Updated on: March 17, 2022 / 11:57 AM I will give you the facts and you can decide. The war in Ukraine also plays a role, although it was not the instigator of the increase. A southern leg from Cushing,. The ad draws a misleading relationship between Russian imports and the Keystone pipeline project. Was any part of the Keystone XL pipeline functional? 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. The Keystone XL crude oil pipeline wasn't yet operational when it was canceled in 2021, and wasn't expected to be running until 2023. The GAO study showed that the U.S. stretches of TC Energy's 2,700-mile Keystone pipeline had a failure rate in line with the national average during its first six years of service, with most of . Oil sands crude emits about 17% more greenhouse gases than traditional oil, according to the U.S. State Department, largely due to the heat it takes to separate the oil from the sand. As the Entertainment Editor, she investigated Hollywood stories and conducted interviews with A-list celebrities and reality stars. With Americans facing the worst inflation in 40 years, would expanding Keystone offer much relief at the pump? It would take six to 10 years for oil from a new lease to hit the global market, Kieve said. Oil and Liquids TC Energy builds and operates safe and reliable energy infrastructure. Although the project was stopped before it could even reach a quarter of completion, the Keystone Pipeline System is fully functional today. 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 Reuters Fact Check team previously debunked social media claims surrounding the Keystone XL Pipeline, here . But It's Definitely Changing, In A Landmark Case, A Dutch Court Orders Shell To Cut Its Carbon Emissions Faster, 'Energy Justice' Nominee Brings Activist Voice To Biden's Climate Plans. The company announced that it hopes to restore service by the end of the week. Colonial Pipeline shut down distribution on May 7, 2021, following the cyberattack. Russia is the world's second-largest exporter of crude oil, according to the U.S. Energy Information Administration. "And it's not necessarily that they're saying, 'Oh there's not enough oil.' Finally, the pipeline would expand the transportation of oil sands from the Midwest to the Gulf Coast. If only the halt of that project was the sole source of surging energy costs at home and abroad.. It is not shut down. The Keystone XL pipeline, which is owned by TC Energy Corp (NYSE: TRP), was reportedly less than 10 percent built when Biden pulled the plug on the project. Now, GOP leaders are blaming surging fuel costs in part on a decision by President Biden early in his administration to block the Keystone XL Pipeline. Temporary jobs are still jobs. The pipeline was expected to carry some 830,000 barrels per day of oil from Canada to the U.S. In the report, the agency wrote that 10,400 estimated positions would be for seasonal construction work lasting four to eight-month periods. The pipes pass through North Dakota, South Dakota, Nebraska, Kansas, Missouri, and Oklahoma. We will Yet many experts agree that moving ahead with the pipeline wouldn't have prevented U.S. gas prices from climbing to a record high. Campaign watchers rate the race as solid or safe Republican. 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. In May 2021, the U.S. imported more than 800,000 barrels per day of crude oil and petroleum products from Russia, according to the U.S. Energy Administration. That number is an estimate, and the claim lacks context about the longevity of Keystone jobs. At the heart of the protests was a knot of environmental concerns from the local to the global. 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. It's a global market," Nemet said. Specifically, the original pipeline route would have passed through an environmentally sensitive area of Nebraska known as the Sand Hills region. It pledged to ensure a safe termination of the project. Its shares closed largely flat on the Toronto Stock Exchange. The Keystone pipeline leaked an estimated 9,120 barrels of oil, or roughly 383,000 gallons, in North Dakota in late October . President Joe Biden in January 2021 revoked the permit for an add-on to the Keystone system, but the rest of the system is still running. 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. That initial jump in the cost of crude was driven by the ongoing economic recovery, which boosted demand by consumers and businesses that had been dampened by the COVID-19 pandemic. Pipe intended for use in. CNN Sans & 2016 Cable News Network. "It's that as we produce more and more of these clean energy technologiesthey get more affordable for everyone. Fourth is the U.S. Our Standards: The Thomson Reuters Trust Principles. This area has highly porous soil and shallow groundwater. 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. Why the pipeline? Environmental activists and indigenous communities hailed the cancellation, and traders and analysts said U.S.-Canada pipelines will have more than enough capacity to handle increasing volumes of crude out of Canada, the primary foreign supplier of oil to the United States (here). "We're hopeful that the Biden administration will continue to shift this country in the right direction by opposing fossil fuel projects.". Canada-based TC Energy . "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.". By 2012 that number jumped to 3.2 million barrels. We use Mailchimp as our marketing platform. Supporters say the oil is no dirtier than other forms of heavy oil the country is currently importing. LaTurner said in an ad: The Keystone XL pipeline "would have produced 830,000 barrels of oil per day, more than enough to offset what we import from Russia. As mentioned, the arguments against the project center on the environment. District of Columbia So, it actually would have nothing do with the current supply imbalance. The Keystone pipeline, which President Joe Biden canceled, would have transported more oil per day than the U.S. imports from Russia, but it would not have been a simple offset. Biden had committed to canceling the project during his campaign and revoked the permit soon after taking office. Critics hate it because they fear it will accelerate "dirty" oil production from Canada's oil sands region in Alberta. I cover the intersection of economics, politics and personal finance. "Today, we can say yet again, that our