Keystone XL Pipeline Reeks of Koch

For the public, the entire Keystone XL (KXL) streamliner is washing down easier with a confidential Big Gulp of Koch.

“The too-billionaire Koch brothers, Charles and David, usually get what they want, but never what they deserve.” — Gaea

People who breathe the atmosphere, drink water, eat food, are hostages of an increasingly haywire, engineered climate…that’s us, and at the swipe of Obama’s pen, we have a fresh Kochmare coming on-line.

Misinformation, disinformation, emotional manipulation and Kochspeak are railroading us toward the most dangerous diluted bitumen (DilBit) pipeline ever to sell out vital American resources to benefit so few—not to mention the global atmospheric carbon bomb.

How do we stand to gain from KXL?

The greatest known “public benefit” from KXL will be higher gasoline prices. [1]

KXL’s sheer potential for destruction winds along a bleak and tarry road to deliver hell for the unborn, at a “profit”. From melting bitumen out of the ground using vast amounts of natural gas and fresh water…to dilution with natural gas liquids so the DilBit can be squeezed through a pipeline impaling our heartlands…to filthiest of refining leading to a guaranteed crescendo of environmental disaster. At least in scope, it’s all similar to the sheer profit potential for psychopaths with pockets deep enough for politicos to dive in from the high board and wallow around under the thumb of Koch.

Our system of resource allocation is fatally broken (Kochen). Instead of capitol investment in energy with a future, billions are sucked into the deadest of ends—the blackest of fossil-energy black holes…bitumen. [2]

The dominating Koch agenda seems a ruthless assurance that every child not born into wealth like David and Charles has a nightmare future—if they have a future at all. Could there be a more disgusting example of hubris than Kochs cloaking one of their political-subversion fronts as: “Coalition for our Children’s Future”?

Regarding various breeds of euphemism…Kochism virtually defines “sinister”.

Kochspeak In Action

Whenever corporate profit most degrades the biosphere, Koch-brother tentacles are usually winding around nearby—professionally-cloaked, but there’s the smell.

That smell…biocidal mélange of gas, oil, bitumen, diluted bitumen, refining and shipping, industrial chemicals, paper and pulp mills, chemical fertilizer, corporate “Free $peach!” and politicos up to their hairlines in campaign contributions…. Incredible stench, victim discretion beyond advisories.

Spearheading recent Koch-and-dagger denial is the pronouncement that Keystone XL “oil sands” pipeline has “…nothing to do with any of our businesses”. For people paying attention, that might seem much like Santa Claus announcing that Christmas has nothing to do with any of his businesses.

Rep. Henry Waxman of California is the ranking Democrat on the House Energy and Commerce Committee’s Energy and Power Subcommittee.  Declarations by Koch Industries officials, to the tune of KXL has “…nothing to do with any of our businesses”—a song and dance sharpening Waxman’s focus on the guarded KXL Koch connection.

(Editor’s note:  you can watch this confrontation a recorded from C-SPAN2 by clicking here and you really should witness this as a written description does not do this justice.   It is at the Senate Energy and Commerce Committee Meeting 2.1.12.  Members making opening statements on the Obama administration’s decision to deny permission to deny permission to continue with plans to build the Keystone XL Pipeline.  A very partisan committee hearing—apples talking at oranges and vice versa.

Upton comments about Canada building a pipeline toward shipping to China.  But Koch has a refinery in MN that could be refurbished just as they have to refurbish a refinery in Corpus Christi.  So why is the pipeline even necessary?  Because from Corpus Cristi the oil can be loaded into supertankers for shipping the tar sands oil overseas.

Waxman-Whitfield confrontation at Senate Hearing
The Henry Waxman vs. Ed Whitfield battle begins in earnest 17:22 into the C-SPAN2 video, when Waxman starts quoting facts.  You have to watch this to believe it.  This is our government, and that’s very distrubing.)

Waxman sent a letter to Reps. Fred Upton (R-Michigan, Energy and Commerce committee chairman) and Ed Whitfield (R-Kentucky, Energy and Power subcommittee chairman), urging them to seek Koch Industries documents that Waxman’s staff had been denied.

Upton and Whitfield were dancing to the Koch campaign-contribution rag, busy ramming a bill through congress to force an Obama administration decision on KXL by November 1, 2011. The bill passed in the House, but passed away in the Senate.

