Released November 14, 2011 | SUGAR LAND
en
Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--The Obama administration's decision late last week to delay a decision on the $7 billion Keystone XL crude-oil pipeline was jeered by Republicans and the energy industry, but cheered by Nebraskans and environmentalists. The delay effectively means a decision on the pipeline will be postponed until after the 2012 presidential election. In announcing the delay last Thursday afternoon, a State Department source said reviewing alternate routes for the pipeline could take 12 to 15 months.
The Keystone XL project, proposed by TransCanada Corporation (NYSE:TRP) (Calgary, Alberta), has the strong support of the Canadian government. Unions, oil companies and the U.S. Chamber of Commerce also support the expansion.
Environmentalists had mounted a furious protest against the proposed pipeline, which would transport up to 700,000 barrels of crude oil per day about 1,700 miles from Alberta through Montana, South Dakota, Nebraska, Kansas and Oklahoma to refineries in Texas. In recent months, thousands of protesters have been arrested in front of the White House protesting the pipeline. On November 6, thousands of protesters encircled the White House urging the president to stop the pipeline.
Because Keystone XL is an international project, the State Department is the lead federal agency in determining whether the project was in the national interest of the U.S. The State Department has gathered information from numerous other federal agencies, as well as interested parties, as it led a three-year review process for the crude-oil pipeline. For more on the Keystone XL pipeline, see October 19, 2011, article - Keystone Crude Oil Pipeline Expansion Draws Strong Support, Fierce Opposition.
Although it was the environmentalists that have drawn sustained media coverage, sources said the decision to delay was more influenced by the widespread opposition to Keystone XL by a broad coalition of Nebraskans, led by Republican Governor Dave Heineman and including landowners, ranchers, agricultural interests, outdoorsmen and environmentalists. This coalition opposed Keystone XL, because it would lie atop the Ogallala Aquifer, which provides fresh water to millions of people in the Great Plains. Also, the pipeline planned to traverse the scenic and environmentally sensitive Sand Hills area in the western portion of the state.
"I am pleased that Nebraskans have been heard," Mr. Heineman told The New York Times. "We've tried to make it very clear that we support the pipeline but oppose the route over the Ogallala Aquifer," Mr. Heineman said, adding he was not expecting the State Department's decision. "I hope we can find a common-sense solution, change the route and begin construction of the pipeline." The Nebraska state legislature had convened a special session to grapple with the issues posed by the proposed pipeline's route. The delay was "an exceptional moment for Nebraskans" and a sign their voices were being heard, Heineman told the Associated Press.
A State Department official said the agency's decision to look for alternative routes was sparked by the significant outcry from Nebraska residents and officials. "What we're hearing from the public and from comments across the nation is the concerns about it going through this fragile landscape," said Kerri-Ann Jones in the State Department's Bureau of Oceans and International Environmental and Scientific Affairs.
In a statement on Thursday, President Obama said, "Because this permit decision could affect the health and safety of the American people as well as the environment, and because a number of concerns have been raised through a public process, we should take the time to ensure that all questions are properly addressed and all the potential impacts are properly understood."
Environmentalists cheered the administration's decision. Michael Brune, executive director of the Sierra Club (San Francisco, California), said the decision was "the death knell for a pipeline that never should have been considered." Larry Schweiger, president of the National Wildlife Federation (Reston, Virginia), said the pipeline brought together powerful concerns about climate change and the power of Big Business. "Many Americans are today tired of corporations calling the shots in Washington. This is a shot called not by the corporations, but by the voices of the people who were outside the fence of the White House" on November 6, he said. "This is a sleeping giant, and they have awakened the giant of the environmental movement."
TransCanada CEO Russ Girling said, "We remain confident Keystone XL will ultimately be approved. This project is too important to the U.S. economy, the Canadian economy and the national interest of the United States for it not to proceed."
"If Keystone XL dies," he added, "Americans will still wake up the next morning and continue to import 10 million barrels of oil from repressive nations without the benefit of thousands of jobs and long-term energy security."
In Washington, the decision was criticized by Republicans as well as Senator Max Baucus (D-Montana), who supports the pipeline. Baucus said the delay was "more bureaucratic red tape. "We've done enough analysis. It's time to put Montanans back to work."
House Speaker John A. Boehner (R-Ohio) criticized the president for "punting" on Keystone XL: "The current project has already been deemed environmentally sound, and calling for a new route is nothing but a thinly veiled attempt to avoid upsetting the president's political base before the election."
Jack N. Gerard, president of the American Petroleum Institute (API) (Washington, D.C.), was even more blunt: "This is all about politics and keeping a radical constituency, opposed to any and all oil and gas development, in the president's camp in 2012. Whether it will help the president retain his job is unclear, but it will cost thousands of shovel-ready opportunities for American workers."