efforts were a resounding success.". Opponents of the line fought its construction for years, saying it was unnecessary and would hamper the U.S. transition to cleaner fuels. That makes oil sands crude more carbon-intensive and worse for the climate than conventional petroleum. But the Trump administration revived the pipeline in early 2017. Legal Statement. The energy boom in both the United States and Canada is already reducing imports. TC Energy already had suspended construction in January when President Biden revoked a key cross-border presidential permit. "The key lesson there is the U.S. is not the whole story here. How? "Whenever there is political instability in places that produce a lot of oil, markets react," Nemet said. Buffett does stand to profit from the cancelation of the Keystone pipeline and perhaps a great deal. On page 90, the report concludes that the United States will import the same amount of crude from Canada through 2030 whether or not Keystone XL is built. Learn more about Mailchimp's privacy practices here. 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. Says he has been to Afghanistan, Iraq and those areas twice as president. Gas prices hit record highs as more Americans return to the office, MoneyWatch: Soaring gas prices putting strain on American households, U.S. concerns about TikTok are "absolutely valid," expert says, Belarus dictator to visit China as key Putin allies bolster ties, Hague "people's court" wants Putin held accountable for crimes against Ukraine, Diplomats in London show support for Ukraine by swimming in Hyde Park lake, U.S. must "sustain" its involvement in Ukraine war, secretary of state says, American Fuel and Petrochemical Manufacturers. All content of the Dow Jones branded indices S&P Dow Jones Indices LLC 2019 and/or its affiliates. "And yet, we still have $100 per barrel oil.". Cellphone data used to arrest the Idaho quadruple-murder suspect proves that criticism of the 2000 Mules movies use of cell data is unfounded. ", Feb. 26, 2022, Alberta.ca, "Pipeline Project - Keystone XL," accessed Feb. 28, 2022. (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 Market Realist. 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. 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. Partly false. The Keystone XL pipeline project began some 12 years ago and has yet to reach the final stages of construction. By contrast, Mr. Biden's decision with the International Energy Agency to release 30 million barrels of oil from the nation's Strategic Petroleum Reserve puts downward pressure on gas prices in the short-term, Kieve said. We need your help. It opened: When you can't find gas, remember who executively ordered the Keystone Pipeline to close. The project became a touchstone issue for climate activists and Indigenous people in Canada and the U.S, including those along the pipeline's route. The Ogallala aquifer is also in this region and the pipeline would have posed a potential threat to the drinking water. The Keystone Pipeline in North Dakota was shut down after it leaked oil. President Joe Biden in January 2021 revoked the permit for an add-on to the Keystone system, but the rest of the system is still running. The pipeline carries refined petroleum products such as gasoline, diesel, heating oil, and jet fuel from Houston, Texas, on the U.S. Gulf Coast up to Linden, New Jersey, and serves several markets along the route through various branch lines. The pipeline would span 875 miles. ", Psaki added the Department of Energy predicts that in 2023 the U.S. will "produce more oil than ever before.". That means the nation's refineries are producing more gasoline, diesel fuel and other oil products than the country needs, and exporting the rest. 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 . The Keystone XL Pipeline consists of two parts. In the long run, the best way to protect Americans from spiking oil prices is to accelerate the shift from fossil fuels to renewable energy, Nemet and Kieve said. The current Keystone Pipeline transports approximately 700,000 barrels of oil a day from Canada to Texas. The. President Joe Biden signed an executive order on January 20, 2021, revoking the permit for the Keystone XL, which stands for Keystone "export limited," segment of the Keystone system, which is the fourth phase of the system. LaTurners office cited reports showing the two figures. Gasoline is actually one of the nation's largest exports, going mostly to Latin America. It would have carried oil from landlocked Alberta to the U.S. Gulf Coast. The press release also stated that the remaining $6.9 billion needed for construction was expected to be largely made in 2021 and 2022 and funded through the combination of a US$4.2 billion project level credit facility to be fully guaranteed by the Government of Alberta and a US$2.7 billion investment by TC Energy.. By Dennis Romero. All quotes delayed a minimum of 15 minutes. Here is a map of the current Keystone Pipeline from the company's website. The pipeline had been projected to carry oil nearly 1,200 miles (1,900km). The Keystone Pipeline is a series of metal pipes that run from Alberta Canada to Patoka, Illinois and Port Arthur, Texas. 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. 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. 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. 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. This portion has been flowing since February 2011. Even in the future, there would be no certainty that the pipeline could produce a net increase of 800,000 barrels a day. 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. None of this means Warren Buffett had anything to do with Biden's decision to spike the Keystone Pipeline. Unlike oil, renewable energy relies far less on fixed and limited natural resources. But the U.S. imported an average of 209,000 barrels of crude oil per day from Russia in 2021, according to theAmerican Fuel and Petrochemical Manufacturers, as well as 500,000 barrels per day of other petroleum products. Which argument is right? On day one, President Biden canceled the Keystone XL Pipeline. The 875-mile pipeline would carry a heavy crude oil mixture from . 