Out with Keystone XL, In with Enbridge Northern Gateway.
When completed, the $7.9 billion Enbridge Northern Gateway Project, approved by Canada’s federal government on June 17, will consist of an environmentally safe, 730-mile oil pipeline. It will be capable of moving 600,000 barrels a day of Alberta oil to the pacific coast town of Kitimat, British Columbia, where a new state-of-the-art super tanker port facility will be built to ship the oil to thirsty Asian ports.
It was initially hoped that recent discoveries of massive new Canadian oil and gas reserves could benefit both Canada and the United States by building a safe and reliable pipeline to bring the oil to U.S. refineries in Louisiana and Texas. Building the proposed 1,179-mile Keystone pipeline promised, not just a huge new supply of reliable, clean, and affordable oil to U.S. markets, but the creation of up to 20,000 high-paying construction jobs. An additional 22,000 jobs economists predicted would have resulted from the broader economic stimulus the project would have generated.
You certainly can’t blame Canada. Over time, the United States will come to regret this decision. My best guess is that politicians will be the first victims. I can’t wait.
Warren Buffet rejoices as Burlington Northern will continue to move oil by freight. Since I own some “B” shares, I suppose I should be rejoicing too.
