Skip to comments.Controversial Oil Pipeline Plan to Be Rerouted After Threat of Delayed U.S. Approval
Posted on 11/14/2011 4:31:24 PM PST by Ron C.Edited on 11/14/2011 4:36:08 PM PST by Admin Moderator. [history]
LINCOLN, Neb. Days after the Obama administration threatened to delay approval of a planned oil pipeline from Canada to the Gulf of Mexico -- angering unions while appeasing environmentalists -- the company seeking to build the pipeline says it's willing to reroute the project to get it back on track.
TransCanada said Monday evening it will move the planned pipeline out of the environmentally sensitive Sandhills area of Nebraska, and is confident the project will still win approval.
Yeah there are a few greentards who lurk at FR.
The reality is that the pipeline will face the exact same opposition no matter what route it takes. The farmers of the plains won’t want it because they want to sell ethanol and the greenies don’t want it because they hate humanity and capitalism.
It will be approved right after they approve more coal fired power plants.
Pray for America
Why couldn't the pipeline just go from Canada to Washington State?
Keystones stagnation, though, is good news for Houston-based Enterprise Product Partners, which has teamed with Canadas Enbridge to build its own Alberta-to-the-Gulf network.
Enbridge already has lines to move oil from Alberta to Chicago avoiding the need for State Department approval and from there to Cushing, Okla.
Enterprises proposed Wrangler line would transport the oil from Cushing to the Houston area.
Wrangler becomes the only game in town if Keystones going to be pushed back a year, said Jeff Dietert, an analyst with Houston-based Simmons & Company International. Producers and shippers are going to be interested in moving crude sooner than that.
For some weird reason, the shippers, the producers of the oil, want it shipped to a customer. The customers are, or were, refineries on the gulf coast.
But, hey, that's ok. PM Harper is discussing oil sales with the Chinese PM as we speak. They will just build an All-Canadian pipeline to Prince Rupert, B.C., and then on to tankers bound for Dalian, China.
All that oil and jobs that would have gone to the US is going to go to China because that's the way the President of the United States wants it. Can anyone make any sense of this?
800,000 barrels a day.
The Sandhills make up a very large portion of Nebraska.
I guess oil can’t be put in a ship at a port and moved somewhere.
Oh wait. that was the awful alaska pipeline...the one the grizzes use for a highway - cause it's warm on their toes - and the momma caribous choose to have their calves under because of the warmth and green ribbons of grass - and the improved survial of their new-borns.
the refineries are in Texas
??? No, they really are hills with a lot of sand.
I've been in the Sandhills a number of times, and it's no more environmentally sensitive than any other place. Yes, it's a wetland (what isn't?), and it has a variety of uninteresting flora and fauna. I also don't think it's a very attractive place, but that's a matter of opinion as I know some people love the area. I think we need to ask the environmentalists where it's OK to drill or lay down a pipeline. I think the answer is that anywhere is fine as long as the capitalist US isn't benefiting.
Why don't we run it to Montana, Wyoming and now Colorado?
Montana and Wyoming have existing refineries, and Colorado just announced a huge oil discovery.
It's a lot closer to Canada than the Gulf.
Obviously, you're not familiar with the area.
The entire western half of Nebraska, north of the Platte, is composed mostly of sandhills.
Not dunes. Sandhills. They're covered with grass and, thus, stabilized.
i grew up in the sandhills of nebraska
and i can tell you emphatically:
The source of the oil is Northern Alberta.
There is not enough refinery capacity in Washington State to absorb the Athabascan oil. There is in Texas.
Moreover, most of the system has already been built. Phases 1 and 2 built from Manitoba to Steele City, NE then branches to the Wood River, IL refinery complex and the pipeline terminal at Cushing, OK. Phase 3 will be from Cushing to Texas. Phase 4 is the environmentally "sensitive" project -- a cut-off directly from Alberta to Steele City, NE.
