Friday, 28 July 2017

A Few Questions for Canada's NIMBY Crowd

By: Mark Scholz - President of CAODC
Published: The Hitch - Summer 2017

President's Message

Locals and globally-funded environmental groups who oppose the Kinder Morgan Trans Mountain expansion project object to any infrastructure that might result in a proliferation of tankers that would disturb the beautiful Saelish Sea ecosystem. This position, while seemingly well-intentioned, is not rooted in fact; and it has presented one of the most compelling threats to Canadian federalism since the Quebec referendum of 1995.

Let’s look at a few facts. To date, there have been no major tanker incidents off of the coast of British Columbia, largely due to developments in double-hulled tanker technology and thoughtful marine planning and cooperation on the part of companies and municipal governments. About 250 large commercial vessels enter the Port of Vancouver every year, five of which are tankers destined for the Westridge Marine Terminal.1 The Trans Mountain expansion is projected to increase that tanker traffic to 34 tankers. That seems like a significant increase, except when you consider the fact that the increased total represents just 14 percent of all marine traffic in the Port of Vancouver.2

Canada is a world-class producer of oil and with new investments in energy infrastructure – namely pipelines – we can increase our potential to be a world-class supplier in a globally competitive market. Currently, less than one per cent of Canada’s oil is exported to markets outside North America, yet world demand for oil will continue to grow.3 Canadian oil production meets the highest standards among producing nations. We should aim to be the global choice in terms of oil and gas. Energy infrastructure is critical to reaching that goal.

So what about those who oppose pipelines in principle, on the grounds that their contents promote catastrophic climate change? Well, they should be encouraged by the fact that Canadian oil and gas are less GHG-intensive than ever.
When will enough be enough for you to divest yourselves of the notion that we need to “leave it in the ground”?
It’s commonly known (but no less remarkable) that the volume of GHGs released by every barrel of oilsands crude has been reduced by an average of 30 percent since 1990. But did you know that technologies such as molten carbonate fuel cells reduce the greenhouse gas intensity of in situ steam generation methods such as steam assisted gravity drainage? In the drilling industry, the time it takes to drill an extended-reach horizontal well has been reduced by up to 70 percent, resulting in significant GHG emissions cuts through dramatic reductions in the use of diesel fuel on site. In terms of the safety record of the existing Trans Mountain pipeline, it has transported oil products with a 99.9 percent spill safety rate since 1956.

Canadian industry will keep making impressive strides toward achieving perfect emissions, safety and conservation outcomes.

So here are a few questions for Canada’s NIMBY (Not In My Backyard) crowd:
  • When will enough be enough for you to divest yourselves of the notion that we need to “leave it in the ground”?
  • Are your objections to Canada’s regulatory processes rooted in conservation and consultation issues, or are they just a stall tactic to prevent investment in Canada’s oil and gas industries?
  • Do you believe that Canadians are really better-served by hobbling our opportunities to participate in the global energy transition by shutting down the production and transportation of our oil and gas resources?
These questions matter. They will determine our country’s energy future, our contribution as global thought leaders in innovation and excellence, and our ability to uphold a cohesive Canada. 
Mark Scholz is president of the Canadian Association of Oilwell Drilling Contractors. He can be reached at mscholz@caodc.ca.
Sources:

1 Transport Canada

2 Kinder Morgan

3 CAPP

Tuesday, 18 July 2017

HEY HEY! HO HO! THE CARBON TAXES HAVE GOT TO GO!

Published: Oilfield Pulse
By: Kevin Turko - CEO - Oilfield Hub Inc

   
       It's almost impossible these days to watch an cable news network or national news broadcast without encountering some sort of story covering a protest rally or group shouting out or marching for their favorite or latest causes. Up until November of last year, there was a constant barrage of environmental groups and eco-activists out there at every opportunity chastising the oil and gas industry, chanting their vocal support to fix climate change and rid the planet of the new demon called 'carbon pollution'. Then, thank God, along came President Donald Trump who, right or wrong, has shifted both the medias and protestors' focus away from the energy sector. Here are just a few of my personal favorite chants:

THE PEOPLE! UNITED! WILL NEVER BE DEFEATED! NO BAN! NO WALL! THE TRUMP REGIME HAS TO FALL! SAY IT LOUD! SAY IT CLEAR!REFUGEES ARE WELCOME HERE!WE WANT A LEADER! NOT A CREEPY TWEETER! HANDS TO SMALL! CAN'T BUILD A WALL! YOU'RE ORANGE! YOU'RE GROSS! YOU LOST THE POPULAR VOTE! HEY HEY! HO HO! THIS PRESIDENT HAS GOT TO GO!

