Close X
Friday, November 15, 2024
ADVT 
International

Opponents Take Aim At U.S. West Coast Crude-by-Rail Projects In The Works

Darpan News Desk The Canadian Press, 23 Aug, 2015 12:20 PM
    CALGARY — To crude producers hankering for a route to market while pipeline proposals stall, a bevy of crude-by-rail projects planned on the U.S. West Coast may look enticing.
     
    But efforts to connect trainloads of crude to refineries and marine terminals in Washington, Oregon and California aren't having an easy time of it either.
     
    Big environmental organizations and small community groups have been teaming up to fight rail projects in various stages of development in the region. Among the concerns is the prospect of more Alberta bitumen, derided as "dirty" in some quarters, coming to the area by rail.
     
    "We're as much of a green enclave as you're going to get in North America," said Matt Krogh, a ForestEthics campaigner based in Washington state.
     
    "There's some real cognitive dissonance around allowing the expansion of a dirty and polluting industry in your backyard that makes no long-term economic sense." 
     
    Some of the concerns centre on local safety. The Lac-Megantic disaster two years ago, in which a crude-laden train exploded and killed 47 people, is still fresh in many minds.
     
    But the larger implications of enabling more fossil fuel development and what that means for climate change is also playing a role in the debate.
     
    The broad issue of shipping resources from the U.S. West Coast — whether that be coal, oil or liquefied natural gas — raises an "identity question," said Eric de Place, with the Seattle-based think-tank Sightline Institute.
     
    "There's a lot of anxiety about that," he said.
     
    A focal point of campaigns has been a $210-million project pitched by Tesoro Refining and Marketing LLC and Savage Energy for Vancouver, Wash.
     
    The Tesoro-Savage project, dubbed Vancouver Energy, is the largest on the table, with a planned capacity of up to 360,000 barrels a day. That alone is more than 40 per cent of the proposed Keystone XL pipeline, which has been waiting for U.S. regulatory approval for nearly seven years.
     
    The idea is to bring in North American crude by train and then send it by ship to refineries along the West Coast, which have been relying on overseas imports to meet half their needs as production in Alaska and California declines. Vancouver Energy says the project would reduce the West Coat's reliance on foreign crude by 30 per cent.
     
    Tesoro spokeswoman Jennifer Minx said the terminal is set up to handle crude mostly from the Bakken formation, centred on North Dakota and stretching into parts of Saskatchewan, rather than heavy crude, like that from the oilsands.  
     
    She cited a poll by DHM Research that suggests 69 per cent of Clark County respondents support the project because of its economic benefits and contribution to energy security.
     
    "The Vancouver Energy terminal will be a modern, purpose-built facility with strict safety and environmental protections in its design and operating procedures. We actively work with our partners to make sure the entire supply chain is operating safely," Minx said.
     
    The Washington State Energy Facility Site Evaluation council is expected to release a draft environmental impact statement for public review in November — four months later than previously expected.
     
    Brett VandenHeuvel, executive director of Columbia Riverkeeper, said he's hopeful crude trainloads can be stopped.  
     
    "If you asked me a year ago, I might have had a different answer but there's been unprecedented opposition to it," he said. "It's not just conservation groups. It's pretty diverse and broad scale concerns about these projects."
     
    As for how much oilsands crude may make it to the U.S. West Coast by rail, a lot will have to do with weather pipelines to the British Columbia coast come to fruition, said Sightline's de Place. If not, rail to the Pacific may become more popular.
     
    Kinder Morgan's plan to nearly triple the capacity of its Trans Mountain pipeline from Edmonton to the Vancouver area is being weighed by the National Energy Board. Enbridge Inc.'s Northern Gateway proposal to Kitimat, B.C., has regulatory approval, but the company has not officially decided whether to build it.
     
    Then there's the question of whether the pricey crude-by-rail option is worth it, with crude prices are at their lowest levels since 2009, de Place said.
     
    "I guess my message to the Alberta producers would be: good luck. You're going to need it."

    MORE International ARTICLES

    Miss Universe 2015: Colombia's Paulina Vega Wins Crown In Miami

    Miss Universe 2015: Colombia's Paulina Vega Wins Crown In Miami
    Colombian beauty Paulina Vega Sunday night beat 87 contestants, including India's Noyonita Lodh, to win the Miss Universe 2015 crown here Sunday night.

    Miss Universe 2015: Colombia's Paulina Vega Wins Crown In Miami

    Charlie Hebdo staffer says magazine now getting much-needed financial support

    Charlie Hebdo staffer says magazine now getting much-needed financial support
    MONTREAL — A journalist who works for Charlie Hebdo says the satirical news magazine is getting much-needed financial support — but it comes at a heavy price.

    Charlie Hebdo staffer says magazine now getting much-needed financial support

    ISIL praises October slaying of soldier in Ottawa; calls for attacks in the West

    ISIL praises October slaying of soldier in Ottawa; calls for attacks in the West
    BEIRUT — The spokesman for the Islamic State group has praised the gunman who killed a Canadian soldier at the National War Memorial in October and is calling on Muslims living in Western countries to carry out attacks.

    ISIL praises October slaying of soldier in Ottawa; calls for attacks in the West

    After Complaints From Indian-Americans Connecticut Brewery To Rename Gandhi-Bot Beer

    After Complaints From Indian-Americans Connecticut Brewery To Rename Gandhi-Bot Beer
    New England Brewing Co.'s India pale ale is called Gandhi-Bot. It has a label with a cartoon image depicting a robot version of the late Indian leader. The Woodbridge-based company apologized earlier this month to anyone who found it insensitive.

    After Complaints From Indian-Americans Connecticut Brewery To Rename Gandhi-Bot Beer

    Modi, Obama Unveil Steps For New High To Business, Indo-US Trade Ties

    Modi, Obama Unveil Steps For New High To Business, Indo-US Trade Ties
    India-US business links were set for a quantum jump with Prime Minister Narendra Modi's assurance of "consistent policies" and "welcoming environment" leading to US President Barack Obama announcing steps to lead to $4 billion trade with and investment in India.

    Modi, Obama Unveil Steps For New High To Business, Indo-US Trade Ties

    Indian Restaurant In Australia Banned From Hiring Foreign Workers For Migration Law Breaches

    Indian Restaurant In Australia Banned From Hiring Foreign Workers For Migration Law Breaches
    Australian authorities have cancelled an Indian restaurant's right to recruit foreign workers after several breaches of migration law, media reported Monday.

    Indian Restaurant In Australia Banned From Hiring Foreign Workers For Migration Law Breaches