Posted in: Infrastructure,
by Patrick DeHaan on May 4, 2012 01:27 PM
TransCanada today announced that for the second time, it has submitted a Presidential Permit application to the U.S. Department of State for the proposed Keystone XL pipeline that would carry Canadian crude oil to the Gulf region.
The multi-billion dollar Keystone XL pipeline project will reduce the United States' dependence on foreign oil and support job growth by putting thousands of Americans to work," said Russ Girling, TransCanada's president and chief executive officer, even as many media outlets and critics have called TransCanada's job numbers "a joke".
While Girling did mention the likely reduced dependence on foreign oil and the job growth, he failed to mention that if the Keystone XL pipeline is built, it will likely mean a higher cost for Canadian oil, costing motorists in the Rocky Mountains and Great Lakes at the pump. It isn't a shock that TransCanada is pushing so hard for the pipeline, after all, Canada continues to see it's crude oil at a massive discount to other types of crude oil, and building a pipeline to connect Canadian crude to international buyers will only cause oil prices to rise, a boon to Canada's government who wants to be an energy "superpower".
In its press release, TransCanada also states "Keystone XL is in the national interest of the United States as it would create thousands of much needed construction and manufacturing jobs and allow Americans to move closer toward achieving energy security." But it doesn't fail to mention that Canadian crude prices will likely rise, and failing to take into consideration how higher crude oil prices could hurt motorists in the United States.
Also mentioned is that "shipper interest remains strong, with Keystone XL currently having firm, long-term contracts in place to transport in excess of 500,000 barrels per day" which isn't a shock since Canada would be the shipper, and they want to attract international buyers to drive the price of Canadian crude higher.
As you can tell from my writing, I still have grave concerns for motorists. I have no holdings in oil, TransCanada, or anything tied to petroleum or oil. I'm strictly concerned on behalf of motorists who should be extremely cautious about this pipeline. If the oil isn't exported directly, you can expect that after it is refined it will be- exports of finished products (gasoline, diesel) already are near record highs, exporting even higher volumes could further hurt motorists, but help refineries and oil companies.
It's been proven time and time over that you can't be too careful with trusting industry, so proceed with caution- personally, I still don't believe this pipeline is necessary, as TransCanada already has a Keystone pipeline connecting Canada to the United States.