      Whether you love the man and support his policies, or detest the man and despise his policies, President Trump has single handily polarized the political landscape well beyond the borders of the United States. By the way, it's a lot more fun when you read these chants out loud in a raised and rhythmic voice! Give them a try again; but to truly get into the agitated protesting spirit you should also read each of the chants 3 times in a row. Again, all thanks unwittingly or purposely to The Donald.
       In the last eight months or so, this has remarkably taken the pressure off the oil and gas industry. The boogeyman of climate change, Mr. Carbon Pollution, has taken a second seat to a whole host of other social justice causes on both sides of the border and opposite sides of the political landscape. Not to be out-done, I thought a little reminiscing was in order so we don't lose sight of the past and ongoing fine protesting efforts of our foreign funded environmental activist groups. Again, here goes with some of my personal global warming favorites.

NO MORE COAL! NO MORE OIL! KEEP YOU CARBON IN THE SOIL! NO PIPELINES! NO TAR SANDS! NO DESTRUCTION OF OUR LANDS! KINDER MORGAN! ENERGY EAST! NOT IN THE WEST, NOT IN THE EAST! GIVE US CLIMATE TARGETS! NOT DIRTY TAR SANDS MARKETS! HEY HEY! HO HO! CANADIAN PIPELINES HAVE GOT TO FLOW!

      Ok, ok , ok, if you are paying attention I made the last one up! From where I am leaning, all these folks just don't have to be so damn negative. Why can't we start some cool chants of our own to help modify, in a much more positive manner, the climate change and carbon pollution narrative! Give it a try! I rather like the HEY HEY! HO HO! chants. Snappy little jungles and pretty easy to make up by yours truly and by the countless number of seemingly paid and well funded eco-activists. Several of which are thinly veiled or cloaked as so called charitable organizations, at least for the time being in Canada as long the Trudeau Liberals are in power. But hey hey, ho ho, that's a whole other article! Sorry, couldn't resist.
    These climate change and carbon pricing debates are such divisive issues right now, but what I find fascinating are the unfortunate parallels to the political climate we are being subjected to. If you watch channels like the CBC or CNN you get bombarded with countless hours of 'the world is ending' reporting, and if you watch Fox News you're being swayed for an equal number of hours that its all 'fake news' and that nothing wrong is happening. All in search of higher ratings and increased revenues. Most people just don't have time nor inclination in their daily lives to search out the truth which undoubtedly lies somewhere closer to the middle of our daily news spectrum.
     There's so much time, effort and dollars being spent on indoctrinating everyone on what's wrong and precious little time, effort, and dollars are being devoted to educating the public on what we, our business leaders and politicians, can do to make it right. Let's use pipelines as an example. If we are all so concerned about carbon pollution on a global scale, why no get these pipelines built now! As a first step, doesn't it make more sense to get countries like China, India and other high emitting countries off their dependence on coal and onto clean burning natural gas. Wouldn't this be a massive positive step toward lowering GHG emissions now, versus by 2030?
      The life blood of the oil and gas industry in Canada is access to foreign investors. These investment dollars won't return to Canada until significant and meaningful progress is made on getting our oil and gas to tidewater. On the home front, we seem to care little about making Canada truly energy independent with our own natural resources. Instead we are blocking pipeline construction with petty local and domestic issues. I say petty, because our industry detractors have lost sight of the greater good. Let's get our clean burning natural gas to China, and many other countries, so we no longer have to watch news reports of Chinese people with face masks walking thought their cities under a smoggy and hazy skyline.
      Instead we slap our citizens and businesses with meaningless carbon taxes which don't in any way change consumer behaviours. We distract our people into thinking this is the answer to tackle climate change. We allow civic politicians in cities like Vancouver to ban clean burning natural gas furnaces. These same politicians and local protestors are hurting our Canadian economy, and unwittingly, or stupidly, denying access to LNG to the worst polluting countries of the world. This is small-ball crap and just plainly hypocritical!
    So the next time you see a protestor in your neck of the woods, think of our less fortunate global neighbors and throw back a chant of your own. You're always welcome to use mine as well.

