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  • Obama Delays Keystone Pipeline: Delays Jobs and Energy, Too

    Demonstrators carry a giant mock pipeline while calling for the cancellation of the Keystone XL pipeline during a rally in front of the White House in Washington November 6, 2011.

    The Obama Administration announced it would delay the construction of the $7 billion Keystone XL pipeline that would bring in more than 700,000 barrels of oil per day from Alberta, Canada, to the Texas Gulf coast.

    What this delay really means is that President Obama is putting off an important election year decision in which two of his largest supporters—labor unions and environmentalists—are split on the issue. This tactic allows the decision to be delayed until after the 2012 elections.

    More importantly, this means a delay in access to easy imports from our northern neighbor, the creation of thousands of jobs, and the generation of revenue for the states where the pipeline passes. Montana, South Dakota, Kansas, Oklahoma, Nebraska, and Texas are collectively projected to collect $5.2 billion in property tax revenue as a result of building the pipeline.

    Radical environmentalists act as if this is the first oil pipeline being built in the United States. We have 50,000 miles of oil pipeline in this country that have provided massive economic benefits with minimal environmental harm. In short, building the Keystone XL pipeline is nothing new, and it’s one of the most environmentally sensible ways to transport oil. Even the Obama Administration determined it to be safe when the State Department’s recent Environmental Impact Statement found that the pipeline would pose few environmental risks.

    If the oil doesn’t come into the U.S., it’s going to have to travel further to go elsewhere, which increases the risk of environmental harm. The oil isn’t going to stay in the ground. As my colleague David Kreutzer writes:

    Let’s acknowledge that blocking the XL pipeline won’t stop development of the oil sands. It will slow some of the development, which will increase the world price of petroleum. However, the major impact of blocking the pipeline would be a significant diversion of the oil to non-U.S. consumers.

    So, block the XL pipeline if you think the environment will be better served by shipping Canadian oil an extra 6,000 miles across the Pacific in oil-consuming super tankers and then refining it in less-regulated Chinese refineries. In addition, be aware that replacing the Canadian oil means the U.S. also must import more oil by tankers, which are less efficient than pipelines.”

    For President Obama, delaying the Keystone XL pipeline decision may be a smart political move. But for a country struggling to create jobs and meet energy demands, it’s not a smart economic decision.

    Posted in Energy, Featured [slideshow_deploy]

    28 Responses to Obama Delays Keystone Pipeline: Delays Jobs and Energy, Too

    1. WVSickFreak says:

      Of course this is a smart political move by Obama. He doesn't want to make another core group of his supporters upset.

      I do remember him saying that he would not sleep until everyone that wanted a job had a job. I guess the jobs that would be created by this pipeline do not count.

      • Mike says:

        Politicians have no conscience and are willing to put jobs, lives and prosperity of others at risk to maintain their power position(s).
        It is so easy for him and others to duck and hind than face the reality that we are hurting ourselves and our good neighbors by no decision.
        Canada has to wait for these thieves to do their thing in D.C. How much will it cost them?
        All this money cannot be made up, once lost, it is lost forever. If they go ahead with this project in the future, the income will always be behind where it should have been.
        Fuel and lubricant prices up and cash taken out of our pockets, just like a man holding a gun on us as he or she goes through our wallets.

      • madog2 says:

        For many many years our presidents and Reps have catered to the few freaks in the unions and environmentalists groups. These and certain minority groups have been able to control the Government for years. The pansy a**ed so called leaders in Washington have never in my life time given consideration to the American majority and their needs. It should be changed to "the house of pandering" and the "US suckups"

    2. JeffC says:

      this is a ready made GOP campaign commercial for next year …

    3. George says:

      Few journalists appear to understand that global petroleum supply can only grow at a 1.2% annual rate through 2035. All the increase will be in natural gas liquids and non-conventional oil. No gain at all in conventional petroleum production at all, per OECD. GDP growth is proportional to growth of petroleum capacity. Petroleum production capacity is a big constraint opon economic growth and job creation. Therefore, we should expect one of two (alternating) consequences: Crude oil pricing in the $30 to $300 range. Retail unleaded gasoline $8.25 to $8.50 (higher in CA). High with continued excess money supply creation. Low if product shortages develop, leading to multi-regional economic collapse.

    4. Rufus says:

      Too funny!!

      When oil hits $130 this year and the USA is relying on middle eastern oil–perhaps they will remember all that yucky dirty Canadian oil.—-Oooooooooo!!

      Ship it to the BC West coast for Asian ships to pick up

      Montgomery triangle is awesome!!

      • drew peacock says:

        Rufus is right. Nobama is a leftie clown. Is everyone in america going to start riding bikes?? No they will drive their cars and need oil and gas. Whatta a joke. And still;

        Montgomery triangle is awesome!!

    5. Obama continues to say one thing ("Jobs are the number 1 priority.") and do another ("Stalemate jobs if they aren't jobs for his union buddies.") When you get right down to it, his only supporters are those receiving handouts…. This is not sustainable nor is it American.

    6. Saltire says:

      This is what happens when a President tries to please one core groups by pandering for their support. All the while, making his other core supporters pissed. Environmentalists….happy. Unions, workers, and unemployed…….not so happy.

    7. John T. Lambert says:

      The fact that the Obama camp would Delay American work and money… is typical and expected.

    8. txbadonetoo says:

      And Obama blames the GOP Congress for doing nothing to create jobs? Obama blew it on this one. The guy can't take a stance and defend it. Sad for America.

    9. Terry Stone says:

      Obama's decision is based on what is good for self interests rather than what is good for the Country's interests. Looking out for the Country's interests is the reason why he is being paid to be President.

    10. R Holland says:

      The republicans need to jump all over this and show that Obama is only interested in his re-election and not jobs or energy.

