The Lead

A precise new study found Canada’s oilsands could acidify an area the size of Germany in northern Alberta and Saskatchewan.

The study was published by the Journal of Atmospheric Science, identifying more than 330,000 square kilometers of land in northern Alberta and Saskatchewan that has already absorbed acid deposits concentrated enough to damage life in lakes and rivers. “If emissions continue at 2013 levels, there will be ecosystem damage over a very large area,” Environment Canada scientist and lead author on the paper Paul Makar said.

Researchers gleaned data by testing the characteristics of 90,000 lakes to determine the acid concentration at which they could not longer buffer. The potential consequences of acidification from oilsands emissions include reduced growth in trees and water plants, while fish and the bugs they rely on for a food supply would get sick and have trouble reproducing. The study shows some lakes may be much better equipped to withstand acidification and acknowledges that sensitive lakes as far east as Manitoba could be impacted. The conclusions of the model rest on 2013 emissions levels, but Syncrude and Suncor say they have made emissions improvements since. Suncor has increased production 20 per cent between 2013 and 2017, while Syncrude has installed an emissions cleaning sulfur scrubber, Global News reports.

In Canada

The federal government’s purchase agreement for Trans Mountain indicates the deal is subject to a U.S. national security review, which could give U.S. President Donald Trump the power to veto the pipeline. The purchase agreement obtained by CBC News says the deal is subject to review by the U.S. Committee on Foreign Investments in the United States, an inter-agency group chaired by Trump’s treasury secretary Steven Mnuchin. Ottawa’s investment in the pipeline and related infrastructure is subject to a review by the U.S. committee because it includes the purchase of the 111 kilometer Puget Sound pipeline, a short spur pipeline branching off from the main line at Abbotsford, B.C., to transport crude toward Washington State refineries. CBC news has the details.

Internationally

Saudi Arabia halted all oil shipments through the Bab el-Mandeb Strait after two of its tankers were attacked Wednesday by Houthis from Yemen. The Houthis are backed by Iran and stated Thursday they have the naval capability to hit ports in Saudi Arabia and other naval targets. Iran has threatened to block the Strait of Hormuz, another strategic Red Sea oil shipping route for Saudi Arabia. Iran and Saudi Arabia have been locked in a proxy war in Yemen, which has coastline on the Bab el-Mandeb Strait. Kuwait said it is discussing whether to stop its own shipments through the straight, Reuters reports.

Saudi Arabia’s suspension of shipments through the strait lifted Brent Crude prices. “The passage is not as crucial as the Strait of Hormuz … but restricted flows through it would have an impact not just for crude but also for products due to the longer voyage time that is needed to sail by the Cape,” said Olivier Jakob from Petromatrix.

On Wednesday morning, Brent Crude was at US$74.63 and West Texas Intermediate was at US$69.24.

Noteworthy

In Opinion

“Unfortunately, Justin Trudeau killed [the Energy East Pipeline] with his dithering and punishing regulatory changes,” writes former federal conservative politician Peter MacKay in the National Post. “The ongoing challenges we face over trade, immigration and productivity generally, though, require a new approach. And that includes revisiting the multi-billion dollar TransCanada Energy East project, to bring Alberta’s oil to the Atlantic coast for export.”