OKLAHOMAN EDITORIAL: Cushing-to-Gulf pipeline is indeed a 'no-brainer'
February 29, 2012
Posted by Matt Dempsey email@example.com
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EDITORIAL: Cushing-to-Gulf pipeline is indeed a 'no-brainer'
February 29, 2012
Feb. 29--U.S. Sen. Jim Inhofe was spot on in saying construction of an oil pipeline from Cushing to the Texas Gulf was a "no brainer." Heck, even the Obama administration agrees it makes sense -- no small thing.
Inhofe, R-Tulsa, and others realize that there is a huge glut of crude oil at the supply hub in Cushing, and that being able to more quickly move it to refineries in this country benefits U.S. consumers by making more domestically produced oil available, instead of having to rely so much on foreign product.
But TransCanada's announcement Monday that it plans to build the Cushing-to-Texas Gulf portion of the Keystone XL pipeline carries great news for Oklahoma in particular, because it will mean perhaps 1,000 or more temporary construction jobs -- and soon. TransCanada says it has negotiated most of the voluntary easements in our state.
Mike Terry, president of the Oklahoma Independent Petroleum Association, notes that the Cushing glut has served to tamp prices of West Texas Intermediate crude, which translates into lower gross production taxes for the state and less revenue for Oklahoma royalty owners and producers. So unclogging the hub will show up in individual and state coffers.
The Obama administration last month put the brakes on the full Keystone XL pipeline from Canada to the Gulf, saying more vetting was needed. That was clearly a nod to environmentalists -- the pipeline had been in the works for years. The greens are lathered up about Monday's endorsement by the administration and vow to fight this leg of the pipeline. One group, Friends of Earth, said it "will continue to work to ensure that no part of this project is approved -- not now, not ever."
Presumably they'll ride bikes to the protests. If not and they need to drive a car instead, they should be thankful the Cushing-to-Gulf pipeline is a go.