The healthcare bill has nothing to do with this situation, but I understand by adding it to this discussion you feel your point has more impact.
Amusingly, a spokesman for the Sierra Club admitted “there is no question that [transporting] oil by rail or truck is much more dangerous than a pipeline,” but that didn’t stop the zero-growth eco-fanatics from calling in their chips with President Downgrade to kill that pipeline.
Those rail shipments are expected to “increase exponentially with increased oil production and the shortage of pipelines,” according to Justin Kringstad, director of the North Dakota Pipeline Authority. That’s going to be quite a windfall for the railroad companies, isn’t it?
As it happens, 75 percent of the oil currently shipped by rail out of North Dakota is handled by Burlington Northern Santa Fe LLC… which just happens to be a unit of Warren Buffett’s company, Berkshire Hathaway Inc. What a coincidence!
Warren Buffet Cleans Up After Keystone XL - HUMAN EVENTSWhat environmental groups? Even the spokesman for the Sierra Club admits that transporting oil by rail or truck is much more dangerous than by pipeline. Was it caving to environmental groups or his big business buddy Warren Buffett?Caving to pressure from environmental groups, the Obama administration on Wednesday rejected the $7 billion-plus Keystone XL pipeline which would have carried 700,000 barrels of crude oil a day from the Alberta oil sands to refineries along the US Gulf coast.
No Keystone XL means Canadian crude will stay dirt cheap - MINING.com
The Keystone pipeline was to carry 700,000 barrels of oil a day. A barrel of oil is 42 gallons. The average rail tank car carries about 30,000 gallons. 700,000 X 42 = 29,400,000 gallons of oil now divide that by 30,000 and you get 980 oil tank cars a day. Sounds like Berkshire Hathaway Inc is going to be in for a massive profit from the cancellation of the XL Pipeline. Did I mention even the spokesman for the Sierra Club admits that transporting oil by rail or truck is much more dangerous than by pipeline.
So let's recap, Environmentalists choose the far more dangerous way of transporting oil over the safer pipeline way (really?) and the by product of that is Warren Buffett's Berkshire Hathaway Inc should benefit to the tune of 980 oil tank cars a day at the expense of the environment when the inevitable accidents happen. It all fits in with the agenda nicely. "Somehow we have to figure out how to boost the price of gasoline to the levels in Europe." Obama's now hand picked Energy Secretary Steven Chu back in 2008. Looks like they found that way there Steven.
Last edited by Prof. Peabody; 01-25-12 at 11:05 AM.
"Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passions, they cannot alter the state of facts and evidence." - John Adams
The actual number that will be at least temporarily employed for the pipeline construction is between 3500 and 4200 people.. Its only carrying less than 700,000 barrels per day from Canada to Texas... by passing Mid West refineries.
The Canadian oil companies are largely foreign owned and they won't build east and west pipelines or new refineries in Canada because they don't want to pay taxes to Canada which are higher for them than the obligations of the NAFTA agreement.
This bitumen oil will be refined in a FREE TRADE ZONE in Texas and sold for export.
Meanwhile, Canada is IMPORTING 43% of their crude from Nigeria, West Africa and Libya. Its created a problem for supplies going to Eastern Canada to the extent that a refinery in Montreal is closing.
The short version is that if there is a supply disruption to Canada, they will suffer shortaages and hardship while still piping oil south thru the United States. The foreign owned Canadian oil companies, the Texas refiners and the ports will profit, but not the US or Canada.. Canada has effectly lost control of their natural resources.
I don't really know what the trade-offs are...... but I am inclined to think the pipeline is a poor long term strategy... and more about a beneficial tax structure for the oil companies than a real benefit to either Canada or the US.
It won't reduce the price at the pump, increase domestic supply or create 20,000 jobs.. That is political hype.. If an oil company can't move a mere 700,000 barrels a day with a small labor force, they need to get out of the business.