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The Keystone XL Pipeline: GOP Lies and Higher Midwest Gas Prices

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Russ Girling, TransCanada’s president and chief executive officer:

Until this pipeline is constructed, the US will continue to import millions of barrels of conflict oil from the Middle East and Venezuela and other foreign countries who do not share democratic values Canadians and Americans are privileged to have, This project is too important to the US economy, the Canadian economy and the national interest of the United States for it not to proceed.

Alex Pourbaix, TransCanada’s president for energy and oil pipelines to Congress last December:

Keystone will bring many benefits to the United States, but I believe the most important role that Keystone will play is to bring energy security to the United States during what has been recently some very unsettling times overseas,

When asked by Rep. Ed Markey of Massachusetts if he could get assurances, “…so that this country realizes all of the energy security benefits your company and others have promised?” Pourbaix replied, “No, I can’t do that,”

First and foremost, let’s point out that the Republican Party and its partners U.S. oil and Canadian oil are attempting to meld Canada (the country to our north) and Canadian oil companies into one entity, in a deceptive attempt to convince the American voter that any fight against greedy Canadian and U.S. oil companies is a fight against Canada-our “greatest ally to the north.”

Mitt Romney: “How in the world can you have a president who doesn’t understand the importance of getting energy from our next-door neighbor?”

Sen. Orrin Hatch (R-Utah):

This is ridiculous. With price of gas soaring, the President blasts anyone who criticizes his lack of an energy strategy, but then he’s lobbying to stop a common-sense amendment allowing Keystone XL pipeline to move forward. The President should stop lobbying against it and get behind this critical job-creating pipeline. People in Utah are a lot smarter than that – they know that more American energy provides much needed jobs, will help lower the price at the pump, and stops a dangerous dependency on foreign oil.

Let’s examine the most glaring deception in those and other Republican statements. The GOP insists the pipeline will:

A. Reduce the U.S.’s dependency on foreign oil. That means that the oil from Canada will be used in the United States in order to reduce our oil imports.
B. U.S. manufacturing jobs would be dramatically increased in the building of, and producing of the materials to construct the pipeline. Both lies.

Proof: Sen. Ron Wyden, (D-Oregon) introduced a measure that would insure that the heavy tar sands oil and natural gas pumped through the pipeline had to by law stay in the U.S. and that no foreign materials could be used to build it meaning only American iron and steel could be used, and that only American companies and American workers would be involved in its construction and maintanance, thus guaranteeing those promised American jobs, It was soundly defeated by Republicans in a 34-64 vote. If Hatch’s statement were true; why the objections and defeat of such a reasonable guarantee?

Of course the assumption is that the price of Canadian crude would stay at current levels or go lower. Wrong.

From a report submitted to TransCanada by Purvin and Gertz Inc.
“Existing markets for Canadian heavy crude, principally, are currently oversupplied, resulting in price discounting for Canadian heavy crude oil,” and goes on to report, “Access to the via the Keystone XL Pipeline is expected to strengthen Canadian crude oil pricing in by removing this oversupply. This is expected to increase the price of heavy crude to the equivalent cost of imported crude,” and then goes on to say, “Not only will this directly benefit these shippers, it will also provide a benefit to all heavy crude producers by increasing the price they receive for their crude, as well as providing significant pipeline capacity to an alternative market.”

Remember that phrase alternative market. In effect that would raise the price of Canadian crude to the equivalent of Middle East/OPEC crude. After all, when the 830.000 barrels a day of that crude pass through the XL pipeline, the price of it will be based on the world market, not the over-supplied local Midwest and Canadian western market.

Where is the midwestern oversupply coming from? 546,000 barrels a day are being pumped in North Dakota alone! The only states pumping more are Alaska and Texas, with ND surpassing even California. That crude will eventually be heading to the gulf coast and most likely be exported… via the XL pipeline. At the current rate of increase North Dakota could surpass even Alaskan production.

An HIS CERA report advised: “If a minority of the barrels were sold at the Gulf Coast at a Gulf Coast price, that would have the effect of raising the price not only in the Midwest and Ontario but in Western Canada,”

TransCanada officials not only don’t dispute this, but also admitted it during hearings before the U.S. Congress last May and December. It should be noted that many of the refineries in the gulf are in what most American taxpayers don’t know are foreign trade zones, where the oil can and will be exported internationally without paying a dime in U.S. taxes. With the Republican-driven defeat of the stipulation that the crude stays in the U.S., that alternative market would be China and India along with cornering European and Asian countries.

Retired Brigadier General Steven Anderson:

So seven shippers or seven producers are, in your view, pursuing this strategy in order to increase the Ontario prices. [The pipeline] will not reduce America’s dependence on Middle East oil.” It would “…set back our renewable energy efforts for at least two decades,

Senate Minority Leader Mitch McConnell (R-Ky.):

At a moment when tensions are rising in the Middle East, millions of Americans are struggling to find work and millions more are struggling with the rising cost of gas, Democrat opposition to this legislation shows how deeply out of touch they are with the concerns of middle-class Americans,

What about concerns of midwestern U.S. citizens? Aside from the temporary and then years-in-the-future jobs created to build the pipeline, what about the jobs in midwestern refineries that will be lost when the pipeline bypasses them and sends that heavy tar sands crude directly to the Gulf of Mexico? What will happen to gas prices at the pump in the American midwest when gasoline is no longer coming from those very same local refineries and instead must be shipped back north from the gulf?

A good question for your local Republican supporter is if the necessary and completely without objection bill was so sure to be passed with no deceptions, why attach it to an unrelated and crucial $109 billion transportation bill, instead of letting it stand on its own?

House Speaker John Boehner, an Ohio Republican: “By personally lobbying against the Keystone pipeline, it means the president of the United States is lobbying for sending North American energy to China and lobbying against American jobs,”

What he’s not saying is that TransCanada is trying to strong-arm the project through the U.S. Congress by threatening to export that crude to China themselves by other means if the project isn’t approved, and politics and President Obama have nothing to do with that decision.

Speaking of strong-arming, and deceptive practices the company still needs 2150 property right of ways in five states. It’s a well-kept secret that the proposal for the pipeline route hasn’t even been completed and verified. This is because many American landowners are resisting pressure from the company to grant easements through their land, even though they already may have one or more pipelines currently on it. Why? TransCanada had adopted a strategy of making low offers for the easements and telling the owners that if they don’t take them, they’ll have to hire cost-prohibitive lawyers to prevent being forced to accept them anyway.

Roberta Colkin city council member of Gallatin, TX: “Most of the landowners already have pipelines on their land, so they aren’t against pipelines, but they’re upset about being bullied by TransCanada.”

This must-see YouTube featuring “good ‘ol boys” David Daniels of Winnsboro, Texas, and especially James Shelton and Mike Hathorn of Wells, Texas and others shows the struggle residents and ranch owners are going through: “TransCanada said this is our final offer; otherwise we’ll take you to court.”

These people have voiced their concerns about being pressured into taking only $14,000 for the pipeline right of way across 20 acres of their property, especially a pipeline that could potentially leak affecting their ground water. Concerns rose recently because of the 2010 Enbridge pipeline spill of over 800,000 gallons of tar sands crude into Michigan’s Kalamazoo River.

