The proposed XL Pipeline was rejected by President Obama under the pretense that the proposal had not been around long enough for sufficient study.  Study of what?  It’s a pipeline to bring in oil from Canada through a region that already has a lot of pipelines. Haven’t we studied this area before?  Don’t we know what’s in it?  And the pipeline proposal isn’t new., it’s been around since 2008.  This is the same posturing that we have seen a million times over from both parties.  The dance is familiar.

           

The Democrats wanted to pass a payroll tax extension for 2 months, which is laughable on its face.  The Republicans did not have the stomach to call this a sham, and caved on the 2-month deal in exchange for expedited review of the XL Pipeline.  The State Dept announced that the President cannot call for expedited review of anything.  Hmmm.  So do we unwind the payroll tax legislation?  If part of it is illegal, if the part that was used as the quid pro quo isn’t valid, then shouldn’t the other piece be scrapped? Right.

 

Then the President came out and shot down the project.  Perfect.  There’s expedited review for you.

 

What are we left with?  A payroll tax deduction that does not help the economy and a denial of a project that would create jobs and a greater flow of oil from a close ally and neighbor.  Democrats claim they scored victory for the economy and consumer with the payroll tax cut and for the environment with the pipeline denial.  Republicans claim that they demanded passage of the pipeline and were let down.

 

The galling part is that the oil will be tapped anyway.  A pipeline or transportation route of some sort will be mapped out.  Then the oil will most likely be put on big ships and sailed across the planet to China.  Brilliant.

 

Once again the US constituent lost twice.

 

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Comments

Hi - Any views on the Natural gas (shale gas) resources via Fracking technology that basically has doubled the US energy supply. Do you view of this as a potential game changer for the US? ie. Is US to become the middle east of Natural Gas?
Posted by HJLEE01@HOTMAIL.COM | January 25,2012 04:40 AM

That oil ia targeted for China, anyway. And sending sludge across the acquifier is different from oil. Canada does not want it going across its land either. Will we ever decide to pay attention to our environment?
Posted by heatonpark@aol.com | January 30,2012 08:19 PM

For long you have been forecasting that oil prices will crash and were saying that this will be part of the last commodities bubble. Is that still your view?
Posted by a_timkin@mail.ru | February 03,2012 11:35 PM

For long you have been forecasting that oil prices will crash and were saying that this will be part of the last commodities bubble. Is that still your view?
Posted by a_timkin@mail.ru | February 03,2012 11:35 PM

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