The highly controversial, and much disputed issues surrounding the Keystone XL crude oil pipeline project. There are many pros and cons of the Keystone XL pipeline. It would make more sense to approve it and build it rather than sit and wait. We need to get away from importing Middle East oil and start producing more on our own soil. The Keystone pipeline would transport a crude oil alternative from Canada to the United States in Houston, Texas. The pipeline has rapidly gained exposure, this exposure can be attributed to a number of factors, but in a large part rising gasoline prices and political pressures are the driving factors.
Increased demand for more reliable and stable supplies of crude oil in the United States has been driven by traditional heavy oil. TransCanada Corporation is a Canadian based energy company which develops and operates energy infrastructure throughout North America. The corporation is at the center of the oil sands debate. Since the pipeline would cross international borders, the project requires the approval of the State Department in accordance with executive order 13337. Oil sands are naturally occurring deposits of mixtures of water, bitumen, sand, clay, and other minerals.
All of which combine to create extremely viscous oil. The sand particles have become coated with a thick layer of oil and water. After millions of years of exposure to bacteria, the mixture becomes incredibly thick. The crude must be treated prior to processing in order to produce usable fuels, such as gasoline and diesel fuel. The World Energy Council reported that there are 598 natural bitumen deposits in 23 countries, with the largest deposits in Canada, Kazakhstan, and Russia. The global natural bitumen reserve is estimated to be 249 billion barrels; 176 billion of those are in Canada.
The Essay on Production Functions and Cost Functions in Oil Pipelines
1. For an 18-inch pipeline designed for 150,000 barrels per day, what is the short-run cost per barrel (per thousand miles) of transporting crude oil if the throughput is (a) 50,000 barrels per day (b) 100,000 barrels per day (c) 150,000 barrels per day? Using chart 7, a) Cost of transporting 50,000 barrels would be 30 cents. b) Cost of transporting 100,000 barrels would be 17 cents. c) Cost of ...
Oil sands were first discovered in the 1700’s but were unable to be extracted. (keystone-xl) Many Republicans argue for the immediate approval of the project. Here are the facts; the entire project is estimated to cost $5. 3 billion dollars. It is the largest infrastructure project currently proposed in the US. The project would be 1,179 miles long and would need an estimated 9,000 American workers. That means they need welders, mechanics, electricians, pipefitters, laborer, safety coordinators, heavy equipment operators and other workers who rely on large construction projects to keep employed.
To meet the demand of all the supplies needed it is also estimated that 7,000 jobs in manufacturing the steel pipe and thousands of fittings, valves, and pumps and control devices are required for the major oil pipeline. TransCanada has contracts all over the U. S, companies in Texas, Missouri, Pennsylvania, Michigan, Oklahoma, South Carolina, Indiana, Georgia, Maryland, New York, Louisiana, Minnesota, Ohio, Arkansas, and California. TransCanada already has 4,000 American workers in Oklahoma and Texas building a Gulf Coast Pipeline Project.
The gulf coast pipeline project is expected to be completed by the end of this year. Construction and development is anticipated to generate $20 billion in economic impact in the U. S, including $99 million in local government revenues and $486 million in state government revenues during construction, plus an additional $5 billion in property taxes. (keystone-xl) Right now there is no pipeline from Alberta, Canada, to the refineries in Texas. The oil companies are forced to use freight trains to transport their black gold.
The Essay on The Keystone XL Pipeline
The Keystone pipeline is a pipeline that will carry 900,000 barrels of a mixture of synthetic crude oil and a combination of bitumen and diluents. This pipeline already goes from Canada to Missouri, but plans are in place to extend this pipeline down to refineries in Texas and then out to the Gulf Coast. There are several debates and articles supporting and opposing this project (Palliser, 2012). ...
Expert’s estimate it would take daily runs of 15 trains with about 100 tank cars each to carry the amount planned by TransCanada. It would be a major increase in traffic from north to south. The number of carloads of crude oil doubled from 2010 to 2011, and then tripled from 2011 to 2012. If we don’t get our oil from Canada we will be forced to get it somewhere else. (TIME) Since July, plans have been announced for three large loading terminals in western Canada with the combined capacity of 350,000 barrels a day, about only 40% of the capacity of the proposed pipeline.
Canada is poised to quadruple its rail-loading capacity over the next few years to as much as 900,000 barrels a day from 180,000. There have been a few rail way accidents and renewed concerns about the safety of transporting oil. If Canada builds new terminals it will increase its exports to the U. S by more than 90 percent. Right now they plan to ship 7,000 barrels a day to as many as 30,000 a day by the end of 2014. Oil companies will find any way they can to put their product on the market. (NYTIMES)
When we think of oil, I think of why I am paying $3. 50 for a gallon of gas for my automobile. Some of the negative effects of pumping oil from a well are major spills that could possibly be devastating to an environment. There are many examples of these. For instance the BP spill in the gulf, there has been spills from hurricane Katrina, Michigan, and Arkansas. They do harm ecosystems. When there are spills they cause so many chain reactions. Environmentalists say it will create many greenhouse gasses. The EPA doesn’t want the project to go forward.
Some argue in Nebraska that they don’t want the project to run near a major aquifer that supplies farmers with water for crops and livestock. Some say they’ve worked on pipelines and there is no such thing as a pipe that doesn’t leak. When millions of gallons of petroleum flow through a pipe it causes corrosion and after many years the pipe will leak as a result. The pipeline would run through the Ogalala Aquifer, which is the Midwest’s supply of water and lifeline. The carbon emissions from tar sands are more harmful than most other fossil fuels.
The long them harm would not be worth the temporary jobs it would create. Political opinions say it would be a big step backwards. They say the only winner would be the oil companies and their money pockets. The Keystone XL pipeline project has the potential to reduce the amount of oil America imports from Venezuela, the Middle East and other regions by up to 40 percent. This will be oil that is produced in North America, by companies that employ thousands of American and Canadian citizens. The U.S consumes 15 million barrels of oil each day.
The Term Paper on Importance Of Oil And How It Has Changed World Politics
In the modern civilization, oil has great significance. However, many people do not consider oil to be of great significance because they only associate it with the diesel or the petrol that they use for transport purposes. According to Yergin (Yergin, p 17), the world is addicted to oil. Due to the oil’s important role in all countries all over the world especially in the industrialized nations, ...
About 60 percent of that oil must be imported from other countries. We need to get away from foreign oil and be more independent. There are many pros and cons of the Keystone XL pipeline. It would make more sense to approve it and build it rather than sit and wait. If the oil companies are going to move it to get refined why not see if what they are doing could have more benefits than tragedy’s. Even if their pockets are getting bigger the money we spend to fill our gas tanks gets smaller.