Of particular concern is an attempt to traverse and/or get around environmental issues involving avoiding the Ogallala Aquifer, an important water source for eight states; and the Nebraska Sandhills region, where TransCanada has already spent $500,000 in 2011 alone and another $1.3 million in lobbying Washington senators and representatives.

A prime example of politicians being influenced by the big oil companies was when South Dakota suspiciously began routing trucks through the Pine Ridge Indian Reservation on the excuse that it’d save Canadian Oil companies money in shipping costs, it raised more than a few eyebrows and drivers were questioned.

Chase Iron Eyes:

One of the drivers responded that they did not know they were crossing Indian land, only that they were following company directives regarding their assigned routes and that their Canadian Corporation had received this particular route information as a result of a partnership with the State of South Dakota, whose elected officials have always supported the Keystone XL pipeline.”

Why? If vehicles had used other state routes through South Dakota, they would have been fined or charged fees of up to $50,000 each at Interstate Highway weigh stations.

Philip K. Verleger, president of PKVerleger LLC, a Colorado consulting firm specializing in research on oil market economics:

The firms involved have asked the US State Department to approve this project, even as they’ve told Canadian government officials how the pipeline can be used to add at least $4 billion to the US fuel bill, US farmers who spent $12.4 billion on fuel in 2009 could see those costs rise to $15 billion or higher if the pipeline goes through. At least $500 million of the added cost “would come from the Canadian market manipulation, The Keystone XL pipeline will move production from Canadian oil sands to a deepwater port from where it can be exported.

One of the alternative routes entailed shipping the heavy tar sands crude through Maine, but a more friendly route would need to be directly through Republican controlled Midwestern red states even though the increased gas prices would affect the very farmers who support them, blinded by politics instead of common sense. After all GOP-leaning farmers would be easier to convince than the blue states along the eastern coast.

Newt Gingrich notes Obama’s refusal to cooperate, “…weakens America’s national security and kills thousands of well-paying American jobs.”

Considering the daunting number of years needed to complete the project and even find an eventual route for it, an instant fix of the American economy and job creation are very unlikely and the Repubicans know it, despite their deceptive claim of a quick fix, if the American people would only believe them at the election booth. In fact the only thing instant will be a huge additional profit to Canadian and U.S. oil companies the very moment that crude begins flowing. Only a few thousand local jobs will be involved in the construction, and will end when it is completed. The jobs increase will come in Canada manning pumping stations etc, but what few midwestern refineries that remain open after their supply has been bypassed to the Gulf, are already staffed.

Over the past five years, exports from the Gulf coast have soared as refiners sitting in tax-free zones near Port Arthur, Texas have shifted production away from gasoline and toward higher-margin diesel. Since 2007, overall US exports of diesel and other products have jumped 134 percent, the US Energy Information Administration reports. Of US exports, two thirds is shipped abroad from Gulf refineries, now more than 2 million barrels a day and up from just a quarter of today’s level a decade ago.

That trend was captured in testimony Sept. 17, 2009, before Canada’s National Energy Board. Seven Canadian companies were willing to pay higher pipeline tariff costs for using the Keystone XL pipeline, the testimony showed, in order to bypass Midwest refineries by sending 500,000 barrels per day, the lion’s share of the pipeline’s capacity, to Gulf refineries.

Even if jobs are created, which will only last until the pipeline is completed, they’ll benefit only the middle red states where republican interests lie. Where the country is hurting the most will see no benefits, and higher gas prices at the pumps as local refineries are shut down due to the oil being shipped to Texas and the Gulf coast refineries. By the time the pipeline is built and the truths in this article come to fruition, it will be too late to do anything about it and the oil company sponsored members of the House and Senate know it.

Until this pipeline is constructed, the US will continue to import millions of barrels of conflict oil from the Middle East and Venezuela and other foreign countries who do not share democratic values Canadians and Americans are privileged to have,” Russ Girling, TransCanada’s president and chief executive officer. “This project,” he continued, “is too important to the US economy, the Canadian economy and the national interest of the United States for it not to proceed.

Still believe him? Don’t let multi-billion dollar Canadian and U.S. oil companies fool you into equating TransCanada with Canada itself. It is these very oil companies that are draining cash from both of our countries working families lean budgets with their already obscene profits and now they want more… and they want the American taxpayer not only to foot the bill by paying their higher prices at the pump, but to thank them for it too.

Republican presidential candidates are quick to criticize President Obama for high gas prices. What they don’t tell you is that pump prices rise mostly from speculators on Wall Street buying gasoline up, taking it off the market, creating a supply/demand shortage, then selling it a huge profit on the crisis that they themselves created in the first place.

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About Jet Gardner

I like collecting books, music, movies, chess sets and friends
  • JacobEich

    Jet Gardner is a lying piece of shyte. This flaming fa66ot posts exhaustively on Politico, when the subject is anything related to pervertedfudgepacking. At one point he implies that he’s a defrocked Presbyterian Associate minister. Oh, yeah, seems his companion died, and the deceased parents trashed the house where Jet and his lover had lived, taking everything of value. Jet’s favorite activity is posting a series of discriminatory acts that selected cities (depending on the state) are committing. In short, its the same post, only the name of the city changes, as the state changes. In Alabama, it is a Huntsville Catholic Judge who refuses to grant divorces; in Idaho, it’s Pocatello, Idaho, where a Catholic judge refuses to grant divorces. And if you call him on his lies, he’ll claim that the poster is a disaffected lover who is seeking revenge. Check this out:

    Jet Gardner • a day ago

    It might interest all of you to know that little Jacob is a bitter ex-boyfriend that I supported for nearly a year because he couldn’t get a job… he liked/worshiped my muscles… I threw him out of the house after catching him using my credit cards
    He cried on the phone and begged me to take him back for days see more 0

    Jet Gardner Jet Gardner • a day ago

    P.S. Darling, the very fact that I used child psychology in order to trick you into reposting my “greatest hits” all afternoon instead of the ignorant drivle that you usually put out should tell everyone reading just how smart you are-versus how smart you think you are
    I posted some of Jet’s lies and fraudulent claims. That was his defense.
    He’s one sick, twisted anti-Christian bigot and militant homosexual.

    Of course, I don’t personally know or have ever met this p.o.s.. 2nd post

  • It is time to take another look at the facts outlined in this article

  • Jet Gardner

    John Boehner is an embarrasment to us Ohioans and should be impeached… Even his own party isn’t supporting him in congress now and have irresponibly left town.

  • 12/19/12-Central Ohio is paying $2.92 a gallon because the GOPs precious XL pioeline isn’t diverting midwest crude to Texaa so they can sell it to China instead of us…

  • Do you know that oil in the U.S. was first discovered not in Texas-but in Ohio & Pennsylvania?

  • Igor

    The XL is not in Americas best interests.

  • If Romney gets his xl pipeline-crude will bypass midwest refineries raising prices and profits for big oil

  • Thanks to Obama opposing Romney’s pipeline-midwest gas prices stand at $3.09 on 10/23/12

  • Mid Ohio gas price @ pump 10/19/12 ar #3.12 because Eomney’s pipeline isn’t diverting crude away from midwest refineries

  • Local Ohio Gas at the pump is at $3.19 because the big oil pipeline that Romney is whining about didn’t go through-thwarting their bypassing our local refineries.



