BLOGGER CONFERENCE CALL MODERATOR: Jane Van Ryan, API SPEAKERS: Cindy Schild, Refining Manager, API Rayola Dougher, Senior Economic Advisor, API FRIDAY, FEBRUARY 25, 2011

Transcript by Federal News Service Washington, D.C.

(Music.) 00:01 OPERATOR: You’re listening to “Energy Conversations with API,” brought to you by the people of America’s oil and natural gas industry. (Music.) 00:13 JANE VAN RYAN: We’re going to open up the blogger conference call with a couple of opening statements. The speakers today are Rayola Dougher and Cindy Schild. You should have received that information when you received the invitation to the blogger call. And without further ado, why don’t we get started? Cindy, would you like to begin? 00:31 CINDY SCHILD: Sure. Good morning, everyone. I’ll have a few opening comments and then Rayola Dougher, API’s senior economic advisor, will offer her perspective before we go to questions. Also on the phone with us this morning is Dan Gunderson, our representative in the field, who is available to answer your questions as well. The United States Department of State is reviewing a permit application for the construction of the Keystone XL Pipeline Project, designed to bring Canadian oil to American refineries. This is an extremely important project that, if approved, will bring crude oil from our friendly, reliable northern next-door neighbor to refineries along the Gulf Coast, replacing millions of barrels of oil now imported from elsewhere. Oil sands development in Canada is leading to the creation of more than 342,000 new American jobs, has the potential to add 34 billion (dollars) to gross domestic product by 2015, according to the Canadian Energy Research Institute. With the State Department decision on this pivotal pipeline now not expected until mid to later this year, the estimated 13,000 new jobs and $20 billion dollars in spending to the U.S. economy from this project alone stand on hold. 01: 54 Positive action on the permit could not come at a more important time for our nation. Not only is this a chance for the White House to strengthen U.S. energy security and help plan for the nation’s energy future, but it’s also an opportunity to take a specific, public and dramatic action in support of creating new U.S. jobs. As the time approaches for the State Department to make its decision, you will no doubt hear a lot of arguments, pro and con, regarding this issue. There is too much misinformation being disseminated by those who, for whatever reason, insist that all use of oil by Americans halt immediately. We believe it is important that Americans know the facts regarding the construction of this pipeline and the flow of millions of barrels of oil from Canada, what it will mean to the United States and our citizens. That is all that I have. And now Rayola will highlight some of these facts for us.

02:52 RAYOLA DOUGHER: Good morning, everyone. Events such as the recent turmoil in Libya have the effect of causing Americans to become concerned about how they will affect the supply of crude oil and what that that will mean to their pocketbooks. And these concerns are certainly justified. American consumers know that the United States still gets a good deal of its oil from politically unstable regions of the world. One fact that is not as well known, however, is that our number-one supplier of imported oil is not thousands of miles away on the other side of a vast ocean. It is instead our friendly and reliable neighbor to the north. And as such, Canada provides 12 percent of America’s oil consumption. And Canada can provide more of the energy America will need through development of its vast oil sands reserves – the second-largest proven oil reserves on earth. In fact, over one-fourth of America’s daily oil needs could come from Canada by 2030. That’s enough to meet more than all of the oil consumed by the 15 Midwestern states today or it’s enough to supply almost two-thirds of all the gasoline used in the United States today. And that would substantially lower our reliance for our oil on potentially unstable regions of the world. In addition to replacing millions of barrels of oil now imported from elsewhere, the development of oil sands in Canada can support significant economic growth and job creation in this country, as Cindy mentioned. At a time when our economy is still fragile and jobs are still scarce, this is an opportunity we can’t afford to miss. And some interest groups oppose oil sands development and seek to block the permitting of U.S. facilities to handle oil sands imports. They claim renewables can substitute for oil. But the reality is that renewables cannot and will not replace oil or oil imports for decades to come. And if we don’t import oil from Canada, we will import it from elsewhere. And other global consumers, including China, will buy oil sands oil. 04: 59 Restricting imports of oil from Canada will not reduce overall oil use or reduce environmental impacts. And these environmental concerns should and are being addressed. Canada is implementing serious programs to protect forests, manage water use and return land back to its natural state after operations are completed. And on a lifecycle or “well-to-wheels” greenhouse gas emission basis, oil derived from Canadian oil sands is comparable with other crudes refined in the United States, including oil from California. For decades, this crude has been transported by pipeline under existing regulations, which require operators to take into account product characteristics to mitigate risk. Pipelines are the safest and most efficient way to move energy products. Approval of the pipeline will ensure that more of Canada’s oil will be processed by U.S. refineries, which are the cleanest and most efficient in the world.

And so for all these reasons, we believe the State Department should move ahead, without any further delay, and improve permitting for TransCanada’s Keystone Pipeline expansion project. (Music.) 06:12 OPERATOR: Thank you for listening to this installment of “Energy Conversations with API.” For more information or to join the conversation, visit energytomorrow.org. That’s www.energytomorrow.org. (Music.) (END)

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