This is a special report done in conjunction with GBTV. The issue was explored in detail on The Glenn Beck Program Tuesday, April 17.
As the nation’s gas prices skyrocket, critics argue that President Obama’s recent rejection of the $7 billion, “shovel-ready” Keystone XL oil pipeline, followed by his continued vow to “double down” on green energy, is a clear sign the administration plans to do little of substance in terms of American oil exploration. The move has also stirred controversy about the president’s real intentions concerning job creation and reducing pain at the pump for everyday Americans. But could there be a more sinister reason behind denying the pipeline’s requisite permits — namely, to benefit billionaire Obama-supporter Warren Buffett?
The evidence does seem to be mounting.
Background on TransCanada’s Keystone XL oil pipeline
By now, most are likely familiar with the controversy surrounding the Keystone XL oil pipeline intended to transport crude oil from Alberta, Canada all the way to Texas’ Gulf Coast. The administration rejected permits to construct the northern portion of the pipeline, allegedly on the basis of “environmental concerns,” along with a purported lack of time to investigate said issues.
Adding salt to the wound, in March, Obama visited Cushing, Oklahoma, site of the world’s largest oil storage complex, to take credit for “approving” the stretch of pipeline construction that was already underway there. While Obama used the tour to prop up his administrations’ energy policy, TransCanada actually gained approvals to build the southern stretch of its pipeline months prior to Obama’s arrival in Oklahoma, and did so through no help of the president. As Forbes pointed out, pipelines that stay within U.S. borders are not subject to presidential approval like ones running from Canada into the U.S.
Regarding the northern portion, TransCanada filed an initial application to build the 1,179-mile underground pipeline in 2008, passing two State Department reviews and in February 2010, South Dakota Public Utilities Commission (PUC) granted a permit based on a thorough work up of the project.
“There has been a great deal of work and due diligence leading up to this decision,” said South Dakota Public Utilities Commissioner Dustin Johnson in an interview with DownStreamToday. “The record compiled in this case is pretty impressive. In the end, I feel the conditions we have placed upon this project ensure that it will be constructed in a manner that is sensitive to South Dakota and her people.”
Another Public Utilities official said he believed “the process by which this application was considered was open, thorough and fair” and Keystone openly pledged to station full-time personnel in South Dakota to respond to any emergency situations that may have arisen, according to the report.
That was apparently not enough for the White House, however, which sent TransCanada and others back to the drawing board in January 2012, citing environmental concerns.
To bypass obstacles created by special interest groups and the Environmental Protection Agency, a March 2012 amendment was introduced in the Senate that would have eliminated the need for a federal permit, while addressing environmentalists’ worries by placing more autonomy in Nebraska’s hands. After a vote, however, Democrats squashed the measure 56 to 42.
But it appears TransCanada may not be giving up just yet. According to its website, the company plans to re-apply for a Presidential Permit to be processed in an “expedited manner” by making use of ”the exhaustive record compiled over the past three plus years of regulatory review to allow for an in-service date of 2015.”
The statement continues:
TransCanada anticipates approval of the Presidential Permit application – which is required as the pipeline will cross the Canada/U.S. border – in the first quarter of 2013, after which construction will quickly begin. [...] TransCanada continues to believe in the value of Keystone XL due to the overwhelming support the project has received from American and Canadian producers and U.S. refiners who signed 17 to 18 year contracts to ship over hundreds of thousands of barrels of oil per day to meet the needs of American consumers.
Given the obstacles faced to now, TransCanada still may have a long road to hoe.
The job factor
If allowed, Keystone would have brought a reported 830,000 barrels of crude oil per day from Alberta, Canada, to U.S. outposts and refineries on the Gulf Coast. According to TransCanada, the $7 billion project would have also created some 20,000 jobs in the United States.
“These are new, real U.S. jobs,” Russ Girling, TransCanada’s president and chief executive officer, said in a statement back in January.