    From NBC News transcript: – Is it possible to buy a position on mitt romney ‘s team of advisers simply by donating large sums of cash to a pro- romneysuperpac ? it may be coincidence but just one month after being named romney ‘s top energy adviser, this man, harold hamm wrote a check to the superpac restore our future. michael isikoff is following the story and he joins us live from washington. mike, who is this man, and is this the and is this the quid pro quo that it appears to be?

    harold hamm is chairman and ceo of a company called continental resources that owns much of the oil shell formation below north dakota and montana. in fact, he was profiled in a businessweek story just last january under the title “the man who bought north dakota .” his company, continental resources, has made a killing on the boom in oil production from oil shale in that state. and he’s also been sharply critical of president obama ‘s energy policy , says he’s investing way too much in unproven technologies like solar and windmills instead of promoting more domestic oil production . he’s also very critical of the president giving tax breaks. here’s what we know. in march he popped up – romney made a campaign stop in north dakota , fargo, and announced that mr. hamm would be the chairman of something called his energy advisory group to advise him on setting an energy policy . and then we just discovered this week that about that time, about a month later, mr. hamm donates this $985,000 to the romneysuperpac . and this is – you know, we’ve all become a bit jaded by these large six and seven-figure donations. do the superpacs raise questions about access the donors might get to the candidates? here we have something of a wrinkle where one of the mega donors is actually explicitly setting policy for the candidate. he’s the chairman of this energy advisory group.

    >> nothing more than a coincidence, michael. nothing more than a coincidence.

    >> of course, what the romney campaign said was the superpac is an independent entity and, therefore, they can’t answer questions.

    >> mike, i want you to take a listen to romney responding to rick santorum ‘s complaints about superpac ads during the south carolina primary debate. take a listen.

    >> i did not have a superpac run an ad against you. as you know, that is something which is completely out of the control of candidates. one of the things i decry in the current financial system that gets behind campaigns.

    >> are we really expected to suspend our disbelief when mitt romney has said he has no contact, no power over superpacs when his energy adviser tosses in almost $1 million a month after coming on board the campaign?

    >> there was a very interesting firing of the supreme court a few days ago by senator john mccain and senator shelby whitehouse asking them to revisit that decision pointing out the many ways in which superpacs and the president’s campaigns overlap, how consultants go from one to the other, and so i think this whole idea of – that these are independent groups is being challenged again and again, and, you know, every time we look at the new superpac reports, we find new examples that raise questions along these lines.

  • Dear God! prices at the pump are falling all over the country. It HAS to be an evil left-wing plot led by Hussein Obama to sabotage Oil company profits!

  • UPdate: Michigan

    Now don’t forget kids; if it’s Obama’s fault they went up-it’s his fault they’re coming down!

    AAA Michigan says gasoline prices fell about 10 cents during the past week to a statewide average of about $3.83 per gall

    The auto club said Monday the average is about 15 cents per gallon less than last year at this time.

    Of the cities it surveys, AAA Michigan says the cheapest price for self-serve unleaded fuel is in the Flint area, where it’s $3.75 a gallon. The highest average is in the Marquette area at $3.88.

    Dearborn-based AAA Michigan surveys 2,800 Michigan gas stations daily.



    COLUMBUS, Ohio
    Ohio gasoline prices have dropped by a few cents, mirroring a decrease in the national average.

    The average price for regular gas in Ohio is $3.71 a gallon in Monday’s survey from auto club AAA, the Oil Price Information Service and Wright Express.

    Pump prices in metropolitan Columbus have fallen to between $3.44-$3.75.

    Drivers in the Buckeye State were paying $3.79 last week and $3.87 a year ago.

    Prices have taken a downward turn after a four-month surge pushed gasoline to nearly $4 per gallon in early April. That left drivers, politicians and economists worried that prices might soar past all-time highs, angering voters and dragging down an economy that is struggling to grow.

    Nationally, the average price of regular gas is about $3.86, down four cents from a week ago.


    THIS is what happens when midwest gasoline and oil stay in the midwest. With no XL pipeline the price goes lower because what is refined in the midwest stays in the midwest.

    Can you imagine the price at the pump nationwide if the whole country insisted in keeping our oil HERE instead of exporting it to the gulf to be refined and exported to china and europe???

  • Update: Ohio’s governor again showed how much he owes his oil company backers in the past by allowing fracking under Youngstown without proper geological studies first, then he proposed allowing oil drilling in state parks, and now this from the Associated Press…

    COLUMBUS, Ohio – In the past three years, a state board dominated by members favorable to the oil and gas industry has mostly recommended against the wishes of private landowners fighting drilling beneath their land.

    State records obtained by The Associated Press through a records request show the Technical Advisory Council recommended approving 43 of 56 requests since 2009 under Ohio’s mandatory pooling law. It allows drillers to defy landowners’ wishes if enough neighbors agree to a well.

    Opponents say the law is tantamount to seizing private property for corporate profit, even though resisting landowners are compensated.

    An attorney for drillers says such laws assure drilling profits are equally shared among even nonparticipating neighbors – and they increase production by reducing the number of holes drilled.

  • Newt… Newt who? [he grinned sarcastically]

  • Kyle Hunter

    They’re were as much his fault going up, as they are now that they went back down. Now explain that to $2.50-a-gallon Newt.

  • Pump prices have fallen 40 cents in the midwest in 3 weeks-still no one blames Obama?

  • Gasoline prices in Ohio have dropped 30 cents in under weeks… No one blames Obama?

  • Update: Forbes Magazine:

    We’re seeing fallout from gas price mania in many different directions. Last week, the commander in chief visited the small oil-depot town of Cushing, Okla., (small and hostile is better than big and hostile: President Obama is unloved down there) to announce that he would expedite approval of the southern portion of the Keystone pipeline. The pipeline would help drain a glut of oil collecting at Cushing, transporting it to refineries on the Gulf Coast.

    Will the coming energy self-sufficiency of the United States lower pump prices? No, it won’t. Oil is a global commodity, and it is traded thus. The price is determined by whatever the marginal price is per barrel in the world. Unless the oil companies are nationalized and forced to sell at lower prices in the U.S., thus foregoing the profitability to be gained elsewhere, oil, and, with it, gas pump prices, will continue to rise over time. Newt Gingrich’s promise that “if elected” (not a real possibility, I admit) to lower pump prices to $2.50/gal should be seen for what it is: yet another politically-expedient and totally mendacious promise made by a politician. The real culprit in the gasoline price drama is none other than supply and demand, aided by a very weak dollar.

  • Update: Thanks to President Hussein Nobama, pump prices dropped 20 cents a gallon in Ohio in less than a week.

    If you get to blame him, you also get to credit him.

  • I used to fly to SD on business 3-4 times a year, I miss it. We had a house that overlookied the airport and base and I cruised marines and sailors for our features… made a lot of money off those guys.

    We had offices and studios on El Cajon before the owners sold out.

    Haven’t been there since 2004

  • It seems that not only are San Diego prices among the highest in the country, the bit of San Diego I live in has the highest prices in the city.

    Time to oil the old bike…

  • I’m glad it worked for you Kyle, now if I can only get it to work for Doc. Anyone else have trouble? See the link on #100

    It defaults to Columbus Ohio, but if you put your city in the search box it apparently covers a lot of the country… The link is on #100

  • Kyle Hunter

    GREAT TOOL Jet! You are obviously in Columbus Ohio, because the site defaults there, that and the site title-duh. I tried saving it to my favorites but it goes back to Columbus, but it’s not that much of a glitch to plug in my hometown.

