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Trump approves Keystone XL pipeline, hails 'great day' for jobs
By Heather SCOTT
Washington (AFP) March 24, 2017


Key facts about controversial Keystone XL pipeline
Washington (AFP) March 24, 2017 - US President Donald Trump on Friday approved the construction of the controversial Keystone XL oil pipeline between Canada and the United States following years of bitter and politically-charged debate.

The move reverses a decision in 2015 by his predecessor Barack Obama to block the project, which was first proposed in 2008.

Here are key facts about the project:

What is Keystone XL?

Keystone XL was an expansion of TransCanada's existing system to funnel bitumen from Alberta's oil sands to refineries on the US Gulf Coast.

The portion blocked by the Obama administration was a $5.3 billion proposal to build a 1,179-mile (1,900 kilometer) pipeline from Alberta, Canada to Nebraska.

The pipeline would carry 830,000 barrels of oil per day.

Why is it so controversial?

For many, the objections to the pipeline were a proxy for their fight against climate change. Environmental activists say Alberta's oil sands are the "dirtiest" oil on the planet. Unlike traditional crude which gushes from a well, bitumen from the oil sands must be dug up or extracted by underground heating, essentially using steaming hot water to separate it from the sandstone before it can be refined.

This means more fossil fuels need to be burned as part of the extraction process, which further contributes to climate change.

It also takes vast amounts of water resources and results in huge ponds of polluted water and the strip-mining of once-pristine boreal forests.

The oil sands underlie 142,000 square kilometers (55,000 square miles) but the industry says only two percent of the surface area is affected by open pit mines.

Environmentalists argue that crude bitumen also contains a corrosive component, which makes pipeline ruptures or leaks more likely and carries greater health and safety risks.

Economic impact?

TransCanada says Keystone would provide a $3.4 billion boost to US gross domestic product (GDP), including $55.6 billion in annual property taxes spread across 27 counties in three states.

The State Department estimated the route would create 42,000 temporary jobs over a two-year construction period.

Opponents note that less than 50 permanent jobs would be created for pipeline maintenance and argued that the project would kill more jobs than it creates by diverting investment away from more labor-intensive green energy alternatives like wind and solar power.

Energy security

TransCanada argued that bringing another 830,000 barrels of oil a day from friendly, neighboring Canada would reduce US dependence on the Middle East and Venezuela by up to 40 percent.

Safety

TransCanada argued that buried pipelines are far safer for transporting oil than ships or trains and claims to have "one of the best safety records in the industry." It also notes that there are more than 2.6 million miles of oil and gas pipelines in the United States "that deliver 99.9998 percent of their products safely and reliably every day."

The pipeline would be equipped with 21,000 sensors that provide updates every five seconds via satellite and the ability to isolate a problem within minutes through remote-controlled valves.

Critics note the existing Keystone pipeline developed a dozen leaks in its first year of operation.

True to his pledge, President Donald Trump gave final approval on Friday for TransCanada to build the controversial Keystone XL oil pipeline, overriding environmental concerns in favor of boosting jobs and energy supply.

"It's a great day for American jobs and a historic moment for North America and energy independence," Trump said at the White House.

He also promised to call the governor of Nebraska to help the company secure the necessary construction permits.

But the project continues to face stiff opposition from environmental groups.

Trump's predecessor Barack Obama blocked the project, first proposed in 2008, due to environmental concerns, but Trump says the pipeline will create thousands of jobs and provide affordable energy.

During the US presidential campaign, Trump repeatedly promised to approve the pipeline, and one of his first acts after taking office in January was to give a conditional go-ahead, as well as approving the controversial Dakota Access pipeline that was subject to months of mass protests.

The projects are all part of his plan to boost the economy, improve infrastructure, slash regulations and reduce government interference he says is hindering business.

But the jobs promise is subject to dispute. The State Department estimated that the US portion of the pipeline would create 42,000 temporary jobs over a two-year construction period, but opponents note that less than 50 permanent jobs would be created for pipeline maintenance.

- Funneling crude -

Keystone XL is an expansion of TransCanada's existing system to funnel bitumen from Alberta's oil sands to refineries on the US Gulf Coast.

The portion Trump approved was a $5.3 billion proposal to build a 1,180-mile (1,900 kilometer) pipeline to Nebraska, which would carry 830,000 barrels of oil per day.

After a new US review of the project, Under Secretary of State Thomas Shannon issued the presidential permit, concluding that it would "serve the national interest," the State Department said Friday.

Canadian Prime Minister Justin Trudeau, who has backed the Keystone project, said in French that his government was "very pleased" with the US announcement, according to an interpreter.

"Getting our products out to market is essential for Canadian economic growth," he said.

TransCanada thanked the US administration for reviewing and approving the delayed project.

"This is a significant milestone for the Keystone XL project," TransCanada president and chief executive Russ Girling, who was with Trump at the White House, said in a statement.

The company has a total of $15 billion in investment in oil and natural gas "that will create thousands of well-paying jobs and generate substantial economic benefits across the US."

But TransCanada still must work with authorities and residents to obtain the necessary permits and approvals for construction in Nebraska, Montana and South Dakota, the company said.

Protestors supporting the Standing Rock Sioux Native American tribe for many months blocked completion of a section of the Dakota Access pipeline in North Dakota, until the Trump administration overrode their concerns and approved the construction.

- Environmental protests continue -

Environmental groups immediately expressed outrage at the Keystone XL approval and vowed to continue to fight the project, so the company could face obstacles at the state and local level. One protest is set for Friday evening at the White House.

Michael Brune, head of the Sierra Club, the largest US environmental organization, called the pipeline approval "yet another decision made by Trump that would be disastrous for our climate, our communities, and our health."

He warned in a statement that the "dirty and dangerous" project "faces a long fight ahead in the states."

Greenpeace Canada's Mike Hudema released a statement saying the pipeline "won't see the light of day."

"The fight is far from over," he said, promising "widespread opposition in Canada and the US" to the company and the financial institutions that support the project.

Opponents object to the pipeline because it further promotes the use of fossil fuels -- although there already are hundreds of oil and gas pipelines crisscrossing the United States -- but also say Canada's oil sands are particularly harmful.

Canada is the world's sixth-largest oil producer thanks to the Alberta oil sands.

Unlike traditional crude which gushes from a well, bitumen from the oil sands must be dug up or extracted by underground heating, essentially using steaming hot water to separate it from the sandstone before it can be refined.

This takes vast amounts of water resources and results in huge ponds of polluted water and the strip-mining of once-pristine boreal forests.

Environmentalists also say the bitumen in oil sands is harmful and corrosive, which makes pipeline ruptures or leaks more likely and carries greater health and safety risks.

However, TransCanada defends its safety record and says buried pipelines are far safer for transporting oil than ships or trains.

Trump concurred, saying: "I think it's a lot safer to have pipelines than to use other forms of transportation for your product."

OIL AND GAS
Libya sets goals for higher oil production
Washington (UPI) Mar 23, 2017
Libya aims to increase crude oil production at some of its fields by 55,000 barrels to the extent that conditions permit, the nation's main oil company stated. Officials with Libya's National Oil Corp. met with representatives from Italian energy company Eni and Mellitah Oil & Gas, which ranks itself as the largest in Libya in terms of production. The NOC said all parties discuss ... read more

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