Free Markets, Free People

oil sands


Keystone XL pipeline: Energy security held hostage

One of the arguments you consistently hear from the left is we can’t become “energy independent”, or said another way, we can’t become independent from “foreign oil”.

Well, there’s foreign oil and then there’s “foreign oil”.  While it is true, at least at the moment, that we’re unable to fully develop and use our own national fossil fuel assets to make us independent, there is certainly a way we can pick and choose from whom we buy our oil to lessen the possibility that we’ll become hostage to unfriendly foreign powers.   Friendly neighbors who are close are the solution to our energy security.  But only if we recognize that fact and understand how strategically that lessens our energy vulnerability markedly.

Obviously two close neighbors, Mexico and Canada, fit that profile.  So it seems a no-brainer to exploit those relationships and do all that is possible to make sure it is the US that secures the bulk of what they’re willing to produce and offer on the world market, no?

No, apparently.

It seems there’s an expectation on the part of the left that President Obama and his administration will block the Keystone XL pipeline that would transport oil taken from Canada’s oil sands to the US.  A means of tying up secure oil from a safe, secure and friendly neighbor are in the air because of absurd environmental concerns.   And those protesting the pipeline fully expect Obama to back their demands.

Of course, unsaid, until now at least, is Keystone XL isn’t the only pipeline Canada will build, and it certainly isn’t going to wait on the US to make up its mind:

Considering geography, exporting oil from Canada to a non-American market doesn’t sound easy; Canada’s tar sands are close to the U.S. border, but not much else. So we asked John Baird — Canada’s new foreign minister, who was in Washington recently to speak with Ms. Clinton — which nations would buy oil that America decided not to take. His answer was quick and unequivocal: the Chinese. New pipeline infrastructure will transport oil between the tar sands and Canada’s west coast, from which tankers can ship it across the Pacific Ocean. And, even now, Chinese firms are buying stakes in Canadian tar sands.

Ron Liepert, energy minister of Alberta is crystal clear about which nation is most interested:

He noted China is poised for action, investing $15 billion in the province over the past 18 months. "There is a long-term plan to get oil to the East," he said.

That investment isn’t being made for grins.  It is being made by China to secure their energy future at the cost of ours.

As usual, when it comes to this administration, we dither about our energy future and security, while others act aggressively. Another reason to have them join the growing ranks of the unemployed in 2012.

~McQ

Twitter: @McQandO