Community | January 06, 2012 | 13 comments

Oil executive threatens Obama over Keystone XL

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WakeUpPeople
The largest energy firm in America is attacking President Obama, insisting that the White House’s refusal to cooperate with the Keystone XL pipeline will cause the commander-in-chief to suffer in the 2012 election.

The proposed pipeline would stretch roughly 1,700 miles into America out of the Canadian oil sands to the north and across a massive span of the US. Although backers insist that the effort would bring thousands of jobs and add to America’s reserve of natural resources, activists opposed to the plan have been largely agitated over the detrimental toll the pipeline would cause for the country's environment.

Facing increased opposition, including but not limited to a series of sit-ins and protests outside his own front door, President Obama delayed offering a decision on a permit that would have let the pipeline start immediately. Instead, said the president, it won’t be until 2013 when the White House will officially give Keystone the thumbs up or thumbs down on the project.

The American Petroleum Institute, the largest oil and gas lobbying group in the country, says that could be a problem for the president.

"This issue is very simple and straightforward, it's about jobs and national security," API President Jack Gerard told reporters in a speech this week.

"Anything less than approval or acquiescence in allowing the pipeline to go forward would be inconsistent with the vast majority of Americans," he added, and insisted that the failure to comply with the API and allegedly the American public would be a bad decision for the Obama administration.

"After waiting more than three years for this pipeline while the country faces prolonged unemployment, the American people are fed up with the president's inaction on a project that can quickly create jobs," Fred Upton, chairman of the Energy and Commerce committee, added in a statement of his own.

On the contrary, a recent Pew poll found that 71 percent of Americans think "This country should do whatever it takes to protect the environment." Barely a quarter of those polled by Pew said they favored expanding exploration and production of fossil fuels.

The impact the API could have on Washington is nothing worth shrugging at. In 2011 alone, the group lobbied to the tune of nearly $6 million on Capitol Hill. At the same time, however, the API has made it abundantly clear that an Obama White House in 2013 is something they aren’t all that keen on. At the dawn of the election cycle, the API sponsored the New Hampshire Energy Freedom Family Festival in New Hampshire, an event attended by around 350 people that attacked the EPA and taxes on the oil industry.

Speaking at the event in support of their goals? GOP contender and Texas Governor Rick Perry.

Last February, Martin Durbin, API’s executive vice president for government affairs, told Bloomberg News that the group was looking to throw their support behind someone come 2012 — and that would be an award welcomed only to a candidate deserving of their profits made by pilfering the Earth for oil

“At the end of the day, our mission is trying to influence the policy debate,” said Durbin.

The API has previously paid for ads that attack policy issues they feel are against what the oil industry stands for, although the Obama administration, much to the API’s chagrin, continues to consider ending tax breaks for energy companies included in API.
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13 comments // Oil executive threatens Obama over Keystone XL

  • SFirman
    • +1
      SFirman  
    • The Keystone pipeline will NOT create 20,000 new jobs

      12:09 pm December 14, 2011, by Jay

      “Millions of Americans are desperate for jobs, and no single project promises more of them than the proposed Keystone XL Pipeline, which would run from Canada to the Gulf Coast…. As the largest shovel-ready infrastructure project in the U.S., Keystone XL was expected to create 20,000 new jobs right away.”
      – U.S. Sen. Dick Lugar and
      Senate Minority Leader
      Mitch McConnell
      And that, of course, is false, and Lugar and McConnell have good reason to know it is false. The Keystone XL Pipeline, the centerpiece of the latest standoff in Washington, will not produce 20,000 shovel-ready jobs. Even TransCanada, the company pushing the pipeline’s construction, now acknowledges that it is false.
      The number that the company likes to throw around is now 13,000 direct construction jobs, but that too is misleading. When challenged, the company acknowledges that it is counting what you might call “job years.” In other words, TransCanada believes the project will produce 6,500 jobs that last for two years.
      Six thousand five hundred jobs is a far cry from 20,000. And even the 6,500-job estimate is much too high. According to an independent assessment by Cornell University’s School of Industrial and Labor Relations, the project would produce between 2,500 and 4,650 construction jobs, and could even end up costing the country jobs, for reasons that we’ll get to below.
      TransCanada is basing its job estimates on a report that it commissioned from the Perryman Group. However, the Perryman Group has refused to release important data behind its estimate, claiming it to be proprietary information. The folks at Cornell nevertheless took what data Perryman did make available and found several major, fundamental flaws in its approach.
      For example, a $1 billion portion of the Keystone XL pipeline has already been built and is up and operating. The Perryman study nonetheless pretends that section of the project is still on the drawing boards and, when built, will provide thousands of new jobs.
      In addition, Keystone supporters ignore the fact that large quantities of Canadian tar-sands oil are already being imported into the United States and are being refined and used in the American Midwest. As the Cornell study points out:
      “According to TransCanada, KXL will increase the price of heavy crude oil in the Midwest by almost $2 to $4 billion annually, and escalating for several years. It will do this by diverting major volumes of tar sands oil now supplying the Midwest refineries, so it can be sold at higher prices to the Gulf Coast and export markets. As a result, consumers in the Midwest could be paying 10 to 20 cents more per gallon for gasoline and diesel fuel, adding up to $5 billion to the annual US fuel bill.”
      As the Cornell study concludes, those higher fuel prices for the Midwest could cost that region thousands of jobs. So while the pipeline construction would certainly help the Canadian tar-sands investors — many of them Chinese — get a higher price for their product by moving it to the Gulf, it could prove to be a wash or even a net negative in terms of jobs for American workers.
      As the Cornell study concludes:

