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Why the Winds Are Changing on Keystone

1 minute read

ECONOMICS

TransCanada’s move comes as the economic argument for building the $8 billion pipeline is weaker than ever. Low oil prices make costly tar-sands drilling less attractive, while clean-energy sources like solar power are increasingly affordable.

POLITICS

The request for a suspension was widely seen as a political move to delay a decision until after Barack Obama leaves office. But Democratic presidential candidates are all opposed to the pipeline, and Canada’s new Prime Minister Justin Trudeau has supported it with less enthusiasm than his predecessor.

ENVIRONMENT

Obama has made climate change a second-term priority, and experts say he may seek to appease environmental groups by rejecting Keystone before key climate talks in Paris next month. The White House said Nov. 3 that Obama would make a decision before leaving office but continued to give no firm date.

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Write to Justin Worland at justin.worland@time.com