The developer of the Keystone XL pipeline announced Wednesday it is pulling the plug on the controversial project after the Biden administration revoked its permit in January.. TC Energy, the . Got a confidential news tip? Keystone XL would carry crude derived from Alberta's oil sands. Colonial Pipeline shut down distribution on May 7, 2021, following the cyberattack. But it's also true that exports of refined products from the United States will likely continue to rise. One recent issue involves the passage of the Keystone XL pipeline. At the time Mr. Biden. Even in the future, there would be no certainty that the pipeline could produce a net increase of 800,000 barrels a day, rather than just transporting oil from Canada that is currently being transported some other way. This portion would transport oil over 435 miles through 36 pipe running from Cushing, Oklahoma to Port Arthur, Texas. Supporters say the oil is no dirtier than other forms of heavy oil the country is currently importing. Reuters spoke via email with James Stevenson, a spokesperson for the Canada Energy Regulator, which oversees the Canadian portion of the Keystone XL Pipeline (here). Lead Stories is a U.S. based fact checking website that is always looking for the latest false, misleading, deceptive or Canada is our largest trading partner and is important to U.S. job creation. 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 Keystone Pipeline System stretches 2,687 miles, while Keystone XL was to be 1,210 miles in length. The State Department is one of 15 departments under the executive branch of the federal government. The pipeline would have required years of construction and likely faced legal challenges, so it couldnt have solved todays demand needs. Temporary jobs are still jobs. Former EPA chief: Keystone XL will be built, First published September 16, 2013: 3:58 AM ET, You Can Still Buy This "Millionaire Maker" Stock, Bitcoin Up 30,000X -- Here's Your Backdoor In, This Stock Could Be Like Buying Amazon for $3.19, These are your 3 financial advisors near you, This site finds and compares 3 financial advisors in your area, Check this off your list before retirement: talk to an advisor, Answer these questions to find the right financial advisor for you, An Insane Card Offering 0% Interest Until Nearly 2020, Transferring Your Balance to a 14-Month 0% APR is Ingenious, The Top 7 Balance Transfer Credit Cards On The Market Today, Get $300 Back With This Outrageous New Credit Card. hide caption. I will give you the facts and you can decide. Oil sands crude emits about 17% more greenhouse gases than traditional oil, according to the U.S. State Department, largely due to the heat it takes to separate the oil from the sand. "They want the additional Canadian barrels to displace higher cost barrels from Venezuela, Mexico or Saudi Arabia," said Allen Good, an oil company stock analyst at Morningstar. Gasoline is actually one of the nation's largest exports, going mostly to Latin America. "By revoking the Keystone pipeline permit, Biden is destroying 11,000 jobs and roughly $2 billion in wages," the post says. The Keystone XL pipeline would transport crude oil extracted from tar sands in Alberta, Canada, and shale oil from North Dakota and Montana to Nebraska. 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. Disclaimer. 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.. Its proposed route in Nebraska cut through the Ogallala Aquifer, the groundwater source for millions of Plains states residents. (Terray Sylvester/Reuters) . US President Joe Biden has cancelled permits for the controversial Keystone XL pipeline on his first day in office. In October, the company said it expected to employ more than 11,000 Americans in 2021 and generate more than $1.6 in gross wages. All rights reserved. The environmental argument is studied by five groups. No, that's not true. Thanks for signing up. 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. But the Trump administration revived the pipeline in early 2017. So, it actually would have nothing do with the current supply imbalance. Lawsuits claim it wrecked their teeth. Our only agenda is to publish the truth so you can be an informed participant in democracy. Although the argument against the pipeline centers on environmental concerns, the real reason may have to do with the disdain for fossil fuels felt by environmental groups and others. "And it's not necessarily that they're saying, 'Oh there's not enough oil.' Specifically, the original pipeline route would have passed through an environmentally sensitive area of Nebraska known as the Sand Hills region. Some ask why should it proceed? Copyright 2023 Market Realist. South Dakota Gov. We need your help. Rather, experts say gas prices are high due to other factors such as the global spike in the cost of crude oil and increased demand after pandemic lockdowns ended. A Warner Bros. CNN Sans & 2016 Cable News Network. "Whenever there is political instability in places that produce a lot of oil, markets react," Nemet said. It would take six to 10 years for oil from a new lease to hit the global market, Kieve said. Why the pipeline? The pipeline would have required years of construction and likely faced legal challenges, so it couldnt have solved todays demand needs. Some also carry diluted bitumen, the heavy crude from the tar sands that has a much higher. The Keystone Pipeline already exists. 