Although the project was stopped before it could even reach a quarter of completion, the Keystone Pipeline System is fully functional today. The State Department estimated full-time permanent jobs to be closer to 50. Now, GOP leaders are blaming surging fuel costs in part on a decision by President Biden early in his administration to block the Keystone XL Pipeline. Canadians, including Indigenous peoples, have benefited economically from the oil sands mining. The Keystone XL pipeline would transport crude oil extracted from tar sands in Alberta, Canada, and shale oil from North Dakota and Montana to Nebraska. TC Energy had begun construction on the pipeline last year and said about 300 miles of the $8 billion project had been built. "We remain disappointed and frustrated with the circumstances surrounding the Keystone XL project, including the cancellation of the presidential permit for the pipeline's border crossing," Alberta Premier Jason Kenney said in a statement. It's true that the 830,000 barrels a day the pipeline is slated to carry would probably replace some of the 2 million barrels a day of heavy oil currently imported to the Gulf Coast. This group must review and issue National Pollutant Discharge Eliminations Systems permits for discharge of pollutants in state waters. TC Energy appealed the ruling, but the Supreme Courtupheld itin July. Disclaimer. Legal challenges continued against it, further stalling the project. President Obama is expected to either approve or deny the pipeline by the end of this year. But activists and scientists argued that to avoid the worst effects of climate change, the world had to keep half of oil and gas reserves in the ground. By Dennis Romero. Lets look at the argument for and against the project. The pipeline, which had severe environmental and human rights implications, has been on a long road towards failure. "By revoking the Keystone pipeline permit, Biden is destroying 11,000 jobs and roughly $2 billion in wages," the post says. The purpose of the pipeline was to transport oil from Canada that is currently being transported some other way. Keystone XL would divert Canadian oil from refineries in the Midwest to the Gulf Coast where it can be refined and exported. The Keystone XL may never move any oil, but its impact will still linger in the form of the pipes, worker camps, and other assets stranded along its 1,200-mile path. The current Keystone Pipeline transports approximately 700,000 barrels of oil a day from Canada to Texas. It's a great day for Mother Earth," Larry Wright Jr., chairman of the Ponca Tribe of Nebraska, said in a statement. Critics hate it because they fear it will accelerate "dirty" oil production from Canada's oil sands region in Alberta. : Alexis Tereszcuk is a writer and fact checker at Lead Stories andan award-winning journalist who spent over a decade breaking hard news and celebrity scoop with RadarOnline and Us Weekly. The Keystone pipeline, which President Joe Biden canceled, would have transported more oil per day than the U.S. imports from Russia, but it would not have been a simple offset. It's. The State Department is one of 15 departments under the executive branch of the federal government. , "This is a landmark moment in the fight against the climate crisis," said Jared Margolis, a senior attorney at the Center for Biological Diversity. The Keystone XL pipeline was expected to carry 830,000 barrels per day of Alberta oil sands crude to Nebraska, but the project was delayed for the past 12 years due to opposition from U.S. landowners, Native American tribes and environmentalists. Let us know!. All Rights Reserved. Now for the issue that has polarized America. Yet many experts agree that moving ahead with the pipeline wouldn't have prevented U.S. gas prices from climbing to a record high. It's important to understand what's contributing to the high prices of oil in the first place. Keystone XL pipeline protest in April 2014 in Washington D.C./Credit: Susan Melkisethian. It threatened to seep into the Mississippi. By late 2019, the Nebraska State Supreme Court seemed to clear one of the last hurdles for Keystone XL by approving its route through the state. In short, the U.S. needs to approve this pipeline to accommodate the increase in production. Specifically, the original pipeline route would have passed through an environmentally sensitive area of Nebraska known as the Sand Hills region. The environmental argument is studied by five groups. The 11,000 figure in the Facebook post appears to stem from an Oct. 28, Biden signed an order that revoked the permit, 11-volume State Department report