Business

It Looks Like Part of the Keystone Pipeline Will Be Built After All

TransCanada Announced Partial Pipeline and Re Applies for Full Keystone Pipeline Project

Pipeline in Texas. (Image: Flickr/ShannonPatrick17)

Last month, we reported that President Barack Obama had rejected plans for the Keystone XL pipeline project, which would have brought a large oil pipeline across the U.S./Canadian border that some said would have carried 700,000 barrels worth of crude oil per day from the Canadian oil sands to refineries near the Gulf of Mexico.

Now, TransCanada, the company who applied for the 1,700-mile pipeline, has released a statement saying a portion of the pipeline will be built anyway.

(Related: Is this the reason Obama said ‘no’ to the Keystone Pipeline?)

Here’s how it read in a statement from the company:

[...] what had been the Cushing to U.S. Gulf Coast portion of the Keystone XL Project has its own independent value to the marketplace and will be constructed as a stand-alone Gulf Coast Project, not part of the Presidential Permit process.

TransCanada reports President Obama supporting this portion of the project in his January statement, which said:

“In the months ahead, we will continue to look for new ways to partner with the oil and gas industry to increase our energy security — including the potential development of an oil pipeline from Cushing, Oklahoma to the Gulf of Mexico.”

TransCanada also announced yesterday that it was re-applying to construct the whole of the pipeline from the U.S./Canada border in Montana to Steele City, Nebraska.

“Our application will include the already reviewed route in Montana and South Dakota,” Russ Girling, TransCanada’s president and chief executive officer, said in a statement. “The over three year environmental review for Keystone XL completed last summer was the most comprehensive process ever for a cross border pipeline. Based on that work, we would expect our cross border permit should be processed expeditiously and a decision made once a new route in Nebraska is determined.”

“The Gulf Coast Project will transport growing supplies of U.S. crude oil to meet refinery demand in Texas,” added Girling.  “Gulf Coast refineries can then access lower cost domestic production and avoid paying a premium to foreign oil producers. This would reduce the United States’ dependence on foreign crude and allow Americans to use more of the crude oil produced in their own country.”

The group states that its re-application for the project is supported by President Obama’s January comments as well, in that he said his rejection of the pipeline was not due to its merit but a restrictive timeline in which to make a decision. New Scientist speculates that given the administration’s support for the Oklahoma-Texas pipeline, approval of the full Keystone project may not be too far behind. Although, it does note that this portion does not include areas that were controversial with environmentalists, such as the Nebraska Sand Hills or the Ogallala aquifer, which services communities in eight states.

White House press secretary Jay Carney said Monday that Obama was pleased with TransCanada’s latest announcement.

“Moving oil from the Midwest to the world-class, state-of-the-art refineries on the Gulf Coast will modernize our infrastructure, create jobs, and encourage American energy production,” Carney said in a statement.

House of Representatives Speaker John Boehner called the White House comments puzzling.

“The president is so far on the wrong side of the American people that he‘s now praising the company’s decision to start going around him,” Boehner said, adding that Obama “can’t have it both ways. If the president thinks this project is good for America, he knows how to make it happen right away. Until he does, he’s just standing in the way of getting it done.”

Susan Casey-Lefkowitz, international program director for the Natural Resources Defense Council, said the new, shorter pipeline was “a ploy” to avoid State Department review of the Keystone XL project, which she said would raise U.S. oil prices, send tar sands oil overseas, endanger U.S. homes and waters and contribute to worsening climate change.

The Associated Press contributed to this report. 

 

Comments (33)

  • Pro-Palin
    Posted on February 29, 2012 at 1:37am

    DANG IT ~!~~ These stupid free thinking Americans keep going behind my back and doing stuff without me or my CZARS or my EPA approval. Call the department of forestry their has to be something they are threatening on some extinction list some place. This goes againts everything I have worked for these past few yrs I will not have job growth that I did not get a kickback from like Solyndra or GM or Chrysler.
    I got it I will tell Michelle to send the Food NAZIS from the local schools to inspect the workers lunch boxes and if they arent eating a blanced diet then they can’t work !!

