Bloomberg boo-boos big.

How do you get to be the 11th richest man in the world and have employees who make ridiculous mistakes? I hate to embarrass a guy such as Michael Bloomberg but he put his name on Bloomberg News to try to give it some credibility. Of its current 20,000-plus employees, he needs to hire some knowledgeable editors to make sure the reporters get it right.

On October 12, I came across a business news article that was clearly credited to Bloomberg News. While the headline writer might have been local, it stated that Chinese companies were loading up on a Canadian bargain: Along with saving about US$ 50 a barrel, Asian refineries “want Western crude’s rich bitumen.” At first, I thought it was just a headline writer’s error.

But no, the story actually was written as to give the impression that bitumen came from Western Canada’s crude oil. Not only that but the writer suggested that bitumen was itself desirable as “a black residue used to build everything from roads, to runways and roofing.” That is correct in that those are traditional uses for bitumen. The writer could also have noted that the ancient Phoenicians also used bitumen to caulk the bottoms of their galleys that plied the Mediterranean.

But bitumen is also a source of synthetic crude oil. I sincerely doubt that anyone would ever want to figure out a method to add carbon molecules to crude oil to turn it into bitumen. As it is, refineries converting bitumen to synthetic crude oil end up with huge piles of what is known as bitumen slag that is almost pure carbon. It is one of the most polluting processes in the refining industry. It would certainly be a strange commodity to promote through one of Michael Bloomberg’s companies, when he has such an impressive reputation as an environmentalist.

One of the reasons for the renewed interest in Asia for Canadian bitumen is the current unrest in Venezuela. Venezuela has what many believe are much larger reserves of high-grade bitumen-like oil, that is often referred to as extra heavy oil. It is easier to refine and leaves less pollution in its path.

And if Bloomberg wants to write about the world oil industry, it should make sure its reporters know what they are talking about.

-30-

Argumentum ad absurdum

Having written the foregoing about Bloomberg’s confusion about bitumen over the weekend, imagine my surprise Monday morning when David Olive of the Toronto Star used the same incorrect information. He could at least have credited the Bloomberg article as his source. The Toronto Star editors even used the same Canadian Press picture to illustrate Olive’s story.

I am not accusing David Olive of plagiarism here but he certainly needs to check his sources better. He should be well aware that Western Canada Select and Canadian Heavy Oil are just tar sands companies’ euphemisms for tar sands bitumen.

It is nice to know that David Olive is also bullish for bitumen—it goes so well with the Toronto Star’s hypocrisy about global warming.

Copyright 2018 © Peter Lowry

Complaints, comments, criticisms and compliments can be sent to  peter@lowry.me

Comments are closed.