Oil pipeline Keystone XL鶹ýӳs fate debated after Obama鶹ýӳs speech on climate change
In a recent speech addressing climate change, US President Barack Obama arguably tied the fate of the heavily debated, proposed Keystone XL oil pipeline to its impact on greenhouse gas emissions.
Halfway through his speech at Georgetown University in Washington, D.C., Obama singled out the pipeline project, saying a US energy strategy will be encompass many different sectors. 鶹ýӳIt鶹ýӳs certainly going to be about more than just building one pipeline,鶹ýӳ he said.
TransCanada鶹ýӳs Cdn$ 5.3 billion pipeline project will only get a green light if the US State Department, required to grant approval since the pipeline will cross an international border, thinks the project serves the nation鶹ýӳs interests, the President said to applause, which means it must not significantly 鶹ýӳexacerbate the problem of carbon pollution.鶹ýӳ
鶹ýӳThe net effects of the pipeline鶹ýӳs impact on our climate will be absolutely critical to determining whether this project is allowed to go forward. It鶹ýӳs relevant,鶹ýӳ he added.
Canadian relations
The long-delayed project carrying oil from Alberta鶹ýӳs oilsands to refineries on the Gulf Coast has seen much opposition, with many environmental groups pressuring the President to veto the project. On the other side, Republicans, and business and labour groups, have urged the Obama administration to approve the pipeline as a source of jobs and a step toward North American energy independence.
Canada has said the project would be a welcome economic boost, and Canada鶹ýӳs Prime Minister Stephen Harper has warned that its rejection could tarnish relations with the US.
Canada has the world鶹ýӳs third largest oil reserves, with 170 billion bbls of proven reserves in the oilsands region alone. Canada needs infrastructure in place to export its growing production. The country relies on its southern neighbour for 97% of its energy exports.
Long-delayed decision
On 1st March 2013, the US Department of State released a Draft Supplementary Environmental Impact Statement (Draft SEIS) on Keystone XL that reaffirmed 鶹ýӳthere would be no significant impacts to most resources along the proposed Project route.鶹ýӳ
The report acknowledged that development of the oilsands in Alberta would create greenhouse gases, but it also made clear that other methods to transport the oil 鶹ýӳ including rail, trucks and barges 鶹ýӳ also pose a risk to the environment. For instance, a scenario that would move the oil on trains to mostly existing pipelines would release 8% more greenhouse gases than Keystone XL, the report said.
Reactions
In reaction to Obama鶹ýӳs speech, Canada鶹ýӳs Natural Resources Minister said he鶹ýӳs confident the oil pipeline will be approved because it meets President Obama鶹ýӳs requirement that it not lead to a significant increase in greenhouse gas emissions.
Minister Joe Oliver pointed to 鶹ýӳObama鶹ýӳs very own State Department鶹ýӳ which he said concluded in a report this year 鶹ýӳthat there would be no increase in greenhouse gas emissions.鶹ýӳ
鶹ýӳThis pipeline has been the most studied pipeline in the history of the world,鶹ýӳ Oliver added.
Similar to most discussion related to the Keystone XL pipeline, reaction to Obama鶹ýӳs comments was sharply divided. Environmental groups have interpreted the speech as indicative of the pipeline鶹ýӳs impending rejection, where as energy industry representatives, including TransCanada, said they believe the pipeline will meet Obama鶹ýӳs criteria.
Renowned climate activist Bill McKibben said on Twitter, 鶹ýӳSo pleased that Barack Obama understands that the KXL fight is about climate.鶹ýӳ Al Gore, on his blog, wrote that 鶹ýӳThis was a terrific and historic speech, by far the best address on climate by any president ever.鶹ýӳ
However, the President did not reject the pipeline in his speech, nor promise to do so in the future. Forbes staff writer Christopher Helman has chosen to focus on the word 鶹ýӳexacerbate鶹ýӳ, which leaves a lot of wiggle room. 鶹ýӳIt means to aggravate, to sharpen, or to make a bad problem worse. The anti-Keystone crowd naturally thinks that the pipeline, or anything that aids in the transport of oilsands crude, would exacerbate carbon emissions.But that鶹ýӳs not what the State Department found [in its Draft SEIS],鶹ýӳ he notes.
TransCanada, the Calgary-based company that has proposed the pipeline, said in a statement it was pleased with Obama鶹ýӳs comments setting out criteria for pipeline approval.
鶹ýӳThe almost five-year review of the project has already repeatedly found that these criteria are satisfied,鶹ýӳ said Russ Girling, TransCanada鶹ýӳs President and Chief Executive.
Political decision
After considering Obama鶹ýӳs speech, Greg Stringham, the Canadian Association of Petroleum Producers鶹ýӳ Vice-President of Oilsands and Markets, said he believes it is another step toward the oil pipeline鶹ýӳs ultimate approval when considered in conjunction with the State Department draft environmental review.
鶹ýӳIt鶹ýӳs still a political decision so we鶹ýӳre looking for certainty and we鶹ýӳre hoping it will be sooner rather than later,鶹ýӳ Stringham said. 鶹ýӳBut as we look at the process through this, as the State Department is working on their final environmental impact assessment, we don鶹ýӳt see anything that would have changed the conclusions they came up with in March.鶹ýӳ
The pipeline would carry 800 000 bpd of oil across six US states to refineries along the Gulf Coast. A southern leg from Oklahoma to ports near Houston already has been approved, and construction is proceeding.
The Obama administration is expected to make a final decision on Keystone by the end of the year.
Edited from various sources by
Read the article online at: /business-news/26062013/oil_pipeline_fate_debated_after_climate_change_speech_357/
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