Stomping on the face of public interest…for such Orwellian aggression, the language of Kochspeak is money, and political intrigue. The 2010 landmark ruling by Supreme Court of the United States in Citizens United -vs- Federal Election Commission [3] maximized the volume of Kochspeak.

According to the L.A. Times, the largest single donor to members of the Energy and Commerce Committee in the 2010 money miasma called “election” was Koch Industries and their employees. $20,000 of that went to Fred Upton, reliable Koch asset also spearheading efforts to block the Environmental Protection Agency’s (EPA) new rules regarding greenhouse gas emissions.

Koch Industries’ response to Rep. Waxman’s interference included:

“As we explained to Representative Waxman’s staff, we have no financial interest in the project (KXL). Given these facts, we are confused about why Koch is being singled out and inserted into these discussions.”

An L.A. Times op-ed by Michael Brume, executive director of the Sierra Club, describes KXL as being backed by the Koch brothers. Koch officials demanded a “correction”, insisting to L.A. Times editors that: “Koch is not involved in the Keystone Pipeline project in any way as we have stated publicly and has been widely acknowledged. This is not a matter of opinion since there are no facts to the contrary.”

(editor’s note:  I thought I would add this screen shot from Koch Industries’ Discovery Magazine, an in-house production.  Just seemed so appropriate.)

Koch Industries - Discovery Mag - Flint Hills Resources

The shibboleth, “…we have no financial stake in the pipeline” is clearly revealed as classic Kochspeak by a form submitted to Canada’s National Energy Board in 2009 by Koch’s Flint Hills Resources Canada. (Flint Hills) “…is among Canada’s largest crude oil purchasers, shippers and exporters. Consequently, Flint Hills has a direct and substantial interest in the application” (for the pipeline under consideration). That pipeline, approved in 2010, is Canada’s 327-mile portion of KXL.

Responding to a Reuters article titled: Koch Subsidiary Told Regulators It Has ‘Direct and Substantial Interest’ in Keystone XL…Koch representatives assured Reuters that Koch has no interest in Keystone XL—even whined about media bias; meanwhile, Koch Industries was spending millions upgrading its Corpus Christi refinery to handle more DilBit….

Realistically, if the Kochs were “…not involved in the Keystone Pipeline project in any way”, why all the denial?  Considering Koch style, denial seems solid admission that Kochs are positioned to make a killing from KXL, after getting a toehold in Canadian bitumen fifty years ago.

Koch Style

Investigator and author extraordinaire Greg Palast relates this precious episode of Koch style from over twenty years ago:

Charles Koch had a contract to glean oil from the Osage Indian Reservation with a “stripper well”. Secret tape recordings of a Koch Industries top executive document Charles demanding drivers of oil tankers to secretly siphon a few dollars worth of oil from every private tank on the Osage Reservation fed by stripper well. The FBI filmed oil thefts with hidden cameras, recorded Koch’s childish giggling over ripping off Native Americans. Koch even snickered about the question of why a multi-billionaire would steal petty amounts of oil from destitute Osage…and in purest Koch style, replied:

“I want my fair share—and that’s all of it.”

The Justice Department, armed with exhaustive evidence, indicted Koch Industries for “Crime on an Indian Reservation”, and racketeering; major prison-time criminality.

Charles Koch simply stroked a couple of senators in his pockets (Bob Dole of Kansas, Republican majority leader; Oklahoma’s Don Nickles)…and the federal prosecutor handling the case was fired. Case closed (giggle).

Koch Style runs in the family. It was Bill Koch, younger brother of Charles and David, that ratted on his brothers…leading to an open-and-shut case for anyone not above the law.

Bill had been promised a cut of what, in addition to petty theft from personal tanks on the Osage Reservation, turned out to be hundreds of millions in oil stolen from Native lands. But brothers Charles and David reneged on the deal, cut Bill out of profits that hardly register in Koch-level crime. So Bill squealed.

Actual steel pipe in KXL is probably free of Koch-Industries fingerprints; refining, shipping and export is where Kochs have set themselves up for KXL windfall.

Kochs already import and refine 25% of Alberta Death Ooze (ADO) pumped into the US. KXL will increase import by over 500,000 barrels per day. Once again, Kochs’ “…we have no financial interest in the project” seems like Kochspin admission of deep involvement with KXL.

