Global Warming

Alberta oilsands air pollution worsens: Report

jessie — Thu, 27 May 2010 14:05:03 -0700

Alberta oilsands air pollution worsens: Report

Karen Kleiss, Edmonton Journal May 27, 2010, EDMONTON — Air quality tests show oilsands companies breached Alberta's air pollution targets more in 2009 than ever before, according to an environmental report released this week.

Environmental Defence Canada analyzed air quality data collected by industry-funded monitors over the past six years, and found companies violated the province's air quality standards more than 1,500 times in 2009, up from less than 50 times in 2004.

"We have heard repeatedly from federal Environment Minister Jim Prentice and Premier Ed Stelmach that they are getting tough on the oilsands, that they are working on cleaning it up. It hasn't happened," Environmental Defence program manager Gillian McEachern said Tuesday.

"We need to move beyond talking tough to actually putting in place measures to fix the problem."

The report calls on the federal government to make good on its October
2006 promise to pass a federal Clean Air Act that would cap the amount of pollutants oilsands operators are allowed to emit.

The 18-page report, Dirty Oil Dirty Air, is based on air quality information collected by the independent Wood Buffalo Environment Association, an air quality monitoring organization funded by oil companies and operated with input from a long list of government and community stakeholders.

Environmental Defence compared the air quality data to the province's Ambient Air Quality Objectives, which set emissions standards for key air pollutants such as sulphur dioxide, nitrogen oxide, volatile organic compounds, particulate matter and hydrogen sulphide.

When any of these air pollutants is measured at a higher level than the province's limit, WEBA records an "exceedance."

In 2009, there were 1,556 exceedances, up from 47 in 2004.

The report says that, in high doses, these pollutants have been linked to respiratory illness, heart disease, emphysema, bronchitis, headaches, nausea, spontaneous abortion and impaired neurological function. However, it is not clear from the data how large the exceedances were.

Alberta Environment spokesman Chris Bourdeau said the system is working precisely as it was designed to work. Exceedances act as triggers, he said, so the government knows when air pollution is on the rise and can deal with the problem.

"We're not hiding from the fact that exceedances did increase," Bourdeau said. In this case, the spike was traced to an increase in hydrogen sulphide emissions from a Suncor tailings pond. A team of provincial experts is working with the company to reduce emissions, and the numbers are coming down, Boudreau said.

He also said those who live in the region need not worry about health concerns associated with the exceedances.

"It's a nuisance issue, it's an odour issue, it's not a health issue," he said. "If you look at our overall air quality numbers, they're showing that 95 per cent of the time the air quality is good."

New fact sheet compares environmental impacts of oil sands mining and in situ extraction

jessie — Thu, 27 May 2010 14:03:10 -0700

New fact sheet compares environmental impacts of oil sands mining and in situ extraction

May 26, 2010, Calgary, Alberta -- The Pembina Institute has compared the environmental impacts of oil sands mining and in situ extraction and found that some of the impacts from in situ extraction are higher than from mining. Far from being a "low-impact" method of oil sands extraction, on average in situ has higher greenhouse gas and sulphur dioxide intensities than mining.

The new fact sheet, Mining vs. In Situ (www.oilsandswatch.org/pub/2017) draws on the Pembina Institute's two oil sands report cards -- Under-Mining the Environment (www.oilsandswatch.org/pub/1571) and Drilling Deeper (www.oilsandswatch.org/pub/1981). It provides an initial, much-needed comparison of the environmental impacts of oil sands mining and in situ extraction.

In situ extraction techniques are used where oil sands deposits lie too deep underground for surface mining. Given that about 80,000 square kilometres of Alberta -- an area the size of Scotland -- has been leased for in situ development, the potential environmental impact of these projects could be significant.

For more information, contact:

Simon Dyer
Oil Sands Program Director
The Pembina Institute

Tar sands oil extraction spreading rapidly, report warns

jessie — Mon, 17 May 2010 06:13:11 -0700

Tar sands oil extraction spreading rapidly, report warns

Terry Macalister, The Guardian, Monday 17 May 2010 --Friends of the Earth reports says extraction threatens environment as well as vulnerable communities

The successful development of Canada's tar sands has triggered a rush by Shell and other oil companies to set up similar operations in Russia, Congo and even Madagascar, a new report reveals.

