Senator Hoeven working to revive Keystone Pipeline Project
Last month President Obama vetoed legislation that would have allowed the Keystone-XL pipeline to be built from Canada through North Dakota south to Oklahoma, but the controversial pipeline may not be dead.
With gas prices taking a sharp rise over the last month, the idea of bringing more Canadian oil on to the market has some members of Congress looking to resurrect the Key Stone Pipeline. Senator John Hoeven is co-sponsoring legislation that would make an end-run around the President's veto.
Senator John Hoeven - (R) North Daktoa: "Rather than having the President approve it, we approve it in Congress. We have the constitutional authority to do that under the commerce clause. So the way we've written this new bill is that Congress should approve the pipeline"
Opponents to the pipeline worry that any leaks in the pipeline could endanger a key water supply in Nebraska and the type and method of oil extraction would contribute to greater greenhouse gasses. Those connected to the oil industry say that oil will come out whether the pipeline is made or not.
James Williams - WTRG Economics: "But the Canadian are going to produce more crude anyway. If necessary they will figure out a way to export the stuff to China and other parts of Asia."
Even if the oil went to China, that would likely lower oil and gas prices here, just by putting more oil on the world market, and Senator Hoeven has one more reason he supports the pipeline.
Senator John Hoeven: "Security, National Security. Not being dependent on Middle Eastern oil.
Jobs in building the pipeline and increased refining would be another benefit. Though just because the petroleum is reined here doesn't mean it would stay here.
James Williams: "We are exporting more refined petroleum than we are importing"
Small relief at the pump could just come from approving the pipeline and the message that would send speculators
Senator John Hoeven: "Tension in the Middle East, that's creating a risk premium on the price of crude oil because people are worried what might happen in the Middle East"
If prices at the pump hit the $4 mark by Memorial Day or $5 by the end of summer as some analysts predict the clamor for more Canadian Crude may become louder.