The Obama administration rejected the controversial Keystone XL pipeline on Wednesday, scuttling a major initiative that would have created an influx of badly needed jobs in the United States, but also annoyed environmentalists.
The message, which was first reported by FOX News Channel has triggered a violent reaction from Republicans and supporters of the project.
The White House, a deadline of February 21st to make a final decision on the project faced, accused the Republicans force their hand.
"The deadline was arbitrary and ran toward the Republicans in Congress a comprehensive assessment of the pipe to prevent the effects, in particular health and safety of the American people and our environment," said President Barack Obama said in astatement.
Obama said the announcement "is not a decision on the merits of the pipe, but the arbitrary appointment of a" fact-finding necessary to approve the project stopped.
Interestingly, crude oil prices fell on the first news that the White House rejects the Keystone soon after the shadow $ 102 a barrel a day crude oil settled at $ 100.59, up 12 cents or 0 12% of the day.
"The Keystone pipeline is being built currently. It will be further delayed," said analyst Stephen Schork of the energy, the editor of the Schork Report. "What you are doing is injecting uncertainty into the market again - that uncertainty has a cost in higher prices, we will see."
Schork predicts the Department of Energy is releasing oil from the Strategic Petroleum Reserve in June or July by the higher prices. Last year, the Obama administration to balance the release of 30 million barrels of crude oil to mobilize.
TransCanada to reapply
Reports of rejection Keystone weighed on shares of TransCanada Calgary (TRP), which prepared the pipeline between Canada and Texas, was built. After falling as low as $ 39.74, TransCanada closed at 0.79% on $ 41.41.
"While we are disappointed, TransCanada remains fully in the construction of Keystone XL is committed. Plans are already underway on a number of fronts largely to maintain the construction schedule of the project, "TransCanada CEO Russ Girling said in a statement.
TransCanada said it would be plans for a new license and is awaiting a new application will be processed on an expedited basis, paving the way for a date of commissioning of the end of 2014.
"Until the pipeline is built, the United States continue to hold millions of barrels of oil by the conflict in the Middle East and Venezuela and other countries who do not share the democratic values of Canadians and Americans have the privilege of having to import, "said Girling.
Obama has been under pressure from a number of fronts on the Keystone Pipeline that the Republicans have stressed the need to create jobs and gasoline prices, while others on the environmental impacts of the project concerned the consequences.
GOP slams the White House decision
Republican Representative Fred Upton said he was, Hillary Clinton, asked the Secretary of State, before a committee of the House to reject Keystone testify next week.
"By declaring that the Keystone pipeline is not in the" national interest ", the president of a lack of seriousness in reducing unemployment, the recovery of economic growth and has demonstrated to achieve energy independence," GOP presidential runner Mitt Romney said in a statement.
TransCanada Keystone and other supporters said the plan to create tens of thousands of jobs and some even as much as 100 000 jobs would be created expectations.
"Job creation, economic and energy security arguments are overwhelmingly in favor of its construction. The president compared the pipeline is not in the best interest of the United States," said U. S. Senator Dick Lugar, a Republican from Indiana.
Jack Gerard, president of the American Petroleum Institute, told Fox News Radio, "How can you say that you are looking for jobs and reject work more ready to be in America. Mr. President, what do you? "
Alluding to the threat Canadian Prime Minister Stephen Harper to take their power to China, said Gerard, "It is the United States more vulnerable to external sources for our energy left."
However, Obama countered accusations that he is not concerned about the national security of energy supply.
Keystone denial "does not change the commitment of my administration to the U.S. because of the energy that creates jobs and reduces our dependence on oil," said Obama. "Under my government, oil and domestic gas production, while imports of foreign oil below. In the coming months, we will continue to seek new ways of working in partnership with the oil and gas industry, to increase our energy security. Research "
The environment of Labour questioned the impact
When Congress passed the law last month, extending the reductions in social contributions, but also the order, a decision on the matter by Keystone 21st February. The State Department said it was a "not enough" time for a decision on whether the project was in the "national interest".
After the State Department, again with TransCanada to build the line, because the rejection would not predict future applications.
Environmentalists have expressed concern about the impact of the Keystone Project. The National Resources Defense Council, which is an environmental group argued that the proposed pipeline would actually affect the situation of the labor market.
"The truth is, the pipeline would likely cost jobs in an oil spill would cause widespread contamination of agricultural land and water," the environmental group said in a recent blog.
An independent report by Global Labor Institute of Cornell University was conducted in September pushed very skeptical of the job creation figures from the oil industry. The Cornell report said TransCanada building direct and 20,000 manufacturing jobs in the United States is "not justified".
"KXL not play a major source of employment in the United States, it is not an essential role in the implementation of all Americans to work," said the Cornell study.
At least one Democratic U.S. senator said the rejection Keystone: Arkansas Senator Mark Pryor said he "strongly" disagreed with Obama and believes that "in today's world, it can be done in a way that protects the environment. "
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