Originally published by Maureen Flynn-Burhoe, on 8 June 8, 2011 on my social histories timelines that I will be eventually deleting. 

“Coal remains a key component of Canada’s diverse energy supply picture, accounting for as much as 20% of electricity generation. Six of Canada’s provinces rely to some degree on coal to supply electrical power, with three (Nova Scotia, Saskatchewan and Alberta) almost fully reliant (NRCAN 2010).”

Coal-fired power stations are major emitters of CO2, the most important greenhouse gas (GHG). Brown coal emits 3 times as much CO2 as natural gas, black coal emits twice as much CO2 per unit of electric energy. “Emissions of sulphur dioxide (SO2) and nitrogen oxides (NO and NO2) have traditionally been the main concern. Proven technologies, such as flue gas desulphurisation, selective catalytic reactors, low NOxburners and fluidized bed combustion, are available – albeit at a cost – to reduce these emissions. Recently, pending legislation on air toxics, especially mercury, on fine particulates, and on GHG emissions has emerged as a more formidable challenge. Canada’s GHG emissions from electricity generation in 2004 were 130 Mt. The overwhelming proportion, about 75%, was from the use of coal (NRCAN 2010).”

The world’s power demands are expected to rise 60% by 2030.[5] With the worldwide total of active coal plants over 50,000 and rising,[6] the International Energy Agency (IEA) estimates that fossil fuels will account for 85% of the energy market by 2030.[5]

The five largest power plant sources of NOx in Canada are coal plants in Alberta, Ontario and Saskatchewan. The large emitters in Canada are mainly coal plants located in central Alberta, southern Saskatchewan, southern Ontario, New Brunswick, and Nova Scotia. New Brunswick and Newfoundland also have one oil-fired plant each with large SO2 emissions. The 60 highest mercury-emitting power plants in the United States (or 18 percent of the those listed in Table 3.9) produced 50 percent of the total annual emissions from such facilities. Fourteen facilities produced 90 percent of the power plant mercury emissions in Canada, with annual emissions ranging from 275 kilograms to 1.0 kilogramIn Canada, the highest emitting facility produced 14 percent of the total annual emissions from the Canadian electricity sector (CEC 2004).

Mercury is a toxic substance that accumulates in the environment. Mercury emissions from power generation result from the combustion of coal, which
contains mercury. These emissions can be deposited locally and transported throughout the globe. Canada deposits 9 T of mercury but receives 100 T of emissions. Mercury emissions from coal-fired power plants in North America are generally unregulated, although efforts are underway in Canada and the
United States to develop control programs. For example, Alberta adopted a reduction target of 50 percent from 2003 power plant mercury emissions
by the end of 2009.

“Mercury control technology is highly efficient and available for all coal types. Activated Carbon Injection (ACI) is the primary technology being used to reduce mercury emissions from new and existing coal plants. Data from power plants shows that the tested boilers achieved, on average, reductions in mercury emissions of about 90 percent. (2011-03. Mercury Alert: Cleaning up Coal Plants for Healthier Lives).”

Who’s Who

Canada

  • Carbon Management Canada (CMC)

Secretariat of the Commission for Environmental Cooperation (CEC) of North America (SO2, NOx, mercury, CO2) “Consortia of companies, like the Canadian Clean Power Coalition or the Clean Energy Group in the United States, are coming together to promote the production and use of alternate or renewable energy sources. Other companies are partnering with counterparts in developing countries to create Clean Development Mechanisms (CDMs) that will help to address the looming threat of global warming. In a similar vein, several states and provinces have set in place or are contemplating firm commitments to significantly reduce mercury emissions at coal power plants in the next several years (e.g., Alberta, Connecticut, Massachusetts, New Jersey, and Wisconsin).” This report includes lists of power plants and their emissions (2002 statistics).

Alberta

The Canadian Centre for Clean Coal/Carbon and Mineral Processing Technologies (C5MPT)  is a “research and education centre that supports sustainable and responsible energy and mineral development. The first Centre of its kind in Canada, C5MPT is a partnership of industry, government, and academia and is also a model of collaborative vision among leading researchers.” University of Alberta, Edmonton.

Alberta Environment Ambient Air Monitoring Strategy for Alberta.

Integrated Monitoring, Evaluation and Reporting Framework (IMERF)

Cumulative Effects Management System (CEMS)

The Environmental Protection and Enhancement Act

Clean Air Strategic Alliance (CASA) was established in March 1994 as a new way to manage air quality in Alberta. CASA is a multi-stakeholder partnership. It is composed of representatives selected by industry, government and non-government organizations. Every partner is committed to a comprehensive air quality management system for Alberta.

A timeline of selected events related to the social history of high-emitting coal-fired plants

2025 33 of 51 of Canada’s coal-fired plants will reach the end of their economic lives.

2011-06-08. “Coal Comfort: EPA Cracks Down on the U.S.’s Dirtiest Mercury-Emitting Power Plants” Scientific American. “Twenty of the top 25 mercury-emitting coal-fired utilities in the U. S. are located within 80 to 160 kilometers of some of the largest metropolitan areas in the nation.”

2011 Canada’s Environment Minister Jim Prentice had promised to firm up new standards to force electricity producers to phase out older, high-emitting coal-fired plants and require newer facilities to match the emissions of gas fired plants.

2011-04-26 The Saskatchewan government through SaskPower is moving ahead with their Carbon Capture and Sequestration (CCS) project into $1.2-billion retrofit of Boundary Dam generating station. The $1.2-billion project will rebuild one of its old coal power plants to pump its greenhouse gas emissions underground. The new CCS clean coal power plant is the first of its kind and size anywhere in the world. The project is located at the Boundary Dam Power Station, Estevan and it will be completed in 2013 – 2014 (Leader Post).”

The project will be the world’s first commercial CCS system and it will capture an estimated 1 million tons of CO2 emission per year. That is equivalent to taking 200,000 vehicles off the road.

2011-05-23/27. McLinden’s “An overview of ∧ air quality activities at Environment Canada.”.

2011-03-22 The Government of Canada contributed an additional $899,000 in funds to a Carbon Management Canada (CMC) gasification project in Regina, Saskatchewan (Carbon Management Canada).

2011-03 Coal-fired power plants are the primary source of toxic mercury air emissions in the U.S. Mercury pollution contaminates our land and waters, causing serious human health impacts… [T]he top emitters of mercury in the U.S. (25 coal-fired plants) contribute nearly a third of all mercury emissions from the electric sector while only providing 8% of U.S. electricity. Nearly half of all U.S. river-miles and lake-acres were under water contamination advisories. This includes 100% of Great Lakes Coastal Waters Lake Acres. Eighty percent of all water contamination advisories in the U. S. were issued because of mercury contamination. (2011-03. Mercury Alert: Cleaning up Coal Plants for Healthier Lives).

2010-06-23 Canada’s Environment Minister Jim Prentice promised to phase out older coal-fired power plants to cut the country’s greenhouse gas emissions, moving toward gas fired plants. According to Prentice: “Our regulation will be very clear. When each coal-burning unit reaches the end of its economic life, it will have to meet the new standards or close down. No trading, no offsets, no credits.” The measure is expected to reduce greenhouse gas emissions in the country by 15 megatonnes. Along with the proposed regulations, Prentice also announced the government would contribute C$400 million ($384 million) for its share of a fund set up under the Copenhagen accord to help impoverished countries cope with climate change.

2010-10-14 “Coal remains a key component of Canada’s diverse energy supply picture, accounting for as much as 20% of electricity generation. Six of Canada’s provinces rely to some degree on coal to supply electrical power, with three (Nova Scotia, Saskatchewan and Alberta) almost fully reliant (NRCAN).”

2009 “Since 1999, mercury air emissions from U.S. coal-fired power plants have decreased by almost 27 percent: from over 48 tons in 1999 to 35 tons in 2009 (2011-03. Mercury Alert: Cleaning up Coal Plants for Healthier Lives).”

2009-09-09. Valupadasa, Prasad. 2009-09-09. “Alberta mercury regulation for coal-fired power plants.” Fuel Processing Technology. Volume 90, Issue 11, November 2009, Pages 1339-1342

Abstract: “Alberta stakeholders, through the Province’s Clean Air Strategic Alliance (CASA), identified mercury as the pollutant of highest priority for control from coal-fired power plants. Working with CASA, the Province finalized a new Mercury Emission from Coal-Fired Power Plants Regulation [Mercury Emissions From Coal-fired Power Plants Regulation, March 2006, Alberta Regulation 34/2006, Alberta Queen’s Printer, Regulation may be found at http://www.gov.ab.ca/qp.%5D [1]. The regulation places the province at the forefront of controlling mercury emissions from the sector on a global level by driving actions to reduce mercury emissions from existing coal-fired power plants in the province by at least 50% by 2010. Requirements also include continuous improvement provisions for further mercury reductions beyond 2010 based on technology advancement over the next 10 years. This paper summarises the regulation, the work the province undertook at the provincial and national level in its development, and status of implementation actions.”

2009 Alberta electricity companies, “TransAlta, ATCO, and EPCOR, teamed with GE Energy to conducted full-scale evaluation of sorbent injection in Sundance Unit 5 operated by TransAlta. Sundance Unit 5 fires a Western Canadian sub-bituminous coal and is equipped with cold-side ESP for PM control. Goals of the program were to evaluate: (1) the ability of achieving 70% or greater mercury reduction using activated carbon injection in long-term tests (30 days), (2) the effect of sorbent injection on ESP performance and opacity in long-term testing, and (3) the effects of combustion conditions on “natural” mercury removal in fly ash. DARCO Hg-LH was injected upstream of ESP at average injection rate of 2.1 lb/MMacf and achieved an average mercury removal of 80%. During the test, the sorbent injection rate was varied from 0.55 lb/MMacf to 8 lb/MMacf with mercury removals from 65% to > 95%. The continuous 30-day DARCO Hg-LH injection testing demonstrated that 70% mercury removal could be achieved at DARCO Hg-LH injection rate of 1.2 lb/MMacf. Tests were conducted to optimize combustion conditions to improve “native” mercury capture in the fly ash. Testing demonstrated that combustion conditions that resulted in reduction of NOx emissions also corresponded to reduced mercury emission. Mercury emissions were reduced by up to 50% and NOx emissions by up to 35% from baseline levels as a result of changes in the way Unit 5 operated. Integration of sorbent injection with combustion conditions reduced requirements for sorbent injection by 20–30%. Testing has demonstrated that sorbent injection did not have an effect on opacity and ESP performance. Keywords: Mercury; Sub-bituminous coal; Activated carbon; Sundance 5; Cold ESPs.”First full-scale demonstration of mercury control in Alberta.”

2008 Collectively, power plants were responsible for 72 percent of mercury air emissions in the U.S. (2011-03. Mercury Alert: Cleaning up Coal Plants for Healthier Lives).

2008-08-21 Saskatchewan Power Corporation (SaskPower) studied a Clean Coal Project. The intention would be to build a coal-fired plant that would effectively capture all carbon dioxide emissions. The cost of such a plant was so high that SaskPower decided to not construct such a plant until later. Instead the required capacity will be obtained from power plants fuelled by natural gas. It would have been The first coal-fueled plant capable of capturing and burying carbon dioxide. Canada, had committed C$1.4 billion ($1.34 billion) on the plant planned to incorporate oil recovery in the plans to offset costs, a different approach than the U.S., which canceled a similar plant in 2007 (Whitten:Canada to Move Ahead on `Clean-Coal’ Plant After U.S.’s Fails.)”

2006. Alberta: “Mercury Emission from Coal-Fired Power Plants Regulation.”

Valupadas, Prasad. 2006-03 “The New Fired Power from Coal Plants Regulation.” Excellent summary, easy to read graphics and clear mapping of issues.

2005-12 In Alberta these high-emitting coal-fired power plants had subsisting approvals governing them: 1 Battle River* 1512-02-00; 2 Sundance** 9830-01-00; 3 Sheerness 123-02-00; 4 Genesee 773-02-00; 5 H.R. Milner 9814-01-00; 6 Wabamun 10323-02-00; 7 Keephills 10324-01-00″ Mercury Emission from Coal-Fired Power Plants Regulation.”

2004 Secretariat of the Commission for Environmental Cooperation (CEC) of North America. North American Power Plant Air Emissions

2004 Canada’s GHG emissions from electricity generation in 2004 were 130 Mt. The overwhelming proportion, about 75%, was from the use of coal (NRCAN 2010).”

1996 The World Bank launched its Clean Coal Initiative.

Webliography and Bibliography

Whitten, David. 2008-08-21. “Canada to Move Ahead on `Clean-Coal’ Plant After U.S.’s Fails.” Bloomberg.

Brown, Terry. Lissianskib, Vitali. 2009-09-17. “First full-scale demonstration of mercury control in Alberta.” Fuel Processing Technology. Volume 90, Issue 11, November 2009, Pages 1412-1418.

McLinden, Chris. 2011-05-23-27. “An overview of ∧ air quality activities at Environment Canada.” Air Quality Research Division. Environment Canada
MACC Conference on Monitoring and Forecasting Atmospheric Composition. 23-27 May 2011

Valupadasa, Prasad. 2009-09-09. “Alberta mercury regulation for coal-fired power plants.” Fuel Processing Technology. Volume 90, Issue 11, November 2009, Pages 1339-1342

Abstract: “Alberta stakeholders, through the Province’s Clean Air Strategic Alliance (CASA), identified mercury as the pollutant of highest priority for control from coal-fired power plants. Working with CASA, the Province finalized a new Mercury Emission from Coal-Fired Power Plants Regulation [Mercury Emissions From Coal-fired Power Plants Regulation, March 2006, Alberta Regulation 34/2006, Alberta Queen’s Printer, Regulation may be found at http://www.gov.ab.ca/qp.%5D [1]. The regulation places the province at the forefront of controlling mercury emissions from the sector on a global level by driving actions to reduce mercury emissions from existing coal-fired power plants in the province by at least 50% by 2010. Requirements also include continuous improvement provisions for further mercury reductions beyond 2010 based on technology advancement over the next 10 years. This paper summarises the regulation, the work the province undertook at the provincial and national level in its development, and status of implementation actions.”

Emissions from coal-fired plants in general

Fact sheet

Coal-fired power plants are responsible for almost three-quarters (35 tons) of all mercury air emissions in the U.S. (2011-03. Mercury Alert: Cleaning up Coal Plants for Healthier Lives).

Environmental Defense Fund (EDF). 2011-03. (Mercury Alert: Cleaning up Coal Plants for Healthier Lives).

pings:
http://www.edf.org/documents/11661_mercury-alert-cleaning-up-coal-plants.pdf
http://www.sciencedirect.com/science/article/pii/S0378382009002343
http://www.casahome.org
http://www.cec.org/Storage/56/4876_PowerPlant_AirEmission_en.pdf
http://www.environmentconference.alberta.ca/docs/Session-28_presentation-A.pdf
http://www.qp.alberta.ca/documents/Regs/2006_034.pdf
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=av7cb8ehp7ZU&refer=canada
http://www.cmc-nce.ca/media-releases/2011/03/22/government-of-canada-backs-cmc-clean-coal-power-generation-project/
http://www.scientificamerican.com/article.cfm?id=cleaning-up-the-dirtiest-coal-fired-plants
http://www.leaderpost.com/technology/Clean%20coal%20plan%20global%20first/4674413/story.html
http://www.cmc-nce.ca/media-releases/2011/03/22/government-of-canada-backs-cmc-clean-coal-power-generation-project

categories: environment, GHG, emissions,

tags: Ecology, Environment, Social History Timelines, Activated carbon, Air pollution, Air Quality, alberta, Canada, Carbon Management Canada (CMC), clean coal technology, CO2, Combustion, Fly ash, Greenhouse Gases, Mercury, mercury-emitting, mercury-emitting coal-fired utilities, Nitrogen oxide, NOx, Particulate Matter, Performance, SO2, SO3, Sorbent, Subbituminous coal, Trace Elements


Under construction Updated January 2013

Recent controversies surrounding the construction of inter-provincial and international pipelines to transport bitumen from the oil sands have raised questions about the reasons Canada does not develop an even more integrated value-added oil industry. Now that profits have soared, there has been a pulling back of taxation easing and a decrease in enthusiasm for what many perceive as subsidies for the oil industry. In the report entitled “Public Services for Ontarians: a Path to Sustainability and Excellence” by the Commission on the Reform of Ontario’s Public Services, committee chair, economist Don Drummond, lamented the lack of federal support for Ontario’s green energy initiatives, while the oil and gas sectors received $1.4 billion in annual subsidies. However, there is at the same time, an aggressive push towards relaxing environmental concerns to allow for expansion of the already impressive network of pipelines to expand markets for bitumen with a focus on Asia.

The Northern Gateway Project Joint Review Panel Hearings, examining “the environmental viability of the proposed $6-billion twin pipeline project” continue through January and February 2013 in Victoria and Vancouver, BC. Protests continue and the review has been labelled as undemocratic and alienating as observers watch the proceedings on screen in “dark and dreary rooms” separated from presenters in an effort to maintain order and respect. While the thousands of interveners protesting are successful in capturing media attention, there is a sense that pipeline expansion is inevitable as the oil industry and federal and Alberta governments align in their focus on increasing bitumen production and access to markets (west, east, south and even north). Faced with a boom in North American oil production, a shale and oil sands revolution and lack of pipeline capacity the very low price of WCS at $57 US a barrel suffers a 36% differential against WTI. With current North American crude oil markets, Mark Corey argued that once crude reaches tidewater, this waterborne crude will have higher value than landlocked crude. Getting tidewater access pricing point depends on increased pipeline access.

John Carruthers, President, Enbridge Northern Gateway Pipelines and Enbridge’s panel of well known energy economists including Calgarian Bob Mansell and Muse Consultants were cross-examined by Alberta Federation of Labour president Gil McGowan. McGowan argued that there would be increased job loss if 585,000 barrels of bitumen a day were exported to China rather than upgraded and refined in Canada.  Mansell argued Alberta does not have strong, major consumer markets for refined products and there is therefore no market incentive for large-scale refining. The NDP leader is promoting pipelines to eastern Canadian refineries.  A report Muse Consulting claims that as crude prices rise Canadian crude producers revenue increases but so does the cost of feedstock to Canadian refiners using western crude wherever they might be reducing the benefit of Canadian crude to Canadian refineries by about 25 per cent.  (Pratt, Sheila. 2012-09-05. “Enbridge pipeline hearing focuses on economic benefits.” Edmonton Journal.)

At the February, 2012 parliamentary session on “Current and Future State of Oil and Gas Pipelines and Refining Capacity in Canada” Michael Ervin of Kent Group argues against the expansion of oil refineries claiming there is a trend towards decreasing the use of gasoline in North America, the US has made massive cuts in refineries, the BRIC countries will continue to building massive oil refineries and Albertan/Canadian refineries will be unable to compete at a global level.

“I sometimes hear speculation that the building of more Canadian refineries would lower the price of wholesale and retail fuels for Canadian consumers. It is important to understand, however, that Canadian refineries are really just part of a North American capacity pool, and lower wholesale prices in Canada brought about by more capacity would quickly attract U.S. wholesale buyers, thus negating any hopes of sustained lower prices in Canada (Ervin 2012-02).”

“According to Michael Ervin, while the Keystone XL and Northern Gateway proposals are important to ensure continued growth in Canada’s upstream industry, particularly the oil sands, they would reduce the competitiveness of Canadian refineries that currently process crude oil from Western Canada.63 Furthermore, Joseph Gargiso, Administrative Vice-President of Communications at the Energy and Paperworkers Union of Canada, told the Committee (with reference to estimates by economist Michael McCracken) that “for every 400,000 barrels of raw bitumen exported out of the country for upgrading and refining, 18,000 [well-paid] jobs in Canada will be lost […],” not including jobs related to downstream activities, such as manufacturing.64″

Standing Senate Committee on Energy, the Environment and Natural Resources tabled their report entitled “Now or Never”  in which they recommended shipping crude oil from the west to the east of Canada:

<blockquote> “The committee also looks favourably upon the prospect of shipping western Canadian crude to the East for refining and marketing in Ontario,
Quebec, Atlantic Canada and international markets. This idea has long been touted as an obvious way to boost Eastern Canadian energy security and advance nation-building, but it has repeatedly been delayed because of inadequate market conditions. However, the economics for piping oil to the East have improved considerably, particularly because higher prices can be achieved for oil in Eastern Canada than in the American Midwest.” (Standing Senate Committee on Energy, the Environment and Natural Resources. July 2012. Now or Never: Canada Must Act Urgently to Seize its Place in the New Energy World Order. </blockquote>

For most of us it is confusing to attempt to follow the flow of crude oil through complicated networks of pipelines from north to south (or west to east) then back again as much more expensive, products refined in the United States? Or will be purchasing refined products from the eastern United States from refineries that process crude oil imported from Saudi Arabia, Africa and Venezuela? As China buys more of the oil sands and China and India complete their super refineries, will the gasoline in Canadian pumps will be coming from there, an even cheaper source than the United States? Does that mean bitumen from northern Alberta will traverse British Columbia/Alberta borders, then cross the ocean twice to return to us as refined products that cost less to the Canadian consumer and the environment? What are the guarantees that we will have access to oil and its byproducts in future markets when 40% of the oil sands industry is already foreign-owned and managed?


“According to the Canadian Energy Research Institute, as oil sands production grows, employment in Canada as a result of new oil sands investments in production and processing is expected to grow from 75,000 jobs in 2010 to 905,000 jobs in 2035, with 126,000 jobs being sourced in provinces other than Alberta. New oil sands development is expected to contribute more than $2.1 trillion (2010 dollars) to the Canadian economy over the next 25 years – about $84 billion per year. The oil sands industry will pay an estimated $766 billion in provincial and federal taxes and royalties in the same period, which contributes to quality of life and services across Canada (CAPP. 2011-09-22. “Oil sands a Canadian job creator; domestic and U.S. processing needed.” )”
CAPP

Integrated firms, such as Calgary-based Husky (controlled by Hong Kong billionaire Li Ka-shing) with its crude storage system in Hardisty, pipelines, upgrader and refineries, use the cheaper oil sands crude oil as refinery and upgrader feedstock. The mitigation potential of integrated firms is substantial. Husky’s net earnings increased by 22% since April 2011 in spite of the volatility of price of crude. The Calgary-based American integrated company, Imperial Oil, with its refineries posted a 30% increase in earnings in the first quarter of 2012 (Calgary Herald 2012-04).

In North America, the benchmark crude oil price is West Texas Intermediate (“WTI”), a high-quality, light-weight, low-sulphur, sweet crude; WTI is the underlying commodity of the (NYME) New York Mercantile Exchange’s oil futures contracts. These properties make it excellent for making gasoline, which is why it is the major benchmark of crude oil in the Americas. WTI is generally priced at about a $5-6 per barrel premium to the OPEC Basket Price and about $1-2 per-barrel premium to Brent (Amadeo February 13, 2012).” Western Canadian Select (WCS) are priced/discounted against the the price of West Texas Intermediate (WTI) crude oil (http://www.baytex.ab.ca/operations/marketing/benchmark-heavy-oil-prices.cfm). According to reuters, in February 2013 WTI was at $93; WCS at $57 (a 36% discount) and Brent was $111 per barrel. In October 2012 WTI was at US$96.21 a barrel and WCS was at US$74.21 a $22.00 discount or differential which is 22.8%. (http://www.baytex.ab.ca/files/pdf/Operations/Historical%20WCS%20Pricing_October%202012.pdf) In December 18, 2012 WCS was $55 US per barrel with $33 US discount relative to WTI grade at $88 US. The world price for light sweet Brent Crude was just shy of $109 per barrel. (Kleiss, Karen. 2012-12-19. “Plunging oil price a long-term concern for Alberta.Edmonton Journal). Lower prices, which are also related to seasonal events, are consistently tied to over supply and inadequate transportation infrastructure to suitable refineries.

