U.S. to re-route Keystone XL due to environmental concerns

ironsides

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Typical Democratic response.
WASHINGTON (Reuters) - President Barack Obama on Wednesday blamed his Republican opponents for imposing an "arbitrary" deadline on his review of TransCanada Corp's plan to build the Keystone XL Canada-to-Texas crude oil pipeline, which led to its rejection.
"This announcement is not a judgment on the merits of the pipeline, but the arbitrary nature of a deadline that prevented the State Department from gathering the information necessary to approve the project and protect the American people," Obama said in a statement. "I'm disappointed that Republicans in Congress forced this decision."
(Reporting By Alister Bull and David Alexander; Editing by Sandra Maler)

 

Durry

House Member
May 18, 2010
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It's to bad the p/l got cancelled for now. I see TCPL plans to reapply so let's hope it gets approved by the latter part of 2014.

It would certainly be nice if politics stayed out of the pants of business. Unfortunately when politics combined with public ignorance gets involved, the results are usually anti-business. Not sure how these losers think the governments gets all their money to fund all the social programs these same losers demand of their governments ????
 

ironsides

Executive Branch Member
Feb 13, 2009
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Building new refineries will take an additional 4-10 years, they are massive projects to construct. Would be much better to bring the oil to working refineries.
 

mentalfloss

Prickly Curmudgeon Smiter
Jun 28, 2010
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Fox news

Fox news?

FOX NEWS

Six reasons Keystone XL was a bad deal all along

In announcing his decision to not grant permission for the Keystone pipeline extension, opponents of President Obama argue the president gave in to pressure from environmental activists.

In reality, the president was resisting an artificial deadline from Republicans trying to force his hand.

But the fact is, for the good of our country and our economy, rejecting the Keystone XL deal was the best decision possible.

Here are six facts about the proposed Keystone XL deal that make clear why the pipeline was a bad deal for America and why it deserved to be rejected:

1. Keystone XL Would Not Reduce Foreign Oil Dependency

The oil to be sent through Keystone XL pipeline was never destined for US markets. In its own presentation to investors about the proposed pipeline extension, TransCanada (the company behind Keystone XL) boasted that most if not all of the extracted and refined oil would be exported --- sold in oversees markets where oil fetches a higher price (and thus turns a higher profit for the company).

2. Keystone XL Would Have Increased Domestic Oil Prices

Currently, Canadian oil reserves stored in the Midwest help suppress gas prices in the United States, particularly for farmers in our nation’s heartland.

In its permit application for the pipeline, TransCanada noted that the Keystone XL pipeline would allow the company to drain these reserves and export that fuel as well. According to TransCanada’s own statements, this would raise gas prices in the United States, especially in the Midwest.

3. Keystone XL Overstated Number of Jobs to be Created


In 2008, TransCanada’s original permit application to the State Department said the Keystone XL pipeline would create “a peak workforce of approximately 3,500 to 4,200 construction personnel” in temporary jobs building the pipeline.

By 2011, now facing growing opposition to the pipeline, TransCanada had inflated these numbers (using undisclosed formulas) to 20,000. Supporters of the proposal, backed by big oil, have since trumpeted these trumped up numbers.

4. Current Keystone Pipeline Leaked 12 Times in Last Year

The pipeline that the Obama administration has rejected the permit for would be an extension of a pipeline that has already leaked -- not just once, but 12 times in the last year.

While TransCanada tried to dismiss these leaks as “minor” averaging “just five to 10 gallons of oil” each, the leak on May 7, 2011 near Millner, N.D., spilled about 21,000 gallons of oil in total.

5. The Environmental Concerns About Oil Leaks Are Justified

Nebraska’s Republican Governor Dave Heineman strongly opposed the Keystone XL project because the pipeline would run through a massive and vital aquifer in his state the supplies clean drinking water to over 2 million Americans plus water that fuels the region’s agriculture industry.

Building the pipeline might have created a few thousand temporary jobs but even a minor oil spill in or near the aquifer would have jeopardized hundreds of thousands of jobs, not to mention the health and safety of millions.

