(October 12, 2017)
The sudden announcement by TransCanada Pipelines to scuttle its Energy East project landed with a clang amid the environmental activist community.
Good news, to be sure, but after a year of struggles, temporary victories and then imperious Trump-issued executive orders that paved the way for completion of the Dakota Access Pipeline, it was unexpected.
It’s like pushing hard to keep the door from opening, only to have it slam shut when the person on the other side gives up and lets go.
It would be nice to think that the cancellation was a sign of corporate social responsibility, that TransCanada realized the harms (real and anticipated) of the Energy East pipeline were not worth the risk to future generations. One can always hope for such enlightenment, but no doubt this played a minor role compared to the fact that someone, finally, did the math.
Investing in pipelines these days is like investing in new whaling vessels in the late 19th century. People did not stop using whale oil lamps because we ran out of sperm whales, but because there was a smarter (and eventually cheaper) alternative.
In the same way, I recall Saudi oil minister Sheikh Ahmed Zaki Yamani’s famous 1973 line about how the Stone Age did not end because people ran out of stones. The age of oil will not end when people run out of oil, but when people realize there are smarter, eventually cheaper, and more ecologically sustainable alternatives.
Pipelines need both a source of oil and customers to buy the finished product. One without the other is pointless. The current systems (leaks and all) are managing current levels of supply and demand. New pipelines are a huge investment in a future in which oil prices will be high enough to justify collecting and refining the tar sands crude — something that implies an increasing demand.
Apart from inconvenient truths — such as that there is enough carbon buried in the tar sands to guarantee extinction by global warming of much of the life on Earth, including our own — the idea of an oil-needy future is seriously delusionary.
Simply put, it is bad business. I would love some forensic accounting of who is invested in these operations right now, because I suspect the money of those in charge of the fossil-fuel industry is invested elsewhere. Mutual funds, pension plans and other things that are supposed to guarantee our personal economic future, are likely the shills still paying for obsolete fossil-fuel technological infrastructure.
Pull the direct and indirect government subsidies out of the fossil fuel industry and that investment becomes even more dubious. In a warming world in which increasing greenhouse gas emissions are the harbinger of disasters, from droughts to forest fires and to hurricanes, even General Motors is making a major shift to electric vehicles. Proposing expanded investment in the fossil-fuel industry would be as popular with shareholders these days as trying to corner the market on whale oil.