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D'coda Dcoda

BC First Nations Unite To Ban Export Of Tar Sands Oil [07Dec11] - 0 views

  • For the first time in Canadian history, First Nations, whose territory encompasses the entire coastline of British Columbia, have publicly united to oppose the transport of tar sands crude oil through their land. Over 60 nations have signed the Save the Fraser Declaration, which bans tar sands oil pipelines throughout the Fraser River watershed, an area that was never ceded to the Canadian government, and therefore not legally under the government’s control. “North or south, it makes no difference. First Nations from every corner of BC are saying absolutely no tar sands pipelines or tankers in our territories,” said Chief Jackie Thomas of Saik’uz First Nation, a member of the Yinka Dene Alliance. “We have banned oil pipelines and tankers using our laws, and we will defend our decision using all the means at our disposal.” The First Nations’ refusal to allow tar sands oil extraction or transport through their would make it legally impossible for the Canadian government to move forward with many high price oil production projects. Monday’s announcement – on the first anniversary of the Save the Fraser Declaration – comes in response to recent calls from the Harper government and oil executives to push through pipeline and tanker projects against the wishes of British Columbians and First Nations.
D'coda Dcoda

Blocking Keystone Won't Stop Oil Sands' Flow Into The U.S. : NPR [18Jan12] - 0 views

  • President Obama is feeling election-year pressure over the pending decision on the Keystone XL pipeline. Republicans say the Canadian project would provide the U.S. with oil and new jobs, but environmentalists want Obama to block it. They say Alberta's oil sands generate more greenhouse gases than other kinds of oil, and Americans must not become dependent on such a dirty source of energy. But it may already be too late to change that.
  • Ben West, an anti-oil tanker activist with a group called the Wilderness Committee, says when the pipeline company Kinder Morgan bought this facility in 2005, it shifted its focus to exports — primarily to the American West Coast. "We've seen this huge increase of tanker traffic," he says. "We went from 22 tankers in 2005, up to 79 [in 2010]. You know these 700,000-barrel tankers that are now coming through the Burrard Inlet, which passes through one of the most populated areas of British Columbia."
  • The pipeline also has a branch that crosses the border, feeding crude oil to refineries in Washington state. Kinder Morgan is now exploring the possibility of doubling the pipeline's capacity. West calls it the "quiet repurposing" of the Trans Mountain Pipeline. And because of it, oil sands gasoline is now fueling cars from Seattle to San Francisco.
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  • Philip Verleger, an economist who specializes in oil markets, says even if environmentalists convince Obama to block the Keystone XL pipeline, it won't stop the growth of production in the Canadian oil sands. "With prices around a hundred dollars a barrel globally, that oil is going to make it to the market somehow," Verleger says. "The development may be slowed for a year or two. But one can move the oil west on the existing Kinder Morgan pipeline. They could expand pipelines east. Those pipelines already exist, and they can be expanded."
Jan Wyllie

Debate Intensifies Over Climate Change Aspects of Canada's Oil Sands Pipeline [25Jul11] - 0 views

  • Take NASA scientist James Hansen, who wrote (pdf) a public letter in June suggesting that the fate of the planet rests with the 1,700-mile Keystone XL project.
  • The climatologist said the proposal is a steppingstone to exploiting the entire oil sands region in Canada, where a vast amount of carbon dioxide sits underground in sand formations. Hansen asserted that its extraction would mean "game over" for the Earth when combined with emissions from coal. Canada holds the second-largest oil reserves in the world after Saudi Arabia.
  • , proponents of Keystone XL say that oil production in the Canadian region will continue no matter what, and that developers will find a way to transport the oil overseas if the United States declines to approve the pipeline.
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  • "Whether Keystone XL is built or not, the oil will find a way to market," added Alex Pourbaix, a president at TransCanada.
  • "The climate piece more than anything will be a focus,"
  • U.S. refineries already have invested in upgrades for heavy oil, which could favor supply from countries like Venezuela without Canada in the equation, said Michael Levi, a senior fellow at the Council on Foreign Relations. The International Energy Agency predicts that unconventional oil will meet a growing part of global demand, jumping from 3 percent in 2009 to 10 percent in 2035.
  • Then there are plans to extend or build pipelines carrying oil sands crude to Canada's West Coast, where oil could be shipped to thirsty Chinese markets.
  • Construction of Keystone XL only will play into more demand for oil, rather than spurring investment in cleaner power. The vehicles burning oil from Keystone XL could produce the same amount of C02 as all the trucks and cars in Canada, according to Leach's analysis.
Dan R.D.

