The US House of Representatives has approved proposed $7 billion pipeline The Democratic government has moved forward to set a deadline for the pipeline that will bring Canadian oil sands crude to the United States .
The bill received 279-147 votes in its favor and this eventually pressurizes the state to allow transport of Canadian oil sands crude to California by 1 November via Keystone XL pipeline.
Ed Whitfield, a Republican stated that the pipeline continued being held up for three years due to many reasons, and now the approved bill has removed all the big obstacles for it.
He also stated that, the opening of this pipeline would also help in reducing oil prices.The proposed pipeline would transport
700,000 barrels of crude oil per day. It will transfer oilfrom Alberta to refineries situated at US Gulf coast. This would also help in securing energy supply in the country as well as promote employment. However, the bill is yet to become a law and it needs to be passed by the Senate, where DEmocrates dominate the scene.
Keystone XL pipeline has raise many environmental concerns too and therefore received strong resistance from those who oppose the bill. The oil sand production in Canada is carbon-intensive, and therefore contributes to greater pollution.
from the incidents of leakage in Exxon Mobil’s Silvertip oil pipeline has also set people to raise concern over the viability ofKeystone XL pipeline.
The high cost of oil has forced President Obama to review the oil production policy of the country by increasing the volume of oil production. It is apparent that Americans are frustrated with the increasing cost of oil.
The oil drilling companies have also attacked the government oil drilling policy. The president said in his weekly address to the country that he is setting up a committee to investigate the cause of the skyrocketing oil prices.
The committee to determine it is as a result of any manipulation or fraud. The price of gasoline has gone up to $4 a gallon. He is therefore calling for the elimination of the subsidies that are currently enjoyed by the oil producing companies.
There is a debate going on in the congress over the new direction of the country’s oil policy. The Democratic Party is proposing annual tax breaks of $2billion for the five big oil producing companies in the country. This is a legislation that is opposed by the Republican Party.
The US president said that the oil production in the country has reached its highest level in the country since 2003. The president said that there is the need to increase the oil production in the country and raise the level of environmental standard and safety in the country.
The price of crude oil has fallen to the lowest level in two weeks as a result of surge in the oil supply. Report from US Energy Department showed that the price of oil fell
The price of crude oil was down fro $181 to $109.24 a barrel at the Mercantile Exchange of New York. This is the lowest the price of oil could go since April 19th of last year.
It would be recalled that the prices of oil went up by as much as 32 percent a year ago. The crude oil stockpiling at Oklahoma has gained by as much as 102,000 to 40.5 million.
However, the cost of the gasoline has increase from the cost of 15 cents to $3.92 yesterday. This was the highest to be recorded since the tear 2008. The level of consumption of gasoline has dropped to a level 8.94 barrels last week.