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Garfield Marks; “Oil-by-Seaway” proposal still draws interest.

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The proposal to by-pass Quebec in shipping oil to refineries in New Brunswick via Thunder Bay then shipping through the St. Lawrence Seaway still has legs.

Nov 9 2019, Comments by D.B. Chalcroft on the

PROPOSAL TO SHIP OIL TO EASTERN CANADA VIA ST. LAWRENCE SEAWAY by Garfield Marks

Garfield Marks published his “Oil-by-Seaway” and it has subsequently been covered in the CBC media and more recently on CHQR 770 radio.

The Garfield Marks “Oil-by-Seaway” Proposal

Concept – To replace the eastern half (about 2600 km) of the proposed Energy East Pipeline with tanker shipping from Thunder Bay via the Great Lakes and the St. Lawrence Seaway to St. John, New Brunswick.

The Energy East pipeline proposed by TC Energy in 2014, would have converted about 3000 km of the existing natural gas pipeline from Hardisty, Alberta to the Ontario-Quebec border, to diluted bitumen transportation; and would have built 1600 kms of new pipeline from the Ontario-Quebec border to St. John, New Brunswick. The capacity of the pipeline was to have been 1.1 million barrels (200,000 tonnes) of crude oil per day, was estimated to cost $12 billion, and at 4600 km would have been the longest pipeline in North America. TC Energy subsequently cancelled the project in October 2017, citing regulatory rule changes. In addition the Government of Quebec has stated that there is no social license for the Energy East pipeline through Quebec.

“Oil-by-Seaway” Tanker Shipping Option

The “Oil-by-Seaway” proposal would include converting 2000 km of the existing TC Energy Natural Gas pipeline from Hardisty, Ab, to Thunder Bay to carry diluted bitumen, and creating a new oil tanker shipping system from Thunder Bay through the existing St Lawrence Seaway and by ocean to the major Irving oil refinery at St. John , NB.

The existing St. Lawrence Seaway has more available shipping capacity than is presently being utilized. During the 1970s and 1980s, cargo shipments from Thunder Bay, for example, averaged about 20,000,000 metric tonnes per year with between 850 and 1470 vessels per year leaving the port. Since 2009 cargo shipments from Thunder Bay have averaged only about 8,000,000 tonnes/year on some 400 vessels per year.

The existing locks in the St. Lawrence Seaway at the Welland Canal and near Montreal, impose length, width, and draft, size restrictions (maximums of 225.5 m long by 23.8 m wide and draft of 8 m) on the vessels that can use the Great Lakes shipping system. The maximum size of bulk cargo that can be shipped through the system is about 29,000 tonnes per Seaway-capable ship – these ships are known as “lakers”.

The St Lawrence Seaway averages about 275 days of navigation per year – the other 90 days being closed to shipping due to winter conditions.

In order for “Oil-by-Seaway” shipping to deliver the 1,100,000 BPD (200,000 tonnes per day) of oil to the St John, NB terminal as envisaged by Energy East, in a shipping season of 275 days, would require the daily shipping deliveries to be 265,000 tonnes/day during the navigation season. This would require close to 10 “laker-tankers” per day to unload at St. John, NB. Assuming the turn-around time for a “laker-tanker” from Thunder Bay to St. John to Thunder Bay is about 16 days including 2 days for loading and unloading – means that a fleet of about 160 “laker-tankers” would be required to achieve this delivery commitment, plus storage facilities at St John of about 100,000,000 barrels.

The Welland Canal currently has about 1500-1800 vessel transits each way per year, or on average 5-7 transits per day each way. However in 1960 the total number of vessel transits was as high as 4500 each way (an average of 16 /day) although vessels were smaller carrying an average of only 3,400 tonnes of cargo. The Oil-by-Seaway proposal would add 2700 passages per year bringing the total to around 4500 per year or 16 per day each way, very similar to the 1960 record rate albeit with larger average vessel sizes.

