Over the e-mail Transom: Keystone XL Pipeline Statement

Russ Steele

This insider information was sent to me by a reader of this blog and an old friend.  I am posting it for your evaluation.  Does this claim by Mark Garnett, President, Garnett Wood Products hold water?

As I service the oil and natural gas industry with construction mats, I am very, very familiar with the absurdities surrounded the Obama Administration’s stonewalling re: the permit for the XL Pipeline.   What most people who do not have daily knowledge re: what is going on in the oil industry don’t know is that a lateral crude oil pipeline from the Bakken Shale Oil Field in ND is a planned part of the XL Project.  This 75 mile long planned feeder line to the main XL crude oil pipeline is designed to replace the rail transport- in tank cars- that is currently moving 400,000 barrels of domestically produced crude oil, per day, from ND to the Gulf Coast of the US.

The ‘unbiased’ news media in the US has been careful to keep the American public completely uninformed re: the fact that a tremendous volume of American crude oil would be shipped in the XL Pipeline as well.

In addition, moving that volume of crude oil by rail is extremely expensive and, as compared to moving crude oil via a pipeline, more dangerous to the environment.  It is  exponentially more likely for an oil spill to occur due to a train derailment than from a break in a pipeline.   And, the carbon footprint from using several thousand diesel locomotives to move crude oil by rail from ND to Houston, TX is 25 times larger than the carbon footprint from moving that same oil via a pipeline.   There is no valid argument to be made that we are ‘saving the environment’ by delaying the XL Project.

So, why is this really happening?   There are 20,000 construction workers ready to go to work and, as the gentlemen from Valero stated in his letter, there is a ready market for the oil that the XL Pipeline is to carry- both from Canada and from the US- so what is really going on behind the scenes?

There is an entire subculture of elite people in the US and in the rest of the world who have a vested interest in the delay or cancelation of the XL Project- a subculture that I refer to as the ‘$7 Per Gallon American Gasoline Club’.

The BNSF RR, controlled by Berkshire Hathaway has a monopoly re: moving the oil by rail from the Bakken Oil Field- that ND oil field, with proven oil reserves that rival those of Saudi Arabia, is serviced only by the BNSF RR.

The alternative energy industry in the US, into which the Obama Administration has poured millions of taxpayer subsidy dollars, is in favor of expensive fossil fuels.   To expand in the short term, the solar and wind energy industries need fossil fuels to increase in price.  And they are major contributors to the Obama Administration.

All of the other oil producers in the world have a vested interest in the delay or cancelation of XL.  They want America to continue its imported oil addiction.   And, they have rivers of money with which to support President Obama’s re-election campaign.

There are many, many other entities which are a part of ‘$7 Gas Club’- and what is best for the average American taxpayer is of zero concern to them.   All the American news media needs to do- and which it absolutely will not do- is to identify them and follow their money to the Obama Campaign.

Best Regards.

Mark Garnett


Garnett Wood Products

11400 Jess and Betty Garnett Avenue

PO Box 525

Brandsville, MO 65688


About Russ Steele
Freelance writer and climate change blogger. Russ spent twenty years in the Air Force as a navigator specializing in electronics warfare and digital systems. After his service he was employed for sixteen years as concept developer for TRW, an aerospace and automotive company, and then was CEO of a non-profit Internet provider for 18 months. Russ's articles have appeared in Comstock's Business, Capitol Journal, Trailer Life, Monitoring Times, and Idaho Magazine.

2 Responses to Over the e-mail Transom: Keystone XL Pipeline Statement

  1. sean2829 says:

    Let me begin by going on record that the Keystone pipeline ought to be built and I suspect it will. But there is another side to this. The oil from Canada and the northern great plains has created a bit of a oil glut in middle north America. That’s why the West Texas Intermediate (WTI) price of crude is ~$105 a barrel while “Brent” crude (the open market world oil price) is ~$125 a barrel. When Keystone is built, it will allow for the low cost movement of that oil to the gulf coast and the refineries that process heavy crude. (Currently that heavy crude comes from Venezuela but the Canadian oil supposedly will run fine there as well.) Also keep in mind that the US in the past year became a net exporter of refined oil products. Once the Canadian oil can reach the gulf economically, I expect the difference between WTI and Brent prices to narrow considerably and a lot of those refined products will show up on the world market. And since the Panama Canal should be able to accommodate much larger vessels after 2014, a lot of those refined products will end up in the far east (and in California for that matter). So I would expect world oil prices to drop a little with more another source but middle America may actually see prices rise as a result.

  2. Dixon Cruickshank says:

    makes sense to me – all of it

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