The head of the US's biggest oil and gas lobbying group said on Wednesday that the Obama administration will face serious political consequences if it rejects a Canada-to-Texas oil sands pipeline that has been opposed by environmental groups.
Jack Gerard, the president of the American Petroleum Institute, said TransCanada's Keystone XL pipeline would definitely play a role in this year's national elections.
"This issue is very simple and straightforward, it's about jobs and national security," Gerard told reporters after giving a speech on the state of US energy.
"Anything less than approval or acquiescence in allowing the pipeline to go forward would be inconsistent with the vast majority of Americans," Gerard said.
The oil and gas industry says the country needs the 1,700-mile Keystone XL pipeline, which would transport 700,000 barrels per day or more of Canadian oil sands crude to US Gulf coast refineries.
But the decision on the pipeline is a difficult one for President Barack Obama. Approval would upset environmentalists – an important part of his voter base – while axing the project would upset some workers' unions, another part of his base.
With environmental groups concerned about carbon emissions from oil sands production, the administration had delayed a decision on a presidential permit for the project until 2013.
The administration says it needs more time to consider alternative routes for the pipeline, which was originally planned to traverse sensitive habitats and a crucial water source in Nebraska. Obama has until February 21 to make his decision on the project.
API is launching an advertising campaign aimed at getting Americans to consider candidates' stances on energy issues, including the Keystone project, before they cast their ballots in November.
While Gerard stressed that the advertising campaign is non-partisan, API has been a vocal critic of the Obama administration's energy policies.
In addition to the Keystone delays, the group has blasted the administration for not opening up more areas to offshore drilling and for its push to eliminate certain tax breaks for the oil and gas industry.
Republicans in Congress have also forcefully objected to the administration's delay of the Keystone pipeline, accusing the White House of placing politics over job creation.
Republicans on the House Energy and Commerce committee have placed a clock on their website counting the days since Obama agreed to make a decision on the project.
"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, said in a statement.
Comments
5 January 2012 11:09AM
Obama has been a disaster for Americans and the world generally.
We can only hope he does lose the next election, otherwise America, and by implication the rest of the free world, face very difficult times.
5 January 2012 11:41AM
How much would it cost for the Canadians to build a refinery and keep as much of their filth in their own country as possible?
5 January 2012 11:56AM
This is a vile example of just how much American politics is rigged against the interests of its own people.
"Republicans in Congress have also forcefully objected to the administration's delay of the Keystone pipeline, accusing the White House of placing politics over job creation."
At least some of those Republicans must know what a disaster tar sand is for the environment. I can forgive a certain amount of cowardice in politicians, but to accuse Obama of 'playing politics' in a life-or-death environmental decision precisely in order to score some cheap points before the election, is foul, rank hypocrisy. Only a deeply evil person could want to enter politics in order to thwart every chance their government has of improving the lives of its citizens. These Republicans are utterly insane.
5 January 2012 12:17PM
Indeed. I am looking forward tremendously to the utterly terrifying fiasco that will be the next Republican adminstration lead by whichever ignorant chump wins their interminable selection process. I could do with a laugh...
5 January 2012 12:25PM
I must have missed some key information during this debate. From where I stand, surely such an important decision, that could have implications of every inhabitant of Earth, is not a no-brainer but a "real brainer" (to quote David Mitchell from Peep Show).
In my opinion, if Barack Obama had rushed into making a decision about the Keystone XL Pipeline, then he would not be performing his duties very well as the leader of the most powerful nation. As a decision-maker he should be allowed to weigh up the pros and cons of such actions without pressure from lobbying groups.
Why is it so wrong to wait for further information about the environmental impacts of extracting and refining the tar sands before he rushes into making a decision??
- It's not like the tar sands are going anywhere any time soon!!
5 January 2012 12:37PM
Surely not! I thought all that money spent by Exxon and the Koch brothers on lobbying was for the public good. How naive I must be thinking that they want to keep the funding of superpacs confidential for democratically sound reasons.
5 January 2012 12:53PM
no surprise at that sort of behaviour, surely. Just big business looking out for its bottom line, and to hell with the environment and future generations.
5 January 2012 1:09PM
This is an absurd, sweeping generalisation.