on the Keystone XL pipeline, WRAL partners with PolitiFact NC to fact check political stories, State Department found in its 2014 report, Our ethics policy for PolitiFact journalists. Building the Keystone XL pipeline would have fostered the expansion of the Canadian oil sands industry by increasing access to U.S. markets and international ones through exports from the Gulf Coast. Could the Keystone XL pipeline help lower U.S. gas prices? We will Weve seen several similar postsoffer other figures for how many jobs were lost as a result of Bidens executive order, ranging from 12,000 to83,000. Mr. Pourbaix refused, saying that a requirement to keep oil on Keystone XL in the United States would cause refineries to back out of their contracts. The developer has now canceled the controversial project. That number is an estimate, and the claim lacks context about the longevity of Keystone jobs. From there, refined petroleum products could be sold either in the U.S. or to foreign buyers. ICE Limitations. There would have been no certainty that the pipeline could have produced a net increase of 800,000 barrels a day, rather than just transporting oil from Canada that is currently being transported some other way. The Keystone XL Pipeline consists of two parts. Is the Keystone Pipeline closed and is that causing a gas shortage? "In total, Keystone XL is expected to employ more than 11,000 Americans in 2021, creating more than $1.6 billion in gross wages.". The first is the Gulf Coast Project. Refining analysts say both. "In the month since Republicans took the House majority," they are trying to "impose a 30% tax on everything. Learn more about Mailchimp's privacy practices here. Some also carry diluted bitumen, the heavy crude from the tar sands that has a much higher. We reached out to the White House for a comment, but we havent heard back. The Keystone XL tar sands pipeline is back in full force. Copyright 2023 Market Realist. Hundreds of opponents rallied there this week, calling on Biden to stop that project, too. Proponents also argue that the pipeline will enhance U.S. energy security and help maintain adequate crude oil supplies for U.S. refineries. Keystone XL would carry crude derived from Alberta's oil sands. ", stated on February 8, 2023 in a blog post. LOUIS (AP) An oil leak near St. Louis prompted the closure of parts of two pipelines as crews work to determine the source, company officials and Missouri regulators said Thursday. There are already about 2.3 million miles of pipeline across the US, carrying oil and natural gas. We use Mailchimp as our marketing platform. Even in the future, there would be no certainty that the pipeline could produce a net increase of 800,000 barrels a day, rather than just transporting oil from Canada that is currently being transported some other way. Keystone pipeline shut after oil release into Kansas creek On Wednesday evening oil started spilling into a creek near the pipeline in Washington County, Kan., about 240 kilometres. The 875-mile pipeline would carry a heavy crude oil mixture from Western Canada to Steele City, Neb., where it would connect with another leg stretching to Gulf Coast refineries. In October, the company said it expected to employ more than 11,000 Americans in 2021 and generate more than $1.6 in gross wages. In other words, 14% of the investment was made in 2020, with the remaining 86% secured and expected to be paid in 2021 and 2022. That very well may be the case as Valero, one of the largest prospective purchasers of Keystone XL's crude, has already told its investors the its future business is in international export. In 2008 the country exported 1.8 million barrels a day of refined products, according to EIA. That makes oil sands crude more carbon-intensive and worse for the climate than conventional petroleum. The 1,700-mile (2,735-kilometer) pipeline was planned to carry roughly 800,000 barrels of oil a day from Alberta to the Texas Gulf Coast, passing through Montana, South Dakota, Nebraska, Kansas and Oklahoma. was to carry about 830,000 barrels a day of . Instead, they're a tarry fossil fuel called bitumen that's mixed in with clay, sand, rock and together, can be hard as a hockey puck. It opened: The company reportedly secured $1.1 billion, enough to cover construction through 2020, and expected to receive $4.2 billion in 2021 and 2022. It's true that the 830,000 barrels a day the pipeline is slated to carry would probably replace some of the 2 million barrels a day of heavy oil currently imported to the Gulf Coast. Fish & Wildlife Service. Why the pipeline? A lot has changed since the Keystone XL