Denied Keystone Pipeline Has Alternatives

It’s claimed that the Keystone XL Pipeline System is needed for transporting synthetic crude oil and diluted bitumen from the Athabasca Oil Sands in North Eastern Alberta, Canada to multiple destinations in the United States. However, it’s argued that the transportation of petroleum from Canada’s oil sands would profoundly damage the environment. The pipeline passing through environmentally sensitive areas including the Ogallala Aquifer in Nebraska is a suspected threat to the vulnerable largest source of drinking water for the mid-west of America. Therefore, the embattled multi-billion dollar project carries a number of issues related to the safety and environment.

Yet, the political ingredient is major part of the play as the fear factors related to construction/operation of the system have been exaggerated by some groups indeed.

Mounting pressure from the opposing protesters made Obama rush his negative verdict on the pending application for the said pipeline between Alberta (Canada) and Gulf of Mexico to reach the US refineries through Nebraska. Obviously, the environmentalists including Greenpeace Canada are blamed for creating uncertainty about the oil sands.
Consequently, a major job opportunity for Americans and Canadians is doomed for now, nevertheless, President Obama has enhanced his chances to get re-elected for another term.
On the other hand, China has the best chance to get a bigger foothold in the oil sands. The tar sands oil development is already reaching Asia via Vancouver, B.C. The northern gateway pipeline project now in hearings is meant to ship more both to China and the US. But the irony is – major portion of Canadian oil (2.67 million barrels a day) is exported to the US at lower prices, while Eastern Canada imports about a million barrels of oil a day at higher world prices from overseas.
The U.S. Energy Information Administration (EIA) estimates that American oil consumption will increase 4 per cent between 2009 and 2035. The increase occurs despite highly optimistic assumptions about vehicle fuel efficiency and bio fuels. The more oil America produces domestically and imports from neighbours, the more it is insulated from dramatic interruptions of global supplies.
As the largest supplier, Canada is the most dependable source of oil — or was until Obama’s decision.
Currently, major portion of Canada’s crude exports go to the U.S., a figure that Prime Minister Steven Harper wants to reduce in his bid to make Canada a “superpower” in global oil markets. Canada this month began hearings on a proposed pipeline from the oil sands to the British Columbia coast, where it could be shipped to Asian markets.
Even if the project has been rejected on environmental grounds, demand for oil and jobs means an alternative probably would emerge for sure. It clearly means that through by-passing the US and distributing the oil directly via the Gulf coast; Canada oil companies would be selling their oil abroad at a much higher price.
Building another pipeline across northern BC would mean that the USA would have to then compete with Asian markets for our oil. The only fear will come from the Environmentalists who view the oil sands as dirty oil.
After the election, Keystone XL pipeline could be approved with changes in the Nebraska alignment. Alternatively, TransCanada may simply build the US parts of the line now, starting from the Bakken in North Dakota and Elm Coulee in Montana, cutting a new alignment deal with Nebraska, and leaving a connection to Canada for some later date. They have about $1.5 billion invested already, so they can’t afford to waste it.
Canada and the U.S. share both – “the problems and profits of the oil sands.” The companies on both side of the border are partners in the development, production, transportation and marketing of oil sands products. Bitumen and synthetic crude oil are shipped (mostly) via pipeline from Alberta to the U.S. The majority of these refined products are destined for American domestic markets, but the U.S. ships over 200,000 barrels a day back to Canada, making it the United Statesʼ second largest market for refined products.
The current rejection of the proposed pipeline has actually encouraged Canada to seek new energy markets on its own terms. According to Canadian Prime Minister Steven Harper, U.S. opposition to the Keystone project is "a wake-up call" that should encourage Canadian industry to develop new markets in Asia. It reflects, he said, "the degree to which we are held hostage to decisions in the United States, and especially decisions that may be made for very bad political reasons."
After Republicans forced his hand, politically motivated Obama opted to please the environmental hardliners whose votes he needs to guarantee his presidency for another four years. Yet, he played really well by leaving the door wide open for TransCanada Corp. to re-apply for a presidential permit, which could see the pipeline in operation by late 2014, because Canada and the US have much to gain from oil sands development.
Regardless of the US permit, the best solution is to refine the oil in Alberta, piping products like gas and diesel to the coast, which can then be shipped to China or anywhere else to the highest bidders. Certainly, local refining would further generate jobs and revenue for everyone.



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Poor Governance And The Mishandled Crises

President Zardari contends that the condition of state-run organizations like PIA, Railways and WAPDA have only weakened and not deteriorated. In the face of overwhelming evidence, he argues that several state-owned institutions are not just weak but collapsing under their own debt burden, shortage of fuel, power and financial resources. In reply to a question about the reopening of NRO cases, Mr Zardari said he believed it would be a “trial of the dead; it will be like trial of BB’s grave”. Indeed, this is an illogical argument just to keep him off the hook.