As one question appears to be answered another is raised as issues concerning the oil industry cannot be disentangled from questions and concerns about complex financial instruments that have changed basic concepts of economics globally. Public policy regarding energy strategies needs to balance concerns about the economy in general, employment, transportation and the environment.

“[T]he government’s focus began to really sharpen in the mid-1990s in the wake of several significant accidents and the industry’s response […] of a broad commitment to risk management. The ebb and flow of legislative and regulatory mandates is directly tied to accidents, with the regulatory tide becoming ever higher when the accidents come in groups, as they did in 1994 and 1995, 2000 and 2001, and most recently, [in 2010].” Tenley, George. 2011-04-04/07. Opening Address. Managing Pipeline Integrity. 11th Workshop. Banff, AB.

How long will it take for greener energies to be developed gradually replacing our thirst for oil? How green will they really be? How deep are the changes you are willing to make? In the interim, how can we manage risks inherent in the energy industries?

What if there is an oil shortage or crisis?

“Can Canada replace the oil it imports with resources from its own territory if our suppliers become unreliable, or if an oil crisis becomes a reality? The answer is a resounding NO! Under NAFTA, we must keep sending the same proportion of our oil to the United States no matter what happens on the world stage. Article 605 of NAFTA only allows us to reduce exports to the U.S. if we cut our domestic supplies by the same proportion. Furthermore, we can’t charge the U.S. a higher price than the one
in Canada and we can’t disrupt or restrict the normal channels of supply. What are those normal channels? A huge network of 16,000 km of pipelines sends Canadian oil south, mainly to the American mid-west. At the moment, no pipeline takes Alberta’s oil to eastern Canada (Council of Canadians).”

According to most North American economists and the business community the the responsibility of the CEO’s of incorporated companies such as the oil sands giants, which include super major oil companies (who represent more than 80% of the oil sands production in Canada: BP Canada Energy Company (British multinational oil and gas company headquartered in London, United Kingdom), Canadian Natural Resources Limited, Cenovus Energy Inc., ConocoPhillips Canada Resources Corp. (American multinational energy), Devon Canada Corporation(largest U.S.-based independent natural gas and oil producer), Imperial Oil (controlled by US based ExxonMobil, which owns 69.6% of its stock), Nexen Inc., Shell Canada Energy(Canada-based subsidiary of Royal Dutch Shell, one of the largest multinational oil companies in the world), Statoil Canada Ltd., Suncor Energy Inc.(Canadian), Teck Resources Limited (Canadian), Total E&P Canada Ltd.)(French multinational oil and gas company, one of the six “Supermajor” oil companies in the world), the major players in the oil refining industry (Imperial Oil, Husky (controlled by Hong Kong billionaire Li Ka-shing) Harvest (controlled by state-owned Korea National Oil Corporation (KNOC), Chevron (American multinational energy corporation, one of six super majors), Suncor (Canadian), Shell (Canada-based subsidiary of Royal Dutch Shell, one of the largest multinational oil companies in the world), NOVA Chemicals, Ultramar (Canadian), Irving Oil (private Canadian) and the oil pipeline industry (TransCanada (Canadian), Enbridge (Canadian), Seaway), is to increase the market value of stocks owned by shareholders.

The Canadian Council of Chief Executives (CCCE) an influential public policy advocate association composed of the CEOs of 150 leading Canadian companies, CEOs, who “collectively administer C$4.5 trillion in assets, have annual revenues in excess of C$850 billion, and are responsible for the vast majority of Canada’s exports, investment, research and development, and training.” In 2012 they hosted a series entitled “Canada in the Pacific Century: Ensuring Canada’s Success in a Rebalanced Global Economy.” In the session in Calgary December, 2012 there was much celebratory congratulations on the federal decision to approve $15B Chinese takeover of Nexen. Alberta’s Energy Minister repeats again his call to get bitumen to tidewater or saltwater ports so Alberta can get “world price” instead of suffering increasing price differentials against WTI. Because Alberta is landlocked, not at tidewater, the oil industry loses $15 – $20 billion in revenues annually. He claims the lost oil revenue is reflected in lost provincial royalties although Alberta receives Bitumen Royalty-in-Kind (BRIK) by which the government has the option to take its royalty share either in cash or in kind. “Currently, the government takes its share of conventional crude oil production in kind and collects its royalty share for other resources in cash. The decision to exercise the in-kind option for bitumen was identified in October 2007 as a way for the Crown to use its share of bitumen strategically to supply potential upgraders and refineries in Alberta, and to optimize its royalty share by marketing those volumes (Government of Alberta. Energy. BRIK. FAQ).”.

Pipelines and/or refineries? What are the environmental costs for both?

Corrosion, poor planning and response

“The evolution of safety regulation in North America has moved to a new focus; namely, the total corporate responsibility for every facet of the operation, including the integrity management plan and the actions taken under it. This strong focus on the “management” side of “integrity management” has occurred over a relatively short timeframe, and has been made operational in the wake of serious industry sins of omission at the highest levels of corporate leadership.” Tenley, George. 2011-04-04/07. Opening Address. Managing Pipeline Integrity. 11th Workshop. Banff, AB.

Pipelines are aging. Newer pipelines can have monitoring devices built in but these new smart technologies are difficult to adapt to pipelines built 50 years ago. In its 2010 field surveillance report, the Energy Resources Conservation Board (ERCB), an independent agency of the Government of Alberta, recorded “687 pipeline failures across the province” (ERCB. 2011-11. ST57-2011 “Field Surveillance and Operations Branch Provincial Summary 2010” p. 16 http://www.ercb.ca/docs/products/STs/ST57-2011.pdf).” (626 were leaks/hits, 18 were ruptures, and 43 were hits with no release (ERCB 2010).

There is an intense race to add new lines, reverse flows and repair old pipelines as oil sands’ projects increase production. There are three major pipeline projects proposed in British Columbia: Enbridge’s Northern Gateway Pipeline, the expansion of Kinder Morgan’s Trans Mountain Pipeline, and the Pacific Trails Pipeline by Apache, Encana and EOG Resources. There is currently an over production of light and heavy Canadian crude varieties and a pipeline bottleneck in the American Midwest. Refineries are closed for maintenance or expediency and Canadian crude is steeply discounted against WTI (Calgary Herald 2012-04). There is also a heightened competition between Alberta’s oil sands and North Dakota’s Bakken formation “tight” oil for pipeline priorities. Oil refineries are costly to build and/or refurbish and the market is considered to be “mature.” International agreements appear to limit the ability of nation-states to make logical, reasonable decisions.

“One of the key barriers identified was the risk-averse nature of the [oil] industry. Unless industry is given a compelling reason to do so, such as fiscal or regulatory pressure from the government, companies are unlikely to invest in new refining capacity in the mature North American market. Rather, they will invest capital wherever in the world that returns are highest. According to industry, government will have to play an instrumental role if the vision is to be achieved (Laureshen, Clark and Du Plessis 2005:15).

Alberta alone has 400,000 km of provincially regulated pipelines. (CBC. 2012-07-20. “Alberta pledges pipeline safety review: 3-pronged review to be carried out by independent party, energy minister says.”) see map image here mapping Alberta’s pipelines. This Financial Post map is interactive.

“In order to transport bitumen to refineries equipped to process it, bitumen must be blended with a diluent, traditionally condensate, to meet pipeline specifications for density and viscosity (NEB).” Dilbit: Growth in non-upgraded bitumen supply will increase the demand for diluent required to facilitate pipeline transportation to market. The Board’s outlook for traditional diluent (i.e., condensate) projects little growth in supply through to 2015, while demand under current operational conditions would be
expected to rise by approximately 50 000 m3 /d (315 mb/d). Additional supply could be made available by directing condensate used for other purposes to diluent usage, but the majority of the gap must be filled through the use of substitutes. Several opportunities exist for substitutes including refinery naphtha and conventional light oil; however, the most suitable solution, due to its availability, is synthetic crude oil (SCO) ( (NEB 2004:12).”

Pipelines: Internal Corrosion

“A chief concern about the transport of Canadian crude through the proposed Keystone XL pipeline is a claim that dilbit poses more release risks than other types of crude. In particular, the committee will examine whether there is evidence that dilbit has corrosive or erosive characteristics that elevate its potential for release from transmission pipelines when compared with other crude oils. Should the committee conclude there is no evidence of an increased potential for release, it will report this finding to the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) by spring 2013 (Institute for Corrosion Ohio University).”

“Pipeline integrity is an increasing challenge to the energy industry as the infrastructure is aging, and new field developments are introduced in both deep and remote areas of the world (source).”

Although the industry claims that diluted bitumen (dilbit) is no more corrosive than conventional crude, older pipelines are at higher risk because water that separates from dilbit tends to collect and start corroding (Linda Daugherty, US Pipeline and Hazardous Materials Safety Administration (PHMSA)’s deputy associate administrator for policy and programs).

“As a starting point, the committee might want to reference similar types of crudes,” suggested Linda Daugherty, US Pipeline and Hazardous Materials Safety Administration (PHMSA)’s deputy associate administrator for policy and programs. “Age also is a definite factor. Many pipelines were installed 40 years ago and have sharp turns where water which has separated from dilbit would tend to collect and start corrosion (Snow, Nick. 2012-07-24. “Diluted bitumen, heavy crudes are similar, NAS panel told.” Oil and Gas Journal. OGJ Washington Editor.).”

“Internal corrosion is a leading cause of pipeline failure — and one of the most difficult to detect.” Monitoring internal corrosion of pipelines is both “challenging and expensive” costing “several billion dollars annually in the U.S. alone.” Internal corrosion of pipelines can occur when moisture mixes with impurities (salts, like chlorine, and sulphur compounds). (source Bill Shaw, engineering professor at the University of Calgary and director of the Pipeline Engineering Centre, which studies corrosion and monitoring).

“Problems mainly arise when water that has not been removed from a crude before it goes into a pipeline begins to separate and collects at points along the bottom of the pipe’s interior, he explained. Dissolved gases—primarily carbon dioxide—and oil extracts such as organic acids also can influence corrosion rates, Moghissi said. Running a pig through the pipeline probably is the most effective corrosion inhibiter, although chemicals also can help, he told the panel.”

Tank Truck transport versus Pipeline Transport?

Canadian Energy Pipeline Association President Brenda Kenny argues that it “would need five and a half million trucks a year to replace the oil pipeline network in Canada  (O’Neil, Peter. 2012-08-09. “Beleaguered pipeline industry vows to rally around PR campaign.” Postmedia News).”

“Until the early 1980s, bitumen was trucked to asphalt refiners in Alberta and Saskatchewan. Growing volumes through the early 1980s supported the development of pipelines from producing areas to Edmonton, from where the bitumen could access high-conversion refineries and broader asphalt markets. Between 1982 and 1985 Alberta Energy Company (AEC) built a pipeline system designed to move bitumen blend from Cold Lake to Edmonton and to ship diluent to Cold Lake from Edmonton (Walker, Ian C. 1998. “Marketing Challenges for Canadian Bitumen.” Imperial Oil, Calgary, Alberta, Canada).”

Truck transport is more expensive to the oil industry than pipelines. (McKibben,M. J.; Gillies, R. G. 2000. “Predicting pressure gradients in heavy oil—water pipelines.” “Because truck transport is expensive, pipeline transport of heavy crude oil is of interest.”

By 2003 there was concern that the transportation of crude bitumen would face huge obstacles. “Road conditions, weather problems, and fuel prices are some of the other issues that hauling companies have to deal with routinely. Although the preferred mode of transporting crude bitumen is pipelining wherever possible, the Alberta Utilities and Energy Board estimates that unless there is a dramatic technological breakthrough, or a substantial increase in the price of crude bitumen, pipelining of this product will not be technically or economically feasible within the foreseeable future (Laverty, K. 2003-04-07. “Super trucks: Loads grow so fast that the oil industry’s ‘transport architects’ stopped keeping score on size records.” Oilweek Magazine. Vol. 54. No. 14. page(s) 42-46).

Alberta Provincial Highway No. 63 built in 1970 is a 240-kilometre-long, two-lane north–south highway road connecting Fort McMurray and the Oil Sands bitumen mine sites to southern Alberta. According to Syncrude Canada, Highway 63 probably ferries the highest tonnage per mile of any road in Canada and is “inadequate for the traffic that uses it.” Plans are underway (2012) to expand it into a four-lane divided highway to accommodate the heavy traffic of logging trucks, SUVs, semi-trailers, buses and tanker trucks including convoys of extra-wide loads carrying tires, turbines and cokers (source). There are numerous fatal accidents on the highway as tankers and logging trucks slow traffic to a crawl while oil workers race to get in and out of the site. The expansion would cost c. one-billion-dollar and the province is considering using toll booths to place the cost of the oil sands’ driven needs on the shoulders of the users: the oil sands industry. This would increase the cost of trucking oil by tankers and intensify the push for more pipeline capacity.

Among the list of complaints received by the Energy Resources Conservation Board (ERCB) regarding the oil and gas industries, complaints about truck transport are high on the list (Energy Resources Conservation Board (ERCB). 2011-11. ST57-2011 “Field Surveillance and Operations Branch Provincial Summary 2010” p. 16 http://www.ercb.ca/docs/products/STs/ST57-2011.pdf).”

In his paper on bio-oil (not heavy oil) Pootakham claimed there was less of an environmental footprint if pipelines not trucks were used as transportation (Epub. Pootakham T, Kumar A. 2010-01. “A comparison of pipeline versus truck transport of bio-oil.” 101(1):414-21.
Pootakham T, Kumar A. 2009-08-21. “A comparison of pipeline versus truck transport of bio-oil.“).
Epub. Pootakham T, Kumar A. 2010-01. “A comparison of pipeline versus truck transport of bio-oil.” 101(1):414-21.

There has been a call for an oil industry-financed railway from Fort McMurray to Edmonton since at least 2005. Since 2009 Calgary-based Canadian Pacific Railway Ltd. carry North Dakota Bakken to refineries to compensate for pipeline bottlenecks. “With each tank car containing 650 barrels of oil, that’s 126,000 barrels a day — a significant pipeline on rail (Cattaneo, Claudia. 2012-03-02. “As pipelines stall, railways keep oil flowing.” Financial Post).”

In the same Financial Post article (2012-03-02),

“CN, in response to customer demand, is moving crude (i.e., heavy crude, light crude, pure bitumen) from areas in Western Canada to various markets,” it said in an emailed statement. “CN has also been providing truck-to-rail transportation solutions for crude oil, where CN is loading directly from truck to rail.”

Oil industry: not subsidies but federal and provincial incentives

The oil industry has received various forms of federal and provincial incentives in the years prior to the boom. For example, the governments provide funds for research on improved technologies and methodologies for extraction, land recovery, etc. Companies who receive this multi-million dollar funding are not obligated to use the technologies they develop if the profit-margins would be negatively affected by their implementation. How many millions of public funds have been quietly assigned to this research?

From where does Canada import its oil?

“Most Canadians are under the impression that we do not need to worry about our energy security. We see ourselves as a country rich in oil, and we assume that our own resources are available to us for consumption. That assumption is incorrect. Canadians do need to ask where their oil comes from because it doesn’t necessarily come from Canada! Canada imports more than half of the crude oil it needs. We purchase around 55 per cent of our oil from countries such as Algeria, Saudi Arabia and Venezuela. We are also turning increasingly toward new sources including Russian and African producers. Canadians should question whether we can count on those suppliers for a steady supply of oil (Council of Canadians).”

This debate unfolds at a time when Canadians consume about 1.8 million barrels of oil a day according to Peter Boag, president of the Canadian Petroleum Products Institute (Lindell, 2012-01-31). While Boag also claims that Canada’s 19 refineries produce two million barrels of day, and are only operating at 80% capacity, he neglects to mention that many Canadian refineries are older, smaller, inefficient and not designed for bitumen. The product Canadians produce is exported and Canada relies on U. S. refineries to supply gasoline and airline fuel for example. Eastern refineries rely on oil imported from Saudi Arabia, Africa and Venezuela, which are much more volatile than WTI prices for geopolitical reasons. In March 2012 the Brent-WTI differential continued to negatively impact the price of bitumen from the oil sands. Western Canada Select was priced at a $35.50 U. S. discount to West Texas Intermediate (WTI) (37% below the U.S. crude), which itself trades at a substantial discount to the Brent crude oil prices. Brent crude oil prices rose (2012-03-21) to a record high of near $125 per barrel (Hussain, Yadullah. 2012-03-21. “Oil industry may lose $18B a year in crude price discounts: CIBC.Financial Post).

The market value of Western Canada Select

The inadequacy of the current pipeline national and Canada-U.S. networks also decrease the market value of Western Canada Select. Until TransCanada’s Keystone XL portion is operational, there is a bottle neck which limits the movement of bitumen to U.S. refineries capable of upgrading the heavy oil. Some predict that this pipeline extension will not be in place until late 2013 and until then the Brent-WTI differential will remain.

There is a request under review for a west-east reversal and expansion of the Seaway pipelines which would also positively impact the Alberta’s oil (Hussain, Yadullah. 2012-03-21. “Oil industry may lose $18B a year in crude price discounts: CIBC.Financial Post.) “Ontario’s oil comes from Western Canada, but it is sent first to the United States to be refined before being delivered to the province.”

“The heightened pressure on lawmakers to get more revenue for Alberta’s bitumen follows recent calls to address a predicted decline in synthetic oil produced in the province, as a percentage of total bitumen output. The Energy Resources Conservation Board predicts 47% of bitumen produced in the province in 2020 will be upgraded to light oil, down from 58% in 2010. In 2008, the province had set a goal of 66%. The regulator’s summer forecast had some eyeing jobs and tax revenue attached to additional upgraders crying out for government actionPenty 2011-11-25.

Synthetic Crude Oil Production: “In 2010, all crude bitumen produced from mining, as well as a small portion of in situ production (about 11 per cent), was upgraded in Alberta, yielding 46.1 million m3 (290 million barrels) of SCO. About 58 per cent of total crude bitumen produced in Alberta was upgraded in the province in 2010. By 2020, SCO production is forecast to almost double to 81.5 million m3 (513 million barrels). While this is a significant increase compared to 2010, it is expected that only 47 per cent of total crude bitumen produced in Alberta will be upgraded in the province by the end of the forecast period because of an expected narrow price differential of bitumen relative to light crude oil. Over the next 10 years, mined bitumen is projected to continue to be the primary source of the bitumen upgraded to SCO in Alberta. However, it is projected that bitumen from in situ production will be increasingly upgraded to SCO in the province. The portion of in situ production upgraded in the province will increase from 11 per cent in 2010 to 13 per cent by the end of the forecast period.” ERCB. 2011-06. “ST98-2011 Alberta’s Energy Reserves 2010 and Supply/Demand Outlook 2011-2020.” p. 6.

There is a call for keeping more employment in Canada and for expanded use of eastern oil refineries.

“A poll conducted by ThinkHQ Public Affairs showed 81% support in Alberta for the government taking steps to increase the amount of oilsands upgrading and refining done in the province, with the support cutting across partisan lines. The survey showed 73% support for the idea of putting higher royalties on the export of raw bitumen and 56% support for tax incentives for private investment. Support dropped under 50% for a Crown corporation to build and operate upgraders, operating subsidies to private sector upgraders and investing tax dollars to help build private sector projects (Wood 2012-01-26).”

Questions and concerns about the race to sell bitumen using today’s water-hungry and natural-gas hungry technologies, are being raised.  There is a call to slow down the process. However, the price of natural gas has fallen dramatically and “natural gas is a key raw material for refineries, which use it predominantly as a source of fuel to operate. Hydraulic fracturing methods have significantly increased the supply of natural gas in the U.S.” “Natural gas is a market that has been turned upside down in the last few years with the development of technology for extracting gas from shale beds with hydraulic fracturing. The new resources made available through fracking have caused the price to drop from $8 for a million BTUs to between $4 and $5 per MBTU. The U.S. has been in the lead when it comes to exploiting shale gas (Kanellos 2011-06-09).

“In Natural Gas, U.S. Will Move From Abundance to Imports.” Canada is the only OECD nation that does not have a national energy plan which complicates the environmental and economic issues related to energy. Ever since Prime Minister Trudeau’s Energy Plan almost divided the country along the east-west axis, no Prime Minister has dared to touch the topic. In the Canadian system, provinces control energy while the federal government controls pipelines. Canadian cannot look to the risk-averse, profit-motivated oil industry to consider long-term resource development, investment of profits towards infrastructure beyond extraction, transportation and minor upgrading. It is only through federal-provincial and in some cases regional pressure that the oil industry could be pressured/encouraged to build oil refineries in Canada to develop an even more integrated oil industry. The federal government needs to take the lead. In March 2012 Alberta Premier Alison Redford began to discuss openly the possibility of a Canadian energy strategy as opposed to a national energy plan. Phase 4 of TransCanada’s Keystone pipeline project met major hurdles at the U. S. federal level in late 2011. Alberta Premier Alison Redford says her government will take a hands-off approach to the increased upgrading of bitumen in the province as Alberta’s oilsands production continues to ramp up (Wood 2012-01-26).”

“With the energy spotlight focused recently on the proposed Keystone XL and Northern Gateway pipelines that would ship raw bitumen to the United States and Pacific Coast, respectively, there have been growing calls for increasing the capacity in Alberta to upgrade and refine oilsands into products like synthetic crude, gasoline and diesel.” “Redford said it is up to the market and energy industry to determine opportunities for more processing (if it makes economic sense) — not the government. “If we have wheat, we’re not going to say to people you can only export bread.” “Redford remains committed to the planned North West upgrader, but there are no other projects in line for provincial involvement.”(Wood 2012-01-26).”

Even though “we would get far more value for our resources if we were to ship refined product,” Canada only refines about 50% of oil and the rest goes to refineries in the United States. Increases in oil refinery facility size and improvements in efficiencies have offset much of the lost physical capacity of the industry.

Concerns about state-capitalism and oil sands takeover by state-owned companies (SOE)

See also Canada in the Pacific Century

Mintz, Jack. 2012-07-24. “We should welcome investment, but state-owned firms like China National Offshore Oil Corp (CNOOC) — now targeting Nexen — are a different matter.” Financial Post.

“The acquisition of Canadian companies by state-owned companies or sovereign wealth funds (whether from China, Russia or elsewhere), is a less clear-cut matter. Should Canada permit the nationalization of its business sector through foreign state ownership? … Yet, there are potential downfalls, particularly related to China National Offshore Oil Corp (CNOOC) being state-owned rather than a privatized business. Unless a government wishes its state-owned enterprises to operate strictly according to commercial criteria, a takeover of a private company by a State Owned Enterprise (SOE) could result in the target performing less efficiently since other criteria besides value maximization undermine profitability and productivity… recent papers published on both Canadian and international experiences conclude that state-owned enterprises perform less efficiently than privatized companies. .. The CNOOC takeover of Nexen will not be the last of similar potential acquisitions of Canadian businesses by foreign state-owned entities. Ottawa will need a clear policy to determine the suitability of these takeovers and to apply it readily.”

