Major new oil pipeline to Eastern Canada to get the go-ahead – by Shawn McCarthy and Jane Taber (Globe and Mail – August 1, 2013)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

OTTAWA AND HALIFAX — TransCanada Corp. is expected to announce Thursday that it will push ahead with a major oil pipeline linking Western Canada with refineries and export terminals in the east, marking a significant step forward for Canada’s goal to tap new export markets.

The Energy East pipeline would deliver some 850,000 barrels of crude a day from Western Canada to Quebec and New Brunswick, serving the three refineries in the two provinces. The project – labelled a “nation builder” by New Brunswick Premier David Alward – has been endorsed by provincial and federal politicians, though Quebec Premier Pauline Marois said last week her province would have to study the proposal once TransCanada releases its detailed plans.

The planned pipeline is a strategic bid to open up new export opportunities for Canadian energy producers eager to diversify their markets beyond the oil-glutted U.S. Midwest. Alberta oil production is surging, but the province faces serious hurdles with other projects aimed at expanding crude-export capacity.

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Oil sands crisis strategy a work in progress – by Claudia Cattaneo (National Post – August 1, 2013)

The National Post is Canada’s second largest national paper.

More than two months after bitumen mixed with water started seeping from its Primrose oil sands project, Canadian Natural Resources Ltd. mobilized Wednesday to deal with the real out-of-control gusher — misinformation.

After saying little publicly about the incident, involving seepages that started on May 20, Canadian Natural issued an early morning news release, held an analyst call and then interviews with the media to confirm the leaks have been contained and the spill is being cleaned up.

No one got hurt, the company said, but 16 birds, seven small mammals and 38 amphibians were killed and that two beavers, two birds and two muskrats are being cared for prior to being returned to their natural environment. So far, 6,300 barrels of bitumen emulsion have been collected, while seepage from four locations has declined to fewer than 20 barrels per day.

Meanwhile, the company cut its forecast for 2014 production from the project to 100,000-110,000 barrels per day, about 10,000 b/d lower than targeted.

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English hamlet becomes unlikely hub for global fracking debate – by Paul Waldie (Globe and Mail – July 31, 2013)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

BALCOMBE, ENGLAND — With its million-pound homes and leafy estates, the village of Balcombe hardly looks like a hotbed of environmental activism. But this community of fewer than 2,000 has suddenly become the latest epicentre of the global debate over fracking.

For the past week, Balcombe villagers have been waging war with Cuadrilla Resources Ltd., Britain’s largest shale player, which is about to start test drilling in the area, hoping to extract oil from shale rock. Houses have been plastered with “Frack Off” signs, and dozens of people have lined the gates to the site, chanting, singing and trying to stop trucks from going in. Nearly two dozen people have been arrested.

The “Battle for Balcombe” has become a rallying cry for opponents of fracking everywhere as activists, celebrities and media have descended on the village, a short train ride south of London. Arrivals of serial, experienced veterans of the G20 demonstrations and the Occupy camp outside St. Paul’s have turned this town into an eco-cause celebre.

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Shale Threatens Saudi Economy, Warns Prince Alwaleed – by Summer Said and Benoit Faucon (Wall Street Journal – July 30, 2013)

http://online.wsj.com/home-page

Investor Says Kingdom’s Economy Increasingly Vulnerable

Saudi billionaire Prince Alwaleed bin Talal has warned that the kingdom’s oil-dependent economy is increasingly vulnerable to rising U.S. energy production, breaking ranks with oil officials in Riyadh who have played down its impact.

In an open letter dated May 13 addressed to Saudi Oil Minister Ali al-Naimi and several other ministers, a link to which was published Sunday on Prince Alwaleed’s Twitter account, he warned that the boom in U.S. shale oil and gas will reduce demand for crude from members of the Organization of the Petroleum Exporting Countries. A Saudi official confirmed that ministers received the letter in May.

Not long after the prince issued his warning, a report from OPEC published Monday showed the group’s oil export revenue hit a record high of $1.26 trillion in 2012. However, forecasts from the group raise questions over whether that level of earnings can be sustained amid the competition from shale oil.