Ballpark Cost Estimate for 160 Laker-Tankers

What would it cost to create a fleet of say 160 “Laker-tankers”? As a very rough comparison, the three Newfoundland Off-shore Shuttle Tankers that pickup roughly 230,000 BPD (47,000 tonne/day) of oil production from the five producing platforms on the Grand Banks, cost a reported $375,000,000 (ie $125M/ship)in 2016, and have a deadweight of 148,000 tonnes and gross tonnage of 85,000 tonnes each, meaning each ship can carry up to about 60,000 tonnes of cargo (oil) . These three Shuttle Tankers deliver the 47,000 tonne/day of Grand Bank oil production to the trans-shipment terminal at Whiffen Head, NL with an average turn-around time of 3-5 days . A rough cost estimate for the Laker-Tankers can be obtained by taking $125M X 29,000 t/ 60,000 t = $60 million. Therefore the cost of one “Laker-tanker” with 29,000 tonne capacity is estimated to be in the order of $60 million, and a fleet of 160 Laker-tankers would be in the ballpark of $10 billion.

Discussion

The St. Lawrence Seaway is currently handling 20-25 million tonnes of cargo per year through the Welland Canal in the Downbound direction, ie towards the east, with total transits of 1400 – 1900 per year. Oil-by-Seaway to equal the Energy East proposal of 200,000 tonnes per day would add 73,000,000 tonnes/yr. to the Downbound traffic. This is a significant increase to nearly 100,000,000 tonnes/year and 16 vessel transits per day each way, through the Seaway System. It would appear that the present Seaway infrastructure may be able to accommodate this magnitude of increase without major upgrades, because it doesn’t exceed the historical highs in vessel transits which occurred in the 1960s. This would need to be confirmed with the St. Lawrence Seaway Management Corporation.

The Oil-by-Seaway proposal would require a fleet of 160 or so “Laker-Tankers” which most likely don’t currently exist, and which would cost in the order of $10 billion . This concept would also require the creation of about 100,000,000 bbl. of incremental oil storage capacity at St. John, NB, that probably wasn’t part of the Energy East proposal, to cover the 90 days each year when the Seaway is closed.

Utilizing the existing Seaway Infrastructure to transport oil by tanker would reverse a long trend of declining commodity traffic through the Seaway system. This scheme could create the impetus to update and modernize Seaway facilities, and could also reinvigorate the communities along the Seaway, with substantially more economic activity in their midst.

Fabricating 160 Laker-Tankers could provide a significant workload for Canada’s ship-building industry, perhaps including the Davie Shipyard in Quebec, and the Irving shipyard in Halifax.

There are undoubtedly many other technical, social, environmental, and regulatory issues to be identified and considered, as well as whether this concept is commercially viable.

Preliminary Conclusion

On the surface, the Garfield Marks “Oil-by-Seaway” proposal seems to have sufficient merit to warrant a more thorough analysis than presented herein.

 

Comments by: David B. Chalcroft, P. Eng.

Previously published;

 

We have not been able to run our bitumen through a pipeline to a refinery in New Brunswick. There has been resistance in parts of Ontario and in Quebec. What if we came up with another plan. Would we consider it? There will be road blocks, but not insurmountable, would we consider it?

Yes how about Thunder Bay?

Thunder Bay, Ontario, the largest Canadian port of the St. Lawrence Seaway located on the west end of Lake Superior, 1850 kms. from Hardisty, Alberta. A forgotten jewel.

So what, you may ask.

They used to ship grain from Thunder Bay in huge tankers to ports all over the world. Why not oil?

The Saint Lawrence Seaway ships fuel, gasoline and diesel tankers, to this day.

We could run oil tankers to the Irving refinery in New Brunswick, bypassing the controversial pipeline running through eastern Ontario and Quebec.

The pipeline, if that was the transport model chosen, would only need to run through parts of Alberta, Saskatchewan, Manitoba and Ontario. Like, previously stated the pipeline would only be 1850 kms. long.

The other great thing about Thunder Bay is the abundance of rail lines. Transportation for such things as grain and forestry products from western Canada. If you can’t run pipeline from Hardisty, through to Thunder Bay, use the railroad.

Why Hardisty, you may ask.

