How the Toxic Tar Sands Industry Fuels the Ubiquitous Aluminum Can

Driving south from Vancouver, Canada, towards Seattle, the scenery is perfectly pastoral with rolling hills and grazing cows. But suddenly, dominating the horizon, the view is interrupted by a phalanx of refinery towers shooting white-gray plumes into the sky. These industrial spires of BP's Cherry Point refinery loom high over Whatcom county, a lush border region a little more than 100 kilometers north of Seattle.

Washington State's largest refining complex provides jet fuel, gasoline and diesel to markets up and down the west coast of North America. I had driven there on a rainy morning last month, hoping to learn more about the economic alchemy that transforms crude oil from Alberta's oil sands and elsewhere into ever ubiquitous aluminum beverage cans.

Cherry Point plays a little known but critical role in the manufacture of these cans -- in fact one-sixth of the world's output would not be possible without an industrial substance produced here in massive volumes each day.

Every year 100 billion soda, beer, and juice cans are cracked open by North Americans each year, almost one can for every person every day. That vast market suggests that transitioning off fossil fuels to halt climate change will be more complicated than the oft-proclaimed solution of switching to a greener forms of transportation.

From Alaska to Alberta

Inside a low brick building at the front of the BP refinery, I shook hands with Bill Kidd, BP's local director of external affairs. “How're you doing?” he exclaimed with a broad smile that made lines appear at the corners of his eyes.

The 52-year-old Kidd, dressed smartly in sleeveless black sweater, slacks and white dress shirt, led me to what passes here as a spacious corner office. Here he explained how Cherry Point is a showcase of North America's oil-boom past and its more troubled future. With the dwindling of easy oil that has gushed from the ground for the last century, the energy industry is in a full-bore search for rich, new reserves, including the oil sands of western Canada.

Built by the Atlantic Richfield Company (ARCO) in 1971 specifically to process crude oil shipped from Alaska's North Slope, Cherry Point was acquired by British Petroleum after the two companies merged in 2000. Today BP (the company dropped the original name in 2001) has become North America's largest oil and gas producer. The company generated profits of US$16.6 billion in 2010 even after a deadly explosion at its offshore Gulf of Mexico Macondo rig created the worst environmental disaster in U.S. history.

For over a decade, the massive Prudhoe Bay reserves and other frigid deposits nearby helped supply refineries on the west coast. Indeed Cherry Point still memorializes those early glory days with a four-foot tall sculpture of a flower with sheet metal petals surrounding an old Prudhoe Bay drill bit.

But production, which peaked at 2.1 million barrels per day in 1989, “has fallen off a cliff,” Kidd told me. Today, daily yield has plummeted to just over 600,000 barrels.  

The refinery now sources only half its oil from Alaska, with places as varied as West Africa and Russia helping make up the difference, Kidd said. Most significantly, up to 14 percent of Cherry Point's current crude supply can be traced back to Alberta's vast oil sands reserves, according to trade research conducted by the Borealis Centre for Environment and Trade Research, based on data from the U.S. Department of Energy.

“How much we use specifically is sensitive information,” Kidd told me when I asked him about the figure. “But that is not an outlandish number.”

From Crude to Can

About 90 percent of the crude oil that gets pumped into Cherry Point comes out as gasoline, diesel and jet fuel -- the bread and butter of North America's refining industry. But the Washington state complex is unique in that it is one of the world's leading providers of a substance essential to the aluminum industry.