One of the more ridiculous arguments against the Keystone XL is that the pipeline is really just about exporting crude oil and petroleum products to China.  Let’s go to the facts:

Here’s a breakdown of the U.S. crude oil supply in 2011 – using data from the Energy Information Administration (EIA).  We see that 99.7 percent of the crude oil produced or imported into the U.S. was processed here.  We simply do not export crude oil in any significant way.  Nor is that likely to change.

According to the EIA, increased imports of Canadian oil sands crude oil would likely replace declining heavy crude imports from Mexico and Venezuela and Ecuador (the two OPEC members in Latin America).  Heavy crude imports from those countries are 900,000 barrels per day lower than their 2005 level... more »

John Felmy, API’s chief economist, talked to reporters this week about a looming federal “regulatory avalanche” that could impact the production of oil and natural gas from shale – and reduce the president’s State of the Union call for increased domestic production to hot air:

“On the one hand we have President Obama saying he supports natural gas development. … Within weeks of making this statement, the administration has done just the opposite, announcing several plans to further constrain development, reducing opportunities to produce our domestic supply of oil and natural gas and create and support these American jobs. We have reached a point where our industry’s efforts to produce the natural gas the president says he wants are being overwhelmed by an avalanche of acronyms. EPA... more »

New York Times op-ed columnist Joe Nocera’s piece on the “poisoned” politics of the Keystone XL pipeline decision is a must read. Better get to it right away, before some of the folks posting comments to  Nocera’s column descend on the Gray Lady with pitchforks and battle axes, demanding that the article be pulled down. Nocera:

Surely, though, what the Keystone decision really represents is the way our poisoned politics damages the country. Environmental concerns notwithstanding, America will be using oil — and lots of it — for the foreseeable future. It is the fundamental means by which we transport ourselves, whether by air, car or truck.

Nocera’s point about oil (and natural gas) is spot on. According to the Energy Information Administration, oil and gas will supply most of ou... more »

Politico reports (subscription required) this week on a new poll that shows a political edge for the president on energy and jobs – based on a memo from pollster/strategist Geoffrey Garin and Hart Research Associates colleague Allan Rivlin. Key points:

• On addressing domestic energy, respondents trust President Obama over congressional Republicans 48 percent to 38 percent
• On the Keystone XL pipeline, of respondents who said they hadn’t heard the arguments, 43 percent said the president was wrong to reject the pipeline while 32 percent agreed with him. Among independents, the split was 39 percent disagreeing with the president, 34 percent supporting.
• Of respondents who said they had heard both sides of the pipeline argument, the president was supported by 47 percent, opposed b... more »

For the state of Minnesota, the oil and natural gas industry currently means:

• More than 117,000 jobs – with an average salary of more than $67,000 for non-gas station oil and natural gas employees.
• $5.8 billion contributed to labor income.
• $11.1 billion contributed to the economy.

With sensible energy development and sound tax policies, here’s what the oil and gas industry could mean to Minnesota:

• 796 additional jobs created by 2015.
• 1,675 additional jobs created by 2020, supported by oil and gas industry operations in the state.

Energy works in Minnesota, with the men and women of the oil and natural gas industry playing a critical role in that state’s economy. See more, here.