U.S. to seek new Keystone route, delaying approval
The United States will study a new route for the Keystone XL Canada-to-Texas oil pipeline, U.S. officials said on Thursday, delaying any final approval beyond the U.S. 2012 election and sparing U.S. President Barack Obama a politically risky decision for now.
The delay was a victory for environmentalists who say oil sands crude development emits large amounts of greenhouse gases. It would deal a blow to companies developing Alberta’s oil sands and to TransCanada Corp, which planned to build and operate the conduit.
Analysts have said a long delay could kill the $7-billion project because it would cause shippers and refiners to look for alternative routes to get Canadian oil sands crude.