Okay, we've got a problem. Where do we strike a balance between competing values? What are our priorities to be, and how are we to decide. Most importantly, are we prepared to live with the consequences of whatever choice that we make?

I'm talking, of course, about the balance between the competing values of energy independence from the Middle East and a clean environment. Why do those two values compete? Well, because the Canadian crude oil is different from the Middle Eastern variety, and requires a different refining process. In addition, it enters the US in different locations than the Middle Eastern oil, and so is best refined near those ports of entry.

BP has recently received permits to expand a refinery on Lake Michigan in Whiting, Indiana, and has been granted environmental waivers to allow an increase in pollutants from the current level. At first blush, that doesn't look good -- until one realizes that this leads to a decrease in dependence on Middle Eastern oil and the increases still keep the plant's discharges below the levels set by the EPA. Indeed, during the planning process BP repeatedly reduced the amount of planned emissions by incorporating new technologies to make the refinery more environmentally friendly. Indeed, given that there has not been a new refinery built in this country since the Cater administration, this expansion could set the standard for future refineries while also providing the opportunity to shut down or modernize existing refineries that emit greater levels of pollution -- something that I am all for, given my proximity to the petrochemical plants here in the Houston area.

Oh, by the way, what are we talking about when we discuss new pollutants. The Chicago Tribune offers the interesting statistic that the plant will be allowed to release 54 percent more ammonia and 35 percent more sludge into Lake Michigan each day. That sounds horrific -- until you look a little closer and see that this really means that the releases into the lake are 99.9% water and the sludge will be treated separately and not dumped into the lake at all -- and that the plant has in recent years reduced the emission of solids into Lake Michigan by 40%. Indeed, the major pollutant to be released -- ammonia -- will be released at less than half the level permitted under state and federal guidelines. Hardly sounds like the environmental catastrophe that some want to make it.

But what it really comes down to for me is that there will have to be additional refineries built. We are decades away from doing away with fossil fuels as the major source of our energy, an our refining infrastructure needs to be brought up to the needed capacity and higher environmental standards. that is what this plant does -- and with similar cooperation between government and industry, we could see improvements in our energy independence and environment in the process.

Posted by: Greg at 11:41 PM | No Comments | Add Comment
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