Wednesday, October 5, 2011

document filed with the Canadian Council of Energy seems to question the assertions of Koch Industries has no interest in the controversial pipeline

In recent months, Koch Industries Inc., the conglomerate headed by billionaire brothers Charles and David Koch, has repeatedly said a U.S. congressional committee and the media that the proposed Keystone XL Pipeline sand n ' has "nothing to do with any of our companies."

But the company told the Energy Regulation in Canada a different story.

In 2009, Flint Hills Resources Canada LP, an Alberta-based subsidiary of Koch Industries, sought and obtained, "State Controller" in the hearings of the National Energy Board in 2010 which led Canada, the approval of its 327 miles of the portion of the pipe. The controversial project could take heavy crude from Alberta to 1,700 miles along the Gulf Coast of Texas.

in the form submitted to the Council of Energy, Flint Hills wrote, "is among the largest buyers of crude oil, transporters and exporters. Therefore, Flint Hills has a direct interest substantial implementation "of the pipe in question.

to be approved as an auditor, Flint Hills must have a degree of "commercial interests" in Keystone XL, Carole Léger-Kubeczek, a spokesman for the National Energy Board, has InsideClimate told News. Stakeholders are given the highest level of access to hearings, with the opportunity to ask questions. The Board approved Energy Canadian segment of the pipe with little opposition, and Flint Hills did not use his right to speak.

News

InsideClimate contact the administrator of Flint Hills of Canada presented the document. He referred questions to the General Counsel of Koch Industries Mark Holden, who did not return calls. Neither the spokesman for Koch.

The State Department, which must approve the project as it crosses an international border, spent three years revising the 1375 miles from the American leg of the proposed pipeline. Their decision, expected later this year will be far-reaching environmental decisions of the Presidency of Barack Obama so far.

supporters of the bill said that the pipe is required, it would provide a secure supply of oil from a political ally stable and produce needed jobs during the recession. Opponents argue it would increase emissions of global warming and increase the risk of oil spills in sensitive areas along the route. They also argue that gasoline prices in the Midwest and many increase 830,000 barrels of oil pipeline could be sent to the United States each day are in foreign markets.

Currently, Canadian crude oil can be pumped to the Midwest, where an excess supply of oil is to maintain regional low oil prices. The Keystone XL to open the bottleneck of oil the ship from Canada to the Gulf Coast and open access to global markets, creating a huge market opportunity for players from oil sands.

"There is no possibility of access to global markets, and that's why WTI is pressed [the oil price in the Midwest]. Keystone XL alleviate this problem, "said Chad Friess, an oil and gas analyst for UBS Securities Canada Inc. in Calgary, Alberta." The price is expected to improve as it becomes operational. "

a market analysis conducted by TransCanada, 2009, the Alberta-based company, which hopes to build the pipeline, which would create a $ 3 per barrel, at least for the Canadian heavy crude in the Midwest. Oil producers in Canada to benefit most from rising prices. The report predicts that annual revenue increase of 2 billion to $ 3.9 billion in 2013. However, the industry, including refineries and shipping Koch Industries has focused its efforts, also benefit.

"Keystone XL is the industry," said Danielle Droitsch, Advisor to the Natural Resources Defense Council (NRDC), a nonprofit organization of the environment that is opposed to the pipeline. "They go for a higher price of oil on the Gulf Coast market, which also happens to be an international market."

Participation deep

Oil Sands Trade

The controversy over the Koch and the pipe was caused by a news report in February InsideClimate. This analysis, also published on Reuters.com and later quoted by various news agencies, found that Flint Hills is deeply involved in trade between Canada and the oil sands of Alberta and is well positioned to benefit if more crude Heavy is exported to the United States.

Koch brothers own nearly all of Wichita, Kansas-based Koch Industries, the second largest private company in America. The conglomerate of energy and the production earned an estimated $ 100 billion in annual revenue from its network of subsidiaries, a mixture of oil, gas, pipes, chemicals, fertilizers, paper and pulp . In addition to its operations in Canada, a subsidiary of Koch Flint Hills operates refineries in Alaska, Texas and Minnesota as well as a dozen fuel terminals in the Midwest and Texas.

The Koch brothers have donated millions of dollars to Republican candidates and conservative movements, funding for groups involved in the Tea Party causes and campaigns to deny the science of climate change and need a cleaner energy. Through its subsidiary, Flint Hills, which supported the bill that failed in 2010 suspended the landmark legislation in California limiting greenhouse gas emissions.

The United States already receives nearly a quarter of its oil, about 2 million barrels each day in Canada. One half of respect for the Alberta tar sands patch, where Flint Hills is responsible for shipping nearly 25 percent of oil from oil sands crude by pipeline to the United States.

At the other end of the supply chain proposed Keystone XL refinery row in Texas, Koch Industries has been upgrading its refinery in Corpus Christi to be able to handle more difficult to treat mixtures of tar sands, according to industry reports.

a pack of lies

Koch Industries


This "has nothing to do with any of our business," the spokesman quoted by Koch said staff members of Congress in a letter May 20 Waxman sent to Congress Fred Upton (R -Mich.) Whitfield Energy and Commerce Committee Chair, and Ed (R-Ky.), who chairs the Subcommittee on Energy and Power.

In his letter, Mr. Waxman called for congressional Republicans to find documents of Koch Industries that Waxman's own staff had been unable to obtain. At that time, Whitfield Upton and accelerate a bill passed by the House July 26, but was ignored by the Senate that would force the Obama administration to decide on the Keystone XL Pipeline November 1st.

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