Oil Pipeline Politics

The fate of a new pipeline by TransCanada rests with Hillary and the State Department.  The oil pipeline from Canada to Texas named the “Keystone XL” is part of a plan to move around a million barrels of oil per day between the US and Canada.  The pipeline would be a $13 billion project to move “friendlier” oil to refineries in Texas and the Gulf region.  TransCanada also agreed last week to allow oil producers in Montana and North Dakota to also use the line to ship part of their production to refineries in the south as well.

The usual suspects have started lobbying and filing lawsuits to prevent the approval of the pipeline.  The Sierra Club is citing the BP oil spill, pipeline issues in Alaska, and an “indirect” contribution to global warming as reasons the project should not be built.  Even an “un-named” Nebraska Republican Senator is coming out against the project claiming that it will cross vital aquifers.  Since we only see one Nebraska Republican Senator listed on the Senate website that would be Mike Johanns.

Unfortunately the power to approve, or disapprove, the pipeline project rests with the State Department because the project crosses international borders.  With an Obama administration full of anti-oil/anti-business politicians what do you think the chances are of the project being approved?  The ban on issuing offshore drilling permits has been lifted although administration is still simply not issuing permits.

In a time of rising oil prices, and fear of sending oil money overseas which may be used to support terrorism how can we NOT approve this project?  The left likes to make the argument that project like this will not lower gas prices.  That is true in the short-term while the pipeline is being built, but in the long-run every last drop of increased capacity makes a difference.

Hopefully the State Department and the Administration will see the light and approve this project, rather than again passing on a chance to improve our economy and create real jobs.