Over the last several months, the controversy over the Keystone XL pipeline extension has grown to such fevered pitch that several weeks ago, the Obama administration, fearing alienation of its own environmentalist base, punted a decision on its border crossing permit for another year of further “study” of the pipeline project. Proposed by pipeline company Transcanada, The Keystone XL extension consists of over 1,600 miles of 36″ pipe that would move oil from the oil sands projects in Alberta, Canada, through Saskatchewan, into Montana, then crosscountry, using portions of the existing Keystone pipeline, extending all the way to refineries on the Texas Gulf Coast. When completed, the pipeline system is expected to have capacity to transport up to 1.1 million barrels of oil per day, or about 6 percent of our total oil consumption per day in the US. Read the rest of this entry
Something rather unexpected is happening in the Middle East. The oil-rich Gulf states, which have earned trillions of dollars in the past few decades exporting crude to the east and west, find they can no longer afford to consume their own oil. They are consuming ever increasing amounts at home, at a huge cost to exports, and are being forced to turn to renewables as a cheaper source of energy.