Friday, January 12, 2007

Will Ahhnold Green The Oil Sands?

New laws in California demand that petroleum sold in the state:

...reduce the amount of greenhouse gases emitted during its production and final use by at least 10 per cent by 2020.

Since so much energy goes into producing gas from the oil sands (20% higher than normal petroleum), it will be difficult to sell to the California market after this new legislation goes into effect.

And things will get worse if California-type laws spread to states which receive a larger proportion of Alberta petroleum:

"What it really suggests is that it will behoove the Canadian oil industry to think about a carbon mitigation strategy," said Hal Harvey, environment program director for the California-based Hewlett Foundation, which helped pay for the research that led to the new directive.

Funny that, while progress on the domestic front has essentially been thwarted by an Alberta-based Federal government, it may be forced by the actions of our largest trading partner to the South. Bully for Mr. Schwarzenegger, who is now my favorite ass-grabber. Feel free to come up to Canada anytime and chase our women around (Belinda is apparently free these days).

14 comments:

OttawaCon said...

The weakness in the recent fuel standard announcement is that there is nothing close to a system to track where fuel actually comes from, and no ready way to implement one.

The other problem with this is that even if one was developed, the net effect would be Californians pay a small transaction cost premium to ensure that all of their gas comes from non-oil sands, while the oil sands product gets routed to other markets - almost no environmental impact at all. California just might be big enough to preclude that extreme, but the basic point stands.
It is a problem they have recognized in their GHG regulation of the electrical power plant, but don't have a solution for.

bigcitylib said...

But this is why you have to hope that these kinds of laws spread to other states.

Also, since the stuff is piped, I would have thought it would be fairly easy to tell where it is coming from. For instance, it's clearly a fact that not much Alberta oil actually makes it to California.

Anonymous said...

If the 'Terminator' wants to make his state and country more dependent on the sheiks and mullahs then so be it. A new pipeline is in the planning stage which will move oil sands output to the west coast from where it can be sold to China. So, in the words of a much better actor Arnie, "Go ahead punk, make my day".

bigcitylib said...

All costs money to build, anon. D'you think at some point it might not occur to the oil companies that its in their economic best interests to clean up their act? Or do they pollute because they wanna pollute?

Anonymous said...

"Enbridge Gateway Pipelines is initiating significant environmental, engineering and land field work to support the proposed development of two new pipelines as part of the Enbridge Gateway Project.

The proposed petroleum export pipeline would transport oil from Strathcona County, Alberta (west of Bruderheim) to a new marine terminal located at Kitimat, British Columbia, where it would be shipped by tanker to China, other Asia-Pacific markets, and California." - Enbridge

Did it not occur to you BSL that it is smart business to diversify markets for a host of reasons including capricious ignorant politicians.

Taliban Jack says said...

OOPSIE !!

Hargrove slams Layton for stand on emissions

NDP's tough talk could cost auto workers jobs, CAW head says
January 12, 2007
bruce campion-smith Ottawa bureau

VANCOUVER–NDP Leader Jack Layton's call for tough emissions standards for new vehicles has hit a speed bump, with Canada's biggest auto union warning the move could cost the struggling auto sector "thousands of jobs."

Canadian Auto Workers president Buzz Hargrove says he was "taken aback" by Layton's comments and rebuked the federal leader for not consulting with union leaders before making his demand for the new standards.

"It would have been helpful for you to have first consulted with the CAW on this important question before making your statement," Hargrove wrote in a letter to Layton released yesterday.

"If this issue is not handled delicately and thoughtfully, we could see thousands of auto workers' jobs destroyed," Hargrove said.

On Monday, Layton said new emissions standards would be among the tougher environmental rules he was demanding as a condition of his party's support of the Conservatives in the minority Parliament.

"I'm worried that Jack has been so tough on this issue that there's going to be incredible damage done to the auto industry if he convinces the Tories that's the only way the government is going to survive," Hargrove said.

In July, 2003, Hargrove joined with Layton and Greenpeace Canada to endorse a drive to more fuel-efficient cars.

But since then, the auto industry has been hit by restructuring, plant closings and job losses that now make such aggressive environmental targets risky, Hargrove said in an interview. "It makes no sense in the (business) environment we're in today."

Yesterday, Layton defended his strategy against Hargrove's charges it could mean unemployment for auto workers, a traditional NDP constituency.

Layton warned that without a shift to a home-grown "green" car industry, Canada's auto plants will lose business and jobs to offshore plants.

"We've got to start to change our direction, otherwise our industry is going to get into deeper and deeper trouble and the efficient cars that people are looking for will be coming from China," said Layton, who was in Vancouver for a caucus retreat. "That's not a good future for our industry."

The NDP has advocated financial assistance to the auto industry to fund research toward becoming a leader in making efficient cars. And he's also pitched cash incentives for drivers who buy efficient vehicles.

"That's exactly what we're proposing today," said Layton, who spoke with Hargrove Wednesday night. "We're certainly happy to meet and work with him on this."

But Hargrove rebutted the NDP plan with another strategy – cash incentives from the industry and government to get old gas guzzlers off the road. In the last election campaign, Hargrove endorsed the idea of people voting for Liberals in ridings where the NDP had little chance of winning to keep the Tories from gaining power. He was subsequently suspended from the NDP. Then, in August, the CAW's convention voted to sever ties with the NDP.

bigcitylib said...

having their ties to the CAW suspended is probably the best thing that happened to the NDP.

(Although I like Buzz's idea re gas guzzlers).

Anonymous said...

The Buzzard is caught with his pants down again. Always the champion of socialism and political correctness, well, until they conflict with his union role.

Deno said...
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Deno said...
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Deno said...
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bigcitylib said...

Deno, nice table, but at the moment California gets very little of its gas from Alberta, as I mention in the post and as is mentioned in the origonal article.

Deno said...

The top eight sources of Uncle Sam's crude oil imports for October 2006 were:

Canada (1.704 MILLION barrels per DAY--MBPD)
Mexico (1.481 MBPD)
Saudi Arabia (1.322 MBPD)
Venezuela (1.125 MBPD)
Nigeria (1.049 MBPD)
Angola (0.506 MBPD)
Iraq (0.505 MBPD)
Algeria (0.449 MBPD).

Uncle Sam's top eight sources of total petroleum imports for October 2006 were:

Canada (2.144 MILLION barrels per DAY--MBPD)
Mexico (1.646 MBPD)
Saudi Arabia (1.382 MBPD)
Venezuela (1.354 MBPD)
Nigeria (1.088 MBPD)
Algeria (0.813 MBPD)
Angola (0.536 MBPD)
Iraq (0.505 MBPD).

These figures for the October 2006 imports were made available by the Energy Information Agency of the US Department of Energy on December 27, 2006.

In December of 2006, a NEW ranking of proven oil reserves by country of origin was released. These are as follows:

Saudi Arabia #1 with 264.3 BILLION BARRELS (BB)
Canada #2 with 178.8 BB
Iran #3 with 132.5 BB
Iraq #4 with 115.0 BB
Kuwait #5 with 101.5 BB
United Arab Emirates #6 with 97.8 BB
Venezuela #7 with 79.7 BB
Russia #8 with 60.0 BB
Libya #9 with 39.1 BB
Nigeria #10 with 35.9 BB
United States #11 with 21.4 BB.

The US is hooked on Alberta oil. All of California's green laws will go out the window the day the average Californian can't drive his car because they have no gas.

If the US stop buying Alberta oil, where will they get the oil to replace the oil from their # 1 importer?

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