Related: If Wall Street's right, Obama may nix Keystone. 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. 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 Keystone Pipeline is a series of metal pipes that run from Alberta Canada to Patoka, Illinois and Port Arthur, Texas. The pipeline would span 875 miles. As the Entertainment Editor, she investigated Hollywood stories and conducted interviews with A-list celebrities and reality stars. 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.. 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. Thanks largely to better fuel economy and higher prices, the long-term demand for gasoline in the United States is either flat or declining. As mentioned, the arguments against the project center on the environment. "We're hopeful that the Biden administration will continue to shift this country in the right direction by opposing fossil fuel projects.". A lot has changed since the Keystone XL project was proposed in 2005. Copyright 2023 CBS Interactive Inc. All rights reserved. an award-winning journalist who spent over a decade breaking hard news and celebrity scoop with RadarOnline and Us Weekly. 2023 CNBC LLC. The agency will release a total of 60 million barrels of crude to help ease some of the supply disruptions caused by the war Ukraine. 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. CNN Sans & 2016 Cable News Network. None of this means Warren Buffett had anything to do with Biden's decision to spike the Keystone Pipeline. Why now? In a Jan. 20 statement, TC Energy said Bidens order "would directly lead to the layoff of thousands of union workers." That number is an estimate, and the claim lacks context about the longevity of Keystone jobs. 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. News provided by The Associated Press. It's, 'Oh, there's a lot more risk now than there was before.'". It seems as though the polarization of the United States is increasing. "For 13 years, an international movement of frontline communities in the U.S. and Canada, Indigenous leaders, and environmentalists fought back against this terrible proposed project at every turn," Sierra Club Executive Director Michael Brune said in a statement. The current part of the Keystone pipeline that already exists uses 2,638 miles of hardened steel built to "withstand impact from a 65-ton excavator with 3.5-inch teeth," according to . 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. In summary, Keystone is good for the economy, good for U.S. energy independence, and good for the American consumer. The Keystone Pipeline already exists. 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. Alexis crime reporting earned her spots as a contributor on the Nancy Grace show, CNN, Fox News and Entertainment Tonight, among others. The press release also stated that the remaining $6.9 billion needed for construction was expected to be largely made in 2021 and 2022 and funded through the combination of a US$4.2 billion project level credit facility to be fully guaranteed by the Government of Alberta and a US$2.7 billion investment by TC Energy.. People may receive compensation for some links to products and services on this website. These posts are referring to the Keystone XL Pipeline, a project cancelled by Biden on his first day in office on Jan. 21, 2021, dealing a death blow to a long-gestating project that would have carried 830,000 barrels per day of heavy oil-sands crude from Alberta to Nebraska (here). There are already about 2.3 million miles of pipeline across the US, carrying oil and natural gas. The Keystone XL pipeline's developer has halted all construction on the project months after its permit was revoked by the Biden administration. (AP) The Trump administration on Wednesday approved a right-of-way allowing the Keystone XL oil sands pipeline to be built across U.S. land, pushing the controversial $8. I ask, why not? Temporary jobs are still jobs. 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. Keystone XL is a tar sands pipeline to export oil out of the United States December 20, 2011 Anthony Swift One of the most important facts that is missing in the national debate surrounding. . The oil and gas industry accounts for about 5% of Canada's economy, and nearly all of the industry's exports go to the United States. President Obama is expected to either approve or deny the pipeline by the end of this year. In 2008 the United States imported 9.8 million barrels of oil a day, according to the Energy Information Administration. Partly false. Both of these forms can be transported by pipeline. Its symbolic of whether or not were willing to embrace the natural resources that we have in our country. It opened: It was commissioned in 2010 and was to have four phases. Although it has been months since Biden revoked the permit needed to finish the Keystone XL pipeline, the war between Ukraine and Russia has lawmakers suggesting that the project be resurrected. Pipe intended for use in. The pipeline was set to carry oil 1,200 miles (1 . ", "We're all mindful of the pain that Americans are feeling at the pump right now, but the best way to eliminate pain at the pump in the long run is to get rid of the pump altogether," Kieve said. Most of those positions would have been temporary construction jobs. All rights reserved. "You won't see a lot of environmental organizations jumping up and down and saying, 'Hey, this is the best thing ever,'" Kieve said. To access the bitumen, Alberta's boreal forests are cut away in enormous strip mines. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. It's a great day for Mother Earth," Larry Wright Jr., chairman of the Ponca Tribe of Nebraska, said in a statement. Was any part of the Keystone XL pipeline functional? Keystone XL would be Canadas first step in diversifying its energy market. Keystone XL was designed to transport crude oil from Alberta, Canada, to Steele City, Nebraska, where it would connect with TC Energy's existing facilities, which extend to the Gulf Coast. The pipeline would have required years of construction and likely faced legal challenges, so it couldnt have solved todays demand needs. 