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Obama Delays Decision On Keystone Pipeline Yet Again

Hugh Pickens DOT Com (2995471) writes "The Christian Science Monitor reports that once again, the Obama administration has pushed back a final decision on the controversial Keystone XL pipeline possibly delaying the final determination until after the November midterm elections. In announcing the delay, the State Department cited a Nebraska Supreme Court case that could affect the route of the pipeline that may not be decided until next year, as well as additional time needed to review 2.5 million public comments on the project. Both supporters and opponents of the pipeline criticized the delay as a political ploy. Democratic incumbents from oil-rich states have urged President Obama to approve the pipeline but approving the pipeline before the election could staunch the flow of money from liberal donors and fund-raisers who oppose the project. The Senate Republican leader, Mitch McConnell said in a statement that "at a time of high unemployment in the Obama economy, it's a shame that the administration has delayed the construction of the Keystone XL pipeline for years." Activists say its construction could devastate the environment, but several State Department reviews have concluded that the pipeline would be safe and was unlikely to significantly increase the rate of carbon pollution in the atmosphere. Even if the pipeline was canceled, it said, the oil sands crude was likely to be extracted and brought to market by other means, such as rail, and then processed and burned."

38 of 206 comments (clear)

  1. Irrelevant... by Karmashock · · Score: 5, Interesting

    Every action that increases the cost of gasoline increases the profit in producing it.

    What the anti oil people have failed to grasp is that they're making the oil companies rich at everyone else's expense.

    If I didn't know better, I'd think the whole anti oil campaign were a conspiracy by the oil companies to raise prices. Because that has been the result.

    We are only getting fracking in the first place because oil got expensive enough to justify the practice. If oil were cheaper then there would be no fracking.

    Increase the cost further and see what happens next. But it won't be the green revolution.

    Long story short, batteries are what is holding back green technology. Batteries are shit. Until that changes the green revolution will mostly be a luxury feel good item for the wealthy. Anyone outside of the elite simply won't be able to afford to go fully solar with an electric car, etc.

    Which means we're on gas. And prices for gas will have to get astronomic before it will overwhelm the price advantage that gas has over electric.

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    1. Re:Irrelevant... by Anonymous Coward · · Score: 5, Funny

      I power my car with the energy produced from coal therefore I am better than you lowly gas guzzling people.

      The hypocrisy is mind blowing.

    2. Re:Irrelevant... by sumdumass · · Score: 4, Insightful

      What you fail to realize is that most of them could care less if the oil companies get rich or not. They are more concerned with controlling you and getting your vote. The evil oil companies is just a windmill for you to tilt at while they cheer you on claiming to do something about it while you gladly vote for them.

    3. Re:Irrelevant... by ShanghaiBill · · Score: 3, Interesting

      What the anti oil people have failed to grasp is that they're making the oil companies rich at everyone else's expense.

      This is not about facts. It is about a litmus test of ideological purity. Like spotted owls and SDI, it has taken on so much symbolic importance as a political dog fight that the underlying facts no longer matter at all.

    4. Re:Irrelevant... by rmdingler · · Score: 2
      Increased energy use is a self-correcting system.

      As it gets more expensive, there is economic pressure to use less, or to find more efficient ways to use the energy available.

      Without market distortions, such as massive subsidies for current forms of energy production, higher costs lead to new energy generation methods.

      --
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      Ernest Hemingway

    5. Re:Irrelevant... by Bing+Tsher+E · · Score: 2

      Also, if the electric utility has nuclear power plants, his car is steam powered.

      Only if it's powered by ground up eagles and other birds is it green.

    6. Re:Irrelevant... by Anonymous Coward · · Score: 2, Insightful

      I power my car with the energy produced from coal therefore I am better than you lowly gas guzzling people.

      Indeed, centralized coal power produces less pollution per unit of energy than the IC engine of a car. Running a car on coal electricity will produce less carbon pollution per mile.

      The hypocrisy is mind blowing.

      More like your understanding of reality is flawed. Efficiency comes with scale; electric power stations are quite efficient, IC engines are not.

    7. Re:Irrelevant... by khallow · · Score: 2

      If thats the only 'fact' supporting why it should be approved, then it should not be.

      This is why US law permits what it doesn't explicitly ban. So people like you can't just block things without a reason. Making money is not something that just magically happens. It occurs for two reasons, either someone is providing a service of value and receiving adequate compensation for it. Or someone is forcing someone to buy their shit. Making money in the absence of coercion implies that a good or service of value is being traded voluntarily.

