"Whenever there is political instability in places that produce a lot of oil, markets react," Nemet said. 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. Disclaimer. Legal Statement. In 2005, the company announced its intentions to build a pipeline to transport crude oil from the oil sands region of Alberta, Canada to the existing Keystone Pipeline in Steele City, Nebraska. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. The 1,200-mile Keystone XL Pipeline was designed to mirror that,. Since these are already in service, whats the problem with this project? The Keystone Pipeline: A Never-ending Saga. In a world of wild talk and fake news, help us stand up for the facts. The vote was one shy of passage at 59-41. In summary, Keystone is good for the economy, good for U.S. energy independence, and good for the American consumer. I cover the intersection of economics, politics and personal finance. The policies have helped restrict U.S. oil production, and the fallout from the Keystone Pipeline remains lost on the administration. 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. ", "I can see why people make that connection," Nemet said. It's a global market," Nemet said. 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. "In the month since Republicans took the House majority," they are trying to "impose a 30% tax on everything. On day one, President Biden canceled the Keystone XL Pipeline. A lot has changed since the Keystone XL project was proposed in 2005. (n.d.) "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.". To access the bitumen, Alberta's boreal forests are cut away in enormous strip mines. This group must review and issue National Pollutant Discharge Eliminations Systems permits for discharge of pollutants in state waters. Climate Change Is Making It Worse, . The project must also be in the national interest of the United States. Although I do have an opinion on the matter, which I will share later, facts are facts which cannot be changed. inaccurate stories, videos or images going viral on the internet. The Keystone XL pipeline project began some 12 years ago and has yet to reach the final stages of construction. 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. ", Feb. 26, 2022, Alberta.ca, "Pipeline Project - Keystone XL," accessed Feb. 28, 2022. 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. Although Alberta is now on . In the meantime, TC Energy's pipeline system in the northern Great Plains experienced a series of leaks of tens of thousands of gallons of oil. 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 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. As of Monday, May 10, the pipeline had not resumed operations of its main lines, although some smaller lines are operational. Some ask why should it proceed? 801 3rd St. S The Presidents veto will occur despite the strong message conveyed by voters in the most recent election and without regard to the fact that the majority of Americans support the pipeline. The company announced that it hopes to restore service by the end of the week. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. hide caption. By claiming that the project was in Phase 4 of construction, the posts seem to conflate the Keystone XL Pipeline with the larger Keystone Pipeline System. TC Energy appealed the ruling, but the Supreme Courtupheld itin July. By 2012 that number had fallen to 8.5 million barrels a day. It's generally cheaper to transport oil by pipeline than by ship, so refiners would likely opt for the Canadian crude. 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. 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. 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). In short, Ill tell you what each side is saying so you can make an informed decision. It's important to understand what's contributing to the high prices of oil in the first place. 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. 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. Therefore, about 8% of the planned 1,210-mile XL extension had been built by the time President Biden revoked the permit. It's a great day for Mother Earth," Larry Wright Jr., chairman of the Ponca Tribe of Nebraska, said in a statement. As Canada's Natural Resources Minister Joe Oliver recently said, "we export 97 percent of our energy to the U.S. and we would like to diversify that." By late 2019, the Nebraska State Supreme Court seemed to clear one of the last hurdles for Keystone XL by approving its route through the state. COVID-19 vaccines "provide zero benefit relative to risk for the young and healthy.". The petition was made to the U.S. Department of State because it would cross the U.S. border. The pipeline would have required years of construction and likely faced legal challenges, so it couldnt have solved todays demand needs. ", Earthquake in Turkey and Syria is "a systemic attack against Kurdish people.". That makes oil sands crude more carbon-intensive and worse for the climate than conventional petroleum. Al Nash/Bureau of Land Management via AP By Dennis Romero. Pipeline opponents are invigorated by the Keystone XL decision and hope for more wins. While many were under the impression that the Keystone XL pipeline was nearly built and ready to operate, it would have served as the fourth phase of the entire Keystone Pipeline System. So, it actually would have nothing do with the current supply imbalance. While the Dakota Access pipeline is moving oil out of North Dakota now, its future is uncertain because of court challenges that still haven't been resolved. 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. Copyright 2023 CBS Interactive Inc. All rights reserved. In a Wednesday statement, the Canadian developer TC Energy said that after reviewing its options with. The current Keystone Pipeline transports approximately 700,000 barrels of oil a day from Canada to Texas. 