keystone xl pipeline


From StateImpact Texas: President Obama’s rejection of the Keystone XL pipeline provoked cheers from environmental groups, boos from rival politicians and a little bit of head scratching in the State of Texas. 


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.

The controversial Keystone XL Pipeline is taking over national headlines again. 

Last week, the State Department released an environmental review of the pipeline, finding tar sands extraction would have little impact on greenhouse gas emissions. 

As KUT's StateImpact Texas reports, "tar sands oil will be extracted regardless of whether or not the pipeline is built."

KUT's Mose Buchele talked with The Takeaway this morning about the impact that the largest oil producer in the world is having in Texas.

The State Department says that production of Canadian tar-sand crude, which has a bigger greenhouse gas footprint than other types of oil, is unlikely to be increased if the Keystone XL pipeline goes ahead — and therefore would do little to contribute to climate change.

A large section of the controversial Keystone XL pipeline went into official operation Wednesday, in a move that supporters say will help ease the flow of oil to refineries in the Gulf Coast region. The Obama administration has yet to rule on the project's northern portion.

Tens of thousands of protesters turned out on the National Mall Sunday to encourage President Obama to make good on his commitment to act on climate change.

In his Inaugural address from outside the U.S. Capitol, the president said: "We will respond to the threat of climate change knowing that the failure to do so would betray our children and future generations."

Just a few weeks later, next to the Washington Monument, Paul Birkeland was one of a couple dozen people holding a long white tube above their heads.

The United States' ambassador to the United Nations, Susan Rice, has been the subject of much criticism from the GOP.

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Austin Shoplifting Ring Busted

The Associated Press reports an Austin shoplifting ring has been caught selling stolen goods and smuggling them to Mexico. The list of stolen goods includes multiple household items: detergents, shampoos, batteries, cosmetics and razors.

Quoting "a White House official," CNN and USA Today are reporting that in a speech tomorrow President Obama will push for fast-tracking the construction of the southern portion of the Keystone XL pipeline.

USA Today reports:


Just days after a Texas farmer’s restraining order against Keystone XL pipeline builder TransCanada was lifted, the Alberta company announced it is starting work on a portion of the pipeline stretching from Oklahoma to Texas.

The company announced today it was reapplying for a permit to route the pipeline through Nebraska. Concerns over the route through Nebraska’s environmentally-sensitive Sand Hills region lead in part to rejection of TransCanada’s earlier application.

But TransCanada also announced it would commence building the southernmost portion of the pipeline -- from Cushing, Oklahoma to Texas ports at the Gulf of Mexico -- while it waits on permitting for the northern portion of the line, which requires presidential approval.

Image by Todd Wiseman/Jay Root, Texas Tribune

As the White House and Congress battle it out over the controversial Keystone XL pipeline, the Canadian company that wants to build it is still using its land-seizure powers to get property easements for the ambitious project.

And it’s ruffling some feathers in a politically conservative patch of Texas.

Several landowners along the proposed pipeline route say TransCanada has bullied them into selling their property by asserting “eminent domain” authority, the same power that governments use to seize land for highways and other public infrastructure projects. A property rights coalition tracking the condemnation proceedings has uncovered at least 89 land condemnation lawsuits involving TransCanada in 17 counties from the Red River to the Gulf Coast — cases that could test the limits of a private company's power to condemn property.

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In the pages of the Wall Street Journal, Governor Rick Perry says Texans are “baffled” by President Obama’s decision on the Keystone XL pipeline.

“Keystone would have provided a shot in the arm for our nation's uncertain economy, and it could have provided economic opportunity for tens of thousands of families, stretching from here in Texas all the way to the Canadian border,” Perry wrote in his op-ed in the Journal. He said the pipeline’s approval could create “up to 20,000 direct jobs,” a figure that has been questioned by Cornell University's Global Labor Institute. (A U.S. State Department estimate foresees approximately 5,000-6,000 construction jobs created by the pipeline.)

Hoping to appease environmental radicals, President Obama said no, claiming he didn't have time to adequately consider the pipeline,” Perry continues.

Photo by Ed Schipul, Texas Tribune

Legislation cracking down on insider trading by members of Congress hasn’t landed on the floor of the U.S. House yet, but it’s already become a political football in Congressional District 10.

That’s because the Democrat who wants that seat, international affairs consultant Dan Grant, is alleging that incumbent Rep.Michael McCaul, R-Austin, is benefiting from lax ethics rules for U.S. representatives and senators — rules the pending U.S. STOCK Act would help strengthen.

McCaul says his opponent is flat wrong.

At the heart of the dispute is the McCaul family’s private interest in the company pushing the Keystone XL Pipeline — and the congressman’s public advocacy for the project as a member of Congress. McCaul, believed to be the second-wealthiest member of Congress, reported that his family owned $115,000 to $300,000 in TransCanada Corporation stock as of 2010, the latest year available, according to ethics filings compiled online by the Center for Responsive Politics.

Photo by Daniel Reese for KUT News

Governor Rick Perry Drops out of GOP race

Texas Governor Rick Perry is dropping out of the race for the GOP presidential nomination, sources are telling the New York Times and CNN.

Perry has a news conference scheduled for 10 o’clock this morning in South Carolina, where he’s expected to make a formal announcement.

The Associated Press reports he will endorse former House Speaker Newt Gingrich.

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Approval for the Keystone XL pipeline – a controversial 1,700 mile pipeline designed to transport oil sands from Canada all the way to Texas ports along the Gulf of Mexico – is expected to be rejected today by the Obama Administration, according to a report from The Washington Post.

StateImpact Texas notes the announcement comes just a few weeks before the Obama administration would have been forced to make a decision on the proposal.

Photo by Teresa Vieira for KUT News

The U.S. Chamber of Commerce took aim at the Obama administration this morning, with a call for the president to approve the controversial Keystone XL pipeline, which would end at the Texas Gulf Coast.

Chamber president and CEO Thomas J. Donohue claimed in his annual “State of American Business” address that “This project has passed every environmental test. There is no legitimate reason—none at all—to subject it to further delay.”

But the National Resources Defense Council says the Chamber is waging a “disinformation campaign” on the pipeline’s behalf.

Photo by Keystone Pipeline System

Protestors gathered in front of the federal courthouse in downtown Austin this afternoon to denounce a deal struck in Congress that would extend a payroll tax cut by two months in exchange for a measure to speed up a decision on the Keystone XL Pipeline. The transcontinental pipeline would transport oil from Alberta, Canada to the Texas Gulf Coast.  

One of the major sticking points between the House and the Senate as they face off over end-of-year legislation is the controversial Keystone XL pipeline. The bill the House passed Tuesday contains a provision forcing President Obama to decide on the pipeline within 60 days.

Republicans say this project should move ahead quickly because it will create thousands of jobs. But just how many jobs would be created is a matter of contention.