Wednesday april the 18th
radio shalom 1650AM IN MONTREAL
The money and business show
host samuel ezerzer
Richard G. DeWolf, P. Eng.
403-249-6861
via internet
http://www.radio-shalom.ca/site/emissions-1042
Keystone XL ;A pipeline that should or not be built ?
In 2008, Canadian pipeline company TransCanada filed an application with the U.S. Department of State to build the Keystone XL pipeline, which would transport crude oil from the oil sands region of Alberta, Canada, to refineries on the U.S. Gulf Coast.
Keystone XL would ultimately have the capacity to transport 830,000 barrels per day, delivering crude oil to the market hub at Cushing, OKLAHOMA, and further to points in Texas.
TransCanada plans to build a pipeline spur so that oil from the Bakken formation in Montana and North Dakota can also be carried on Keystone XL. As a facility connecting the United States with a foreign country like canada , the pipeline requires a Presidential Permit from the State Department.
In evaluating such a permit application, after consultation with other relevant federal agencies and public input, the department had to determine whether a proposal is in the “national interest.” This determination considers the project’s potential effects on the environment, economy, energy security, foreign policy, and other factors.
A wide range of public comments both for and against the pipeline were received during a subsequent 90-day review period. The State Department noted, in particular, concerns about the pipeline’s route through the Sand Hills region of Nebraska, an extensive sand dune formation with highly porous soil and shallow groundwater.
On january 18th 2012 , The Obama administration rejected a bid to expand the controversial Keystone oil sands pipeline , saying the deadline imposed by Congress did not leave sufficient time to conduct the necessary review."The rushed and arbitrary deadline insisted on by Congressional Republicans prevented a full assessment of the pipeline's impact, especially the health and safety of the American people, as well as our environment,"
On February 27, 2012 TransCanada announced that it would proceed with development of the Keystone XL segment connecting Cushing, OK, to the Gulf Coast as a stand-alone project not requiring a Presidential Permit. The company also informed the State Department that it intended to file a new Presidential Permit application “in the near future” for the segment of the Keystone XL project from the Canadian border to Steele City, NE, with a future supplement to the application specifying an alternative route in Nebraska. The company has stated that it expects to establish the new route by October 2012. The Obama administration supports TransCanada’s plan to proceed with the southernmost segment of the Keystone XL pipeline while reserving judgment on a reconfigured northern segment until completion of a new Presidential.
Will the Keystone XL lessen U.S. dependence on foreign oil ?Will American refineries export this oil to overseas markets? Does the delay put at risk a vital piece of the historic economic relationship that binds the world's largest oil market the USA and its largest supplier Canada? How important is the KEYSTONE XL pipeline to unblock the bottleneck that is built in the system? Will Keystone XL will it increase gas prices for Americans—Especially Farmers? And How many jobs will be created in the USA and Canada?
today we will discuss the Keystone XL pipeline and much more with Richard DeWolf, a professional engineer, he has been involved in the oil and natural gas industry for over 35 years in Canada and the United States.
My name is Samuel Ezerzer, your host to the Money & Business show on Radio Shalom, CJRS 1650 AM. Thank you for tuning in live with our Business studios headquarters in Montreal, the financial capital and the home to the greatest hockey team, the Montreal Canadians. We have another great show for you today and as always, you can call if you have any questions, comments, or criticisms on today's topic. Please call us direct at 514 738 4100 ext 200 or email me at moneyandbusinessshow@gmail.com if you have any inquiries. You can also visit our website at http://www.radio-shalom.ca/ – all our shows are archived there. I work as Financial Consultant for T.E MIRADOR or TE WEALTH. TE MIRADOR has been providing Corporate Executives, CEO ‘S, families, employers and employee with independent wealth management and Financial education services since 1972. You can visit our website for my contact information at http://www.temirador.com/
Topic ;Keystone XL ;A pipeline that should or not be built ?
