Canadian oil is safer than Mideast oil

The government estimates that America will require 21 percent more energy in 2035 than we did in 2009. Where will this energy come from? A newly formed group called the Partnership to Fuel America thinks we should develop the energy resources in North America rather than continuing to depend on distant and unstable sources in the Middle East and South America.

The Partnership to Fuel America, of which the Montana Petroleum Marketers and Convenience Store Association recently became partners, is a group of businesses and industries that want to see the country focus on energy development with more stable allies, such as Canada. The recent proposal by TransCanada to expand their Keystone pipeline system as a way to increase capacity and bring more oil-sands crude to Midwestern refineries is one way in which we may be able to meet our growing energy demands.

As America looks for ways to fill its growing energy needs, the Montana Petroleum Marketers and the Partnership to Fuel America believe it is crucial to look first at North American resources. The expansion of the Keystone system will increase the amount of oil imported from Canada to an estimated 1.1 million barrels per day; Canadian oil represents a stable and affordable energy source. The long-term benefits of increasing trade with our friendly neighbor to the north will be greater energy security, as we will no longer need to depend on unfriendly or politically unstable regimes.

We also see great potential for Montana in the Keystone XL expansion. As part of this expansion, TransCanada has agreed to construct an oil on-ramp near Baker. This on-ramp will make it possible for Montana oil producers to ship their oil to domestic refineries. The on-ramp will remedy a bottleneck in the pipeline system that has forced Montana producers to accept lower-than-market prices for their oil. The new infrastructure created by the expansion of the pipeline will open up new markets for our local producers.

In the short term, the Keystone XL expansion will create nearly 20,000 well-paying jobs across the Midwest during the construction, and contribute billions to the struggling U.S. economy.

The Keystone XL expansion will continue an oil boom in Montana; with the influx of dollars and workers, businesses all along the pipeline route will see increased traffic.

The Montana Petroleum Marketers and Convenience Store Association's 135 distributor and convenience store members will benefit from more stable gas prices, which will bring in more customers. While this project will clearly positively impact Eastern Montana, the effects will not be limited to the eastern region, but felt across the whole state. For example, it is estimated that the project will increase the Gross State Product by as much as $1.9 billion.

America stands at an energy crossroads. The Partnership to Fuel America and its partners want to make sure America chooses the right road. The Keystone expansion is a step in the right direction for American energy policy.

Ronna Alexander is the executive director of the Montana Petroleum Marketers and Convenience Store Association.