The Keystone X-L Pipe Conundrum II

It's unfortunate that the Keystone pipe was shelved but it is merely one of many projects on the go. When Americans decide to import oil from a safe and friendly country at a greater discount perhaps we'll send them some.

I don't know anything about Congressman Rob Bishop's policies but I have to agree with this:

“As far as I can tell, the President’s energy agenda is simply to make it harder and more expensive for the American people to get by. Whether he likes it or not, the U.S. needs oil and since he won’t allow the U.S. to produce more domestically, we are forced to import it from other countries. Canadian crude oil refined by the U.S. is one of the safest and most affordable alternatives we have to meet our domestic oil demands, which currently outpace supply,” Congressman Rob Bishop

I

This and That

"Canada must reduce its dependence on the United States and look to Asia's rising fortunes, Premier Alison Redford told an Toronto audience during an Economic Club of Canada keynote speech on Wednesday.
Redford said her government remains committed to the delayed Keystone XL pipeline to Texas but the province needs more customers for its oilsands products.

"Our success is dependent on exports and the prosperity they bring, but U.S. demand is declining," the premier said during her first visit to Toronto as premier.

"Asia's star is rising and it will dominate the 21st Century. We can guarantee national prosperity for a long time to come by supplying them with the energy that they need."


Premier Redford hits the nail on the head when she starts the conversation of creating an energy supply chain to Asia. If Keystone isn't ready, lets diversify. The more global partners, the merrier. Read More Here

"A CIBC report suggests that over the next two decades, energy infrastructure construction will add a million jobs to the Canadian economy – enough to pull it away from recessionary risk without government intervention. At least part of that depends on Canada processing its oil sands crude."

As the battle over the Keystone XL pipeline threatens to upset exports from Canada’s oil sands to the United States, an old dream to make Alberta an oil-processing powerhouse is back on the table.

Alberta’s energy industry has long counted on the planned pipeline to carry much of the province’s ever-increasing volume of oil sands output to refineries on the U.S. Gulf Coast. Go to article

Finally some sense

I can never understand why anyone would want oil from the Middle East when safe, friendly Canada has billions of barrels of it. The green argument for me is easily overpowered by the terrorist/ethical argument. With companies like Cenovus and others leading the way in green technology what will happen when the oil sands improve their impact and still produce enough oil to meet North American needs with a bit left over? Anyway Canada and Alberta are doing very well economically now if only we could settle Europe.

Three excellent articles - the comments are always interesting.

Keystone Project would create jobs - boost economy - "While oil and gas are not the only ingredients required for America's energy independence and security, they will be vital to our nation's economic health for decades to come. Today, 60 percent of America's total energy needs depend on oil and natural gas, and more than 95 percent of the energy required to power America's transportation industry comes from oil and gas."

Greens want terror oil in your gas tank - "Although opponents argue the pipeline is inherently dangerous because of potential harm to farms, wildlife and water aquifers as it cuts across Montana, the Dakotas, Nebraska, Kansas, Oklahoma and Texas, in truth, the anti-XL campaign is aimed against expansion of the Alberta oil sands. Environmentalists claim production in the oil sands is contributing to greenhouse gas emissions, destroying the arboreal forests and killing migratory birds. On a recent visit, I saw no evidence of these claims. Indeed, relative to both the geographic and carbon footprints of most onshore and offshore oil production, the Alberta oil sands compare quite favorably."

Former Tory minister touts megaprojects to create jobs, boost economy - "If we are smart about this, we can build out our country, create jobs and still maintain one of the lowest debt-to-GDP ratios in the world. We don't need short-term stimulus spending, we need support for economic infrastructure that creates wealth," former environment minister Jim Prentice

The Keystone X-L Pipe Conundrum

Good? Bad? What is your opinion of it? A North to South (Canada to USA route) and a West To East (Across AB and BC to Asia) will definitely improve the size of market and increase production.

Aside from potential environmental impact, which as always needs to be carefully weighed and protected, there is the issue that Peter Lougheed raises about jobs going South. While I can empathize with what he is saying, I wonder if Alberta has the manpower or can import enough well-priced labour to refine its own oil. Last time I checked we are often on the tipping point of a labour shortage.

Is there that much more benefit to refining once the refinery has been built? Remember we do have one new refinery being built now. It looks like a funnel south is a more viable option. Any ideas to add?