    Thanks for the link!

  • If you type in San Diego you’ll get San Diego’s prices… sorry I wasn’t clear. Try it it works!

  • Thanks, Jet.

    Apparently prices in San Diego are so high the website thinks you might as well drive to Columbus to get cheap gas.

  • Sorry, If you type San Diego in the search box you’ll get your local prices… sigh

  • Doc, here’s a handy-dandy tool and I’ve primed it for San Diego just for you…

  • Don’t worry Doc as soon as they put the pipeline through our will go up too.

  • Still $4.27 here in SD, but I believe we have the most expensive gas in the country, or close to it.

  • Well that goes without saying Doc… good point

  • Kyle Hunter

    It’s around $3.75 here.

  • I made the dumb mistake of filling my tank two days ago at $3.95 thinking it was about to go up, now the same station is posting $3.79.

    I guess I shouldn’t turn pro at buying gasoline futures…

  • I’m sure some conservative writer somewhere has penned an op-ed explaining why falling gas prices are disastrous for the economy, but only when a Democrat is president.

  • Did you really expect them to Kyle?

  • Kyle Hunter

    Interesting how no one’s blaming Obama for the pump prices recently beginning to fall.

  • It’s an evil conspiracy Igor. Rush Limpbaugh told the oil companies to raise the prices until after the election in november.

    That way they get 6-months of billions in profits and everyone gets mad at Obama for raising them…

    Because the president only has to pick up the phone to raise and lower pump prices on a whim…

    Any gullable idiot will tell you that!

  • Igor

    #82-Pump seems all-too-willing to accept assumptions as facts: “The supply and demand effects the price as always…”.

    Really? Yet the evidence of the past couple years refutes that since we have rising prices in spite of increasing supply and decreasing demand.

    How do you explain that, pump?

    Do you have in mind some kind of imagined “law of supply and demand” that you would like to tell us about?

  • Igor

    The XL pipeline is a bad deal for the USA.

    XL will deliver little or no benefits to the USA. The useful oil will go to India and China.

    The employment benefits are minimal or non-existent. The impartial Cornell study indicates a few hundred temporary jobs, if any.

    The steel tubing is already ordered from China.

    The benefiting oil companies are 60% foreign-owned.

    Transcanada is already demanding subsidies from the USA Taxpayer.

    On the other hand, the costs to the USA are enormous.

    The material that flows through the pipeline is poisonous and toxic. Pipeline breaches will occur often and spoil rich USA agricultural lands. We are dependent on those ag lands to balance our payments with other countries. It’s stupid and malevolent to throw that land away.

    The USA will be stuck with the cost of the toxic and poisonous materials refined out of the tar sands.

    XL is a very bad deal.

    (CBS News) President Obama Thursday said he is calling on his administration “to cut through red tape, break through bureaucratic hurdles,” and make the Southern leg of the controversial Keystone pipeline “a priority.”

    “Producing more oil and gas here at home has been, and will continue to be, a critical part of our all-of-the-above strategy,” Mr. Obama said from Cushing, Oklahoma, the site where the Southern portion of the pipeline will begin construction.

    Standing next to the giant TransCanada pipes that will make up the Southern leg of the Keystone pipeline, Mr. Obama sought to remind voters that he’s not opposed to domestic oil drilling.

    In fact, “we’re drilling all over the place right now,” the president said, citing his administration’s directive to open up millions of acres for oil and gas exploration in 23 states. Under his watch, Mr. Obama said, the number of operating oil rigs has reached a record high, he said, and the U.S. has added enough new oil and gas pipeline to “circle the Earth and then some.”

    The Southern leg of the Keystone pipeline should be a priority, he said, to free up the “bottleneck” of oil heading to refineries. “If we could, it would help us increase our oil supplies at a time where we need as much as possible,” he said.

    Cushing is a major trading hub for crude oil, but the industry says a bottleneck in pipeline there has backed up its use. TransCanada Corporation plans to lay pipe through Cushing as part of its Keystone project. The Keystone pipeline is ultimately planned to link the tar sands fields of northern Alberta to oil refineries on the Texas Gulf Coast.

    TransCanada announced last month it will proceed with the construction of pipeline from Cushing to the U.S. Gulf Coast a portion of the Keystone project that the company says has its own independent value. In the meantime, the company is waiting for executive approval for the Northern portion.

    Mr. Obama rejected an attempt from Congress late last year to expedite the construction of the full pipeline, citing the need for more time to study the environmental and safety risks.

    The president acknowledged today the issue has “generated a lot of controversy and a lot of politics,” but he attributed to the controversy specifically to concerns about its original route through a critical Nebraska aquifer.

    “Nebraskans of all political stripes, including the Republican governor there, raised some concerns about the wisdom of that route,” he said. While TransCanada has said it will re-route the pipeline, Mr. Obama maintained, “The Northern portion of [the pipeline], we’re going to have to review appropriately to protect the health and safety of the American people.”

    The Associated Press this week produced a statistical analysis of 36 years of monthly, inflation-adjusted gasoline prices and U.S. domestic oil production, showing no statistical correlation between how much oil comes out of U.S. wells and the price at the pump.

    Anyone who says drilling alone will bring down gas prices, Mr. Obama said today, is either “not paying attention” or “not playing it straight.”

  • True Brian, I tried to touch on that briefly in the article. Be sure to spread the word and also read the updates I’ve posted in the comments


  • brian

    I always think that history usually gives us our best insight into what may happen.

    Most people don’t know that there was a major Tar Sands spill in the USA 2 years ago which got many people very sick and also has proven impossible to clean from the river, plus the cost is over 10x normal oil clean ups. when the spill happened they thought it would take a month, it has been over 2 years. keeping that in mind there are still mixed opinions on the topic. here is some more detail on both… well worth the read

  • Kyle, I see your point. Fox News is beholden to the GOP, so I guess it’d only be “fair and balanced” to assume that the networks would be beholden to their sponsors… though I haven’t seen all that many gas commercials during their news casts.

  • Thanks Pump, be sure to go through the comments and read all the updates.

  • Kyle Hunter

    That is an aspect of this whole situation that never occurred to me Kyle. I suppose that would be a factor.

  • Pump

    Great post, congratulations on highlighting the issues on this matter. The supply and demand effects the price as always but there are a few other factors that get effected far down the line. When it comes down to heating oil, the amount of crime involed with the theft of it from peoples storage tanks can also effect the price. There is plenty of reading matter out there on the subject. Here in the UK its a big problem !!

  • Igor

    Kyle, because most people only see the MainStream Media, which assiduously suppresses info that would distress their corporate masters who pay for the commercials that finance Scott Pelleys expensive coiffure.

  • I’m as perplexed as you are Kyle. Maybe if you facebooked it for me and tweeted it’d help.

    …oh and a few diggs?

  • Kyle Hunter

    Why doesn’t anyone seem to know about all of this muck?

  • They forgot three zeros at the end of it and were accidentally forcasting their profits

  • Igor

    IMO the Obama campaign is saving this argument for a choice moment in the pre-election action. That way they can play it either way for maximum purchase.

