The American Energy Initiative, Part 17: a Focus on the Future of Energy Tech- Nology with an Emphasis on Canadian Oil Sands
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THE AMERICAN ENERGY INITIATIVE, PART 17: A FOCUS ON THE FUTURE OF ENERGY TECH- NOLOGY WITH AN EMPHASIS ON CANADIAN OIL SANDS HEARING BEFORE THE SUBCOMMITTEE ON ENERGY AND POWER OF THE COMMITTEE ON ENERGY AND COMMERCE HOUSE OF REPRESENTATIVES ONE HUNDRED TWELFTH CONGRESS SECOND SESSION MARCH 20, 2012 Serial No. 112–128 ( Printed for the use of the Committee on Energy and Commerce energycommerce.house.gov U.S. GOVERNMENT PRINTING OFFICE 77–480 PDF WASHINGTON : 2013 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 VerDate Aug 31 2005 10:55 Jan 23, 2013 Jkt 037690 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 F:\114313~1\112-12~1 WAYNE COMMITTEE ON ENERGY AND COMMERCE FRED UPTON, Michigan Chairman JOE BARTON, Texas HENRY A. WAXMAN, California Chairman Emeritus Ranking Member CLIFF STEARNS, Florida JOHN D. DINGELL, Michigan ED WHITFIELD, Kentucky Chairman Emeritus JOHN SHIMKUS, Illinois EDWARD J. MARKEY, Massachusetts JOSEPH R. PITTS, Pennsylvania EDOLPHUS TOWNS, New York MARY BONO MACK, California FRANK PALLONE, JR., New Jersey GREG WALDEN, Oregon BOBBY L. RUSH, Illinois LEE TERRY, Nebraska ANNA G. ESHOO, California MIKE ROGERS, Michigan ELIOT L. ENGEL, New York SUE WILKINS MYRICK, North Carolina GENE GREEN, Texas Vice Chairman DIANA DEGETTE, Colorado JOHN SULLIVAN, Oklahoma LOIS CAPPS, California TIM MURPHY, Pennsylvania MICHAEL F. DOYLE, Pennsylvania MICHAEL C. BURGESS, Texas JANICE D. SCHAKOWSKY, Illinois MARSHA BLACKBURN, Tennessee CHARLES A. GONZALEZ, Texas BRIAN P. BILBRAY, California TAMMY BALDWIN, Wisconsin CHARLES F. BASS, New Hampshire MIKE ROSS, Arkansas PHIL GINGREY, Georgia JIM MATHESON, Utah STEVE SCALISE, Louisiana G.K. BUTTERFIELD, North Carolina ROBERT E. LATTA, Ohio JOHN BARROW, Georgia CATHY MCMORRIS RODGERS, Washington DORIS O. MATSUI, California GREGG HARPER, Mississippi DONNA M. CHRISTENSEN, Virgin Islands LEONARD LANCE, New Jersey KATHY CASTOR, Florida BILL CASSIDY, Louisiana JOHN P. SARBANES, Maryland BRETT GUTHRIE, Kentucky PETE OLSON, Texas DAVID B. MCKINLEY, West Virginia CORY GARDNER, Colorado MIKE POMPEO, Kansas ADAM KINZINGER, Illinois H. MORGAN GRIFFITH, Virginia SUBCOMMITTEE ON ENERGY AND POWER ED WHITFIELD, Kentucky Chairman JOHN SULLIVAN, Oklahoma BOBBY L. RUSH, Illinois Vice Chairman Ranking Member JOHN SHIMKUS, Illinois KATHY CASTOR, Florida GREG WALDEN, Oregon JOHN P. SARBANES, Maryland LEE TERRY, Nebraska JOHN D. DINGELL, Michigan MICHAEL C. BURGESS, Texas EDWARD J. MARKEY, Massachusetts BRIAN P. BILBRAY, California ELIOT L. ENGEL, New York STEVE SCALISE, Louisiana GENE GREEN, Texas CATHY MCMORRIS RODGERS, Washington LOIS CAPPS, California PETE OLSON, Texas MICHAEL F. DOYLE, Pennsylvania DAVID B. MCKINLEY, West Virginia CHARLES A. GONZALEZ, Texas CORY GARDNER, Colorado HENRY A. WAXMAN, California (ex officio) MIKE POMPEO, Kansas H. MORGAN GRIFFITH, Virginia JOE BARTON, Texas FRED UPTON, Michigan (ex officio) (II) VerDate Aug 31 2005 10:55 Jan 23, 2013 Jkt 037690 PO 00000 Frm 00002 Fmt 0486 Sfmt 5904 F:\114313~1\112-12~1 WAYNE CONTENTS Page Hon. Ed Whitfield, a Representative in Congress from the Commonwealth of Kentucky, opening statement ......................................................................... 1 Prepared statement .......................................................................................... 3 Hon. Kathy Castor, a Representative in Congress from the State of Florida, opening statement ................................................................................................ 5 Hon. John Shimkus, a Representative in Congress from the State of Illinois, opening statement ................................................................................................ 6 Hon. Henry A. Waxman, a Representative in Congress from the State of California, opening statement ............................................................................. 7 Hon. Fred Upton, a Representative in Congress from the State of Michigan, prepared statement .............................................................................................. 191 WITNESSES Eddy Isaacs, Chief Executive Officer, Alberta Innovates—Energy and Envi- ronment Solutions ................................................................................................ 9 Prepared statement .......................................................................................... 12 Anton R. Dammer, Former Director, Naval Oil Shale Reserves, Department of Energy ............................................................................................................... 