msommers
09-15-2010, 02:29 PM
From the DOB today...
Suncor's George Defends Oilsands On International Stage
By Paul Wells
Montreal - Mudslinging, rhetoric and the distortion of facts have led to the rise in the "dirty oil" perception of Alberta's oilsands but the efforts of anti-oilsands campaigners are misguided, Suncor Energy Inc. chief executive Rick George told the World Energy Congress yesterday.
The head of Canada's largest oilsands producer took aim at detractors, saying that despite being "public enemy number one" in the minds and actions of many environmentalists, the oilsands industry has made great strides on the environmental front and bitumen that's extracted from the Fort McMurray region is an essential component to energy security.
"First, let me say that I recognize the oilsands is still an unknown commodity in many parts of the world - and perhaps in many parts of this room. Unfortunately, outside of Canada, all that many people may have heard about the oilsands is the label some industry detractors like to give us - 'dirty oil.' It's a memorable phrase, but one that's built more on fiction than fact," George said in a keynote address.
"One U.S.-based group recently went so far as to call on tourists to boycott Alberta until the province halts all oilsands expansion. Of course, this same group undermined its message with a series of questionable claims - including the assertion that oilsands mining had disturbed an area twice the size of the United Kingdom, when the reality is mining is limited to an area about a third the size of Montreal."
Similar campaigns have misrepresented the overall carbon footprint of oilsands crude, claiming it is three- to five-times higher than other crude products, an assertion he said was "simply not true."
"Publicity stunts and name-calling are not what we need right now. What we need is an adult conversation about the benefits and risks associated with energy production, and how we can maximize the former and minimize the latter," George said.
He noted that independent studies show oilsands crude is only marginally more carbon-intensive than many other crude sources.
"In fact, on a life-cycle basis, we are actually less carbon-intensive than many conventional sources. Some would also have you belief that the Canadian oilsands industry is public enemy number one when it comes to greenhouse gas [GHG] emissions. But the facts are otherwise."
To make his point, George threw out some facts that he believes are largely ignored by the mainstream: "Canada is currently responsible for two per cent of global GHG emissions. Our industry, in turn, is responsible for five per cent of Canada's emissions. Put those numbers together and you get about one-tenth of one per cent of global emissions - a small fraction of what is produced by the transportation sector and coal-generating plants, among others."
That being said, George acknowledged that the oilsands sector has work to do to reduce its environmental impact and to change the negative perception of the industry, which has seemingly taken on a life of its own.
"Let me be clear: there are serious and legitimate concerns about the environmental impact of oilsands development. This industry is energy- and water-intensive and absolute carbon emissions are expected to grow as our operations expand," he said.
"That's why we have, we must and we will work to continuously improve our environmental performance. We've still got a long way to go, but major progress has been made."
To highlight the industry's efforts to reduce its environmental footprint, George pointed to Suncor's efforts to improve upon its legacy tailings technology. Noting that tailings ponds are "big, unsightly and difficult to reclaim," he said that after ample research and investing more than $1 billion, the company is ready to implement new technology over the next two years.
"After years of research, Suncor has developed a drying process that will reduce our tailings backlog and the need for future ponds. It should also allow us to reclaim entire mine sites in a quarter of the time it now takes," he said. "This is exciting, industry-changing stuff. But it doesn't come cheap."
With the oilsands sector as a whole is under scrutiny, George added that a joint effort to combat technological and environmental challenges is another example of steps being taken by industry to improve its performance.
"One way we're doing this is through the recently created Oil Sands Leadership Initiative. Made up of Suncor and four other progressive-minded oilsands companies, this organization has a laser-like focus on innovations that lead to continuous improved performance," he said.
Noting that "it's early days yet," George said that OSLI's ambitions are reflected in its technology working group, which is examining what a model 21st century oilsands project might look like.
"The questions being asked include: How would we achieve a zero-carbon footprint? Could we have waterless oilsands extraction? That kind of commitment to innovation and bold thinking is what the future of this industry is all about," he said.
