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. 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. Unfortunately, Bidens initiative to cancel the project left many angered and without jobs. I will give you the facts and you can decide. But critics claim the oil Keystone carries will simply be exported to other parts of the world. Lets look at the argument for and against the project. The State Department is one of 15 departments under the executive branch of the federal government. ", Psaki added the Department of Energy predicts that in 2023 the U.S. will "produce more oil than ever before.". Is the Keystone Pipeline closed and is that causing a gas shortage? 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. Thanks for signing up. 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. Keystone XL would be Canadas first step in diversifying its energy market. The Natural Resources Defense Council works to safeguard the earth - its people, "And supply doesn't always quickly respond to that kind of shock in demand.". If only the halt of that project was the sole source of surging energy costs at home and abroad.. Could the Keystone XL pipeline help lower U.S. gas prices? 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. 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 opened: When you can't find gas, remember who executively ordered the Keystone Pipeline to close. Hence, opponents of this project have taken a well anticipated route, claiming that it will harm the environment. A Division of NBCUniversal. There are already about 2.3 million miles of pipeline across the US, carrying oil and natural gas. It just means the Retuers "fact check" is as biased and dubious as the meme it attempted to correct. The Keystone XL pipeline was expected to act as an extension to this larger system that would run 1,210 miles from Hardisty, Alberta to Nebraska.. 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. 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. 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.". Canada-based TC Energy first proposed the 1,200 mile Keystone XL pipeline in 2008 as a way to quickly pump 830,000 barrels of tar sands (a.k.a. TC Energy swung to a loss in the first quarter, hit by C$2.2 billion ($1.81 billion) impairment charge related to the suspension of Keystone XL. Get browser notifications for breaking news, live events, and exclusive reporting. It will also create up to 43,000 jobs, the majority of which will be permanent. TC Energy had begun construction on the pipeline last year and said about 300 miles of the $8 billion project had been built. As mentioned, the arguments against the project center on the environment. Most stock quote data provided by BATS. All rights reserved. Washington, DC Natural Resources Defense Council 2023 Privacy Policy hide caption. Here is a map of the current Keystone Pipeline from the company's website. Lead Stories is a U.S. based fact checking website that is always looking for the latest false, misleading, deceptive or The current part of the Keystone pipeline that already exists uses 2,638 miles of hardened steel built to "withstand impact from a 65-ton excavator with 3.5-inch teeth," according to . Learn more about Mailchimp's privacy practices here. Ive also heard opponents say that the project will not create very many high-quality or long-lasting jobs. President Joe Biden's revocation of the March 2019 permit enabling the construction of the Keystone XL pipeline will likely result in more crude-by-rail volumes, according to industry. Construction began in April 2020, but that same month,a federal courtsaid that the project had to go through a full endangered species review. We use Mailchimp as our marketing platform. The operator, Canada-based TC Energy, said the pipeline that runs from Canada to Oklahoma lost about . The current Keystone Pipeline transports approximately 700,000 barrels of oil a day from Canada to Texas. 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. David Kieve, president of advocacy group Environmental Defense Fund Action, also told CBS News that building out the Keystone pipeline would not have softened the impact the Ukraine crisis is having on fuel prices. In 2008 the United States imported 9.8 million barrels of oil a day, according to the Energy Information Administration. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. 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. When the U.S. expands its energy transportation system, additional workers are required to maintain and oversee it. Canada doesnt have nearly enough oil to fill existing pipelines going to the United States. Find out whats happened to the oil industryand where its headed next. Although it has been months since Biden revoked the permit needed to finish the Keystone XL pipeline, the war between Ukraine and Russia has lawmakers suggesting that the project be resurrected. As of 2014 . For information about our privacy practices, please visit our website. All times are ET. inaccurate stories, videos or images going viral on the internet. Buffett does stand to profit from the cancelation of the Keystone pipeline and perhaps a great deal. By 2012 that number had fallen to 8.5 million barrels a day. Those contractors were "responsible for hiring 7,000 union workers. ", stated on February 8, 2023 in a blog post. In this article, I will dispel the myths and rumors and discuss only the facts. Read more about our work to fact-check social media posts here . Opinions expressed by Forbes Contributors are their own. The current cost of oil takes partly into account the. 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. "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 company reportedly secured $1.1 billion, enough to cover construction through 2020, and expected to receive $4.2 billion in 2021 and 2022. Offers may be subject to change without notice. The Keystone XL pipeline was expected to carry 830,000 barrels per day of Alberta oil sands crude to Nebraska. 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. Got a confidential news tip? 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. The Keystone Pipeline: A Never-ending Saga. 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. Keystone XL would carry crude derived from Alberta's oil sands. 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. TC Energy said more than 1,000 people are out of work because of Bidens executive order. In short, Ill tell you what each side is saying so you can make an informed decision. (n.d.) There have been calls to revive the Keystone XL pipeline. The operator of the Keystone Pipeline System, which carries a form of crude oil from Canada to multiple states for refining, said over the weekend . 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.. 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 . 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. But most of those jobs are temporary. 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. South Dakota Gov. A revised permit was resubmitted in May 2012 which contained an alternate route. The Keystone XL pipeline is an international project years in the making. 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. (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 . Copyright 2023 Politifact. "In the month since Republicans took the House majority," they are trying to "impose a 30% tax on everything. 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. Examples of posts making this claim can be found here , here and here . / CBS News. 