Oil Sands

Fracking and Canada’s Oil Sands

Syncrude Mildred Lake Plant. “This is a picture of Syncrude’s base mine. The yellow structures are the bases of pyramids made of sulphur – it is not economical for Syncrude to sell the sulphur so it stockpiles it instead. Behind that is the tailings pond, held in by what is recognized as the largest dam in the world. The extraction plant is just to the right of this photograph and most of the mine is to the left.” By TastyCakes is the photographer, Jamitzky subsequently equalized the colour. (Transferred from en.wikipedia to Commons.) [Public domain], via Wikimedia Commons
In 2003 I wrote an article, “Canada’s New Role in North American Energy Security,” which examined Canada’s growing importance to U.S. energy security. This paper was written in the context of 9/11, and looking back I wish that I had talked much more about the environmental costs of this resource. In the years since, so much has changed. Canada’s oil has become a stranded resource. Indeed, Alberta is so unhappy with the opposition to an oil pipeline by its provincial neighbor, British Columbia, that it briefly banned the sale of B.C. wine.

The fundamental issue, however, for the oil sands is not the pipeline policy of BC, but rather the underlying economics. The fracking revolution has remade the finances of oil. It’s true that Canada remains the top oil exporter to the United States. Still, the financial value of its exports fell 47.5% between 2016 and 2017 (this is the dollar value, not the number of barrels shipped). Indeed, the drops in the value of petroleum sales were even larger for other major oil suppliers to the United States. Venezuela, the third largest oil exporter to the United States, saw it’s sales fall a staggering 71.8% during the same period, while Mexico’s fell 79.3%, according the website “worldstopexports.” The truth is that focusing on pipelines to the Pacific is rather like improving buggies to compete with Ford as the auto industry developed, which no less true for being a meme.

The Tyee is an online newspaper with good coverage of West Coast politics and society in Canada from a left-wing perspective. Mitchell Anderson has a wonderful article titled “Only Fantasies, Desperation and Wishful Thinking Keep Pipeline Plans Alive.” While Anderson’s article reflects the paper’s ideological leanings, the overall analysis shows the folly of trying to rely on this resource, at a time that global energy markets are undergoing a massive change, and coastal regions are trying to plan for sea level rise. With the rise of electric cars, the falling costs of utility scale batteries, and the growth of fracking, the energy landscape has change dramatically from 2003. No ban on BC wine is going to undo the dramatic changes in U.S. oil demand, and the United States will remain Canada’s main energy market internationally. While Albertans must rethink and diversify, they are only one player amongst many, which are struggling to adapt to new global realities.

Shawn Smallman, 2018

Fort McMurray and the Canadian Oil Sands

Years ago I toured the Fort McKay and an Oil Sands production facility. I was struck by the sheer scale of all aspects of the facility: the trucks the size of a small house; the tailings of sulphur, which formed a bright yellow block the size of an apartment building, and the pit, which seemed to stretch to the horizon. The oil company took my group to view some reclaimed tailings, which had been replanted with vegetation, and now had a small band of buffalo. If I remember correctly, the buffalo were cared for by the local aboriginal people.

What the company’s tour guide did not discuss was the issue of water, and the huge pools of contaminated water that no technology can currently clean. While most attention with the oil sands has focused on the issue of carbon, the issue of local environmental destruction is also pressing, and the impact that this industrial scale development has on regional communities. Amongst these communities are the indigenous peoples of the region. Much as is the case with fracking from North Dakota to Texas, how people view environmental issues is often influenced by their economic interests. For this reasons, many aboriginal communities have been divided not only by the Oil Sands, but also by issues of pipelines or mining.

I am teaching an online “Introduction to International Studies” course this quarter, and the most popular course materials have not been articles, podcasts or videos, but rather storyboards. Students love the interactive aspect of these media, which are often also beautiful. The Guardian has an excellent story board on the tar sands, which examines both the environmental and human questions raised by this development, which I highly recommend.

Shawn Smallman, Portland State University.