Meanwhile, in Michigan where a similar tar sands pipeline spilled over 840,000 gallons of crude oil into the Kalamazoo River in 2010, residents are still complaining of headaches, dizziness and nausea while studies continue to look at the long-term effects of just being near such an oil spill when it happens.

6. Mining Tar Sands Would Worsen Global Warming

Assuming you believe, like the vast majority of the world’s scientists, that climate change is both real and of concern, the Canadian tar sands are the second largest carbon reserve in the world.

Mining these reserves would release all of that carbon into the atmosphere, to detrimental effect on our environment. Sure, Canada might go ahead and mine the tar sands anyway, but the United States doesn’t have to help pollute the planet and our own states in the process.

No matter how you look at it, the Keystone XL proposal was a slimy, scam of a deal. America is better than that.

We can create good-paying jobs that build our families and our economy for the future without hurting our environment today.

We can invest in innovative energy technology that not only reduces our dependence on dirty fuel but also puts us in the lead in critical, emerging markets.

We can prioritize good jobs and a competitive economy of the future, with all the upsides of American energy production and innovation and far, far fewer of the downsides that Keystone carried.
Let’s focus on more of those deals going forward.

Six Reasons Keystone XL Was A Bad Deal All Along | Fox News

 

ironsides

Executive Branch Member
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There already is a pipeline heading to Cushing operating now, Keystone would just increase capacity, and it will happen next year.
 

mentalfloss

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There already is a pipeline heading to Cushing operating now, Keystone would just increase capacity, and it will happen next year.

I'm sure there are tons of pipelines that already exist that are not Keystone XL.


Alberta Government urged EPA to disregard oilsands emissions in Keystone decision

OTTAWA — The Alberta government has acknowledged that the Obama administration had accurate information about environmental impacts of oilsands development, but unsuccessfully urged it to disregard the industry's footprint on the planet's climate in an evaluation of the Keystone XL pipeline project, newly released correspondence has revealed.

The letters, exchanged between Alberta Environment, the U.S. Environmental Protection Agency and Canada's U.S. Ambassador Gary Doer, reveal new aspects of a Canadian lobbying campaign to persuade the Americans to exclude climate change from its final decision about the expansion of TransCanada's proposed Keystone pipeline expansion project. The proposed expansion would link the oilsands industry with refineries on the Gulf Coast of Texas.

But the EPA's top officials said in separate letters that the U.S. government should factor in the entire footprint of oilsands pollution in the decision since it affects its own citizens as well as the rest of the world.

"Given that the possible consequences of greenhouse gas emissions are global in nature, they include potential impacts on the United States, and we believe it is appropriate that the State Department consider these upstream greenhouse gas emissions in its evaluation," EPA Administrator Lisa Jackson wrote on Dec. 7, 2010 in response to a letter from Doer.

Doer had told Jackson in a Nov. 3, 2010, letter that Canadian government officials were "concerned with the EPA's recommendation that extraction-related GHG emissions in Canada" be included in the environmental assessment of the pipeline project.

The correspondence was released by Environment Canada in response to a request made through access to information legislation.

Doer's exchange with Jackson followed similar correspondence between Alberta Environment's assistant deputy minister, Ernie Hui, and the EPA's assistant administrator, Cynthia Giles, in September and October of the same year.

Hui accepted the EPA's estimates about environmental impacts of oilsands, but suggested that they were being taken out of context.

"The numbers referenced in your letter in terms of impact of oilsands, while generally consistent with figures that we have estimated, do not necessarily convey an accurate picture of impacts relative to other alternatives," wrote Hui on Sept. 24. "While we respect the intent of your input to this process, we also believe that the impacts occurring outside your jurisdiction are not substantive to the assessment of this pipeline. Particularly given that they are being demonstrably addressed and managed by the relevant jurisdiction, in this case principally Alberta, as well as the government of Canada."

Hui suggested in his letter that Alberta and the federal government were already acting to crack down on pollution from the sector.

