Republican Lies About Keystone Pipeline

[Vol Main]

At first, I reacted badly to President Obama's delay of the Keystone Pipeline. Seemed like a no-brainer to build it ASAP. Then I looked into the issue and discovered that the Republican claims about the pipeline were all lies. The Republicans claimed that it would create a lot of good American jobs, but the reality was that Trans-Canada planned to bring their own skilled labor down from Canada, not hire Americans except for temporary ditch digger jobs. Republicans kept saying that the pipeline would increase America's oil supplies and lower prices at the gasoline pumps for American consumers. They were lying about that too. The purpose of the pipeline was to move the shale oil from Canada down to a refinery on the Gulf coast, for export at higher international prices. When the Keystone pipeline is completed, gasoline prices in middle America will automatically go up, not down. Exporting that oil will not increase our oil supplies, and selling it at higher international prices will not lower prices. The purpose of the pipeline is to ship the oil to international markets to sell it at higher prices. Trans-Canada has already lined up export contracts for Europe, Latin America, and China.

And here's another thing. The Obama Administration did not originate the environmental objections to the proposed route of the pipeline. Those objections were made first by the Republican leadership of Nebraska.

 

[PKT_VOL]

At first, I reacted badly to President Obama's delay of the Keystone Pipeline. Seemed like a no-brainer to build it ASAP. Then I looked into the issue and discovered that the Republican claims about the pipeline were all lies. The Republicans claimed that it would create a lot of good American jobs, but the reality was that Trans-Canada planned to bring their own skilled labor down from Canada, not hire Americans except for temporary ditch digger jobs. Republicans kept saying that the pipeline would increase America's oil supplies and lower prices at the gasoline pumps for American consumers. They were lying about that too. The purpose of the pipeline was to move the shale oil from Canada down to a refinery on the Gulf coast, for export at higher international prices. When the Keystone pipeline is completed, gasoline prices in middle America will automatically go up, not down. Exporting that oil will not increase our oil supplies, and selling it at higher international prices will not lower prices. The purpose of the pipeline is to ship the oil to international markets to sell it at higher prices. Trans-Canada has already lined up export contracts for Europe, Latin America, and China.

And here's another thing. The Obama Administration did not originate the environmental objections to the proposed route of the pipeline. Those objections were made first by the Republican leadership of Nebraska.

Oil is a global commodity. It is not like oil in America is different that oil in Saudi Arabia or that American/Canadian oil is cheaper than imported oil. Oil is oil. The price is determined by the global supply versus the global demand.

 

[volinbham]

Vol Main - where do you get this stuff?

How on earth would Keystone increase gas prices in the U.S.

 

[Gramps]

Vol Main - where do you get this stuff?

How on earth would Keystone increase gas prices in the U.S.

It's all in the special arithmetic used to project the future prices of gasoline.

Do they not have this special arithmetic in Birmingham?

 

[bamawriter]

It's all in the special arithmetic used to project the future prices of gasoline.

Do they not have this special arithmetic in Birmingham?

"Special" as in "my mom says I'm special when I eat paste"?

 

[Lexvol]

Hilarious.....you would think with unemployment the way it has been...that every job would count....

Stay the course....we are doing fine.

 

[Gramps]

"Special" as in "my mom says I'm special when I eat paste"?

Bingo

 

[Vol Main]

Vol Main - where do you get this stuff?

How on earth would Keystone increase gas prices in the U.S.

Haven't kept a bibliography of all my reading on this subject, but I do have a degree in history from UT, with a graduate course in historiography...which requires the disciplined use of sources. TIFWIW.

Why will Keystone increase gas prices? Crude oil sells at different prices in different locations in the United States. If you don't believe me, look at the index prices for West Texas Intermediate and Brent. Both Canadian shale oil and West Texas crude sell at a lower regional price to refineries in middle America than oil on international markets(Brent) because there is more supply compared to Brent. When the refineries in middle America pay less for oil, they sell their gasoline and diesel for less. Currently, West Texas crude and Canadian shale oil are distributed primarily through pipelines which supply refineries in middle America. Those pipelines do not reach refineries on the Gulf coast which supply the international markets, but Keystone pipelines will reach them. That is why oil companies want Keystone built, to get higher international prices for their products. The purpose of the Keystone pipelines is to move the oil to refineries on the Gulf coast, which sell their products at higher international(Brent) prices, not regional(West Texas crude) prices. When Keystone is completed, the oil in the pipeline will then be marketed at higher international prices, because it will connect to refineries on the Gulf which sell to that market.

