Your latest Keystone XL conspiracy theory, from…

posted at 6:30 pm on February 25, 2012 by Jazz Shaw

Everyone loves a good conspiracy theory from time to time. Lately I’ve really been enjoying Finding Bigfoot and Ancient Aliens. But such rumors and breathtaking legends aren’t restricted to the realm of mythical creatures or little green men. Still, I was taken aback recently when a Twitter follower unleashed a new one on me, involving my “wrong headed” support of the Keystone XL pipeline. There were the usual dire warnings about how it would kill off the white crested ground squirrel or something, combined with how it was the “dirtiest oil in the world.” (Hint: it’s all fairly dirty until you refine it.)

But the new twist was when I was informed in no uncertain terms that all of the “risk” associated with constructing the pipeline was for naught, because the sneaky Canadians weren’t going to let us have any of the oil once it arrived at the Gulf of Mexico refineries. They were simply going to export it all and leave us holding the bag. (This “theory” is spreading. You can read one example here.)

That was simply too tempting to ignore and I just had to dig into it. Where could such an outlandish idea come from? PETA? ELF? Daily KOS? Much to my surprise, it actually originated from the hallowed halls of Congress. Enter Congressman Edward J. Markey (D-Mass.)

“And in a particularly egregious play on American patriotism and American fears, we have also been told that the oil coming through this pipeline would enable us to reduce our dependence on oil imported from unfriendly Middle Eastern or Latin American nations.

“Last month, Canadian Prime Minister Stephen Harper even said that, ‘When you look at the Iranians threatening to block the Strait of Hormuz, I think that just illustrates how critical it is that supply for the United States be North American.’

“This appears to be a complete fiction, because under this bill, there is no guarantee that even a drop of the tar-sands oil and fuels will stay in this country.

“This is because many of the refineries where the Keystone crude will be sent plan to re-export the refined fuels.

It’s difficult to even know where to begin. But I now understood why my Twitter informant was spreading the word that Prime Minister Harper had “even admitted” we wouldn’t get the oil. Of course, the first thing to remember is that once the fuel is up out of the ground, contracted for sale and into the pipeline, Harper really has no say as to what happens to it after that. The list of additional things wrong with this incredible theory are too lengthy to list.

But to save you some time, Marlo Lewis at MasterResource has already assembled a full fisking of this fantasy, which I encourage you to read in its entirety. A small sampling:

Markey claims that without an export ban, Keystone crude will bypass rather than supply the domestic U.S. motor fuels market. That is implausible. Of the 1.2 billion barrels of finished petroleum products refined in the Gulf Coast region (PADD III) from January through October 2011, approximately half was sold in domestic markets. New supplies of Canadian oil will undoubtedly increase exports, but much of it will be used to offset declining PADD III imports of Mexican and Venezuelan crude.

Keystone XL opponents note that PADD III exports of finished petroleum products have increased rapidly in recent years. No dispute there. According to the U.S. Energy Information Administration (EIA), total U.S. exports of finished petroleum products “increased more than 60% since 2007 as markets have become more globally integrated,” and most of those exports came from PADD III.

But to view this as a market failure is deeply weird. Can you think of another U.S. industry that is castigated for becoming more competitive in the global marketplace?

As the author also notes, Congressman Markey attempted a deeply deceptive maneuver in pushing an amendment (a failed one) which would have made Keystone XL approval contingent on a restriction barring exports from the US of any Canadian oil shipped via the pipeline and mandating that all petroleum products made from Canada’s crude be sold in U.S. domestic markets. It was a rather shabby political trick trying to force Republicans to vote against an amendment ostensibly designed to make sure we reduced our foreign dependence.

Obviously this was completely disingenuous. As noted above, we’re already in a somewhat improved position where we can export a fair amount of processed petroleum products as supply allows. Refiners who’ve paid for the crude they refine sell those finished products to markets. When demand is low in this country, refiners seek markets elsewhere. They have to. The alternative is to ramp down production, lay off workers or even close up operations entirely. Because so much of the cost of a gallon of gas is the underlying cost of the crude, refiners are working on thin margins anyway, and to say they should create oversupply in this country (to exert downward pressure on pump prices) would put them in negative territory financially.

