Monday, June 30, 2014

Canada Dumps Keystone Pipeline, Will Sell Their Oil To China

Article As sad as this fact is that we've now turned away cheap oil from Canada, the pipeline was also critically flawed. Not for safety, as the existing pipelines don't often leak, but because the pipeline was meant to EXPORT our oil to Europe after being refined at the exit port in either Houston/Galveston or Port Arthur.
 
It would have required the end of the Oil Export Ban, something which keeps our vehicles running and enables us to continue our comfortable "Easy Motoring" lifestyles a bit longer. Mr. James Howard Kuntsler may be a Liberal Curmudgeon obsessed with land use, but he's right about several things. Including the point that Americans have organized suburban life in such a way that it is somewhat expensive and troublesome to correct these land use failings into something more liveable after cheap energy becomes expensive, which it will. Without cheap Canadian oil, we should see our gasoline prices quickly rise another dollar, perhaps soon thanks to realization that Canada doesn't have to sell us ANY oil anymore. We violated the NAFTA treaty. And that means we can start paying the Brent Crude price, which is $20/bbl more. Isn't that nice? Thank the current president, and remember: you voted for this! Twice!
 
And now that New York State has announced they're continuing the fracking ban, but will continue to buy fracked oil and gas from other states to satisfy themselves, the Grasping Eastern Hypocrisy continues.
 
Mr. Kuntsler would do well to study home renovation rather than continually rant about how we've done it all wrong. His beloved Europe is full of cities composed of repurposed buildings, and it's really not that hard to turn a garage into a storefront or semi-pro workshop. Men who use their hands for a living already do this. As do hobbyists. Few turn their hobbies into income, rather preferring to take joy from building something the RIGHT WAY rather than how their boss insists and knowing it will bite them on the @55 later when it breaks/fails/doesn't-work. Whatever. Hobbies are about doing things right, for joy. A business based on quality work can sometimes flourish, if you've got buyers willing to pay for it.
 
He IS right that non-thru streets (cul de sac) neighborhoods minimize land for maximum home size and profits and prevent thru streets for public transit. You have to escape the neighborhood to get to a thru road with a streetcar or train on it. Of course, in the post oil world, you'll be unemployed because nobody has the fuel for a distant commute when all you're getting is minimum wage, or less. Ever heard of kickbacks? Very popular at fast food restaurants when I was young. You give your manager a couple bucks an hour or you don't have a job. Nasty as that. Honestly, I don't understand why more managers weren't murdered.
 
The solution to the cul de sacs is often to create an exit or two for cross traffic. Maybe this can be done via eminent domain and an abandoned or distressed property. Maybe some open area can be paved or given rails for a streetcar. Lots of old railway beds have had their rails removed and turned into hiking trails, however the land still belongs to the rail companies, in perpetuity (forever) so they can take it right back again if they so wish. Too bad if you liked "Iron Horse Trail" or built storage spaces or a house on the right of way. It belongs to them. They can demolish it with little warning and no compensation. You didn't know that, did you? You learn the most interesting things in professional GIS.
 
So Canada will get rich selling its oil to China, and probably Japan and other bits of Asia too. And we won't get to turn that oil into gasoline and diesel and kerosene, for a nice profitable markup that only the oil companies (and their European customers) will get to enjoy. Oh well. Fracking is going to step up to make the difference at the higher Brent Crude price. I know that the Democrats will continue to vote for the destruction of the Middle Class. That's their thing, after all. Make more poor people. Paying more for gasoline will certainly do that.
 
If you aren't getting educated on scooters and motorcycles, or very fit riding a bicycle, this is your warning shot to get on with it. Who knew that Canada would be pulling the trigger?

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