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. The Keystone Pipeline moves crude oil from tar sands refineries in Canada and the Midwest to refineries in Texas. "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.". If only the halt of that project was the sole source of surging energy costs at home and abroad.. And right now in Minnesota there are protests around Enbridge's Line 3 project that's under construction. With Americans facing the worst inflation in 40 years, would expanding Keystone offer much relief at the pump? Therefore, about 8% of the planned 1,210-mile XL extension had been built by the time President Biden revoked the permit. 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. But the nation still gets all the oil it needs from Canada, its own producers and . From there, refined petroleum products could be sold either in the U.S. or to foreign buyers. There is also an argument on the impact it may have on the long-term use of land and the harm it may cause to agriculture and cattle grazing. 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. We use Mailchimp as our marketing platform. Oil sands require more processing than conventional crude. 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. The project must also be in the national interest of the United States. Trump revived hopes for the project once he took office, ultimately approving it with an executive order. But the latest figures show a general trend downward and that by October 2021, the figure was 595,000. The pipeline would have required years of construction and likely faced legal challenges, so it couldnt have solved todays demand needs. National Association of Manufacturers CEO on Biden's canceling of the Keystone XL pipeline. "It wouldn't be online and wouldn't be pumping oil until the year 2023. Copyright 2023 Politifact. "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. Gasoline is actually one of the nation's largest exports, going mostly to Latin America. https://leadstories.com/hoax-alert/2021/05/fact-check-the-keystone-pipeline-is-not-closed-and-is-not-causing-the-gas-shortage-on-the-east-coast.html, Alexis Tereszcuk is a writer and fact checker at Lead Stories and. 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. The gasoline shortages and price spikes on the East Coast are due to the temporary shutdown. With inflation soaring, gas prices have been increasing for months hitting an average of$4.33 a gallon on March 11, according to AAA. 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 Department of State, in consideration of the permit, must examine the potential impact of the pipeline on the environment, the economy, U.S. energy security, and foreign policy plus a few additional items. 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. Market Realist is a registered trademark. TC Energy had begun construction on the pipeline last year and said about 300 miles of the $8 billion project had been built. The Obama-era State Department had denied TC Energys request for a permit in 2015. The pipes pass through North Dakota, South Dakota, Nebraska, Kansas, Missouri, and Oklahoma. Keystone XL would have passed through Nebraska, and for years, a coalition of Indigenous tribes, ranchers and local environmentalists demonstrated, lobbied and sued to halt the pipeline's construction. Why now? Let us know!. ", Feb. 26, 2022, Alberta.ca, "Pipeline Project - Keystone XL," accessed Feb. 28, 2022. The Keystone XL tar sands pipeline is back in full force. Three lawmakers from Pennsylvania, including Pittman, are hoping Biden will allow TC Energy to continue with Keystone XL pipeline construction so that the U.S. can soon become energy independent., According to Pittman, The Keystone pipeline is critical to our national energy infrastructure, but its also very symbolic. 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. Canada doesnt have nearly enough oil to fill existing pipelines going to the United States. As the Entertainment Editor, she investigated Hollywood stories and conducted interviews with A-list celebrities and reality stars. 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. Opponents of the line fought its construction for years, saying it was unnecessary and would hamper the U.S. transition to cleaner fuels. The policies have helped restrict U.S. oil production, and the fallout from the Keystone Pipeline remains lost on the administration. First, it can be upgraded into syncrude which is a light crude. All rights reserved. None of this means Warren Buffett had anything to do with Biden's decision to spike the Keystone Pipeline. "Whenever there is political instability in places that produce a lot of oil, markets react," Nemet said. The Keystone XL Pipeline consists of two parts. The total capacity of both is expected to be about 1.3 million bpd. 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. Morningstar: 2019 Morningstar, Inc. All Rights Reserved. 