There has been an increasing push by environmental groups to shut down two Canadian pipelines that would deliver oil to the West Coast (Northen Gateway Pipeline) and one that would deliver oil to refineries in Texas (Keystone XL). The whole effort is a disguised attempt to shut down the Alberta Oil Sands. Meanwhile the world is looking for ways to replace oil presently purchased from Iran. Despite an embargo on Iranian oil, there has been an extension for six months, while Europe and Asia look for alternate supplies.
Iran’s oil revenues were $73 Billion in 2010 and those revenues are believed to support 50% of Iran’s overall budget, according to the Energy Department. Japan imported 110,000 barrels a day from Iran during the first six months of 2011, while China imported about 555,000 barrels a day last year. Add to that European nations and India and you can easily see where the debate is going.
Saudi Arabia, which produces, which produced 10 Million barrels a day near the end of last year, has said that it could boost production by another 2 Million barrels a day, although most analysts believe that this is well above Saudi Arabia’s capabilities.
The debate over the Keystone XL pipeline rages on in the United States, with the President sitting on the decision, requiring yet another environmental assessment. This pipeline has been studied to death and the conclusion from two environmental impact assessments is that this pipeline will have minimum impact on the environment. The pipeline will create 20,000 jobs and put billions of dollars into the economy.
Basically this should be a no brainer for President Obama. With the situation in Iran, the threats of closure of the Strait of Hormuz and the world’s ongoing requirement for oil, this has to be one of the easiest decisions for the President. He can decide not to grant the Presidential Permit and face higher pump prices and as a consequence affect the whole economy, which relies heavily on transportation, or he can approve it and avoid a possible disaster. What would you chose?
The Northern Gateway Pipeline, which will carry oil from Alberta to Kitimat, British Columbia, Canada, has just started the approval process. Over 4,000 people have been registered to speak to a board that has been established to look at concerns over the project. Some of the concerns are real, while others are just there to fillibuster the committee and extend the approval process. It has been recently revealed that some of the Green folks have signed up speakers without their knowledge. Ideology is overtaking common sense. The few that scream the loudest appear to have overtaken common sense. If you have ever tried to debate with any of them, don’t win the argument or you will be demonized,
sworn at and discredited.
Don’t let common sense become so rare that it is mistaken for genius.