Hardisty, according to Wikipedia, is mainly known as a pivotal petroleum industry hub where petroleum products such as Western Canada Select blended crude oil and Hardisty heavy oil are produced, stored and traded.

The Town of Hardisty owes its very existence to the Canadian Pacific Railway. About 1904 the surveyors began to survey the railroad from the east and decided to locate a divisional point at Hardisty because of the good water supply from the river.

Hardisty, Alberta has the railroad and has the product, the storage capacity, and the former Alberta government planned on investing $3.7 billion in rail cars for hauling oil while Thunder Bay has the railroad and an under utilised port at the head of the St. Lawrence Seaway.

Economics are there along with opportunity, employment would be created and the east coast could end its’ dependency on imported oil.

Do we have the vision or willingness to consider another option. I am just asking for all avenues to be considered.

In my interviews in Ontario there is a willingness to discuss this idea.

The St. Lawrence Seaway Management Corporation is still reviewing the idea of shipping crude oil from western Canada through its system, and it’s a long way from happening, according to Bruce Hodgson, the Seaway’s director of market development.

“Obviously, there needs to be an ongoing commitment on the part of a producer, and so that’s going to be required for any project of this nature,” he said.

We could consider it, could we not?

CBC NEWS did a story about this idea on March 7 2019;

A retired oil field worker in Alberta has “floated” a novel solution to Alberta’s oil transportation woes: pipe the bitumen to Thunder Bay, Ont., then ship it up the St. Lawrence Seaway to the Irving oil refinery in New Brunswick.

Marks’ proposal might be more than a pipe dream, according to the director of the Queen’s Institute for Energy and Environmental Policy.

‘I don’t think that it’s a totally nuts idea’

“I don’t think that it’s a totally nuts idea,” Warren Mabee said. “I think that there’s some flaws to it … but this is an idea that could work in certain circumstances and at certain times of year. … It’s not the craziest thing I’ve ever heard.”

The chief executive officer of the Port of Thunder Bay said shipping oil from the port “could easily be done.”

“We ship refined gasoline and diesel up from Sarnia. We’ve done that for many many years,” Tim Heney told CBC. “So it’s not something that’s that far-fetched.”

There are, however, plenty of potential drawbacks to shipping crude through the Seaway, Mabee explained, not least of which is the fact that it isn’t open year-round.

The need to store oil or redirect it during the winter months could be costly, he said.

Potential roadblocks

Another potential pitfall is capacity, he added; there may not be enough of the right-sized tankers available to carry the oil through the Seaway.

Finally, he said, the journey by sea from Lake Superior to the Irving refinery in New Brunswick is a long one, so it might make more sense to transport the product to a closer facility such as the one in Sarnia, Ont.

The St. Lawrence Seaway Management Corporation is still reviewing the idea of shipping crude oil from western Canada through its system, and it’s a long way from happening, according to Bruce Hodgson, the Seaway’s director of market development.

“Obviously, there needs to be an ongoing commitment on the part of a producer, and so that’s going to be required for any project of this nature,” he said.

So far, no producer has come forward seeking to ship crude through Thunder Bay, he said.

Asked about the possible environmental risks of shipping oil on Lake Superior, both Hodgson and Heney said shipping by tanker is relatively safe; Hodgson noted that any tankers carrying the product would have to be double-hulled, and crews are heavily vetted.

Time to rethink pipelines?

There hasn’t been a spill in the Seaway system for more than 20 years he said.

Nonetheless, Mabee said, the potential for an oil spill on the Great Lakes could be a huge issue.

“The St. Lawrence and the Great Lakes have a lot of people living in close proximity, a lot of people who rely on it for drinking water,” he said. “There’s a delicate ecosystem there. I think a lot of people would push back against this proposal simply from that perspective.”

 

In fact, one of the reasons Mabee appreciates Marks’ proposal, he said, is because it invites people to weigh the pros and cons of different methods of transporting oil.

“If we’re not going to build pipelines, but we’re going to continue to use oil, it means that people are going to be looking at some of these alternative transport options,” he said.

