Transforming black crude oil into gasoline has
always been a notoriously dirty process. But oil
refineries are expanding so they can use a new source
of oil. That could make the process even dirtier.
Shawn Allee explains why this is happening
and what environmentalists are doing about it:
Transcript
Transforming black crude oil into gasoline has
always been a notoriously dirty process. But oil
refineries are expanding so they can use a new source
of oil. That could make the process even dirtier.
Shawn Allee explains why this is happening
and what environmentalists are doing about it:
Refineries are expanding because they’ve struck oil… and it’s not
far away….
Roxanne Potvin: “Oh Canada, our home in native land …”
That’s right, it’s from Canada.
“Phil here, can I help you? Hey, I’m doing good, how are you?”
Phil Flynn analyzes energy markets for Alaron Trading. Flynn
says Canada’s secret is oil pulled from tar sands.
“If you look at the oil sands that are in Canada, some experts
estimate there’s more oil in the oil sands than there is under
Saudi Arabia. And to be honest with you is, the reason why we
haven’t tapped it earlier is, it’s been a very expensive process to
do.”
But technology’s made tar sand oil competitive with lighter crude
from the Mideast and elsewhere.
Flynn says there’s a downside to Canadian tar sand oil. It’s
heavier, it’s dirtier, and it creates more refinery pollution. But he
says the market wants it anyway.
“You know, we want abundant supplies. We want to be able to
pull up at the pump, pay a dollar fifty a gallon and drive home
happily. But guess what, it doesn’t work that way in the real world.
Believe me, if the prices get high enough, even the environmentalists
will be more open to more negotiations.”
Actually, Flynn’s wrong on that – environmentalists are not willing
negotiate on new refinery pollution. Last year, green groups in
Chicago and Northwest Indiana were outraged by plans to
expand a BP refinery on Lake Michigan.
That BP plant will use new Canadian crude.
A new permit allowed it to dump more ammonia and suspended
solids – in other words… more pollution into Lake Michigan.
Environmentalists and politicians argued with regulators, then they
hit the airwaves …
“This is a clean water alert. BP Amoco has announced plans to
expand an Indiana refinery to process thick
crude oil – already one of the worst polluters …”
“I think that really tapped public sentiment that we’re going in the
wrong direction.”
Howard Learner directs the Environmental Law and Policy
Center.
Learner considers last year’s effort a success.
“Ultimately, BP was forced to back off, and BP is now committed
to no net increase in water pollution.”
That fight against BP’s refinery expansion plan in Indiana was not
isolated. Michigan activists fought a similar refinery expansion
plan in Detroit. Eventually, Marathon Oil agreed to keep water
and air pollution near present levels at that refinery.
Now, groups across the Midwest want to repeat these
performances. Altogether, they’re taking on expansions at ten refineries, from
South Dakota to Ohio, plus another in Ontario.
Learner says each could increase water and air pollution.
“So with these oil refineries having such a major environmental
footprint in our region, we want to make sure that they’re doing the
absolute best, state of the art, pollution control technology at the
beginning rather than later having to come back and say
oh wait a minute, we somehow missed the boat here, we gotta
get it fixed up. That’s not gonna fly.”
Learner says there does not have to be a trade-off between more
pollution and higher gas prices.
“Companies like BP, ConocoPhillips, MurphyOil, and Marathon are
making billions of dollars in profits. They can take and invest
some of those profits, not on doing their plants in ways that increase pollution, but in
ways that reduce pollution.”
But can we cut pollution and keep gas prices level?
Some economists doubt it.
Lynne Kiesling teaches at Northwestern University.
“Regardless of your perception of corporate profits there is a
fundamental trade-off between environmental quality and
increasing our refinery production.”
Kiesling says, when refineries invest in pollution control,
consumers ultimately foot the bill.
And she says drivers are to blame – over time, we buy more
gasoline – even when prices rise. So… oil companies are just trying to meet
our demand with new, dirtier oil.
Environmental groups have preached about getting out of our
cars for years – but they’ve been losing that battle.
They say all they can do now, is to fight the air and water pollution
that comes with dirtier oil.
For the Environment Report, I’m Shawn Allee.