The bitumen sands and global decarbonization

Still, even if it was not recognized in many boardrooms in Calgary or anywhere else in the industry, oil’s dominance could no longer be taken for granted. Climate change was not readily managed like the sludge in a single tailings pond or contained like the mess from a single pipeline spill. This was a more profound challenge to the industry’s story of progress — perhaps an existential one. In the years after Shell unveiled its two scenarios, environmental activists began to stand in opposition to one new fossil fuel project after another, and bankers and investors started to ask industry executives tough questions about whether their reserves represented future profits or “stranded assets.” And starting with the proposed Keystone XL project, a major new pipeline that intended to carry Alberta’s bitumen from a storage terminal on the prairie south of Fort McMurray to the Gulf of Mexico, the oil sands became the front line in a larger conflict. In the story of progress being told with climate change at its centre, the world had no choice but to move as quickly as possible toward an economy free of greenhouse gas emissions. For a variety of reasons connected only tangentially to the daily operations of an oil sands site — American political considerations and universal symbolic impact, in particular — the elimination of the Patch’s daily ration of the world’s oil supply came to be seen as the essential first step in this decarbonization process.

Turner, Chris. The Patch: The People, Pipelines and Politics of the Oil Sands. Simon & Schuster, 2017. p. 15–6

Fort McMurray in 2007

The city existed in a perpetual state of growth and agitation. Numbers were murky at the peak of the boom — no one could get a clear count of the “shadow population” living in work camps and other short-term arrangements — but safe to say there were many hundreds like Raheel Joseph arriving each month. Hundreds and hundreds of young people, young men especially, who’d come from somewhere far away because here was a place where the full scale of opportunity a person could grasp all at once was still an open question. And so there were too many people and there was too much money and there was not enough of anything else in Fort McMurray in 2007. A little snow or a single stalled truck, and traffic on Highway 63 was pure gridlocked chaos. You went to Walmart, and no one was stocking shelves — they couldn’t afford the wages to pay someone to do it, and there was no time. They just put the groceries or housewares or work clothes or whatever new stuff made it to the boomtown that week out on pallets, and the pallets would be empty within hours. This was really how things went, day in and day out. Any warm body could find a job, but try to get a table at a restaurant, try to get a coffee at Tim Hortons in less than half an hour, try to find a bed to sleep in.

Turner, Chris. The Patch: The People, Pipelines and Politics of the Oil Sands. Simon & Schuster, 2017. p. 5

Related: Boomtowns and bitumen

The Chiron and humanity at its worst

I’ve written elsewhere about how The Economist doesn’t understand climate change. In their science section and the occasional editorial they stress the need for massive and urgent action, but their thinking is not joined up. Their general editorial stance remains that economic growth is the greatest good, every new fossil fuel discovery is a boon, and that largely business-as-usual politics is either desirable or inevitable.

One passage from a recent special report on France demonstrates the chasm between their enthusiasms and what is necessary for a sustainable world:

The word “factory” does not do justice to Bugatti’s state-of-the-art production site in the shadow of the forest-clad Vosges mountains in eastern France. There is no grease or grime around the assembly line. The floor is a shimmering white gloss. The airy space feels more like a museum of modern art, gleaming eight-litre engines displayed like so many design exhibits. Workers wear white gloves, as if handling treasures. In fact, they are building the world’s fastest supercar.

A Milanese engineer, Ettore Bugatti, founded a car factory in this corner of France in 1909. Germany’s Volkswagen, which later bought the brand, chose Bugatti’s historic French site to develop the Veyron, a car designed to combine elegance and speed. The French factory turned out every one of these luxury record-breaking cars after their launch in 2005. This year Bugatti unveiled a successor, the Chiron, which pushes the limits of physics and sleek design further still. The car reaches 100km (62 miles) an hour in two-and-a-half seconds and has a starting price of €2.4m. Christophe Piochon, head of the French plant, compares the exquisite craftsmanship that goes into the construction of a Bugatti car to haute couture.

This schoolboy hard-on for a product that embodies everything that is putting humanity in peril is both telling and depressing. There’s a pretty strong case that nobody should be allowed to be rich enough to own a €2.4m car. Most people in that position are probably corporate executives, and there is little reason to believe they deserve it. It does not seem that the people who are given such lavish compensation produce that level of value for their employers, and even if they did it doesn’t necessarily follow that they should get to keep it for themselves.

Beyond the issues of economic inequality, there is the fundamental inappropriateness of the technology itself. Car racing is spectacularly pointless in itself, but a race track is essentially the only suitable venue for such a vehicle. Having people driving them around city streets as status symbols demonstrates much about what’s sick in our culture.

Pros and cons of Google’s advanced protection

I see enormous appeal in Google’s new advanced protection system for accounts. It requires a physical token to access your account, adds further screening of attachments, and has a much tougher account recovery process for anybody who legitimately loses access to their own account. It augments the security provided by their two-factor smartphone app by reducing the risk of someone using an attack against your phone as a way to steal the second factor.

