Newly elected Joe Biden has decided to stop building the Keystone XL pipeline, thus satisfying the environmentalists that want to wean us off our dependency on carbon based products, such as fuel, food and fertilizer. The arguments for denying the decision are nearly exclusively political, while the arguments to build the pipeline are concerns for our national security, economy and the environment.
Here is the deal:
Canada has the tar-sands and is extracting the oil. This was not our decision. If we don’t buy the oil, China will.
We export refined products to the Caribbean islands, which by the way have a larger carbon footprint per person than the U.S. This is good business, since the islands are too small to have a refinery of their own.
It takes more energy to run a refinery up north in a cold climate than in hot, humid Baytown, Texas.
The last time a major oil refinery was built in the U.S was 1976. A small refinery was built in 1993, in Valdez, Alaska. The US. regulatory climate is hostile to refineries. Warren Buffett bought Burlington Northern Santa Fe railroad in February 2010 and paid 44 Billion dollars for it. The railroad paid Berkshire Hathaway 2.25 Billion in dividends during the first 13 months. Warren Buffet bought the railroad after President Obama took office, since he nixed the pipeline the first time.
Right now the crude oil is transported from the Athabasca tar sands to Houston mostly by Warren Buffet’s Burlington Northern Santa Fe LLC railroad. It is among U.S. and Canadian railroads that did stand to benefit from the decision to reject TransCanada Corp. (TRP)’s Keystone XL oil pipeline permit.
With modest expansion, railroads can handle all new oil produced in western Canada through 2030, according to an analysis of the Keystone proposal by the U.S. State Department.
The cost of transporting the oil is about #14 dollars per barrel, much of it the cost of burning diesel fuel, generating CO2. The pipe-line can do the job for about seven dollars per barrel, much of it capital costs, some of it already spent.
We can see what happens when transporting crude oil: https://lenbilen.com/2013/07/07/ttain-derailment-in-quebec-and-keystone-xl-pipeline-a-limerick/
Warren Buffet is a major Democratic political player; he will again have frequent access to the White House. Last year the Warren Buffet organizations donated 58 million dollars to the Biden presidential campaign.
Sarah Palin once succinctly coined the phrase: “This is Crony Capitalism.”
By not importing oil from Canada the total carbon footprint will increase. We lose, and Canada loses. (I am not concerned that the CO2 is increasing, but that a valuable natural resource is unnecessary depleted.) Now it turns out that Canada has left the Kyoto Protocol but has joined the Paris accord, so they have to export the crude oil to countries that still can expand their fossil fuel burning, such as China, but they would rather export to the U.S.
So why is Joe Biden against the Keystone XL pipeline? Here are seven possibilities:
1. Like Obama, Joe Biden is a true believer that ”this was the moment when the rise of the oceans began to slow and our planet began to heal”.
2. Joe wants to deliberately wreck our economy to create a more fair society of shared sacrifices, refuses to have an energy policy that will create jobs, but will support protest movements and foment unrest.
3. Joe is acting on orders from Global Governance people that do want U.S. to be totally dependent on international law and U.N. mandates.
4. Joe wants to show leadership in implementing the Paris Climate Conference 2015, and its associated treaty.
5. Joe Biden wants to show leadership on something, like touting the “breakthrough” agreement with China, where China is allowed to emit six times as much CO2 as the U.S. by the year 2030.
6. The real reason? Like Obama, Joe is fully bought and paid for, this time by China. The old reason: https://lenbilen.com/2014/02/14/the-real-reason-obama-wont-approve-the-keystone-xl-pipeline/
7. Joe is half insane and surrounded by bad advisors.
This is the best I can do to explain the reasons for this decision.