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 agency will release a total of 60 million barrels of crude to help ease some of the supply disruptions caused by the war Ukraine. The policies have helped restrict U.S. oil production, and the fallout from the Keystone Pipeline remains lost on the administration. That very well may be the case as Valero, one of the largest prospective purchasers of Keystone XL's crude, has already told its investors the its future business is in international export. The developer has now canceled the controversial project. The Keystone XL pipeline is an international project years in the making. It's, 'Oh, there's a lot more risk now than there was before.'". The Keystone Pipeline System stretches 2,687 miles, while Keystone XL was to be 1,210 miles in length. 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. ", stated on February 8, 2023 in a blog post. Got a confidential news tip? 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. This type of project has been completed numerous times before. Lets look at the argument for and against the project. Spotted something? Now for the issue that has polarized America. Biden's. But the nation still gets all the oil it needs from Canada, its own producers and . Let us know!. Keystone XL, a US$8-billion oil pipeline that was set to flow from Alberta to Nebraska, is officially scrapped, the project's owner, TC Energy, confirmed on Wednesday. Keystone XL was halted by owner TC Energy after U.S. President Joe Biden this year revoked a key permit needed for a U.S. stretch of the 1,200-mile project. Its symbolic of whether or not were willing to embrace the natural resources that we have in our country. The pipeline will allow the U.S. to substitute Canadian oil for other foreign oil. Oil Change International investigated this issue in a report that found the Keystone XL pipeline was part of a larger strategy to sell increasing volumes of Canadian crude on the international diesel market. The Keystone Pipeline from Canada to the U.S. is not closed. "By revoking the Keystone pipeline permit, Biden is destroying 11,000 jobs and roughly $2 billion in wages," the post says. The Keystone XL pipeline would then connect to existing pipelines and transport oil to refineries along the Gulf Coast. This project would have produced 830,000 barrels of oil per day, more than enough to offset what we import from Russia. BILLINGS, Mont. Is the Keystone Pipeline closed and is that causing a gas shortage? Lets skip to the main arguments for and against and you can decide for yourself if this project is warranted or if it should be denied. The fact that Canada has excess pipeline capacity is well known. 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. The second segment, called the Keystone XL, would run 1,179 miles from Hardisty, Alberta to Steele City, Nebraska. All rights reserved. Ive also heard opponents say that the project will not create very many high-quality or long-lasting jobs. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. 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. 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 Cushing Extension is 298 miles of 36 pipe which runs from Steele City, Nebraska to crude oil terminals and tank farms in Cushing, Oklahoma. Examples of posts making this claim can be found here , here and here . 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. 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. National Association of Manufacturers CEO on Biden's canceling of the Keystone XL pipeline. Keystone XL will provide the U.S. with direct pipeline access to the secure and growing Canadian crude output and decrease our dependence on foreign oil from Mexico and Venezuela (the two largest oil exporters into the Gulf Coast). Keystone XL was halted by owner TC Energy after U.S. President Joe Biden this year revoked a key permit needed for a U.S. stretch of the 1,200-mile project. This portion would transport oil over 435 miles through 36" pipe running from Cushing, Oklahoma to Port. Get browser notifications for breaking news, live events, and exclusive reporting. ICE Limitations. Powered and implemented by FactSet. Hundreds of opponents rallied there this week, calling on Biden to stop that project, too. This dental device was sold to fix patients' jaws. its plants and animals, and the natural systems on which all life depends. 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. The Keystone XL pipeline was. Although the extraction of oil sands is increasing in the U.S., transportation options from the Midwest to the Gulf Coast are limited. Could the Keystone XL pipeline help lower U.S. gas prices? 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? President Obama is expected to either approve or deny the pipeline by the end of this year. Its demise comes as other North American oil pipelines, including Dakota Access and Enbridge Line 3, face continued opposition from environmental groups. It opened: Gregory Nemet, professor of public affairs at the University of Wisconsin-Madison's Wisconsin Energy Institute, pointed out that the cost of oil has steadily increased since last fall, when it was around $70 a barrel, to more than $130 last week before settling back at around $100 a barrel on Tuesday. Keystone XL is a relatively small issue compared to the entirety of the existing U.S. pipeline system. The Keystone XL pipeline project began some 12 years ago and has yet to reach the final stages of construction. Copyright 2023 Politifact. 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. Energy from solar panels, wind turbines and other low-carbon technologies also tends to get cheaper the more widely it is used, they said. Alexis crime reporting earned her spots as a contributor on the Nancy Grace show, CNN, Fox News and Entertainment Tonight, among others. These typically exist in community groups and environmental organizations. 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. 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.". After more than 10 years, the embattled Keystone XL pipeline has officially been abandoned. Because the pipeline was a major infrastructure project that crossed a U.S. border, it needed a so-called presidential permit from the State Department. The third group is the Bureau of Land Management which grants temporary permits for portions of the project that would encroach on federal lands. It was commissioned in 2010 and was to have four phases. The claim appeared as a post (archived here) published on Facebook on May 10, 2021. 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