Two problems are keeping me from signing up right away. First, it requires that you buy a Bluetooth token as well as a USB token. I much prefer to avoid wireless communications if possible, and I don’t want a delicate device that needs regular battery charging to carry around. The two tokens together cost about $50, and as an extra pain the Bluetooth token seems to be a pair to order via Amazon in Canada. Second, it forces you to access your account through Google’s Chrome browser, which seems unnecessarily restrictive and monopolistic.

Limits to the effectiveness of divestment

There are some comparatively convincing arguments for why fossil fuel divestment can’t do much to limit the severity of climate change, at least in terms of the direct effects from institutions selling their shares.

One important one is that people buying and selling stocks, and the changing value of the stocks, doesn’t directly profit or harm the company involved. A secondary market in shares is necessary to make IPOs possible, but once a company has gone public, it raises the money for big new fossil fuel projects in other ways, such as borrowing from banks.

Another is that — while the proven reserves owned by companies like ExxonMobil are vast and can do considerable climate damage — sovereign countries have much larger reserves:

There are responses to these objectives, mainly in terms of how divestment is meant to gradually shift investor sentiment. Divestment is based on a financial as well as a moral case: if we really are going to control climate change, we can’t burn most of the world’s remaining coal, oil, and gas. As such, it makes no sense to develop big new projects, since we can’t even use all the resources in projects that have already been built. If it helps to spread that idea, divestment will have been worthwhile.

It might even help reduce the value of Saudi Aramco itself and the magnitude of its future investments, given that the firm is expected to be partly privatized in the near future.

Civil disobedience as a climate change activism tactic

Friday’s episode of “The Current” discussed the case of Michael Foster who — after warning the pipeline control centre to shut off the pumping stations — turned a valve to shut down the flow of bitumen through the Keystone pipeline in North Dakota. It’s a very self-conscious act of civil disobedience, with Foster sending video to the company in real time showing that the shutdown was imminent and discussing beforehand his expectation that he would be convicted of a crime (transcript / MP3).

Few who take climate change seriously would see this action as unjustified. Canada should have started shutting down the oil sands decades ago and should never have developed them to their current size. There is much debate, however, on the effectiveness of such actions. Their logic depends on influencing external actors: either the general public or the legal system.

Fairly recently my friend Stuart was involved in a non-violent direct action blocking automobile access to Heathrow airport. The objective was essentially “consciousness raising” (he said it was to “stir up the national debate about Heathrow”), that the willingness of activists to put themselves in legal jeopardy would make people accept how terribly unethical our casual use of air travel is.

In the Heathrow case, it’s hard for me to imagine that outcome. Air travellers are stressed and deeply entitled. They feel totally justified in complaining about any inconvenience, and I doubt more than a trivial number would reconsider the broad context of their air travel use when exposed to an action like this.

The situation discussed in the pipeline shutdown case podcast seems to offer a little more hope, largely because of the opportunity to use the legal proceedings as a vehicle for public education. Pipeline companies are already seen as villains by many, and the public and the courts may be more sympathetic to the value of disrupting them than of disrupting the air travel of ‘normal’ people. That said, the courts are a bad mechanism for trying to change climate policy for several reasons: they tend to defer to elected politicians on questions of policy, they can prohibit specific things but rarely order broad outcomes, and rulings requiring broad policy changes are often ignored.

We don’t have good options though. The general public are entitled, selfish, and determined to defend the status quo even when it imposes catastrophe on others. It’s common to say that they are apathetic, but I think that’s a misdiagnosis; it’s less that people have accepted the need to act but are unwilling to do so personally and more that they are constantly acting to support the system that is destroying nature and the prospects of all future human generations. They are unwilling to change their lives or their politics nearly enough or nearly quickly enough to avoid climate catastrophe. No political party in Canada, the U.S., or U.K. has a serious plan to meet the Paris Agreement targets, much less to actually avoid dangerous climate change. And so, in an unprecedented situation and with no good options, activists are trying what’s available and sacrificing their freedom to do so.

One of the most insightful comments about climate change is George Monbiot’s observation that:

[The campaign against climate change] is a campaign not for abundance but for austerity. It is a campaign not for more freedom but for less. Strangest of all, it is a campaign not just against other people, but against ourselves.

No matter how strong the scientific consensus and how undeniable the real-world evidence becomes, nothing so far has convinced people to take action even slightly commensurate with the scale of action required, and people turn all their intellectual and rhetorical skills to justify that inaction (such as by pointing to the other good things they do). Overcoming those psychological responses may be just as important as breaking the power of the fossil fuel industry in a global campaign that can keep us from imposing so much suffering on future generations that we threaten the very ability of human civilization to endure.

Related:

What role do social movements play in blocking fossil fuel projects?

It’s rare to see an article on a news website speaking so directly to a current question of current scholarly interest. In 2012, Doug McAdam and Hilary Boudet published Putting Social Movements in their Place: Explaining Opposition to Energy Projects in the United States, 2000-2005, which generally encourages scholars of contentious politics and social movements to consider other explanations for political outcomes. I have personally wondered about how to evaluate and feel about climate change activist effectiveness.