While it is widely acknowledged that Canada needs to diversify and depend less on the United States as its major market, there are concerns about basing the Asian market on state-owned corporations. The Economist revealed some disturbing trends in this emerging form of capitalism: state capitalism. Sixteen of the largest twenty global oil companies are state owned, and together control over 80 % of oil reserves. Their bottom line is profit and have no concern for Canada’s long-term economic health, employment, environmental impact, etc.

“Investments by China’s big energy State Owned Enterprises (SEOs) – China National Offshore Oil Corp (CNOOC), Sinopec and CNPC – in Canada’s oilsands and unconventional gas sectors since 2010 have totalled at least $25 billion… [C]oncerns about SOEs range from unlawful technology transfers to preferred access to bank capital and below-market interest rates that suggest the companies don’t play by the same economic rules as their competitors (Ewan. 2012-08. “Canada Riding Historic Wave Chinese Investment.” Calgary Herald 2012).

CNOOK “is an $89 billion company with oil and gas assets in Indonesia, Iraq, Australia, Africa, North and South America, as well as China… The $15 billion bid by China National Offshore Oil Corp (CNOOC) to buy Canada’s Nexen, Inc will help the Chinese state giant gain the expertise to drill in deep, disputed waters of the South China Sea without relying on risk-averse foreign firms (Eckert, Paul. 2012-08-04. CNOOC-Nexen deal seen helping China’s South China Sea thrust. Reuters).” By 2018-2023 China would probably have the experience, knowledge and technologies like those Nexen already has to “set up and maintain stable rigs in 5,000-10,000 feet of ocean water” and “drill 10,000-18,000 feet deep in sediment (Eckert 2012-08-04)”. How might China’s access to an expanded South China Sea deep drilling, affect the future of oil sands bitumen market and the Northern Gateway pipeline in five or ten years?

Why does Canada not have a cohesive national energy strategy?

“Without a Canadian Energy Strategy – a strategy that will give Canadians security of their energy supplies, guaranteed access to energy reserves in times of need, and strong policies that protect our environment and focus on fi nding alternative, less harmful energy solutions – our country will continue to be a victim of an energy gold rush. Politicians cannot let corporations and the market set the agenda, focusing on big business needs, and privatizing public services, while ignoring the energy security needs of Canadians (Council of Canadians).”

We need a strong government position yet we do not have a cohesive energy strategy. The oil industry is a risk-averse industry and at this time there is an unwillingness to develop infrastructure beyond extraction and minimal upgrading. In the United States refineries are being closed. The proposed $6 billion Shell refinery was cancelled in 2009 because of  “the current project execution environment, market conditions and the current inflationary pressures across the oil and gas industry.” Although greener technologies are being developed, it is estimated that we will continue to be dependent on fossil fuels until c. 2040. Why not stretch out our use of these invaluable resources? There are opportunities for job creation through the development and implementation of  innovative marketable technologies that will make the extraction process more efficient, environmentally friendly and financially feasible? Federal funds have supported much research in the field that never sees the light of day because the oil industry, like the ocean liner, can’t adapt quickly to change. Enbridge is in the process of applying to the National Energy Board to reverse the flow in 35-year-old Line 9 Sarnia/Montreal pipeline to the original direction for which it was designed in 1975 to take western Canadian crude to Montreal refineries. “It would give Quebec and Atlantic Canada – which currently get 80 per cent of their crude from Europe, Africa and the Middle East – a reliable source of domestic oil. As Joseph Gargiso of the Communications, Energy and Paperworker’s Union said in support of the line reversal: “A country that is blessed with petroleum resources like Canada should first and foremost assure that the country as a whole has access to a guaranteed supply.” The pipeline reversal would also allow the Alberta oil industry to get a better price for its product (Calgary Herald 2012).”

Where does Canada’s oil come from?

“Canadians need a national energy strategy – one that puts citizens’ interests ahead of multi-billion-dollar oil companies. Right now, our country does not have a national energy strategy that addresses where our energy comes from, where it is going, or the high price of environmental devastation that comes with producing it. For nearly 20 years, Canada has lived with free trade agreements and free-market rules that are used to ensure that our energy resources keep fl owing out of the country with little or no direction from government. As one of the coldest countries on earth, Canada’s energy security is decided by the whims of the United States, the markets and the big oil companies.”

How many jobs do the oil sands provide?

Government of Alberta fact sheet (2011-02) entitled “Economic Activity in Alberta” claimed that, “Almost 139,000 Albertans [were] employed in Alberta’s mining and oil and gas extraction sectors. .. [O]n average over the next 25 years, oil sands are forecast by Canadian Energy Research Institute (CERI) to require more than 450,000 annual work positions across Canada. This totals more than 11.4 million person-years of employment.”
For example Husky has 4,380 permanent employees (Husky Annual Report 2010);

Why does Canada not have more oil refineries?

The Canadian Petroleum Products Institute (CPPI) commissioned The Conference Board of Canada study entitled “Canada’s Refining Sector: An Important Contributor Facing Global Challenges” . Pedro Antunes, (2011-10-31) argued that even if the upstream (oil and gas exploration and production) segment of the industry continues its robust expansion in Canada, “the future economic benefits, job creation, and profits from oil refining and processing are much less assured (Crawford, Todd. 2011-10-31. “Canada’s Refining Sector: An Important Contributor Facing Global Challenges.” The Conference Board of Canada. Commissioned by The Canadian Petroleum Products Institute (CPPI). 52 pages.

Document Highlights: Canada’s refining industry has undergone a massive restructuring over the past 30 years. Since the 1970s, the number of operating refineries has dropped from 40 to just 18 today. While global demand for petroleum products continues to rise and the outlook for Canada’s upstream energy sector is bright, Canadian refiners face a very particular set of challenges, since North American and other OECD markets will likely be characterized by declining demand.

Arguments for building more oil refineries in Canada

  • Increases in oil refinery facility size and improvements in efficiencies have offset much of the lost physical capacity of the industry.
  • Recent controversies surrounding the construction of pipelines to transport bitumen from the oil sands has raised questions about the reasons Canada does not develop a more integrated value-added industry.  “We would get far more value for our resources if we were to ship refined product.”

Arguments against building more oil refineries in Canada

  • “In 2009 through 2010, as revenue streams in the oil business dried up and profitability of oil refineries fell due to lower demand for product and high reserves of supply preceding the economic recession, oil companies began to close or sell refineries. Due to EPA regulations, the costs associated with closing a refinery are very high, meaning that many former refineries are re-purposed (Wayman E. Recession’s latest victim: oil refineries. Earth magazine. June 2010. Pgs 10-11).In 2009 Royal Dutch Shell Europe’s largest oil company closed oil refineries in the US and considered selling or closing its 130,000-barrel-per-day refinery in Montreal, which it has operated since 1933.
  • Shortage of qualified labour
  • risk-averse industry
  • oil industry is closing refineries not constructing new ones.
  • multinational oil companies lack motivation to protect Canadian interests. 16 of the largest 20 global oil companies are state owned, and together control over 80 per cent of oil reserves. Canada had a state-owned oil company Petro Canada but it was acquired by Suncor.
  • government needs to take leading role in motivating oil industry to build oil refineries in Canada to develop integrated oil industry
  • high standards for environmental protection would be required in new constructions of oil refineries
  • International companies like Imperial Oil, Husky look at profits for global company. Integrated firms, such as Calgary-based Husky (controlled by Hong Kong billionaire Li Ka-shing) with its crude storage system in Hardisty, pipelines, upgrader and refineries, use the cheaper oil sands crude oil as refinery and upgrader feedstock. The stocks of these integrated firms are substantially mitigated. Husky’s net earnings increased by 22% since April 2011 in spite of the volatility of price of crude. Light and heavy Canadian crude varieties were steeply discounted against WTI in 2012 on pipeline bottlenecks in the U.S. Midwest, made worse by high production and refinery downtime (Calgary Herald 2012-04). The Calgary-based American integrated company, Imperial Oil, with its refineries posted a 30% increase in earnings in the first quarter of 2012 (Calgary Herald 2012-04).
  • MIT has argued for a liquid fuel converted from natural gas to replace gasoline. “[T]he chemical conversion of natural gas into some form of liquid fuel may be the best pathway to significant market penetration in the transportation sector (MIT 2011).”
  • Kearn oil sands project: “The product will be transported to market through a pipeline system. Imperial and ExxonMobil own extensive refinery infrastructure in Canada and the U.S. that could receive bitumen or upgraded feedstock to make a variety of refined products. Production may also be sold to third parties. Any future upgrading capacity to support the Kearl project would be the subject of separate application.”
  • Multinationals are not concerned about Canadian economy
  • 1990s mergers created companies that have more market power
  • loss of competition
  • Athabaskan oil sands are extra heavy and high in sulphur involving most complex and expensive refining processes
  • green movement has oil sands under microscope
  • oil refineries are major polluters in themselves
  • oil industry has market power so control of oil refinery production can affect gasoline prices etc
  • weak anti-trust laws
  • poor global economic conditions
  • Albertan oil industry promises revenue and employment
  • it is costly to build an economically oil refinery that passes environmental standards
  • The biggest oil refinery Suncor in Edmonton, Alberta processes 135,000-barrel-per-day and runs entirely on oil sands-based feedstocks and produces a high yield of light oils.” Suncor be the fifth largest oil and gas company in North America with assets of $43 billion. When it acquired PetroCanada it became Canada’s largest upstream producer and second largest refiner of gasoline and oil products.

How much does it really cost to build a brand new and economically viable oil refinery?

The estimated cost of the Wallaceburg, Ontario oil refinery proposed by Shell Canada in 2007 was between $6 billion and $8 billion. The projections were for the employment of 700 people once operational and thousands of jobs during construction. The project was cancelled c. 2009 because of  “the current project execution environment, market conditions and the current inflationary pressures across the oil and gas industry.” Is there more of a financial benefit to Canada to see raw bitumen? Cooper, Mark. 2003-10. “Spring Break in the US Oil Industry: Price Spike, Excess Profits and Excuses.”

Supermajor oil companies oil sands’ profits: Oligarchy, concentration, Vertical Relationships, Competition in Retail Gasoline Markets

Among others, Canadian oil sands are being developed by supermajors, the world’s five or six largest publicly-owned oil and gas companies: BP p.l.c., Chevron Corporation, ExxonMobil Corporation, Royal Dutch Shell plc, Total S.A. and ConocoPhillips Company A supermajor is one of the world’s five or six largest publicly-owned oil and gas companies. In an effort to improve economies of scale, hedge against oil price volatility, and reduce large cash reserves through reinvestment, largely in response to the a severe fall in oil prices the major mergers and acquisitions of oil and gas companies took place between 1998 and 2002. (BP’s acquisitions of Amoco in 1998 and of ARCO in 2000; Exxon’s merger with Mobil in 1999, forming ExxonMobil; Total’s merger with Petrofina in 1999 and with Elf Aquitaine in 2000, with the resulting company subsequently renamed Total S.A.; Chevron’s acquisition of Texaco in 2001; and the merger of Conoco Inc. and Phillips Petroleum Company in 2002, forming Conoco Phillips.
This process of consolidation created some of the largest global corporations as defined by the Forbes Global 2000 ranking, and as of 2007 all were within the top 25. Between 2004 and 2007 the profits of the six supermajors totaled US$494.8 billion (wiki)

Reductions in storage capacity and the number of gasoline stations of over ten percent have also taken place in just the past half-decade. These reductions in capacity have been driven in part by a merger wave that has resulted in a significant increase in the concentration of ownership of refinery capacity and gasoline outlets. Four-fifths of regional refinery markets have reached levels of concentration that trigger competitive concerns, even by the standards adopted by the antitrust division of the Reagan administration’s Department of Justice. In these markets, the largest four firms account for at least one-half and as much as three quarters of the refined product output. A similar trend has been in evidence at the level of gasoline stations.

“In 1990, 22 integrated companies covered an average of 28 states. In 1999, 17 companies covered an average of 26 states.” (Gilbert and Hastings, p. 27; see also Hastings, Justine, “Vertical Relationships and Competition in Retail Gasoline Markets: Empirical Evidence from Contract Changes in Southern California,” Competition Policy Center, 2000.) “The rule of thumb reflected in all iterations of the Merger Guidelines is that the more concentrated an industry, the more likely is oligopolistic behavior by that industry…. Still, the inference that higher concentration increases the risks of oligopolistic conduct seems well grounded. As the number of industry participants becomes smaller, the task of coordinating industry behavior becomes easier. For example, a ten-firm industry is more likely to require some sort of coordination to maintain prices at an oligopoly level, whereas the three-firm industry might more easily maintain prices through parallel behavior without express coordination (U.S. Department of Justice and Federal Trade Commission Horizontal Merger Guidelines, 1997, at section 0.1.).”

Where is oil found in Canada?

“Not surprisingly, the biggest Canadian producer is the province of Alberta, which accounts for two-thirds of Canada’s production. Saskatchewan is next at roughly 18 per cent, and Newfoundland produces 13 per cent with its off-shore resources. Manitoba, Ontario, British Columbia and the Northwest Territories round out Canadian output with a combined share representing 2.8 per cent of production (Council of Canadians).”

Where does Canadian crude oil and petroleum products go?

66% of Canada’s oil production goes almost exclusively to the United States in the form of exports (Council of Canadians).

How many oil refineries does Canada have in 2012?

“The refining, distribution and marketing of transportation fuels industry operates through an infrastructure with close to 100,000 employees. The industry’s infrastructure in Canada includes 19 refineries in 8 provinces, a complex network of 21 primary fuel distribution terminals, 50 regional terminals and 12,000 retail service stations ( The Canadian Petroleum Products Institute (CPPI) 2011 ).”

“Canada is home to 18 refineries, 16 of which are operated by Canadian Petroleum Products Institute (CPPI) members and represent the majority of the country’s refining capacity. CPPI claims Canada is a net exporter, mainly to the United States, of refined petroleum products and crude oil.” However, Canada imports most of its refined fuel from the United States. “Eastern Canada relies on imported oil — despite the fact that some provinces are oil producers. There are several offshore drilling operations in Newfoundland and Labrador, but none of the oil is actually used in Canada. The eastern provinces rely on an oil supply that’s imported from Saudi Arabia, Africa and Venezuela (CBC. 2012-01-25.”

Where are the existing oil refineries in Canada?

The following table is from Statistics Canada website. Statistics on Canadian Petroleum products — Refined petroleum products, refinery production by type

Centre for Energy: Canadian Oil Refineries Map

British Columbia

  • Husky Energy Inc. Prince George Refinery, Prince George BC.”Husky’s U.S. refining operations process a mix of different types of crude oil
    from various sources but are primarily light sweet crude oil at the Lima, Ohio Refinery and approximately 50% heavy crude oil
    feedstock at the Toledo, Ohio Refinery. The Company’s refined products business in Canada relies primarily on purchased refined
    products for resale in the retail distribution network. Refined products are acquired from other Canadian refiners at rack prices or
    exchanged with production from the Husky Prince George Refinery (Husky Annual Report 2011).” Husky is controlled by Hong Kong billionaire Li Ka-shing.
  • Chevron Canada Limited. Burnaby Refinery. Burnaby BC

Alberta

  • Suncor Energy Products Partnership. Edmonton Refinery. Edmonton AB
  • Shell Canada Products
    • Scotford Refinery Fort Saskatchewan AB
  • Imperial Oil Limited Strathcona Refinery Edmonton AB

Saskatchewan

  • Consumers’ Cooperative Refineries Limited Regina SK * Not a CPPI member
  •  Husky Energy Inc. Lloydminster SK* Asphalt plant and CPPI member. Husky is controlled by Hong Kong billionaire Li Ka-shing.

Nova Scotia

  • Imperial Oil Limited Dartmouth Refinery Dartmouth NS

Newfoundland

  • North Atlantic Refining Limited Come by Chance Refinery Come by Chance NF. North Atlantic Refining Limited is a downstream subsidiary of Harvest Operations Corporation which is a wholly-owned subsidiary of the Korean state-owned Korea National Oil Corporation (“KNOC”). The Korea National Oil Corporation, whose CEO is a KNOC executive who replaced is a “significant operator in Canada’s energy industry offering stakeholders exposure to an integrated structure with upstream (exploration, development and production of crude oil and natural gas) and downstream (refining and marketing of distillate, gasoline and fuel oil) segments. [] KNOC Upstream oil and gas production is weighted approximately 70% to crude oil and liquids and 30% to natural gas, and is complemented by their long-life refining and marketing business.” The replacement in 2012 of a Canadian CEO by a Korean CEO is considered to be a major paradigm shift in the Asian-Canadian oil investment partnerships.

Ontario

Ontario refineries had a capacity of 74,400 m3/day (468,700 b/d) in 2007. At that time these refineries included:

  • Imperial Oil – Nanticoke, Ont. 112,100;
  • Imperial Oil – Sarnia, Ont. 121,600;
  • Shell Canada Products a European Oil Major Sarnia Manufacturing Centre (Corunna refinery)  75,000 barrels of crude oil daily. Corunna ON Originally built in 1952 by Canadian Oil Companies Limited.
  • Imperial Oil Limited Sarnia Refinery Sarnia ON
  • NOVA Chemicals (Canada) Limited Sarnia ON “NOVA Chemicals’ Corunna site The Corunna facility started up in late 1977 and was purchased by NOVA Chemcals in 1988. It was the first fully integrated refinery and petrochemical complex in North America. It is a refinery and petrochemical complex that supplies between 30% and 40% of Canada’s total requirements for primary petrochemicals. The refinery is capable of producing in excess of 3.5 billion pounds (1.6 million tonnes) of basic petrochemicals and 3 billion pounds of refinery and energy products annually. The Corunna site processes crude oil, condensate and natural gas liquids (NGLs) that are delivered to the site by pipeline from western Canada. These products are the feedstocks used to manufacture ethylene, propylene, butadiene, iso-butylene, n-butylene, benzene, toluene and xylene. During petrochemical production, other co-products are also manufactured, including synthetic natural gas, liquefied petroleum gas, gasoline components, diesel fuel, home heating oil and heavy residual fuel oil. ” 500 employees work at the Corunna plant.
  • Imperial Oil Limited Nanticoke Refinery Jarvis ON. Approximately 25 percent of petroleum products sold in Ontario originate from the Nanticoke refinery. Approximately 260 employees. Daily capacity: 112,000 barrels of crude oil.
  • Suncor Energy Products Partnership Petro-Canada Lubricants Centre Mississauga, ON
  • Nova Chemicals – Sarnia 80,000; Corruna; Moore; St. Clair River;
  • Suncor Energy Products Partnership Sarnia Refinery Sarnia ON 85,100

Quebec

  • Suncor Energy Products Partnership Montréal Refinery Montréal QC
  • Ultramar Ltd. Jean-Gaulin Refinery Lévis QC

New Brunswick

  • New Brunswick Irving Oil Limited Saint John NB * Not a CPPI member

Context Timeline of Selected Events in Integrated Oil Industry

2012-07-23China National Offshore Oil Corporation (CNOOC Group) one of the largest state-owned oil companies in resource-hungry China, announced it had “agreed to acquire Nexen for $15.1 billion, China’s biggest foreign takeover bid. Shares of Nexen jumped almost 52 percent that day.” (Reuters. 2012-07-28. “SEC alleges insider trading ahead of CNOOC-Nexen deal.”).” CNOOC “promised to retain all employees and to make Canada home base for its Western Hemisphere operations.”
2012-03-05

    “In the crude market, the Enbridge pipeline outage deepened discounts for Canadian heavy crude against U.S. benchmark West Texas Intermediate. Western Canada Select heavy blend for April delivery traded at C$33.00 ($33.21) per barrel under the West Texas Intermediate benchmark, down from C$32.80 under the benchmark last week. Barrels for March delivery were bid at C$40 a barrel under WTI. Canadian crude was already suffering deep discounts due to limited pipeline space on Enbridge and other pipeline systems (

Reuters 2012-03-05

    ).”

