{6/10/11}A lot of the justification for building the XL pipeline across America's heartland to the Gulf Coast is faux patriot raving about making American "energy independent" by sourcing our oil from a dedicated ally, Canada. Turns out that big oil wants to build it to make mo' money from oil exports. The pipeline will not lessen American dependence on foreign oil. Oil Change International has published a report based on information gathered from the US Energy Department and Canada's National Energy Board. Corporate disclosures and analysis of the demands in the international oil market show Keystone XL is an export pipeline. Higher fuel economy standards and economic recession have slowed US domestic demand for fuels as domestic oil and gas production increases. The US has its own large oil shale and bitumen deposits. Recently a huge bitumen deposit has been located in North Dakota. Valero Energy, the major customer for dirty tar sand crude, has detailed its export strategy to investors. Valero's Port Arthur refinery is in a Foreign Trade Zone, so naturally the company is anxious to refine and export oil tax free to Europe and Latin America. Valero has contracted to take at least 100,000 barrels of crude from the pipeline a day until 2030, the only US customer of the six who have jointly committed to purchase 76% of the pipeline's initial capacity. The others, Royal Dutch Shell, France's Total, Canadian producers, an international oil trading firm, and the Saudi government all intend to ship their share of dirty crude overseas. Oil is a fungible product and in this age it circulates globally. The only way to reduce America's dependence on oil and reduce greenhouse gas emissions is to reduce consumption of all fossil fuels, regardless of the ultimate source. That fact makes any argument that the sacrifice of the boreal forest and risking contamination of the Ogallala Aquifer is necessary for national security a red herring.
Nebraska's Sand Hills: bury me here! |