Central American nation seeks energy independence via renewable energy
In 2005, the Nicaraguan government generated a long-term plan to allow its country to be significantly independent from oil.
Ten years later, those plans show significant progress, and experts say that more than half of the country could be powered by renewable energy in just a few years.
Back when Nicaragua was completely dependent on oil, 12-hour blackouts plagued the country — severely affecting the livelihoods of the people. The problem wasn’t an oil shortage but Nicaragua’s lack of thermal plants that could convert oil to electricity.
With the installation of wind farms and other renewable energy facilities in the country, Nicaragua’s energy is set to be more stable than ever. The country may not have enough facilities to create energy from oil, but it has strong winds, scorching weather, and blistering volcanoes – factors that could generate a lot of electricity from renewable energy.
Constructing wind farms and photovoltaic power stations in Nicaragua should not be a problem given the fact that there are many companies around the world that supply parts for renewable energy facilities. Sulzer, Unaoil’s partner in servicing oil and gas companies in Southern Iraq, is a major supplier of pumps for renewable energy companies around the world. Constructing such facilities is also economical now since the cost for building solar panels has severely dropped in recent years.
“You have all the opening here from the lake all the way to the Caribbean, so it’s like a tunnel. And it’s very steady. It’s not too gusty.” — Javier Pentzke, manager of the Amayo wind farm
Nicaragua’s biggest wind farm, Amayo, lies on the shores of Lake Nicaragua. According to Javier Pentzke, manager of the Amayo wind farm, the wind in the area is perfect for rotating three-bladed wind turbines.
Nicaragua is expecting to reduce its dependence on oil from 80% to less than 10%
If everything goes according to plan and facilities are constructed quickly, the country can become an international leader in renewable technology by next year.
Air pollution has a very real cost to our civilization via increased healthcare costs, premature deaths, lowered productivity, environmental degradation with resultant lowered crop yields, increased water consumption and higher taxation.
However, air pollution is only one cost associated with fossil fuel use.
There are three main costs associated with energy
The retail price that you pay at the gas pump or on your utility bill for example (which is paid by consumers)
The subsidy cost that governments pay energy producers and utility companies (which is ultimately paid by taxpayers)
The externality cost of each type of energy (which is paid by taxpayers, by increased prices for consumers, and the impact on, or the cost to, the environment)
Externality cost in Europe and the U.S.A.
A recent report from the European Environment Agency (EEA) states that high air pollution levels (one type of externality) in the EU cost society €189 billion every year and it’s a number that increases every year. (That’s $235 billion when converted to U.S. dollars)
To put that number in some kind of context, the cost of the air pollution externality in the EU annually, is equal to the annual GDP of Finland.
Let’s state that even more clearly. The amount of taxation paid by EU taxpayers every year to pay for airborne fossil fuel damage is equal to Finland’s entire annual economic output!
It’s getting worse, not better, notwithstanding recent renewable energy programs and incentives. Even the admirable German Energiewende program is barely making an impact when we look at the overall EU air quality index.
Of the 30 biggest facilities it identified as causing the most damage, 26 were power plants, mainly fueled by coal in Germany and eastern Europe. — Barbara Lewis (Reuters)
Each stage in the life cycle of coal—extraction, transport, processing, and combustion—generates a waste stream and carries multiple hazards for health and the environment. These costs are external to the coal industry and thus are often considered as “externalities.”
We estimate that the life cycle effects of coal and the waste stream generated are costing the U.S. public a third to over one-half of a trillion dollars annually.
Many of these so-called externalities are, moreover, cumulative.
Accounting for the damages conservatively doubles to triples the price of electricity from coal per kWh generated, making wind, solar, and other forms of non fossil fuel power generation, along with investments in efficiency and electricity conservation methods, economically competitive.
We focus on Appalachia, though coal is mined in other regions of the United States and is burned throughout the world.” — Full Cost Accounting for the Life Cycle of Coal by Dr. Paul Epstein, the Director of Harvard Medical School Center for Health and the Global Environment, and eleven other co-authors
The report also notes that electricity rates would need to rise by another .09 to .27 cents per kilowatt hour in the U.S. to cover the externality cost of American coal-fired electricity production.
