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Canada confident Keystone XL will be approved

Published on NewsOK Modified: June 25, 2013 at 5:48 pm •  Published: June 25, 2013

TORONTO (AP) — Canada's natural resources minister said Tuesday he's confident the proposed Keystone XL oil pipeline project from Canada to Texas will be approved because it meets President Barack Obama's requirement that it not lead to a significant increase in greenhouse gas emissions.

Joe Oliver responded to Obama's comments earlier Tuesday that the pipeline should be approved only if it does "not significantly exacerbate the problem of carbon pollution."

Oliver pointed to "Obama's very own State Department" which he said concluded in a report this year "that there would be no increase in greenhouse gas emissions."

The long-delayed project carrying oil from Alberta's oil sands requires approval from the State Department because the project crosses the border. Republicans, and business and labor groups, have urged the Obama administration to approve the pipeline as a source of jobs and a step toward North American energy independence.

But environmental groups have been pressuring Obama to reject the pipeline, saying it would carry "dirty oil" that contributes to global warming. They also worry about a spill.

Canada has said the project would be a welcome economic boost, and Alberta's premier has warned that its rejection would mar relations with the U.S. The northern Alberta region has the world's third largest oil reserves, with 170 billion barrels of proven reserves.

Canada needs infrastructure in place to export its growing production. The country relies on the U.S. for 97 percent of its energy exports.

A State Department report on the pipeline this year acknowledged that development of the oil sands in Alberta would create greenhouse gases, but it also made clear that other methods to transport the oil — including rail, trucks and barges — also pose a risk to the environment. For instance, a scenario that would move the oil on trains to mostly existing pipelines would release 8 percent more greenhouse gases than Keystone XL, the report said.

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