North America’s Energy Boom

"Panorama Scene Of Refinery Industry Plant" by khunaspix
“Panorama Scene Of Refinery Industry Plant” by khunaspix

I’ve blogged before about Canada’s oil sands, and the political battles and environmental issues that they have spawned. What is clear, however, is that despite the environmental and safety issues that new energy supplies raise in North America, economic changes are reshaping the energy industry with stunning speed. While the Canadian Oil Sands are the main focus of attention, it may be that discoveries of massive supplies of natural gas near Ft. St. John in northern British Columbia are also of global significance. As this article by Brent Jang in the Globe and Mail describes, it is enough supply to support a century’s worth of production. For Canada’s native peoples, in particular the Gitga’at people, potential exports are both a danger and an opportunity. But the discovery has implications that stretch far beyond the region. For Japan this find is so large that it has strategic implications as the nation turns to liquified natural gas (LNG) to replace the electricity production lost with Fukushima. Canada is a logical energy partner, and a large supply of Canadian natural gas will increase the competition for the Japanese market, which should make this energy transition easier. …

Canada’s Idle No More Movement

This summer I will be giving a lecture at the University of Trier in Germany about Canada’s Idle No More movement, an ongoing protest movement that was begun by four women in Saskatchewan. Idle No More represents a grass-roots initiative, without a clear hierarchy, which fights for indigenous rights by popular protests, such as flash mobs and circle drumming in public places. The movement is so technically savvy that there supporters have even created an i-phone app, to locate protests near you. While the movement encompasses diverse demands, at the core the protesters are concerned about issues of indigenous sovereignty, treaty rights, and the environment.

Gathering of the Nations courtesy of EA at freedigitalphotos.net
Gathering of the Nations courtesy of EA at freedigitalphotos.net

Canada’s Northern Gateway Pipeline

An article by Edward Welsch in the Wall Street Journal today today talks about upcoming

Photo “Two Oils of Alberta” by Rosemary Ratcliff, courtesy of www.freedigitalphotos.net

hearings regarding Enbridge’s Northern Gateway pipeline, which would bring oil from Alberta to Kitimat on the British Columbia coast. As I discussed in an earlier blog post, Canada views this pipeline as an alternative to the Keystone XL pipeline, which would move oil to refineries on the U.S. Gulf Coast. Legally, the Obama administration must make a decision on this Keystone XL pipeline by the end of February. Because production from the Oil Sands is increasing so rapidly, Canada badly needs to find an additional means to bring petroleum to market. From the perspective of the Canadian government, therefore, the Northern Gateway pipeline allows it to hedge its bets, by allowing to sell oil to the Asian market, in particular China. Even if President Obama’s administration approves the Keystone XL, the Canadian government badly wants this other pipeline to the Pacific to increase its market options. …

Canada’s Oil Sands, Pipelines and Atomic Bombs

I am a Canadian, born and raised in Southern Ontario. I founded a Canadian Studies program at my university. I was happy to see our first student recently graduate with a Canadian Studies certificate, and I am currently writing a book on a Canadian topic. So, it has been very painful for me to watch Canada’s recent foreign policy decisions related to global warming and the Oil Sands, particularly this last week in South Africa. My frustration has been magnified by the fact that I myself wrote an article about the Oil Sands years ago that -in retrospect- failed to examine the environmental costs of this resource.

Photo by puttsk at freedigitalphotos.net

Recent technical breakthroughs  have led to a current giddy sense of optimism about energy production, and the promise that the Western hemisphere rather than the Middle East may be the future of oil and gas production. As Daniel Yergin noted in a recent newspaper column: “U.S. petroleum imports, on a net basis, reached their peak -60%- of domestic consumption in 2005. Since then, they have been going in the other direction. They are now down to 46%.” Yergin pointed to the technological changes that made this possible: “The reason is the sudden appearance of `tight oil,’ which is extracted from dense rocks.” The spread of shale oil production has reversed the decline of domestic oil production. But there are costs to this development, and choices to be made. For a long time, the Canadian government has said that it would meet the targets set by the Kyoto Protocol, but that it would do so without restricting Oil Sands development. But in Durban, South Africa last week Canada set this position aside for an all-out attack on Kyoto. …

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