iPhone app iPad app Android phone app Android tablet app More

Featuring fresh takes and real-time analysis from HuffPost's signature lineup of contributors
Edward Flattau

GET UPDATES FROM Edward Flattau
 

Canadian Keystone XL Oil Pipeline: Why the Deception?

Posted: 01/30/2012 7:03 pm

Why are congressional advocates of the Canadian Keystone XL oil pipeline resorting to so many deceptive claims when there is no dispute the project would create American jobs and bring business to our Gulf Coast refineries?

The answer is that there is much more to the story than its face value and it is all about drawbacks. When you get past the Republican hype designed to politically embarrass President Obama for refusing to approve the project's route across the American heartland, you discover the pipeline is not the economic bonanza or environmentally benign entity depicted by its boosters. On the contrary, a strong case can be made that our nation would be better off with no Keystone XL pipeline whatsoever. One needs only examine the proponents' exaggerated claims (including downplaying of environmental risks) to see why.

TransCanada Corp., the corporate sponsor behind Keystone, actually admits that if its tar sands oil is piped down to our Gulf Coast refineries, it would be shipped overseas for a more attractive price than it could garner here. So much for the Keystone supporters' contention that the project would ease our dependency on oil imports from unstable parts of the world. We are talking essentially about a sweetheart deal for TransCanada.

In its application, the company discloses that the pipeline is likely to result in higher rather than the cheaper gasoline prices touted by Keystone backers. That is because the project would allow TransCanada to draw down the reserves it has been storing in the Midwest and that have served to suppress prices at the pump.

The company warns that if we don't reconsider approval of Keystone XL, it will construct the pipeline across Canada to the British Columbia coast and ship the oil to China.

That is an empty threat when you consider that the Keystone oil our refineries would export could easily end up in China anyway. What clearly demonstrates that TransCanada is bluffing is that for all its menacing bluster, the company has said it will resubmit its application to the United States. No small wonder since the company faces considerable opposition from Canada's political minority party, as well as native tribes, farmers and other sundry individuals along the pipeline's prospective right of way. Enough of a ruckus has occurred to prompt Canadian regulators to announce a one year delay while the proposed domestic Keystone route is reviewed. There are environmentalists in Canada too!

What about jobs? Keystone backers' assertion that the pipeline will generate anywhere from twenty thousand to one hundred thousand jobs is wildly inflated. More realistic estimates by our State Department and independent researchers fix the number of jobs at 6,000, with most of them lasting no more than the two years it would take to complete the project. Still, some jobs are better than none, right? Maybe not in this case.

What of the possibility that the pipeline could turn out to be a net job loser? The increase in fuel prices could have a deleterious effect on Midwest employment. If there were a significant oil spill that contaminated the region's water supply, the adverse economic impact on farming and communities in the path of the pollution would be devastating.

By the way, if you think such an outcome is farfetched, TransCanada's oversight record is hardly stellar. Although mostly minor, there were 12 spills during the first year of the company's operation of its existing original Keystone pipeline.

Last but not least, the tar sands product is the dirtiest of oils making it a major pollution threat as it travels over a major aquifer through the heart of our country. Moreover, the pipeline would divert precious time and resources from development and distribution of clean renewable energy alternatives. These alternatives are the core of an effective program to curb global warming, which by extension would bolster the nation's chances for a secure future.

Republican lawmakers seem convinced that President Obama's handling of the Keystone project will fragment the support of his industry, union, and environmental backers and deal him a blow in an election year. But when the dust clears, it may be the lawmakers who are left holding the bag.

 
 
 

Follow Edward Flattau on Twitter: www.twitter.com/greenmorality

Why are congressional advocates of the Canadian Keystone XL oil pipeline resorting to so many deceptive claims when there is no dispute the project would create American jobs and bring business to our...
Why are congressional advocates of the Canadian Keystone XL oil pipeline resorting to so many deceptive claims when there is no dispute the project would create American jobs and bring business to our...
 
 
  • Comments
  • 23
  • Pending Comments
  • 0
  • View FAQ
Comments are closed for this entry
View All
Favorites
Recency  | 
Popularity
photo
HUFFPOST SUPER USER
Robert Lee Harrington
I'd Love To Change The World..
04:19 PM on 02/06/2012
The State Department just rejected the Keystone XL oil pipeline after congressional Republicans put it on an irresponsible and arbitrary time line.

Our opponents are fighting hard against this decision to put our safety and sound science first.

