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    Keystone Now a Climate Battle

    Keystone Now a Climate Battle
    Pipeline Fight in Nebraska Will Test Obama's Climate Resolve

    OMAHA (DTN) -- Nebraska, a state that typically has little sway in presidential politics, will be a proving ground in the battle over the economic benefits of North American oil versus the threat of climate change.

    Environmentalists and many Nebraska farmers and ranchers expressed concern that a pipeline could endanger the Ogallala aquifer, one of the largest freshwater groundwater sources in the country. (DTN/The Progressive Farmer file photo)

    Just a day after President Barack Obama cited the obligation to posterity and the threat of climate change as an issue that can't be ignored, Nebraska Gov. Dave Heineman, a Republican, approved a new route for the TransCanada Keystone XL pipeline that environmentalists argue is as destructive as any decision the Obama administration could make in fighting climate change.

    Environmentalists were thrilled Monday when Obama cited the threat of climate change in his inauguration speech. A failure to respond to climate change "would betray our children and future generations," the president said.

    "Some may still deny the overwhelming judgment of science, but none can avoid the devastating impact of raging fires and crippling drought and more powerful storms," Obama said in his speech Monday. "The path towards sustainable energy sources will be long and sometimes difficult. But America cannot resist this transition, we must lead it. We cannot cede to other nations the technology that will power new jobs and new industries, we must claim its promise. That's how we will maintain our economic vitality and our national treasure -- our forests and waterways, our crop lands and snow-capped peaks. That is how we will preserve our planet, commanded to our care by God."

    The pipeline would have the potential to deliver about 830,000 barrels a day of oil from Canada's tar sands, which has higher greenhouse-gas emissions than conventional crude oil. A study released last week by the Natural Resources Defense Council concluded that tar-sands oil from the Keystone pipeline would increase U.S. carbon emissions by about 27.6 million metric tons annually, which is comparable to adding 6 million cars to the road. Yet, if the pipeline isn't built through the U.S., TransCanada is likely to find an alternative route to export the oil, which would still be used elsewhere regardless of U.S. opposition.

    Heineman approved a new route after the president denied a permit application by TransCanada a year ago due to environmental backlash over the route cutting through sections of Nebraska's Sandhills and Ogallala aquifer, the largest aquifer in North America. TransCanada moved its pipeline route, which has since undergone a new environmental review by state officials.

    Because the route crosses from Canada into the U.S., it must eventually be approved by the U.S. State Department before it can be built. As part of the State Department's mandate in approving such pipelines, the department must determine whether the pipeline, which will stretch from Alberta to Texas, is in the national interest. The State Department is working on its own environmental analysis of the new route, which is expected to be released soon.

    In his letter Tuesday, Heineman said the new pipeline route avoids the Sandhills, but would still cross the Ogallala aquifer. If there were a spill, Heineman stated, the impact on aquifers would be localized and TransCanada would be responsible for clean-up. Further, the pipeline would generate $418 million in economic benefits and another $16.5 million in state use taxes, as well as $11 million to $13 million annually in local property taxes.

    Environmentalists and Keystone opponents argue there is no way the president can declare a commitment to fighting climate change while approving the pipeline, regardless of the route.

    Jane Kleeb, executive director of Bold Nebraska, has spearheaded opposition to the pipeline in the state. She wasn't surprised by Heineman's approval of the route, but the president's comments have boosted morale for those opposing Keystone.

    "We feel good about our chances, and obviously we feel even better given what President Obama said yesterday," Kleeb said. "If you really look at the science of this and the full aspects of climate change with this pipeline, as a president you can't say those words and turn around and approve this pipeline. That's crystal clear. Politically, I don't see how he does it because the green groups would see that as a clear sign of betrayal."

    Speaking last month in Omaha, environmentalist and author Bill McKibben, who heads the group 350.org, called Nebraska "ground zero" in the fight over climate change, specifically because the state is at the center of the battle over the Keystone pipeline.

