Press "Enter" to skip to content

President Obama Not Fooled by Keystone XL Claims on Jobs, Supply

President Barack Obama told a group of House Republicans Wednesday that two of their big arguments in favor of the Keystone XL pipeline are baloney:

Rep. Lee Terry, R-Neb., said Obama appeared "conflicted" on the pipeline, saying that many of the promised jobs would be temporary and that much of the oil produced likely would be exported.

But Terry said Obama also indicated that dire environmental consequences predicted by pipeline opponents were exaggerated.

"He said there were no permanent jobs, and that the oil will be put on ships and exported and that the only ones who are going to get wealthy are the Canadians," Terry said [Matthew Daly, "Keystone Pipeline Jobs Numbers Are Probably Exaggerated, Obama Allegedly Told Republicans," AP via Huffington Post, 2013.03.13].

I'll take the enviro hit. If we aren't getting jobs or oil, what reason is left for the President to approve tearing up land and land rights? Do we really want to raise our gas prices as a favor to the Canadians?

Don't forget the empirical evidence: Keystone 1, TransCanada's big tar sands pipeline across eastern South Dakota, produce no massive jobs bump. Keystone 1 also resulted in no decrease in our gasoline prices. The only reason that pipeline didn't increase our gasoline prices was that it ends in Illinois. Keystone XL will send its oil to the Gulf Coast and the global export market, where China, India, and other foreign buyers can bid it up.

But Rep. Terry responds to that part of the President's negative commentary with a bit of sheer fabrication:

On at least one aspect of the pipeline, Obama is "flat-out-wrong," Terry said. While some oil is likely to be exported, the total is far less than a majority, Terry said. "That was disturbing to me," he said [Daly, 2013.03.13].

What's disturbing is Rep. Terry's inability to understand the fundamental economics driving Keystone XL. U.S. oil demand is down. The Keystone XL business case revolves around exporting the tar sands oil to Asia or maybe Europe. The U.S. will still import as much oil from overseas, and what Keystone XL oil we might get will be dirtier than current sources.

The President's own State Department—or at least the TransCanada contractor whom State hired to write the Draft Supplemental Environmental Impact Statement—says Keystone XL will create far fewer jobs than TransCanada has contended and will not significantly change the amount of oil headed for the Gulf refineries. TransCanada itself has said the project is meant to raise our gasoline prices. There just doesn't seem to be much reason left for an American President to give up American land rights and money to support this foreign oil project.

11 Comments

  1. larry kurtz 2013.03.16

    There is far too much talk among Democrats that the President should pass KXL if a carbon tax or some combinations of environmental protections for threatened and endangered species are adopted.

    An impossibly high bar for the pipeline should help kill it.

  2. Dougal 2013.03.16

    Dumbest legislature anywhere is the S.D. Leggie which beats the drum every year to ram that Canadian pipeline up the backside of South Dakota's ranch land, forcing this hoax on us through eminent domain. If they were capable of common sense, empathy and human decency, every legislator who jumped on the KXL bandwagon should beg forgiveness from the ranchers who got steamrolled to allow a foreign nation to use their land to export oil to Red China.

    Thank you Cory for piecing together the irrefutable proof of this sickening hoax. The jobs claim has been horribly inflated since TCanada and the Big Oil Lobby started their propaganda war, hoping stupid or corrupt people would buy it. Add to it that KXL will increase South Dakota gas prices while bringing no additional fuel to our state should be grounds to dismiss its supporters from public office.

    You don't need to give a rip about the environment to see South Dakota and the rest of our nation are being fooled.

  3. caheidelberger Post author | 2013.03.16

    Thanks, Dougal. I'm still stunned that Republicans won't make a peep about the land rights issue here. Farmers and ranchers get trampled, and no one in Pierre sticks up for them.

  4. John 2013.03.16

    Thanks, Cory, for your work on revealing the lies.
    Both sides lie - lavishly embellishing public economic "benefit" on one hand and inventing a parade of environmental horribles on the other. The truth is the old saw of abusing the public and private rights of many to socialize costs while privatizing profits for a few. Our courts pathetic invention of the not-so "public purpose" justifying handing over eminent domain authority to for private profit enterprises is the crux of the evil.

    Things being largely unchanged US and midwest gas prices are and will rise - with or without the pipeline. China is the world's largest gas consumer, thus has the leverage to influence prices. The pipeline will merely facilitate an earlier rise in northern plains gas prices. We have 2 options to sidestep the economic devastation of $5-20/gallon gas: 1) real fuel economy like that in the emerging VW car achieving 260+ mpg; or 2) getting off petroleum (as Henry Ford advocated in powering his Model T with unlimited supplies of cheap pure alcohol) or another substitute.

    http://seekingalpha.com/article/1221981-china-is-why-gas-prices-are-going-up-and-heading-much-higher
    http://gas2.org/2013/03/12/vw-to-build-250-xl1-314-mpg-phevs/

  5. John 2013.03.16

    We should not be stunned that republicants are hypocritically silent about land rights. They only care about land rights when it's in the economic interest of private corporate profits to care about land rights. And most farmers and landowners don't care because this issue is not specifically individualized to THEIR land. Recall the real and imagined "independence" of rural folks who too often historically refused collective action in their own best interest.

    It too often is an inquiring and probing few who make a difference. Thanks again.

  6. Douglas Wiken 2013.03.16

    The latest "preliminary" Environmental impact Statements are available in SD libraries again. They print out to a pile of paper 6 or 8 inches high-- Volumes I, II, and III. That might be the best way to view them. A CD is included which librarians should allow you to copy. A bunch of PDF files, but this time they have them bookmarked so there is at least the semblance of a menu system. If you can't get them any other way, drop me an email via Dakota Today. I could send one for about $2.00 including disk and postage. These reports are practically a handbook for designing environmental reports and building and financing pipelines.

    Now, Lyin' Paul Ryan and DINO Max Baucuss of Montana are planning on introducing legislation which will somehow bipass Obama's OK or rejection. Thune and Noem are also outspoken supporters. It is hard not to see the idiotic support for this project and not wonder how much money has been dumped into political parties, candidates, and officials by "sub-contractors" of Trans Canada. By now, so many distortions and omissions have turned up in the initial XL propaganda that it seems to me there is little if any legitimate reason for government or politicians to support this project. The pipeline crosses something between 60 and 90 flowing streams or other channels on the way to China. The potential for serious water pollution should not be ignored. The latest publication indicates the danger of slow leaks that are not detected and gradually poison an aquifer or water wells. I have not yet had time to dig through this stuff to any depth.

  7. caheidelberger Post author | 2013.03.16

    Thanks, Douglas! And wow, Paul Ryan and Max Baucus: separation of powers much?

  8. Les 2013.03.17

    And you actually see a separation of powers somewhere else Corey? Show me where either political power is 1. working to protect the Vroman Ranch from eminent domain seizure by a foreign nation. 2. Concerned with environment over jobs. 3. Doing anything other than grandstanding and using XL as a fulcrum of opportunity to unrelated ends.
    .
    Baucus and Ryan will not be needed for XL to proceed Lar, the dues have already been paid.

  9. Joan 2013.03.17

    What gets me is that most of the people that are in favor of the Keystone, are ones that won't be affected, if it springs a leak or something else drastic.

  10. larry kurtz 2013.03.17

    KXL exists on somebody's spreadsheet only: might as well plan a trip to Uranus, Les.

Comments are closed.