Keystone Pipeline Delay Forces Energy Prices Up

Foxnews.com recently reported that “The head of a major labor union is lambasting President Obama over the latest delay on the Keystone XL pipeline, six years after it was initially proposed.”

So this is supposed to be significant, that “the head of a major labor union” is lambasting Obama? What about tens of millions of us who have been actively supporting this pipeline all along and lambasting Obama’s delay tactics?

No, apparently only when labor leaders protest will Obama feel the political heat and will the media report on the issue. Obama now has put the decision about building Keystone off until after the 2014 elections this November, just as he delayed it previously until after the 2012 president election so as not to take sides but to seek to mollify both sides. This is classic Obama political manipulation and cowardice, like voting “present” 130 times in the Illinois legislature instead of taking yes-or-no stands on issues.

Labor leaders support Democrats 100% (although many union members do not). Yet now they wonder why Obama has not made a decision on Keystone. This should be no surprise because Obama is beholden first and foremost to the wealthy environmental movement and its billionaire supporters, even ahead of unions. And then this new Keystone delay shows Obama putting pure political calculation ahead of the national interest. This is Obama’s template from the start. This is always the template of the Democrat party – political power always comes first. Foxnews.com further reported:

Republicans, as well as red-state Democrats who want the proposed Canada-to-Texas pipeline approved, slammed the administration for the delay. Some Democrats even threatened to find ways around the president to get the pipeline project approved.

Moderate Democrats, as well as labor unions, are pressing the State Department to give the thumbs-up, calling the project a jobs engine and a way to boost energy security. (end of foxnews.com excerpt)

So here is a question: What Democrat could possibly expect Obama to approve this pipeline? Most of the powerful Democrats in the United States today are hard-left socialists and they oppose it. If Democrats want Keystone they should become Republicans, because their own party has abandoned them on Keystone and myriad other issues.

This new delay is one of the reasons that gasoline in the United States now costs as much as $4 a gallon and more. When Obama came to office in January 2009 gasoline was $1.85. But then liberals have claimed over and over that “the president of the United States cannot affect energy prices” and that Obama cannot be responsible for these high fuel prices because crude oil prices are set by the international cartel OPEC, the Organization of Petroleum Exporting Countries.

But the only reason that they say this is because we have never had an anti-petroleum president before. Now Obama’s anti-petroleum and ‘green’ energy policies indeed have significantly pushed up the price of gasoline and heating oil.

How? Because OPEC sets the price of crude oil based on a variety of factors including supply and demand, but also based on its own perception of the world oil market. And today OPEC’s perception is that America will continue to consume large amounts of oil but that Obama’s ‘green’ policies are discouraging the American production of oil, for instance through indecision on Keystone or opposition to it; by thwarting new production on vast tracts of federal lands and offshore; and by blocking the huge ANWR supply in Alaska. This all gives OPEC a psychological rationale to keep prices artificially high.

Meanwhile environmentalists are opposing “fracking” or “hydraulic fracturing” to get oil and natural gas. This process uses water and chemicals pumped into the ground under pressure to fracture the rock and get oil that was not available under traditional drilling techniques. It is producing vast new oil and natural gas supplies that help to keep a lid on prices.

“Fracking” has been practiced for more than 60 years, with more than 1 million “fracking” wells drilled in the US alone. But now environmentalists are on a major crusade to stop fracking. They say that the fracturing of subterranean rock causes earthquakes and that the fracking process threatens water supplies.

Neither has been proven true. In fact “fracking” is the most productive breakthrough in the extraction of carbon energy since the rotary drill bit. One Saudi official lamented recently that “fracking” is going to open up so much global oil and natural gas as to threaten the Saudi oil monopoly and the very existence of OPEC. To which Nikitas3.com says: Good… Frack, baby, frack!

Look at what “fracking” has produced just recently. Through increased “fracking” in just one small part of the northeastern United States in the last 5 years so much natural gas has been produced that prices have tumbled into the basement. This is going to happen worldwide with both oil and natural gas as “fracking” spreads. This is why environmentalists are trying desperately to stop “fracking”. Because “fracking” is blowing the doors off of the alarmist eco-theory that the world is running out of oil.

Friends, the world is not running out of oil or natural gas. In fact it is eco-restrictions that are pushing up the price of oil, not scarcity of supply. Statistics show that the world supply of both oil and natural gas is steadily increasing while “fracking” is just starting to take off.

Environmentalists want to stop “fracking” in order to restrict supply and push up traditional carbon energy prices so that expensive and unreliable ‘green’ energy makes economic sense in comparison. But it never will if we are allowed to use our ingenuity to develop the world’s reliable carbon energy which appear to be virtually unlimited for centuries to come. Most of the world is unexplored or underexplored for carbon energy. For instance the enviros have said for decades that American oil production peaked years ago. Yet America is producing huge new oil supplies with “fracking” even though the environmentalists are doing everything in their power to stop it.

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