Reprinted from Reader Supported News
A polar bear protests against the Keystone XL pipeline outside of an Obama fundraiser in San Francisco.
(Image by Aaron Sankin) Permission Details DMCA
I was very skeptical of all of the presidents's delays. I kept saying if they are building the southern leg then it's a done deal. What I didn't know is that the White House has no power to stop the southern leg. It is going from Oklahoma through Texas to the Gulf. It would be hard to find opposition to an oil pipeline in either state.
The Obama administration has the power to stop Canada from building a pipeline that crosses our nation's borders but not a pipeline that crosses state borders. In last week's year-end press conference, the president showed signs that he plans to reject the pipeline.
When asked about the benefits to the US from the pipeline, he said there was "not even going to be a nominal benefit to US consumers."
Here are the highlights of his answer:
"I don't think I've minimized the benefits, I think I've described the benefits.
"At issue on Keystone is not American oil, it is Canadian oil that is drawn out of tar sands in Canada. That oil currently is being shipped through rail or trucks, and it would save Canadian oil companies and the Canadian oil industry an enormous amount of money if they could simply pipe it all the way through the United States down to the Gulf. Once that oil gets to the Gulf, it is then entering into the world market and it would be sold all around the world.... There is very little impact, nominal impact, on US gas prices, what the average American consumer cares about, by having this pipeline come through.
"And sometimes the way this gets sold is, let's get this oil and it's going to come here and the implication is that's gonna lower oil prices here in the US. It's not. There's a global oil market. It's very good for Canadian oil companies and it's good for the Canadian oil industry, but it's not going to be a huge benefit to US consumers. It's not even going to be a nominal benefit to US consumers."
View his full answer here: