The biggest lease holder in Canada’s oil sands isn’t Exxon Mobil or Chevron. It’s the Koch brothers.

[one...two...tree 2,762]

You might expect the biggest lease owner in Canada's oil sands, or tar sands, to be one of the international oil giants, like Exxon Mobil or Royal Dutch Shell. But that isn't the case. The biggest lease holder in the northern Alberta oil sands is a subsidiary of Koch Industries, the privately-owned cornerstone of the fortune of conservative Koch brothers Charles and David.

The Koch Industries subsidiary holds leases on 1.1 million acres -- an area nearly the size of Delaware -- in the oil sands region of Alberta, Canada, according to an activist group that studied Alberta provincial records. The Post confirmed the group’s findings with Alberta Energy, the provincial government’s ministry of energy. Separately, industry sources familiar with oil sands leases said Koch’s lease holdings could be closer to two million acres. The companies with the next biggest net acreage positions in oil sands leases are Conoco Phillips and Shell, both close behind.

What is Koch Industries doing there? The company wouldn't comment on its holdings or strategy, but it appears to be a long-term investment that could produce tens of thousands of barrels of the region's thick brand of crude oil in the next three years and perhaps hundreds of thousands of barrels a few years after that.

The finding about the Koch acreage is likely to inflame the already contentious debate about the Keystone XL Pipeline and spur activists and environmentalists seeking to slow or stop planned expansions of production from the northern Alberta oil sands, or tar sands. Environmental groups have already made opposing the pipeline their leading cause this spring and Senate Majority Leader Harry Reid has called the Koch brothers Charles and David “un-American” and “shadowy billionaires.”

The link between Koch and Keystone XL is, however, indirect at best. Koch’s oil production in northern Alberta is “negligible,” according to industry sources and quarterly publications of the provincial government. Moreover, Koch has not reserved any space in the Keystone XL pipeline, a process that usually takes place before a pipeline is built. The pipeline also does not run anywhere near Koch’s refining facilities. And TransCanada, owner of the Keystone routes, says Koch is not expected to be one of the pipeline’s customers.

Still, the activist group that is publicizing the figures about Koch holdings in the oil sands – the International Forum on Globalization – is arguing that Koch will benefit indirectly. The IFG contends that the Keystone XL pipeline will create competition among rail and other pipelines and lower transportation costs for all oil sands producers, bolstering profit margins and making additional reserves economically viable.

“IFG’s intention is to demonstrate the Koch-Keystone connection,” says IFG’s Victor Menotti.

This new report is the second one IFG has issued in six months about Koch Industries and the oil sands. Last October, IFG said that Koch owned two million acres in the oil sands; now it says the true figure – based on the Alberta provincial government’s mineral lease records that it links to -- is smaller but still an impressive, industry-leading 1.1 million acres.

Koch is not generally known as a major stakeholder in the oil sands where the major players have been the likes of Royal Dutch Shell, Conoco Phillips, Suncor, Exxon Mobil and Chevron. Chinese companies have about a 5 percent stake in current production, according to a report by IHS CERA.

Suzanne Bayley, a biological sciences professor at the University of Alberta who studies the oil sands, said she was surprised to learn of the Kochs’ holdings, calling them "significant” given the fact that the total leased area in the region amounted to 35 million acres.

Koch Industries would not say how many acres of oil sands leases it holds in Alberta and would not comment on the IFG report.

http://www.washingtonpost.com/blogs/wonkblog/wp/2014/03/20/the-biggest-land-owner-in-canadas-oil-sands-isnt-exxon-mobil-or-conoco-phillips-its-the-koch-brothers/

Edited March 24, 2014 by Porterhouse

[mota bhai 2,675]

I fail to see the problem. I'd rather the Koch Brothers own it than some ChiCom or Saudi conglomerate.

[deleted-05292014 331]

I fail to see the problem. I'd rather the Koch Brothers own it than some ChiCom or Saudi conglomerate.

Mota why you always on the Koch?

[I AM NOT THAT GUY 5,715]

Hippies hate success. It makes them feel guilty, but not guilty enough to actually get off the drugs, take a bath, and contribute something useful to society.

[lostinblue 1,989]

Why is it bad that the Koch industries are involved in oil.... other than they support traditional conservative values.

[Mr. Big Dog 10,747]

I sense a certain obsessions with Kochs.

[deleted-05292014 331]

I don't hate the Kochs bc they are rich. I don't like them because they undermine our democracy with their influence.

I don't see Warren Buffet out there rigging elections, running shadow PACs, and buying votes.

I like making money. I like people who are successful. I know the Kochs do good things with their money but doesn't overshadow all the bad stuff they do too imo.

Bill Gates is a good example of a 1%er who does good with his earnings.

[I AM NOT THAT GUY 5,715]

Bill Gates is a good example of a 1%er who does good with his earnings.

You wouldn't think so if you actually knew Bill Gates.

[deleted-05292014 331]

You wouldn't think so if you actually knew Bill Gates.

I know he has done a lot throughout the world for AIDS, especially in Africa with his foundation. Admittedly I don't know a whole lot else he does with his money, care to shed some light?

[Mr. Big Dog 10,747]

You wouldn't think so if you actually knew Bill Gates.

The Bill and Melinda Gates foundation is funding a great K-12 program in my county. Think they are putting $100 million into improving education outcomes in the public schools of one of the largest school districts in the country. The children in this school district - my daughter and the children in my extended neighborhood - benefit directly from their generosity.

[Karee 4,190]

The Bill and Melinda Gates foundation is funding a great K-12 program in my county. Think they are putting $100 million into improving education outcomes in the public schools of one of the largest school districts in the country. The children in this school district - my daughter and the children in my extended neighborhood - benefit directly from their generosity.

All that good pales in comparison to the damage he has done to the world with his "Windows" software.

[Pooky 3,784]

All that good pales in comparison to the damage he has done to the world with his "Windows" software.

Especially Windows Vista.

[unsmiley 111]

I don't hate the Kochs bc they are rich. I don't like them because they undermine our democracy with their influence.

I don't see Warren Buffet out there rigging elections, running shadow PACs, and buying votes.

I like making money. I like people who are successful. I know the Kochs do good things with their money but doesn't overshadow all the bad stuff they do too imo.

Bill Gates is a good example of a 1%er who does good with his earnings.

For every loaded right winger, there is a billionaire left winger trying to influence things. But the libs never acknowledge this fact, and of course the media pretends they don't exist, or worse, ignores the fact that they also try to influence policy and elections with their money. I'm talking about George Soros, Tom Steyer, and their ilk. So stop whining about the Koch brothers, unless you whine about these others too.

[deleted-05292014 331]

For every loaded right winger, there is a billionaire left winger trying to influence things. But the libs never acknowledge this fact, and of course the media pretends they don't exist, or worse, ignores the fact that they also try to influence policy and elections with their money. I'm talking about George Soros, Tom Steyer, and their ilk. So stop whining about the Koch brothers, unless you whine about these others too.

Ah you misread me. The topic of discussion were the Koch brothers not George Soros. I have stated previously in other threads that I despise citizens united ruling and that it has been generally bad for the country. That goes for both parties. I did specifically mention Warren Buffet because while he is an avid supporter of Obama he did not donate to any of his super pacs.

http://www.cbsnews.com/news/warren-buffett-says-he-wont-donate-to-obama-super-pacs/

(CBS News) - Despite his public backing of President Obama, billionaire investor Warren Buffett won't be donating money to any of the outside groups supporting the president's bid for re-election.

"I don't want to see democracy go in that direction," the Berkshire Hathaway chairman and chief executive officer said over the weekend at his company's annual shareholders meeting, according to Bloomberg News. "You have to take a stand some place."

[lostinblue 1,989]

Warren Buffet got what he was after in the first election. No keystone pipeline.... He owns the rail lines that haul the oil south to the gulf.