Nebraska Governor Appoves Alternative Route Of Keystone XL Pipeline: Will Buffett/Obama Give The Green Light?

Tyler Durden's picture


One of the more contentious issues in the past year for America's environmentalists was the (successful) blocking of the Keystone XL pipeline over fears that it would contaminate the Ohallala aquifier in the Sandhill region of Nebraska, a major source of groundwater, and an issue over which none other than the president was quite vocal just about a year ago when he killed the idea. At least that was the pre-spun, socially accepted reason (for the real one read below). It is now time to revisit the fate of this critical pipeline following today's news that the Nebraska governor has approved a new route for the pipeline, one which avoids the most sensitive area in the Sandhills. The response from the opponents has not been late in coming: "Governor Heineman just performed one of the biggest flip-flops that we've in Nebraska political history," said Jane Kleeb, executive director of the group Bold Nebraska. And now it will be up to Obama, whose second inauguration speech had a dedicated segment to clean energy, to kill or let it go through. Since the decision will once again be about politics, the outcome is all but certain, but at least it will provide yet another theatrical sideshow to add to all the others emanating from DC these days. After all it is all about distraction.

From AP:

Nebraska Gov. Dave Heineman approved a new route for the Keystone XL oil pipeline on Tuesday that avoids the state's environmentally sensitive Sandhills region.


Heineman sent a letter to President Barack Obama confirming that he would allow the controversial, Canada-to-Texas pipeline to proceed through his state.


The project has faced some of its strongest resistance in Nebraska from a coalition of landowners and environmental groups who say it would contaminate the Ogallala aquifer, a massive groundwater supply.


Canadian pipeline developer TransCanada and some workers' unions say the project is safe and will create thousands of jobs.


The original route would have run the pipeline through a region of erodible, grass-covered sand dunes. The new route skirts that area, although the pipeline's most vocal critics remain firmly opposed to it as well.


"Governor Heineman just performed one of the biggest flip-flops that we've in Nebraska political history," said Jane Kleeb, executive director of the group Bold Nebraska.


Heineman said previously that he would oppose any pipeline route through the Sandhills region. In his letter to Obama, he said the new 195-mile route through Nebraska avoids the Sandhills but would still cross part of the aquifer. Heineman said any spills would be localized, and the clean-up responsibilities would fall to TransCanada.


The governor said the project would result in $418.1 million in economic benefits for the state and $16.5 million in taxes from the pipeline construction materials.

And for those wondering why we are confident the answer this time, like a year ago, will be a resounding no, here is a repost from precisely one year ago:

Obama Puppetmaster Warren Buffett Biggest Winner From Keystone Pipeline Rejection


Just when one thinks American crony capitalism couldn't hit new lows, here comes Warren Buffett and his personal puppet, the president, proving everyone wrong once more. Because if one thinks there is no (s)quid pro quo for all that "sage" advice that Buffett has been giving to Obama on extracting as much wealth as possible from future wealthy Americans (before they decide they have had enough with this crony shit and leave the country for good), one would be fatally wrong. As it turns out, it is not just natural resources and aquifer purity that Obama had in mind when sealing the fate of the Keystone XL pipeline. No - it appears there were far more relevant numerial metrics that determined Obama's decisions. Such as the bottom line number of Buffett's Burlington Northern, which according to Bloomberg, is among U.S. and Canadian railroads that stand to benefit from the Obama administration’s decision to reject TransCanada Corp.’s Keystone XL oil pipeline permit. '“Whatever people bring to us, we’re ready to haul,” Krista York-Wooley, a spokeswoman for Burlington Northern, a unit of Buffett’s Omaha, Nebraska-based Berkshire Hathaway Inc. (BRK/A), said in an interview. If Keystone XL “doesn’t happen, we’re here to haul." And quite delighted to reap the windfalls of unfounded populist fears she forgot to add. Because while the whole "carbon-credit" multi-trillion top line expansion scheme for Goldman under the pretense of actually caring for the environment may have collapsed, it is not preventing others from trying and succeeding where even Goldman has failed.

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Tue, 01/22/2013 - 14:03 | 3176032 francis_sawyer
francis_sawyer's picture

 "The shortest distance between two points is a straight line [in the opposite direction]"

~ Ty Webb

Tue, 01/22/2013 - 14:05 | 3176046 Say What Again
Say What Again's picture

Buffet will give the green light if he stands to make mo money.

Tue, 01/22/2013 - 14:08 | 3176052 hedgeless_horseman
hedgeless_horseman's picture



Obama / Buffett


Tue, 01/22/2013 - 14:09 | 3176066 ParkAveFlasher
ParkAveFlasher's picture

This p-shop = all kinds of awesome.

Tue, 01/22/2013 - 14:12 | 3176079 nope-1004
nope-1004's picture

Obama re-elected, now anything goes.

Tue, 01/22/2013 - 14:21 | 3176112 Turd Ferguson
Turd Ferguson's picture

Ths Sand Hills ARE beautiful. And this course is fantastic.

Tue, 01/22/2013 - 15:21 | 3176145 Frozen IcQb
Frozen IcQb's picture

I would prefer the project to drag-on thus exposing the weasel behind Obama's hypocrisy and bravado.