BIOGRAPHY
Rick DeWolf is a Professional Engineer and independent energy consultant. Rick has been consulting to most sectors of the oil and natural gas industry for over 20 years, while being involved in the oil and natural gas industry for nearly 35 years.
Rick is a noted energy consultant which considerable experience respecting oil, liquid and natural gas pipelines in Canada and the US
Development issues related to new and proposed oil and natural gas pipelines
Regulatory and legislative issues related the development and operations
Rates, tolls and tariff analysis and design, including the development of revenue requirement and tolling models
Cost Allocation and affiliate transfer pricing
Transportation and storage portfolio evaluation
Rick has testified before the NEB on numerous occasions related to the construction, and economics related to all the major energy pipelines in Canada.
small talk
richard you specialized in the areas of:
Development and implementation natural gas and liquid pipelines rates and tariff design
Development of regulatory processes and frameworks related to the administration and operations of pipelines and gas distribution systems
can you explain the high gas prices at the pump in Canada when oil drops in price?
Richard , Enbridge wants to ship more Alberta crude to the East. During the years of the national energy program, at the request of the government, Enbridge built a pipeline (Line 9) from Sarnia, Ont., to Montreal refineries to take western oil to the East. These days, that line carries African and Middle Eastern crude from Montreal to Sarnia.? Most people dont know about this pipeline?
(Enbridge wants to reverse Line 9 to take western light crude oil to refineries in Ontario at Nanticoke. That could include synthetic crude from the oilsands.
Enbridge can deliver Alberta crude for up to $10 to $15 a barrel cheaper than East Coast refineries can buy offshore oil. The pipeline reversal, which must be approved by the National Energy Board, would bring an additional 150,000 barrels a day from the West.)
QUESTIONS
U.S. President Barack Obama proposed higher penalties for companies accused of oil market manipulation and sought more money for government oversight on Tuesday, trying to blunt the impact of high energy prices on his re-election chances, its average is 4$ /gallon . Republicans, blame Obama's energy policies for high gas prices, immediately called the effort ----a political ploy.Richard Gasoline prices have surged nearly 50 cents US since late January, as tensions in the Middle East and supply disruptions bolstered oil costs. Obama has spent weeks trying to show he is on the case to bring down energy costs over the short- and long-term; Can he actully control and ensure there is no illegal manipulation of gas prices ?and does he have the tools to stop it?
(Civil penalties for firms involved in market manipulation would rise to $10 million from $1 million and would be assessed for each day the manipulation occurs rather than on a per-violation basis under the new proposal. Maximum criminal penalties would rise to $10 million as well. The White House also asked Congress to give the Commodity Futures Trading Commission authority to require traders to have more collateral when they trade oil in an effort to reduce risky trading. Obama is also calling for more funding to increase CFTC surveillance and enforcement staff and to improve technology. "At a time when American consumers are feeling pain at the pump, it is critically important to ensure that illegal manipulation, fraud and market rigging are not contributing to gas price increases," the White House said in a statement. "If there's fraud going on, the administration has the tools to stop it," said Brendan Buck, spokesman for Republican speaker of the House of Representatives John Boehner. "The truth is the president's policies are restricting American energy production, and he's looking for a scapegoat. The American people aren't going to buy it." )
President Obama said he is calling on his administration "to cut through red tape, break through bureaucratic hurdles," for the Keystone xl pipeline to be built - lets hear a clip
http://www.cbsnews.com/8301-503544_162-57402437-503544/southern-leg-of-keystone-pipeline-a-priority-obama-says/
-.001-1.41
Richard The President wants to make the Southern leg of the controversial Keystone pipeline "a priority. for his re-election"? Its seems that Mr. Obama wants to remind voters that he's not opposed to domestic oil drilling?
(Though Obama's original decision to block the pipeline cheered environmentalists, who make up an important part of his political base, those same supporters expressed dismay at his statement on Thursday. "President Obama has taken a dangerous wrong turn on energy," said Larry Schweiger, president of the National Wildlife Federation.)
