Friday, April 27, 2012

Rhetorical Engagement on the Keystone XL Pipeline

Rounding up some of the latest rhetoric by Keystone XL pipeline opponents – separating fact from fiction (and utter fantasy) – while striving for an informed energy discussion. It’s not easy.

Let’s start with a great big fact:

The U.S. Energy Information Agency (EIA) reports that oil and natural gas supply 62 percent of the energy we currently use. In 2035, EIA says oil and gas still will supply about 60 percent of the energy we use.

That’s the energy reality, according to the government. We run our economy and our lives on oil and natural gas. It’s the energy of today and tomorrow. Yes, America will need all energy sources in the years to come, but any notion that we can embark on an “off-oil” strategy without severe economic and social repercussions is uninformed, disingenuous or, as suggested above, fantasy.

Against that backdrop let’s review a couple of recent energy-related offerings – one that links the Keystone XL’s construction and Canadian oil sands production to the possible destruction of other cultures and the environment. Another serves up some warmed-over gasoline exports myths.

Post #1:

“It is undeniable that Keystone XL would bring about immense devastation to other cultures. Consider the members of Canada's First Nations groups, who have been more vocal about the need to stop the pipeline than almost anyone else. If Keystone XL were approved, their way of life would enter a rapid downward spiral and ultimately collapse.”  

Actually, this is deniable. First, a number of pipelines already crisscross energy-rich Alberta:

Click on the map for a larger view, and you’ll see the red dotted line representing the Keystone XL follows a path already taken by other pipelines in Canada. The idea that the Keystone XL would threaten anyone as described in the post is ridiculous.

Second, click on the link in the post and you’ll see that opposition from the First Nations groups is mostly directed toward a pipeline that would go west from Alberta to the coast, a proposal that has gained traction as Canada started thinking about other customers for its oil – following the Obama administration’s Keystone XL rejection.

Let’s go on. The post makes claims about environmental devastation from the proposed pipeline: 

“In order to exploit a region's tar sands, new roads must be built, enormous machines have to be brought in, and, most harmfully, every tree in the surrounding region needs to be cleared or burned. A population that relies on nature will be totally unable to continue to sustain itself if oil companies wipe out almost all biodiversity and bring in dangerous chemicals and pollution.”

If the author had done some homework, it would’ve been clear that Canadians are dead serious about protecting their environment. Clear-cutting and/or burning trees? By law oil sands development areas have to be restored to their natural state by companies operating there. One, Suncor, has developed a way to reclaim its tailings ponds, as well as a process that will eliminate the need for tailings ponds altogether. The company has turned one former tailings pond into a lush meadow, with hundreds of thousands of tree seedlings planted.

Similar environmental consciousness is being shown by other companies. Last week there was this story about Shell’s efforts to offset its oil sands footprint with the purchase and preservation of acres of forest.

One more from Post #1:

“Most infuriatingly, it is not even as though the U.S. needs tar sands oil or else it will not be able to fuel ambulances or power schools. The reality is that Americans use a huge amount of energy to perpetuate inefficiency and wastefulness. Furthermore, enormous reserves of potential renewable energy go unused every day because individuals and legislatures refuse to make sufficient investments. In other words, by continuing to support tar sands oil (as we already started doing several years ago with the construction of other pipelines from Canada) we are choosing to decimate other cultures and livelihoods before even fully investing in robust efficiency standards and renewables.”

A distillation of the above: The United States isn’t spending enough money on improving efficiency or developing other fuel sources.

Yet, according to EIA’s 2011 energy outlook report, the U.S. used about half as much energy for every dollar of GDP as it did in 1980. Meanwhile, investments in greenhouse gas-reducing technologies start with the oil and natural gas industry, which spent $71 billion on these between 2000 and 2010 – almost as much as all other private industries combined ($74 billion) and nearly double what the federal government spent ($43 billion). As for renewables, energy analyst/blogger Geoff Styles offers perspective:

“[Renewables] produce electricity rather than liquid fuels, and less than 1% of US electricity is generated from oil today, compared to more than 10% in 1980. Electricity from renewable and nuclear power doesn't compete with imported oil or any other kind of oil; it competes with domestic energy sources like coal and natural gas, most of which now comes from conventional and unconventional gas fields, rather than as a byproduct of producing oil. So by all means let’s have a conversation about renewables in the context of reducing greenhouse gas emissions today and displacing oil from transportation when there are tens of millions of electric vehicles on the road in the future, but in terms of oil prices now and in the near future, they are a rhetorical diversion.”

