American Elephants


A Bit More on the Alternative Reality by The Elephant's Child

Five days ago I wrote a post on TransCanada Corp.’s two new lawsuits against the Obama Administration’s denial of the Keystone XL Pipeline for the long drawn-out, multi-year rejection of the pipeline. One lawsuit filed in a Houston Federal Court, states that President Obama exceeded his authority in November when he blocked the pipeline’s construction, the other, separately filed, is an international petition under NAFTA seeking to recover $15 billion in costs and damages incurred in its attempt to build the cross-border pipeline.

Today, it seems that the same Obama Administration that rejected the Keystone XL pipeline has no problem at all in supporting a new oil pipeline project in Kenya. U.S. Ambassador Robert Godec told Kenya’s energy minister that the Obama Administration would help Nairobi raise $18 billion to finance its PowerAfrica project. The pipeline, the Wall Street Journal reports, would stretch from Kenya’s Rift Valley to Lamu on the coast. Mr. Godec said that “Kenya needs $18 billion worth of financing, so one of the questions we are discussing is how we can work together with the private sector and governments to raise that sum, to find ways to make certain that this financing becomes available.”

Under the North American Free Trade Agreement, the U.S. is obliged to treat a Canadian company in the same way it would treat an American company. The case may well succeed because of the extraordinary regulatory barriers the U.S. imposed on the investment. It’s clear that President Obama blocked the project on arbitrary political grounds. The resolution of these two cases will be interesting to watch. A oil pipeline would undoubtedly help Kenya, but I’m not sure it should be financed with taxpayer dollars.



The Keystone XL Pipeline Developer Sues the Obama Administration! by The Elephant's Child

Keystonepipeline
TransCanada Corporation has filed two major legal challenges to the Obama Administration. TransCanada is the company that has waited patiently while the Obama Administration played politics with the Keystone XL Pipeline project. The first lawsuit was filed in a Houston federal court stating that President Obama exceeded his authority in November when he blocked the pipeline’s construction.

The company separately filed an international petition under the North American Free Trade Agreement (NAFTA) seeking to recover the $15 billion in costs and damages which it incurred in its attempts to build the cross border pipeline. What a colossal mess the Obama administration made of the U.S. end of that project.

I’m on TransCanada’s side in this one. I’ve been writing about it ever since the first proposal. It has always been a matter of politics. Obama’s green supporters are violently opposed to the pipeline, mostly because they don’t like petroleum and want it to stay in the ground. Their science is that deep. Also Hedge-fund billionaire Tom Steyer promised $100 million to the Democrats if they just continued to oppose global warming. (I don’t know if he gave them the money) The unions desperately want the 13,000 construction jobs promised by the project, and the 118,000 estimated spin-off jobs as well. Obama responds that the jobs are just temporary, but all construction jobs are temporary. Skills learned on one job make you more eligible for the next.

“TransCanada’s legal actions challenge the foundation of the U.S. administration’s decision to deny a presidential border crossing permit for the project,” the Calgary, Canada-based company said in a statement.

“In its decision, the U.S. State Department acknowledged the denial was not based on the merits of the project,” it continued. “Rather, it was a symbolic gesture based on speculation about the perceptions of the international community regarding the administration’s leadership on climate change and the president’s assertion of unprecedented, independent powers.”

Obama has asserted his power to decide the fate of the Alberta-to-Texas pipeline because it would have crossed an international border — an argument TransCanada said is not supported by the law, the Constitution or NAFTA.

The oil was always going to go to market. Obama’s denial meant that it would go by train, much more dangerous than supposed pipeline leaks, for rail is subject to derailment, as has happened too many times. The State Dept. approved it twice, then disapproved it. The route was changed slightly to allay worries from Nebraska, and from Indian tribes.

For the Obama Administration politics rules in all cases.  What is supposed to come first is the welfare of the American people. It’s really that simple.

Canadian and US Crude Oil Pipeline Proposals

 



Obama Is Right, So He Will Not Alter His Views! by The Elephant's Child

pipeline-transcanda-537x402

President Obama said today, during a press conference in Myanmar, that a looming vote in the Republican-led House of Representatives to approve the Keystone XL pipeline would not alter his views on the project. He accused GOP leaders of falsifying the numbers of jobs created by the pipeline.

Understand what this project is: It is providing the ability of Canada to pump their oil, send it through our land, down to the Gulf, where it will be sold everywhere else. It doesn’t have an impact on U.S. gas prices,” the president said, issuing some of his strongest language yet against Keystone.

I have also noted that, as policy matter, my government believes that we should judge this pipeline based on whether or not it accelerates climate change or whether it helps the American people with their energy costs and their gas prices,” he added. “And I have to constantly push back against this idea that somehow the Keystone pipeline is either this massive jobs bill for the United States, or is somehow lowering gas prices.

The president’s “strongest language yet” reveals nothing quite so much as the fact that he has no understanding at all of how an economy works. Look at how he transforms the project from a benefit to both nations into a greedy Canada using us to transport their oil which they will sell all over the world — with no benefit to the U.S. at all. He is apparently speaking to the same stupid voters that Jonathan Gruber says they tricked into approving ObamaCare.