The Obama administration did the right thing by refusing to green-light a project before experts could determine the consequences. After all, there was a lot at stake: the proposed 1,700-mile pipeline would have run over one of the Midwest's largest sources of fresh drinking water.

The appropriate scientific and public-safety review was under way, but Republicans in Congress thought scoring political points was more important.

This decision doesn't change the President's determination to take real steps to reduce our dependence on foreign oil by investing in clean energy and get Americans back to work:
We're already importing 1.1 million fewer barrels of oil every single day;
We're getting 70 percent more power from wind and solar; and
We've supported more than 224,000 clean-energy jobs.

Energy efficiency measures like nearly doubling fuel-economy standards for cars and light trucks for the first time in decades will:
Reduce our dependence on oil by an estimated 12 billion barrels,
Save families $1.7 trillion at the pump,
Make our air cleaner to breathe, and create jobs.

That's the kind of action we need to give our economy a boost and tackle big issues like climate change—but we're not done yet.

BarackObama.com
photo
drdrepublican
Believe in something or fall for anything
06:59 PM on 02/01/2012
The Obama Adminstration has said no to the 20,000 jobs to be created by the Keystone pipeline slapping the face of our number one oil trading partner Canada while his green industries such as Solar Energy, Solyndra, Nancy Pelosi's Solar Light, ENGR1 and Mojave Solar have all filed for bankruptcy after taking taxpayer money. These failed endervors represent a loss of over 120 billion taxpayer dollars that has to be paid back by the next 2 generation of children. Who gave the president the authority to use our money to invest? When did the president become a hedge fund manager? If he is a hedge fund manager he is doing a terrible job and a worse job as president.
This user has chosen to opt out of the Badges program
photo
06:36 PM on 02/01/2012
"Moreover, the pipeline would divert precious time and resources from development and distribution of clean renewable energy alternatives"

Nonsense on stilts. The project will be entirely funded by TransCanada Corporation without government funding. Indeed given the shot in the arm to the U.S. economy this will provide, it means that the U.S. will have MORE resources to commit to renewable energy research and development.
04:32 PM on 02/01/2012
I just wonder just how many of our congressmen have been around a pipe line? They seem to think that they work thousands of people, when in fact it is a very minim of workers. I have worked on pipeline and it is not a job creator and only a temporary employment If this pipeline is so safe? and would create so many jobs as Republicans claim, why would they want to send it out of the country? Would it not be more to Canada's advantage to build refinery? And process the oil instead of shipping it out of there country. No we do not need this contaminated oil in our country. Did we not have enough safe handling of oil the east coast? We do not need to be importing it into the USA.
Lets put the resources to environmental friendly and get away from destroying the only place we have to live a place called Mother Earth
Genders
Love, Tolerance, Enlightenment
10:52 PM on 01/31/2012
No kidding. The oil is going to china anyway.

The China state oil company bought a controlling interest in the tar sands

http://www.reuters.com/article/2012/01/03/us-athabasca-idUSTRE8020OW20120103

Canada has great wind and waste bio char bio mass. That is what they should be using, it's 1/4 the cost of tar sands energy, and carbon negative.

http://www.biochar-international.org/
This user has chosen to opt out of the Badges program
photo
06:33 PM on 02/01/2012
The Chinese bought a controlling industry in ONE of the many oil sands projects, not the entire oil sands.
Genders
Love, Tolerance, Enlightenment
09:21 PM on 02/01/2012
China could buy Canada, are you kidding?
06:42 PM on 01/31/2012
Com on Ed--do you actually get paid to write this stuff? It is the same old NRDC talking points over and over again. How do you reason that the pipeline diverts time and resources from alterantive energy development? If you want alternatives, get off you obstructionist bent and write some analysis on alternatives that can make a difference now, like LNG heavy truck and car fleets that can drop vehicle carbon emissions--tomorrow. Not two decades from now!
Genders
Love, Tolerance, Enlightenment
10:58 PM on 01/31/2012
Of course it diverts resources. The money spent on the pipeline does not go to green projects. Saving the Chinese companies that own the Canadian tar sands money for dirty oil will hurt green energy that does not destroy the world environmentally.

plug in hybrids charged by rooftop solar, offshore wind and waste bio char bio fuels is a far better solution, and forever. Natural gas still emits more CO2, heavy metals, and methane, plus fracking is even worse, with massive water use and contamination.