  • 2012-03-05 U.S. April 2012 contract Light Crude Oil (Light Crude) [West Texas Intermediate (WTI) crude oil] rose 30 cents to $107.00 a barrel after settling $2.14 lower at $106.70. Front-month Brent rose 30 cents to $123.95 a barrel by 0332 GMT. Brent fell 2 percent on Friday after Saudi Arabia denied a media report of an explosion at a Saudi oil pipeline that had helped Brent crude prices shoot up $5 to $126.20, their highest level since 2008.”Jaganathan, Jessica. 2012-03-05.”
  • 2012-03-02 Brent crude rose $3.54, or 2.89%, to settle at $126.20 a barrel, then traded as high as $128.40 in post-settlement trading, the highest intraday price since July 23, 2008, when front-month Brent reached $129.50. Brent crude rose sharply reacting to an unconfirmed Iranian media report of an explosion on an unknown Saudi Arabian oil pipeline (Robert Gibbons and Lisa Shumaker 2012-03-01 Reuters)
  • 2012-03-01 Canada’s Oil Sands Innovation Alliance (COSIA), with Dr. Dan Wicklum as CEO, is an alliance of 12 oil sands producers who represent more than 80% of the oil sands production in CanadaBP Canada Energy Company, Canadian Natural Resources Limited, Cenovus Energy Inc., ConocoPhillips Canada Resources Corp., Devon Canada Corporation, Imperial Oil, Nexen Inc., Shell Canada Energy, Statoil Canada Ltd., Suncor Energy Inc., Teck Resources Limited, Total E&P Canada Ltd.. COSIA’s focus is on accelerating the pace of improvement in environmental performance in Canada’s oil sands through collaborative action and innovation. Through COSIA, participating companies will capture, develop and share the most innovative approaches and best thinking to improve environmental performance in the oil sands, initially focusing on four Environmental Priority Areas (EPAs) – tailings, water, land and greenhouse gases. COSIA will take innovation and environmental performance in the oil sands to the next level through a continued focus on collaboration and transparent exchange.Van Loon, Jeremy.
  • 2012-03-01.Oil-Sands Producers Group May Offer New Businesses, Suncor Says.” Bloomberg. Dr. Dan Wicklum was Director General of Water Science and Technology for Environment Canada. While working at EC, Wicklum’s stressed, “You can’t manage what you can’t measure.” Sustainability metrics is becoming more common but it is not enough. “Quality guru W Edwards Deming went further, putting ‘management by use only of visible figures, with little consideration of figures that are unknown or unknowable’ at No 5 in his list of seven deadly management diseases. Henry Mintzberg, the sanest of management educators, proposed that starting ‘from the premise that we can’t measure what matters’ gives managers the best chance of realistically facing up to their challenge (Caulkin 2008).”
  • 2012 Thomas Golembeski’s spokesman for Sunoco claimed that Sunoco’s Northeast refining business lost c. $1 billion from 2009-2012 (Philips 2012-03-01). Another source cited, “Thomas P. Golembeski, a Sunoco spokesman, said the company’s Northeast refining business has lost more than $900 million in the past three years (Penn lawmakers 2012-02-16).” “Thomas Golembeski, spokesperson for Sunoco claimed their oil refineries lost 8 out of the last 10 quarters between 2009 and 2011 to a total of $772 million (Nixon 2011-09-17).”
  • 2012-02 According to a recent report “the world is becoming more reliant on gasoline and diesel fuel refined in the U.S. This week, we learned that in 2011, the U.S. became a net exporter of gasoline, diesel and other fuels for the first time since 1949. Such refined products were the top U.S. export in 2011, beating out such staples of U.S. manufacturing as Detroit’s autos and Boeing’s (BA) airplanes (Philips 2012-03-02).
  • 2012-02-21 Roger McKnight, of Ontario-based En-Pro International Inc., senior analyst with 30 years experience in predicted that the price of gasoline will be up across Canada by 15% at the end of April. Challenging record prices in 2008: (ex. Estimated price per litre of gasoline in the summer of 2012: Calgary: $1.30; Vancouver: $1.50). McKnight argues that the major factor in the rise in prices is the distribution changes in the U.S. – “refinery implosion that we’ve had in the eastern part of the U.S., in the Philadelphia area, which has basically taken a million barrels of production out of the system.” “McKnight said the fire last week at BP’s Cherry Point refinery in Washington is also a factor in higher B.C. prices, because the plant – which contributes to Vancouver’s supply — is producing less. Making the price more volatile is the The uncertain geopolitical situation with Iran makes the price more volatile CBC News 2012-02-21) .
  • 2012-01-20 “TransCanada Corp. is considering possibilities for moving Bakken shale crude south to the US Gulf Coast via a stand-alone system following the US rejection of the company’s permit application for the Keystone XL crude oil pipeline. TransCanada had originally envisioned moving Bakken crude south as part of Keystone XL, concluding a binding open season for its Bakken MarketLink Project in early 2011. Options for moving Bakken crude south could include a completely new-built pipeline, or modification of Bakken MarketLink plans to route Bakken production to the existing Keystone pipeline, already delivering Canadian crude to Cushing, Okla. TransCanada declined to comment on specific possibilities, saying that discussions need to occur with customers and nothing has been finalized (TransCanada mulls Bakken options while reapplying for Keystone XL).”
  • 2012-01-18 President Barack Obama halted TransCanada’s proposed Keystone XL tar sands pipeline project, which would have brought bitumen from the Alberta oil sands (“dilbit”) through the U.S., to Gulf Coast refineries near Port Arthur, Texas, where the oil would then be exported to the global market.
  • 2012-01-26 Premier Alison Redford says her government will take a hands-off approach to the increased upgrading of bitumen in the province as Alberta’s oilsands production continues to ramp up. “With the energy spotlight focused recently on the proposed Keystone XL and Northern Gateway pipelines that would ship raw bitumen to the United States and Pacific Coast, respectively, there have been growing calls for increasing the capacity in Alberta to upgrade and refine oilsands into products like synthetic crude, gasoline and diesel.” “Redford said it is up to the market and energy industry to determine opportunities for more processing (if it makes economic sense) — not the government. “Redford remains committed to the planned North West upgrader, but there are no other projects in line for provincial involvement.” “If we have wheat, we’re not going to say to people you can only export bread.” (Wood 2012-01-26).” Critics claim that the metaphor is inappropriate. If we have good top soil than we can export wheat, flour and baked goods. If we give away our top soil we have no wheat.
  • 2012-02-13 The price for a barrel of WTI crude broke above $100 U. S. a barrel. “West Texas Intermediate (WTI) crude oil is of very high quality, because it is light-weight and has low sulphur content. For these reasons, it is often referred to as “light, sweet” crude oil. These properties make it excellent for making gasoline, which is why it is the major benchmark of crude oil in the Americas. WTI is generally priced at about a $5-6 per barrel premium to the OPEC Basket Price and about $1-2 per-barrel premium to Brent (Amadeo February 13, 2012).” Alberta Oil Sands Royalties are tagged to the price of West Texas Intermediate (WTI) crude oil.
  • 2012 “Most fundamentally, shipping unprocessed bitumen crude out of Canada has been attacked by the biggest of Canada’s energy labour unions, the Communications, Energy and Paperworkers Union of Canada, as a bad idea. The CEP estimates it means exporting 40,000 jobs out of Canada (figure based on jobs lost through the Keystone Pipeline). They prefer refining the crude here in Canada.  (The CEP is also not a group to which your allegation that opponents of Gateway also oppose all forestry, mining, oil, gas, etc is anything but absurd (May 2012-01An Open Letter to Joe Oliver“.)”
  • 2012-01 “Compared to 2010, Suncor’s annual operating earnings next, and as Firebag Stage 4 is expected to begin its own more than doubled in 2011 to a record $5.7 billion. Cash ramp up in 2013. Flow from operations was also the highest ever, at nearly $10 billion. While the results primarily reflected increased It’s estimated that some 80% of Canada’s oil sands production from our Oil Sands business and a strong reserves are buried too deep to be reached by crude pricing environment, we also saw increased price conventional mining. Of Suncor’s proved plus probable Oil realizations due to our capacity to upgrade bitumen and Sands reserves, nearly 60% are associated with the refine crude oil in-house (Suncor Annual Report 2011).”
  • 2011-12 Refining capacity in the U.S. has been steadily increasing, climbing 0.8 percent, to 17.7 million barrels a day in December, 2011 compared to December 2010 (Philips 2012-03-02).
  • 2011-11 In a joint business venture Cenovus and ConocoPhillips completed a new four-drum coker as part of the coker and refinery expansion (CORE) project at Wood River (Illinois). The new coker has a capacity of 65,000 barrels per day and is expected to expand our heavy oil processing capacity to approximately 200,000 – 220,000 barrels per day, increasing the production of clean transportation fuels for the U.S. Midwest market, including St. Louis and Chicago. The CORE project took about three years to build, with a total cost of US$3.8 billion (US$1.9 billion to Cenovus), and has increased clean product yield by 5% to approximately 85%. Cenovus is involved in a business venture with ConocoPhillips in upstream enhanced oil operations and downstream refining. Cenovus has a 50% interest in the Wood River (Illinois) and Borger (Texas) refineries. ConocoPhillips has a 50% interest in our Foster Creek and Christina Lake Steam Assisted Gravity Drainage (SAGD), enhanced oil recovery technology for producing heavy crude oil and bitumen. These two extraction upstream projects in the Athabasca region in northeast Alberta. This interest in two quality refineries is a strategic fit for Cenovus and allows us to capture the full value from crude oil production through to refined products such as diesel, gasoline and jet fuel (Cenovus).” “The Foster Creek project began in 1996 and in 2002 became the industry’s first commercial SAGD project. It has grown in five phases with an expected production capacity of 120,000 gross barrels per day. In the first quarter of 2010 Foster Creek achieved a significant milestone in becoming the largest commercial SAGD project in Alberta to reach royalty payout status. For a project to reach payout its cumulative revenues exceed cumulative allowable costs.” Cenovus is Alberta’s sixth largest energy company with more than 3,000 staff (Cenovus Energy). It’s a sign of commercial success for Cenovus and ConocoPhillips but what does it mean in terms of Alberta’s oil sands royalties if a project can reach royalty payout status?
  • 2011-10-31 In a report commissioned by the  The Canadian Petroleum Products Institute (CPPI), Todd Crawford claimed that Since the 1970s, the number of operating refineries in Canada dropped from 40 in the 1970s to 19 in 2011 although this was more from increased refinery productivity/efficiency than from a decrease in quantity. Crawford also predicted that there will be a decline in demand for refined petroleum products in the North American and other OECD markets as alternative greener forms of energy become competitive. The a strong dollar, tight labour markets, and rising wage pressures make it more difficult for Canadian refineries to compete on the global market. It would be difficult for Canada to upgrade aging refineries or to build new ones that could compete with the newly-operational U. S. oil refineries built to process Alberta’s bitumen that are already processing 2 million barrels per day of Canadian crude piped from Hardisty, Alberta. As well, Canada’s oil refineries would be competing against modern super-refineries in China and India to export gasoline to North America ( Crawford, Todd. 2011-10-31. “Canada’s Refining Sector: An Important Contributor Facing Global Challenges.” The Conference Board of Canada. Commissioned by The Canadian Petroleum Products Institute (CPPI). 52 pages).
  • 2011 In Alberta’s fiscal year 2010-11, synthetic crude and bitumen royalties totaled $3.72 billion, or 38% more than the $1.42 billion in royalties derived from natural gas – the province’s traditional cash cow (Alberta Oil 2011-10-11).
  • 2011 “According to the Energy Information Administration, the United States crude oil imports fell to 8.9 million barrels a day, the lowest level since 2001. Since 2005, foreign imports dropped from 60% of U.S. consumption to 45% in 2011, according to U.S. Department of Energy data (Philips 2012-03-02.)”
  • 2011-10-11 “Sunoco Inc. shut a fluid catalytic cracker for repairs at its Marcus Hook refinery in Pennsylvania. Gasoline rose to a three-week high on speculation fuel output will decline as refinery shutdowns and maintenance curb supply on the U.S. East Coast. Futures gained as refinery rates probably fell 0.78 percentage point to 86.9 percent last week, according to the median estimate of 14 analysts in a Bloomberg News survey.”Powell 2011-10-11).
  • 2011-09-30“ConocoPhillips stopped production at its Trainer, Pennsylvania, refinery saying if it couldn’t find a buyer, the plant would be shut permanently in six months Powell 2011-10-11).” The Trainer plant is one of three oil refineries recently closed in the Eastern states.

    “Unlike their counterparts in the U.S. Midwest and on the Gulf Coast, most U.S. East Coast operations are built to refine only light, sweet oil such as Brent crude. Since this oil is largely imported from such countries as Nigeria, its price is heavily affected by global events. The Arab Spring and threats of Iranian oil disruption have driven the price of Brent from $94 a barrel to over $120 in the last year, costing the U.S. East Coast refineries dearly. Demand for gasoline in the U.S., meanwhile, is close to a 15-year low, so refineries have been unable to pass on all their costs to customers. True, gasoline prices have been climbing—gas in New York State will probably hit $4 a gallon soon—but not enough to keep these refineries profitable. “The golden age of U.S. East Coast refineries is over,” says Fadel Gheit, an analyst with Oppenheimer (Philips 2012-03-01).”

  • 2011-09-17 Thomas Golembeski, spokesperson for Sunoco claimed their oil refineries lost 8 out of the last 10 quarters between 2009 and 2011 to a total of $772 million. Philadelphia-based Sunoco announced in September that they intended to exit the refinery business. They were planning on selling the last of its refineries, in Philadelphia and Marcus Hook. The refineries have a combined capacity to process more than a half million barrels of oil a day. Sunoco, which has 150 gas stations in the Pittsburgh region (Nixon 2011-09-17).”CBC.
  • 2011-09-13Former Alberta Premier Peter Lougheed, who championed and invested in the early development the oilsands in the 1970s opposed the Keystone pipeline.” In an interview with Anna Maria Tremonti of CBC Radio’s The Current September 13, 2011, Peter Lougheed argued, “We should be refining the bitumen in Alberta and we should make it public policy in the province [. . .] I would prefer…we process the bitumen from the oilsands in Alberta and that would create a lot of jobs and job activity […] That would be a better thing to do than merely send the raw bitumen down the pipeline and they refine it in Texas that means thousands of new jobs in Texas.”
  • 2011 “Within the U.S. market, the price of oil, (which is set globally) compared to the price of natural gas (which is set regionally) is very important in determining market share when there is the opportunity for substitution. Over the last decade or so (2001-2011), when oil prices have been high, the ratio of the benchmark West Texas Intermediate oil price to the Henry Hub natural gas price has been consistently higher than any of the standard rules of thumb (MIT 2011).”
  • 2011-04 and 2011-05 The price of gas ($3.90 a gallon) and oil prices ($113 a barrel) peaked for the year (Amadeo February 13, 2012).
  • 2011-02-16 Government of Alberta (GA). 2011-02-16. “Bituman refinery agreement promotes value-added development.” The Way Forward.
  • 2011-03-20 The Canadian federal budget introduced changes to taxation that was essentially a subsidy for the oil sands. “Under the current policy, the cost of an oil sands lease can be written off at a rate of 30% a year; the budget proposes narrowing that to 10%. The change on mining expenses is more dramatic. Instead of writing off the entire cost of developing a mine in the years the costs were incurred, the budget calls for forcing those costs to be written off at 30% per year. That will align oil sands mines with other sectors of the energy industry (Vanderklippe, Nathan; Tait, Carrie. 2011-03-22. “Oil sands tax incentives targeted.” Globe and Mail).” oil sands subsidies
  • 2011-03-02 The price for a barrel of WTI crude broke above $100 U. S. a barrel. “West Texas Intermediate (WTI) crude oil is of very high quality, because it is light-weight and has low sulphur content. For these reasons, it is often referred to as “light, sweet” crude oil. These properties make it excellent for making gasoline, which is why it is the major benchmark of crude oil in the Americas. WTI is generally priced at about a $5-6 per barrel premium to the OPEC Basket Price and about $1-2 per-barrel premium to Brent (Amadeo February 13, 2012).” Alberta Oil Sands Royalties are tagged to the price of West Texas Intermediate (WTI) crude oil.
  • 2011-01-31 The U. S. Federal budget included a proposal to eliminate roughly $4 billion a year in subsidies and tax breaks for oil companies, in his third effort to eliminate federal support for an industry that remains hugely profitable (Broder, John M. 2011-01-31. “Obama’s Bid to End Oil Subsidies Revives Debate.” ).
  • 2010-12 Sunoco sold a refinery in Toledo, Ohio, “for $400 million to PBF Energy Co. LLC. Golembeski said the sale has not affected Sunoco retail stations in the Midwest. (Nixon 2011-09-17).”
  • 2009-02 Oil prices dropped to $39 a barrel (Amadeo 2012).
  • 2010-04-13Sinopec, China Petroleum & Chemical Corporation, a state-owned company and China’s second-largest oil producer and top refiner, announced acquisition of ConocoPhillips’ 9.03% interest in Syncrude — the largest oil sands project — with seven other partners controlling the rest. Canadian ownership of Syncrude remains at nearly 56%. The Canadian government granted regulatory approval on on June 25, 2010.(Reuters). Sinopec Group, parent of Asia’s largest refiner Sinopec Corp, has launched at c. 74 acquisition deals worth $48.1B since 2005, as part of China’s attempts to secure resources to feed the country’s rapid growth (source). CEO Wang Tianpu,
  • 2008-12 The price of WTI crude oil plummeted to a low of $30 per barrel (Amadeo February 13, 2012). The price of gasoline also dropped to $1.68 a gallon. (Source: EIA Oil Price Trends,EIA Gas Price Trends)
  • 2010-07-26 “Enbridge Energy Partners LLP (Enbridge) reported a 30-inch pipeline ruptured on Monday, July 26, 2010, near Marshall, Michigan. The release, estimated at 819,000 gallons, entered Talmadge Creek and flowed into the Kalamazoo River, a Lake Michigan tributary. Heavy rains caused the river to overtop existing dams and carried oil 30 miles downstream on the Kalamazoo River.” Cleanup by the numbers: 1,148,411 gallons of oil collected; 17.1 million gallons of oil/water collected and disposed; 187,276 cubic yards soil/debris disposed. Total Est. Oil Spill Cost $US 44,833,205. (From July 20, 2012, Situation Report) (source)
  • 2008-06 The price of WTI crude oil hit $145 per barrel which was an all-time high. The U.S. average retail price for regular gasoline also hit a peak in July 2008 of $4.10, rising as high as $5 a gallon in some areas [. . .] During 2008, there was fear that economic growth from China and the U.S. would create so much demand for oil that it would overtake supply, driving up prices. However, most analysts now realize that such a sudden increase in oil prices was due to increased investment by hedge fund and futures traders. (See What Causes High Oil Prices?) (Amadeo February 13, 2012). (Source: EIA Oil Price Trends,EIA Gas Price Trends)
  • 2008-06 According to the publicly-available Commitments of Traders (COT) reports, activity in the West Texas Intermediate (WTI) light sweet crude oil contracts has grown markedly since 2000. In the last three and a half years alone, open interest across all available contract maturities (the number of contracts open at the end of each day) in WTI futures and futures-equivalent (or “adjusted”) option contracts traded on the New York Mercantile Exchange (NYMEX) has more than tripled from around 900,000 contracts in January 2004 to more than 2.9 million contracts in June 2008. During the same period, the number of large traders has also grown – almost doubling since January 2004, from approximately 220 to just under 400 reporting traders. These figures speak to the competitiveness and depth of the crude oil futures markets in the U.S. (CFTC 2008-06).”
  • 2007 
  • 2008-05 The price of West Texas Intermediate (WTI) crude oil passed the $123 mark for the first time (BBC).
  • 2007-05-24 West Texas Intermediate (WTI), also known as Texas light sweet crude oil was priced at $63.58 per barrel as against $71.39 per barrel for Brent (Bloomberg). The anomaly occurred perhaps because of a temporary shortage of refining capacity. On April 13, WTI Crude at Cushing may have temporarily lost its status as a barometer of world oil prices.[2] A large stockpile of oil at the Cushing, Oklahoma storage and pricing facility (mainly due to a refinery shutdown[3]) caused price to be artificially depressed at the Cushing pricing point. As stockpiles decreased, the WTI price increased to exceed the price of Brent once again.[4] (West Texas Intermediate (WTI), also known as Texas light sweet, is a grade of crude oil used as a benchmark in oil pricing. This grade is described as light because of its relatively low density, and sweet because of its low sulfur content. It is the underlying commodity of Chicago Mercantile Exchange’s oil futures contracts. The price of WTI is often referenced in news reports on oil prices, alongside the price of Brent crude from the North Sea. Other important oil markers include the Dubai Crude and the OPEC Reference Basket. Brent Crude is a major trading classification of sweet light crude oil comprising Brent Blend, Forties Blend, Oseberg and Ekofisk crudes (also known as the BFOE Quotation). Brent Crude is sourced from the North Sea. The Brent Crude oil marker is also known as Brent Blend, London Brent and Brent petroleum.) wikipedia
  • 2007-03-20The Conservative government of Canada announced it would gradually phase out some oil sands tax incentives including provisions allowing accelerated write-off of oil sands investments. The New Democratic Party, which had enough votes to keep the Conservatives in power, made eliminating accelerated capital cost allowances for oil sands a price for its support (“Canada to end oil sands aid, add green-car rebates“. Angola Press. 20 March 2007).
  • 2007Alberta`s oil sands, which rival Saudi Arabia`s conventional oil reserves in size, were the target of an unprecedented development rush as companies looked to cash in on North America`s thirst for secure energy supplies (“Canada to end oil sands aid, add green-car rebates“. Angola Press. 20 March 2007).
  • 2007 Crude oil prices were significantly in excess of the average cost of production, which was about $28 per barrel of bitumen. However, bitumen production costs were rising rapidly, with production cost increases of 55% from 2005 to 2007, due to shortages of labor and materials (“Oil sands costs up 55 percent“. UPI. 6 March 2007.)
  • 2007-01-31The European Commission announced plans to force energy companies to produce greener fuels. It says it will propose amendments to a directive on fuel quality, which will require a 10% cut in the CO2 released during production and use of the fuel (BBC News “Brussels presses for greener fuel.”)The changes would make companies use more biofuel, and develop greener biofuels where the production process results in lower CO2 emissions.
  • 2006 The Government of Alberta had “a vision for its hydrocarbon upgrading industry: “Alberta will achieve a competitive hydrocarbon upgrading industry through refining and petrochemical plants that expand the market for Alberta’s bitumen resource and produces higher value products in Alberta.” The vision for hydrocarbon upgrading is a key component in the development of an integrated energy strategy that looks beyond extraction to ensure both the highest value and best use of our resources for the benefit of all Albertans (executive summary) The returns to Alberta and Canada from a fully integrated system could be significant. Successful upgrading to finished products could add billions of dollars to the Alberta and Canadian economy and broaden Alberta’s markets for value-added products, ultimately helping Alberta companies to increase their global competitiveness. As well as the value-added consideration, the high level of activity in the oil sands has raised a concern among industry stakeholders. With the large number of project proposals to develop the oil sands within the next 10 to 15 years, production of the bitumen and synthetic crude oil from the oil sands may exceed current refinery capacity resulting in the value of these products declining over time. Increasing Alberta’s capacity to produce finished products would mitigate this potential problem and serve the North American market better. In addition, the lower cost bitumen derived feedstocks would help sustain Alberta’s worldclass petrochemical industry, which is currently based on higher-priced natural gas feedstocks (Natural Gas – Alberta Plant Gate – C$/MMBtu 2006:10.35).” … The vision for hydrocarbon upgrading [was] a key component in the development of an integrated energy strategy that looks beyond extraction to ensure both the highest value and best use of our resources for the benefit of all Albertans … As well as the value-added consideration, the high level of activity in the oil sands has raised a concern among industry stakeholders. With the large number of project proposals to develop the oil sands within the next 10 to 15 years, production of the bitumen and synthetic crude oil from the oil sands may exceed current refinery capacity resulting in the value of these products declining over time. Increasing Alberta’s capacity to produce finished products would mitigate this potential problem and serve the North American market better. In addition, the lower cost bitumen derived feedstocks would help sustain Alberta’s worldclass petrochemical industry, which is currently based on higher-priced natural gas feedstocks (p.6) . . . The growing demand for refined petroleum products in North America has resulted in constrained refinery capacity and increasing product prices. While refinery capacity expansions are being planned, the demand for refined products is expected to continue to exceed available domestic supply.” Both the natural gas price and the West Texas Intermediate crude oil price forecasts used in the economic model are from a published source, GLJ Petroleum Consultants Ltd. and are summarized here: Crude Oil – West Texas Intermediate – US$/bbl 2006:57.00 2007:55.00 2008:51.00 2009:48.00 2010:46.50 2015:47.75 2020:52.77; Natural Gas – Alberta Plant Gate – C$/MMBtu 2006:10.35 2007:9.00 2008:7.75 2009:7.25 2010:6.95 2015:7.15 2020:7.90 (Netzer 2006-03.”
  • 2005 The price of crude oil soared from $45 a barrel to above $70 a barrel. BP reported a 25% increase in annual profits “magnified enormously by the high price of oil, high refining margins, and high gas prices”. Profits for 2005 went up to $19.31bn with profits for the last three months of the year increasing by 26% to $4.43bn. Shell’s record profit was $22.94bn in 2005. (BBC 2005).
  • 2004 There was a large, unexpected jump in world oil consumption growth, fostered by strong growth in economic activity in Asia, reduced excess production capacity significantly (CFCT 2008-07).
  • 2003 Between 2000-12 and 2003 there were four gasoline price spikes caused by domestic refining and marketing that resulted in an increase of over $30 billion in gasoline prices. (Cooper 2003).”
  • 2003 Reductions in storage capacity and the number of gasoline stations of over ten percent have also taken place in just the past half-decade. These reductions in capacity have been driven in part by a merger wave that has resulted in a significant increase in the concentration of ownership of refinery capacity and gasoline outlets. Four-fifths of regional refinery markets have reached levels of concentration that trigger competitive concerns, even by the standards adopted by the antitrust division of the Reagan administration’s Department of Justice. In these markets, the largest four firms account for at least one-half and as much as three quarters of the refined product output. A similar trend has been in evidence at the level of gasoline stations (Cooper 2003).”
  • 2003-03-11 “Consumer Groups Seek Energy Price Probe,” Energy Daily, March 11, 2003, p. 4.
  • 2003 OECD oil stocks were at record lows in 2003, following a major strike by oil workers in Venezuela (CFTC 2008-07).
  • 2003 In the United States alone, 75 refineries were closed between 1988-2003 and no new refineries were constructed ( Cooper, Mark. 2003-10. “Spring Break in the US Oil Industry: Price Spike, Excess Profits and Excuses.” Consumer Federation of America.
  • 2002 In 2002, 58 firms were engaged in refining in the United States, down from 189 firms in 1981 (source).
  • 2001-05-21 Public Citizen, Record Oil Company Profits Underscore Market Consolidation, May 31, 2001; Fortune 500, July 18, 2001; Business Week First Quarter Results, May 21, 2001
  • 2000 Between 1985 and 2000, average refinery utilization increased from 78 to over 92 percent (source).
  • 1998 A wave of mergers, acquisitions, joint venture alliances, and selective divestitures started in 1998. The aim was cutting costs, gaining economies of scale, increasing returns on investment, and boosting profitability (source). Exxon and Mobil merged allowing both companies a larger share of the oil and gas market (horizontal merging).
  • 1990s “The 1990s were widely viewed by the industry as a period of unprecedented economic volatility and hardship, characterized by poor profit margins as a result of substantial excess capacity, the increasing cost of compliance with environmental regulations, and unfavorable crude oil price trends. At the same time, the refining industry in the United States has been dramatically changed by corporate restructuring and consolidation (RAND).”

Webliography and Bibliography

There are major challenges in locating reliable sources of useful, comprehensible information on the oil industry. The following sources are not necessarily neutral. Wikipedia entries on concepts and organizations related to the oil industry constantly include warnings to readers that the entries may not be neutral and indeed reflect advertisement more than unbiased, information based on reliable sources. Citations often lack references.**

Who’s Who?

  • Bitumen Royalty-in-Kind (BRIK):”In Alberta, royalties are a share of production from resources the government owns on behalf of Albertans. Under the Mines and Minerals Act, the government has the option to take its royalty share either in cash or in kind. Currently, the government takes its share of conventional crude oil production in kind and collects its royalty share for other resources in cash. The decision to exercise the in-kind option for bitumen was identified in October 2007 as a way for the Crown to use its share of bitumen strategically to supply potential upgraders and refineries in Alberta, and to optimize its royalty share by marketing those volumes (Government of Alberta. Energy. BRIK. FAQ.”
  • China National Offshore Oil Corp (CNOOC)CNOOC is “an $89 billion company with oil and gas assets in Indonesia, Iraq, Australia, Africa, North and South America, as well as China… The $15 billion bid by China National Offshore Oil Corp (CNOOC) to buy Canada’s Nexen, Inc will help the Chinese state giant gain the expertise to drill in deep, disputed waters of the South China Sea without relying on risk-averse foreign firms (Eckert, Paul. 2012-08-04. CNOOC-Nexen deal seen helping China’s South China Sea thrust. Reuters).” By 2018-2023 China would probably have the experience, knowledge and technologies like those Nexen already has to “set up and maintain stable rigs in 5,000-10,000 feet of ocean water” and “drill 10,000-18,000 feet deep in sediment (Eckert 2012-08-04)”. How might China’s access to an expanded South China Sea deep drilling, affect the future of oil sands bitumen market and the Northern Gateway pipeline in five or ten years?
  • Conference Board of CanadaAn independent, not-for-profit, applied research organization in Canada, self-describes as non-partisan.
    “Experts in running conferences but also at conducting, publishing, and disseminating research; helping people network; developing individual leadership skills; and building organizational capacity. Specialists in economic trends, as well as organizational performance and public policy issues. Not a government department or agency,
    although we are often hired to provide services for all levels of government.” Published report entitled “Canada’s Petroleum Refining Sector: An Important Contributor
    Facing Global Challenges
    ” in 2011 by Todd Crawford.
  • Council of Canadians“Founded in 1985 by a handful of citizens including Maude Barlow, Farley Mowat and Margaret Atwood, the Council of Canadians is Canada’s largest citizens’ advocacy organization; with 72 chapters across the Canada who work to protect Canadian independence by promoting progressive policies on fair trade, clean water, energy security, public health care, and other issues of social and economic concern to Canadians.” They produce promotional material such as “Take Charge! A National Day of Action in support of a Canadian Energy Strategy” encouraging Canadians to “write their Prime Minister Stephen Harper and demand a National Energy Strategy that puts people and the environment ahead of corporate interests.”
  • Ferguson, Brian is President & Chief Executive Officer of Cenovus Energy’s strategic and operational performance. He is also a Director of Cenovus Energy. His background is in finance, business development, reserves, strategic planning, evaluations, communications and accounting. Brian is a member of the highly influential Canadian Council of Chief Executives who are considered by some to be an unofficial arm of the federal government. Brian is currently serving a two-year term on the Canadian Association of Petroleum Producers (CAPP) Board of Governors. In November 2011, in a joint business venture Cenovus and ConocoPhillips completed a new four-drum coker as part of the coker and refinery expansion (CORE) project at Wood River (Illinois). The new coker has a capacity of 65,000 barrels per day and is expected to expand our heavy oil processing capacity to approximately 200,000 – 220,000 barrels per day, increasing the production of clean transportation fuels for the U.S. Midwest market, including St. Louis and Chicago. The CORE project took about three years to build, with a total cost of US$3.8 billion (US$1.9 billion to Cenovus), and has increased clean product yield by 5% to approximately 85%. Cenovus is involved in a business venture with ConocoPhillips in upstream enhanced oil operations and downstream refining. Cenovus has a 50% interest in the Wood River (Illinois) and Borger (Texas) refineries. ConocoPhillips has a 50% interest in our Foster Creek and Christina Lake Steam Assisted Gravity Drainage (SAGD), enhanced oil recovery technology for producing heavy crude oil and bitumen. These two extraction upstream projects in the Athabasca region in northeast Alberta. This interest in two quality refineries is a strategic fit for Cenovus and allows us to capture the full value from crude oil production through to refined products such as diesel, gasoline and jet fuel (Cenovus).” “The Foster Creek project began in 1996 and in 2002 became the industry’s first commercial SAGD project. It has grown in five phases with an expected production capacity of 120,000 gross barrels per day. In the first quarter of 2010 Foster Creek achieved a significant milestone in becoming the largest commercial SAGD project in Alberta to reach royalty payout status. For a project to reach payout its cumulative revenues exceed cumulative allowable costs.” Cenovus is Alberta’s sixth largest energy company with more than 3,000 staff (Cenovus Energy). It’s a sign of commercial success for Cenovus and ConocoPhillips but what does it mean in terms of Alberta’s oil sands royalties if a project can reach royalty payout status? ConocoPhillips and Cenovus are in a shared business venture involving 2 high quality refineries (Wood River Refinery near St. Louis which is the largest of the 12 refineries operated by ConocoPhillips and Borger in Borger, Texas) and in upstream extraction projects in Alberta, ConocoPhillips has a 50% interest in our Foster Creek and Christina Lake Steam Assisted Gravity Drainage (SAGD).
  • Steve Williams, Suncor’s president and COO has a background in strategy development, company performance improvement, refinery & chemical company management. He has also provided leadership in the areas of environment, health and safety, finance, sales and marketing, human resources, and information technology. Bloomberg’s Jeremy van Loon about an industry-led effort to reduce the environmental impact of oil-sands production. Encana was formed in 2002 merging two Canadian oil and gas companies, PanCanadian Energy Corp. and Alberta Energy Company (AEC). Encana Corporation split into two distinct companies on December 1, 2009: one a pure play natural gas company (Encana) and the other an integrated oil company (Cenovus) which absorbed the assets formerly belonging to PanCanadian Energy Corp. and Alberta Energy Company (AEC), the two Canadian oil and gas companies that merged to form Encana in 2002 as well as a stake in 2 high quality refineries (Wood River Refinery near St. Louis which is the largest of the 12 refineries operated by ConocoPhillips and Borger in Borger, Texas).
  • The Energy Resources Conservation Board (ERCB) is an “independent, quasi-judicial agency of the Government of Alberta. They regulate the safe, responsible, and efficient development of Alberta’s energy resources: oil, natural gas, oil sands, coal, and pipelines. Their mission is to ensure that the discovery, development and delivery of Alberta’s energy resources take place in a manner that is fair, responsible and in the public interest.”
  • Premier Alison Redford says her government will take a hands-off approach to the increased upgrading of bitumen in the province as Alberta’s oilsands production continues to ramp up. (Wood 2012-01-26).”
  • Neil Shelly, “executive director of the Alberta Industrial Heartland Association, said the pipeline is a mixed blessing because it does open up the area to opportunities in a whole new market. But he echoes Rigney’s concerns that the pipeline represents more Alberta bitumen being shipped away without any upgrading. “We definitely need to diversify the market for Alberta. Just shipping out raw bitumen, even if it is to an upgrader in China or India or wherever, does (diversify) a little bit, but it doesn’t really.” Shelly said more upgrading and refining in Alberta would give the province a lot more options when it came to selling its products, along with all the jobs and benefits from the industry. “What if we extract the bitumen in Alberta, turn into synthetic crude oil and then we could supply eastern Canada with the fuels they need?”(Gateway a Potential Blow to Upgrading Industry.)
  • “Don Rigney is Mayor of Sturgeon County, town through which the proposed Gateway Pipeline will pass. Several upgraders were once proposed for Sturgeon County and Mayor Rigney argued that the Pipeline represents another example where Alberta will sell raw bitumen rather than upgrade it. “We would get far more value for our resources if we were to ship refined product.” Sturgeon was once projected to be home to four upgraders, but only one — North West Upgrading’s 50,000 barrel per day project — is currently expected to go ahead. Rigney said he would rather have the pipeline carry raw bitumen than not have the pipeline at all, but he would like to see more effort made to encourage more upgrading in Alberta.” “The Canadian Centre for Energy Information (
  • Centre for Energy) is a non-profit organization created in 2002 to meet an urgent need for information on all aspects of the Canadian energy system from oil, natural gas, coal, thermal, and hydroelectric power through to nuclear, solar, wind, and other sources of energy. More recently, the Centre for Energy has taken steps to broaden its reach to encompass energy end use in Canada (“About: Centre for Energy’s web page)” Wikipedia editors cautioned that the Wikipedia article on the Centre “may be written like an advertisement with promotional content that was not written from a neutral point of view (October 2009). Wikipedia editors expressed concerns that citations provided no reliable references or sources (October 2009).**
  • Catherine J Laureshen “is a Senior Research Manager, responsible for the upgrading and university research programmes of the Alberta Energy Research Institute (AERI). Prior to joining AERI, she taught in the Department of Chemical and Petroleum Engineering at the University of Calgary, and was a member of the In Situ Combustion Research Group. Dr Laureshen is an active member of the Petroleum Society of the Canadian Institue of Mining, Metallurgy and Petroleum (CIM), sitting on the national board and chairing the publications board. She is the Technical Chair for the 2006 Canadian International Petroleum Conference and will be the Conference Chair in 2007. Dr Laureshen is also a member of the Canadian Heavy Oil Association (CHOA), the Society of Petroleum Engineers (SPE) and the Association of Professional Engineers, Geologists, and Geophysicists of Alberta (APEGGA). She has a PhD in mechanical engineering, with a specialisation in fluid dynamics.” The
  • Consumer Federation of America (CFA) is an association of non-profit consumer organizations that was established in 1968 to advance the consumer interest through research, advocacy, and education. Today, nearly 300 of these groups participate in the federation and govern it through their representatives on the organization’s Board of Directors (CFA about). Peter Boag, president of the Canadian Petroleum Products Institute, argues that “Canada’s 19 refineries produce two million barrels of day, but they are only operating at 80 per cent capacity. The ideal, according to the industry, is to be operating at 95 per cent. Canadians consume about 1.8 million barrels of oil a day.” Mark Corey, the Assistant Deputy Minister of Natural Resources Canada’s Energy Sector agreed. Lindell, 2012-01-31). Brenda Kenny, president of the Canadian Energy Pipelines Association, said that using imported oil eliminates certain costs (CBC 2012-01). In the pipeline versus refinery debate her interests are clearly on the side of pipelines.
  • Rep. Patrick Meehan, R-Penn., said the U.S. House Homeland Subcommittee on Counterterrorism and Intelligence he chairs will launch a hearing entitled “The Implications of Refinery Closures for U.S. Homeland Security and Critical Infrastructure Safety” on March 19, 2012 (Meehan 2012-02-24), into how nationwide refinery closures, including the three Philadelphia-area refineries, could increase risks to the nation’s critical infrastructure and threaten supply shortages in the event of a global crisis. Meehan said the three imperiled refineries in the Philadelphia area account for 50 percent of the Northeast’s refinery capacity. He said more than 30 U.S. refineries have closed in the past decade. “This hearing will help us understand the homeland security consequences of our declining domestic refining capacity, both in terms of threats to critical infrastructure and our dependence on imports from unstable parts of the world,” said Meehan, adding he would schedule the hearing as soon as possible. Casey has called for a Senate hearing on the impact that the possible refinery closures could have on energy prices. He has warned that if no buyer is found and the refineries are permanently shuttered, the closures could drive up energy prices on the East Coast (Miga 2012-02-16).” “SPRINGFIELD, PA – U.S. Representative Patrick Meehan (PA-07) today announced the House Homeland Security Subcommittee on Counterterrorism and Intelligence will hold a hearing on Monday, March 19 at Neumann University in Aston entitled, “The Implications of Refinery Closures for U.S. Homeland Security and Critical Infrastructure Safety.” The hearing will examine the homeland security consequences of nationwide refinery closures – including three in the Philadelphia area – both in terms of threats to critical infrastructure and our dependence on imports from unstable parts of the world. “The closure of two refineries and the expected closure of a third in our area not only mean significant job and economic loss,” said Meehan. “They’ve also resulted in a significant decline in our country’s refining capacity, causing our country to have greater reliance on foreign oil imports from the Middle East, Africa and Venezuela. This brings up important questions about how this could increase the risks to domestic critical infrastructure and threaten supply shortages in the case of a global crisis.” Meehan noted that the three Philadelphia area refineries account for 50 percent of the Northeast’s entire refinery capacity, and more than 30 U.S. refineries have closed in the last decade. Meehan said the subcommittee is in the process of finalizing the witnesses expected to testify at the March hearing (Meehan 2012-02-24).”
  • Will Roach, was chief executive of UTS Energy Corp., which held a 30% stake in Petro-Canada`s planned Fort Hills oil sands project, one of numerous multibillion-dollar projects on the drawing board in 2007.

Urls (legacy blog systems)

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Mapping Money

Economic activity which mainly uses raw materials such as waterways, sea, forests and soils, increased to a (GWP) (Gross World Product): (purchasing power parity exchange rates) of $23 trillion by 2002; $51.48 trillion by 2004 and $59.38 trillion by 2005 and in 2008 (market exchange rates) it was $60.69 trillion. Yet global wealth does not translate into an increase in global well-being. Extremes of wealth and poverty have increased and according to TD Bank Financial Group Economists Drummond and Tulk (2006) wealth disparities will intensify. In Canada alone, the wealthiest or Ultra High New Worth (UHNW) families, who comprise only a fraction of Canada’s households, controlled almost half the investable assets: $1.3-trillion of $2.4-trillion in 2007. The “vast majority” of that $1.3-trillion held by UHNW with family offices Chevreau, Jonathan. 2007-05-14).

Mavericks, tycoons and risk-takers, (many of whom became the Ultra High Net Worth (UHNW) individuals and families – people capable of seeing resources as opportunities and knowing how to manage them to their own advantage, are western heroes. As long as enough of the resources trickled down, translating into a reasonable quality of life for most people in the form of jobs, assets, properties, vehicles, services and common recreation and parklands, we remained in a love-hate relationship with the the elite who had status, wealth and/or power. In 1992 Ulrich Beck described a world where the unintended consequences of the production of the former were no longer benefiting the latter. Certitude in access to fundamentals like clean air, water, sufficient food, housing was eroding in places that had never doubted before. And how the UHNW are becoming even more enriched by using raw materials such as waterways, sea, forests and soil, is troubling.

The Bruntland Commission reported (1987) that since 1977 public concern had been seized by the realization that crises once considered to be separate and therefore more containable – such as environmental crisis, development crisis, energy crisis, (by 2009 include food crisis, water crisis, poverty crisis, financial crisis) – were in fact, global. The dissolving of boundaries between the neat compartmentalization of the globe and its resources into nation states and sectors (energy, agriculture, trade), and within broad areas of concern (environment, economics, social) which made them once seem as one-by-one problems with solutions, were already understood to be much more far-reaching and complex. The one-world one-earth future was no longer a utopian dream or dystopian nightmare, just a pragmatic reality Our Common Future.

Risk Management: Shrinking Watersheds and Aquifers

The most vulnerable to social exclusion, the most impoverished have been hit harder than ever before and their numbers are growing. We have the technical and scientific capacity to link data from different sources and scales and to make this information widely available through Web 2.0 or the social media – crucial information regarding public policies, legal aspects, ethics, (moral mathematics?) etc of the depletion of aquifers, watersheds, and the re-routing of limited water resources. Who is producing reliable assessments of extremes of water wealth and poverty? Without access to balanced, objective information how can we expect to have the individual, political and institutional will to establish objective criterion for indexing water resource use and management? With information, can we hope for knowledge and dream of wisdom?

Groundwater Processes are Virtually Unknown

“Many of Canada’s freshwater resources are under stress because of increasing municipal and industrial use and impacts from human activities. To ensure protection of public health and the aquatic environment, Canadians need state-of-the-art treatment plants capable of removing a growing array of pollutants from wastewaters. This includes emerging contaminants such as pharmaceuticals and endocrine-disrupting chemicals disposed of in the sewage system, pathogens such as the Corona virus, and nutrients that feed unwanted and potentially toxic algae growth. In Alberta, groundwater processes are virtually unknown. The full long-term impacts of water use by the oil and gas industry are poorly understood, and future expansion of this industry will rely on improved, cost-effective water conservation and management practices. Dr. Tom Harding of the University of Calgary’s Institute for Sustainable Energy, Environment and Economy does on research areas the recycling and reuse of water in oil and gas production (ISEEE).”

Is water a commodity or a human right?

According to T. Boone Pickens (b. 1919- ), the Texas oil tycoon, “he could be selling wind, water, natural gas, or uranium; it’s all a matter of supply and demand. “(Berfield 2008).” See also Mapping Blue Gold

According to the United Nations Committee on Economic, Social and Cultural Rights (UNESCO) water was formally recognized as a human right for the first time when [they] adopted the ‘General Comment’ on the right to water, and described the State’s legal responsibility in fulfilling that right. “The human right to drinking water is fundamental to life and health. Sufficient and safe drinking water is a precondition for the realization of human rights.” (UNESCO 2002-11-27).

According to BBC News Online environment correspondent, Alex Kirby, who explored fears of an impending global water crisis in his 2004 article when 1/3 of the world’s population were already living in water-stressed countries, “We have to rethink how much water we really need if we are to learn how to share the Earth’s supply (Kirby 2004-10-19).”

According to The World Commission on Environment and Development (WCED). 1987.”Our Common Future.” “Water is essential for life, and an adequate water supply is a prerequisite for human and economic development. It hasbeen recognized that human behavior can have an impact both on water, and on the global ecosystem, and that there is a need to regulate that behavior in order to stabilize and sustain our future (WCED, 1987 cited in Sullivan 2002). Global water resources are limited, and only through a more sustainable approach to water management, and more equitable and ecologically sensitive strategies of water allocation and use, can we hope to achieve the international development targets for poverty reduction that have been set for 2015 (DFID, 2000).”

According to University of Alberta’s Dr. Bill Donahue, Alberta treats water ”as an inexhaustible resource […] The disconnect between supply and demand is not sustainable (Simon 2002-08-09)..”

“Water, an increasingly valuable multiple-use resource, is the source of continuing conflict in Canada and abroad. Its use and control presents significant challenges to governments, stakeholders, and citizens. Canadian Water Politics explores the nature of water use conflicts and the need for institutional designs and reforms to meet the governance challenges now and in the future. The editors present an overview of the properties of water, the nature of water uses, and the institutions that underpin water politics. Contributors highlight specific water policy concerns and conflicts in various parts of Canada and cover issues ranging from the Walkerton drinking water tragedy, water export policy, Great Lakes pollution, St Lawrence River shipping, Alberta irrigation and oil production, and fisheries management on the Atlantic and Pacific coasts. Canada – with its Great Lakes, three oceans, and border with the US – provides an ideal reference point for studying water use rivalries, conflicts, and governance. By exploring the controversies surrounding water management in Canada, Canadian Water Politics is an essential source for citizens, officials, academics and students, and contributes to our understanding of natural resource management and environmental policy at home and globally (Review of Sproule-Jones, Johns and Heinmiller 2008-11-20).”

Who’s Who

The Brundtland Commission, formally the World Commission on Environment and Development (WCED), created by the United Nations in 1983, to address growing concern “about the accelerating deterioration of the human environment and natural resources and the consequences of that deterioration for economic and social development.” In establishing the commission, the UN General Assembly recognized that environmental problems were global in nature and determined that it was in the common interest of all nations to establish policies for sustainable development. (WCED 1987). Their report entitled “One Common Future” recommended securing water availability for the needs of future generations. “On the development side, in terms of absolute numbers there are more hungry people in the world than ever before, and their numbers are increasing. So are the numbers who cannot read or write, the numbers without safe water or safe and sound homes, and the numbers short of woodfuel with which to cook and warm themselves. The gap between rich and poor nations is widening – not shrinking – and there is little prospect, given present trends and institutional arrangements, that this process will be reversed (WCED 1987:1).”

Copenhagen Climate Council is an Anti-Kyoto organisation which “works against most US government efforts to address climate change.” The self-defined ”global climate leaders” are in fact business leaders as CEOs of major global corporations, hoping to seize “seize the unique opportunity which the Copenhagen Summit 2009 offers to do something good for the global environment and at the same time do good business.” The U.N.’s post-Kyoto, post-2012 negotiations will be finalised in Copenhagen in 2009. Global business leaders issued “The Copenhagen Call” at the close of the World Business Summit on Climate Change on May 26 where CEOs discussed “how their firms can help solve the climate crisis through innovative business models, new partnerships, and the development of low-carbon technologies. They will send a strong message to the negotiating governments on how to remove barriers and create incentives for implementation of new solutions in a post-Kyoto framework.” The Climate Council is represented by Don Pearlman, an international anti-Kyoto lobbyist who was a paid adviser to the Saudi and Kuwaiti governments who followed the US line against Kyoto. Ms Dobriansky met Don Pearlman to “solicit [his] views as part of our dialogue with friends and allies (Vidal 2005-06-08).”

Maud Barlow is the National Chairperson of the Council of Canadians- A citizen’s watchdog organization with over 100,000 members. One of their ongoing campaigns is that water is a public trust which belongs to everyone. She is also the co-author of Blue Gold: The Fight to Stop the Corporate Theft of the World’s Water.

Bechtel Corporation (Bechtel Group) is the largest engineering company in the United States, ranking as the 7th-largest privately owned company in the U.S. With headquarters in San Francisco. wiki Bechtel was forced to back down on its efforts to taking control of the Cochabamba, Bolivia water supply and privatizing it in 2000 when Bolivian protesters were joined by overwhelming international support. Bechtel Corporation, one of the world’s largest engineering and construction services companies has been owned and operated by the Bechtel family since incorporating the company in 1945. It was founded by Warren A. Bechtel (1872 – 1933) in 1898. The current Bechtel CEO is Riley P. Bechtel, one of the richest men in the United States. wiki

Paula Dobriansky, US under-secretary of state for President George Bush’s administration between 2001 and 2004, sought the advice of anti-Kyoto Exxon executives on what climate change policies Exxon might find acceptable and thanking them for their active involvement in helping to determine climate change policy. These exchanges were revealed in the US State Department briefing papers, “documents, which emerged as Tony Blair visited the White House for discussions on climate change before next month’s G8 meeting [2005], reinforc[ing] widely-held suspicions of how close the company [Exxon] is to the administration and its role in helping to formulate US policy(Vidal 2005-06-08).”

