Such A Deal: New Pipelines for Tar Sands Oil Bad for the Environment And Will Raise Gas Prices

Sep 4, 2013 by  | Bio |  Leave a Comment

Anyone who follows CLF’s work knows about plans being pushed to move oil derived from tar sands in Canada through pipelines that would cut across Vermont, New Hampshire and Maine.  The purpose of the these pipelines is simple and clear: to allow this oil to reach the sea and foreign markets that can only be reached by oil tanker.

It is easy to understand why the Canadian oil industry, and the multi-national petroleum companies with big Canadian investments, want to move the oil extracted from the Tar Sands of Western Canada out to the larger world markets: doing so will mean they make A LOT of money.  The Canadian petroleum industry has explained this for us all very helpfully in an ad found on page 2 of the June-July 2013 issue of the Canadian Public Policy and Politics magazine with the zippy name of “Policy” that we reprint here.

The ad confirms the tar-sands-oilpurpose of the wave of pipeline building being pushed by the Canadian petroleum industry (and ExxonMobil and Koch Industries, the owners of leading Canadian companies like Imperial Oil/Esso and Flint Hills Resources): to raise the price of Canadian oil up to the levels found on many global markets.  As the ad shows, using little prices tags, the price of oil in the North American market hovers around $85 a barrel at times when the same barrel of oil sells for $110 elsewhere in the world. If the producers, refiners and sellers of that oil have access to world markets they can demand that North American customers pay them the higher price if they want to buy this oil.  This reality is especially stark when you look at the fact that oil refining companies with operations in the United States just don’t care if these pipelines get built – they are fully occupied with oil extracted right here at home.  It is just Canadian companies (and the multi-national companies like ExxonMobil and Koch who own Canadian operations) who profit from the push for these pipelines.

So we know who wins if new pipelines carry Canadian oil to reach global markets: the petroleum companies who reap the higher prices found beyond the United States and Canada. But who loses?

The answer to that requires us to think both about the short-term in which we all live our day-to-day lives and the longer-term world in which future generations will have to live.

When we think about immediate and short-term concerns for our families and businesses it doesn’t get any more real than gasoline prices.

Supporters of building pipelines to move Canadian oil to market generally and the highest profile project, the Keystone XL pipeline that would move oil through the middle of the United States from Canada to the Gulf Coast, invoke gas prices as a reason for taking that step, at least implying that the new pipelines will drive down gas prices.

However,  it is well documented in a number of reports and studies that Midwestern drivers would see gasoline prices rise on the order of 42 cents a gallon if that pipeline is built. And this is not surprising – if the oil used to make gasoline is being sold (and bought) at higher prices then gasoline prices will rise.

So in the short term – the losers in this equation? Anyone who buys gasoline or relies upon goods or services that rely on gasoline or diesel fuel that are transported by car, truck, ship or airplane – in short all of us.

And that doesn’t even get into the critical longer term issue: that tapping into the tar sands oil, bringing them to market and burning them would be a large step towards the devastating climate disaster that is unfolding around us and that we need to stop.

There are those who disagree with this assessment. Some politicians argue that tar sands oil from Canada is needed to free ourselves from dependence on oil imported from volatile (and often hostile) nations overseas.  They suggest that these pipelines will simply bring it that oil to markets we, here in the U.S., draw upon, oddly ignoring the stated purpose of the pipelines to bring the oil to higher-priced offshore markets.

And there are thoughtful and detailed analyses that disagree with the climate argument about this oil.  This analysis argues that if the tar sands oil is not brought to market that it will simply be replaced by slightly-easier-to-access Venezuelan oil with a very similar carbon footprint.

That climate impact analysis, and the political argument for building pipelines to tap into tar sands oil, however ignore one important, essential and difficult option: use less oil instead. The advent of electric vehicles, smarter urban development and increases in transit use all converge to show us a way forward and off of oil. The increase in fuel economy standards, a process that is well underway, is a step on that path.

Getting off oil will not be easy.  As the social critic, songwriter and bicycle enthusiast David Byrne has noted, “From the age of the Dinosaurs, cars have run on gasoline.”  Changing something so fundamental will be hard but it is what we need to do; that is what in all of our interests, not laying new pipelines to bring ancient oil derived from the cracking and boiling of tar sands to foreign markets where it will be burned and released into the atmosphere.

 

 

Smooth Sailing with Clean Diesel

Sep 19, 2012 by  | Bio |  Leave a Comment

In 2011, CLF Ventures, the strategy-consulting arm of CLF, received a grant from the EPA to help two New England fishing/whale watching vessels replace the aging, inefficient engines on their vessels with cleaner-burning, more efficient four-stroke diesel engines. In this video, Captain Brad Cook of the Atlantic Queen II and Captain Chris Charos of Captain’s Fishing Parties reveal how the EPA grant and CLF Ventures enabled them to update their vessels’ technology, reducing emissions and substantially cutting their fuel use:

The EPA’s National Clean Diesel Funding Assistance program is designed to reduce air pollution and exposure to diesel fumes by covering up to 75% of the cost of an engine upgrade or repower. Replacing an outdated engine with the clean-burning technology used by Captain Brad and Captain Chris reduces asthma-causing particulate matter emissions by 63 percent and smog-producing nitrogen oxide emissions by 40 percent.

