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. Find out whats happened to the oil industryand where its headed next. 2022 CBS Interactive Inc. All Rights Reserved. The developer has now canceled the controversial project. Legal challenges continued against it, further stalling the project. Since these are already in service, whats the problem with this project? Learn more about Mailchimp's privacy practices here. ", U.S. Rep. Ilhan Omar is "facing 40 years in prison and deportation after seven new crimes uncovered. The total capacity of both is expected to be about 1.3 million bpd. 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 pipeline was expected to stretch from Alberta to Nebraska, allowing 830,000 barrels of oil sands crude to be carried into the U.S. a day, reports Reuters. Powered and implemented by FactSet. Senator Joe Pittman said the U.S. imports around 800,000 barrels of oil per day from Russia, reports CBS Pittsburgh News. 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. That makes oil sands crude more carbon-intensive and worse for the climate than conventional petroleum. : 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 pipeline would have required years of construction and likely faced legal challenges, so it couldnt have solved todays demand needs. Kristi Noem went a step further than Crenshaw, writing in a February 24op-edfor Fox News that in halting the Keystone XL pipeline Mr. Biden was "signaling to the world that American energy independence is no longer a priority.". 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. Russia is the world's second-largest exporter of crude oil, according to the U.S. Energy Information Administration. Related: If Wall Street's right, Obama may nix Keystone. 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. The Keystone XL pipeline was expected to act as an extension to this larger system that would run 1,210 miles from Hardisty, Alberta to Nebraska.. , according to the U.S. Energy Information Administration. BNSF remains a money machine at . That number is an estimate, and the claim lacks context about the longevity of Keystone jobs. Oil sands crude emits about 17% more greenhouse gases than traditional oil, according to the U.S. State Department, largely due to the heat it takes to separate the oil from the sand. Examples of posts making this claim can be found here , here and here . 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. In fact, the Keystone Mainline is 1,353 miles of 30 pipe which extends from Hardisty, Alberta to refineries in Wood River and Peoria, Illinois. The. A depot used to store pipes for TransCanada Corp.'s planned Keystone XL oil pipeline in Gascoyne, N.D., on Jan. 25, 2017. However, lately we have witnessed a well crafted and articulate argument, laced with just enough facts to confuse and cloud the truth and convince people that the moon really is made of green cheese. Unlike oil, renewable energy relies far less on fixed and limited natural resources. At the time Mr. Biden halted its construction, the $8 billion expansion was only about8% complete, according to Reuters. President Obama is expected to either approve or deny the pipeline by the end of this year. This pipeline was proposed in 2008 and has been referred to as either the Keystone XL pipeline or KXL. an award-winning journalist who spent over a decade breaking hard news and celebrity scoop with RadarOnline and Us Weekly. 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. Cellphone data used to arrest the Idaho quadruple-murder suspect proves that criticism of the 2000 Mules movies use of cell data is unfounded. The Drought In The Western U.S. Is Getting Bad. And right now in Minnesota there are protests around Enbridge's Line 3 project that's under construction. The Keystone XL pipeline was expected to carry 830,000 barrels per day of Alberta oil sands crude to Nebraska. Thanks for signing up. The Keystone XL pipeline would then connect to existing pipelines and transport oil to refineries along the Gulf Coast. Pipe intended for use in. The Keystone XL pipeline is an international project years in the making. 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 have passed through Nebraska, and for years, a coalition of Indigenous tribes, ranchers and local environmentalists demonstrated, lobbied and sued to halt the pipeline's construction. It would take six to 10 years for oil from a new lease to hit the global market, Kieve said. I believe we should let the project continue, which is exactly what I expect will happen in early 2015. All Rights Reserved. Why now? In 2008, TC Energy, then known as TransCanada, announced plans to build a pipeline that would carry 830,000 barrels of crude oil daily from Hardisty, Alberta, through the Great Plains to refineries on the Texas Gulf Coast. Although I do have an opinion on the matter, which I will share later, facts are facts which cannot be changed. 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. / CBS News. (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. ", Earthquake in Turkey and Syria is "a systemic attack against Kurdish people.". 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 summary, Keystone is good for the economy, good for U.S. energy independence, and good for the American consumer. BILLINGS, Mont. Energy from solar panels, wind turbines and other low-carbon technologies also tends to get cheaper the more widely it is used, they said. 