    8. Re:Irrelevant... by Uberbah · · Score: 2

      What you fail to realize is that most of them could care less if the oil companies get rich or not. They are more concerned with controlling you and getting your vote.

      Painfully facile, even for you. You could try and make counter-arguments that the mining of the tar sands wont trash the environment, that the pipeline will somehow be built without eminent domain, that the constant leaks that happen with every other pipeline of length wont happen with this one, how the processed fuel wont be the dirtiest petroleum product you can make, or how it will drop the energy costs of Americans by so much as a cent.

      But why do any of that when you can attack some giant mind-controlling hippie straw man?

  2. after november... by ganjadude · · Score: 4, Insightful

    It seems he likes to make all of his decisions after november.

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  3. Build refineries in ND by rossdee · · Score: 5, Interesting

    What they need to do is build refineries in North Dakota, where there is plenty of oil, and also natural gas to power them.
    We don't want all the refining capacity of the nation to be in the Gulf where it could be all shut down by a hurricane. (stronger and more frequent due to climate change)

    1. Re:Build refineries in ND by SylvesterTheCat · · Score: 2

      An interesting idea. Distributed refining capacity would sound like a good idea.

      I suspect that it was considered. At least, I would hope that it was considered.
      I wonder what the cost, lead time, environmental requirements, etc. are for constructing a refinery.

    2. Re:Build refineries in ND by Major+Blud · · Score: 3, Interesting

      This makes sense, but refineries takes years to build and perhaps a decade to come online. They also need to be built next massive water resources (which is why so many in the gulf are next to the Mississippi river) for cooling purposes and barge access.

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    3. Re:Build refineries in ND by confused+one · · Score: 3, Informative

      This. It would talk longer to build the refinery than it would to build a transcontinental pipeline. In addition, if you think they're having problems trying to build a pipe from Canada to Texas to flow crude oil, wait till they try to build a large refinery in ND and then build the pipeline to carry the processed output across country. You'll have people pulling the NIMBY card for the refinery. The same people trying to stop the crude pipeline, trying to stop the gasoline pipeline. And lots of others complaining about the increased truck and train traffic carrying the hazardous chemical secondary production outputs and byproducts.

  4. Texas needs water, not oil by LordNimon · · Score: 4, Interesting

    Why can't we have a pipeline that brings fresh water, instead of oil? That would be a lot more helpful. We've been a serious drought for years, and there's no sign it will let up.

    --
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  5. Turtleman speaks by andydread · · Score: 5, Insightful

    Mitch McConnell is a riot. Always when the turtleman speaks one should verify the facts and when you look at the data from no other than TransCanada about the number of *permanent* jobs this specific pipleline will add to the US economy it tops out at around 3600. Meanwhile you have Americans suing to not have that pipeline cross their land or have their land commandeered by the federal government.

    1. Re:Turtleman speaks by Anonymous Coward · · Score: 3, Informative

      Actually the number of permanent jobs will be 35. http://www.newsweek.com/state-department-keystone-xl-pipeline-would-only-create-35-permanent-jobs-228898

  6. Does. Not. Compute. by stomv · · Score: 3, Informative

    My part of the country gets about 5% of our electricity from coal. The largest share (though not the majority) is natural gas, with big chunks of hydro, nuclear, and small but growing chunks of wind and solar and biomass/landfill gas. The carbon intensity of the electricity in my region per usable energy (say, per mile the vehicle can go) is less for electric than for gasoline, by a pretty wide margin.

    Furthermore, if a person has PV panels on his own house, he can legitimately claim that his vehicle is low carbon emissions even if he does live in Kentucky or Ohio or Arizona or any other significantly-coal-dependent state.

    Furthermore, coal plants are being retired all around the country. There's currently about 300 GW of coal fired capacity in tUSA -- by 2020 it will be closer to 220 GW. Folks who want less carbon emissions are opposed to building new capital infrastructure which will facilitate more carbon emissions for decades to come. Those folks would rather spend money (and create jobs) building wind turbines and solar farms and expanding subway and bus lines and switching more truck delivery to rails and switching from the manufacturing of gasoline fired autos to electric vehicles.

    The folks who oppose the Keystone aren't in favor of coal fired electric power plants. That's pretty freaking obvious.

    1. Re:Does. Not. Compute. by mikeabbott420 · · Score: 5, Insightful

      they might not be in favor of shipping oil by rail either, but that's what's happening because of them.