Tue, 01/22/2013 - 14:47 | 3176239 withnmeans
withnmeans's picture

I live in the Sandhills "most of the time", this is no place for a pipeline.

Our Gov. Heineman is clueless, of course he has followed other clueless spineless Gov. here.

I guess all it takes is money, right!

Tue, 01/22/2013 - 17:56 | 3176986 Bicycle Repairman
Bicycle Repairman's picture

Just guarantee Warren a certain % shipped by rail and environmental concerns will disappear.  If that doesn't work, then find out who is paying those environmentalist whores and cut him off a slice.

Tue, 01/22/2013 - 14:11 | 3176074 SamAdams
SamAdams's picture

The pipeline is needed to bring oil to the Houston port for shipment to China.  It will happen, in fact, they are already building it.  You did know that China owns much of the gas and oil rights purchased from Devon and Chesapeake?  I call it collateral for all that worthless US paper China is holding.

Tue, 01/22/2013 - 14:33 | 3176166 johnnymustardseed
johnnymustardseed's picture

Let those Canadians ship that shit oil through their own country to China... but of course they want our refiners to turn it into gasoline for them. Fuck this pipeline, it is a joke

Tue, 01/22/2013 - 14:53 | 3176261 Frozen IcQb
Frozen IcQb's picture

F*ng ”A”,  Bubba,

We’re self sustaining!

Tue, 01/22/2013 - 15:06 | 3176324 Matt
Matt's picture

We don't want running through our coast, either. Why should we be exposed to the risks of spills, in exchange for no benefits?

Tue, 01/22/2013 - 14:58 | 3176284 Carl Spackler
Carl Spackler's picture

I don't buy that one.

The refined petroleum oil (distillates, #2, gasoline, tar & asphalt) is for our own consumption.  The refineries are near Houston with direct attachment to all of the major end-user delviery channels/pipelines.

If the Chinese want petroleum, the Canadians will pipe it to Vancouver and ship from there, so more Canadian businesses profit.

They are not shipping it around the continent of South America because the super tankers won't fit through the Panama Canal.

Tue, 01/22/2013 - 15:14 | 3176351 SamAdams
SamAdams's picture

They do want to take another pipeline from Calgary to through BC to the coast.  BUT, the Indians (land) are holding out for a greater share of the profits.  So no deal, yet....  Did I mention that China owns energy leases in Canada too? 

IS IT JUST ME, OR IS THE USA A NET ENERGY IMPORTER?  it would be funny if it weren't sofaking sad!

Tue, 01/22/2013 - 15:48 | 3176511 ParkAveFlasher
ParkAveFlasher's picture

The Panama Canal is being dredged and widened, correct?  Why couldn't Texas become an even bigger refinery terminal for trans-Pacific oil, if it isn't already?

Tue, 01/22/2013 - 16:30 | 3176686 Ima anal sphincter
Ima anal sphincter's picture

Agreed.... there are no tankers leaving southeast Texas "with" oil. Ship it in or pipe it in, we'll make it useful. It sure does fuck up the air around here though.

Tue, 01/22/2013 - 19:05 | 3177179 johnnymustardseed
johnnymustardseed's picture

You are wrong, gasoline is our largest export already. It will be exported. Canadians don't have the refinery capacity

Tue, 01/22/2013 - 14:15 | 3176085 trav777
trav777's picture

goooooo keystone!!  I have some canadian energy plays that stand to benefit.

Tue, 01/22/2013 - 14:44 | 3176229 azzhatter
azzhatter's picture

Warren has a superfly doll to play with. I wonder where the squicky doll is

Tue, 01/22/2013 - 14:55 | 3176269 Flakmeister
Flakmeister's picture

We all don't like Buffet, but it is him or the Kochs that benefit, pick your poison...

Tue, 01/22/2013 - 14:11 | 3176073 Stoploss
Stoploss's picture

But he runs the risk of job creation.


Tue, 01/22/2013 - 14:18 | 3176106 insanelysane
insanelysane's picture

I hear the pipeline is now going through Rock Ridge.  Buffet is lining up a crew to do a Number 6 on them.

Tue, 01/22/2013 - 14:33 | 3176175 meltdown
meltdown's picture

The greatest comedy of all time! Super kudos for the referance

Tue, 01/22/2013 - 14:18 | 3176053 Dr. Richard Head
Dr. Richard Head's picture

The longest distance between two points is an unfamiliar short cut. - Dr. Richard Head

Tue, 01/22/2013 - 14:20 | 3176111 FL_Conservative
FL_Conservative's picture

Obama found the route of the pipeline he liked best when America bent over.

Tue, 01/22/2013 - 16:16 | 3176637 Albertarocks
Albertarocks's picture

Exactly.  And on that note:

"One of the more contentious issues in the past year for America's environmentalists was the (successful) blocking of the Keystone XL pipeline over fears that it would contaminate the Ohallala aquifier in the Sandhill region of Nebraska, a major source of groundwater, and an issue over which none other than the president was quite vocal just about a year ago when he killed the idea."

