PRES. OBAMA SAYS NO TO THE KEYSTONE PIPELINE

"President Obama, denouncing a “rushed and arbitrary deadline” set by congressional Republicans, announced Wednesday that he was rejecting a Canadian firm’s application for a permit to build and operate the Keystone XL pipeline, a massive project that would have stretched from Canada’s oil sands to refineries in Texas." (See: "Obama administration rejects Keystone XL pipeline").

"Obama said that the Feb. 21 deadline, set by Congress as part of the two-month payroll tax cut extension, made it impossible to adequately review the project proposed by TransCanada." id.

See this map of the proposed pipeline's route here:

Environmental groups have lobbied against the project, arguing that the extraction of oil sands — a process more akin to strip-mining than drilling — is so energy-intensive that it contributes to climate change and they also assert that the pipeline could leak, possibly endangering the giant Ogallala Aquifer, which provides drinking and irrigation water to much of the Great Plains. id.

"This is the second time the Obama administration has tried to deflect political pressure over the proposed $7 billion, 1,700-mile Keystone XL pipeline, which last year sparked debate over U.S. energy and environmental policy." id.

The administration will allow TransCanada to reapply for a permit after it develops an alternate route around the Nebraska Sandhills, a sensitive habitat, and TransCanada’s chief executive, Russ Girling, issued a statement saying that the company will reapply and that he expects that “a new application would be processed in an expedited manner” so the pipeline could be carrying crude by late 2014. id.

"The pipeline, which requires a federal permit from the State Department because it crosses an international border, had been under review for more than three years." id. "Some political observers said the effort by Congress to pressure the president into making a quick decision might have backfired." id.

The jobs issue has been a major point of contention. Ads taken out by pipeline supporters routinely say the project would create 20,000 jobs, but TransCanada’s has said that Keystone XL would create 20,000 “job-years” — including 13,000 for direct construction and 7,000 for supply manufacturers. id. "Construction would last two years, and the number of construction workers employed each year would total 6,500." id. "

"President Barack Obama’s decision yesterday to reject a permit for TransCanada Corp.’s Keystone XL oil pipeline may prompt Canada to turn to China for oil exports." (See: "Obama’s Keystone Denial Prompts Canada to Focus on China").

Listen to Bob and Fred talking about this pipeline on KSYL radio today:

KSYL ON THE PIPELINE (1:46)

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