Others have called on Diane Abbot to resign for a similar offence.
I ask you to do the same.
5 January 2012 1:35PM
At times like this we can see the way forward. The jobs are not in the technologies of the past, not in the extraction and destruction but conservation and ameliorisation of our world.
We can see what we are doing.
We just have to start making the right, difficult, hardwork, newwork decisions.
5 January 2012 1:39PM
The manufacturing jobs have all been outsourced over the past 20 years. They are not coming back. The US housing bubble has not even come close to working itself out as a great many homes are now deeply in arears but not in forecloser because the court system is not able to work through them and to foreclose would cause a loss for the portion that are still owned by the banks. The entire US economy is still kept afloat by a $1.3 trillion deficit spend. US refinaries are now so over capacity that refined oil product is now the US's largest export: things like diesel, petrol and jet fuel. This is because America is so broke Mexicans and Europeans can afford to buy the surplus petrolium by products the US cannot afford.
When interest rates begin to rise again the US will find that all the additional expensive oil from Keystone will not really be needed as cheaper Nigerian and Angolan oil will still be available on the spot market. When the interest rates eventually start going up again the US will find just how deep the housing crash is.
And the rest of the world will find out just how important $1.3 trillion a year was in keeping export demand in their economies ticking along.
5 January 2012 2:01PM
National Security issue is it? What a collection of the most insecure people on the planet, outside of N. Korea.
5 January 2012 2:07PM
The State of Ohio has halted all fracking activity after a series of tremors and a quake in the 4-5 point range a few days ago.
5 January 2012 2:23PM
Ohio has not halted all fracking activity.
Just those within an 8km radius of a particular well.
Furthermore,
Moreover, despite the knee-jerk claims that these companies and industry groups are "evil",... the Ohio Oil and Gas Association is actually supporting the suspension.
See: http://www.google.com/hostednews/afp/article/ALeqM5hTjRPr09gdIUV1Ha_wKHbO44mDig?docId=CNG.3ec81592b40bb5358c1575a97cd5b5ce.1c1
5 January 2012 2:27PM
Very surprised that API would support this on the basis of "national security". From the gulf coast, it is very likely to be exported to a country where it can be refined more cheaply!
5 January 2012 2:40PM
In the Uk we have small scale pilots for fracking and the result:
How fracking caused earthquakes in the UK
The UK is one of the most geologically stable places on Earth. Have fun if you find this stuff in California.
5 January 2012 3:04PM
The oil giants make that call unless a govt takes the time to gain the upper hand. The current Federal govt is hand in hand with the oil industry, who have some underused refineries sitting in Texas.
5 January 2012 3:49PM
"good point!"
And they are devastating earthquakes of magnitude 2.3 too!!
Mining and other such activities also cause similarly very small earthquakes without any meaningful effect. But that is no reason for alarmists not to shrilly protest.
5 January 2012 3:58PM
Obama will sell out Americans on the pipeline, as fast he sold us out on the ADAA.
If you want job, stop outsourcing them. and start building a Green economy.
5 January 2012 4:02PM
Obama appears to have the worst environmental record of any Democrat in history. He certainly did worse on endangered species than even Bush. I am disgusted that he, as an intelligent man, leader and father, has allowed Ken Salazar and the oil industry to rule the day.
Any scientist or environmentalist who understands the issues cannot in good conscience, vote for him. Jill Stein is currently my candidate of choice and I urge people to write to Obama and tell him this, while simultaneously contributing to Stein's funds so she can at least get into the debates.
5 January 2012 4:07PM
Joedal, who will you vote for in 2012, one of the clowns the Republicans are putting forward? Wake up voting in America is a rigged game. As long as you vote for the one party system we have of war and corporations nothing will change. The 1% will continue to start wars and the 99% will fight them,the 1% will continue to buy Congress and the 99% will keep getting screwed by them.
5 January 2012 4:24PM
That is strange, the boss going public to threaten an employee.
A sign of panic or total diss ?
5 January 2012 4:25PM
"Obama appears to have the worst environmental record of any Democrat in history. He certainly did worse on endangered species than even Bush. I am disgusted that he, as an intelligent man, leader and father, has allowed Ken Salazar and the oil industry to rule the day."
