This week, President Obama used his veto power for only the 3rd time to strike down a law authorizing the Keystone XL pipeline. This controversial project would allow a Canadian company to send tar sands crude oil through the United States to Gulf Coast oil refineries, thereby continuing our commitment to a dirty fuel source while only creating few permanent jobs and exposing us to environmental risks, including oil spills.
The Keystone pipeline is clearly a legislative priority for the Koch brothers, as evidenced by Koch-back groups including Americans for Prosperity and their state affiliates issuing a myriad of press releases, letters, and calls for action in favor of the project. After investing $290 million through the 2014 election, it’s no wonder that the new GOP-controlled Congress acted immediately to please their benefactors by voting on legislation that would bypass the permitting process and fast-track the pipeline. The GOP leadership is continuing to do the Kochs proud by vowing that the veto is not the end of this fight.
Some experts say the Kochs could profit indirectly from the Keystone pipeline through the value of their vast holdings in Canadian tar sands. Over the years, the Kochs have quietly become one of the largest foreign holders of leases in the region by acquiring 1.1 million acres. Rolling Stone reported that according to a University of Alberta economist, “Koch Industries’ tar-sands leaseholdings have them hedged against the potential approval of Keystone XL. The pipeline would increase the value of Canadian tar-sands deposits overnight. Koch could then profit handsomely by flipping its leases to more established producers.”