This cut-off would not only increase capacity, it would also serve the Bakken field with a terminal in Baker, MT.
This project has been in the works for a long time. It's only at the last moment the enviros and the Obama administration have seen fit to blow the whistle.
Sure it can.
And if the Keystone XL isn't built, the Canadians will build a pipeline to the West Coast -- not to Washington State, but to Prince Rupert, BC -- and sell the oil to the Chinese.
Thackney, do you have a comment on that?
1. There isn't enough refinery capacity in Montana, Wyoming and Colorado to handle the quantity (7-800,000 bpd, around 8% of our total consumption). There is in Texas.
2. Even if there were, there is no existing distribution network of refined product pipelines emanating from these areas. There is in Texas. After you refine the crude, you've got to have a way to get the refined product to market. The fuel oil fraction, e.g., will largely end up in the Northeast.
Hmmm, what if several states simply said we are building it, privately and state financed, we are building it?
You can't fault them for that. they are there to pump oil and make a profit, not hurt their shareholders to make a statement.
PS: there is already a Keystone pipeline through Nebraska. It came on line over a year ago. This XL line is an expansion of an existing system.
Hey, whatever happened to the Alaska to CONUS Trans-Canada NG pipeline?
You forgot to look up. My neighbor’s family had a vacation cabin in the Sandhills and the big draw was the night sky. The stars were awesome.
Ogalalla Aquifer http://en.wikipedia.org/wiki/File:Ogallala_Aquifer_map.png
Crude oil trunkline network in US: http://www.pipeline101.com/Overview/crude-pl.html
yeah, right. stars very bright.
but they’re brighter in the rocky mountains, camping out at 10,000 ft.
Rich NIMBYs of both political parties are using their influences to keep it from going through or near their properties. They should give it up. I’m very happy to say that property values will be going down for decades, and there’s nothing that those corrupt people can do about it. We Baby Boomers will be croaking in great numbers for the next 20 years or so.
Many anti-American regulations against productivity in rural areas need to be abolished and buried forever.
Both good places for many more rendering plants, incinerators, salvage yards, and generally, men doing industrial work. The other end of the default process is going to be a pleasure.
A year ago October, my wife and I drove over the Trail Ridge Road in Rocky Mountain National Park just before it closed for the winter. We were at the top at 12,183 ft. around 9 PM. They sky was incredible! But my wife was petrified when I stepped out of the car to watch and listen. It was a bit unnerving when we drove around one bend near the top and a huge bull elk was standing calmly in the middle of the road.
Have you checked the capacity of the refineries in Montana and Wyoming? I did. About 350,000 barrels a day. Now, I don't know for sure, but I bet they are running over 300,000 barrels/day throughput. What do you want to do with the extra 750,000 barrels?
I know, let's build a giant refinery in Montana to soak up the difference. Now you have another 700,000 plus barrels a day of refined product in Montana. GREAT, THERE IS NO MARKET IN MONTANA OR SURROUNDING STATES FOR THIS PRODUCT. There is also no way to transport this product from Montana to the markets where it is in demand.
The refinery capacity to handle this oil is on the gulf coast. The storage facilities for crude oil and refined product are there or in Oklahoma, which is serviced by pipelines. From there is goes to market VIA EXISITNG PIPELINES to the east coast, the south, and the midwest.
Don't you think the shippers and TransCanada already figured this out?
Yes it can, and it will be.
Calm down will ya.
Why wouldn’t you want to hook oil producers Canada, Montana, Wyoming, Colorado, Oklahoma and Texas all together via a pipeline route since they plan on building one anyway?
There’s also a pretty serious east-west rail corridor going through CO, NE, IA etc.
There isn’t enough refineries in CA/WA/OR combined to handle the load - only TX can, and get it back out-of-state to consumers with the best established rail system that exists for that very purpose.
The Keystone XL would simply move raw materials to the processing plants in Texas which would refine it and ship it to market.
