Energy Security, American Jobs, And The Keystone Xl Pipeline
Thank you, Mr. Speaker. Today, we are going to discuss energy security, American jobs, and the Keystone XL pipeline. At this time I yield such time as he may consume to the chairman emeritus of the Energy and Commerce Committee, Mr. Joe…
Thank you, Mr. Speaker.
Today, we are going to discuss energy security, American jobs, and the Keystone XL pipeline.
At this time I yield such time as he may consume to the chairman emeritus of the Energy and Commerce Committee, Mr. Joe Barton of Texas.
(Mr. BARTON of Texas asked and was given permission to revise and extend his remarks.)
Thank you, Mr. Barton.
At this time I would like to yield such time as he may consume to the other gentleman from Texas, Judge Carter.
I thank the gentleman from Texas. I do appreciate your insight and your support.
Let me take this opportunity--we've had two speakers already that have talked in support of the Keystone pipeline. Now let me give kind of a tutorial of what we're talking about. It is a 1,700-mile pipeline from the oil sands of Alberta coming down through Montana, South Dakota, Nebraska, Kansas, and as our two previous speakers said, then down into southeast Texas and Louisiana, where most of the refineries are. It will break off at different points in Kansas and then also to the east, to other refineries. But there are very few refineries in the Midwest. So most of the refineries will then refine this into a variety of fuels--mostly for our automobiles, and then diesel and aviation fuel as well. It will produce 700,000 barrels per day once it's built.
What does that mean to us by way of energy security? Well, first of all, we import on a daily basis almost 900,000 barrels of oil per day from Venezuela. So this one pipeline, starting in Canada, ending in Texas, would nearly offset 100 percent of what we import to this country from Venezuela. Our reliance on OPEC oil--our major OPEC exporter to us is Saudi Arabia, where they export around 1.2 million barrels per day. Now when this is fully built and the oil sands are really humming, they think they can get up to 1.1 million per day through this pipeline.
That then would nearly offset what we have to buy from Saudi Arabia. We
use about 19 million barrels per day in the United States. We produce domestically within the United States about 8\1/2\, flirting with 9 now with the Bakken finds in North Dakota. So if we can import from just miles over the Canadian border, we go a long way to making us more secure.
Now, on a different hour we can maybe talk about other resources we can use in transportation fuels so we can be 100 percent secure, not relying on foreign countries, especially like Venezuela.
But when we talk about what is on the minds of most Americans, and that's jobs, yes, the unemployment rate has finally dipped below 9 percent. Of course, you have to put an asterisk because 300,000 of that in the last month were just people who were chronically unemployed and have given up and are no longer counted. So the reality we saw in a recent poll, I think it may have been Gallup, said that the real unemployment rate is somewhere around 11 percent.
They want to see Congress do something to create jobs. They want to see us stop bickering about things, probably like Keystone pipeline that seemed to be for many people a no-brainer, energy security and American jobs.
So let's talk about the jobs. Obviously, in a 1,700-mile pipeline, you will need a lot of labor to build that, especially within the 2- year timeframe that they have now. So all estimates, except for one produced by the environmental extremists that are in opposition done by a Cornell University professor that says it won't create any jobs; and, besides, if it did, they are temporary and dirty--that logic befuddles me because all construction jobs are temporary. So, obviously, he doesn't like construction jobs. That's the only thing I can think of. You know, we don't count construction jobs.
Well, as mentioned by Judge Carter, there are labor agreements. The people, this 20,000 that is estimated to be the direct jobs, those people who are directly working on the pipeline from Teamsters to Earth-movers to sheet metal workers to pipe fitters to laborers, to the electricians that will build all of the electronics for the pump stations along the way, this will create 20,000 jobs. And those are just direct jobs. As we heard from Judge Carter that doesn't count the spinoffs that occur in the refinery expansions, the extra jobs that will be needed to handle the extra oil in the refineries, and the suppliers.
