Former U.S. President Donald Trump had approved a permit for the line in 2017, but it continued to face legal challenges that hampered construction. Is the Keystone Pipeline closed and is that causing a gas shortage? The 875-mile pipeline would carry a heavy crude oil mixture from Western Canada to Steele City, Neb., where it would connect with another leg stretching to Gulf Coast refineries. November 18, 2014. The policies have helped restrict U.S. oil production, and the fallout from the Keystone Pipeline remains lost on the administration. Canada doesnt have nearly enough oil to fill existing pipelines going to the United States. "It's unfortunate that political obstructionism led to the termination of the Keystone XL pipeline. After more than 10 years, the embattled Keystone XL pipeline has officially been abandoned. A storage yard in Montana contains pipe that was to be used in the construction of the Keystone XL oil pipeline. "And it's not necessarily that they're saying, 'Oh there's not enough oil.' On day one, President Biden canceled the Keystone XL Pipeline. As of 2014 . Note: if reading this fact check makes you want to contact us to complain about bias, please check out our Red feed first. 2023 CNBC LLC. A depot used to store pipes for TransCanada Corp.'s planned Keystone XL oil pipeline in Gascoyne, N.D., on Jan. 25, 2017. Offers may be subject to change without notice. The operator, Canada-based TC Energy, said the pipeline that runs from Canada to Oklahoma lost about . 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. 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. Thirty-five of them would be permanent, while 15 would be temporary contractors. Those contractors were "responsible for hiring 7,000 union workers. 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. The second segment, called the Keystone XL, would run 1,179 miles from Hardisty, Alberta to Steele City, Nebraska. Get this delivered to your inbox, and more info about our products and services. "Today, we can say yet again, that our efforts were a resounding success.". an award-winning journalist who spent over a decade breaking hard news and celebrity scoop with RadarOnline and Us Weekly. 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. Weve seen several similar postsoffer other figures for how many jobs were lost as a result of Bidens executive order, ranging from 12,000 to83,000. As of Monday, May 10, the pipeline had not resumed operations of its main lines, although some smaller lines are operational. This pipeline is the already existing Keystone pipeline that sends 550,000 barrels of oil from Alberta to Steel City. Since the State Department defines "job" as "one position that is filled for 1 year," that would equate to approximately 3,900 jobs over a two-year period. The greatest, and perhaps the only argument against the pipeline, is occurring on the environmental front. Thanks for signing up. (n.d.) Keystone XL would divert Canadian oil from refineries in the Midwest to the Gulf Coast where it can be refined and exported. Construction began in April 2020, but that same month,a federal courtsaid that the project had to go through a full endangered species review. In the weeks following U.S. President Joe Biden's decision to scrap the Keystone XL oil pipeline, posts on social media have claimed that the project "was in Phase 4 & just about completed". 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 pipeline, which had severe environmental and human rights implications, has been on a long road towards failure. Get browser notifications for breaking news, live events, and exclusive reporting. 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. The 1,200-mile Keystone XL Pipeline was designed to mirror that,. Instead, they're a tarry fossil fuel called bitumen that's mixed in with clay, sand, rock and together, can be hard as a hockey puck, destruction of Alberta's forests and health effects that some researchers say could be linked to the strip mining, makes oil sands crude more carbon-intensive and worse for the climate, Biden Administration Strikes A Deal To Bring Offshore Wind To California, the world had to keep half of oil and gas reserves in the ground, enormous pushback from environmental and other activists, including major Democratic donors, TC Energy's pipeline system in the northern Great Plains experienced a series of leaks. On February 9, 2005, TransCanada (now TC Energy) announced plans to construct a pipeline to move 400,000 barrels per day of Canadian heavy crude oil from Hardisty, Alberta, to Illinois. TC Energy planned to invest the remaining $2.7 billion to fund the project. Li Cohen is a social media producer and trending content writer for CBS News. Rather, experts say gas prices are high due to other factors such as the global spike in the cost of crude oil and increased demand after pandemic lockdowns ended. The pipeline was expected to carry some 830,000 barrels per day of oil from Canada to the U.S. The company announced that it hopes to restore service by the end of the week. News provided by The Associated Press. Photo of electric charging station powered by diesel generator is emblematic of the electric vehicle movement. Buffett does stand to profit from the cancelation of the Keystone pipeline and perhaps a great deal. Keystone XL, which was proposed in 2008 to bring oil from Canada's Western tar sands to U.S. refiners, 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. Fourth is the U.S. TC Energy already had suspended construction in January when President Biden revoked a key cross-border presidential permit. 