Industry source: State Department will reject Keystone pipeline reroute
Published January 18, 2012
The State Department will announce the decision on Keystone XL pipeline is "no," as early as Wednesday, an industry source told Fox News, suggesting that the department will say 60 days is inadequate time to do the required environmental impact assessment on the path of the coveted pipeline.
While the State Department for three years has been reviewing the initial proposal to run a pipeline from Canada down to Texas through a sensitive Nebraska aquifer, it retreated early from indications it would approve the plan after environmentalists complained.
Industry workers and Republicans contend the project would create thousands of jobs, and Canada's prime minister has warned if the U.S. can't get on board, the North American nation will look to team with China.
In December, Congress attached to the payroll tax cut a deadline of 60 days for the State Department to determine approval for an alternative route.
On Tuesday, President Obama's own jobs council suggested that it agrees with the pipeline concept. While not specifically mentioning Keystone in a report out Tuesday about improving competitiveness, the council said that when it comes to energy projects in general, the government needs to "expeditiously, though cautiously, move forward on projects that can support hundreds of thousands of jobs."
"We think this all-in energy strategy can create significant economic growths and significant job creation," said Lewis Hay, NextEra Energy CEO and a member of the president's job council.
Obama has noted his environmental concerns when it comes to energy exploration but insisted Tuesday that a balance could be found.
"I think the recommendations are sound. We see enormous potential in production of traditional fossil fuels," he said without mentioning Keystone.
As oil prices rose Wednesday on fresh signs the U.S. economy was improving, which could lead to stronger demand for gasoline and other energy products, the Natural Resources Defense Council, an environmental group, argued that the pipeline doesn't make the U.S. anymore energy secure just because it would get oil from a close neighbor and friend.
Separately, House Speaker John Boehner accused the president of trying to put off a politically difficult decision until after the election. He added that the president is derelict if he lets the Chinese get the pipeline with Canada, rather than the U.S.
"If we don't build this pipeline to bring that Canadian oil and pick up the North Dakota oil and deliver it to our refineries in the Gulf Coast, that oil is gonna get shipped out to the Pacific Ocean and will be sold to the Chinese. This is not good for our country," Boehner said.
"The president wants to put this off until it's convenient for him to make a decision. ... The president's got an opportunity to create 100,000 new jobs almost immediately. The president should say yes," he said.
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