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View Diary: Obama's decision on northern leg of Keystone XL pipeline could fuel November's mid-term elections (210 comments)

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  •  The southern section of the Keystone pipeline (2+ / 0-)
    Recommended by:
    ModMark, Roadbed Guy

    was to relieve a glut of oil at Cushing. BTW, Presidential approval is not required to build gas/oil pipelines as long as they do not cross an international boundary. What Obama did was fast track the federal permit process for domestic pipelines. He bragged that enough pipe to circle the earth twice was installed throughout the country in his first term. This will most likely double during his second term.

    Obama can go down in history as being the President under who's watch the country began to become self sufficient in energy supplies, reversing a 50 year trend in the opposite direction.

    With Keystone Pipeline Online, Analysts Expect it to Help Bust Oklahoma’s Oil Glut
    January 23, 2014
    “Growing energy production in Oklahoma, Texas, North Dakota, Montana and Canada have created a giant glut in places like Cushing, Oklahoma. And Gulf Coast refiners couldn’t access lower cost domestic production and were forced to pay a premium to ship crude from foreign suppliers.”

    The glut of crude at the Cushing oil hub has hurt the price of Oklahoma oil, known as West Texas Intermediate. The Keystone Gulf section will make a major dent in the bottleneck, says Andy Lipow, president of Lipow Oil Associates, an energy-market consulting firm in Houston,

    “This pipeline in conjunction with the Plains Mississippian pipeline, the Glass Mountain Pipeline, and a number of others, will allow producers in this area to ramp up their drilling and production,” says Lipow, who believes energy companies in Oklahoma have delayed drilling in anticipation of the new pipeline.

    •  And who's hurt by that? (3+ / 0-)
      Recommended by:
      Losty, Claudius Bombarnac, todamo13

      To the best of my ability to figure it out, it is Midwest refiners of bitumen (think the Koch Brothers and their huge PetKoch piles in Detroit & Chicago . . .).

      Right now they're buying the crude a significant discount but are not selling the finished product at a lower price (in fact the states involved, e.g., IL, have some of the country's highest gasoline prices).

      So by allowing the southern leg of KXL, Obama essentially sucked a whole lot of profit out of the Koch Brothers pockets.

      In a way, that ranges from somewheres between quite and very clever.

      And by not allowing the northern leg - is funneling a whole of $$s into his supporter Warren Buffet's pockets.  Again, quite clever!!!

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