Pipeline statement

[TCast]

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Date:Â Â Â Â Â Â Â Â Â Â Â à ‚ Â Â January 24, 2012Â Â Â Â Â Â Â
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To:            *     Valero Employees
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From:Â Â Â Â Â Â Â Â Â Â Â à ‚ Â
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Subject: Â Â Â Â Â Â Â Â Keystone XL Pipeline Statement
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As you know, the Obama administration decided last week to deny TransCanada’s application to ship crude oil via the Keystone XL pipeline from Canada to the Gulf Coast. Valero has planned to be a shipper and purchaser of that oil since 2008, and obviously we were disappointed in the decision. We issued a statement in response to questions from the media, and I wanted to share it with you in case you get questions from friends or business partners, and so that you would know why Valero supports the Keystone XL pipeline. This is the statement:
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Despite the uncertainty and political fighting over the Keystone XL pipeline, Valero has continued to invest in its U.S. refining operation. In 2011 we spent nearly $3 billion on projects, and for 2012 our capital expenditure budget is over $3 billion. These expenditures are keeping our employees on the job and putting additional people to work. To reference two of our refineries, at Port Arthur, Texas, we have 1,600 contractors working on an expansion project, and at St. Charles Parish, Louisiana, we have another 1,000 contractors working on a separate project. We need this kind of economic activity to accelerate to help all Americans.
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This illustrates why the federal government’s rejection of the Keystone XL pipeline is so absurd. There are pipelines in every neighborhood all across America. The administration’s decision was not about pipelines, it was about the misguided beliefs that Canadian oil sands development should be stopped and that fossil fuel prices should increase to make alternative energy more attractive. Instead, we should be impressed with how well the oil sands engineering and recovery technology has advanced, and the economic benefits this development brings. Having more oil available in the marketplace has the potential to lower prices for consumers. As an independent refiner, Valero buys all of the oil we process. Due to the administration’s misguided policies, refiners like Valero will have to buy more oil from other sources outside the U.S. and Canada. Consumers will bear the additional shipping cost, not to mention the additional greenhouse gas emissions and political risks.
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With all the issues facing our country, it is absolutely unbelievable our federal government says no to a company like TransCanada that is willing to spend over $7 billion and put Americans to work on a pipeline. The administration’s decision throws dirt into the face of our closest ally and largest trading partner.
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The point above is that it is not about pipelines as many pipelines cross the Ogallala Aquifer, in the Great Plains region, and, in fact, there is already significant oil and gas production in the area covered by the aquifer. This is politics at its worst.
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Thanks for your support.
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[JDH_STL]

Drop into the Lounge to discuss just about any topic you can think of (Except Politics).

[Tom G.]

<table width="90%" cellspacing=0 cellpadding=0 align=center><tr><td>Quote, originally posted by JDH_STL &raquo;</td></tr><tr><td class="quote">Drop into the Lounge to discuss just about any topic you can think of (Except Politics). </td></tr></table>

local16, I didn't realize that you changed your name and moved to St. Louis.

[TCast]

I don't see it as political. It's an industry statement from a refinery company that has been trying to purchase the oil. Simple as that. Read it, comment and discuss it without politics. But I doubt that will happen.

Also, the point of the statement is that there are already numerous pipelines going through the area that so many, including some on here, are so worried about protecting. I work in the pipeline business and I can assure there are plenty of pipelines crossing all over this country. So to say "this area needs to be protected" when said area already has pipelines running through it is very misleading and ignorant. Of course this is only my opinion.

[earthworm77]

Troy thanks for posting that. It's absurd that both the senate and house wanted this passed and the President is all for jobs but mysteriously this is a no go. Does andyone think that it has anything to do with Warren Buffet coming forward and telling the rich they need to be taxed higher? You do know he makes much of his money in shipping....trains to be exact, trains that carry petroleum products to be more exact. favor much? This is the same President who had a State of the Union address the other night and spoke about eliminating lobbying......yet, this was done under the table at the same time.

http://www.bloomberg.com/news/....html


Modified by earthworm77 at 9:52 AM 1/26/2012