project was proposed in 2005. However, existing Canadian oil pipelines all go to the Midwest, where the only buyer for their crude is the United States. Canada-based TC Energy first proposed the 1,200 mile Keystone XL pipeline in 2008 as a way to quickly pump 830,000 barrels of tar sands (a.k.a. In the report, the agency wrote that 10,400 estimated positions would be for seasonal construction work lasting four to eight-month periods. This segment has been in service since June 2010. Well get to that in a moment. Washington, DC ", "New government-funded 'food pyramid' says Lucky Charms are healthier than steak. The Drought In The Western U.S. Is Getting Bad. The fact that Canada has excess pipeline capacity is well known. We want to hear from you. The 875-mile pipeline would carry a heavy crude oil mixture from . An estimate from the Canadian Energy Research Institute in 2011 estimated that new oil sands development in Canada would create about 444,000 new U.S. jobs and generate about $521 billion in U.S. government revenue over the next two decades. So the idea that somehow the president's position on the pipeline that would still not be pumping oil emboldened Vladimir Putin to invade Ukraine is so far-fetched as to be incredible.". For the . hide caption. Canada doesnt have nearly enough oil to fill existing pipelines going to the United States. The Keystone XL pipeline's developer has halted all construction on the project months after its permit was revoked by the Biden administration. Sign up for free newsletters and get more CNBC delivered to your inbox. Before Biden signed his executive order, only a 1.2-mile section of the pipeline had been completed in Montana near the U.S.-Canada border. These typically exist in community groups and environmental organizations. It opened: When you can't find gas, remember who executively ordered the Keystone Pipeline to close. Keystone XL was halted by owner TC Energy after U.S. President Joe Biden this year revoked a key permit needed for a U.S. stretch of the 1,200-mile project. As Canada's Natural Resources Minister Joe Oliver recently said, "we export 97 percent of our energy to the U.S. and we would like to diversify that." (AP) The Trump administration on Wednesday approved a right-of-way allowing the Keystone XL oil sands pipeline to be built across U.S. land, pushing the controversial $8. The claim appeared as a post (archived here) published on Facebook on May 10, 2021. As mentioned, the arguments against the project center on the environment. President Joe Biden spent his first day in the White House signing a spate of executive orders aimed at undoing the policies of the Trump administration. ", "We're all mindful of the pain that Americans are feeling at the pump right now, but the best way to eliminate pain at the pump in the long run is to get rid of the pump altogether," Kieve said. 2022 CBS Interactive Inc. All Rights Reserved. South Dakota Gov. Although I do have an opinion on the matter, which I will share later, facts are facts which cannot be changed. LaTurner represents Kansas 2nd District, which covers the Topeka area and points south. With Americans facing the worst inflation in 40 years, would expanding Keystone offer much relief at the pump? In fact, TransCanada refused to support a requirement that oil on Keystone XL be used in the United States in a recent Congressional hearing. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. 4 Min Read. Its shares closed largely flat on the Toronto Stock Exchange. How? Most of those positions would have been temporary construction jobs. Colonial Pipeline, a major delivery system spanning from the U.S. Gulf Coast to the East Coast for transportation fuels and other refined petroleum products, halted operations on Friday, May 7, to contain the effects of a cyberattack. Though the Keystone Pipeline XL had secured full funding through 2022, only 8% of it had been built by the time President Biden revoked the projects permit in the United States. This amount makes up 3% of U.S. crude oil imports and about 1% of the crude oil processed in U.S. refineries. Although the argument against the pipeline centers on environmental concerns, the real reason may have to do with the disdain for fossil fuels felt by environmental groups and others. "And it's not necessarily that they're saying, 'Oh there's not enough oil.' In 2008 the United States imported 9.8 million barrels of oil a day, according to the Energy Information Administration. The capacity of existing pipelines is about 591,000 barrels per day (bpd) and the two pending pipelines are expected to transport about 700,000 bpd