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The recent presidential cancellation of the Keystone XL Pipeline is a political scam.
The Keystone XL Pipeline, when constructed, will move some 70,000 barrels per day (B/D) of tar sands crude oil from Canada to the US Gulf Coast refineries to be refined into fuels for US consumption at a transportation cost of ~$5/barrel. $5/barrel = $0.12/gallon. 70,000 B/D = 2,940,000 gallons per day (G/D) = ~1 trillion gallons per year (G/Y).
Our country is in real need of jobs to get its economy moving forward again. The Keystone XL Pipeline construction will take about four years to complete. Its construction will create good-paying jobs at U.S. steel companies making the pipe, heavy equipment manufacturers like Caterpillar, compressor and pump manufacturers, etc.
Canada currently supplies in excess of 20 percent of the crude oil refined in the U.S. today. The known reserves of the tar sands crude oil in Canada and the shale oil in Baaken area of North Dakota are five times the oil equivalents that exist in Saudi Arabia.
Berkshire Hathaway (think Warren Buffet) bought the Burlington Northern Santa Fe (BNSF) railroad in 2011. The BNSF owns most of the train tracks west of the Mississippi River. The BNSF handles the vast majority of rail car movements between Canada and North Dakota to the U.S. Gulf Coast refineries. They charge $250/day demurrage for rail cars sitting on their tracks waiting to be loaded. It takes thousands of rail cars to move this crude oil. The average rail car demurrage time is 10-14 days. This adds $2,500 to $3,500 cost to moving each of these rail cars. The average freight rate for movement of 25,000 gallon rail cars to the U.S. Gulf Coast is $.32/gallon, but one must add at least another $.10/gallon for the above noted demurrage costs. These rail cars need to be steamed to get the oil out of them when they arrive at the refineries. The oil in the pipeline arrives warm at these same refineries.
Cancellation of the Keystone XL Pipeline will make a lot of money for the BNSF, but it will add at least another $.30/gallon to the cost of getting the Canadian crude oil to the refineries. It will increase the cost of the fuel produced by the refineries by that same $.30/gallon. Plus, think of the amount of diesel fuel the BNSF will consume in moving these rail cars of crude oil. I will bet that the “green people” will not be too pleased with all of that diesel fuel smoke going into our atmosphere.
Warren Buffett is a very large contributor to the current president who wants to get re-elected. Can most of you now connect the dots regarding the Keystone XL Pipeline cancellation? It is a political scam of the highest degree.
The Keystone XL Pipeline, when constructed, will move some 70,000 barrels per day (B/D) of tar sands crude oil from Canada to the US Gulf Coast refineries to be refined into fuels for US consumption at a transportation cost of ~$5/barrel. $5/barrel = $0.12/gallon. 70,000 B/D = 2,940,000 gallons per day (G/D) = ~1 trillion gallons per year (G/Y).
Our country is in real need of jobs to get its economy moving forward again. The Keystone XL Pipeline construction will take about four years to complete. Its construction will create good-paying jobs at U.S. steel companies making the pipe, heavy equipment manufacturers like Caterpillar, compressor and pump manufacturers, etc.
Canada currently supplies in excess of 20 percent of the crude oil refined in the U.S. today. The known reserves of the tar sands crude oil in Canada and the shale oil in Baaken area of North Dakota are five times the oil equivalents that exist in Saudi Arabia.
Berkshire Hathaway (think Warren Buffet) bought the Burlington Northern Santa Fe (BNSF) railroad in 2011. The BNSF owns most of the train tracks west of the Mississippi River. The BNSF handles the vast majority of rail car movements between Canada and North Dakota to the U.S. Gulf Coast refineries. They charge $250/day demurrage for rail cars sitting on their tracks waiting to be loaded. It takes thousands of rail cars to move this crude oil. The average rail car demurrage time is 10-14 days. This adds $2,500 to $3,500 cost to moving each of these rail cars. The average freight rate for movement of 25,000 gallon rail cars to the U.S. Gulf Coast is $.32/gallon, but one must add at least another $.10/gallon for the above noted demurrage costs. These rail cars need to be steamed to get the oil out of them when they arrive at the refineries. The oil in the pipeline arrives warm at these same refineries.
Cancellation of the Keystone XL Pipeline will make a lot of money for the BNSF, but it will add at least another $.30/gallon to the cost of getting the Canadian crude oil to the refineries. It will increase the cost of the fuel produced by the refineries by that same $.30/gallon. Plus, think of the amount of diesel fuel the BNSF will consume in moving these rail cars of crude oil. I will bet that the “green people” will not be too pleased with all of that diesel fuel smoke going into our atmosphere.
Warren Buffett is a very large contributor to the current president who wants to get re-elected. Can most of you now connect the dots regarding the Keystone XL Pipeline cancellation? It is a political scam of the highest degree.
