The controversy surrounding the proposed Keystone XL pipeline reached new heights Friday when the U.S. State Department hosted the last in a series of public hearings on the 1,700 mile pipeline. It would carry tar sand crude oil from Canada to Texas.
The Washington, D.C. hearing drew the national news media’s attention. In turn, the news reports that followed missed the most important point behind the controversial project.
They suggest the proposed pipeline is a trade-off pitting environmentalists against new jobs, lower oil prices and a dependable foreign oil supply.
NPR reports: This one pits potential job growth versus environmental concerns.
The Washington Post reports: Hundreds of members of the Laborers’ International Union of North America filled the auditorium at Friday’s hearing; Brent Booker, who directs the union’s construction department, said the project will provide “thousands of jobs” to his members….Shortly afterward, two Nebraska women broke down in tears as they testified. Alaura Luebbe, a rancher’s daughter, sobbed as she spoke of her ranch being threatened by the project, while activist Jane Kleeb declared, “We are the Sand Hills lovers. We are the Ogallala Aquifer lovers. And we are begging you — not asking, we are begging you — to deny this pipeline permit.”
The real story: The Keystone XL pipeline is a litmus test of President Obama and our political leadership’s resolve to make a true commitment to alternative energy in America and ween ourselves from foreign energy reliance? It’s also a test of the American consumers’ ability to consume less energy and create less waste.
It won’t be easy. If our leaders, as well as and you and I are sincere about America’s security, energy independence and guiding our own national destiny we can do this. A sustained move to alternative energy sources is a commitment we’re better off making today, before we deplete traditional energy sources, cause more pollution and burden future generations of Americans.
To be sure, other concerns have been expressed by opponents and supporters of the project. Supporters say the Keystone XL project could create 20,000 pipeline equipment and construction jobs, and give us lower oil prices courtesy of a more dependable foreign importer. Opponents say the costs will be the pipeline’s “dirty” extraction process, human health problems, permanent damage to Canada’s forests and a pollution threat to places like Nebraska’s Sand Hills country and the Ogallala fresh water aquifer.
Conflicting jobs message: If the pipeline is approved, most or all of those 20,000 jobs will end when the construction’s complete. It should be noted that according to TransCanada data supplied to the State Department, the project will only create between 2,500 and 4,560 construction jobs in the U.S. A recent Cornell University report says “[the pipeline] will not be a major source of US jobs, nor will it play any substantial role at all in putting Americans back to work.”
Instead, lets get back to Barack Obama’s economic recovery plan of two years ago. It envisioned creating about 500,000 jobs by making new investments in clean energy, doubling the production of alternative energy over three years and improving the energy efficiency of government buildings and homes.
Lower oil prices? Maybe not. Here’s another reason Mr. Obama, the State Department and politicians from both parties might be better off denying a permit for the Keystone XL pipeline- Many pipeline supporters suggest it would lead to more stable or lower oil prices due to the new influx of up to 700,000 barrels of crude oil a day from Canada.
CNN reports: “For the Obama administration, having an answer to high prices will be much more important in 2012 than it is today,” said Kevin Book. managing director at the research firm ClearView Energy Partners. “We think it will get approved.”
According to a CTV report, the Keystone XL pipeline might actually increase oil prices. It would do so by reducing the crude oil over-supply problem in Cushing, Okla., one of the largest crude storage facilities in the world. Industry analysts say this has driven prices down.
Via CTV: “We have a unique problem now with North American supply,” said Mike Ming, Secretary of Energy for the State of Oklahoma. “We’ve brought on more oil supply than we really have outlets to get it to market and it’s tended to bottle up at Cushing.” Cushing is the prime delivery point for New York oil futures contracts and helps set the value of West Texas Intermediate, North America’s benchmark oil price.”The problem is, we’ve got too much oil in Cushing relative to our pipeline capacity to get it out to the Gulf Coast mainly, because that’s where the majority of the United States refining capacity is,” said Mike McDonald, the former Chair of the Oklahoma Independent Petroleum Association… If it is approved, the TransCanada Keystone XL Pipeline would link Cushing to refineries on the Gulf Coast with a 500,000 barrel-a-day spur line, helping to relieve the glut and the pressure on West Texas Intermediate.
Conflict of interest? Finally, the proposed pipeline permit should be denied because of the real or perceived conflicts of interest involved in this project.
On October 7th, The New York times reported: The State Department assigned an important environmental impact study of the proposed Keystone XL pipeline to a company with financial ties to the pipeline operator, flouting the intent of a federal law meant to ensure an impartial environmental analysis of major projects…The E.P.A. has criticized two prior draft environmental impact statements prepared by Cardno Entrix on Keystone XL as “inadequate” and providing “insufficient information,”
A few days earlier-
The New York Times reports: The State Department has also faced charges of political conflict of interest over its handling of the Keystone XL application because TransCanada’s chief Washington lobbyist, Paul Elliott, was a top official in Hillary Rodham Clinton’s 2008 presidential campaign.
What is the state of our nation’s political accountability and transparency? Can we create sustainable energy policies that support our economy and democracy while, at the same time, provide America greater control of its destiny? These are real questions. The decision on the Keystone XL pipeline project will tell us if the Obama administration is truly willing to act in the best interests of our country and set us on a new course of self-reliance and energy sustainability.
What are your thoughts on the Keystone XL pipeline proposal? I’d like to know.