Introduction
Oil Sands
Define oil Sands
When a mixture of sand, water, clay and bitumen is mixed we get
nothing but Oil Sands. Bitumen is a form of oil which is quiet heavy
and thick to flow around or be pumped in the pipes. So given at 11
degree Celsius, bitumen is hard as a hockey puck. (1)
[Link]
These oil sands deposits are found in the parts of Alberta and
nearby places and they are also known as tar sands.
Where its located
Generic information about oil sands
[Link]
Pipeline
Whats being transferred through pipe
Basic information about ALBERTA-BC TWIN PIPELINE info
[Link] Benefits
[Link]
[Link]
[Link]
Cons and Impact on Economy
([Link]
Pipelines)
Impact on Economy
A report put forth by economist and former Insurance Corporation of BC CEO, Robyn Allan, in
early 2012, states that this proposed pipeline could actually hurt non-oil based sectors of the
Canadian economy. Allan stated in the report that the project's success depends on continual
yearly oil price increases, by about $3/barrel. She also stated that an increase in oil prices will
lead to "a decrease in family purchasing power, higher prices for industries who use oil as an
input into their production process, higher rates of unemployment in non-oil industry related
sectors, a decline in real GDP, a decline in government revenues, an increase in inflation, an
increase in interest rates and further appreciation of the Canadian dollar."[45][46]
Dutch Disease
A new report by the Pembina Institute argues that Alberta's oil sands boom has given other parts
of the country a dramatic case of the Dutch Disease or what it calls "oil sands fever." After the
Netherlands developed its offshore gas reserves in the 1970s, its manufacturing and agricultural
sector temporarily struggled with a stronger guilder and the Economist magazine dubbed the
malaise "the Dutch Disease."
While Canada's energy exports have thrived in recent years, the Pembina study shows that their
profitability "has masked a considerable drop in exports from the machinery and equipment,
automotive and consumer goods and forestry sectors."
Between 2004 and 2010 Canada's manufacturing sector, largely located in Ontario and Quebec,
has lost more than 500,000 jobs for a variety of reasons.
But even an Industry Canada funded study attributes approximately a third of these job losses to
Canada's petro dollar and the rapid development of bitumen mining
2. Pros for Pipelines(The
Technological Environment)
[Link]
[Link]
: Parts of these links talks about Technological Environment (R &D) and also how it
carries.
Cons for
Pipelines([Link]
/Enbridge_Northern_Gateway_Pipelin
es)
Enbridge's history of incidents
The pipeline has been criticized by several non-governmental organizations (NGOs), citing
Enbridge's spotty history with pipeline installation and numerous spills. These NGOs point to
numerous incidents.
2012 In July, 190,000 liters of crude oil spilled in Wisconsin [57]. This follows a
230,000 litre leak near Red Deer, Alberta a month before [58].
2011 On the first day of the public hearings into the companys planned
Northern Gateway pipeline, U.S. pipeline regulators informed Enbridge of the
leak from its Stingray pipeline. Enbridge claimed they can continue
operations at the Stingray pipeline which carries up to 560-million cubic feet
a day of natural gas from offshore wells in the Gulf of Mexico. Bubbles from
the pipeline leak were observed about 100 kilometres from the Louisiana
coast.[59]
2010 High-profile Kalamazoo spill of 2010, where over 3 megalitres (19,000
bbl) were spilled into the Kalamazoo river, and a spill in the Chicago area in
2010.
2008 Pipeline installation in Wisconsin, where over 500 regulatory violations
were incurred in one year of construction. Enbridge has also had over 600
recorded leaks and breaks over the last 10 years. [60][61]
The Pembina Institute has published a report saying that the pipeline will have adverse impacts
on land, air, and water.[62] Some of Enbridge's shareholders have asked the company to
investigate the unique risks and liabilities associated with the project.[63][64]
1991 A Lakehead (now Enbridge) crude oil pipeline near Grand Rapids,
Minnesota ruptured on March 2. More than 40,000 barrels of crude went into
the Prairie River. About 4 million US gallons (15,000 m 3) of oil had spilled from
that pipeline from the early 1970s to 1991, per Minnesota records. A resident
in the area noticed the smell of oil and alerted the local fire department.
Approximately 300 people living in homes near the site were evacuated for
safety, but were allowed to return to their homes later in the night. [65][66][67][68]
[69][70]
1979 A 34 inch diameter Lakehead (now Enbridge) pipeline ruptured near
Bemidji, Minnesota, leaking 10,700 barrels (1,700 m3) of crude oil on August
20. The pipeline company initially recovers 60 percent of the spilled oil. Later
in 1988, the Minnesota Pollution Control Agency required Lakehead to extract
more oil using new technology; removal continued on, with studies still
underway in the area.[65][71][72][73]
Social Responsibility (there is a huge information on this aspect,
please refer the below links) [Link]
= We can talk briefly and report how CSR is looking after AIR,
WATER, LAND and their Innovative Ideas.(PROS)
= BC can likely expect many small spills every year and a catastrophic
spill of over 10,000 barrels every 12 years ( figures based from SFU)
Source: [Link] (CONS)
NOTE: Pros/Cons of Pipelines and Social Responsibility part match up
a lot. Let me know if we should add parts of Pros/cons Pipeline info in
one section. We definitely need to eliminate information and put it
under technological environment.
3. Political Legal Environment
([Link]
: In the above link if you scroll down there is information that talks about
Political Issues
And some parts it also mentions this from the opposition NDP
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Opposition
[edit] BC NDP
BC NDP leader Adrian Dix has promised to pull B.C. out of the federal review process if hes
elected next spring, while also hiring retaining prominent constitutional lawyer Murray Rankin,
QC to consider a legal challenge on who has jurisdiction over pipelines. Rankin argues that
British Columbia should withdraw from the federal governments Pipelines review process and
set up a made-in-B.C. environmental assessment.[19][20] In an August 2012 NDP press conference
Rankin argued that a made-in-B.C. review would ensure that B.C.s economic, social and
environmental interests are fully addressed, that B.C.'s powers and responsibilities are properly
exercised and that First Nations interests are recognized within the new process.[21] In response
Dix said "Within a week of taking office, we will serve the federal government with 30 days
notice to terminate the 2010 deal in which the Liberals signed away B.C.s interests. [22]
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IMPACT ON ABORIGINAL GROUPS(Please refer if this should
fall under socio-cultural environment or stick with Political
issue(political-legal environment)
We Definitely have some room to talk about the Corporations
4. Strategic management: Setting
Goals and Formulating Strategy
(from the view of Corporations)
5. Contingency Planning And Crisis
Management.