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  7. Tax Gift for Oil - ND Needs the Pipeline by Kagato · · Score: 5, Insightful

    North Dakota has saturated rail and road traffic trying to get it's crude out of the state. At the same time Natural gas is simply being burned off because there's no pipeline infrastructure to transport it. Pipelines that were being used to transport natural gas to the midwest from the east coast and gulf states will no longer be able to be used next year because they are being converted for use in transporting chemicals needed for tar sand conversion in Canada.

    The reason big oil companies want the pipeline from Canada and not North Dakota is because there's a multibillion dollar tax loophole related to foreign oil processed in US refineries for export. Which is why the pipeline runs to the coast. Keystone Excel will have no effect on US fuel prices because it's not designed to sell fuel on the US market. It's quite likely that Keystone will result in refining capacity being taken out of the US market as it's used for export. All the signs point to this project actually costing the tax payer more at the pump in the end.

    Let's also not forget the natural gas problems this creates for the upper midwest. They currently get their natural gas from Canada. Tar sand production need incredible amounts of natural gas. That's expected to increase prices people will be paying to heat their home. At the same time there's no plans now or in the future to bring more natural gas to upper midwest from the east coast. If anything they are losing capacity in order to support the tar sand production.

    1. Re:Tax Gift for Oil - ND Needs the Pipeline by jayveekay · · Score: 3, Insightful

      Keystone Excel will have no effect on US fuel prices because it's not designed to sell fuel on the US market.

      Oil is a global commodity. Increasing the supply or decreasing the demand anywhere will affect prices worldwide.

  8. Re:Not at all by ShanghaiBill · · Score: 4, Informative

    Every action that increases the cost of gasoline decreases the consumption.

    Oil has a very flat demand curve. When the price doubled from $2 to $4 per gallon, demand went down about 3%. In the long run, people will buy more efficient cars and change their commuting patterns, but in the short run most people have no choice but to just suck it up and pay.

    America produces most, but not all, of the oil it consumes. The oil companies make WAY more profit on domestically produced oil, because foreign governments capture most of the profit on their oil exports. If demand drops due to higher prices, the oil companies import less foreign oil (the least profitable) and make a windfall on domestic oil.

  9. Re:Still need pipes by Kagato · · Score: 2

    I think the OP is taking about skipping tar sands and refining the oil and gas in North Dakota. On the US side of the border there's hundred of BILLIONS of barrels of sweet light crude. Not to mention trillions of cubic feet of natural gas. So far the only pipeline out of there goes to a superior Wisconsin refinery. And that's just for the oil. Natural gas is just burned off. There's no pipelines currently to move the crude to the major refining states. It has to be moved via rail and truck, which is already saturated to capactiy.

  10. We've come a long way since the 1880s by hessian · · Score: 3, Interesting

    In the present day, the steam plant is located far from the occupants of the car, thus the cars are safer. But otherwise, it's the exact same technology. That's progress(tm)!

    Come to think of it, have we made any really startling breakthrus since the internal combustion engine and computer itself? I mean, other than obvious stuff like improving those gadgets and linking them together.

    1. Re:We've come a long way since the 1880s by Curunir_wolf · · Score: 3, Insightful

      Nuclear is a fairly startling breaktrough, although it uses steam for power generation. And solar. Get fusion working, and it will be a big change (but again, it will use steam).

      There are ways to directly generate electricity from fusion reactions. Lawrence Livermore Laboratories actually demonstrated it in the lab and came out with greater than 85% efficiency from this system (heat-based systems max out near 50%). Before I'm criticized for even mentioning it, yes, it's more complicated and difficult that just hooking up a turbine. It's still feasible, and should not be dismissed out-of-hand as an area of research in fusion power generation. In the long run, it would be much cheaper.

      --
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      --- Jerry Garcia
  11. Obama = Coward by optimus2861 · · Score: 3, Insightful

    I would have loved to been a fly on the wall in Canadian Prime Minister Stephen Harper's office when this non-decision was announced. Obama has once again taken the cowardly way out and punted a tough decision. He wants to continue to fundraise from environmentalists by saying "We're being tough on the Keystone pipeline and insisting it meets our environmental standards!" and then do the same with the big business crowd by saying, "We haven't said no to Keystone, we just want to make sure it meets our environmental standards." He doesn't actually want to make the decision, because then one crowd or the other will tell him to pound sand. Even though the entire job of being President of the United States is about making those decisions!

