Home / Energy / Obama rejects Canada-to-U.S. Keystone pipeline

Obama rejects Canada-to-U.S. Keystone pipeline

WASHINGTON – U.S. President Barack Obama on Friday rejected the proposed Keystone XL oil pipeline from Canada in a victory for environmentalists who have campaigned against the project for more than seven years.

“The pipeline would not make a meaningful long-term contribution to our economy,” Obama told a press conference. He said Keystone XL would not reduce gasoline prices for drivers, and that shipping “dirtier” crude from Canada would not increase U.S. energy security.

The denial of TransCanada Corp’s more than 800,000 barrels per day project will make it more difficult for producers to develop the province of Alberta’s oil sands. It could also put the United States in a stronger position for global climate talks in Paris that start on Nov. 30 in which countries will aim to reach a deal to slow global warming.

Secretary of State John Kerry, who determined that the pipeline was not in the country’s interest before Obama’s final decision, said approving Keystone “would significantly undermine our ability to continue leading the world in combating climate change.”

Keystone XL would have linked existing pipeline networks in Canada and the United States to bring crude from Alberta and North Dakota to refineries in Illinois and, eventually, the Gulf of Mexico coast.

TransCanada first sought the required presidential permit for the cross-border section in 2008 but the proposal provoked a wave of environmental activism that turned Keystone XL into a rallying cry to fight climate change. Blocking Keystone became a litmus test of the green movement’s ability to hinder fossil fuel extraction in Canada’s oil sands.

“This is a big win,” said Bill McKibben, co-founder of the environmental group 350.org which helped make Keystone a symbol of a movement to slow global oil output. Obama’s decision “is nothing short of historic, and sets an important precedent that should send shockwaves through the fossil fuel industry.”

Related: Keystone delay heralds long-term pain for Canadian oil producers

TransCanada and other oil companies said the pipeline would have strengthened North American energy security, created thousands of construction jobs and helped relieve a glut of oil in the country’s heartland.

But since 2008 the United States has experienced a domestic drilling boom which has boosted oil production 80 percent and contributed to a slump in U.S. oil prices from above $100 a barrel to about $44.

TransCanada Chief Executive Russ Girling said the company would review its options to potentially file a new application for a pipeline to bring oil sands crude to the United States.

TransCanada first sought the required presidential permit for the cross-border section in 2008 but the proposal provoked a wave of environmental activism that turned Keystone XL into a rallying cry to fight climate change. Blocking Keystone became a litmus test of the green movement’s ability to hinder fossil fuel extraction in Canada’s oil sands.

“This is a big win,” said Bill McKibben, co-founder of the environmental group 350.org which helped make Keystone a symbol of a movement to slow global oil output. Obama’s decision “is nothing short of historic, and sets an important precedent that should send shockwaves through the fossil fuel industry.”

TransCanada and other oil companies said the pipeline would have strengthened North American energy security, created thousands of construction jobs and helped relieve a glut of oil in the country’s heartland.

But since 2008 the United States has experienced a domestic drilling boom which has boosted oil production 80 percent and contributed to a slump in U.S. oil prices from above $100 a barrel to about $44.

TransCanada Chief Executive Russ Girling said the company would review its options to potentially file a new application for a pipeline to bring oil sands crude to the United States.

“Today, misplaced symbolism was chosen over merit and science, rhetoric won out over reason,” he said in a statement.

The company on Monday asked the Obama administration to pause the review of the pipeline in a move seen by many as an attempt to postpone a decision until a new U.S. president took over in 2017. TransCanada shares fell about 4.6 percent on the Toronto stock exchange on Friday to C$43.15.

All the Democratic presidential candidates, including front runner Hillary Clinton, oppose the pipeline while most of the Republican candidates are in favor of it.

(Reporting by Jeff Mason, Timothy Gardner, Arshad Mohammed and Patrick Rucker in Washington and Nia Williams in Calgary; Writing by Timothy Gardner; Editing by Lisa Lambert and James Dalgleish)

This article was from Reuters and was legally licensed through the NewsCred publisher network.