Also, Keystone will reduce the supply of oil to middle America by moving supply to terminals for export, instead of domestic consumption. You might not think that oil and oil products are exported from America, but they are. Increased exports reduces domestic supply and increases domestic prices. The purpose of Keystone is to increase exports.

Republican critics of the Obama Administration wrap themselves in patriotism to support Keystone, but there is nothing patriotic about it. The purpose of building Keystone is to increase the exports of oil and oil products, for higher prices.

 

[n_huffhines]

Source on all this?

 

[MG1968]

hmmm...

no sources

touts self as a preeminent academic mind on energy matters

focuses solely on GOP comments while ignoring Obama's cozy relationship with Warren Buffet

I smell troll.

 

[golfballs]

journolist

 

[VolsNSkinsFan]

We will be exporters of Oil? Sweet!! Bring our dollars home!

Oh and the LA refineries are basically the only refineries in the world capable of refining the crappy Canadian crude. The only reason why the pipeline was rejected was because Buffet owns BNSF railroad and they currently ship about 100 rail cars full of oil per day at $4 a barrel with plans to double capacity to 700k barrels per day as the bakken ramps up

 

[Vol Main]

Oil is a global commodity. It is not like oil in America is different that oil in Saudi Arabia or that American/Canadian oil is cheaper than imported oil. Oil is oil. The price is determined by the global supply versus the global demand.

Oil is also a regional commodity. If you don't believe that, then compare the index for regional prices(West Texas Intermediate) to the index for international prices(Brent).

 

[mdrew27]

OP you must not have a single clue how construction works. Every single construction job creates temporary work. Most projects last barely more than a year and a half. However the pipeline job would have created A LOT of work for a lot of people that could have used it.

 

[Vol Main]

We will be exporters of Oil? Sweet!! Bring our dollars home!

Oh and the LA refineries are basically the only refineries in the world capable of refining the crappy Canadian crude. The only reason why the pipeline was rejected was because Buffet owns BNSF railroad and they currently ship about 100 rail cars full of oil per day at $4 a barrel with plans to double capacity to 700k barrels per day as the bakken ramps up

No, the Keystone pipeline will end at a refinery in Port Arthur Texas, which is being refitted to refine the sludgy Canadian shale oil. But don't get all excited about how great that is for America. That refinery is foreign owned, and it is located in an international trade zone. That means that no local, state, or federal taxes will be collected on the Canadian oil when it is sold to the refinery or on the refined products when they are exported.

 

[VolsNSkinsFan]

Oil is also a regional commodity. If you don't believe that, then compare the index for regional prices(West Texas crude) to the index for international prices(Brent).

The prices are different is because some oils are better than others and it depends on where its produced, how its shipped, where its stored and who refines it.

WTI is better than Brent. Brent is more expensive because Cushing OK where WTI is stored and priced. Since Cushing is literally overflowing with oil thanks to the Bakken, it sells at a discount even though it's better than Brent

We will always import oil because Venezuela will always sell us their oil even for $1 a barrel because they simply do not have the ability to refine their oil

 

[VolsNSkinsFan]

No, the Keystone pipeline will end at a refinery in Port Arthur Texas, which is being refitted to refine the sludgy Canadian shale oil. But don't get all excited about how great that is for America. That refinery is foreign owned, and it is located in an international trade zone. That means that no local, state, or federal taxes will be collected on the Canadian oil when it is sold to the refinery or on the refined products when they are exported.

So foreigners will be working those refineries? Foreigners will be feeding and providing them shelter? Maintance provided by foreiners? Electricity to power the plant will be foreign power?

 

[Vol Main]

OP you must not have a single clue how construction works. Every single construction job creates temporary work. Most projects last barely more than a year and a half. However the pipeline job would have created A LOT of work for a lot of people that could have used it.

