The Tar Sands Disaster – by Thomas Homer-Dixon (New York Times – March 31, 2013)

 http://www.nytimes.com/

Thomas Homer-Dixon, who teaches global governance at the Balsillie School of International Affairs, is the author of “The Upside of Down: Catastrophe, Creativity and the Renewal of Civilization.”

IF President Obama blocks the Keystone XL pipeline once and for all, he’ll do Canada a favor.

Canada’s tar sands formations, landlocked in northern Alberta, are a giant reserve of carbon-saturated energy — a mixture of sand, clay and a viscous low-grade petroleum called bitumen. Pipelines are the best way to get this resource to market, but existing pipelines to the United States are almost full. So tar sands companies, and the Alberta and Canadian governments, are desperately searching for export routes via new pipelines.

Canadians don’t universally support construction of the pipeline. A poll by Nanos Research in February 2012 found that nearly 42 percent of Canadians were opposed. Many of us, in fact, want to see the tar sands industry wound down and eventually stopped, even though it pumps tens of billions of dollars annually into our economy.

The most obvious reason is that tar sands production is one of the world’s most environmentally damaging activities. It wrecks vast areas of boreal forest through surface mining and subsurface production. It sucks up huge quantities of water from local rivers, turns it into toxic waste and dumps the contaminated water into tailing ponds that now cover nearly 70 square miles.

Also, bitumen is junk energy. A joule, or unit of energy, invested in extracting and processing bitumen returns only four to six joules in the form of crude oil. In contrast, conventional oil production in North America returns about 15 joules. Because almost all of the input energy in tar sands production comes from fossil fuels, the process generates significantly more carbon dioxide than conventional oil production.

There is a less obvious but no less important reason many Canadians want the industry stopped: it is relentlessly twisting our society into something we don’t like. Canada is beginning to exhibit the economic and political characteristics of a petro-state.

Countries with huge reserves of valuable natural resources often suffer from economic imbalances and boom-bust cycles. They also tend to have low-innovation economies, because lucrative resource extraction makes them fat and happy, at least when resource prices are high.

Canada is true to type. When demand for tar sands energy was strong in recent years, investment in Alberta surged. But that demand also lifted the Canadian dollar, which hurt export-oriented manufacturing in Ontario, Canada’s industrial heartland. Then, as the export price of Canadian heavy crude softened in late 2012 and early 2013, the country’s economy stalled.

Canada’s record on technical innovation, except in resource extraction, is notoriously poor. Capital and talent flow to the tar sands, while investments in manufacturing productivity and high technology elsewhere languish.

For the rest of this column, please go to the New York Times website: http://www.nytimes.com/2013/04/01/opinion/the-tar-sands-disaster.html?_r=0

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