      “It is unfortunate that the numbers generated by TransCanada, the industry, and the Perryman study have been subject to so little scrutiny, because they clearly inflate the projections for the numbers of direct, indirect, and long-term induced jobs that KXL might expect to create. What is being offered by the proponents is advocacy to build support for KXL, rather than serious research aimed to inform public debate and responsible decision making. By repeating inflated numbers, the supporters of KXL approval are doing an injustice to the American public in that expectations are raised for jobs that simply cannot be met. These numbers — hundreds of thousands of jobs! — then get packaged as if KXL were a major jobs program capable of registering some kind of significant impact on unemployment levels and the overall economy. This is plainly untrue.”

    • 5 months ago
  • wolfess
    • +1
      wolfess  
    • "This issue is very simple and straightforward, it's about jobs and national security,"

      Jack Gerard: This issue is very simple and straightforward, it's about the environment and YOUR security ... STFU, or risk possible unhealthy consequences!

      Pwr 2 the 99%! GUILLOTINE oil executives!

    • 5 months ago
  • kennymotown
  • Wetdog
    • +2
      Wetdog  
    • ----------" "This issue is very simple and straightforward, it's about jobs and national security," API President Jack Gerard told reporters in a speech this week."--------

      Temporary jobs. The real jobs will be in Canada.

      National security----it is not in the interest of US national security to be dependent on foreign oil to supply our energy needs.

      Biofuels can do anything that can be done with oil.

      Biofuels can be made by workers who live and pay taxes in the US.

      Biofuels are renewable and sustainable, we can make as much as we need, as long as we need them. And most of the feedstocks or resources that would be used are waste right now.

      To provide for the economic and national security interests of the US, we should be making and using biofuels---not building a 1,700 mile pipeline to contaminate our waters with Canadian Tar.

    • 5 months ago
  • wolfess
    • +1
      wolfess  
    • Wetdog:

      I read an article about this last summer -- it said that trucks, and trains could carry the oil quicker, safer, and provide MORE jobs than this idiot pipeline will. What the hell is in this project that will provide billions more for the oil companies with NO benefits for America and her citizens? The fact that this pondscum would stoop to threats to make Obama sign off on this only shows me that there is some deeply hidden motive for this pipeline that has nothing to do with jobs for Americans and everything to do with more money for the oil companies.

      Pwr 2 the 99% peons! It's time to fight for the right to LIVE FREE!

    • 5 months ago
  • Wetdog
    • 0
      Wetdog  
    • wolfess:

      wolfess-----our trucks and trains have diesel engines. Diesel engines can run on compressed natural gas. We have plenty of natural gas, it costs less than 1/2 to run an engine on CNG than it does to run it on petroleum. AND, we can make methane(CH4, the "stuff" of natural gas), low tech, easily, and cheaply from any type of waste biomass at all, including sewage and landfills. And the waste products of producing CH4 from waste biomass? Clean water and compost(fertilizer). We've been able to do it for over 160 years.

      Germany is already doing it. Germany is on track to be producing 20% of their natural gas usage from sewage and waste biomass by 2015---5 year ahead of their original goal. In spite of rapidly converting their transportation to use natural gas, and closing down their nuclear reactors.

      Why can't WE do it?

      Take a wild guess.(do you need a hint?)

    • 5 months ago
  • wolfess
    • 0
      wolfess  
    • Wetdog:

      Why can't we do it? Because it would put these oil companies out of work, and since they lavish OUR elected employEEs with money to make sure oil is king the can just keeps getting kicked on down the road >:-< (my angry face)!

      Pwr 2 the 99%! GUILLOTINE all oil executives!

    • 5 months ago
  • MSII
    • +1
      MSII  
    • These poor people, they're so used to getting their way it must be just so very annoying when they don't get it immediately (not saying they won't eventually, as I suspect they will).

    • 5 months ago
  • Wetdog
  • jeffissleeping
  • WakeUpPeople
  • wolfess
    • 0
      wolfess  
    • jeffissleeping:

      Ah yes, fox-so-not-the-news ... that means that in reality this pipeline will probably create TWO jobs and those are only temporary while they are actually installing it.

      Pwr 2 the 99% peons! It's time to fight for the right to LIVE FREE!

    • 5 months ago
  • wolfess
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