Thursday, March 22, 2012

President Obama Reverses Himself on $2.3 Billion Keystone Pipeline Fast Tracking

Bowing to pressure from Republican presidential candidates’ campaign rhetoric respecting the price of motor fuel at the pump, President Obama will officially announce tomorrow that he is issuing an executive order directing federal agencies to “fast track” permitting for pipelines that alleviate “choke points,” including the 485 mile, $2.3 billion segment of the Keystone XL pipeline from Chushing, Oklahoma to the Texas gulf coast. The decision will reverse the policy of the Obama administration announced last January, when the president refused to accelerate the Keystone XL permitting process.

TransCanada expects to complete the Oklahoma to Texas segment of Keystone XL within a year from final permit approval. Whether either approval of the pipeline or completion of its construction will actually reduce gasoline prices at the pump remains to be seen.

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