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Feds To Audit Keystone Pipeline Deal

The federal government’s chief auditor on Monday said that it would review the State Department’s handling of a controversial Keystone XL oil pipeline, which would stretch from the Alberta oil sands in Canada to the U.S. Gulf Coast. The move comes less than two months before the department is due to issue a verdict on it.

We spent an hour talking about the Keystone XL pipeline recently, which you can find here.

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  • Wh2angel

    Why should we have the pipeline when we have the richest oil field in the world in North Dakota.

  • http://pulse.yahoo.com/_4JJGZH272L5QJ7KDU2PR5C4ND4 Gerhardovic

    The delay of Keystone XL pipeline is both the right thing to do and  politically interesting. 

    First, it is the right thing to do.  Why ship Canadian crude across the aquifers supplying the entire great Plains to Texas just so it can be refined into finished product and shipped back to the northern tier of states to be consumed?  Why not refine the oil where it will be used?

    Second, the northern tier of states suffers from a chronic shortage of refining capacity.  The Koch Brothers more or less hold a monopoly on the fuel supply of the region through their large refinery in Inver Grove Heights, MN – also supplied with Canadian crude.  Lots of oil is coming on line from finds in North Dakota’s Williston basin; and it too needs to be refined.  Three new or expanded refineries need to be built:
    1. Uprate ExxonMobil-Billings MT from 60,000 bbl/day to 360,000 bbl/day.
    2. Uprate the former Marathon St.Paul Park, MN from 80,000 bbl/day to 380,000 bbl/day.
    3. Expand the Great Plains Synfuels plant in Beulah, ND; or build an entirely new (1st in the USA in 20 years!) refinery near Williston, ND with 400,000 bbl/day capacity.

    These plants could easily tie into the existing pipeline distribution network for finished petroleum products with very short extensions or expansions of existing pipelines – no need for the Keystone XL monstrosity at all.  In addition, it would NOT benefit Rick Perry’s Texas and would significantly harm the interests of the Koch Brothers.  It will be interesting to see how this develops. 

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