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. 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. 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. Producers would not have been obligated to sell that entire amount to the U.S. As Russia pressed its invasion of Ukraine, President Joe Biden faced accusations at home that he had made the United States more dependent on Russian oil. 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. Colonial Pipeline shut down distribution on May 7, 2021, following the cyberattack. On November 19, 2014, the U.S. Senate voted against the passage of the bill which would allow the Keystone XL Pipeline to proceed. 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. "And it's not necessarily that they're saying, 'Oh there's not enough oil.' The policies have helped restrict U.S. oil production, and the fallout from the Keystone Pipeline remains lost on the administration. Official govt docs expose Michelle Obamas 14 year history as a man., "Woody Harrelsons 60 seconds in the middle of his monologue was cut out of the edits released after the show., BREAKING Trump preps Marines to stop presidential coup.. Oil sands, also called tar sands, are a mixture of clay, sand, water, and heavy black viscous oil known as bitumen. Unlike oil, renewable energy relies far less on fixed and limited natural resources. It's a great day for Mother Earth," Larry Wright Jr., chairman of the Ponca Tribe of Nebraska, said in a statement. Part of TransCanada's Keystone XL pipeline under construction in Atoka, Oklahoma. 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. A Facebook post says that Bidens executive order revoking the Keystone XL pipeline "is destroying 11,000 jobs.". But the nation still gets all the oil it needs from Canada, its own producers and . The company reportedly secured $1.1 billion, enough to cover construction through 2020, and expected to receive $4.2 billion in 2021 and 2022. At the time Mr. Biden. The pipeline had been projected to carry oil nearly 1,200 miles (1,900km). In fact, TransCanada refused to support a requirement that oil on Keystone XL be used in the United States in a recent Congressional hearing. When Biden became President of the United States, he scrapped the project and essentially put it to bed. 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. Both of these forms can be transported by pipeline. Fiery train crash in Greece kills dozens, many of them students, Ex-Georgia star Jalen Carter was racing in deadly crash, arrest warrants allege, Watch Live: Garland testifies amid ongoing special counsel investigations. The pipeline was set to carry oil 1,200 miles (1 . Environmentalists opposed the pipeline in part because of the oil it would carry oil sands crude from Alberta. At the time Mr. Biden halted its construction, the $8 billion expansion was only about8% complete, according to Reuters. 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. By 2012 that number had fallen to 8.5 million barrels a day. Offers may be subject to change without notice. State Disclosures, Director, Canada Project, International Program. This portion would transport oil over 435 miles through 36" pipe running from Cushing, Oklahoma to Port. Its proposed route in Nebraska cut through the Ogallala Aquifer, the groundwater source for millions of Plains states residents. People may receive compensation for some links to products and services on this website. Canceling the Keystone Pipeline Is a Mistake. 801 3rd St. S 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.. : 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. Without support from the U.S. government, its effectively halted. 2022 Cable News Network. The war in Ukraine also plays a role, although it was not the instigator of the increase. By Dennis Romero. 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. A Division of NBCUniversal. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Market Realist is a registered trademark. 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. Therefore, about 8% of the planned 1,210-mile XL extension had been built by the time President Biden revoked the permit. TC Energy Corp., the Canadian company that owns the Keystone XL pipelinewith the Alberta government, has said more than 1,000 people are out of work because of Bidens executive order. Biden had committed to canceling the project during his campaign and revoked the permit soon after taking office. The company behind the controversial Keystone XL oil pipeline said Wednesday it's officially terminating the project. "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. As of Monday, May 10, the pipeline had not resumed operations of its main lines, although some smaller lines are operational. 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. "The key lesson there is the U.S. is not the whole story here. 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. Lawsuits claim it wrecked their teeth. Temporary jobs are still jobs. Although Alberta is now on . Texas Rep. Dan Crenshaw, who has urged the Biden administration to ramp up domestic oil production, said in a tweet the day before Russia's February 24 attack that the Keystone project would have produced 830,000 barrels of crude per day. 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. As the war between Ukraine and Russia continues to unfold, lawmakers in various states think Biden must take action now so that the U.S. doesn't rely on foreign oil. Some also carry diluted bitumen, the heavy crude from the tar sands that has a much higher. 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 and Oklahoma. 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. 2022 CBS Interactive Inc. All Rights Reserved. its plants and animals, and the natural systems on which all life depends. See who is sharing it (it might even be your friends) and leave the link in the comments. A storage yard in Montana contains pipe that was to be used in the construction of the Keystone XL oil pipeline. In summary, Keystone is good for the economy, good for U.S. energy independence, and good for the American consumer. It's important to understand what's contributing to the high prices of oil in the first place. For information about our privacy practices, please visit our website. By clicking below to subscribe, you acknowledge that your information will be transferred to Mailchimp for processing. "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. Had construction continued, the pipeline would have entered service in 2023. The 1,200-mile Keystone XL Pipeline was designed to mirror that,. This pipeline is the already existing Keystone pipeline that sends 550,000 barrels of oil from Alberta to Steel City. In addition, it will boost U.S. energy production, thereby providing a boost to our economy. Spotted something? On his first day in office, President Joe Biden signed an executive order canceling the Keystone XL Pipeline Project. 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. The current Keystone Pipeline transports approximately 700,000 barrels of oil a day from Canada to Texas. All quotes delayed a minimum of 15 minutes. Its symbolic of whether or not were willing to embrace the natural resources that we have in our country. 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. It runs from the Western Canadian Sedimentary Basin in Alberta to refineries in Illinois and Texas, and also to oil tank farms and an oil pipeline distribution center in Cushing, Oklahoma. Recent estimates are that the project itself will create about 43,000 permanent jobs. ", stated on February 8, 2023 in a blog post. 