    Incidentally, I happened upon an Exxon pro-pipeline commercial on TV Sunday night, where the spokesperson claimed that XL could produce 500,000 jobs! That, in spite of the fact that even the paid-for Perryman report only estimated 18,000 jobs (according to their secret model!) and the Cornell unpaid report said maybe a couple thousand, or maybe even negative!

    The entire US oil industry only employs about 310,000 people, and that number goes down every year (as any reader of the API Journal knows, since it’s a source of constant distress).

  • What I’m trying to figure out Igor is why the hell the Obama administration isn’t pointing this out loudly and frequently.

    I guess he’s waiting until this becomes an issue after the nominations.

    Also keep in mind that the American voter has a very short memory, if prices fall between now and november, he can take advantage of the fact that he was blamed for the rise in prices, so he can take credit for the fall too. Just like everyone blamed him for the economy and now that the stock market has risen to new highs and the economy is starting to show feeble but promising signs of recovery, he can take credit for that too.

    There’s a story he liked to tell during his first hear in office, that the republicans are like some fool who drove his car (the economy) into a ditch and then expected the democrats to get him back out of it… not only have they stood on they (congress) stood on the side of the road watching and refusing to help get it back out, but they’re critisizing him about how long he’s taking to do it.

  • Igor

    #74-Jet is right, and clearly shows the failure of the argument for more domestic drilling. In fact, we are producing more and consuming less and still prices go up, as if in defiance of “supply and demand”, the notion that pro-drillers hang their claims upon.

    Of course, that is because international oil markets dominate oil prices.

  • Update:

    The fact of the matter is that we are producing more from public lands, both oil and gas, both onshore as well as offshore, than at any time in recent memory and when you look back at the year of 2009, 2010, and 2011, we’ve continued to make millions and millions of acres of the public estate available both on the land, as well as on the sea.”

    Even after the Gulf oil disaster, new permits have been issued for both deepwater and shallow water drilling and there are more rigs working there than at any recent time in memory

    if increasing drilling were the answer in the United States to lowering prices at the pump, we would be seeing lower prices at the pump, because under President Obama we have increased significantly domestic oil and gas production.

    That is a fact.

  • Why sell it here at $3.45 a galloon when you can sell it overseas for $5-6 or more?

  • FACT:
    U.S. exports of gasoline, diesel and other fuels will more than double in the next three years as refiners take advantage of a growing supply of domestic crudes and ship more fuel to emerging markets, according to UK research firm Wood Mackenzie.

    Exports will rise by 450,000 barrels a day by 2015 as domestic demand shrinks and more products are sent to Latin America, Africa and other regions where fuel use is increasing, says Alan Gelder, head of downstream consulting at Edinburgh-based Wood Mackenzie.

    Where is the fuel shortage that’s got pump prices so high and everyone screaming drill baby drill?
    The U.S. exported more gasoline, diesel and other fuels than it imported in 2011 for the first time since 1949, according to the Energy Information Administration. Shipments abroad of petroleum products exceeded imports by 439,000 barrels a day last year.

    “U.S. gasoline demand is going one way, and that’s down,” Gelder says. “So to the question of can the U.S. transform into a global export center, we say yes. That can be done.”

    Shipments outside the U.S. will increase at a rate of 60,000 to 80,000 barrels a day in the years after 2015, Gelder says.

    U.S. fuel demand will drop 0.4% to 18.77 million barrels a day in 2012, the EIA forecast last month in its Short-Term Energy Outlook. Consumption of oil and petroleum products dropped 7.8% between 2005 and 2010, and Mexico’s use of U.S.-made gasoline was 44% higher last year than in 2010.

  • Bush’s only solution to high gas prices was to ask us to pray and send a secret congratulatory e-mail to Houston.

  • One thing I still haven’t pointed out is that the pipeline will have a lot of tributaries picking up crude along the way from south dakota, wyoming etc in order to bypass those midwest refineries.

  • Keith in a perfect world, the U.S. would take over the oil industry and all those billions of profits would go to the national debt and our price at the pump would be about a dollar a gallon… in a perfect world.

    I get the feeling that Canadian Big Oil wants to become a second Saudi Arabia.

    As for the length of the article, I fought long and hard, dumped about a third of it, which is in the comments section now in pieces, but I couldn’t find anything else to cut.

    Thanks for slogging all the way through it anyway.

    I’m kinda pissed that the Obama campaign isn’t pointing a lot of it out, but mayber they’re waiting for Romney to make it a campaign issue once he’s nominated, so he can be made a fool of and big oil is exposed for what they are-a blood sucking industry that’s draining every penny they can get out of us before they run out of oil, or get caught doing it.

  • Keith Barnes

    Jet in your comment 63 if we’re exporting THAT much gasoline why is our price so high? It seems to me that if we kept it here we’d be better off and there would be no need for all that drilling they want to do.

    What am I missing that would make this make sense?

    Good article by the way, if not a bit long. It goes a long way towards rationalizing nationalization of the oil industry, though there is about as much chance of that as there is of nationalizing the health care industry.

  • I’ll Keep that in mind EB, hope you liked the article and found it informative.

  • #55 QFT

    I use AdBlock Plus for Firefox and don’t run into the problems others complain about

  • TransCanada, developer of the Keystone XL Pipeline, estimates that the price of tar sands oil would increase about $3 per barrel as a result of the pipeline. Its estimate is one of the most conservative. For Koch Petroleum, which imports 400,000 barrels daily, this would translate to a jump in profits of about $1.2 million per day, or $438 million per year.

    Rising tar sands prices would likely lift all oil prices. Recall that the current glut of tar sands oil is depressing U.S. prices of gasoline, diesel and other petroleum products, regardless of the source of the oil being refined. TransCanada’s Louis Fenyvesi insists that while tar sands crude is cheaper than oil from the Persian Gulf, the savings would be passed along to motorists. “That will have a positive impact on gasoline prices in the Midwest and other markets served from the Gulf Coast,” Fenyvesi told the Journal Star of Lincoln, Nebraska.

    But according to an analysis by Canadian economist and consultant Philip Verleger, inserted in the Congressional Record by Rep. Dennis Kucinich (D.Ohio), the Keystone XL pipeline would increase gas prices by 10 to 20 cents per gallon across the United States. The greatest price increase would occur in 15 mostly central states: between Illinois west to North and South Dakota. where prices would increase by an estimated $6.55 per barrel of crude oil in the Midwest and $3 average per barrel across the United States.

  • Thanks Glenn, and thanks again for asking me to write this 🙂

  • This just in… and it’s a big one…

    There is an immense amount of money at stake, held by some of the continent’s most powerful interests. The names of some stakeholders-Royal Dutch Shell, for example-are well known. But others whose riches ride on the debate’s outcome, including Charles and David Koch, tied as the 18th richest persons in the world according to Forbes magazine, have tried to keep a low profile.

    On Jan. 30, 2012, as if to underline the on-going nature of the debate over the pipeline, Sen. John Hoeven (R.-ND) and 44 others, all but one Republican, introduced legislation in the United States Senate that would authorize “TransCanada Keystone Pipeline, L.P…. to construct, connect, operate, and maintain pipeline facilities… for the import of crude oil and other hydrocarbons at the United States-Canada Border at Phillips County, Montana.”

    The media has focused little attention focused on the real consequences of the pipeline, among them, a probable increase by some estimates of gasoline prices in the Midwestern United States of 30 cents per gallon for regular and 10 to 20 cents per gallon elsewhere.

