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Obama administration poised to kill Keystone XL

November 10, 2011

The US State Department has demanded changes to the route of the Keystone XL pipeline that will delay the pipeline for at least another year:

The State Department is ordering the developer of a pipeline that would carry oil from western Canada to Texas to reroute the project away from environmentally sensitive areas of Nebraska.

That decision could delay a final U.S. decision on the project until after the 2012 election.

The decision will require an environmental review — and that could take at least a year.

TransCanada Corp. is seeking to build the $7 billion pipeline. Part of the 1,700-mile pipeline would pass through Nebraska’s Sandhills region and an aquifer that supplies water to eight states

Two senior State Department officials who are familiar with the project described the decision to The Associated Press. The officials spoke on condition of anonymity because they weren’t authorized to discuss the decision before an official announcement.

Petroleum Economist states that this is more than a mere delay – that the pipeline is now “all but dead.”  This means that the oil from the Alberta tar sands will instead flow west, through a vastly more sensitive ecosystem, and be shipped via tanker to Chinese markets rather than to US markets.  I wrote yesterday that Obama is poised to run as a Warrior President; however, for all those victories, it is difficult to paint any of them as beneficial to US energy security, which I believe is our most vital foreign policy concern for the next half century.  This decision further weakens the president on that front ahead of the election campaign, even as he tries to defer a formal decision until after the election.

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