Dr. Bill Donahue of the University of Alberta was quoted in the New York Times: Alberta treats water ”as an inexhaustible resource […] The disconnect between supply and demand is not sustainable (Simon 2002-08-09)..” Dr. Bill Donahue of the University of Alberta’s Environmental Research and Studies Centre said his research at Muriel Lake suggested that the oil companies’ appetite for water was having a long-term effect. Although heavy rains in 1997 replenished many other lakes in the area, but the level of Muriel Lake is falling again. Mr. Donahue said the addition of chemicals to water used in oil recovery and the fact that much of the recycled water ends up in deep underground reservoirs meant that ”ultimately, it is lost from the normal water cycle (Simon 2002-08-09)..” “The Muriel Lake Basin Management Society was formed in 1999 in response to these severe losses of water. In 2002, Dr. Bill Donahue, with the support of Dr. Dave Schindler, the Gordon Foundation, the Natural Sciences and Engineering Council of Canada, and ERSC, began a study to determine the local and regional water budgets. Drs. Bill Donahue and Alex Wolfe also began a study of the history of water quality, biology, and climate change in Muriel Lake.” Limnologist Anne-Marie Anderson reported that the lake levels of Muriel Lake (northeast of Edmonton and close to the hub of oil sands activity, including Imperial’s Cold Lake operation) were monitored since 1967. The lake reached its maximum in 1974, a very wet year but since then water levels declined steadily, a drop in lake level of nearly 3 m in 2000 from 6.6 m in 1962. As a result of the drop in lake levels, shoreline width has increased considerably. This amounts to perhaps a 50 to 60% loss in the volume of water. There are also concerns that the decline in water levels is resulting in a deterioration of lake water quality and fishing. (Anderson 2000-04).

Exxon the US’s most valuable company valued at $379bn (£206bn) dominates The Global Climate Coalition GGC, and is the main anti-Kyoto US industry group. President Bush considered Exxon “among the companies most actively and prominently opposed to binding approaches [like Kyoto] to cut greenhouse gas emissions […] Paula Dobriansky, US under-secretary of state for President George Bush’s administration between 2001 and 2004, sought the advice of anti-Kyoto Exxon executives on what climate change policies Exxon might find acceptable and thanking them for their active involvement in helping to determine climate change policy. These exchanges were revealed in the US State Department briefing papers, “documents, which emerged as Tony Blair visited the White House for discussions on climate change before next month’s G8 meeting [2005], reinforc[ing] widely-held suspicions of how close the company [Exxon] is to the administration and its role in helping to formulate US policy(Vidal 2005-06-08).”

The Global Climate Coalition GGC, dominated by Exxon, is the main anti-Kyoto US industry group. President Bush considered Exxon “among the companies most actively and prominently opposed to binding approaches [like Kyoto] to cut greenhouse gas emissions(Vidal 2005-06-08).”

Oscar Olivera, was secretary of the Bolivian Federation of Factory Workers. In 2006 he addressed the World Development Movement conference held in Britain on the theme of “Whose Rules Rule.” He was a protest leader against water privatisation by the US-based multinational company Bechtel when Bechtel came to Cochabamba, Bolivia with the intention of taking control of the water supply and privatizing it in 2000. Olivera won the 2001 Goldman environment prize.

T. Boone Pickens (b. 1919- ) Pickens, the Texas oil tycoon, who made his fortune in oilpatch investments, is now planning on building the world’s largest wind farm in Texas. In 2008 he introduced “The Pickens Plan, [which called] for the United States to cut its dependence on foreign oil by more than one-third by making natural gas and wind power much bigger parts of America’s energy supply.” (CBC 2009-06-17.) He proposes that the private sector build thousands of wind turbines that could potentially supply one-fifth of electricity in the U.S. He claims wind power would replace natural gas in power generation; natural gas could then replace diesel and gasoline as a transportation and the U.S. could become free from its foreign oil dependency. He insists that Canadian oil is not considered to be “foreign.” ( “CBC 2008-06-20).”

Pickens who sees water as blue gold and already owns more of it than any other American. He thirsts to increase his water assets. “T. Boone Pickens […] owns more water than any other individual in the U.S. and is looking to control even more. He hopes to sell the water he already [had in 2008], some 65 billion gallons a year, to Dallas, transporting it over 250 miles, 11 counties, and about 650 tracts of private property. The electricity generated by an enormous wind farm he is setting up in the Panhandle would also flow along that corridor. As far as Pickens is concerned, he could be selling wind, water, natural gas, or uranium; it’s all a matter of supply and demand. “(Berfield 2008).” In June of 2009 he claimed that he was very interested in Alberta as a potential site for his giant wind farms if he could make a better deal in Alberta than in Texas. He is already priming the Alberta business community. While he has carefully massaged his media image to be tauted as environmentally friendly and he has generously gifted the University of Calgary, his methods are shrewd, buying what others see as useless until they realize how much control he has over their oil, water and/or energy supply. He is persistent, single-minded and worked for decades to one by one change relevant laws in his favour in the Canada River watershed in Texas to gain the control he needed. Pickens donated $2.25 million in 2006 to establish the Boone Pickens Centre for Neurological Science and Advanced Technologies at the the Hotchkiss Brain Institute, University of Calgary, which was created by Pickens’ long-time friend Calgary Flames co-owner Harley Hotchkiss with a gift of $15 million in 2004. In June 2008 Pickens donated another $25 million to research at the Hotchkiss Brain Institute which is the largest donation ever given to the University of Calgary by a single person and the only philanthropic donation Pickens has made outside the U.S. Pickens, who has an estimated net worth of $3 billion, has given away $700 million from 2003 to 2008. Pickens lived in Calgary briefly in the 1960s working as a geologist ( “CBC 2008-06-20).”

T. Boone Pickens engineered a shrewd takeover of an 8 acres stretch of scrub-land near Amarillo, Roberts County, Texas. The acquisition of this land was “central to Pickens’ plan to create an agency to condemn property and sell tax-exempt bonds in the search for one of his other favorite commodities: water. Approval of the water district was all but certain as Texans voted [November 2007] in state and local elections. By law, only the two people who actually live on the eight acres will be allowed to vote: the manager of Pickens’ nearby Mesa Vista ranch and his wife. The other three owners, who will sit on the district’s board, all work for Pickens. Pickens “has pulled a shenanigan,” said Phillip Smith, a rancher who serves on a local water-conservation board. “He’s obtained the right of eminent domain like he was a big city. It’s supposed to be for the public good, not a private company.” Pickens and his allies say no shenanigans are involved. Once the district is created, the board will be able to issue tax-exempt bonds to finance construction of Pickens’ planned 328-mile, $2.2 billion pipeline to transport water from the Panhandle across the prairie to the suburbs of Dallas and San Antonio. If Pickens can’t find a buyer for the bonds or for his water – and he hasn’t yet – he might buy the bonds himself to jump-start the project, said his Dallas-based lawyer, Monty Humble of Vinson and Elkins. The board will spend about $110 million to buy the right-of-way for the pipeline, using the power of eminent domain to acquire property if necessary, Humble said. Still, Pickens faces obstacles. To help pay for construction, he plans to piggyback wind power on the water infrastructure. He plans wind farms on the ranchland and wants to run electricity cables along the right-of-way of Mesa’s water pipeline. All told, the wind and water project is expected to cost more than $10 billion. Pickens said he has about $100 million invested so far. “This is a $10 billion project,” he said in an interview. “It better be profitable.” Most of all, he needs a group of confirmed buyers for his water. That’s in part because of political resistance to his plan for acquiring water rights. Several Dallas-area water districts have refused to sign up. “We have real concerns about private control of water,” said Ken Kramer, director of the Texas Sierra Club. “Water is a resource, yet in some respects it is a commodity. It’s as essential to human life as air. That puts water in a different class.” John Spearman Jr., a Roberts County rancher and chairman of the Panhandle Groundwater Conservation District, is one of many local critics who contend that Pickens’ water play could upset conservation efforts and seeks to profit from shortages of a vital resource. “He has the legal authority to do it,” Spearman says. “We can’t stop him (Woellert 2007-11-07.”

Meera Karunananthan, water campaigner for The Council of Canadians opposes an expanded Alberta water market. “The water market system is absolutely not the solution. We consider water to be a human right. When you allocate according to the laws of the market, then you see water going to those who can pay the most. So it goes to the highest bidder.” She argues the government should instead create a hierarchy of water use, allocating to those who need it most — including the environment (Klaszus 2009-06-25).

The Kyoto Protocol is a protocol to the United Nations Framework Convention on Climate Change (UNFCCC or FCCC), an international environmental treaty The Kyoto Accord was first negotiated in Kyoto, Japan in December 1997, to “establish a legally binding international agreement, whereby all the participating nations commit themselves to tackling the issue of global warming and greenhouse gas emissions.” The objective was to stabilize and reconstruct “greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system.” The Kyoto negotiations built upon the research of The Intergovernmental Panel on Climate Change (IPCC) which predicted an average global rise in temperature of 1.4°C (2.5°F) to 5.8°C (10.4°F) between 1990 and 2100. The agreement finally came into force on 16 February 2005 when following ratification by Russia ratified it on 18 November 2004. As of 14 January 2009, 183 countries and the European Community ratified the agreement. The Kyoto Protocol include “commitments to reduce greenhouse gases that are legally binding; implementation to meet the Protocol objectives, to prepare policies and measures which reduce greenhouse gases; increasing absorption of these gases and use all mechanisms available, such as joint implementation, clean development mechanism and emissions trading; being rewarded with credits which allow more greenhouse gas emissions at home; minimizing impacts on developing countries by establishing an adaptation fund for climate change; accounting, reporting and review to ensure the integrity of the Protocol; compliance by establishing a compliance committee to enforce compliance with the commitments under the Protocol.” wiki

Vivendi water is the backbone of Vivendi company according to Maud Barlow, with c. 295,000 people working just in their water department alone. So these companies came onto the scene first in France interestingly enough because France flirted with the privatization of water first then moved over to Great Britain under Margaret Thatcher and then with the World Bank backing them have moved all through the third world where they are failing every single solitary place that they are operating.

Manthan Adhyayan Kendra centre, based in the Narmada Valley, was founded by Shripad Dharmadhikary in October 2001 to research, analyse and monitor water and energy issues. Manthan’s two major themes of work are (a) large dams, irrigation and hydropower and (b) Privatisation and commercialisation of water and power in India. Dharmadhikary was a full time activist of the Narmada Bachao Andolan for 12 years, the mass organisation of people affected by large dams on the Narmada river in India. He was closely associated with the World Commission on Dams from its inception to its follow up UNEP-Dams and Development Project. He has recently completed a study on hydropower dam building in the Himalayas for International Rivers titled Mountains of Concrete. Other publications include Unravelling Bhakra, the report of a three year study (2001-12 through 2004-12) led by him of the Bhakra Nangal project. This study claims to completely overturn many of the popular notions and perceptions associated with the Bhakra Nangal Project. Currently, Manthan is working on the issues and impacts of privatisation of the water sector in India, including a study of the Public Private Partnership (PPP) model that is being pushed in the water sector, and the implications – financial, economic, social, environmental and access – of large scale privatisation of hydropower.

Professor Cathy Ryan, Department of Geoscience and the BScEnvironmental Science Program, University of Calgary “has inspired inspired an undergraduate research programin Environmental Science, as part of which students work in partnership with government, private sector and non-governmental collaborators to collect and analyze original data. The results of these studies are reported back to community stakeholders at enthusiastically-attended open houses.Meanwhile, Professor Ryan’s active contributions to local watershed groups (among them, Friends of Fish Creek, Elbow River WatershedPartnership, Nose Creek Watershed Partnershipand the Bow River Basin Council) are further evi-dence of a community engagement that extends beyond the normal call of academic duties. As a Board Member of the Bow River Basin Councilfrom 2004 to 2008, she provided technical advice and was an invited speaker and presenter on research activities that informed local landuse policymaking.The value of Professor Ryan’s input, and a furthermeasure of her community service, is manifest infrequent invitations to participate in regional,municipal, provincial and national workshops. Beyond simply sharing research findings, these presentations help to guide groundwater man-agement initiatives, including a successful 2006 municipal bylaw proposal for Environmental Setbacks for the Bow and Elbow Rivers. Currently, Professor Ryan is also the Assistant Program Director for the Central American WaterResources Management Network, a training net-work designed to better enable Central American universities and local communities to protect their water resources. Professor Ryan has published on Central American hydrogeology and water quality, in addition to her research in Alberta.Professor Ryan’s research interests include thefate of agricultural, human, and industrial wastes in groundwater and surface water. An examination of the impact of Calgary waste water on theBow River led in turn to a part-time sabbatical appointment as a Senior Water Policy Advisor to the City of Calgary. Professor Ryan subsequently received the City of Calgary Environmental Achievement Award in June 2008. Professor Ryan received her BASc in Geological Engineering from Queen’s University and her MSc and PhD (1994) in Earth Sciences from the University of Waterloo. She is also an adjunct professor in the Schulich School of Engineering, and has been a member of the Faculty Association since 1997 (University of Calgary 2009 awards).”

World Bank “The initial hopes for privatisation were so high that donor spending on infrastructure fell in the expectation that the private sector would take up the slack. For example, World Bank lending for infrastructure investment declined by 50 per cent during 1993-2002, with much of this directed towards preparing firms for privatisation. In 2002, Bank lending for water and sanitation projects, in particular, was only 25 per cent of its annual average during 1993-97. At the same time, the World Bank increased its support for private investment in utilities through its International Finance Corporation (IFC) and its Multilateral Investment Guarantee Agency (MIGA). While Bank lending to public electricity utilities dropped from about $2.9 billion in 1990 to only $824 million in 2001, its sector lending to private investors rose from $45 million to $687 million. Lending about $20 billion to water supply projects over the last 12 years, the World Bank has not only been a principal financier of privatisation, it has also increasingly made its loans conditional on local governments privatising their waterworks. The ICIJ’s study of 276 World Bank water supply loans from 1990 to 2002 showed that 30 per cent required privatisation – the majority in the last five years (Molina and Chowla 2008-09-26.“)

World Water Council 2009 Report

Water Poverty Index This paper provides discussion of ways in which an interdisciplinary approach can be
taken to produce an integrated assessment of water stress and scarcity, linking physical estimates of water availability with socioeconomic variables that reflect poverty, i.e., a Water Poverty Index to contribute to more equitable solutions for water allocation. A ‘‘Water Poverty Index’’ would enable progress toward development targets to be monitored, and water projects to be better targeted to meet the needs of the current generation, while securing water availability for the needsof future generations, as recommended in the Brundtland Report (WCED 1987). It is known that poor households often suffer from poor water provision, and this results in a significant loss of time and effort, especially for women. Sullivan provided a summary of different approaches to establish a Water Poverty Index by linking the physical and social sciences to address this issue (Sullivan, Caroline. 2002 “Calculating a Water Poverty Index.” World Development. 30:7: 1195–1210).”

Sir Richard Branson Founder and CEO, Virgin Group, (Ultra High Net Worth (UHNW) is on The Copenhagen Climate Council. He “has recently pledged all profits from his Virgin air and rail interests over the next 10 years to combating rising global temperatures. However, the estimated $3bn will be invested in Virgin Fuels. Much of the investment will focus on biofuels, an alternative to oil-based fuels made from plants. […] “…in our particular case we are putting all the profit we have got from our airline business into trying to develop clean fuels so that hopefully one day we can actually have fuels that we can fly our plains by, that will not do any damage to the environment (Branson).”

Selected Watersheds

Bow River watershed

The San Joaquin River watershed originates in Martha Lake (California) and winds through California for 530 km flowing into the Sacramento-San Joaquin Delta and then San Francisco Bay. The basin area is 83,000 km2.

Selected Timeline of Events Related to Watersheds: Licensing Blue Gold or Managing a Human Right

1728 Mennonite brothers, the Bechtels, came to America in the early 1700s from Switzerland.

1846 German-born Heinrich Kreiser (aka Henry Miller) (Ultra High Net Worth (UHNW) immigrated to the United States arriving in California in 1850. The Miller and Lux company became the largest producer of cattle in California and one of the largest landowners in the United States, owning 1,400,000 acres (5,700 km2) directly and controlling nearly 22,000 square miles (57,000 km2) of cattle and farm land in California, Nevada, and Oregon. The Miller and Lux Corporation was headquartered in Los Banos, California, on the west side of the San Joaquin Valley. Miller played a major role in the development of much of the San Joaquin Valley during the late 19th century.

early 1900s The Alberta agricultural irrigation industry acquired massive water licences. Since then they have relied on the first-in-time, first-in-right licensing system which gave priority to whoever got water licences first (Klaszus 2009-06-25).. In Alberta, water has been traditionally allocated on the “first-in-time, first-in-right” principle for both surface and ground water. The older the licence, the higher that user is on the priority list. This allows the owners of the first licenses issued to access the full amount of water issued before newer licensees have access, regardless of use. Furthermore, water licenses granted under this principle have no expiry date. However, licenses issued under the Water Act are now issued for a fixed period. In a review of Canadian Water Politics (2008) Chris McLaughlin, CEO of the Niagara Escarpment Foundation agreed with the book’s insightful comments that “the historical path dependency of current water allocation privileges – first-in-time, first-in-right – continues to favour entrenched agricultural, industrial and commercial interests who had their water claims institutionalized in law well before the value of “sustainability” was recognized. The reality inhibits institutional change, especially the adaptation of institutions to evolving water conflicts and other shifts social-ecological realities (McLaughlin 2009:31).”

1913 Oil tycoon, John D. Rockefeller, who became the world’s first billionaire, was the wealthiest person in the modern history of the world. Ultra High Net Worth (UHNW)

1930s The Bechtel Six Companies, a joint venture of construction companies built The Hoover Dam, named after President Herbert Hoover). This hydroelectric dam on the Colorado River was at that time the largest civil engineering project ever undertaken.

1940s Friant Dam was constructed as part of the federal Bureau of Reclamation’s Central Valley Project in the 1940s. Its purpose was to divert the waters of the San Joaquin to maximize their use to help people, both to irrigate crops and to provide groundwater recharge. Most of the waters of the San Joaquin River are diverted into canals so that the river remains dry for a 17 miles (27 km) except when flood control requires additional releases from the dam.

1950s Using raw materials from watersheds, seas, forests and soils 80% of the global industrial growth since the 1880s occurred since 1950. Industrial production grew more than fifty-fold from 1887-1987. There was already a $13 trillion world economy in 1987 Our Common Future.

1963-10-22 Prime Minister Jawaharlal Nehru opened the 740-feet high Bhakra multipurpose hydroelectric project claiming to ushering an era of agriculture development, Nehru had aptly declared Bhakra ‘the temple of modern India’.

1966-08 Helsinki Rules on the uses of the Waters of International Rivers. 1966-08. Adopted by the International Law Association at the 52nd conference, held at Helsinki. Report of the Committee on the Uses of the Waters of International Rivers. London: International Law Association (1967).

1969 The world’s first ministry of environment was established in Japan in 1969.

1970 Canada introduced its Ministry of the Environment.

1971 Ontario introduced its Ministry of the Environment.

Late 1970s Most OECD countries had a comprehensive framework of laws and regulations concerning waste and pollution.

1987 “State of the environment: National reports.” Nairobi: UNEP.

1984-1987 The World Commission on Environment and Development reported that between October 1984. and April 1987: “The drought-triggered, environment-development crisis in Africa peaked, putting 36 million people at risk, killing perhaps a million; A leak from a pesticides factory in Bhopal, India, killed more than 2,000 people and blinded and injured over 200,000 more; Liquid gas tanks exploded in Mexico City, killing 1,000 and leaving thousands more homeless; The Chernobyl nuclear reactor explosion sent nuclear fallout across Europe, increasing the risks of future human cancers; Agricultural chemicals, solvents, and mercury flowed into the Rhine River during a warehouse fire in Switzerland, killing millions of fish and threatening drinking water in the Federal Republic of Germany and the Netherlands; An estimated 60 million people died of diarrhoeal diseases related to unsafe drinking water and malnutrition; most of the victims were children (WCED 1987).”

1987. The World Commission on Environment and Development (WCED) published their report entitled “Our Common Future,” known as the Brundtland Report.

1987 Report of the Expert Group Meeting on Strategic Approaches to Freshwater Management

1989 “[The] government of Argentina embarked on a major privatization program, and water and sewage were not excluded (Orwin 1999-08).” This contract [was] terminated in 1999. Problems with quality and cost prompted the new government, which had been in opposition when the contract was negotiated, to take the action. The major partner in the consortium, Vivendi, sued the region for compensation ( Orwin 1999-08).”

1992-04 Three Gorges Dam, so enormous it would become the world’s biggest dam, sparked the biggest political debate in Communist China’s history in the National People’s Congress, China’s annual parliament. Nearly one-third voted against the dam or abstained – an unprecedented figure (Coonan 2006-03-17.

1992 The degree of water privatization in Canada and the United States was minimal. While more than half of the American water utilities were privately owned, and while cities such as Indianapolis and Atlanta were increasingly contracting out their water and sewage services, public utilities remained the norm in large cities; in 1992, they served 85 per cent of the U. S. population ( From Orwin 1999-08).

Early 1990s “[C]ritics in both the public and the private sector had questioned the appropriateness of a regulatory approach based on what was called “the old system of command and approaches such as economic instruments or voluntary measures. At the same time, governments were facing strong fiscal pressures to reduce the cost of their operations in order to stop the downward spiral of growing deficits and debt. These fiscal pressures were given ideological impetus by political parties that favored deregulation, downsizing and privatization (Ministry of the Environment research 2000).”

1992 Sullivan (1992) called for the political will and institutional acceptance so that individual countries would be enable to produce their own integrated assessments of water poverty. She recommended the use of participatory action research at the community level to involve and educate local people in terms of their water needs enabling them to better understand, communicate and negotiate with policy makers. “By providing information about household welfare, and water stress at the household and community level, this locally generated data can form the core of the Water Poverty Index (WPI).

1993 “The initial hopes for privatisation were so high that donor spending on infrastructure fell in the expectation that the private sector would take up the slack. For example, World Bank lending for infrastructure investment declined by 50 per cent during 1993-2002, with much of this directed towards preparing firms for privatisation. In 2002, Bank lending for water and sanitation projects, in particular, was only 25 per cent of its annual average during 1993-97. At the same time, the World Bank increased its support for private investment in utilities through its International Finance Corporation (IFC) and its Multilateral Investment Guarantee Agency (MIGA). While Bank lending to public electricity utilities dropped from about $2.9 billion in 1990 to only $824 million in 2001, its sector lending to private investors rose from $45 million to $687 million. Lending about $20 billion to water supply projects over the last 12 years, the World Bank has not only been a principal financier of privatisation, it has also increasingly made its loans conditional on local governments privatising their waterworks. The ICIJ’s study of 276 World Bank water supply loans from 1990 to 2002 showed that 30 per cent required privatisation – the majority in the last five years (Molina and Chowla 2008-09-26.“)

1994 Ontario passed the Environmental Bill of Rights.

1994 In Ecuador the Inter-American Development Bank (IDB) giving a grant to the government to set up the necessary reforms of pricing and regulatory procedures to encourage further privatization in the water and sewage sector. By 1999 The government of Ecuador planned on privatizing all water utilities, for the sake of financing further investment ( Orwin 1999-08).

