We all know that earlier this year the President killed the proposed Keystone pipeline that would bring oil from Canada to the United States. However, he seems to be on board with a portion of it…from Cushing, Oklahoma to Port Arthur, Texas.
Cushing has a glut of oil. This oil comes predominately from North Dakota and Canada. In the case of Canadian oil, it comes through another pipeline. Cushing also has refineries, but not enough to refine all of the oil it has sitting in storage. In fact, it has so much oil that the price of oil sitting there is about $15 a barrel lower than the price of oil sold on the international markets.
This is oil in need of a refinery.
Meanwhile, we have refineries in Texas that have to use the higher priced oil from the Arab states to produce our gasoline because the oil in Oklahoma can’t get to those Texas refineries. Think about that for a moment…we have oil in this country that can’t be refined into gasoline because we don’t have enough refineries, and, we have not let the oil we have get to the few refineries we have.
Yesterday, TransCanada Corp., the company that sought to build the Keystone pipeline announce that it would build only that piece of it’s proposed pipeline from Cushing, Oklahoma to Port Arthur, Texas. At least that way, cheaper oil would get to refineries. As this portion of the pipeline doesn’t cross international boundaries, the President’s approval is not necessary.
And, as expected,
Friends of the Earth called the White House statement in support of TransCanada’s decision ‘an alarming about-face.’
Think about the brilliance of the President’s actions. He appeased the “greenies” to get votes, but annoyed the unions when he killed the complete pipeline. He appeased the unions to get votes, but annoyed the “‘greenies” when he “welcomed” a portion of the pipeline.
And, why didn’t this administration come up with this solution earlier?
Once again, it takes government to make the problem, and private industry to solve it.