It is the system. No president can make a difference now in the US since the corporations rule. If you look at the politics in that light, it makes more sense. Obama being threatened by the oil companies? How could we not see what is right before our eyes?
Even though the republicans control only the House, they dominate US news and Obama all but has to ask permission from them to pass a law. There is a word for it. Fascism.
5 January 2012 4:33PM
I totally agree with you that corporations have a hold on government, the question is, which President will have the guts to stand up to this reign of terror? Heroes in history have risked their lives to make the world a better place. Obama can't even be bothered to say no to life-threatening pollution? Give me a break!
Had Obama shown outrage after the Gulf oil spill, or had given speeches on why Americans should protect the environment, that would have been enough for me. Even if his actions had contradicted his words, at least I would have thought he understood the extreme danger of climate change and wanted to protect Americans. But he did not even bother to do that. He does not care about the environment or our future. He only cares about money and winning the election. Period.
5 January 2012 4:59PM
Actually the Keystone pipeline may have a net environmental benefit
Paula Dittrick, O&G Journal Senior Staff Writer,
"Bakken oil producers turn to railroads, pipelines, O&G Journal 05/12/2011, pages 43 through 46:
On 07/11/2011: BNSF Bakken Oil Express left Dickinson ND for James LA with 70 k bbl Bakken crude oil.
Bakken Oil Express capacity after 2nd phase ~250 kbbl/d. TranCanada's Keystone pipeline to cary 200 kbbl/d Bakken oil. Enbridge Inc to reverse Seaway oil pipeline to bring 400 kbbl/day from Cushing OK to the Gulf Coast. All this oil would displace Gulf Coast imported oil.
So, as long as Keystone is not built, a daily 100 rail car train of crude oil rolls from Oklahoma to Louisiana. Required loading terminal capacity is being expanded in an apparent bet that Keystone will not be built.
And we all pay for it. Hauling oil by rail is probably the 10 USD/barrel price difference between Brent Crude and Cushing OK crude. The worldwide price of gasoline is set by the price of crude oil on the Gulf Coast. The last barrel of oil set the price of all oil. The extra 10 USD/barrel represents ~0.25 USD/gallon or ~10 USD/airline ticket. We all pay for not building Keystone.
5 January 2012 5:32PM
Since George W., you may have to accept presidents who are basically corporate castrati.
5 January 2012 5:49PM
The myth of global warming and what not was made up by the Dumpocraps to destroy are way of life here in the Lone Star State of Texas!!! It is the Rex Tillersons of are great state whose are real national heros creating jobs every whichaways and fighting the secular socialists to boot that want to destroy the sanctitty of marriage and force all us law abiding citizens to ride around on the bus instead of in are own vehicles.
5 January 2012 5:56PM
"The myth of global warming and what not was made up by the Dumpocraps to destroy are way of life here in the Lone Star State of Texas!!! It is the Rex Tillersons of are great state whose are real national heros creating jobs every whichaways and fighting the secular socialists to boot that want to destroy the sanctitty of marriage and force all us law abiding citizens to ride around on the bus instead of in are own vehicles."
Is this a joke, or is this really how you spell in Texas?
5 January 2012 5:59PM
Surely the statements by the president of the API are not out of order?
Is this not how democracy is supposed to work, the citizens consider both sides of a question and come to their own conclusion before voting?
5 January 2012 6:04PM
It is an extraordinarily brazen demonstration of who holds the whip hand. These things are usually managed more quietly to preserve the illusion of democracy.
5 January 2012 6:13PM
I'm not sure whether I should take this seriously or not... Is this a parody of an ignorant Texan or are you the real thing? If you're the real thing then I have to inform you that actually global warming was invented by a Swede by the name of Svante Arrhenius and back then, in the 1890s, oil hadn't even been discovered in Texas and your lone star way of life was quite different to what it is today.
5 January 2012 6:17PM
Well duh, but why ? To force Obama's hand ? To provoke him ? Dare him to kill the pipeline so then repugs can claim that he "killed american jobs" ?
5 January 2012 6:35PM
I think it's a parody, and a very good one, based on LovyRoubidox's comment history.