1995-06 Mike Harris as Premier of Ontario , declared a “Common Sense Revolution” in which he announced that Ontario was “open for business” promised to cut red tape and get government (particularly the Environment ministry) “out of the face” of business. Over the next two years, the budget of Moe was cut nearly 50% and the staff was reduced by more than 40% . The impact of these cuts on the capacity of Moe to serve the public interest in relation to the taro operations was cited in print media coverage of the controversy (Ministry of the Environment (MOE) research 2000).”

1995-11 The World Bank offered large loans to Bogota, Columbia to convert the dysfunctional municipal monopoly into a privatized utility.

Postel, S. L. (1996). Dividing the waters: food security, ecosystem health, and the new policies of scarcity. Worldwatch Paper No. 132, P29. Washington, DC:
Worldwatch Institute.

1996-12 The government of Chili “introduced a bill to fully privatize state-run water works, the first such legislation in South America. It faced strong opposition even within the ruling coalition but the bill was passed with some compromises, including a stipulation that the government must maintain 35 per cent equity, with some of the remainder being owned by the company employees. In April 1997, the government announced its intention to privatize wastewater treatment as well. The privatization package was finally approved in January 1998, and 55 per cent of the utilities involved were expected to be privatized by March 1999. ( From Orwin 1999-08).

1997-03 The 1st World Water Forum was held in Marrakech, Morocco.

1997-07 La Paz and El Alto, Bolivia “turned their water and sewerage systems over to the French company Lyonnaise des Eaux in July 1997, despite large protests and agitations by the opposition, which periodically paralysed both municipalities. Interestingly, the coalition in favour of the agreement included not only the governments and the water companies but the labor unions as well, who helped ensure the completion of the process. Lyonnaise des Eaux own[ed] 34 per cent of the new company, while a combination of Bolivian and Argentine directors own[ed] the rest ( Orwin 1999-08).”

1998 Postel, S. L. 1998. “Water for food production: will there be enough in 2025?” Biosciences. 28:629–637.

1998-09-17 Orwin’s report on the privatization of water reveals his enthusiasm for the privatization of water and sewage systems. Vivendi and Suez-Lyonnaise des Eaux joined to vie for the concession for Rio de Janeiro’s water and sewage systems. At that time some of Brazil’s municipal governments that own[ed] the water and sewage systems sought private sector help. Aguas de Limeira, a joint venture between the French conglomerate Lyonnaise des Eaux and Companhia Brasileira de Projectos e Obras, provided water and sanitation to the 250,000 people of the Sao Paulo suburb of Limeira. Degremont, Lyon built two water purification plants in Sao Paulo: one for Sao Miguel (population 700,000) and one for Novo Mondo (population 1,000,000) […] Vivendi acquired 30% shares in Sanepar, which serves seven million people in the state of Parana. ( Orwin 1999-08).”

1998 Author Shripad Dharmadhikary writes: “the Bank’s process of generating knowledge is flawed and exclusionary. It excludes common people, and their traditional expertise and knowledge. The Bank’s knowledge is frequently created by highly paid, often international, consultants, who have little knowledge of local conditions. The knowledge creation is mostly directed towards arriving at a pre-determined set of policies – privatisation and globalisation. This knowledge creation is often selective, in that information, evidence or experiences that do not support these pre-determined outcomes are ignored. The book is based on case studies of the Indian water sector review in 1998, the Bank-support Public-Private Infrastructure Advisory Facility (see Update 56), water privatisation in Delhi, and a project for water restructuring in the Indian state of Madhya Pradesh. Dharmadhikary finds that “[the Bank’s] policies have cut people’s access to water, led to environmental destruction, resulted in displacement and destitution of people, stifled better options for water resource management, have had huge opportunity costs, and privileged corporate profits over social responsibility and equity.”

1999 “In Canada, virtually all water and sewage systems [were] publicly owned and operated. However, privatization [was] very slowly getting off the ground in Ontario, where private companies serve[d] 500,000 people,(2) approximately 4.5 per cent of the provincial population. There [was] also some scattered private participation in Alberta and British Columbia, and privatization [was] being considered by two of the larger Maritime cities ( Orwin 1999-08).”

1999 The Inter-American Development Bank approved a $70-million loan to reform regulatory systems so as to encourage private sector involvement in Bolivia. Bolivia had begun “major restructuring of the water sector in 1991, which involved the transfer of powers from the central level to the municipal level ( Orwin 1999-08).”

1999 As the water crisis deepens countries are depleting groundwater resources accumulated over thousands of years. In India alone the water table dropped by as much as 3m in 1999. As groundwater is exploited, water tables in parts of China, India, West Asia, the former Soviet Union and the western United States were already dropping by 2004 according to a special 2004 report (Kirby 2004-10-19).

2000-03 The Second World Water Forum in The Hague, The Netherlands “generated a lot of debate on the Water Vision for the Future and the associated Framework for Action, dealing with the state and ownership of water resources, their development potential, management and financing models, and their impact on poverty, social, cultural and economic development and the environment. The Ministerial Declaration identifed meeting basic water needs, securing food supply, protecting ecosystems, sharing water resources, managing risks, valuing water and governing water wisely as the key challenges for our direct future. 15,000 people were involved in the Vision related discussions; there were 5,700 participants in the Forum; there were 114 ministers and official of 130 countries at the Ministerial Conference; 500 journalists; 32,500 visitors at the World Water Fair.”

2000 “The UN-backed World Commission on Water estimated in 2000 that an additional $100bn a year would be needed to tackle water scarcity worldwide (Kirby 2004-10-19).”

2000-04 Water Sciences Branch, Water Management Division, Alberta Environmental Service Limnologist Anne-Marie Anderson reported that the lake levels of Muriel Lake (northeast of Edmonton and close to the hub of oil sands activity, including Imperial’s Cold Lake operation) were monitored since 1967. The lake reached its maximum in 1974, a very wet year but since then water levels declined steadily, a drop in lake level of nearly 3 m in 2000 from 6.6 m in 1962. As a result of the drop in lake levels, shoreline width has increased considerably. This amounts to perhaps a 50 to 60% loss in the volume of water. There are also concerns that the decline in water levels is resulting in a deterioration of lake water quality and fishing. (Anderson 2000-04). Dr. Bill Donahue of the University of Alberta’s Environmental Research and Studies Centre said his research at Muriel Lake suggested that the oil companies’ appetite for water was having a long-term effect. Although heavy rains in 1997 replenished many other lakes in the area, but the level of Muriel Lake is falling again. Mr. Donahue said the addition of chemicals to water used in oil recovery and the fact that much of the recycled water ends up in deep underground reservoirs meant that ”ultimately, it is lost from the normal water cycle (Simon 2002-08-09)..” “The Muriel Lake Basin Management Society was formed in 1999 in response to these severe losses of water. In 2002, Dr. Bill Donahue, with the support of Dr. Dave Schindler, the Gordon Foundation, the Natural Sciences and Engineering Council of Canada, and ERSC, began a study to determine the local and regional water budgets. Drs. Bill Donahue and Alex Wolfe also began a study of the history of water quality, biology, and climate change in Muriel Lake.”

2000-03 Goals set forth at the Millennium Summit of the United Nations in New York.

2001 The International Freshwater Conference was held in Bonn.

2002 The World Summit on Sustainable Development was held in Johannesburg.

2002-02-15 President Bush pledged to reduce “greenhouse gas intensity” by 18 % from 2002 to 2012. New York Times journalist Paul Krugman cautioned however that the algorithm to calculate “greenhouse gas intensity” divides “greenhouse gas intensity” by the gross national product GDP which by most forecasts will expand by 30% from 2002 to 2012. This proposal then will allow a substantial increase in (mainly carbon dioxide, released by burning fossil fuels) that cause global warming. Krugman argued that the Bush administration exaggerated the economic costs such as the destruction of millions of jobs if the Kyoto Protocol’s environmental regulations were implemented. In 2001 Dick Cheney claimed that environmental rules had caused a shortage of refining capacity.(Krugman 2002-02-15)

2002-08-09 Western Canada had its worst drought in decades and environmentalists, farming groups and others called for tighter control of the oil industry. New York Times Business journalist claimed that Alberta’s oil companies use nearly half as much water as the million people in Alberta’s commercial center, Calgary. […] The energy industry makes up about a quarter of Alberta’s economy. Processes of extracting oil from conventional wells and from oil sands are water-intensive: c. 10 barrels of water are needed to extract one barrel of oil. The Canadian Association of Petroleum Producers claimed that about 55% of Alberta’s oil output, totaling 1.55m barrels a day, is now brought to the surface with the help of enhanced water-assisted methods. The water used in the oil sands “ends up in deep underground reservoirs meant that ”ultimately, it is lost from the normal water cycle(Simon 2002-08-09).

2002-11-27 Water was formally recognized as a human right for the first time when the United Nations Committee on Economic, Social and Cultural Rights adopted the ‘General Comment’ on the right to water, and described the State’s legal responsibility in fulfilling that right. “The human right to drinking water is fundamental to life and health. Sufficient and safe drinking water is a precondition for the realization of human rights.” (UNESCO 2002-11-27).

2003-03 The 3rd World Water Forum held in Kyoto, Shiga and Osaka, Japan “took the debate a step further also within the context of the new commitments of meeting the goals set forth at the Millennium Summit of the United Nations in New York (2000), the International Freshwater Conference in Bonn (2001) and the World Summit on Sustainable Development in Johannesburg (2002). The large number of participants ensured that a variety of stakeholders and opinions were represented aiming at accepting differences and finding a common way forward.” There were 24,000 participants, 1000 journalists and 130 ministers in attendance.

2004 A federal judge ruled the U.S. Bureau of Reclamation in violation of California law for not letting enough water flow which has resulted in the depletion of the historic Chinook salmon population on the San Joaquin River which it is claimed, once supported the southernmost salmon run in North America.

2004-10-19 BBC News Online environment correspondent, Alex Kirby, explored fears of an impending global water crisis. In 2004 1/3 of the world’s population were already living in water-stressed countries. By 2025, this is expected to rise to two-thirds. His report includes some potential solutions including new technologies that could clean up polluted waters and so making more water useable, more efficient agricultural water-use practices, drought-resistant plants, collecting rainfall, dams, desalinisation. Many of these solutions would require huge quantities of affordable, useable energy sources which also poses an enormous challenge. Kirby concluded, “We have to rethink how much water we really need if we are to learn how to share the Earth’s supply (Kirby 2004-10-19).”

2005-02-16 The Kyoto Protocol climate change conference leading up to the Kyoto Accord was first debated in Kyoto, Japan in December 1997, to “establish a legally binding international agreement, whereby all the participating nations commit themselves to tackling the issue of global warming and greenhouse gas emissions.” The objective was to stabilize and reconstruct “greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system.” The Kyoto negotiations built upon the research of The Intergovernmental Panel on Climate Change (IPCC) which predicted an average global rise in temperature of 1.4°C (2.5°F) to 5.8°C (10.4°F) between 1990 and 2100. The agreement finally came into force on 16 February 2005 when following ratification by Russia ratified it on 18 November 2004. As of 14 January 2009, 183 countries and the European Community ratified the agreement. The Kyoto Protocol include “commitments to reduce greenhouse gases that are legally binding; implementation to meet the Protocol objectives, to prepare policies and measures which reduce greenhouse gases; increasing absorption of these gases and use all mechanisms available, such as joint implementation, clean development mechanism and emissions trading; being rewarded with credits which allow more greenhouse gas emissions at home; minimizing impacts on developing countries by establishing an adaptation fund for climate change; accounting, reporting and review to ensure the integrity of the Protocol; compliance by establishing a compliance committee to enforce compliance with the commitments under the Protocol.” wiki

2005-06-08 John Vidal, environment editor for the Guardian based on according to US State Department papers, claimed that pressure from ExxonMobil, the world’s most powerful oil company, and other industries, influenced President George Bush in his decision to not sign the Kyoto global warming treaty(Vidal 2005-06-08).

2005-06-09 BBC reported that Philip Cooney, Chief of Staff for the White House Council on Environmental Quality, “which helps devise and promote the administration’s policies on environmental issues […] removed or adjusted descriptions of climate research that had already been approved by government scientists.” According to the New York Times Cooney “made dozens of changes to reports issued in 2002 and 2003, and many appeared in final versions of major administration climate reports.” Rick Piltz formerly from the office of co-ordinates U. S. government climate research resigned and reported the watered down reports to the New York Times. Philip Cooney, a lawyer by training has no scientific education. He was a lobbyist at the American Petroleum Institute, the largest oil industry trade group. He is a lawyer by training, with no scientific background. (BBC 2005-06-09).

2006-03-22 The 4th World Water Forum was held in Mexico City with seven days of debates and exchanges. Close to 20,000 people from throughout the world participated in 206 working sessions where a total of 1600 local actions were presented. Participants included official representatives and delegates from 140 countries out of which 120 mayors and 150 legislators, 1395 journalists experts, NGOs, companies, civil society representatives were involved. The Ministerial Conference brought together 78 Ministers.

2006-03 Uruguay, Cuba, Venezuela, Ecuador and other countries drafted a counter declaration at the 2006 World Water Forum when the official ministerial declaration did not include water as a human right (Karunananthan 2009-03-18).

2006-03 According to an article by (Coonan 2006-03-17, environmentalists viewed the 2006 completion of the Three Gorges dam on the Yangtze River in China, the world’s biggest, as a monstrous natural catastrophe. Between one to two two million people were moved because their homes were flooded by the rising water of the reservoir. Environmental activist and journalist Dai Qing, the most famous opponent of Three Gorges dam, wrote a book entitled Yangtze! Yangtze!, for which she was imprisoned for 10 months in a maximum security prison and faced with the treat of the death sentence. She opposed the dam because of the lack of public debate, the lack of independent analysis. “Further along the river, construction of Xiloudu dam has begun, which will be the third biggest in the world when it is finished. Three other dams are in the exploration stage near Xiloudu – including one that will flood the beautiful Tiger Leaping Gorge in Sichuan province. All four of these dams together will produce more electricity than the Three Gorges dam (Coonan 2006-03-17.”

2000 Oscar Olivera’s article in The Guardian described how the water wars began in Cochabamba, Bolivia when Bechtel, a large multinational, came there with the intention of taking control of the water supply and privatizing it in 2000.Olivera 2006-07-19.”

2006-08-31 The Alberta provincial government under Premier Stelmach closed southern Alberta river basins to new water licences when they realized they had over-allocated water. Some growing municipalities with junior licences began the long and laborious process of negotiating transfers water licenses from willing irrigators and other senior licensees (Klaszus 2009-06-25).. “Alberta Environment announced the province will no longer accept new water licence applications for the Bow, Oldman, and South Saskatchewan sub-basins. Water allocations may still be obtained through water allocation transfers. The newly minted water management plan, the first of its kind in Alberta, will ban new demands from the three rivers, which are part of the South Saskatchewan River basin that feeds water to Calgary, Red Deer, Lethbridge, Brooks and Medicine Hat (Alberta Water).”

2006-2009 According to Alberta Environment about 30 water licence transfers have occurred between junior and senior licensees since 2006 when Premier Stelmach closed southern Alberta river basins to new water licences (Klaszus 2009-06-25).

2007 The Province of Alberta’s budget showed a surplus of $8.5 billion. Alberta is the economic engine of Canada but it is also the country’s worst industrial greenhouse gas emitter. Calgary-based EnCana alone earned profits of $6.4 billion, a record-breaking sum. An energy war is predicted between Eastern and Western Canada (Kohler 2007-10-08).

2007-10-08 Journalist Kohler reviewed William Marsden’s (2007) book entitled em>Stupid to the Last Drop in which outlined the environmental threats posed by Alberta’s energy industry, claiming that the [province of Alberta were] going to be the “architects of their own destruction.” “Left unfettered, Alberta’s energy sector will, by the end of this century, transform the southern part of the province into a desert and its north into a treeless, toxic swamp. Driven both by global warming and oil and gas developments, temperatures in Alberta will soar by as much as eight degrees. The Athabasca River will slow to a trickle, parching the remainder of the province’s forests and encouraging them to burst into flame, generating vast quantities of CO2. (Kohler 2007-10-08).”

2007 Despite comprising only a fraction of Canada’s households, the wealthiest families control almost half the investable assets: $1.3-trillion of $2.4-trillion. The “vast majority” of that $1.3-trillion held by wealthy families is controlled by the decamillionaires. They are the ones with “family offices.” Tim Cestnick, of WaterStreet Family Wealth Counsel, set the threshold for High New Worth HNW as $5-million to $20-million in net worth and for Ultra High New Worth UHNW at $20-million-plus. Bederman classified households with $1-million to $5-million as “mass millionaires.” There were 335,000 such households in Canada in 2007. There were 60,000 “penta millionaires” (with net worths of $5-million to $10-million) and 20,000 decamillionaire households with more than $10-million in 2007. Despite comprising only a fraction of Canada’s households, the wealthiest families control almost half the investable assets: $1.3-trillion of $2.4-trillion. The “vast majority” of that $1.3-trillion held by wealthy families is controlled by the decamillionaires. They are the ones with “family offices “Chevreau, Jonathan. 2007-05-14).

2007-10-03 Funded by a $30 million grant from the Government of Alberta through Alberta Ingenuity, (whose President and CEO is Dr. Peter Hackett) the Alberta Water Research Institute (chaired by Dr. Lorne Taylor, the former Minister of Alberta Environment) claim they will fund innovative, practical water research that will “tackle some of Alberta’s most pressing water-related environmental issues, including habitat decline, biodiversity loss, water flow and water quality. [T]he research will involve a multi-disciplinary approach — including biologists, engineers, economists and other social scientists — to provide the knowledge water users, managers, industry, policy makers and consumers to help them make informed choices. [T]he Alberta Water Research Institute works in collaboration with The Alberta Energy Research Institute (AERI).” Their work focusses on Water Treatment and Recycling; Oilsands Tailings Treatment with water recycling; reducing water use in electrical power generation

2007-11-07 T. Boone Pickens engineered one of a shrewd takeover of an 8 acres stretch of scrub-land near Amarillo, Roberts County, Texas. The acquisition of this land was “central to Pickens’ plan to create an agency to condemn property and sell tax-exempt bonds in the search for one of his other favorite commodities: water. Approval of the water district was all but certain as Texans voted Tuesday in state and local elections. By law, only the two people who actually live on the eight acres will be allowed to vote: the manager of Pickens’ nearby Mesa Vista ranch and his wife. The other three owners, who will sit on the district’s board, all work for Pickens. Pickens “has pulled a shenanigan,” said Phillip Smith, a rancher who serves on a local water-conservation board. “He’s obtained the right of eminent domain like he was a big city. It’s supposed to be for the public good, not a private company.” Pickens and his allies say no shenanigans are involved. Once the district is created, the board will be able to issue tax-exempt bonds to finance construction of Pickens’ planned 328-mile, $2.2 billion pipeline to transport water from the Panhandle across the prairie to the suburbs of Dallas and San Antonio. If Pickens can’t find a buyer for the bonds or for his water – and he hasn’t yet – he might buy the bonds himself to jump-start the project, said his Dallas-based lawyer, Monty Humble of Vinson and Elkins. The board will spend about $110 million to buy the right-of-way for the pipeline, using the power of eminent domain to acquire property if necessary, Humble said. Still, Pickens faces obstacles. To help pay for construction, he plans to piggyback wind power on the water infrastructure. He plans wind farms on the ranchland and wants to run electricity cables along the right-of-way of Mesa’s water pipeline. All told, the wind and water project is expected to cost more than $10 billion. Pickens said he has about $100 million invested so far. “This is a $10 billion project,” he said in an interview. “It better be profitable.” Most of all, he needs a group of confirmed buyers for his water. That’s in part because of political resistance to his plan for acquiring water rights. Several Dallas-area water districts have refused to sign up. “We have real concerns about private control of water,” said Ken Kramer, director of the Texas Sierra Club. “Water is a resource, yet in some respects it is a commodity. It’s as essential to human life as air. That puts water in a different class.” John Spearman Jr., a Roberts County rancher and chairman of the Panhandle Groundwater Conservation District, is one of many local critics who contend that Pickens’ water play could upset conservation efforts and seeks to profit from shortages of a vital resource. “He has the legal authority to do it,” Spearman says. “We can’t stop him (Woellert 2007-11-07.”

2008-06-12 In 2008 he introduced “The Pickens Plan, [which called] for the United States to cut its dependence on foreign oil by more than one-third by making natural gas and wind power much bigger parts of America’s energy supply.” (CBC 2009-06-17.) “T. Boone Pickens […] owns more water than any other individual in the U.S. and is looking to control even more. He hopes to sell the water he already has, some 65 billion gallons a year, to Dallas, transporting it over 250 miles, 11 counties, and about 650 tracts of private property. The electricity generated by an enormous wind farm he is setting up in the Panhandle would also flow along that corridor. As far as Pickens is concerned, he could be selling wind, water, natural gas, or uranium; it’s all a matter of supply and demand. “(Berfield 2008).” Business Week

2008-05-08 The U.S. Senate committee gave its approval to restore a 240 km stretch of the dried-up San Joaquin River and the historic Chinook salmon run spawning area. The settlement agreement, supported by almost every member of the California congressional delegation, anticipated spending as much as $800 million U.S. with farmers paying c. $330 million, and the rest from California bonds and the federal government.

2008-06 T. Boone Pickens a Texas oil tycoon, who sees water as blue gold and already owns more of it than any other American. He thirsts to increase his water assets and he is now showing a great interest in Alberta. While he has carefully massaged his media image to be tauted as environmentally friendly and he has generously gifted the University of Calgary, his methods are shrewd, buying what others see as useless until they realize how much control he has over their water supply. He is persistent and worked for decades to change laws in his favour in the Canada River watershed in Texas. Pickens donated $2.25 million in 2006 to establish the Boone Pickens Centre for Neurological Science and Advanced Technologies at the the Hotchkiss Brain Institute, University of Calgary, which was created by Pickens’ long-time friend Calgary Flames co-owner Harley Hotchkiss with a gift of $15 million in 2004. In June 2008 Pickens donated another $25 million to research at the Hotchkiss Brain Institute which is the largest donation ever given to the University of Calgary by a single person and the only philanthropic donation Pickens has made outside the U.S. Pickens, who has an estimated net worth of $3 billion, has given away $700 million from 2003 to 2008. Pickens lived in Calgary briefly in the 1960s working as a geologist ( “CBC 2008-06-20).”

2008-09-26 Molina and Chowla argued that the World Bank has been a principal financier of privatisation and has increasingly made its loans conditional on local governments privatising their waterworks. The ICIJ’s study of 276 World Bank water supply loans from 1990 to 2002 showed that 30 per cent required privatisation – the majority in the last five years (Molina and Chowla 2008-09-26.“). The initial hopes for privatisation have faded as governments work towards de-privatization of water services (Molina and Chowla 2008-09-26.“)

2009-03-18The Council of Canadians, Our Water Commons, Food and Water Watch and other organizations held a panel at the official World Water Forum to launch a report highlighting success stories of communities working to protect the water commons through a communitarian approach to water management and calling for the recognition of water as a human right.Karunananthan 2009-03-18. .”

2009-03-16 to 2009-03-22 The world’s biggest water-related event, with over 25,000 participants, the Fifth World Water Forum was held in Istanbul, Turkey on the theme of “Bridging Divides for Water.”

2009-06 Jim Webber, general manager of the Western Irrigation District wants the province to respect the first-in-time, first-in-right licensing system to prevent an economic disaster for the 400+ farms east of Calgary and a handful of communities, including Strathmore (Klaszus 2009-06-25).