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. "It's unfortunate that political obstructionism led to the termination of the Keystone XL pipeline. The other major candidate for the seat is Democrat Patrick Schmidt, a former U.S. Navy intelligence officer. Learn more about Mailchimp's privacy practices here. Opponents suggest it will harm the environment. But this post could leave the wrong impression without full context. 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 Keystone Pipeline in North Dakota was shut down after it leaked oil. TC Energy owns the existing Keystone oil pipeline, which runs from Alberta to the U.S. oil storage hub in Cushing, Oklahoma, and to the U.S. Gulf, along with a power and storage business. Canada-based TC Energy . However, existing Canadian oil pipelines all go to the Midwest, where the only buyer for their crude is the United States. It requires more processing than most oil, so producing it emits more greenhouse gases. It did not specify exactly how many jobs would be lost. Three lawmakers from Pennsylvania, including Pittman, are hoping Biden will allow TC Energy to continue with Keystone XL pipeline construction so that the U.S. can soon become energy independent., According to Pittman, The Keystone pipeline is critical to our national energy infrastructure, but its also very symbolic. The Keystone XL pipeline was. "It's that as we produce more and more of these clean energy technologiesthey get more affordable for everyone. The Reuters Fact Check team previously debunked social media claims surrounding the Keystone XL Pipeline, here . Keystone XL would carry crude derived from Alberta's oil sands. update email soon. Without support from the U.S. government, its effectively halted. How? I ask, why not? Canadians, including Indigenous peoples, have benefited economically from the oil sands mining. The 875-mile pipeline would carry a heavy crude oil mixture from . 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. The policies have helped restrict U.S. oil production, and the fallout from the Keystone Pipeline remains lost on the administration. The vote was one shy of passage at 59-41. The project has become a matter of intense debate in the United States. Spotted something? All rights reserved. This portion would transport oil over 435 miles through 36" pipe running from Cushing, Oklahoma to Port. In a Wednesday statement, the Canadian developer TC Energy said that after reviewing its options with. Climate Change Is Making It Worse, . Official govt docs expose Michelle Obamas 14 year history as a man., "Woody Harrelsons 60 seconds in the middle of his monologue was cut out of the edits released after the show., BREAKING Trump preps Marines to stop presidential coup.. 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 current Keystone Pipeline transports approximately 700,000 barrels of oil a day from Canada to Texas. The Keystone pipeline leaked an estimated 9,120 barrels of oil, or roughly 383,000 gallons, in North Dakota in late October . Buffett does stand to profit from the cancelation of the Keystone pipeline and perhaps a great deal. A Division of NBCUniversal. 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.". It will also create up to 43,000 jobs, the majority of which will be permanent. David Kieve, president of advocacy group Environmental Defense Fund Action, also told CBS News that building out the Keystone pipeline would not have softened the impact the Ukraine crisis is having on fuel prices. Gregory Nemet, professor of public affairs at the University of Wisconsin-Madison's Wisconsin Energy Institute, pointed out that the cost of oil has steadily increased since last fall, when it was around $70 a barrel, to more than $130 last week before settling back at around $100 a barrel on Tuesday. This story begins in Hardisty, Alberta, Canada with a company called TransCanada. 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. By 2012 that number jumped to 3.2 million barrels. 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. Heres point number one: The Keystone XL Pipeline is nothing new. Market data provided by ICE Data Services. In the weeks following U.S. President Joe Biden's decision to scrap the Keystone XL oil pipeline, posts on social media have claimed that the project "was in Phase 4 & just about completed". It is not shut down. Since the State Department defines "job" as "one position that is filled for 1 year," that would equate to approximately 3,900 jobs over a two-year period. A Warner Bros. "For 13 years, an international movement of frontline communities in the U.S. and Canada, Indigenous leaders, and environmentalists fought back against this terrible proposed project at every turn," Sierra Club Executive Director Michael Brune said in a statement. 1800 I Street NW What are the arguments for and against the project? Al Nash/Bureau of Land Management via AP The 1,200-mile Keystone XL Pipeline was designed to mirror that,. And, we also have the technology to assure that the environment will be protected. The Keystone XL pipeline project began some 12 years ago and has yet to reach the final stages of construction. It's a global market," Nemet said. At the time Mr. Biden. In the United States, the existing Keystone Pipeline System runs from the North Dakota border south through South Dakota to Steele City, Nebraska, where it splits one arm running east through Missouri for deliveries into Wood River and Patoka, Ill., with the other running south through Oklahoma to Cushing and onward to Port Arthur and Houston, Texas.. 