UPDATE: Obama Administration Rejects Keystone XL

The U.S. State Department on Wednesday formally recommended that President Obama deny granting a presidential permit for TransCanada's proposed Keystone XL oil pipeline which would carry diluted bitumen from Canada's oil sands to U.S. Gulf Coast refiners. Moreover, the agency advised Obama that the project is not in the national interest.

"As the State Department made clear last month, the rushed and arbitrary deadline insisted on by Congressional Republicans prevented a full assessment of the pipeline's impact, especially the health and safety of the American people, as well as our environment," Obama said in a prepared statement.

The State Department, which has jurisdiction over the project because the pipeline would cross an international border, contends that it had insufficient time to collect enough information to determine if the project in its current state is in the national interest.

In 2008, the State Department launched a rigorous review of TransCanada's permit application for the proposed $7 billion project. It issued its environmental review on August 26, 2011. Before moving forward, the project still needed to obtain a decision by President Obama confirming that it is in the national interest.

Although the legislation containing the Keystone provision passed a Democrat-controlled Senate and GOP-controlled House, Obama asserted that "Republicans in Congress forced this decision." The President also noted, however, that the decision "is not a judgment on the merits of the pipeline."

Following the State Department's announcement Wednesday, TransCanada said that it would re-apply for a Presidential Permit.

For the complete story on the Obama Administration's decision, please click here to read the article on DownstreamToday.com

Matthew V. Veazey has written about the oil and gas industry since 2000. Email Matthew at mveazey@rigzone.com


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Andy G. | Jan. 19, 2012
Well there goes some more possible jobs across the board.

Oilblur | Jan. 19, 2012
Obama is doing nothing but making the US Oil and Gas industry his political football. Risking our national security and economy just for his political gains is dispicable. For the future of these great United States of America, Obama MUST be a one term President. Our future begs us to be energy independent and take a measured approach to alternate energy sources. Obamas Greenies will not be passified until the US oil and gas industry is dead with or without plausable alterantives.

Rich S | Jan. 19, 2012
I hope this is OB's final nail in his last year of his only term!!! What a slap in the face for thousands of people who so badly need these jobs..this administration is so out of touch with America it simply cannot continue. I've been in this, the oil business, for over 30 years and this current administration has hands down been the most destructive I can remember I hope all of the voters remember this and tell him to take a seat and let someone else run this country before he totally destroys. We need this shoved down his throat in the fall..!!!!!!!

Deepwater805 | Jan. 19, 2012
It seems strange that Obama would kill a pipeline that would help reduce Americas need for oil importation at a time that we are ramping up to fight yet another war in the Mideast in order to maintain the flow of oil through the Persian Gulf. As a father with a kid in uniform I'm concerned that this politically motivated, yet Ill advised rejection XL pipeline has just put my son more at risk.

Ryan J | Jan. 19, 2012
Has anyone else read the book "Atlas Shrugged" by Ayn Rand? Obama would constitute a looter to the extreme. There are no attempts to mask his moves toward a socialist "progressive" government of the collective. Ron Paul 2012! to restore free market capitalism and get government out of the economy!

Ron Heffernan | Jan. 19, 2012
"Pass this jobs bill NOW" "You lie". Thanks Joe Wilson for the heads up on this turkey !

Perry Rederburg | Jan. 18, 2012
Maybe Canada should refine it themselves, it would be a great boost to the economy and it will sell to the highest bidder.

Rick Morgan | Jan. 18, 2012
ODUMMYs at it again. smoke, mirrors, and a magic hat full of sunbeams, rainbow stew and sweet bubble-up. He will trade the approval for large contributions or votes. Thomas Jones: Canadian tar sands bitumen isn't any environmentally dirtier that most of the oil imported into the US for refining. What makes it dirty is that it is co-mingled with dirt, hence the name tar sands. Learn a little technology, please?

Frank H. Bieri | Jan. 18, 2012
This is more proof positive that the OBAMA administration is the Number One JOB killer of all Time. He needs to be a 1-Term President

Rob T | Jan. 18, 2012
Obama doesn't know what hes doing and hes trying to get rid of the declaration of independence... bill of rights... go figure. election time we need new strategies not new way of life

Dr Donothing | Jan. 18, 2012
You didn't really expect Obama to make a controversial decision during an election year. Since every decision is now controversial I thoroughly expect nothing to happen in D.C. this year. I like the hint about making a new submission on the project. That means please resubmit after the election and the project will likely be miraculously approved.

Ritchy Rich | Jan. 18, 2012
Americans in November MUST tell Obama NO SECOND TERM. His energy and foreign policy is quickly putting the United States in a dangerous position in the world. Just voting "present" by Obama and failing to lead on the world stage has certainly weakened our country.

THOMAS M JONES | Jan. 18, 2012
Good Start! Now step back. why isn't Canada refining in their own country? They just reneged on the KYOTO Treaty! So the best interest on the U.S. is to require this oil product to be cleaned up and then used to fill all U.S. Strategic Oil Reseve sites for the first time ever. This would assure a substantial reserve for the nation. After this it can be refined and sold to the Gulf Coast refiners. This delay will also give refiners an opportunity to measure the pollutants from this type of oil source and make whatever adjustments that need be to the refining process.

J Beigh | Jan. 18, 2012
Just in time for the election!! Pass it off to Congress, wash your hands of it, let congress deal with the issue. Anyone who seriously believes that the XL will not ultimately be approved and built is naive-- just as naive as those who think the oil is destined for US-only markets and the exclusive domain of the US Taxpayers and Consumers (we are no longer citizens). petrodollars, baby-- yeah baby!


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