“And if we don’t want oil on those alternative transport options, we need to give the pipelines another thought.

Time to consider all options, I dare say.

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Alberta

Alberta judge sides with LGBT activists, allows ‘gender transitions’ for kids to continue

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From LifeSiteNews

By Clare Marie Merkowsky

‘I think the court was in error,’ Alberta Premier Danielle Smith has said. ‘There will be irreparable harm to children who get sterilized.’

LGBT activists have won an injunction that prevents the Alberta government from restricting “gender transitions” for children.

On June 27, Alberta King’s Court Justice Allison Kuntz granted a temporary injunction against legislation that prohibited minors under the age of 16 from undergoing irreversible sex-change surgeries or taking puberty blockers.

“The evidence shows that singling out health care for gender diverse youth and making it subject to government control will cause irreparable harm to gender diverse youth by reinforcing the discrimination and prejudice that they are already subjected to,” Kuntz claimed in her judgment.

Kuntz further said that the legislation poses serious Charter issues which need to be worked through in court before the legislation could be enforced. Court dates for the arguments have yet to be set.

READ: Support for traditional family values surges in Alberta

Alberta’s new legislation, which was passed in December, amends the Health Act to “prohibit regulated health professionals from performing sex reassignment surgeries on minors.”

The legislation would also ban the “use of puberty blockers and hormone therapies for the treatment of gender dysphoria or gender incongruence” to kids 15 years of age and under “except for those who have already commenced treatment and would allow for minors aged 16 and 17 to choose to commence puberty blockers and hormone therapies for gender reassignment and affirmation purposes with parental, physician and psychologist approval.”

Just days after the legislation was passed, an LGBT activist group called Egale Canada, along with many other LGBT organizations, filed an injunction to block the bill.

In her ruling, Kuntz argued that Alberta’s legislation “will signal that there is something wrong with or suspect about having a gender identity that is different than the sex you were assigned at birth.”

However, the province of Alberta argued that these damages are speculative and the process of gender-transitioning children is not supported by scientific evidence.

“I think the court was in error,” Alberta Premier Danielle Smith said on her Saturday radio show. “That’s part of the reason why we’re taking it to court. The court had said there will be irreparable harm if the law goes ahead. I feel the reverse. I feel there will be irreparable harm to children who get sterilized at the age of 10 years old – and so we want those kids to have their day in court.”

READ: Canadian doctors claim ‘Charter right’ to mutilate gender-confused children in Alberta

Overwhelming evidence shows that persons who undergo so-called “gender transitioning” procedures are more likely to commit suicide than those who are not given such irreversible surgeries. In addition to catering to a false reality that one’s sex can be changed, trans surgeries and drugs have been linked to permanent physical and psychological damage, including cardiovascular diseases, loss of bone density, cancer, strokes and blood clots, and infertility.

Meanwhile, a recent study on the side effects of “sex change” surgeries discovered that 81 percent of those who have undergone them in the past five years reported experiencing pain simply from normal movements in the weeks and months that followed, among many other negative side effects.

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Alberta

Why the West’s separatists could be just as big a threat as Quebec’s

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By Mark Milke

It is a mistake to dismiss the movement as too small

In light of the poor showing by separatist candidates in recent Alberta byelections, pundits and politicians will be tempted to again dismiss threats of western separatism as over-hyped, and too tiny to be taken seriously, just as they did before and after the April 28 federal election.

Much of the initial skepticism came after former Leader of the Opposition Preston Manning authored a column arguing that some in central Canada never see western populism coming. He cited separatist sympathies as the newest example.

In response, (non-central Canadian!) Jamie Sarkonak argued that, based upon Alberta’s landlocked reality and poll numbers (37 per cent Alberta support for the “idea” of separation with 25 per cent when asked if a referendum were held “today”), western separation was a “fantasy” that “shouldn’t be taken seriously.” The Globe and Mail’s Andrew Coyne, noting similar polling, opined that “Mr. Manning does not offer much evidence for his thesis that ‘support for Western secession is growing.’”

