Even Utah needs the Keystone XL pipeline with all its benefits

The Keystone XL pipeline, bringing crude oil from the rich oil sands regions of Alberta, Canada, to U.S. Gulf Coast refineries was blocked by the Obama administration. It's a decision that means the loss of thousands of jobs. Reconsideration of the pipeline is now delayed until after the U.S. presidential election. Approval of the pipeline would have meant thousands of new jobs and added stability in oil prices and supply. Also, we would have realized direct benefits here in Utah.

In November of 2011, I represented Utah as part of a National Council of State Legislatures' tour of the oil sands developments, specifically, Alberta's Fort McMurray region. I returned home with several lasting impressions.

First, the U.S. and Canada have a special economic partnership and engage in $1.6 billion in two-way trade every day. In Utah, Canada is our third-largest trading partner with a combined $2.6 billion in 2010. Our supply chains are deeply integrated. It's no surprise then that the U.S. is Canada's largest market. More than 8 million U.S. jobs are dependent on trade with Canada.

Secondly, I came to understand that Canada is the largest supplier of crude oil and petroleum products to our country and the largest supplier of energy to the U.S. overall. Mexico is second in imports of crude oil and petroleum products followed by Saudi Arabia, Nigeria and Venezuela. Excluding Canada, the governments of these countries can be unstable, as we know. Add the problems of Iran's threats to block the Strait of Hormuz, where one-fifth of the world's oil supply flows, and it becomes clear why oil prices are highly volatile.

Given these facts and the fact that Canada has abundant resources (the third-largest oil reserves in the world after Saudi Arabia and Venezuela), growing production, political stability and high environmental standards, everything in our power should be done to ensure that the U.S. receives an uninterrupted and increased flow of crude oil and petroleum products. If additional markets for Canadian oil can't be found in the U.S., other markets will be sought, most notably China. The oil will flow somewhere.

Furthermore, there are several other pipelines already crossing the U.S./Canadian border and have been operating for years without many problems. The Keystone XL represents a new opportunity to deliver more Canadian crude to the U.S. Gulf Coast where the largest refining market in the world exists. These refineries are looking to replace declining supplies historically coming from Mexico and Venezuela.