API

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.

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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.

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