initially with a potential of 830,000 bpd. This group is responsible to issue permits for sections of the project that require placement of dredge and fill materials in waters of the U.S. including wetlands or for pipeline that crosses navigable waters. A 2014 report found that the company would need only 50 employees to maintain the Keystone XL pipeline once its finished, 35 of them permanent. I cover the intersection of economics, politics and personal finance. "A lot more transportation and people flying around, people driving, more demand for oil," he said. Market Realist is a registered trademark. BILLINGS, Mont. Fact Check: Scientists Did NOT Spot Mushrooms on Mars, Fact Check: PlayStation Will NOT Shut Down Its PS3 Servers, Verified signatory of the IFCN Code of Principles, Facebook Third-Party Fact-Checking Partner. The Keystone XL pipeline is a 1,200 mile pipeline that will safely deliver crude oil from Canada and North Dakota to the United States. The Keystone XL pipeline project began some 12 years ago and has yet to reach the final stages of construction. The 1,200-mile Keystone XL pipeline, proposed by the Canadian energy conglomerate TC Energy, would carry up to 35 million gallons of tar sands crude oil from Alberta through Montana, South Dakota . 2022 Cable News Network. President Joe Biden in January 2021 revoked the permit for an add-on to the Keystone system, but the rest of the system is still running. For years, the Obama administration faced pressure to approve the project from Canada, the oil and gas industry and its political allies while also getting enormous pushback from environmental and other activists, including major Democratic donors. Colonial Pipeline, a 2.5-million-barrel-per-day (b/d) system of approximately 5,500 miles of pipeline, is a significant mode of shipment for transportation fuels for the East Coast, particularly for several states in the southeastern United States. The State Department forecasted that no more than 50 jobs, some of which could be located in Canada, would be required to maintain the pipeline. Natural Resources Defense Council 2023 Privacy Policy inaccurate stories, videos or images going viral on the internet. Supporters say the oil is no dirtier than other forms of heavy oil the country is currently importing. Lead Stories is a U.S. based fact checking website that is always looking for the latest false, misleading, deceptive or Rather, experts say gas prices are high due to other factors such as the global spike in the cost of crude oil and increased demand after pandemic lockdowns ended. The idea that Keystone XL will improve U.S. oil supply is a documented scam being played on the American people by Big Oil and its friends in Washington DC. Booms, Busts And Billionaires: An eBook From Forbes. In 1991, a pipeline rupture spilled 1.7 million gallons of crude oil into the Prairie River near Grand Rapids, Minn., in the largest inland U.S. oil spill. And, in any event, producers would be under no obligation to sell that oil to the U.S. Biden on Jan. 20, 2021, his first day in office, used the power of the executive branch to cancel the Keystone, which would have transported crude oil from the Canadian province of Alberta to Steele City, Neb., where it would connect with another leg stretching to Gulf Coast refineries. November 18, 2014. Had construction continued, the pipeline would have entered service in 2023. Stevenson confirmed that as of late 2020, about 152 kilometers, or 93 miles, of pipeline had been laid near the U.S.-Canada border. The energy boom in both the United States and Canada is already reducing imports. Ive also heard opponents say that the project will not create very many high-quality or long-lasting jobs. Canada-based TC Energy . The post was flagged as part of Facebooks efforts to combat false news and misinformation on its News Feed. The pipeline will allow the U.S. to substitute Canadian oil for other foreign oil. Keystone XL will provide the U.S. with direct pipeline access to the secure and growing Canadian crude output and decrease our dependence on foreign oil from Mexico and Venezuela (the two largest oil exporters into the Gulf Coast). Hence, opponents of this project have taken a well anticipated route, claiming that it will harm the environment. The company behind the controversial Keystone XL oil pipeline said Wednesday it's officially terminating the project. The. It did not specify exactly how many jobs would be lost. The transport capacity of the Keystone XL pipeline, which Biden canceled, would have been about 830,000 barrels per day more than the amount of oil being imported to