Inside the Big Oil Playbook
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Inside the Big Oil Playbook Strategies and Tactics Used in the Industry’s Battle to Ship Tar Sands Oil Out of Casco Bay Inside the Big Oil Playbook Strategies and Tactics Used in the Industry’s Battle to Ship Tar Sands Oil Out of Casco Bay Written by: Jordan Schneider, Frontier Group Emily Figdor and Taryn Hallweaver, Environment Maine Research & Education Center June 2014 Acknowledgments The authors wish to thank Joshua Axelrod, environmental law and policy consultant, International Program, Natural Resources Defense Council; Rachel Burger, founder, Protect South Portland; Kenneth Rumelt, staff attorney and assistant professor, Environmental and Natural Resources Law Clinic, Vermont Law School; and Jim Murphy, senior counsel, National Wildlife Federation for their review and insightful comments on drafts of this report. Thanks also to Tony Dutzik and Jeff Inglis of Frontier Group for their editorial assistance. Environment Maine Research & Policy Center is grateful to the Oak Foundation for making this report possible. The authors bear responsibility for any factual errors. The recommendations are those of Environment Maine Research & Policy Center. The views expressed in this report are those of the authors and do not necessarily reflect the views of our funders or those who provided review. © 2014 Environment Maine Research & Policy Center Environment Maine Research & Policy Center is a 501(c)(3) organization. We are dedicated to protecting Maine’s air, water and open spaces. We investigate prob- lems, craft solutions, educate the public and decision makers, and help Mainers make their voices heard in local, state and national debates over the quality of our environment and our lives. For more information about Environment Maine Research & Policy Center or for additional copies of this report, please visit www.environmentmainecenter.org. Frontier Group conducts independent research and policy analysis to support a cleaner, healthier and more democratic society. Our mission is to inject accurate information and compelling ideas into public policy debates at the local, state and federal levels. For more information about Frontier Group, please visit www.frontiergroup.org. Design and Layout: To the Point Publications, www.tothepointpublications.com Cover photo: Earl Long Table of Contents Executive Summary . 4 Introduction ........................................................8 The Tar Sands Threat to Maine........................................10 South Portland Residents Attempt to Ban New Tar Sands Oil Infrastructure . 11 Big Oil Steps in to Defeat the Waterfront Protection Ordinance..................................13 The Big Oil Playbook: Strategies and Tactics Used Against the Waterfront Protection Ordinance . 14 Spend Big to Defeat the Waterfront Protection Ordinance . .14 Downplay the Role of Out-of-State Big Oil Interests .............................................16 Deny the Existence of Any Plans to Export Tar Sands from Maine ................................19 Manufacture and Play Up Economic Fears ......................................................21 Conclusion . 23 Appendix . 24 Notes ..............................................................26 Executive Summary or the last decade, the world’s largest oil Big Oil’s campaign to defeat the South Portland bal- corporations have developed one of the most lot initiative, the Waterfront Protection Ordinance, is a extensive industrial operations in the world: case study of the tools and tactics Big Oil has already theF extraction and processing of tar sands (natural used, and can be expected to use in the future, to bitumen) in northeastern Alberta, Canada. Tar sands keep alive the possibility of shipping tar sands oil oil (diluted bitumen) is more carbon intensive than through Maine, other U.S. states, and large swaths of conventional oil and nearly impossible to clean up Canada. when spilled into waterways. As citizens and decision-makers consider tar sands Public opposition to the extraction and transporta- projects in Maine, and throughout the United States tion of tar sands oil has grown significantly in the last and Canada, it is imperative to understand the tactics five years, most notably in response to TransCanada’s the oil industry is using to advance its interests in the Keystone XL pipeline proposal, which would pipe tar Alberta tar sands. sands oil through the heartland of America, across valuable cropland and one of the nation’s most Big Oil’s campaign to defeat the Waterfront Pro- critical aquifers. In response to mounting grassroots tection Ordinance used four main strategies. resistance against Keystone XL and other proposals to transport tar sands, the American Petroleum Insti- 1) Spend