Keystone XL Pipeline Decision Time

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January 9, 2012 -

2012 is here and it is now time for President Obama to make a decision on whether to approve the Keystone XL pipeline or not. If built, this pipeline will transport oil from the tar sands of Canada to refiners on the Gulf Coast of the US.

The Keystone pipeline decision is wrapped in political debate as one would imagine. With topics in the upcoming Presidential election year becoming more influential, Obama may make his decision votes based, not whether the mission is good or bad for the country in an economic or environmental sense. Oh, the world of politics. Should he vote “yes” Democrats will be upset, but they’ll probably still vote for him in November. Even a “no” will not see an increase of Republican backing. So, we ask, what will be the outcome and when? Will Obama be influenced by the swing voters? Will there be a delay? A delay the decision until after the election would be considered a weak move. . We all know that voters both Democratic and Republican like decisive presidents.

We could see Obama forced by events half a world away to give a “yes” in favor of this pipeline. It is also quite possible that Iraq will enter into a civil war sometime this year. Should this happen, we all know the cost of oil barrels will soar and there will be calls for increased oil production, this would include more oil from the tar sands of Canada. But hey voters; the pipeline won’t be built in a day, so how will this pipeline be effective in this scenario? A civil war would likely come to an end before the pipeline was even finished. However, political pressure and subsequent bombing in Iraq could cause the President to go with a “yes”.

If the Keystone XL Pipeline gets the go-ahead, it will likely bring more development, more production sooner than later, to the Canada’s tar sands. If Keystone is not approved by vote, the tar sands will still remain. After all, the sands are an oil jackpot for Canada as well as all parties involved. The oil will be drilled whether Keystone is built or not. The pipeline just makes it easier to take advantage of the oil supply.

Then we have the job creation issue. The pipeline would without doubt create some jobs in the US at a time when every job produced is vital. Though most of the jobs would be short termed. Refineries on the Gulf Coast could be longer termed jobs.

Don’t even get me started on the environmental issues at hand where a new pipeline is considered. After an absolute debacle from BP’s explosive, epic spill, many environmentalists consider added refineries and more oil industry related company presents in the region to be a “nail in the coffin” for the Gulf Coast region.

Lastly, there is absolutely a zero guarantee that the construction of the Keystone XL pipeline will lower oil price for US citizens. Oil is sold on global markets. Worldwide supply and demand, coupled with fear of supply interference, sets the price of oil.

A long shot option would be to approve the pipeline with some strings attached. Perhaps going forward with healthy incentives for clean, renewable or efficient energy would do the trick. As always politics is politics. But as eco-friendly energy supporters, we hope an approval with serious strings goes ahead if a “yes” takes place. Let’s see Obama’s proposed doubling of fuel economy standards see a “yes”!

Author: Amy Wermuth