In Washington, a presidential Administration releases news it doesn’t like at 5 p.m. on Fridays. So it pays to pay attention when everyone is leaving work for the weekend.
Late last Friday, the State Department released a positive environmental review of the Keystone XL pipeline. President Obama has been delaying this pipeline—which would carry oil from Canada to refineries in Texas—for more than three years.
The delay has meant that America is still waiting on an additional 700,000 to 830,000 barrels of oil per day from a close ally, not to mention 179,000 American jobs.
Why has this taken so long, when all environmental reports thus far have been positive? Heritage’s Nicolas Loris, the Herbert and Joyce Morgan Fellow, explains:
Given the need for jobs and more oil on the global market to offset high prices, the permit application had been moving along positively with bipartisan support without much attention until environmental activists made blocking the Keystone XL pipeline their issue to rally around for 2011. Although President Obama and the Department of State (DOS) said they’d make a decision at the end of 2011, they ultimately catered to a narrow set of special interests, punting the decision until after the 2012 elections.
The State Department, which is overseeing the pipeline because it crosses a U.S. border, has “already conducted a thorough, three-year environmental review with multiple comment periods,” Loris reported last year.
The review has been comprehensive:
DOS studied and addressed risk to soil, wetlands, water resources, vegetation, fish, wildlife, and endangered species. They concluded that the construction of the pipeline would pose minimal environmental risk. Keystone XL also met 57 specific pipeline safety standard requirements created by DOS and the Pipeline and Hazardous Materials Safety Administration.
Canada has oil to sell, and it isn’t likely to wait forever. Forbes writer Brigham McCown said that “Delays in approving the upper portion of the pipeline have bewildered many Canadians who see the U.S. as their closest ally and trading partner.”
McCown pointed out that “Even without the pipeline, Canada will continue to extract the oil which would be most likely transported by pipeline and rail to Canada’s coast for shipment to Asian markets.”
Because the State Department is overseeing the application, the new Secretary of State, John Kerry, will be giving his recommendation on the pipeline. Ultimately, the decision rests with President Obama. But Heritage’s David Kreutzer says Congress can, and should, step in if the President continues to block it:
Should the President reject Keystone again, Congress should wield its power to regulate commerce with foreign nations and approve the pipeline’s construction once the State Department again finishes its review of the rerouted project.
These delays are pointless. The Keystone pipeline has passed its environmental reviews, and the Obama Administration is only hurting America by holding it up.
A possible silver/lead lining is that is if Canada sells the oil at a higher price to China/Asia that Hawaii could also buy that oil too but only with one refinery in Hawaii a large amount of refined products could be coming from the West coast where gas prices are higher than Hawaii. That means if we get the oil from the North we still depend on the price at the most expensive market levels. The only real possibility of relief of high prices is that the Keystone go through and that gas shipped here will be less expensive. That could have competitive market results if the playing field remains level.
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