Published: Mon, April 03, 2017
Business | By Patricia Jimenez

Donald Trump approves Keystone XL pipeline


Today, President Donald Trump together with the U.S. State Department have signed and issued a presidential permit to construct the Keystone XL pipeline.

Supporters of the pipeline say that the construction project will bolster job development in the United States.

During an Oval Office ceremony Friday, TransCanada CEO Russell Girling thanked Trump for pushing the pipeline, and he called it "a very, very important day" for the company.

The company has a total of US$15 billion in investment in oil and natural gas "that will create thousands of well-paying jobs and generate substantial economic benefits across the USA". It re-applied with the Nebraska Public Service Commission this year. Obama vetoed a bill supporting the pipeline in 2015 and eventually passed it over to the State Department for review.

TransCanada, the Calgary-based company, has been trying to secure approval for the pipeline for almost 10 years.

Though the Keystone XL now has the backing of the White House, it seems likely that it will continue to be met with resistance.

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Many of those jobs will be temporary. "Canadian border", according to a statement from the department.

A 2015 study funded by the Department of Energy found that the oil sands from Canada emit 18% more greenhouse gases when processed into gasoline than that processed from traditional US crude. "The environmental aspect of the deal, which would increase heavy Carbon dioxide emitting Canadian tar sand production, may still cause a long delay before the pipeline is eventually being built".

Standing Rock Sioux Chairman Dave Archambault says the tribe will oppose the newly approved Keystone XL pipeline on all fronts. In a 2014 report, the State Department projected the pipeline would support 3,900 in construction jobs.

Girling said in the White House gathering that TransCanada "had some work to do" to secure permits in the state. "I'm glad President Trump took quick action to approve this critical infrastructure project. Nebraska has a great governor".

The idea is that it would carry crude oil from where it's produced to where it's refined, TransCanada's website says. The pipeline would move roughly 800,000 barrels of oil per day, more than one-fifth of the oil Canada exports to the U.S. When it was first proposed, the United States was very much dependent on oil from the Middle East, but domestic production has almost doubled in recent years. He added the pipeline will begin making things right again.

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