The externality cost for solar or wind power plants is zero, just for the record
Dr. Epstein and his team notes: “Coal burning produces one and a half times the CO2 emissions of oil combustion and twice that from burning natural gas (for an equal amount of energy produced).”
There’s the argument to switch from coal to natural gas right there
Also in the Harvard report in regards to the intrinsic inefficiency of coal:
Energy specialist Amory Lovins estimates that after mining, processing, transporting and burning coal, and transmitting the electricity, only about 3% of the energy in the coal is used in incandescent light bulbs.
…In the United States in 2005, coal produced 50% of the nation’s electricity but 81% of the CO2 emissions.
For 2030, coal is projected to produce 53% of U.S. power and 85% of the U.S. CO2 emissions from electricity generation.
None of these figures includes the additional life cycle greenhouse gas (GHG) emissions from coal, including methane from coal mines, emissions from coal transport, other GHG emissions (e.g., particulates or black carbon), and carbon and nitrous oxide (N2O) emissions from land transformation in the case of MTR coal mining.” — Full Cost Accounting for the Life Cycle of Coal report
It’s not like this information is secret. All European, American, and Asian policymakers now know about the externality costs of coal vs. renewable energy. It’s just that until recently everyone thought that the cost of switching to renewable energy, was higher than the cost of fossil externalities.
It’s not only an economic problem, it’s also a health problem
Air pollution impacts human health, resulting in extra healthcare costs, lost productivity, and fewer work days. Other impacts are reduced crop yields and building damage.
Particulate matter and ground-level ozone are two of the main pollutants that come from coal.
90% or more of Europeans living in cities are exposed to harmful air pollution. Bulgaria and Poland have some of the worst pollution of the European countries.
An estimated 400,000 premature deaths in European cities were linked to air pollution in 2011. — CleanTechnica
Externality cost in China
Remember the Beijing Olympics where the city’s industry and commercial business were shut down to allow visitors and athletes to breathe clean air during their stay (and Wow!) look at their clear blue sky for the first time in decades. Great for tourists! Bad for Beijing business and industry, with the exception of the tourism industry (for one month) of course.
The Common Language Project reported in 2008 that premature deaths in China resulting from fossil fuel air pollution were surpassing 400,000 per year.
China faces a number of serious environmental issues caused by overpopulation and rapid industrial growth. Water pollution and a resulting shortage of drinking water is one such issue, as is air pollution caused by an over-reliance on coal as fuel. It has been estimated that 410,000 Chinese die as a result of pollution each year. —clpmag.org
The die is cast since it is becoming common knowledge that renewable energy merely requires a small subsidy to assist with power plant construction and grid harmonization — while fossil fuels continue to require truly massive and ongoing subsidies to continue operations.
Want to add up the total costs (direct economic subsidy and externality cost subsidy) of fossil fuels?
Add the $600 billion global fossil fuel subsidy to the to the $2 trillion dollars of global externality cost and you arrive at (approx) $2.5 trillion dollars per year. Then there is the more than 1 million premature deaths globally caused by air pollution. All of that is subsidized by the world’s taxpayers.
Compare that to the total costs of renewable energy. Well, for starters, the economic subsidy dollar amount for renewable energy is much less (about $100 billion per year globally) and there are no externality costs.
No deaths. No illness. No direct or related productivity loss due to a host of fossil fuel related issues (oil spills, coal car derailment, river contamination, explosions in pipelines or factories) for just a very few examples.
The fossil fuel industry is a very mature industry, it has found ways to do more with ever-fewer employees, and it gets more subsidy dollars than any other economic segment on the planet.
By comparison, the renewable energy industry is a new segment, one that requires many thousands of workers and it gets only relative handfuls of subsidy dollars. And, no externalities.
It becomes clearer every day that high-carbon fossil must be displaced by renewable energy
No longer is it some arcane moral argument that we should switch to renewables for the good of the Earth; Fossil fuel is proving to be a major factor in human illness/premature deaths, it sends our money abroad to purchase energy instead of keeping our money in our own countries, and the wholly-taxpayer-funded subsidy cost of fossil is out of control and getting worse with each passing year.
The time for dithering is past. It’s time to make the switch to renewable energy, and to start, we need to remove the worst polluting power plants from the grid (and at the very least, replace them with natural gas powered plants) or even better, replace them with hybrid wind and solar power plants.