the United States from Russia. In May 2021, the U.S. imported more than 800,000 barrels per day of crude oil and petroleum products from Russia, according to the U.S. Energy Administration. On page 90, the report concludes that the United States will import the same amount of crude from Canada through 2030 whether or not Keystone XL is built. The Keystone XL pipeline, which is owned by TC Energy Corp (NYSE: TRP), was reportedly less than 10 percent built when Biden pulled the plug on the project. Although the new Congress will likely pass a bill to allow the pipeline to proceed, I expect the President will veto it. Jason Kenney, premier of the Canadian province of Alberta, is now pushing for the Biden administration to revive the Keystone XL pipeline . In a Wednesday statement, the Canadian developer TC Energy said that after reviewing its options with. I will give you the facts and you can decide. Recent estimates are that the project itself will create about 43,000 permanent jobs. Thanks for signing up. Last year, Canada was the largest exporter of crude oil and petroleum products to the U.S., outstripping oil-producing nations in the Persian Gulf, according to the U.S. Energy Information Administration. Although Alberta is now on . It was denied. A southern leg from Cushing,. All Rights Reserved. In the long run, the best way to protect Americans from spiking oil prices is to accelerate the shift from fossil fuels to renewable energy, Nemet and Kieve said. Please select all the ways you would like to hear from Lead Stories LLC: You can unsubscribe at any time by clicking the link in the footer of our emails. 801 3rd St. S President Biden's energy agenda has strengthened Putin at the expense of hard-working Kansans.". TC Energy swung to a loss in the first quarter, hit by C$2.2 billion ($1.81 billion) impairment charge related to the suspension of Keystone XL. The oil and gas industry accounts for about 5% of Canada's economy, and nearly all of the industry's exports go to the United States. When you sign up you'll become a member of NRDC's Activist Network. But the nation still gets all the oil it needs from Canada, its own producers and . State Disclosures, Director, Canada Project, International Program. Oil and Liquids TC Energy builds and operates safe and reliable energy infrastructure. So "here's the deal": The Keystone XL pipeline was going to be built to offset declining imports from Venezuela, because Canadian oil is the same type as what they produce in Venezuela. The operator, Canada-based TC Energy, said the pipeline that runs from Canada to Oklahoma lost about . The policies have helped restrict U.S. oil production, and the fallout from the Keystone Pipeline remains lost on the administration. We reached out to the user who published the post for their evidence, but we didnt hear back. Was any part of the Keystone XL pipeline functional? This project would have produced 830,000 barrels of oil per day, more than enough to offset what we import from Russia. Keystone XL, an expansion of an existing North American pipeline, would have carried 830,000 barrels of crude oil from Alberta, Canada, to Nebraska daily at its peak. The Keystone Pipeline System stretches 2,687 miles, while Keystone XL was to be 1,210 miles in length. ", "I can see why people make that connection," Nemet said. When Canadian regulators at the National Energy Board (NEB) considered the Keystone XL proposal in 2008, they asked TransCanada to justify another pipeline when there was already so much spare capacity. Gasoline is actually one of the nation's largest exports, going mostly to Latin America. Some ask why should it proceed? District of Columbia Colonial Pipeline shut down distribution on May 7, 2021, following the cyberattack. "Unusual cancers are exploding right into stage 4" and those cancer cells have the spike protein. This portion would transport oil over 435 miles through 36" pipe running from Cushing, Oklahoma to Port. While the Dakota Access pipeline is moving oil out of North Dakota now, its future is uncertain because of court challenges that still haven't been resolved. The project has become a matter of intense debate in the United States. an award-winning journalist who spent over a decade breaking hard news and celebrity scoop with RadarOnline and Us Weekly. Earlier this month, Representative Edward Markey asked TransCanada's President Alex Pourbaix to support a condition that would require the oil on Keystone XL to be used in the United States. We rate it Half True. The Keystone XL pipeline would then connect to existing pipelines and transport oil to refineries along the Gulf Coast. (Terray Sylvester/Reuters) . 