The company announced that it hopes to restore service by the end of the week. Some also carry diluted bitumen, the heavy crude from the tar sands that has a much higher. I ask, why not? 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. The. But the U.S. imported an average of 209,000 barrels of crude oil per day from Russia in 2021, according to theAmerican Fuel and Petrochemical Manufacturers, as well as 500,000 barrels per day of other petroleum products. Keystone pipeline shut after oil release into Kansas creek On Wednesday evening oil started spilling into a creek near the pipeline in Washington County, Kan., about 240 kilometres. 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 question is, If the thousands of miles of existing pipeline has been in use and the environment seems to be unaffected, why should Keystone XL suddenly be the project that ruins the planet? The US Supreme Court denied a request from the Trump administration to allow construction of the Keystone XL pipeline, upholding a lower court's ruling blocking a permit needed for the project . Since these are already in service, whats the problem with this project? 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. The Keystone XL Pipeline consists of two parts. Dec. 11, 2022, 8:21 PM PST. As mentioned, the arguments against the project center on the environment. 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. The project has become a matter of intense debate in the United States. This is a blow to U.S. energy security and a blow to the thousands of good-paying union jobs this project would have supported," said Robin Rorick, American Petroleum Institute's vice president of midstream and industry operations. South Dakota Gov. The pipeline, which had severe environmental and human rights implications, has been on a long road towards failure. 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. Its shares closed largely flat on the Toronto Stock Exchange. In 2008 the country exported 1.8 million barrels a day of refined products, according to EIA. This dental device was sold to fix patients' jaws. By clicking below to subscribe, you acknowledge that your information will be transferred to Mailchimp for processing. Part of TransCanada's Keystone XL pipeline under construction in Atoka, Oklahoma. Keystone XL would carry crude derived from Alberta's oil sands. Temporary jobs are still jobs. 2022 CBS Interactive Inc. All Rights Reserved. "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. The 875-mile pipeline would carry a heavy crude oil mixture from . 33701 First, it can be upgraded into syncrude which is a light crude. Had construction continued, the pipeline would have entered service in 2023. (n.d.) The transport capacity of the Keystone XL pipeline, which Biden canceled, would have been about 830,000 barrels per day more than the amount of oil being imported to the United States from Russia. The ad draws a misleading relationship between Russian imports and the Keystone pipeline project. Copyright 2023 Market Realist. Updated on: March 17, 2022 / 11:57 AM So we wanted to take a closer look. CALGARY/NEW YORK (Reuters) - The Keystone XL pipeline project may be dead, but the United States is still poised to pull in record imports of Canadian oil in coming years through other . The policies have helped restrict U.S. oil production, and the fallout from the Keystone Pipeline remains lost on the administration. The GAO study showed that the U.S. stretches of TC Energy's 2,700-mile Keystone pipeline had a failure rate in line with the national average during its first six years of service, with most of . In 1991, a pipeline rupture spilled 1.7 million gallons of crude oil into the Prairie River near Grand Rapids, Minn., in the largest inland U.S. oil spill. 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. (RELATED: Macron Trolls Trump, Says Biden Can Help 'Make Our Planet Great Again') If the oil ends up getting moved anyways, just via a different method, it could actually be worse . 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. The greatest, and perhaps the only argument against the pipeline, is occurring on the environmental front. 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.". Alexis crime reporting earned her spots as a contributor on the Nancy Grace show, CNN, Fox News and Entertainment Tonight, among others. 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. 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. 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. This segment has been in service since June 2010. hide caption. Former U.S. President Donald Trump had approved a permit for the line in 2017, but it continued to face legal challenges that hampered construction. It was denied. was to carry about 830,000 barrels a day of . 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. The Keystone Pipeline moves crude oil from tar sands refineries in Canada and the Midwest to refineries in Texas. Thanks for signing up. In short: Most of the estimated jobs were temporary. In the report, the agency wrote that 10,400 estimated positions would be for seasonal construction work lasting four to eight-month periods. "You won't see a lot of environmental organizations jumping up and down and saying, 'Hey, this is the best thing ever,'" Kieve said. 