  1. And in 441 days the moving trucks can load their crap up and take his ass back to Chicago!

  2. Just goes to show his nonsupport of AMERICAN energy and thousands of jobs in the gas/oil fields in the USA but the support of the Saudis and OPEC

    • Obviously from your comments you know little about the pipeline. It would NOT have created jobs in the oil fields. It would have created a few short term jobs building the pipeline. All the product that was to be shipped through the pipeline was from Canada and was for export. That pipeline did nothing for the U.S.

    • Still doesn’t excuse the fact we’re not exporting oil and natural gas.

    • It would have created 35 long term jobs after construction. How does being the middle man for Koch run Canadian oil companies help us long term?

    • The Keystone XL pipeline would transport oil and oil sands from Canada to Texas for refining and exportation. It would pass through some major shale areas in the US to also transport our oil. Currently, all of this oil is being transported by rail owned by Warren Buffett. He would stand to lose a lot of money, and has made Obama his puppet on this issue. If you know anything about transportation lines (pipelines), you know that the owner/operator of the pipeline would get paid a percentage of the oil price that is transported through it’s pipeline. The fact that Obama cited climate change as a reason for denying this project is disturbing.

  3. He is such a Dumbass… Good Riddance to him….

  4. Somebody official reject him then. He doesn’t make a meaningful contribution to our economy.

  5. I believe this pipeline would be at max pressure from Canada and the US wouldn’t be able to put product in it. Yes it would help Canada but not the US

  6. Can get much worse !! Worst president ever he has been a disgrace to the office and turned the US into a welfare state and more racist country !! Like he has improved it in any way !!!

    • Thats what the leaders want. For u to be all dependent on them so they feel all mighty and high. There taking away our rite to freedom and liberty. You know they have laws that you have to have a government “licensee” for simply entry level jobs.

    • What? This country was already racist, just mainstream media is actually talking about it now. Plus idk how the US is in a welfare state, when the gpd keeps growing. If the US economy collapses the entire world suffers from it, not just us. China needs someone to sell to, and they know that. I dont get how this country hasnt improved, when crime has gone down. So what are you really complaining about?

  7. The good thing is he only has a little more than a year than he is gone

  8. Translation – “My bosses don’t like it so you can’t do it.”

  9. So freeing ourselves from oversea oil is not good for our economy how ? That pipeline will get built right after obuma is out .

    • It is actually not good for his Muslim brothers.

    • Remember he getting that BNSF Warren Buffett $$ to kill that so that oil can be sent via railroad!

    • This oil pipeline comes straight from Canada to Houston. We get no benefit. It’s the Tar Sands product. Even most of the Canadian people don’t want anything to do with it. Just read up on it is all I ask.

    • His pitch is “Its not a big enough jobs project. So were gonna kill it.. But i’ll tell you what is. We get the tax payers to fit the bill on a 1 trillion dollar infrasturucure spending program and thats gonna make a gajillion jobs YES” . When the inflation hits the dollar its gonna be bad. I’m trying to buy all the land I can afford right now

    • His pitch means nothing. There has never been an honest word out of his mouth. The truth as to why this was killed. Warren buffet owns Burlington railroad. They ship the oil now. Warren donates to democrats. Nearly a billion to obama. Not hard to figure out when you follow the money. Remember a few months ago when hillary was “deciding”. Then she suddenly decided against it. Anyone care to take a guess who made a large donation to her charity and to her superpac just before that decision?

    • This does nothing for the US to free ourselves from overseas oil. This was a great decision

    • Vinnie , you have no idea what you’re talking about ! How does shipping in oil from Canada not help us , 1 creates jobs , 2 the oil is being shipped in to our country to go to our refineries who employ amaricans, not to mention pipelines are the safest way to transport anything . They are shipping Canada’s oil right now as we speak by our out dated rusty rail system . How does this not help out Americans ?

    • Vinnie Kely you couldnt be more wrong. What the pipeline would have done is weaken the control Opec has on pricing.

    • If Vinnie Kely knew anything about oil, I’d take his post, as an intelligent response, unfortunately you have no idea what you’re talking about.

    • This creates incentives to find alternative energy sources. Cheaper oil, means less reason to research into other alternatives. Cry all you want, but because of oil companies, we still have crappy electric cars. They own the patents to what would make electric cars viable, yet they are reluctant to release it because of business. So tell me again why we should support big oil companies?

