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Murphy Oil Expansion:
Wrong Place at the Wrong Time

A columnist recently extolled the supposed economic virtues of expanding the Murphy Oil refinery on the shores of Lake Superior (Murphy Oil and the gross receipts tax 8-21-07). Unfortunately — and as is too often the case — the columnist pushing this idea took a limited view when calculating the potential profits should the plant be allowed to expand: instead of looking at the total costs when tallying up the bottom line, he failed to include line items for costs associated with public health threats and environmental degradation. Likewise Mr. Balgord neglected to note that expansion of the refinery would jeopardize the economic value that Lake Superior brings to the area: recreational boaters on the Great Lakes already spend more than $2 billion annually, and Great Lakes anglers and hunters spend more than $6.5 billion annually. Moreover, the manufacturing, shipping, agriculture, and tourism economies that rely on the Great Lakes are valued at the hundreds of billions. Given these figures it becomes clear that the Great Lakes are quite valuable without an expansion by Murphy Oil. And if we cleaned up the lakes, instead of polluting them, they would be even more valuable.

Expansion of the Murphy Oil refinery would increase that facility's potential to pollute: along with sulfur dioxide and toxic mercury, Murphy Oil emits pollutants that worsen global warming, threaten public health, and impair water quality. Processing tar sands, as Murphy is proposing to expand on, is inefficient and one of the worst forms of oil refinery resulting in more greenhouse gases and carbon emissions per barrel than other potential energy sources.

One need not research too deeply to find that Murphy Oil already has a dismal track record when it comes to environmental compliance. In 2002, Murphy Oil emitted 20 times their limit of sulfur dioxide, and — though they tried to hide the fact — were penalized. Apparently not taking this lesson to heart, throughout 2003 Murphy Oil continued to violate air emission standards, and was fined again.

Murphy Oil's proposed refinery expansion is in an environmentally sensitive location. Situated on Lake Superior's shore and surround by over 400 acres of valuable wetlands, a Murphy Oil expansion will pose an exceptionally great risk to our cleanest Great Lake — Lake Superior. In fact, Lake Superior is called out under the Great Lakes Water Quality Agreement for a zero increase of discharge of water pollutants, in order to protect and restore the water quality. An expansion by Murphy Oil would certainly upset what is already a delicate balancing act.

When all the facts are analyzed, pushing for expansion of a technology that perpetuates an insecure energy future, exacerbates environmental degradation and threatens public health, Murphy Oil's proposal is, as the balance sheet will show, a bad idea for our state's economy. Wisconsinites deserves a healthy economy that doesn't take a toll on public health and our environment.

Melissa Malott, Water Program Director
Clean Wisconsin, 608.251.7020 ext. 13