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“This is a spectacular day for all British Columbians, again not one that
happened today, not one that happened yesterday but one that has happened
over the past few decades. I can’t tell you how proud and pleased I am to
have the opportunity to lead the government to work with all levels of
government to make life better for British Columbians. I can’t stop smiling.”
That was John Horgan, the Premier of British Columbia, declaring his
support for, what, a plan to tackle unaffordable housing? Ending the fentanyl
crisis? A major infrastructure project that will lower the frustration of
Lower Mainland commuters?
No, what Premier Horgan was smiling about on October 2nd, was the signing
of a final investment decision by LNG Canada. Flanked by industry leaders and
Prime Minister Justin Trudeau, Horgan said that despite belching out
3.45 megatonnes of carbon emissions a year, BC would meet its
climate change goals of cutting greenhouses gases by 40% by 2030 and 80% by
2050. The Pembina Institute estimates that between LNG Canada and Woodfibre
LNG, the other, so far, approved BC liquefied natural gas project, the plants
will increase annual carbon pollution by 9.1 megatonnes by 2030 and
10.2MG by 2050. But the targets will be met, somehow. Trust us.
To actually meet the province’s climate change goal, massive carbon cuts
would have to be made elsewhere. The government says it’s currently rolling
out a new climate plan. We’re not expecting any dramatic revelations.
China, Russia and Canada’s
current climate policies would drive the world above
a catastrophic 5C of
warming by the end of the century, according to a study
that ranks the climate
goals of different countries.
Of course, it was the lure of the buck that made Horgan and his Cabinet
become sudden converts to LNG, despite opposing it while in Opposition to the
Christy Clark Liberals (Horgan said at the time that LNG was giving up too
much revenue to attract foreign investment - ironic now, considering the NDP
gave LNG Canada a $5.3B tax break), who came up with the idea with much
fanfare - even promising to pay off the provincial debt with the windfall of
LNG cash.
The NDP says the LNG Canada project will
bring in $22 billion over 40 years.
That sounds pretty good, but it assumes there are no costs associated with
building a new LNG industry in BC. A fossil-fuel-intensive industry that goes
against the prevailing mood (excluding the Trump Administration) of weaning
ourselves off carbon through the use of cleaner technology like nuclear
energy and renewables.
But there are costs. And they could be huge. Much
greater than $22 billion. Why? Because the BC LNG industry is being built at
exactly the wrong time. We know that climate change is upon us. Yes, even in
beautiful British Columbia. The evidence is everywhere, and we have written
on it extensively. (Read
our five-part series) Rising ocean levels and temperatures, frequent and
more intense storms, droughts, forest fires, retreating glaciers, calving ice
sheets, mudslides, newly active volcanoes, melting permafrost in the Arctic
leaving bubbling cauldrons of methane - a much more potent greenhouse gas
than carbon dioxide.
Plus the negative effects of the natural gas industry that continue to be
seen in the form of methane escapes into the water and atmosphere, benzene
poisoning among the people of northeastern BC who live near fracking wells,
polluted lakes, more CO2 and other toxins that are emitted permanently into
the atmosphere when natural gas is burnt to produce energy.
In 2017, global economic
losses from natural disasters and man-made catastrophes were the highest ever
amounting to US$337 billion.
This article will take a closer look at those costs, and poses the
question: How are we going to address climate change by encouraging the
development of a fossil-fuel driven LNG industry in British Columbia?
Forest fires and climate change
It doesn’t take a scientist to notice that forest fires and droughts (the
two being inter-related) have been getting worse over the years. BC entered
its third consecutive year of serious wildfires. This summer was the worst
fire season on record and anecdotally, there was a lot more smoke than in
2017. So much that there was a run on HEPA air filters in the Lower Mainland,
usually immune from the smoke “up north” or “in the Interior”. People were
checking daily air quality warnings like we were living in China. In fact
Kelowna hit a record one day as having worse air quality than Beijing.
Close to 13,000 square kilometers were burnt, breaking the previous record
set in 2017; that year, the government spent $568 million on fire
suppression. This year is estimated to come in at over $300 million.
While the forest fire season is over in Canada, state-side they continue
to rage. In California this week, over 100 people, many of them seniors, are
missing as firefighters battle the Camp Fire, the largest in the state’s
history. Fifty people have perished in two major fires burning in
California. According
to CNN the Camp Fire and Woolsey Fire - one in northern and the
other in southern California - have so far destroyed 8,083 homes or structures
and scorched 232,620 acres.
