Monday, December 1, 2014

Obama Is Lying About The Keystone Pipeline

Shortly after the House of Representative passed a bill that approved the completion of the Keystone Pipeline, President Obama was asked to comment and he said this:
Understand what this project is: It is providing the ability of Canada to pump their oil, send it through our land down to the Gulf, where it will be sold everywhere else. It doesn't have an impact on U.S. gas prices.
Therefore, according to Obama, Canada merely wants to use us as a conduit to send their oil to every place other than the United States.  Additionally, it will not have an impact on our gasoline prices.   Both of these comments are bald-faced lies.

If the only intent was for Canada to sell its oil overseas, then why build a pipeline extending a total of 2,100+ miles from their western province of Alberta to eastern Texas and western Louisiana?  After all, a 2100 mile pipeline is both expensive to build and even more expensive to maintain; greatly adding to the per-gallon cost of the oil moving through it. They had a cheaper alternative. Were they to build a pipeline that was only 850 miles long from their oil terminal in Hardisty, Alberta to their largest western seaport: Port Metro Vancouver.  Then, they could ship to some of the largest importers of oil in the world like China, Vietnam, South Korea, and Japan.

But, as the President knows, Canada views us as a friendly and reliable trading partner.  This is why they are already our largest importer of foreign oil; accounting for 37% of our imported oil and  helping us to reduce our dependence on potentially unfriendly sources like the Middle East and Venezuela. 
Then, there is the issue as to whether or not Keystone will lower gasoline prices.  Simple economics and the Law of Supply and Demand says yes.  If you haven't noticed, gasoline prices in the U.S. are now at 4-year lows; from prices at the pump that were, in some cases, over $4 a gallon, to today's average price of below $3 and still falling.  The reason for this is the fact that there is an oil glut; primarily due to increased oil production in this country resulting from fracking.  The additional oil from the Keystone will only add to that glut and, as such, further reduce the price of gasoline.

Reduced gasoline prices is the real reason behind Obama's blocking of this project.

He knows that lower prices will undermine his push on climate change measures.  Lower gasoline prices means that people will be tempted to drive more and, at the same time, be less tempted to buy a newer, more fuel efficient car; including electric cars.  Thus, carbon emissions will only go up, not down.

Throughout his Administration, President Obama has done everything possible to keep gasoline prices  as high as possible by limiting oil production in this country.  He's used his Department of the Interior to limit oil leases on federal lands and our coastlines.  He has attempted to stop drilling on private lands bt using the EPA to expand endangered species to include those on prominent oil drilling territories and to file lawsuits over fracking.   Believe me, his intended expansion of the Clean Waters Act to include non-navigable waters will also ultimately be used to restrict drilling and fracking. That's because water is essential to all oil drilling.  In conventional drilling it keeps the drill bits cool.  In the case of fracking, high pressure water and chemicals are used to fracture shale and release the imbedded oil (and/or gas).


Keystone pipeline: Obama bashes project while in Myanmar:

Keystone Pipeline - Wikipedia, the free encyclopedia:

Distance From Hardesty To Port Metro:

Global Oil Glut Sends Prices Plunging - WSJ:

Time to Process Oil Leases On Federal Lands:

Oil Leases: Bush versus Obama:

 EPA Backpedals on Fracking Contamination Lawsuits:

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