Dive Brief:
- President Barack Obama announced Friday his rejection of the Keystone XL Pipeline proposal after seven years of review.
- Obama cited environmental concerns for his decision and said, "The pipeline would not make a meaningful long-term contribution to our economy."
- TransCanada's plan for the 875-mile northern portion of the pipeline was estimated to cost $8 billion to build. Proponents of the project touted its economic benefits, while opponents brought up environmental concerns of its oil extracting process.
Dive Insight:
"While our politics have been consumed with whether this pipeline would increase jobs and lower gas prices, we have increased jobs and lowered gas prices," Obama said.
Although proponents of the pipeline cited construction employment benefits as one of the main selling points, a State Department analysis found the project would create 42,000 temporary new jobs and 3,900 in the construction field — but only 35 of them would become permanent.
In February, Obama vetoed the measure after the House sent it to his desk "because this act of Congress conflicts with established executive branch procedures and cuts short thorough consideration of issues that could bear on our national interest—including our security, safety, and environment," he said.
Although some Congressional Republicans said they will keep pushing the issue and try to keep the project alive, the effort is considered "dead." However, Grist noted that if TransCanada resubmits its application for the pipeline after the next election under a Republican administration, it could still be approved. TransCanada did not offer any comment after Obama's announcement Friday.
