WorldWide Drilling Resource

No Keystone Pipeline Compiled by Bonnie Love, Editor, WorldWide Drilling Resource ® On November 6, 2015, President Obama officially rejected the Keystone XL Pipeline proposal stating it “would not serve the national interest of the United States.” He also said the pipeline would not make a meaningful long-term contribution to the economy, and would not lower gas prices for American consumers. Supporters of the pipeline are disappointed and fear the decision may strain relations with Canada. American Petroleum Institute President and CEO Jack Gerard called the rejection a clear example of politics coming before the interests of American workers and consumers. “It’s ironic that the administration would strike a deal to allow Iranian crude onto the global market while refusing to give our closest ally, Canada, access to U.S. refineries," said Gerard. "This decision will cost thousands of jobs and is an assault to American workers. It's politics at its worst. Unfortunately for the majority of Americans who have said they want the jobs and economic benefits Keystone XL represents, the White House has placed political calculations above sound science. Seven years of review have determined the project is safe and envi- ronmentally sound, yet the administration has turned its back on Canada with this decision, and on U.S. energy security as well," he stated. The U.S. State Department’s Environmental Impact Statement (EIS) for the project revealed the pipeline is the safest and most environmen- tally secure way to transport oil from Canada. Canadian oil will continue to travel to American refineries, but will likely be transported by rail, which according to the EIS will produce 42% more greenhouse gas emissions when compared to transporting the same oil through the Keystone Pipeline. James Taylor, vice president, external relations for the Heartland Institute said, “The only asserted reason for this face slap to our Canadian neighbors is the Keystone XL pipeline will carry oil. There are no environmental, economic, or diplomatic reasons to block construction of the pipeline.” So, what’s next? Don’t plan on TransCanada, owner of the proposed pipeline, to just roll over and call it quits. The company re- mains committed to building the Keystone Pipeline. At this point, they have a couple of options including suing the U.S. government under the North American Free Trade Agreement to recover some of the $2.8 billion the company has spent trying to get the project started. Another option would be for the company to simply wait until after the U.S. presidential elections to see if the project will have a better chance with a new president. For now, the company will analyze the rea- sons for the denial and review all of their options. Should the pipeline ever receive the presidential permit, it would take approx- imately 2 years to bring the pipeline into service, transporting up to 830,000 barrels of oil per day to the Gulf Coast and Midwest refineries. Editor’s Note: In between our print issues, the WWDR Team prepares an electronic newslet- ter called E-News Flash . Based on readership, this was the most popular E-News Flash article of the month. Get in on the action and sub- scribe today at: www.worldwidedrillingresource.com 16 JANUARY 2016 WorldWide Drilling Resource ® DEADLINES: Space Reservation - J ANuARy 25 TH Display & Classified Ad Copy - F EBRuARy 1 ST Don’t miss your chance to be in WWDR ’s March issue! Call (850) 547-0102