Richard can you provide a brief history of Oil pipelines in canada ?
In the next 10 years, more than 500 projects representing over $500 billion in new investments are proposed across Canada example the KEYSTONE XL pipeiline;
In 2010, the natural resource sectors employed more than 760,000 workers in communities throughout the country. The mining and energy sectors alone represent 10 percent of the Canadian economy and 40 percent of our exports. The potential for job creation and economic growth is enormous Richard?
Keystone XL will it not lessen U.S. dependence on foreign oil ?
Some people see Keystone XL as an export pipeline ; Richard do the Gulf Coast refiners plan to refine the cheap Canadian crude supplied by the pipeline into diesel and other products for export to Europe and Latin America.?
(Proceeds from these exports are earned tax-free. Much of the fuel refined from the pipeline’s heavy crude oil will never reach U.S. drivers’ tanks).
The U.S. Pipeline Safety Administration has not yet conducted an in depth analysis of the safety of diluted bitumen (raw tar sands) pipeline, despite unique safety concerns posed by its more corrosive properties. TransCanada predicted that the Keystone I pipeline would see one spill in 7 years. In fact, there have been 12 spills in 1 year. The company was ordered to dig up 10 sections of pipe after government-ordered tests indicated that defective steel may have been used. KeystoneXL will use steel from the same Indian manufacturer. Keystone XL will cross through America’s agricultural heartland, the Missouri and Niobrara Rivers, the Ogallala aquifer, sage grouse habitat, walleye fisheries and more. The agency was not adequately accounting for threats to wildlife, increased pollution in distressed communities where the crude may be refined, or increases in carbon emissions that would exacerbate climate change, and a variety of other issues.
Does it make economic sense to extent the enbridge pipeline to serve Atlantic Canada?
Alberta bitumen sells into the U.S. Midwest at $10 to $20 a barrel less than the world price for oil, partly because a glut of oil there is pushing the price down.
That price disparity is costing Canada's economy billions, and government's huge amounts in lost royalties. A new study from the University of Calgary says Canada would gain $131 billion in gross domestic product from 2016 to 2030 if Alberta crude gets sold to new markets at the world price. That underscores the importance of pipeline expansion?
Reducing demand for oil is the best way to improve our energy security. U.S. demand for oil has been declining since 2007. New fuel-efficiency standards mean that this trend will continue once the economy gets back on track. In fact, the Energy Deptartment report on KeystoneXL found that decreasing demand through fuel efficiency is the only way to reduce mid-east oil imports with or without the pipeline?
-----------------------
JOE OLIVER - appointed Minister of Natural Resources and represents the riding Elington-Laurence in Ontario;
Prior to his election to Parliament, Mr. Oliver had a career in the investment banking industry , began his investment banking career at Merrill Lynch, and served in senior positions at other investment dealers and as Executive Director of the Ontario Securities Commission. He was then appointed President and Chief Executive Officer of the Investment Dealers Association of Canada. He also played a prominent role as Chair of the Advisory Committee of the International Council of Securities Associations and as Chair of the Consultative Committee of the International Association of Securities Commissions. A graduate of the Directors Education Program at the Rotman School of Management, he was also a member of the Canadian Institute of Chartered Business Valuators and sat on the board of the Canadian Securities Institute Research Foundation.
Mr. Oliver is an active member of his community and volunteers for various charities in Canada and abroad. He served as Chair of the Prostate Cancer Research Foundation of Canada for four years and as a member of the Board of Directors at Mount Sinai Hospital.
Mr. Oliver obtained both his Bachelor of Arts and Bachelor of Civil Law at McGill University. He was called to the Quebec Bar and later graduated with an MBA from the Harvard Graduate School of Business.
QUESTIONS
Q-Minister Oliver The Harper Government yesterday, announced, as part of Economic Action Plan 2012, its plan for Responsible Resource Development, which will streamline the review process for major economic projects ; your plan has been received a broad range of strong support across the country from Canadian business and labour leaders, including the Federation of Canadian Municipalities, the Prospectors and Developers Association of Canada, and Canadian Manufacturers & Exporters.
