The proposed Keystone XL pipeline from Canada to Gulf Coast Refineries which is reported to be a $5.4 billion project is another example of a divisive issue where facts and sound judgement are disregarded by rhetoric. :Politics and wealth are the key players and we know where they stand. So for a moment lets forget the political affilations of the parties because that is not the issue that should decide the pipeline's fate. The proponets of the pipe line say it will (1) create jobs and (2) help America become energy independent. Every thing else positive about the pipeline can be grouped under those two headings so lets examine both.
JOB CREATION: The best guess by studies from congressional sources and others is that the pipeline will create approximately 21,000 jobs and may be a little more. Well if one is serious about job creation pressure should be put on the U.S. House to pass President Obama's jobs bill they have been sitting on for over two years that was passed by the U.S. Senate and was fully paid for. Congressional sources said that jobs bill to repair and rebuild America's infrastructure would create over a million jobs and would start to do so immediately. President Clinton's administration created over 27 million jobs at a time the U.S. imported a large percentage of its energy. Every American industry helped create those jobs because the economy was broad based and not centered on any one industry. A healthy job creation that is lasting will not happen by building the Keystone XL pipeline.
MAKE AMERICA ENERGY INDEPENDENT: America is more independent in energy now than it was when George W. Bush left office five years ago. That energy independence is expected to grow. The Keystone XL pipeline would mean we would have to depend on Canadian crude for our energy needs but guess what? Canada's officials have testified before congress and said they could not tell congress how much of that crude refined at Gulf Refineries would stay in America. That prompted U.S. Senator Ed Markey to say he would introduce a bill to bar oil carried by the pipeline from being exported.
There are reports that China has an investment in the Canadian's production from the tar sands that will be shipped by the pipeline. It stands to reason that much of that crude refined at Gulf Refineries would be exported to China for their own energy needs.
America can not become energy independent by relying on outside sources that could cut those energy supplies off at any time like OPEC did in the early 1970's. The reason for the pipeline is not job creation or to make America energy independent like the people are told. It is for creating wealth and using American soil to ship and sell a product that one has to believe will be exported to other countries since Canada can not tell congress how much of their product will stay in the United States. Surely they have a committment or they would not be proposing such a expensive project.
There is another reason that refined crude would not remain in the United States. If that would happen a glut of oil and gasoline would be on the U.S. market and that would reduce the price of oil and gasoline and no oil company wants that to happen. The oil and pipeline industry has proven over and over again they can not be trusted. That is why they are being sued in Louisiana's court system. The Keystone XL pipeline project should be rejected.
This commentary written by John Lucia.