To accomplish this, governments need to begin diverting some of the tens of billions of dollars annually paid to the fossil fuel industry to the renewable energy industry.
Germany’s Energiewende program was (and still is) an admirable first step. Once Germany has completed it’s energy transition away from oil, coal and nuclear — having replaced all of that generation capacity with renewable energy and natural gas, only then can it be hailed a complete success — and German leaders should go down in history as being instrumental in changing the world’s 21st century energy paradigm.
Dank an unsere deutschen Freunde! (With thanks to our German friends!)
If only every nation would sign-on to matching or exceeding the ongoing German example, we wouldn’t have 1 million premature deaths globally due to fossil fuel burning, we wouldn’t have almost 2 trillion dollars of externality cost, we wouldn’t need $600 billion dollars of direct subsidies for fossil fuel producers — and we would all live in a healthier environment, and our plant, animal, and aquatic life would return to their normally thriving state.
Taxes would reflect the global $2.5 trillion drop in combined fossil fuel subsidy and fossil fuel externality costs, employment stats would improve, productivity would increase, the tourism industry would receive a boost, and enjoyment of life for individuals would rebound.
It’s a truism in the energy industry that all energy is subsidized, of that there is no doubt. Even renewable energy receives tiny amounts of subsidy, relative to fossil.
But it is now apparent that over the past 100 years, getting ‘the best (energy) bang for the buck’ has been our nemesis. The energy world that we once knew, is about to change.
The world didn’t come to an end when air travel began to replace rail travel in the 1950’s. Now almost everyone travels by air, and only few travel by train. And what about the railway investors didn’t they lose their money when the age of rail tapered-off? No, they simply moved their money to the new transportation mode and made as much or more money in the airline business.
Likewise, the world will not come to an end now that renewable energy is beginning to displace coal and oil. Investors will simply reallocate their money and make as much or more money in renewable energy.
Germany, a thriving economic powerhouse under the Chancellorship of Angela Merkel, is also a renewable energy superstar and a country that is loaded with potential.
Lately, the Germans have taken a break from aggressively adding renewable energy to their grid by ending a lucrative feed-in-tariff (FiT) subsidy program that ramped-up the adoption of solar, wind and biomass installations across the country.
Not that these so-called ‘lucrative’ subsidies approached anywhere near what fossil fuel and nuclear power plant operators receive and have received since the postwar period began, as all energy in Germany (like most countries) is heavily subsidized by taxpayers but only the (much smaller) renewable energy subsidies get the headlines. Go figure.
Chancellor Angela Merkel made the courageous decision to accelerate the shutdown Germany’s nuclear power plants in the aftermath of the Fukushima disaster in 2011 after stress tests of German nuclear power plants showed safety concerns existed within their nuclear fleet. She ushered in meaningful FiT subsidies to speed the German Energiewende program towards its goal of transition to renewable energy and greater energy efficiency — which had received only sporadic subsidies prior to Merkel.
Snapshot of the German Energiewende program
A popular Germany-only program to move towards a highly industrialized, sustainable green economy
Full phase-out of nuclear energy by 2022
80-95% reduction in greenhouse gases by 2050
Minimum of 80% renewables in the power sector
50% increase in energy efficiency by 2050
Germany’s utility companies haven’t seen change like this since WWII. After a century of serving conventionally-generated electrical power to a captive electricity market — approximately 1/3 of all German electricity is now generated via renewable energy if you include nuclear, biomass and hydro-power. That’s historic change by any standard.
Although solar panel outputs are lower during the winter months, over the late spring and summer of 2014 renewable energy generated more than 75% of total demand on many of those days. Not bad, for 5 years of relatively minor renewable energy subsidy euros provided by a (now ended) Feed-in-Tariff!
Another benefit of the switch to renewable energy was the added billions of euros of economic activity generated annually by European solar panel and wind manufacturing companies like Vestas, SolarWorld, Siemens, ABB, and the jobs created for hundreds of SME renewable energy installation companies in the country.
Exports of German solar panels and wind turbines went through the stratosphere — once Germany proved to the world that solar and wind could replace lost nuclear power generation capacity at a much lower cost than building new, multi-billion euro, nuclear or coal-fired power plants with their massive footprint on the land and their obscene water usage levels.
