The TransCanada Keystone XL Pipeline Proposal

The Proposed Keystone Project has its Opponents - Bill McKibben
The Proposed Keystone Project has its Opponents - Bill McKibben
The Keystone XL pipeline has already become a hot topic. President Obama has nixed the project for now. Facts are hard to find in the haystack of details.

Environmentalists are opposed to the Keystone XL Project claiming that the quality of the crude sent to the U.S. from Canada is poor and will add to greenhouse emissions. They point to the increased chances of spills from the Canadian crude based on the poor record of oil containment by Canadian pipelines. Those who favor the project dismiss these claims and focus on the jobs that would be created by the pipeline.

The Purpose of the Pipeline

Keystone XL would create 36 inch diameter pipeline 1,661 miles across America from Canada to the Gulf Coast. About 800,000 barrels of Canadian tar sands crude would flow into the U.S. daily. The U.S. imports about 10 million barrels of crude daily from various countries — mainly Canada, not Saudi Arabia as many think. The project was proposed by the Canadian oil and gas company TransCanada.

Tar sands crude is not the best energy source available, but most of Canada’s vast reserves come from tar sands in Alberta. It is more difficult to refine and produces a product which creates more greenhouse gases. The pipeline would deliver the oil to Port Arthur, Texas, where it would be refined into petroleum products and likely exported to other countries as gasoline and other distillates.

U.S. oil use has dropped significantly in recent years and now exports more oil — as refined products — than it imports. Canada supplies the U.S. with about 20% of its crude imports. Most of that is tar sands crude.

The Question of Jobs and the Keystone XL Project

There is wide disagreement in the number of jobs that would evolve from the Keystone XL project. Politics have clouded the issue as have the fact that various groups have taken sides and objectivity is hard to find. Certainly, the number of jobs created must be weighed against the possibility of significant environmental costs that some have predicted if the project goes forward. For one thing refining tar sands crude produces huge amounts of dirty water which must be managed.

TransCanada, in a November 14, 2011, statement predicted 20,000 American jobs would be generated by the pipeline itself, with 118,000 spinoff jobs to follow. Other sources inflate or deflate the number of jobs to be generated.

Some Common Misconceptions about Keystone

The Keystone XL project has been thought of as a way to end U.S. dependence on OPEC crude. U.S. imports from OPEC have already declined from almost 2.2 billion barrels in 2007 to less than 1.8 billion barrels in 2010. The trend has continued as U.S. demand continues to decline, and little of the Canadian oil from Keystone XL will actually be used by Americans.

Environmentalists claim that refining and burning products from the tar sands oil will contribute significantly to greenhouse emissions, but the oil will be sold to another country and burned if the U.S. doesn’t import it.

Obama has been criticized for missing an opportunity to increase jobs, but the number of jobs created is in dispute, and many would be temporary lasting only a couple of years. Other jobs included in the numbers would not be fulltime jobs. Also, Obama points to increasing U.S. oil production as a reason not to be hasty. Significantly, U.S. oil production has shown an increase recently — the highest since 2002. New drilling techniques have increased production in the Bakken field in North Dakota, as well as in Colorado and other southwestern areas. The trend is expected to continue, but no one expects that the U.S. will ever provide enough crude to stop importing altogether.

The Most Significant Effect from the Project may be Political

With the country preparing for elections, politicians and special interest groups are already preparing for a fight. Republicans and a few Democrats are highly critical of the President’s decision, while many other factions have come out with nothing but praise. Some analysts seem to believe that the pipeline will be approved following environmental impact studies. Obama has said the TransCanada can reapply after the route has been approved. Undoubtedly, voters will hear much about the Keystone XL than they will be prepared for. A good understanding of the matter will come to individuals only after research.

President Obama has stopped the Keystone XL pipeline project. He has his critics and supporters. Politics will make the issue difficult to evaluate.There are too many opinions on both sides to easily assess, but it is significant to understand that U.S. oil production is increasing and that most of Canadian oil is obtained mostly from tar sands which is hard to refine and low in quality. However, any oil coming from a friendly source is preferable to oil coming from the unreliable countries of the Middle East. Even if most of the Keystone XL is refined and sold, it will help the country's trade deficit. It is likely that approval of the project will come after the route is studied for its environmental impact.

Sources:

“The Keystone XL Pipeline Explained,” sfgate.com. (Accessed: January 21, 2012)

“Five Myths about the Keystone XL Pipeline,” washingtonpost.com (Accessed: January 21, 2012)

I love my bicycle!, Harvey Craft

Harvey Craft - I am a retired educator with diverse experience. I read anything science, education, and history. I write to share what I learn.

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