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The Obama administration today formally rejected a bid by Canadian energy company TransCanada to build a $7 billion oil pipeline linking the tar sands of Alberta to refineries in the Gulf of Mexico.
The Keystone XL project, which was estimated to create thousands of U.S. jobs, became an election-year lightning rod, embroiling President Obama, congressional Republicans, labor unions and interest groups in a heated debate over jobs and the environment.
The State Department, which holds the authority to approve or reject pipelines that cross an international boundary, said in November that it would delay a decision on Keystone to allow for further study of the environmental impact along its 1,700-mile route.
Then in December, Congress tried to force the president to make a decision proposal within two months, tucking the mandate into the payroll tax cut bill that Obama ultimately signed into law.
But the president said today in a statement that the congressionally imposed deadline did not provide adequate time for the State Department to finish a customary review of the pipeline's route through six states.
"The rushed and arbitrary deadline insisted on by Congressional Republicans prevented a full assessment of the pipeline's impact, especially the health and safety of the American people, as well as our environment," Obama said.
"As a result, the secretary of state has recommended that the application be denied. And after reviewing the State Department's report, I agree."
Sources say the administration's decision effectively hits the reset button on a review process that has been underway for several years, but does not preclude TransCanada from resubmitting a proposal for reconsideration.
Cynics will of course assume this is political posturing in deference to the coming election year.
But I would be very surprised if this deal is resurrected after being slapped down this hard by the President himself. And I kind of think in his second term we are going to see a MUCH more progressive Obama than we have seen thus far.
Hopefully this will calm a few fears amongst the environmentalists who were quite angry with Obama for not speaking out earlier. But I have my doubts.
Good for President Obama. I'm noticing the media is not correctly reporting this issue - as usual! What assholes!
ReplyDeleteIt can become a possibility IF the route is changed so as to not create harm to the water issue...per President Obama.
Thousands of jobs! It's a shame Republicans don't care for infrastructure improvements. Oh well, there's always tax cuts for the rich.
ReplyDeleteIt's a shame Willard has been too busy to create jobs the last six years he's been on the campaign trail.
According to Sarah Palin, this is why we're all on foodstamps.
ReplyDeleteIt's my understanding that the oil will not be for domestic use anyway.. that it will all be shipped to overseas markets!
ReplyDeleteSo the argument that it will benefit the U.S A. public is bogus. Correct me if I'm wrong.
Firstly -- the State Dept had good reason to reject the project, because 2 months was not sufficient time to study the implications of a rerouting of the original proposal.
ReplyDeleteSecondly -- the President told the Cdn PM that the decision was "without prejudice"; in other words, nothing is stopping TransCanada from re-applying.
Give these factors, I don't see how the GOP can make any kind of case against the President for this decision. It was their stupidity that attached the 2 months' deadline to the bill. No doubt they hoped (and prayed, of course, to the god they firmly believe is on their side) that the President would put the kibosh on the project so that they could use it to campaign against him. They just didn't think it through. Typical!
Oh yes, and thirdly -- GOP estimates of job creation via this project are more than 10 times the # of jobs which might actually have been created. Lots of info available to back this up.
TRANSCANDA??? Why is that name so familiar....didn't Baldy give away 500 million Alaskan dollars to this company?
ReplyDeleteThat's another slap in her mannish face! Oh and this crap that Newt would love to have Baldy have a "role in his administration"... just became his death knell!
Apparently Newt didn't get the memo or he's ignoring it..but EVERY THING Baldy touches....turns to SHIT!
Ask Christine "Witch" O'Donnell...Joe "Endorsement! What Endorsement" Miller and the rest of the losers!
Niki Haley is thisclose to a recall...so soon she'll be added to the loser pile!
Oh, Lordie. If you want a laugh (or a scare) check out the C4Pee special thread on this very topic.
ReplyDeleteCrikey.
http://conservatives4palin.com/2012/01/breaking-obama-to-reject-keystone-pipeline.html
The man is a chess master! People just don't understand the patience of this man and how he sits back and observes and then calculates his next
ReplyDeletemove.
O/T CNN video of Gingrich on Palin
ReplyDeletehttp://situationroom.blogs.cnn.com/
2012/01/18/blitzers-blog-gingrich-
tells-me-he-smells-victory/?hpt=hp_t1
The pipeline is critical to Canada, which must have infrastructure in place to export its growing oil sands production from northern Alberta. The region has the world's third largest oil reserves with 170 billion barrels of proven reserves. Daily production of 1.5 million barrels from the oil sands is expected to increase to 3.7 million in 2025. Only Saudi Arabia and Venezuela have more reserves.
ReplyDeleteMacDougall said Harper also reiterated to Obama that Canada will look to sell its oil to Asia. Harper previously called Obama's decision to delay the Keystone XL delay a "wake up call" and said Canada is far too dependent on the U.S., which Canada relies on for 97 percent of its energy exports.
With the product of oil sands and pipeline delivery to the U.S. under perennial clouds of environmental objection, Canada wants to ensure a market for the growing production.
The price of North American oil also sells for less than oil sold internationally because of a glut of Canadian oil in Cushing, Oklahoma, so shipping the oil to Asia would command a better price.
Alberta Premier Alison Redford said Obama's decision strengthens Canada's resolve to pursue access to alternative markets.
http://abcnews.go.com/International/wireStory/canada-disappointed-pipeline-rejection-15388586#.TxdSjPncBpU
look like China going to get the oil.
While USA get there oil from thousands and thousands miles away.