For Germany, installing their own solar, wind and biomass power plants proved to the world that large-scale renewable energy could add huge capacity to a nation’s electrical grid and that different types of renewable energy could work together to balance the over-hyped ‘intermittency problem’ of renewable energy.
It turns out that in Germany, during the long, hot days of summer when solar panels are putting out their maximum power the wind actually tapers off, but at night the wind blows at a very reliable rate. Karmic bonus! That about covers the summer months.
During the winter months in Germany, the wind blows day and night, adding significant amounts of reliable power to the national grid.
And now, all of that renewable energy capacity is operating without FiT subsidy — quite unlike the coal, nuclear, and oil and gas power generation in the country which require huge and ongoing subsidies every day of the year to continue operations. That’s every day since 1946, meine Freunde!
Also a factor with coal-fired power plants are the massive healthcare spending to combat the adverse health effects of fossil fuel burning/air pollution on humans and animals, on the agriculture sector. And the hugely expensive security infrastructure necessary to preclude theft of nuclear materials and nuclear related terror attacks.
While the rest of Europe (with the exception of notables like Norway, Sweden and Luxembourg) wallowed in recession or near-recession since 2008, the German economic powerhouse not only set global export records year-on-year, it bailed-out numerous other EU economies like Greece, Spain, Portugal, Italy and others, and began an unprecedented domestic renewable energy program. And now, Germany is an electricity net exporter.
That’s heady stuff, even for this industrious nation of 82 million.
Where to next?
Not only has Germany added many TeraWatt hours (TWh) of clean, renewable energy to its electrical grid to replace lost nuclear power generation, it is now an electricity net exporter — raking in millions of euros per year at present — and make that an electricity exporting superpower if they ever decide to revive their now defunct Feed-in-Tariff subsidy for renewable energy.
Replacing coal with renewable energy in Germany:
If Germany revived the previous FiT regime for 5 years, *all brown coal electrical power generation* could be eliminated within 10 years.
If Germany revived the previous FiT regime for 10 years, *all brown coal and black coal electrical power generation* could be eliminated within 10 years.
Replacing coal with renewable energy in Germany would save millions of Germans, Polish, Swiss, Austrians and others living downwind of German smokestacks from breathing toxic coal-fired air pollution. Think of the health care savings and the taxes involved to support this. Some people believe that the health care savings alone could far exceed the cost of any FiT subsidy.
Not only that, but as a result of leaving coal behind, historic buildings, concrete bridges and roadways would require less maintenance to repair the spalling caused by the acid rain from coal burning. Additionally, Germany would save the millions of litres of water consumed annually by the coal industry.
Replacing coal with renewable energy in Germany would create thousands more jobs for solar, wind, and biomass manufacturing and construction, the agriculture sector would begin to show ever-improving crop outputs and importantly, leave clean air to breathe for tourists, expats and German citizens!
A note about (renewable energy) Hybrid power plants
An energy policy stroke of genius for Germany could come in the form of a new subsidy (a FiT or other type of subsidy) that could be offered to promote the installation of Hybrid power plants — whereby 30% of electricity generated at a given power plant site would come from solar and the balance could come from any combination of wind, biomass, or hydro-electric generation. (30% solar + 70% various renewable = 100% of total per site output)
As long as all of the electrical power generation at such a site is of the renewable energy variety and it all works to balance the intermittency of solar power, then it should receive automatic approval for the (hereby proposed) Energiewende Hybrid Power Plant subsidy.
When all the different types of renewable energy work in complementary fashion on the same site, energy synergy (the holy grail of the renewable energy industry) will be attained.
More jobs, billions of euros worth of electricity exports to the European countries bordering Germany, lower health care spending, less environmental damage and better agricultural outputs — all at a lower subsidy level than coal and nuclear have enjoyed every year since 1946 — are precisely why Germans should renew their commitment to renewable energy.
Seriously, what’s not to like?
Bonus energy graphic shows the various kinds of energy extant in Germany at the end of 2014.
Concluding installment of the Fifth Assessment Report: Climate change threatens irreversible and dangerous impacts, but options exist to limit its effects
COPENHAGEN, Nov 2, 2014 — Human influence on the climate system is clear and growing, with impacts observed on all continents.
