Rep. Duane DeKrey requested that Lynn Helms, director of the North Dakota Industrial Commission’s Division of Mineral Resources calculate the fiscal impact to North Dakotans of President Obama’s decision to sandbag the building of the Keystone XL pipeline.
DeKrey forwarded the results to me via email. This is from Helms’ analysis of costs to North Dakota producers, mineral owners as well as lost tax revenues:
President Obama rejected the Keystone proposal on January 18, 2012. Prior to that date the 2012 price differentials had been declining from the 2011 “normal” values of North Dakota Sweet $6.64 below WTI and WTI $16.38 below North Sea Brent. North Dakota Sweet to WTI differential peaked in March, but WTI to Brent differential continues to rise as the Cushing, OK bottleneck grows worse due to no Keystone XL pipeline. The January and February produced and transported volumes are actual while March and April are estimated based on the conservative January to February increase. Total cost to North Dakota entities of the rising price differentials following rejection of the pipeline is approximately $573 million to date.
Here’s the chart attached to the analsysis:
That’s a big, big impact to North Dakota because of President Obama’s obstructionism.
If you want to know why North Dakota Democrats – specifically Senate candidate Heidi Heitkamp and House candidate Pam Gulleson – were quick to distance themselves from Obama on his Keystone obstructionism, this is why.