Saskatoon StarPhoenix

U.S. report downplays oilsands impact

- WILLIAM MARSDEN

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.

 ?? MANUEL BALCE CENETA/THE Associated Press ?? Protesters march in Washington during a rally calling on President Barack Obama to reject the Keystone XL oil
pipeline in February. A new report highlights the environmen­tal impacts but offers no recommenda­tions.
MANUEL BALCE CENETA/THE Associated Press Protesters march in Washington during a rally calling on President Barack Obama to reject the Keystone XL oil pipeline in February. A new report highlights the environmen­tal impacts but offers no recommenda­tions.

Newspapers in English

Newspapers from Canada