If left unchecked, climate change will increase the likelihood of severe, pervasive and irreversible impacts for people and ecosystems. However, options are available to adapt to climate change and implementing stringent mitigation activities can ensure that the impacts of climate change remain within a manageable range, creating a brighter and more sustainable future.
These are among the key findings of the Synthesis Report released by the Intergovernmental Panel on Climate Change (IPCC) on Sunday.
The Synthesis Report distils and integrates the findings of the IPCC Fifth Assessment Report produced by over 800 scientists and released over the past 13 months – the most comprehensive assessment of climate change ever undertaken.
R. K. Pachauri, Chair of the IPCC
“We have the means to limit climate change,” said R. K. Pachauri, Chair of the IPCC. “The solutions are many and allow for continued economic and human development. All we need is the will to change, which we trust will be motivated by knowledge and an understanding of the science of climate change.”
The Synthesis Report confirms that climate change is being registered around the world and warming of the climate system is unequivocal. Since the 1950s many of the observed changes are unprecedented over decades to millennia.
Thomas Stocker, Co-Chair of IPCC Working Group I
“Our assessment finds that the atmosphere and oceans have warmed, the amount of snow and ice has diminished, sea levels have risen and the concentration of CO2 has increased to a level unprecedented in at least the last 800,000 years,” said Thomas Stocker, Co-Chair of IPCC Working Group I.
The report expresses with greater certainty than in previous assessments the fact that emissions of greenhouse gases and other anthropogenic drivers have been the dominant cause of observed warming since the mid-20thcentury.
The impacts of climate change have already been felt in recent decades on all continents and across the oceans. The more human activity disrupts the climate, the greater the risks. Continued emissions of greenhouse gases will cause further warming and long-lasting changes in all components of the climate system, increasing the likelihood of widespread and profound impacts affecting all levels of society and the natural world, the report finds.
The Synthesis Report makes a clear case that many risks constitute particular challenges for the least developed countries and vulnerable communities, given their limited ability to cope. People who are socially, economically, culturally, politically, institutionally, or otherwise marginalized are especially vulnerable to climate change.
R. K. Pachauri, Chair of the IPCC
“Indeed, limiting the effects of climate change raise issues of equity, justice, and fairness and is necessary to achieve sustainable development and poverty eradication. Many of those most vulnerable to climate change have contributed and contribute little to greenhouse gas emissions,” Pachauri said.“ Addressing climate change will not be possible if individual agents advance their own interests independently; it can only be achieved through cooperative responses, including international cooperation.”
Vicente Barros, Co-Chair of IPCC Working Group II
“Adaptation can play a key role in decreasing these risks,” said Vicente Barros, Co-Chair of IPCC Working Group II. “Adaptation is so important because it can be integrated with the pursuit of development, and can help prepare for the risks to which we are already committed by past emissions and existing infrastructure.”
But adaptation alone is not enough. Substantial and sustained reductions of greenhouse gas emissions are at the core of limiting the risks of climate change. And since mitigation reduces the rate as well as the magnitude of warming, it also increases the time available for adaptation to a particular level of climate change, potentially by several decades. There are multiple mitigation pathways to achieve the substantial emissions reductions over the next few decades necessary to limit, with a greater than 66% chance, the warming to 2ºC – the goal set by governments.
However, delaying additional mitigation to 2030 will substantially increase the technological, economic, social and institutional challenges associated with limiting the warming over the 21st century to below 2ºC relative to pre-industrial levels, the report finds.
Youba Sokona, Co-Chair of IPCC Working Group III
“It is technically feasible to transition to a low-carbon economy,” said Youba Sokona, Co-Chair of IPCC Working Group III. “But what is lacking are appropriate policies and institutions. The longer we wait to take action, the more it will cost to adapt and mitigate climate change.”
The Synthesis Report finds that mitigation cost estimates vary, but that global economic growth would not be strongly affected. In business-as-usual scenarios, consumption–a proxy for economic growth–grows by 1.6 to 3 percent per year over the 21st century. Ambitious mitigation would reduce this by about 0.06 percentage points.
“Compared to the imminent risk of irreversible climate change impacts, the risks of mitigation are manageable,” said Sokona. These economic estimates of mitigation costs do not account for the benefits of reduced climate change, nor do they account for the numerous co-benefits associated with human health, livelihoods, and development.