Soaring crude prices and an growing shortage of drilling sites have encouraged the energy industry to look at a series of "unconventional"
hydrocarbon deposits threatening vulnerable environment and communities in places such as Jordan, Morocco as well as the US, Friends of the Earth says in a review called Tar sands -- fuelling the energy crisis.

The revelations come just 24 hours before Shell's annual general meeting and on the day when Ceres, a coalition of a investors and environmentalists, launches its own survey warning that Canadian tar sands extraction could pose an even bigger risk to an oil company share price than the US rig disaster which has knocked $30bn (?20.6bn) off the value of BP.

Tar sands and oil shale are considered by green groups to be much more damaging to the planet than normal oil operations because extraction is highly carbon- and water-intensive.

"Tar sands -- bitumen that is extracted and upgraded to produce synthetic crude -- has been heavily criticised for its poor environmental and social outcomes, locally and globally. Canada is currently the only major centre of production but investment is expanding, including by European oil companies such as BP, Shell, Total and ENI," the Friends of the Earth report says.

The group wants the European Union to use its fuel quality directive to take into account the different carbon footprints of oil-based fuels entering the EU by assigning them a value to represent the strength of their greenhouse gas effect. Otherwise "it will encourage the global expansion of tar sands putting vulnerable communities at risk, and will slow progress towards the EU's wider climate and energy goals".

BP is developing tar sands in Alberta and also in Venezuela, the world's second largest reserves after Canada, where it is active on the Petromonagas block and is also considering the Ayacucho 2 block.

Shell, which led the charge into Alberta, has been working with Tatneft to produce tar sands crude at the Ashalchinskoye field in Tatarstan, in the Russian Federation.

ENI of Italy has signed an agreement with the energy ministry in Republic of Congo to invest in tar sands although it says it will not use the methods being employed by others in Canada.

BP and Shell contest claims by Friends of the Earth and others that tar sands are up to five times as carbon-intensive to exploit as normal crude.
Shell says it hopes to mitigate the impact by using carbon capture and storage techniques, although the technologies are unproven on a large scale.

Oil shale, a rock containing kerogen from which synthetic crude can be extracted by heating it to very high temperatures, is in abundant supply in Jordan. Shell finalised a deal last year to operate on the AzraQ and Al Jafr blocks via its Jordan Shale Company.

A spokesman for Shell said its operations in Jordan were at an early stage and claiming that although tar sands made headlines they were a very small part of the company's overall business. "They make up 2.5% of our overall production and even after planned expansion in Canada they will only make up 4%," he said.

Friends of the Earth points out that Jordan is one of the driest countries on earth and is estimated to have a water shortage of 320m cubic metres this year. "Oil shale production will exacerbate this trend hugely, as one barrel of shale requires as much as 3.2 barrels of water to upgrade," the report notes.

There is also oil company interest in shale deposits at 10 locations in Morocco, two in Egypt as well as a "bitumen belt" in Nigeria which is already suffering major environmental damage from oil spills in the delta and the flaring of excess gas.

Meanwhile the Ceres report, launched by its president Mindy Lubber, highlights not only the widespread environmental and social impact of oil sands development, but also the high production costs and limited market for this fuel, for which companies have committed $200 billion in investments. Shareholder resolutions requesting expanded oil sands risk disclosure have been filed this year with leading oil sands producers, including BP, Shell, ExxonMobil and ConocoPhillips.

Climate Change Accountability Act a Step Forward for Canada

jessie — Thu, 06 May 2010 05:14:27 -0700

Climate Change Accountability Act a Step Forward for Canada

May 5, 2010, OTTAWA—Members of the Climate Action Network-Réseau Action Climat Canada are very pleased to celebrate historic progress in Canadian climate change policy today with the passing of the third reading vote on the Climate Change Accountability Act (Bill C-311).

