“The environmental movement has turned into an ideological struggle replete with a military style hierarchy of policy makers and fund raisers. They invent what if scenarios and as each is defeated they throw out another to hyperventilate their followers.

Politicians such as Obama defer to this hysteria instead of getting to the facts of the matter. Obama will have to choose between his union base or the enviro-loon idealists. I’m guessing he knows that long term his bread and butter is from moderates and his union base so do not be surprised in the pipeline is approved within the next two months.

Protesting the development of the pipeline because it could result in spills is a ridiculous argument. Failure to develop the pipeline could result in greater catastrophe’s reminiscent of Exxon if we transport the oil by ship or other environmental issues are at play should we ship the oil by rail or truck. Any way you look at it, their are environmental costs and risks. The fact is, the pipeline is the safest and most environmentally friendly means of transportation. Environmentalists should actually be supporting Keystone for the very same environmental reasons they profess to maintain when they protest its development.

Economics needed

Anyone that has any understanding of the economics of producing bitumen also understand that the only way to be viable long term is to take an integrated approach. Meaning that the economics are very poor without upgrading. The spread between light and heavy is very volatile and is dependant on seasonal markets (ie asphalt during summer roasd building) and feedstock requirements for refiners. Refiners prefer heavy when the spread is high and lighter feedstock when the spread is low. The refiners in the US have been preparing for a long time to take heavier feeds. While we in Canada have been sitting on our thumbs. They have distracted us with the phoney CO2 problem, have been critizing us while they prepared to take our so called dirty oil.

There were once 7 upgraders for Alberta in the planning stages but the oil runup and collapse in 2008 put all those projects on hold. Who do you think controlled the prices? If you think these things happen by accident then you are truly naive and deserve your fate. The Americans have tied up Canadian companies by integrating with them by taking investment in our upstream production in exchange for their downstream refing assets. If this was such a bad investment then why is Cenovus, husky et al tied into american refining assets. Its the only way to stay in the game. But it is also puts the control in American hands. Wake up people before its too late.