Minister Oliver underscored the importance of responsible resource development to ensure that Canada continues to attract investment in its resource sector, so that the full potential of the country's abundant natural resources is unleashed to stimulate jobs and growth.
“There is a tremendous new global opportunity for Canada to capitalize on its natural resources,” stated Minister Oliver. “Timely and responsible development of natural resources in British Columbia and in all regions of Canada will benefit Canadians through jobs, growth and the revenue needed to support important programs like health, education and pensions.”
“The value of Canada’s mineral production in 2010 exceeded $41 billion and contributed $18 billion to our trade surplus,” said Minister Oliver. “For Canada, for B.C. and for Vancouver — one of the capitals of the mining world — this is a great opportunity, in terms of both exports and participating in mineral development in booming Asian markets.”
(skilled, well-paying jobs in cities and communities across Canada, while maintaining the highest possible standards for protecting the environment,” said Minister Oliver)
Q-The Harper Government is focused on jobs, growth and long-term prosperity,” Minister Oliver. you said yesterday that “The emerging economies in Asia and around the world provide the potential to create even more jobs and growth, now and for the next generation.” ?
Could you provide an update as to the current discussions with the US Government regarding the Keystone Excel Pipeline to ship oil sands production to the US?
Background: Pipelines to the Westcoast·
Gateway – Enbridge Pipeline which is currently under review by a Joint Review Panel·
Kinder Morgan – will be submitting an application to expand its Trans Mountain pipeline which already ships oil and other liquid products to the westcoast·
The Federal Government has clearly stated its support to Canadian oil being shipped to Asia
There has been much criticism by various groups of the Federal Government support of the pipelines to the westcoast and that your government is usurping the regulatory proceed.
Could you:
1. Elaborate on the regulatory process involved in examining these pipelines to help the audience understand the review process?
(Explain why the changes announced by our Government are needed?)
Can you Respond to some of these concerns by native groups and environmentalist that in fact the regulatory process will not be usurped?
Background: TransCanada’s Keystone Excel Pipeline to ship Canadian oil sands to the US·
Any update regarding discussions with the US government?
Some criticism that Canada should increase the upgrading the oil sands rather than shipping it to the US for upgrading
Some criticism has been made that oil sands products should be upgraded in Canada rather than shipping the oil sands production to the US for upgrading; Is it realistic to increase upgrading in Canada? and Even if the oil sands were upgraded in Canada, wouldn’t there be a need for similar pipelines like Gateway, Trans Mountain and Keystone Excel to ship the upgraded product to markets in the US and Asia?
---------------------------------------------------
notes
The Honourable Joe Oliver, Minister of Natural Resources, today addressed the Vancouver Board of Trade to discuss how responsible development of Canada's natural resources will create jobs and economic growth.
Minister Oliver underscored the importance of responsible resource development to ensure that Canada continues to attract investment in its resource sector, so that the full potential of the country's abundant natural resources is unleashed to stimulate jobs and growth.
“There is a tremendous new global opportunity for Canada to capitalize on its natural resources,” stated Minister Oliver. “Timely and responsible development of natural resources in British Columbia and in all regions of Canada will benefit Canadians through jobs, growth and the revenue needed to support important programs like health, education and pensions.”
“The value of Canada’s mineral production in 2010 exceeded $41 billion and contributed $18 billion to our trade surplus,” said Minister Oliver. “For Canada, for B.C. and for Vancouver — one of the capitals of the mining world — this is a great opportunity, in terms of both exports and participating in mineral development in booming Asian markets.”
In 2010, natural resources accounted for about 10 per cent of British Columbia’s gross domestic product and over 5 per cent of jobs in the province last year.
Minister Oliver also emphasized the important work the Government of Canada is doing on regulatory reform and energy prosperity and security.