“The passing of the Climate Change Accountability Act is a huge victory for climate change policy in Canada,” said John Bennett of Sierra Club Canada. “The environmental movement has supported this Bill from its inception as one of the strongest piece of climate change legislation in Canadian politics.”

“All three opposition parties must be congratulated for their support for the Climate Change Accountability Act,” said Dale Marshall of the David Suzuki Foundation. “This support reminds us that the majority of Members of Parliament, along with the majority of Canadians and provinces want stronger action on climate change. “

“The Harper government has fumbled the ball on climate change. The upcoming G8 and G20 summits are an opportunity for Canada to show some leadership,” said Dave Martin from Greenpeace Canada. “The targets laid out in the Climate Change Accountability Act, together with money on the table to help poorer countries cope with climate change would send a message to the world that Canada is ready to take this seriously.”

The Climate Change Accountability Act requires that the Canadian federal government implement regulations and policies to attain a long-term target of reducing greenhouse gas emissions to 80% below the 1990 level by 2050.

Bill C-311 has passed third reading with the opposition parties voting in favour (149 to 136). As this historic Bill passes through the House of Commons, Climate Action Network Canada looks forward to working together with all parties and the Senate to ensure rapid implementation of ambitious Canadian climate policy.

Canadian Youth Unite to Deliver a Message to Members of Parliament: Be Climate Leaders, Keep Bill C-311 Alive!

jessie — Mon, 12 Apr 2010 08:54:54 -0700

Canadian Youth Unite to Deliver a Message to Members of Parliament: Be Climate Leaders, Keep Bill C-311 Alive!

April 12, 2010, NATIONAL - Following an announcement that Bill C-311, the Climate Change Accountability Act, would face a procedural vote in the House of Commons in order to reach its third reading, a network of Climate Justice activists across Canada have delivered a message to Members of Parliament across Canada: Take action on Climate Change Save Bill C-311.

“Bill C-311 is the only science-based piece of climate legislation in the Canadian parliament, and our best bet for taking the first step towards making Canada a climate leader,” said Sarah McEwen, 24 year old from Winnipeg. “Young people in Canada want to see the government take action, and supporting C-311 is key to that process.”

Bill C-311 will inscribe minimum emission cut targets of 25% below 1990 levels by 2020, and 80% cuts by 2050, the bottom-line scientific cuts needed to keep global temperature rise below 2 C.

“As it stands, Canada has presented targets of 17% cuts below 2006 levels by 2020, this amounts to less than 3% total emissions reductions below 1990 levels. This is half what Canada signed on for with the Kyoto Protocols, and well below the necessary scientific cuts.” Cameron Fenton from Montreal explained. “Without C-311, Canada’s current climate strategy makes each and every Canadian complicit in the drowning of Small Island nations, the spread of drought around the world, and the vast human suffering that will be the result of global climate chaos.”

Canadians of all ages have been emailing, phoning and approaching their MP's over the past week – including two Facebook campaigns which has garnered over 600 actors in two days – to demand Climate Action from a government which has, to date, failed to take action at home and blocked international attempts to reach a fair, ambitious and binding treaty. According to a poll in early December 2009, nearly 75% of Canadians are embarrassed at our government's inaction on Climate Change and want them to do more.

Originally presented as Bill C-377, the Climate Change Accountability Act was previously supported by the three major opposition parties and only stopped by Stephen Harper's first Prorogation of Parliament. The current bill is supported by both the NDP and Bloc, but the Liberal party – since the nomination of Michael Ignatieff as leader – has shown wavering support for the bill.

“Climate change should not be a partisan issue, it is an issue of the utmost importance that affects all Canadians. Politicians need to understand this, regardless of what political party they belong to,” said Meghan Larson of Halifax. “Michael Ignatieff and the Liberal Party need to turn the tide and make the right decision for the Canadian residents they represent. We are calling on them to take a stand and support Bill C-311.”

Actions will be taking place online and across Canada between now and the April 14 to demand climate leadership.

