On January 18th, President Barrack Obama decided to reject the application to build the Keystone XL pipeline. The Keystone XL Pipeline is a massive $7 billion project proposed by TransCanada to transport oil from the tar sands in Northern Alberta to refineries in the Southern US.
The project has been plagued by controversies since its inception, and just recently Congress forced the President to make a decision.
President Obama was right to reject the application; a project of that size needs much more study before it is approved.
There are various reasons why it may be negative to the country as a whole, and the reasons for it are rather weak .
The primary concern over the Keystone XL project has been the routing of the pipeline. Originally, the pipeline was to transport oil over a major aquifer, but a leak could have contaminated drinking water for over 2 million people and $20 billion worth of agriculture. The routing has been changed, this time to a seismically active area.
The company applied to use thinner steel and pump at higher pressures to reduce costs; even a minor earthquake could then cause a major environmental catastrophe. Think of the Gulf oil spill, but on land.
Another reason why the Keystone XL pipeline may not be beneficial is it transports oil from the Alberta Tar Sands. Extracting oil from the Tar Sands requires the land to be strip mind – a devastating process that renders the land ugly and unusable for the foreseeable future. Immense amounts of water are necessary to extract the oil, and the water leaves the land contaminated.
The process is very inefficient compared to other oil sources, and also wastes energy.
The Keystone XL pipeline would only allow this process to continue, rather than limiting its harmful impact on the land.
Even with two good reasons not to implement the project, the reasons for it are lackluster at best. One major reason why there are so many proponents for the pipeline is it would create jobs and revenue for the country.
However, it is important to note that TransCanada, as the name implies, is a Canadian-owned and operated company. Any revenue they earn would go to our neighbors to the north and not us.
They would likely contract other Canadian firms to work the project. Sure, some American workers may be hired, but the jobs will be temporary and far from a long-term solution. The vast majority of economic benefits from the project would benefit Canada and not us.
Supporters of the Keystone XL pipeline also argue it would help us achieve energy independence. However, reliance on the Canadians for oil is still energy dependence, and would not improve our domestic oil production. Furthermore, the pipeline would likely reduce energy costs. As a result, Americans would forget about the need for energy independence, and policies would again move to promote oil use.
The Keystone XL Pipeline may end up being a viable and beneficial project. However, with the need for increased environmental reviews and safety mechanisms, and with limited reasons to build the pipeline, one question is whether it is the right solution for now.
President Obama was right to reject the application because further review is needed. It is necessary we examine all possible effects of the project before we enact it and not rush into a hasty decision. By all means, let us engage in infrastructure building that will further our economy, but it is important we are sure it will help us and not hurt us.