Saudi Arabia, the world’s biggest oil exporter, is now pumping at less than its production capacity because consumers are limiting their oil imports, Prince Alwaleed said in the letter. This means the kingdom is “facing a threat with the continuation of its near-complete reliance on oil, especially as 92% of the budget for this year depends on oil,” said the prince.

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Do we really need Keystone? As Obama dithers, Canada moves on other options – by Claudia Cattaneo (National Post – July 30, 2013)

The National Post is Canada’s second largest national paper.

President Obama’s latest smug comments on the Keystone XL oil sands pipeline suggest the Canadian project’s odds of being approved under his watch are waning.

Thankfully, Canada hasn’t stood still while the U.S. President dithered. So many new pipeline options have emerged that Keystone XL’s relevance is diminishing as each one gains momentum.

Sure, it will be hard to fill Keystone XL’s void and promise over the short term — perhaps a couple of years around 2016 and 2017 until new pipeline options are up and running.

But over the long-term, Canada is better off fast-tracking oil market diversification to global markets that are not beholden to U.S. anti-oil interests and that remain very motivated to buy Canadian supplies.

Two all-Canadian options — TransCanada’s Energy East project from Alberta to New Brunswick, and pipelines from Alberta to the West Coast — made big leaps forward in the past few days.

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Oilsands expansion raises red flags for regulators – by Gilliam Steward (Toronto Star – July 30, 2013)

The Toronto Star has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.

Regulators increasingly want governments to take more responsibility for oilsands projects and their consequences.

The proposed west-east oil pipeline is inching closer to reality. Last week the premiers discussed the feasibility of such a huge project at their annual get-together. And TransCanada Energy confirmed that it has already signed up major producers who want bitumen from the Alberta oilsands delivered to refineries as far afield as New Brunswick and possibly for export.

Meanwhile in Alberta, for the first time regulators have raised alarming red flags about the environmental impact of oilsands expansion and urged the federal and Alberta governments to step up their oversight of these enormous operations.

The strong words of warning came in a decision by a joint federal/provincial panel established to review an application by Shell Canada for expansion of its Jackpine bitumen mining operation about 70 kilometres north of Fort McMurray.

The proposal would increase production by a third to 300,000 barrels a day; tarry oil that needs the increased pipeline capacity that an east-west pipeline would provide if it is to reach refineries.

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What If We Never Run Out of Oil? – by Charles C. Mann (The Atlantic Magazine – May 2013)

http://www.theatlantic.com/

New technology and a little-known energy source suggest that fossil fuels may not be finite. This would be a miracle—and a nightmare.

As the great research ship Chikyu left Shimizu in January to mine the explosive ice beneath the Philippine Sea, chances are good that not one of the scientists aboard realized they might be closing the door on Winston Churchill’s world. Their lack of knowledge is unsurprising; beyond the ranks of petroleum-industry historians, Churchill’s outsize role in the history of energy is insufficiently appreciated.

Winston Leonard Spencer Churchill was appointed First Lord of the Admiralty in 1911. With characteristic vigor and verve, he set about modernizing the Royal Navy, jewel of the empire. The revamped fleet, he proclaimed, should be fueled with oil, rather than coal—a decision that continues to reverberate in the present. Burning a pound of fuel oil produces about twice as much energy as burning a pound of coal. Because of this greater energy density, oil could push ships faster and farther than coal could.

Churchill’s proposal led to emphatic dispute. The United Kingdom had lots of coal but next to no oil. At the time, the United States produced almost two-thirds of the world’s petroleum; Russia produced another fifth. Both were allies of Great Britain. Nonetheless, Whitehall was uneasy about the prospect of the Navy’s falling under the thumb of foreign entities, even if friendly.

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‘Trains or pipelines,’ Doer warns U.S. over Keystone – by Shawn McCarthy (Globe and Mail – July 29, 2013)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

OTTAWA — Canada is telling the U.S administration it will see a sharp increase in cross-border crude-oil shipments by rail if President Barack Obama fails to approve the controversial Keystone XL pipeline.

