U.S. report downplays oilsands impact
WASHINGTON — A U.S. government draft report on the environmental effect of the Keystone XL pipeline says the project’s impact on the growth of the oilsands in Alberta will not be significant — a finding that contradicts environmentalists who oppose the project.
The report, released Friday by the U.S. State Department, states although the growth of greenhouse gases both in Canada and in the United States due to the oilsands and the pipeline is a “very important topic,” the “approval or denial of the proposed project is unlikely to have a substantial impact on the rate of development in the oilsands, or on the amount of heavy crude oil refined in the Gulf Coast area.”
The 1,800-kilometre pipeline would transport 830,000 barrels of heavy oil from the oilsands and from shale oilfields in Montana and North Dakota to Gulf Coast heavy oil refineries in Texas. If the Keystone project is denied but other pipelines go forward, the impact on oilsands production would be insignificant, the report states. But “if all pipeline capacity were restricted, oilsands production could decrease by approximately two to four per cent by 2030.”
A situation where none of the proposed pipelines were built would cause a reduction in oilsands’ greenhouse gas emissions of up to 5.3 million tonnes. This reduction would be insignificant if authorities denied only the Keystone project.
A principal argument made by environmental groups opposed to the pipeline is that it will allow the expansion of Alberta’s oilsands. The report appears to put this argument to rest. Environmentalists also argue that oilsands create at least 20 per cent more greenhouse gases than conventional oil and that the oilsands’ open-pit mining is destroying the boreal forest, which acts as an important carbon sink.
U.S. Assistant Secretary of State Kerri-Ann Jones said in a conference call that the carbon footprint created by the oilsands in the U.S. is a “very serious concern.” But she partially downplayed this concern by noting that the report finds that oilsands bitumen will be used simply to replace present U.S. supplies.
The pipeline itself will emit substantial amounts of greenhouse gases. Construction will emit about 240,423 tonnes, the report says. The pipeline’s operations will produce about 3.19 million tonnes of greenhouse gases a year due to electrical generation to power the pump stations. These annual emissions are the equivalent of about 626,000 passenger vehicles operating for one year.
The report also notes that refining of the oilsands bitumen in the U.S. will produce about 17 per cent more greenhouse gases than the average barrel of crude oil refined in the U.S. in 2005. But it adds that increasing demand for oil means that more of the world’s crude supply will come from energy-intensive techniques, such as oilsands extraction. “Regulatory pressure and technological advances could counter this trend,” the report states.
The report also examines the impact of the pipeline construction and leaks on the natural environment including water, plants and wildlife.
There were 1,692 pipeline leaks — or “releases” — in the U.S. from 2002 to 2012, the report notes. It states any medium- or large-scale leak can potentially have a significant impact on the environment, contaminating surface and groundwater sources.
Keystone owner TransCanada has mentioned 57 “special conditions” most of which relate to reducing the risk of leaks. The report does not assess these “conditions.”
The voluminous draft report does not offer recommendations on whether the pipeline should be approved by U.S. President Barack Obama. It examines only the potential environmental impacts as well as the impacts on U.S. energy supplies now and in the future.
“I think it’s premature at this point to really try to come down with strong conclusions ... until we engage with the public and really get some feedback,” Jones said. “We have found that there are some impacts and in some cases for those impacts there are mitigations and approaches can be taken.”
Canadian Minister of Natural Resources Joe Oliver said in a written statement the federal government was “reviewing” the report, but stressed that Canada has “aligned its greenhouse gas emissions with the United States.”
Oliver said Keystone would create “tens of thousands of jobs on both sides of the border.”
“This project will replace oil from Venezuela and the Middle East with a stable continental supply, including from the oilsands and improve the energy security of North America,” Oliver said.
Once the U.S. Environmental Protection Agency (EPA) officially publishes the draft report next week, a 45-day public comment period will follow. This will include public hearings in Nebraska where a section of the pipeline is to be built. The hearings will likely be held in early April. A final draft will be prepared after the public comment period. Then Obama will make the final decision.