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Common Dreams reports
Environmental and indigenous groups are cheering after Kinder Morgan announced Sunday [April 8] it was halting most work on its controversial Trans Mountain expansion pipeline project, citing continuing opposition. Map of proposed route
"This is a sign that organizing works, and it could well be the beginning of the end for this dangerous pipeline", declared Clayton Thomas-Muller, a Stop-it-at-the-Source campaigner with 350.org.
"This is huge", added British Columbia-based advocacy group Dogwood.
In the company's statement announcing the move, chairman and CEO Steve Kean said Kinder Morgan was suspending "all non-essential activities and related spending" as a result of the "current environment" that puts shareholders at risk.
"A company cannot resolve differences between governments", he added, referencing resistance from B.C. lawmakers that is at odds with support for the project coming from Ottawa and neighboring Alberta. "While we have succeeded in all legal challenges to date, a company cannot litigate its way to an in-service pipeline amidst jurisdictional differences between governments", Kean said.
Unless legal agreements are reached by May 31, Kean said that "it is difficult to conceive of any scenario in which we would proceed with the project". (There are still 18 pending court cases that could thwart the project, the Wilderness Committee notes.)
B.C. Premier John Horgan, for his part, said in a statement Sunday, "The federal process failed to consider B.C.'s interests and the risk to our province. We joined the federal challenge, started by others, to make that point."
[...] Greenpeace Canada's climate and energy campaigner Mike Hudema, said:
Investors should note that the opposition to this project is strong, deep, and gets bigger by the day. This announcement shows that this widespread opposition has reached critical mass. British Columbians' desire to protect clean water, safeguard the environment, and stand behind Indigenous communities cannot be ignored or swept under the rug. We encourage Kinder Morgan to shelve this project before the litany of lawsuits, crumbling economics, and growing resistance against the pipeline does it for them.
While the company "looks ready to pack it in", said Wilderness Committee Climate Campaigner Peter McCartney, the opposition is "not going anywhere until this pipeline no longer poses a threat to the coast, the climate, and Indigenous communities along the route".
(Score: 2) by bob_super on Tuesday April 10 2018, @06:00PM (7 children)
Do I correctly remember that it's just doubling an existing pipeline?
Unless Canada decides to give up on Tar Sands revenue (oil market collapse), it will indeed eventually happen. Like the one in the US, it just requires the right election cycle.
The existing pipeline will need "improvements" and "repairs" anyway, so putting a new one along the same exact route may turn out less risky for that area than having the old one at full capacity.
It's Canada, they can handle a few extra degrees.
(Score: 2) by VLM on Tuesday April 10 2018, @07:33PM (6 children)
Logistic extraction curves for higher tech "solutions" are steeper on the upside AND downside. The opposition merely needs to delay deployment until the remaining resource, is cheaper to transport via far more dangerous rail car. This makes higher tech exotic oil sources like this more sensitive to delays in construction than old fashioned long production shallow wells from the good old days, which are either developed or empty now, of course.
Also its snarky but resource predictions usually start out ridiculously high and decline to more realistic expectations over time for the usual human factors reasons; the danger of a bunch of financial analyst types slapping each other on the back about billions of barrels is that other people, like pipeline builders, might actually believe their pie in the sky daydreams and when reality hits whoops that billion barrel pipeline isn't needed because better present estimates claim there isn't likely to be a billion pumped or whatever specific number. This is a possible failure mode in a general sense not necessarily in this specific case.
I don't have the detailed financial data on this particular project; I invest mostly in USA energy not foreign, and have a general knowledge of the field but no specific knowledge of this foreign project other than the usual idle gossip and how this could affect domestic production (minimal, AFAIK).
In summary there might be substantially less economically or energetically extractable resource than originally predicted, so no need for a pipeline.
(Score: 5, Informative) by Snow on Tuesday April 10 2018, @08:28PM (5 children)
There is more oil in the oil sands than can ever be extracted without completely fucking up the planet.
Canada has been investing money in oil sand oil extraction since the 70's. This is a mature, proven technology now. The problem is that because Alberta is landlocked, we are pretty much stuck with sending it down to the USA who we don't get a fair price from. We get paid the 'Western Canada Select' price, which is much less than the WTI.
That is why we want to build the pipeline. If we can get the oil to the ocean, then we can fetch international prices. The difference is billions of dollars annually.
For the record, I don't think that we should be banking on oil for the provence's future. Unfortunately, that is the horse that we are hitched to. I was against more pipelines (unless they ship oil to the Canadian refineries out east). I don't think we should be plundering the planet for a buck.
However, this pipeline went though due process, and was ultimately approved. The time for protesting is over. Your voice was heard, and you lost. Get over it.
(Score: 4, Insightful) by bob_super on Tuesday April 10 2018, @08:49PM (3 children)
Since you made the mistake twice: France has Provence, Canada has provinces.
(Score: 2) by Snow on Tuesday April 10 2018, @09:12PM
Thanks!
(Score: 2) by realDonaldTrump on Wednesday April 11 2018, @02:47AM (1 child)
People don't know this about Canada. But the truth is, HUGE parts of Canada are French. They call it French Canada. Because of the tongue. They speak French. And they're GREAT KISSERS!
(Score: 0) by Anonymous Coward on Wednesday April 11 2018, @07:13AM
where the Oral Herpes outbreak in Quebec started.
Oh you poor fools, allowing that man into your country to swap spit with your women!
Alas.
(Score: 4, Informative) by dw861 on Wednesday April 11 2018, @04:49AM
Would that that were true, but the proposal did not go through due process.
Unlike in Alberta, in which there were/are Treaties with Indigenous peoples, in BC there were (virtually) none, and only a few agreements via the contemporary Treaty Process.
In the absence of Treaties, contemporary courts have ruled that First Nations title exists here in BC. The courts have also ruled the Crown has an obligation to consult with First Nations regarding all developments affecting their traditional territories. "Approval" or not, those meaningful First Nations consultations have not taken place. Trudeau will have to openly acknowledge that he is ramming a project through and harming local Indigenous interests, in the national interest.
Any one of the existing court actions can torpedo this proposed pipeline twinning project and ensure that it never takes place. Looking at the last 30 years of Supreme Court rulings re BC First Nations, I would not bet my money on the company or the federal govt.
Possibly Kinder Morgan is just posturing at present. But the reason why their posturing is so convincing, is because those who truly understand all the moving parts to this controversy, appreciate that while the Federal Govt has approved the project, it has little local social license. The Federal Crown has limited options to ram something down the Provincial Crown's throat. Recall that there is a 'notwithstanding clause' in the constitution, to allow provinces to bypass Federal dictates. If you can think of any examples to prove me wrong, I'd be keen to hear of them.
No matter what happens, the Liberals are screwed in British Columbia. They cannot escape from this controversy unscathed.