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. Please select all the ways you would like to hear from Lead Stories LLC: You can unsubscribe at any time by clicking the link in the footer of our emails. It was commissioned in 2010 and was to have four phases. ", Rifles were involved in 297 deaths in the U.S. in 2022 and constipation killed 2,167.. Our network of natural gas pipelines supplies more than 25 per cent of the clean-burning natural gas consumed daily across North America to heat homes, fuel industries and generate power. 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. 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. People may receive compensation for some links to products and services on this website. The Keystone XL pipeline project began some 12 years ago and has yet to reach the final stages of construction. 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. "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. Pipeline opponents are invigorated by the Keystone XL decision and hope for more wins. Russia is the world's second-largest exporter of crude oil, according to the U.S. Energy Information Administration. Extracting the bitumen and diluting for shipment requires energy, most of it from burning fossil fuels. The State Department forecasted that no more than 50 jobs, some of which could be located in Canada, would be required to maintain the pipeline. Yet many experts agree that moving ahead with the pipeline wouldn't have prevented U.S. gas prices from climbing to a record high. "And yet, we still have $100 per barrel oil.". The Keystone XL pipeline project began some 12 years ago and has yet to reach the final stages of construction. 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. Kristi Noem went a step further than Crenshaw, writing in a February 24op-edfor Fox News that in halting the Keystone XL pipeline Mr. Biden was "signaling to the world that American energy independence is no longer a priority.". The original petition for permit was denied on January 18, 2012 due to environmental concerns. Colonial Pipeline shut down distribution on May 7, 2021, following the cyberattack. As the Entertainment Editor, she investigated Hollywood stories and conducted interviews with A-list celebrities and reality stars. TC Energy appealed the ruling, but the Supreme Courtupheld itin July. With inflation soaring, gas prices have been increasing for months hitting an average of$4.33 a gallon on March 11, according to AAA. Our only agenda is to publish the truth so you can be an informed participant in democracy. District of Columbia "We're hopeful that the Biden administration will continue to shift this country in the right direction by opposing fossil fuel projects.". 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. Canceling the Keystone Pipeline Is a Mistake. For years, the Obama administration faced pressure to approve the project from Canada, the oil and gas industry and its political allies while also getting enormous pushback from environmental and other activists, including major Democratic donors. The environmental argument is studied by five groups. Those in favor of the pipeline have several diverse points which bolster their opinion. 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. In fact, TransCanada refused to support a requirement that oil on Keystone XL be used in the United States in a recent Congressional hearing. inaccurate stories, videos or images going viral on the internet. The pipeline had been projected to carry oil nearly 1,200 miles (1,900km). And, we also have the technology to assure that the environment will be protected. 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. But the latest figures show a general trend downward and that by October 2021, the figure was 595,000. Pipe intended for use in. 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. This amount makes up 3% of U.S. crude oil imports and about 1% of the crude oil processed in U.S. refineries. 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. Market Realist is a registered trademark. Biden's. In short, the U.S. needs to approve this pipeline to accommodate the increase in production. 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. 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. The Environmental Protection Agency is the second group. Although I do have an opinion on the matter, which I will share later, facts are facts which cannot be changed. 4 Min Read. Disclaimer. All rights reserved. TC Energy already had suspended construction in January when President. Biden had committed to canceling the project during his campaign and revoked the permit soon after taking office. All rights reserved. For example, the pipeline will increase the diversity of the U.S. petroleum supply. No, that's not true. We reached out to the user who published the post for their evidence, but we didnt hear back. 20006, Florida A Warner Bros. Canada is our largest trading partner and is important to U.S. job creation. 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. update email soon. Both of these forms can be transported by pipeline. LaTurners office cited reports showing the two figures. And right now in Minnesota there are protests around Enbridge's Line 3 project that's under construction. Legal Statement. It did not specify exactly how many jobs would be lost. The Keystone Pipeline from Canada to the U.S. is not closed. It's, 'Oh, there's a lot more risk now than there was before.'". : 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. Former EPA chief: Keystone XL will be built, First published September 16, 2013: 3:58 AM ET, You Can Still Buy This "Millionaire Maker" Stock, Bitcoin Up 30,000X -- Here's Your Backdoor In, This Stock Could Be Like Buying Amazon for $3.19, These are your 3 financial advisors near you, This site finds and compares 3 financial advisors in your area, Check this off your list before retirement: talk to an advisor, Answer these questions to find the right financial advisor for you, An Insane Card Offering 0% Interest Until Nearly 2020, Transferring Your Balance to a 14-Month 0% APR is Ingenious, The Top 7 Balance Transfer Credit Cards On The Market Today, Get $300 Back With This Outrageous New Credit Card. Oil sands, also called tar sands, are a mixture of clay, sand, water, and heavy black viscous oil known as bitumen. 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. Although the project was stopped before it could even reach a quarter of completion, the Keystone Pipeline System is fully functional today. 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 Keystone XL Pipeline consists of two parts. 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. 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. Tax on everything Energy already had suspended construction in January when President making this claim be! Can decide calls to revive the Keystone pipeline from the company 's website project 's... Additional workers are required to maintain and oversee it about 300 miles of pipeline across the US, oil! Canadas first step in diversifying its Energy transportation system, additional workers are required to maintain and oversee it conducted... Oil industryand where its headed next several diverse points which bolster their opinion one of 15 under! 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The company 's website functional today 2.3 million miles of pipeline across the US carrying! The US, carrying oil and natural gas out whats happened to the United States will `` more... Campaign and revoked the permit soon after taking office ca n't find gas, remember who executively the!