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![]() by Staff Writers Washington (AFP) Nov 06, 2014
Newly-empowered Republicans keen to strike a symbolic blow against President Barack Obama's divisive energy policy have a ready-to-launch opening salvo: Keystone, a controversial pipeline transporting Canadian tar-sands oil to US refineries. Tuesday's midterm elections ushered in a new Republican majority in the Senate, and incoming leader Senator Mitch McConnell is believed to have enough votes to overcome blocking tactics by Democrats when he puts forward legislation to approve the $7-billion pipeline. The environmentally sensitive, 1,179-mile (1,897-kilometer) project has been under consideration since virtually the first day of Obama's presidency six years ago, and has served as a rallying cry for Republicans -- and some Democrats in energy-industry states -- desperate to boost US oil and gas production and create jobs. When the new Congress opens for business on January 3, the Senate leadership will join the Republican-led House of Representatives in pressing ahead with energy legislation. The Republicans elected to the Senate this week are on record supporting Keystone, as are all Republicans currently in the chamber. And senators in Alaska, Indiana, Louisiana, Missouri, Montana, North Dakota, Virginia and West Virginia were among Democrats who wrote a letter to Obama last April urging him to use his executive authority to push the Keystone process forward. With those Democrats -- along with pro-Keystone Republicans who may prevail in undecided races in Alaska and Louisiana -- McConnell would have at least 60 votes, enough to overcome a filibuster. - 'Boxed in' - McConnell and House Speaker John Boehner penned an op-ed in Thursday's Wall Street Journal laying out a package of pro-energy bills, including on Keystone, that will get early votes and "will mean lower energy costs for families and more jobs for American workers." On Tuesday, the head of the Republican National Committee, Reince Priebus, predicted to MSNBC that Keystone would succeed. "I actually think the president will sign the bill on the Keystone pipeline, because I think the pressure -- he's going to be boxed in on that, and I think it's going to happen," Priebus said. Obama has said he would only approve Keystone if it was shown to have minimal carbon emissions impact. The State Department, which has authority over Keystone because of its international link, released a review in January finding that the project's carbon emissions would not be significant. But there is a hitch, one that Obama noted Wednesday in a press conference where he said "there's an independent process" that he intends to let "play out." The proposed pipeline route goes through Nebraska, where a judge is considering litigation on whether state lawmakers short-circuited the approval process in order to expedite Keystone's construction. - Economic boon? - But Tuesday's vote has clearly enhanced the project's momentum. Canada's Minister of Employment and Social Development Jason Kenney on Wednesday hailed the US Republican victory as "good news" for Canadian jobs and the economy. "It looks like the new US Senate will have the 60+ votes needed to ensure that Keystone XL is approved," Kenney tweeted. Canadian officials have long pushed for Keystone's approval, and TransCanada has stressed it would be an economic boon. TransCanada shares gained 2.5 percent Wednesday, with markets anticipating a Republican-controlled Congress will help speed implementation of the project. Obama has argued that once built, Keystone would support just 50 permanent jobs. But Republicans point to the State Department report saying the project would create 42,000 jobs during the two years of construction. Obama acknowledged there was room for cooperation on energy beyond Keystone, insisting "our energy sector is booming. And I'm happy to engage Republicans with additional ideas for how we can enhance that." Republican energy efforts go well beyond Keystone. Congressman Fred Upton, who chairs the House Energy Committee, this year unveiled an energy "architecture of abundance" that would include a new modern energy infrastructure and expanded gas operations, like fracking in shale deposits. "This is also our chance to govern on energy and environmental policy," Upton said after the election. McConnell, who is from Kentucky, has accused Obama of waging a "war on coal," and has consistently called for the administration to take more aggressive steps to boost energy production.
Related Links All About Oil and Gas News at OilGasDaily.com
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