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 . The project has become a matter of intense debate in the United States. Read more about our work to fact-check social media posts here . Hundreds of opponents rallied there this week, calling on Biden to stop that project, too. This amount makes up 3% of U.S. crude oil imports and about 1% of the crude oil processed in U.S. refineries. 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 . Canceling the Keystone Pipeline Is a Mistake. Finally, there are multiple state and county agencies which will consider permits for projects that cross navigable waters (including state streams), state highways or work affecting cultural or natural resources. Let us know!. The State Department estimated full-time permanent jobs to be closer to 50. It's. As the Entertainment Editor, she investigated Hollywood stories and conducted interviews with A-list celebrities and reality stars. hide caption. 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. Wind farm construction is a possible cause of dead whales washing ashore in New Jersey. The Keystone XL pipeline is a 1,200 mile pipeline that will safely deliver crude oil from Canada and North Dakota to the United States. 4 Min Read. LOUIS (AP) An oil leak near St. Louis prompted the closure of parts of two pipelines as crews work to determine the source, company officials and Missouri regulators said Thursday. Learn more about Mailchimp's privacy practices here. Opponents suggest it will harm the environment. The Keystone XL pipeline was designed to carry tar sands oil from Alberta, Canada, to Nebraska, where it would have connected to the Keystone Pipeline System. Keystone XL 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. Got a confidential news tip? Is the Keystone Pipeline closed and is that causing a gas shortage? Note: if reading this fact check makes you want to contact us to complain about bias, please check out our Red feed first. First, it can be upgraded into syncrude which is a light crude. On November 19, 2014, the U.S. Senate voted against the passage of the bill which would allow the Keystone XL Pipeline to proceed. 33701 Find out whats happened to the oil industryand where its headed next. I cover the intersection of economics, politics and personal finance. Gasoline is actually one of the nation's largest exports, going mostly to Latin America. What are the arguments for and against the project? I will give you the facts and you can decide. By 2011, Keystone XL had upended that quiet bureaucratic process. But the U.S. imported an average of 209,000 barrels of crude oil per day from Russia in 2021, according to theAmerican Fuel and Petrochemical Manufacturers, as well as 500,000 barrels per day of other petroleum products. This group will consider the impact to endangered species in accordance with the Endangered Species Act. In fact, the Keystone Mainline is 1,353 miles of 30 pipe which extends from Hardisty, Alberta to refineries in Wood River and Peoria, Illinois. At the time of the press release, the Government of Alberta had invested $1.1 billion in the project, largely covering the cost of construction through the end of 2020, according to TC Energy. Even in the future, there would be no certainty that the pipeline could produce a net increase of 800,000 barrels a day. Copyright 2023 Market Realist. But It's Definitely Changing, In A Landmark Case, A Dutch Court Orders Shell To Cut Its Carbon Emissions Faster, 'Energy Justice' Nominee Brings Activist Voice To Biden's Climate Plans. Thanks for signing up. "The key lesson there is the U.S. is not the whole story here. Video shows President Joe Biden recalling an alien encounter. To secure our energy independence for not only economic interests, but national security interests., Latest Energy & Utilities News and Updates. But its not as simple as substituting one source for the other. Canada-based TC Energy first proposed the 1,200 mile Keystone XL pipeline in 2008 as a way to quickly pump 830,000 barrels of tar sands (a.k.a. These typically exist in community groups and environmental organizations. This group must review and issue National Pollutant Discharge Eliminations Systems permits for discharge of pollutants in state waters. Part of TransCanada's Keystone XL pipeline under construction in Atoka, Oklahoma. 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. Spotted something? 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. But the Trump administration revived the pipeline in early 2017. A map of the Keystone XLs route alongside the existing Keystone Pipeline System, operating since 2010, can be seen here . Recent estimates are that the project itself will create about 43,000 permanent jobs. Is this good for America? In fact, TransCanada refused to support a requirement that oil on Keystone XL be used in the United States in a recent Congressional hearing. President Biden's energy agenda has strengthened Putin at the expense of hard-working Kansans.". Spotted something? TransCanada is a Canadian company that builds and operates energy infrastructure across the North American continent. On his first day in office, President Joe Biden signed an executive order canceling the Keystone XL Pipeline Project. By clicking below to subscribe, you acknowledge that your information will be transferred to Mailchimp for processing. 