How Obama and half-price oil is sabotaging the Canada/U.S. relationship

Posted January 9, 2015

President Barack Obama says he will veto any congressional attempt to pass legislation approving the controversial Keystone XL pipeline. The TransCanada Corporation project plans on shipping more than 500,000 barrels of bitumen per day to refineries on the Gulf coast of south Texas.

The recent decision by the Nebraska Supreme Court ruled the project legal access to cross the state, the last outside legal hurdle for the project. It failed to sway the president who reaffirmed his decision to veto any Keystone XL approval legislation from Congress.

The last hurdle is completion of the Obama administration’s 90-day National Interest Determination.

The Republican-dominated House of Representatives has already passed approval of Keystone XL 266-153. It now goes to the Senate, also with a Republican Party majority. But to prevent the president from vetoing the approval will require 67 votes out of 100. Right now, there are not enough Democrat Senators to support the bill and prevent the presidential veto.

And to think that approval of this project has been going on for more than four years. It has been studied exhaustively but a minority of environmentalists pursue its agenda to stop the pipeline.

Let’s review some facts.

The well-financed and organized U.S. environmentalists are not basing their objections on the Keystone project but on the development of the Canadian oil sands that they claim is a global warming environmental disaster.

This is a misplaced effort to control the legitimate development of commodities in a sovereign country. If the pipeline fails, it will spur development of the Canada East pipeline to carry Oil Sands crude to Montreal and New Brunswick refineries. Work is now underway to build pipelines to British Columbia ports.

Within eight years, Canada will have the ability to sell its oil worldwide from ports on its east and west coasts. We will have the potential of being the world leader in petroleum exports.

Why do the U.S. environmentalists believe they can shut down the Oil Sands and other sources of oil in Canada?

Why does the President of the United States want to deliberately destroy a relationship with Canada, the only country in the world that has steadfastly been a supportive good neighbour and major trading partner? No other president has threatened our relationship since President Madison who tried to invade Canada in 1812. We now know how that turned out.

Why then does the U.S allow Venezuelan heavy bitumen, with a density far heavier than that to be shipped from Canada to its Gulf refineries?

Why does the U.S. allow crude from such despotic regimes as Saudi Arabia, Iran, Venezuela and Nigeria to enter its ports?

Why is America exporting domestic oil but denies Canada that right?

Now facing oil at less that half the price of just three months ago, why does the president insist of destroying those American companies who have invested in fracking for oil in the Southwest? Their production costs lie between $85 and $90 a barrel so oil trading currently at $48 virtually puts those U.S companies on a path to bankruptcy.

Do those environmentalists really believe they can stop the production of oil around the world? Oil is a base product for fuel in homes, factories, trucks and buses, railways, aircraft, plastics and baby bottles to name some of the uses of this commodity.

You cannot blame global warming exclusively on the use of oil and natural gas. Every time there is a volcanic eruption among the 272 active volcanoes in the world there is a spewing of millions of tonnes of carbon dioxide. A recent example was the eruption of the volcano in Iceland that was so intense and widespread that it halted air traffic over most of Europe for days.

Canada has no volcanoes.

P.S. While we’re at it, why doesn’t President Obama cough up the money for the U.S. customs plaza on his end of the new bridge across the Detroit River? He should be reminded that Canada is financing this much needed crossing, including Michigan’s share. It is the busiest border crossing in North America.

P.S. While we’re at it, why doesn’t President Obama cough up the money for the U.S. customs plaza on his end of the new bridge across the Detroit River? He should be reminded that Canada is financing this much needed crossing, including Michigan’s share. It is the busiest border crossing in North America.


Filed under Between the Lines

3 responses to “How Obama and half-price oil is sabotaging the Canada/U.S. relationship

  1. Shane

    Hi Gerry

    I always find your articles very informative . But that being said this artical I think maybe a little naive I am not saying this to be rude I have always been a supporter of you and what stand for . We as human beings have destroyed the land in so many ways, so if a volcano erupts it is natural thing for the planet . What we are doing is beyond natural and anyone who would think that what we are doing to this planet is no worse then volcanos is just crazy Gerry .. As humans I definatly think that we can do much better to protect ecosystems and prevent native communities from suffering for our lack common sense and ability to find and use other natural resources in a more affordable way . Us not being able to use electricity as out may source of transportation etc. is completely ridiculous

    • Shane

      Sorry I should have proof read I did not say this to be rude

    • Shane: You were not being rude. I appreciate different points of view. Believe me, I’m not always right. I try to keep up with news and developments because I do not have a research staff. However I still believe that the use of petroleum will grow not diminish as society changes. I predict that the development of sustainable power and management of carbon emissions will make a big different in the atmosphere in the next 50 years. But because we are a highly mobile society living in a huge continent, we still have to rely on oil and gas to move and live. Change is already happening but it will be a slow process.

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