Canada, China and the Keystone Pipeline

Recent news about the potential contract between the Canadian company who wants to build an oil pipeline through the United States and China is discouraging to say the least. The decision to not authorize the pipeline for whatever reason does impact the price we pay for gas today and into the future. Some may argue that it will not have a positive impact on the price of gas as the supply may not stay within our borders. To this I say the supply which would flow through the pipeline to be completed will find its way to our refineries thereby increasing the supply we have in the United States. As this occurs the increased supply according to supply economics will likely drive the price of gas lower.

Canada is our neighbor to the North and wanting to provide some revenue for their country and increase the supply of oil for our country is a win win situation. Other disturbing news has recently surfaced which points to a situation where the pipeline may be delayed for up to a year to protect the existence of a beetle. I am all for protecting our environment and the creatures which inhabit it but this appears to be another attempt to delay or even prevent the construction of the pipeline. I am not criticizing any efforts to protect such insects as the beetle but I question the timing of this action.

The Keystone pipeline is a project that has been in the works for years and just at the time when it may potentially become a reality the issue of the beetle surfaces. Granted whether it becomes a reality is dependent upon the results of the Presidential election but it raises questions as to the real objective of these individuals and groups bringing this problem to the surface. This pipeline without a doubt have a positive impact on the price we pay for gas in this country though some may say there is no real proof that such an impact will become reality. To this I ask on what basis is this statement being made.

Today jobs are sorely needed in our country and creating jobs not only for the construction of the pipeline but in the refineries the number of which should be expanded. These two elements are just the tip of the iceberg to coin a phrase. The true positive impact of the pipeline may not really be known until it exists but there is no doubt the impact will be a positive one.

The issue of a potential contract between Canada and China requires the issues surrounding the pipeline to be resolved more quickly. The United States does not lose out on increasing the supply of gas thereby lowering the price we pay at the pump. Granted events and decisions still need to be made to provide the supply to China in that a pipeline will need to be constructed through Canada. The Keystone pipeline system already has some elements in existence and only needs to have additional sections completed. Another possibility is whether the supply of oil in Canada can furnish a supply of oil to both China and the United States. The amount of oil reserves being identified may satisfy the needs of both countries.

The need for this pipeline appears not to be the issue. The restrictions against this pipeline becoming a reality must be resolved. In addition this pipeline will provide some needed resources for oil supply but we have our own resources which have been identified but not yet tapped. The technology in place today and the companies who would utilize it need to have the restrictions removed while addressing any environmental concerns. Before restrictions are removed any concerns should be resolved and when a decision is ready to be made there should be no allowance of identifying a new issue at the last minute such as the present issue of the beetle.

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lrc7815 profile image

lrc7815 4 years ago from Central Virginia

I appreciate the details in this hub. I must admit that I have not paid as much attention to this issue as I should have and mostly because I have strong environmental concerns. I also have concerns about the pipeline going through Indian lands which in most places have already experienced problems with contaminated water due to mining. You did a great job of explaining the economics in a way I can understand.


Dennis AuBuchon profile image

Dennis AuBuchon 4 years ago Author

Thanks for stopping by and providing your input. I too have environmental concerns but I believe from what I have heard and read from both sides that they have been addressed. The technology being used has had no problems in other areas of the country and this is why I feel the environmental issues are not associated with this technology. I believe other factors are involved not the technology which would be used to access the reserves.

Thanks again.

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