19 Prepared statement .......................................................................................... 21 John Nenniger, Chief Executive Officer, N–Solv Corporation ............................. 39 Prepared statement .......................................................................................... 41 William McCaffrey, President and Chief Executive Officer, MEG Energy Cor- poration ................................................................................................................. 54 Prepared statement .......................................................................................... 56 Final Report, dated October 2009, ‘‘The Impacts of Canadian Oil Sands Development on the United States’ Economy,’’ Canadian Energy Re- search Institute ............................................................................................. 68 Report, dated July 2009, ‘‘Life Cycle Assessment Comparison of North American and Imported Crudes,’’ Alberta Energy Research Institute 1 ... Murray D. Smith, President, Murray Smith and Associates ............................... 122 Prepared statement .......................................................................................... 125 Simon Dyer, Policy Director, The Pembina Institute ........................................... 132 Prepared statement .......................................................................................... 135 Melina Laboucan-Massimo, Climate and Energy Campaigner, Greenpeace Canada .................................................................................................................. 162 Prepared statement .......................................................................................... 164 SUBMITTED MATERIAL Statement, dated March 29, 2012, of the Canadian Association of Petroleum Producers, submitted by Mr. Shimkus ............................................................... 192 1 The report is available at http://www.eipa.alberta.ca/media/39640/ life%20cycle%20analysis%20jacobs%20final%20report.pdf. (III) VerDate Aug 31 2005 10:55 Jan 23, 2013 Jkt 037690 PO 00000 Frm 00003 Fmt 5904 Sfmt 5904 F:\114313~1\112-12~1 WAYNE VerDate Aug 31 2005 10:55 Jan 23, 2013 Jkt 037690 PO 00000 Frm 00004 Fmt 5904 Sfmt 5904 F:\114313~1\112-12~1 WAYNE THE AMERICAN ENERGY INITIATIVE, PART 17: A FOCUS ON THE FUTURE OF ENERGY TECHNOLOGY WITH AN EMPHASIS ON CA- NADIAN OIL SANDS TUESDAY, MARCH 20, 2012 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON ENERGY AND POWER, COMMITTEE ON ENERGY AND COMMERCE, Washington, DC. The subcommittee met, pursuant to call, at 10:04 a.m., in room 2123 of the Rayburn House Office Building, Hon. Ed Whitfield (chairman of the subcommittee) presiding. Members present: Representatives Whitfield, Shimkus, Terry, Bilbray, Scalise, McMorris Rodgers, Olson, McKinley, Gardner, Pompeo, Griffith, Castor, Engel, Green, and Waxman (ex officio). Staff present: Charlotte Baker, Press Secretary; Michael Beckerman, Deputy Staff Director; Maryam Brown, Chief Counsel, Energy and Power; Allison Busbee, Legislative Clerk; Garrett Golding, Professional Staff Member, Energy and Power; Cory Hicks, Policy Coordinator, Energy and Power; Ben Lieberman, Counsel, Energy and Power; Carly McWilliams, Legislative Clerk; Phil Barnett, Democratic Staff Director; Caitlin Haberman, Demo- cratic Policy Analyst; Angela Kordyak, DOE Detailee; and Alex- andra Teitz, Democratic Senior Counsel, Environment and Energy. OPENING STATEMENT OF HON. ED WHITFIELD, A REPRESENT- ATIVE IN CONGRESS FROM THE COMMONWEALTH OF KEN- TUCKY Mr. WHITFIELD. I would like to call this hearing to order this morning. I might say that this is the 17th day of hearings that we have had on energy in America. Frequently, President Obama in his speeches talks about Amer- ica having only 2 percent of the world’s proven oil reserves. Today, we are going to discuss how Canada took action to increase its proven reserves several-fold by allowing the development of oil sands in Alberta. We know that in Canada and in the U.S., there have many groups that have opposed additional oil production in both countries, but Canada faced that situation and as a result, as I have indicated, dramatically increased their proven oil reserves. As a result of that, those of us in America, many of us, are going to continue to advocate for the Keystone XL Pipeline Expansion project that could bring an additional 700,000 barrels of oil a day to Midwestern and Gulf Coast refineries from Canada. The benefits (1) VerDate Aug 31 2005 10:55 Jan 23, 2013 Jkt 037690 PO 00000 Frm 00005 Fmt 6633 Sfmt 6633 F:\114313~1\112-12~1 WAYNE 2 in terms of additional secure oil and thousands of jobs is simply too important for us to give up on. I for one would like to see more Ca- nadian oil flowing into America. I would also like to see the same