It looks increasingly likely that President Obama is going to cave into the oil interests promoting the pipeline to move oil mine in tar sands of Canada to the Port Arthur Free Trade Zone in Texas.
One of the prime selling points of this scheme, which has environmentalists all in uproar will no doubt be that the pipeline is needed for energy security. So what is going on? My good friend Pierre Sprey's answer may surprise you. He has graciously given me permission to distribute it.
Peak Oil or Peak Profits?
email from Pierre Sprey, 5 September 2005
A new Oil Change International report has injected a breath of fresh air into the endless stream of media BS about peak oil, declining US oil production, disastrous dependence on foreign oil, need for new offshore drilling, blah, blah , blah, blah…. The report's charts show that our domestic oil production has been rising markedly since 2008. The excess domestic oil and the new Keystone pipeline oil are unneeded for the domestic market and will go largely to exports to fatten Big Oil's bottom line.
The most interesting conclusions are:
- “Gasoline demand is declining due to increasing vehicle efficiency and slow economic growth;
- Meanwhile the surge in new shale oil production in North Dakota and Texas has led to the first rise in U.S. oil production since 1970 and is forecast to continue for some time;
- As a result of stagnant demand and the rise in both domestic and Canadian oil production, there is a glut of oil in the U.S. market.
Refiners have therefore identified export markets as their primary hope for growth and maximum profits.
Continue reading “Chuck Spinney: Big Oil Screwing US for Peak Profits”