Since Koch Industries Inc. (Mother Hydra to a snarl of subsidiary tentacles) is mostly owned by Charles and David Koch, their operations are mostly private (the second-largest privately-held U.S. corporation is Koch Industries). Kochs parlay secrecy with the flair of billionaires who pilfer from impoverished Native Americans…billionaires who consider their fair share to be, “…all of it.”

One thing not secret: Koch Brothers are President Obama’s bitterest political enemies. Often considered architects of the dirty-energy paradigm, Kochs are enemies of anything to do with clean energy. After all, in Kochworld, clean energy is simply potential for filthy lucre, denied. Fossil energy offers nothing filthier than bitumen, the proverbial “bottom of the barrel”.

The entire energy-from-bitumen industry has very effectively perception-managed the public into shrugging off bitumen as “crude oil”. Inculcation of DilBit being “oil” is relentless. Mainstream media (MSM) has been issued progressive, evolving euphemisms to disguise even the massive Alberta bitumen deposits as “oil”. Success at public conditioning was reflected last week in an Associated Press article titled:

Obama disputes jobs on Keystone XL line

Counting the worm-term “Keystone XL oil pipeline” from the first sentence, the word “oil” is used five times. Not a peep about tar, bitumen, DilBit. The article also quotes a draft environmental report released by the State Department this March:

“…no significant environmental impact to most resources along the proposed pipeline route.”

That’s right, they said “most”. Sinister omen, anyone?

Definition from Merriam-Webster’s Collegiate Dictionary, Tenth Edition:

Bitumen 1: an asphalt of Asia Minor used in ancient times as a cement and mortar 2: any of various mixtures of hydrocarbons (as tar) often together with their nonmetallic derivatives that are obtained as residues after heat-refining natural substances (as petroleum); specif: such a mixture soluble in carbon disulfide

Among bitumen euphemisms foisted upon the public by MSM, there’s been a whiff of truth; “Alberta tar sands”, or simply, “tar sands” for instance. But Koch-furthering of ADO has tarred and feathered truth.

Diluted Bitumen (DilBit) is NOT Oil Ask the IRS—lone public entity to which bitumen pushers don’t try to pawn off DilBit as oil.

The oil industry pays an eight-cents-per-barrel tax on crude oil produced in or imported to the US; proceeds are earmarked for the Oil Spill Liability Trust Fund that covers cleanup costs for oil spills.

In 2011, at the request of a company whose identity is kept secret (smell that smell?), an exemption was made that frees DilBit from this tax—an exemption potentially worth over $60 million annually when KXL is on-line. The secret company insisted that “oil” from Canada’s tar sands is so different (chemistry, behavior, how it’s produced) that it should not be considered crude oil.

Deception and KXL go together like rum and Koch.

Texas is where KXL DilBit will be refined for the global market. Texas, and federal statutory codes, define crude oil as “liquid hydrocarbons extracted from the Earth at atmospheric temperatures”. That certainly excludes bitumen.

As if raw bitumen (almost a solid) isn’t bad enough, the stuff must be diluted with up to 50% natural gas condensates (proprietary liquids called diluents) into an abrasive, sulfurous brew that abrades and rots steel pipeline. DilBit. And no matter where you look, DilBit only gets worse. The biocidal brew must be heated to 160-degrees Fahrenheit to reduce viscosity enough that it can be squeezed through pipeline at 1,440 pounds per square inch (PSI). So, DilBit pipelines don’t leak, they erupt!

The most expensive “oil spill” in US history which, according to EPA, “…permanently polluted thirty miles of Michigan’s Kalamazoo River”—that was “The Marshall Spill” [4], a certain sneak preview what might ultimately finish off DilBit pipelines.

The Bitter End Light sweet crude oil is the cream of petroleum. Globally, the cream has been largely skimmed off, leading to higher profits from lower grades (light sour, heavy sweet, heavy sour)…until bitumen itself has become marginally profitable. Lowest sulfur content is “sweet”, higher sulfur is “sour”, with bitumen being the sourest of all, as well as heaviest. And the term, “profitable” has many dynamics, many interpretations, many costs deferred….

