Oil Drilling Expansion 4-9-25

Oil Drilling Permits that were cancelled and denied under Biden have been restored. 

The US is actively drilling for oil in major producing areas like Texas, the Gulf of Mexico (offshore), New Mexico, North Dakota, and Alaska, with Texas being the largest oil-producing state. 

Here's a more detailed breakdown:

Texas: Texas is the largest oil-producing state in the US, with the Permian Basin in western Texas and eastern New Mexico being a major contributor to US oil production. 

Gulf of Mexico (Offshore): The western and central Gulf of Mexico, including offshore areas of Texas, Louisiana, Mississippi, and Alabama, is a significant petroleum-producing area. 

New Mexico: New Mexico is a major oil-producing state, especially with its contribution to the Permian Basin. 

North Dakota: North Dakota is also a significant oil-producing state, particularly with its Bakken formation. 

Alaska: Alaska has historically been a major oil-producing state, although production has decreased in recent years. 

Colorado and Oklahoma: These states also contribute to US oil production. 

Federal Offshore Pacific (California): A small percentage of US crude oil is produced in the Federal Offshore Pacific. 

Keystone XL Pipeline

The Tar Sands Oil from Canada is used to produce Diesel Fuel for Trucks.

The Keystone XL pipeline, which was a proposed extension of the existing Keystone Pipeline System, was designed to transport crude oil from western Canada to refineries in the U.S. Gulf Coast, with a capacity to carry 830,000 barrels of oil per day. 

The Keystone XL pipeline extension, proposed by TC Energy (then TransCanada) in 2008, was initially designed to transport the planet’s dirtiest fossil fuel, tar sands oil, to market—and fast. As an expansion of the company’s existing Keystone Pipeline System, which has been operating since 2010 (and continues to send Canadian tar sands crude oil from Alberta to various processing hubs in the middle of the United States), the pipeline promised to dramatically increase capacity to process the 168 billion barrels of crude oil locked up under Canada’s boreal forest. It was expected to transport 830,000 barrels of Alberta tar sands oil per day to refineries on the Gulf Coast of Texas. 

HOW MUCH FUNDING HAD THE PROJECT SECURED?

According to a March 2020 TC Energy press release, the estimated cost of the project was to be $8 billion.

At the time of the press release, the Government of Alberta had invested $1.1 billion in the project, largely covering the cost of construction through the end of 2020, according to TC Energy.

The press release also stated that the remaining $6.9 billion needed for construction was expected “to be largely made in 2021 and 2022 and funded through the combination of a US$4.2 billion project level credit facility to be fully guaranteed by the Government of Alberta and a US$2.7 billion investment by TC Energy.”

In other words, 14% of the investment was made in 2020, with the remaining 86% secured and expected to be paid in 2021 and 2022.

Seeking comment on whether additional funds had been invested between Jan. 1, 2021 and Jan. 20, 2021 Reuters reached out to TC Energy but did not receive a response in time for this article’s publication.

The Reuters Fact Check team previously debunked social media claims surrounding the Keystone XL Pipeline, here .

VERDICT

Partly false. Though the Keystone Pipeline XL had secured full funding through 2022, only 8% of it had been built by the time President Biden revoked the project’s permit in the United States.

Reuters spoke via email with James Stevenson, a spokesperson for the Canada Energy Regulator, which oversees the Canadian portion of the Keystone XL Pipeline (here). Stevenson confirmed that as of late 2020, about 152 kilometers, or 93 miles, of pipeline had been laid near the U.S.-Canada border. Therefore, about 8% of the planned 1,210-mile XL extension had been built by the time President Biden revoked the permit.

Source: Google Search

Comments

It appears that TC Energy will own the pipeline and collect fees from companies that produce Diesel Fuel. This is the fuel that needs to be cost reduced to lower ground transportation prices. The World uses Large Trucks to deliver goods and large trucks use Diesel Fuel.

It also appears that the Canadian Government has provided seed money to the Keystone XL pipeline. It also appears that US Pipeline workers will build it.

Norb Leahy, Dunwoody GA Tea Party Leader