Thanks for the compliment. There is no doubt that the pipeline will create temporary jobs, but not a LOT of jobs, unless you factor in the cleanup jobs created by future oil spills. FYI, the job numbers supplied by Trans-Canada are grossly inflated and in fact fraudulent, because they are still including job numbers for Canadians and sections of the pipeline which are already completed, meaning that those jobs no longer exist. They also use "job years,"meaning that one job is counted as two jobs if it lasts more than twelve months. Trans-Canada supplied their cooked job numbers to lobbyists who gave them to Republicans in Congress who in turn quoted them to the American public. It's a major con job. Also, Trans-Canada brings in their own skilled labor from Canada, with no intention of hiring American skilled labor along the pipeline. You might think that the material purchases for the pipeline would create American jobs, but you would be wrong. Trans-Canada has already signed purchasing contracts for low grade steel pipe manufactured in India, for the entire pipeline. They are buying next to nothing from American suppliers.

Tests on sections of the pipeline completed at this time show that the cheap imported steel pipe is dangerously defective. If you think that is not a real concern, then you should google for information about the major oil spill from the Trans-Canada line through Michigan. That's why the Republican leadership of Nebraska objected to the original route planned to go through the Nebraska sand hills.

 

[bamawriter]

Seriously, Vol Main, you cannot post this much conspiracy-theory horsecrap without providing a link. Even a link to a far left whackjob website would be more convincing that you just spouting junk with nothing to support it.

 

[Vol Main]

The prices are different is because some oils are better than others and it depends on where its produced, how its shipped, where its stored and who refines it.

WTI is better than Brent. Brent is more expensive because Cushing OK where WTI is stored and priced. Since Cushing is literally overflowing with oil thanks to the Bakken, it sells at a discount even though it's better than Brent

We will always import oil because Venezuela will always sell us their oil even for $1 a barrel because they simply do not have the ability to refine their oil

It's true that oil varies in quality and price. It is also true that Cushing OK is overflowing with supply at this time, but from West Texas crude. The point you neglect is that Keystone will connect West Texas crude, Canadian and Bakken shale oil to the Gulf refineries for export at higher international prices to Europe, Latin America, and China. That means that American domestic prices will go up, not down...when Keystone is completed. Ding, ding, ding.

 

[Vol Main]

Seriously, Vol Main, you cannot post this much conspiracy-theory horsecrap without providing a link. Even a link to a far left whackjob website would be more convincing that you just spouting junk with nothing to support it.

Seriously right back at you, there is nothing conspiratorial, horse-crappy, or theoretical in my posts...outside of Economics 101 Law of Supply and Demand. FYI, I do not use far left wack-job websites as sources of information, and I don't spout junk. If you don't know the difference, that's your problem. If you don't trust my work, then get back to me after you've done your own.

 

[PaulieWalnuts]

Hilarious.....you would think with unemployment the way it has been...that every job would count....

Stay the course....we are doing fine.

That's rich. Every time a job report comes out Republicans can't stop talking about how they are all low-paying jobs.

More low-paying, temporary jobs. That will do the trick. Right?

 

[VolsNSkinsFan]

Pipeline is by far the most environmentally safest way to transport oil. Welspun Produces a lot of good pipe here in the US. Nucor is almost done with a billion dollar smelter in LA that will produce pipe for pipelines and wells

Oh and im sure those landowners between canada and houston don't want/need $500 per 40 foot piece of pipe

 

[VolsNSkinsFan]

That's rich. Every time a job report comes out Republicans can't stop talking about how they are all low-paying jobs.

More low-paying, temporary jobs. That will do the trick. Right?

Oil field jobs pay ridiculous. They are very well compensated

 

[VolsNSkinsFan]

It's true that oil varies in quality and price. It is also true that Cushing OK is overflowing with supply at this time, but from West Texas crude. The point you neglect is that Keystone will connect West Texas crude, Canadian and Bakken shale oil to the Gulf refineries for export at higher international prices to Europe, Latin America, and China. That means that American domestic prices will go up, not down...when Keystone is completed. Ding, ding, ding.

Sweet! We will be exporters of Oil. We will keep US$s in US banks. No more funding BS construction jobs in the ME. It will save us billions in military too