green energy is not cost competitive with fossil and nukes. take away the billion is breaks and subsidizes for fossil and nukes and put them on rooftop solar, offshore wind, iefficiency and waste bio char bio fuels for at least the 50 and 100 years nukes and fossils have gotten them,
This user has chosen to opt out of the Badges program
photo
06:49 PM on 02/01/2012
The money will be provided by TransCanada Corporation, a Canadian company. And no, it's unlikely they'll instead be investing in solar panels if this project does not go through.
04:55 PM on 01/31/2012
The term deception is a bit off in this case. Even with the estimate at 6,000 by the US state department, that’s still a few jobs for both blue collar and middle class working Americans. In addition the project could indeed generate up to 20,000 jobs on the pipeline itself, not to mention the jobs that it could spur in the neighboring communities around the pipeline itself (http://eng.am/sogpoX). As much weight as we’re giving the environmental concerns, it would lead one to think that we should give the economic concerns the same consideration n a time where jobs are the rarest commodity of all/
08:54 PM on 01/31/2012
One study I read indicates the higher figure of 20,000 jobs included waitresses, motel maids and cooks, etc. Most all of the jobs disappear as the pipeline is completed. Apparently TransCanada would use mostly personnel that have worked on their other pipelines. When the pipeline is finished, they might have 30 or so employees from Canada to the Gulf to clean up oil spills and leaks.
10:38 PM on 01/31/2012
Even if the Jobs are temporary, we still need them to put people back on their feet even if only for a short while. It would appear that there is room for other kinds of services to both be created and perhaps remain for both temporary and permanent workers. It could also serve as another skill builder for workers of that type who suffer from not being hired in down economic times(http://eng.am/sTx56V). There could be multiple beneficial outcomes as a result of the pipeline. Again it may not be the most perfect solution but its something that can help along for now, no?
HUFFPOST SUPER USER
GWChimpzilla
02:20 PM on 01/31/2012
Conservative politics pretty much relies on deceptive propaganda to get its way these days. And many times it works. I'm not looking forward to the upcoming elections, let alone their 'fight' for the pipeline.
01:02 PM on 01/31/2012
That's what I've always wondered...thanks.

Who takes possession of any oil from a Keystone Canadian pipeline, and will the oil only be used for domestic consumption and to lower the cost for our energy needs - - or will it just be sold and exported to the highest bidder to another country for the highest profit? In other words, how will the American people benefit? Will this in any way make us more "energy independent"? Would drilling for more oil do the same?

Or should the American people get into the oil business?

http://bud-meyers.blogspot.com/2012/01/keystone-pipeline-its-we-who-should-get.html
photo
artleads
Let's have a national retreat.
09:49 PM on 01/30/2012
Keystone opponents had better make some noise. The pressure on the president to cave is going to be fierce. When he looks out his window he should see thousands of people and hear thousands of voices backing him up to do the right thing. And we must have his back, in that event.
photo
HUFFPOST SUPER USER
Norma Ward
09:16 PM on 01/30/2012
The Harper government's single-minded attempt to turn Canada into a petrostate is frightening. Rather than modestly increases in Canada's oil sands production to supply growing domestic needs, they are only interested in drawing down Canada's oil reserves as quickly as possible, an idea that is foolish at best as shown here:

http://viableopposition.blogspot.com/2012/01/canadas-oil-sands-are-we-exporting.html

Canada's domestic supply of conventional crude has been on the decline since the early 1970s and despite the country's exports of synthetic crude, imports of nearly 800,000 BOPD are required to meet growing consumption. Perhaps the Harper government should be considering Canada's energy security ahead of security for both China and the United States.
This user has chosen to opt out of the Badges program
photo
06:55 PM on 02/01/2012
The reason for the massive imports is because there are poor facilities for transporting oil from western Canada to eastern Canada, not because of falling oil production. In fact, oil production is soaring.
09:13 PM on 01/30/2012
Its amazing that John Boehner and the many supporters of the Keystone XL pipeline, fail to recognize or fairly represent this issue. Such a great example of why this nation is it odds. Don't allow ignorance to destroy this country.
09:11 PM on 01/30/2012
Check opensecrets.org to see that Senator Hoeven's #1 campaign contributor is Oil & Gas industry. Senator Hoeven has claimed the pipeline will reduce our dependency on Mideastern oil and that it would carry some North Dakota Bakken oil. Given the dubious nature of the claims and the source of his campaign contributions, we might think the Senator is ethically challenged whose snout is deep in the guck.