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Wednesday, November 27, 2013

Obama Approves Major Border-Crossing Fracked Gas Pipeline Used to Dilute Tar Sands





by Steve Horn 
 
Greenpeace activists from Canada, the U.S. and France placed a giant banner reading “Tar Sands: Climate Crime” blocking the giant tar sands mining operation at the Shell Albian Sands outside of Fort McMurray, Alberta, Canada onTuesday, September 15, 2009. (Greenpeace) 



Although TransCanada's Keystone XL tar sands pipeline has received the lion's share of media attention, another key border-crossing pipeline benefitting tar sands producers was approved on November 19 by the U.S. State Department.

Enter Cochin, Kinder Morgan's 1,900-mile proposed pipeline to transport gas produced via the controversial hydraulic fracturing ("fracking") of the Eagle Ford Shale basin in Texas north through Kankakee, Illinois, and eventually into Alberta, Canada, the home of the tar sands.

Like Keystone XL, the pipeline proposal requires U.S. State Department approval because it crosses the U.S.-Canada border. Unlike Keystone XL - which would carry diluted tar sands diluted bitumen ("dilbit") south to the Gulf Coast - Kinder Morgan's Cochin pipeline would carry the gas condensate (diluent) used to dilute the bitumen north to the tar sands.

"The decision allows Kinder Morgan Cochin LLC to proceed with a $260 million plan to reverse and expand an existing pipeline to carry an initial 95,000 barrels a day of condensate," the Financial Post wrote.

"The extra-thick oil is typically cut with 30% condensate so it can move in pipelines. By 2035, producers could require 893,000 barrels a day of the ultra-light oil, with imports making up 786,000 barrels of the total."
Increased demand for diluent among Alberta's tar sands producers has created a growing market for U.S. producers of natural gas liquids, particularly for fracked gas producers.

"Total US natural gasoline exports reached a record volume of 179,000 barrels per day in February as Canada's thirst for oil sand diluent ramped up," explained a May 2013 article appearing in Platts. "US natural gasoline production is forecast to increase to roughly 450,000 b/d by 2020."

Before Eagle Ford, Kinder Morgan Targeted Marcellus


Pennsylvania's Marcellus Shale basin was Kinder Morgan’s first choice pick for sourcing tar sands diluent for export to Alberta. It wasn't until that plan failed that the Eagle Ford Shale basin in Texas became Plan B.
Known then as the Kinder Morgan Cochin Marcellus Lateral Project proposal, the project fell by the wayside in February 2012.

"The company’s Cochin Marcellus Lateral Pipeline would have started in Marshall County, West Virginia, and transported natural gas liquids from the Marcellus producing region of Pennsylvania, West Virginia and Ohio," wrote the Mount Vernon News of the canned project. [It] would [then] carry the [natural gas] liquids to processing plants and other petrochemical facilities in Illinois and Canada."

"Kinder Magic": More to Come?


Industry market trends publication RBN Energy described Kinder Morgan's dominance of the tar sands diluent market as "Kinder Magic" in a January 2013 article.

"These are still early days for the developing condensate business in the Gulf Coast region," RBN Energy's Sandy Fielden wrote. "Plains All American and Kinder Morgan are developing the potential to deliver at least 170,000 barrels per day of Eagle Ford condensate as diluent to the Canadian tar sand fields in Alberta by the middle of 2014."

Fielden explained we could see many more of these projects arise in the coming years.

"We have a sense that before too long there will be many more condensate infrastructure projects showing up like 'magic' in midstream company presentations."

While the industry press coverage sounds optimistic, it doesn’t account for the concurrent rise of public opposition to dirty energy pipelines and expansion plans in the fracking and tar sands arenas, so only time will tell the fate of Cochin and its kin.

Tuesday, November 19, 2013

The Incredible Sinking Obama



The Incredible Sinking Obama


 
Nov 19, 2013 8:59am


NOTABLES
  • OBAMA FACES RECORD DISAPPROVAL NUMBERS: Barack Obama has been hammered by the botched rollout of the Affordable Care Act, with disapproval of his job performance reaching a career high, opposition to the new healthcare law up sharply and evidence of potential fallout in the midterm elections a year off, ABC NEWS POLLSTER GARY LANGER writes. The president’s job approval rating has fallen to 42 percent in a new ABC News-Washington Post poll, down 13 percentage points this year and 6 points in the past month to match the lowest of his presidency. Fifty-five percent disapprove — a record. And 70 percent say the country’s headed seriously off on the wrong track — up 13 points since May to the most in two years. http://abcn.ws/18KYLXq
  • THE PRESIDENT’S PERSONAL IMAGE HAS SUFFERED: President Obama is also at career lows for being a strong leader (down by 15 points this year and a vast 31 points below its peak shortly after he took office), understanding the problems of average Americans and being honest and trustworthy — numerically under water on each of these, LANGER notes. Just 41 percent rate him as a good manager; 56 percent think not. And fewer than half — 46 percent — see him favorably overall, down 14 points this year to the fewest of his presidency. Fifty-two percent now view him unfavorably, a new high and a majority for the first time since he took office. http://abcn.ws/18KYLXq
  • OBAMACARE’S MOST NEGATIVE RATING TO DATE: Americans by nearly 2-1, 63-33 percent, disapprove of Obama’s handling of implementation of the new health care law. And the public by 57-40 percent now opposes the law overall, with opposition up by 8 points in the past month alone. Fifty-six percent describe the cancellation of health insurance policies that are deemed substandard under the law as “mismanagement” rather than a normal startup problem. Given the breakdown of the HealthCare.gov website, a broad 71 percent favor postponing the individual mandate requiring nearly all Americans to have coverage. And the mandate’s still widely unpopular in any case; 65 percent of Americans oppose it — a majority of them, strongly. Notably, even among those who support the individual mandate, 55 percent favor delaying it. http://abcn.ws/18KYLXq