George added that the massive oilsands deposits will be an important source of additional supply for a world that is facing declining conventional crude output and rising demand from emerging economies.
"We are being asked to think about the kinds of energy production that could provide our economies with long-term stability," he said. "I'd humbly suggest the oilsands reserve is the very definition of what we are looking for."
Meanwhile, while talking to reporters after his speech, George said that despite recent pipeline incidents in Michigan and Illinois, he doesn't think two oilsands pipeline proposed by Enbridge Inc. and TransCanada Corporation will be affected in a negative fashion as regulators ponder approval.
"I don't see a connect there. The safest way we know to transport liquid or gas hydrocarbons around the world is by pipeline. It is not by tanker and it is not by osmosis," he said.
Enbridge's Line 6B, with a capacity of 190,000 bbls a day, has been out of service since late July, when a leak spilled more than three-million litres into a river system in southern Michigan, while Line 6A, with a capacity of 670,000 bbls a day, was also down while repair work continued Tuesday.
Although the shutdown of the pipelines is creating difficulties for oilsands producers trying to ship their product south, George said that Suncor has not been forced to cut production because of the shutdown of the key pipeline, although he admitted, "We're very hopeful [the pipeline] will get back into service quickly."
Meanwhile, a senior executive of ConocoPhillips was also on the defensive, this time regarding the environmental ramifications of shale gas development. Speaking at a congress panel discussion yesterday, Kevin Meyers, the company's senior vice-president, exploration and production-Americas, said public concerns also have to be confronted by shale gas producers.
"Public perception is important because public perception will eventually lead to public policy," he said. "And it is incumbent on all of us to make sure we are having a debate that is based on facts, not on emotion or misinformed perception."
In a second keynote address, Gregory Boyce, chairman and chief executive officer of U.S. coal giant Peabody Energy Corp., said coal has an important role to play in meeting increasing global energy demand and helping reduce poverty in regions in which often more than half the population lacks adequate access to energy.
"Global coal use expanded nearly 50% in the last decade. The world has trillions of tonnes of coal, which make up 60% of our global energy resources. And we will use them all," Boyce told the conference.
He said efforts to combat climate change must be balanced with the need to eradicate "energy poverty."
"There is lots of discussion about reducing carbon emissions, but little said about providing energy for all and reducing poverty," Boyce said, adding that electricity use drives economic development, and expansion of coal-fuelled electricity generation mirrors the increase in developing countries' GDP, he said.
Boyce argued that too much focus had been placed on cutting GHG emissions, while over two billion people globally had no access to energy.
"I submit that the greatest crisis that we face in the 21st century is not the future environmental crisis predicted by computer models, but the human crisis today. For too long, too many have been focused on the wrong end game," said Boyce.
Technology is being developed that will result in new "green-generation" coal-fired electricity plants that have near-zero carbon emissions, Boyce said.
Coal production has grown faster than any other fuel source during the past 10 years while reserves dwarf those of oil and natural gas, he added, making the hydrocarbon the most logical choice to deploy as a large-scale energy source in developing countries. "It is the only sustainable fuel to meet needs of emerging economies."
This quote really stuck out to me.
"Public perception is important because public perception will eventually lead to public policy," he said. "And it is incumbent on all of us to make sure we are having a debate that is based on facts, not on emotion or misinformed perception."
I'd take environmental groups more seriously if they had legit numbers to back up their 'claims'. It really blows me away how some of the public is in believe that oil companies are laughing all the way to the bank while they count their cash, giving the middle-finger to Mother Nature. Sure, they do make a lot of money but consider the initial risk and cost of some of these projects now.
We do have a long way to go and it would be plain wrong to say we're perfectly clean by any means. Regardless, consider the amount of time and money invested in reclaimation, alternative materials and methods for efficient and cleaner drilling/mining...hard to ignore.
And what really boggles my mind is how mining operations out east aren't nearly as publicized as Alberta's.