    Report Post » Pro-Palin  
  • SpankDaMonkey
    Posted on February 28, 2012 at 11:55pm

    .
    Only till he get re-elected by the Free Lunch Crowd. Then it’s back to business as usual…….

    Report Post » SpankDaMonkey  
  • RAMJR
    Posted on February 28, 2012 at 10:14pm

    I’ll believe it when I see it, and if Obama did approve it, look for the attachments to it. Maybe they had to donate to his election campaign…wouldn’t put it past him.

    Report Post »  
  • Netsurfer2
    Posted on February 28, 2012 at 8:59pm

    This is an opening for all Americans to express their dismay about how pricey the oil has become! We are sick of our leaders taking us to the cleaners while taking earmarks and turning a blind eye to what the American people want!

    I’m glad that someone is taking a stand for what America needs!

    Let’s throw them out of office!

    Report Post » Netsurfer2  
  • Ron Staiger
    Posted on February 28, 2012 at 8:53pm

    It will be built as soon as we get this marxist pig of a president out of the white house!

    Report Post »  
  • jackact
    Posted on February 28, 2012 at 7:26pm

    Wonderful.
    Now the power elite, who answer to the bark of government dictated environmental correctness, can continue their plan to export 80% of the oil produced from Keystone overseas to help in their committed stupidity of ‘nation building’.
    No export taxes of course.
    And the middle class get screwed again.
    This time publicly.

    Report Post »  
  • COFemale
    Posted on February 28, 2012 at 7:16pm

    Just rename the pipeline from Keystone to Obama Keystone. Then when he opposes it, he is opposing himself. It might also trick Democrats into thinking Obama approved the entire pipeline. It is worth a shot.

    Report Post » COFemale  
  • Living In NYC
    Posted on February 28, 2012 at 7:05pm

    Obama must have got a deal for his “old fool” Warren Buffet from these guys to continue to use his railroad to transport oil…from the two ending points.

    Buffet was the only loser in the pipleline deal, since his railroad currently moves a majority of this oil due to lack of a pipeline!

    Report Post » Living In NYC  
  • Mike Benton
    Posted on February 28, 2012 at 6:58pm

    What silliness! This like the zoning commission saying you can go ahead and build the roof and the second floor, but we are not sure you’ll get a permit for the foundation!!! These people are nuts!

    Report Post » Mike Benton  
  • Col. HawK
    Posted on February 28, 2012 at 6:54pm

    BTW>>>>> Great read….. is ‘Ethical Oil’ by Ezra Levant…. Cheers.

    Report Post » Col. HawK  
  • Col. HawK
    Posted on February 28, 2012 at 6:51pm

    In my opinion, I’d rather see our oilsands flow South of the border and help our own economies, rather than the Chinese……Think people!!……. We, Canadians have the worlds largest ‘Natural surface deposits of oil….all we have to do is scoop it up and use it…… You’d think the enviromentalists would jump on board Eh!….WTF?

    Report Post » Col. HawK  
    • progressiveslayer
      Posted on February 28, 2012 at 6:59pm

      You can’t be serious Col. because nut job environmentalists wanting more fossil fuels would be as likely as our Marxist president governing within the bounds of the constitution,it aint gonna happen.The Marxist in chief wants high gas prices and high rates for electricity,he needs to force us to buy POS so called electric cars.

      Report Post » progressiveslayer  
  • kangaroo
    Posted on February 28, 2012 at 6:41pm

    dodgy if you ask me, Odictator stops one pipeline, only to turn around and praise this one! If EPA doesn’t shut this down then Odictator got a payout some where along the line, no pun intended

    Report Post » kangaroo  
  • aChameleon
    Posted on February 28, 2012 at 6:06pm

    Good deal. More of this. How about opening ANWR up for drilling too? This is a step in the right direction.

