keystone xl pipeline

The financial markets may be betting that the Keystone XL pipeline is a done deal.

The U.S. House and Senate have now both passed bills to force approval of the controversial pipeline.  The southern leg of the project already delivers oil from Cushing, Oklahoma to the Texas Gulf Coast. But approval of the full build-out would link existing pipe to the Canadian border, allowing more crude from the tar sands of Canada to reach Texas refineries via Cushing.

President Obama has vowed to veto the bills, but one expert says the fate of the project may already be written in futures contracts for crude oil.

Congress’ attempts to force approval of the Keystone XL pipeline have re-ignited debate over the project, which would allow more crude oil to flow from the tar sands of Canada to refineries on the Gulf Coast.  It’s also re-ignited debate over what could happen to that oil once it gets to Texas.

President Obama and opponents of the pipeline say it will be used as a funnel to export Canadian crude to international markets. TransCanada, the company building the pipeline, has been unequivocal when asked about that.

This post was updated at 6 p.m. ET.

The State Department is giving federal agencies more time to review the Keystone XL Pipeline project. The additional time was given "based on the uncertainty created" by an ongoing legal battle in Nebraska, according to a State Department statement.