mined bitumen does not generally have qualities suitable for pipeline transportation and refinery feed, it is processed into synthetic crude oil in Canada. Bitumen recovered in situ with thermally assisted methods has lower water and sediment content and is thus better suited to long-distance transportation by pipeline than is mined bitumen. Bitumen imported into the United States is produced in situ through thermally assisted methods rather than by mining. (Page 71)

Some critics claim that Canadian oil sands is different from conventional crude oil.  The National Academy report disputes this claim as well:

The dilution process yields a stable and fully mixed product for shipment by pipeline with density and viscosity levels in the range of other crude oils transported by pipeline in the United States. (Page 72.) 

The good news for people who are concerned about the safety of the Keystone XL pipeline is the National Academy study has similar findings to earlier studies.

TransCanada, the company building KXL points out on its blog:

Studies by petroleum chemical experts have also concluded that diluted bitumen behaves the same as other forms of crude oil and does not lead to more corrosion in pipelines. A study released earlier this year by the U.S.-based Batelle Memorial Institute concluded that “diluted bitumen poses no more of a corrosion risk to pipelines than conventional crudes.” Similarly, a study by Alberta Innovates found that diluted bitumen may actually be less corrosive to steel pipelines than conventional crudes. And an international standards organization has also concluded the same based on new research involving scientists from Natural Resources Canada.

 

Electricity Costs Top Concern in Evaluating “Climate Action Plan”

Consumer Group Warns of Economic Impact of Price Spikes

Houston, TX – Consumer Energy Alliance’s Executive VP Michael Whatley released the following reaction to the proposals outlined in President Obama’s “Climate Change Action Plan.”

“Any proposal needs to be evaluated in terms of its impacts on American energy consumers as electricity costs can be a major drag on both household budgets and the bottom lines of farms, factories and businesses.”

Michael Whatley is a former Staff Director and Chief Counsel for the Senate Subcommittee on Clean Air and Climate Change.

Consumer Energy Alliance will work with its over 300,000 grassroots members and 200 member companies in evaluating the proposal and making recommendations that best serve America’s energy consumers.

CEA and Pennsylvania Officials Discuss Energy Opportunities

Mid-Atlantic Rural Farm

Consumer Energy Alliance (CEA) Mid-Atlantic along with the Washington County Chamber of Commerce recently hosted a panel discussion about the nation’s energy future and security. The event highlighted the importance of responsible energy development in the context of new opportunities for economic growth and manufacturing.

The panel discussion included Kurt Barshick, U.S. Steel General Manager of Tubular Operations, Ken Broadbent, Business Manager of Steamfitters Local 449 and John McCarthy, Vice President of Chapman Corporation and was moderated by CEA’s executive vice president, Andrew Browning.

Browning said, “The common thought among all the panel members here today is that the natural gas industry in the region has had a huge impact on Washington County over the past several years.”

“This is a big deal in the county. Gas isn’t going away,” Broadbent said.  “We need more steamfitters from the Washington County area to do this type of work.”

Ken Broadbent from Steamfitters Local 449 stressed the need for local workers in the Marcellus Shale region, with the hope that young men and women will consider career paths as welders and pipefitters.

“I don’t want people from Texas and Oklahoma welding in your backyard. I want your sons and daughters welding in your backyard.”  Broadbent went on to say, “I tell these kids, if you can weld you can make $80,000, $100,000, $120,000 a year.” He added, “When they are properly trained they are getting jobs right out of our apprenticeship program. There are (those) who go to school four, six or eight years and there’s no promise of a job.”

John McCarthy strongly supported Broadbent’s comments in regards to the increasing demand for welders.

“The Marcellus Shale is really the driver. Every project we do, we’re desperate for welders. Where they have been coming from is Oklahoma, Texas and other gas fields. We need the local young men.”

McCarthy also spoke of the strategic partnership between Chapman and Local 449 and how the company is helping with manpower. “We have a classification of workers known as ‘metal trades workers.’ Three years ago we had none. Today we have 16 of those workers. They have allowed us to tap into the resources of Washington County. They are local employees.”

With the Marcellus region and other shale plays around the country producing more natural gas, fellow panelist Kurt Barshick, General Manager of U.S. Steel’s tubular division said his company is seeing a growing demand for its pipe products and the low price of domestically produced natural gas has also helped the steelmaker to lower its production costs.