Suncor's George Defends Oilsands On International Stage
By Paul Wells
Montreal - Mudslinging, rhetoric and the distortion of facts have led to the rise in the "dirty oil" perception of Alberta's oilsands but the efforts of anti-oilsands campaigners are misguided, Suncor Energy Inc. chief executive Rick George told the World Energy Congress yesterday.
The head of Canada's largest oilsands producer took aim at detractors, saying that despite being "public enemy number one" in the minds and actions of many environmentalists, the oilsands industry has made great strides on the environmental front and bitumen that's extracted from the Fort McMurray region is an essential component to energy security.
"First, let me say that I recognize the oilsands is still an unknown commodity in many parts of the world - and perhaps in many parts of this room. Unfortunately, outside of Canada, all that many people may have heard about the oilsands is the label some industry detractors like to give us - 'dirty oil.' It's a memorable phrase, but one that's built more on fiction than fact," George said in a keynote address.
"One U.S.-based group recently went so far as to call on tourists to boycott Alberta until the province halts all oilsands expansion. Of course, this same group undermined its message with a series of questionable claims - including the assertion that oilsands mining had disturbed an area twice the size of the United Kingdom, when the reality is mining is limited to an area about a third the size of Montreal."
Similar campaigns have misrepresented the overall carbon footprint of oilsands crude, claiming it is three- to five-times higher than other crude products, an assertion he said was "simply not true."
"Publicity stunts and name-calling are not what we need right now. What we need is an adult conversation about the benefits and risks associated with energy production, and how we can maximize the former and minimize the latter," George said.
He noted that independent studies show oilsands crude is only marginally more carbon-intensive than many other crude sources.
"In fact, on a life-cycle basis, we are actually less carbon-intensive than many conventional sources. Some would also have you belief that the Canadian oilsands industry is public enemy number one when it comes to greenhouse gas [GHG] emissions. But the facts are otherwise."
To make his point, George threw out some facts that he believes are largely ignored by the mainstream: "Canada is currently responsible for two per cent of global GHG emissions. Our industry, in turn, is responsible for five per cent of Canada's emissions. Put those numbers together and you get about one-tenth of one per cent of global emissions - a small fraction of what is produced by the transportation sector and coal-generating plants, among others."
That being said, George acknowledged that the oilsands sector has work to do to reduce its environmental impact and to change the negative perception of the industry, which has seemingly taken on a life of its own.
"Let me be clear: there are serious and legitimate concerns about the environmental impact of oilsands development. This industry is energy- and water-intensive and absolute carbon emissions are expected to grow as our operations expand," he said.
"That's why we have, we must and we will work to continuously improve our environmental performance. We've still got a long way to go, but major progress has been made."
To highlight the industry's efforts to reduce its environmental footprint, George pointed to Suncor's efforts to improve upon its legacy tailings technology. Noting that tailings ponds are "big, unsightly and difficult to reclaim," he said that after ample research and investing more than $1 billion, the company is ready to implement new technology over the next two years.
"After years of research, Suncor has developed a drying process that will reduce our tailings backlog and the need for future ponds. It should also allow us to reclaim entire mine sites in a quarter of the time it now takes," he said. "This is exciting, industry-changing stuff. But it doesn't come cheap."
With the oilsands sector as a whole is under scrutiny, George added that a joint effort to combat technological and environmental challenges is another example of steps being taken by industry to improve its performance.
"One way we're doing this is through the recently created Oil Sands Leadership Initiative. Made up of Suncor and four other progressive-minded oilsands companies, this organization has a laser-like focus on innovations that lead to continuous improved performance," he said.
Noting that "it's early days yet," George said that OSLI's ambitions are reflected in its technology working group, which is examining what a model 21st century oilsands project might look like.
"The questions being asked include: How would we achieve a zero-carbon footprint? Could we have waterless oilsands extraction? That kind of commitment to innovation and bold thinking is what the future of this industry is all about," he said.
