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Canadians Want a Pipeline, Not a U.S. Campaign Issue

Posted: 01/28/2012 12:16 pm

Canadians dislike it when the American political system pays Canada no attention. This election season, Canada may face an alternative: too much attention.

In the midst of his victory speech after the South Carolina primary, Newt Gingrich inserted a shout-out to Canada. After blasting President Obama for halting the Keystone XL pipeline, Gingrich added:

"What Prime Minister [Stephen] Harper -- who, by the way, is conservative and pro-American -- what he has said is he's gonna cut a deal with the Chinese and they'll build a pipeline straight across the Rockies to Vancouver. We'll get none of the jobs, none of the energy, none of the opportunity. Now, an American president who can create a Chinese-Canadian partnership is truly a danger to this country."

The Northern Gateway pipeline does not terminate in Vancouver, but close enough, let it pass. The real news here is that Gingrich is hitting a theme that will be repeated and enlarged between now and November. Republicans see in Keystone a powerful political weapon against Barack Obama. The weapon
cuts especially sharp because it divides Democrats from each other. The pipeline -- and the oil sands that will supply the pipeline -- are anathema to Obama's wealthy environmentalist donors. However, the highly paid construction and refinery jobs that will be created by the pipeline are dearly desired by blue-collar Democrats whose votes Obama will need.

Gingrich hit this internal Democratic division hard in South Carolina:

"The president says, 'No, we don't want you to build a pipeline from Central Canada straight down with no mountains intervening to the largest petrochemical centre in the world in Houston, so we'd make money on the pipeline, make money on refining the oil and shipping the oil. Oh, no, we don't want to do that,' because Barack Obama is taking care of his extremist left-wing friends in San Francisco. They think that'll really stop the oil from heading out."

To keep the internal Democratic divide fresh, congressional Republicans are attaching pro-Keystone amendments to a succession of important administration measures: first, a payroll tax cut; next up, perhaps a big multi-year highway bill. Meanwhile, the presidential candidates will talk Keystone on the campaign trail as one more reason to defeat Barack Obama in November.

Canadians, however, want a pipeline, not a campaign issue. The harder the Republicans hit, the more fixed the Democratic position becomes. Obama's original intent on the pipeline issue appears to have been: postpone the pipeline issue until 2013, collect maximum donations from deep-pocketed donors, win re-election, then reconsider. Now, however, opposition to Keystone is hardening into the consensus view of Democrats in Congress. Harry Reid, the Democratic leader in the Senate, told reporters on Jan. 24:

"If we want to wean ourselves from foreign oil, why would we allow a pipeline to be built of 1,700 miles to manufacture petroleum products to be shipped overseas? That's the purpose of this."

For almost 50 years, American leaders have urged a continental energy policy that would integrate the U.S. and Canadian oil markets into one. The older folks may recall that back in the 1980s, Canadians opponents of the Free Trade Agreement with the US warned that the treaty might lock Canada into
just such a continental deal.

But that was then. Now, Canada is sitting atop a resource so huge and so capital-intense that it cannot be developed successfully unless it is developed for export. Now it is a Democratic senator who expresses hesitation about over-reliance on Canadian oil -- "foreign oil," as he calls it, to conjure up images of oil sheikhs and petro-dictators.

Historically, both U.S. political parties have taken turns advancing the U.S.-Canada relationship. It was a Democratic president, Franklin Roosevelt, who first extended an explicit U.S. security guarantee to Canada. It was a Republican, Dwight Eisenhower, who co-operated on the St. Lawrence Seaway and brought about a common market in defence procurement. The Auto Pact was signed under Democratic President Lyndon Johnson, the U.S.-Canada FTA under the Republican Ronald Reagan, and the acid rain problem solved under another Republican, George H.W. Bush.

It would be strange if that tradition came to grief under Barack Obama, a president whose election was so welcomed by so many Canadians. It would be even stranger if the weakening of the U.S.-Canada relationship proved one of the issues that helped a elect a Republican president in 2012.

This post previously appeared on NationalPost.com

 
 
 

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Canadians dislike it when the American political system pays Canada no attention. This election season, Canada may face an alternative: too much attention. In the midst of his victory speech after th...
Canadians dislike it when the American political system pays Canada no attention. This election season, Canada may face an alternative: too much attention. In the midst of his victory speech after th...
 