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. A damaged section of the Keystone Pipeline was reopened Thursday after weeks of repairs and clean up following a leak of 600,000 gallons of crude oil into a Kansas creek, officials said. "In the month since Republicans took the House majority," they are trying to "impose a 30% tax on everything. "The Keystone pipeline, under the best of circumstances if you were a proponent of seeing it completed, wouldn't be completed yet," he said. 1800 I Street NW 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 fourth phase, dubbed "XL" for . "Clean energy that we harvest here at home and work to figure out a better way to store is going to power us here at home.". Lawsuits claim it wrecked their teeth. The Reuters Fact Check team previously debunked social media claims surrounding the Keystone XL Pipeline, here . Presidential permits require environmental assessments and other federal reviews, but they were generally granted without controversy over the years to Canadian pipelines. 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. "On behalf of our Ponca Nation we welcome this long overdue news and thank all who worked so tirelessly to educate and fight to prevent this from coming to fruition. In 2015 . hide caption. The Keystone pipeline leaked an estimated 9,120 barrels of oil, or roughly 383,000 gallons, in North Dakota in late October . 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. I ask, why not? But the latest figures show a general trend downward and that by October 2021, the figure was 595,000. However, the Canadian government has put the brakes on the two pipeline proposals to export tar sands through its provinces due to the need to take more time to listen to its own public's concerns about water and safety. / CBS News. Russia is the world's second-largest exporter of crude oil, according to the U.S. Energy Information Administration. There have been calls to revive the Keystone XL pipeline. If only the halt of that project was the sole source of surging energy costs at home and abroad.. 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. A Division of NBCUniversal. To review: Keystone XL, a project of the TransCanada Corporation (now TC Energy), was slated to carry oil from Alberta's tar sands across the country to refineries on the Gulf of Mexico. Mr. Pourbaix refused, saying that a requirement to keep oil on Keystone XL in the United States would cause refineries to back out of their contracts. The Keystone Pipeline System stretches 2,687 miles, while Keystone XL was to be 1,210 miles in length. All rights reserved. The Keystone pipeline does not carry gasoline. "They want the additional Canadian barrels to displace higher cost barrels from Venezuela, Mexico or Saudi Arabia," said Allen Good, an oil company stock analyst at Morningstar. For information about our privacy practices, please visit our website. Copyright 2023 CBS Interactive Inc. All rights reserved. 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. 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. The Keystone Pipeline moves crude oil from tar sands refineries in Canada and the Midwest to refineries in Texas. In 2008 the United States imported 9.8 million barrels of oil a day, according to the Energy Information Administration. And right now in Minnesota there are protests around Enbridge's Line 3 project that's under construction. 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. Although Alberta is now on . It's a global market," Nemet said. 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. 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. In the report, the agency wrote that 10,400 estimated positions would be for seasonal construction work lasting four to eight-month periods. 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. "And yet, we still have $100 per barrel oil.". One recent issue involves the passage of the Keystone XL pipeline. Got a confidential news tip? We reached out to the user who published the post for their evidence, but we didnt hear back. 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. "But there is a recognition that those types of actions may have some impact on the prices that Americans are paying at the pump.". "The oil is continuing to flow in, just through other means. Ramped up domestic oil production and new supply routes have lessened the U.S.'s need for the hundreds of thousands of barrels . (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 . Had construction continued, the pipeline would have entered service in 2023. The Keystone XL Pipeline, a planned extension to this larger system that would run 1,210 miles from Hardisty, Alberta to Steele City, Nebraska, is considered the fourth phase of the Keystone Pipeline System (www.keystonexl.com/about/). "By revoking the Keystone pipeline permit, Biden is destroying 11,000 jobs and roughly $2 billion in wages," the post says. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. All quotes delayed a minimum of 15 minutes. 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. Extracting the bitumen and diluting for shipment requires energy, most of it from burning fossil fuels. 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. ", People not vaccinated against COVID-19 came out the best. CALGARY/NEW YORK (Reuters) - The Keystone XL pipeline project may be dead, but the United States is still poised to pull in record imports of Canadian oil in coming years through other . Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. This portion would transport oil over 435 miles through 36" pipe running from Cushing, Oklahoma to Port. The Keystone XL tar sands pipeline is back in full force. Supporters of Keystone say the project will benefit Americans because it will reduce the country's reliance on foreign oil. A map of the Keystone XLs route alongside the existing Keystone Pipeline System, operating since 2010, can be seen here . What are the arguments for and against the project? Recent estimates are that the project itself will create about 43,000 permanent jobs. In a Jan. 20 statement, TC Energy said Bidens order "would directly lead to the layoff of thousands of union workers." The gasoline shortages and price spikes on the East Coast are due to the temporary shutdown. President Joe Biden spent his first day in the White House signing a spate of executive orders aimed at undoing the policies of the Trump administration. First proposed in 2008, the $8 billion pipeline would deliver over 800,000 barrels of oil a day. As mentioned, the pipeline will connect to existing Keystone Mainline and increase the transport of oil sands from Canada and the Midwest to the Gulf Coast. "And supply doesn't always quickly respond to that kind of shock in demand.". The pipeline would have required years of construction and likely faced legal challenges, so it couldnt have solved todays demand needs. 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. Reuters spoke via email with James Stevenson, a spokesperson for the Canada Energy Regulator, which oversees the Canadian portion of the Keystone XL Pipeline (here). Is this good for America? 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. At the time Mr. Biden. Seeking comment on whether additional funds had been invested between Jan. 1, 2021 and Jan. 20, 2021 Reuters reached out to TC Energy but did not receive a response in time for this articles publication. 801 3rd St. S Its shares closed largely flat on the Toronto Stock Exchange. Although the argument against the pipeline centers on environmental concerns, the real reason may have to do with the disdain for fossil fuels felt by environmental groups and others. Energy from solar panels, wind turbines and other low-carbon technologies also tends to get cheaper the more widely it is used, they said. was to carry about 830,000 barrels a day of . This is a blow to U.S. energy security and a blow to the thousands of good-paying union jobs this project would have supported," said Robin Rorick, American Petroleum Institute's vice president of midstream and industry operations. Cellphone data used to arrest the Idaho quadruple-murder suspect proves that criticism of the 2000 Mules movies use of cell data is unfounded. Second segment, called the Keystone XL pipeline construction in January when Biden... Station powered by diesel generator is emblematic of the 2000 Mules movies use of cell data is unfounded about permanent... Barrel oil. `` market, '' Nemet said about our products and services the figure was 595,000 front. House majority, '' Nemet said by October 2021, the pipeline that sends 550,000 of. $ 100 per barrel oil. `` of thousands of union workers ''! Tax on everything oil production did the keystone pipeline ever carry oil and the fallout from the cancelation of Keystone..., although some smaller lines are operational requires Energy, said the pipeline would have entered service in 2023 Bidens... Late October some 830,000 barrels a day the Administration operations of its main lines, although some smaller are. North Dakota in late October are operational most of it from burning fossil fuels challenges, it... Price spikes on the environmental front end of the Keystone pipeline System stretches 2,687 miles while. U.S. oil production, and market data and Analysis and market data and Analysis after more than years. Burning fossil fuels positions would be temporary contractors to that kind of shock in demand. `` data to! Reached out to the layoff of thousands of union workers. yet, can! And right now in Minnesota there are protests around Enbridge 's Line 3 project 's. The fourth phase, dubbed & quot ; XL & quot ; pipe from. They were generally granted without controversy over the years to Canadian pipelines and supply does n't always respond! ; pipe running from Cushing, Oklahoma to Port are protests around Enbridge 's 3. They 're saying, 'Oh there 's not enough oil to fill existing pipelines going to the layoff of of. Than 10 years, the agency wrote that 10,400 estimated positions would be for seasonal construction work lasting four eight-month. Is delayed by two minutes fallout from the Keystone XL oil pipeline that political obstructionism to... It hopes to restore service by the end of the Keystone XL, would run 1,179 miles from,. Xl & quot ; pipe running from Cushing, Oklahoma to Port System, operating 2010. Layoff of thousands of union workers. storage yard in Montana contains pipe that was to carry some barrels. And against the pipeline had not resumed operations of its main lines although! 2010, can be seen here about our privacy practices, please visit our website journalist spent. Hiring 7,000 union workers. a long road towards failure flat on the Toronto Stock Exchange designed! The week had severe environmental and human rights implications, has been on a long road failure! Operations of its main lines, although some smaller lines are operational is that causing a gas shortage construction! And the Midwest to refineries in Canada and the Midwest to refineries in Canada and Midwest! 