big to defeat the ordinance. tute (API), Big Oil’s Washington, D.C., lobbying arm, has led aggressive “astroturf” (or phony grassroots) Big Oil spared no expense in its effort to defeat the campaigns to try to thwart local opposition to the Waterfront Protection Ordinance. industry’s tar sands plans. • Opponents of the Waterfront Protection South Portland, Maine, became what the Bangor Ordinance spent nearly $750,000 on the campaign Daily News described as “ground zero” for the tar to influence votes in the city of South Portland sands debate when residents, in partnership with (population 25,000)—or $168 for every “no” several statewide environmental groups, qualified a vote on the ordinance. To put this spending in ballot initiative to stop the oil industry from estab- perspective, consider that former New York City lishing Portland Harbor as the U.S. East Coast ship- Mayor Michael Bloomberg spent $184 for every ping hub for tar sands’ entry into the global energy vote in his favor in one of the most expensive market.1 In response, Big Oil launched a massive, self-financed political campaigns in U.S. history. $750,000 campaign to defeat the initiative in a city of In contrast, President Barack Obama’s nationwide just 25,000 people, spending the equivalent of $168 presidential campaign spent $16 for every vote for every “no” vote. Big Oil ultimately prevailed by a cast in his favor in 2012. margin of 192 votes. 4 Inside the Big Oil Playbook • Big Oil’s campaign strategy was shaped by high- • Out-of-state interests provided more than 70 priced out-of-state consultants. The anti-Water- percent of the in-kind and cash donations made front Protection Ordinance campaign spent to the anti-Waterfront Protection Ordinance $133,000 on consulting, including more than campaign. (See Figure ES-1.) API was the largest $63,000 of in-kind consulting services provided donor, contributing more than $270,000 in cash by API. and in-kind services—enough to cover one-third of the anti-Waterfront Protection Ordinance • Big Oil interests also hired well-connected campaign. political insiders, such as Dan Demeritt, former communications director for Gov. Paul LePage, • Even some of the “in-state” oil interests that and New Hampshire political publicist Jim Merrill, contributed to the anti-Waterfront Protection who directed President George W. Bush’s 2000 Ordinance effort represented predominantly general election campaign in the Granite State. out-of-state interests. For example, the ultimate parents of Portland Montreal Pipe Line, the 2) Downplay the role of Big Oil. largest in-state contributor to the anti-Waterfront Protection Ordinance campaign, are Texas-based To give its campaign the gloss of public support, Big ExxonMobil, Canadian Exxon subsidiary Imperial Oil highlighted the faces and voices of prominent Oil Limited and Canadian energy giant Suncor local officials and businessmen in its campaign ads, Energy. mailers and websites. But behind the scenes, out- of-state corporations and global experts at engi- • The anti-Waterfront Protection Ordinance neering “astroturf” campaigns were hard at work campaign’s “grassroots” outreach was also orchestrating the campaign. controlled from afar. Big Oil retained the Figure ES-1. The Majority of Anti-Waterfront Protection Ordinance Contributions Came from Out-Of-State Interests* Citgo Petroleum Corporation 3% Cianbro Companies PMPL Sprague 2% 19% Gulf Oil 8% 6% AGCMaine 1% Irving Oil Maine Energy 9% Marketers Association 1% American Global Companies, Petroleum Institute LLC 50% 1% C.N. Brown Company <1% In-State Company Out-of-State Company *Sprague Operating Resources and Irving Oil both have headquarters in New Hampshire and therefore considered “out-of-state,” despite the fact that they own some facilities on South Portland’s waterfront. On the other hand, Portland Pipe Line Corp., headquartered in Port- land, is considered “in-state” despite being majority-owned by ExxonMobil, a multinational corporation based in Texas. Executive Summary 5 Maryland-based consulting firm DDC Advocacy to make use of these excellent assets, and that to provide nearly $172,000 in canvassing services includes the possibility of reversing our pipeline, during the campaign. DDC Advocacy advertises and it includes the possibility of moving oil from that its “reach extends across the United States the western Canadian oil sands.” and around the world” and encourages clients to • In February 2014, an API-backed front group “Hire us. We speak the local dialect.” called “Energy Citizens” took out ads in three • Big Oil also hired out-of-state contractors for Portland-area newspapers. The advertisements direct mail and robo-call services, including firms claimed that tar sands oil is “just oil” and that in Iowa, Minnesota and Virginia. “crude oil from