Quickly, Post #2 incorrectly argues that crude delivered by the Keystone XL would be refined for export to Europe and Latin America. This has been discussed here and here. EIA weighs in on exports and gasoline prices, here.

The Keystone XL enjoys broad U.S. support, demonstrated in poll after poll after poll. A majority in both houses of Congress supports the pipeline. Nebraska’s governor, who had concerns last fall, enthusiastically supports it now. It’s time to stop erecting phony arguments and flimsy excuses as obstacles to the project’s promise of stable energy and jobs.


View the original article here

The Right and Wrong Side of the Energy Divide

Interior Secretary Ken Salazar talked about a divide in America between the “real energy world and the imagined energy world” during a speech Tuesday in Washington. He’s got that right – but it’s not like the administration is on the right side of that divide. Consider:

It dismisses calls for increased access, saying it takes years to develop oil and natural gas resources, and then takes credit for increased production.It says it wants more oil and natural gas when in reality its policies set back production in the all-important Gulf of Mexico and on federal western lands.It says 75 percent of America’s offshore resources are open for development when in reality 87 percent of areas are off-limits.It says oil and natural gas are the energy of the past even though they currently supply 62 percent of the energy we use and in 2035 will still supply about 60 percent.It repeatedly suggests that America is an energy pauper, when in reality the country has tremendous energy wealth, with ample supplies onshore and offshore.It claims the oil and natural gas industry doesn’t pay its fair share in taxes when in reality it sends $86 million a day to the U.S. Treasury in rents, royalties and income tax payments, and its companies rank 1-2-3 on Forbes’ recent list of those paying the most in income taxes. 

Now, the Interior secretary’ s speech was on-target in some ways. Salazar said that “overwhelmingly, Americans agree on energy.” They do indeed:

84 percent believe increasing domestic oil and natural gas production could enhance the country’s energy security, according to a Harris Interactive poll last month.64 percent in that same poll said they believe some in Washington are intentionally delaying domestic oil and natural gas development, potentially hurting the economy and leading to higher consumer energy costs.Anywhere from 56 percent to nearly 70 percent in other polls say they support construction of the Keystone XL pipeline that would bring upwards of 830,000 barrels of crude oil per day from Canada to U.S. refiners – which the administration continues to obstruct while pretending others are at fault for the delay. Here’s video of the secretary doing just that after Tuesday’s speech (courtesy The Daily Caller):

More Salazar: 

“Americans want to cut our reliance on imported oil. They know that a lot of factors affect gas prices – including world markets and international events – and that, unfortunately, there’s no silver bullet in the near term.”

No question, world crude oil markets play the biggest role in prices at the pump – 76 percent of the cost right now – and affecting near-term change is problematic. But market signals do matter. And it’s time to take charge of our energy future by choosing the right policies to affect the long-term energy equation. For too long opponents of accessing available U.S. resources have used the “no silver bullet” line to block sound energy decisions – like drilling in remote Alaska, which by now would be an important part of the energy mix if it had been undertaken when it first began to be debated more than a decade ago. 

Salazar once more:

“The energy world is changing … Whether it’s our oil and gas technology, our solar power plants, or our auto manufacturers, the pace of American innovation is staggering. The U.S. is determined to lead in the new energy world. So it’s no longer a question of whether you support renewable energy or conventional energy, or whether you favor the environment or the economy. The American people have decided to take an all-of-the above approach.”

The United States needs all of its energy resources, but a real all-of-the-above approach must do more than pay lip service to oil and natural gas production – today’s energy and tomorrow’s. The challenges are daunting, but historically Americans have risen to meet challenges with the help of strong leadership – in contrast to the rhetoric of resignation and powerlessness that frequently comes from the current administration. API President and CEO Jack Gerard, speaking last month at a congressional hearing on energy:

“With sound policy and bold leadership, we can put this country’s vast resources to work to change the current energy equation. … A strategy that confidently deploys resources here at home will send a clear message to global markets that the United States is serious about affecting supply. To the American people it will say help’s on the way. … With the right policies and strong leadership, we can secure our energy future instead of surrendering it to outside forces.”


View the original article here

There He Goes Again…

There has been a lot of good analysis of the president’s latest pursuit of alleged manipulation in the oil trading markets. The Council on Foreign Relations’ Blake Clayton makes a number of good points here, and energy blogger Robert Rapier notes the two-way risk inherent in commodities trading, here.

