President Joe Biden signed an executive order on January 20, 2021, revoking the permit for the Keystone XL, which stands for Keystone "export limited," segment of the Keystone system, which is the fourth phase of the system. When you sign up you'll become a member of NRDC's Activist Network. Its demise comes as other North American oil pipelines, including Dakota Access and Enbridge Line 3, face continued opposition from environmental groups. Although I do have an opinion on the matter, which I will share later, facts are facts which cannot be changed. It is not shut down. Our Standards: The Thomson Reuters Trust Principles. "By revoking the Keystone pipeline permit, Biden is destroying 11,000 jobs and roughly $2 billion in wages," the post says. Trump revived hopes for the project once he took office, ultimately approving it with an executive order. CNN Sans & 2016 Cable News Network. Market data provided by ICE Data Services. The oil and gas industry accounts for about 5% of Canada's economy, and nearly all of the industry's exports go to the United States. 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. Even in the future, there would be no certainty that the pipeline could produce a net increase of 800,000 barrels a day, rather than just transporting oil from Canada that is currently being transported some other way. The Reuters Fact Check team previously debunked social media claims surrounding the Keystone XL Pipeline, here . This dental device was sold to fix patients' jaws. Building the Keystone XL pipeline would have fostered the expansion of the Canadian oil sands industry by increasing access to U.S. markets and international ones through exports from the Gulf Coast. 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. 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. its plants and animals, and the natural systems on which all life depends. It's true that the 830,000 barrels a day the pipeline is slated to carry would probably replace some of the 2 million barrels a day of heavy oil currently imported to the Gulf Coast. / CBS News. An oil spill in a creek in northeastern Kansas shut down a major pipeline that carries oil from Canada to the Texas Gulf Coast, briefly causing oil prices to rise Thursday. It requires more processing than most oil, so producing it emits more greenhouse gases. This article was produced by the Reuters Fact Check team. Expanding the Keystone would have increased global oil production by less than 1%, an amount, they explained, is "almost negligible. "Stop importing from Russia, start producing more," he tweeted in early March. 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. Most of those positions would have been temporary construction jobs. "On behalf of our Ponca Nation we welcome this long overdue news and thank all who worked so tirelessly to educate and fight to prevent this from coming to fruition. : 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. If only the halt of that project was the sole source of surging energy costs at home and abroad.. Yet many experts agree that moving ahead with the pipeline wouldn't have prevented U.S. gas prices from climbing to a record high. "Today, we can say yet again, that our efforts were a resounding success.". All times are ET. But the pipeline would have required years of construction and likely faced legal challenges, so it couldnt have solved todays demand needs. "Clean energy that we harvest here at home and work to figure out a better way to store is going to power us here at home.". The deposits are not in underground reservoirs like conventional petroleum. At the time of the press release, the Government of Alberta had invested $1.1 billion in the project, largely covering the cost of construction through the end of 2020, according to TC Energy. Temporary jobs are still jobs. In a Jan. 20 statement, TC Energy said Bidens order "would directly lead to the layoff of thousands of union workers." The Keystone XL pipeline is a 1,200 mile pipeline that will safely deliver crude oil from Canada and North Dakota to the United States. In short: Most of the estimated jobs were temporary. This project would have produced 830,000 barrels of oil per day, more than enough to offset what we import from Russia. (n.d.) The Keystone XL Pipeline is a proposed 1,700 mile expansion to the current pipeline, which would branch west, impacting an additional state, Montana, and end in Cushing Oklahoma. COVID-19 vaccines "provide zero benefit relative to risk for the young and healthy.". ", People not vaccinated against COVID-19 came out the best. Why the pipeline? President Joe Biden in January 2021 revoked the permit for an add-on to the Keystone system, but the rest of the system is still running. At the time Mr. Biden halted its construction, the $8 billion expansion was only about8% complete, according to Reuters. 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. The 875-mile pipeline would carry a heavy crude oil mixture from . However, the Canadian government has put the brakes on the two pipeline proposals to export tar sands through its provinces due to the need to take more time to listen to its own public's concerns about water and safety. The project was delayed for the past 12 years due to opposition from U.S. landowners, Native American tribes and environmentalists. Simply stated, Keystone XL is a way to get Canadian oil out of the United States, not into it. The pipeline carries refined petroleum products such as gasoline, diesel, heating oil, and jet fuel from Houston, Texas, on the U.S. Gulf Coast up to Linden, New Jersey, and serves several markets along the route through various branch lines. Factset: FactSet Research Systems Inc.2019. I cover the intersection of economics, politics and personal finance. Critics hate it because they fear it will accelerate "dirty" oil production from Canada's oil sands region in Alberta. All rights reserved. The operator of the Keystone Pipeline System, which carries a form of crude oil from Canada to multiple states for refining, said over the weekend . It's. The original petition for permit was denied on January 18, 2012 due to environmental concerns. In summary, Keystone is good for the economy, good for U.S. energy independence, and good for the American consumer. In 2008 the country exported 1.8 million barrels a day of refined products, according to EIA. 