Pipeline to the West.
I agree with you and also feel his second term will not be as conciliatory toward the Republicans. I'm also sure the Republicans know this as well. By the end of his second term, our country should be in much better position than we are now if the Republicans and their leaders, like McConnell and Canton, can be effectively be silenced.
ReplyDeleteAnon @2.25.
ReplyDeleteComplete rubbish.
2:09PM...you thought that Keystone article at "Crazies4Palin" was bad...you should read the one they wrote about Newt putting Baldy in "his administration"!
ReplyDeleteThe patients at the asylum are fighting in the Dayroom! Chairs and tables are being thrown around...it's an all out brawl over there!!!
I think they are going to have to call in for extra staff! What they need is for Security(the Secret Service) over there to see the threats towards the President in that Keystone thread! One lone patient tried to tell one of the screaming idiots shouting "Treason..Impeach Obama..give him the death penalty" that he better be careful!
Too bad that drooling patient doubled down on his threats and I think he may get a visit by the men in white(suits)...very soon!
As a Canadian, I'm all for a pipeline west to Kitimat in BC. So thanks - you've provided the necessary prod to our politicians to start thinking Canada first.
ReplyDelete@2:25
ReplyDeleteDon't hold your breath about a pipeline to the west. The First Nations are dead set against it, and so are plenty of environmentally aware folk. Remember that BC is an earthquake zone. Talk about an environmental disaster! It hurts to even think about it.......Of course, Harper and his ConCronies couldn't care less, just as long as their oil patch pals keep the dollars rolling in.
Given Transcanada's record and what I have read on line, we can all be thankful...See
ReplyDeletehttp://journalstar.com/news/opinion/editorial/columnists/mike-klink-keystone-xl-pipeline-not-safe/article_4b713d36-42fc-5065-a370-f7b371cb1ece.html?mode=story
Also, why can't people see that the oil isn't "ours" It is bound for the internation market. Even if it is drilled in the lower 48 it belongs to the oil company who sell it on the international market to the highest bidder.
Oil that is pumped out of Canadian fields, being piped across the US so that it can be shipped to Europe benefits the US how again?
ReplyDelete2:25 - we may have to pay higher oil prices (and yes, I know this means more than gas because industry uses oil), but really, I would rather risk that than poison our water system.
ReplyDeleteThat XL pipeline was going to pass over The major aquifers (ground water) for a huge part of our country. Oil companies cannot clean up spills. It is not just that they won't.
The Governor of Nebraska wants jobs but he has stood up against this dangerous pipeline.
The only people who would benefit from it would be the speculators. It won't produce that much oil that soon and it won't produce that many jobs. Check your facts.
We cannot regain our water supply once damaged. We cannot regain our croplands once polluted. This "oil sand" must be treated with dangerous chemicals and heat in order to extract and transport it.
Millions of acres of land would have to be bought or condemned for rights-of-way. People would lose farms, homes, livestock. Water and land pollution could be massive.
I hope we never see the XL pipeline! It was badly conceived and was to be pushed through without due diligence because the facts about it are not pretty.
Maple - thanks for the hope. I sincerely pray that the way west is blocked as well.
ReplyDeleteWe simply have to come to grips with the need to change our lifestyles. We cannot trust the oil companies, and we cannot risk our health and the environment so wealthy people become more wealthy.
I have to admit, he's made me nervous a few times with some of the decisions coming out of his administration regarding enviro issues. And I'm not happy at all about his support of GMO's etc.
ReplyDeleteThat said, he's been doing a great job of letting the people who actually do the job of review, permitting, research, etc. DO their job and then acts upon their recommendations without political posturing. I was somewhat concerned that the GOP would put him in a corner on this one - there are NOT the jobs touted by the GOP - and the environmental mess made by this project would be unbelievably devastating - but damn, if the Pres didn't let the GOP fuck themselves on this one. Ha Ha!
Note to self - never play chess with President Obama!
When my family drove the Alcan in 1952 we were advised not to be in Grand Prairie if it was raining. The oil saturating the ground would bog you down there. Well, it was raining when we were in Grand Prairie. We didn't get stuck but that mud was cemented to the underneath of the car we were driving. It was still there many years later when we got a new car. It was hard as a rock and resisted any efforts to get it off. Grand Prairie is where this oil sands project is taking place, according to Conoco.
ReplyDeleteAnon 2:25 China is going to get the oil in any event. Thats why the pipeline goes to the gulf coast. Its current plan also had it hooking up a pipeline to the midwest which would take that oil to China raising the price of oil in the midwest. As some wag put it: Canada gets the money, China gets the oil, the US gets the clean-up of oil spills. Canada needs that pipeline, we do not, so it makes a lot of sense to take our time and get the best deal possible.
ReplyDeleteAnon 2:25 China is going to get the oil in any event. Thats why the pipeline goes to the gulf coast. Its current plan also had it hooking up a pipeline to the midwest which would take that oil to China raising the price of oil in the midwest. As some wag put it: Canada gets the money, China gets the oil, the US gets the clean-up of oil spills. Canada needs that pipeline, we do not, so it makes a lot of sense to take our time and get the best deal possible.
ReplyDeleteThe KeystoneXL pipeline is an EXPORT pipeline. According to the Cornell University study, there would only be about 250 permanent jobs, and under 6,000 temporary jobs. What tar sands oil would do to America's environment could be devastating.
ReplyDeleteThe President made the correct decision today.
http://www.ilr.cornell.edu/globallaborinstitute/research/Keystonexl.html