The lower part of the Keystone is under construction right now..
There are other large capacity oil pipeline projects that Obama couldn’t block that are moving forward.
But they need to build / plan more east - west pipeline crude capacity and undercut Brent.
This would be a big help for the east coast economy.
Obama can’t block new east bound pipelines but he could order them to be prioritized, saving time.
It will not reduce price. It will just reduce costs to oil companies. Just like tort reform is supposed to reduce insurance costs. Indiana or Ohio adopted tort reform in the late 80s. Now their insurance rates are higher than non tort reform states. Costs to insurance companies went down rates stayed the same or went up and profits for insurance companies sky rocket. Same here they will sell it as a road to lower pump prices but it will only result in higher oil company profits. Will probably help Oklahoma though trickle down.
Sadly it is still foreign oil but at least it won't be middle east oil ... I am actually OK with axing the pipeline and drilling for our own and getting better use of Natural gas.
A prosperous national economy requires energy prices at reasonable cost.
Now that the huskers are on board, O will approve.
As long as energy prices are determined by a derivatives and speculator industry instead of supply and demand, forecasting the cost benefits of infrastructure at the consumer level is a "pipe dream."
Apparently you don’t remember when OPEC flooded the worlds markets with cheap crude and has also at times slowed it's crude production.
Apparently you don’t know that BIG OIL is really state controlled oil companies that have controlled the vast majority of the world’s oil production for many years and has done so in large part for political reasons.
Many of the traders are just trying to figure out what makes OPEC happy.
Won't the Chicoms just buy the oil from Houston instead?
If we don’t use the crude in our economy the Chinese eventually will.
The Chinese will create a lot more pollution with it than we would.
Obama’s lack of approval fails even on the environmental concerns.
And now that oil will no longer be locked in Cushing, what is going to happen to the price of gas for those of us in the middle of the country?
And to clarify your first statement, are you saying it is our duty as Americans to use so much oil that there won't be any left to sell to Red China?
Once they break a barrier first it was $2 a gallon and now it is $3 a gallon and the public reaction runs its course to the point we are conditioned to accept it, that price will never go down significantly regardless of supply. We are addicted to oil and we can't go without it. So why would I reduce my price to an addict who I know must have my product and I am the only dealer in town. If I find a cheaper product I will sell it to you at the same price. Why in the world would I pass a savings on to you when I don't have to.
It will help the nation’s economy if and when WIT and Brent reach similar price ranges. But it will require an improved crude oil transportation situation mostly via more new large DIA pipelines to the coast where the most refineries and the most demand is located. But here too the GOV regulations are slowing pipeline development.
At a time when the economy crashed gasoline was commonly well under $2.
Before, gasoline had been over $5 on the coast.
Supply and demand does matter a great deal!
Last edited by OU48A; March 25th, 2013 at 02:08 PM.
Crude Oil prices
Gasoline PricesJune 27, 2008 $140.21
July 4, 2008 $145.29
July 11, 2008 $145.08
July 18, 2008 $128.88
July 25, 2008 $123.26
August 1, 2008 $125.10
August 8, 2008 $115.20
August 15, 2008 $113.77
August 22, 2008 $114.59
August 29, 2008 $115.46
September 5, 2008 $106.23
September 12, 2008 $101.18
September 19, 2008 $104.55
September 26, 2008 $106.89
October 3, 2008 $93.88
October 10, 2008 $77.70
October 17, 2008 $71.85
October 24, 2008 $64.15
October 31, 2008 $67.81
November 7, 2008 $61.04
November 14, 2008 $57.04
November 21, 2008 $49.93
November 28, 2008 $54.43
December 5, 2008 $40.81
December 12, 2008 $46.28
December 19, 2008 $42.36
December 26, 2008 $37.71
December 31, 2008 $44.60
January 2, 2009 $46.34
January 9, 2009 $40.83
January 16, 2009 $36.51
January 23, 2009 $46.47
January 30, 2009 $41.68
February 6, 2009 $40.17
February 13, 2009 $37.51
February 20, 2009 $40.03
February 27, 2009 $44.76
March 6, 2009 $45.52
March 13, 2009 $46.25
March 20, 2009 $52.07
March 27, 2009 $52.38
April 3, 2009 $52.51
