Timothy Geithner’s Warburg Pincus May Profit from Tar Sands Exports
The Keystone XL Clone is designed to accomplish the same goal as TransCanada‘s Keystone XL: bringing Alberta’s tar sands to Gulf coast refineries and export market. It consists of three legs: the Alberta Clipper expansion as the northern leg, the Flanagan South middle leg and the Seaway Twin southern leg.
Green groups have called the northern leg an “illegal scheme” because the Enbridge Alberta Clipper expansion proposal didn’t go through the normal State Department approval process. Instead, State allowed Enbridge to add pressure pumps to two separate-but-connected pipelines on each side of the border and send Alberta’s diluted bitumen (“dilbit”) to market.
Enbridge dodged a comprehensive State Department environmental review, which involves public hearings and public commenting periods. The groups say this is illegal under the National Environmental Policy Act (NEPA) and have demanded a re-do for Enbridge’s application process.
“The only thing worse than dirty oil is dirty oil backed by dirty tricks. This is the fossil fuel equivalent of money laundering,” Kieran Suckling, executive director of the Center for Biological Diversity, said in a press release announcing the lawsuit. “The Obama administration should be ashamed of itself for letting Enbridge illegally pump more dirty tar sands oil into the United States.”
Geithner’s connection to the lawsuit not only adds intrigue, but also reveals the purpose of Enbridge’s Keystone XL Clone: an export fast-track to the global market.
Timothy Geithner, MEG Energy, Warburg Pincus
Geithner departed as Secretary of the Treasury in January 2013 and in November of that year, Warburg Pincus named Geithner president of the firm. He assumed the role beginning March 2014 — a natural transition given the Warburg family played a key role in the creation of the U.S. Federal Reserve Bank.
But what do Geithner and Warburg Pincus have to do with any of this?