This is last installment of a three-part series on greenwashing and the tar sands. Be sure to read Part 1, A Short History of Greenwashing the Tar Sands, and Part 2, Do As I Say, Not As I Do.
Recently, Canadian Oil Sands Chief Executive Officer Marcel Coutu explained to Bloomberg why he and other big shot oil executives have been lobbying U.S. politicians so hard for the approval of the Keystone XL pipeline, which would ferry more than 800,000 barrels of tar sands crude to the Gulf Coast. Coutu had participated in a Canadian Association of Petroleum Producers (CAPP) lobbying junket in February, and another trip is being planned for this month.
The first reason is money. The Keystone XL pipeline is a vital component of the tar sands industry’s plans. Without it, it will be hard for Big Oil to double production of tar sands crude by 2020. With no way to transport the extra crude to markets in the U.S. and beyond, there would be no point in spending all that money to turn bitumen into a crude form of oil. This, Coutu said, has had a chilling effect on investment and share prices.
Canadian Oil Sands shares have risen just two per cent this year, while Cenovus’ have fallen seven percent and Imperial Oil’s are down 6.2 percent. Keystone XL, says Todd Kepler, a Calgary-based oil and gas analyst at Cormark Securities, would increase share prices for oil producers by as much as 20 per cent.
That's a big deal worth millions of dollars.