“Regulatory modernization is a key priority for our government,” said Minister Oliver. “We need a regulatory system that works and provides a competitive advantage for Canada.”
“We have to recognize that the global economic balance is shifting, and it's essential that we adapt to these changes. New, rapidly growing economies are looking for our energy, minerals and forest products. But the world is a competitive place. As attractive as this country is to investors, we can do better,” said Minister Oliver. “Our government is committed to ensuring that Canada can attract the investment it needs to develop its natural resources and to build the infrastructure we need to move our resources to these new markets, which will help to ensure future prosperity for Canadians across the country.”
While in Vancouver, Minister Oliver also met with the Chief of the Westbank First Nation, Robert Louie, to discuss resource development challenges and opportunities. In addition, the Minister toured the Neptune Terminals, where he saw first-hand the last Canadian stop for potash, steel-making coal, bulk vegetable oils, fertilizers and agricultural products from Western Canada destined for markets around the world. And, the Minister visited Westport Innovations Inc., which is a global leader in alternative fuel, low-emissions technologies that allow engines to operate on clean-burning fuels such as compressed natural gas, liquefied natural gas, hydrogen, and biofuels such as landfill gas.
-----------------------------------------------------
---
In late January, the U.S. president halted progress on the Keystone XL pipeline, which will—when it is finally built—bring Alberta syncrude from Oklahoma to the Texas gulf coast. The pipeline currently runs from the Alberta oilsands to Oklahoma. I speculated at the time that Obama had torn a page out of Ontario premier Dalton McGuinty’s 2011 provincial election playbook, which featured a “placate the greens and to hell with the rest” strategy. Essentially, McGuinty had decided to please downtown Toronto environmentalists at the expense of rural voters who oppose industrial wind turbines. That strategy had given McGuinty a very close victory.
Obama’s January Keystone decision seemed to reflect a similar calculation, except Obama’s “Please the Greens” strategy was at the expense of the labour lobby—building Keystone XL would create thousands of high-paid jobs. At the end of my article, I asked
… will Obama’s strategic decision to court the “environmental” lobby at the expense of the Big Labor lobby help him or hurt him as the presidential election year progresses?
It’s impossible to tell what the right answer is. But that’s less important than what Obama thinks the right answer is. And, judging from the way his upcoming decisions are being predicted today, it looks today like the president thinks the right answer is, nixing Keystone XL will hurt him.
Obama appears ready to dump the greens in his effort to win reelection, by reversing his January Keystone decision. The five luminaries who made up the McLaughlin Group on Friday March 23 2012 certainly think so. Go to 27:17 into the following video, and you’ll see all Group members were unanimous in predicting that Obama will approve the pipeline.
------------------------------
Republicans in the U.S. House of Representatives will revive efforts to quickly advance the stalled Keystone XL crude oil pipeline and insist that approval for the project be part of a long-term deal to fund highways and other infrastructure.
Earlier this year, President Barack Obama put a hold on TransCanada's (TRP-T 42.88 0.39 0.92%) $7 billion project, which would ship oil from Canada and northern U.S. states to Texas, because he said it needed further environmental review.
Republicans have attacked the decision by the Democratic president in the run-up to the November presidential elections, saying the United States needs the jobs and the oil as the economy continues to struggle and gasoline prices surge.
Last month, Republicans in the Senate tried to attach approval for the pipeline to a two-year highway funding bill. The bid failed on a vote of 56-42, four short of the 60 needed to pass in the Democratic-controlled chamber. Eleven Democrats voted with the Republicans.
Congress ended up passing a 90-day stopgap funding bill after House Speaker John Boehner, a Republican, struggled to find enough support for long-term financing.
"As Congress now prepares to extend transportation programs and negotiate a longer-term package, the House will insist that the Keystone XL legislation be included as part of the package," the House Energy and Commerce Committee said on its web site on Friday.
