The Keystone XL Pipeline could turn out to be the exploding dye-pack of the Obama administration's energy policy. In order for the most recent debt extension to pass Congress, the president agreed to a February 21 deadline for deciding whether to approve or halt the plan. The proposed Keystone XL Pipeline is a conduit for shipping Canadian oil to refineries in Texas. There is a split in the president's base, with environmentalists opposed and unions favoring construction. With many Americans clamoring for energy independence, the pipeline pits the president against House and Senate Republicans in an election year. But what are the deciding factors for voters?
Won't the Keystone XL pipeline negatively impact the Nebraska Sandhills and the Ogallala Aquifer in Nebraska?
TransCanada, the company constructing the pipeline, agreed in November 2011 to circumvent both these sensitive areas and are re-routing the line, according to Tulsa World. The re-routed pipeline route will be the subject of public hearings likely to be held next month. The pipeline had already undergone three years of intensive environmental impact studies when President Obama halted the pipeline's construction.
Won't most of the oil that would be shipped through the Keystone XL pipeline be sold to foreign countries?
That's a common assertion of the anti-pipeline groups, exemplified by organizations like Nation of Change. Nation of Change also asserts the oil is not needed because of slowed global economic activity and "higher fuel economy standards." But this month, the president of the American Petroleum Institute blasted pipeline opponents and the Obama administration for additional delays. The Guardian quoted API's Jack Gerard:
"This issue is very simple and straightforward, it's about jobs and national security."
Rep. Lee Terry (R) Nebraska, an avid supporter of the pipeline and the jobs it would create, told a CNBC audience this morning that most of the oil would remain in the U.S. and was already under contract to U.S. buyers. Rep. Terry said he believed that President Obama's decision will be to kill the Keystone XL Pipeline project.
What would be the impact on the economy if President Obama kills the project?
That is a matter of considerable dispute, with liberal and progressive organizations like Media Matters taking issue with more conservative Fox News on the estimated 13,000-20,000 direct jobs the project could create. There is wide disagreement on the number of "spin-off" jobs which would be created. Some have estimated upwards of 100,000 jobs while low estimates are in the range of a few hundred.
If environmental studies were satisfactorily completed, why would the Obama administration posit additional delays on the Keystone XL?
Whatever decision the president makes will cause political damage, evidenced by arrests at the White House. The delay imposed by President Obama is a third option, intended to frustrate the Canadians into turning away from the U.S. There are strong signs that this has already happened. Yahoo News today carries the transcribed interview conducted by the CBC with Canada's Prime Minister Stephen Harper. Mr. Harper explained Canada's plans for rerouting its oil production to Asia-- in its own sovereign interest. Harper essentially told the CBC correspondent he didn't want to be "hostage" to U.S. factional debates.
How much of OPEC oil would be offset by construction of the pipeline?
Along with other construction specifications, the Canadian Broadcasting Company reports that the XL pipeline would have the capacity to move 830,000 barrels of crude per day.
Anthony Ventre is a freelance writer who has written for weekly and daily newspapers and several online publications. He is a frequent Yahoo contributor, concentrating in news and financial writing.
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