Oil Sands

Dan Soltesz marks the one-year anniversary of President Obama’s visit to Cushing to launch the southern portion of the Keystone XL pipeline with his blog on why he supports the project.

What would you think if I told you that the United States had an opportunity to create thousands of jobs? What would you think if I told you that we had the opportunity to help stabilize the supply of oil to the United States? What would you think if I told you we could do this while not only strengthening our economy, but the economy of one of our closest allies? I promise you all that this is no joke, it’s the Keystone XL Pipeline Project. The Keystone XL project is a golden opportunity that if approved, would benefit Americans in numerous ways.

The United States has been struggling over the past several years to get out of the recession we are currently facing. We have been working to lift ourselves out of it, but we just have not been successful. The jobs that are going to be created are not just those to build the pipeline itself, but will go much further than that. Once the pipeline is completed and the oil starts moving to the refineries in the Gulf of Mexico, it will be American workers that refine the oil, and these regions will see new industries and businesses develop and grow. This will not only help our nation domestically, but also on an international stage.

Currently, the United States imports large amounts of oil from nations in the Middle East and South America that do not have our best interests at heart. To continue to rely on these countries for our energy puts us at a severe disadvantage. Instead of sending our money to these nations, the choice to support one of our closest allies, Canada, should be an easy one. The Canadian and American economies will benefit from the construction of the Keystone XL project and we will be supporting a friend and fellow democracy.

One issue that is being raised is the exporting of fuel. Companies that are producing and refining oil into gasoline, diesel, and other fuel might export some of their products, this may happen. The need for fuel in the United States is great and many of these companies already keep a great deal of their product in the United States for domestic use, but it is needed in other places throughout the world, such as Mexico and Europe. America is helping these nations, many of which are our allies, to fuel their economies. Even if the fuel is exported, it could still benefit all of us when we go to the pump. The price of oil is set on a global scale and the cost of a barrel of oil is greatly affected by how much oil is being produced and who is controlling its production. This project will not only benefit us, but everyone.

For these reasons and countless others, the construction of the Keystone XL Pipeline Project is a win for the United States and should begin immediately.

You can also find Dan's blog post on the Energy Citizens Voices Diary on RedState

Energy Citizen Rusty Weiss prompts the Obama Administration to take action on the Keystone XL pipeline.

Four and a half years. Approval by 10 federal agencies, including the Environmental Protection Agency. Study upon study demonstrating the economic and energy independence benefits to our nation. Bi-partisan support.

And yet, despite the campaign promises of the President, a decision on the Keystone XL pipeline continues to sit, and the only thing seemingly preventing a commitment is a desire to placate environmentalists who care more about publicity for their absurd protests than the bi-partisan facts supporting the project.

But now, as Christopher Knittel of Bloomberg News points out, it’s time to face reality.

While the President continues to side with eco-extremists through inaction – extremists that believe construction of the pipeline will mean ”game over” for the climate, extremists that hope people “go crazy” and “chain themselves to the White House fence” in order to stop construction – our nation continues to suffer the consequences, missing out on progress that would result in tens of thousands of jobs, hundreds of thousands of barrels of oil per day, and countless opportunities for revenue.

Reality reveals a different story. The Keystone pipeline is a clear economic and environmental winner, not the end game that radical activists claim it will be.

First, pipelines in general, despite their negative connotation in the media and amongst fringe groups, are among the safest, most environmentally friendly forms of energy transportation in existence.

Billions of gallons of crude oil and petroleum-based fuels are safely transported across America by pipeline each year. On the rare occasion that a leak does occur, they are minor and easily contained. In over 80% of pipeline spills, leaks involve fewer than 50 barrels of oil, while a vast majority involves fewer than three.

Second, original opposition to the pipeline’s construction focused on a proposed route through an aquifer in Nebraska. Since then, a more environmentally friendly route has been proposed causing environmentalists to shift their focus to a perceived threat of global warming.

In other words, no matter what is done to appease the opposition, they will continue to shift the goalposts in an attempt to stop progress on Keystone.

Don Canton, a spokesman for Senator John Hoeven (R-ND) surmises that, ”After four years, the Keystone XL pipeline is perhaps the most exhaustively reviewed projects of its kind ever and already includes a climate review”.

Meanwhile, Michael Whatley, Vice-President of the Consumer Energy Alliance (CEA), testified in front of Congress that he supports the new pipeline route, stating that his studies demonstrate “that the Keystone XL pipeline will be one of the safest pipelines ever constructed”.

And of course, there are the American people who have spoken. A clear majority, at 70%, say build the pipeline.

The choice seems pretty clear to most Americans. Will the President ignore both the American people and scientific facts, and continue to let far-left protestors influence his decision-making from the White House?

Mr. President – It’s time to face reality.

It’s time to build.

You can also find Rusty's blog post on the Energy Citizens Voices Diary on RedState

Energy Citizen Kate Maroney shares why Washington needs to make a comprehensive energy strategy - that includes the Keystone XL pipeline - their top priority.

At a time when the future generations of this country are saddled with almost $17 trillion in debt to repay and actual unemployment flirts between 14% and 15%, we need to embrace an “all the above energy policy” that not only fortifies our national security, but also the munificent resources that grace the soils and sands of the Western Hemisphere.