    • Andrew – patents are only good for so many years . The technology for electric cars is there . It’s the battery technology that needs improved , how will electric cars work in the rust belt areas ? Salt will and snow are hard on electrical components. If you would do the research you will find by 2050 nearly 35-45 percent of our power will be from alternative energy a such as wind and solar . But natural gas will still be by far the most efficient .

    • This WILL NOT change the price of oil. Do you really think the oil companies are gonna spend this money so then can lower your gas prices? It will only create temporary jobs . It will kill the sustaining jobs that exist already. The steel contract has already been given to China ..Tell me again how they are doing this for our country ..

    • Cliff -Oil is already at or near all time lows … No one is arguing that . It puts oil in our refineries, witch strengthens our refineries . Would you rather have them ship this oil by rail ? Or by pipeline – look up witch one is safer ! It’s not close !

    • All construction jobs are temporary, by their very nature. By opening oil exportation from the US, it will put thousands of people back to work, thereby expanding our tax base. Furthermore, by flooding the international markets with our crude, it will eventually drive down the price by forcing OPEC to reduce their prices in order to compete. As for our own energy needs, we have oil fields that have only had the surface scratched on them.

    • Canada oil coming in to the US would only hurt the US oil fields!! We are already hurting from OPEC oil glad the pipeline was rejected

    • Edmond , OPEC is the enemy . That pipeline will actually carry some of the crude from north and South Dakota as well as oil from Canada . The pipeline’s permits were actually pulled about a week ago from trams Canada , they want to wait until the new president takes over .

    • By the way, Elon musk, owner of Tesla electric cars HAS disclosed ALL patents of his company’s electric cars current and obsolete models so the general public can begin their own innovations and improvements.

    • Mark Moyer The state department didn’t let them pull it.

    • Plastic cars made from any one gas ohh and batteries so good for the environment

    • Propylene,ethylene,ethane=polyethalene=polymeres (plastics) that my friends is why they make cracker plants to seperate the various gasses

  10. How do you feel knowing your union gave money to this loser twice. And is probably giving to hillary.

  11. Such a piece of garbage the worst thing to ever happen to America by far

  12. Some jobs are better than no jobs.

  13. Obama is a worthless human being. He has not done anything positive for our Country yet. He is a disgrace to this Country.

  14. Anyone ask how are this oil coming from Canada now and whose not going to profit from the pipeline. ?

    • Yea his buddy in the railroad transportation business.

    • BNSF and all the money that Warren Buffet has poured into the Democrats over the last 30yrs. his railroad stood to lose 1 million a day if that pipeline went through!

    • Wouldn’t that be cornering the market in oil transportation?

    • This is a step away from fossil fuel. Not spending money on infrastructure for it facilitates the move to clean energy. Soon there will be no oil to transport by rail either

    • Vin, at what point is it going to sink in with all this so called clean energy leaves off electromagnetic fields one can’t see on a mass world wide scale. may be more deadlier than the gases ya can see and filter.

    • We will NEVER get away from fossil fuel, NEVER. This has absolutely NOTHING to do with “clean energy” this has everything to do with Obama and his “the sky is falling and the ice caps are melting” cronies who donated millions to both of his campaigns and now he is returning the favor. The pipeline could and would have moved the oil for less than $10 per barrel, whereas Warren Buffet’s BNSF railroad transports it for around $40 per barrel, he donated millions to the DNC and stood to lose over 1 million per day if the pipeline went through. Believe me oil is still moving, but it is moving by rail!

    • Vinnie… We won’t live long enough to see the end of fossil fuel. Do you have a clue as to what all derives from fossil fuels and the petroleum industry?

    • How your clean energy gonna make all your rubber, make up, gas, tires for your car, and 90 percent of the rest you use on a daily basis. Oil is not stopping in your lifetime. Let the rail cars and pipelines flow!!!!

    • I prefer the pipeline, here is the reason. I have spent the last 10yrs in the Oil / Natural Gas Industry and with crude prices hovering between $41-$48.00 per barrel (42gal) the rail charges right about $40.00 a barrel to transport, there is absolutely no room for ANYONE except the railroads to make any profit and the US oil production has damn near stopped!!! BUT….with the pipeline it would only cost $10.00 per barrel to move, leaving the oil companies in a position to make a little profit which keeps me and about 50,000 other people able to keep working!