What’s clear is that the president’s concern isn’t new (see 2008, 2009 and 2011), and that White House officials had trouble connecting today’s announcement with anything substantive, as can be seen in a succession of tweets by Yahoo! News’ White House correspondent, Olivier Knox:

“White House punts on whether today's Pres Obama announcement re: oil speculation would have any impact on gas prices. (cont’d)”

“(cont'd) "We would leave that to outside analysts to disentangle,” senior administration officials tells reporters on conference call.”

“White House also refused to describe impact/extent of enforcement of laws re: oil speculation over past year."

“In short: White House won't describe extent of the problem of oil speculation, won't predict impact of today's announcement.”

But we digress. What caught our ear was the president plowing some familiar rhetorical turf, with a couple of demonstrably misleading riffs. Presidential Riff 1:

“The problem is we use more than 20 percent of the world’s oil and we only have 2 percent of the world’s proven oil reserves.”

This is a favorite of the president’s but it’s simply misleading, using a technical classification of one kind of oil reserve to camouflage the fact that the United States is sitting on approximately 200 billion barrels of oil, which the president never mentions, discussed here and here. This line earned “two Pinocchios” from the Washington Post Fact Checker back in March and probably deserves three Pinocchios now, because the White House keeps using it.

Presidential Riff 2:

“Even if we drilled every square inch of this country right now, we’d still have to rely disproportionately on other countries for their oil.”

False. According to the Wood Mackenzie energy consulting firm, if the United States pursued a pro-development strategy that included more domestic drilling – offshore, in remote Alaska and other places – as well as a stronger partnership with Canada (including the Keystone XL pipeline), we could see 100 percent of our liquid fuel needs supplied here and from Canada by 2024.

The real problem here is an administration that continues talking as if the United States is energy poor when in fact we’re energy rich. The president talks about an all-of-the-above approach to energy but has done little to support and enhance oil and natural gas, which supply more than 60 percent of our energy now and will continue to supply about 55 percent of it in 2035.


View the original article here

No More Excuses on Keystone XL

In response to a question about the Keystone XL pipeline back in January, White House Press Secretary Jay Carney told reporters: “[I]t is a fallacy to suggest that the president should sign into law something when there isn’t even an alternate route identified in Nebraska …” Carney also said the then-delay in reviewing the project was “a result of concerns in Nebraska about the route … and how it would affect the aquifer there.”

That was then. Now it appears the White House statements were really excuses, not concerns.

Indeed, last year the State Department’s exhaustive Keystone XL environmental review concluded that the project would be the safest pipeline ever built in the United States. The department also determined that the project’s proposed safety mechanisms and procedures would protect the Ogallala Aquifer.

Unfortunately, concerns in Nebraska handed the administration an excuse for more delay. Pipeline builder TransCanada responded by working on a relatively small detour to avoid Nebraska’s sensitive Sand Hills region, which was unveiled this week:

This followed the Nebraska legislature’s approval of a bill to allow the state to move forward with a new Keystone XL route, on a 44-5 vote that was pretty much a slam dunk. Gov. Dave Heineman, who had voiced concerns about the original route, promptly signed the measure into law. This welcome news means the last major objection to Keystone XL has been resolved. Consider:

Americans support construction of the Keystone XL by nearly a 2-1 margin, according to a recent Gallup poll.A bipartisan, veto-proof majority in the U.S. House of Representatives voted to support construction of Keystone XL, the fifth time the House has backed the project. Last month, 56 U.S. senators voted in favor of building the Keystone XL.More than 80 percent of Americans believe U.S. policies should support the use of oil from Canada’s oil sands.A University of Texas poll shows that Americans overwhelmingly support more energy production.According to the U.S. Pipeline and Hazardous Materials Safety Administration, pipelines are the “safest and most-effective” way of transporting oil and natural gas.With unemployment still above 8 percent nationwide, the Keystone XL not only would create thousands of new jobs but also would help preserve jobs at U.S. refineries and production sites.While there are many factors that affect the price of gasoline families use to fill up their tanks, approving the Keystone XL would send a strong market signal that more supply is on the way, helping put downward pressure on the global price of crude oil, which accounts for 76 percent of the price paid at the pump. The pipeline could bring upwards of 830,000 barrels per day of Canadian oil from Alberta to U.S. refineries, with approximately 25 percent of the pipeline’s capacity used to deliver oil from North Dakota and Montana.

Let’s recap: A majority in both houses of Congress supports the Keystone XL. The Nebraska legislature supports the Keystone XL. The governor of Nebraska supports the Keystone XL. The American people support the Keystone XL.

