More Oil from Canada, Less from Venezuela

Within five years, a new pipeline will make U.S. oil supplies more reliable.

Venezuela's president Hugo Chavez is threatening to cut off oil exports to the U.S. But a new oil pipeline from Canada could help undercut his leverage in the future.

Expect President Obama to approve the new connection from Canada to Texas, but not until after the November elections. Many Democrats are against it, and Obama doesn’t want a fight during the campaign. By year-end, though, he’ll grant the permit, arguing the U.S. will need the oil during the 10-20 years it will take to build up alternative energy supplies.

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Associate Editor, The Kiplinger Letter