But according to a recently released secret presentation from Environment Canada, "the oilsands are Canada's fastest growing source of GHGs." The oilsands now produce more annual greenhouse gas pollution than all cars on Canadian roads and almost as much pollution as all of the light-duty trucks and SUVs in Canada, according to the most recent statistics from Environment Canada.

"Despite repeated efforts, lobbying from the governments of Alberta and Canada do not resonate with the U.S. EPA," said Danielle Droitsch, a former Alberta resident who directs the Canada Project as a senior attorney at the Natural Resources Defense Council, a U.S.-based environmental group. "Canada's deteriorating record on climate is well known and tarsands is a major reason for that. Rather than heed EPA's concerns and address the problem in Canada, they have continued to lobby at the expenses of their own credibility."

Droitsch said that the only way to address international concerns about the oilsands is through action and not rhetoric.

http://www.canada.com/business/urge...sion+letters/6015341/story.html#ixzz1juQRstz7
 

captain morgan

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The Fox article is disingenious at best... But I do like the comment about the crude in the p/l destined for overseas markets. Fact is, that crude doesn't belong to TransCanada, it belongs to the client whom TCPL ships it for so the decision to sell it internationally is not TCPL's doing.

In the end, this circumstance will add a lot of momentum to the Enbridge line to the West coast and as we all know, KXL will go through - it's only a matter of a few years.

I'm sure there are tons of pipelines that already exist that are not Keystone XL.


Over 20,000 miles of it through Nebraska alone.
 

mentalfloss

Prickly Curmudgeon Smiter
Jun 28, 2010
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In the end, this circumstance will add a lot of momentum to the Enbridge line to the West coast and as we all know, KXL will go through - it's only a matter of a few years.

A few years?

I thought it was supposed to be next year? lol

The jobs prospect on this thing was so overbloated that people are starting to wake up to it being an economic ruse. And on the environmental side of things, it looks like one of the accelerators to the project was avoiding the reality of "climate change".

Redford must have paid quite a bit for that failed lobby attempt.
 

captain morgan

Hall of Fame Member
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A few years?

I thought it was supposed to be next year? lol

Who knows? Your messiah Obama seems to be in the habit of flip flopping in a short time line.

Now that he's on the campaign trail, I'm guessing that if he hears how the voters want jobs, he just might find a 'lost report' (carelessly placed under some magazines no doubt) that will sing the economic praises of KXL.

The jobs prospect on this thing was so overbloated that people are starting to wake up to it being an economic ruse. And on the environmental side of things, it looks like one of the accelerators to the project was avoiding the reality of "climate change".

Sure it was.. I guess that the US Feds are just imbeciles in that they made the econ and enviro case last time around.

Too bad they didn't have that Fox News report last time around, eh?

Redford must have paid quite a bit for that failed lobby attempt.

Call up Redford in a year or so and ask him then... He'll be singing a different tune,
 

mentalfloss

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Call up Redford in a year or so and ask him then... He'll be singing a different tune,

Redford is a woman, lol


Keystone pipeline: How many jobs really at stake?

(MoneyWatch) President Obama's move Wednesday to reject a permit to build the Keystone XL pipeline drew fire from supporters of the project, with a spokesman for House Speaker John Boehner telling CBS that the decision threatens to "destroy tens of thousands of American jobs."

Yet exactly how much work Keystone, a proposed 1,700-mile pipeline that would transport oil from Alberta, Canada, to the Texas Gulf Coast, would generate remains in dispute. Transcanada (TRP), the energy giant bidding to build the pipeline, projects the undertaking would create 20,000 jobs in the U.S., including 13,000 positions in construction and 7,000 in manufacturing.

That figure, based on a report by a consulting firm hired by Transcanada to assess the project's economic impact, has been widely cited by Keystone backers on Capitol Hill. Other estimates advanced by supporters of the pipeline have been even more optimistic, with the U.S. Chamber of Commerce claiming it could create 250,000 permanent U.S. jobs.

But subsequent analysis suggests that Keystone's job-creating potential is more modest. The U.S. State Department calculated last year that the underground pipeline would add 5,000 to 6,000 U.S. jobs. One independent review of Keystone puts that number even lower, with the Cornell University Global Labor Institute finding that the pipeline would add only 500 to 1,400 temporary construction jobs. The authors of the September report also said that much of the new employment stemming from Keystone would be outside the U.S.

