Blog ››› ››› JOCELYN FONG
A Fox Nation headline shouts: "RUSSIA HIRES EXXON MOBIL TO GET OIL OBAMA DOESN'T WANT." The headline accompanies a Breitbart.com post of the same title by AWR Hawkins about ExxonMobil's deal to develop Russian oil resources in the Arctic. The post is only a few paragraphs long but it gets an impressive number of things wrong. Let's take them one at a time. Hawkins begins by stating:
Here's the picture--Alaska contains a wealth of oil both on land, in ANWR, and off shore in its outer continental shelf. But President Obama and the Democrat party are staunchly opposed to allowing us to avail ourselves of it.
In fact, President Obama is expanding offshore drilling in the Arctic. You don't have to take it from me -- the VP of Shell Alaska has described the Obama administration as having responded "favorably" to its drilling plans. Meanwhile, the Government Accountability Office questions whether regulators will be able to provide "sufficient oversight" of Arctic drilling operations given the "environmental and logistical risks associated with the remoteness and environment of the region." Hawkins continues:
And via the Keystone Pipeline, Canada could supply nearly 1,000,000 barrels of oil a day that we're not getting from Alaska, but Obama and the Democrats have stopped that too. As a result, the price we're paying per-gallon for gasoline is steadily climbing, and other countries are choosing to go where we won't for oil. Thus the oil Canada was going to sell us via Keystone will now go to China....
No serious energy analyst would agree that the administration's decision to delay Keystone XL is why gasoline prices have risen. And once the pipeline was up and running at full capacity in a decade or so, the impact on gasoline prices would be a matter of pennies, if anything. As for U.S. oil production, due to the scale of the global market, "we probably couldn't produce enough to affect the world price of oil," in the words of Ken Green from the conservative American Enterprise Institute.
Hawkins claims that the U.S. will be missing out on Canadian oil in the absence of the Keystone XL pipeline, but as FactCheck.org has noted, "There's nothing to prevent more Canadian oil from coming into the U.S. right now" since "existing cross-border pipelines already have much more capacity than they are using" and will have excess capacity until at least 2020. An analysis conducted by the oil consulting firm EnSys for the Department of Energy found that U.S. oil imports are "insensitive" to "whether or not KXL is built and projected that in 2030, the amount of oil we import from Canada would be the same with or without the pipeline. Hawkins again: