pipelines aren’t all evil

I can’t put together a lot of analysis this week, but I can point you to some people who have.  In this case, we’re talking about pipelines for oil and gas delivery across the US.  I’ve mentioned some of the issues related to leak detection in the context of the Enbridge spill in Kalamazoo, Michigan before.  You might be surprised to know that there are already some 2.5 million miles of pipelines across the US for oil and gas delivery, and the number is going up with every new shale gas deposit or oil sands site.  ProPublica has compared the risk of pipeline failures vs. the risk of trucking oil/gas, using the analogy of travel by air vs. travel by car.  Yes, it’s risky (is anything truly risk-free?) but it’s less risky than the major alternative.

Apparently many of the leaking pipes are old, and were grandfathered in when regulations came out, just to avoid the excessive cost of digging up miles and miles of pipeline to check for their integrity.  I’d like to think that new pipelines could meet higher standards, such as in the case of the Keystone XL pipeline that Obama will evaluate in the next 4 years.  The National Academy of Sciences is also working on a scientific review of the risk to pipelines from carrying diluted bitumen, an especially corrosive form of crude oil; that report to advise government and industry is due out next year, and will probably play a significant role in the acceptance or rejection of the Keystone XL plans.

Let’s keep in mind that the oil and gas boom in the US and Canada is boosting our economy, and natural gas prices in the US are cheap enough now (sometimes 30-50% the cost in Europe and Asia) that factories may be able to offset our higher labor costs with lower energy costs, and relocate back to the US.  Let’s also keep in mind that there are environmental benefits to keeping oil and gas production subject to American/Canadian laws rather than in places we might consider more likely to cut corners.  Enbridge is in big trouble with regulators over the spill in Michigan.  It’s a big deal in Canada that scientists have found oil sands contaminants in snow and rain nearby to the mines and not been able to fully disclose their results.  Our two nations have an active population that is keeping an eye on these things.  Better to mine/refine/deliver oil and gas with much oversight and supervision, and to challenge our regulators to hold these companies to account, than to punt on development and send jobs abroad, in my mind.

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