A posting on this site was titled “Economic Recovery Versus Red Tape” discussed two pipeline projects. The Ruby natural gas pipeline provided thousands of jobs to construction workers and hundreds of jobs to environmental specialists. It also boosted property taxes in the areas where it was constructed. You would think such a project would have wide support, but the environmental hoops it had to jump through before successful completion, which cost millions of dollars, were tiny. The second pipeline described in the posting was the Keystone XL, which is proposed to bring oil from Canada to be processed in U.S. refineries. I’ve seen estimates that the project would add “shovel ready” jobs ranging from 4,500 (from environmentalists opposing the project) to as many as 20,000.

President Obama has taken the decision to approve the project out of the State Department and announced that he will make the decision after the 2012 election. This comes after three years of intensive study that decided the project had an acceptable environmental impact. (Hmmm, is there any significance to making a final decision after the 2012 elections?) I expect the announcement might have something to do with the fact that environmentalists opposed to the pipeline recently surrounded the White House and the Sierra Club declared that Mr. Obama could not count on the environmental vote if he allowed the project to be approved.

One objection to the project is that the oil from Canadian tar sands has more of an impact on “global warming” emissions than oil from other sources. I’ve seen estimates as low as a 5% increase in “greenhouse gases” to as high as three times by those who don’t like the project. An article in the Washington Post by Steven Mufson points out that any argument on how much more greenhouse gas is produced is meaningless, since the oil will probably be exported to China and consumed if there isn’t a closer market. Mr. Mufson also says several alternatives are being considered, to include a proposal to build a new refinery in Alberta to process the oil. That alternative would of course prevent creation of U.S. jobs to build a pipeline and to process the oil.

Environmentalists of course are demanding that alternate pipeline routes be considered to avoid the Ogallala aquifer (which is at a significant depth under the proposed pipeline). Matthew Brown of the Associated Press points out that there have been thirteen routes rejected. Environmentalists will find a reason, or many reasons, to reject any route. They don’t want a pipeline to be built, and will find compelling reasons to oppose any route.

The New York Times predictably applauded Mr. Obama’s decision to kick the can down the road. They point out that labor unions had supported the project while environmentalists oppose it. Call me a cynic, but I’m guessing that preventing the project until after the election will allow environmentalists to eagerly support Mr. Obama’s reelection, and that he already has done enough to earn the votes of labor union members.

It is interesting that there is already “Plan B” to transport the Canadian oil to U.S. refineries by expanding current pipelines with additional pumping stations. The delay to making a final decision on Keystone XL until after the 2012 elections will probably provide Mr. Obama cover for maintaining votes, but it won’t have any measurable impact on the eventual pathway for the oil except for preventing addition of “shovel ready jobs.”