- Posted May 3, 2012 by
This iReport is part of an assignment:
iReport Debate: What’s your top issue?
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High Gas Prices & Foreign Oil
The Keystone Pipeline would decrease our dependence on OPEC and increase jobs in the US. In addition, price competition between Canadian shale oil and US domestic oil could result in a lower price for West Texas Intermediate (WTI).
This sounds like a win-win! But, oil and gas lobbyists will be funding both sides during the upcoming election.
Take for example, President Obama’s actions on the Keystone:
• Opposing the North Leg of the Keystone to bring tar sand oil from Canada to Cushing which according to the OIPA would drive the price of West Texas Intermediate crude down.
• Approving the South Leg of the Keystone to let domestic oil companies export at higher prices.
#1. Obama’s actions on the Keystone.
TWO KEY PLAYERS:
• George Kaiser, sole owner of GBK, which owns Kaiser-Francis Oil (in Tulsa) is a campaign donor bundler for President Obama. He was also an advisor on the Solyndra decision.
• Harold Hamm, CEO of Continental Resources (in Enid), is Mitt Romney’s Chief Energy Advisor.
NORTH: Some US Oil & Gas interests are against the North Leg of the Keystone, which would bring oil prices down. The tar sand oil from Canada coming to Cushing would drive the price of West Texas Intermediate crude (WTI) down. .
Romney’s Harold Hamm,(DEPA chairman, CEO of Continental Resources and Romney Energy Advisor) testified the completion of the Keystone pipeline will bring an overabundance of Canadian crude oil to Cushing, where the glut of oil would drive down prices for Oklahoma producers before the Oklahoma Corporation Commission. He shared his message before the OIPA board of directors, the state's attorney general and the Oklahoma Corporation Commission.
For every $1 per barrel that the WTI price is inflated, becomes money in George Kaiser and Harold Hamm’s pockets!!! Each of them, through their companies, sells WTI going through Cushing.
WTI priced at Cushing is selling for $15 LESS per barrel. Feb 14, 2012, Brent was fetching $101.68 per barrel while West Texas Intermediate was down to $86.50. Brent is still riding higher, near $115.
SOUTH: Both the Republican Hamm and the Democrat Kaiser are in favor of the South Leg (Gulf Project) because it would relieve the glut in Cushing. Hamm's & Kaiser's own companies could use more pipelines to Port Arthur & Houston, TX, to move their production to Gulf Coast refineries. Obama has endorsed only the part of the Keystone which benefits the US oil & gas lobby, because it enables them to charge more per barrel.
PRIOR NEWS COVERAGE OF OK CORP COMMISSION, which approves all Oklahoma oil pipelines:
"Earlier this month, the Oklahoma Corporation Commission spoke in support of the pipeline, saying it is pleased with TransCanada Corporation’s decision to move forward in building the southern portion of the Keystone project which runs from Oklahoma to Texas.
“The Commission has long been concerned and held meetings on the problem posed by the fact that the terminal in Cushing, Oklahoma can receive far more oil than it’s capable of shipping out,” said Commission Chair Dana Murphy. “This will help ease that concern.”
TransCanada estimates THE SOUTHERN PROJECT WILL CREATE 4,000 JOBS, according to a press release issued by the Corporation Commission." The South Leg, or Gulf Project, is already underway because it did not require federal approval.
#2 Re-directing the pipelines from Texas to Oklahoma discourages fast access to the National Petroleum Reserves. It is contrary to the country’s best interest if there were an emergency like war in the Middle East.
Here’s the trick!
Because of the glut at Cushing, pipelines are reversing flow FROM Cushing TO the Texas