1. “Keystone is for Canadian oil”
U.S. produced oil from the Bakken region will be carried on Keystone XL, a fact many project opponents deliberately ignore. Keystone XL will carry upwards of 100,000 bpd of crude oil from the North Dakota and Montana.
What impact does an additional 100K bbl/d of Bakken crude have on energy security in the Gulf Coast?
Let’s look at the facts:
- 100,000 barrels per day of Bakken crude is nearly 10 per cent of the region’s production
- Equivalent to 36.5 million bbl/year
- Equivalent to the imports into the Gulf Coast from these OPEC nations:
– Angola – 105 bbl/d
– Ecuador – 46K bbl/d
– Libya – 33K (November 2014)
– Nigeria – 18K bbl/d
– 1/5 of daily imports from Saudi Arabia 586K bbl/d
– 1/2 of daily imports from Iraq – 191K bbl/d
– 3/4 of daily imports from – Kuwait – 197K bbl/d
The Washington Post Fact Checker, Glenn Kessler has rated this claim “Four Pinocchios”
2. “Keystone XL bypasses the US”
Keystone XL will serve U.S. refineries with North American oil to be refined and used by Americans.
As confirmed by the State Department in its final environmental impact statement Keystone XL is North American infrastructure supporting North American energy.
Here are the findings from the Keystone XL FSEIS section on exports:
- As crude of foreign origin, Canadian crude is eligible for crude export license as long as it is not comingled with domestic crude. However, such an option appears unlikely to be economically justified for any significant durable trade given transport costs and market conditions.
- Once WCSB crude oil arrives at the Gulf Coast, Gulf Coast refiners have a significant competitive advantage in processing it compared to foreign refiners because the foreign refiners would have to incur additional transportation charges to have the crude oil delivered from the Gulf Coast to their location.
- Gulf Coast refineries have the potential to absorb volumes of WCSB crude that go well beyond those that would be delivered via the proposed Project. On this basis, the likelihood that WCSB crudes will be exported in volume from the Gulf Coast is considered low.
- EnSys modeling shows no export of light or heavy crude oil carried on Keystone XL or any other pipeline into PADD 3 onward to overseas markets, confirming the barriers that PADD 3 heavy crude demand and transport costs would be to such export activity.
- U.S. [refined] product exports are not sensitive to different scenarios of pipeline development.
- The economic viability of exports does increase the demand for crudes in the United States, particularly in PADD 3, the source of most U.S. exports. But this demand does not depend on the proposed Project.
The Washington Post Fact Checker, Glenn Kessler has rated this claim “Four Pinocchios” highlighting the findings from an IHS Energy, concluded that Canadian crude making its way to Gulf Coast will be refined there, and most of the refined products are to be consumed in the United States which is consistent with current trends. It added that “for Gulf refineries, heavy bitumen blends from the oil sands are an attractive substitute for declining offshore heavy crude supply from Latin America.”
3. Keystone XL doesn’t focus on “American infrastructure for American jobs for American producers”
Keystone XL is a North American energy infrastructure project that supports North American jobs and North American energy development.
What many people don’t realize is that only 20 per cent of the world’s oil reserves are accessible for private sector investment; the vast majority of those reserves are located in North America (over half are in Canada).
U.S. companies, large and small as well as U.S. laborers benefit immensely from oil sands development.
- By 2035 nearly half a million U.S. jobs will be supported by the oil sands industry
- For every two jobs created in the oil sands, one job is created in the U.S.
- 2,400 U.S. companies supply goods and services to Canada’s oil sector
- U.S. energy companies control about 30 per cent of Canadian oil production
As the Washington Post Fact Checker has pointed out, “…we have noted before, U.S. companies control about 30 percent of the production in Canada’s oil sands region. Thus, contrary to [the] suggestion, it is not strictly Canadian.
The State Department’s final environmental impact statement states Keystone XL will support over 42,000 jobs. We have been clear that TransCanada will directly employ more than 9000 American men and women directly.
The criticism that jobs related to building major infrastructure projects are of no value to the United States not only devalues the hard work of U.S. trades workers but ignores macro-community building concepts as well. Temporary jobs create permanent things, and those skills have built communities for hundreds of years.