In fact, there is a business just south of my district in Auburn, Nebraska, that makes parts for oil refineries. They will have increased orders in people going back to work.
It was interesting, just yesterday there was an article online from a Fox affiliate in Little Rock, Arkansas, who had to lay off 500 people. Why? They make pipe. They make pipelines, and they are the fabricator of metal going into the pipelines. They have an order from TransCanadian pipeline for this project. Because this has been stalled out and they don't need to fill an order because there is no order to fill yet, they have laid off 500 people. They are projecting that unless this gets started, they will have to lay off more people, and it will probably be within the next week that they will lay off a few hundred more people. Think of that, being laid off--laid off your job on the eve of Christmas.
So these folks that say there's no jobs created, tell that to the 500, and maybe the 800 total, that are laid off just at one pipeline- making facility in Arkansas that their jobs are worthless; so we don't care if they are laid off. That's the message that I hear from those that are opposing this pipeline, because it is providing hydrocarbons, and they just want to flip the switch.
Now, let's talk about this pipeline. I want to rebut some of the arguments that I've heard lately about it.
Number one is that we are rushing it. We are rushing this pipeline. Well, number one, this pipeline application was filed 3 years, 3 months ago. The average time it takes to permit a pipeline--transcontinental, coming over our border--has been around 18 months. So we're double the time. More than double the time that it usually takes. Why? Well, because of the environmentalists. The far left of the environmental movement has raised environmental concerns, mostly due to the fact that it is a heavy crude that will come in from Canada, which confuses me because Venezuela is an equally heavy crude, but somehow that's okay. Well, okay with some, but not with me.
So to engineer this pipeline, what the pipeline company has to do is provide with their application an environmental study, and they have decided that since there are environmental concerns that they are going to over-engineer this pipeline; they will, in sensitive areas, like coming through Nebraska where it would have crossed the Sandhills, but our Governor has talked them into moving it off of that sensitive ecosystem in the Sandhills. So when they move it 50 miles to the east in Nebraska, they will double-case it. They said they will put it in cement.
Another item that is over-engineered above and beyond pipeline standards is pump stations. Why are pump stations necessary? Well, you've got to pump it through the pipeline. Even though it goes north to south, you still need pressure in there to move it. The pump stations usually are several hundred, a couple hundred, miles apart. They have agreed to put more pump stations in. Why is that important? Well, it is the way they determine if there's a leak. So by moving the pump stations closer, they can, in a more timely fashion, determine if there's a leak.
Also, they have promised in areas where there is water and sensitivity that they will put employees permanently in that area. That is unique to any pipeline in the United States.
The unwritten standard of the industry is if there is a decrease in pressure, they get there within 4 to 5 hours. This pipeline has not only moved the pump stations closer so they can read it earlier in time if there's a drop in pressure, i.e. a leak, but they will have somebody close enough that they could be there within 1 hour. That's five times better than the national unwritten standard.
So the fact that this will cause environmental harm is just wrong, other than the fact that it's an oil and it's going to be refined and there will be carbon emissions from that. But the point I want to make is the refineries in the United States are state of the art in pollution technologies. Our refineries in the United States, in refining oil to our fuel, emits far less carbon in that process than any other refineries around the world. So I would ask the environmentalists that are opposing this that if they send the oil over to China, why wouldn't you want it refined where it's going to emit the least amount of carbon in the manufacturing process?
Now, because of the long delay, I introduced a bill in the springtime to set a deadline of November 1. The environmental studies had already been done. The supplemental environmental study on top of the first one was already done and was just sitting there. So we set a date. Some of my friends on committee, like Mr. Sullivan from Oklahoma, and I picked an arbitrary date--well, not too arbitrary. It gave them enough time to get through it, go out for more public comment, then 60 days after that to make a decision, and that would be November 1. We passed that bill in the House, we sent it to the Senate, and Harry Reid refused to bring it up on the floor.
During that time, the State Department said that's unnecessary because we're on track to have the decision made on this pipeline by December 31--by December 31. And they first told us that March 15. And I'll read from you a U.S. Department of State Diplomacy in Action, March 15, 2011. It says the U.S. Department of State expects to make a decision on whether to grant or deny the permit before the end of 2011. April 15, 2011, they also state publicly and to our committee, the U.S. Department of State expects to make a decision on whether to grant or deny the permit by the end of 2011. So March they say that, April they say that.
And then after this House passes with overwhelming support, bipartisan support, nearly 50 Democrats joining us--the State Department says, and here is their memo to us, and it says, we don't need to have a bill to permit the Keystone XL crude oil pipeline by November 1, 2011. The bill is unnecessary because the State Department has been working diligently to complete the permit decision process for the Keystone
XL Pipeline and has publicly committed to reaching a decision before December 31, 2011. They are diligently working, July 25, diligently working, and will have the decision by December 31.
This is important. Why? Because the President of the United States, just 2 days ago, stood up and said, if I have to sign a bill with Keystone Pipeline in it, you are rushing us and may be forcing the State Department to deny it because they don't have enough time. Bull.
Their own documents from April, March, and July have said they've been working diligently and will have the decision. And by the way, if the Keystone bill is passed--it passed out of the House overwhelmingly 2 days ago. It's sitting over in the Senate with the unemployment insurance bill and a myriad of other bills that have been put together. So, really, from what they've told us already, they are already ready. They can make a decision right now. They've been studying it since April. They're done. They know what the decision is.
Do you know why the President said that? And this is what is probably most disappointing to me: politics. Yeah. Election year politics. The environmentalists have made statements like, this is where the President can get his environmental mojo back if he denies the permit. That's what one environmental group said. The others have just challenged him to kill this pipeline.
The issue is the President does not want to make a decision between his environmental groups that flat told him, this is a quote, a direct quote that has been published in The Wall Street Journal, The Washington Post, and many other newspapers. They told him, we will not mobilize our environmentalists in the 2011 election if you approve this pipeline. Amazingly, it was only days after that threat was made to the President that he decided that he will not make a decision until after the election.
Folks, politics--energy politics--is now causing layoffs in Arkansas right before the holidays. There's people sitting in my union halls in Omaha, Nebraska, ready to go to work, but the President says, I'm not even going to tell you if you're going to go to work on this until 2013.
Mr. President, I respectfully ask that you act on this permit, put aside election year politics, make a decision on the merits of this project, and listen to your agencies. The State Department chose this route as the most environmentally safe route. This will employ 20,000 people; secondary, tertiary jobs in support, perhaps another 100,000. If we started using all of our resources in the United States, we could employ millions. Let's do the right thing for this country.
I want to ask my friend from Tulsa, Oklahoma, the vice chairman of the Energy and Power Subcommittee, if he would brief us on his feelings about Keystone Pipeline.
Thank you, Mr. Sullivan, and I appreciate your support on this issue.
At this time I'd like to recognize the gentleman from Illinois, one of the new phenoms on our Energy and Commerce Committee, Mr. Kinzinger.
I thank you for your support for this effort for American jobs.
At this time I'd like to recognize another one of our freshman phenoms on the Energy and Commerce Committee, the gentleman from Virginia, Morgan Griffith.
I thank the gentleman from Virginia.
I'd like to just take the last couple of minutes to close here.
What we have is a $7 billion infrastructure project for the United States of America that will immediately employ 20,000 workers. It's a 2-year-plus project. It will add--then, that's not even counting the spin-off jobs to support and to expand the refineries, the
permanent jobs that will be created there.
So I ask the people that are watching here today and the American public to let Congress know, to let the President know that it's important to you that we create jobs in America. This project, when approved, would start the next day moving ground, employing people.
Let's do that. Let's get America back to work. Let's help create American jobs.
I yield back the balance of my time.