Forcing companies to either sit on it or sell it at bargain basement prices where it’s no longer profitable rather flies in the face of basic capitalism, doesn’t it? Besides… weren’t we supposed to be increasing our exports and improving our trade balance? I’m sure I heard somebody say that.

At any rate, now you’re up to date. So when you hear people talking about the great Canadian conspiracy to shut us out of the global oil trade, you’ll at least know where it came from.


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Ed Markey, I suggest people do a little google research on him. He was a nuclear freeze fanatic before he moved onto Global Warming.

rob verdi on February 25, 2012 at 6:33 PM

Markey is pond scum. Wait, that means he is the new energy source.

they lie on February 25, 2012 at 6:34 PM

Instead of Drill Here, Drill Now! it’s Skim The Pond Scum!

jb34461 on February 25, 2012 at 6:34 PM

Kinda stupid question…wouldn’t it be easier & Cheaper for the Canadians to build a refinery say and sell the stuff refined?? to whoever?

Political Chef on February 25, 2012 at 6:35 PM

Oh Lord, this fellow is clueless. Deer Park Manufacturing Complex (Shell/PEMEX) has present ownership due guaranteeing a supply of crude oil, plus PEMEX investment in expansion/modernization back in early 1990′s so that PEMEX can get gasoline in return.

Additionally, though not motor fuel, the 11 refineries in TX & LA export petroleum coke, which is a by-product from extracting the last possible gasoline out of the very bottom of the barrel of crude oil. Yes, we do export lots of petroleum coke, fuel grade. We also export gasoline, diesel, and calcined anode grade petroleum coke to places like Iceland and Canada so they can make carbon anodes to smelt alumina into aluminum.

Kermit on February 25, 2012 at 6:35 PM

I sincerely hope that Bill O’Reilly reads this and takes it to heart rather than taking his present populist view of dastardly big oil….

ultracon on February 25, 2012 at 6:36 PM

Doesn’t PADD III refine more crude oil than any other if not all other PADD’s in the country?

Kermit on February 25, 2012 at 6:37 PM

(Hint: it’s all fairly dirty until you refine it.)

And stinky, you left out how bad the stuff smells.

You put a lot of work into something that doesn’t deserve it.

Even if the nutball conspiracy was true, the Canuks would be paying Americans to use the pipeline, Americans to refine it and Americans to load the tankers.

Win/win/win, unless you are anti-American.Hmmmm…its an anti-American conspiracy headed by…democrats.

Why do democrats hate America?

cozmo on February 25, 2012 at 6:38 PM

POS!….no, not Pond of Scum either!

KOOLAID2 on February 25, 2012 at 6:39 PM

(This “theory” is spreading. You can read one example here.)

I laughed at this theory just a couple of days ago when I heard it from a friend who got it from an individual who travels in well connected circles. My gut reaction was one of surprise at people not understanding where our refineries are. Now I understand.

NotCoach on February 25, 2012 at 6:40 PM

Kinda stupid question…wouldn’t it be easier & Cheaper for the Canadians to build a refinery say and sell the stuff refined?? to whoever?

Political Chef on February 25, 2012 at 6:35 PM

Because they have eco-nuts too. Refineries are even more evil than wells.

cozmo on February 25, 2012 at 6:40 PM

It gets worse folks, -I’m really upset because I’ve learned that Government Motors is exporting some American-made cars. Exporting our cars! Those cars should be kept in the American market to force down prices! Supply and demand or something! We need a new law!

Send this to the fool BOR.

slickwillie2001 on February 25, 2012 at 6:41 PM

Bill O’Reilly is a gasbag intent on promoting himself and the books he cranks out monthly. And they’re not even good books.

jb34461 on February 25, 2012 at 6:48 PM

Malarkey.