So of course nobody should be surprised then that approvals have been granted a little faster than usual for the transmission of LNG to Kitimat on B.C.'s west coast for the shipment of LNG to Asian markets... full steam ahead.  Who should be surprised that this is the result?  Nobody!

Tue, 01/22/2013 - 16:31 | 3176684 earleflorida
earleflorida's picture

perhaps... and perhaps [k]not: according to modern theories of higher mathematics-- the shortest distance between to points is a curve, and not a line?

This explains why time is a curve!


Tue, 01/22/2013 - 14:04 | 3176038 surf0766
surf0766's picture

They will not give a green light. They will not even comment on it.

Tue, 01/22/2013 - 14:07 | 3176055 Rainman
Rainman's picture

right...they shoulda called it the Greenstone Pipeline

Tue, 01/22/2013 - 14:06 | 3176044 JLee2027
JLee2027's picture

What they can't cut through Iowa and avoid everything?

Tue, 01/22/2013 - 14:10 | 3176069 duo
duo's picture

If they could run it through Illinois, they would.  More union jobs.

Tue, 01/22/2013 - 14:32 | 3176159 Fiat Currency
Fiat Currency's picture

Umm ... pretty sure those refineries in Wood River and those giant storage tanks in Patoka are in Illinois.

Tue, 01/22/2013 - 14:08 | 3176058 rqb1
rqb1's picture

there was a time when i respected warren

Tue, 01/22/2013 - 14:21 | 3176118 mayhem_korner
mayhem_korner's picture



Your sins are forgiven.

Tue, 01/22/2013 - 14:10 | 3176068 Dr. Engali
Dr. Engali's picture

I thought we took care of this



"We’ve added enough new oil and gas pipeline to encircle the Earth and then some."


Barry Soetoro 2012 presidential debates.



I guess not.


Tue, 01/22/2013 - 14:18 | 3176097 michigan independant
michigan independant's picture

Election over, rail stocks cheap soon, green masks to surface now as tree huggers tossed aside. Coal tolerated since the memo we cannot kill them yet since your light switch is that nasty king coal you have planned for the jevon economy of last stand.

Tue, 01/22/2013 - 14:18 | 3176104 azzhatter
azzhatter's picture

Obama tipped his hand yesterday with his greenie agenda inauguration speech. I say it's a no go. Buffett lays a couple of male hookers on Ozero and it's a done no go

Tue, 01/22/2013 - 14:26 | 3176133 mayhem_korner
mayhem_korner's picture



So throw a little bone to Bwanee's sourcing agency to turn the other cheek?  Sounds about right.  Hadn't realized Barry could be had for a night of ankle-grabbing.  Then again, that Wookie of a wife could drive anyone to Bob Dole's little blue pills...

Tue, 01/22/2013 - 14:23 | 3176123 hallywood
hallywood's picture

Speaking of straight llines how about from Terrace, BC to China? Houston I think we have a problem.

Tue, 01/22/2013 - 14:25 | 3176129 PUD
PUD's picture

Excellent news!! Now the rape of Alberta and the largest co2 emitting pos project in human history can continue full bore so that fat fuck americans can drive drive drive their Tahoes to their lard packed hearts content!!  It's an american birthright don't ya know

Tue, 01/22/2013 - 14:30 | 3176146 mayhem_korner
mayhem_korner's picture



Trying cold turkey on the SSRIs again?

Tue, 01/22/2013 - 14:32 | 3176169 Terminus C
Terminus C's picture

Come on... it's only an industrial site that covers the same square milage as the state of Florida.  You greenies are overreacting.

Tue, 01/22/2013 - 14:44 | 3176232 PUD
PUD's picture

Will be the size of England and put out more greenhouse gasses than any single project ever done by mankind. As well as poisoning the air and water timber and wildlife. But fat fuck americans have a birthright to cheap energy for giant cars don't ya know

Tue, 01/22/2013 - 14:51 | 3176258 mayhem_korner
mayhem_korner's picture



What about the hard-working, honest, family-minded, gun-toting Americans?  Or do you just have one broad brush in your greasy hands, incapable of anything but projecting self-portrait?

Tue, 01/22/2013 - 14:55 | 3176271 Fezter
Fezter's picture

If you're worried about co2 emissions, I suggest you stop breathing.

Tue, 01/22/2013 - 15:28 | 3176414 Matt
Matt's picture

PUD = AnAnonymous?

Tue, 01/22/2013 - 17:11 | 3176816 rwe2late
rwe2late's picture

 The global Pentagon is the world's single biggest user of petroleum products and worst polluter. Add the industries that supply the war machine to the total.

But don't most Canadians in fact support a war on the world?

Harper does.

Most Canadian and US citizens have a common foe

(whether they realize it or not), and it isn't AlQaeda or each other.

Tue, 01/22/2013 - 18:08 | 3177021 Dan Conway
Dan Conway's picture

This grateful american says thank you very much!  I guess that CO2 problem you mentioned in an earlier post can be used to heat-up our northern american friends.   Oh, I forgot,  that Co2 thingy doesn't really exist.

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