Isra-Mart srl: Obama stands firm on Keystone XL oil pipeline

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Isra-Mart news:

US President Barack Obama has refused to speed up a decision on the proposed $7bn oil pipeline to link Canada's oil sands with refineries in Texas, rejecting calls from Republicans to tack the project on to renewal of a soon-to-expire payroll tax cut.

Speaking to reporters after meeting Canadian President Stephen Harper at the White House, Obama said it was important the potential environmental impact of the 1,700-mile Keystone XL pipeline was thoroughly examined before a decision is made.

"With respect to the politics, look, this is a big project with big consequences," he said. "We've seen Democrats and Republicans express concerns about it. And it is my job as President of the United States to make sure that a process is followed that examines all the options."

Keystone XL would transport around 700,000 barrels of oil each day through Montana, South Dakota, Kansas, Nebraska and Oklahoma before reaching the Texas coast. Supporters claim it would bring much needed jobs and reduce the country's reliance on Middle Eastern oil imports.

But opponents argue the pipeline would merely import "dirty" oil, which requires huge amounts of energy to extract. They are also concerned about the risk of environmental contamination, given a current pipeline operated by TransCanada has had several spills in the past year.

Obama faced down pressure from both Canada, which relies on the US for 97 per cent of its energy exports, and Republicans to delay a decision on Keystone until 2013, after the next election, providing time for a full environmental review of the project.

However, Republicans are continuing to push for the project to be given the green light and have argued that approval should form part of a deal that could see the GOP approve soon-to-expire payroll tax breaks that Democrats urgently want to see extended.

But yesterday Obama said he would reject any attempts to tie approval of the project to the proposed extension of the payroll tax cut, which is set to expire on 1 January. However, he stopped short of threatening a veto if the bill does move forward.

Senate Minority Leader Mitch McConnell, a Republican from Kentucky, urged the President to rethink, saying the pipeline offered Obama the chance to follow through on his pledge to make job creation a top priority.

He said: "Here's the single greatest shovel-ready project in America, ready to go, and for some reason he's suddenly not interested."