Tuesday, March 20, 2012

More than one way to Bypass a Reluctant President!

Trains roll from Canada to Gulf to fill void left by

A Canadian railroad carrying millions of barrels of oil to Gulf refineries is hurtling full steam ahead through the Obama administration's block of the Keystone Pipeline.
The amount of oil Canadian Pacific Railways carries down through the heartland has surged 2,500 percent since 2009, to 8.5 million barrels per year from just 325,000. The company expects to move 45 million barrels per year within the decade.

“We are responding to a growing demand,” Ed Greenberg, a spokesman for Canadian Pacific told FoxNews.com. “There has been unprecedented growth in the energy industry.”
The Calgary-based railroad is one of two that carries oil down from Canada's tar sands, but Canadian Pacific also carries thousands of barrels per day to the Gulf from North Dakota's booming Bakken Formation oil fields.
Experts estimate shipping by rail instead of pipeline adds anywhere from $5 to $10 to the price of a barrel, not to mention the high-capacity, 24-7 flow a pipeline affords. Rep. Fred Upton, (R-Mich.), chairman of the House Energy and Commerce Committee, says the explosive growth of oil delivery by rail underscores the missed opportunity of the Keystone XL Pipeline, a Canada-to-Texas oil pipeline that became bogged down by environmental concerns and was ultimately tabled by the Obama administration and the Democrat-controlled Senate.

"We need to be doing all we can to develop our resources, particularly now, with rising gasoline prices and the threat of supply disruptions overseas," Upton told FoxNews.com. "Most observers acknowledge that rail transport is the best option we currently have to get this oil down to the refineries -- but the Keystone XL pipeline presents us with a better alternative."

Supporters of the pipeline, which the Obama administration plans to consider again after the 2012 election, say it would not only lower the price of a barrel of oil, but that it would also provide jobs. TransCanada, the company seeking to build the pipeline, has estimated it would generate 130,000 jobs, a number endorsed by Republican supporters of the pipeline. But Democrats cite a study by Cornell University that places the number at just 5,000 jobs.

With the pipeline in limbo, trains are the next-best way to move the oil south to the thirsty refineries on the Texas and Louisiana coasts, Michael Ervin, a petroleum industry analyst based in Calgary, Alberta, Canada, told FoxNews.com.

1 comment:

Randall Lee Yow said...

That oil is being put on the world market. It is currently going to Europe to make up for the shortfall of embargoed Iranian oil and the oil that has stopped coming out of South Sudan. That is your free trade free market for you.

Of course the reason Gasoline has risen so sharply is the fact that the oil companies have been shutting down so many refineries to choke the flow and thus increase the price of Gasoline.

The Canadian pipeline that already runs to Oklahoma is going to be lengthened to support the ability to sell to more foreign markets.

I personal like Obama's all of the above energy policy.

Of course please do not take my word for it. The Fox story quotes Michael Ervin (Kent Group) so here is a clip from about ten months ago where he explains that it is not the oil, but the refineries that are driving up the price of Gasoline in Canada and the USA.

-Randall Lee Yow

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