The House has already passed legislation that would transfer authority for approving the pipeline to the Federal Energy Regulatory Commission, and would require the regulator to quickly issue permits.
http://www.bnn.ca/News/2012/1/18/Alberta-Premier-responds-to-Keystone-decision.aspx
0.05-
The U.S. State Department’s decision on Wednesday to reject TransCanada’s permit to build the Keystone XL pipeline is reverberating across the Canadian political and business landscape. But Alberta premier Alison Redford is not waving the white flag for Keystone XL, saying it’s “entirely possible for this project to proceed, “We believe this is an important project for Alberta,” she said at a press conference.
---
The Obama administration's move to sideline the Keystone XL pipeline is a major setback for relations between the world's two largest trading partners, and threatens Canada's role as the leading energy supplier to the United States.
The U.S. State Department's decision to force TransCanada Corp. to explore alternative pipeline routes in Nebraska pushes out a final ruling until at least 2013, well after next year's U.S. presidential and congressional elections.
The delay puts at risk a vital piece of the historic economic relationship that binds the world's largest oil market and its largest supplier.
The State Department decision sent a shock wave through Canada's energy industry, an economic stalwart of the country that has for almost six decades counted on the United States as virtually its sole export market. The first dribs of oil began to find their way across the border in 1952, when Canada sent an average 3,900 barrels a day south. That volume has grown nearly 500-fold. In 2009, Canada exported a total of 687 million barrels to the United States, which has previously pointed to Canada as a secure source of friendly oil.
Now that bedrock trading relationship has come into question.
The United States is becoming a "less attractive customer in general for Canada, for not just energy but everything because of their own economic and financial difficulties," said Gwyn Morgan, the former chief executive officer of Canadian gas giant Encana Corp.
"This is just another signal that Canada is going to have to diversify away from the United States, not just in energy but in everything else we can."
Canadian leaders appeared caught off guard by the State Department's ruling, which came days before Alberta Premier Alison Redford was set to promote Keystone XL and Alberta's oil sands industry on a trip to Washington.
Prime Minister Stephen Harper had characterized Washington's approval of the project as a "no-brainer" that would create thousands of construction jobs in both countries and meet U.S. needs for a reliable supply of crude in an unstable world. Now Canada is scrambling for a plan B for its oil.
"Canada will be looking for a buyer and so obviously the Keystone project is one that is proposed and one that we would like to see go forth, but obviously we're a resource-based, energy-based country and we'll be looking at all opportunities," said Sarah McIntyre, a spokeswoman for Harper.
"While we are disappointed with the delay, we remain hopeful the project will be decided on its merits and eventually approved," Natural Resources Minister Joe Oliver said in a statement.
"In the meantime, our government will continue to promote Canada, and the oil sands, as a stable, secure, and ethical source of energy for the world."
The key lesson for Canada in the U.S. decision is that diversifying away from the country's heavy reliance on the U.S. market is now an urgent priority, argued William Robson, president of C.D. Howe Institute, an economic think tank.
"We do want to make sure we aren't hostage just to that one market because they don't treat us as nicely as their self-interest suggests they should," Robson said.
And that will mean pushing ahead with the Gateway pipeline to move oil sands crude to the West Coast and beyond, to markets such as oil-hungry China, he said.
The Keystone pipeline has become hopelessly tangled in U.S. politics in recent months. The State of Nebraska has threatened to legislate moving the pipeline beyond an environmentally sensitive area, known as Sand Hills, which sits in the middle of the massive Ogallala Aquifer - a vital groundwater source for the U.S. Midwest.
Environmentalists saw the pipeline decision as a chance to attack the oil sands, a major source of global warming carbon emissions.
Now Canada's challenge is to ensure other potential markets for Alberta's crude are not hobbled by the same anti-oil-sands forces.