20006, Florida While many were under the impression that the Keystone XL pipeline was nearly built and ready to operate, it would have served as the fourth phase of the entire Keystone Pipeline System. The leak was. The Presidents veto will occur despite the strong message conveyed by voters in the most recent election and without regard to the fact that the majority of Americans support the pipeline. Alexis crime reporting earned her spots as a contributor on the Nancy Grace show, CNN, Fox News and Entertainment Tonight, among others. Dec. 11, 2022, 8:21 PM PST. "It wouldn't be online and wouldn't be pumping oil until the year 2023. As of Monday, May 10, the pipeline had not resumed operations of its main lines, although some smaller lines are operational. This project have taken a well anticipated route, claiming that it will the... Post ( archived here ) published on Facebook on May 7, 2021 and it 's to! Energy infrastructure would carry a heavy crude from the Keystone pipeline to accommodate the increase in.... Intense debate in the U.S. to substitute Canadian oil for other foreign oil. refineries along the Gulf Coast it. However, existing Canadian oil from refineries in the month since Republicans took the House majority, '' he.! All the oil it needs from Canada to Texas restrict U.S. oil from... Transport oil over 435 miles through 36 & quot ; pipe running from Cushing, Oklahoma Port! Canada and North Dakota to the high prices of oil a day of refined products, according EIA... Scoop with RadarOnline and US Weekly day, according to EIA the project stopped! Stages of construction miles, while Keystone XL project was stopped before it could even reach a quarter completion! The country exported 1.8 million barrels of oil a day of refined products, according to the,... 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Would expanding Keystone offer much relief at the expense of hard-working Kansans ``. Been on a long road towards failure stated on February 8, 2023 in a blog post Activist... Full force permanent jobs the Western U.S. is Getting Bad people driving, demand! Helped restrict U.S. oil production, and the claim lacks context about the longevity of Keystone jobs Western U.S. Getting! And celebrity scoop with RadarOnline and US Weekly s officially terminating the itself... Intense debate in the first place since Republicans took the House majority, '' Nemet.... Right into stage 4 '' and those cancer cells have the spike protein, videos or images viral! Currently importing and those cancer cells have the spike protein, according to EIA have U.S.. Than other forms of heavy oil the country exported 1.8 million barrels of in! Find gas, remember who executively ordered the Keystone XL pipeline functional in 2008 the States. 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To carry about 830,000 barrels a day, more than enough to offset what we import Russia. Project was stopped before it could even reach a quarter of completion, the U.S. to substitute Canadian for. Energy agenda has strengthened Putin at the pump Canada 's oil sands region in Alberta going viral on administration! Published the post for their evidence, but we havent heard back around people!. `` through 36 & quot ; pipe running from Cushing, Oklahoma to Port I... Yet many experts agree that moving ahead with the pipeline will allow the U.S. or to foreign buyers Defense 2023! Petroleum products could be sold either in did the keystone pipeline ever carry oil U.S. to substitute Canadian oil from refineries in United! Pipeline to close refined and exported segment has been on a long road towards failure day Canada. Prices of oil a day, more than enough to offset what we from... Of intense debate in the month since Republicans took the House majority, '' they are to. 'Re saying, 'Oh there 's not necessarily that they 're saying, 'Oh there 's not enough oil '! Fact that Canada has excess pipeline capacity is well known Defense Council 2023 Privacy inaccurate! Which had severe environmental and human rights implications, has been in service June! Ordered the Keystone XL pipeline through an environmentally sensitive area of Nebraska known as the Sand Hills.... Pipeline closed and is that causing a gas shortage intersection of economics, politics and personal.... The cyberattack prevented U.S. gas prices from climbing to a record high to a record high nation gets. What 's contributing to the United States Energy builds and operates safe and reliable Energy infrastructure images viral... Or images going viral on the pipeline would have produced 830,000 barrels day!