What is the Keystone XL Pipeline?
It is a proposed extension of a pipeline that transports oil from Alberta, Canada to a major petroleum exchange in Cushing, Okla., and from there to the Gulf of Mexico. The existing smaller pipeline takes a more circuitous route. The Canadian company TransCanada’s solution is to build a larger-capacity, more direct link from Alberta to the existing pipeline. That project is known as Keystone XL.
Why is Obama involved?
Because the Keystone XL link would cross an international boundary between the U.S. and Canada, the project requires presidential approval. Proponents say Keystone XL will reduce the need to move oil by freight train—which can lead to potentially dangerous accidents—and create perhaps tens of thousands of jobs. President Obama, who has not taken a public position on the project, has cited a State Department analysis that concludes the pipeline will create only about 2,000 jobs during construction and 50 around permanent jobs once it’s complete.
Why is it controversial?
Climate activists have rallied around the Keystone XL pipeline as an environmental litmus test. They worry that it will intrude on property rights—courts have allowed TransCanada to run sections of the pipeline over private land, despite objections from the property owners –and warn that it could be vulnerable to environmentally dangerous leaks along its proposed 1,700 mile route. But their primary objection is that the project will encourage the burning of fossil fuels and worsen climate change. The oil shipped through the new pipe would come from Canada’s so-called tar sands, which climate activists say is dirtier and worse for the environment than regular oil.
A State Department review released in January found that Keystone XL would have little effect on the planet’s environmental health because the oil in Canada’s tar sands will be extracted and sold through another avenue if the project is blocked.
What happens next?
The southern portion of the Keystone pipeline connecting Oklahoma to the Gulf of Mexico will open for business in 2015. The northern extension—the one everyone’s arguing about—has yet to be approved. But the Dec. 6 runoff for the Louisiana Senate seat of Democrat Mary Landrieu gave the project a jolt in Washington, as Landrieu and her Republican challenger, Rep. Bill Cassidy, jockey to claim credit for getting it built. The House passed legislation sponsored by Cassidy allowing Keystone XL on Nov. 14 and the Senate votes on a similar measure backed by Landrieu on Nov. 18. President Obama has signaled that he may veto the legislation, but he has not taken a public stance. No matter what happens at the federal level, Keystone XL is likely to face court battles in states through which it passes.