- 30 -

Contacts:
Cameron Fenton, Montreal: (514) 467-6413
Kimia Ghomeshi, Toronto: (416) 294-1602
Meghan Larson, Halifax: (902) 293-2994
Amber Church, Whitehorse: (867) 335-4884
Sarah McEwen, Winnipeg: (204) 979-0930
Maryam Adrangi, Toronto: (416) 996-3478

BP wins support against oil sands move

jessie — Wed, 31 Mar 2010 12:38:58 -0700

BP wins support against oil sands move

Ed Crooks, Financial TImes, March 31 2010--has scored a twin success in its battle to block a shareholder resolution that raised doubts about its proposed investment in Canada’s oil sands, with a group of local authority investors and a leading advisory service recommending a vote against the move.

About 150 investors, advised by the campaign group FairPensions, put forward a resolution calling on BP to commission a report on the risks involved in its proposed investment in the $2.4bn (£1.6bn) Sunrise project, including environmental costs and the effect on its reputation.

However, it emerged on Tuesday that BP had won backing for its opposition to the resolution from two influential groups.

The Local Authority Pension Fund Forum, which has 52 members, said BP had “provided sufficient evidence that its approach was well-grounded”.

It added that while the purpose of the resolution was to encourage more disclosure from BP, “the company has disclosed a great deal of information on this issue” and “the spirit of the resolution had been met”.

Separately RiskMetrics, which makes voting recommendations to institutional investors, confirmed that it would also advise shareholders to reject the proposal at BP’s annual meeting on April 15.

Louise Rouse, director of investor engagement at FairPensions, said she was “very surprised” by the RiskMetrics recommendation, because the adviser appeared to agree there was a need for BP to be more open about its involvement in the oil sands.

BP says it has disclosed more detail than other companies about the business case for its possible investment, which is set to be given the go-ahead by the end of the year. It has, for example, specified an assumed cost of carbon dioxide emissions in its planning of $40 a tonne.

Under Lord Browne, its previous chief executive, BP held back from oil sands investments while others piled in.

It is now planning the Sunrise development as an integrated project to serve its Toledo refinery in Ohio. Sunrise and the refinery are owned 50-50 by BP and Husky Energy of Canada.

RiskMetrics has not taken a decision on a similar resolution about oil sands proposed for Royal Dutch Shell’s AGM on May 18.

Attack on BP’s Oil Sands Assessment

jessie — Mon, 29 Mar 2010 06:15:37 -0700

Attack on BP’s Oil Sands Assessment

Ed Crooks, The Financial Times, March 28 2010--Dissident BP shareholders have attacked the global oil company’s justification for possible investments in Canada’s controversial oil sands by arguing it is based on projections that entail catastrophic consequences for the climate. About 150 investors say the company’s assessment of the outlook for the oil sands shows it has not properly considered the risks involved and have called for BP to commission an in-depth report.

BP is one of the few large international oil companies not to have oil sands production, but it is looking at investing in a $2.4bn (€1.8bn) project – a 50/50 joint venture with Husky Energy of Canada – and plans to make a decision by the end of the year.

Investors including Co-operative Financial Services and the pension fund of Unison, the UK public sector workers union, have put forward a resolution for BP’s annual meeting calling for a report on the financial, environmental and reputational risks of the oil sands projects for investors.

BP responded by saying the production will be needed to meet global demand, which it projects to rise about 40 per cent between 2007 and 2030, with fossil fuels still satisfying as much as 80 per cent of total demand.

However, this is based on the “business as usual” forecast put out by the International Energy Agency, the Paris-based watchdog backed by the leading developed economies.

The IEA has warned that allowing energy demand to rise in that way would have “dire consequences” for greenhouse gas emissions and global warming. The BP investors, advised by Fair Pensions, a consultancy, wrote to BP last week asking it to say whether it saw this scenario as the most likely outcome.

Lauren Compere of Boston Common Asset Management, also backing the resolution, said BP had not made an effort to discuss the issue with its North American investors: “We are still concerned that BP is not examining its oil sands strategy against a range of scenarios.”