More Green Madness On the Plains [25Aug11] - 0 views

  • The proposed Keystone XL pipeline will carry oil from tar sands in Canada across the entire midwestern United States to Port Arthur, Texas. It could eventually transport 900,000 barrels of oil a day and without government funding of any kind has the potential to create 20,000 jobs starting early in 2012. The greens want President Obama to kill it of course; the political blindness and the wishful thinking that so frequently vitiates green policy proposals is fully on display.
  • I will only point to a study by the Canadian Association of Petroleum Producers: “Oil sands crude is six per cent more GHG intensive than the U.S. crude supply average on a wells-to-wheels basis.” Only 6 percent. Yes, that study comes from the oil industry; the green studies and the oil company studies are both suspect and need outside review.
  • the Washington Post want to throw the greens under the bus on this one. “Tar sands crude is not appealing; it is low-grade, it is hard to extract, it is difficult to refine and it produces a lot of carbon emissions. But if it is to be burned anyway, there’s little reason for America to reject it, as long as Keystone XL can transport it across the plains safely.”
D'coda Dcoda

The Death of Nuclear Power: The Five Global Energy Moves to Make Now [07Jun11] - 0 views

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  • Nuclear power was gaining a lot of momentum prior to the terrible disaster at Japan's Fukushima powerplant in March.
  • But since then, atomic energy has come under increased scrutiny and once again drawn the ire of environmentalists who were just warming up to its carbon-free emissions.
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  • The German government's decision to close all of its existing nuclear reactors by 2022 shows that this shift in sentiment is gaining traction. And it increases the likelihood that the nuclear-powerplant building boom that had seemed at hand will be set back. Without a doubt, this new reality will lead to global energy shortages and much-higher energy costs.But for us as investors, the real issue is this: Which sectors will step up to alleviate the shortfall resulting from the inevitable disappearance of nuclear power?
  • As the recent development in Germany so clearly illustrates, one key difficulty about major energy decisions is that far too many are political in nature.
  • Too often, rational scientific analysis and cost-benefit analyses are ignored as hard-line environmentalists push their own agendas. Many of the environmentalists' objections are valid - at least as far as they go. But more and more, those objections seem to include every source of energy that actually works.
  • Windmills are objectionable because they look ugly and kill birds. Geothermal energy is objectionable because it causes earthquakes. Even solar energy is objectionable because of the vast acreages of land required to house the solar panels
  • Replacing Nuclear Power Figuring out which energy sources will offset the decline in nuclear power output requires three calculations:
  • First, a calculation of the cost of an energy source - as it now exists - in its economically most practicable uses. However, much as we may like solar power, we are not about to get solar-powered automobiles; likewise, oil-fueled power stations are inefficient on many grounds.
  • Second, a calculation that demonstrates whether the cost of that energy source is likely to increase or decline. With oil and hydro-electric power, for instance, the cost is likely to increase: The richest oil wells have been tapped and the best rivers have been dammed. With solar, on the other hand, the cost could decline, given how quickly the technology is advancing.
  • And third, an estimate that includes our best guess as to whether hard-line environmentalists will win or lose in their attempt to prevent its use.
  • On nuclear energy, the environmentalists appear to have won - at least for the time being. Their victory probably extends to fusion power, if that ever becomes economical. Conversely, their battles against wind and solar power are futile, as there are no scary disaster scenarios involved.
  • I regard the German decision to abandon nuclear power as foolish, and it should make us very cautious when investing in large-scale German manufacturers, which may be made uncompetitive by excessive power costs. But as an investor, I think it opens up a number of profit opportunities.
  • Actions To Take: Environmental concerns have chased investment away from nuclear energy - at least for the time being. For that reason the nuclear build-out that was just starting to gain momentum now is likely to stumble. As investors, we must look for energy sources that will most likely replace lost nuclear power output. They include:
  • Shale Gas: Potential damage to the environment caused by "fracking," which is the process by which shale gas is extracted, has not impeded this industry's growth. Natural gas has grown increasingly popular, as it is relatively cheap and clean, and readily abundant in the United States. A recent study by the Massachusetts Institute of Technology (MIT) suggests that natural gas will provide 40% of U.S. energy needs in the future, up from 20% today. You might look at Chesapeake Energy Corp. (NYSE:CHK), the largest leaseholder in Pennsylvania's Marcellus Shale, which is trading at a reasonable 9.5 times projected 2012 earnings.
  • Shale gas. Tar sands. And solar energy. Let's look at each of the three - and identify the best ways to play them
  • Tar Sands: The Athabasca tar sands in Canada contain more oil than the Middle East. And at an oil price of $100 per barrel, it is highly profitable to extract. Of course, extraction makes a huge mess of the local environment, but environmentalists seem to have lost that battle - reasonably enough, in view of the "energy security" implications of dependence on the Middle East. A play I like here is Cenovus Energy Inc. (NYSE: CVE). It's a purer Athabasca play than Suncor Energy Inc. (NYSE: SU), but it's currently pricey at 16.5 times projected 2012 earnings. Suncor's cheaper at only 11 times projected 2012 earnings - so take your pick
  • Solar Energy: Of the many new energy sources that have received so much taxpayer money in the last five years, solar is the one with real potential. Unlike with wind farms, where there is almost no opportunity for massive technological improvement or cost reduction, there is great potential upside with solar power: The technology and economics of solar panels and their manufacture is improving steadily. Indeed, solar power seems likely to be competitive as a source of electricity without subsidy sometime around 2016-2020, if energy prices stay high.
  • There are a number of ways to play this. You can select a solar-panel manufacturer like the Chinese JA Solar Holdings Co. Ltd. (Nasdaq ADR: JASO), or a rectifier producer like Power-One Inc. (Nasdaq: PWER). JA Solar is trading at a startling forward Price/Earnings (P/E) ratio of less than 5.0, mostly likely because of the Chinese accounting scandals, whereas Power-One is also cheap at less than seven times forward earnings and is U.S.-domiciled. Again, take your pick, depending on which risks you are comfortable with.
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