The unrelenting pipeline project that aims to transport more than 800,000 barrels of oil a day from Alberta, Canada to the Texas Gulf is at it again. When TransCanada was told in January the project was being turned down, what do they do? They make plans to build the southern half of the pipeline while they “work out” a new route for the northern half which was slated to go through ecologically sensitive areas in Nebraska. The strangest part of all of this, is that TransCanada doesn’t need approval from the State Department, and even if they did, the Obama Administration has decided to back the idea.
The Southern half of the pipeline will divert tar sands from Oklahoma to Texas. It’s not technically the Keystone XL pipeline but will still provide the same service to oil companies that Keystone would.
Controversy around the Keystone pipeline stems from many avenues from potential oil spills to indigenous issues, but for most people their primary issue is climate change. Tar sands are more carbon intensive than mining conventional sources of oil, emitting between 5-15 percent more greenhouse gases. As Climatologist, James Hansen has stated, “it is essentially game over” for climate if tar sands are exploited along side coal reserves.
Obama took a lot of heat on his initial decision to reject pipeline construction from his rival presidential candidates. Rick Santorum claims going through with pipeline construction will lower gas prices. While Newt Gingrich has been swearing up and down that Obama’s playing favorites with “environmental extremists” instead of spending time lowering gas prices.
Other advocates of the pipeline argue the benefits of importing from our friendly neighbors to the North instead of the Middle East. Another benefit they claim, the creation of jobs–which has been a matter of intense debate as the numbers have ranged from 5,000-20,000–would mostly only be temporary positions. My own personal favorite argument (noted above by pipeline proponents Santorum and Newt) in favor of the pipeline is that it will lower gas prices. The fact is that once the oil from Canada reaches the Texas Gulf it will not be be pumped around the U.S. for domestic oil use. It will enter the global oil market from Texas refineries and is very likely to be shipped overseas. It will raise gas prices as much as 20 cents per gallon. It’s the same scenario with the “half-pipe” from Oklahoma to the Gulf: we’re looking at a rise in gas prices while remaining vulnerable to price spikes.
While people argue that the purpose of Keystone pipeline and the “half-pipe” is to lower gas prices for the American people, TransCanada’s plans don’t mesh. The construction of the pipeline will subject the U.S to increased costs of heavy Canadian crude oil. Philip Verleger, founder of PK Verleger LLC (an energy consulting firm) told Bloomberg, “The Canadian plan was to use their market power to raise prices in the U.S. and get more money from consumers”.
It’s a little disconcerting the “half-pipe” is moving forward in that there is little stopping the entire Keystone XL project from taking over the Midwest which would be harmful not only to gas prices, but that pesky thing we call Climate Change. There should be no “half-pipe”, no whole-pipe. We need to start making a concerted effort to get away from an oil based society instead of crawling back to the same fossil fuel burning, environment polluting energy sources.
Keystone is like a cockroach. They’re difficult to kill, but it’s definitely not impossible.