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Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
The Keystone XL project, proposed by TransCanada Corporation (NYSE:TRP) (Calgary, Alberta), has the strong support of the Canadian government. Unions, oil companies and the U.S. Chamber of Commerce also support the expansion.
Environmentalists had mounted a furious protest against the proposed pipeline, which would transport up to 700,000 barrels of crude oil per day about 1,700 miles from Alberta through Montana, South Dakota, Nebraska, Kansas and Oklahoma to refineries in Texas. In recent months, thousands of protesters have been arrested in front of the White House protesting the pipeline. On November 6, thousands of protesters encircled the White House urging the president to stop the pipeline.
Because Keystone XL is an international project, the State Department is the lead federal agency in determining whether the project was in the national interest of the U.S. The State Department has gathered information from numerous other federal agencies, as well as interested parties, as it led a three-year review process for the crude-oil pipeline. For more on the Keystone XL pipeline, see October 19, 2011, article - Keystone Crude Oil Pipeline Expansion Draws Strong Support, Fierce Opposition.
Although it was the environmentalists that have drawn sustained media coverage, sources said the decision to delay was more influenced by the widespread opposition to Keystone XL by a broad coalition of Nebraskans, led by Republican Governor Dave Heineman and including landowners, ranchers, agricultural interests, outdoorsmen and environmentalists. This coalition opposed Keystone XL, because it would lie atop the Ogallala Aquifer, which provides fresh water to millions of people in the Great Plains. Also, the pipeline planned to traverse the scenic and environmentally sensitive Sand Hills area in the western portion of the state.
"I am pleased that Nebraskans have been heard," Mr. Heineman told The New York Times. "We've tried to make it very clear that we support the pipeline but oppose the route over the Ogallala Aquifer," Mr. Heineman said, adding he was not expecting the State Department's decision. "I hope we can find a common-sense solution, change the route and begin construction of the pipeline." The Nebraska state legislature had convened a special session to grapple with the issues posed by the proposed pipeline's route. The delay was "an exceptional moment for Nebraskans" and a sign their voices were being heard, Heineman told the Associated Press.
A State Department official said the agency's decision to look for alternative routes was sparked by the significant outcry from Nebraska residents and officials. "What we're hearing from the public and from comments across the nation is the concerns about it going through this fragile landscape," said Kerri-Ann Jones in the State Department's Bureau of Oceans and International Environmental and Scientific Affairs.
In a statement on Thursday, President Obama said, "Because this permit decision could affect the health and safety of the American people as well as the environment, and because a number of concerns have been raised through a public process, we should take the time to ensure that all questions are properly addressed and all the potential impacts are properly understood."
Environmentalists cheered the administration's decision. Michael Brune, executive director of the Sierra Club (San Francisco, California), said the decision was "the death knell for a pipeline that never should have been considered." Larry Schweiger, president of the National Wildlife Federation (Reston, Virginia), said the pipeline brought together powerful concerns about climate change and the power of Big Business. "Many Americans are today tired of corporations calling the shots in Washington. This is a shot called not by the corporations, but by the voices of the people who were outside the fence of the White House" on November 6, he said. "This is a sleeping giant, and they have awakened the giant of the environmental movement."
TransCanada CEO Russ Girling said, "We remain confident Keystone XL will ultimately be approved. This project is too important to the U.S. economy, the Canadian economy and the national interest of the United States for it not to proceed."
"If Keystone XL dies," he added, "Americans will still wake up the next morning and continue to import 10 million barrels of oil from repressive nations without the benefit of thousands of jobs and long-term energy security."
In Washington, the decision was criticized by Republicans as well as Senator Max Baucus (D-Montana), who supports the pipeline. Baucus said the delay was "more bureaucratic red tape. "We've done enough analysis. It's time to put Montanans back to work."
House Speaker John A. Boehner (R-Ohio) criticized the president for "punting" on Keystone XL: "The current project has already been deemed environmentally sound, and calling for a new route is nothing but a thinly veiled attempt to avoid upsetting the president's political base before the election."
Jack N. Gerard, president of the American Petroleum Institute (API) (Washington, D.C.), was even more blunt: "This is all about politics and keeping a radical constituency, opposed to any and all oil and gas development, in the president's camp in 2012. Whether it will help the president retain his job is unclear, but it will cost thousands of shovel-ready opportunities for American workers."
View Plant Profile - 1083849 1080449 1081306 1071029 1083783 1081192
View Project Report - 55000488 47000438 34000908 32000279 8001651 1012648
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