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. A storage yard in Montana contains pipe that was to be used in the construction of the Keystone XL oil pipeline. The developer has now canceled the controversial project. But both TC Energy and the State Department have said the majority of those jobs would be temporary. Lead Stories is a U.S. based fact checking website that is always looking for the latest false, misleading, deceptive or 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. Most stock quote data provided by BATS. One recent issue involves the passage of the Keystone XL pipeline. When you sign up you'll become a member of NRDC's Activist Network. So, it actually would have nothing do with the current supply imbalance. The company behind the controversial Keystone XL oil pipeline said Wednesday it's officially terminating the project. "We remain disappointed and frustrated with the circumstances surrounding the Keystone XL project, including the cancellation of the presidential permit for the pipeline's border crossing," Alberta Premier Jason Kenney said in a statement. 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 announcement ends a more than decade-long battle that came to signify the debate over whether fossil fuels should be left in the ground to address climate change. Legal challenges continued against it, further stalling the project. ", "We're all mindful of the pain that Americans are feeling at the pump right now, but the best way to eliminate pain at the pump in the long run is to get rid of the pump altogether," Kieve said. The project has become a matter of intense debate in the United States. The Keystone Pipeline in North Dakota was shut down after it leaked oil. Its symbolic of whether or not were willing to embrace the natural resources that we have in our country. Recent estimates are that the project itself will create about 43,000 permanent jobs. 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. It's a global market," Nemet said. Those contractors were "responsible for hiring 7,000 union workers. Hundreds of opponents rallied there this week, calling on Biden to stop that project, too. In 1991, a pipeline rupture spilled 1.7 million gallons of crude oil into the Prairie River near Grand Rapids, Minn., in the largest inland U.S. oil spill. Senator Joe Pittman said the U.S. imports around 800,000 barrels of oil per day from Russia, reports CBS Pittsburgh News. Some also carry diluted bitumen, the heavy crude from the tar sands that has a much higher. 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. The dog dewormer fenbendazole can cure cancer in humans. The Biden administration has repeatedly pushed back against proposals to revive the pipeline expansion. Although the extraction of oil sands is increasing in the U.S., transportation options from the Midwest to the Gulf Coast are limited. ", "New government-funded 'food pyramid' says Lucky Charms are healthier than steak. inaccurate stories, videos or images going viral on the internet. Biden's. 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. 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. 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 its not as simple as substituting one source for the other. In 2008 the United States imported 9.8 million barrels of oil a day, according to the Energy Information Administration. The pipeline, which had severe environmental and human rights implications, has been on a long road towards failure. 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. The portion of the Keystone Pipeline System that's already built runs from the North Dakota border south through South Dakota to Steele City, Nebraska, where it splits. Part of the pipeline runs east through Missouri while the other part runs through Oklahoma and into Texas. This story begins in Hardisty, Alberta, Canada with a company called TransCanada. Presidential permits require environmental assessments and other federal reviews, but they were generally granted without controversy over the years to Canadian pipelines. Video shows President Joe Biden recalling an alien encounter. Both of these forms can be transported by pipeline. The claim appeared as a post (archived here) published on Facebook on May 10, 2021. Spotted something? 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 XL, an expansion of an existing North American pipeline, would have carried 830,000 barrels of crude oil from Alberta, Canada, to Nebraska dailyat its peak. 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. Canada is our largest trading partner and is important to U.S. job creation. The. The Keystone XL pipeline was designed to carry tar sands oil from Alberta, Canada, to Nebraska, where it would have connected to the Keystone Pipeline System. Canadians, including Indigenous peoples, have benefited economically from the oil sands mining. 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. So "here's the deal": The Keystone XL pipeline was going to be built to offset declining imports from Venezuela, because Canadian oil is the same type as what they produce in Venezuela. (n.d.) The Keystone XL Pipeline is a proposed 1,700 mile expansion to the current pipeline, which would branch west, impacting an additional state, Montana, and end in Cushing Oklahoma. 