So
what to make of these fires? Are they caused by climate change? That
seems to be the narrative in the press, although the
problem is more complicated than that. Prescribed burns, as forest
companies used to do, are no longer government policy in the United States or
Canada, leaving hundreds of hectares/acres of dangerously dry tinder, easily
ignited by a match or a lightning strike. Prescribed burns are bad for
tourism. Residents don’t care much for them either.
But warming temperatures and an extended drought in the western United
States are certainly major factors. The
Guardian reports that of the 20 largest wildfires in California’s
history, 15 of them have been since 2000, during which time forests have
become warmer and drier. Since 1970 the temperature increase in the west is
about double the global average.
“Given strong relationships between climate and fire, even when modified
by land use and management such as fuel treatments, projected climate changes
suggest that western forests in the United States will be increasingly
affected by large and intense fires that occur more frequently,” a government
report states.
The Union
of Concerned Scientists notes that higher temperatures in the summer
and spring are causing soils to be drier for longer, increasing the
likelihood of droughts and a longer wildfire season. In the US southwest,
it’s predicted that the fire season will soon be all year long rather than
just seven months. A NASA
study states that droughts caused by climate change are getting
worse and could become more frequent in the western US.
See below for a current drought map. Almost everything west of Montana, Wyoming,
Colorado and New Mexico now ranges from abnormally dry to exceptional
drought.
In the summer over half of the United States fit this description.
In BC, similar conditions prevailed this year. Two weeks of hot weather in
July drove up the fire danger rating, followed by widespread lightning in
early August.
Not only do wildfires chew through forests/ agricultural land, drive
people from their homes, destroy property and sometimes kill people, they
also cause flash floods, in areas where all the vegetation has been burnt,
leaving nowhere for water to be absorbed; and drive a climate change feedback
loop.
The loop happens when forest fires burn the carbon stored in trees,
emitting a toxic brew of carbon dioxide, methane and carbon monoxide. These
gases trap heat in the atmosphere, causing further warming, drier forests,
and more fires.
An independent
report released by the BC government states that in 2017, wildfires
emitted 190 million tonnes of carbon into the environment - six times the
total from other sources and almost triple BC’s annual carbon footprint.
Another effect of global warming is the increasing intensity of forest
fires. This past summer some fires in BC were so hot, they couldn’t be put
out with water alone. CBC
quotes Mike Flannigan, a professor of wildland fire at the University of
Alberta, saying that many large fires are spreading in BC, year after year,
due to a ridge of high pressure that is stuck over the province for much of
the summer. The ridge forms along the West Coast due to melting Arctic sea
ice, and the air beneath it is warm and dry, creating the perfect conditions
for a “raging inferno” according to Flannigan.
Governments backing LNG
Apparently though, Premier Horgan didn’t make the connection between the
fires, and the onslaught of greenhouse gases that LNG is set to unleash on
British Columbians in coming years, as he sat grinning in a room with Trudeau
in October.
Why is LNG Canada going ahead while the Trans Mountain pipeline expansion
is tied up in more consultation? An Alberta Cabinet minister says the LNG
project will have a greater environmental impact than TMX. We agree.
“It’s going to result in about 177-per-cent increase in tanker traffic
compared to TMX which will result in a 14 per cent increase,” Economic
Development and Trade Minister Deron Bilous told reporters at the
Alberta legislature, via CBC.
A
Globe and Mail article put the two projects side by side to examine
the impacts - both economic and environmental. In terms of CO2 emissions, the
Globe analysis assigns a much heavier footprint to LNG Canada - 3.45 million
tonnes annually - versus just 0.4 million tonnes from TMX.
Maybe the politicians don’t realize it, but developing an LNG industry in
BC requires widespread fracking. Of all the natural gas reserves left in BC,
only 22% are conventional, with the rest found in unconventional formations,
known as “tight gas”.
For more read our LNG:
Another environmental disaster coming to BC
We also found evidence of a BC Liberal government cover-up of the risk
fracking presents to dam safety:
“Senior BC Hydro officials have quietly feared for years that
earthquakes triggered by natural gas industry fracking operations could
damage its Peace River dams, putting hundreds if not thousands of people at
risk should the dams fail. Yet the Crown corporation has said nothing
publicly about its concerns, opting instead to negotiate behind the scenes
with the provincial energy industry regulator, the BC Oil and Gas
Commission.”
In spite of all this, Premier Horgan says he’s okay with fracking.
“We’ve been fracking in B.C. for decades and we do it fairly well. I’ve
been to a number of frack sites, and I’m comfortable with the technology,” Horgan
said in 2012, when asked whether the NDP supports fracking.
