The project received significant backlash from environmental activists and indigenous communities, and was viewed as a hindrance to the U.S. transitioning from using fossil fuels to clean energy. Although Alberta is now on . The war in Ukraine also plays a role, although it was not the instigator of the increase. I cover the intersection of economics, politics and personal finance. The Keystone XL pipeline was. Jason Kenney, premier of the Canadian province of Alberta, is now pushing for the Biden administration to revive the Keystone XL pipeline . (RELATED: Macron Trolls Trump, Says Biden Can Help 'Make Our Planet Great Again') If the oil ends up getting moved anyways, just via a different method, it could actually be worse . The Keystone XL pipeline was designed to transport oil to the Gulf Coast because refineries in the region are already equipped to process heavier crude oils, like those found in Canada's Alberta . Read more about our work to fact-check social media posts here . Proponents also argue that the pipeline will enhance U.S. energy security and help maintain adequate crude oil supplies for U.S. refineries. To review: Keystone XL, a project of the TransCanada Corporation (now TC Energy), was slated to carry oil from Alberta's tar sands across the country to refineries on the Gulf of Mexico. But it's also true that exports of refined products from the United States will likely continue to rise. It's true that the 830,000 barrels a day the pipeline is slated to carry would probably replace some of the 2 million barrels a day of heavy oil currently imported to the Gulf Coast. The operator, Canada-based TC Energy, said the pipeline that runs from Canada to Oklahoma lost about . Discovery Company. ", "New government-funded 'food pyramid' says Lucky Charms are healthier than steak. inaccurate stories, videos or images going viral on the internet. It seems as though the polarization of the United States is increasing. For example, the pipeline will increase the diversity of the U.S. petroleum supply. Part of TransCanada's Keystone XL pipeline under construction in Atoka, Oklahoma. The Keystone XL may never move any oil, but its impact will still linger in the form of the pipes, worker camps, and other assets stranded along its 1,200-mile path. Keystone XL would carry crude derived from Alberta's oil sands. Not only did the revocation of the Keystone XL pipeline project permit reportedly hurt the Canadian and Alberta economies, but it cut thousands of jobs for Canadians and Americans. As mentioned, the pipeline will connect to existing Keystone Mainline and increase the transport of oil sands from Canada and the Midwest to the Gulf Coast. Fish & Wildlife Service. To access the bitumen, Alberta's boreal forests are cut away in enormous strip mines. The deposits are not in underground reservoirs like conventional petroleum. Lead Stories is a U.S. based fact checking website that is always looking for the latest false, misleading, deceptive or The claim appeared as a post (archived here) published on Facebook on May 10, 2021. As of Monday, May 10, the pipeline had not resumed operations of its main lines, although some smaller lines are operational. The Obama-era State Department had denied TC Energys request for a permit in 2015. This type of project has been completed numerous times before. South Dakota Gov. Market data provided by ICE Data Services. A little more than a year later, on his first day in office, Biden revoked the federal permit for Keystone XL, leading to the end of a project that had been contested for more than a decade. But its not as simple as substituting one source for the other. As Canada's Natural Resources Minister Joe Oliver recently said, "we export 97 percent of our energy to the U.S. and we would like to diversify that." ", Rifles were involved in 297 deaths in the U.S. in 2022 and constipation killed 2,167.. Even if the Biden administration were to immediately offer new oil leases to drillers, it wouldn't help with the costs Americans are bearing today. The gas shortage on the East Coast of the United States in May 2021 was triggered by a cyberattack that caused the shutdown of the Colonial Pipeline, which runs from Houston to New Jersey and supplies 45% of the gasoline to the East Coast. For years, the Obama administration faced pressure to approve the project from Canada, the oil and gas industry and its political allies while also getting enormous pushback from environmental and other activists, including major Democratic donors. An oil spill in a creek in northeastern Kansas shut down a major pipeline that carries oil from Canada to the Texas Gulf Coast, briefly causing oil prices to rise Thursday. All rights reserved. This portion would transport oil over 435 miles through 36 pipe running from Cushing, Oklahoma to Port Arthur, Texas. We reached out to the White House for a comment, but we havent heard back. "But there is a recognition that those types of actions may have some impact on the prices that Americans are paying at the pump.". The pipeline was expected to carry some 830,000 barrels per day of oil from Canada to the U.S. LaTurner represents Kansas 2nd District, which covers the Topeka area and points south. This project would have produced 830,000 barrels of oil per day, more than enough to offset what we import from Russia. The Keystone XL pipeline project began some 12 years ago and has yet to reach the final stages of construction. In 1991, a pipeline rupture spilled 1.7 million gallons of crude oil into the Prairie River near Grand Rapids, Minn., in the largest inland U.S. oil spill. First, it can be upgraded into syncrude which is a light crude. The third group is the Bureau of Land Management which grants temporary permits for portions of the project that would encroach on federal lands. In summary, Keystone is good for the economy, good for U.S. energy independence, and good for the American consumer. "Whenever there is political instability in places that produce a lot of oil, markets react," Nemet said. The original petition for permit was denied on January 18, 2012 due to environmental concerns. Lets look at the argument for and against the project. In 2015 . Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. With inflation soaring, gas prices have been increasing for months hitting an average of$4.33 a gallon on March 11, according to AAA. When you sign up you'll become a member of NRDC's Activist Network. The Keystone pipeline, which President Joe Biden canceled, would have transported more oil per day than the U.S. imports from Russia, but it would not have been a simple offset. Construction began in April 2020, but that same month,a federal courtsaid that the project had to go through a full endangered species review. On his first day in office, President Joe Biden signed an executive order canceling the Keystone XL Pipeline Project. The Keystone Pipeline System stretches 2,687 miles, while Keystone XL was to be 1,210 miles in length. A storage yard in Montana contains pipe that was to be used in the construction of the Keystone XL oil pipeline. ", "When combined with additional 2021 contracts to be announced later, the total number of American union workers constructing Keystone XL in 2021 will exceed 8,000 and $900 million in gross wages," the release said. Former U.S. President Donald Trump had approved a permit for the line in 2017, but it continued to face legal challenges that hampered construction. By late 2019, the Nebraska State Supreme Court seemed to clear one of the last hurdles for Keystone XL by approving its route through the state. TC Energy owns the existing Keystone oil pipeline, which runs from Alberta to the U.S. oil storage hub in Cushing, Oklahoma, and to the U.S. Gulf, along with a power and storage business. Producers would not have been obligated to sell that entire amount to the U.S. As Russia pressed its invasion of Ukraine, President Joe Biden faced accusations at home that he had made the United States more dependent on Russian oil. Learn more about Mailchimp's privacy practices here. Keystone XL, which was proposed in 2008 to bring oil from Canada's Western tar sands to U.S. refiners, was halted by owner TC Energy after U.S. President Joe Biden this year revoked a key permit needed for a U.S. stretch of the 1,200-mile project. One recent issue involves the passage of the Keystone XL pipeline. The pipes pass through North Dakota, South Dakota, Nebraska, Kansas, Missouri, and Oklahoma. But most of those jobs are temporary. When the U.S. expands its energy transportation system, additional workers are required to maintain and oversee it. The developer has now canceled the controversial project. Most objections center on the extraction of the oil, but some suggest the project will only make the U.S. more dependent on fossil fuels. The GAO study showed that the U.S. stretches of TC Energy's 2,700-mile Keystone pipeline had a failure rate in line with the national average during its first six years of service, with most of . Here is a map of the current Keystone Pipeline from the company's website. The first is the Gulf Coast Project. Sixteen years later, three phases of the Keystone project are complete. In the United States, the existing Keystone Pipeline System runs from the North Dakota border south through South Dakota to Steele City, Nebraska, where it splits one arm running east through Missouri for deliveries into Wood River and Patoka, Ill., with the other running south through Oklahoma to Cushing and onward to Port Arthur and Houston, Texas.. Booms, Busts And Billionaires: An eBook From Forbes. US President Joe Biden has cancelled permits for the controversial Keystone XL pipeline on his first day in office. Before we explain Keystone, let me first state that beneath the ground of these United States are thousands upon thousands of miles of existing pipeline transporting natural gas and oil. The company announced that it hopes to restore service by the end of the week. It did not specify exactly how many jobs would be lost. Its demise comes as other North American oil pipelines, including Dakota Access and Enbridge Line 3, face continued opposition from environmental groups. The Keystone XL Pipeline consists of two parts. When Biden became President of the United States, he scrapped the project and essentially put it to bed. 2022 Cable News Network. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. A $9 billion oil pipeline that became a symbol of the rising political clout of climate change advocates and a flash point in U.S.-Canada relations was officially canceled on Wednesday. It pledged to ensure a safe termination of the project. The pipeline was expected to stretch from Alberta to Nebraska, allowing 830,000. Keystone XL supporters, including most of the oil industry, said the pipeline construction would have created much-needed construction jobs. This amount makes up 3% of U.S. crude oil imports and about 1% of the crude oil processed in U.S. refineries. Copyright 2023 CBS Interactive Inc. All rights reserved. 