TransCanada has reapplied for a Presidential Permit to construct the Keystone XL pipeline, however not much has changed. Even with the new route, ruptures and leaks could harm the Niobrara River, sage grouse habitat, walleye fisheries and still impact the Ogallala aquifer, the source of drinking water to about 2 million people in eight states and a critical water supply for agriculture. In addition, extracting tar sands oil destroys acres and acres of pristine forest and leaves huge toxic wastelands behind in an area that is habitat for 50 percent of North America's migratory birds.
What Keystone XL is really about is getting the oil to the port refineries on the Gulf Coast and the profits oil companies stand to make by refining their oil and putting their refined product on the international market. Keystone XL is, in essence, an export pipeline.
Canada is United States' biggest oil supplier and when compared to international prices, the crude oil we get from Canada isn't quite as expensive as oil that has access to the world market. The biggest factor holding down the price for Canadian crude is also the most basic — tar sands producers don't yet have a convenient way to ship their product overseas, so the only demand comes from the U.S. and Canada. Demand for oil in the U.S. has been declining, while Canada's oil production is growing. Oil companies want to increase demand for their Canadian products by gaining access to markets in Europe, Asia and South America, driving up the price for Canadian oil.
No Guaranteed Energy Security
Keystone XL would not increase oil supply or improve energy security in the United States. There is no guarantee this oil will remain in the U.S. for sale. TransCanada admitted that one of the main goals of the project is ship the refined oil from the Gulf overseas.
Several pipelines already run from Canada to refineries in the U.S. that service America's Midwestern states. The Department of Energy has concluded that there is already enough excess pipeline capacity to carry all the oil Canada can produce for the foreseeable future.
TransCanada has admitted to reporters and Congress that Keystone XL will raise gas prices in the Midwest, even though politicians claim that it will reduce prices.
Again, it all comes back to exports, and it's revealing to look at what the industry is already doing: Gasoline exports have actually tripled in the last year to 600,000 barrels per day, even though gas has increased by 42 cents a gallon in the same time frame. America is becoming the middle man in the global oil business — drilling and importing lots of crude oil but exporting more and more refined diesel and gasoline products. The U.S. inherits the risk and gets no reward.
Tar sands oil pipelines aren't safe. Keystone 1 has already leaked 14 times since starting operations in June 2010. One of the 14 spills dumped 21,000 gallons of tar sands crude. In summer 2010, another tar sands pipeline in Michigan spilled 800,000 gallons in the Kalamazoo River impacting water supplies for 40 miles downstream.
Wrong Direction on Energy
Building the tar sands pipeline is going backward and will perpetuate the production of one of the dirtiest, most polluting fuels ever. The energy industry and Congress should be promoting clean, low-carbon fuels and energy-saving technologies. The risk to our water, health, wildlife and great open spaces is too high.Lew Carpenter is the National Wildlife Federation's Regional Representative for Nebraska, Wyoming and Nevada.
EDITOR'S NOTE: This is an online-only column and has not been edited.