-------------------------------------------------------------------
Oklahoma has a problem: too much oil. TransCanada’s controversial Keystone XL pipeline will solve that problem by shipping excess oil to refineries on the Texas Gulf Coast. BNN’s Brett Harris has more.
http://www.bnn.ca/News/2011/10/7/Keystone-XL-and-Oklahoma.aspx
----
Standing in front of a row of pipes, President Barack Obama pledged on Thursday to accelerate approval of the southern leg of the Keystone XL pipeline, seeking to deflect criticism that his rejection of the full project helped drive up gasoline prices.
The campaign-style stop was immediately dismissed as a stunt by Republicans, saying that Obama doesn't have the authority to really jump start the project. Analysts say it won't likely be finished until 2014 at the earliest.
Rising fuel costs are threatening to derail Obama's hopes of winning re-election in November, and Republicans have honed in on his decision to block TransCanada Corp's Canada-to-Texas pipeline as a sign that his energy priorities were hurting America.
U.S. gasoline prices have jumped nearly 30 cents in the past month, pushing the national average to $3.87 a gallon, according to the Energy Information Administration.
Obama's trip to Cushing, Oklahoma, the starting site of the southern leg of the controversial project, was designed to show his "all of the above" energy strategy included room for oil and gas development in addition to support for renewable fuels.
"Today I'm directing my administration to cut through the red tape, break through the bureaucratic hurdles, and make this project a priority," Obama said, standing without a tie at a podium that was surrounded by rows of green- and copper-colored piping segments.
The White House relished the setting and clearly wanted the photo-op. Bad weather nearly forced Obama to deliver his remarks in an Oklahoma City hotel instead.
It is unclear whether Obama's call would actually speed up the approval process. The Army Corps of Engineers, one of the agencies that is likely to be involved, said on Wednesday it could not estimate how long approval would take since it had not yet seen an application from the company.
"Even with President Obama speeding up the process, we only expect Keystone XL to be operational in 2014 at the earliest," investment house Barclays said in a research note Thursday.
TransCanada, however, said it was waiting to hear from federal agencies, predominantly the Army Corps, to see if any more paperwork would be required to win the necessary approvals for construction.
Republicans dismissed Obama's move as a publicity stunt that made little difference to the timeline of the southern project or the problem of U.S. energy security. "He's taking credit for going forward on the only portion of the pipeline that he doesn't need to approve," said Senator John Hoeven of North Dakota at a press conference. "This is literally straddling both sides of the issue."
Obama rejected the full Keystone XL pipeline earlier this year, blaming Republicans in Congress for forcing his hand with a mandatory deadline that did not give the State Department enough time to study its environmental and safety implications. Hoeven has led the charge in the Senate to pass legislation that would bypass the administration and approve the full pipeline.
DRAINING GLUT
"Despite numerous attempts by Republicans to compel the president to approve the Keystone permit, Americans are still left with a 1,179-mile (1,897-km) gap between the oil resources and this southern portion of the pipeline," said Brendan Buck, a spokesman for Republican Speaker of the House of Representatives John Boehner, referring to the full Keystone XL project.
A new Gallup poll conducted earlier in March showed 57 percent of Americans thought the U.S. government should approve the building of the entire Keystone XL pipeline. Among Democrats, 44 percent supported the pipeline, with 38 percent opposed.
The southern portion of the pipeline would drain a glut of crude in Cushing, the storage hub for U.S. crude oil traded on the futures market, easing deliveries to refineries along the Gulf Coast.
Republican presidential candidates Mitt Romney, Rick Santorum, and Newt Gingrich have made criticism of the decision a key part of their respective platforms to win their party's nomination and the right to take on Obama in the November 6 election.
Though Obama's original decision to block the pipeline cheered environmentalists, who make up an important part of his political base, those same supporters expressed dismay at his statement on Thursday.
"President Obama has taken a dangerous wrong turn on energy," said Larry Schweiger, president of the National Wildlife Federation.
"Rushing pipelines and drill rigs for rich oil executives will only delay the investments we need in renewable energy and create long-lasting damage to our waters and lands."