20006, Florida The Keystone XL pipeline was expected to act as an extension to this larger system that would run 1,210 miles from Hardisty, Alberta to Nebraska.. TC Energy already had suspended construction in January when President. The announcement ends a more than decade-long battle that came to signify the debate over whether fossil fuels should be left in the ground to address climate change. The other major candidate for the seat is Democrat Patrick Schmidt, a former U.S. Navy intelligence officer. ", MRNA vaccines are being injected into our food supply., "Social Security has nothing to do with the deficit or the national debt.". In May 2021, the U.S. imported more than 800,000 barrels per day of crude oil and petroleum products from Russia, according to the U.S. Energy Administration. Keystone XL Pipeline: The Keystone XL pipeline is a proposed extension of the Keystone pipeline system that will transport oil from Alberta, Canada to refineries in the United States. Unlike oil, renewable energy relies far less on fixed and limited natural resources. "It's unfortunate that political obstructionism led to the termination of the Keystone XL pipeline. By 2012 that number jumped to 3.2 million barrels. All times are ET. This portion would transport oil over 435 miles through 36" pipe running from Cushing, Oklahoma to Port. President Joe Biden's revocation of the March 2019 permit enabling the construction of the Keystone XL pipeline will likely result in more crude-by-rail volumes, according to industry. TransCanada conceded that Keystone XL would take oil from existing pipelines, increasing shipping costs. People may receive compensation for some links to products and services on this website. According to TC Energy, the entire Keystone XL pipeline project would have cost around $8 billion to complete. Spotted something? Oil Change International investigated this issue in a report that found the Keystone XL pipeline was part of a larger strategy to sell increasing volumes of Canadian crude on the international diesel market. On November 19, 2014, the U.S. Senate voted against the passage of the bill which would allow the Keystone XL Pipeline to proceed. The US Supreme Court denied a request from the Trump administration to allow construction of the Keystone XL pipeline, upholding a lower court's ruling blocking a permit needed for the project . President Joe Biden signed an executive order on January 20, 2021, revoking the permit for the Keystone XL, which stands for Keystone "export limited," segment of the Keystone system, which is the fourth phase of the system. Partly false. The company behind the controversial Keystone XL oil pipeline said Wednesday it's officially terminating the project. Some ask why should it proceed? The pipeline would also accept U.S. crude from the Bakken oil fields in Montana and North Dakota. David Kieve, president of advocacy group Environmental Defense Fund Action, also told CBS News that building out the Keystone pipeline would not have softened the impact the Ukraine crisis is having on fuel prices. Kristi Noem went a step further than Crenshaw, writing in a February 24op-edfor Fox News that in halting the Keystone XL pipeline Mr. Biden was "signaling to the world that American energy independence is no longer a priority.". 801 3rd St. S A Warner Bros. Thirty-five of them would be permanent, while 15 would be temporary contractors. In other words, 14% of the investment was made in 2020, with the remaining 86% secured and expected to be paid in 2021 and 2022. The pipeline carries refined petroleum products such as gasoline, diesel, heating oil, and jet fuel from Houston, Texas, on the U.S. Gulf Coast up to Linden, New Jersey, and serves several markets along the route through various branch lines. But activists and scientists argued that to avoid the worst effects of climate change, the world had to keep half of oil and gas reserves in the ground. Since these are already in service, whats the problem with this project? Says he has been to Afghanistan, Iraq and those areas twice as president. 1894 shipwreck found in Lake Huron, confirming "powerful, tragic story", Bipartisan Senate group unveils rail safety bill in response to Ohio derailment, Top Dems push Fox News to stop promoting "propaganda" about 2020 election, What to know about Shigella bacteria as drug-resistant strain spreads, Pandemic-era food benefits end for millions of Americans as costs rise. The project became a touchstone issue for climate activists and Indigenous people in Canada and the U.S, including those along the pipeline's route. It will also create up to 43,000 jobs, the majority of which will be permanent. That number is an estimate, and the claim lacks context about the longevity of Keystone jobs. It would have carried oil from landlocked Alberta to the U.S. Gulf Coast. Let us know!. Data is a real-time snapshot *Data is delayed at least 15 minutes. Updated on: March 17, 2022 / 11:57 AM The idea that Keystone XL will improve U.S. oil supply is a documented scam being played on the American people by Big Oil and its friends in Washington DC. From there, refined petroleum products could be sold either in the U.S. or to foreign buyers. Instead, they're a tarry fossil fuel called bitumen that's mixed in with clay, sand, rock and together, can be hard as a hockey puck, destruction of Alberta's forests and health effects that some researchers say could be linked to the strip mining, makes oil sands crude more carbon-intensive and worse for the climate, Biden Administration Strikes A Deal To Bring Offshore Wind To California, the world had to keep half of oil and gas reserves in the ground, enormous pushback from environmental and other activists, including major Democratic donors, TC Energy's pipeline system in the northern Great Plains experienced a series of leaks. Keystone pipeline shut after oil release into Kansas creek On Wednesday evening oil started spilling into a creek near the pipeline in Washington County, Kan., about 240 kilometres. 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