Bingaman: Defense bill resolves Canadian oil sands issue

Nick Snow
Washington Editor

WASHINGTON, DC, June 12 -- The US Senate's Democratic energy leader does not expect a provision of the 2007 Energy Independence and Security Act (EISA) to restrict sales of oil produced from Canadian oil sands to US refiners, he told a Canadian-US business conference on June 11.

Jeff Bingaman (D-NM), who chairs the Senate Energy and Natural Resources Committee, said on May 22 the US House adopted a clarifying amendment offered by Rep. Dan Boren (D-Okla.) to the fiscal 2009 Department of Defense budget which establishes that the controversial Section 526 of EISA 2007 does not apply to already available fuels.

Section 526 bars federal agencies from buying alternative or synthetic fuels that produce more greenhouse gases than conventional fuels (OGJ Online, Apr. 29, 2007).

While he said he did not presume to speak for Rep. Henry Waxman (D-Calif.), who promoted the provision's addition to the 2007 energy bill, Bingaman said that he understood Waxman intended it to keep the federal government from using its substantial purchasing power to promote development of alternative fuels with more greenhouse gases than current conventional resources.

"Producing oil from oil sands is not a new technology," Bingaman observed, adding that he hopes the Senate will consider adopting a similar amendment as it considers its own DOD appropriations bill.

He said a broader discussion of oil sands' carbon footprint will be needed even though the Section 526 question could be resolved soon. "Canada's oil exports to the United States will increasingly require US exports of lighter hydrocarbons to Canada so heavier oil which is produced there can be diluted," Bingaman said.

'Abbreviated' debate
The Senate's global climate change debate a week earlier was "very abbreviated" because it was restricted to two procedural votes, he continued. Bingaman said that he was disappointed it did not go farther because a robust cap-and-trade program with emissions allowances would force the US industrial base to reconfigure its operations.

Democrats decided not to begin a fuller debate because they expected the Bush administration to veto any climate change bill they produced, he said. "One problem is that nearly half of Congress has signed pledges in granite, as part of a political ritual, not to increase taxes," he said during a breakfast address to the Canadian American Business Council's annual meeting.

The next administration and Congress have their best chance to make significant climate policy changes in their first 2 years, he indicated. "My hope is that the new president, whether it's Sen. [Barack] Obama or Sen. [John] McCain, will take ownership of this issue and propose something to Congress. That would provide a good starting point," Bingaman said.

Canada and the US face similar natural gas challenges because their easier onshore reserves have been developed and are rapidly declining, their governments are facing growing pressure from surface land owners in split-estate situations, and development of their major stranded gas resources will require major pipeline investments, he said.

Both countries also need to address the need for pipelines and other basic energy facilities, according to Bingaman. "Prices for constructing pipelines are rising around the world because of higher steel costs, particularly for specialty grades used over long distances and at greater depths," he said. The manufacturing base for specialized components needs to grow, and retiring energy professionals need to be replaced, he added.

Contact Nick Snow at nicks@pennwell.com.

Related Articles

PHMSA proposes pipeline accident notification regulations

07/02/2015 The US Pipeline and Hazardous Materials Safety Administration has proposed new federal oil and gas pipeline accident and notification regulations. ...

Quicksilver Canada gets LNG export approval

07/02/2015 Quicksilver Resources Canada Inc. has received approval from the National Energy Board of Canada to export 20 million tonnes/year of LNG from a pos...

FourPoint Energy to acquire Anadarko basin assets from Chesapeake

07/02/2015 FourPoint Energy LLC, a privately owned Denver company, plans to acquire oil and gas assets from Chesapeake Energy Corp. subsidiaries Chesapeake Ex...

Origin lets contract for Otway basin fields

07/02/2015 Origin Energy Ltd., Sydney, has let a $1.3 million (Aus.) contract to Wood Group Kenny for provision of a detailed engineering design for the onsho...

Puma Energy completes purchase of Murco’s UK refinery, terminals

07/02/2015 Singapore-based Puma Energy Group Pte. has completed its purchase of UK midstream and downstream assets from Murco Petroleum Ltd., a subsidiary of ...

BP to settle federal, state Deepwater Horizon claims for $18.7 billion

07/02/2015 BP Exploration & Production Inc. has agreed in principle to settle all federal and state claims arising from the 2010 Deepwater Horizon inciden...

MARKET WATCH: NYMEX oil prices plummet on crude inventory build, Iran deadline extension

07/02/2015 Oil prices plummeted more than $2/bbl July 1 to settle at a 2-month low on the New York market after a weekly government report showed the first ri...

API to issue recommended practice to address pipeline safety

07/01/2015 The American Petroleum Institute expects to issue a new recommended practice in another few weeks that addresses pipeline safety issues, but the tr...

Shell Midstream Partners takes interest in Poseidon oil pipeline

07/01/2015 Shell Midstream Partners LP has completed its acquisition of 36% equity interest in Poseidon Oil Pipeline Co. LLC from Equilon Enterprises LLC, a s...
White Papers

UAS Integration for Infrastructure: More than Just Flying

Oil and gas companies recognize the benefits that the use of drones or unmanned aerial systems (UAS) c...

Solutions to Financial Distress Resulting from a Weak Oil and Gas Price Environment

The oil and gas industry is in the midst of a prolonged worldwide downturn in commodity prices. While ...
Sponsored by

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by
Available Webcasts


The Resilient Oilfield in the Internet of Things World

When Tue, Sep 22, 2015

As we hear about the hype surrounding the Internet of Things, the oil and gas industry is questioning what is different than what is already being done. What is new?  Using sensors and connecting devices is nothing new to our mode of business and in many ways the industry exemplifies many principles of an industrial internet of things. How does the Internet of Things impact the oil and gas industry?

Prolific instrumentation and automation digitized the industry and has changed the approach to business models calling for a systems led approach.  Resilient Systems have the ability to adapt to changing circumstances while maintaining their central purpose.  A resilient system, such as Maximo, allows an asset intensive organization to leverage connected devices by merging real-time asset information with other critical asset information and using that information to create a more agile organization.  

Join this webcast, sponsored by IBM, to learn how about Internet of Things capabilities and resilient systems are impacting the landscape of the oil and gas industry.

register:WEBCAST



On Demand

Taking the Headache out of Fuel License and Exemption Certificates: How to Ensure Compliance

Tue, Aug 25, 2015

This webinar, brought to you by Avalara, will detail the challenges of tax document management, as well as recommend solutions for fuel suppliers. You will learn:

-    Why it’s critical to track business partner licenses and exemption documents
-    The four key business challenges of ensuring tax compliance through document management
-    Best practice business processes to minimize exposure to tax errors

register:WEBCAST


Driving Growth and Efficiency with Deep Insights into Operational Data

Wed, Aug 19, 2015

Capitalizing on today’s momentum in Oil & Gas requires operational excellence based on a clear view of what your business data is telling you. Which is why nearly half* of oil and gas companies have deployed SAP HANA or have it on their roadmap.

Join SAP and Red Hat to learn more about using data to drive process improvements and identify new opportunities with the SAP HANA platform running on Red Hat Enterprise Linux. This webinar will also show how your choice of infrastructure impacts the performance of core business applications and your ability to achieve data-driven insights quickly and reliably.

*48% use SAP, http://go.sap.com/solution/industry/oil-gas.html

register:WEBCAST


OGJ's Midyear Forecast 2015

Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected