Approving the Keystone XL Pipeline

By:  Brian Koenig
10/12/2011
       
Approving the Keystone XL Pipeline

Political contention over TransCanada’s Keystone XL pipeline is rife with rhetoric and claims of environmental apocalypse, as the paperwork for the proposed 1,700-mile Canada-U.S. pipeline gathers dust on President Obama’s in-tray. If approved, the $7 billion expansion will transport Canadian crude oil from the Athabasca Oil Sands in northeastern Alberta, Canada, southeast through the U.S. Midwest, and then on to the Gulf Coast.

The Keystone pipeline was originally proposed on February 9, 2005. The privately funded, shovel-ready project has endured intermittent delays over the years, but it began piping oil to Illinois and Missouri in 2010. Phase II of the project, launched in February 2011, would extend the pipeline from Steele City, Nebraska, to Cushing, Oklahoma — a pivotal crude oil refining and pipeline hub.

Though the pipeline has been in operation for almost a year, a new segment of the project, the Keystone Gulf Coast Expansion, also known as Keystone XL — which would originate in Hardisty, Alberta, and run southeast through Montana, South Dakota, and Nebraska, while incorporating Phase II of the pipeline to extend to Texas and Oklahoma markets — is facing formidable hurdles. The Canadian government’s National Energy Board approved the expansion in 2010, but is awaiting final approval from the Obama administration.

Political contention over TransCanada’s Keystone XL pipeline is rife with rhetoric and claims of environmental apocalypse, as the paperwork for the proposed 1,700-mile Canada-U.S. pipeline gathers dust on President Obama’s in-tray. If approved, the $7 billion expansion will transport Canadian crude oil from the Athabasca Oil Sands in northeastern Alberta, Canada, southeast through the U.S. Midwest, and then on to the Gulf Coast.

The Keystone pipeline was originally proposed on February 9, 2005. The privately funded, shovel-ready project has endured intermittent delays over the years, but it began piping oil to Illinois and Missouri in 2010. Phase II of the project, launched in February 2011, would extend the pipeline from Steele City, Nebraska, to Cushing, Oklahoma — a pivotal crude oil refining and pipeline hub.

Though the pipeline has been in operation for almost a year, a new segment of the project, the Keystone Gulf Coast Expansion, also known as Keystone XL — which would originate in Hardisty, Alberta, and run southeast through Montana, South Dakota, and Nebraska, while incorporating Phase II of the pipeline to extend to Texas and Oklahoma markets — is facing formidable hurdles. The Canadian government’s National Energy Board approved the expansion in 2010, but is awaiting final approval from the Obama administration.

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Photo: AP Images

 

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