Just as Reuters reported that China is snapping up resources assets across the globe — including a recent deal to buy ConocoPhillips’ stake in the huge Syncrude project in Canada’s oil sands for $4.65 billion – the U.S. State Department released a Draft Environmental Impact Statement (DEIS) on the proposed TransCanada Keystone XL pipeline project. The State Department’s report concludes that the delivery of secure, affordable supplies of Canadian energy to American consumers would have minimal impacts on the environment.
While a final decision by the State Department has not been made on the Keystone Pipeline, this is positive news for American consumers, and here’s why.
The project will consist of three new pipelines – one from Morgan, Montana to Steele City, Nebraska; another from Cushing, Oklahoma to Nederland, Texas; and the final one, from Liberty County, Texas to Moore Junction, Texas. The Keystone will initially carry 700,000 barrels of crude per day, eventually increasing to 900,000 barrels — significantly strengthening America’s energy and economic security, as well as creating hundreds of high-paying, family supporting jobs along the way.
Last year, the U.S. imported 1.5 million barrels of oil a day derived from the Canadian oil sands. Projects like the Keystone XL present the potential to increase North American energy access for U.S. consumers to 4.3 million barrels a day over the next two decades – additional energy that we will no longer be forced to buy from far unstable, unfriendly OPEC nations.
Considering the economic and energy security benefits of Canada’s vital resources, state and national policymakers should work to expand America’s access to secure and affordable energy supplies to help ensure improved stabilize prices for consumers.
Unfortunately, under a Low-Carbon Fuel Standard (LCFS), Canada would intentionally be singled out for exclusion. In fact, a nationwide LCFS could shut down the Keystone XL and Alberta Clipper projects altogether – jeopardizing countless high-wage jobs and billions in economic activity. An LCFS would also be a major blow to U.S. energy security.
Despite the State Department’s positive draft decision on the proposed Keystone XL pipeline, CEA’s nearly 260,000 grassroots supporters and 130 affiliates will continue to be active contributors to the ongoing debate about commonsense energy legislation can create jobs and help drive down prices at the pump, and how misguided LCFS proposals threaten our nation’s energy security.
