Iowa
TransCanada’s Keystone XL Pipeline – Toxic Tar Sands Bad for Iowa
This summer a campaign in Iowa was launched to combat toxic tar sands oil from Canada.
The most imminent tar sands threat to Iowa comes from Canadian oil company TransCanada, which is working to gain the permits necessary to build the massive Keystone XL pipeline that would bring up to 900,000 barrels per day of toxic tar sands oil from Canada through the heartland of the United States. Keystone XL would go through the ecologically fragile Nebraska Sandhills and the irreplaceable Ogallala aquifer, which provides one third of U.S. agricultural water and drinking water for millions of Americans.
The Keystone XL pipeline is part of an oil industry effort to increase profits. TransCanada’s analysis has found that the Keystone XL pipeline will increase oil prices in Iowa. Their report states, “the Keystone XL Pipeline is expected to strengthen Canadian crude oil pricing in PADD II [the Midwestern market] … The resultant increase in the price of heavy crude is estimated to provide an increase in annual revenue to the Canadian producing industry in 2013 of US $2 billion to US $3.9 billion.
You can help today by contacting President Obama, Secretary of State Clinton, Senator Harkin and Senator Grassley to say NO to the Keystone XL tar sands oil pipeline.
TransCanada has earned a reputation as a bad actor. The company is known for bullying landowners with legitimate safety concerns and threatening them with eminent domain. Moreover, their previous tar sands oil pipeline has already leaked at least 14 times in its first year of operation.
Now TransCanada wants to build a new pipeline through America's heartland, and it's up to us to stop them. We need your help to do it!
Keystone XL Pipeline is Projected to INCREASE Midwest Oil Prices
Iowa won't see any benefits from this pipeline. Instead, if completed, the new pipeline will cause gas prices to go up 10 to 20 cents per gallon of gasoline and put two million Americans’ drinking water at risk of contamination from toxic tar sands oil.
The analysis used in the application submitted to The Canadian National Energy Board, conducted by Purvin & Gertz Inc. on behalf of TransCanada, says:
Existing markets for Canadian heavy crude, principally PADD II, are currently oversupplied, resulting in price discounting for Canadian heavy crude oil.
Access to the USGC via the Keystone XL Pipeline is expected to strengthen Canadian crude oil pricing in PADD II by removing this oversupply… The resultant increase in the price of heavy crude is estimated to provide an increase in annual revenue to the Canadian producing industry in 2013 of US $2 billion to US $3.9 billion.
The ‘price discounting’ that TransCanada speaks of refers to the effect the oversupply of Canadian crude oil has on gas prices in the Midwestern United States.
PADD II refers to the Midwest, PADD I refers to the Gulf Coast.
Famed oil market economist Dr. Verleger describes how the increase in the cost of oil associated with Keystone XL’s construction will have adverse economic effects for Midwestern FAMILIES in addition to higher prices at the pump.
1. ‘U.S. farmers, who spent $12.4 billion on fuel in 2009, according to the U.S. Department of Agriculture, could see expenses rise to $15 billion or higher in 2012 or 2013 if the pipeline goes through. Of course, American consumers will pay the price of this highway robbery. Food prices will rise because they reflect farm operating costs. In addition, millions of Americans will spend 10 to 20 cents more per gallon for gasoline and diesel fuel as tribute to our "friendly" neighbors to the north.’
2. Higher oil prices in the Midwest will have substantial economic impacts upon every aspect of American life. Higher fuel prices will lead to increased expenditures in the education sector, the agricultural sector, and the public transportation sector, just to name a few. While TransCanada, our ‘friendly neighbor’ claims to have America’s national interest in mind, the economic evidence says otherwise. Stand up for America’s national interest, and the economic welfare of all Americans.
3. “TransCanada Keystone L.P. Application for Presidential Permit” September 19, 2008. Web. 26 Oct 2010. http://bit.ly/a40aBL p. 5.
4. ‘USGS- Ogallala Aquifer Water Quality Currently Acceptable’ http://journalstar.com/news/state-and-regional/govt-and-politics/article_f9a83f7a-5f6b-5ede-b666-db3b9ea593e7.html
5. Keystone XL Pipeline Section 52 Application to The Canadian National Energy Board. Section 3: Supply and Markets. p.1-8. https://www.neb-one.gc.ca/ll-eng/Livelink.exe/fetch/2000/90464/90552/418396/550305/556487/549220/B-1f_-_Supply_and_Markets_(Tab_3)_incl._Appendix_3.1_-_A1I9R7?nodeid=549324&vernum=0&redirect=3&redirect=4
6. "Texas activists ready to fight over $7bn oil pipeline in the home of black gold," Suzanne Goldenberg, The Guardian: March 2, 2011.
7. "Keystone Oil Pipeline: Regulators Block Restart Of Keystone Oil Pipeline, Cite Leaks," Lucia Graves and Tom Zeller Jr., The Huffington Post: June 3, 2011.
8. "If gas prices go up further, blame Canada," Philip Verleger, StarTribune: March 13, 2011. http://action.sierraclub.org/site/R?i=Z54kI_IokmZbMjAhZZS8Gw
..9. "High Plains Regional Ground-Water Study," F.F. Dennehy, USGS: October 26, 2010. http://action.sierraclub.org/site/R?i=YGkPJfhC9wj1Rx9lkrTKZQ
..10. Keystone XL Pipeline Section 52 Application to The Canadian National Energy Board. Section 3: Supply and Markets. p.1-8. https://www.neb-one.gc.ca/ll-eng/Livelink.exe/fetch/2000/90464/90552/418396/550305/556487/549220/B-1f_-_Supply_and_Markets_(Tab_3)_incl._Appendix_3.1_-_A1I9R7?nodeid=549324&vernum=0&redirect=3&redirect=4
11. Ibid.
12. Verleger, Philip. “If gas prices go up further, blame Canada.” Star Tribune. March 13, 2011.
http://www.startribune.com/opinion/otherviews/117832183.html?source=error