Keystone XL Pipeline Means Cheap Oil for China

Today's Reading

Today's Reading, 2014_11_17 - Keystone XL Pipeline Means Cheap Oil for China

China and Canada have begun trading between each other with Chinese yuan. That includes China being able to buy Canadian oil with Chinese yuan instead of American dollars (the "petrodollar"). This makes buying oil much cheaper for China.

China has also been investing in Canadian tar sand, oil extraction and transport. If the Keystone XL pipeline deal doesn't come through, China wants alternatives to get Canadian oil.

China really wants Canadian oil.

If the Keystone XL pipeline is constructed, crude oil from Canadian tar sands will be piped down to the Gulf of Mexico. Once the crude oil reaches the Gulf, China can then take delivery of the oil in a Free Trade Zone without having to pay any taxes or tariffs on it.

The politicians tell us that the pipeline will create hundreds of thousands of jobs for Americans yet, from what I've read, the more realistic number is a couple thousand jobs.

And most of those jobs will be eliminated after the pipeline is built, as in fewer than 100 permanent jobs will be left.

For the US to truly recover, somewhere around 300,000 new jobs - good paying, full-time, permanent jobs, not recycled, part-time, minimum-wage, temporary jobs - have to be created each and every month.

Cheap oil for China and paltry jobs for Americans, are just two of the downsides to the Keystone XL pipeline.



Reading Material

Wikipedia.org, What is a Free Trade Zone?
http://en.wikipedia.org/wiki/Free_trade_zone

Switchboard.nrdc.org, Anthony Swift: "Keystone XL is a tar sands pipeline to export oil out of the United States"
http://switchboard.nrdc.org/blogs/aswift/keystone_xl_is_a_tar_sands_pip.html

Forbes.com, James Conca: "What is Wrong with the Keystone XL Pipeline?"
http://www.forbes.com/sites/jamesconca/2013/08/25/what-is-wrong-with-the-keystone-xl-pipeline/

NationalGeographic.com, David LaGesse: "Is Canadian Oil Bound for China via Pipeline to Texas?"
http://news.nationalgeographic.com/news/energy/2011/08/110819-keystone-xl-canadian-oil-and-chinese-market/

Washington Post, Juliet Eilperin: "The Keystone XL Pipeline and its Politics, Explained"
http://www.washingtonpost.com/blogs/the-fix/wp/2013/04/03/the-keystone-xl-pipeline-and-its-politics-explained/

NewsMax.com, Courtney Coren: "China Would Get Alberta Oil if Keystone Pipeline Blocked"
http://www.newsmax.com/Newsfront/Keystone-Canada-China-oil/2014/03/24/id/561277/



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