18 Eylül 2012 Salı

Keystone XL Pipeline - You Don't Get a Much Better Example of How Anti-Business (and Petty) This Administration is

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There is one thing that really gets me about the battle over whether the Obama Administration will permit the building of a pipeline to carry oil from Canada to oil refineries in the United States. That is that this battle is going on at all.Really, at it's simplest level, the Keystone XL pipeline is a business project. A pipeline.

Sure there are regulations to be met and it will have to be done a certain way for the project to be safe and to protect the environment. But for such a project to involve the President of the United States to not just get involved, but to become the center figure in this issue is just crazy.

Worse is how the President decided to get involved, in that he shelved making any decisions on permitting this private business project to go ahead until after the 2012 Presidential election, well over a year away. Delaying not only the project itself, but all the jobs that come with it.

This of course did not sit well with lots of people, and members of Congress decided that the President should be forced to act one way or the other on this pipeline. And amazingly, word is coming out that the President will use this prodding as an excuse to kill the project.
Republicans hailed inclusion of the pipeline provision as a victory, but Democrats said the practical effect of the language would be to kill the project.“They’ve just killed the Keystone pipeline. They killed it because they forced the president to make a decision before he can make it so he’s not going to move forward with it,” said Sen. Barbara Boxer (D-Calif.), chairwoman of the Senate Environment and Public Works Committee and an ally of environmental groups.Sen. Carl Levin (D-Mich.) said he was not concerned about giving in to Republicans on the Keystone provision.“The president is apparently just going to use the option given to him not to let it go [forward],” said Levin. “There’s a waiver in there which we understand the president is going to exercise.” - The Hill
As a reminder, they are all talking about whether a pipeline will be built. And it's not like this is a new idea. As the map below illustrates, the United States is already covered by pipelines. Then there is the Trans-Alaska Pipeline, built in one of the world's most sensitive, and environmentally brutal climates. Nor would this be the first oil pipeline from Canada either. The only reason this pipeline is having problems is because this is the first time the US Government was being run by an Administration that is both anti-business, anti-jobs and anti-oil.
(Map found here) 
Apparently, the excuse that will be used to kill this project will be the risk to the environment that this project popes. This of course is a lie. As it stands, sending oil by pipeline is not only the cheapest way to move oil, but it is also the safest.

The alternatives to moving liquids by pipeline are moving them by tanker truck, ships and barges.

Liberals however like to pretend that this oil will somehow just remain in the ground if they put up enough roadblocks in the way of getting this oil to market. This of course will never happen. Instead the oil will most likely be sent through existing pipelines to be exported by tanker. In which case others will benefit for America's stupidity. Worse, some of this oil may still end up at the same refineries that it was destined for via the pipeline. See the map to get a reminder of how far oil from the Middle East travels to get to the US. Taking this oil from Canada is a no-brainer, even if it has to travel a more expensive, more dangerous route. Really, just how do they think we get oil pumped out of the ground in Alaska?

Is it possible that there will be an accident over the lifetime of this pipeline. It sure is possible. But this also goes for all the alternative methods of moving this oil, all of which carry a greater risk of a mishap. Even better, the oil transported by this pipeline will reduce the US need for other foreign oil coming by ship. I understand that there are concerns about the process involved in extracting the oil from the ground. This however is irrelevant to this debate, as the Canadians are going to extract it regardless. And frankly, if we are going to look into issues like this, then why not look at the human rights abuses being conducted in the countries we currently buy our oil from?
To conclude, beware of the regulators who claim to be acting on projects like this for our benefit. It is just not true. Take the DEEPWATER HORIZON disaster. 'Environmental Concerns' are part of the reason why oil companies are drilling in such deep water far offshore. Simply, the thinking appears to be, lets make it as difficult as possible for the drillers to operate and then lets crucify them when there is an accident. Here is a thought, if you want to reduce the risk of accidents, and want to increase our chances of dealing with problems when they come about, how about letting these companies drill closer to shore in shallower water. Everything is easier, from finding your keys lost overboard, to drilling on the seabed. 

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