ZK on February 25, 2012 at 6:53 PM

There is already an export ban on all of this oil. It’s called freight. Ya, lets put it on a tanker, ship it around the world a couple of times rather than use it here. Then we ship what we need in from somewhere else.

What a loon.

BullShooterAsInElk on February 25, 2012 at 6:54 PM

Everyone loves a good conspiracy theory from time to time. Lately I’ve really been enjoying Finding Bigfoot and Ancient Aliens

Did you hear that. It’s a Squaaaatch.

RickB on February 25, 2012 at 6:57 PM

You’re sitting in front of a computer so it’s easy to Google info and you’ll find that 60% of our oil comes from Canada and while you’re at it Google the amount of staff that our Congress keeps employed. The shocking truth is way over ten thousand and take a peek at the salaries paid to the staff. No wonder the Congress has no idea what direction up is.

mixplix on February 25, 2012 at 7:01 PM

I have a simple solution. Put an open season with no bag limit on environmentalists and those who think alge is the solution to our energy problems. Once tagged, the carcase must be turned in to rendering stations to create bio whatever. Side benefit. It will cut way back on the human expulsion of hot CO2.

Zelsdorf Ragshaft on February 25, 2012 at 7:03 PM

Next Attempt: Keystone oil contains trans-fat.

Tim_CA on February 25, 2012 at 7:03 PM

Everyone loves a good conspiracy theory from time to time.

Especially Rick Santorum … ;)

MeatHeadinCA on February 25, 2012 at 7:06 PM

Sounds like something Bill O’Reilly would say. And demonstrates the same level of ignorance of markets, economics, oil, and the Constitution.

pat on February 25, 2012 at 7:14 PM

Congressman Edward J. Markey

Please don’t expect anything remotely connected to a display of intelligence coming out of this man’s mouth.

GarandFan on February 25, 2012 at 7:14 PM

Kinda stupid question…wouldn’t it be easier & Cheaper for the Canadians to build a refinery say and sell the stuff refined?? to whoever?

Political Chef on February 25, 2012 at 6:35 PM

Because it is actual several types of oil in one until it is refined. Once refined to ship it by pipe you would need several pipes and could not be used for a different type of oil product. It is like raw milk and once it is processed in to 1%, 2%, whole and cream it can not be shipped in the same pipe.

tjexcite on February 25, 2012 at 7:19 PM

Congressman Edward J. Markey
Please don’t expect anything remotely connected to a display of intelligence coming out of this man’s mouth.

GarandFan on February 25, 2012 at 7:14 PM

The trouble is that Markey serves on one of the committees that has an impact on our energy sources. Or is it environment? At any rate, he has too much power for a person so ignorant of scientific facts.

onlineanalyst on February 25, 2012 at 7:26 PM

Markey’s on a roll. He’s been making up stuff about the Heartland Institute, based on the fake memo. He’s claiming that they’re receiving huge corporate funding to do their work. Well, the docs show just the opposite, and moreover, it’s none of his damn business who funds them, as they are a private org breaking no laws. He is overstepping his authority and slandering a private entity.

I’d be so embarrassed if he were my congressman-for-life.

juliesa on February 25, 2012 at 7:32 PM

Here is an excerpt from an email I received this morning from my Senator…Bill Nelson D-Fla.: “In fact, I support the pipeline as long as it’s in an area where it’s not as much of a threat to the entire Midwest water supply and we require that the oil stay here at home and not be sold to foreign countries.” Also in the email he was explaining that “speculators” are the *real* cause of the up-coming (he’s preparing us) gas price increase. I really, really dislike these people!

jatfla on February 25, 2012 at 7:39 PM

They are drinking the same stuff as OReilley and Dobbs on FOXNEWS.

KBird on February 25, 2012 at 7:41 PM

Congressman Markey attempted a deeply deceptive maneuver in pushing an amendment (a failed one) which would have made Keystone XL approval contingent on a restriction barring exports from the US of any Canadian oil shipped via the pipeline and mandating that all petroleum products made from Canada’s crude be sold in U.S. domestic markets.

Markey is a filthy liberal Democrat from Mass. in the same vein as Teddy Kennedy or Barney Frank. He is a liar by definition. It comes as no surprise that this bastard would make such statements.

Happy Nomad on February 25, 2012 at 7:59 PM

I really, really dislike these people!

jatfla on February 25, 2012 at 7:39 PM

I hate them with a passion for good reason.

Happy Nomad on February 25, 2012 at 8:00 PM

This is part of the reason we need to push all representatives into term limits, we MUST make them run there campaigns on getting term limits past. If we can get enough elected who promise to push this it will happen. We must FORCE this on them!

angrymike on February 25, 2012 at 8:00 PM

I couldn’t get past the first two sentences.

Someone actually watches that Finding Bigfoot garbage? It’s like watching a lobotomized version of Scooby Doo.

PetecminMd on February 25, 2012 at 8:02 PM

Bill O’Reilly is a gasbag intent on promoting himself and the books he cranks out monthly. And they’re not even good books.

jb34461 on February 25, 2012 at 6:48 PM

Not to mention that that idiot doesn’t actually write them. Kinds like Barry in that regard.

iwasbornwithit on February 25, 2012 at 8:02 PM

Zelsdorf Ragshaft
+100000000
he he

angrymike on February 25, 2012 at 8:03 PM

Lets all get together and report this to the truth team!

angrymike on February 25, 2012 at 8:05 PM

Not to worry – it is a lot easier to use the power of the market to influence the behavior of a democratic partner like Canada, than it is to use the ballot box to influence the behavior of the Democratic Party and its legions of dead voters, once they get power.

drunyan8315 on February 25, 2012 at 8:05 PM

Bill O’Reilley Now Oil Expert along with obnoxious does this make Him a BOR+E? I have serious doubts about O’Reilley and his sanctimonious Oil crap, Instead of shooting off your big mouth about protecting the folks, why don’t you drill down into which politicians are getting big oil donations. I’ll bet both the Ds and the Rs are lining their pockets. I do think the algae pond scum idea is great take the pond scum make oil out of it. But what do we do with all the empty buildings in Washington DC though?

stormridercx4 on February 25, 2012 at 8:07 PM

Jatfla
the word dislike is way overrated, hate is the more appropriate term.

angrymike on February 25, 2012 at 8:07 PM

First, it’s quicker, cheaper and easier to build the pipeline to Texas than it is to build refineries in Canada.

Second, there are those in Canada who wish to suspend energy exports (but no others!) to punish the US for alleged transgressions. It’s basically childish acting that few take seriously. Energy is a major dollar earner. Canadian health care system these days needs as much money as it can get. Mr. Harper’s government will make sure the oil flows – but it’s up to Washington to fulfill their end of the bargain.

KillerKane on February 25, 2012 at 8:20 PM

In two words: Markey malarkey.

NNtrancer on February 25, 2012 at 8:23 PM

Kinda stupid question…wouldn’t it be easier & cheaper for the Canadians to build a refinery say and sell the stuff refined?

Keystone XL would have carried 830,000 barrels of oil a day. Processing all that would require five to ten new refineries, each of which would cost as much as the pipeline. For comparison, the total refinery capacity of the entire nation of Canada is only about 2 million barrels a day.

Fabozz on February 25, 2012 at 8:24 PM

Historically Markey is a a friend of Castro who may not want to compete for the refining capacity and market.

burt on February 25, 2012 at 8:44 PM

burt on February 25, 2012 at 8:44 PM

I got that wrong. It was one of the Kenndys.

burt on February 25, 2012 at 8:51 PM

If any of this was true, the Obama admin. and the State Run Media would be on this big time.

minnesoter on February 25, 2012 at 8:52 PM

Hi minnesoter. Good to see you here again.

Mirimichi on February 25, 2012 at 8:58 PM

Everyone loves a good conspiracy theory from time to time.

Especially Rick Santorum … ;)

MeatHeadinCA on February 25, 2012 at 7:06 PM

Not much more far-fetched than Newt’s promises of $2.50 gas! Unless his plan involves importing oil from our new moon colony, there’s no way to dramatically lower the worldwide price of crude. And that means it’s achievable only by killing the free market- by forcing oil companies to sell gas in N. America at prices below those set by the free market.

bayam on February 25, 2012 at 9:16 PM

Fabozz on February 25, 2012 at 8:24 PM

There are only 12 refineries in TX and LA which can refine this crude anyway. They are presently refining Venezuelan crude which is declining and has declined by to 65% of the level produced when Chavez we elected.

The pipeline from Cushing, OK is to Nederland, TX (Not Houston) because a pipeline has already existed between the two locations for close to 100 years and the main PIPELINE terminal connected to almost every refinery from Mobile to Corpus Christi is there.

Due to the configuration of these refineries from the early 1980′s when Venezuelan crude was cheap and somewhat stable, Canadian Syncrude would go to Corpus Christi, Sweeney, & Port Arthur, TX. It would also go to Lake Charles, Norco & Chalmette, LA.

Several refineries with pipelines from Canada which are now able to refiney Canadian Syncrude had $BILLIONS in new process units invested in EACH of them.

Kermit on February 25, 2012 at 9:42 PM

there’s no way to dramatically lower the worldwide price of crude. And that means it’s achievable only by killing the free market- by forcing oil companies to sell gas in N. America at prices below those set by the free market.

bayam on February 25, 2012 at 9:16 PM

I think increasing the supply would lower the cost. So, a comprehensive approach to increasing supply would do what you say is impossible.

massrighty on February 25, 2012 at 9:43 PM

Obviously Markey must think the American people are stupid

HoosierStateofMind on February 25, 2012 at 9:46 PM

No way can ANY refinery agree to not exporting products made from Canadian Syncrude. All those refineries capable of processing it have large delayed petroleum coking units. We export 50% of that petcoke. That is a large profit center for refiners.

Kermit on February 25, 2012 at 9:47 PM

HoosierStateofMind on February 25, 2012 at 9:46 PM

All Americans SHOULD think that Markey is stupid. At least the ones who are not stupid think that of him.

Kermit on February 25, 2012 at 9:48 PM

They are drinking the same stuff as OReilley and Dobbs on FOXNEWS.

KBird on February 25, 2012 at 7:41 PM

I have been watching that all week and have been amazed that not a blog or news story I have seen chose to debunk his amazing misunderstanding of world markets.

Perhaps you and I are the only ones still watching.

LifeTrek on February 25, 2012 at 10:22 PM

It’s difficult to even know where to begin.

FYI, Jazz, one of our douchebaggiest douchebag trolls here at the venerable HotGas vomited up this nonsense on one of the threads about O’Bozo’s decision on Keystone. Can’t remember who … I tend to ignore the lefty douches here.

But yeah … this was out there right from the get-go.

Jaibones on February 25, 2012 at 10:53 PM

Markey was behind the 2005 deal with Chavez to get Venezuelan oil for Boston. Quite the patriot.

bofh on February 25, 2012 at 11:21 PM

They are drinking the same stuff as OReilley and Dobbs on FOXNEWS.

KBird on February 25, 2012 at 7:41 PM

I have been watching that all week and have been amazed that not a blog or news story I have seen chose to debunk his amazing misunderstanding of world markets.

Perhaps you and I are the only ones still watching.

LifeTrek on February 25, 2012 at 10:22 PM

They won’t because it is becoming more widely accepted that BOR is an idiot. Why bother?

slickwillie2001 on February 25, 2012 at 11:21 PM

The biggest prob with XL was eminent domain, a concern is always integrity of pipeline, the rest is semantic bs

John Kettlewell on February 25, 2012 at 11:48 PM

Excuse me for thinking out of the box, but why not just declare an energy emergency and provide a waiver from EPA refinery silliness and build new gasoline refineries near where the oil is produced? Do it without crossing any state boundaries and challenge the EPAs ability to regulate such situations. If there’s a problem with Canada complaining, offer them some cheap gasoline from the ew plants…

Then focus on building pipelines shipping the the final products to markets without wasting the energy necessary to pump the oil to Texas and out to everywhere else.

There’s energy plans, and there’s energy silliness… Seems like the Keystone is as much about weeny politicians not standing up for the good fight to reduce excessive refinery regulations as it is about weeny politicians not wanting to build the pipeline in the first place…

Just saying — seems there’s plenty of weenie awards to be handed out on this issue…

drfredc on February 26, 2012 at 12:06 AM

Not much more far-fetched than Newt’s promises of $2.50 gas!
bayam on February 25, 2012 at 9:16 PM

What were gas prices on January 10th 2007?
Answer: $2.18 US Average.

Because 2007 was sooooo long ago.

BDavis on February 26, 2012 at 12:25 AM

I think increasing the supply would lower the cost. So, a comprehensive approach to increasing supply would do what you say is impossible.

massrighty on February 25, 2012 at 9:43 PM

He’s wrong for many reasons, and increasing supply would certainly lower the cost to some degree. The more important issue is that countries like the US and Canada are stable, modern democracies, a fact that reduces the amount of risk involved in commodities developed in those countries. A large part of what you’re paying on the crude market is the risk that’s involved in doing business with places like Venezuela and Iran-in fact, that risk is calculated into any business you do in those countries.

So increasing oil production and refining in places like the US and Canada actually has a bigger effect than just the supply increase would indicate because of the reduction of risk that’s involved.

Of course, a sensible monetary policy would help as well, which is another thing you’ll never hear the troll admit, because it would undermine any argument he made for his president.

PetecminMd on February 26, 2012 at 12:52 AM

Kinda stupid question…wouldn’t it be easier & Cheaper for the Canadians to build a refinery say and sell the stuff refined?? to whoever?

Political Chef on February 25, 2012 at 6:35 PM

Not a dumb question at all. Two part answer:

1. As stated above, Canada has their own environazis, and theirs have even more political juice than ours, so no refinery for you, eh.

2. It is actually less expensive to put down a pipeline to a place where there are already refineries, and the distance isn’t a big issue. Industrial pipelines are put down all the time for various fluids and semi-fluids, we’re extremely good and efficient at it. Water, natural gas, sewage, etc. all flows underground through pipes, some of which have been in place many decades, and with little to no trouble.

Freelancer on February 26, 2012 at 1:57 AM

What were gas prices on January 10th 2007?
Answer: $2.18 US Average.

Because 2007 was sooooo long ago.

BDavis on February 26, 2012 at 12:25 AM

…PROVING that the most effective way to reduce the price of gas is to decrease the supply of Democrats in Washington.

landlines on February 26, 2012 at 1:57 AM

bayam on February 25, 2012 at 9:16 PM

The price of gas fell more than $0.60/gal within two weeks, the last time a President threatened to open up ANWR. The concept that we would begin drilling scared the OPEC heads so much that they raised production and lowered prices just on the hope that we would back off.

Now, imagine if we had gone ahead and drilled. Sure, they would try to embargo oil on us for a short time, and prices would temporarily spike, but the entire world would know what’s happening and why, and their attempt to blackmail us into continuing to spend more on their supply would fail. Because the moment American supplied crude was available on the mass market all prices would fall dramatically. And guess what else? Domestic oil companies wouldn’t see a large loss of profit, because they would be getting the driller’s margin as well as the refiner’s. Only a despotic government is keeping us from the massive prosperity that would ensue.

Try again…

Freelancer on February 26, 2012 at 2:04 AM

Because the moment American supplied crude was available on the mass market all prices would fall dramatically.

Interesting. How many millions of barrels per day do you anticipate coming out of the US?

bayam on February 26, 2012 at 2:08 AM

A congress-creature from Massachusetts is being deceptive?

I can’t believe my ears – Markey merely is behaving in accordance with the directions of our most peruasive founding father- Saul Alinsky. Some of you republican types just havn’t gotten with the new fundamental changes to America. Long live….er…deceit?