Although the current BC government denies it, it seems pretty clear that
Horgan’s NDP was thinking of LNG when it agreed to let the controversial Site
C dam project go ahead last year - despite railing against it in Opposition.
That’s because Site C will
be needed to power LNG Canada and future LNG plants that are in the
works. Add in the cancellation of Kinder Morgan, the fact there are only so
many pipeline routes through mountainous BC, and a $5.3 billion tax break
given to LNG Canada, and the evidence only points in one direction: the BC
NDP.
The proof? A year ago it was reported that BC
Hydro expects at least three LNG projects will need power from Site C.
It’s also interesting to note that the nascent LNG industry in BC is being
encouraged by the federal Liberals. In 2017 Trudeau’s Liberals passed
Bill C-48, the Oil Tanker Moratorium Act, which stops crude oil tanker
traffic on the northern coast of BC - thus formalizing a “voluntary” Tanker
Exclusion Zone that’s existed since 2015.
Excluded from the bill, though, are gasoline, naphtha, jet fuel, propane
and liquefied natural gas (LNG) - allowing the unfettered expansion of a new
LNG industry in BC.
Recall back in 2016, the federal government made a questionable
bargain with the oil industry and Canadians - approving the $36
billion Pacific NorthWest LNG project near Prince Rupert, while at
the same time assuring Canadians that the massive increase in greenhouse gas
emissions from the project (later cancelled by Petronas), would be part of a
national climate plan. As we now know, that plan includes a carbon
tax that all provinces must buy into.
So it seems that the feds have been on board with LNG since 2016, or
perhaps earlier, obviously without much knowledge of the science – or maybe
our Provincial and Federal politicians just don’t care?
Once the gas is fracked and put in a pipeline, it arrives at the terminal
- however in a form unsuitable for tanker transport. To turn it into a
liquid, it must be cooled to 163 degrees below zero. To do that requires a
great deal of power, with massive compression units running 24/7.
It’s estimated that if LNG Canada were to use only hydro-electric power to
convert NG to LNG, would require 40% of the capacity of the Site C dam
currently being built. The more likely scenario is that LNG Canada will use a
combination of hydro electricity and natural gas to power the plant - the
same fracked gas that came via pipeline to the terminal. And it makes sense
to do that, since NG is a lot cheaper than hydro.
The bottom line? LNG is not clean energy, it’s dirty energy - pumped up
from the ground with the help of chemicals that leach into the water supply.
When burned for electricity, natural gas gives off emissions that are in the
atmosphere forever, contributing to the greenhouse effect of global warming.
“Today’s announcement is a new form of climate denial: The idea that we
can build new fossil fuel projects that will cause millions of tonnes of
additional emissions while reducing our emissions at the same time,” said
Sierra Club B.C.’s climate campaigner, Jens Wieting, the day of the LNG
Canada announcement. “By sweetening the pot for fracked gas export, the
government is laying out a red carpet for investors to help destroy our
climate.”
The real costs of LNG
$22 billion seems like a lot of revenue to glean from one LNG project.
Imagine if two more projects of similar size could be built. That would wipe
out BC’s current debt of around $67 billion.
But this is just the “gross revenue”. To find the net, we have to
calculate the costs of LNG, to our health, our environment, and natural
disasters that could easily occur as a result of an industry that is really a
ticking time bomb. Then subtract them from the gross. Let’s give it a try.
Health
The best way to measure the health effects of LNG is to look at the
natural gas industry in the United States, where fracking has been done with
gusto for nearly a decade - using the same techniques that will be done in
BC.
It’s been found that people who live near areas where hydraulic fracturing
is taking place, are more likely to be hospitalized for heart conditions,
neurological illness and cancer. That’s according to a study
done in 2015 by the University of Pennsylvania and Columbia University,
where researchers looked at hospitalization rates in Pennsylvania in areas
with fracking versus those without.
“The technology to recover natural gas depends on undisclosed types
and amounts of toxic chemicals. A list of 944 products containing 632
chemicals used during natural gas operations was compiled. Literature searches
were conducted to determine potential health effects of the 353
chemicals identified by Chemical Abstract Service (CAS) numbers. More
than 75% of the chemicals could affect the skin, eyes, and other sensory
organs, and the respiratory and gastrointestinal systems.
Approximately 40-50% could affect the brain/nervous system, immune and
cardiovascular systems, and the kidneys; 37% could affect the endocrine
system; and 25% could cause cancer and mutations.