Money Spent on Tar Sands Projects Could Decarbonise Western Economies

jessie — Mon, 15 Mar 2010 10:38:14 -0700

Money Spent on Tar Sands Projects Could Decarbonise Western Economies

Terry Macalister, UK Guardian, March 15 2010--The £250bn cost of developing Canada's controversial tar sands between now and 2025 could be used to decarbonise the western economy by funding ambitious solar power schemes in the Sahara or a European wide shift to electric vehicles, according to a new report released today.

The same amount of investment would also help the world to hit half of the Millenium Development Goals in the 50 least-developed countries, says the research from The Co-operative and conservation group, WWF, which is released to coincide with a new film, Dirty Oil, being premiered in 25 cinemas around the UK today. It is a hard-hitting documentary narrated by Canadian actor, Neve Campbell.

The moves are all part of a concerted effort to put shareholder and public pressure on BP and Shell which are at the forefront of extracting oil from the carbon-intensive tar sands of Alberta.

The Co-op claims its task has gained urgency by BP unveiling plans last week to speed up new tar sands projects through a tie-up with Devon Energy.

"The sums of money being invested in tar sands developments are enormous and difficult for the average person to grasp," says Paul Monaghan, head of social goals at the Co-op.

"This report (The Opportunity of the Tar Sands) puts things into perspective and demonstrates not only the scale of the problem, which could take us to the brink of runaway climate change, but also the opportunity being lost. It is literally a matter of life and death that these enormous oil titans are re-steered to much more sustainable paths," he adds.

The production of tar sands is estimated by critics to emit three times more greenhouse gases than conventional oil production. It is estimated that tar sands production will increase from its 1.3m barrels a day to at least 4m barrels by 2025.

A resolution has been put down by the Co-op and other shareholders to be taken at the BP annual general meeting next month alongside a similar one for Shell asking for a review of the economics and environmental impact of tar sands.

The Co-op and WWF say the combined cost of all tar sands – £250bn – could be used for clean power projects such as the Desertec scheme linking solar plants in North Africa to a "supergrid" which could produce 15% of Europe's electricity by 2050.

Alberta Works Quietly to Improve Image of Tar Sands

jessie — Mon, 01 Mar 2010 06:11:00 -0800

Alberta Works Quietly to Improve Image of Tar Sands

Evan Lehmann, ClimateWire, March 1, 2010--South Carolina Gov. Mark Sanford (R) talked about tires on a recent Saturday. An Indiana congressman heard about engines days later. And in Wisconsin, the discussion centers on monster shovels that trundle through pit mines on tank treads. These aren't masculine chats about molded metal and mechanics. The unpublicized conversations are about oil. A specific sludge of lampooned and coveted crude: Canada's gooey bitumen from the Albertan "oil patch."

The forested province is undertaking a remarkable effort to expose connections that states, cities and congressional districts share with the often maligned petroleum resource, whose scalded landscapes and carbon output have become a favorite target of climate champions.

Tracing economic umbilical cords between places like Milwaukee and the oil sands epicenter, Fort McMurray, Alberta, 1,793 miles away, could make a difference when local lawmakers consider restricting refined Canadian crude from being hosed into Dairyland gas tanks. Wisconsin is one of nearly 20 states trying to reduce the amount of carbon that's released from family sedans and delivery trucks. For Canada, it's a personal blow. The United States is a massive market, both nearby and with lenient access. Now, that might be changing. In the Midwest, that's especially important. The heartland uses more Canadian crude than any other region in the nation.

But the benefits flow both ways. And Canadian officials are making sure that local leaders around the country know that if they slap the cheek of Canadian crude, they might feel the pain themselves. "Wisconsin's imprint on that industry is huge," state Sen. Jeff Plale, a Democrat who co-chairs the committee that's overseeing debate on a major energy bill, said of the oil sands.

Plale lives six blocks from the South Milwaukee headquarters of Bucyrus, a major employer that manufacturers the swiveling shovels that can scoop 100 tons of sandy bitumen from the Albertan mines with every bite.

