With Obama’s Support, TransCanada To Build Southern Portion Of Keystone XL Pipeline |
TransCanada Corp. has announced plans to move forward with the construction of a $2.3 billion segment of the Keystone XL tar sands pipeline running from an oil hub in Cushing, Oklahoma to refineries in Texas. The U.S. Department of State rejected the permit for the northern portion of the pipeline in January, and the firm said it will reapply for a second permit. On the heels of this announcement, the White House stated, “we support the company’s interest in proceeding with this project, which will help address the bottleneck of oil in Cushing that has resulted in large part from increased domestic oil production, currently at an eight year high.” Even TransCanada has admitted that building the pipeline would increase the price of oil in the Midwest, costing the U.S. market billions more for crude oil each year.
— Fatima Najiy
This decision was prefigured by President Obama’s January statement rejecting the Keystone XL permit, in which he said that “we will continue to look for new ways to partner with the oil and gas industry to increase our energy security –including the potential development of an oil pipeline from Cushing, Oklahoma to the Gulf of Mexico.”