Transcanada itself cast doubt on its employment forecast when a vice president for the company told CNN last fall that the 20,000 jobs Keystone would create were temporary and that the project would likely yield only "hundreds" of permanent positions.

Another reason for the discrepancy appears to stem from what that 20,000 figure really means. As Transcanada has conceded, its estimate counted up "job years" spent on the project, not jobs. In other words, the company was counting a single construction worker who worked for two years on Keystone as two jobs, lending fuel to critics who said advocates of the pipeline were overstating its benefits.

The Cornell researchers concluded:
The construction of KXL will create far fewer jobs in the U.S. than its proponents have claimed and may actually destroy more jobs than it generates....

The claim that KXL will create 20,000 direct construction and manufacturing jobs in the U.S. is unsubstantiated. There is strong evidence to suggest that a large portion of the primary material input for KXL -- steel pipe -- will not even be produced in the U.S.​
In a statement, President Obama attributed the decision to block construction of the pipeline to "the rushed and arbitrary deadline insisted on by Congressional Republicans," saying it "prevented a full assessment of the pipeline's impact, especially the health and safety of the American people, as well as our environment."

The furor is likely to continue, highlighting the intense election-year politics around Keystone. In urging Obama to approve the project, for instance, Boehner said on Wednesday that the pipeline would create 100,000 new jobs.

Keystone pipeline: How many jobs really at stake? - CBS News
 

mentalfloss

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U.S. shrugs off Ottawa’s warnings over Keystone XL

The Obama administration is unfazed by Canadian warnings that delays in the Keystone XL pipeline review will add urgency to Ottawa’s effort to ship crude oil to China, U.S. Ambassador David Jacobson says.

In an interview Thursday, Mr. Jacobson insisted that President Barack Obama’s rejection of TransCanada Corp’s pipeline permit should not be seen as a judgment on the merits of the project, or the desirability of importing more oil sands bitumen.

Prime Minister Stephen Harper expressed his “profound disappointment” at the decision Wednesday to reject the current application, while Natural Resources Minister Joe Oliver said the further delay underscores the need for Canada to diversify its markets for crude exports and develop routes to rapidly expanding Asia.

In condemning the ruling, Republican house Leader John Boehner accused President Obama of “shipping American energy security to China.”

But Mr. Jacobson made it clear that this week’s decision was not the administration’s final word on the Keystone XL project. “I know it should not be perceived as a rejection of the pipeline but instead as a rejection of this 60-day time line that was imposed with the extension of the payroll tax deduction,” Mr. Jacobson said.

The ambassador rejected Republican suggestions that the U.S. should fear Canadian efforts to expand oil exports to China.

“I don’t see it as a threat, quite frankly,” he said. “And people who perceive it as such don’t understand trade. I assume that with or without the Keystone pipeline, Canada will seek to open up markets around the world, including China, for energy and for all of its other products, just as the United States does."

“The more things that Canada sells around the world, the more U.S. content goes into those products or the more U.S. equipment goes into extracting those products, and the more money there is in Canada to buy things in the United States. That’s the nature of trade: we all win.”

U.S. shrugs off Ottawa’s warnings over Keystone XL - The Globe and Mail
 

ironsides

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mentalfloss

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Lobbyists are on all sides, but when our own government gets caught for lobbying, it's extra juicy.

As the project erodes away, it's clear that the U.S. is really starting to pick up on the job's front anyway.

Keystone XL not dead, but how many shippers will flee?

Question of shippers for Keystone
Producers have stuck by TransCanada. While the project is still seen as going ahead, the question now is "when and how many contracts flee," said analyst Chad Friess of UBS Securities Canada.

Mr. Friess does not expect a mass exodus, but he does see some erosion before a completion date in the second half of 2014. "The 830,000 barrel-a-day XL project carries significant contractual commitments ... critical to the economic viability of the pipeline," Mr. Friess said.

"The majority of these shippers were content with the revised approval timing of Q1 '13 but we do expect some migration of commitments towards Enbridge's Gulf Coast alternative, though not enough to condemn the project," he said in a research report.

"The key question will be whether a refile will add further delays to the [Department of State's] original guidance. Ultimately, the results of this fall's presidential election may now play a significant role in the approval timing."

TransCanada said in mid-December that more shippers had signed off, bringing to more than 1.1 million barrels a day for the full Keystone pipeline system, which includes an existing route.

U.S. jobless claims fall
Bit by bit, the jobs crisis in the United States is easing.

Initial claims for jobless benefits declined sharply last week, by 50,000 to the lowest since the spring of 2008, according to data today from the Labor Department.

These numbers are traditionally volatile, particularly at the beginning of the year, but the four-week moving average also dipped, though by 3,500, to 379,000.

It's important to note that that's below 400,000, seen as a key level for continued job creation.

In Canada, the number of people collecting regulator jobless benefits was little changed in November, at 539,000, Statistics Canada said.

Keystone XL not dead, but how many shippers will flee? - The Globe and Mail
 

coldstream

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I consider this good news for Canada, and that little twit Harper's plan to solidify Canada's place in permanent colonial status as an exporter of unrefined raw materials.. all to the benefit and ownership of huge American multinationals.

Harper continues to show himself, with his lame threat of shipping all the oil to China, as an one of the great wimps and shills for the Global trading oligarchy. He lacks imagination, courage, vision, integrity and any sense of patriotism... just a big loser we're stuck with.. for a while.

btw.. the job loss in the U.S. is estimated by a university study.. is likely to be 2 - 4 thousand temporary construction jobs lasting a couple years. Small potatoes. This is all about profits for the multinationals.. not jobs.
 

mikemac

Nominee Member
Oct 13, 2008
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Fox news
1. Keystone XL Would Not Reduce Foreign Oil Dependency

The oil to be sent through Keystone XL pipeline was never destined for US markets. In its own presentation to investors about the proposed pipeline extension, TransCanada (the company behind Keystone XL) boasted that most if not all of the extracted and refined oil would be exported --- sold in oversees markets where oil fetches a higher price (and thus turns a higher profit for the company).

Harper would have known about this too. When you consider the price of gas is less expensive in the States than it is in Canada even though Canada is the US's biggest oil supplier this is next to treasonous on Harper's part. Refine it in Canada then sell it to the highest bidder.
 

Spade

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Nov 18, 2008
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In recent weeks, the wholesale price - adjusted for taxes and exchange- of gasoline is only a little higher in Canada than in the US. At times the differences can exceed 20%.
 

mikemac

Nominee Member
Oct 13, 2008
82
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I looked into this back in November Spade. This is what I found.

Well first it would have to be explained why the price of gas in the US is less than what it is in Canada.

In Texas and most southern States they are paying between $3.05 and $3.14 per US gallon, with some places less than $3.05. In parts of California, Oregon and Washington state the price could exceed $3.79 per US gallon. So between less than $3.05 per US gallon to more than $3.79 per US gallon.

3.79 litres = 1 US gallon

In Canada we are paying between less than $1.107 (in Alberta) to more than $1.373 per litre. Convert that to US gallons and we can see that Canadians are paying between less than $4.19 per US gallon (in Alberta) to more than $5.20 per US gallon in other parts of Canada.

$1.107 x 3.79 (1.10700 x 3.79 = 4.19553)

1.373 x 3.79 (1.37300 x 3.79 = 5.20367)

Now tell me how to hell does that happen when Canada is the main supplier of oil to the US? We are giving away our natural resources at penny on the dollar prices to a foreign entity whether we sell them refined oil or export it unrefined.

PS - I had to edit this post because from the time I started it to the time I finished it the price of gas went down in Alberta and up in other parts of Canada.

Sources
USA National Gas Price Heat Map - GasBuddy.com
Canada National Gas Price Heat Map - GasBuddy.com
Gallon to Litre Conversion / Convert Gal to L / US Gallon to Litre / Convert US Gallons to Liters ( US Gal to L )