New XL Keystone Pipeline Application Filed

Calgary based Trans Canada Corp has filed a new application for the XL Keystone pipeline with the U.S. State Department.  The pipeline would carry crude oil from Hardesty, Alberta to Cushing Oklahoma.  The new application includes the new 33km route around the environmentally sensitive Nebraska sandhills.

Earlier this year the initial application was put on hold beyond he U.S. election in 2012.  The Obama decision appeared to have been fueled by months of protests, including Hollywood celebrities, by environmentalists.  The project, which had undergone two environmental assessments, was widely believed to have been delayed for political reasons.

Meanwhile, House Republicans had attempted get approval of the pipeline by including in other legislation, when President Obama rejected the application. 

A pipeline crossing the international border between Canada and the U.S. requires a presidential permit, however TransCanada earlier planned to go ahead with the southern portion from Cushing, OK to Port Arthur, TX, which did not require presidential approval.

The State Department released a statement on Friday, stating that it would consider the pipeline on its merits. 

"We will consider this new application on its merits," the State Department said.  "Consistent with the Executive Order, this involves consideration of many factors, including energy security, health, environmental, cultural, economic, and foreign policy concerns."

The pipeline will not only transport oil from the Alberta oilsands, but will also deliver oil from the Bakken Basen, which has oil from Mantioba, Saskatchewan and North Dakota.  The $7.6 Billion pipeline is a job creator, with high paying union jobs, provides energy security, with the volatility in the Middle East.

Trans Canada CEO,  Russ Girling, said in a statement on Friday that the pipeline would boost the U.S. economy, once completed. 

"The multi-billion dollar Keystone XL pipeline project will reduce the United States' dependence on foreign oil and support job growth by putting thousands of Americans to work, Keystone XL will transport U.S. crude oil from the very large Bakken supply basin in Montana and North Dakota, along with Canadian oil, to U.S. refineries," Girling said.

Trans Canada Corp hopes to start constructing the pipeline in early 2013, with the pipeline delivering oil by 2014 or 2015.

With the political atmosphere in the United States prior to the election, it is not expected that approval will be granted prior to the November election.  It is sure to be a hot button issue during the election campaign. 

Power Politics in Washington and the XL Keystone Pipeline

Weeks of protests by environmentalists and celebrities resulted in a delay of the XL Keystone Pipeline decision beyond the 2012 Presidential election.  Politics appears to have been the main motivating factor to delay the Pipeline.   Although there have been two environmental impact assessments and the Nebraska objections addressed, Obama arbitrarily delayed the decision for yet another environmental assessment. 

The pipeline delay has more to do with the Alberta Oil sands than any danger to the environment the pipeline would cause.  The latest technology and extraordinary safety measures will be used to ensure the safe operation of the line. 

The United States needs the oil whether it comes from the oilsands or elsewhere.  The politics of oil is complicated.  When you compare the reaction to Libya and the subsequent imposition of a "no fly zone" and removal of Gaddafi from power, and the situation in Syria, there is a noticeable contrast to the reaction in either case.   Libya's so called protection of civilians had more to do with securing an important supply of oil for European nations.  While Syria has oil it is not crucial to the overall world supply.  Of course this is a simplistic explanation and there are many other factors, including the location of Syria and its alignment with Iran. 

The oil sands is a safe supply of oil that in the end will serve to bring some energy independence and satisfy national security for the United States.  Environmentalists, who have used the oil sands as a whipping boy for their cause, are in Obama's corner and vital for his re-election next year.  While they would never vote for GOP candidates, they can have a damaging impact if they decide not to vote at all. 

If you assume that politics is the main factor for delaying the decision beyond the 2012 election, then you can easily see that the GOP wants to milk this shovel ready project, pointing to the fact that if the President wanted to create jobs, approving the pipeline is a "no brainer."

