Environmental Impact Statement



Environmental Impact Statement

Introduction

The proposed Keystone XL pipeline has received considerable attention in recent months. If constructed, the pipeline would transport crude oil (e.g., synthetic crude oil or diluted bitumen) derived from oil sands resources in Alberta, Canada to destinations in the United States and ultimately the international market. Policymakers continue to debate various issues associated with the proposed pipeline. Although some groups have opposed previous oil pipelines—Alberta Clipper and the Keystone mainline, both of which are operating—opposition to the Keystone XL proposal has generated substantially more interest among environmental stakeholders.

The highly controversial, and much disputed issues surrounding the Keystone XL crude oil pipeline project have been under the scrutiny of American politics in recent months. A debate has ensued around national calls for the construction of infrastructure that would transport a crude oil alternative from Canada to the United States, and has rapidly gained increased exposure. This exposure can be attributed to a number of factors, but in large part rising gasoline prices and political pressures are the driving factors. Increased demand for more reliable and stable supplies of crude oil in the United States has been driven by an ailing supply of traditional heavy oil. TransCanada Corporation is a Canadian based energy company which develops and operates energy infrastructure throughout North America. The corporation finds itself at the focal point of the oil sands debate. The transnational corporation has applied for a permit to carry out a $7 billion project by the name of Keystone XL, which would allow TransCanada to construct and manage an oil transport pipeline between the United States-Canada border. The pipeline would transport crude oil produced from oil sands in Canada to oil refineries in the Texas Gulf Coast. Since the pipeline would cross international borders, the project requires the approval of the State Department in accord with Executive Order 13337. It is over this crucial point that much of the discussion has been centered. Time Magazine has dubbed oil sands “Canada's greatest buried energy treasure” (“What is Oil Sands?”).

Discussion

Oil sands are naturally occurring deposits of mixtures of water, bitumen, sand, clay and other minerals, which combine to create an extremely viscous oil. The sand particles have become coated with a thick layer of oil and water. After millions of years of exposure to bacteria, the mixture becomes incredibly thick. The crude must be treated prior to processing in order` to produce usable fuels, such as gasoline and diesel fuel. The World Energy Council reported that there are 598 natural bitumen deposits in 23 countries, with the largest deposits in Canada, Kazakhstan and Russia. The global natural bitumen reserve is estimated to be 249.67 billion barrels, of which, 176.8 billion barrels (approximately 70.8%) are in Canada. Oil sands were first discovered in the 1700s but were unable to be extracted. The Energy Research Conservation Board (ERCB) reported, “The Geological Survey of Canada began exploring the oil sands in the late 19th century and was the first to successfully separate bitumen from the ...