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View Diary: President sells out Texas, rest of Keystone Pipeline on the way (60 comments)

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  •  Yes, the pipeline is needed (3+ / 0-)

    The southern portion is needed regardless of whether the northern portion is built.  There has been a major botleneck in the flow of oil, such that there have been huge price disparities between West Texas Intermediate and Brent crude.  Currently, WTI is at around $90 per barrell and Brent is at $112 per barrell.  

    That price difference is entirely due to the inability to cheaply move WTI out of Cushing, Oklahoma.   In the long run, pipelines are much more eficient than railroads at moving oil.

    The notrhern part though, is where the largest environmental concerns were.  There was concern especially about risks to the Ogallala aquifer in Nebraska.  That's the part of the pipeline that has been denied for now.  In response, Trans Canada has proposed a new route which avoids the Nebraska Sandhills and presumably poses less risk, but which now needs to be studied.  

    But it's a good bet that eventually a route will be found which will be approved.  In the long run, there's going to be a lot of oil available from Canada, and it doesn't make sense that we wouldn't find ways to access it.

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