These results indicate that many chemicals used during the fracturing
and drilling stages of gas operations may have long-term
health effects that are not immediately expressed. In
addition, an example was provided of waste evaporation pit residuals that
contained numerous chemicals on the CERCLA and EPCRA lists of hazardous
substances.” Natural Gas Operations From A Public Health
Perspective, wv4mom.org
A 2017
study at the University of Montreal found that fracking releases volatile
organic compounds (VOCs) like benzene into the environment:
The researchers tested urine samples of 29 pregnant women in
Chetwynd and Dawson Creek, two small communities near heavily-fracked shale
gas fields in BC’s Peace River Valley. They measured two
“biomarkers” that our bodies produce when we're exposed to benzene, a
carcinogen that’s been linked to low birth weights and some defects.
Environmental
Fracking defenders say the process is perfectly safe and contained. The
reality is that pollutants are released throughout the process - into the air
and water.
Tens of thousands of wells will be drilled, then a concoction of
chemicals, water and frac sand will be pumped in at high pressure to break
apart the shale rock in order to create fissures that release the natural
gas. The fracking fluid and natural gas will then be pumped back up and
“burped” for several weeks, while the gas is separated from the fluids. Sour
gas is burned, releasing carbon dioxide, sulfur dioxide, methane and nitrous
oxide into the environment. Thirty to 40% of the fracking fluid is left in
the well. The “flowback liquid” that is left after the gas is extracted
contains water and a number of contaminants, including radioactive material
(like radium, which can cause leukemia), heavy metals, hydrocarbons, bromide
and other toxins.
This wastewater is then stored in pits, injected deep underground, or
treated off-site.
The wastewater pumped underground goes into oil and gas waste wells or
saline aquifers. There are serious concerns about the ability of these
caverns and aquifers to handle the increased pressure and the evidence is
showing that deep-well injecting is linked to the occurrence of earthquakes.
Benzene, a cancer-causing carcinogen mentioned above in the study on
pregnant women, can seep into the groundwater, helped along by further cracks
in the Earth if the procedure results in tremors.
Wastewater stored on surface is no better. The toxic ponds continue to
off-gas for years and poisons may leach into the water supply. In
the Netherlands, methane was found in the drinking water supply of
the nearby aquifer, 50 years after a blow-out occurred in an underground
natural gas reservoir.
Methane in water is explosive and can cause asphyxiate people if it’s not
detected. Methane concentrations are 17 times higher in drinking-water wells
near fracturing sites than in normal wells.
Then there’s the extreme water use.
Each well uses between 1.5 million and 15 million gallons (American
Geosciences Institute) of locally-sourced fresh water (an estimated
28,000 wells have been drilled so far in Northeastern BC, that number could
easily double), which will be permanently contaminated by toxic chemicals
contained in the fracking fluid, in ground contaminants and the mixing of the
two to create new toxic substances. This is water that could be used for
drinking, by animals or humans, or for irrigating crops and pastures.
Billions of gallons of fresh water will be destroyed.
A recent
study from Duke University found a huge increase in water use for
fracking operations over the past five years. The paper published in Science
Advances revealed that water use per well increased by up to 770%
between 2011 and 2016. Wastewater volumes rose by 1,440% in two Texas shale
formations.
Keep in mind, this water is being taken by oil and gas companies for
free. Pretty galling considering most of us have to pay for our water.
Imagine how much it would cost if they had to pay for it? Billions. In BC we
pay an average $37.50 a month for water. In drought-stricken areas, it’s a
lot higher. Water
rates in California have been going up. Multiply $37.50/mo times 2.4
million (the 4.8 million population of British Columbia conservatively
divided by two to account for multiple-person households) and you get $2.167
billion a year.
When it comes to air pollution, natural gas is, prima facie, better for
the environment than coal. NG plants emit about half of the carbon dioxide
compared to coal-fired plants, and a natural gas-powered vehicle will release
15 to 20% less pollutants than one powered by gasoline.
But there will still be emissions, lots of them, plus, the really negative
effects of natural gas occur at the drilling, extraction and transportation
phases. This is because the industry can’t stop the escape of methane, the main
component of natural gas. Methane is terrible for the atmosphere, and a large
contributor to global warming, because it is much more efficient than CO2 at
trapping heat. Scientists estimate methane contributes about 25% to global
warming.
Fugitive methane emissions run from 1% to 9% of total natural gas life
cycle emissions. In order for natural gas power plants to be cleaner than
coal, methane emissions over the plant’s life cycle must be kept below 3.2%,
according to one study.