In a telephone interview from Washington, Canadian Ambassador Gary Doer said oil companies are increasingly turning to trains – and even trucks – as the construction of pipelines has failed to keep up with the boom in North American crude production, and that trend will grow if the President turns down Keystone XL.

“His choice is to have it come down by a pipeline that he approves, or without his approval, it comes down on trains. That’s just the raw common sense of this thing, and we’ve been saying it for two years and we’ve been proven correct,” Mr. Doer said Sunday. “At the end of the day, it’s trains or pipelines.”

The ambassador made his comments to The Globe and Mail after Mr. Obama questioned the much-touted economic benefits of the $7.6-billion project in an interview published in the U.S. on the weekend. The President also suggested Canada could do more to reduce greenhouse-gas emissions to help win approval.

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Journey to the end of the MM&A Railway line – by Les Perreaux (Globe and Mail – July 27, 2013)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

There is a sign marking the start of the Montreal, Maine & Atlantic Railway line south of Montreal, but it’s hardly needed: Simply look for the piles of discarded track and cracked and rotting ties amid the ragweed, out past the point where the Canadian Pacific Railway ends in a well-groomed rail bed.

“I can’t tell you how many times we’ve had to call the city to get them to clean up their tracks,” says Amélie Gervais, the owner of Bistro La Trinquette in Saint-Jean-sur-Richelieu, Que. Her quaint restaurant, with its vast courtyard patio, overlooks the Chambly Canal at the start of the MM&A line.

Railroads still count distances in miles, and Saint-Jean-sur-Richelieu stands at what was once Mile 20 of the mighty Canadian Pacific Railway’s “short line” extension from Montreal to the Atlantic Ocean, which helped knit Canada from Pacific to Atlantic for 105 years.

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Revenge is a bad business plan, Newfoundland – by Konrad Yakabuski (Globe and Mail – July 27, 2013)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

John Crosbie never met a hyperbole he couldn’t top. But the former Tory cabinet minister, whose colourful metaphors kept the House of Commons entertained during his stints in the governments of Joe Clark and Brian Mulroney, was barely exaggerating when he recently called the 1969 Churchill Falls hydro contract between Quebec and Newfoundland “one of the greatest public policy disasters entered into by any province or government in the history of Canada.”

More than four decades later, the deal signed by the legendary (and first) Newfoundland premier Joey Smallwood remains the source of such bitterness on the Rock that it’s a miracle Ottawa hasn’t had to send troops to patrol the still-disputed Quebec-Labrador border. Hydro-Québec has the right to purchase all but a fraction of the 5,400 megawatts from the massive Churchill Falls project in Labrador for next to nothing until 2041.

In 1969, the deal didn’t seem so lopsided. Nuclear power was all the rage and many analysts predicted that Quebec, which had no need for power it could only transport by building hundreds of kilometres of never-attempted transmission lines, would end up losing its shirt.

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Akin to railroads of the 1880s, oil pipelines poised to spur Canadian growth – by Henry Lazenby (MiningWeekly.com – July 26, 2013)

http://www.miningweekly.com/page/americas-home

TORONTO (miningweekly.com) – Canada is expecting a boom in oil production from its prolific Alberta oil sands deposits; however, production from the world’s third-largest proven oil reserves, after Saudi Arabia and Venezuela, is hampered by a lack of sufficient transport to markets, resulting in lower prices for Canadian crude.

In much the same way as the transcontinental railroads of the 1880s acted as economic enablers and opened up the Canadian hinterlands of Manitoba, Saskatchewan and Alberta to settlement and agriculture, so new oil pipelines transporting crude to coastal refineries and markets, and refined petroleum products back inland, are expected to have an enormous economic impact on Canada, driving economic growth.

Canada is desperately seeking alternative oil transport networks to its inadequate rail infrastructure to boost an industry that last year accounted for C$100-billion in exports of oil and natural gas, Al Monaco, the country’s largest pipeline operator Enbridge’s president and CEO, said at a recent Bloomberg Canada Economic Summit, in Toronto.

“It’s a very exciting time to be in the pipeline business. It’s not too often that you get the supply fundamentals and the demand fundamentals lining up extremely well. So, at this point, you’ve got a producer push of volume that wants to get to market. You’ve also got a market pull,” he said.