5 January 2012 6:50PM
Yes, a decision to block the Keystone pipeline from the world's dirtiest fuel source would indeed affect the elections - by increasing Obama's popularity. People are sick of a government run by and for a handful of corporate energy interests - that's the only reason we went to war in Iraq, too.
As far as economics - the jobs would be short-lived, the steel production would be outsourced to India or China, and the refined fuels would be exported out of the U.S. to the highest bidder. Renewable energy development, in contrast, would produce long-term jobs, and avoid dependence on global energy markets (which are constantly being manipulated).
With regard to U.S. fuel prices, here's what's actually going on:
No major U.S. news outlet is reporting on this, probably because they've all been taking huge amounts of fossil fuel advertising dollars. Check the NY Times for Chevron, Exxon and BP ads, for example, as well as the big 5 - CNN, FOX, CBS, ABC, MSNBC - non-stop pro-fossil fuel advertising is the norm. Shareholder ownership in media is dominated by funds with much bigger fossil fuel interests, too. In fact, this is not news, it's propaganda put out by corporate interests.
5 January 2012 6:50PM
All of the above and more. Now he's been painted into a corner with the requirement to make a decision before the election, it's a way applying the pressure. Damned if he does, damned if he doesn't, but I'm guessing he'll cave in as usual. Who else can disgusted Democrats and Independents vote for without letting the country in for something much worse?
5 January 2012 7:09PM
It's true that "the change" was from a moron to a spineless bimbo, but perhaps - since it's his 2nd and last term, he'd take inspiration from his own rhetoric and think of history... ?
Just a (naive) hope...
5 January 2012 8:33PM
Pipelines are the most economical and environment-friendly way to move bulk liquid.
Is there any real doubt as to the accuracy of this statement?
The choice then becomes one of building pipelines or doing without the liquids.
As long as we depend on fossil-fueled vehicles, we have no choice but fuel them.
But the Greens/Leftists hate the Keystone Pipeline.
(No one sees the Greens giving-up their fossil-fuel-burning vehicles. And have you looked at the sales of electric-powered autos lately?)
So, we are left with an indecisive President, who is afraid to make tough decisions.
Which explains his carefully following Bush's war policy and not having his own.
5 January 2012 8:41PM
Where is this boner's indignation about the fact that TransCanada is attempting to steal the land of U.S. Citizens using Eminent Domain so his beloved XL pipeline can cross their land?
Or don't the property rights of U.S. Citizens count for anything to this bozo? Oh, wait, forget I said that. It skipped my mind that this dick is bought and paid for by Unions.
I wish jerk-off, self-serving, lying shysters like this would just die on the spot.
5 January 2012 10:01PM
If Obama gives in to this corporate blackmail then Democracy will be dead and seen to be dead in USA.
5 January 2012 10:55PM
Whether it be "big business" or Congress, trying to get something "they"want passed. They will use whatever tactics they can in order to get what they want. . They try to convince you it's in "your" best interest. . When it of course is not. Not to mention the lies about additional jobs, yada, yada, yada. . the lobbyists line the pockets of the Congressmen (and women) with cash. . and everyone else gets left holding the bill for the mess they all make. .
5 January 2012 10:58PM
The opposition to the Keystone pipeline is nonsensical. Transcanada has an excelent safety record and there is no environmental arugement to opposing the pipeline as it is no different than any of the other pipelines that traverse aquifers. This project will create a lot of jobs in North American and is an important part of developing domestic energy security. Only a fool would hold up this project.
Politically Obama has been trying to jerk around his radical base by postponing this decision until after the election. Everyone knows this pipeline will proceed it is just a matter of when. However If he does not approve this pipeline it will cost him the election.
6 January 2012 1:00AM
What's really bad is petroleum isn't good for the environment.
The whole world needs to get off of needing to burn petroleum.
Right now the economy is at near rock bottom, so trying to
make an expensive change to clean fuel is pretty much out of the question.
Yet, when times are better, will the change ever get started for America?
For the world?
Solar was tried, however, China is undercutting the whole industry. New
solar industry can't survive the solar economic climate and grow enough
to be of any benefit. China is making it so expensive for everyone but themselves.
They'd like to control this form of energy production.