 
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HUFFPOST SUPER USER
logicanada
Blogger, radio co-host, writer, editor, voice-over
12:26 AM on 02/02/2012
Newt would bomb Canada.
HUFFPOST SUPER USER
vkmo
12:00 AM on 02/01/2012
When oil is available in Canada, US and in the surrounding oceans - why depend upon an unstable and distant Mideast for US's oil needs? US should help Mideast in drilling, transporting and processing the oil because US possesses the technology and that brings in additional revenue to US companies. Keystone must be built even if much of this oil after refining gets exported. Transit, refining, distribution etc all bring revenue to USA, which eases unemployment and helps the economy.
Genders
Love, Tolerance, Enlightenment
10:29 PM on 01/31/2012
Huh? the Chinese already bought a controlling interest in the tar sands.
http://www.reuters.com/article/2012/01/03/us-athabasca-idUSTRE8020OW20120103

The oil and refined products go on the world market. It's a couple hundred jobs for oil and probably thousands of lost jobs for green energy

It is by far the worst energy source every invented, with twice the CO2, and heavy metal pollution of Arab sweet crude.

Canada has great waste bio mass and wind resources.
07:22 PM on 02/01/2012
Thanks for the post. I tried passing this message on earlier in January, and wondered why Huff Po hadn't picked up the Reuters article. So many are deceived into thinking the oil to be transported by XL will end up as gasoline in their tanks..
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03:46 AM on 01/31/2012
This headline and other statements in this article are patently false. The fact is Canadians DO NOT want a pipeline. 60% of Canadians polled are AGAINST the pipeline being built. So the "Canadians" you are referring to can only be the current increasingly unpopular government in Canada and their Big Oil corporate donors and lobbyists. The fact us, most of us applauded Obama for dumping the pipeline. And we hope and pray it will never be built. Also, the deal with the Chinese is not some plan B. Harper has been planning this for years. And Canadians are fighting to make sure that other pipeline to the west coast never gets built either. Both these proposed pipelines are hugely unpopular here. Gingrich is an ass for using "Canadians" to make this an election issue down there.
01:45 PM on 01/31/2012
What pole Annette--one taken in the coffee shops of Toronto and Montreal? Surely it do not include AB, BC, and SK in the "poll" or it would not have your preferred outcome.
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artleads
Let's have a national retreat.
02:40 AM on 01/31/2012
"For almost 50 years, American leaders have urged a continental energy policy that would integrate the U.S. and Canadian oil markets into one. "

There should be integrated policy, and here's the opportunity to bring in China too. It may be one of the best opportunities yet to bring down greenhouse-gas emissions. But the intransigence of the international capitalist system is such that nothing will happen unless the people force it. There clearly should be no agreement about TransCanada pipelines in the US until such an integrated energy policy (aimed at reducing greenhouse gasses) has been enacted.
01:34 AM on 01/31/2012
Canada does not need a pipeline down to Texas where it will be refined and shipped on to China. Canada does not need a pipeline to Kitimat where the oil will then be shipped down to California or over to China. Canada needs to resume its moral position of not being involved in wars for oil, assassinations for oil and having puppet governments which will serve the interests of fossil fuels. Canada got off coal and it is time Canada realized it is not in Canada's interest to destroy boreal forest and it needs to stop letting American interests dictate to Canada.
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patrickwwalker
10:40 PM on 01/30/2012
Article 605 of NAFTA limits Canada's ability to ship to China. The Northern Gateway pipeline is being positioned as a way to create the illusion of sales to China when we all know the Americans will definitely lodge a NAFTA trade tribunal challenge. The Kitimat terminal is going to just ship the oil down to the West Coast provided the blockage by Alaskan oil can be overcome.
05:39 PM on 01/30/2012
Keystone Pipeline construction delayed (I say “delayed” because only a fool believes this pipeline won't be built), oil producers will now have to rely even more on Burlington.

Burlington Northern Santa Fe (which Buffett owns) moves oil to refineries.
01:48 PM on 01/31/2012
The BNSF railroad benefit claim is bogus. There is no single railroad that would benefit form this line not being built although it would likely repalce the rail out facilities that are under construction in North Dakota to move Bakken oil. to refineries Look at a rail map.
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HUFFPOST SUPER USER
Don McLeod
05:17 PM on 01/30/2012
Frum's lies do get me thinking on what are they hiding? The cost to make a barrel of Alberta oil is $60. The cost to sequester carbon from a barrel of normal oil is $30. Alberta oil would be twice that, $60. So the cost of an Alberta barrel is $60 plus another $60 to sequester the carbon. That makes Alberta oil a $120 a barrel cost in a $100 a barrel market. The market price for oil would have to get to $300 from $100 if all the costs were included for this "ethical oil" to make any business sense. So that is why all the name calling, red herrings and straw men. This is a flawed business case. So in addition to setting us up for climate disaster Harper, and Fraum his toady, is setting us up with an economy underscored with a flawed business case. That is worth hiding using liars like Frum.
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HUFFPOST SUPER USER
lrobb
Gold Standard = four paws and a tail
04:49 PM on 01/30/2012
David, what on earth are you doing here? As a moderate conservative and long time reader of Frum Forum I can assure you this is not friendly territory, even for common sense moderates. You are a civil engineer in an mechanical engineer's world. Mechanical engineers build weapons. Civil engineers build targets.