   HEY HEY! HO HO! CANADIAN PIPELINES HAVE GOT TO FLOW!

   

Monday, 17 July 2017

Pipelines for Peace

By: C. Kenneth Reeder
Published: Pipeline Observer - CAEPLA

Why supporting Canadian energy transport projects can mean fewer wars and refugees

We generally think of the pipeline debate in terms of economy and environment, but pipelines can be a war and peace issue as well. 
     An American diplomat once said, "If goods cannot cross borders, armies will." If people can't get what they need through cooperation and trade, then they must resort to violence and plunder. 
     That is why most of history's wars have been fought over land and resources. In the modern era we basically accept that oil and gas have something to do with many conflicts. We know why so many "strategic interests" include the Middle East and not the Congo. 
      We can see this in Syria. The war-torn country is ground zero for clashing foreign interests. There are many layers to the conflict but one of these is competing gas pipelines. 
       It's nearly impossible to understand the irrationality of Middle Eastern politics, and Syria's civil war is no different. We have a nasty secular dictator fighting a hodgepodge of terrorist-rebel factions (including ISIS, Al-Qaeda, and others). Whatever they're fighting over, it's a brutal struggle with no good guys to cheer for. 
       How do pipelines fit in? The Syrian Civil War started in 2011. In 2009,. Syria's leader Assad rejected a pipeline project with Qatar and Turkey, while supporting an Iranian pipeline project through Syria. 
      The Qatar-Turkey pipeline would have gone from Qatar's North gas field through Saudi Arabia, Syria, and on to Turkey with future access to Europe. Qatar is a major gas producer and its rulers want to be main providers of gas for Turkey, which otherwise depends on Russia and Iran for energy. They also have their eyes on Europe, which will be thirstier than ever for natural gas imports as its own production wanes. 
      Now here's a question: who are the main backers of fundamentalist Sunni rebels forces in Syria? Interestingly, it is the fundamentalist Sunnis in Saudi Arabia and Qatar, with help from Turkey. 
      Now on the flip side of this, who is supporting Syria's regime against the terrorist-rebels? Russia and Iran. 
      Both are key Syrian allies. The rejected project would have been a problem for Russia and Iran's own pipeline related goals through Syria and Turkey because they need to preserve market share and economic power. Assad reportedly said he would not sign off on the Qatar-Turkey pipeline to protect Russia's economic interests. 
     All this foreign interference has greatly aggravated the Syrian conflict, leading to hundreds of thousands dead leading to hundreds of thousands dead and a refugee crisis that has spilled into Europe and elsewhere. 
     When politicians point to the tragedies of Syria and tell us to open our arms and wallets for refugees, we should reflect a bit on how we can alleviate conflicts over petroleum resources.  
      Building more energy infrastructure and exporting more oil and gas is a huge part of this.
      Peace isn't created by vapid, sloganeering politicians, nor by pompous bureaucrats making sleazy deals in the halls of the UN. 
      Peace comes through trade. Civilized people know it's better in the long run to have economic relationships, not violent ones. People don't even have to like each other to do business together and make deals. That is the beauty of commerce. 
     Oil and gas are the lifeblood of modern civilization and thankfully there is no problem of running out anytime soon. The challenge instead is actually making our abundant supplies available to those who want to buy the stuff. 
     When Canada's major pipeline projects get stonewalled by political interference, it's bad for the world. It creates smaller global supply for purely political reasons. Having fewer sources of stable supply empowers the world's bullies to leverage their economic power where supplies are constrained. This is especially true with natural gas, which was mostly stuck in its local market before the advent of LNG transportation. 
     And so Canada's restrictive pipeline policies will stimulate more conflict than otherwise. Some of these conflicts will be bloody and make people flee their homelands. 
    Let's be clear about what we're saying here. Ottawa can't end the Syrian civil war and solve the refugee problem just by approving pipeline projects in Canada. 
   But increasing Canadian supply could help reduce demand for product from those who resort to instigating war to promote their exports. 
    So, Canada can do its part for peace and win small victories by selling more oil and gas to the rest of the world. By doing so can we help ease a major conflict on earth. 
    A pretty good reason to end the political paralysis of pipelines in Canada. 