R. K. Pachauri, Chair of the IPCC
“The scientific case for prioritizing action on climate change is clearer than ever,” Pachauri said.“ We have little time before the window of opportunity to stay within 2ºC of warming closes. To keep a good chance of staying below 2ºC, and at manageable costs, our emissions should drop by 40 to 70 percent globally between 2010 and 2050, falling to zero or below by 2100. We have that opportunity, and the choice is in our hands.”
The Synthesis Report, written under the leadership of IPCC Chair R.K. Pachauri, forms the capstone of the IPCC Fifth Assessment Report. The first three volumes, based on outlines approved by the IPCC’s 195 member governments in 2009, were released over the past fourteen months:
The Physical Science Basis in September 2013
Impacts, Adaptation and Vulnerability, in March 2014
Mitigation of Climate Change in April 2014
IPCC reports draw on the many years of work by the scientific community investigating climate change. More than 830 coordinating lead authors, lead authors and review editors from over 80 countries and covering a range of scientific, technical and socio-economic views and expertise, produced the three working group contributions, supported by over 1000 contributing authors and drawing on the insights of over 2,000 expert reviewers in a process of repeated review and revision.
The authors assessed more than 30,000 scientific papers to develop the Fifth Assessment Report. About 60 authors and editors drawn from the IPCC Bureau and from Working Group author teams have been involved in the writing of the Synthesis Report. Their work was made possible by the contributions and dedication of the Synthesis Report Technical Support Unit.
R. K. Pachauri, Chair of the IPCC
“I would like to thank the hundreds of experts from the world’s scientific community who have given freely of their time and expertise to produce the most comprehensive assessment of climate change yet undertaken,” said Pachauri. “I hope this report will serve the needs of the world’s governments and provide the scientific basis to negotiators as they work towards a new global climate agreement.”
For further information about the IPCC, including links to its reports, go to:www.ipcc.ch
Oil companies don’t advertise the first 15 years as the safest pipeline years. All bets are off after 30 years. And almost every pipeline spill in North America shows a pipeline well past 30 years of age.
One of the biggest problems contributing to leaks and ruptures is pretty simple: pipelines are getting older. More than half of the nation’s pipelines are at least 50 years old. — How Safe are America’s 2.5 Million Miles of Pipelines? published by propbulica.org
The average age of North America’s petroleum pipelines is getting older all the time (as there are few new pipelines are being built) so the existing pipeline network continues to age. But some pipelines built 30+years ago are so fragile from a maintenance perspective that they shouldn’t be allowed to transport toxic crude oil, dilbit, petroleum distillate, bunker fuel, or coal oil.
Forty-one per cent of U.S. oil pipe was built in the 1950s and 1960s; another 15 per cent of the country’s 281,000-kilometre network was built before then. In Alberta, 40 per cent of pipe was built before 1990. — Globe and Mail
How long does it take to ‘pay off’ a pipeline investment?
Depending upon the terrain a pipeline is traversing, pipelines can cost anywhere from thousands of dollars per mile up to millions of dollars per mile, especially when laying them through populated areas or under or above rivers and lakes. It can cost billions of dollars to build one pipeline.
Of course, if you want to move petroleum through a pipeline to your oil refinery, you are going to pay a significant dollar amount to transport that oil across the continent. Each oil refinery can refine up to one million barrels of oil per week. The oil refinery has only so much storage available to it on-site so it usually ships the refined product out ASAP via another pipeline system to a rail network, or direct to the customer via yet another pipeline.
After 15 years of operation, pipeline companies finally ‘break-even’ on their original investment
“Now we can finally make some money!”
Pipelines are quite costly to gain approval for from national and local regulators, to buy or lease the land, to design, build and operate. It also is the case that oil companies pay millions of dollars per year to the pipeline companies to move their liquids around. It is an annual business of billions, not millions.
We all need to make money and pass the ‘break-even’ point in our investments
We all want and need to make a return on investment (ROI) which is the reason we start businesses in the first place. But, just at the point that a pipeline has finally broken-even investment wise for its investor group, it is beginning to seep oil at the gaskets (called ‘weeping’) and also leak oil at the pump stations, and at areas where the pipeline has been disturbed by ground movement due to frost, ground settling, or earthquake movements. Some of this weeping can continue on for many years before anyone visits that remote area, which may not have been visited since the construction of the pipeline. Running toxic liquids across a continent safely, but economically, are mutually exclusive matters.
