Keystone Xl Pipeline Essay

1760 Words Mar 21st, 2014 8 Pages
Alberta Oil – Keystone XL pipeline

The high demand for oil in the U.S. is continuously increasing. In 2010, the United-States, on average, consumed 19.15 million barrels of oil per day (bpd) (Index Mundi 1). Due to the high demand and the proximity to the U.S., Canada is a major supplier of their oil. The Alberta Tar Sands are the 2nd largest oil reservoir in the world and are a major source of Canada’s oil exports to the States and to the world. The high demand is being met with extreme dislike from environmentalists. It also creates thousands of jobs. Bureaucrats are pushing for its construction; they do it for the economical growth and the capital benefits. The construction of the Keystone XL pipeline (KXL) is a controversial issue
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(Minicucci, 1) The increased employment will be mainly due to cutting the boreal forest of northern Alberta and the jobs created on the new strip mining sites for extraction of bitumen (raw form of crude oil). The KXL is projected to increase the Midwestern crude industry from 2 billion to 3.9 billion U.S. dollars in the first year and oil exports from approximately 1.3 million bpd in 2009 to 3.5 million bpd in 2025 (Droitsch,6). Energy security is a big concern in North America. The KXL will help North America by allow Canada and the U.S. to be less dependent on foreign oil sources. The pipeline will be the largest from Alberta to the U.S. and has a life appetency of 50 years (Droitsch,1). PADD 3, in Texas, will be the main station where most of the crude oil will be refined. According to Canadian Association of Petroleum Producers (CAPP), “PADD 3 is the largest untapped market for western Canadian crude oil producer” (Droitsch,5). The new market will receive a 700% increase on delivery in crude oil from 96000 bpd to 796000bpd (Swift,4). Due to extra export, the price of Canadian crude oil will increase due to the higher demand and will avoid a saturated oil industry in the Midwestern. Also tapping to Gulf Coast market, though PADD 3, will allow Canadian oil to more easily be exported and not forced to be always shipped from Vancouver to the rest of the world. CAPP wrote in the official

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