Guest AuthorSadly, Sept. 19 marked five years since TransCanada applied for permission from the U.S. government to build the Keystone XL pipeline, a privately funded project that would give American consumers a direct link to Canadian oil sands, the third largest oil reserves in the world.
However, the Obama Administration, bowing to political pressure from anti-energy activists, has sidestepped making a decision on Keystone XL, denying Florida drivers, families, and businesses this potentially game-changing support for our energy supply.
What has this indecision meant to the U.S. and, in particular, to Floridians?
Let’s look at the potential economic impact of the pipeline. Approval will create thousands of construction jobs, putting $2 billion in workers’ pockets. Construction will require $3.3 billion in direct and Keystone XL will generate $65 million in short-term revenues for government from sales and use taxes.
Florida companies are poised to compete in supplying construction materials to build the pipeline. The indecision on the pipeline has deprived us of economic stimulus that does not originate from government. Comments from the White House lamely questioned the number of jobs the project would create. But my industry and labor unions across the nation say these jobs are real opportunities for much-need work.
Let’s look at the enhanced energy security the pipeline promises. Approval will potentially bring an extra 830,000 barrels of oil per day from Canada, which is equal to about half of what is now imported from the Persian Gulf. The Canada oil will go to Gulf coast refineries – the same refineries that produce the gasoline, diesel, and jet fuel sold in Florida. With the pipeline, our crude imports from Canada could reach 4 million barrels a day by 2020, twice what we now import from the Persian Gulf.
The chaos growing in the Middle East has already caused international oil prices to rise because future oil production and shipping has become unpredictable. Closer to home, a hurricane in the Gulf could also disrupt oil shipping lanes and shut down oil production in the Gulf.
The pipeline can mitigate these threats by adding flexibility to our oil supplies from a reliable neighbor. Indubitably, the indecision on the pipeline is not moving our country and state toward energy security.
Let’s look at the environmental impact. In those five years of indecision, the State Department has conducted four separate assessments.
Every single one has confirmed that Keystone XL is environmentally safe while being a boon for growth and energy security. In fact, the plans include 57 additional safety measures, ensuring the Keystone XL will “have a degree of safety over any other” pipeline, according to the State Department.
So instead of shipping more oil across the safest pipeline ever designed, we will continue to transport oil on ships through the Florida Straits and across the Gulf of Mexico to the Gulf coast refineries.
Let’s look at who supports Keystone XL: Labor unions, business leaders, congressional members from both parties, and more than 80 percent of Americans. It looks like a popular decision to get behind this project.
The Department of State review of the Keystone XL pipeline has gone on for five years with several environmental reviews revealing no significant risks. For jobs, for strengthening our relationship with Canada, and for U.S. and Florida energy security, we need President Obama to expedite a favorable ruling on construction of the pipeline.
Let the President hear your voice clearly on this issue. This is a no brainer. Let’s get this thing started.