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. We rate it Half True. The Keystone Pipeline from Canada to the U.S. is not closed. an award-winning journalist who spent over a decade breaking hard news and celebrity scoop with RadarOnline and Us Weekly. The company behind the controversial Keystone XL oil pipeline said Wednesday it's officially terminating the project. LaTurners office cited reports showing the two figures. Colonial Pipeline, a 2.5-million-barrel-per-day (b/d) system of approximately 5,500 miles of pipeline, is a significant mode of shipment for transportation fuels for the East Coast, particularly for several states in the southeastern United States. Get browser notifications for breaking news, live events, and exclusive reporting. The Keystone Pipeline System is an oil pipeline system that runs between Canada and the United States. 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. For the . 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. In short: Most of the estimated jobs were temporary. Fish & Wildlife Service. The capacity of existing pipelines is about 591,000 barrels per day (bpd) and the two pending pipelines are expected to transport about 700,000 bpd initially with a potential of 830,000 bpd. 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. Finally, there are multiple state and county agencies which will consider permits for projects that cross navigable waters (including state streams), state highways or work affecting cultural or natural resources. And, in any event, producers would be under no obligation to sell that oil to the U.S. Biden on Jan. 20, 2021, his first day in office, used the power of the executive branch to cancel the Keystone, which would have transported crude oil from the Canadian province of Alberta to Steele City, Neb., where it would connect with another leg stretching to Gulf Coast refineries. Hundreds of opponents rallied there this week, calling on Biden to stop that project, too. 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. 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. Thirty-five of them would be permanent, while 15 would be temporary contractors. Spotted something? First, the arguments against the project. 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. TC Energy already had suspended construction in January when President Biden revoked a key cross-border presidential permit. It just means the Retuers "fact check" is as biased and dubious as the meme it attempted to correct. Drinking or using tap water treated with chlorine is dangerous because chlorine is a poison., Joe Biden described America as the foothills of the Himalayas with Xi Jinping., Kid Rock tweeted, Some people wouldnt recognize tyranny if it slapped a mask on their face, made them stand 6 feet apart, and forced them to take a vaccine for a virus with a 99.8% survival rate., The train that derailed in Ohio was carrying over 300,000 gallons of a chemical that was banned in 1974.. There would have been no certainty that the pipeline could have produced a net increase of 800,000 barrels a day, rather than just transporting oil from Canada that is currently being transported some other way. Given that the U.S. is siding with Ukraine, this could put a damper on the countrys ability to continue its dealings with Russia. 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.. 33701 One of them sparked outrage on Facebook over its effect on American jobs. "By revoking the Keystone pipeline permit, Biden is destroying 11,000 jobs and roughly $2 billion in wages," the post says. Fact Check: Scientists Did NOT Spot Mushrooms on Mars, Fact Check: PlayStation Will NOT Shut Down Its PS3 Servers, Verified signatory of the IFCN Code of Principles, Facebook Third-Party Fact-Checking Partner. 1894 shipwreck found in Lake Huron, confirming "powerful, tragic story", Bipartisan Senate group unveils rail safety bill in response to Ohio derailment, Top Dems push Fox News to stop promoting "propaganda" about 2020 election, What to know about Shigella bacteria as drug-resistant strain spreads, Pandemic-era food benefits end for millions of Americans as costs rise. 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. A map of the Keystone XLs route alongside the existing Keystone Pipeline System, operating since 2010, can be seen here . But this post could leave the wrong impression without full context. The idea that Keystone XL will improve U.S. oil supply is a documented scam being played on the American people by Big Oil and its friends in Washington DC. Critics hate it because they fear it will accelerate "dirty" oil production from Canada's oil sands region in Alberta. Copyright 2023 Politifact. "They want the additional Canadian barrels to displace higher cost barrels from Venezuela, Mexico or Saudi Arabia," said Allen Good, an oil company stock analyst at Morningstar. The 11,000 figure in the Facebook post appears to stem from an Oct. 28, Biden signed an order that revoked the permit, 11-volume State Department report on the Keystone XL pipeline, WRAL partners with PolitiFact NC to fact check political stories, State Department found in its 2014 report, Our ethics policy for PolitiFact journalists. The 1,200-mile Keystone XL pipeline, proposed by the Canadian energy conglomerate TC Energy, would carry up to 35 million gallons of tar sands crude oil from Alberta through Montana, South Dakota . Keystone XL supporters, including most of the oil industry, said the pipeline construction would have created much-needed construction jobs. Buffett does stand to profit from the cancelation of the Keystone pipeline and perhaps a great deal. 