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 . TC Energy owns the existing Keystone oil pipeline, which runs from Alberta to the U.S. oil storage hub in Cushing, Oklahoma, and to the U.S. Gulf, along with a power and storage business. First published on March 15, 2022 / 3:12 PM. The State Department is one of 15 departments under the executive branch of the federal government. Opponents of the line fought its construction for years, saying it was unnecessary and would hamper the U.S. transition to cleaner fuels. You'll receive your first NRDC action alert and 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 . 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). Finally, the pipeline would expand the transportation of oil sands from the Midwest to the Gulf Coast. Although I do have an opinion on the matter, which I will share later, facts are facts which cannot be changed. We use Mailchimp as our marketing platform. 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. 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. 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. When Canadian regulators at the National Energy Board (NEB) considered the Keystone XL proposal in 2008, they asked TransCanada to justify another pipeline when there was already so much spare capacity. The pipeline would also accept U.S. crude from the Bakken oil fields in Montana and North Dakota. We will The claim appeared as a post (archived here) published on Facebook on May 10, 2021. Which argument is right? Trump revived hopes for the project once he took office, ultimately approving it with an executive order. Supporters say the oil is no dirtier than other forms of heavy oil the country is currently importing. 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 Keystone Pipeline in North Dakota was shut down after it leaked oil. Is this good for America? Once refined, it'll be impossible to tell exactly where the oil that came down the pipeline went, but "with more oil, that [export] number will increase," said Milne. Although the argument against the pipeline centers on environmental concerns, the real reason may have to do with the disdain for fossil fuels felt by environmental groups and others. There is also an argument on the impact it may have on the long-term use of land and the harm it may cause to agriculture and cattle grazing. Yet many experts agree that moving ahead with the pipeline wouldn't have prevented U.S. gas prices from climbing to a record high. BILLINGS, Mont. First proposed in 2008, the $8 billion pipeline would deliver over 800,000 barrels of oil a day. 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. The total capacity of both is expected to be about 1.3 million bpd. 727-821-9494, The Keystone XL pipeline "would have produced 830,000 barrels of oil per day, more than enough to offset what we import from Russia. "Whenever there is political instability in places that produce a lot of oil, markets react," Nemet said. How? The State Department estimated full-time permanent jobs to be closer to 50. The pipeline system. "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. "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 pipeline was expected to carry some 830,000 barrels per day of oil from Canada to the U.S. (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. 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? "It's that as we produce more and more of these clean energy technologiesthey get more affordable for everyone. 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. Canada doesnt have nearly enough oil to fill existing pipelines going to the United States. The second segment, called the Keystone XL, would run 1,179 miles from Hardisty, Alberta to Steele City, Nebraska. The Keystone XL pipeline was. Unfortunately, Bidens initiative to cancel the project left many angered and without jobs. "And supply doesn't always quickly respond to that kind of shock in demand.". 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. None of this means Warren Buffett had anything to do with Biden's decision to spike the Keystone Pipeline. The energy boom in both the United States and Canada is already reducing imports. Although the project was stopped before it could even reach a quarter of completion, the Keystone Pipeline System is fully functional today. 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. Gasoline is actually one of the nation's largest exports, going mostly to Latin America. Some ask why should it proceed? / CBS News. Cellphone data used to arrest the Idaho quadruple-murder suspect proves that criticism of the 2000 Mules movies use of cell data is unfounded. "Stop importing from Russia, start producing more," he tweeted in early March. The pipeline's opponents in Nebraska feared that any leak from Keystone XL would damage the critical aquifer, and they welcomed the end of the project. Now for the issue that has polarized America. "Unusual cancers are exploding right into stage 4" and those cancer cells have the spike protein. This amount makes up 3% of U.S. crude oil imports and about 1% of the crude oil processed in U.S. refineries. Most objections center on the extraction of the oil, but some suggest the project will only make the U.S. more dependent on fossil fuels. The Keystone XL Pipeline consists of two parts. 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. But it's also true that exports of refined products from the United States will likely continue to rise. 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 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 . The other major candidate for the seat is Democrat Patrick Schmidt, a former U.S. Navy intelligence officer. CNN Sans & 2016 Cable News Network. The Keystone Pipeline from Canada to the U.S. is not closed. The Reuters Fact Check team previously debunked social media claims surrounding the Keystone XL Pipeline, here . 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. So we wanted to take a closer look. "It wouldn't be online and wouldn't be pumping oil until the year 2023. St. Petersburg, FL Oil and Liquids TC Energy builds and operates safe and reliable energy infrastructure. 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. Find out whats happened to the oil industryand where its headed next. "And yet, we still have $100 per barrel oil.". 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. Its shares closed largely flat on the Toronto Stock Exchange. All times are ET. 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. Oil sands production is increasing in the U.S. with the majority of it in the form of heavy crude. A map of the Keystone XLs route alongside the existing Keystone Pipeline System, operating since 2010, can be seen here . 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. Fourth is the U.S. Ramped up domestic oil production and new supply routes have lessened the U.S.'s need for the hundreds of thousands of barrels . Why the pipeline? This area has highly porous soil and shallow groundwater. Proponents also argue that the pipeline will enhance U.S. energy security and help maintain adequate crude oil supplies for U.S. refineries. 2023 CNBC LLC. In the weeks following U.S. President Joe Bidens decision to scrap the Keystone XL oil pipeline, posts on social media have claimed that the project was in Phase 4 & just about completed and that it had been paid for by the time Biden pulled the plug. While it is true that the project had secured funding, which was largely expected to be paid out in 2021 and 2022, the claim is partly false, as less than 10% of the pipeline had been built by the time Biden formally revoked the permit. That as we produce more and more of these clean energy technologiesthey get more affordable everyone. 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