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. By 2012 that number jumped to 3.2 million barrels. Supporters say the oil is no dirtier than other forms of heavy oil the country is currently importing. A Warner Bros. Had construction continued, the pipeline would have entered service in 2023. Because no refineries between Alabama and the mid-Atlantic produce substantial quantities of transportation fuels, the southeastern United States is supplied primarily by pipeline flows, and to a lesser degree, with marine shipments from the U.S. Gulf Coast and imports. Extracting the bitumen and diluting for shipment requires energy, most of it from burning fossil fuels. ", People not vaccinated against COVID-19 came out the best. That makes oil sands crude more carbon-intensive and worse for the climate than conventional petroleum. 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. And, we also have the technology to assure that the environment will be protected. TC Energy had begun construction on the pipeline last year and said about 300 miles of the $8 billion project had been built. Gas prices hit record highs as more Americans return to the office, MoneyWatch: Soaring gas prices putting strain on American households, U.S. concerns about TikTok are "absolutely valid," expert says, Belarus dictator to visit China as key Putin allies bolster ties, Hague "people's court" wants Putin held accountable for crimes against Ukraine, Diplomats in London show support for Ukraine by swimming in Hyde Park lake, U.S. must "sustain" its involvement in Ukraine war, secretary of state says, American Fuel and Petrochemical Manufacturers. There would have been no certainty that the pipeline could have produced a net increase of 800,000 barrels a day, rather than just transporting oil from Canada that is currently being transported some other way. Finally, the pipeline would expand the transportation of oil sands from the Midwest to the Gulf Coast. The Keystone Pipeline in North Dakota was shut down after it leaked oil. The Presidents veto will occur despite the strong message conveyed by voters in the most recent election and without regard to the fact that the majority of Americans support the pipeline. However, existing Canadian oil pipelines all go to the Midwest, where the only buyer for their crude is the United States. The deposits are not in underground reservoirs like conventional petroleum. The third group is the Bureau of Land Management which grants temporary permits for portions of the project that would encroach on federal lands. TransCanada conceded that Keystone XL would take oil from existing pipelines, increasing shipping costs. TC Energy said more than 1,000 people are out of work because of Bidens executive order. The attacks came in social media posts, on television and, in at least one instance, in a paid ad from the House office of Rep. Jake LaTurner, a Kansas Republican who is seeking re-election to a second term. Before Biden signed his executive order, only a 1.2-mile section of the pipeline had been completed in Montana near the U.S.-Canada border. The Biden administration has repeatedly pushed back against proposals to revive the pipeline expansion. 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. In the long run, the best way to protect Americans from spiking oil prices is to accelerate the shift from fossil fuels to renewable energy, Nemet and Kieve said. By claiming that the project was in Phase 4 of construction, the posts seem to conflate the Keystone XL Pipeline with the larger Keystone Pipeline System. TC Energy Corp., the Canadian company that owns the Keystone XL pipelinewith the Alberta government, has said more than 1,000 people are out of work because of Bidens executive order. Let us know!. We reached out to the user who published the post for their evidence, but we didnt hear back. Since it first went into operation in 2010, TC Energy's original Keystone Pipeline System has leaked more than a dozen times; one incident in North Dakota sent a 60-foot, 21,000-gallon geyser. 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 Keystone Pipeline System is an oil pipeline system that runs between Canada and the United States. This portion has been flowing since February 2011. National Association of Manufacturers CEO on Biden's canceling of the Keystone XL pipeline. 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 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. "But in terms of gasoline prices and global oil prices, it's just something it's better to just ignore because it would have no impact. As of 2014 . Jason Kenney, premier of the Canadian province of Alberta, is now pushing for the Biden administration to revive the Keystone XL pipeline . This area has highly porous soil and shallow groundwater. "And supply doesn't always quickly respond to that kind of shock in demand.". Market Realist is a registered trademark. The purpose of the pipeline was to transport oil from Canada that is currently being transported some other way. No, that's not true. On February 9, 2005, TransCanada (now TC Energy) announced plans to construct a pipeline to move 400,000 barrels per day of Canadian heavy crude oil from Hardisty, Alberta, to Illinois. "In the month since Republicans took the House majority," they are trying to "impose a 30% tax on everything. https://leadstories.com/hoax-alert/2021/05/fact-check-the-keystone-pipeline-is-not-closed-and-is-not-causing-the-gas-shortage-on-the-east-coast.html, Alexis Tereszcuk is a writer and fact checker at Lead Stories and. Building the Keystone XL pipeline would have fostered the expansion of the Canadian oil sands industry by increasing access to U.S. markets and international ones through exports from the Gulf Coast. ", Psaki added the Department of Energy predicts that in 2023 the U.S. will "produce more oil than ever before.". The petition was made to the U.S. Department of State because it would cross the U.S. border. After multiple delays, President Barack Obama rejected the permit to build Keystone XL in November 2015. 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. its plants and animals, and the natural systems on which all life depends.