Keystone Pipeline Fight Awaits Congress’ Return

The political tussle over whether the Obama administration will allow a Canadian oil company to build a pipeline through the Midwestern U.S. will come to a head soon after Congress returns from its winter recess on January 17. In a bid to force the administration’s hand on the issue, House Republicans included a provision in the two-month payroll tax holiday, passed December 22, giving President Obama 60 days to decide whether or not the project should proceed. The Keystone XL pipeline would bring oil from the Alberta oil sand pits in Canada to refineries along the American Gulf Coast, stretching over 1,600 miles and creating anywhere from 6,000 to 20,000 jobs. The administration announced in November that it would delay approval of the project until after the 2012 elections, to allow the State Department – which must approve the project because it crosses an international boundary – to complete an environmental review. The project splits the Democratic base, pitting unions who favor it for its job creation potential against environmentalists who oppose it because it continues America’s reliance on oil and over fears that it might cause an environmental disaster...more