 

THE ROUNDTABLE



ABC’s RICK KLEIN: Can a Website wreck a presidency? The botched Obamacare rollout has blown a hole through the middle of President Obama’s support, all in the month after the Republican Party seemed to ruin its own image over a government shutdown and debt showdown. It’s a staggering turnabout – a new low of 42 percent on his approval rating, and career lows on the attributes (honest and trustworthy, strong leadership) that have buoyed his public career. Most troubling, perhaps, is that Obama has lost the support of independents, where his approval rating is down to 33 percent. His steepest loss in approval rating is among young adults under age 30 – one reason Mitt Romney comes out barely ahead, 49-45, in a hypothetical year-after rematch. And down the ballot, look out: Support for Obamacare makes voters more likely to oppose a particular candidate, 31-25, even in the states the president just carried a year ago.


ABC’s JEFF ZELENY: No poll comes as a surprise to President Obama, given that the White House polling operation remains one of the most robust in the city. Yet even though he’s not surprised, the findings of the latest ABC News-Washington Post survey are sobering for Democrats. The 42 percent approval rating in today’s poll is not even the most alarming number for the West Wing. If the president hopes to regain credibility and restore confidence, this is the data point that is the most worrisome: 7 in 10 Americans believe the country is headed seriously on the wrong track, which is up 13 points in the last six months. And that explains why every Democrat on the ballot next year is sweating.


ABC’s MICHAEL FALCONE: “I really just would like to be there, I would like to see Mitt there. There are so many things that I would like to have seen been addressed right now,” Ann Romney recently told CNN when asked how she feels about not being in the White House right now. Turns out, she’s not alone. If the 2012 presidential election were being held today instead of just over a year ago, 49 percent of registered voters would lean toward supporting Mitt Romney compared to 45 percent who would back President Obama, according to today’s ABC News-Washington Post poll. The change of heart on the part of some voters is no doubt driven by the angst — and anger — over the problem-plagued rollout of the Affordable Care Act. In fact, the poll shows that in the states that backed Mitt Romney in 2012, Americans by a 46 to 15 percent margin, say they’re more inclined to oppose than to support a candidate who favors the law — a troublesome data point for vulnerable Democrats in 2014.


ABC’s ABBY PHILLIP: Public support for same sex marriage is at an all-time high according to a recent Gallup poll, the Supreme Court invalidated parts of the Defense of Marriage Act earlier this year, and more states than ever recognize same sex marriages. Yet the Republican Party remains torn by a conservative Christian base that’s still very much powerful and the desire to appeal to younger, less socially ideological voters. Ultimately, however, what made Liz Cheney’s public disagreement with her sister Mary Cheney so surprising is that the political necessity of today appears to have outweighed the power of her personal relationships. “We are reaching the point where there are a lot of people out there who are simply finding it rather incredible that—when an individual who is extremely close to someone who is in a same sex marriage—that that person would oppose legal same sex marriage,” said Liz Mair, a Republican communications consultant who is affiliated with the Freedom to Marry campaign. When Sen. Rob Portman, R-Ohio, announced earlier this year that he supported same sex marriage, it was because of the influence of his gay college-aged son. Rep. Ileana Ros-Lehtinen, R-Fla., is a rare House Republican supporter of same sex marriage; her daughter is a transgender LGBT activist. In the end Cheney’s remarks may not have been a departure from Republican dogma, but it surprised many who expected her to take the public view of her own father, who supports same sex marriage in light of her sister Mary’s marriage.

BUZZ


ANOTHER EARLY SIGN OF PROBLEMS WITH OBAMACARE ROLLOUT. 

A document uncovered by Congressional investigators indicates that senior administration officials at the White House and Department of Health and Human Services were made aware of the concerns about meeting the October 1 launch date and the inability of developers to complete end to end testing as early as March during presentations conducted at the request of the administration by McKinsey & Co., ABC’s JOHN PARKINSON notes. The Energy and Commerce Committee’s investigation into the rollout of the health care law has uncovered documents showing Secretary Sebelius received this briefing on April 4, but two weeks later on April 18 she testified at the Energy and Commerce Committee that development was “on track and the contracts have been led and we are monitoring it every step along the way…I can tell you we are on track.”