{"id":35714,"date":"2015-02-25T10:52:59","date_gmt":"2015-02-25T17:52:59","guid":{"rendered":"http:\/\/beaconenergynews.ca\/?p=964"},"modified":"2017-12-24T20:48:42","modified_gmt":"2017-12-24T20:48:42","slug":"obama-arguments-against-keystone-xl-pipeline-are-flawed","status":"publish","type":"post","link":"https:\/\/energi.media\/markham-on-energy\/obama-arguments-against-keystone-xl-pipeline-are-flawed\/","title":{"rendered":"Obama arguments against Keystone Xl pipeline are flawed"},"content":{"rendered":"<h2>If Canadian producers keep investing in new technology, Keystone XL could lower GHG intensity of heavy crudes refined on Gulf Coast<\/h2>\n<p>President Barack Obama vetoed a Congressional\u00a0bill supporting the\u00a0Keystone XL pipeline Tuesday, falling back on his oft-repeated arguments the TransCanada project is bad for the environment. But does\u00a0his argument stand up to scrutiny?<\/p>\n<figure id=\"attachment_827\" aria-describedby=\"caption-attachment-827\" style=\"width: 257px\" class=\"wp-caption alignright\"><a href=\"http:\/\/beaconenergynews.ca\/wp-content\/uploads\/2015\/02\/Barack-Obama.png\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-827 size-medium\" src=\"http:\/\/beaconenergynews.ca\/wp-content\/uploads\/2015\/02\/Barack-Obama-257x300.png\" alt=\"Keystone XL\" width=\"257\" height=\"300\" \/><\/a><figcaption id=\"caption-attachment-827\" class=\"wp-caption-text\">American President Barack Obama.<\/figcaption><\/figure>\n<p>Each side in the debate can point to a heavyweight American government ally to support their position. President Obama is buttressed by the Environmental Protection Agency, which in a <span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"http:\/\/www.epa.gov\/compliance\/nepa\/20140032.pdf\">Feb. 2 letter<\/a>\u00a0<\/span>criticized Keystone XL on variety of issues, including higher incremental greenhouse gas emissions than average crude refined in the USA. But the <span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"http:\/\/keystonepipeline-xl.state.gov\/finalseis\/\">State Dept. argues<\/a><\/span> that Canadian oil sands crude will find its way to market\u00a0with or without Keystone XL, including by rail \u2013 which costs more, creates higher\u00a0GHG emissions, and is less safe.<\/p>\n<p>There are two reasons why State is right and the EPA is wrong.<\/p>\n<p>One, the destination for oil sands crude is an important part of the Keystone XL story.<\/p>\n<p><span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"http:\/\/beaconenergynews.ca\/energy-news\/keystone-xl-pipeline-all-crude-stays-in-usa-70-of-gas-consumed-there\/\">Market analysts IHS<\/a> <\/span>argue that 2.7 million bbls\/day of refining capacity on the Gulf Coast has been optimized for heavy crude oil. Venezuela has long been a heavy crude supplier to those refineries, but is now shifting exports to the Chinese market. Alberta oil sands crude is filling the supply gap left by\u00a0Venezuela.<\/p>\n<p>And that means comparing oil sands GHG\u00a0intensity to conventional crude, as the EPA does, is misleading.\u00a0The more accurate comparison is to the Venezuela crude it is displacing, which has a similar GHG\u00a0intensity.<\/p>\n<figure id=\"attachment_825\" aria-describedby=\"caption-attachment-825\" style=\"width: 300px\" class=\"wp-caption alignleft\"><a href=\"http:\/\/beaconenergynews.ca\/wp-content\/uploads\/2015\/02\/Russ-Girling.png\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-825 size-medium\" src=\"http:\/\/beaconenergynews.ca\/wp-content\/uploads\/2015\/02\/Russ-Girling-300x240.png\" alt=\"Keystone XL\" width=\"300\" height=\"240\" \/><\/a><figcaption id=\"caption-attachment-825\" class=\"wp-caption-text\">TransCanada CEO Russ Girling.<\/figcaption><\/figure>\n<p>&nbsp;<\/p>\n<p>The prospects are good that the GHG\u00a0intensity of Alberta oil sands crude will shrink over time. The Canadian Assoc. of Petroleum Producers claims oil sands crude is nine per cent higher on a well-to-wheels basis, while the EPA claims it is 17 per cent.<\/p>\n<p>But there are new oil sands plants coming on stream in Canada whose product has the same or slightly higher GHG intensity compared to conventional crude oil. Imperial Oil\u2019s Kearl Plant, for instance, uses a patented\u00a0Paraffinic Froth Treatment Process, which eliminates the need for an upgrader and produces a higher grade of crude oil.