“It’s making us very competitive against foreign producers, which pay a much higher price for natural gas. Much of the competing product comes from foreign countries, including China and South Korea, whose governments are subsidizing the products to make them cheaper.”

With CNBC recently claiming that the “Marcellus Turns Pennsylvania Into ‘Saudi Arabia’ of Natgas,” it is no surprise that many domestic and international companies are looking to play a part in this exciting time for Washington County, the state and the nation.

With this in mind, it is important to continue having a thoughtful discussion on both the tremendous benefits responsible shale gas production brings to both our state and nation and why low, stable energy prices are paramount to ensuring an energy future that is strong, reliable, and beneficial to all consumers. CEA Mid-Atlantic looks forward to continuing this dialogue through a series of events planned for 2013, including the Pennsylvania Energy & Manufacturing Summit later this year.

U.S. Rep. Cárdenas Visits CEA Members

CEA Hosts Congressman Cárdenas at Monthly Meeting: CEA on Thursday hosted U.S. Congressman Tony Cárdenas (D-CA) at its monthly membership meeting in Washington, DC.  The Congressman, who sits on the U.S. House Natural Resources, Budget, and Oversight and Government Reform Committees, discussed topics including hydraulic fracturing, his previous role as a California state legislator, the need for an all-of-the-above energy approach, and his interest in becoming a member of the House Energy & Commerce Committee.  Rep. Cárdenas formerly served as a member of the California State Assembly and Los Angeles City Council.

Why drill for Natural Gas?

Consumer Energy Alliance President, David Holt, sits down and answers consumer questions. Shawn from Texas wants to know, “We hear a lot about natural gas, but that won’t help fill up my gas tank. Why do we need to drill for it?”

Tips to Lower your Energy Bill

A few tips for you from the folks at DailyWorth.com:

A good way to cut down on your spending is to gradually target different expenditures. Lowering your energy bill is a nice option — not only is it a monthly expenditure, but you can also do some good for the environment while saving money. Here are some suggestions for reducing your electricity usage and costs:

  1. Unplug when not in use. Even when they’re not in use, your electronics can still eat up electricity as long as they’re plugged in — yes, even chargers that aren’t connected to anything. There are many items we don’t think about unplugging, including microwaves, digital picture frames, and more. Even though the power lost by these “vampire” electronics may not be much, everything adds up.

  2. Use a power strip. Get a power strip and try to plug as many electronics as you can into it. That way, it won’t be as arduous to individually shut off or unplug each appliance. You can turn them all off with one flick of the switch or unplug the power strip from its outlet to completely stonewall the “vampire” electronics.

  3. Energy audit. An energy audit may be helpful in figuring out the problem areas in your home that you may be unaware of. The auditor will help advise you on how you can reduce energy consumption and how to ramp up efficiency when heating and cooling houses.

  4. Replace your bulbs. Replace your lightbulbs with energy-efficient ones to save energy and money. An energy-efficient bulb uses 75 percent less energy than a traditional incandescent bulb and lasts six times longer.

Natural Gas Use Rising

Over at the U.S. Department of Energy’s EIA.gov, we learn that Natural gas use is up among industrial consumers.

EIA.gov: Natural gas use for industrial purposes was more than 3%, or 0.6 billion cubic feet per day, greater during the first five months of 2013 compared to the same period in 2012. Higher industrial gas usage reflects recent economic gains and sustained, historically low natural gas prices that have provided operators of natural gas-intensive industrial facilities in the United States a cost advantage relative to competing facilities that rely on higher-cost energy sources.

Industrial customers form an important gas-use sector, using natural gas for a variety of purposes, including the following:

  • Firing boilers for steam needs

  • Direct heating for melting, baking, or drying commodities, such as in steel, paper, glass, and food

  • Operating a combined heat and power (CHP) facility, which provides both heat and local electricity to run a factory, instead of buying electricity from the grid

Overall this means that the economic engine of the United States is beginning to pick up, due in large part to affordable and available natural gas. More demand for natural gas means American industry is making more “things,” hiring more workers, contributing more to the tax base and powering the economy.

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