Joe Oliver vs. State Department, TransCanada, and Fact
In his statement in DC today, Canada’s Minister of Natural Resources Joe Oliver gave remarks about Keystone XL and its impact on U.S. energy security.
Unfortunately, his claims about the pipeline don’t hold up. Not only does the State Department’s analysis show that oil products from the tar sands pipeline would be exported overseas, but TransCanada—the company who would own the pipeline—refuses to make the same promises about keeping the oil in the U.S.
Joe Oliver— “Some have suggested that Keystone XL will be an export pipeline used to deliver heavy oil to foreign countries. But that is simply not the case.”
“The existing Keystone pipeline delivers oil to American consumers, and the Keystone XL pipeline will deliver oil the U.S. needs for domestic consumption, oil coming from a supplier the U.S. knows it can count on.”
State Department— “Export volumes have increased to over 3 mmbpd in the first half of 2012. This increased volume of refined products is being exported by refiners as they respond to lower domestic gasoline demand and continued higher demand and prices in overseasmarkets (Figure 1.4.4-7). Most of these exports are from PADD 3. However, almost half of PADD 3 refined products go to the domestic market.”
TransCanada—When pressed by Congressman Ed Markey (D-MA) before the House Energy and Commerce Committee to guarantee that the Keystone pipeline would not be for foreign export, TransCanada’s Alex Pourbaix said, “In many ways, I can’t do that because I am merely the shipper of this oil.”
When asked to make it a condition of their shipping agreements with oil refineries, Pourbaix replied, “No, I can’t do that. We’ve already agreed to our shipping arrangements.”
Oil Change International— Keystone XL refineries already exporting 60 percent of their gasoline.
“New data reveals that a full 60 percent of gasoline produced in 2012 at Texas Gulf Coast refineries was exported. These are the refineries that would process the majority of the tar sands bitumen flowing through the Keystone XL pipeline, if it were built.”