    Kleeb has built a coalition in Nebraska with farmers, ranchers and people in the communities along the route who aren't concerned so much about the long-term climate effects as they are about possible water contamination if the pipeline were to bust. That remains the biggest fear among Nebraskans.

    Backers of the pipeline point to a study released last week by Creighton University economist Ernie Goss who projected a positive $1.8 billion economic benefit to Nebraska over 17 years if the pipeline were approved and built.

    "I don't think the president's comments in his inauguration address are a prediction on the outcome of the decision that now will be pending with the secretary of state," said Jim Vokal, executive director of the Platte Institute, a business group based in Omaha.

    U.S. Rep. Lee Terry, R-Neb., who has been a backer of the pipeline from early in the process, issued a statement praising the governor. Terry did not make any links to climate impacts of the pipeline.

    "I am pleased Gov. Heineman approved the Keystone XL pipeline based on the report which showed minimal environmental impact while having a substantial economic benefit to Nebraska."

    Opponents are planning another rally in mid-February at the White House to push the agenda on the pipeline, which will include the planned arrests of some Nebraska landowners. Environmental groups also feel they could soon have a better advocate for their position in the State Department if Sen. John Kerry is confirmed as secretary of state. Kerry has led efforts in the Senate to lower greenhouse-gas emissions and mitigate climate change.

    Chris Clayton can be reached at chris.clayton@telventdtn.com

    (AG/SK)

    © Copyright 2013 DTN/The Progressive Farmer. All rights reserved

    http://online.dtn.com/online/common/link.do?symbolicName=/ag/news/template1&product=/ag/news/bestofdtnpf&vendorReference=0353b2fa-34a2-481b-912d-1cb46058ad3a__1358883678528&paneContentId=3030&pan eParentId=0

    #2
    It's pretty obvious whose side the author Chris
    Clayton is on, he refers to the oil sands as the "tar
    sands".
    He also doesn't show how wonderful the
    alternatives of bank rolling friendly dictators in
    places like Sudan, Saudi Arabia, Iran and
    Venezuala are.

    Comment


      #3
      Oliver88,

      I my small mind... I think the DTN report was on
      balance... and I don't get my nose out of joint is
      someone calls the heavy oil 'tar' instead. There is
      nothing wrong with tar... or bitumen... or heavy oil.
      Over a trillion Barrels of reserve... is hard to imagine.

      The US has plenty of its own 'heavy oil' in formations
      that it is hard to extract out of like the bitumen in our
      oil sands. The US is perhaps smart to wait till more
      efficient extraction methods are developed... or
      another energy source is engaged to melt the heavy oil
      out of these complex formations.

      GAO: Recoverable Oil in Colorado, Utah, Wyoming
      'About Equal to Entire World’s Proven Oil Reserves'
      May 11, 2012
      By Terence P. Jeffrey
      Subscribe to RSS
      27 15

      Rock Springs, Wyo. (BLM Photo)

      (CNSNews.com) - The Green River Formation, a largely
      vacant area of mostly federal land that covers the
      territory where Colorado, Utah and Wyoming come
      together, contains about as much recoverable oil as all
      the rest the world’s proven reserves combined, an
      auditor from the Government Accountability Office told
      Congress on Thursday.

      The GAO testimony said that the federal government
      was in “a unique position to influence the development
      of oil shale” because the Green River deposits were
      mostly beneath federal land.

      http://cnsnews.com/news/article/gao-recoverable-
      oil-colorado-utah-wyoming-about-equal-entire-
      world-s-proven-oil

      Comment


        #4
        It is obvious that Canada is paying for the pipe line...
        and the US has plenty of reserves... to fill Keystone...
        without Canadian Oil.

        Obama is simply playing a game of chicken.

        Comment


          #5
          Tom: So why not leave the TARSANDS oil in the ground until we really need it? WE, (and I use that term loosely), have one big pipeline already delivering oil to the mid-west USA. The forces that be just want to DOUBLE what we are already doing.

