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New Keystone XL study falls flat

Although a new report from a Swedish group called the Stockholm Environment Institute has gained a lot of attention from the anti-energy crowd, unbiased analysts dismiss its claim that Keystone XL could result in carbon emissions four times greater than U.S. State Department estimates.

Here’s part of what Forbes had to say in their article, Recycled Keystone XL Report Doesn’t Add Up:

Professor Andrew Leach penned an insightful article earlier this week titled, “A paper on Keystone’s Climate Impacts Would Fail Econ 101.”, calling out the economic miscalculations of the report. Professor Leach argues the recycled report based its findings on faulty assumptions, resulting in a report riddled with fallacies.

It is difficult to imagine how SEI’s report passes muster.  In fact, the federal government has now authored five different studies on the subject. The reports support the claim the project will not adversely affect the environment. The KXL fight has been a “Green Herring” for years, lasting longer than American involvement in WWII.

Canadian oil is finding, and will continue to find its way to market.  In saying this, every credible report reaches the same conclusion, bringing the oil to market via pipeline will remain the safest, greenest, and most efficient way to transport crude to market.

We can probably expect more attempts to discredit Keystone XL, as long as the Obama Administration continues to delay approving construction of this worthwhile project that is supported by over three-quarters of the American public.

Keystone XL is a crucial link in a long-range plan that could support 500,000 U.S. jobs and give us access to twice as much North American oil as we now import from the Middle East.  It is a mystery to most of us why it is taking the Administration so long to make a decision.

Crude oil exports could mean big things for U.S. economy

Although the Obama Administration did conclude that two companies can export a lightly distilled type of ultra-light oil called condensate, despite the 39-year old ban on U.S. exports of crude oil, the full economic potential of crude oil exports remains out of reach.  Experts have predicted that large-scale exports of even the now-sanctioned condensate will not materialize.

That’s too bad, because allowing American oil producers – who are rapidly approaching the point where their output is likely to outpace the capacity of domestic refiners – would give the U.S. economy a tremendous shot in the arm.

As FuelFix reported in May, a study conducted by IHS found that lifting the export ban would:

  • Trigger $746 billion in investment from 2016 to 2030, causing domestic oil production to climb 1.2 million barrels per day more than if the trade restrictions remained intact.
  • Lower gasoline prices by 8 cents per gallon on average, as U.S. crude hits the world market and adds to supplies used by refiners around the globe.
  • Support an additional 394,000 direct and indirect jobs per year on average through 2030, as a result of the increased economic activity tied to the rise in crude production.

Another analysis of crude oil exports, by ICF International and EnSys Energy, predicted that the abolishment of current restrictions could increase domestic oil production by half a million barrels a day and reduce the U.S. trade deficit by $22 billion in 2020.

Energy Citizens urges the administration and Congress to approve more exports of domestic crude oil.  The benefits we stand to gain are clearly too good to ignore.

Time to Approve the Keystone XL Pipeline

For six years, President Obama has been considering whether or not to approve the Keystone XL Pipeline. Six years is a long time. But there is no indication that the president will make a decision any time soon. The Beaumont Enterprise is calling on the president to end the delay:

The political games that have delayed the pipeline have gone on too long. President Obama has said he will approve it unless it significantly increases carbon pollution. There's still no evidence that will happen, and he needs to stop making excuses to placate environmentalists.

He needs to show bold leadership - now - so the northern leg of it can brings jobs and oil to a weak recovery that needs both.

We agree. The American people want the Keystone XL Pipeline to be built. The State Department has studied it again and again, finding it will not cause any significant environmental impact. It’s time to get moving and let this important part of our nation’s energy infrastructure be built.

Washington Post Endorses Crude Oil Exports

There’s a move in Washington to lift the outdated ban on crude oil exports. This ban, dating back to the 1970s, was written for an era of U.S. energy scarcity. It does not make any sense when our nation is in the middle of an energy revolution.

The editors of the Washington Post understand this. In a recent editorial, they explained the benefits that would come to the U.S. by updating our nation’s crude oil export law:

“A new report by IHS Global explains why that thinking is outmoded. Actually, the report notes, allowing U.S. producers to sell their light crude abroad, where more refineries are equipped to process it efficiently, would incentivize additional U.S. production and job creation. At the same time, increasing the world supply of crude oil would translate into lower world prices for other heavier grades of crude, which U.S. refineries do use, and for gasoline. That, in turn, would be reflected in moderate gas prices in the United States. The IHS study estimates free trade in U.S. crude oil could save U.S. motorists $265 billion between 2016 and 2030. This does not count the geopolitical benefits of bringing a stable new source of supply onto world markets to offset those from Iraq, Libya and other trouble spots.”

Our energy laws shouldn’t be stuck in the 1970s. They should reflect the reality of today’s energy production. It’s time to change the outdated crude oil export law. 

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