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. 海角吃瓜网淚t海角吃瓜网檚 certainly going to be about more than just building one pipeline,海角吃瓜网� he said.
TransCanada海角吃瓜网檚 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海角吃瓜网檚 interests, the President said to applause, which means it must not significantly 海角吃瓜网渆xacerbate the problem of carbon pollution.海角吃瓜网�
海角吃瓜网淭he net effects of the pipeline海角吃瓜网檚 impact on our climate will be absolutely critical to determining whether this project is allowed to go forward. It海角吃瓜网檚 relevant,海角吃瓜网� he added.
Canadian relations
The long-delayed project carrying oil from Alberta海角吃瓜网檚 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海角吃瓜网檚 Prime Minister Stephen Harper has warned that its rejection could tarnish relations with the US.
Canada has the world海角吃瓜网檚 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 海角吃瓜网渢here would be no significant impacts to most resources along the proposed Project route.海角吃瓜网�
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 海角吃瓜网� including rail, trucks and barges 海角吃瓜网� 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海角吃瓜网檚 speech, Canada海角吃瓜网檚 Natural Resources Minister said he海角吃瓜网檚 confident the oil pipeline will be approved because it meets President Obama海角吃瓜网檚 requirement that it not lead to a significant increase in greenhouse gas emissions.
Minister Joe Oliver pointed to 海角吃瓜网淥bama海角吃瓜网檚 very own State Department海角吃瓜网� which he said concluded in a report this year 海角吃瓜网渢hat there would be no increase in greenhouse gas emissions.海角吃瓜网�
海角吃瓜网淭his pipeline has been the most studied pipeline in the history of the world,海角吃瓜网� Oliver added.听
Similar to most discussion related to the Keystone XL pipeline, reaction to Obama海角吃瓜网檚 comments was sharply divided. Environmental groups have interpreted the speech as indicative of the pipeline海角吃瓜网檚 impending rejection, where as energy industry representatives, including TransCanada, said they believe the pipeline will meet Obama海角吃瓜网檚 criteria.
Renowned climate activist Bill McKibben said on Twitter, 海角吃瓜网淪o pleased that Barack Obama understands that the KXL fight is about climate.海角吃瓜网� Al Gore, on his blog, wrote that 海角吃瓜网淭his was a terrific and historic speech, by far the best address on climate by any president ever.海角吃瓜网�
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 海角吃瓜网榚xacerbate海角吃瓜网�, which leaves a lot of wiggle room. 海角吃瓜网淚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海角吃瓜网檚 not what the State Department found [in its Draft SEIS],海角吃瓜网� he notes.
TransCanada, the Calgary-based company that has proposed the pipeline, said in a statement it was pleased with Obama海角吃瓜网檚 comments setting out criteria for pipeline approval.
海角吃瓜网淭he almost five-year review of the project has already repeatedly found that these criteria are satisfied,海角吃瓜网� said Russ Girling, TransCanada海角吃瓜网檚 President and Chief Executive.
Political decision
After considering Obama海角吃瓜网檚 speech, Greg Stringham, the Canadian Association of Petroleum Producers海角吃瓜网� Vice-President of Oilsands and Markets, said he believes it is another step toward the oil pipeline海角吃瓜网檚 ultimate approval when considered in conjunction with the State Department draft environmental review.
海角吃瓜网淚t海角吃瓜网檚 still a political decision so we海角吃瓜网檙e looking for certainty and we海角吃瓜网檙e hoping it will be sooner rather than later,海角吃瓜网� Stringham said. 海角吃瓜网淏ut as we look at the process through this, as the State Department is working on their final environmental impact assessment, we don海角吃瓜网檛 see anything that would have changed the conclusions they came up with in March.海角吃瓜网�
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