Enter Canada…

We should no longer be held hostage to special interest groups and tumultuous foreign governments who have successfully kept us from developing our own oil and natural gas here in North America. Just shy of five years ago, the Keystone XL pipeline was proposed. This potential conduit of prosperity would create a direct connection between Canada’s ripe oil sands and U.S. refineries in the Gulf coast. Such a connection would increase our energy security, create jobs, and stimulate economic growth.

You see, Canada and the U.S. share more than just a long border. We share many of the same values, including a commitment to democracy, the rule of law and environmental stewardship.

Four government environmental impact statements have concluded that the pipeline would present no significant harm to the environment. The Alberta oil sands produce a mere 0. 001% of the world’s carbon emissions and the crude will find its way to market one way or another. And that is the reality of the situation, folks. Canada will sell their resources one way or another. We have to ask ourselves, do we want to act? Building the pipeline will promote North American energy independence and create tens of thousands of American jobs, putting over $2 billion in workers pockets

Recently, Representative Ed Whitfield, R-Ky., of House Energy and Commerce Committee said, “We have the unique opportunity at this particular time in our nation’s history to really be energy independent.”

Jack Gerard, President/CEO of the American Petroleum Institute says, “It’s very realistic that we could be energy secure as a nation. … It’s been estimated by the Energy Information Agency that we could be the No. 1 oil producer in the world by 2020, surpassing Saudi Arabia. It’s a game-changing opportunity, and it’s of historic proportions.”

The Obama Administration has been sitting on its hands, and this country is crying out for action, not only for energy independence, but for a solution to the economic problems that face this country.

I would like to see Congress and President Obama make the adoption of a comprehensive energy strategy their top priority. It should not only utilize American taxpayer dollars into renewable and alternative energy technologies for the future, but use the resources we already have in abundance – oil and natural gas. If completed, the Keystone XL pipeline would have a significant, positive impact on U.S. jobs and growth. It will provide well-paying jobs, boost the American economy as a whole, as well as enhance our national security, and we must act now.

You can also find Kate's blog post on the Energy Citizens Voices Diary on RedState.

Cross posted from Kyle on the Energy Tomorrow blog, this article debunks the claim that the Keystone XL pipeline will only export crude oil and petroleum products straight to China.

One of the more ridiculous arguments against the Keystone XL is that the pipeline is really just about exporting crude oil and petroleum products to China.  Let’s go to the facts:

Here’s a breakdown of the U.S. crude oil supply in 2011 – using data from the Energy Information Administration (EIA).  We see that 99.7 percent of the crude oil produced or imported into the U.S. was processed here.  We simply do not export crude oil in any significant way.  Nor is that likely to change.

According to the EIA, increased imports of Canadian oil sands crude oil would likely replace declining heavy crude imports from Mexico and Venezuela and Ecuador (the two OPEC members in Latin America).  Heavy crude imports from those countries are 900,000 barrels per day lower than their 2005 levels and are projected to decline by an additional 540,000 barrels a day by 2020 and 845,000 barrels a day by 2035.  Because of these declines the additional Canadian crude arriving in the U.S. Gulf via the Keystone XL pipeline wouldn’t be likely to create a surplus.  In the review of the Keystone XL project the EIA concluded that “Without a surplus of heavy oil in PADD III, there would be no economic incentive to ship Canadian oil sands [crude] to Asia via Port Arthur.”

So like I said in the beginning, the idea that we will be exporting en masse the crude oil transported by the Keystone XL pipeline is a particularly ridiculous bit of politics.

Now on to the petroleum products.  What are those, anyway?

Refineries manufacture a variety of products from a barrel of crude oil – gasoline, diesel, heating oil, bunker fuel, etc. and they need markets for every product they produce.  We are our own best customer, but the U.S. has a long history of exporting certain petroleum products and importing others to balance refinery outputs and global demand.  Most of the products exported are not on-road fuels like gasoline and diesel (ULSD). In fact, exports represent just 8 percent of the motor gasoline and ULSD produced in the U.S.

Any petroleum products exported are still refined in U.S. refineries by U.S. workers, and the U.S. benefits from an improved balance of trade from any and all exports such as grains, steel, machinery and ethanol.

Stopping refiners from exporting products with low U.S. demand will have little positive effect and will threaten their ability to remain competitive globally.  U.S. refineries need a global trade in petroleum products to balance supplies and preserve U.S. refining jobs. And having a stable, secure source of crude oil, such as from Canada via the Keystone XL, enhances U.S. energy security regardless of how much may ultimately be exported as product, because those exports can be reduced or eliminated in times of crisis.

Which brings us to President Obama’s recent State of the Union address, in which he touted domestic manufacturing, secure energy and exports as key building blocks for the future.  Those are the words.  Meanwhile, down the street members of the president’s own party are pushing an effort to curb exports by a domestic manufacturer that would result in less energy security.  These are the actions.

This political dance of promising one step forward while taking two steps back has got to stop – we need to be moving forward.

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Originally posted on the Energy Tomorrow Blog: http://energytomorrow.org/blog/a-look-at-the-keystone-xl-export-argument/