With this pipeline we can have a healthy environment and a growing economy. We can strengthen our important energy relationship with Canada and help make our energy future more secure. The environmental impacts of building the Keystone XL will be minimal, while the benefits – in terms of jobs, economic growth, and energy security – will be enormous.

Politicians are known as masters at creating excuses, but when it comes to the Keystone XL pipeline, there are simply no excuses left for keeping it on hold.


View the original article here

EPA Emissions Rule Shows Improvements

It will take some time to fully digest the EPA’s new rule governing emissions from oil and natural gas production, including hydraulic fracturing, but it’s clear the agency heard industry’s concerns and worked to improve the regulation from its preliminary version.

Significantly, companies will have until 2015 to comply with some of the requirements of the new rule. Industry had maintained more time was needed to develop the equipment needed for compliance and to train workers to use it. Howard Feldman, API’s director of regulatory and scientific affairs on the final rule:

“The industry has led efforts to reduce emissions by developing new technologies that were adopted in the rule.  EPA has made some improvements in the rules that allow our companies to continue reducing emissions while producing the oil and natural gas our country needs. This is a large and complicated rulemaking for an industry so critical to the economy, and we need to thoroughly review the final rule to fully understand its impacts.”


View the original article here

Apr 25, i need one chance to work on offshore as radio operator

by antony
(tamilnadu.)

i am antony. i have completed indian GMDSS and have indian CDC. i have been working in oil jetty for last two year. i attend two offshore company interview. but they need offshore experience. everybody needs offshor experience, bum nobody give to one chance ..hw can i get job? d a nmd

Click here to post comments.

Join in and write your own page! It's easy to do. How?
Simply click here to return to Rig Radio Operators.



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Mr. President, Approve This Pipeline

Fox News reports that EPA’s Region 6 administrator has apologized for comparing his agency’s enforcement strategy to Roman crucifixion. Of course, the 2010 remarks by EPA’s Al Armendariz, were captured on video, which you can see here.

Despite Armendariz’s apology, U.S. Sen. Jim Inhofe of Oklahoma, which is in the EPA region that Armendariz administers, is investigating. Inhofe said the crucifixion comments suggest a campaign of “threats” and “intimidation.”

Certainly, one poorly chosen analogy from a single regional administrator doesn’t indict an entire agency – though it’s concerning that this fellow, with his apparent zest for enforcement, has had oversight for the energy-rich Eagle Ford and Barnett shale areas of Texas. Talk about a chilling effect.

We hope that Armendariz’s a... more »

Interior Secretary Ken Salazar talked about a divide in America between the “real energy world and the imagined energy world” during a speech Tuesday in Washington. He’s got that right – but it’s not like the administration is on the right side of that divide. Consider:

It dismisses calls for increased access, saying it takes years to develop oil and natural gas resources, and then takes credit for increased production.It says it wants more oil and natural gas when in reality its policies set back production in the all-important Gulf of Mexico and on federal western lands.It says 75 percent of America’s offshore resources are open for development when in reality 87 percent of areas are off-limits.It says oil and natural gas are the energy of the past even though they... more »

Rounding up some of the latest rhetoric by Keystone XL pipeline opponents – separating fact from fiction (and utter fantasy) – while striving for an informed energy discussion. It’s not easy.

Let’s start with a great big fact:

The U.S. Energy Information Agency (EIA) reports that oil and natural gas supply 62 percent of the energy we currently use. In 2035, EIA says oil and gas still will supply about 60 percent of the energy we use.

That’s the energy reality, according to the government. We run our economy and our lives on oil and natural gas. It’s the energy of today and tomorrow. Yes, America will need all energy sources in the years to come, but any notion that we can embark on an “off-oil” strategy without severe economic and social repercussions is uninformed, disingenuou... more »

During a recent conference call with reporters API Chief Economist John Felmy said the country is at a “crossroads of energy and economic policy.” That’s quite a crossroads. Chad Moutray, chief economist at the National Association of Manufacturers, pointed out that manufacturing has added 462,000 net new jobs since 2010, and that continued growth hinges on energy and regulatory policy. So, where do we stand?

The administration’s energy policy is a muddle, as IPAA President and CEO Barry Russell argues in this Roll Call piece:

“Obama calls to expedite infrastructure projects, but in the wake of rejecting the Keystone XL pipeline. Obama claims increased oil and natural gas production on his watch, but then follows up with accusations that oil companies are profiting at the expense... more »

In response to a question about the Keystone XL pipeline back in January, White House Press Secretary Jay Carney told reporters: “[I]t is a fallacy to suggest that the president should sign into law something when there isn’t even an alternate route identified in Nebraska …” Carney also said the then-delay in reviewing the project was “a result of concerns in Nebraska about the route … and how it would affect the aquifer there.”