The program also cuts down on greenhouse gas emissions by improving efficiency and reducing fuel use by up to 14 percent. Fuel use is a serious concern for the fishing industry. A 2005 report published in AMBIO revealed that in 2000, the industry consumed about 13 million gallons of fuel, or 1.2 percent of global consumption. If the fishing industry were a country, it would be the world’s 18th-largest consumer of oil—on par with the Netherlands. Fishing is also one of the only industry sectors to consistently become less fuel-efficient in recent years. With declining stocks sending fishermen farther from shore, this problem will only become more severe without significant investments and improvements in technology. Programs like EPA’s Diesel Emissions Reduction Program play an important role in greening the fishing fleet and helping to make fishing more sustainable.

The program isn’t just good for the environment; it’s also good for fishermen. A more efficient engine can save a fisherman 9,500 gallons of fuel per year, cutting fuel costs and increasing profit margins. Crew aboard these vessels reduce their exposure to harmful diesel fumes, which were recently classified as carcinogenic by the World Health Organization and placed in the same category as deadly toxins like asbestos and arsenic.  Consumers asking for sustainable options will appreciate the reductions in emissions and fuel use, too, and recreational fishermen and whale watchers aboard vessels with new engines can enjoy a quieter, cleaner ride.

Still, new engines can only go so far in cleaning up the fishing fleet. The industry is built on technology that made sense decades ago, when fuel was cheap, fish were more plentiful close to shore, and consumers weren’t demanding sustainable seafood choices. Down the line, greening the fleet will mean rebuilding it from the water up and introducing lighter, safer vessels that inherently use less fuel.

Governor LePage: Why isn’t saving money on gas a good idea?

Jul 1, 2011 by  | Bio |  Leave a Comment

Photo credit: S1acker, flickr

As you hit the road this holiday weekend, you will be joining millions of others in filling up your gas tank and will watch in consternation as your paycheck pours into your tank. The sad thing is, you are probably driving a vehicle that gets far less than 45 mpg, so you might have to fill that tank more than once to get back home.

These days, Americans spend on average $369 dollars a month on gas. By contrast, the average monthly gas bill in April 2009 was $201. That’s a lot less money that you have to go towards dining out and hotel rooms this holiday weekend. The good news is that the EPA and DOT are currently contemplating raising fuel economy requirements to between 47 to 62 mpg starting with all 2017 model vehicles. That means  getting twice or even three times as far without having to fill up.

You would think that states buckling under the weak economy would rejoice at any effort that would give folks more money to spend. Unfortunately, Governor LePage seems to disagree.

In response to EPA and DOT’s effort, LePage joined a small handful of other governors this week in a signing a letter to Secretary of Transportation Ray LaHood and EPA Administrator Lisa Jackson cautioning them to be  “sensible” about raising fuel economy standards and claiming that “overreaching regulations can be a cost burden on individuals, families and businesses in our state” because the technology used for fuel-efficient vehicles makes them more expensive for consumers.

In other words, we haven’t learned any lessons, we couldn’t care less if our constituents have to spend half their paycheck at the pump and we have no problem with our addiction to foreign oil.

Fuel efficiency standards for 2012-2016 were set in 2007 at 35 mpg. When those standards were about to go into place, there was a remarkably similar wave of national hand-wringing. People were concerned that the new standards would have a negative effect on the auto industry and Americans’ perceived need to have large, affordable vehicles. Yet, the sky didn’t fall. Detroit had been teetering on the brink of survival not because of MPG standards but due to their failure to stay ahead of the innovation curve, like Toyota, in creating fuel efficient vehicles. The success of the Ford Focus speaks for itself.

Opponents to increasing the MPG standards claim that the government needs to stay out of this — market demand will dictate higher fuel efficiency.  But the data doesn’t bear that assertion out.  In 2002, the National Academy of Sciences issued a report on the effects of the CAFE standard. The report concluded that in the absence of fuel economy regulations, motor vehicle fuel consumption would have been approximately 14 percent higher than it actually was in 2002.

Americans are fully capable of stepping up to the plate and developing the affordable technology necessary to bring the higher standard to fruition. They’ve done it before and they can do it again. And here’s the thing– a whopping 78 percent of Americans think they should. According to a recent poll by the Mellman Group, the majority of Americans support efforts by the auto industry to reduce CO2 emissions. And if that also means saving money on gas, then Maine should be embracing the new standards and not trying to slow them down.