Oil Sands Truth: Shut Down the Tar Sands

"Canadian crude under attack on two fronts"

Canadian crude under attack on two fronts
By Bill Mann, MarketWatch
September 29, 2011

VANCOUVER, B.C. (MarketWatch) — With the rancorous Keystone-XL pipeline debate currently raging across the United States and Canada, it seems we’re at a tipping point: Will Canada’s oil sands be seen as an “ethical” source of oil, or a polluting pariah?

That’s the way major Canadian media are portraying the current hot oil-sands controversy, which has taken on an increasing international dimension of late and is transcending the pipeline controversy. There are now even convoluted conspiracy theories being printed in major media about Canada-oil bashing, stories of “transnational environmentalism” and dirty media tricks fueled by sinister international forces to slander Alberta crude, possibly financed by the Saudis and Venezuela.

Canadian Prime Minister Stephen Harper, an oil-friendly Conservative from Alberta, is now fighting the oil-sands battle on two fronts:

On one battlefield he’s trying to fend off increasingly vocal and higher-profile Keystone-XL /quotes/zigman/27155/quotes/nls/trp TRP -1.03% opponents. There have been major protests in Washington, D.C., and this week, in Ottawa, as well as rancorous public meetings this week in Nebraska, Kansas and Texas, which the pipeline will cross and where it will end (Texas). Harper even sent his ambassador to the United States, Gary Doer, to Lincoln to meet the Nebraska governor (a Keystone XL opponent) this week.

Then there are the European environmental forces (mostly, the EU) trying to label Alberta crude as “dirty oil.” The European union, which has (you may have read) other problems these days, is trying to fashion fuel standards that could tar (so to speak) the reputation of Alberta crude by labelling it as dirty oil and creating stiff barriers to its importation. Europe, it should be mentioned, doesn’t get hardly any Canadian oil-sands crude. Yet.
Canadian P.M’s new supporter

Harper has a strong new Euro-ally in British Prime Minister David Cameron. The two have become chummy, and Cameron’s government is now arguing that the oil sands should not be singled out as a dirty resource in a world that will still need oil, and increasingly heavy crudes, for years to come.

He has a point.

The British High Commissioner in Ottawa, Andrew Pocock, put it this way after Cameron’s visit to Ottawa last week:

“You have this huge resource, the second or third largest in the world, on the border of the largest oil consumer on the planet. Name me a country on earth that WOULDN’T develop it.”

Good point.

“The light oils on the planet,” Pocock added, “are, broadly, gone. We’re going to have to look at heavier crudes.” (“Looking at heavier crudes” sounds like scouting future NFL linemen).

The British shift gives Harper another — and far bigger — political ally besides EthicalOil.org, the Toronto-based media outfit that’s gotten the full attention of Saudi Arabia’s lawyers in Canada, who are enjoining to stop Canadian TV ads bluntly reminding viewers how the Saudis treat women. .

Harper calls the proposed $7 billion, 1600-mile Keystone-XL, which will ship 700,000 gallons of Alberta crude a day to Texas gulf oil refineries and create a reported 100,000 jobs, a “no-brainer.” He says he’s “confident” the pipeline will be built.

Which it certainly seems it will be.
Oil junkies

With the U.S. increasingly on the prowl for more secure oil sources (how many more Libyas are yet to come?) it’s got to maintain its petroleum fix somehow.

Let’s face it. Even we Prius-huggers (yes, I own one) who would love to see the western world end its petroleum “jones” and start cranking out electric cars by the hundreds of thousands, need to be realistic here. Oil isn’t going to go away overnight.

It will, sadly but realistically, be around for years. And frankly, oilsands crude is not only a lot cleaner than coal (then again, what isn’t?), it’s also not as dirty as many of its opponents are claiming. Plus, oilsands producers are currently cleaning up their act (e.g., their tailings ponds), prodded along by the Canada and Alberta governments.

Bottom line: Given all the above, I’m glad we have Canada as a friendly neighbor and oil supplier. You could even think of Canada as America’s wholesome drug dealer.

That’s NOT an insult aimed at Canada, but at our ridiculous oil dependency. I feel disgust every time I see one of those idiotic, tank-like monster trucks pull up next to me at the gas station and suck up $80 (or more) of gas. And I felt the same way long before I got the Prius.

I consider myself an environmentalist, but we live in the real world of capitalism and economic reality. We need to develop green energy sources and technologies ASAP before the Chinese and others do.

But in the meantime, we should lay off Canada and its oil-sands crude, or bitumen. It’ll be keeping many of our cars going until we finally get our energy act together — IF we ever do.

Or were you planning on walking to work the next few years?

Bill Mann is a MarketWatch columnist, based in Port Townsend, Wash.

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