US to reject Canada pipeline: reports

January 18, 2012
American actress Daryl Hannah sits in front of the White House in August during a protest against the Keystone XL pipeline. The United States will reject the proposed pipeline from Canada, a politically charged project that is bitterly opposed by environmentalists.

The United States will Wednesday reject the proposed Keystone XL oil pipeline from Canada, a politically charged project that is bitterly opposed by environmentalists, news reports said.

President Barack Obama's Republican rivals quickly denounced the reported decision. They had pushed for the pipeline and set a deadline of late February for the administration to give an answer.

The Politico news website and The both said the State Department would announce a rejection later Wednesday but allow company TransCanada to pitch an alternative route.

State Department officials declined to comment on the reports but said that they expected new developments on the controversial project later Wednesday.

Environmentalists fear an accident along the proposed 1,700-mile (2,700-kilometer) extension into the Great Plains and note that the oil comes from , meaning it will emit high amounts of carbon blamed for global warming.

Republican lawmakers, the oil industry and the Canadian government say that the project will create jobs.

House Speaker John Boehner, asked about the reported decision, pointed to Canadian Prime Minister Stephen Harper's threats to sell oil to China if the United States does not approve the project.

"If we don't build this pipeline to bring that Canadian oil, and take out the North Dakota oil and deliver it to our refineries in the Gulf Coast, that oil is going to be shipped out to the Pacific Ocean and be sold to the Chinese," Boehner told reporters.

"This is not good for our country," he said.

With November elections expected to focus on job creation, Republicans have been eager to highlight the issue which has divided some of Obama's environmental and labor supporters.

Anti-Keystone protest leader Bill McKibben, founder of the activist group, hailed Obama for standing up to the "fossil fuel lobby" which he said was in control of Congress.

"Assuming that what we're hearing is true, this isn't just the right call, it's the brave call," he said in a statement.

"The knock on from many quarters has been that he's too conciliatory. But here, in the face of a naked political threat from Big to exact 'huge political consequences,' he's stood up strong," McKibben said.

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5 / 5 (2) Jan 18, 2012
"If we don't build this pipeline to bring that Canadian oil, and take out the North Dakota oil and deliver it to our refineries in the Gulf Coast, that oil is going to be shipped out to the Pacific Ocean and be sold to the Chinese," Boehner told reporters.
Whereas if it gets pumped to Texas, it gets shipped to Europe, Africa, and South America, and that of course is much better for the American economy than if it went to China. Oh, wait. Why exactly does the pipeline need to go to the Gulf of Mexico? Take a careful look at what's going on. There already is a Keystone pipeline that terminates in Illinois and Oklahoma, and there are other pipelines from Canada to those two places and from there to the Gulf. The whole idea behind the Keystone XL extension is to bypass as much of the US as possible and send the oil straight to coastal refineries. Bad for refineries in middle America and thus for the American economy as a whole, good for Texas, good for Canada.
1 / 5 (14) Jan 18, 2012
A new oil refinery has not been built in the US for over 30 years.
But not for lack of trying.
A company has been trying build a refinery in AZ for over 10 years to serve So.Cal and AZ.
Gasoline is piped from El Paso to Tucson and Phx.
5 / 5 (1) Jan 19, 2012
The single largest export from the United States is now fuel (gasoline, diesel, and jet fuel).

The Chinese now own 1/3 stake of Chesapeake Energy's oil and gas leases, and are now covering 2/3 of drilling and completion costs.

American drivers are not the primary beneficiaries of increased US oil exploration. Or the secondary, tertiary, quaternary, or even quintary beneficiaries. They're dead last in that money chain.

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