By Stephen Leahy
UXBRIDGE, Canada, Sep 2, 2011 (IPS)
With four times as many oil rigs pumping domestic oil today than eight years ago and declining domestic demand, the United States is awash in oil.
The country’s oil industry is primarily interested in who will pay the most on the global marketplace. They call that “energy security” when it suits, but in reality it is “oil company security” through maximising profits, say energy experts like Steve Kretzman of Oil Change International, an NGO that researches the links between oil, gas and coal companies and governments.
The only reason U.S. citizens may be forced to endure a risky, Canadian-owned oil pipeline called Keystone XL is so oil companies with billion-dollar profits can get the dirty oil from Canada’s tar sands down to the Gulf of Mexico to export to Europe, Latin America or Asia, according to a new report by Oil Change International released Wednesday.
“Keystone XL will not lessen U.S. dependence on foreign oil, but rather transport Canadian oil to American refineries for export to overseas markets,” concludes the report, titled “Exporting Energy Security“.
Little of the 700,000 to 800,000 barrels of tar sands oil pumped through the 2,400-kilometre, seven-billion-dollar Keystone XL will end up in U.S. gas tanks because the refineries on the Gulf Coast are all about expanding export markets. One huge refinery operator called Valero has been touting the potential export revenues of tar sands oil to investors, the report found.
Because Keystone XL crosses national borders, President Barack Obama has to issue a permit declaring the pipeline serves the “national interest” in order to be approved.
“The only way Keystone XL could be considered in the national interest is if you equate that with profits for the oil industry,” said Kretzman, who wrote the report. Continue reading