The MN-GOP issued a press release noting the rise of oil prices and the potential of the Keystone XL pipeline project.
Some portions :
— In recent weeks, Iran has cut oil exports to British and French companies and threatened to block the Strait of Hormuz,
— The Keystone XL Pipeline would create 20,000 construction and manufacturing jobs immediately, plus an additional 100,000 in indirect jobs along the pipeline.
— While the pipeline would not create immediate relief, it would lead to long-term stability for American families and businesses,
Let’s put those comments into a little perspective.
As readers of the Pioneer Press already knew “Published reports indicate that French and British suppliers already had reduced purchases of Iranian oil and had begun lining up alternative sources, suggesting that the Iranian cutoff could have a largely symbolic effect.”
Symbolic is probably the right assessment as France last year bought only three percent of its oil from Iran.
The sanctions are having an impact … more on Iran than on other countries although that does not mean that speculators will not use any excuse to pump-up prices.
Yes, there may be jobs created … but how many and will those jobs be American jobs ?
The Keystone project plans to use pipe produced in India … these could have been American jobs but the House including all Minnesota Republicans voted against requiring a portion of the steel be sourced from American or Canada producers … this is a lost opportunity.
Third, the press release properly states that it will have no impact on current prices … this is the opinion of noted experts and the Canadian company will not guarantee that the oil will be sold in America … thus it is questionable to imply that American interests will be served.
All these points aside, the intent of the press release is to chide politicians to support the Keystone XL project … yet, last week, the House voted on H R 3408, Protecting Investment in Oil Shale the Next Generation of Environmental, Energy, and Resource Security (PIONEERS) Act. The bill requires the federal government to approve permits for the construction and operation of the Keystone XL pipeline from Canada to the Gulf Coast. The roll call was easily approved with only 21 Republicans voting against the bill … that included Erik Paulsen (R-MN-03).
If the MN-GOP feels that Keystone has so much potential, it needs to ask Mr. Paulsen explain his vote … IMO, the favorable tax treatment potential involving the Keystone project and the lack of assurance that Americans will benefit in jobs or oil supply, tells me that a NO vote was the right vote … there should have been a better bill.