In a recent speech addressing climate change, US President Barack Obama arguably tied the fate of the heavily debated, proposed Keystone XL oil pipeline to its impact on greenhouse gas emissions.
Halfway through his speech at Georgetown University in Washington, D.C., Obama singled out the pipeline project, saying a US energy strategy will be encompass many different sectors. 黑料社淚t黑料社檚 certainly going to be about more than just building one pipeline,黑料社� he said.
TransCanada黑料社檚 Cdn$ 5.3 billion pipeline project will only get a green light if the US State Department, required to grant approval since the pipeline will cross an international border, thinks the project serves the nation黑料社檚 interests, the President said to applause, which means it must not significantly 黑料社渆xacerbate the problem of carbon pollution.黑料社�
黑料社淭he net effects of the pipeline黑料社檚 impact on our climate will be absolutely critical to determining whether this project is allowed to go forward. It黑料社檚 relevant,黑料社� he added.
Canadian relations
The long-delayed project carrying oil from Alberta黑料社檚 oilsands to refineries on the Gulf Coast has seen much opposition, with many environmental groups pressuring the President to veto the project. On the other side, Republicans, and business and labour groups, have urged the Obama administration to approve the pipeline as a source of jobs and a step toward North American energy independence.
Canada has said the project would be a welcome economic boost, and Canada黑料社檚 Prime Minister Stephen Harper has warned that its rejection could tarnish relations with the US.
Canada has the world黑料社檚 third largest oil reserves, with 170 billion bbls of proven reserves in the oilsands region alone. Canada needs infrastructure in place to export its growing production. The country relies on its southern neighbour for 97% of its energy exports.
Long-delayed decision
On 1st March 2013, the US Department of State released a Draft Supplementary Environmental Impact Statement (Draft SEIS) on Keystone XL that reaffirmed 黑料社渢here would be no significant impacts to most resources along the proposed Project route.黑料社�
The report acknowledged that development of the oilsands in Alberta would create greenhouse gases, but it also made clear that other methods to transport the oil 黑料社� including rail, trucks and barges 黑料社� also pose a risk to the environment. For instance, a scenario that would move the oil on trains to mostly existing pipelines would release 8% more greenhouse gases than Keystone XL, the report said.
Reactions
In reaction to Obama黑料社檚 speech, Canada黑料社檚 Natural Resources Minister said he黑料社檚 confident the oil pipeline will be approved because it meets President Obama黑料社檚 requirement that it not lead to a significant increase in greenhouse gas emissions.
Minister Joe Oliver pointed to 黑料社淥bama黑料社檚 very own State Department黑料社� which he said concluded in a report this year 黑料社渢hat there would be no increase in greenhouse gas emissions.黑料社�
黑料社淭his pipeline has been the most studied pipeline in the history of the world,黑料社� Oliver added.听
Similar to most discussion related to the Keystone XL pipeline, reaction to Obama黑料社檚 comments was sharply divided. Environmental groups have interpreted the speech as indicative of the pipeline黑料社檚 impending rejection, where as energy industry representatives, including TransCanada, said they believe the pipeline will meet Obama黑料社檚 criteria.
Renowned climate activist Bill McKibben said on Twitter, 黑料社淪o pleased that Barack Obama understands that the KXL fight is about climate.黑料社� Al Gore, on his blog, wrote that 黑料社淭his was a terrific and historic speech, by far the best address on climate by any president ever.黑料社�
However, the President did not reject the pipeline in his speech, nor promise to do so in the future. Forbes staff writer Christopher Helman has chosen to focus on the word 黑料社榚xacerbate黑料社�, which leaves a lot of wiggle room. 黑料社淚t means to aggravate, to sharpen, or to make a bad problem worse. The anti-Keystone crowd naturally thinks that the pipeline, or anything that aids in the transport of oilsands crude, would exacerbate carbon emissions.听But that黑料社檚 not what the State Department found [in its Draft SEIS],黑料社� he notes.
TransCanada, the Calgary-based company that has proposed the pipeline, said in a statement it was pleased with Obama黑料社檚 comments setting out criteria for pipeline approval.
黑料社淭he almost five-year review of the project has already repeatedly found that these criteria are satisfied,黑料社� said Russ Girling, TransCanada黑料社檚 President and Chief Executive.
Political decision
After considering Obama黑料社檚 speech, Greg Stringham, the Canadian Association of Petroleum Producers黑料社� Vice-President of Oilsands and Markets, said he believes it is another step toward the oil pipeline黑料社檚 ultimate approval when considered in conjunction with the State Department draft environmental review.
黑料社淚t黑料社檚 still a political decision so we黑料社檙e looking for certainty and we黑料社檙e hoping it will be sooner rather than later,黑料社� Stringham said. 黑料社淏ut as we look at the process through this, as the State Department is working on their final environmental impact assessment, we don黑料社檛 see anything that would have changed the conclusions they came up with in March.黑料社�
The pipeline would carry 800 000 bpd of oil across six US states to refineries along the Gulf Coast. A southern leg from Oklahoma to ports near Houston already has been approved, and construction is proceeding.
The Obama administration is expected to make a final decision on Keystone by the end of the year.
Edited from various sources by听