Surprisingly, President Zardari as head of the State continues to set an example of defying the Apex court. However, crippling of these entities clearly means-a severe blow to Pakistan’s economy to a level where dependence on foreign assistance becomes imperative.

Obviously, it’s part of a strategic plan initiated by the enemy to destabilise Pakistan. To some extent, the strategy is working as the foreign investment has already been scared away. Nevertheless, it becomes more painful, because some of the biased foreign media is always busy putting salt on the wounds to keep up the ugliness of anti-Pakistan momentum.

Usually, with the gradual erosion of manufacturing sector, the national financial health is bound to get compromised. Apparently, the presence of fiscal indiscipline invites more trouble for the “public sector enterprises” of Pakistan.

On the other hand, getting out of current sub-standard governance is surely a difficult scenario, but it’s not impossible. More worrisome is the ongoing damage to Pakistan’s image abroad; which remains one of the major challenges.

Furthermore, political insanity of the current regime including the politics of vendetta and exchange of rhetorical statements among the political parties is already going sky high and is highly thought provoking.

Diversion of Public focus and point scoring tactics: The issue of creating new provinces is being given too much unnecessary importance. The politicians have made it a habit of making issues out of non-issues in utter disregard of wishes of the late Father of Nation.

Warning about the dangers of provincialism and sectionalism, on March 21, 1948, at a public meeting, Mr. Jinnah said: “So what is the use of saying, ‘We are Bengalis, or Sindhis, or Pathans, or Punjabis.’ No, we are Muslims. Islam has taught us this, and I think you will agree with me, that whatever else you may be and whatever you are, you are a Muslim. You belong to a nation now; you have now carved out a territory, vast territory, it is all yours; it does not belong to Punjabis or a Sindhi, or a Pathan, or a Bengali; it is your….Provincialism has been one of the curses; and so is sectionalism --- Shia, Sunni, etc…Now I ask you to get rid of this provincialism, because as long as you allow this poison to remain in the body politics of Pakistan, believe me, you will never be a strong nation, and you will never be able to achieve what I wish we could achieve.”

The irony is - very recently, Prime Minister Yusuf Raza Gilani talked about creating a new baby “Seraiki province” out of Punjab, while MQM is way ahead in point scoring by suggesting new provinces including Saraiki, Hazaravi, Qabailistan, while PML N has no objection if the provinces are made on administrative basis instead of language or ethnic card.

However, PML N wants province of Bahawalpur - claiming more viable units for better administration.

Although, the idea of carving a couple of small provinces out of the large Punjab is not new, yet at this hour when the whole country is crying for resolution of other more pressing issues, the call for a Seraiki province appears to be only ‘politically motivated nonsense.’

Dreamers of new provinces must realise that the additional cost of new provinces will not be affordable. The overburdened masses are unable to fund the new provincial cabinets, chief ministers and Governors, more Secretariats, the expensive protocols, and the list is endless.

Currently, the country is facing far more serious problems of widespread hunger and shelter. The authorities fail to focus their attention on the welfare of the people. The regime is not interested in improving the condition of state-owned institutions.

Due to the mis-management, the country is already drowned in debt which is a bad news for many generations to come. It’s much economical to re-empower the Divisional Commissioners to look after the administrative matters with the help of District management under the re-delegated Deputy Commissioners.

Shamelessly, the ruling elite is busy enjoying sound sleep over the issues of the deteriorating Railways, PIA, the energy sector, the increasing unemployment and rising inflation. Addressing the issues regarding the vested interests is among the most favourites of the regime, as they can easily camouflage their failures and blunders.

After four years, what else are they waiting for to make a delivery to the satisfaction of the entire nation? It’s highly unimaginable.

Hyper-inflation, unprecedented price hike, deteriorating law and order, load shedding of electricity and natural gas, rampant corruption; increasing spread and intensity of mass poverty, joblessness; lawlessness; bad governance; sectarian violence, ethnic violence, bankrupt state enterprises; mounting debt; tense civil and military relations; defiance of the judiciary by the Executive are more than enough reasons to isolate the country from the international community.

Who to blame: A vast majority of voters becomes criminally silly when they cast their ballot without caring for merit. Resultantly, selfish and worthless candidates become parliamentarians and become part of so called democracy. How can one expect capable persons coming into parliament in this political environment of defective electoral system?

Present electoral system is not fit for the country under the circumstances where the negative influence and pressure from the capitalists and the strong feudal class pollute the independent opinion of the rural poor class - kept-uneducated for illegitimate purposes.

Though time consuming, yet motivating the electorate to be politically aware of its responsibility through education is right thing to do. Certainly, once the people begin to understand the need of capable people to run the government, things are bound to improve.

The people of Pakistan (rural or urban) deserve to be properly educated to elect a sincere and competent parliament and government. A road map prepared by the genuine representatives will bring peace and prosperity back to the nation.