April 10, 2009 $52.24
April 17, 2009 $50.33
April 24, 2009 $51.55
May 1, 2009 $53.20
May 8, 2009 $58.63
May 15, 2009 $56.34
May 22, 2009 $61.67
May 29, 2009 $66.31
June 5, 2009 $68.44
June 12, 2009 $72.04
June 19, 2009 $69.55
June 26, 2009 $69.16
July 3, 2009 $65.63
July 10, 2009 $59.89
July 17, 2009 $63.56
July 24, 2009 $68.05
July 31, 2009 $69.45
August 7, 2009 $70.93
August 14, 2009 $67.51
August 21, 2009 $73.89
August 28, 2009 $72.74
September 4, 2009 $68.02
September 11, 2009 $69.29
September 18, 2009 $72.04
September 25, 2009 $66.02
October 2, 2009 $69.95
October 9, 2009 $71.77
October 16, 2009 $78.53
October 23, 2009 $80.50
October 30, 2009 $77.00
November 6, 2009 $77.43
November 13, 2009 $76.35
November 20, 2009 $77.47
November 27, 2009 $76.05
December 4, 2009 $75.47
December 11, 2009 $69.87
December 18, 2009 $73.36
December 24, 2009 $78.05
December 31, 2009 $79.36
Don't forget the price of gasoline is also partially determined by the cost to refine the crude oil and the supply they can produce. Hasn't it been something like 20 years since a new significant refinery was built?
That pipeline will change very little except petroleum industries bottom line.
Sell more for less or less for more. Which is the better business model?
When prices are high, demand is high so they are selling more due to higher usage
When prices are low, demand is low so they are selling less at "bargain" prices...
Now OPEC will regulate supply to some extent....they actually try to maximize profit by keeping prices somewhat in check so they can see growth...now that their fields are getting old (for the most part) they are going to concentrate more on price growth instead of production growth....
So once that pipeline is finished we see no change in price since supply matters not.
The goal is energy independence and eliminating OPEC from being an oil importer to the US. Canadian Oil would help in that regard as well as pump revenues into our refineries.
It was proposed in 2005
Construction started in 2008
Expected to be fully operational in 2015
So a decade just for the frigging pipeline...a pipeline that is going to help tap new, large deposits...deposits that will help lower (only so slightly) long term world fuel prices...
Tight oil supplies and its fear have caused previous crude price spikes and economic turmoil….
If nothing else having more oil on the market and not in the hands of OPEC reduces impact of price spikes.
8 of the previous 9 USA economic recessions were first preceded by rising crude oil prices…..
Now wouldn’t it be smarter to reduce the impacts of these price shocks that are sure to come again and again.
Now, lets talk about Obama...solar and wind...we could cover the US in solar panels and wind turbines and our usage of crude won't drop any measurable amount...less of one half of one percent of our electrical generation comes from oil fired plants...and those plants are old and expensive to operate ane will be the first shut down....wind and solar are CO2 related only...
How economically successful have most of the alternatives been in other nations?
Most of the alternatives have a hard time economically running a vehicle and they lack a great deal in scalability.
We see price spikes any time there is unrest in North Africa such as in Libya 2 years ago or in the Middle East.
This volatility isn’t going away….. Increasing the world’s spare capacity would only increase our national security and lower the impact of price spikes...... But Obama hinders this effort in several ways.
barrister, what do you want to happen? What time frame?
Obama's approach is to force green/alternative energy sources on America even when it is not economically viable nor sufficient in capacity/quantity to replace coal/oil/NG through policies like cap and trade.
I have no problem subsidizing R & D for those energy alternatives but it would have been economic suicide for the US had Obama installed cap and trade.
Electrics can be charged using electricity from any electrical source....natural gas an coal (both plentiful) could be brought on line far cheaper than solar and wind....
Wind and solar are high cost CO2 reduction devices....
PSO has Wind Choice...you can buy monthly blocks of wind power...10 or 12 blocks of wind energy will power a home...each block will add about $2 per month to the bill...I buy two blocks a month...
Basically the same reason people don't just go full LED lighting right away...startup cost (even though those costs will be less than the cost of not doing so over time period "X"