    • Try to pull huge loads like semi truck trailers on on fossil fuels once again it will never go away is the pipeline benefiting what it should? Maybe not. It seems to me that Obama said its either or either a pipeline or infrastructure rebuild why does it have to be one or the other?

    • This president cares not about job loss. It’s a win win for him. The more dependent people he has, the more control he has. It’s what socialists do. Just ask a west virginia coal miner.

    • It’s coming from the rail system which is making a killing and have Obama in their pockets.

    • Buffet will make more money if it goes west to the coast…

    • People are like…the pipeline makes the shipping cheaper…so do it already…like they are going to pass the savings on to the consumer.

  15. They should just build a pipeline from Coutts Montana to the south and send it accross the border by rail car. Because apparently rail car oil is cleaner. Its magic.

  16. You don’t make a good long term anything!

  17. The “right” people will be the ones employed to do the work anyways. More of those who you know jobs. To act like not being dependant on foreign oil is a goal we want when we are constantly robbing other countries of their resources? No matter how much we have we will always make an excuse to why it cost so much. While ither countries leap ahead of us in technology, while we are stuck on fossil fuels lol.

  18. What a banana head be glad when he is gone

  19. Great move!
    They can pipe it to their coast.
    US steel wasn’t going to be used.

  20. He does not know what will be good for the economy from apple butter.

  21. Where were the welders gonna come from? There’s an overwhelming amount of pipeline and construction jobs in the US now they can’t man the jobs with qualified personnel.
    That’s a job that gas to be done right, skilled trained professionally paid craftsman.

  22. The oil is being shipped on railway from Canada to Texas it’s going to get there aboveground zig zagging through rural America. Obama won’t tell you that

  23. oduma is in warren buffets pocket people,30$ a barrel vs 10$ through pipe,buffet owns the rails…

  24. Nice photo– Curly, Larry and Moe….. Sorry, guess I owe the real stooges an apology for the insult

  25. Really! You haven’t either.

  26. Why not save some money?

  27. And just what does a community organizer know about business?

  28. Got tanker cars right here in New York State tons of them just sitting

  29. Keep crying when there’s a train wreck and oil tanker explosions, the pipeline will Aluminate that

  30. They did this to Kinder Morgan too. Not just Transcanada. Kinder Morgan wanted todo a big high profile project like keystone and REX and across the majority of counties and town hall meetimgs the VOTERS were AGAINST pipelines and any type of conventional energy resources.

    The voters are gonna put themselves into the poor house by driving out private investors. They all blame rich people but they forget its the wealth people n companies that have the capital to build plants, pipelines, stations, chemicals etc..


  31. Obama care does not make a meaningful contribution to our economy, sovereignty, unity and democracy!!
    All we can do with the damage he has done is ask GOD to forgive us and have mercy on us.

  32. So a job at McDonald’s is a good long term job.

  33. Keep fossil fuel in the ground!

  34. This pipeline does nothing for us. It creates some welding jobs for a little bit, but does nothing else for our economy.

    • Multi-year project with thousands of jobs, billions in tax revenue generation for the life of the pipeline, environmental and safety impact by reducing trucks and trains and reducing the amount of oil we import from countries that want to kill us….but other than that, no impact. Idiot.

    • Dude the pipeline would have gone thru nature reservations. Displacing tons of wildlife.

    • Andrew,If I hold my hand in the air,feel free to slap the stupid out of your yourself.The Alaskan pipeline was built through the most pristine area and created millions in revenue and still creates jobs today in maintenance.There are safety instruments that can be installed to shut down sections if a leak occurs.there’s no reason this pipeline couldn’t have been built.Its all political.

    • Many people would be employed just maintaining and inspecting after complete. There are pumping stations every so far along the pipeline

    • Andrew, the Alaskan Pipeline has not displaced one single Moose, Elk, Bear, Caribou or rabbit! I’ve been there, I’ve seen it, I’ve walked under it and even driven a truck under it. Believe me, no animals are going to be displaced.

    • After the pipelines are built u would never know it was there and the dollars that would b put into the economy would b unbelievable. And we currently have a line running thru a farm and the wild life doesn’t care just ask them LMAO at stupid tree huggers.

  35. Didn’t the EPA just dump millions of gallons of toxic waste into a river? The hypocrite in chief strikes again…

  36. Damn, Look its Larry, Mo and Curly !!!!

  37. Amen! Canadian oil being sold on the world market. Does nothing for us except put us at risk. Bravo Mr. President!

    • Wrong, it comes through by rail this costing more and endangering many more lives.

