Obama wants speedy approval for part of Keystone X

WASHINGTON — U.S. President Barack Obama pushed Thursday for the speedy approval for the southern leg of TransCanada’s Keystone XL pipeline as he insisted oil has an important place in his national energy plans.

WASHINGTON — U.S. President Barack Obama pushed Thursday for the speedy approval for the southern leg of TransCanada’s Keystone XL pipeline as he insisted oil has an important place in his national energy plans.

“Today, I am directing my administration to cut through red tape, break through bureaucratic hurdles and make this project a priority,” Obama said to applause as he stood in front of stacks of pipe to be used to build a portion of Keystone XL from Cushing, Okla., to Gulf Coast refineries.

The announcement came just a few weeks after Obama rejected the entire length of Keystone XL, a pipeline that would transport Alberta oilsands bitumen from the northern reaches of the province through six U.S. states to Texas.

The president said there was not enough time to review a new route around a crucial aquifer in Nebraska in order to meet a tight deadline imposed by congressional Republicans.

He insisted on Thursday he remains a staunch supporter of domestic oil production as he stood in tiny Cushing, where there’s a backlog of oil from states like North Dakota and Montana that cannot be easily transported south.

“Producing more oil and gas here at home has been, and will continue to be, a critical part of our all-of-the-above strategy,” Obama said. “Anybody who suggests that somehow we’re suppressing domestic oil production isn’t paying attention.”

The president also pledged to carefully review any future TransCanada permit applications, saying Republican pressure tactics forced his hand in February when he rejected the entire expanse of Keystone XL.

“As long as I’m president, we’re going to keep encouraging oil development and infrastructure in a way that protects the health and safety of the American people,” he said.

TransCanada spokesman Shawn Howard called the announcement good news.

“It’s an important step forward for the Gulf Coast project,” Howard said. “There’s a recognition that this is a critical piece of North American energy infrastructure.”

He added the announcement suggests the Obama administration is favourable to the entire Keystone XL pipeline.

“Ultimately, there’s a recognition that Gulf Coast refiners and refiners in the Midwest need increased supplies of both Canadian and American oil,” he said.

“It’s just a fact, and it’s not going to change and by moving oil from Canada and from fields in the U.S. into those refineries, it helps displace foreign sources of crude that come from regions that are often hostile to U.S. interests.”

Environmentalist Bill McKibben, who led high-profile White House protests against Keystone XL last summer, expressed dismay about the announcement.

“No movie producer, 50 years from now, will be able to resist a scene that explains the depth of our addiction to oil: the president coming to the state that just recorded the hottest summer in American history, in the very week that the nation has seen the weirdest heat wave in its history, and promising not to slow down climate change but instead to speed up the building of pipelines,” he said in a statement.

“It’s clear that the power of the oil industry drives political decision-making in America.”

Environmentalists have mounted an extensive campaign against Keystone XL, assailing the plan to transport millions of barrels a week of bitumen — an energy source they decry as “dirty oil” — to the Gulf Coast.

The U.S. State Department has yet to make a decision on the entire length of the proposed pipeline. State Department officials are assessing the project because it crosses an international border.

In November, the State Department punted a decision on Keystone until after this year’s presidential election, citing concerns about the risks posed to the aquifer.

Pipeline proponents responded angrily, accusing Obama of making a cynical political move aimed at pacifying environmentalists and improving his chances of re-election. They insist Keystone XL will create thousands of jobs and help end American dependence on oil from often hostile OPEC regimes.

Outraged Republicans then successfully inserted pipeline provisions into payroll tax cut legislation in late December.

But within a month, facing a mid-February deadline imposed by those measures, Obama nixed TransCanada’s existing permit outright. But he also assured Prime Minister Stephen Harper that the rejection was not a reflection of the pipeline’s merits, and that Republican pressure tactics necessitated his decision.

Obama’s announcement on Thursday, at the end of a four-state tour to tout his energy policies, came as prices at gas pumps in the U.S. continue a relentless march towards $4 a gallon.

Republicans have been blaming Obama’s energy policies for rising pump prices and have been hounding him for rejecting the pipeline.

Obama pushed back in Oklahoma.

“Anyone who says that just drilling more will bring gas prices down … isn’t paying attention; they’re not playing it straight. We are drilling more. We are producing more. But the fact is, producing more oil at home isn’t enough by itself to bring gas prices down overnight.”

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