    But that is not where the flow of money will stop. Oil from Canada’s tar sands will supply a feedstock to the U.S. refining industry, which is enjoying explosive growth in exports. In the words of CNN Money,

    “The United States is awash in gasoline. So much so, in fact, that the country is exporting a record amount of it.”

    In September 2011, the United States exported 430,000 more barrels of gasoline a day than it imported, according to the U.S. Energy Information Administration. That is about twice what it exported at the start of the year, and “experts and industry insiders say the trend is here to stay,” reported CNN Money.

    Moreover, all of the places in the United States where Canadian tar sands oil might arrive, and from which gasoline, diesel fuel and other refined products made from it, would be shipped are so-called foreign trade zones.

    This means that exports to other countries – but not sales within the United States – are exempt from taxes.

    These places include Houston, Port Arthur, Corpus Christi and Freeport, Texas as well as New Orleans, Lake Charles, LaPlace and Baton Rouge, Louisiana. Canada’s system is a bit different, but the bottom line is the same: “If you export the goods from Canada, you do not pay duties and taxes,” explains one official government publication.

    What the oil and products made from it will generate, however, is profit – and lots of it.

    There will be increased profit from the sale of the increased output of oil and gas that will be sold on the world market. There will be increased profit from the rise in the price of tar sands oil already being imported into the United States. And, there will be increased profit from the rise in the price of gasoline, diesel, heating oil, chemicals and other products, regardless of where the crude from which they are made imported from.

    While Congress has haggled over whether and how much to either cut or increase taxes, almost no attention has been paid to the massive transfer of wealth that would likely result from construction of the pipeline. As much as 30 cents per gallon of gasoline would be taken from the pockets of U.S. drivers and transferred to the accounts of some the world’s richest corporations and people.

    As the pipeline distributes oil to the Gulf, it redistributes wealth upward. In the aggregate, the price increases triggered by construction of Keystone would amount to a, if you will, hidden tax of about $44 per year on every man, woman and child in America.

    Unlike the money collected by the government, however, the increased profits of roughly $13.8 billion would go not to support food stamps, buy fighter jets or bolster Social Security. Instead, it would find its way into the bank accounts of men and women in the wood-paneled offices of Houston, Calgary and Wichita.

    Although few are aware of it, a great deal of tar sands oil that proponents want to pump all the way to Texas and Louisiana already makes its way out of Canada. But it goes only as far as Cushman, Okla., where the glut of oil depresses gasoline and diesel prices throughout the Midwest and much the rest of the United States. In Oklahoma City, Oklahoma, for example, regular gasoline was selling for $3.17 a gallon on Feb. 14, 2012 at the Road Star station at 5501 NE 10th St. near Sooner Rd. In nearby Wichita, Kan., 162 miles away, regular was $3.25. But 1,337 miles away from the tar sands oil glut, in similarly sized Baltimore, Md., a gallon of regular cost $3.43, with a national average of $3.48.

    Politicians who refuse to increase the taxes of millionaires have eagerly lined up in Congress in support of increasing the price of gasoline for working people to benefit a handful of billionaires. Every Senator that supported Hoeven’s bill to mandate approval of Keystone also voted against debating a proposal by Sen. Bob Casey (D.-Penn.) to increase the tax on the income of millionaires.

  • Jordan Richardson

    we’re running out of things to tu quoque each other about.

    I didn’t know it was that kind of site…

  • Glenn Contrarian

    Jet –

    If there’s one thing I’ve noticed, it’s that the more solidly-written a piece, the more solid and obviously-irrefutable the references and evidence given, the fewer the attention paid by The Other Side, whatever that ‘other side’ many be.

    The ones that get more attention, though, are on more controversial subjects like race and abortion…or the ones where the author evinces an inability to present a well-researched and well-thought-out argument. Of course, with that last one I wouldn’t be referring to a certain rather recent contributor who shares his name with a certain liberal actor. No, I wouldn’t do that. Honest.

  • Just as well…

  • They’ve all buggered off for some reason. Maybe they’re having a convention or something.

  • Are all the right-wingers ignoring this article or did I research it so well that they can’t argue it?

  • But… but how will BC make money… they’re an oil company… are they?

  • And while you’re at it, grab a handy little gadget called ClickToFlash, which blocks the Flash plugin until you need it, speeds up page loading no end and prevents your browser from hanging up or crashing every five minutes.

    Clav, where’ve you been? There are about 335 Politics articles in Pending and we’re running out of things to tu quoque each other about.

  • Clavos

    44-Well Doc, at least they’re not the audio ads in the sidebar that I have to mute my computer for in order to read an article…

    Jet, download yourself a good ad blocker. I use Ad-Aware, and have no ads at all on my BC pages.

  • Oh good, George Bush just endorsed the pipeline. Is that good or bad news?

  • Igor, you do remember that Roberts is an ultra conservative Bush appointee, right?

  • Igor

    #48-Jet: We just need to enforce the anti-trust laws and fraud laws that are on the books. No executive is Too Big To Jail, any more than their company is Too Big To Fail.

    Our crusading Supreme Court Justice John Roberts promised something like this when he promised to “call the balls and strikes”, rather than legislate policy from the bench.

    But that was then, and this now.

    … we need to nationalize it and not worry about a profit

  • Newt buys ad space on BC?!?

  • at least they’re not the audio ads in the sidebar that I have to mute my computer for in order to read an article…

    You mean the ones that play twice simultaneously on the same page, one of them with a half-second delay for maximum annoyance?

    Those are from the Devil.

  • 46-Doc, it’s not their fault, but easy to understand after a bit of confusion. Grocery stores are a lot like independant gas station owners…

    Here’s the scenario;
    1. Prices from their suppliers go up.

    2. Price at the pump goes up to make up the difference. The problem is, the major brands can weather the increase until the price goes back down, but the independants can’t. The major gas station owners only raise their prices as little as possible.

    3. The only way for the independants to make up the difference and still compete is to keep their prices as close to the competition as possible, but that means losing money, so they make up for it by staying a little higher for a while after their price goes down in order to make up the difference and make their costs and payroll.

    Same with grocery stores. If the supplier cost of hot dogs go up, you only raise what you charge by a little, but charge more for buns and mustard. when the price goes back down you keep the price up a little to make up the difference.

    Think of it this way; The price of a 2-liter of Coke at Wal-mart is about $1.25… I wonder why it’s 1.99 at the local gas station?

  • Igor, Natural gas is so plentiful here that if our cars could be converted to it, we could bankrupt OPEC. Problem is it’s that plentifulness that makes it impossible to make a profit on it, so no one wants to touch it.

    At the risk of sounding like a socialist, we need to nationalize it and not worry about a profit… problem is, we’d put Houston out of business.

    Crude oil would eventually only be used for plastics.

  • 44-Well Doc, at least they’re not the audio ads in the sidebar that I have to mute my computer for in order to read an article…

  • Anyone else noticed that although food prices tend to rise as the cost of a gallon of gas goes up, they don’t go back down again when gas does?

  • Igor

    #40-Jon: Welcome to the new world of monopoly gas suppliers. They know that you have NO way to go to another gas company. It doesn’t make any difference how cheap that gas is to the gas company, facilitated by environmental destruction and government subsidies, they will charge What The Traffic Will Bear.

    Thus will continue the Wealth Transfer from the disorganized citizen (that’s you, you weenie!) to the highly organized industrial monopoly (that’s them, your new overlords) as facilitated by THEIR paid for politicians in the congress and every state house in the union.

    Stop complaining and get back in line! Lift that bail, tote that barge. And watch out: that mouth of yours can get you hurt!

    “If what you say is true about the glut of natural gas, why’s my Columbia Gas bill so high?”

  • It’s a skimlink, Jet. They’re automatic and BC unfortunately is now plagued with them.

    In-text ads are one thing, because at least they have that green double underline that tells you what they are. But skimlinks are deceptive, because they’re designed to look as if you put them in the comment yourself.

    Like Flash, they’re one of those Internet pests we’re all coming to loathe. They’re the blue-green algae of the Web.

  • I did –NOT– add that commercial/link to the comment above concerning the AWR.

  • UPDATE: They’re still at it kids…

    The U.S. Senate today decisively voted down an amendment to open the Arctic National Wildlife Refuge to oil and gas exploration (vote count 41-57).

    This amendment, offered by Sen. Pat Roberts (R-KS), not only sought to open the Arctic refuge’s coastal plain to drilling, but also would have allowed drilling in vast areas of our nation’s coastal waters, including the Eastern Gulf of Mexico, offshore Virginia and Alaska’s Bristol Bay, would have approved the Keystone XL tar sands pipeline, and would have reinstated 11th hour regulations from President Bush that would allow massive commercial-scale leasing of our western public lands for oil shale and tar sands developments.

    Drilling in the Arctic refuge will do nothing to combat the high gas prices seen today. What small amounts of oil might be generated from oil and gas leasing in the Arctic refuge would not be seen for ten years as oil companies will still need to explore, apply for drilling permits and start development.

  • aaaaaaand that brings us back to the worship of the almighty dollar once again, and the oil industry’s multibillion profit line.

  • Jon Ante

    If what you say is true about the glut of natural gas, why’s my Columbia Gas bill so high?

  • When you worship the almighty dollar, God, Jesus and Mother Nature take a back seat.

  • Don’t think so, Jet. The Gulf States, Florida and the southern Atlantic seaboard stand to suffer most. All red states.

    Ostrich syndrome is what it is.

  • Why don’t they care? the most rise in sea level will occur in blue states.

  • …uh, in his case it’d be “the Son” Doc

  • Thanks to Sen. Santorum, I now see the error of my ways in ever claiming that the source of the Earth’s heat was America and its people, and that the solution to global warming was as simple as asking Americans to turn a few lights off.

    Excuse me while I go and flip all the switches in the house to the On position, leave the fridge open, run the dishwasher empty, plug in every appliance I can find and leave the TV on, confident in the knowledge that nothing I can possibly do can outshine the Sun.

  • Fiction:
    Santorum explained that he is the only presidential candidate who has not “bowed to the liberal orthodoxy” of man-made global warming. “The apostles of this pseudo-religion believe that America and its people are the source of the earth’s temperature,” he writes, “I do not.” Santorum argues that the Washington establishment, specifically President Barack Obama and Republican rivals Newt Gingrich and Mitt Romney, would rather fight against global warming than for the American worker.
    Sea level has already risen about 8 inches since 1880 because warmer waters expand, In addition to the basic physics of ever-warming water expanding, scientist say hotter climate will cause some melting of glaciers in Greenland and western Antarctica that would then cause seas to rise even more.

    Sea level rise experts at the U.S. Geological Survey and the National Oceanic Atmospheric Administration

    “All low elevation places in the many urban areas along the coast will become more vulnerable,” said S. Jeffress Williams, scientist emeritus for the USGS. He pointed to Boston, New York City, Norfolk, Va., New Orleans, Charleston, S.C., Miami and Washington and its Virginia suburbs.

  • IMPORTANT fact check UPDATE: Yet another huge Republican lie to the voters…

    FACT; In DeSoto Parish, Louisiana the 2008 discovery of the Haynesville Shale – a layer of rock infused with natural gas 10,000 feet underground – has been a windfall for local governme

    Extra tax dollars paid for the three football fields, at nearly $2 million apiece, as well as road and water projects. For the last two years, the school district has doled out annual bonuses to its 750 employees of $8,500 each, a notable sum in a parish where the median household income was $36,890 in 2010, according to U.S. Census figures, well below Louisiana and national averages.

    But in recent months, the hotels and RV parks that were built to accommodate energy workers have sat half-empty. Restaurants have seen their sales collapse. Local landowners have seen their royalty checks from drilling companies fall by half in some cases.

    Why? There is so much natural gas on the market that the price has plunged, because the GOP and oil companies oppose research on running cars and busses on… natural gas.


    FACT: Parts of Texas, Arkansas and Pennsylvania are beginning to suffer as companies move their drilling rigs elsewhere to hunt for oil, which is more lucrative in Texas, Oklahoma and Ohio than natural gas. Local economies buoyed by gas drilling are facing steep drop-offs in revenue from sales taxes and a tax on gas production called severance tax.


    FACT: In Wyoming, which gets much of its revenue from natural-gas royalties and severance taxes, the plunge in prices prompted state economists in January to scale back their revenue projections by $155 million through 2014. This probably will lead to cuts in education and social services, officials say.

    “Natural gas is just killing us right now,” said Bill Mai, co-chairman of the committee that forecasts Wyoming’s revenues. “The bigger problem is we don’t foresee a quick turnaround, unless pretty much the whole country goes into an ice age at this point.”


    Mitt Romney: “Mr. President, you’re not doing the job to help us finally get gasoline prices down. That’s what I am hearing. Let me tell you, my policy is just the opposite. Open up our energy resources. Start drilling and pumping out that oil and hat natural gas, by the way-so we can be energy secure.”

    Mr. Romney first offered up some suggestions for why gas prices are skyrocketing, including Mr. Obama’s objection to drilling for oil in the Arctic National Wildlife Refuge.

    “Maybe it’s related to the fact that you said we couldn’t get a pipeline in from Canada known as Keystone. Those things affect gasoline prices, long term.”

    Rick Santorum ad:

    “Thanks to the Marcellus shale and the Utica shale, we’re seeing our economy growing again, and we’ve seen a tremendous reduction in natural-gas prices. It’s pretty remarkable to think that you can get oil out of this, but through that hydraulic fracturing you can.”

    Newt Gringrich while critisizing Obama on opposing more natural gas drilling:

    “He says there’s this tremendous revolution in natural gas, and that in the next decade we will create 600,000 jobs from natural gas. Now I ask all of you … Where does the president think natural gas comes from? … It comes from drilling. So we went out today – they’re working on it on the bus right now – and made a film of a drilling rig in Mississippi to introduce the president to how they find natural gas.”

  • Either that or we’ll wind up paying for it at the pump-you they’re not going to swallow the cost themselves.

  • Igor

    The big yield for shale oil is along fault lines, so geologists (whose salaries are paid by oil companies) will have to moderate their own findings.

  • This from USA Today quotes a report that found the Youngstown swarm was caused by poorly sited injection wells, and suggests that fracking need not be the cause of earthquakes if the wells are properly placed.

    Basically, the drilling company hadn’t done its homework, or they would have been aware they were pumping water directly into a fault. I guess it was too much hassle to pay a few geologists rather than just plunge right in and get all that lovely lucrative natural gas.