"When I'm talking a shovel, I'm talking, like, a $40 million shovel," Plale said. "This isn't something you have in your garage. Those are made ... by my neighbors."

How much is that tire?

Wisconsin is one of the newest states to propose a low-carbon fuel standard, a policy requiring gasoline providers to reduce the amount of "life cycle" carbon in each gallon of gas. Oil sands crude is targeted because the emissions related to its extraction, production and refining tend to be higher than those from purer oil from the Middle East.

The policy's goal is to dilute gas with biofuel blends from soybeans, corn, sugar cane and other lower-carbon sources. That could have positive effects on the climate. California, which is preparing to launch the first fuel standard anywhere, produces 40 percent of its emissions from cars and trucks. In Wisconsin, it's 24 percent. Both plans propose cutting carbon intensity 10 percent by 2020.

The rising tempo worries Canada. Hounding criticism around the oil sands has prompted officials to undertake an aggressive lobbying effort to reshape perceptions of the vast reserve, which is second only to Saudi Arabia. Gary Mar, Alberta's top official stationed in the Canadian Embassy in Washington, has visited more than 20 governors to emphasize the economic importance of the oil patch. He enters armed with local statistics: 70,000 employment hours from pipeline work around Peoria, Ill.; engines for the world's largest dump trucks are made in Lafayette, Ind.; and the truck's 12-foot tall tires, at $60,000 apiece, are made in South Carolina (each truck has six).

California, Colorado, both Dakotas, New Hampshire, New Jersey, Maine, Massachusetts, Tennessee, Vermont, West Virginia, Wisconsin, Wyoming and more -- Mar has visited with the governors of them all.

He also sees members of Congress, asking them to highlight the benefits of oil sands in floor speeches, inviting them to tour the Rhode Island-sized oil patch, and reminding them that policies hurting Canadian crude can also hurt their constituents. "We're trying to predict as best we can how this will roll out," Mar said of state plans for low-carbon fuel standards. "We're putting our case before the jurisdictions that would be the most receptive to our message and would understand the importance of Canadian oil supply in their jurisdictions."

Midwest is soaked in bitumen
The effort comes as more and more states consider cleaning up their transportation fuel. Michigan, Minnesota, Oregon and Washington state have seen bills introduced in their legislatures. Eleven states, from Maine to Maryland, are farther along. They plan to complete a regulatory framework for a regional effort by early next year. More than half of the oil sands crude imported daily into the United States goes to the Midwest, which receives more than 800,000 barrels of Canadian oil every day. Minnesota, for example, relies on its northern neighbor for 83 percent of its transportation fuel. The Midwest is by far the largest user of bitumen. The Mountain West region is a distant second. California uses none, or a trace, for cars and trucks, and the East Coast receives about 175,000 barrels of Canadian crude a day, a small amount compared to other foreign sources it relies on.

Minnesota's Republican governor, Tim Pawlenty, attacked proposals in his state to develop a low-carbon fuel standard last week as "very ill-advised." Pawlenty is exploring a presidential run in 2012. "We have a very large need for Canadian crude in Minnesota," Pawlenty said at a meeting in Washington between governors and six Canadian premiers. The effort there appears to have stalled. The same is true for a bill introduced in Michigan.

"Out of the gate, this has created a lot of controversy with the petroleum industry," said Michigan state Rep. Lee Gonzales, the Democrat who introduced the measure. "At least we've started a conversation."

Cabinet hears Canadian concerns
One of the biggest complaints about the low-carbon fuel standard proposals is that they tend to lean heavily on California's research and regulatory framework. That measure "discriminates" against oil sands crude by placing a higher bar on bitumen than on California heavy crude, which generates a comparable level of emissions, opponents say. Canada's environment minister, Jim Prentice, discussed how state plans are producing "a lack of continental harmony in terms of an energy policy" when he met this week with several top administration officials, including President Obama's climate change chief, Carol Browner, and U.S. EPA Administrator Lisa Jackson. "Our recommendation has been that we examine a solution to that," Prentice said in an interview. "Is there a continental fuel standard, for example, that we should examine?"

