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IPFS News Link • Oil

KeystoneXL Pipeline Could've Weakened OPEC's Bargaining Position

• By Robert Rapier

The U.S. can't afford to have policies that are hostile to North American energy companies

The U.S. is rapidly depleting our Strategic Petroleum Reserve (SPR) and is now begging Saudi Arabia and OPEC not to cut oil production. This is a result of the unintended — but predictable — consequences of U.S. energy policy that is often hostile to our domestic energy companies. Our energy policy is often undermined by well-meaning but naïve people. They fought for years against the on-again, off-again Keystone XL pipeline, which was ultimately canceled by the Biden Administration.

The cancellation of the Keystone XL pipeline was naïve because of the belief that by canceling it, the oil wouldn't be developed and it would help in the fight against climate change. Meanwhile, alternatives would come to the rescue, rendering the pipeline completely unnecessary.

I understand why people made that argument. It seems intuitively correct. But, that is not how the world works.