    • Wrong, oil spills from railroad cars are measures in thousands, in pipelines its hundreds of thousands of not more.

      Even if it you were correct. There is no reason to invest millions in infrastructure for fossil fuels.

      We are moving away from them.

      It’s like investing in VHS repair shops.

      We are moving away from fossil fuels and I couldn’t be happier

  38. Thanks Obama for continuing to support union labor. I guess keystone wasn’t one of his shovel ready jobs. He is the biggest failure in the history of the presidency

  39. Just looking out for his Saudi buddies

  40. Keystone would still import foreign oil

    • Don’t pretend getting oil from Canada is as risky as depending on the Middle East or Russia. Smh

    • I didn’t say a word about risk Michael Aberle , It’s still foreign oil, I’ve been in the oil & gas industry for 35 years it’s a roller coaster, I’ve never claimed to be a world economist but OPEC Middle East has controlled oil prices as long as I can remember by decreasing or increasing production out put, right now they are flooding the market with oil they can not afford at this price they are taking a hit but they continue to drill in Saudi Arabi at a fast pace, I was offered a job to go to work for Saudi Aramco a month ago the rig utilization is increasing by the numbers daily all they are doing is boosting there production so when they turn down production the price will jump through the roof all while killing the shale drilling here in the US we will be at there mercy

  41. Would cut over 20 million a year in profits for major dem contributor warren buffet too

  42. Oh but Obama care worked great and benifitted every American!!! Lmfao

  43. The oil is still coming here from Canada Vinnie Kely, but now it’s being shipped on Obama’s rich donor buddy Warren Buffett’s railroad.Three of those trains crashed in the last two years causing massive oil spills. It’s not about protecting the environment, it’s about rewarding a wealthy democratic donor.

  44. I guess it was something that would have been good for America .

  45. All politician only care about the millions they receive from lobbyists. Not one of them actually care about one single American; besides themselves. It’s a shame we let these bottom feeders rule over us!

  46. Well I guess there is always the trans Pacific trade deal. That should put the nail in the coffin for America …….u frickin idiot

  47. So trucking and rail better and cheaper way the cross borders up here evey day

  48. If the oil came here it would be good. But it would be sold somewhere else

  49. That idiot is the worse one in office yet.. One big ass mistake America. = OBAMA

  50. They have to pay Warren back all the money he put into there campaigns. Who is one of the biggest stock owners in the railroad

  51. What a freaking joke! Wake up!!

  52. That’s OK! Neither will Obama!

  53. How can Obama object it, Canada withdrew its application last week because of inaction by the U.S.government.

    • They also have a different leadership

    • Ironically, Obama gave the Chinese 20 years to meet the same environmental standards that we must meet today. In 20 years they will have our economy completely destroyed. There will be nothing to build on, and we will be in the same position that Puerto Rico and Greece are in today. Does anyone really want to take the chance of that, to say they save the earth, when the other side of the world is doubling down to destroy it.

    • American inaction is all Obama’s fault. Stubborn and stupid is no way to lead

  54. Wait until we get an American in office who isn’t trying to destroy the country. The keystone pipeline will be built

  55. Trans Canada is a great company there all over us more out Wisconsin ways of us but up into Canada down all the way to Florida good company

  56. Obama isn’t making a meaningful long-term contribution to our economy either

  57. Vinnie Kely stop drinking the kool-aid and start thinking for yourself

  58. This is so stupid. The pipeline already exists from Canada. The issue is keystone XL. which is just a shortcut in the pipeline

  59. But it is a start, adding ANY jobs to the American economy only helps Americans prosper.

  60. Next republican president will sign that contract

  61. I’m so shocked that he would reject something positive for our people

  62. It’ll be okay..trump will do it..

  63. In other news, oil will continue to be moved by rail and truck. Tell me again how you still care about the environment….

  64. That’s why every single indicator of economic growth shows huge improvement in the last 6 years? Because he’s trying to destroy us?!? Open your eyes!

  65. Economic growth to who the government and ceos?

  66. So, you grab up everyones land to get a pipeline… constantly talk about how oil is the only game in town that can produce jobs. Boost the temporary jobs associated with building it, and don’t talk about what happens to jobs when it’s finished…. Why are oil companies so entitled to everyone elses stuff?? Why is it they can’t just move their commodity around like EVERYONE ELSE??? Why do you need peoples land now too?

    • I sir have have a pipeline currently across a farm we operate u would never knows its there if not for the signs. So bring on the pipelines I would sell an easement for a pipeline any day. But I would not sell an easement for a wind tower. And we need Diesel fuel to farm and lots of it. And every train load of oil is a train load of grain that does not get hauled.

    • Well if it ever breaks, you’re done farming that land for a good while. And i’m sure there are more than enough trains to keep everything moving. You sure it’s an underground line anyway?

  67. There has been no growth. Massive down turn and economic failure. But hey keep watching liberal news. I recommend opening your eyes and go to infowars.com

  68. Domingo Martinez what you think about thus

  69. He us right on this. That pipeline will cost thousands of train co. Jobs and trucking jobs. Just so everyone knows we get nothing from the pipeline. It all goes to south America.

    • So if he approved the pipeline, it would create thousands of jobs in one industry and boost the economy by secondary default like restaurants, hotels, ect. But since he did not, thousands of jobs are saved in another industry like transportation? Can transportation survive like it always does by changing what it carries? I’m just asking bc it seems like a simple issue to me. This economy is stagnant and needs a Kickstart like none ever seen since the great depression. We need something to happen to stimulate and encourage growth. This could be the catalyst we need.

    • Then the railroads can finally get the farmer’s backlog to the ports!!!

    • The oils is already getting where it needs to go. This cant and wont kick start anything. Except more unemployment and more corporate welfare to build it.

  70. Obama,you are truly an idiot

  71. Except for jobs…. Apparently jobs are bad for our economy now…..

  72. Get all the facts people.

  73. You need to reread the definition of socialism because the definition you are using appears to be “government programs I don’t like”

  74. Obama is a dummy to the oil field, he has no clue!

  75. Pipeline v rail and US standards v Chinese. Just genius

  76. So the sands will go west in Canada to China. From what I’ve heard.

  77. Yeah like Obama wants anything good for this country!

  78. Has to keep Warren Buffett rich with his railroad so he can continue to donate to the democrats.

  79. Sad the Rich Guy didn’t get his pipeline.

  80. Rich guy got his railroad though.

  81. Train wreck in Wisconsin yesterday pollutes Mississippi river. Yeah stopping the pipeline helps the environment. Obama’s rich donor Warren Buffett ships the very same oil by rail.

  82. Well of course he did. You wouldn’t want 44,000 plus jobs would you.

  83. But it will make some rich people…really rich.

  84. Clearly maintaining some dependence on Middle East oil is more important than North American energy independence to this administration

  85. Eric Jeppesen, a foreign country wants to invest in building vital infrastructure here.It will put thousands of people to work during the construction, and it will also carry our oil from the Dakotas. What’s wrong with refinery jobs. All construction jobs are temporary, that is why we need to create new ones all the time. Why would you be against that? You do know that the oil is still coming here on more dangerous and fuel consumptive trains.I’m sure it has nothing to do with the fact the the billionaire Warren Buffett owns the railroad, and donated a lot of money to Obama and his democratic party.

  86. Gotta keep his man Buffet happy!

  87. Not as much as food stamps and 3 years of unemployment, but every little bit helps.


  89. After the 2016 election and a Republican is elected and the present communist regime is history, it will be built and in addition all the socialist laws and executive orders will be repealed, then this country can once again move forward.

  90. Meaningful long term contribution?
    Oh like Warren Buffets contributions to your campaign to stop it.
    We can see right through you Mr. President

  91. Of course he did.. Obama is a loser.. always has been.. if it was for illegals jobs…or sending it to China…the SOB would have used his pen!! But it was for American jibs and he is anti-American!

  92. Obama is an idiot. I can tell you from working in the midstream business….that this would impact our jobs and economy along that pipeline in a HUGE way

  93. Obama is no brain surgeon or even a successful business man for that matter.

  94. Come trump.u will make it right

  95. You idiots the us-canada pipeline is finished

  96. What a dumb thing to say

  97. I sure am glad you are not a long term contributer to our economy!!!

  98. Warren buffet must have greased his palms to keep rail cars running.