    11. Mike, Wichita Falls says:

      I don't know why he's worried about alienating his environmental base by allowing the pipeline, and he need not worry about the unions by delaying it. Neither group will ever vote for the GOP. If had allowed this pipeline to proceed, he might have warmed up some of those squishy moderates that he lost last year. However, every time he digs in his heels, he just fires up the other side even more than it already is. At this point, I hope he continues to ram-rod his statist agenda for another full year. This is like Custer's last stand.

    12. Reading this it's obvious what Obama is planning;He is going to stall until just before the elections,and then watch all of the red tape disappear.Not only for this pipeline,but I forsee offshore drilling,other pipelines and as many infrastructure jobs as he can pass.Then he will use these jobs to boost his image at the polls. KEEP JOBS MADE IN THE USA…….BY AMERICANS!!!

    13. Bobbie says:

      how does America(ns) protect and defend the PEOPLES' American Constitution from the domestic enemies in America's administration? America deserves people in leadership that stand to do what's right, not everything they can in their position to do that's wrong! we're being held back by the enemy president's abuse of authority! Abuse of America! Neglect of America! Deprivation of America! who's going to stand to hold this impediment accountable?

      • Jeff Rink says:

        We start at the local and county level. Get some true conservatives/constitutionalists to run for precinct committee, which in Ohio this happen on the primary ballot election. The people who win this position are known as the central committee. 30 – 45 days after the primary election the central committee elects 56 of it's own members to serve as the executive committee. From this pool of 56 people 13 are elected for the state steering committee. The steering committee are the ones who decide what person gets to be put on the ballots for elections within that party. This is done on both the democrat and republican sides here in Ohio. Ohio doesn't recognize any other political party otherwise they would also use the same process. When we all complain about having to vote for the "lesser of two evils", these are the people you should be complaining to.

        Keep in mind that these people usually end up in federal positions. Also the current debacle known as the primary system is designed to only allow certain candidates through anyhow. Those of us who have primaries towards the end of the "season" are usually effectively eliminated from the process. Hence voting for the "lesser of two evils".


        • Bobbie says:

          thank you, Jeff!

          • Lanelle says:

            Really? Be honest. Things are only this way because the greater part of America lets them be. If all of America threw a riot of the untrue, backstabbing ways of politics in general, it would change. Why? Cus they want the votes. They do, say and become anything to get this power, even become honest.

    14. Stirling says:

      Everything this president does is political, which is why he needs to be voted out of office in 2012.. When we finally get a president that puts country first then it will be as clear as day the reasons why the economy was run over a cliff and hasn't recovered.. Capitalism never died, it just had a president who never belived in the free market system (whithout government). Also maybe a change of office will clean the streets of the OWS crowd for good.

    15. Michael says:

      State Department approval and environmental impact studies were done. BUT ?After all is said and done, it’s not done…not if it’s politically risky for President Obama. Can anyone honestly believe that jobs and energy are Obama’s priorities? I think not!

    16. Brian says:

      Sold 20,000 new jobs to buy enviro votes in 2012. Those will raise his chanced of winning from 25% to 27%. What self-serving waste. It will also mean we need to import more oil from the Middle East vs buying it from Canada. Further, the Canadians said they can't wait 13 months and will likely run the pipeline to Vancouver to load ships bound to Chinese refineries instead of ones in the US. Way to go Obama. I'm not sure this country can take even 12 more months of your Chicago-style politics.

    17. Guest says:

      Some questions which we haven't seen answers for:
      1. Do we have any guarentee from Canada that we will get part of their oil and at reduced price from Word Market?
      2, Do we want the Keystone oil competing for refinery capacity with our own Bakken oil?

      3. Are there other refinery options than the Texas Gulf Coast – which of course also presents ocean shiipping options – to China $$
      4. We have Montana refineries. How about buying the Canadian oil at the boundary and refining it in Montana – refineries upgraded for our Bakken oil?
      5. In other words wouldn't oil from both Keystone and Bakken provide enough oil for substantial refinery improvement?
      6. Regarding jobs – We are already having trouble filling our job needs in Bakken. See N.Dak. unemployment rate!!

    18. Questionman says:

      Did you actually think about this one before posting. If it's Canada selling oil to Asia via a pipeline on our territory, how does it represent an "industry?" I mean it would obviously be a bit of a boon, but I think right wingers are vastly overblowing the effects of this pipeline. It's not going to create some golden era in the US.
      The reason it's being shipped to the Gulf coast is because it's going to be shipped to Europe and S. America in essence NOT reducing the cost to US consumers! Geeze, I have never seen such uninformed trolls who beleive every word Big Oil says!

    19. So it goes to show you, "The people and this Great Nation aren't his concern" This is the people generating jobs and OBAMA'S Socialist ways screwing it up!!

    20. Live by the Bomb die by the bomb?? They take scripture of "live by the sword die by the sword",,,please. If radicals threaten our country, which they will even if we didn't have bombs….hello. We can do all we can to divert their attempts but come on we live in a good and evil world and the Lord wants us to defend ourselves! Look what God did to the evil centuries ago!! WIPE EM OUT ALL BUT A FAMILY!!! We need to be STRONG, COMPASSIONATE, GIVING, AND JUST!

    21. BigOil says:

      Smooth move Obama!! Good thing is when Americans start riding bikes because oil prices are too high, and America does not have a stable, reliable supplier in the Middle East, then the obeistiy problem in America will be resolved. Of course, the Chinese will be able to get off of their bikes and get into their cars because they will have Canadian oil. Maybe the Chinese will do a remake of that great Rick Astley song: Hey you get into my car.

      Montgomery is awesome!!

    22. Is Obama's energy policy good for America? Is this a good reason to reelect Obama?

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