Obama made a purely political decision that will cost America thousands of jobs, a secure supply of oil and, as a bonus, send those jobs and that oil to America's avowed enemy, China.
I don't know what else to say. I don't know how else to explain it. I don't understand your post.
Warren Buffett has the President’s ear and his railroad is ready to carry the oil in tank cars. There are currently over 56,000 railroad cars on order. Some will carry frack sand and about 20,000 of them are tank cars for oil.
Here’s the current backlog:
Trinity Industries: 27,885
Greenbriar Cos: 15,400
American Railcar Industries: 7,100
FreightCar America: 6,311
At an average shipping cost of $6 per barrel, Mr. Buffett’s BNSF railroad stands to get about $3 million per day to carry half a million barrels of oil each and every day that this pipeline is delayed.
OK, let me boil it down.
Why not build the pipeline from Canada to TX through oil friendly states instead of just defaulting to China?
It does however raise an interesting point; that is, I assume envirotard issues trump union support. Or maybe pipeliners are the red-headed stepchildren of unions. Of course envirotard faux heartburn can be selectively applied to just about ANY capitalist endeavor. Thereby being an ace in the hole when nothing else can put roadblocks in front of the free market system. A$$HOLES!!!
“...that’s the way the President of the United States wants it. Can anyone make any sense of this?”
Yes, the evil POS POTUS is anti-American...he wants America to go down the tubes...get rid of this evil POS...
I was talking about sending the crude to China.
Excellent...cui bono? The only question worth asking in politics.
Nebraska is not the culprit here. The state already has over 20,000 miles of pipelines. It's the federal government that's the problem.
Moreover, the XL pipeline is Phase 4 of a 4-phase project. The XL line is being built to a junction with two other Keystone pipelines at Steele City, NE. From there, the oil will move to the Wood River, IL refinery complex (across the river from St. Louis) over a line that was completed a year ago. And it will also move south to Cushing, OK -- the major pipeline junction point in the USA -- from whence it can be sent on to the Texas Gulf Coast...or diverted just about anywhere else in the country.
In other words, Keystone doesn't have the option of re-routing the whole thing. They've already built a system to accept the oil -- and to use it, they've got to get to Steele City, NE.
Sandhill and Nebraska.
No, there actually are sandhills in Nebraska, but it is the Ogalalla aqafer that is the argument in this case, but there already are some twentythree tousand miles of pipelines crossing Nebraska, oil and gas, and this one would only add a couple of hundred more, and it would be state of the art with safety eqipment , this is madness, the primeminister of Canada said this pipeline is a no brainer, so he must have been talking about Obama lol
[stars very bright. . .but theyre brighter in the rocky mountains, camping out at 10,000 ft.]
I lived in Colorado, off and on, for seven years. Your imagery makes my heart pant for those awesome vistas.
Exactly, the pipeline isn’t ‘controversial’ because there’s some pristine ecological reason. It’s controversial for purely political/financial reasons. Cui bono?
TransCanada worked on this route for years. All the approvals up to this level have been made. They have purchased most of the land. Pipe is actually in place in warehouses along the route, ready to go. This is truly a "shovel ready" project, except no government money is involved. It would take two years to build the pipeline.
It will now be delayed at least a year, and several years if they have to re-route it. The oil has to flow. It is apparent that it is going to flow west to Asia, not south to the US.
Look at the code word - environmentally sensitive - like somehow it is so fragile that it won’t ever recover. Have liberals ever heard of fire, ice, wind, or storms? How did nature get so far without us to protect it?
Haven’t pipelines been a net, net benefit to wildlife? We’ve become inured to the belief that every act mankind takes is fundamentally harmful to the environment.
If a worm encounters a balled up plastic bag how is that different then a chunk of granite? Nature adapts. Extinction is normal. The earth is very, very old. That’s the fundamental science behind it.
The attempt to preserve the world as it is, now that’s unnatural.