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. You'll receive your first NRDC action alert and The Keystone Pipeline from Canada to the U.S. is not closed. This group will consider the impact to endangered species in accordance with the Endangered Species Act. For example, the pipeline will increase the diversity of the U.S. petroleum supply. The ad draws a misleading relationship between Russian imports and the Keystone pipeline project. Owned by North American company TC Energy, the Keystone XL Pipeline is the fourth phase of the Keystone Pipeline System, an existing 2,687-mile pipeline whose Canadian portion runs from Hardisty, Alberta, east into Manitoba where it turns south and crosses the border into North Dakota, according to the companys website (here). And that is exactly what Valero, one of the largest potential buyers of Keystone XL's oil, has told its investors it will do. November 18, 2014. Part of TransCanada's Keystone XL pipeline under construction in Atoka, Oklahoma. Canceling the Keystone Pipeline Is a Mistake. This project would have produced 830,000 barrels of oil per day, more than enough to offset what we import from Russia.". It will also create up to 43,000 jobs, the majority of which will be permanent. The Keystone Pipeline already exists. However, TransCanada argued that this cost would be more than offset as shifting Canadian oil from the Midwest to the Gulf would increase the price that Americans paid for Canadian oil by $3.9 billion. 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. 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. A depot used to store pipes for TransCanada Corp.'s planned Keystone XL oil pipeline in Gascoyne, N.D., on Jan. 25, 2017. Although the extraction of oil sands is increasing in the U.S., transportation options from the Midwest to the Gulf Coast are limited. This portion has been flowing since February 2011. 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? The pipeline will allow the U.S. to substitute Canadian oil for other foreign oil. It pledged to ensure a safe termination of the project. 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. 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. As the Entertainment Editor, she investigated Hollywood stories and conducted interviews with A-list celebrities and reality stars. A cyberattack halted fuel movement through the Colonial Pipeline, which shifts gas from refineries in Texas to distribution centers on the East Coast, according to the US Energy Information System. 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). 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 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. The State Department estimated full-time permanent jobs to be closer to 50. Opinions expressed by Forbes Contributors are their own. The Reuters Fact Check team previously debunked social media claims surrounding the Keystone XL Pipeline, here . Gasoline is actually one of the nation's largest exports, going mostly to Latin America. "You won't see a lot of environmental organizations jumping up and down and saying, 'Hey, this is the best thing ever,'" Kieve said. Most of those positions would have been temporary construction jobs. 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 Keystone XL pipeline is an international project years in the making. Keystone XL Pipeline: The Keystone XL pipeline is a proposed extension of the Keystone pipeline system that will transport oil from Alberta, Canada to refineries in the United States. 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. See who is sharing it (it might even be your friends) and leave the link in the comments. 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. Energy from solar panels, wind turbines and other low-carbon technologies also tends to get cheaper the more widely it is used, they said. The Biden administration has repeatedly pushed back against proposals to revive the pipeline expansion. (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 . The Cushing Extension is 298 miles of 36 pipe which runs from Steele City, Nebraska to crude oil terminals and tank farms in Cushing, Oklahoma. CNN Sans & 2016 Cable News Network. 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. Canadians, including Indigenous peoples, have benefited economically from the oil sands mining. Campaign watchers rate the race as solid or safe Republican. This story begins in Hardisty, Alberta, Canada with a company called TransCanada. ", Rifles were involved in 297 deaths in the U.S. in 2022 and constipation killed 2,167.. "Keystone would have helped ease those fears while giving America the flexibility to counter Russian aggression by expanding energy exports to Europe," she wrote. The developer has now canceled the controversial project. 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. Pipe intended for use in. The State Department is one of 15 departments under the executive branch of the federal government. 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. At the heart of the protests was a knot of environmental concerns from the local to the global. Discovery Company. 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. 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 . Well get to that in a moment. Extracting the bitumen and diluting for shipment requires energy, most of it from burning fossil fuels. 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 project has become a matter of intense debate in the United States. This project would have produced 830,000 barrels of oil per day, more than enough to offset what we import from Russia. Keystone XL is a relatively small issue compared to the entirety of the existing U.S. pipeline system. At the time Mr. Biden. I will give you the facts and you can decide. "But in terms of gasoline prices and global oil prices, it's just something it's better to just ignore because it would have no impact. Thanks largely to better fuel economy and higher prices, the long-term demand for gasoline in the United States is either flat or declining. TC Energy said more than 1,000 people are out of work because of Bidens executive order. 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. As of 2014 . 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. 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