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. Factset: FactSet Research Systems Inc.2019. Get this delivered to your inbox, and more info about our products and services. That means the nation's refineries are producing more gasoline, diesel fuel and other oil products than the country needs, and exporting the rest. All times are ET. The Keystone Pipeline System is an oil pipeline system that runs between Canada and the United States. TC Energy already had suspended construction in January when President. US President Joe Biden has cancelled permits for the controversial Keystone XL pipeline on his first day in office. But the pipeline would have required years of construction and likely faced legal challenges, so it couldnt have solved todays demand needs. The Keystone XL pipeline would then connect to existing pipelines and transport oil to refineries along the Gulf Coast. We rate it Half True. The Drought In The Western U.S. Is Getting Bad. Thanks largely to better fuel economy and higher prices, the long-term demand for gasoline in the United States is either flat or declining. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. However, existing Canadian oil pipelines all go to the Midwest, where the only buyer for their crude is the United States. 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). In fact, TransCanada refused to support a requirement that oil on Keystone XL be used in the United States in a recent Congressional hearing. There have been calls to revive the Keystone XL pipeline. The Reuters Fact Check team previously debunked social media claims surrounding the Keystone XL Pipeline, here . The pipeline was set to carry oil 1,200 miles (1 . Although the project was stopped before it could even reach a quarter of completion, the Keystone Pipeline System is fully functional today. Heres point number one: The Keystone XL Pipeline is nothing new. Colonial Pipeline shut down distribution on May 7, 2021, following the cyberattack. 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. For example, the pipeline will increase the diversity of the U.S. petroleum supply. By 2012 that number jumped to 3.2 million barrels. "The oil is continuing to flow in, just through other means. The Environmental Protection Agency is the second group. An estimate from the Canadian Energy Research Institute in 2011 estimated that new oil sands development in Canada would create about 444,000 new U.S. jobs and generate about $521 billion in U.S. government revenue over the next two decades. Al Nash/Bureau of Land Management via AP The. As a result of those environmentally-friendly construction priorities, Keystone XL was said by some to be a "model for green pipelining," the Journal reports. The pipeline was expected to stretch from Alberta to Nebraska, allowing 830,000 barrels of oil sands crude to be carried into the U.S. a day, reports Reuters. I believe we should let the project continue, which is exactly what I expect will happen in early 2015. 2023 CNBC LLC. "Keystone would have helped ease those fears while giving America the flexibility to counter Russian aggression by expanding energy exports to Europe," she wrote. As of 2014 . Could the Keystone XL pipeline help lower U.S. gas prices? (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 . keep you informed with the latest alerts and progress reports. 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. The punishing economic sanctions imposed by the West on Russia for its invasion ofUkraine have roiled global energy markets, with a U.S. ban on Russian oil imports further pushing up gas prices for Americans. ", Rifles were involved in 297 deaths in the U.S. in 2022 and constipation killed 2,167.. It's true that the 830,000 barrels a day the pipeline is slated to carry would probably replace some of the 2 million barrels a day of heavy oil currently imported to the Gulf Coast. "That trend will continue whether Keystone is built or not," said Brian Milne, a refined fuels editor at Schneider Electric, an information provider. It seems as though the polarization of the United States is increasing. Related: If Wall Street's right, Obama may nix Keystone. Expanding the Keystone would have increased global oil production by less than 1%, an amount, they explained, is "almost negligible. On his first day in office, President Joe Biden signed an executive order revoking the permit for the Keystone XL pipeline, halting its construction in the U.S. TC Energy estimated in October that the pipeline would employ 11,000 Americans in 2021, generating more than $1.6 billion in wages. 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. hide caption. "And yet, we still have $100 per barrel oil.". "For 13 years, an international movement of frontline communities in the U.S. and Canada, Indigenous leaders, and environmentalists fought back against this terrible proposed project at every turn," Sierra Club Executive Director Michael Brune said in a statement. The company announced that it hopes to restore service by the end of the week. But the Trump administration revived the pipeline in early 2017. The State Department estimated full-time permanent jobs to be closer to 50. This pipeline is the already existing Keystone pipeline that sends 550,000 barrels of oil from Alberta to Steel City. 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). 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.". Extracting the bitumen and diluting for shipment requires energy, most of it from burning fossil fuels. 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