Why Keystone XL Is Everything Obama Wants It to Be

Real Clear Energy ^ | March 10, 2015 | Michael Whatley

[thackney]

As expected, President Barack Obama vetoed legislation from Congress that would have approved the construction of the Keystone XL pipeline, rejecting the creation of thousands of jobs in the process.

However, it did not end the six-year saga for building the 1,179-mile pipeline that would deliver 830,000 barrels of oil per day of Canadian and American crude oil to U.S. refineries. The fight will go on, even though Congress was unable to override the president’s veto.

Fortunately, President Obama never closed the door. As noted in his message to the Senate, there remains an ongoing National Interest Determination (NID) process by the U.S. State Department. This process evaluates the project’s expected impact on our country’s “security, safety, and environment.”

Five environmental analyses have already been completed by the U.S. State Department, and each has demonstrated that the Keystone XL pipeline is not only in our nation’s best interest economically – and therefore, should be approved by the State Department and the president– but that it could even be an environmental ally.

Here’s why: The pipeline will boost U.S. energy security – significantly. It would further strengthen North America’s current energy renaissance by ensuring greater energy self-sufficiency. Getting oil from a friendly neighbor and not an overseas rival will safeguard American consumers from the volatility of relying on overseas energy exporters. It would also create thousands of much-needed jobs.

Even better for consumers is that new supplies of U.S. and Canadian oil have led to a global lowering of oil prices, which will help American consumers save hundreds at the pump this year. Still, the U.S. and Canada must expand and improve its energy infrastructure if we are to continue our new position as a world leader in energy. After all, Gulf Coast refineries continue to import 1.8 million barrels of crude oil a day from the Organization of the Petroleum Exporting Countries (OPEC), including hundreds of thousands of barrels per day from Venezuela. Keystone XL alone could displace this Venezuelan crude with Canadian and U.S.-sourced oil, ousting the politically unstable nation for our energy equation.

And despite what misguided opponents fighting tooth and nail to deny construction say, the Keystone XL pipeline is good for the environment. In fact, the U.S. Department of Transportation (DOT) states that “pipeline systems are the safest means to move [oil and natural gas] products.” The former head of the federal Pipeline and Hazardous Materials Safety Administration (PHMSA) Brigham McCown adds that new pipeline technologies and designs have increased the safety of pipelines, leading to a “50 percent decrease in serious accidents over the last decade.” With TransCanada having agreed to 59 extra safety conditions above federal requirements, experts believe Keystone XL will be the safest pipeline ever built.

On the president’s final metric – the environment – the focus has been on how the project will affect carbon emissions. Several studies have found that Keystone XL will actually lower, not increase, greenhouse-gas emissions associated with moving oil to U.S. refineries. Likewise, the State Department’s analysis of the project’s potential environmental consequences showed that it would have a “negligible impact” on carbon emissions because the oil sands in Canada would be developed regardless of whether the cross-border pipeline is built. If the pipeline were built, according to the State Department analysis, greenhouse-gas emissions from the project would total some 1.44 million metric tons per year. This would account for about 0.022 percent of the total U.S. carbon emissions reported in 2012, which was 6.5 billion metric tons, the lowest amount in 20 years.

The numbers don’t lie. Building the Keystone XL pipeline is a win-win for consumers, both economically and environmentally. After six years of reviews and studies, it’s time for President Obama to listen to the State Department, Congress, and the American public and grant the permit to build Keystone XL.

[bray]

Gas prices have reversed direction and increased 40% since he vetoed the bill. He sent a message to the world we are not serious about energy either.

Pray America is waking up

[thackney]

Gas prices have reversed direction and increased 40% since he vetoed the bill.

Where have gasoline price increased 40% in two weeks? The veto was Feb 24th.

Refinery strike, fires and seasonal swaps started the price climb before the veto.

Even measured from the bottom did, we don't get close to 40% rise.

[bray]

I was buying for 1.97 then and now it is 2.89 and climbing. That is 40%.

[thackney]

Where did prices rise 40% in two weeks?

[RGF]

Good for the environment. How many bbls a day do trains burn moving this oil? How in the world do they think a pipeline is more dangerous than moving trains or tankers? The enviros are not interested in the environment, just power.

As far as the recent derailments go, maybe XL or other pipelines don’t service the same markets and therefore could not have prevented these specific accidents. But maybe if the train crude moving infrastructure wasn’t so over burdened, maybe the best resources could be used.

[minnesota_bound]

830,000 barrels per day divided by 700 barrels for each train tank car carries equals: 1100 railcars per day for Warren Buffett and Bill Gates railroad.

[nascarnation]

I have a difficult time finding the daily relationship between petroleum commodities and building a pipeline that wouldn’t be in operation for several years.