President Barack Obama announced today that his administration is rejecting the application for the Keystone XL Pipeline, which would take oil sands from Alberta, Canada to the Gulf Coast of the U.S. In a statement I’ve posted after the jump, the president blamed Congressional Republicans, who attached a “rushed and arbitrary deadline” for the Keystone decision to the temporary payroll tax cut extension bill in December.
Obama’s decision takes the pipeline off the table for now. House Republicans may look for ways to override the administration’s decision, but the Democratic-controlled Senate is unlikely to approve such legislation this year. However, all bets are off after the 2012 elections. TransCanada may resubmit its application after finding a different route through Nebraska.
By this summer, I predict that “Keystone” will be a household word in the U.S., as Republicans and corporate-funded groups blame Obama’s decision for rising gasoline prices and continued high unemployment. Environmental groups that have opposed the pipeline have a huge public education task on their hands.
UPDATE: I’ve added Representative Steve King’s reaction after the jump.
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