That appears to be a distant goal. The cap-and-trade legislation approved by the House in June, introduced by Reps. Henry Waxman (D-Calif.) and Edward Markey (D-Mass.), does not contain a low-carbon fuel standard.

So states are determined to lead the way, forcing Congress to act. No one knows for sure what the impacts on gas prices would be. California's analysis estimates that "consumers should see no significant changes in fuel prices," or perhaps a small savings. The state's energy sector, meanwhile, could see a savings of $11 billion over the next decade as less oil is used and biofuel producers go online, the analysis found.

Throwing LCFS overboard?
But prices at the gas pump will depend on the availability of new fuels and the price of oil. If biofuel supply is tight and oil prices are low, that could "result in overall net costs, not savings, for the LCFS,"
California cautioned.

Opponents are clearer with their assertions: "You're going to raise gas and diesel prices. You're going to piss off our major trading partners ...and all of that to boot, you're not going to lower [greenhouse gas] emissions," said Michael Whatley, vice president of Consumer Energy Alliance, which has joined a lawsuit to stop the California standard. Whatley said the state programs won't stop oil sands development, which is expected to triple to more than 3 million barrels a day over the next 20 years. That means China, India and other nations will import Canadian oil, and greenhouse gases will be released unabated, he said.

Many of those questions are now being debated in Wisconsin. Plale, the key Democrat whose district is home to the shovel maker, said the low-carbon fuel standard is "untenable." There is perhaps worse news for climate advocates. The measure is included in a sprawling piece of legislation that would gradually increase the state's renewable portfolio standard to 25 percent, spur clean power projects and finance energy efficiency programs, while potentially creating thousands of jobs. The fuel standard imperils the entire bill, said state Sen. Bob Jauch, another key Democrat. "Right now, these issues are anchors to any possibility for this ship to sail," he said.

Oil Sands: The Art of Defusing the Green Protests

jessie — Fri, 26 Feb 2010 06:02:10 -0800

Oil Sands: The Art of Defusing the Green Protests

Nathan VanderKlippe, Globe and Mail, Feb. 25, 2010--Tom Stephens still remembers the day, a few weeks after signing on to the top job at Canada's most-embattled company, when he came upon a protester in downtown Vancouver. It was 1996, and Mr. Stephens had been named chief executive officer of MacMillan Bloedel Ltd., whose clear-cutting of old-growth forests had stirred global anger and provoked the single-largest act of civil disobedience in Canadian history at Clayoquot Sound. So it was no surprise that Mr. Stephens spotted a protester in Vancouver with a sign pillorying MacMillan Bloedel. The surprising part was what Mr. Stephens – and the forestry industry as a whole – did. Rather than continuing to fight the protesters, they decided to engage with them, setting in motion a transformation of forest practices that not only assuaged opponents, but also led to more profits.

The forestry leaders couldn't have known it at the time, but those actions created a model for how to do battle in the green trenches that may prove crucial to a different industry in a similar situation. The leaders of Canada's oil sands, faced with global scorn and protests that have interrupted their operations, are turning to the country's foresters – as well as its miners, who had similar experiences – for guidance on how to respond.

Over the past year, they have quietly spoken with forestry executives and hired consultants who've worked with the forest industry. They have considered radical moves that might involve following the example of forest companies. The forest industry now certifies that their wood meets certain environmental standards.

The oil sands companies have also discovered that calming criticism will require both a major outreach effort, and possibly major change. As the industry struggles with what to do, it will have to confront critics who have taken aim at the oil sands' high greenhouse gas emissions, landscape-scarring open pits and heavy use of water. It will also have to unseat skepticism among those critics that change will ever happen.

Because there is strong disagreement on basic facts – are greenhouse gas emissions three times worse in the oil sands than in other forms of oil production, or just 10 per cent worse? – it is clear that even if reconciliation is possible, it won't be easy.

But both sides have drawn inspiration from that day in Vancouver when Mr.
Stephens decided that a hot drink was a better weapon than angry words.
Instead of walking past the protester, “I said to him, ‘Why don't you come up to the office? We'll have a cup of coffee and talk about it.' That was one of the beginnings,” Mr. Stephens said. “Get off the streets, get off the pickets, come up and let's see what we can come up with.”