Whoever labeled Canadian oil as "foreign" obviously hasn't been watching TV for the last two decades. Half our comedians and slightly more than that of our stars come from somewhere around Vancouver.

The oil is part and parcel of Canada's financial brilliance which made it one of the only countries to ride out a worldwide recession with only minor effects. That would be because Canada had its fiscal come-to-Jesus moment in the 1980's and made "austerity" a household word when its definition was less disastrous than it is today.

We could learn a lot from Canada, including how to avoid the more egregious deficiencies of its health care system. Just remember, as the pipeline wends its way to the Pacific Ocean over solely Canadian soil, they offered it to us first.
10:48 AM on 01/31/2012
Are we talking about the same Canada? The one where everyone who needs medical help gets it, no exceptions? Every Canadian I ever knew retained his citizenship primarily so they could go home whenever they had a health care issue. Our health care system is an abomination compared to theirs.

As for the pipeline, you do realize they'll have to deal with their own very energetic and committed environmentalists right? Also that any oil sold out of Canada goes to the highest bidder - whichever land it traverses on its way to refinement. It doesn't become "ours" because we let it dredge through our environment. I'm always astonished at how childishly most Americans speak about the oil industry - as if all the foreign companies drilling our oil are doing it for our benefit, and if we just let more of them have more drilling rights, somehow they'll give it to us, rather than do what they do - sell it on the open market to the highest bidder. American oil doesn't belong to Americans. Hasn't for a long time. And this Canadian dirty sand won't belong to us either.
07:32 PM on 02/01/2012
This Canadian agrees with you.

Neither country should be welcoming of this toxic mess from the tarsands, and the eventual environmental disaster of a spill.

Those who think of this as the answer to their need for oil have no idea of the dirty, environmentally costly, processes this bitumen is subjected to before it can even be pumped through a pipeline.

There is a reason the development is not called the "oil sands" - it's not oil! In spite of our Governments P.R. effort to call it "ethical oil", it is what it is... a toxic brew.
04:15 PM on 01/30/2012
So the new P.R. strategy, (aimed at Europe of course, - because we Canadians know better) is "ethical oil" from the tarsands?. Are we going down the rabbit hole to the "wonderland" of nonsensical speak - you know... the language of the conservative southern money?
03:42 PM on 01/30/2012
There was absolutely no reason for the President to insert himself into a strictly business matter. What every CEO in the United States has learned from this is that his or her business can be sacrificed at anytime for strictly political reasons.
07:35 PM on 02/01/2012
A strictly business matter?.... You've heard of the Environmental Protection Agency have you not? You're also aware, I'm sure, that since the pipeline transverses a border, the State Deparment has to approve it? Sure you have..... And so, what is your real problem with the President of the United States exercising his responsibility for looking out for the safety all the citizens he represents?
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HUFFPOST SUPER USER
greenmonk
The Only Thing We Have to Fear Is Fear Itself
03:29 PM on 01/30/2012
"Canadians, however, want a pipeline."

Spoken like a true American turncoat. Has your green card come through yet David? All those lies you put into Dubya's speeches gave you great practice for HuffPo eh?

Who will benefit from this pipeline? Will consumer gas prices be cut in half? No?
But oil executives and lobbyists will make a bundle? Fantastic.

Canadians want investments in Solar, Wind, and other alternatives. We want to be world leaders in these new technologies, not helping to scrape out the last of the fossil fuels in dangerous ways, while paying ever higher prices for a rarer and rarer energy source and polluting the planet.
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HUFFPOST SUPER USER
army193
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laylahb
02:59 PM on 01/30/2012
The major stumbling block is the Nebraska route. It shouldn't take TRAP a millenium to figure out a slightly different route for this small part of a 2000+ mile pipeline.

There are major discrepancies about the number of new jobs--new temporary jobs. Is it 10,000 or 50,000 or 100,000 or just 5,000? Also, the last I heard, the overwhelming majority of the oil will end up going overseas, a lot of it to China and India. The US is not getting all of it, or even most of it. Finally, isn't the cost of refining the shale oil a lot higher than other types of oil? Would the price of gas really come down?
07:37 PM on 02/01/2012
The "oil" coming from the XL Keystone will never fuel your car or heat your home....... unless, of course, you live in China. Google Petro China Alberta tarsands.