    Report Post » aChameleon  
  • Aiasha
    Posted on February 28, 2012 at 5:55pm

    Those who do not believe in Allah de Americans, aren’t. We call dem Democrats, Liberals, Progressives, Socialists, and Communists. May their black hearts rot.

    Report Post »  
  • Aiasha
    Posted on February 28, 2012 at 5:52pm

    This administration must be reduced to a memory. It is the will of Allah de Americans!!

    Report Post »  
  • jakartaman
    Posted on February 28, 2012 at 5:51pm

    No thanks to step and fetchin!

    Report Post »  
  • Razorhunters
    Posted on February 28, 2012 at 5:46pm

    all know that most of this oil will be sold to foreign countries?
    fuel is our export now. that and treasure.

    jobs will be welcomed, but tis folly…

    Report Post » Razorhunters  
  • RightPolitically
    Posted on February 28, 2012 at 5:34pm

    I hope it doesn’t end up being a pipeline to nowhere.

    Report Post » RightPolitically  
    • RJJinGadsden
      Posted on February 28, 2012 at 6:02pm

      I was busy earlier this morning while out in my truck. But, heard something unfortunately during a distracting conversation that this section of the pipeline favors one of 0bama’s wealthy supporters. Will not swear to this yet, but will keep my ears open for more word on this. If I am wrong I will return and apologise.

      Report Post » RJJinGadsden  
  • banjarmon
    Posted on February 28, 2012 at 5:33pm

    If BhO can do things without congress….The rest of America can do without BhO!!!!
    GO AMERICA….GO TEA!!!!

    Report Post » banjarmon  
  • Darmok and Jalad at Tanagra
    Posted on February 28, 2012 at 5:31pm

    We could just hire all the millions of unemployed workers in america, form a bucket brigade, and transport the oil to the refinery, one bucket at a time. Energy and Unemployment problem solved. Maybe even throw in the prisoners as added labor. Winter time may be a little harsh for the workers though.

    Report Post » Darmok and Jalad at Tanagra  
  • Oneirishman
    Posted on February 28, 2012 at 5:29pm

    Wait a few days there will be an injunction. Obama won’t let the treat him like he treats the congress.

    Report Post »  
    • AvengerK
      Posted on February 28, 2012 at 5:41pm

      That’s usually how it happens with Obama. He’ll announce he opened up driling somewhere (while he has imposed moritoriums on drilling all over the country some even contrary to court orders) then his appointee at the EPA withholds the permits. Shell put $4 billion into exploration in northern Alaska and had to deal with the same thing because the supposed emissions from their ships would have (according to the EPA) affected an eskimo village of less than 200 people 70 miles away. $4 billion later…Shell had to pack up and leave.

      Report Post »  
  • 13th Imam
    Posted on February 28, 2012 at 5:28pm

    The Barack Hussein Obama Pipeline to nowhere will probably cover the middle 1/3rd of the original length. Nothin goin in, nothin comin out.

    Report Post » 13th Imam  
  • AvengerK
    Posted on February 28, 2012 at 5:28pm

    Typical Obama…he takes credit for “killing” OBL when in fact it was the interrogation of KSM under Bush that started the process of finding OBL, eventually killing him. Much like that…Obama stymies the Keystone Pipeline while trying to take credit for the portion of the pipeline he can’t stop being built anyway. Charming…to the last.

    Report Post »  
  • TMunson
    Posted on February 28, 2012 at 5:27pm

    Yeah! Texas……
    :)

    Report Post » TMunson  
  • Blackhawk1
    Posted on February 28, 2012 at 5:20pm

    Obama and the environmentalists wackos must be really upset.

    Report Post » Blackhawk1  
    • 1casawizard
      Posted on February 28, 2012 at 5:45pm

      It’s all about potential votes. There’s gonna be more coming out of D.C. about things they shoulda been doing for at least three years.

      Report Post » 1casawizard  

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