Think of it as a prospective irony: In a spirit of pure, blind partisanship, the drill-baby-drill folks in the Republican Party may have done themselves in. After all, their obsession with the Benghazi incident led them to launch a preemptive strike against the president's choice for secretary of state, Susan Rice, for her statements on what happened when the U.S. ambassador and three other Americans were murdered there. They sent her nomination down in flames. In the process, it's just possible that they took out something far dearer to them. Though it didn't get much attention during her disastrous nomination moment, we did learn that Rice and her husband had made significant investments in companies connected to the Canadian tar-sands industry and the proposed Keystone XL pipeline, which is to bring the resulting crude (and carbon-dirty) oil 1,700 miles from Alberta, Canada, to the U.S. Gulf Coast. They reportedly had $300,000-$600,000 in stock in TransCanada, the company building the pipeline. In addition, "about a third of Rice's personal net worth is tied up in oil producers, pipeline operators, and related energy industries north of the 49th parallel," including Enbridge, a company which hopes to build another tar-sands pipeline. Had she been secretary of state, she might have had one of the great conflicts of interest of our time (or a major divestment problem).
Congress seems desperate to see that pipeline built. More than half the Senate -- 44 Republicans, including key Rice opponent John McCain, and nine Democrats -- signed a letter to that effect, but it matters little. Because of the international border Keystone XL crosses, only two people stand between us and its construction, the secretary of state and President Obama, who alone will make the final decision on whether the project should proceed. The president's second choice for secretary of state, who recently swept through the nomination process, is of course former Senator John Kerry, a "climate hawk" who has already said that he will be deeply involved in the State Department's review of the pipeline. (It's worth noting that TransCanada, trying to cover all its bases, hired one of Kerry's 2004 presidential campaign staffers as a lobbyist, along with "heavyweights" from past Obama and Hillary Clinton presidential runs, and that Kerry does have to divest himself of holdings in two Canadian energy companies which have supported the pipeline.)
No one, of course, can know what the new secretary of state and the president will decide. They are, however, already being pushed hard by a growing coalition of environmentally oriented groups, fearful of what it would mean to get all those tar sands out of the ground and (as carbon dioxide) into the atmosphere. In addition, this coming Sunday, February 17th, an enormous "forward on climate" rally is to take place in Washington. Originally organized by 350.org and TomDispatch regular Bill McKibben but now involving dozens of groups, it is expected to draw worried protestors (including this writer) from all over to demonstrate on the National Mall. The goal is, in part, to push President Obama to make the necessary decision on the Keystone pipeline. It's remarkable that one man has the power to shoot this project down. As another TomDispatch regular, Michael Klare, explains below, should he do so, the tar-sands industry might never recover. That would lend a genuine hand to our over-heating planet, which means there has seldom been a situation where demonstrations to pressure a president were more in order. Tom
A Presidential Decision That Could Change the World
The Strategic Importance of Keystone XL
By Michael T. Klare
Presidential decisions often turn out to be far less significant than imagined, but every now and then what a president decides actually determines how the world turns. Such is the case with the Keystone XL pipeline, which, if built, is slated to bring some of the "dirtiest," carbon-rich oil on the planet from Alberta, Canada, to refineries on the U.S. Gulf Coast. In the near future, President Obama is expected to give its construction a definitive thumbs up or thumbs down, and the decision he makes could prove far more important than anyone imagines. It could determine the fate of the Canadian tar-sands industry and, with it, the future well-being of the planet. If that sounds overly dramatic, let me explain.
Sometimes, what starts out as a minor skirmish can wind up determining the outcome of a war -- and that seems to be the case when it comes to the mounting battle over the Keystone XL pipeline. If given the go-ahead by President Obama, it will daily carry more than 700,000 barrels of tar-sands oil to those Gulf Coast refineries, providing a desperately needed boost to the Canadian energy industry. If Obama says no, the Canadians (and their American backers) will encounter possibly insuperable difficulties in exporting their heavy crude oil, discouraging further investment and putting the industry's future in doubt.
The battle over Keystone XL was initially joined in the summer of 2011, when environmental writer and climate activist Bill McKibben and 350.org, which he helped found, organized a series of non-violent anti-pipeline protests in front of the White House to highlight the links between tar sands production and the accelerating pace of climate change. At the same time, farmers and politicians in Nebraska, through which the pipeline is set to pass, expressed grave concern about its threat to that state's crucial aquifers. After all, tar-sands crude is highly corrosive, and leaks are a notable risk.
In mid-January 2012, in response to those concerns, other worries about the pipeline, and perhaps a looming presidential campaign season, Obama postponed a decision on completing the controversial project. (He, not Congress, has the final say, since it will cross an international boundary.) Now, he must decide on a suggested new route that will, supposedly, take Keystone XL around those aquifers and so reduce the threat to Nebraska's water supplies.
Ever since the president postponed the decision on whether to proceed, powerful forces in the energy industry and government have been mobilizing to press ever harder for its approval. Its supporters argue vociferously that the pipeline will bring jobs to America and enhance the nation's "energy security" by lessening its reliance on Middle Eastern oil suppliers. Their true aim, however, is far simpler: to save the tar-sands industry (and many billions of dollars in U.S. investments) from possible disaster.
"Controversy over the Keystone XL project leaves no room for compromise. Fundamental views about the future of energy are in conflict. Approval of the project would acknowledge the rich potential of the next generation of fossil energy and encourage its development. Rejection would foreclose much of that potential in deference to an energy utopia few Americans support when they learn how much it costs."
Opponents of Keystone XL, who are planning a mass demonstration at the White House on February 17th, have also come to view the pipeline battle in epic terms. "Alberta's tar sands are the continent's biggest carbon bomb," McKibben wrote at TomDispatch. "If you could burn all the oil in those tar sands, you'd run the atmosphere's concentration of carbon dioxide from its current 390 parts per million (enough to cause the climate havoc we're currently seeing) to nearly 600 parts per million, which would mean if not hell, then at least a world with a similar temperature." Halting Keystone would not by itself prevent those high concentrations, he argued, but would impede the production of tar sands, stop that "carbon bomb" from further heating the atmosphere, and create space for a transition to renewables. "Stopping Keystone will buy time," he says, "and hopefully that time will be used for the planet to come to its senses around climate change."
A Pipeline With Nowhere to Go?
Why has the fight over a pipeline, which, if completed, would provide only 4% of the U.S. petroleum supply, assumed such strategic significance? As in any major conflict, the answer lies in three factors: logistics, geography, and timing.
Start with logistics and consider the tar sands themselves or, as the industry and its supporters in government prefer to call them, "oil sands." Neither tar nor oil, the substance in question is a sludge-like mixture of sand, clay, water, and bitumen (a degraded, carbon-rich form of petroleum). Alberta has a colossal supply of the stuff -- at least a trillion barrels in known reserves, or the equivalent of all the conventional oil burned by humans since the onset of commercial drilling in 1859. Even if you count only the reserves that are deemed extractible by existing technology, its tar sands reportedly are the equivalent of 170 billion barrels of conventional petroleum -- more than the reserves of any nation except Saudi Arabia and Venezuela. The availability of so much untapped energy in a country like Canada, which is private-enterprise-friendly and where the political dangers are few, has been a magnet for major international energy firms. Not surprisingly, many of them, including ExxonMobil, Chevron, ConocoPhillips, and Royal Dutch Shell, have invested heavily in tar-sands operations.
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