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. oil sands) per day from Canada's Alberta province . Opponents of the line fought its construction for years, saying it was unnecessary and would hamper the U.S. transition to cleaner fuels. 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. "We're hopeful that the Biden administration will continue to shift this country in the right direction by opposing fossil fuel projects.". ICE Limitations. ", "When combined with additional 2021 contracts to be announced later, the total number of American union workers constructing Keystone XL in 2021 will exceed 8,000 and $900 million in gross wages," the release said. This portion would transport oil over 435 miles through 36" pipe running from Cushing, Oklahoma to Port. The gas shortage on the East Coast of the United States in May 2021 was triggered by a cyberattack that caused the shutdown of the Colonial Pipeline, which runs from Houston to New Jersey and supplies 45% of the gasoline to the East Coast. Earlier this month, Representative Edward Markey asked TransCanada's President Alex Pourbaix to support a condition that would require the oil on Keystone XL to be used in the United States. People may receive compensation for some links to products and services on this website. The other major candidate for the seat is Democrat Patrick Schmidt, a former U.S. Navy intelligence officer. This group is responsible to issue permits for sections of the project that require placement of dredge and fill materials in waters of the U.S. including wetlands or for pipeline that crosses navigable waters. The Keystone XL pipeline project began some 12 years ago and has yet to reach the final stages of construction. Its symbolic of whether or not were willing to embrace the natural resources that we have in our country. Reuters spoke via email with James Stevenson, a spokesperson for the Canada Energy Regulator, which oversees the Canadian portion of the Keystone XL Pipeline (here). That initial jump in the cost of crude was driven by the ongoing economic recovery, which boosted demand by consumers and businesses that had been dampened by the COVID-19 pandemic. The agency will release a total of 60 million barrels of crude to help ease some of the supply disruptions caused by the war Ukraine. 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. Unlike oil, renewable energy relies far less on fixed and limited natural resources. BNSF remains a money machine at . It opened: When you can't find gas, remember who executively ordered the Keystone Pipeline to close. Says he has been to Afghanistan, Iraq and those areas twice as president. 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 third group is the Bureau of Land Management which grants temporary permits for portions of the project that would encroach on federal lands. President Biden's energy agenda has strengthened Putin at the expense of hard-working Kansans.". Instead, they're a tarry fossil fuel called bitumen that's mixed in with clay, sand, rock and together, can be hard as a hockey puck. "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. Copyright 2023 Politifact. The Obama-era State Department had denied TC Energys request for a permit in 2015. All rights reserved. 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. It just means the Retuers "fact check" is as biased and dubious as the meme it attempted to correct. 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. Last year, Canada was the largest exporter of crude oil and petroleum products to the U.S., outstripping oil-producing nations in the Persian Gulf, according to the U.S. Energy Information Administration. Its proposed route in Nebraska cut through the Ogallala Aquifer, the groundwater source for millions of Plains states residents. Learn more about Mailchimp's privacy practices here. The press release also stated that the remaining $6.9 billion needed for construction was expected to be largely made in 2021 and 2022 and funded through the combination of a US$4.2 billion project level credit facility to be fully guaranteed by the Government of Alberta and a US$2.7 billion investment by TC Energy.. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. Keystone XL, an expansion of an existing North American pipeline, would have carried 830,000 barrels of crude oil from Alberta, Canada, to Nebraska daily at its peak. (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. The pipeline would have required years of construction and likely faced legal challenges, so it couldnt have solved todays demand needs. 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. Keystone XL is a tar sands pipeline to export oil out of the United States December 20, 2011 Anthony Swift One of the most important facts that is missing in the national debate surrounding. Rather, experts say gas prices are high due to other factors such as the global spike in the cost of crude oil and increased demand after pandemic lockdowns ended. A revised permit was resubmitted in May 2012 which contained an alternate route. The Keystone XL pipeline would have been able to carry up to 830,000 barrels of oil every day, the figure used in LaTurners ad. The fourth phase, dubbed "XL" for . As the Entertainment Editor, she investigated Hollywood stories and conducted interviews with A-list celebrities and reality stars. 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. Canadians, including Indigenous peoples, have benefited economically from the oil sands mining. But the pipeline would have required years of construction and likely faced legal challenges, so it couldnt have solved todays demand needs. 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. This caused the fuel shortages on the East Coast of the United States. 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. Given that the U.S. is siding with Ukraine, this could put a damper on the countrys ability to continue its dealings with Russia. The punishing economic sanctions imposed by the West on Russia for its invasion ofUkraine have roiled global energy markets, with a U.S. ban on Russian oil imports further pushing up gas prices for Americans. We reached out to the White House for a comment, but we havent heard back. A Warner Bros. But the Trump administration revived the pipeline in early 2017. I cover the intersection of economics, politics and personal finance. 2023 CNBC LLC. Ramped up domestic oil production and new supply routes have lessened the U.S.'s need for the hundreds of thousands of barrels . The Keystone pipeline spill in a creek running through rural pastureland in Washington County, Kansas, about 150 miles northwest of Kansas City, also was the biggest in the system's history, according to U.S. Department of Transportation data. A Division of NBCUniversal. This project would have produced 830,000 barrels of oil per day, more than enough to offset what we import from Russia.". 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. Keystone XL, a US$8-billion oil pipeline that was set to flow from Alberta to Nebraska, is officially scrapped, the project's owner, TC Energy, confirmed on Wednesday. After multiple delays, President Barack Obama rejected the permit to build Keystone XL in November 2015. But its not as simple as substituting one source for the other. https://leadstories.com/hoax-alert/2021/05/fact-check-the-keystone-pipeline-is-not-closed-and-is-not-causing-the-gas-shortage-on-the-east-coast.html, Alexis Tereszcuk is a writer and fact checker at Lead Stories and. TransCanada is a Canadian company that builds and operates energy infrastructure across the North American continent. 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. At the heart of the protests was a knot of environmental concerns from the local to the global. 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. The fact that Canada has excess pipeline capacity is well known. It's a global market," Nemet said. Alexis crime reporting earned her spots as a contributor on the Nancy Grace show, CNN, Fox News and Entertainment Tonight, among others. First, the arguments against the project. The Keystone Pipeline: A Never-ending Saga. Though the Keystone Pipeline XL had secured full funding through 2022, only 8% of it had been built by the time President Biden revoked the projects permit in the United States. "By revoking the Keystone pipeline permit, Biden is destroying 11,000 jobs and roughly $2 billion in wages," the post says. "It's unfortunate that political obstructionism led to the termination of the Keystone XL pipeline. One of them sparked outrage on Facebook over its effect on American jobs. Lets look at the argument for and against the project. Even if the Biden administration were to immediately offer new oil leases to drillers, it wouldn't help with the costs Americans are bearing today. 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. 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. One of the most important facts that is missing in the national debate surrounding the proposed Keystone XL tar sands pipeline is this Keystone XL will not bring any more oil into the United State for decades to come. We need your help. The Keystone XL pipeline project began some 12 years ago and has yet to reach the final stages of construction. Pipeline opponents are invigorated by the Keystone XL decision and hope for more wins. We reached out to the user who published the post for their evidence, but we didnt hear back. Simply stated, Keystone XL is a way to get Canadian oil out of the United States, not into it. . This group will consider the impact to endangered species in accordance with the Endangered Species Act. Legal Statement. ", Earthquake in Turkey and Syria is "a systemic attack against Kurdish people.". 