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OIL AND GAS
Trump would approve Keystone pipeline blocked by Obama
by Staff Writers
Bismarck, United States (AFP) May 26, 2016


Trump heads to shale country
Bismarck, N.D. (UPI) May 26, 2016 - Republican presidential candidate Donald Trump delivers the keynote address Thursday at a petroleum conference in North Dakota, the schedule shows.

Trump is the last man standing for the Republican Party's bid to reclaim the White House after two terms of Democratic control under President Barack Obama. During his tenure, Obama has embraced an "all-of-the-above" energy policy that saw the United States march closer to its first-ever commercial offshore wind farms while at the same time moving to become a top world oil producer.

North Dakota is the No. 2 oil producer in the nation, behind Texas, and is home to the Bakken shale oil reserve area. More than 90 percent of the oil production in North Dakota comes from that region.

Trump delivers the keynote address Thursday at the Williston Basin Petroleum Conference. Trump offers no formal energy policy on his list of campaign priorities. In a March interview with the New York Times, the presumptive Republican nominee for president said he'd cut imports of oil from Saudi Arabia if the government of Riyadh was unwilling to help lead a ground effort against the Islamic State terror group.

Saudi Arabia is the No. 2 exporter of crude oil to the United States, behind Canada. With Canadian oil production down because of wildfires in Alberta, the four-week moving average for Saudi oil imports into the United States is up 10 percent. Energy analysts who spoke in the wake of the March interview said that, without Saudi oil, U.S. oil companies would either need to increase production by as much as 36 million barrels per month to make up the difference, or find another supplier.

North Dakota oil production, meanwhile, dropped about a full percentage point over the course of a month because of lingering market pressures. The number of rigs working in North Dakota shale broke a record low set in July 2005 earlier this week.

In early May, North Dakota Gov. Jack Dalrymple called for a state budget that was about 90 percent of the 2015-17 appropriation. Tax revenues are falling short and the budget situation in the state is much different than it was two years ago when oil was selling for more than $100 per barrel, he said.

A consortium of leaders from the environmental community were critical of Trump's energy policies, noting he's consistently moved behind the oil and gas industry and ignored climate issues. On the campaign trail, they said, he's already pledged to dismantle the Environmental Protection Agency.

"Donald Trump's energy policies would hurt our country's economy, health, safety, and security," NextGen Climate President Tom Steyer said in a statement. "The Trump agenda is only going to make America great again for corporate polluters, which is why Americans need to come together to defeat him -- and his Republican allies -- in November."

Donald Trump said Thursday that if he is elected US president, he would support the Canadian Keystone oil pipeline project that was blocked by President Barack Obama on environmental grounds.

He also reiterated his intention, if elected president in November, to reverse much of Obama's energy plan and to "cancel" the landmark Paris climate pact of last December.

Speaking just after he won enough primary delegates to seize the Republican nomination for the White House, Trump told reporters that the project for a new pipeline to carry Canadian crude to the Gulf of Mexico "should be approved."

"I will absolutely approve it 100 percent, but I want a better deal," Trump added.

He said that because the project requires the US government to expropriate private land using eminent domain laws, the US should have a share of the profits.

"I'm going to say, folks, we are going to let you build the pipeline but give us a piece," Trump said.

"I want a piece of the profits for the United States. That's how we make our country rich again."

The Obama administration decided in October to deny TransCanada Corp. permission to build the 1,180-mile (1,900 kilometer) Alberta-Nebraska pipeline that would be a crucial link to carry heavy Canadian oil sands-derived crude into US markets and export terminals on the Gulf of Mexico.

Noting the high environmental cost of using the oil sands crude, Obama argued that approving the pipeline would harm the fight against climate change.

The decision, which came seven years after the company first submitted the project, marred US-Canada relations and angered many in the oil industry in both countries.

In January, TransCanada announced it would sue the US government for US$15 billion for blocking the project, saying it "was arbitrary and unjustified" under the North American Free Trade Agreement and also exceeded Obama's powers.

But the plunge in crude oil prices beginning in 2014 had already lowered the economic justification for the pipeline, with a number of oil sands investments cancelled and existing pipelines beginning to struggle for business.

Trump meanwhile reiterated his intention to reverse energy and climate change policies set by Obama, including US backing for the world's first universal climate change agreement by 195 countries, achieved in Paris on 12 December.

"We are going to rescind all the job- destroying Obama executive actions, including the climate action plan," Trump said.

"We're going to cancel the Paris climate agreement, and stop all payments of United States tax dollars to UN global warming programs."

Trump said he wanted to keep the US energy-independent, suggesting he would offer support to the fracking industry that has been the source of a large surge in US domestic oil production in the past five years, but has been hit hard by the collapse of global crude prices.

"We'll open it up. Be energy independent. We'll have all sorts of energy. We will have everything you can think of including solar," he said.


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