Obama concluded his two-day energy-themed trip at a university in Columbus, Ohio, touring a facility where students were designing high-tech, fuel efficient vehicles.
Ohio is an important battleground state in the presidential election, and Obama used the venue to accuse Republicans of not supporting higher automotive fuel efficiency standards.
(Additional reporting by Timothy Gardner and Ayesha Rascoe in Washington; Editing by Russell Blinch and Cynthia Osterman)
----------------------------------
http://www.cbsnews.com/8301-503544_162-57402437-503544/southern-leg-of-keystone-pipeline-a-priority-obama-says/
-.001-1.41
Updated at 12:10 p.m. ET
(CBS News) Amid criticism he isn't doing enough to beat back rising gas prices, President Obama Thursday said he is calling on his administration "to cut through red tape, break through bureaucratic hurdles," and make the Southern leg of the controversial Keystone pipeline "a priority."
"Producing more oil and gas here at home has been, and will continue to be, a critical part of our all-of-the-above strategy," Mr. Obama said from Cushing, Oklahoma, the site where the Southern portion of the pipeline will begin construction.
Mr. Obama's stop in Cushing was part of a four-state, two-day tour in which the president touted his energy policies. Standing next to the giant TransCanada pipes that will make up the Southern leg of the Keystone pipeline, Mr. Obama sought to remind voters that he's not opposed to domestic oil drilling.
In fact, "we're drilling all over the place right now," the president said, citing his administration's directive to open up millions of acres for oil and gas exploration in 23 states. Under his watch, Mr. Obama said, the number of operating oil rigs has reached a record high, he said, and the U.S. has added enough new oil and gas pipeline to "circle the Earth and then some."
The Southern leg of the Keystone pipeline should be a priority, he said, to free up the "bottleneck" of oil heading to refineries. "If we could, it would help us increase our oil supplies at a time where we need as much as possible," he said.
Cushing is a major trading hub for crude oil, but the industry says a bottleneck in pipeline there has backed up its use. TransCanada Corporation plans to lay pipe through Cushing as part of its Keystone project. The Keystone pipeline is ultimately planned to link the tar sands fields of northern Alberta to oil refineries on the Texas Gulf Coast.
TransCanada announced last month it will proceed with the construction of pipeline from Cushing to the U.S. Gulf Coast -- a portion of the Keystone project that the company says has its own independent value. In the meantime, the company is waiting for executive approval for the Northern portion.
Mr. Obama rejected an attempt from Congress late last year to expedite the construction of the full pipeline, citing the need for more time to study the environmental and safety risks.
The president acknowledged today the issue has "generated a lot of controversy and a lot of politics," but he attributed to the controversy specifically to concerns about its original route through a critical Nebraska aquifer.
Keystone controversy continues as Obama visits Cushing
Obama: I won't walk away from promise of clean energy
Face the facts: A fact check on gas prices
"Nebraskans of all political stripes, including the Republican governor there, raised some concerns about the wisdom of that route," he said. While TransCanada has said it will re-route the pipeline, Mr. Obama maintained, "The Northern portion of [the pipeline], we're going to have to review appropriately to protect the health and safety of the American people."
Republicans have lambasted the president for holding up the project and are citing a new Gallup poll showing public support for the pipeline.
"People recognize his blocking of the Keystone pipeline is hurting our gas prices, it is making us more dependent on foreign energy," Sen. John Thune, R-S.D., said Thursday.
The Associated Press this week produced a statistical analysis of 36 years of monthly, inflation-adjusted gasoline prices and U.S. domestic oil production, showing no statistical correlation between how much oil comes out of U.S. wells and the price at the pump.
Anyone who says drilling alone will bring down gas prices, Mr. Obama said today, is either "not paying attention" or "not playing it straight."
Mr. Obama maintained his commitment to clean energy development, pointing out that the production of wind power has nearly tripled in Oklahoma over the past three years.
--------------------------
samuel ezerzer
No comments:
Post a Comment