Two years later, MacMillan Bloedel renounced clear-cut logging. It discovered that it actually made more money by selective harvesting. Clayoquot Sound went back to being a tourist gem. Canada's global environmental image began to heal.

Then, and now

The parallels between forest companies in the 1990s and oil companies now are marked. Not only do Clayoquot Sound and Fort McMurray share an international profile, they also represent key Canadian industries. At the time of MacMillan Bloedel's crisis, forest exports were worth more than any other Canadian resource export, and more than half of all employment income in British Columbia was rooted in trees.

Today, both Canada and Alberta are similarly dependent upon energy. Governments and oil sands companies are environmental targets, just as MacMillan Bloedel was. Anti-oil-sands groups spent last fall staging protests that temporarily shut down several oil sands operations, while shareholders have driven the issue onto the agendas of Statoil, Royal Dutch Shell and BP. Canada has become an angry target among online commentators who see the oil sands as an egregious and greedy foray into the production of “dirty oil.”

Among industry leaders, there is a broad recognition that something needs to change. Deciding on a strategy isn't easy, but the forestry industry's experiences with environmental challenges seemed a natural source for guidance. Janet Annesley, now vice-president of communications for the Canadian Association of Petroleum Producers, remembers campaigning for Greenpeace on the Clayoquot Sound issue. “I went door to door when I was in eighth grade soliciting funds for Greenpeace and selling memberships,” she said. “For me, that issue has resonance.”

As she and others looked back at those days, they realized solutions don't come by stonewalling or shouting. They come by sitting down with critics for tough talks that result in mutual agreement on how to alter an industry's approach to the environment. “The challenge is that unless you're engaging with a purpose, you're just talking,” said Ms. Annesley, who recently presented some of her findings to industry leaders.

“The lesson that is consistent in the forestry and the mining experience is that you cannot sloganeer, you cannot ‘spin' your way out of these types of issues,” she said. “The ultimate solutions are rooted in performance.”

MacMillan Bloedel, after all, managed to mollify its critics only when it pledged major change to the way it did business.

But given that oil sands criticisms strike at the heart of current industry performance – its use of energy and heavy landscape footprint – is industry willing to change? Ms. Annesley says the answer is yes, especially as technological improvements allow it to clean up its act.

But environmental groups – including ones that have met with CAPP officials in the past six months – have their doubts. Simon Dyer, oil sands program director for the Vancouver-based Pembina Institute, recalls a catchphrase once used to describe forestry companies: “Talk and log” – a strategy that involves paying lip service to problems while continuing business as usual. He has seen energy companies use it, too. One issue matters more to groups like Pembina than any other: How quickly Alberta develops its oil sands. The want the province to slow down, and have been begging the province to do so for nearly a decade. But the idea remains essentially off limits to oil sands backers.

“In many instances, the solutions are there. But there's a lack of political will to implement them,” Mr. Dyer said.

For its part, industry says it's willing to broach the issue – but within limits that may constrain the effectiveness of any dialogue. “We must ...
discuss the pace of oil sands development in terms of energy demand, other supply options and other societal goals such as benefiting from a growing economy,” Ms. Annesley said.

“Looking at oil sands issues through one lens is easy. Balancing our need to protect the environment, grow the economy and ensure reliable sources of energy is not.”

Back to the future
Little more than a decade after Mr. Stephens sat down with that protester, he finds himself in a new environmental battle. He is a director of TransCanada Corp., whose pipelines serve the oil sands and whose fortunes ride on their success.
His knows the value of an industry confronting its environmental demons. “This is of primary importance to the future of the industry and [TransCanada] ... We spend a great deal of time talking about it,” Mr. Stephens said. “Capital is a coward and it runs away from risk,” he noted. “If [the oil sands] is perceived to be ‘risky,' if it is perceived to be a candidate for losing its social licence, capital will go someplace else. And the jobs and the economic impact will go with it.”