That was then. Now it appears the White House statements were really excuses, not concerns.

Indeed, last year the State Department’s exhaustive Keystone XL environmental review concluded that the project would be the safest pipeline ever built in the United States. The department also determined that the project’s proposed safety mechanisms and procedures wou... more »


View the original article here

Forbes: Big Oil = Biggest Taxpayers

Check out this informative post by Forbes’ Christopher Helman, who notes that Nos. 1, 2 and 3 on the magazine’s list of companies that paid the most in income taxes in 2011 were … energy companies.

That might surprise some people, given White House rhetoric about oil and natural gas companies not paying their “fair share.” It turns out Big Oil is the country’s Biggest Taxpayer. Here’s how Forbes’ data looks in a chart:

As you can see by the blue line, ExxonMobil ($27.3 billion), Chevron ($17.4 billion) and ConocoPhillips ($10.6 billion) occupy the top three spots in Forbes’ income-tax-paying ranking. Occidental Petroleum comes in at No. 18 ($2.9 billion).

Now check the chart’s red line. It shows that all four energy companies’ effective tax rates topped 40 percent – ExxonMobil 42 percent, Chevron 43.3 percent, ConocoPhillips 45.6 percent and Occidental 40.2 percent. Helman:

“And income taxes isn’t even the half of it–literally. Exxon also recorded more than $70 billion last year in sales taxes ($33.5 billion) and other taxes and duties ($43.5 billion). But none of that will matter to the president if gasoline prices keep climbing. Having been blocked on his Big Oil tax hike, don’t be surprised if in the heat of the summer driving season he calls for a windfall profits tax on oil companies. The very concept implies that the companies are earning an unfairly high return. Sure Exxon’s and Chevron’s net incomes are high. But so are their revenues! Exxon’s revenues were $486 billion and Chevron’s were $254 billion. That implies an average net margin of just 10%.”

Helman continues:

“Compare that with the $33 billion that Apple made in 2011 on $128 billion in revenues and Microsoft‘s $23 billion income on $72 billion in sales. Those margins are 26% and 32%. And yet Apple enjoyed a low effective tax rate of 25% and paid a relatively meager $4 billion in income taxes, putting it in ninth place on our list of the biggest U.S. corporate taxpayers, while Microsoft had an effective rate of just 16% and paid $5.3 billion, placing it sixth.”

The point is that America’s oil and natural gas companies pay their fair share, more than $86 million a day in rents, royalties and income taxes, yet regularly are singled out by the administration for tax increases – the unfairness of which doesn’t seem to register with a White House that spends so much time talking about fairness.


View the original article here

EPA Regulation and Crucifixion

Fox News reports that EPA’s Region 6 administrator has apologized for comparing his agency’s enforcement strategy to Roman crucifixion. Of course, the 2010 remarks by EPA’s Al Armendariz, were captured on video, which you can see here.

Despite Armendariz’s apology, U.S. Sen. Jim Inhofe of Oklahoma, which is in the EPA region that Armendariz administers, is investigating. Inhofe said the crucifixion comments suggest a campaign of “threats” and “intimidation.”

Certainly, one poorly chosen analogy from a single regional administrator doesn’t indict an entire agency – though it’s concerning that this fellow, with his apparent zest for enforcement, has had oversight for the energy-rich Eagle Ford and Barnett shale areas of Texas. Talk about a chilling effect.

We hope that Armendariz’s approach to regulation is atypical. Industry prides itself on working as a partner with regulators. Perhaps EPA Administrator Lisa Jackson had some of her agency’s more enthusiastic members in mind when she acknowledged (here and here) that state regulation and state regulators should take the lead when it comes to producing energy from shale with hydraulic fracturing.

The states are best situated in terms of proximity, familiarity and perhaps temperament to regulate oil and natural gas development via fracking. They know the geology, hydrology and other local/regional conditions. With cooperation from industry and with the help of organizations like STRONGER, this is oversight best performed by the states.

Let’s not overburden them and industry – threatening the obvious benefits from shale energy production – by adding unnecessary, duplicative regulatory layers, which Wyoming Gov. Matt Mead argued in a recent letter to the Interior Department.


View the original article here