2009-03-29 The United States Congress appropriated $88 million to help fund the restoring of salmon spawning grounds as part of a bill providing wilderness protection to more than 2 millions acres in nine states.

2009-06-29 In California the debate has become increasingly polarized between agriculture and environmental interests over the distribution of water in the face of a three year drought that has left 450,000 acres unplanted in California as well as causing the third collapse of the salmon industry as the San Joaquin River spawning grounds dried up. (In 2004 a federal judge ruled the U.S. Bureau of Reclamation in violation of California law for not letting enough water flow which has resulted in the depletion of the historic Chinook salmon population on the San Joaquin River which it is claimed, once supported the southernmost salmon run in North America. ) In Fresno County alone, normally the US most important agriculture county, farmers cannot plant in 262,000 acres because of a lack of water.Cone 2009-06-29).

CBC. 2009-06-17. “Texas oil billionaire eyes Alberta wind power.”

Notes

1. March 22nd is World Water Day

2. Since moving to Calgary, Alberta we have been following our source of city water. The Bow Glacier was stunningly beautiful last August. But like glaciers worldwide it is receding. The Elbow River which also flows through Calgary was very high this year even though much of Alberta’s farmland was experiencing a devastating drought. We’ve installed rainbarrels, planted drought-resistance perennials, overseeded our water-thirsty Kentucky grass with Sheep’s Fescue and generally tried to be more water wise, I am following water stories. Alberta has four major rivers tha drain most of the province: 1. The Peace and 2. Athabaska rivers drain the northern half of Alberta with their waters joining water from Lake Athabaska to form Alberta’s largest river, the Slave River, which flows into the Northwest Territories and on to the Arctic Ocean; 3. The North Saskatchewan River winds through the foothills and parkland of central Alberta. 4. The South Saskatchewan River, which is fed by three rivers that arise in the mountains, makes it way through dry farmland and prairie. The North and South Saskatchewan rivers join in the province of Saskatchewan and become the Nelson-Churchill system, and their waters eventually reach Hudson Bay There is also the smaller Beaver River, which flows through the heart of the Lakeland Region and then into the Churchill system and the Milk River, which passes briefly into Alberta
from Montana before returning south to flow finally to the Mississippi River and the Gulf of Mexico (Mitchell, Prepas and Crosby 1990:3) For a detailed map and more information visit Alberta Water

2. Moore Lake, c. 280 km northeast of Edmonton is a very popular recreational lake in Alberta’s Lakeland Region. Moore Lake is part of the Beaver Lake watershed. It is a headwater lake with outlets from the east shore into Hilda and Ethel Lakes and eventually into the Beaver River (which flows through the heart of the Lakeland Region and then into the Churchill system and the Milk River, which passes briefly into Alberta from Montana before returning south to flow finally to the Mississippi River and the Gulf of Mexico (Mitchell, Prepas and Crosby 1990:275).” “Moore Lake is underlain by the Muriel Lake Aquifer. In [1990] the principal water sources for regional water needs were the aquifers and not the lake. The largest water users in the area [were] the oil sands industries. Oil sands and petroleum and natural gas leases in the Moore drainage basin are held by several companies, including Esso Resources and Husky Oil. The oil sands permits allow the companies to test and set up drilling operations for subsurface oil deposits, including those under the lake surface. There are no signficant gas pools in the area. As a result of Alberta Environmental studies of the water resources in the Cold Lake-Beaver River basin in the early 1980s, a long-term plan for water resources management in the Cold Lake region was adopted by the government in 1985. Under the provisions of this plan, Moore Lake will not become a major water supply for the oil industry. Major industrial water users will be required to obtain their water from a pipeline from the North Saskatchewan River (Mitchell, Prepas and Crosby 1990:275).”

3. History of Moore Lake and the Beaver River. “Woodland Cree occupied the region when the fur traders first arrived. The Beaver River, to the south of Moore Lake, was part of a major fur trade route from Lac Isle-a-la-Crosse, Saskatchewan to the Athabaska River. The first fur-trading post in the area was Cold Lake House. It was established by the North West Company in 1781 on the Beaver River near the present-day hamlet of Beaver Crossing (Mitchell, Prepas and Crosby 1990:273).”.” “Moore Lake is underlain by the Muriel Lake Aquifer. In [1990] the principal water sources for regional water needs were the aquifers and not the lake. The largest water users in the area [were] the oil sands industries. Oil sands and petroleum and natural gas leases in the Moore drainage basin are held by several companies, including Esso Resources and Husky Oil. The oil sands permits allow the companies to test and set up drilling operations for subsurface oil deposits, including those under the lake surface. There are no signficant gas pools in the area. As a result of Alberta Environmental studies of the water resources in the Cold Lake-Beaver River basin in the early 1980s, a long-term plan for water resources management in the Cold Lake region was adopted by the government in 1985. Under the provisions of this plan, Moore Lake will not become a major water supply for the oil industry. Major industrial water users will be required to obtain their water from a pipeline from the North Saskatchewan River (Mitchell, Prepas and Crosby 1990:275).”

4. For amusement I am also reading an entertaining science fiction called Watermind that begins with a foaming journey of nano technology from Alberta down the Milk River flowing down the Mississippi to the Gulf of Mexico collecting toxic waste and data all along the way.

5. Western-style lifestyles and diets which are heavy on beef require much more water than healthier cereal or pulse-based diets (1 kg of grain-fed beef needs at least 15 cubic metres of water, while a 1 kg of cereals needs only up to three cubic metres). Pulse crops (including Dry beans, Kidney bean, haricot bean, pinto bean, navy bean, Lima bean, butter bean, Azuki bean, adzuki bean, Mung bean, golden gram, green gram, Black gram, Urad, Scarlet runner bean, Dry peas, Garden pea, Chickpea, Garbanzo, Bengal gram Black-eyed pea, blackeye bean, Lentil) commonly consumed with grain, provide a complete protein diet. Pulses are 20 to 25% protein by weight, which is double the protein content of wheat and three times that of rice. Pulses are sometimes called “poor man’s meat”. Pulses are the most important dietary predictor of survival in older people. In the Seven Countries Study legume consumption was highly correlated with a reduced mortality from coronary heart disease.

6. This Google Map below (a work in progress) traces some of the areas of concern regarding our watersheds where substantial control concentration of access, rights and strategic assets are quietly being acquired by individuals or individual families. The most troubling of these includes T. Boone Pickens who sees water as blue gold and already owns more of it than any other American. He thirsts to increase his water assets and he is now showing a great interest in Alberta. While he has carefully massaged his media image to be tauted as environmentally friendly and he has generously gifted the University of Calgary, his methods are shrewd, buying what others see as useless until they realize how much control he has over their water supply. He is persistent and worked for decades to change laws in his favour in the Canada River watershed in Texas.

7. Tim Cestnick, founder of WaterStreet Family Wealth Counsel, in 2007 set the threshold for High Net Worth HNW as $5-million to $20-million in net worth and for Ultra High Net Worth UHNW at $20-million-plus.

My Google Map: Blue Gold

Selected Bibliography

Anderson, Anne-Marie. 2000-04. “An Evaluation of Changes in Water Quality of Muriel Lake.” Limnologist, Water Sciences Branch, Water Management Division, Environmental Service.

Beck, Ulrich. 1992. Risk Society.

Barlow, Maud; Blue Gold: The Fight to Stop the Corporate Theft of the World’s Water.

Barlow, Maud. 2004-03. Maude Barlow, CBC Interview. CBC.

CBC. 2008-06-20. “Billionaire hands U of C unexpected $25M gift.”

Brownsey, Keith. “Enough for Everyone: Policy Fragmentation and Water Institutions in Alberta” in Sproule-Jones, Mark; Johns, Carolyn; Heinmiller, B. Timothy. 2008-11-20. Canadian Water Politics: Conflicts and Institutions. McGill-Queen’s University Press. pp. 133-156.

CBC. 2009-06-17. “Texas oil billionaire eyes Alberta wind power.”

CBC. 2009-03-06. “Wind power: The global race to harness wind.”

Clarke, Tony; Barlow, Maude. The Battle for Water.

Cone, Tracie. AP. 2009-06-29. “Battle over water heats up in drought-stricken California.” USA Today.

Coonan, Clifford. 2006-03-17. “The dammed: Environmentalists watch and wait for opening of world’s largest dam.” The Independant.”

Dillon, Sam. 1998-01-28. “Mexico City sinking into depleted aquifer.”

Government of Ontario. 1998-03-09. “Government’s role in operation of water and sewage treatment systems to be reviewed.” Office of Privatization News Release. Toronto: Queen’s Park.

Helsinki Rules on the uses of the Waters of International Rivers. 1966-08. Adopted by the International Law Association at the 52nd conference, held at Helsinki. Report of the Committee on the Uses of the Waters of International Rivers. London: International Law Association (1967).

Idelovitch, Emanuel, and Ringskog, Klas. 1995-05. Private Sector Participation in Water Supply and Sanitation in Latin America. Washington: The International Bank for Reconstruction and Development/The World Bank.

Kirby, Alex. 2004-10-19. “Water scarcity: A looming crisis?” BBC.

Klaszus, Jeremy. 2009-06-25.“Alberta poised to expand water market: Showdown looms as province reviews licensing system.” News.

Karunananthan, Meera. 2009-03-18. “Access to Sanitation Reserved for the VIPs at World Water Forum.” AlterNet.

Kohler, Nicholas. 2007-10-08. “Doomsday: Alberta stands accused: A huge fight between East and West — over the oil sands — is just starting.” Macleans.

Krugman, Paul. 2002-02-15. “Ersatz Climate Policy“. New York Times.

Marsden, William. 2007. Stupid to the Last Drop: How Alberta Is Bringing Environmental Armageddon to Canada (And Doesn’t Seem to Care).

McGillivray, Mark. 2005. Inequality, Poverty and Well-being. Helsinki, Finland. Palgrave Macmillan.

McLaughlin, Chris. 2009. “Instituting Change: Book Reviews.” Alternatives Journal. 35:34: 31.

Mitchell, Patricia ; Prepas, Ellie E.; Crosby, Jan M. Eds. 1990. Atlas of Alberta Lakes. University of Alberta Press.

Molina, Nuria; Chowla, Peter. 2008-09-26. “The World Bank and water privatisation: public money down the drain.”

Olivera, Oscar. 2006-07-19. “The voice of the people can dilute corporate power.” The Guardian.

Orwin, Alexander. 1999-08. “The Privatization of Water and Wastewater Utilities: An International Survey.” Environment Probe.

Postel, S. L. 1996. “Dividing the waters: food security, ecosystem health, and the new policies of scarcity.” Worldwatch Paper No. 132, P29. Washington, DC: Worldwatch Institute.

Postel, S. L. 1998. “Water for food production: will there be enough in 2025?” Biosciences. 28:629–637.

Sen, A. 1995. “Mortality as an indicator of economic success and failure.” Discussion paper 66. London School of Economics and Political Science.

Simon, Bernard. 2002-08-09. “Alberta Struggles to Balance Water Needs and Oil.New York Times.

Sproule-Jones, Mark; Johns, Carolyn; Heinmiller, B. Timothy. 2008-11-20. Canadian Water Politics: Conflicts and Institutions. McGill-Queen’s University Press.

Sullivan, Caroline. 2002. (“Calculating a Water Poverty Index.”World Development. 30:7: 1195–1210.

Vidal, John. 2005-06-08. “Revealed – how oil giant influenced Bush“. The Guardian.

The World Commission on Environment and Development (WCED). 1987.”Our Common Future.” Oxford: Oxford University Press.

Woellert, Lorraine. 2007-11-07. “Pickens makes a multibillion-dollar water play: Pipeline would transport Panhandle water to big-city suburbs.” Bloomberg News.

Chevreau, Jonathan. 2007-05-14. “Truly Affluent Require Wider Type of Service.” Financial Post.


In the week following Harper’s apology the headline story of the Calgary Herald‘s Sunday edition was a special report on the youth suicide epidemic on Tsuu T’ina Nation. That Saturday we spent the afternoon exploring the Sibbald Flat area.

The camping tradition at Sibbald Lake which spans several cultures and at least 11, 000 years continues today. It is with cruel irony that this area should be named after Howard E. Sibbald, an Indian agent (1901-1904) turned Banff National Park game warden (1909-). He was the Indian agent when the outer boundaries of Banff National Park were enlarged to encompass nearly all the hunting grounds of the Stoney-Nakoda First Nations and although he understood that the Stoney “took the enlargement of the Banff National Park very hard” he became a fierce opponent of First Nations hunting rights. So there it is, visitors to this area come away with his name on their photos! This region is associated with some of the oldest archaeological evidence of paleo-Indian hunting dating from the Plano Period (10,000 – 8,000 BP) as the glaciers retreated (now revised to as far back as 13, 000 years ago), the Assiniboine hunters of the 1700s and the Siouan-speaking Nakoda-Stoney who probably arrived in Banff in historic times-almost certainly after 1790, and perhaps not until the mid-1800s but they knew the place well by 1870. Surveyors and explorers of the late nineteenth century typically turned to Stoney guides, and as a result many landforms in Banff National Park are still known by their Stoney names.

Howard E. Sibbald was the the Indian agent on the reserve when the outer boundaries of Banff National Park were enlarged to encompass nearly all the hunting grounds of the Stoney-Nakoda First Nations. In his annual report (1902) he wrote that the Stoney “took the enlargement of the Banff National Park very hard.” In 1903 he added that

“I consider these Indians have behaved very well under certain restrictions put upon them in connection with their hunting in the National Park; this was a hard blow to some of the old hunters who have hunted over this ground all their lives, but the majority see the benefits to be derived from this preserve in years to come (Sibbald 1902, 1903 Binnema and Niemi 2006)”

A Selected Timeline Related to Critical Events in this Region

11,000 years ago Prehistoric hunters chipped stone spearpoints to hunt in the hot grasslands. The Plano Period (10,000 – 8,000 BP) About 10,000 years ago the climate began to change and grasslands spread across southern Alberta. Mammoths and many other Ice Age animals became extinct, A beautiful example of an Alberta point. While other animals flourished including antelope and a new, smaller species of bison. This period, known as the ‘Plano’ period after the Spanish word for plains, lasted up to 8,000 years ago. http://www.abheritage.ca/alberta/archaeology/overview_pg3_planopr.html

1670-1821 The forefathers of the Nakoda Nation, identified as the Mountain Stoney and the Wood Stoney, lived during the fur trade era (1670 – 1821). “It is probable that all the Stoney Nakoda groups interacted and camped with one another during the pre-contact and early fur trade period, and gradually intermingled with other Assiniboine and Siouan speaking families over the centuries (Abawathtech.)

1700s Assiniboine hunted bison with bows. Aspen trees were already established. Prior to the arrival of Anthony Henday in central Alberta in 1754, Aboriginal people from the area were trading with Europeans either directly by visiting posts to the north and east themselves, or indirectly by trading with Cree and Assiniboine groups. These Aboriginal traders exchanged goods they had acquired from fur trade posts for furs, Beaver Indians at trading post. horses, food and other products. In turn, they then traded furs and other goods at posts for more goods that they could trade later. In this way European trade goods reached Alberta in unknown qualities for at least half a century before the first European arrived in person to trade.

1790 – “The Siouan-speaking Stoney (Nakoda) probably arrived in Banff in historic times-almost certainly after 1790, and perhaps not until the mid-1800s but they knew the place well by 1870. Surveyors and explorers of the late nineteenth century typically turned to Stoney guides, and as a result many landforms in Banff National Park are still known by their Stoney names [1] (Binnema and Niemi 2006).”

1875- Cattle ranchers had already arrived. Pine trees were already established.50 years ago Stoney Indian wove freshly-cut willows into the walls of a sweat lodge. There was already an open meadow.

1875 The Ontario family Andrew Sibbald came to Morley, AB from Ontario to teach at George and John McDougall’s mission at Morley. In May 1900, Andrew Sibbald’s son, Howard E. Sibbald became the farmer in charge at Morley, and from 1901 to 1904 he was the Indian agent there.

1880s Indian agents did tolerate or even encourage Indians to hunt for subsistence during the winters during the 1880s and early 1890s, and even later in more remote regions, but they believed that when a sedentary agricultural way of life was feasible for any given community, that community should be dissuaded from hunting. Thus, from the perspective of some Indian officials, the restriction of aboriginal hunting rights might be a blessing in disguise.

1895 Quebec established its 2,531-square-mile Laurentides National Park in prohibiting all hunting in the park.

1900 Quebec deputy superintendent general reported that the aboriginals’ loss of hunting rights in the 2,531-square-mile Laurentides National Park near their reserve was one of the important factors that led them to direct their efforts towards agriculture.

1900 The last known wild passenger pigeon was killed around 1900.

1902 Howard E. Sibbald was the the Indian agent on the reserve when the outer boundaries of Banff National Park were enlarged to encompass nearly all the hunting grounds of the Stoney-Nakoda First Nations. In his annual report (1902) he wrote that the Stoney “took the enlargement of the Banff National Park very hard.” Reflecting on the enlargement of Banff National Park, wrote “I hope it will be for the best, for as long as there was any game so close to the reserve, it was hard for them to get down to work.”

1903-02 The Canadian Magazine published its obituary for the wild passenger pigeon species.

“[L]aws for the protection of our fish and game we have in plenty, but laws that are not enforced, and which are not supported by public sympathy, are worse than useless.” See Binnema and Niemi 2006.

1903 In his annual report Indian agent, Howard E. Sibbald, wrote that although hunting restrictions were “a hard blow to some of the old [Siouan-speaking Nakoda-Stoney] hunters, … the majority see the benefits to be derived from this preserve in years to come.” By that time, more Stoney had taken up paid work as guides even in the national park. He added that

“I consider these Indians have behaved very well under certain restrictions put upon them in connection with their hunting in the National Park; this was a hard blow to some of the old hunters who have hunted over this ground all their lives, but the majority see the benefits to be derived from this preserve in years to come (Sibbald 1902, 1903 Binnema and Niemi 2006)”

1903 In his annual report Howard Douglas argued that,

“Moose were frequently seen, elk, and black tail deer, big horns, and goats were plentiful; now some of these have totally disappeared… [and] there can only be one opinion on the subject. The Stony Indians are primarily responsible for this condition of affairs. They are very keen hunters, and have always been, and they are the only Indians who hunt in this section of the mountains. For years, from their reserve, they have systematically driven the valleys and hills and slaughtered the game. Their lodges are full of wild skins and meat. From thirty to fifty of the lodges are continually in the mountains from September 1 till Christmas … [T]he old haunts are deserted, the sheep runs are falling into disuse, and the greatest game country the sun ever shone upon is fast becoming a thing of the past. True, within the last few years, there has been a close season in which the Indians are supposed to stop harassing the game, but no notice has been taken of the law, and in short time this vast tract of mountain land, abounding in all that is required for the sustenance of wild animals, will be deserted, unless the Indians are compelled to live on their reserves. Laws are useless unless they are enforced. There seems to be a feeling that it would not do to press the more radical feature of the law amongst Indians. I feel that we have reached the time, when we can take a step in advance, when we can apply the laws more forcibly than we have, without creating any adverse sentiment. Let the line be drawn now; if we wait longer, the game will be gone (Douglas 1903).”

1904
In his annual report Howard Douglas made an appeal for game wardens as the noted that with the expansion of the boundaries of the park, that there were increased difficulties in enforcement. What was not clearly explained in his annual report was that the new boundaries prevented the Nakoda-Stoney from hunting on almost all their hunting grounds! Douglas called for “the establishment of a rigid and thorough system of game guardians to maintain the legislation needed for the enforcement of much more severe penalties for its infraction.”

1909-06
The Canadian government provided for the hiring of game wardens in national parks. Douglas believed that the Nakoda-Stoney were the most serious threat to the game of Banff National Park and he therefore chose Howard E. Sibbald as the first chief game guardian.

1910 In Glacier National Park in Montana, William R. Logan, the park’s first superintendent, was the former Indian agent on the Blackfoot reservation.

1911 The Canadian government passed the Dominion Forest Reserves and Parks Act, which established the Dominion Parks Branch-the world’s first national park service-and helped institutionalize the Warden Service of the national parks. This altered the boundaries of national parks so that areas that were not important tourist destinations were removed from the national parks. As a result much of the land in Banff Park was reallocated to a forest reserve. The Stoney only briefly took heart. In August 1911, the assistant secretary of the Department of the Interior sent a sternly worded letter to the secretary of the DIA announcing that it intended to enforce a new regulation that stipulated that no one was allowed to enter the forest reserves without special permission from the Department of Forestry. The documents suggest then, that the policies of barring aboriginal people from Banff National Park were rooted primarily in the goals and values of conservationists and sportsmen. But aboriginal subsistence hunting also frustrated one of the central goals of the DIA at the time: the civilization and assimilation of aboriginal people. When he was still the Indian agent at Morley, in 1903, Howard Sibbald opined that “as long as they can hunt you cannot civilize them. I have lived alongside of them for twenty six years, and with the exception of a few of the younger ones they are no more civilized now than they were when I first knew them, and I blame hunting as the cause.”

1930s By the 1930s, few Nakoda-Stoney could depend on full-time subsistence hunting.

1991

1996 RCAP

2008 Harper’s Apology

Notes

1. Luxton, Banff, Canada’s First National Park, 49–50. For the Kutenai, see Raoul A. Andersen, “Alberta Stoney (Assiniboine) Origins and Adaptations: A Case for Reappraisal,” Ethnohistory 17 (1970): 48–61; and Theodore Binnema, Common and Contested Ground: A Human and Environmental History of the Northwestern Plains (Norman: University of Oklahoma Press, 2001), 81–82. For the Blackfeet, see Spence, Dispossessing the Wilderness, chap. 5; Brian Reeves and Sandra Peacock, “‘Our Mountains Are Our Pillows': An Ethnographic Overview of Glacier National Park” (Glacier National Park, 2001); Brian O. K. Reeves, Mistakis: The Archaeology of Waterton-Glacier International Peace Park (Bozeman: Montana State University Press, 2003); and Binnema, Common and Contested Ground, chap. 2. The ancestors of the Stoney were among the Assiniboine who broke from the Sioux sometime before 1640. Some of their descendants were in the forests and foothills of the Rocky Mountains by the late 1700s, and in the area of present-day Banff Park by the mid 1800s. See Hugh A. Dempsey, Indian Tribes of Alberta (Calgary: Glenbow Museum, 1988), 42–43. Also see Luxton, Banff, Canada’s First National Park, chap. 4

Bibliography and Webliography

Binnema, Theodore (Ted) and Melanie Niemi, ‘Let the Line be Drawn Now': Wilderness, Conservation, and the Exclusion of Aboriginal People from Banff National Park in Canada. Environmental History. 11.4 (2006): 33 pars. 15 Jun. 2008 <http://www.historycooperative.org/journals/eh/11.4/binnema.html>.

Hildebrandt, Walter; Carter, Sarah; First Rider, Dorothy. 2008. The True Spirit and Original Intent of Treaty 7: Treaty 7 Elders and Tribal Council With Walter Hildebrandt, Dorothy First Rider, and Sarah Carter. Mcgill-Queens Native and Northern Series. Montreal: McGill-Queen’s University Press. ISBN: 0-7735-1522-4 408pp. http://mqup.mcgill.ca/book.php?bookid=1419

http://www.heritagecommunityfdn.org

http://www.albertasource.ca/treaty7/treaty/perspectives_elders.html

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