Koch Brothers Positioned To Be Big Winners If Keystone XL Pipeline Is Approved
Obama’s bitterest political enemies already import and refine 25 percent of oil sands crude reaching the U.S., and stand to profit from an increased flow.
The Keystone XL pipeline, awaiting a thumbs up or down on a presidential permit, would increase the import of heavy oil from Canada’s oil sands to the U.S. by as much as 510,000 barrels a day, if it gets built.
Proponents tout it as a boon to national security that would reduce America’s dependence on oil from unfriendly regimes. Opponents say it would magnify an environmental nightmare at great cost and provide only the illusion of national benefit.
What’s been left out of the ferocious debate over the pipeline, however, is the prospect that if president Obama allows a permit for the Keystone XL to be granted, he would be handing a big victory and great financial opportunity to Charles and David Koch, his bitterest political enemies and among the most powerful opponents of his clean economy agenda.
The two brothers together own virtually all of Koch Industries Inc. — a giant oil conglomerate headquartered in Wichita, Kan., with annual revenues estimated to be $100 billion
A SolveClimate News analysis, based on publicly available records, shows that Koch Industries is already responsible for close to 25 percent of the oil sands crude that is imported into the United States, and is well-positioned to benefit from increasing Canadian oil imports.
A Koch Industries operation in Calgary, Alberta, called Flint Hills Resources Canada LP, supplies about 250,000 barrels of tar sands oil a day to a heavy oil refinery in Minnesota, also owned by the Koch brothers.
Flint Hills Resources Canada also operates a crude oil terminal in Hardisty, Alberta, the starting point of the proposed Keystone XL pipeline.
The company’s website says it is “among Canada’s largest crude oil purchasers, shippers and exporters.” Koch Industries also owns Koch Exploration Canada, L.P., an oil sands-focused exploration company also based in Calgary that acquires, develops and trades petroleum properties.
Koch Industries declined opportunities to comment.
For the full article from Solve Climate News, please click here.
By David Sassoon | Feb 10, 2011