The Washington Post and other sources are reporting that the Obama administration will reject TransCanada's application to build a 1700-mile pipeline that would carry oil derived from tar sands in Alberta to Texas Gulf Coast refineries.
However the administration will allow TransCanada to reapply after it develops an alternate route through the sensitive habitat of Nebraska’s Sandhills. Deputy Secretary of State William J. Burns will make the announcement, which comes in response to a congressionally-mandated deadline of Feb. 21 for action on the proposed Keystone pipeline.

Anthony Swift at the Natural Resources Defense Council pointed to the release today of a report from the organization claiming that the proposed Keystone XL tar sands pipeline "would undermine U.S. energy security and increase the price of Canadian crude. Canada doesn’t produce enough crude to fill the pipelines it already has. In fact, crude export pipelines to the United States are currently running half empty. That means that another pipeline isn’t going to bring more oil into the United States – it’s just going to take the oil that was already coming to a different place. "

Originally posted to Meteor Blades on Wed Jan 18, 2012 at 08:55 AM PST.

Also republished by Daily Kos.

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