TransCanada spelled out the number of jobs that would be required, 13,000 construction and 7,000 to build the pipeline materials, for a total of 20,000. Then there are spin-off jobs. The workers have to eat, be sheltered, buy gas for their cars. The U.S. has stalled Canada for so long, that the Canadians have made other plans for a pipeline to the West Coast and one to the East Coast, so there may be less oil being sent down to Texas, but I believe that sector is still needed. I’m just confident that the Canadians will no longer trust the U.S. to do what it claims it will.

Senator Mary Landrieu of Louisiana is fighting for her Senate seat in a runoff election, and the Democrats have pulled their money out. She introduced the bill in the Senate in a two-hour plea to the chamber. She is hoping her effort will persuade Louisiana voters to return her to office.

Democrats in the House and Senate are not as protective as they were before the election in which they feel he really let them down. It quickly passed the house 152-161 with 31 Democrats crossing over to vote in favor, and one Republican, Rep. Justin Amash (MI) voting “present.” The Senate will vote on Tuesday. The Wall Street Journal mentioned:

Someone should tell the President that oil markets are global and adding to global supply might well reduce U.S. gas prices, other things being equal. A tutor could add that Keystone XL will also carry U.S. light oil from North Dakota’s Bakken Shale. So even if he thinks that bilateral trade only helps Canada, he’s still wrong about Keystone.

The oil will be transported to the market. The world needs the oil. It is currently being transported by oil train tanker cars. Trains derail, sometimes spectacularly, and sometimes kill people. Pipelines are safer.

sns-rt-us-crude-train-explosion-20131108-001



Ooops! An Unfortunate Interview With the New York Times. by The Elephant's Child

President Obama did a rare interview with the New York Times on Wednesday, and there was this interesting exchange:

NYT: The “Keystone XL pipeline — Republicans talk about that as a big job creator. You’ve said that you would approve it only if you could be assured it would not significantly exacerbate the problem of carbon in the atmosphere. Is there anything that Canada could do or the oil companies could do to offset that as a way of helping you to reach that decision.”

MR. OBAMA: Well, first of all, Michael, Republicans have said that this would be a big jobs generator. There is no evidence that that is true. And my hope would be that any reporter who is looking at the facts would take the time to confirm that the most realistic estimates are this might create maybe 2,000 jobs during the construction of the pipeline — which might take a year or two — and then after that we’re talking about somewhere between 50 and 100 [chuckles] jobs in a (sic) economy of 150 million people.

NYT: Yet there are a number of unions who want you to approve this.

MR. OBAMA: Well, look, they might like to see 2,000 jobs initially. But that is a blip relative to the need.

So what we also know is, is that that oil is going to be piped down to the Gulf to be sold on the world oil markets, so it does not bring down gas prices here in the United States. In fact, it might actually cause some gas prices in the Midwest to go up where currently they can’t ship some of that oil to world markets.

Now, having said that, there is a potential benefit for us integrating further with a reliable ally to the north our energy supplies. But I meant what I said; I’m going to evaluate this based on whether or not this is going to significantly contribute to carbon in our atmosphere. And there is no doubt that Canada at the source in those tar sands could potentially be doing more to mitigate carbon release.

          ———————————————

Keystone XL— In December, 2010, TransCanada Corporation released a detailed job breakdown for the Keystone XL pipeline, and said it will create 13,000 construction employment opportunities, and 7,000 manufacturing jobs in America.

In response to critics who argue that the company’s job creation estimates for the project are too high and will lead to ‘a few hundred’ temporary jobs, the company shot back with a detailed account of employment potential in the United States, right down to the number of oilers, labourers and welders needed for the U.S. $7 billion project.

“These are new, real U.S. jobs. Thirteen thousand American would be put to work constructing our Keystone XL project,” said Russ Girling, TransCanada’s president and chief executive officer in a statement. “Seven thousand more jobs would be created in the U.S. manufacturing sector, making materials needed to build Keystone XL.”

The project would also need millions of dollars of materials such as steel pipes and related services, which would generate indirect jobs and revenues for American suppliers.

Construction of the 1,600 mile pipeline is broken down into 17 U.S. pipeline spreads or segments, with 500 workers per spread — that’s 8,500 jobs.

Keystone XL also needs 30 pump stations worth tens of millions of dollars. Each station requires 100 workers — that’s 3,000 jobs. Add another 600 jobs that would be needed for the six construction camps and tank construction at Cushing, Oklahoma.

The project would need construction, management and inspection oversight — that would create 1,000 jobs, bring the overall Keystone XL total to 13,000 direct on-site jobs.

If I remember correctly Mr. Obama went to Cushing, Oklahoma for a photo-op in front of piles of gleaming steel pipe. He was going to approve the southern portion of the Keystone that stretched from Cushing to Texas or Louisiana, I forget which.  I never read anything further about that, so perhaps it never was started. The president did get his picture taken though.

So, there is some evidence that there’s a little more than somewhere between 50 and 100 jobs (chuckle) in an economy of 150 million people.  (150 million? )

Granted this was a 2010 estimate, but I feel confident that the President of TransCanada published an accurate summary.

Unfortunately, I cannot trust information from the American administration. All is political, at all times.

And there is no such thing as “carbon pollution.” Carbon Dioxide in the atmosphere is a natural fertilizer, Makes plants grow, feeds the hungry people of the world.  If there were no carbon there would be no life. “Carbon pollution” indeed.




%d bloggers like this: