Oil Change International investigated this issue in a report that found the Keystone XL pipeline was part of a larger strategy to sell increasing volumes of Canadian crude on the international diesel market. The current Keystone Pipeline transports approximately 700,000 barrels of oil a day from Canada to Texas. The project received significant backlash from environmental activists and indigenous communities, and was viewed as a hindrance to the U.S. transitioning from using fossil fuels to clean energy. According to a March 2020 TC Energy press release, the estimated cost of the project was to be $8 billion (here). Ive also heard opponents say that the project will not create very many high-quality or long-lasting jobs. 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. 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. Market Realist is a registered trademark. Our only agenda is to publish the truth so you can be an informed participant in democracy. National Association of Manufacturers CEO on Biden's canceling of the Keystone XL pipeline. "Instead of having international competition for a scarce resource where everybody wants the oil and there's a fixed amount of it, it's different," Nemet said. The developer of the Keystone XL pipeline announced Wednesday it is pulling the plug on the controversial project after the Biden administration revoked its permit in January.. TC Energy, the . The US Supreme Court denied a request from the Trump administration to allow construction of the Keystone XL pipeline, upholding a lower court's ruling blocking a permit needed for the project . In short: Most of the estimated jobs were temporary. Bidens order revokes the permit that was grantedMarch 29, 2019, by then-President Donald Trump on the grounds that it is harmful to the environment. See who is sharing it (it might even be your friends) and leave the link in the comments. The pipeline's opponents in Nebraska feared that any leak from Keystone XL would damage the critical aquifer, and they welcomed the end of the project. The Keystone XL pipeline project began some 12 years ago and has yet to reach the final stages of construction. This pipeline is the already existing Keystone pipeline that sends 550,000 barrels of oil from Alberta to Steel City. But most of those jobs are temporary. I believe we should let the project continue, which is exactly what I expect will happen in early 2015. The Keystone Pipeline System is an oil pipeline system that runs between Canada and the United States. Canada doesnt have nearly enough oil to fill existing pipelines going to the United States. "A lot more transportation and people flying around, people driving, more demand for oil," he said. A $9 billion oil pipeline that became a symbol of the rising political clout of climate change advocates and a flash point in U.S.-Canada relations was officially canceled on Wednesday. A Warner Bros. Spotted something? That number is an estimate, and the claim lacks context about the longevity of Keystone jobs. Environmental activists and indigenous communities hailed the cancellation, and traders and analysts said U.S.-Canada pipelines will have more than enough capacity to handle increasing volumes of crude out of Canada, the primary foreign supplier of oil to the United States (here). Many of these refineries are in Foriegn Trade Zones where oil may be exported to international buyers without paying U.S. taxes. Without support from the U.S. government, its effectively halted. Presidential permits require environmental assessments and other federal reviews, but they were generally granted without controversy over the years to Canadian pipelines. Had construction continued, the pipeline would have entered service in 2023. 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. The pipeline will allow the U.S. to substitute Canadian oil for other foreign oil. , according to the U.S. Energy Information Administration. The claim appeared as a post (archived here) published on Facebook on May 10, 2021. The operator, Canada-based TC Energy, said the pipeline that runs from Canada to Oklahoma lost about . Copyright 2023 Market Realist. "But there is a recognition that those types of actions may have some impact on the prices that Americans are paying at the pump.". 4 Min Read. Opinions expressed by Forbes Contributors are their own. The Reuters Fact Check team previously debunked social media claims surrounding the Keystone XL Pipeline, here . ", stated on February 8, 2023 in a blog post. The oil and gas industry forms the basis of a tight economic bond between the U.S. and Canada, which made the progress of Keystone XL such a protracted, high-stakes fight. The Keystone XL pipeline was designed to transport oil to the Gulf Coast because refineries in the region are already equipped to process heavier crude oils, like those found in Canada's Alberta . Yet many experts agree that moving ahead with the pipeline wouldn't have prevented U.S. gas prices from climbing to a record high. Those in favor of the pipeline have several diverse points which bolster their opinion. The Cushing Extension is 298 miles of 36 pipe which runs from Steele City, Nebraska to crude oil terminals and tank farms in Cushing, Oklahoma. It would have carried oil from landlocked Alberta to the U.S. Gulf Coast. Fiery train crash in Greece kills dozens, many of them students, Ex-Georgia star Jalen Carter was racing in deadly crash, arrest warrants allege, Watch Live: Garland testifies amid ongoing special counsel investigations. Could the Keystone XL pipeline help lower U.S. gas prices? By Dennis Romero. It's a great day for Mother Earth," Larry Wright Jr., chairman of the Ponca Tribe of Nebraska, said in a statement. 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. Construction began in April 2020, but that same month,a federal courtsaid that the project had to go through a full endangered species review. It was commissioned in 2010 and was to have four phases. Its symbolic of whether or not were willing to embrace the natural resources that we have in our country. A storage yard in Montana contains pipe that was to be used in the construction of the Keystone XL oil pipeline. The company behind the controversial Keystone XL oil pipeline said Wednesday it's officially terminating the project. The second segment, called the Keystone XL, would run 1,179 miles from Hardisty, Alberta to Steele City, Nebraska. "It's that as we produce more and more of these clean energy technologiesthey get more affordable for everyone. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. By 2012 that number had fallen to 8.5 million barrels a day. It's important to understand what's contributing to the high prices of oil in the first place. All quotes delayed a minimum of 15 minutes. Keystone XL is a relatively small issue compared to the entirety of the existing U.S. pipeline system. 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. 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. Here is a map of the current Keystone Pipeline from the company's website. The dog dewormer fenbendazole can cure cancer in humans. 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. When you sign up you'll become a member of NRDC's Activist Network. As a result of those environmentally-friendly construction priorities, Keystone XL was said by some to be a "model for green pipelining," the Journal reports. It's, 'Oh, there's a lot more risk now than there was before.'". "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. I cover the intersection of economics, politics and personal finance. A Facebook post says that Bidens executive order revoking the Keystone XL pipeline "is destroying 11,000 jobs.". Texas Rep. Dan Crenshaw, who has urged the Biden administration to ramp up domestic oil production, said in a tweet the day before Russia's February 24 attack that the Keystone project would have produced 830,000 barrels of crude per day. ", Rifles were involved in 297 deaths in the U.S. in 2022 and constipation killed 2,167.. Morningstar: 2019 Morningstar, Inc. All Rights Reserved. Once refined, it'll be impossible to tell exactly where the oil that came down the pipeline went, but "with more oil, that [export] number will increase," said Milne. The Keystone XL pipeline was. The Keystone XL pipeline was expected to carry 830,000 barrels per day of Alberta oil sands crude 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. Get this delivered to your inbox, and more info about our products and services. Former U.S. President Donald Trump had approved a permit for the line in 2017, but it continued to face legal challenges that hampered construction. 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. That means the nation's refineries are producing more gasoline, diesel fuel and other oil products than the country needs, and exporting the rest. For the . TC Energy's 1,210-mile Keystone XL pipeline would have had a capacity of 830,000 barrels per day with crude oil originating from Hardisty, Alberta, and heading to Steele City, Nebraska, where it would then be shipped to U.S. Gulf Coast refineries. Although I do have an opinion on the matter, which I will share later, facts are facts which cannot be changed. The Keystone XL was designed to carry more than 830,000 barrels a day of crude oil, virtually all of it coming 1,210 miles from the tar sands to Steele City, Neb. The Drought In The Western U.S. Is Getting Bad. Extracting the bitumen and diluting for shipment requires energy, most of it from burning fossil fuels. The State Department estimated full-time permanent jobs to be closer to 50. First, the arguments against the project. update email soon. Al Nash/Bureau of Land Management via AP ", MRNA vaccines are being injected into our food supply., "Social Security has nothing to do with the deficit or the national debt.". Supporters say the oil is no dirtier than other forms of heavy oil the country is currently importing. (Terray Sylvester/Reuters) . 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. In a Department of Energy report evaluating Keystone XL's impacts on U.S. energy supply over the next twenty years, the agency found that it will take decades for Canada to produce enough oil to fill existing pipelines. 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." https://leadstories.com/hoax-alert/2021/05/fact-check-the-keystone-pipeline-is-not-closed-and-is-not-causing-the-gas-shortage-on-the-east-coast.html, Alexis Tereszcuk is a writer and fact checker at Lead Stories and. There have been calls to revive the Keystone XL pipeline. Market data provided by ICE Data Services. 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. News provided by The Associated Press. This group will consider the impact to endangered species in accordance with the Endangered Species Act. There are already about 2.3 million miles of pipeline across the US, carrying oil and natural gas. 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. 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. The Keystone XL pipeline would have been a new way for one Canadian energy firm to ship oil to the United States. Not only did the revocation of the Keystone XL pipeline project permit reportedly hurt the Canadian and Alberta economies, but it cut thousands of jobs for Canadians and Americans. 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. Lets look at the argument for and against the project. The Keystone Pipeline is a series of metal pipes that run from Alberta Canada to Patoka, Illinois and Port Arthur, Texas. The pipeline would also accept U.S. crude from the Bakken oil fields in Montana and North Dakota. 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. To review: Keystone XL, a project of the TransCanada Corporation (now TC Energy), was slated to carry oil from Alberta's tar sands across the country to refineries on the Gulf of Mexico. 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