Wednesday, October 23rd, 2013

Addressing Multiple Errors in Flawed Analysis of Keystone XL

An environmental activist group called International Forum on Globalization published a report this week attempting to link Koch to the proposed Keystone XL Pipeline. Since early 2011, we have issued numerous statements that we are not involved in the Keystone XL Pipeline project, but activists and conspiracy theorists continue to try to advance this false storyline.

The IFG report asserts that Koch will make $100 billion in profits from the Keystone XL Pipeline. Not only is the arithmetic behind that number all wrong as detailed here, but the report contains many more fundamental errors as noted in this story. Here are several more significant inaccuracies:

  • On page 9, the report makes the claim that Keystone XL “would connect to Port Arthur, Texas  where the Koch Pipeline Company (KPC) already has a major hub servicing the Gulf Coast, an area that harbors half of all U.S. oil-refining capacity. This positions KPC to benefit from toll price increases due to increased demand for their pipeline capacity in the gulf region as a result of KXL.” But the pipelines in question in Port Arthur are chemical lines that connect to and serve FHR’s Port Arthur chemical plant. These lines cannot transport crude oil, making IFG’s entire premise inaccurate. Also, the Keystone XL Pipeline that would carry oil sands will not and cannot connect to these chemical lines.
  • The representations concerning our Koch Exploration business and its “ownership” of oil sands land are not accurate.  We do not own 2 million acres in Northern Alberta.
  • Koch is not engaged in the type of exploration the report attributes to us.  In fact, we have very limited active production.

 

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