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TransCanada touts major backing as premiers to discuss west-east pipeline – by Shawn McCarthy and Adrian Morrow (Globe and Mail – July 25, 2013)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

OTTAWA AND NIAGARA-ON-THE-LAKE, ONT. — TransCanada Corp. says it has garnered significant support for its quest to ship Western crude to refineries in the East, as premiers seek consensus on a politically charged cross-country pipeline.

The Calgary-based company told The Globe and Mail it has received major backing from producers who want to ship crude on its Energy East pipeline, and will make an announcement in the coming weeks.

Canada’s premiers will discuss the proposed pipeline – which has been championed by Alberta and New Brunswick – at the Council of the Federation this week in Niagara-on-the-Lake, Ont.

The discussions take place as Quebec Premier Pauline Marois grapples with the fallout from the catastrophic train derailment in Lac-Mégantic, which has raised questions about the safety of transporting oil. Alberta Premier Alison Redford and New Brunswick’s David Alward will highlight the proposal as a nation-building project as the premiers gather for the annual meeting.

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Energy has risks. We learn to manage them – by Kenneth Taylor (Globe and Mail – July 24, 2013)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

Kenneth Taylor retired in 2012 after a 35-year career as an environmental-social planner in the natural gas pipeline industry. He lives in Calgary.

The recent tragic events in Lac-Mégantic, Que., have brought a well-deserved sharper focus to the public discourse on the risks of transporting and handling the fuels that power our everyday world. After several years in which pipeline transport of oil has been the fashionable target for those who are inclined to protest elements of our modern world, railways have now moved into the crosshairs. This gives us an opportunity to reconsider how our society assesses and manages the relative risks of transporting and handling energy.

Each form of the energy we rely on has inherent characteristics that result in risks we must manage for our everyday safety. After long periods of usage, society learns what these risks are and, considering the consequences, develops strict codes of safe use. For example, electricity has its dangers, but in its household power or battery forms, it works beside nearly every one of us virtually 24 hours a day.

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Ottawa gives railways new guidelines for hazardous goods in wake of Lac-Mégantic tragedy – by Shawn McCarthy and Jacquie McNish (Globe and Mail – July 24, 2013)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

OTTAWA AND TORONTO — The federal government has issued new safety guidelines for railways carrying hazardous goods after being urged to do so by the Transportation Safety Board in the wake of the fatal derailment in Lac-Mégantic, Que.

Transport Canada announced an “emergency directive” Tuesday that requires rail operators to ensure all trains loaded with hazardous goods are run by at least two qualified people. It also said no such trains can be left unattended on main tracks and tightened rules covering the use of handbrakes and other equipment that would prevent an unattended train from moving.

The rules come as the Conservative majority on a House of Commons committee rejected an NDP effort to begin studying rail safety in Canada, with the government side arguing that the committee should wait for more information on what caused the accident and that a parliamentary study now would draw critical resources away from the investigation.

The government acted just four days after a call for new regulations by the Transportation Safety Board, which is investigating the deadly accident.

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Rising China domestic oil output hurts import demand – by Clyde Russell (Reuters U.S. – July 22, 2013)

http://www.reuters.com/

(Reuters) – One of the clouds hanging over the global oil demand outlook is what’s happening to Chinese consumption, with crude imports falling in the first half of 2013.

The 1.4 percent drop in imports contrasts with modest growth in implied oil demand. Such differences are often ascribed to changes in commercial inventories, which are difficult to assess accurately given China doesn’t report stockpile levels. However, another factor has come to the fore, with domestic oil production rising a fairly strong 4.3 percent over the first six months of the year from the same period in 2012.

Domestic output was 103.615 million tonnes in the first half, according to figures released on July 19 by the National Bureau of Statistics. This equates to about 4.179 million barrels per day (bpd), or about 172,000 bpd more than in the first half of last year.

This is quite a substantial jump from the figures for the first five months of the year, which showed domestic oil output rising by a more modest 2.7 percent, or 62,000 bpd. There is a risk the domestic oil figures are subject to statistical noise from month to month, however, there does seem to be a fairly clear trend of rising production in China.

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