Yeah... This is not good news if you live in Louisiana or Texas. That's a huge hit that state revenue is about to take.
If anyone thinks that the Keystone pipeline debate hasn't been a political ruse, then let me give you exhibit A: Obama uses Keystone as political cover to his base because they all think he is an environmentalist because of his refusal to sign the bill. The Republicans use Keystone as a means of telling their base that Obama isn't doing his part on energy production, that he is a commie who refuses to allow drilling. Meanwhile, back at the ranch, we've been pumping oil out of the ground at a record pace.....to the tune of 9 million barrels per day.....second only to the Saudi's. By March of next year we will pass the Saudi's in production and OPEC knows it. The Russians are puckered worse than anybody because oil and gas are their bread and butter....same for the Irani's and every other ME country who hates us. OPEC keeps saying they are going to cut production but, as you've seen, it hasn't happened. Why? They can't afford to cut production.....they are too dependent on the revenue it generates. Maybe not the Saudi's but the majority of the smaller OPEC countries would go bankrupt if they cut production.
Yes, pipeline XL debate is a friggin joke. Environmentalists are a joke. Pipelines are much safer than rail which is the way they're doing it now. It's also a joke that this will make us more energy independent. In the end, it should be approved because it's not bad for the environment (in fact, it's good for the environment) and it will help our refineries use that last bit of capacity. And the state takes a revenue hit because the oil guys cut jobs and stop exploration. This hurts the state economy as a whole. That is why low gas prices are bad. Do you think Pittsburg roots for lower steel prices? It's crazy to root for that.
Yesterday when I passed by the place where I usually buy gas it was $2.47. Today its $2.37. Dropped by a dime in one day. For anybody with a Sam's card its $2.22
