Though the Keystone XL pipeline has been a hot-button issue with environmentalists, it seems that it has become an irrelevant discussion. The pipeline was introduced in 2005, and still no decision has been made about its construction. In October, the House approved a bill that would authorize the pipeline; however, a few days later, the bill failed to pass through the Senate. If it had passed, the bill would have gone directly to President Obama, though it’s likely he would have vetoed it.
But all that might change when the new Republican-majority Congress reconvenes in January. In fact, it has become the mission of Republican Senator Mitch McConnell (KY) to have the bill pass. It’s probable that the bill will pass both Congress legislatures, but the bill will need 67 votes in favor in order to quash a presidential veto.
Regardless of the pipeline’s importance, proponents firmly contend that the $8 billion pipeline will allow for a flood of new jobs and bolster North American energy independence; but opponents believe that it will increase fossil fuels and further incite the effects of climate change.
It seems like the oil industry has moved on from Keystone; oil companies are employing other pipelines to carry their oil. Furthermore, the US now has an abundance of oil, which has reduced prices. Bringing more oil in from Canada doesn’t seem like the best plan.
What some suggest — like Harold Hamm, the CEO of Oklahoma’s Continental Resources — is that the US should end its crude oil export ban, which would make the oil market fairer for US oil companies. Congress imposed the ban in the 1970s due to the worry that we were becoming too reliant on foreign oil. Now that US oil prices have dropped, Saudi Arabia is attempting to undercut our prices so that it can recover what it has lost in the market. Further, a lift on the ban could help Ukraine and European countries that are under the thumb of Russian President Vladimir Putin.
Conversely, if the ban is lifted, we could see gas prices soar; lawmakers would become our scapegoat.
Developed and Written by Dr. Subodh Das and Tara Mahadevan
November 29, 2014
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