President Says “No” to Keystone Pipeline – For Now.

23 Jan 2012

Photo credit: rcbodden @ Flickr

As I predicted in my Looking Ahead To 2012 post, President Obama and Congress started the new year locked in a politically charged dispute over the Keystone XL pipeline, a proposed 1,700-mile oil pipeline from Canada to Texas.  The pre-Christmas agreement between the President and Congress, which temporarily extended the payroll tax cut, included language forcing Obama to make a quick decision on whether to allow the building of the pipeline.  Last week, the President rejected the application.

As I mentioned before, the $7 billion pipeline poses a political trap for the President because it divides his supporters (environmentalists oppose the project while most labor unions support it).  The President, rather than coming out in favor of either side, punted on the issue claiming that he simply didn’t have enough time to fully assess the pipeline’s impact.  The Republicans, in turn, are furious claiming that the construction of the pipeline (which, by the way, would not go through Michigan) would immediately create up to 20,000 jobs at zero cost to the taxpayers – so I’m sure that this matter is far from dead.

Leave a Comment to “President Says “No” to Keystone Pipeline – For Now.”

  1. Susie Tachna 02. Feb, 2012 at 5:19 am #

    My understanding is that not all Republicans are in favor of the pipeline. Nebraska cattle ranchers, including those that are Republican, are worried about the pipeline’s threat to the Ogallala Aquifer and the impact that any potential damage to the aquifer would have on cattle ranching.

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