    Worst president of my lifetime. Not even close.

    1. Re:Obama = Coward by schnell · · Score: 3, Funny

      Worst president of my lifetime. Not even close.

      Your writing skills are excellent for someone who was born after George W. Bush left office.

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  12. DeVry MBA /|\ by Hognoxious · · Score: 3, Interesting

    Every action that increases the cost of gasoline increases the profit in producing it.

    I know a guy who runs a sandwich shop. Next time I see him I'll tell him to throw away 50% of his ingredients, leave the ovens on full even when he's closed and take on employees whose sole function is to break things.

    He'll be pleased as puch at all the extra money he'll make!

    --
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  13. State Department Report was writen by Oil Execs by corezz · · Score: 2

    I like how articles forget to mention that the State Dpt. reports were made up of people who had ties to, or paid by those in the gas and oil industry. That is why environmentalists are still up in arms. Feel free to look up who put the report together and see who they work for. It's all there.

  14. Ug... by rsilvergun · · Score: 2, Insightful

    Keystone is at best a waste for America and at worst a natural disaster waiting to happen. It's a pipeline down to Mexican refineries so Canada can sell cheap tar sands oil to China. The problem is it's a _long_ pipe line, and they have a history of breaking and nobody noticing (since it costs lots of $$$ to monitor them) until after a community's ground water is heavily contaminated. If it happens in a mid sized town or city where it's too expensive to buy everyone out those people are just screwed.

    The problem is these sorts of things are only a matter of time. With current tech maintenance costs more than allowing the disaster to happen. If the companies were severely punished for the spills that wouldn't be an issue. But if BP had to clean up their last mess they wouldn't exist as a company, and the owners would be broke. Those guys just buy off politicians until their in the clear. Heck, the CEO of TEP cried a little on Camera and got away with giving thousands of people cancer because he wouldn't pay to upgrade the safety on his factory. It was called a "Once in a 100 year event", but there were records showing it had been 100 years since the last one. That's some Mighty fine work there, Lou.

    So to summarize my rant: You're asking me, as an American, to take a big risk that sooner or later is practically guaranteed to end in an etiological disaster in exchange for at best a few thousand jobs and a bit of cheap oil for China? I think This just about sums up my feelings.

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    1. Re:Ug... by Karmashock · · Score: 2

      1. The oil will be sold where they want to sell it regardless. They're currently shipping it through other pipelines and ferrying it by truck where there are no links. You did not stop the flow.

      2. The canadians can build their own export facilities in Canada entirely bypassing the US. The canadians already take your position as a betrayal of our shared economic arrangement. The deal was that we'd provide certain assets to them and in return we got first bid on resources. You've made liars of us and the canadians are not happy about it.

      3. Pipelines have issues but they're less then alternative systems which WILL be implemented if we don't have a pipeline. Trucks crash and leak etc... and on balance you're voting for that over the other. Your idea has more environmental damage. Its anti environment.

      4. Most of the people complaining about the pipeline don't live anywhere near it so I don't buy this nimbyism nonsense because it isn't even their backyard.

      5. As to jobs and china.... I didn't say anything about either. That's you. I'm saying accept it because the oil will flow either way and all you're really doing is inconveniencing people, making things more complicated, and pissing people off.

      Nothing more.

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  15. Dither dither dither dither feckless dither by WCMI92 · · Score: 4, Interesting

    Obama only acts fecklessly after endless dithering.

    THAT is why you don't elect a "community organizer" (the politically correct term for "street agitator") President. They don't know how to lead.

    --
    Corporatism != Free Market
  16. I wonder who profits... by Trailer+Trash · · Score: 4, Interesting

    Even if the pipeline was canceled, it said, the oil sands crude was likely to be extracted and brought to market by other means, such as rail, and then processed and burned.

    Hmm, I wonder if our beloved President 1% knows any 1%ers who, say, owns a railroad company?

    Oh.

    http://www.bloomberg.com/news/...

    I wonder how Burlington Northern's doing on this latest news.

  17. Re:Not at all by Anonymous Coward · · Score: 3, Interesting

    Speaking of profits....I live in the Northeast, where we have high gasoline taxes. The "greedy oil companies" make about
    7 cents on every gallon sold. The state and Fed governments make over 30 cents per gallon sold. So who's "greedy" ?
    The suppliers of a needed commodity? Or our governments, who did NOTHING to make that energy available to the rest of us,
    except give their "permission" to sell it?