A CBC News opinion piece from two days ago: “Social movements played a huge part in derailing Energy East

It expresses the common and convincing activist argument that just delaying projects and adding perceived risk is helping to slow the pace of fossil fuel exploitation:

The pipeline was originally scheduled to be approved by the end of 2014 and in operation by the end of 2018. Instead, delays won by Indigenous communities, grassroots groups, labour unions and NGOs prevented Energy East from being built when it was still economically and politically feasible, back when the price of oil was well north of $80 per barrel.

These delays also created space for Energy East opponents to carve out new expectations of the environmental and social burdens of proof needed for an energy project’s approval, making it even harder to build.

Two events in particular each drove about two years of delay. First, there was the September 2014 grassroots-funded legal challenge on risks to beluga whales at the project’s proposed Cacouna Marine terminal, which triggered a long process of TransCanada trying and failing to find a new Quebec location acceptable to the public.

And second, there was the Charest Affair, where an apparent conflict of interest called into question the overall validity – and legality – of the National Energy Board’s hearing on Energy East, causing delays.

It is this groundswell of opposition that created the political space for policy-oriented opponents to Energy East to successfully advocate for a review of the National Energy Board’s approval process, and for new interim measures to be applied to Energy East. Among them was the consideration of the climate change impacts of the project — something that, ideally, would be a given for an environmental review of a fossil fuel project.

The pipeline’s new review, if it had been restarted, would have been the first to include consideration of greenhouse gas emissions both up- and down-stream from the project. These added requirements, in combination with the dour economic outlook for bitumen export and the risks of direct action during construction, mean Energy East has become impossible to build. So yes, the cancellation of Energy East was a business decision, but it was one made in a landscape that’s been successfully engineered by social movements.

You see a similar argument from fossil fuel divestment activists; even if their target institutions choose not to divest, they are spreading the idea that big new fossil fuel projects may be financially risky within the community of institutional investors, including other schools, municipalities, etc.

The author is also of interest: “Bronwen Tucker is a community organizer and climate policy researcher. She is currently investigating the impacts of anti-pipeline campaigns as a graduate student at the University of Oxford.”

Responding to violence intelligently

The often-excellent NPR Planet Money podcast (which ran an earlier episode about “Freeway” Rick) had two notably engaging recent segments.

One included an interesting account of the data-analysis-decision-action cycle in intelligence work, specifically when deciding if an assailant is an enemy counterintelligence agent or drug-addled mugger.

The other discussed policy and incentive problems in the area of kidnapping and ransom, including Canada’s supposed policy of not paying ransoms and prohibiting families from doing so.

Each is well worth a listen.

Elena Cherney and Steve Paiken on pipelines and bitumen sands

They stress the unknown future production levels from U.S. oil fracking as important for determining the future size of Canada’s oil industry.

They mention this Jeff Rubin report: Evaluating the Need for Pipelines: A False Narrative for the Canadian Economy

Abstract:

The claim that additional pipeline capacity to tidewater will unlock significantly higher prices for bitumen is not corroborated by either past or current market conditions. Recent international commitments to reduce global carbon emissions over the next three decades will significantly reduce the size of future oil markets. Only the lowest-cost producers will remain commercially viable while high-cost producers will be forced to exit the market. The National Energy Board should consider a rapidly decarbonizing global economy when assessing the need and commercial viability of further pipelines in the country and use Western Canadian Select as the price benchmark when evaluating the economic viability of any new oil sands projects. Pension plans need to stress test their long-term investments in the oil sands in the context of a decarbonizing global economy.

Related:

Open thread: peak oil

Peak oil and climate change

Fracking and peak oil

Fatih Birol on peak oil

Why Your World Is About to Get a Whole Lot Smaller

Export industries, shipping, and the price of oil

Is there an alternative to extracting the bitumen sands?

Justin Trudeau’s depressing perspective on the oil sands

‘Shut down the oil sands’ is not an extreme position

Two things Canada’s oil industry needs to understand

Canada should phase-out fossil fuel exports

The oil sands can’t be sustainable

The magnitude of GHG emissions from the oil sands

Blocking in the oil sands

Canada does not have the right to develop the oil sands

Oil sands buyers and sellers

Fourth rule of the internet

A somewhat obvious rule of internet security to add to the first three:

  1. Against a sophisticated attacker, nothing connected to the internet is secure.
  2. Everything is internet now.
  3. You should probably worry more about being attacked online by your own government than by any other organization.
  4. Sensitive data about you is largely on the computers of other people who care little about your security.

Equifax is getting lots of attention right now, but consider also Deloitte, Adobe, Stratfor, Blizzard, LinkedIn, DropBox, Ashley Madison, last.fm, Snapchat, Adult Friend Finder, Patreon, Forbes, Yahoo, and countless others.

As Bruce Schneier points out, the only plausible path to reduce such breaches is for governments to make them far more painful and costly for corporations.