<\/p>\n<p class=\"p1\"><span class=\"s1\">\u201cWith the addition of electrical co-generation, a barrel of Kearl bitumen will have about the same greenhouse-gas footprint as other oils refined in North America,\u201d said Pius Rolheiser, Imperial spokesperson.<\/span><\/p>\n<p class=\"p1\">Long-term, the United States is far better off to get its heavy crude from Canada, where producers are investing in leading-edge technology to reduce GHG intensity of oil sands crude.<\/p>\n<figure id=\"attachment_966\" aria-describedby=\"caption-attachment-966\" style=\"width: 262px\" class=\"wp-caption alignright\"><a href=\"http:\/\/beaconenergynews.ca\/wp-content\/uploads\/2015\/02\/Markham.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-966 size-medium\" src=\"http:\/\/beaconenergynews.ca\/wp-content\/uploads\/2015\/02\/Markham-262x300.jpg\" alt=\"Keystone XL\" width=\"262\" height=\"300\" \/><\/a><figcaption id=\"caption-attachment-966\" class=\"wp-caption-text\">American Energy News publisher and energy reporter Markham Hislop.<\/figcaption><\/figure>\n<p>&nbsp;<\/p>\n<p class=\"p1\">Two, President Obama is mistaken if he believes oil sands crude delivered by Keystone XL will simply be exported to other countries, leaving American with all the risk of spills and little of the economic benefit.<\/p>\n<p class=\"p1\">As the IHS report made clear, the biggest market for heavy crudes is the Gulf Oil refineries and they need Canadian feedstock.<\/p>\n<p class=\"p1\">\u201cThe reality is that the U.S. Gulf Coast is the world\u2019s largest single refining market for heavy crudes such as oil sands, making it unlikely these barrels would be exported offshore,\u201d\u00a0said Aaron Brady, senior director for IHS Energy.<\/p>\n<p class=\"p1\">\u201cAnd, the overwhelming majority of refined products produced in the Gulf are consumed in the United States, regardless of the crude source.\u201d<\/p>\n<p class=\"p1\">IHS estimates that 70 per cent of the gasoline refined from oil sands crude would remain in the American market.<\/p>\n<p class=\"p1\">President Obama\u2019s argument against Keystone XL is flat out wrong-headed. The pipeline would not increase GHG emissions compared to the crudes Gulf Coast refineries currently use\u00a0and if Canadian producers continue to reduce the GHG footprint of their crude oils, could actually lower GHG intensity compared to Latin America heavy oil. The oil sands crude would also stay in America and most of the refined product would be consumed there.<\/p>\n<p class=\"p1\">The President should stare down his eco-activist allies \u2013 who thus far haven\u2019t prevented one drop of oil sands crude from reaching American markets \u2013 and do the right thing, approve Keystone XL.<\/p>\n<p>The post <a href=\"http:\/\/beaconenergynews.ca\/markham\/obama-arguments-against-keystone-xl-pipeline-are-flawed\/\" rel=\"nofollow\">Obama arguments against Keystone Xl pipeline are flawed<\/a> appeared first on <a href=\"http:\/\/beaconenergynews.ca\/\" rel=\"nofollow\">Beacon Energy News<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<div class=\"mh-excerpt\"><p>If Canadian producers keep investing in new technology, Keystone XL could lower GHG intensity of heavy crudes refined on Gulf Coast President Barack Obama vetoed a Congressional&nbsp;bill supporting the&nbsp;Keystone XL pipeline Tuesday, falling back on his oft-repeated arguments the TransCanada project is bad for the environment. But does&nbsp;his argument stand up to scrutiny? Each side [&hellip;]<\/p>\n<p>The post <a rel=\"nofollow\" href=\"http:\/\/beaconenergynews.ca\/markham\/obama-arguments-against-keystone-xl-pipeline-are-flawed\/\">Obama arguments against Keystone Xl pipeline are flawed<\/a> appeared first on <a rel=\"nofollow\" href=\"http:\/\/beaconenergynews.ca\/\">Beacon Energy News<\/a>.<\/p>\n<p> <a class=\"mh-excerpt-more\" href=\"https:\/\/energi.media\/markham-on-energy\/obama-arguments-against-keystone-xl-pipeline-are-flawed\/\" title=\"Obama arguments against Keystone Xl pipeline are flawed\">[Read more]<\/a><\/p>\n<\/div>","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"give_campaign_id":0,"footnotes":""},"categories":[4],"tags":[12,13,14,15,16,17],"class_list":{"0":"post-35714","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-markham-on-energy","7":"tag-barack-obama","8":"tag-canada","9":"tag-featured","10":"tag-keystone-xl-pipeline","11":"tag-oil-and-gas","12":"tag-texas"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - 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