George added that the massive oilsands deposits will be an important source of additional supply for a world that is facing declining conventional crude output and rising demand from emerging economies.
"We are being asked to think about the kinds of energy production that could provide our economies with long-term stability," he said. "I'd humbly suggest the oilsands reserve is the very definition of what we are looking for."
Meanwhile, while talking to reporters after his speech, George said that despite recent pipeline incidents in Michigan and Illinois, he doesn't think two oilsands pipeline proposed by Enbridge Inc. and TransCanada Corporation will be affected in a negative fashion as regulators ponder approval.
"I don't see a connect there. The safest way we know to transport liquid or gas hydrocarbons around the world is by pipeline. It is not by tanker and it is not by osmosis," he said.
Enbridge's Line 6B, with a capacity of 190,000 bbls a day, has been out of service since late July, when a leak spilled more than three-million litres into a river system in southern Michigan, while Line 6A, with a capacity of 670,000 bbls a day, was also down while repair work continued Tuesday.
Although the shutdown of the pipelines is creating difficulties for oilsands producers trying to ship their product south, George said that Suncor has not been forced to cut production because of the shutdown of the key pipeline, although he admitted, "We're very hopeful [the pipeline] will get back into service quickly."
Meanwhile, a senior executive of ConocoPhillips was also on the defensive, this time regarding the environmental ramifications of shale gas development. Speaking at a congress panel discussion yesterday, Kevin Meyers, the company's senior vice-president, exploration and production-Americas, said public concerns also have to be confronted by shale gas producers.
"Public perception is important because public perception will eventually lead to public policy," he said. "And it is incumbent on all of us to make sure we are having a debate that is based on facts, not on emotion or misinformed perception."
In a second keynote address, Gregory Boyce, chairman and chief executive officer of U.S. coal giant Peabody Energy Corp., said coal has an important role to play in meeting increasing global energy demand and helping reduce poverty in regions in which often more than half the population lacks adequate access to energy.
"Global coal use expanded nearly 50% in the last decade. The world has trillions of tonnes of coal, which make up 60% of our global energy resources. And we will use them all," Boyce told the conference.
He said efforts to combat climate change must be balanced with the need to eradicate "energy poverty."
"There is lots of discussion about reducing carbon emissions, but little said about providing energy for all and reducing poverty," Boyce said, adding that electricity use drives economic development, and expansion of coal-fuelled electricity generation mirrors the increase in developing countries' GDP, he said.
Boyce argued that too much focus had been placed on cutting GHG emissions, while over two billion people globally had no access to energy.
"I submit that the greatest crisis that we face in the 21st century is not the future environmental crisis predicted by computer models, but the human crisis today. For too long, too many have been focused on the wrong end game," said Boyce.
Technology is being developed that will result in new "green-generation" coal-fired electricity plants that have near-zero carbon emissions, Boyce said.
Coal production has grown faster than any other fuel source during the past 10 years while reserves dwarf those of oil and natural gas, he added, making the hydrocarbon the most logical choice to deploy as a large-scale energy source in developing countries. "It is the only sustainable fuel to meet needs of emerging economies."
This quote really stuck out to me.
"Public perception is important because public perception will eventually lead to public policy," he said. "And it is incumbent on all of us to make sure we are having a debate that is based on facts, not on emotion or misinformed perception."
I'd take environmental groups more seriously if they had legit numbers to back up their 'claims'. It really blows me away how some of the public is in believe that oil companies are laughing all the way to the bank while they count their cash, giving the middle-finger to Mother Nature. Sure, they do make a lot of money but consider the initial risk and cost of some of these projects now.
We do have a long way to go and it would be plain wrong to say we're perfectly clean by any means. Regardless, consider the amount of time and money invested in reclaimation, alternative materials and methods for efficient and cleaner drilling/mining...hard to ignore.
And what really boggles my mind is how mining operations out east aren't nearly as publicized as Alberta's.