Keystone XL Pipeline: A Product of China

There is a lot of talk about the Keystone XL pipeline lately.  These are a few of my thoughts.  Personally, I’m against it because it will not only raise gas prices, but it will also increase the influence what other countries dictate upon our soil.  It will also not do anything to reduce our energy dependence upon foreign oil because oil is a global commodity.

Even if we drilled as much oil as possible, the oil is a global product, meaning that it will be sold to the highest bidder, which could be any country in the world, thus furthering our dependence upon oil.  Gas prices will always continue to climb as long as there is a high global demand.  The only way for the oil prices to ever come down is if there is a low GLOBAL demand.

Oil companies are in business to make a profit.  Their customers are countries from all over the world.  Oil companies don’t “need” America because if we don’t buy the oil, they’ll easily sell the oil to other countries, especially being that demand for oil in America is falling, so they will push harder for other countries to make up the difference.

Secondly, oil companies will do anything to fabricate numbers in order to get approval to any project that will bring more profit to the company, including the vastly overstated job numbers with the Keystone XL pipeline, because they have customers in China anxious to buy the oil that crosses American soil from Canada.  The United States will hardly benefit from the dealings going on between China and Canada, even if the Keystone XL pipeline came to a reality.

Gas Prices Also to Rise Upon Keystone XL Pipeline Completion

Gas prices: Keystone XL will increase gas prices for Americans—Especially Farmers

• By draining Midwestern refineries of cheap Canadian crude into export-oriented refineries in the Gulf Coast, Keystone XL will increase the cost of gas for Americans.
• TransCanada’s 2008 Permit Application states “Existing markets for Canadian heavy crude, principally PADD II [U.S. Midwest], are currently oversupplied, resulting in price discounting for Canadian heavy crude oil. Access to the USGC [U.S. Gulf Coast] via the Keystone XL Pipeline is expected to strengthen Canadian crude oil pricing in [the Midwest] by removing this oversupply. This is expected to increase the price of heavy crude to the equivalent cost of imported crude. The resultant increase in the price of heavy crude is estimated to provide an increase in annual revenue to the Canadian producing industry in 2013 of US $2 billion to US $3.9 billion.”
• Independent analysis of these figures found this would increase per-gallon prices by 20 cents/gallon in the Midwest.
• According to an independent analysis U.S. farmers, who spent $12.4 billion on fuel in 2009 could see expenses rise to $15 billion or higher in 2012 or 2013 if the pipeline goes through. At least $500 million of the added expense would come from the Canadian market manipulation.

Some say that they’d rather send Canada money for oil than the Middle East.  Well first off, it’s China and other countries that will be buying most of the oil, not the U.S.  China already has investment into various oil sand projects in Canada, even as much as 60% stake, but because Canadians are fiercely rejecting a pipeline proposal in Western Canada, they’ve been looking at the Keystone XL pipeline as another route.

Link to image above (PDF page 25)

There are other countries that are making investment into Canadian oil such as Australia and Thailand so the Keystone XL pipeline will help supply the needs of many countries not only in Australia, Thailand and China, but also Latin America and Europe.  Remember the crisis of the oil pipeline crossing Ukraine from Russia to Europe?  The Keystone XL pipeline will give Europe another avenue for oil should that crisis happen again.  So in other words, there is a high demand by other countries for Canadian oil, and also because the oil is coming from a country that is stable, and not owned by the government, as it is owned by unstable countries in the Middle East.

So the Keystone XL pipeline will create huge opportunities for oil companies because they will be able to deliver to multiple countries from this route, whether it be across the Atlantic Ocean to Europe, or through the Panama Canal to China and other countries in Asia.

Keystone XL Pipeline Holds the U.S. Hostage to the Needs and Demands of Other Countries.

If we truly want to be energy independent, we need to invest into projects that are not reliant upon global demand.  Oil prices are based upon global demand.  Renewable energy is not dependent upon global demand.  Another future problem with relying upon oil is that many other countries don’t have the technology to become energy independent, so they will be fighting among each other for the same sources of energy.  The United States has the technology, the means, the manpower, and the innovation to become energy independent.  Investing more into renewable energy will also create thousands of jobs that will stay right here in the country, which will be permanent jobs, not temporary ones.  Money from such jobs will help circulate throughout the economy.

While President Obama wants to delay a decision on the controversial Keystone XL pipeline until after the 2012 election, Canada’s Prime Minister Stephen Harper is stepping up efforts to explore an alternative pipeline that would allow Canada to ship their tar sands oil to China.

On Tuesday, an independent federal panel in Canada will begin its review of a proposed western pipeline that would carry the oil from Alberta to the coast of British Columbia. From British Columbia, the oil would be shipped on tankers to oil-hungry China.

http://content.usatoday.com/communities/theoval/post/2012/01/obama-canada-alternative-route-keystone-xl/1

China invests billions in Canada oil sands

“……Chinese firms are rushing to snap up Canadian oil sands resources and invest in ongoing projects – to the tune of $15 billion in the past 18 months in Alberta alone.”  (Click here for article)