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The Cost of President Obama's Keystone XL Dithering

Politics gets in the way of the TransCanada project that would have brought jobs and energy

February 17, 2012 RSS Feed Print

It's not right to compare the Obama administration's performance in the matter of the Keystone XL pipeline to the Keystone Kops. Yes, the bunglers of the Charlie Chaplin silent movies are so busy blowing whistles that they arrest the victim while the bad guy makes off with the swag. But that was very funny, and the confused cops didn't know what they were doing. The administration knows full well what it is doing.

It has not gone so far as to kill the proposed 1,700-mile underground pipeline to carry crude oil from Canada to American refineries on the Gulf of Mexico. That might play badly against the president's vision in his State of the Union address of "a future where we're in control of our own energy, and our security and prosperity aren't so tied to unstable parts of the world" (which stand to get a lot less stable, the way things are going). Instead, in Machiavelli's dictum, the president has been willing to wound but afraid to strike. He has contrived an excuse to delay a decision yet again. An environmental impact statement was issued by the State Department on Aug. 26, 2011, the conclusion of three years of reviews and negotiation. The approval process typically takes from 18 months to two years. That's understandable given the variety of concerns and interests a massive project entails about safeguarding water supplies, disturbing local landowners and communities, and restoring the landscape.

[Read Mort Zuckerman and other columnists in U.S. News Weekly, now available on iPad.]

The original Keystone pipeline won approval after two years and is operational. But in 2013, the Keystone XL (extension) will be in its fourth year of review, a Great Dither not justified when the State Department conducted three consecutive environmental reviews to reach its conclusion of minimal environmental impact. In that time, there have been many public hearings to satisfy local communities and private property owners. More than a dozen alternative routes have been surveyed, and TransCanada Corp., the builder, agreed to 57 special conditions beyond current federal pipeline regulations.

The president wants a relatively short section of the route from Alberta through Nebraska reconsidered. It means the State Department will have to agree to a new understanding with Nebraska and secure the governor's approval. Given the long history of Keystone XL, that is not a big deal. By all accounts, it could be done within a couple of months. Yet after three years of satisfying intense reviews, the president says that decision will not come until 2013. Hello? That wouldn't have anything to do, would it, with appeasing a particular left-wing environmental lobby until after the general election?

[Check out the U.S. News On Energy blog.]

It's a calculation which assumes that the voters concerned about the energy future that Obama paraded will be less active than the more extreme environmental lobbyists—who, in fact, will never be satisfied with anything to do with villainous Big Oil. Throwing a sop to the leftist anti-oil campaigners and "four more years" are apparently more important to the president and his campaign advisers than reducing our dependence on those unstable regions he mentioned and maintaining the momentum of the small improvement in the lamentable unemployment totals.

Notably, the Great Keystone Dither does not appeal to labor or indeed to all Democrats. Democratic Sen. Joe Manchin of West Virginia put it well: "I'd rather buy from our closest ally and create jobs in America than push Canada to build a pipeline out to the West Coast of North America so that it ends up going to China. There is no question, this pipeline is a job creator with support of both labor and business. It needs to be built not for the benefit of one political party or one state, but for the benefit of America."

A final go-ahead for the $7 billion shovel-ready project would have supported tens of thousands of jobs now: 20,000 in new, direct well-paid construction and manufacturing jobs, and roughly 100,000 in indirect jobs along the pipeline, according to the developer, TransCanada. But the president's political concerns seem more important than enraging the Canadians, than giving China more edge in economic competition, than the defense and national security interests of truly independent energy.

Tags:
energy,
Obama administration,
oil,
Joe Manchin,
Canada

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http://www.reuters.com/article/2011/11/22/us-oil-pipeline-nebraska-idUSTRE7AL1M120111122

LINCOLN, Neb | Tue Nov 22, 2011 12:50pm EST

(Reuters) - Nebraska governor Dave Heineman signed into law on Tuesday bills to reroute the Keystone XL pipeline away from the ecologically sensitive Sandhills region.

One bill puts into law a compromise agreed with Keystone pipeline builder TransCanada to move the route away from the Sandhills and the Ogallala aquifer. The second bill approves state funding for an environmental study for a new pipeline route not to exceed $2 million.

By law, the governor now has the final say in state government on the new route. The U.S. Secretary of State has the final say nationally.

John N Florida of FL 1:30PM March 14, 2012

None of the oil intended for the Keystone Pipeline will ever go towards the US domestic oil supply - its all going to China. NO question about it.

Recently the largest IPO ever happened in Hong Kong selling stock for the Oil Sands, so the Chinese own the resource and have no intention of selling a drop to supply the US domestic markets. The US doesn't own the resource and won't see any money from selling it. None of the oil will reach the US markets, so it won't help our domestic oil supply. All the oil sludge going through the Keystone Pipeline was always intended for China. Anyone telling you otherwise is lying, most likely working for oil companies or collecting ad revenues for oil companies like Mort here. Canada will be trying to build a pipeline to the West Coast with or without the Keystone pipeline.

The whole gimmick that there will be any jobs coming from the Keystone pipeline is grossly exaggerated for political mockery. The pipeline might at best hire a couple thousand workers to build, and the Canadians already have their own crews ready to come build it. These are boom-bust oil patch jobs of transient workers anyway. The pipeline construction might last a couple months at most and when the pipeline is done, there would only about a hundred permanent jobs to maintain it.

The whole argument for the Keystone pipeline is built on lies. Mort is repeating a number of the lies here well knowing its all fiction.

Its fine if Canada wants to sell its oil to China, but don't ask the US to subsidize it. There is no way we should let the foreign oil companies use eminent domain to seize American property to build the freakin pipeline. The only dithering is that people don't this pipeline as more of the billions in welfare going to foreign oil companies, that are literally trying to buy up our government, just like they have already bought up the Canadian Conservative party and Steven Harper.

The American people see no profit or benefit for the Keystone Pipeline whatsoever, except to prove that our corrupt Congress is owned by foreign oil companies, as much our national media has sold out. If its any consolation to Canada, they know that an ice free Arctic Ocean will be opening up to tanker traffic very soon and they won't have to buy access through the US, like they are trying to do now.

Ron of LA 4:22PM February 29, 2012

THREE THINGS about Keystone:

1. If the Keystone Pipeline doesn't happen, a pipeline will be built to bring the oil to the West Coast, where it will go to China. So the world supply/demand pricing will only be affected to the extent of the marginal extra cost of transporting the oil to China over what it would have cost to transport it to the US Gulf Coast.

2. Aristotle long ago pointed out that Democracy was the best of polities only because the perversions of the forms (Kingship and Aristocracy) were worse. Democracies, he pointed out, are very inefficient. That's what is happening with regard to the Keystone Pipeline.

3. So let's not blame it all on Obama. He's just playing his appointed role as a politician in a Democracy. We can blame Obama for not breaking out of the box and asserting what is right over what is politically expedient.

stevchipmunk of PA 12:49AM February 26, 2012

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