Obama walking fine line on pipeline debate
Environmentalists, energy companies both unhappy with president’s stance
WASHINGTON – In supporting Calgary-based Transcanada’s decision to build the southern leg of the Keystone XL oilsands pipeline, President Barack Obama has managed a rare feat – angering both environmentalists and energy companies at the same time.
Obama will deliver a major speech Thursday endorsing the expedited construction of Transcanada’s proposed pipeline from Cushing, Okla., to refineries on the Gulf Coast of Texas.
But before his speech, critics on Wednesday were lining up on both sides of the issue.
“We completely disagree with anything that would fast track or expedite federal permits for the southern leg of the Keystone XL pipeline,” said Susan Casey-lefkowitz, international programs director for the Natural Resources Defense Council.
“People in America really don’t like this project and they don’t like it because it is a step too far toward getting more dirty energy.”
Meanwhile, a quartet of top oil industry executives said Obama’s backing of the southern leg amounted to a half measure – arguing approval of the full Keystone XL pipeline from Alberta can’t wait any longer.
The president’s speech in the oil hub of Cushing is part of a four-state tour aimed at promoting his “all of the above” approach to increasing America’s energy independence – a wide-ranging policy he says encourages responsible oil production alongside development of alternative energy sources.
In Cushing, Obama will trumpet his support for Transcanada’s decision last month to go ahead with the southernmost segment of the controversial Keystone XL pipeline as a stand-alone project.
“The president has been very clear ... about his support for the building of the pipeline, the so-called Cushing pipeline,” said White House spokesperson Jay Carney, “because of the glut of oil in Cushing and the need to move that product to the Gulf for refining.”
CNN and USA Today have reported Obama will announce plans to expedite approval of the $2.3-billion project, which Transcanada says could be in operation by mid 2013.
The White House already has said Obama would “take every step possible to expedite the necessary federal permits.”
Carney offered no specifics Wednesday about what that would entail.
Transcanada opted to move ahead with the south- ern leg of Keystone XL – now called the Gulf Coast project – after Obama’s decision to
“Approval of the entire Keystone XL pipeline should happen now.”
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reject the company’s application for a permit to build the entire 2,700 kilometre pipe- line from Hardisty, Alta., to the Gulf Coast.
The company is preparing an alternate route for Keystone XL’S northern portion that would avoid the ecologically fragile Sandhills region of Nebraska. No decision is likely on that leg until early 2013, after this fall’s presidential election.
By backing the southern leg, Obama is trying to walk a fine political line. He wants to limit potential election-year damage from Republicans who say his opposition to the entire Keystone XL route has cost the U.S. thousands of construction jobs and could lead to higher gas prices.
At the same time, he is hoping environmentalists will continue to give him credit for denying Keystone XL even as he approves its southern portion.
So far, the plan isn’t working.
In an editorial published Wednesday in The Oklahoman newspaper, the chief executives of four major oil companies said Obama’s support of the southern Keystone XL portion wasn’t nearly enough.
“Approval of the entire Keystone XL pipeline should happen now – not after the election,” the oilmen wrote. The authors included Harold Hamm of Continental Resources, Aubrey Mcclendon of Chesapeake Energy, Larry Nichols of Devon Energy and Tom Ward of Sandridge Energy.
The four executives said they were pleased with Transcanada’s decision to build a “critical section” of the Keystone XL pipeline, which does not require a presidential permit from the State Department.
“However, America’s greatest benefit will come when we can transport oil from our best energy partner, Canada, and oil-rich North Dakota and Montana.”