A scale to measure profit in exploitation of petroleum resources is Energy Returned On Investment (EROI); how much energy is gained for how much energy invested. Crude oil has a high EROI, averaging out to about 25:1 (25 units of energy gained from 1 unit of energy invested).

Bitumen pushers shill about ADO having an EROI as high as 5:1 when surface mined. ADO from deeper, mined by steam injection, averages less than 3:1, they say. But when transportation, refining, and other economic costs are factored in, ADO might barely make an EROI of 1:1…not counting “unforeseen” disasters such as the Marshall Spill, or anything else non-economic.

Besides ADO having a zombie EROI…there’s the carbon problem. Climatologists talk about “…game over for the climate” if the Alberta ‘tar sands’ are fully exploited.

EPA estimates that ADO has a “well-to-tank” carbon footprint 82% greater than oil. Canadian bitumen deposits could contain twice as much carbon dioxide as we’ve unleashed so far upon the biosphere in our entire history of using oil.

ADO for energy seems about the worst idea ever to divert billions of dollars from investment in new energies—if not one of the worst ideas in the history of…civilization. When it comes to fossil energy, could there be a bitterer end than bitumen?

In a shocking moment of candor, TransCanada even said of their own baby, (Keystone XL pipeline) would be “…a boon for corporate profits, but a burden for American consumers.” [5]

President Obama has a monster tar baby on his hands. Sure seems like, potentially at least, it would be difficult to convince people that a DilBit pipeline through the heart of their nation is in the public’s best interests. Environmental catastrophe risked for largely foreign corporate profits from a product destined for the global market and expected to increase domestic gasoline prices, tough sell. Illusions of public benefits such as jobs are mostly that, illusions.

And if Obama permits KXL he will handing his bitterest political enemies a tremendous victory. Kochs have declared war on Obama, like to call him Saddam Hussein. [6]

Among the best things Obama might ever say about America—especially describing our energy future:

“Without further ADO.”

Problem is, whether on not the 1,375-mile US leg of KXL will go on-line no longer appears to be question of “if”…only, “when”. Kochs usually get what they want. That means our last line of defense against threats of Canadian bitumen could be the inevitable disaster of DilBit itself.

The main question could involve how much environmental damage, how many lives lost or ruined, and how much stealing from the future will we roll over for? How much kicking in the face will we endure before fighting to make more humane the answer to the question: Is corporate profit more important than Life on Earth?

Power never concedes anything without a fight. Will we ever muster the focus and courage to take the fight directly to such as too-billionaire psychopaths for which their fair share equals, “…all of it”—and that includes the future of life on Earth?

For more information regarding Dilbit, ADO, and illusions of KXL public “benefits”, please see:  Keystone XL: DilBit Through the Heartland by clicking here.

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Footnotes:

[1] http://www.huffingtonpost.com/2012/05/22/report-keystone-xl-gas-prices_n_1536227.html

[2] https://www.google.com/search?q=alberta+tar+sands+raw+bitumen&hl=en&client=firefox-a&hs=rII&tbo=d&rls=org.mozilla:en-US:official&source=lnms&tbm=isch&sa=X&ei=qsbjUJH0KMeeiAKfvoHADw&ved=0CAoQ_AUoAA&biw=734&bih=457

[3] http://en.wikipedia.org/wiki/Citizens_United_v._Federal_Election_Commission

[4] http://insideclimatenews.org/news/20120626/dilbit-diluted-bitumen-enbridge-kalamazoo-river-marshall-michigan-oil-spill-6b-pipeline-epa

[5] http://sierraclub.typepad.com/compass/2012/09/transcanada-keystone-toxic-tarsands-flip-flops.html

[6] https://www.google.com/search?q=kochs%27+war+on+obama&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a#hl=en&client=firefox-a&hs=2f9&rls=org.mozilla:en-US:official&q=koch%27s%27+war+on+obama&spell=1&sa=X&psj=1&ei=WbpMUbqBB-HniAKw5oCoDg&ved=0CDAQBSgA&fp=1&biw=734&bih=468&bav=on.2,or.r_cp.r_qf.&cad=b&sei=bDxOUaqNM4LQiwLuo4CgCA
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This article is written by Rand  Clifford and is posted at
http://www.veteranstoday.com/2013/03/23/keystone-xl-pipeline-reeks-of-koch/
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