Roger Hedgecock for WND.Com
Gas prices are
going up again. How much hotter can this pot get before the frog is
boiled? Our economy literally runs on affordable gas and diesel. Inflation
signals are flashing, and consumer confidence has taken another hit.
And the election is right around the corner.
deflect political fallout from rising gas prices, President Obama has
proposed releasing oil from the Strategic Petroleum Reserve. Obama has
also been lobbying European Union countries to release their reserve
oil to increase supply and bring down prices and, bydepriving
Iran of oil revenues at the higher prices, increase the effectiveness
of the sanctions against Iran.
At the same
time, the New York Times reports that oil imports from Saudi Arabia
have increased this year by 20 percent. That's the Obama plan. Increase
oil supply from the reserve and from a country vulnerable to Iranian
interference. This Obama plan makes no sense.
apparently believes that more oil supply from the reserve and greater
dependence on Saudi oil will bring down prices but more oil supply from
Canada will not.
In a well-known
story, TransCanada proposed to build the Keystone XL Pipeline to increase
oil exports from Canada to the U.S. by more than 800,000 barrels a day.
This new oil from Canada was planned to go to gasoline refineries in
Illinois, Oklahoma and Texas, increasing the supply of gasoline for
American motorists and truckers.
project would have created more than 20,000 well-paying jobs and lessened
our dependence on Venezuelan oil, which is currently used in Texas refineries.
of 11 labor unions, a dozen state governments and many business organizations
lobbied for federal approval, which was required because the new pipeline
would have crossed the Canada/U.S. international border. The State Department
had recommended approval.
vetoed the project, putting environmental ideology ahead of jobs and
ahead of energy dependence on a reliable ally.
action, Chinese government-owned oil companies have been only too happy
to begin buying Canadian oil companies in a blatant move to lock up
the oil that would have gone to the U.S. The Canadian government has
opened negotiations with the Chinese and is preparing to build a new
pipeline from Alberta to the Canadian west coast to export the oil to
So far, it's
a lose-lose for America.
But all may
not be lost yet. TransCanada rival pipeline owner, Enbridge, Inc., has
proposed another way to bring more Canadian oil to the U.S. that does
not require federal approval.
an existing pipeline from Canada into the U.S. under an existing permit
which allows for expansion of the volume of oil in that pipe. By investing
$8.8 billion in new pipe capacity in its pipe network in the U.S., Enbridge
plans to add up to one million barrels a day of that Alberta, Canada,
oil to supply the same refineries in Oklahoma and Texas that were the
target of the Keystone XL.
federal approval is required. Environmentalists are livid.
So while proposing
to release oil from the Petroleum Reserve (oil which will have to be
replaced by open market purchase after the election) to increase oil
supply and bring down oil price, Obama is now searching for a way to
stop the Enbridge pipe expansion.
edition of the Los Angeles Times (a reliable mouthpiece for Obama) featured
a front-page article in the business section exposing the Enbridge plan,
detailing the few spills Enbridge had in its 60-year corporate history
and calling on the federal agencies to do something to stop the import
of Canadian oil.
The Times article
lamented, "The task of determining the safety or wisdom of Enbridge
pipeline routes falls on a patchwork of local, county, and state jurisdictions
throughout the Midwest and East most of which lack intensive pipeline
These locals want the jobs and the revenues from the pipeline and can't
be trusted to stop it.
can stop this nefarious scheme. The Times article ups the pressure on
Obama, noting that, as of yet, the EPA and the National Transportation
Safety Board have "declined to comment on Enbridge's new plans."
once again step in to stop an increase in Canadian oil, preferring instead
to plunder our Strategic Reserve and go deeper into oil dependence on
Venezuela and Saudi Arabia?