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). Ive also heard opponents say that the project will not create very many high-quality or long-lasting jobs. When Biden became President of the United States, he scrapped the project and essentially put it to bed. Data is a real-time snapshot *Data is delayed at least 15 minutes. The pipeline had been projected to carry oil nearly 1,200 miles (1,900km). Learn more about Mailchimp's privacy practices here. Pipeline opponents are invigorated by the Keystone XL decision and hope for more wins. But it's also true that exports of refined products from the United States will likely continue to rise. Powered and implemented by FactSet. The Keystone Pipeline from Canada to the U.S. is not closed. Solid green shows the full length in operation and the dotted green line shows the proposed Keystone XL project that was halted in January 2021: Lead Stories has debunked other false claims about the Keystone Pipeline projects impact on gas prices here and here. The vote was one shy of passage at 59-41. None of this means Warren Buffett had anything to do with Biden's decision to spike the Keystone Pipeline. Keystone XL, an expansion of an existing North American pipeline, would have carried 830,000 barrels of crude oil from Alberta, Canada, to Nebraska dailyat its peak. Without support from the U.S. government, its effectively halted. The State Department is one of 15 departments under the executive branch of the federal government. Lets skip to the main arguments for and against and you can decide for yourself if this project is warranted or if it should be denied. On February 9, 2005, TransCanada (now TC Energy) announced plans to construct a pipeline to move 400,000 barrels per day of Canadian heavy crude oil from Hardisty, Alberta, to Illinois. First, it can be upgraded into syncrude which is a light crude. inaccurate stories, videos or images going viral on the internet. Canada doesnt have nearly enough oil to fill existing pipelines going to the United States. , according to the U.S. Energy Information Administration. Keystone XL was designed to transport crude oil from Alberta, Canada, to Steele City, Nebraska, where it would connect with TC Energy's existing facilities, which extend to the Gulf Coast. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. These posts are referring to the Keystone XL Pipeline, a project cancelled by Biden on his first day in office on Jan. 21, 2021, dealing a death blow to a long-gestating project that would have carried 830,000 barrels per day of heavy oil-sands crude from Alberta to Nebraska (here). 1800 I Street NW This segment has been in service since June 2010. Keystone XL, which was proposed in 2008 to bring oil from Canada's Western tar sands to U.S. refiners, 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. It can be processed to remove the bitumen which can be sent to refineries in two different forms. Offers may be subject to change without notice. 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. 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. 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. 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. 2022 Cable News Network. The Keystone XL pipeline was designed to carry tar sands oil from Alberta, Canada, to Nebraska, where it would have connected to the Keystone Pipeline System. It's a great day for Mother Earth," Larry Wright Jr., chairman of the Ponca Tribe of Nebraska, said in a statement. 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. The war in Ukraine also plays a role, although it was not the instigator of the increase. Unfortunately, Bidens initiative to cancel the project left many angered and without jobs. "Whenever there is political instability in places that produce a lot of oil, markets react," Nemet said. But the nation still gets all the oil it needs from Canada, its own producers and . Most stock quote data provided by BATS. Fourth is the U.S. The Keystone Pipeline System is an oil pipeline system in Canada and the United States, commissioned in 2010 and owned by TC EnergyAs of March 2020, the Government of Alberta. The Keystone XL pipeline was. 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. Senator Joe Pittman said the U.S. imports around 800,000 barrels of oil per day from Russia, reports CBS Pittsburgh News. 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. Part of TransCanada's Keystone XL pipeline under construction in Atoka, Oklahoma. 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. 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.". Why now? A southern leg from Cushing,. The 11,000 and $2 billion figures cited in the Facebook post are estimates published by the company, but most of the jobs would be temporary. The company behind the controversial Keystone XL oil pipeline said Wednesday it's officially terminating the project. A little more than a year later, on his first day in office, Biden revoked the federal permit for Keystone XL, leading to the end of a project that had been contested for more than a decade. 2022 CBS Interactive Inc. All Rights Reserved. Therefore, about 8% of the planned 1,210-mile XL extension had been built by the time President Biden revoked the permit. The Keystone XL tar sands pipeline is back in full force. Climate Change Is Making It Worse, . The State Department estimated full-time permanent jobs to be closer to 50. Because no refineries between Alabama and the mid-Atlantic produce substantial quantities of transportation fuels, the southeastern United States is supplied primarily by pipeline flows, and to a lesser degree, with marine shipments from the U.S. Gulf Coast and imports. "In total, Keystone XL is expected to employ more than 11,000 Americans in 2021, creating more than $1.6 billion in gross wages.". 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 . These groups argue that the lifecycle greenhouse gas emissions associated with the development of Canadian oil sands is harmful to the environment compared to conventional oil or renewable fuels. It would take six to 10 years for oil from a new lease to hit the global market, Kieve said. In this article, I will dispel the myths and rumors and discuss only the facts. The pipeline would have required years of construction and likely faced legal challenges, so it couldnt have solved todays demand needs. Jason Kenney, premier of the Canadian province of Alberta, is now pushing for the Biden administration to revive the Keystone XL pipeline . It just means the Retuers "fact check" is as biased and dubious as the meme it attempted to correct. Keystone XL would be Canadas first step in diversifying its energy market. The greatest, and perhaps the only argument against the pipeline, is occurring on the environmental front. 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