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State Department to Announce KeystoneXL Pipeline Rejection

It has been reported that later on this afternoon the State Department will announce that it will not allow the construction of the KeystoneXL Pipeline:

The State Department is expected to deny a permit for the controversial Keystone XL pipeline on Wednesday afternoon, sources told National Journal.

The announcement is expected at 3 p.m. by Deputy Secretary of State William Burns, the sources said.

Rejection of the permit would not necessarily kill the 1,700-mile project to carry oil from Canada’s tar sands to refineries in Texas, however.

TransCanada will be allowed to reapply for a permit after altering the pipelines route through Nebraska, and more importantly for President Obama, delaying the contentious decision until after his re-election campaign.

Despite the (second) delay, this issue is far from over. Look for the Republicans to hammer Obama on hampering energy security and job creation, while Democrats will argue that Republicans forced Obama to veto the pipeline and that the nations focus should be on renewable energy campaigns. The oil needs to get out of Canada, so eventually the pipeline will be built.

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