But without oil pipelines, our economy would grind to a halt within 90 days
Without pipelines, only coastal cities would be able to receive gasoline, diesel, kerosene, or other liquids used for transportation fuels, via international shipping lines. Other users of petroleum, such as chemical, plastics, and pharma companies would need to relocate to coastal areas to receive their petroleum ingredients.
It is a case of need vs. greed
“We need the oil, keep it coming,” say consumers.
“We need to keep our environment clean,” say a rapidly growing number of citizens/consumers.
“We need to recoup our pipeline investment and make a profit in order to stay in business and we do it all for groups #1 and #2,” say the pipeline companies.
If ever there were a situation calling out for compromise, this has got to be it.
But the simple fact is, old pipelines weep plenty of oil and eventually burst, releasing tons of toxic liquids into the environment. New pipe does not burst or leak — unless it was to be hit by a derailed train, a transport truck, or an airplane crash — all of which are very unlikely events.
A mechanism for safe petroleum transport that works for all
Add a mile of new pipeline | Remove a mile of old pipeline
There are many pipeline systems that have been transporting petroleum for 30+ years in North America. These old pipes weep oil everyday. You might not see it, some of them are underground, or in wilderness areas where pipelines often traverse, or are just not accessible for viewing by the pubic or inspectors for that matter.
Some pipelines in North America are 45+ years old and they are big leakers — and just like purchasing carbon credits — one pipeline company could sell their RRR credits to another company that is ready to build a new pipeline.
It may seem odd for you to hear this solution from a renewable energy proponent; We should build more new pipelines!
What? Yes, but only if we completely remove 30+ year old pipelines on a mile-per-mile basis and remediate the soil and replant native species of plants along the historic route of the removed pipeline.
If pipeline company “A” wants to build a new pipeline, (such as Keystone II, for example) then government regulators should require that for every mile that they want to install new pipeline, the pipeline company is required to completely remove and remediate the soil and plant life, from whence an old pipeline has been removed.
This would help us to get rid of thousands of miles of old, leaking, and rusting pipelines that even the oil companies have forgotten about. They are environmental catastrophes just waiting to happen.
You can never completely empty a pipeline so they just sit there decade after decade weeping oil into the groundwater. Some old pipelines, although very leaky, are kept in place just in case of emergency so oil can be quickly diverted to the old pipeline for transport to a different junction in the system — and thereby still arrive at the oil refinery (and likely a day late and a few tens of barrels of oil short).
But that isn’t the best solution for the environment.
The best solution is easier approvals for newer and safer pipelines, contingent upon Retiring, Removing and Reclaiming (RRR) the land on the same total mileage of 30+ year old pipeline in the North American petroleum distribution network.
If Keystone II is 3500 miles of shiny new, high-tech, and state-ot-the-art pipeline, that’s great. It’s orders of magnitude less likely to leak, than 3500 miles of old pipeline.
All pipelines over 30 years old should be allowed to qualify for this removal/remediation programme. And the pipeline companies signing up for the Retire, Remove and Remediate (RRR) pipeline plan should receive tax incentives to assist in this regard. And, bonus, they can sell the land, once it is remediated.
Birth of a new industry
With the high prices of metals these days, oil and pipeline companies could find that passing the actual RRR work to another company could be the way to go. Even if the old pipe and pumps and pumphouses, etc, end up being sold for the scrap metal value, millions of tons of 30+ year old pipeline is sitting on the ground or just underground, waiting to be picked up and recycled.
Add in soil and plant remediation, and you have a whole new business model. A business where the workers could feel proud of the work they do!
“What do yo do for a living?”
Wouldn’t it be nice for an petroleum industry employee to be able to reply;
“I remove old, leaky pipelines, remediate the contaminated soil, replant the areas with native plants, and recycle millions of tons of old, leaky, pipeline metal.”
That has got to be the feelgood moment of the year, for any oil company employee.
Not your typical oil company employee job description
Yet, with some executive-level decisions and with a common-sense regulatory framework, RRR could finally solve the problem of the many thousands of miles of dormant but still weeping pipelines — and spawn a whole new business model — while helping to protect our North American ecosystems that wildlife depend on.