News24

US Senate blocks Canada oil pipeline

2012-03-09 14:01

Washington - Under pressure from the White House, the Democratic-controlled Senate blocked a Republican bid on Thursday to speed approval of an oil pipeline from Canada to Texas.

The 56-42 vote came after President Barack Obama called Democratic senators to urge them to oppose the 2 735km Keystone XL pipeline, which would carry tar sands oil from western Canada to refineries along the Texas Gulf Coast.

Even so, 11 Democrats sided with Republicans to sidestep Obama's rejection of the pipeline and allow the $7bn project to go forward. Sixty votes were needed for approval.

The leader of the Senate's Republican minority, Senator Mitch McConnell blasted Obama after the vote.

"President Obama's personal pleas to wavering senators may have tipped the balance against this legislation. When it comes to delays over Keystone, anyone looking for a culprit should now look no further than the Oval Office," McConnell said.

Democratic opposition to the pipeline "shows how deeply out of touch they are with the concerns of middle-class Americans", McConnell added.

Playing politics


White House press secretary Jay Carney confirmed that Obama called senators but did not identify them.

"The president believes that it is wrong to play politics with a pipeline project whose route has yet to be proposed," Carney said, referring to a yet-to-be-settled route that would avoid the environmentally sensitive Sandhills region in Nebraska.

Obama had cited uncertainty over the Nebraska route in rejecting the pipeline in January. The president said there was not enough time for a fair review before a deadline forced on him by Republicans.

Carney dismissed Republican claims that the pipeline would ease rising prices at the gas pump as "false advertising".

Carney called the Republican proposal "ineffectual sham legislation that has no impact on the price of gas and is irresponsible because, as we said before, it tries to legislate the approval of a pipeline for which there is not even a route".

The State Department initially had blocked the project in November, citing worries about a proposed route through the Sandhills.

Political football


Pipeline supporters, including congressional Republicans, the oil industry and some labour groups, have been attacking Obama for blocking the pipeline, which they say could create thousands of jobs and provide a stable source of oil from a close neighbour and ally.

Democrats and environmental groups counter that the pipeline would transport "dirty oil" that takes huge amounts of energy to extract, which would add to the pollution blamed for global warming. They also worry about a catastrophic oil spill.

Senate Majority Leader Harry Reid of Nevada said the Republican amendment, sponsored by Senator John Hoeven of North Dakota, would have short-circuited the process needed to plan the best route for the pipeline.

"If Republicans truly want to move ahead with this pipeline, they should stop treating it like a political football," Reid said, noting that the Republicans inserted a pipeline provision into an unrelated tax bill in December.

It was that bill that led to Obama's rejection of the pipeline in January.

Bottleneck


The pipeline operator, Calgary-based TransCanada, said last month it would build a portion of the pipeline from Oklahoma to Texas. That 780km line from Cushing, Oklahoma, to Port Arthur, Texas, does not require presidential approval because it does not cross a US border.

The Obama administration had suggested development of an Oklahoma-to-Texas line to alleviate an oil bottleneck at a Cushing storage hub.

"Half of the pipeline is already being built, and the company building the pipeline is submitting another application for the remainder of the route," Reid said, adding that the permit process should be given time to work and not be affected by Republican desires "to appease the tea party or big oil companies".


Comments
  • kafantaris2 - 2012-03-09 17:37

    The Wyden Amendment makes sense. If we are risking an oil spill on our homeland the next 30 years from the Keystone pipeline, then we should insist that all the oil it transports stays here. And that the pipeline be built and maintained by American workers -- with American made materials. Otherwise, we would be relegating our land to a 30 year stepping stone for Canada to transport its dirty oil to foreign markets. Indeed, the Wyden Amendment should be used as a model for all offshore and public land drilling. If our country incurs the long term risk of an oil spill, then it should also get the maximum benefit. The "free market" will have to take a back seat on this one. Our environment ain't free -- even to the free market.

      Fidel - 2012-03-09 20:51

      The Free Market died many moons ago, especially in your country. Your business people want government subsidies, bailouts, trade barriers, and other such things because they are not brave enough for the really free market.

  • CearaQC - 2012-03-10 05:45

    I say we should bypass USA and supply China if Americans are too picky

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