Don L on February 26, 2012 at 6:30 AM

I’m afraid I’m going to have take all of you to task on the spelling of the congressman’s name. The real spelling is MALARKY.

conservative educator on February 26, 2012 at 7:39 AM

Perhaps an amendment to the budget requiring all money be spent in the US .. no foreign aid, no military actions, no import/export bank, no trade.

J_Crater on February 26, 2012 at 7:45 AM

Kbird: You are right about BOR, He seems stuck on stupid when it comes to gas prices and oil procuction. Many people think that the oil companies are hosing them. They are totaly ignorant of how markets work. We can lower the price of oil with more production and the Keystone will help with that. One case in point is the price of Natural gas. Look at how it has fallen since all the procuction in the last two years in the shale plays. I am a consultant for one of these evil oil companies. We have been drilling the Haynesville shale in N. Louisiana for the last 3 years. The price has fallen so much with increased porduction that many companies have stopped drilling due to the low prices. The cost of these wells are exceding the returns. It will work the same for oil.

txdonboy on February 26, 2012 at 7:47 AM

Markey’s on a roll. He’s been making up stuff about the Heartland Institute, based on the fake memo. He’s claiming that they’re receiving huge corporate funding to do their work. Well, the docs show just the opposite, and moreover, it’s none of his damn business who funds them, as they are a private org breaking no laws. He is overstepping his authority and slandering a private entity.

I’d be so embarrassed if he were my congressman-for-life.

juliesa on February 25, 2012 at 7:32 PM

He is, and I am. I have the misfortune to live in ‘Fast Eddie’ (as Howie Carr on WRKO in Boston calls him) Malarkey’s district. For years he has run unopposed; in 2010 an ineffectual chiropractor attempted a challenge, but was buried by incumbency and Malarkey’s insane moonbat constituency. Maybe this year someone with backing can rise to the occasion and unseat this dangerous fool. But I’m not holding my breath.

MrLynn on February 26, 2012 at 8:32 AM

The Keystone XL will look nothing like the Trans Alaska you have pictured in your story. Why? Because it will be buried. You won’t see it except at the pump stations.

UT Cowboy on February 26, 2012 at 9:04 AM

I sincerely hope that Bill O’Reilly reads this and takes it to heart rather than taking his present populist view of dastardly big oil….

ultracon on February 25, 2012 at 6:36 PM

Unfortunately, once Billy’O makes up his mind about something, he’ll beat it like a rented mule. He is so far off the mark on this, his basic ignorance is showing.

~(Ä)~

Karl Magnus on February 26, 2012 at 9:09 AM

Its simple economic price discovery. Canadian oil leaving priced at the 65.00/bbl level, Bakken oil at the 70/bbl level….
…vrs west texas crude right now at over 100.00

Keystone brings that “differential” or basis much closer together

and that is why Canada wants it built. Right now it is somewhat stranded oil and thus the price discount.

….on another note 18 refineries have shut down in the past 2 yrs as oil price moves up and demand for finished product slows due to Obamana’ics

In actuallity, gas when priced in terms of gold is only at 82% of 40 yr ave……..gas is actually going down

Its what Obaama’ is doing to the dollar that is criminal

sbark on February 26, 2012 at 9:34 AM

“Everyone loves a good conspiracy theory from time to time. Lately I’ve really been enjoying Finding Bigfoot and Ancient Aliens.”

Jazz,

I have it on good authority, that Bigfoot resides at 1600 Pennsylvania Ave. Check it out!

mkm19602000 on February 26, 2012 at 10:35 AM

“It gets worse folks, -I’m really upset because I’ve learned that Government Motors is exporting some American-made cars. Exporting our cars! Those cars should be kept in the American market to force down prices! Supply and demand or something! We need a new law!

Send this to the fool BOR.”

slickwillie2001 on February 25, 2012 at 6:41 PM

Back when she was Governor, Kathleen Sebelius used a similar fallacy to rationalize her administration’s cancellation of the permits for two new-gen coal-fired powerplants in western KS. She actually managed to announce with a straight face that the privately funded project was bad because 70% of the power generated would be sold out-of-state!