In the current payroll tax reduction debate waging in Washington, the Senate has defeated both a Republican and a Democratic bill.  The House is scheduled to vote on a new proposal today, which includes a measure that would require the Administration to reach a decision within 60 days.  Even if it did pass, the Administration says congressional interference could kill the project altogether.   Harry Reid has said that the bill is dead on arrival in the Senate, while Obama has vowed to veto the bill. 

The Associated Press

Date: Tuesday Dec. 13, 2011 6:55 AM ET

WASHINGTON — The Obama administration says a Republican bill to fast-track approval of a Canadian oil pipeline could lead to the project's demise.
In a statement Monday, the State Department warned that congressional interference with TransCanada's Keystone XL pipeline could backfire.
The State Department has authority over the project because it crosses an international border.
The statement said that if Congress imposes an arbitrary deadline for a permit decision, it could prevent the administration from meeting environmental laws that govern the approval process.  CTV

In this political election cycle, politics are trump.  With each side trying to get the upper hand, the debate around the XL Keystone Pipeline is being used for "political football" by either side.  Meanwhile two towns at either end of the pipeline, Hardesty, Alberta and Port Arthur,TX, are being kept in limbo.  Political division is hurting people, while Washington carries on with business as usual.  Will they ever wisen up?

Canada's Prime Minister Seeks One on One Bilateral Meeting with Obama

Stephen Harper, Prime Minister of Canada and staunch supporter of the XL Keystone Pipeline, is seeking a one on one meeting with US President Obama.  Canada was caught unaware of the decision by the Administration when it decided to do further studies on the project, voicing environmental and health concerns.

Both leaders are at an APEC summit.  Obama will also be visiting Australia and Indonesia on a nine day trip.

The President, who has been campaigning on his go nowhere "Jobs Act", has turned down 20,000 good paying jobs and an injection of $Billions into the economy.    The long awaited border deal, which would ease movements across the border is also outstanding.  Harper also wants to address the "Buy American" provision, which Obama supports.

The two leaders were to be attending a "Three Amigo" summit, which was abruptly cancelled due to the death of Mexican Interior Minister Francisco Blake Mora in a helicopter crash on Friday.

The President, at the very least, owes Prime Minister Harper a meeting on these subjects and other North American issues.  Canadian Finance Minister, Jim Flaherty said yesterday that the delay of the pipeline could in fact cancel the deal.

The pipeline approval has been in a 19 months process, and both EPA and State Department Environmental Impact Studies have deducted that there would be limited environmental impact.  While the opposition wants a rerouting from the Nebraska Sand Hills, the timing has been questioned.  Nebraska with Kansas and other midwestern states are heavily subsidized for ethanol production and some feel that this is the real motivation.  Of course President Obama also worries about his left base, which he needs to turn out for the 2012 election.

He said Harper is pushing Obama for a bilateral meeting to discuss two key issues: the possible cancellation of the Keystone XL pipeline; and the long-awaited border security deal.
"If he doesn't get (the meeting), journalists could interpret this as a snub of the prime minister," Fife said.
The U.S. president has meetings scheduled with the prime minister of Japan and the presidents of China and Russia.
A meeting with Obama would give Harper a boost in the face of what might otherwise be a lacklustre few days in Hawaii.CTV Edmonton

The bilateral meeting will coccur later today and PM Stephen Harper has reassured Canadians that the US anti-Canadian decisions are political posturing, a part of the political season.

Harper said that Canada has already voiced its disappointment with these decisions, but that he is confident that the projects will eventually go ahead, because they make imminent sense.  He said that the pipeline is not only in the best interest of Canada but also in the best interest of the United States.  He also said that this decision underscores the need to gain access to the Asian markets for Canada’s energy products.

 Harper has three issues that he wants to address with Obama,  The XL Keystone Pipeline Decision, The Perimeter Security Border Agreement and the “Buy America” measure, which has resurfaced in Obama’s Jobs Act.  Politisite.com