Top Energy Stories of 2011: #4) The Keystone pipeline legislation.

Top Energy Stories of 2011:

#4) The Keystone pipeline legislation.

By Keith Heyde

What do you get when you mix a 5000 km long pipe project with a gridlock congress? A lot of news, confusion, and passionate ranting is the answer.

Although the pipeline itself has been an enviro-political issue since 2008, a recent political scuffle in Washington has propelled this oil pipe to energy superstardom.

If you’re like me, when you heard “Keystone Pipline”, you were probably thinking about some type of beer drinking invention made popular by some college kids who are now marketing their product. However, this is not the case.

The Keystone Pipeline is actually an oil transmission line connecting the Athabasca Oil Sands in Alberta, Canada to refineries and consumers within the United States. Currently, the pipeline extends within Canada and is owned by TransCanada. Although there have been action against TransCanada accusing them of diminishing Canada’s energy security, it has been overshadowed by the political maelstrom within the United States.

The pipeline’s proposed expansion into the U.S. would extend the current system, linking the Athabasca Oil Sands in Alberta all the way to the Gulf of Mexico. This expansion would cost Billions of dollars but also, in theory, create a ‘local’ energy source for the growing U.S. energy demand.

However, controversy has erupted over the environmental implications and sustainability issues surrounding the pipeline. The Keystone expansion (also known as Keystone XL) would have dramatic environmental impact affecting numerous ecosystems and wildlife populations.

Proponents of the Keystone XL plan argue that the pipeline will decrease energy costs and mitigate reliance on Middle Eastern oil sources. Additionally, they claim that jobs will be created as a consequence of the project.

Opponents of the Keystone XL plan attest that the pipeline only fortifies reliance on fossil fuel sources. As well as being detrimental to the climate, this reliance does not support sustainable energy development and creates an artificially low energy price. Furthermore, they claim that the pipeline will cost billions of dollars and only create temporary, construction based jobs.

Politically, President Obama has been leaning against the creation of the Pipeline, but rather than downright rejecting it he has postponed the decision until 2013. Despite congressional republicans attempting to force the issue with a December 13^th bill containing the Keystone Pipeline as an amendment to a bill, President Obama has stuck to delaying the Pipeline decision until a further date.

The issue is hot, and it is still growing. Although it has been a top story of 2011, it is certainly not over. How do you feel about the pipeline? Do you want it? Let us know.

And as always check back into EnergyGridIQ for all of your energy news and thoughts.