Wind was tried. China is now jumping throughout the whole world
signing mining contracts with the rare earth metals needed for wind
equipment. Then, China is managing "shortages" driving the cost
up---way beyond practical.
China is also making this so expensive for everyone but themselves. They
wish to control this, as well.
China is even grabbing hydro electric power, leasing for 1000's of years
farm lands in middle asia formerly Russia---for the water and water power
these lands possess. Yes, China has been in America trying to do the
same.
It is because of China that global warming will continue due to petroleum.
China won't let the world get beyond this harmful fuel.
If you ask me.....the UN and the WTO and any other worldwide organization
should lock arms----at this time especially since China's economy is
really shaky--- and demand fair trade practices from this ruiner of environment.
I am not in favor of the Keystone. The Keystone will be a little benefit
to the US as the product will be used mainly for export. So why should
American beauty be at risk for something exported ? It makes no sense.
6 January 2012 3:24AM
What a load of paranoia. I have never seen such hysteria in all my life. First of all the oil sands are not 'dirty'. The oil sands are a massive oil swamp. They aren't pretty but they are natural. The extraction is not destroying miles of pristine forest - it's an oil swamp. Secondly, the Keystone XL is not a pipeline from Canada to Texas. Most of that pipeline has been built. The Keystone is just that a "keystone" - an extent of pipeline that will link two other pieces of pipeline. I can only assume that environmentalist think we should freeze in the dark. You won't let us use nuclear, you don't want oil, you don't want gas and you don't want coal. Wind is useless, kills wildlife, and the manufacture of the towers is, shall we say, environmentally unfriendly. Solar is going bankrupt as nobody can afford the feed in tariffs. Big oil is just as invested in alternate technologies as oil so stop with the Koch Brothers nonsense or I'll start highlighting how supposed environmentalists have several homes with more than four rooms, drive a couple of cars, fly around the world to conferences and own carbon trading companies so they can pay themselves for their sins.
6 January 2012 4:00AM
Gerard doesn't speak for me or anyone I know. The people I know will buy smaller cars and put solar and wind to work to meet their energy needs.
6 January 2012 7:27AM
There is something fishy going on in the Great White North? Why don't the Canadians want the jobs and profits that building the pipeline west to B.C.?
6 January 2012 7:30AM
Well said BessMasterton,
I can't belive the idiots, I wonder how many of these greenes have solar on their house and wind generators in their yard. The thing that really gets me is all you wackos think we can just stop using petroleum, all that you ever refere to is driving our cars. I wish for once you would realize that until we develop a man made product that will replace petroleum for everything we use in our life on a daily basis besides driving a car, we need oil. Just take for example a hospital, where would we be without petroleum products. Look around you and what you use in your house and your life everyday.
"MAY ALL YOU ENVIRO WACKOS GO FREEZE IN THE DARK"
6 January 2012 10:08AM
<Just take for example a hospital, where would we be without petroleum products. Look around you and what you use in your house and your life everyday.>
Exactly. Look at all the things we need petrolium for. Look at farming for exmple, all the fertiliser etc. And you think its a good idea to use this finite resource for driving around in cars. Pah, idiots indeed.
Anyone heard of peak oil?
6 January 2012 11:08AM
He will probably reject it citing legal reasons because the deadline is too short (Feb.21)
TransCanada will then re-apply later and the whole process will kick off again.
Keystone Oil Pipeline Deadline Puts Obama In A Pinch
6 January 2012 11:12AM
* TransCanada Whistleblower: Keystone XL Pipeline Not Safe
The oil is more corrosive... and would traverse aquifers.
* Cornell Report Busts Myth of Keystone XL Job Creation
* ‘Job-Killing’ EPA Regulations for Chesapeake Bay Will Create 35 Times as Many Jobs as Keystone XL Pipeline
Are you saying that corporations hold more power than the elctorate?
Here's a photo of Rex Tillerson for you to tug your forelock to.
* Big Oil’s “Vote 4 Energy” PR Blitz Funded by American Families
6 January 2012 11:14AM
The Americans are prepared to pay more for it and have the refineries already.
6 January 2012 11:19AM
The refineries don't pay to operate, which is why the super-refineries in places like the Gulf are simply expanded and upgraded to meet higher demand.