Most methane leaks come from flaring excess NG instead of putting it into
a pipeline. Think methane emissions are no big deal, just a cost of doing
business? The journal Nature earlier this year published a
study saying that the US oil and gas industry emits 13 million tonnes of
methane a year, which is 60% higher than the EPA’s estimate.
The biggest
methane leak in US history occurred in California in 2015. It took
SoCal Gas nearly four months to plug the leak at the Alison Canyon gas field
- during which an estimated 109,000 tonnes of methane was released into the
atmosphere. While that sounds bad, the methane emissions from one natural gas
field - the sprawling San Juan Basin in the US southwest - emitted 291,162
tonnes of methane in 2014, according
to the EPA. The Front Range tight gas formation in Colorado reportedly
leaks 19.3 tons of methane an hour.
In some areas where fracking occurs, there have been increases in other
hazardous pollutants besides methane - namely particulate matter and ozone.
Living under half a mile from an unconventional gas well puts you at greater
risk of respiratory symptoms, cardiovascular disease and cancer, according
to one
study quoted by the Union of Concerned Scientists.
On top of the methane gas escapes and other toxic emissions, methane in
the water, ruined fresh water that could be put to productive and healthy
uses, dangerous health risks including benzene poisoning leading to cancer
and birth defects, earthquakes, the risk to dams and other large structures,
we added two more detrimental effects of fracking in a recent
article: danger to killer whales from much higher LNG tanker traffic, and
the exacerbation of global warming witnessed by retreating glaciers and a newly
active volcano right here in BC.
Mount Meager just north of Vancouver is a ticking time bomb, with glacial
retreat exposing “fumaroles” or vents spewing hydrogen sulfide, carbon
dioxide and steam.
Of course we can’t attribute fracking to venting and retreating glaciers
on Mount Meager, the site of a massive mudslide in 2010 - the second largest
in Canadian history. But if fracking goes ahead in northeastern BC, as it
undoubtedly will with two LNG projects on the runway and 12 more proposed
according to Natural Resources Canada, there will be more carbon dioxide,
methane and other greenhouse gases released, increasing the likelihood of
another disaster at Mount Meager, and other BC volcanoes coming to life.
Conclusion
Climate change is real. We don’t know whether it’s human-caused or a
function of natural cycles, or maybe a combination of both. Actually we don’t
care. We only know that it’s here, and we need to plan for it. Most of the
population is happy to go on with their lives, knowing that the Earth is
warming, but without much concern it will affect them. This includes
politicians who are the gate-keepers of our natural resources, our air and
our water.
With the acceleration of an LNG industry in BC, these gate-keepers have
given the keys to large, foreign multi-nationals who don’t care about BC.
They only want to buy our gas and ship it overseas, supposedly to get Asia
off of coal and onto cleaner natural gas. But as we have shown, NG is
anything but clean. When burned, it emits noxious pollutants. These emissions
are part of the problem of climate change, not the solution. Methane release
makes the problem many times worse. The more methane in the atmosphere, the
warmer the planet will get. It’s just science.
The only way to get the liquid natural gas is to frack it, which comes
with a whole host of problems, presenting huge risks to human and animal
health, and the environment. Is it worth it? Is 20 billion dollars over the
40-year life of one project worth the risk of what we’re going to do to northeastern
BC?
Not from the economic side…The financial cost to us BC residents is
massively lopsided. BC politicians are giving them, the LNG multinationals,
none of which are Canadian Companies, a $5.3 billion tax break and $86.68
billion in free water over the 40 period they supposedly give us $20 billion.
The Feds are giving them another $250m. Hmmmmm.
What is the net benefit to BC of just one LNG project,
let alone two or three more and a massive pipeline system that would have to
be built to move all that gas around? I strongly suggest there is none.
Legal Notice / Disclaimer
This document is not and should not be construed as an offer to sell or
the solicitation of an offer to purchase or subscribe for any investment.
Richard Mills has based this document on information obtained from sources
he believes to be reliable but which has not been independently verified.
Richard Mills makes no guarantee, representation or warranty and accepts
no responsibility or liability as to its accuracy or completeness.
Expressions of opinion are those of Richard Mills only and are subject to
change without notice. Richard Mills assumes no warranty, liability or
guarantee for the current relevance, correctness or completeness of any
information provided within this Report and will not be held liable for the
consequence of reliance upon any opinion or statement contained herein or any
omission.
Furthermore, I, Richard Mills, assume no liability for any direct or
indirect loss or damage or, in particular, for lost profit, which you may
incur as a result of the use and existence of the information provided within
this Report.
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