          They want to refine this new supply and supply gasoline and bunker fuel to the Caribbean area and beyond and make a huge profit from it.

          The tremendous amount of natural gas WASTED to recover that oil from the tarsands is unforgivable in my estimation. We are using one pile of ENERGY to create another form of ENERGY and that does not make sense at all. They talk about the cost of energy to produce alcohol based fuel from plant materials...well this is FAR WORSE as far as efficiency is concerned.

          Comment


            #6
            Wilagrow things our oil companies are owned by the americans and Tom thinks he is paying for the pipeline. Maybe true if you own transcanada pipe shares. Wil is correct we already have a pipeline and we need more capacity.
            http://en.wikipedia.org/wiki/Keystone_Pipeline
            I just think its a shame that we are in fact giving this oil away at some 37 odd dollars per barrel under. But can it or was it ever any better? My biggest fear is our oil companies are grossly undervalued only to be bought up by hostile force of some sort then we get the pipelines and foriegne interests will rake in the profits.

            Comment


              #7
              In all fairness if I am allowed to speak of fairness, if a pipeline is not allowed then shipping on rail in place of pipeline should not be allowed either. But then again Birkshires asshole would not get the daily kiss either. Is Obama just kissing ass?

              Comment


                #8
                Hopper,

                Integrated oil sands co's like Suncor are integrated and
                refine the oil... capturing the $37/b... avoiding the
                extra royalty that would be charged... on that $37/b...
                and pocket the difference. Income tax pulls back some
                of the 'overage'... refiners have a HUGE windfall of
                profit... yet in itself this extra profit encourages more
                value added very clearly.

                As central/western US states horizontal drill and
                increase the supply of conventional light oil... heavy oil
                has a hard time stealing capacity of northern US oil
                producers. Hence the need for more pipe line capacity
                to knock out Middle East oil supplies from US gulf
                coast refineries.

                Having healthy well financed Oil Industry is a positive.
                If you Willy do not like it.... BUY some shares Willy.

                Jumping in and out of the oil market... isn't easy... the
                AB heavy oil companies are profitable... and there is
                clearly trillions of barrels of oil... contrary to the peak
                oil scare mongers... who are simply out of touch with
                the real world! We need to supply eastern Canada with
                oil products... from western Canada... FIRST. This IS
                happening. Cut Middle East oil completely out of
                Canada.

                Cheers!

                Comment


                  #9
                  Oil sands production is expected to reach 5.4 million bbls a day by 2017. 2012 production was 1.6 million bbls a day.
                  We are approaching maximum pipeline capacity now. Last week Enbridge announced they were temporarily reducing capacity for bitumen by 16%, due to increased Bakken crude displacement.
                  The facts are very plain: Alberta oilsands are facing a massive lack of transportation in the near future that could see some projects shut down.
                  The development of the oil sands has not been planned very well. The government kept handing out development permits with no plans in place for product transportation. Now we are racing against time trying to catch up with pipeline capacity.
                  It might not end well.

                  Comment


                    #10
                    Sounds like a bunch of farmers growing bly and loosing $1/ bu so if we grow more and only lose .50/bu we must be making more money right??
                    Reminds me of the indian that said only a white man would cut 1 ft off a blanket and sew it on the other end and think he has a longer blanket.

                    Comment


                      #11
                      Yep Horse.......exactly right! A gong show of immense proportions!

                      Comment


                        #12
                        The US market for Canadian oil is shrinking because of increases in US production and reduced demand. Canada imports 40% of its oil at higher world prices. Why are we not building pipelines to Ontario and Quebec to offset the higher priced imports in central and eastern Canada? That would be much better long term investment and provide a lot more energy security.

                        Comment


                          #13
                          chuckChuck: You ask WHY we are not building pipelines to eastern Canada? Its because that would make too much sense. Our federal government and these pinheads in Alberta are about as clueless as they come. They would rather we be warehouses of raw materials to supply the USA and China and let those countries do the value-adding and then IMPORT products back at a higher cost.

                          Comment

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