Her agility in ignoring the presence of Boeing in Wichita since 1928 was truly epic, insofar as none of their aircraft is ever sold to in-state clients whatsoever… Serious students of economics generally agree (they call that “consensus”, right?) that exports are a Good Thing for any given locale…

Then again, now that Kathleen has moved to “greener” pastures in DC, Boeing has recently announced it will leave the state, too, so maybe she did know something… *sigh*

“Cogito, ergo TEA Party!” ~ DeepWheat

DeepWheat on February 26, 2012 at 12:25 PM

>> What were gas prices on January 10th 2007?
>> Answer: $2.18 US Average.

>> Because 2007 was sooooo long ago.

>> BDavis on February 26, 2012 at 12:25 AM

…PROVING that the most effective way to reduce the price of gas is to decrease the supply of Democrats and RINOs in Washington.

landlines on February 26, 2012 at 1:57 AM

FIFY… but +100 anyhow for incisive analysis and strong closing… :-)

“Cogito, ergo TEA Party!” ~ DeepWheat

DeepWheat on February 26, 2012 at 12:48 PM

Can you think of another U.S. industry that is castigated for becoming more competitive in the global marketplace?

Exporting fuel is a negative. If Americans were starving, would we brag about exporting food instead of adding it to the domestic supply to alleviate the starvation problem? Not to mention that it is an outrageous contradiction to claim that you support this fallacious thing called “energy independence” while shaking your pom poms for shipping our fuel out of the country.

Buddahpundit on February 26, 2012 at 1:15 PM

another gift from massataxutts

losarkos on February 26, 2012 at 1:37 PM

Here’s some tough talk for yas:

Markey, DeLauro, Welch Urge President Obama to Devise “Aggressive Strategy” to Use Strategic Oil Reserve

“It is essential that the United States have an aggressive strategy for releasing oil from the Strategic Petroleum Reserve to combat the speculators capitalizing on the fear in oil markets and to send a message to Iran that we are ready, willing, and able to deploy our oil reserves…”

And I guess when it’s all gone, we fill it up again, then come up with another plan to aggressively release it again. That’ll show them Ayrabs!

Akzed on February 26, 2012 at 1:56 PM

If Americans were starving, would we brag about exporting food instead of adding it to the domestic supply to alleviate the starvation problem?

Your own analogy shows why you’re wrong: Just as “food” is an abstract word that in reality represents many different products with different markets and uses, so too is “oil” an abstract term. If America was starving while sitting on a massive rutabaga crop, the rational answer would not be “ban rutabaga exports so that Americans can eat rutabagas!” Instead, the rational answer would be to exchange rutabagas for a balanced diet imported from abroad.

There are other economic factors at work. Transporting oil by pipeline is cheap, but as we’ve seen, we’re not allowed to have new pipelines. Transporting oil by ship is also cheap, but a US law called the Jones Act makes it illegal to ship cargo from one US port to another. So the most economically efficient way to get oil from one part of the country to another is often to sell the oil to one foreign country, then use that money to buy oil from another foreign country that is legally allowed to ship it to where it needs to be.

Since we’re also not allowed to have new oil refineries, and since existing oil refineries are set up to process the kind of oil that’s been easiest to acquire, when a new source of crude oil becomes available, it is often not possible to refine it near the source. So, for example, since Texas refineries were all set up to process heavy Gulf crude, when light shale oil was found in Texas, the only thing to do with it was ship it elsewhere… and as discussed above, thanks to the unholy alliance of environmentalists and unions, the only place to ship it to affordably is overseas.

It’s perfectly rational for an average citizen who doesn’t have family in the oil business not to know this. But I guarantee the politicians know all this. So whenever a politician says “we shouldn’t be exporting oil”, what he really means is “I want all oil production stopped, and if I use these terms to demagogue it, I can sucker people into agreeing with me who never would otherwise.”

Fabozz on February 26, 2012 at 2:56 PM