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Direct actions like immediately cancelling the keystone XL pipeline. Imagine you're a company which builds refining and extraction infrastructure. The governm
by thepasswordis 4y ago
Direct actions like immediately cancelling the keystone XL pipeline.
Imagine you're a company which builds refining and extraction infrastructure. The government wants you to build more capacity to bring down the cost fuel, but 18 months ago. you watched them just straight up cancel a project which was already half finished.
Would you go for this? I wouldn't.
And you have a bunch of land lease contracts which allow you to extract oil. Without these contracts your business will collapse. The government has said that they won't give you any more until you use the ones you have. But again: they've spent the last 18 months cancelling projects, and talking about how we need to make a transition away from your business.
Do you trust that once you use up the remaining leases you have, that they're really going to give you more? I wouldn't trust that.
- ceejayoz 4y ago> Direct actions like immediately cancelling the keystone XL pipeline. It's unlikely an unfinished pipeline for export purposes had a significant impact on current gasoline prices. https://apnews.com/article/fact-checking-895299166310 https://apnews.com/article/fact-checking-895299166310 "Experts tell The Associated Press that the Keystone XL pipeline cancellation isn’t affecting what’s happening in the oil market today. It was never operational when it was shut down, and was not slated to go into service until 2023, according to a press release from TC Energy, the company constructing the project." "Even if the Keystone XL pipeline had been completed, the amount of oil it was designed to transport would have been a drop in the bucket for U.S. demand, experts noted. The U.S. used nearly 20 million barrels of oil a day last year, while global consumption of oil was near 100 million barrels. The pipeline would have contributed less than 1% to the world supply of oil, according to AP reporting."
- thepasswordis 4y ago
- ceejayoz 4y ago
- willcipriano 4y agoGasoline was expensive before the war.
- dfxm12 4y agoYes, because of a worldwide pandemic. https://wtop.com/national/2021/10/covid-19-drives-gas-oil-prices-to-their-highest-in-7-years/ https://wtop.com/national/2021/10/covid-19-drives-gas-oil-pr...
- willcipriano 4y agoPandemic started in December 2019, gas prices started getting high in early 2021 after keystone was cancelled and the Biden admin began slow rolling drilling permits.
- ceejayoz 4y agoThe start of the pandemic reduced gas demand. The returning to normal(ish) phase - in late 2020, early 2021 - increased it.
- willcipriano 4y agoIf things returned to normal, then you can't really blame the pandemic. When this thread started the war in Ukraine was the issue.
- ceejayoz 4y ago> If things returned to normal, then you can't really blame the pandemic. We're still dealing with supply chain issues, and will for a while. The idea that you can turn the economy down 30% and back up 30% in less than a year with no lasting effects is silly. > When this thread started the war in Ukraine was the issue. Yes. Starting from an already-disrupted screwed-up economic baseline certainly doesn't help.
- recyclelater 4y agoYou are talking past parent. They are saying the cancellation is a signaling mechanism that gives them no confidence to build out new refineries and other infra that is required to lower prices.
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