Tuesday, 11 July 2017

We can wage our own battle (against the naysayers)

By: Scott Jeffrey
Published:  Roughneck Magazine

The Global Petroleum Show wrapped up on June 15, and we need no further evidence that the industry is not back from its glory days. Less than 600 exhibitors were signed up for the three day event, about 1/3 of record numbers when the show was held every two years. As an exhibitor, we also noticed the number of attendees was down, and a view of cards gathered indicated that many producers didn’t take the time to attend the show.

It’s still a great event, and the exhibitors were enthusiastic, selling oil and gas equipment and services with their usual aplomb. Activity is up, oil prices are stable(ish), and demand for product is strong and rising throughout the globe. We are sitting on reserves that put us in the top five in the world, and we may actually see increased pipeline deliverability in the next five years.

However, it is now time for every individual who makes a living from the industry, or who is a proponent of the industry, to wage their own information campaign with the naysayers who enjoy the benefits provided by the sale and use of oil and gas.

How many times have you sat around a dinner table, listening in outraged silence while some white wine socialist holds forth on the evils wrought by the industry that is the foundation for our modern society? Or, how many times have you been able to take no more, exploding in outrage against falsehoods or half-truths spun by men or women who came to dinner in their gas guzzler, enjoyed the comfort of a heated or air conditioned home, and chowed down on a delicious steak prepared on a natural gas or propane barbecue? If you finally do speak up in such a fashion, you’re seen as a hothead, in no way objective, a destroyer of the planet.

And so, in the certain knowledge that revenge is a dish best eaten cold, you can again invite those individuals to dinner, either singly or as a group, and destroy them with five, and only five, unassailable facts. You won’t need any more than that to have THEM sputtering in outrage, while you remain calm and stick to your guns.

Fact #1- Almost 500,000 people in Canada are employed by the oil and gas sector.
Just using an average salary per individual of $75,000/year, wages paid out to the industry amount to $37.5 billion, at least 35% of that taxable. You then factor in royalties on the sale of oil and gas. The economic benefits to Canada, and to government coffers, are enormous. Whether the money is misspent or not, our current standard of living comes in large part from the oil and gas industry.

Fact #2- Pipelines are by far the most efficient and safe way to transport petroleum products.
In Canada we have over 800,000 km of pipelines, transporting about three million barrels of crude per day. In the last 15 years, pipelines have delivered 99.9995 per cent of product safely. Canadians spill more on the ground when they fill up. In B.C., where new pipelines are debated and often vilified, 43,000 km of existing pipeline could be displaced by using about 4,200 railcars. Who wants that amount of rolling stock passing through their community?

Fact #3- Canada’s oilsands produce 0.13% of global greenhouse gases (GHGs).
Environmentalists all over the world rail against our “tarsands,” which by the way is an absolute misnomer. Tar is produced by the distillation of coal, not to be confused with the oil that is entrapped in sand up in northern Alberta. If you want a real fight on your hands, take on King Coal, which is responsible for 44% of global GHGs.

Fact #4- Over 6,000 household items are produced from petroleum based products.
There is no need to mention the obvious uses for our petroleum products, but when you realize that cleaning products, medicines, cosmetics, synthetic rubber, plastic, fabrics, and foodstuffs are made from petroleum, people tend to get very quiet. If you find a product not made from a petroleum base, you probably chopped it down and carved it yourself.

Fact #5- Canada can supply all its oil and gas needs, but imports over 600,000 bbl/day.
This is ridiculous. We spend about $25 billion a year importing Saudi and other crude, and we are held up by about 1,000 km of new pipeline construction. To the detriment of the rest of Canada, a few Quebec mayors will try to halt Energy East until they get paid. The benefits of using our own natural resources are so obvious that only the most obtuse would object.

So there you have it. In my simplistic way, I’ve presented five facts that are not subject to interpretation. If your dinner guests still dispute the need for oil and gas, ask them to put their money where their mouth is. Ask them to think globally, as they no doubt believe they are doing, but act locally. They can walk to your house, ask you to turn off the furnace or the air conditioner, wear less mascara, and otherwise reduce their consumption of products produced from the oil and gas molecule.

And most important of all, remain calm, and let them do the sputtering for a change.
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