TransCanada Corp. through the Keystone XL project has been looking to create an oil pipeline in the U.S. that would bring 830,000 barrels of oil a day from Canada into Nebraska and then on to the Gulf Coast refineries, but they have been waiting on President Obama for seven years to approve the project. Recently, the company has asked Obama to hold off on making a decision. Many people speculating that they are waiting to see if a Republican will take office in 2017 and approve the project. Even if Obama does kill the project, a GOP in office will quickly reinstate and approve it. Environmentalists are calling for Obama to finally reject the project, but it seems as though that won't make a difference depending on who gets elected.
Democrats have been against the project because of environmental concerns, specifically global warning. Republicans, however, are focused on the benefits that this project would bring, such as thousands of jobs and allowing us to import oil from our own country rather than from Venezuela and the Middle East. Yesterday, TransCanada's shares were up 1.5%.
http://www.reuters.com/article/2015/11/05/us-transcanada-keystone-state-idUSKCN0ST2VX20151105#QMxK9HArrtwPMhvG.97
6 comments:
It seems that this project will eventually happen. The only issue here is the timing as more seem to be in favor than against.
It does make sense for the project to go through at some point or the other in the near future, however; it is imperative to see when it would be the most feasible.If the company's share keep course on its current trend it would certainly have more leverage in its stance.
I agree with Matt that this project is one that will eventually have to be brought to the table. In response to his second sentence, I feel that due to the unseen consequences of $45 per barrel of oil, in the coming months and years, more will be in favor of the pipeline rather than against it. The consequences of $45 per barrel of oil is that it is causing a downturn in the domestic economy as many enterprises are being pushed out of the market by Middle Eastern enterprises who can push down the price of oil and still maintain a profit margin. I think it will be very interesting to see what occurs after the 2017 Presidential election if a Republican takes office, but I think the more interesting matter at hand is how opinions will be persuaded if the price of oil continues to decline and more and more domestic enterprises will be pushed out of the market.
After no answer after 7 years, it seems unfair to reject the project with no answer. This project, although bringing about environmental concerns, definitely helps more with the jobs it'll bring. To me, the opportunity cost to not do this project is higher than the negative externality of doing to project.
I agree with Joey. The immense benefits that would result from the pipeline going through are incredible. Also, what is the purpose of preserving the environment if there are unemployed people who cannot afford to go out and enjoy the environment that has been preserved? I would argue that focusing on improving the labor market, is more of a concern at the present moment. More job creation means more income going to consumers who then decided to either spend it, save it for the future, or invest it. Some of these consumers could potentially invest in technologies that could fix forthcoming environmental problems.
The Keystone XL pipeline will help the economy, but theres is many environmental concerns. There are ways to curb some of these concerns. The benefits of this pipeline are tremendous. It will reduce shipping costs, increase, jobs, and in turn, spending in the economy. I do think the GOP will reinstate it and we will see what happens in the future.
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