The Keystone XL Pipeline

A self-identified Black truck driver called Rush Limbaugh's show today.  He said this pipeline deal pushed him over the edge and, although he voted for Obama last time, he is through with him now.  He has a family and is hurting with the cost of fuel, which affects everything that moves to market in the United States, so we will all pay for this political payoff scheme.  You can't fool this trucker.  He knows it is a cave-in to the environmentalist movement that is costing American jobs and profits.  This guy is  close to leaving the Democrat Party over this, too.  That is the kind of impact it is having and the media, debate moderators and GOP Presidential hopefuls all seem to be sweeping it under the rug.  Don't you do that,  too.  Spread the word!

On another front,  this letter was sent out by Bill Klesse, CEO, Valero Energy regarding the Keystone Pipeline.  He might know a thing or two about the project (and its possible impact).

Date:               January 24, 2012       

To:                  Valero Employees

           

From:              Bill Klesse

Subject:          Keystone XL Pipeline Statement

As you know, the Obama administration decided last week to deny TransCanada’s application to ship crude oil via the Keystone XL pipeline from Canada to the Gulf Coast. Valero has planned to be a shipper and purchaser of that oil since 2008, and obviously we were disappointed in the decision. We issued a statement in response to questions from the media, and I wanted to share it with you in case you get questions from friends or business partners, and so that you would know why Valero supports the Keystone XL pipeline. This is the statement:

Despite the uncertainty and political fighting over the Keystone XL pipeline, Valero has continued to invest in its U.S. refining operation.  In 2011 we spent nearly $3 billion on projects, and for 2012 our capital expenditure budget is over $3 billion. These expenditures are keeping our employees on the job and putting additional people to work.  To reference two of our refineries, at Port Arthur, Texas, we have 1,600 contractors working on an expansion project, and at St. Charles Parish, Louisiana, we have another 1,000 contractors working on a separate project.  We need this kind of economic activity to accelerate to help all Americans.

This illustrates why the federal government’s rejection of the Keystone XL pipeline is so absurd. There are pipelines in every neighborhood all across America. The administration’s decision was not about pipelines, it was about the misguided beliefs that Canadian oil sands development should be stopped and that fossil fuel prices should increase to make alternative energy more attractive. Instead, we should be impressed with how well the oil sands engineering and recovery technology has advanced, and the economic benefits this development brings.  Having more oil available in the marketplace has the potential to lower prices for consumers.  As an independent refiner, Valero buys all of the oil we process. Due to the administration’s misguided policies, refiners like Valero will have to buy more oil from other sources outside the U.S. and Canada. Consumers will bear the additional shipping cost, not to mention the additional greenhouse gas emissions and political risks.

With all the issues facing our country, it is absolutely unbelievable our federal government says no to a company like TransCanada that is willing to spend over $7 billion and put Americans to work on a pipeline.  The administration’s decision throws dirt into the face of our closest ally and largest trading partner.

The point above is that it is not about pipelines as many pipelines cross the Ogallala Aquifer, in the Great Plains region, and, in fact, there is already significant oil and gas production in the area covered by the aquifer. This is politics at its worst.

Thanks for your support.



Thanks to Mark, a loyal reader of this blog, here is a Bruce Thronton column on this subject, attributing the defeat of the Keystone XL pipeline to out and out Marxism.  He's right.  Read how by clicking HERE.