Jobs and oil independence for Americans not on his agenda….
“I’ve already said I’m happy to look at how we can increase pipeline production for U.S. oil, but Keystone is for Canadian oil to send that down to the Gulf. It bypasses the United States and is estimated to create a little over 250, maybe 300 permanent jobs. We should be focusing more broadly on American infrastructure for American jobs and American producers, and that’s something that we very much support.”
— President Obama, interview with WDAY of Fargo, N.D., Feb. 26, 2015
President Obama, seeking to explain his veto of a bill that would have leapfrogged the approval process for the Keystone XL pipeline, in an interview with a North Dakota station repeated some false claims that had previously earned him Pinocchios. Yet he managed to make his statement even more misleading than before, suggesting the pipeline would have no benefit for American producers at all.
The Fact Checker obviously takes no position on the pipeline, and has repeatedly skewered both sides for overinflated rhetoric. Yet the president’s latest comments especially stand out. Let’s review the facts again.
As we have noted before, when the president says “it bypasses the United States,” he leaves out a very important step. The crude oil would travel to the Gulf Coast, where it would be refined into products such as motor gasoline and diesel fuel (known as a distillate fuel in the trade). Current trends suggest that only about half of that refined product would be exported, and it could easily be lower.
A report released in February by IHS Energy, which consults for energy companies, concluded that “Canadian crude making its way to the USGC [Gulf Coast] will likely be refined there, and most of the refined products are likely to be consumed in the United States.” It added that “for Gulf refineries, heavy bitumen blends from the oil sands are an attractive substitute for declining offshore heavy crude supply from Latin America.” It concluded that 70 percent of the refined product would be consumed in the United States.