4 Min Read. Earlier this month, Representative Edward Markey asked TransCanada's President Alex Pourbaix to support a condition that would require the oil on Keystone XL to be used in the United States. "We're hopeful that the Biden administration will continue to shift this country in the right direction by opposing fossil fuel projects.". That very well may be the case as Valero, one of the largest prospective purchasers of Keystone XL's crude, has already told its investors the its future business is in international export. A 2014 report found that the company would need only 50 employees to maintain the Keystone XL pipeline once its finished, 35 of them permanent. The Keystone XL pipeline is an international project years in the making. The Keystone Pipeline System is an oil pipeline system in Canada and the United States, commissioned in 2010 and owned by TC EnergyAs of March 2020, the Government of Alberta. Keystone XL would be Canadas first step in diversifying its energy market. The 11,000 figure in the Facebook post appears to stem from an Oct. 28, Biden signed an order that revoked the permit, 11-volume State Department report on the Keystone XL pipeline, WRAL partners with PolitiFact NC to fact check political stories, State Department found in its 2014 report, Our ethics policy for PolitiFact journalists. Supporters of Keystone say the project will benefit Americans because it will reduce the country's reliance on foreign oil. Dec. 11, 2022, 8:21 PM PST. 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. We reached out to the White House for a comment, but we havent heard back. Data is a real-time snapshot *Data is delayed at least 15 minutes. : Alexis Tereszcuk is a writer and fact checker at Lead Stories andan award-winning journalist who spent over a decade breaking hard news and celebrity scoop with RadarOnline and Us Weekly. In short, Ill tell you what each side is saying so you can make an informed decision. 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 . Lets skip to the main arguments for and against and you can decide for yourself if this project is warranted or if it should be denied. We use Mailchimp as our marketing platform. However, the Canadian government has put the brakes on the two pipeline proposals to export tar sands through its provinces due to the need to take more time to listen to its own public's concerns about water and safety. Oil sands production is increasing in the U.S. with the majority of it in the form of heavy crude. Thanks largely to better fuel economy and higher prices, the long-term demand for gasoline in the United States is either flat or declining. The company reportedly secured $1.1 billion, enough to cover construction through 2020, and expected to receive $4.2 billion in 2021 and 2022. "And so we've got 8 billion people that are consuming oil and many countries that are producing it, and it all goes into one market.". Spotted something? The 1,700-mile (2,735-kilometer) pipeline was planned to carry roughly 800,000 barrels of oil a day from Alberta to the Texas Gulf Coast, passing through Montana, South Dakota, Nebraska, Kansas . The petition was made to the U.S. Department of State because it would cross the U.S. border. In 2008 the United States imported 9.8 million barrels of oil a day, according to the Energy Information Administration. BNSF remains a money machine at . "And supply doesn't always quickly respond to that kind of shock in demand.". Climate Change Is Making It Worse, . With Americans facing the worst inflation in 40 years, would expanding Keystone offer much relief at the pump? The State Department forecasted that no more than 50 jobs, some of which could be located in Canada, would be required to maintain the pipeline. In 2008 the country exported 1.8 million barrels a day of refined products, according to EIA. November 18, 2014. See who is sharing it (it might even be your friends) and leave the link in the comments. 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. It will also create up to 43,000 jobs, the majority of which will be permanent. The Keystone pipeline spill in a creek running through rural pastureland in Washington County, Kansas, about 150 miles northwest of Kansas City, also was the biggest in the system's history, according to U.S. Department of Transportation data. The total capacity of both is expected to be about 1.3 million bpd. Video shows President Joe Biden recalling an alien encounter. The project was delayed for the past 12 years due to opposition from U.S. landowners, Native American tribes and environmentalists. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Those in favor of the pipeline have several diverse points which bolster their opinion. 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. Solid green shows the full length in operation and the dotted green line shows the proposed Keystone XL project that was halted in January 2021: Lead Stories has debunked other false claims about the Keystone Pipeline projects impact on gas prices here and here. Bidens order revokes the permit that was grantedMarch 29, 2019, by then-President Donald Trump on the grounds that it is harmful to the environment. 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. Lets look at the argument for and against the project. It would have carried oil from landlocked Alberta to the U.S. Gulf Coast. All rights reserved. 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 . It requires more processing than most oil, so producing it emits more greenhouse gases. 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 . Russia is the world's second-largest exporter of crude oil, according to the U.S. Energy Information Administration. Booms, Busts And Billionaires: An eBook From Forbes. Updated on: March 17, 2022 / 11:57 AM Finally, the pipeline would expand the transportation of oil sands from the Midwest to the Gulf Coast. But it 's not enough oil. not enough oil. but we havent heard back refined! Actually one of the Keystone XL pipeline on his first day in office worst inflation in years. 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