Prime Minister Mark Carney labelled Manning’s column “dramatic.” Toronto Star columnist David Olive was condescending. Alberta is “giving me a headache,” he wrote. He argued the federal government’s financing of “a $34.2-billion expansion of the Trans Mountain pipeline (TMX)” as a reason Albertans should be grateful. If not, wrote Olive, perhaps it was time for Albertans to “wave goodbye” to Canada.

As a non-separatist, born-and-bred British Columbian, who has also spent a considerable part of his life in Alberta, I can offer this advice: Downplaying western frustrations — and the poll numbers — is a mistake.

One reason is because support for western separation in at least two provinces, Alberta and Saskatchewan, is nearing where separatist sentiment was in Quebec in the 1970s.

In our new study comparing recent poll numbers from four firms (Angus Reid InstituteInnovative Research GroupLeger, and Mainstreet Research), the range of support in recent months for separation from Canada in some fashion is as follows, from low to high: Manitoba (6 per cent to 12 per cent); B.C. (nine per cent to 20 per cent); Saskatchewan (20 per cent to 33 per cent) and Alberta (18 per cent to 36.5 per cent). Quebec support for separation was in a narrow band between 27 per cent and 30 per cent.

What such polling shows is that, at least at the high end, support for separating from Canada is now higher in Saskatchewan and Alberta than in Quebec.

Another, even more revealing comparison is how western separatist sentiment now is nearing actual Quebec votes for separatism or separatist parties back five decades ago. The separatist Parti Québécois won the 1976 Quebec election with just over 41 per cent of the vote. In the 1980 Quebec referendum on separation, “only” 40 per cent voted for sovereignty association with Canada (a form of separation, loosely defined). Those percentages were eclipsed by 1995, when separation/sovereignty association side came much closer to winning with 49.4 per cent of the vote.

Given that current western support for separation clocks in at as much as 33 per cent in Saskatchewan and 36.5 per cent in Alberta, it begs this question: What if the high-end polling numbers for western separatism are a floor and not a ceiling for potential separatist sentiment?

One reason why western support for separation may yet spike is because of the Quebec separatist dynamic itself and its impact on attitudes in other parts of Canada. It is instructive to recall in 1992 that British Columbians opposed a package of constitutional amendments, the Charlottetown Accord, in a referendum, in greater proportion (68.3 per cent) than did Albertans (60.2 per cent) or Quebecers (56.7 per cent).

Much of B.C.’s opposition (much like in other provinces) was driven by proposals for special status for Quebec. It’s exactly why I voted against that accord.

Today, with Prime Minister Carney promising a virtual veto to any province over pipelines — and with Quebec politicians already saying “non” — separatist support on the Prairies may become further inflamed. And I can almost guarantee that any whiff of new favours for Quebec will likely drive anti-Ottawa and perhaps pro-separatist sentiment in British Columbia.

There is one other difference between historic Quebec separatist sentiment and what exists now in a province like Alberta: Alberta is wealthy and a “have” province while Quebec is relatively poor and a have-not. Some Albertans will be tempted to vote for separation because they feel the province could leave and be even more prosperous; Quebec separatist voters have to ask who would pay their bills.

This dynamic again became obvious, pre-election, when I talked with one Alberta CEO who said that five years ago, separatist talk was all fringe. In contrast, he recounted how at a recent dinner with 20 CEOs, 18 were now willing to vote for separation. They were more than frustrated with how the federal government had been chasing away energy investment and killing projects since 2015, and had long memories that dated back to the National Energy Program.

(For the record, they view the federal purchase of TMX as a defensive move in response to its original owner, Kinder Morgan, who was about to kill the project because of federal and B.C. opposition. They also remember all the other pipelines opposed/killed by the Justin Trudeau government.)

Should Canadians outside the West dismiss western separatist sentiment? You could do that. But it’s akin to the famous Clint Eastwood question: Do you feel lucky?

Mark Milke is president and founder of the Aristotle Foundation for Public Policy and co-author, along with Ven Venkatachalam, of Separatist Sentiment: Polling comparisons in the West and Quebec.

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