  • Our Ohio repubican governor is trying to open up our state parks to oil and gas drilling.

    This after Youngstown Ohio experienced a years worth of earthquakes until a fracking operation was shut down days after a 4.0 quake… IN YOUNGSTOWN OHIO!!!

  • Igor

    Gingrich doesn’t know what he’s talking about.

    No amount of domestic drilling will budge the price of gas. All drilled oil goes into an international market. We don’t have control over domestic gas prices.

    Gingrich is a dangerous man: making promises he knows that it is impossible for him to keep. He’s a cheater.

    Gingrich is a profound liar. He knows damn well that what he says is a big purposeful lie. After all, he’s a paid advocate for the Saudi princes whose oil interests pay his salary, as they have for several years now. He is NOT dumb; he’s crooked.

  • Update: Gingrich is up to it again…

    The Gingrich still says $2.50 gasoline is achievable and drilling here, drilling now so we can pay less and be independent of Middle East oil is just common sense.

    According to Fadel Gheit, a Managing Director and Senior Analyst covering the Oil and Gas sector for Oppenheimer & Co. Inc., that claim is simply not true-barring the economy taking a disastrous turn.

    The energy analyst told Hotsheet that Gingrich “really doesn’t know what he is talking about.”

    Gheit says that 75 percent of what Americans pay for gasoline comes from the costs of crude oil. For gas to get down to $2.50 per gallon, he said, the price of a barrel of crude oil would have to get down to around $50.

    The current price of crude? $126 per barrel.

    “Only a depression would bring oil prices down that much,” said Gheit.

    Gingrich’s energy plan centers on the idea of expanding oil drilling in the United States.

    Since the United States only has two percent of the world’s oil reserves, however, increased domestic production would not have a significant impact on prices, which are tied to global supply and demand.

    “If we drill in the middle of Manhattan and everybody drilled in their backyard we would not have enough oil to move the global market,” Gheit said.

  • Time to get a pedal bike!

  • Glenn Contrarian

    Over here in the Philippines it’s about $5.50 per gallon, give or take a few pisos. And somehow the jeepney and tricycle drivers make a living inching along in the traffic here charging about $.40 per passenger.

  • I just talked to my sister in oregon and she’s at $4.07

  • Still $4.29 at the gas station down the street, Jet, which has consistently been the cheapest in the area.

    It should be noted that I’m in San Diego, which has the priciest gas in the state, but there isn’t that much variation up and down California from what I’ve been told.

  • Hey Doc, I passed a gas station here in Ohio today at $3.49 a gallon, how’s California? I’m not being a smartass, I want to compare to the midwest oversupply here.

  • Check out the last sentence of the report I just found!
    … An independent analysis conducted by the University of Nebraska concluded that Keystone XL over a 50-year period is expected to experience 91 significant spills (greater than 50 barrels). In fact, the University of Nebraska study found Keystone XL could spill as much as 6.9 million gallons of raw tar sands crude oil at the Yellowstone River crossing. In just its first year of operation, the first Keystone pipeline operated by TransCanada has spilled 35 times in the United States and Canada in 2010. This spill frequency is 100 times higher than forecast by TransCanada.

  • I just watched the youtube again and was astonished that they’re trying to force the landowner Mike Hathorn in Texas to be responsible for any injuries that happen near or on the pipeline instead of them, so he’ll actually have to buy more insurance if someone EVEN ONE OR THEIR OWN WORKERS gets hurt walking the damned thing.

    Page 4-mid page Last third of the video. the last two guys are people who could be your grandfather and just as trustworthy

  • I have a feeling that if I tried that on my balcony my landlord would have a fit… alas

  • Jim Masterson

    Just one more reason not to vote for Romney with his head up his ass. Time to invest in gasoline futures in 50 gallon drums out in my back yard eh?

  • “IT’S THE BIG ONE ‘LIZBETH!!!! I agree with Clavos… god help me

  • Clavos


    It was only months ago, Doc, not years (as recently as last summer, I think).

    And Jet: While I certainly appreciate the props, it wasn’t hard for me to be fair, I basically agree with you in re the pipeline; I think the better path to end the dependency on oil as a source of energy would be for Obama to tax it up to $6 or even $8-9 a gallon (I paid $10 last summer in Tuscany), which would both strongly inhibit consumption, and make alternative technologies more competitive; not to mention bring in significant additional revenue to pay off that debt Obama is incurring.

    But it ain’t gonna happen; the pols (on both sides) are far more driven by getting reelected than by actually solving problems.

  • Wow, this was only published last night and it’s already fallen off the home page! I wonder how that happened?

  • Imagine that Doc, Imagine that

  • Wasn’t it just a few years ago that it was the Left calling for less dependence on foreign oil, and the Right explaining that petroleum was a fungible resource, that it all went straight into a global pool, and that there was no guarantee that oil drilled in North America would stay in North America?

    Funny old world.

  • Igor

    Jet, I really appreciate the research and writing you put into this article. Keep it up!

    Blogcritics needs more of such well-researched and well-written articles to wash away the bad taste of really inferior articles we’ve been subjected to lately.

  • The $50,000 fee they’re trying to collect in the video is what would’ve been charged in fines for driving overweight trucks over South Dakota Highways. Considering that the two-lane roads the indians are trying to maintain, they deserve the fee for all the trucks that have already damaged their roads.

  • My sincere thanks to Clavos who edited this in such a fair-minded way.

  • That link to the Lakota Tribe is on page 4-last sentence by the way…

  • I wanted to mention the Lakotas but the article was too long, so I added the YouTube instead.

    Some fiesty ladies aren’t they?

  • Holy ^%$*&

    I don’t know how this story got past me, but I sure got an eye opener with this one. Liked the You Tube of the Indians standing up to the tanker truck!

    Good job of reporting Jet

  • Thanks Igor, of course that’s not counting jobs lost at bypassed refineries. I pretty much mentioned the steel thing in the article, but thanks for elaborating for me. I had to shorten it or it’d be 12 pages long.

    Thanks for the encouragement.

    If this keeps Up, I may start writing on a regular basis after my fingers heal.

  • Igor

    Excellent article, Jet. Thanks for publishing it.

    Incidentally, republicans are lying when they say that the pipeline itself will be built with american steel: the pipe has already been ordered from China, and it will be a new ultra-thinwall tube, even more susceptible to rupture and spillage than existing pipe.

    But one of Hillary’s campaign workers is now an executive at Transcanada, so I think there’s some Old Boy influence going on there.

    The only independent employment study was done at Cornell and says there’s only about 500-2000 temporary jobs involved, and that there might even be a negative influence on US employment. I carefully read the Perryman report that Pipeline proponents commissioned, but it uses a proprietary model to estimate employment, so there’s no way to check it.

  • Without a doubt the most important 2 paragraphs are the final 2 on page 6, everything else is just proof of them.

  • I expect nothing less from them, that’s why I included so many right-wing sites as references.

    They live in a bubble Glenn, it’s a lot like a roach motel… facts got in, but they don’t come out.

    I hope this article met your expectations?

  • Glenn Contrarian

    Wow – fabulous article! What gets me is that when the BC conservatives read it, they’ll either ignore it or they’re throw insults or Fox-approved talking points that address none of the solid points you bring up.

  • This is an article that every american voter should read.