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. Got a confidential news tip? From Canada's perspective, the problem with existing pipelines is they all end in the U.S. Midwest and only allow one buyer - the United States. Note: if reading this fact check makes you want to contact us to complain about bias, please check out our Red feed first. To access the bitumen, Alberta's boreal forests are cut away in enormous strip mines. "Today, we can say yet again, that our efforts were a resounding success.". Nor would producers be obligated to sell that entire amount to the U.S. Facebook, Jake LaTurner ad, Feb. 24-Feb. 25, 2022, Email, Mike Howard, communications director, Rep. Jake LaTurner, Feb. 25, 2022, PolitiFact, "U.S. is importing large amount of Russian oil, but Facebook post misstates Keystone XL role," Aug. 23, 2021, U.S. Energy Administration, "U.S. Imports by Country of Origin," accessed Feb. 25, 2022, Lead Stories, "Fact Check: U.S. Imports About 10% Of Its Oil From Russia, But Did NOT Stop Domestic Oil Production," Feb. 24, 2022, C-Net, "Gas Price Spike: How High Will Costs Soar After Invasion of Ukraine? As of 2014 . The purpose of the pipeline was to transport oil from Canada that is currently being transported some other way. National Association of Manufacturers CEO on Biden's canceling of the Keystone XL pipeline. ", stated on February 8, 2023 in a blog post. If only the halt of that project was the sole source of surging energy costs at home and abroad.. A southern leg from Cushing,. 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 pipeline would divert large volumes of Canadian oil from the Midwest to the Gulf Coast, where it would be available for the first time to buyers on the world market. COVID-19 vaccines "provide zero benefit relative to risk for the young and healthy.". The post was flagged as part of Facebooks efforts to combat false news and misinformation on its News Feed. The Keystone XL may never move any oil, but its impact will still linger in the form of the pipes, worker camps, and other assets stranded along its 1,200-mile path. / CBS News. By contrast, Mr. Biden's decision with the International Energy Agency to release 30 million barrels of oil from the nation's Strategic Petroleum Reserve puts downward pressure on gas prices in the short-term, Kieve said. "And so we've got 8 billion people that are consuming oil and many countries that are producing it, and it all goes into one market.". First published on March 15, 2022 / 3:12 PM. Environmentalists opposed the pipeline in part because of the oil it would carry oil sands crude from Alberta. The Keystone Pipeline already exists. On his first day in office, President Joe Biden signed an executive order revoking the permit for the Keystone XL pipeline, halting its construction in the U.S. TC Energy estimated in October that the pipeline would employ 11,000 Americans in 2021, generating more than $1.6 billion in wages. Opponents suggest it will harm the environment. Although the project was stopped before it could even reach a quarter of completion, the Keystone Pipeline System is fully functional today. Since it first went into operation in 2010, TC Energy's original Keystone Pipeline System has leaked more than a dozen times; one incident in North Dakota sent a 60-foot, 21,000-gallon geyser. TORONTO (AP) Construction on the long disputed Keystone XL oil pipeline halted Wednesday as incoming U.S. President Joe Biden revoked its permit on his first day in office. Critics hate it because they fear it will accelerate "dirty" oil production from Canada's oil sands region in Alberta. In this article, I will dispel the myths and rumors and discuss only the facts. Finally, the pipeline would expand the transportation of oil sands from the Midwest to the Gulf Coast. And right now in Minnesota there are protests around Enbridge's Line 3 project that's under construction. Climate Change Is Making It Worse, . A storage yard in Montana contains pipe that was to be used in the construction of the Keystone XL oil pipeline. update email soon. Lead Stories is a U.S. based fact checking website that is always looking for the latest false, misleading, deceptive or But critics claim the oil Keystone carries will simply be exported to other parts of the world. Canada is our largest trading partner and is important to U.S. job creation. The pipeline would span 875 miles. To sweeten the deal, many of the refineries on the Gulf Coast happen to be located in foreign trade zones, where they can export Canadian oil to the world market without paying U.S. taxes. The Keystone XL pipeline's developer has halted all construction on the project months after its permit was revoked by the Biden administration. President Obama is expected to either approve or deny the pipeline by the end of this year. "In total, Keystone XL is expected to employ more than 11,000 Americans in 2021, creating more than $1.6 billion in gross wages.". Oil sands production is increasing in the U.S. with the majority of it in the form of heavy crude. Partly false. Yet many experts agree that moving ahead with the pipeline wouldn't have prevented U.S. gas prices from climbing to a record high. This portion would transport oil over 435 miles through 36 pipe running from Cushing, Oklahoma to Port Arthur, Texas. The 1,200-mile Keystone XL Pipeline was designed to mirror that,. One recent issue involves the passage of the Keystone XL pipeline. Extracting the bitumen and diluting for shipment requires energy, most of it from burning fossil fuels. A $9 billion oil pipeline that became a symbol of the rising political clout of climate change advocates and a flash point in U.S.-Canada relations was officially canceled on Wednesday.