  18. Re:What would Jesus do? by Narcocide · · Score: 2

    If you want to know what Jesus would say and do you should read The Bible yourself. He's quoted heavily in the first half of the New Testament. Don't listen to what Christians these days say he would or wouldn't do or say. Obviously they don't actually read it themselves and don't know because you have gained a seriously warped idea of what Jesus actually stood for. Most of the lessons his famous parables are meant to teach were actually economic nature.

  19. The points that convinced me... by rbrander · · Score: 2

    I'm all for the End of Oil. But the tar-sands vilification got so it pissed me off and I find myself in a surprising place - in the trench with companies I've never liked. What gets to me:

    - Greenpeace created the "world's dirtiest oil" moniker with a large, sustained media campaign. I'm amazed it survived the Deepwater Horizon catastrophe. I mean, really, it's worse than just spewing a fantastic amount of raw crude right into one of the world's most fecund ocean biomes and commercial fisheries, no way to clean it up at all? Greenpeace isn't a bunch of guys around a card table anymore, their budget is $300M/year. They love theatrical campaigns more than scientific ones; it's about what creates emotion, not real ecological results.

    - Presuming (perhaps, a big presumption) that we keep on top of them with regulation, the open-pit mines are eventually filled back in and trees stuck on top - the ones where they've already done it are of course the first stop on the tour. Yes, the current mines are 200 sq. mi., "you can see them from space" ...where they look like a brown postage stamp on a green billiards table, the boreal forest being over 200,000 sq.mi. Know what else is 200 sq. mi. or so? New York City, which was a rich hunting and fishing land of the Manhattan Indians. It's not being restored to forest any time soon, because it provides living space for 8 million people, rather than 8000 Manhattans. The tar sands are providing what currently is an (unfortunate) necessity of life for 20 million people.

    - Accounts vary (for some reason) but I tend to trust New Scientist Magazine as pretty objective - their figure was that it takes the release of 70kg of carbon to extract tar sands oil, compared to 50kg for conventional. But both barrels are then *burned* releasing 200-300kg (depends on gas/diesel/etc), so the total lifecyle increase of carbon is under 10%. Yes, that's bad, but concentrating all hatred of carbon onto one source of it is, again, theatre, not science. It's like banning 3000lb SUVs and feeling very virtuous as you buy a 2700 lb SUV.

    - But above all, picking on these companies and their pipeline schemes is attacking the *producer*, not the consumption end. Speaking of "America is addicted to oil", how has that strategy worked out for the War on Drugs? It's funny, the same very liberal folks who will shake their heads at the raw stupidity of the Drug War ("all it does is drive up the costs and bring in more ruthless producers to fill the hole") imagine it will work on energy that everybody wants to buy.

    I'm all for shutting down the tar sands - but by hitting the consumption end, with research and incentives for batteries, electric cars, thorium and fusion power plants...the latter having the much greater benefit of first killing off coal-powered electric generation, a greater greenhouse issue than all oil. But when the inflection point hits with electric transportation and oil consumption actually goes *down*, the most expensive sources (tar sands) will be the first ones shuttered. Speed the day.

    PS: Yes, I'm from Calgary. But I don't work in oil/gas, nor does anybody close to me. This is not as much about Canada as you may imagine. Almost all the $200B invested up there is from American companies. We barely tax them - less for oil than Palin's Alaska or Cheney's Wyoming. Our cut was just jobs building it. My family pioneered Alberta for two generations before oil was discovered - and they'll be around after it's all gone. Good riddance; but the ridding has to *work*. To make it work, we have to change a whole technological base of a society, not just rail at scapegoats.

  20. Re:Not at all by ShanghaiBill · · Score: 2

    The "greedy oil companies" make about 7 cents on every gallon sold.

    The gas station owner may make 7 cents, but the oil companies make far more than that. Otherwise the supply would disappear when the price dropped from $4 per gallon to $3.93.

  21. Re:Refinery by russotto · · Score: 2

    Thanks to the EPA and the power of NIMBYs, it's basically impossible to build a new refinery in the US.

    Yep, the NIMBYs and BANANAs will scream "No, no, no, no dangerous pipeline, no smelly industries or farms, no ugly windmills or cell towers". Then in the next breath they'll be "Why are we importing all this food and energy? We should buy local. And why does my cell phone reception suck?" And they'll never make the connection, ever.