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 . By 2011, Keystone XL had upended that quiet bureaucratic process. As mentioned, the arguments against the project center on the environment. The Obama-era State Department had denied TC Energys request for a permit in 2015. On March 7, Fox News' Peter Doocy asked White House Press Secretary Jen Psaki whether Mr. Biden would "ever undo his executive order that stopped the construction of the Keystone XL" in an effort to lower gas prices. 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. On his first day as the 46th President of the United States, Joe Biden signed an executive order revoking permission for the construction of the Keystone XL oil pipeline, an $8 billion, a 1,200-mile-long project that was supposed to carry up to 830,000 barrels of oil per day. Could the Keystone XL pipeline help lower U.S. gas prices? There is also an argument on the impact it may have on the long-term use of land and the harm it may cause to agriculture and cattle grazing. See who is sharing it (it might even be your friends) and leave the link in the comments. The energy boom in both the United States and Canada is already reducing imports. "A lot more transportation and people flying around, people driving, more demand for oil," he said. Discovery Company. In the ad, which began running on Facebook and Instagram on Feb. 25, the day after the invasion, LaTurner stated: "President Biden canceled the Keystone XL Pipeline on his first day in office. The pipes pass through North Dakota, South Dakota, Nebraska, Kansas, Missouri, and Oklahoma. No, that's not true. Although the new Congress will likely pass a bill to allow the pipeline to proceed, I expect the President will veto it. A Facebook post says that Bidens executive order revoking the Keystone XL pipeline "is destroying 11,000 jobs.". As of 2014 . Extracting the bitumen and diluting for shipment requires energy, most of it from burning fossil fuels. Sixteen years later, three phases of the Keystone project are complete. Canada is our largest trading partner and is important to U.S. job creation. Fish & Wildlife Service. "And supply doesn't always quickly respond to that kind of shock in demand.". The announcement ends a more than decade-long battle that came to signify the debate over whether fossil fuels should be left in the ground to address climate change. Li Cohen is a social media producer and trending content writer for CBS News. "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. US President Joe Biden has cancelled permits for the controversial Keystone XL pipeline on his first day in office. 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. 33701 ", "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. A damaged section of the Keystone Pipeline was reopened Thursday after weeks of repairs and clean up following a leak of 600,000 gallons of crude oil into a Kansas creek, officials said. 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). One of them sparked outrage on Facebook over its effect on American jobs. Says he has been to Afghanistan, Iraq and those areas twice as president. was to carry about 830,000 barrels a day of . But they also grapple with the destruction of Alberta's forests and health effects that some researchers say could be linked to the strip mining. "Whenever there is political instability in places that produce a lot of oil, markets react," Nemet said. These typically exist in community groups and environmental organizations. ", "I can see why people make that connection," Nemet said. It carries crude oil to refineries and terminals. Photo of electric charging station powered by diesel generator is emblematic of the electric vehicle movement. People may receive compensation for some links to products and services on this website. The project became a touchstone issue for climate activists and Indigenous people in Canada and the U.S, including those along the pipeline's route. "Unusual cancers are exploding right into stage 4" and those cancer cells have the spike protein. ", Feb. 26, 2022, Alberta.ca, "Pipeline Project - Keystone XL," accessed Feb. 28, 2022. 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. By clicking below to subscribe, you acknowledge that your information will be transferred to Mailchimp for processing. Lead Stories is a U.S. based fact checking website that is always looking for the latest false, misleading, deceptive or The Keystone Pipeline moves crude oil from tar sands refineries in Canada and the Midwest to refineries in Texas. 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'' and those areas twice as president that connection, '' accessed Feb. 28 2022. And celebrity scoop with RadarOnline and Us Weekly six to 10 years for oil from a new lease to the. 435 miles through 36 & quot ; pipe running from Cushing, Oklahoma to.... Energys request for a permit in 2015 former U.S. Navy intelligence officer sparked on! And trending content writer for CBS News first day in office Dakota was shut down after it oil.