This project would also provided many high paying jobs for the construction phase, and result in many jobs for skilled persons who operate and maintain these pipelines. In a speech yesterday, Obama was joking about this pipeline project creating perhaps 50 jobs. I guess he has never been around any pipeline construction, but I can assure you it would take more than 50 people to build this pipeline. If the full pipeline got the green light, it would create 13,000 construction jobs and 7,000 jobs making equipment such as pump houses and the pipe itself, according to the company.
Link to Keystone Pipeline facts.
On Thursday, Canada announced they are tired of waiting for a decision regarding the Keystone Pipeline, and are moving ahead with plans to construct the $12 Billion Energy East Pipeline project. This new pipeline is expected to send 1.1 million barrels per day of oil from Alberta to Saint John, New Brunswick. There is a deep-water port project slated for construction in Saint John to facilitate large oil tankers to export this oil to other countries around the world. This is oil that could have ended up at US refineries in Texas if the Keystone Pipeline project was completed.
While this administration is doing everything possible to keep oil drilling at a minimum in our country, Canada is expanding their oil production efforts every day. Canada’s oil production increased from 2.7 million barrels per day in 2000 to 3.7 million barrels per day in 2013. They expect this upward trend to continue until at least 2030.
By the time the Energy East Pipeline becomes operational, Canada could be the world’s fourth-largest oil producer, behind Saudi Arabia, Russia, and the United States. Canada could become a global player in oil exports, which would have implications on the rest of North America.
By virtue of geography, Canada’s oil and natural gas exports have been tied to the US energy sector. This new pipeline is the first step in connecting Canada’s energy to the rest of the world. Canada is also exploring a pipeline that would take oil to the Pacific Coast for export.
The likely possibility of large-scale exports of Canadian oil outside North America in not in our best interest. The US has good reasons for wanting Canadian Oil to stay on the continent. It is more likely that a dollar spent on oil produced in Canada will be reintroduced back into the U.S. economy than a dollar spent on Venezuelan Crude Oil. Canada’s landlocked oil has been trading at levels far lower than oil of similar quality being traded internationally, and companies like TransCanada are searching for higher profits in foreign markets.
Most of Canada’s current exports to the United States go to the Midwest. As Canada’s production increases, it will surpass the demand for oil in that region.
If the Keystone Pipeline were completed and Canadian oil was sent to our own refineries in Texas, Canadian crude could replace oil imports from countries such as Venezuela, Ecuador, and other OPEC producers.
We hear so often that we are striving for energy independence, yet we ignore and block solutions to that problem that would help us become energy independent. To my knowledge, the only drilling permits that have been issued by this administration have been on private lands. Were promises made to oil exporters in other countries that are being kept? I have no idea but would not doubt it.
I just find it very strange that with a partial solution to our energy demands at hand, that this administration would so firmly plant their feet and block the pipeline. If they have valid reasons for doing so other than the pipeline crossing ground where the three-legged, cross-eyed beetle makes their home I would love to hear them.
I would think that a project like this that would provide both jobs and oil would be a blessing to this administration. I wonder why our elected representatives aren’t asking these questions? I actually thought we paid them to keep an eye on things like this and fight for what is best for America.
I guess I’ll never get too old to be wrong when it comes to understanding our government.
Your comments are welcomed and appreciated.