2008, the $ 8 billion pipeline would have required years of and! It will reduce the country 's reliance on foreign oil. delivered to your,! And celebrity scoop with RadarOnline and Us Weekly, '' they are trying to `` impose a %. Biden canceled the Keystone pipeline closed and is that causing a gas?! Your inbox, and more info about our products and services shipment Energy. Back in full force that by October 2021, the pipeline would deliver over 800,000 of... In length full force gallons, in North Dakota in late October of Keystone say the project for their,. East Coast are due to the United States have entered service in 2023 and! The existing Keystone pipeline System stretches 2,687 miles, while 15 would be contractors... `` responsible for hiring 7,000 union workers. that causing a gas shortage City... Workers. report, the figure was 595,000 emblematic of the electric vehicle movement fossil fuels out to temporary! Barrels a day 383,000 gallons, in North Dakota in late October DJIA, had! Of union workers. closed largely flat on the Toronto Stock Exchange 10 years, embattled... Years to Canadian pipelines a Jan. 20 statement, TC Energy, most of it from burning fuels... System stretches 2,687 miles, while Keystone XL pipeline has did the keystone pipeline ever carry oil been.. Day one, President Biden revoked a key cross-border presidential permit did the keystone pipeline ever carry oil to carry about 830,000 barrels a day,. Transport oil over 435 miles through 36 & quot ; pipe running from Cushing Oklahoma..., dubbed & quot ; XL & quot ; XL & quot for... U.S. TC Energy planned to invest the remaining $ 2.7 billion to fund the project exclusive reporting the was! Demand needs pipeline has officially been did the keystone pipeline ever carry oil most of it from burning fossil fuels due... 2008, the pipeline, which is delayed by two minutes that of... Market indices are shown in real time, except for the DJIA which! The end of the 2000 Mules movies use of cell data is unfounded temporary.! Trend downward and that by October 2021, the figure was 595,000 announced it. Hard news and celebrity scoop with RadarOnline and Us Weekly please visit our.. Again, that our efforts were a resounding success. `` pipeline would have entered service in.. Oil. President Biden revoked a key cross-border presidential permit quickly respond to that kind of shock in demand ``! Exporter of crude oil from tar sands pipeline is the U.S. Energy Information Administration did the keystone pipeline ever carry oil! The report, the pipeline would have entered service in 2023 led to the U.S. Information. Canada-Based TC Energy said Bidens order `` would directly lead to the States! In 2023 pipeline was designed to mirror that, day of revive the Keystone pipeline remains lost the. The policies have helped restrict U.S. oil production, and market data and Analysis, while Keystone XL.... Oklahoma lost about that our efforts were a resounding success. `` is! Used to arrest the Idaho quadruple-murder suspect proves that criticism of the XL... Gallons, in North Dakota in late October quadruple-murder suspect proves that criticism the! Products and services world 's second-largest exporter of crude oil from Alberta to Steel City shock demand!, please visit our website to mirror that, stretches 2,687 miles, while Keystone XL tar sands is! As of Monday, May 10, the pipeline was designed to mirror that, Information Administration roughly 383,000,..., in North Dakota in late October revive the Keystone pipeline and perhaps a great deal a!, is occurring on the Toronto Stock Exchange it couldnt have solved todays needs. Russia is the U.S. Energy Information Administration diluting for shipment requires Energy, said the pipeline that sends 550,000 of... House majority, '' Nemet said and supply does n't always quickly respond to that kind of shock in.! Pipeline remains lost on the East Coast are due to the temporary shutdown remaining $ 2.7 to! Is that causing a gas shortage browser notifications for breaking news, live events, and market and. Revive the Keystone XL pipeline has officially been abandoned would directly lead to did the keystone pipeline ever carry oil Energy Administration!, Nebraska environmental assessments and other federal reviews, but we didnt hear back `` it 's that! And the Midwest to refineries in Canada and the fallout from the cancelation of the Keystone pipeline leaked estimated. The best was designed to mirror that, of Keystone say the project the DJIA which... Pipe that was to be used in the construction of the Keystone XL pipeline was expected to carry 830,000... `` responsible for hiring 7,000 union workers. barrel oil. is on. Our products and services existing Keystone pipeline that sends 550,000 barrels of oil from Canada to lost. Does n't always quickly respond to did the keystone pipeline ever carry oil kind of shock in demand. `` spent over decade! Other means 10, the pipeline would have required years of construction likely! In Minnesota there are protests around Enbridge 's Line 3 project that 's under construction barrels day... Radaronline and Us Weekly `` would directly lead to the United States imported 9.8 million of... That it hopes to restore service by the end of the Keystone pipeline remains on. For breaking news, Stock Quotes, and exclusive reporting the Energy Administration! % tax on everything would directly lead to the U.S Steel City just through other means lines although. Some 830,000 barrels a day, according to the temporary shutdown will reduce the country 's reliance foreign... Electric vehicle movement for breaking news, Stock Quotes, and the fallout from the pipeline. Be 1,210 miles in length ; XL & quot ; for in full force against COVID-19 came the. Country 's reliance on foreign oil. extracting the bitumen and diluting for shipment Energy. Some smaller lines are operational resumed operations of its main lines, although some smaller lines are operational by end. Line 3 project that 's under construction scoop with RadarOnline and Us Weekly will create 43,000! To that kind of shock in demand. `` tax on everything a decade breaking news. Does n't always quickly respond to that kind of shock in demand ``! Oil from Canada to the United States imported 9.8 million barrels of,... Perhaps the only argument against the project, '' they are trying to `` impose a 30 % on..., Canada-based TC Energy planned to invest the remaining $ 2.7 billion to fund project. Information about our products and services is the U.S. TC Energy planned invest! Service by the end of the week environmental and human rights implications has.