Quantcast
Environmental News for a Healthier Planet and Life

Help Support EcoWatch

Public Opposition Costs Tar Sands Industry a Staggering $17B

Energy

Once viewed by those in the fossil fuel industry as one of their brightest hopes for more big profits, tar sands extraction is looking riskier and costlier.

Opposition to Keystone XL and other tar sands-related projects has cost the industry dearly.
Photo credit: Shutterstock

As Republicans in the U.S. continue to look for ways to ram through the Keystone XL pipeline after years of persistent and intensifying resistance from community and environmental groups, farmers and Native tribes, and TransCanada, the biggest company developing the Alberta tar sands, moves forward with a proposal for the even longer Energy East pipeline, there are signs that extracting oil from tar sands bitumen, one of the dirtiest forms of energy extraction, may be hitting some hard times.

And the protests may be a big part of the impact, along with plummeting oil prices, which are making both tar sands extraction and fracking less lucrative. Anti-tar sands actions have cost the industry $17 billion in revenue from 2010—about the time the anti-fracking campaign started—and 2013, according to a report published by the Institute for Energy Economics and Financial Analysis (IEEFA) and Oil Change International. It assesses for the first time how much the opposition has cost the industry—and what the carbon impact of that has been.

"The Keystone XL tar sands pipeline is one of the most talked-about North American energy and political issues of the era. Once thought inevitable, the project and Canada’s plan to expand tar sands production have been confronted by an accumulation of economic and political risks creating a veritable ‘carbon blockade,'" it says.

The report, Material Risks: How Public Accountability Is Slowing Tar Sands Development, revealed that tar sands exploration and extraction has lost almost $31 billion in that time period. It estimated that 55 percent of that was due to protests against tar sands development. Another $13.8 billion has been lost due to changes in the oil market.

“Industry officials never anticipated the level and intensity of public opposition to their massive build-out plans,” Oil Change International's executive director Steve Kretzmann told the London Guardian. “Legal and other challenges are raising new issues related to environmental protection, indigenous rights and the disruptive impact of new pipeline proposals. Business as usual for Big Oil—particularly in the tar sands—is over.”

It pointed out that lack of access to a market for its product "caused in large part by public accountability actions driven by pipeline campaigns," played an important part in the cancellation of three major tar sands projects so far in 2014, projects that would have released 2.8 billion tons of carbon into the atmosphere.

And, as Big Oil salivates over the possibility of a Republican-controlled Congress pushing President Obama to the wall to approve Keystone XL—possibly even with threats of impeachment if he does not give in to industry wishes—they're facing the unimpeachable reality of an oil glut and price drops, making investment in tar sands extraction still more unprofitable. The study said that nine of the ten leading Canadian tar sands producers underperformed the stock market in the last five years.

The report concludes, "It is expected that sometime during late 2014 or early 2015 the United States government will make a critical decision that could move the project forward or cause [Keystone XL's] cancellation or further delay. Whatever the decision, the storyline of unfettered growth attached to Keystoneand other tar sands projects has been permanently altered. Growing public sentiment to find alternatives to fossil fuels will drive much of the dialogue."

"This falling price—coupled with the growing grassroots mobilization against tar sands and—means that actually it’s the anti-oil movement who, for once have reason to be cheerful, no matter what happens in the midterm elections," wrote Oil Change International contributing editor Andy Rowell.

YOU MIGHT ALSO LIKE

Energy East Pipeline: TransCanada's Keystone XL on Steroids

Cumulative Climate Impacts of Tar Sands Pipelines

As Keystone XL Dominoes Fall, Time to Arrest Tar Sands Industry

EcoWatch Daily Newsletter

Much of Eastern Oklahoma, including most of Tulsa, remains an Indian reservation, the Supreme Court ruled on Thursday. JustTulsa / CC BY 2.0

Much of Eastern Oklahoma, including most of Tulsa, remains an Indian reservation, the Supreme Court ruled on Thursday.

Read More Show Less
The Firefly Watch project is among the options for aspiring citizen scientists to join. Mike Lewinski / Wikimedia Commons / CC by 2.0

By Tiffany Means

Summer and fall are great seasons to enjoy the outdoors. But if you're already spending extra time outside because of the COVID-19 pandemic, you may be out of ideas on how to make fresh-air activities feel special. Here are a few suggestions to keep both adults and children entertained and educated in the months ahead, many of which can be done from the comfort of one's home or backyard.

Read More Show Less
People sit at the bar of a restaurant in Austin, Texas, on June 26, 2020. Texas Governor Greg Abbott ordered bars to be closed by noon on June 26 and for restaurants to be reduced to 50% occupancy. Coronavirus cases in Texas spiked after being one of the first states to begin reopening. SERGIO FLORES / AFP via Getty Images

The coronavirus may linger in the air in crowded indoor spaces, spreading from one person to the next, the World Health Organization acknowledged on Thursday, as The New York Times reported. The announcement came just days after 239 scientists wrote a letter urging the WHO to consider that the novel coronavirus is lingering in indoor spaces and infecting people, as EcoWatch reported.

Read More Show Less
A never-before-documented frog species has been discovered in the Peruvian highlands and named Phrynopus remotum. Germán Chávez

By Angela Nicoletti

The eastern slopes of the Andes Mountains in central Perú are among the most remote places in the world.

Read More Show Less
Left: Lemurs in Madagascar on March 30, 2017. Mathias Appel / Flickr. Right: A North Atlantic right whale mother and calf. National Marine Fisheries Service

A new analysis by scientists at the Swiss-based International Union for Conservation of Nature (IUCN) found that lemurs and the North Atlantic right whale are on the brink of extinction.

Read More Show Less
Nobody knows exactly how much vitamin D a person actually needs. However, vitamin D is becoming increasingly popular. Colin Dunn / Flickr / CC by 2.0

By Julia Vergin

It is undisputed that vitamin D plays a role everywhere in the body and performs important functions. A severe vitamin D deficiency, which can occur at a level of 12 nanograms per milliliter of blood or less, leads to severe and painful bone deformations known as rickets in infants and young children and osteomalacia in adults. Unfortunately, this is where the scientific consensus ends.

Read More Show Less

Trending

Data from a scientist measuring macroalgal communities in rocky shores in the Argentinean Patagonia would be added to the new system. Patricia Miloslavich / University of Delaware

Ocean scientists have been busy creating a global network to understand and measure changes in ocean life. The system will aggregate data from the oceans, climate and human activity to better inform sustainable marine management practices.

EcoWatch sat down with some of the scientists spearheading the collaboration to learn more.

Read More Show Less