WASHINGTON, March 24, 2017 – Early Friday morning President Trump’s Department of State terminated Barack Obama’s environmental obstructionism and approved TransCanada Corporation’s (symbol: TRP) permit to build the long-needed Keystone XL pipeline. When completed, the pipeline will create a simpler, cheaper and much needed conduit for oil from Canada’s tar sands to flow south to American storage facilities and refineries.
Eco-extremist rhetoric notwithstanding, the pipeline will also transport this oil in an environmentally safe manner, as opposed to the current workaround that involves shipping mass quantities of this difficult-to-handle oil by rail, which has resulted in several dangerous, environmentally unfriendly accidents and derailments during the years that Obama refused to allow the pipeline to go forward.
As a result of today’s pipeline approval, TransCanada is dropping ongoing legal actions against the U.S. government, including its claim filed under NAFTA as well as its Constitutional case against the Federal government.
TransCanada’s full statement announcing the approval appears below:
“TransCanada Receives Presidential Permit for Keystone XL
“TransCanada Corporation (TSX:TRP) (NYSE:TRP) (TransCanada) today announced that the U.S. Department of State has signed and issued a Presidential Permit to construct the Keystone XL Pipeline.
“‘This is a significant milestone for the Keystone XL project,’ said Russ Girling, TransCanada’s president and chief executive officer. ‘We greatly appreciate President Trump’s Administration for reviewing and approving this important initiative and we look forward to working with them as we continue to invest in and strengthen North America’s energy infrastructure.’
“Keystone XL is an important piece of TransCanada’s comprehensive U.S. growth portfolio driving an investment of more than US$15 billion in liquids and natural gas projects that will create thousands of well-paying jobs and generate substantial economic benefits across the U.S.
“TransCanada will continue to engage key stakeholders and neighbors throughout Nebraska, Montana and South Dakota to obtain the necessary permits and approvals to advance this project to construction.
“In conjunction, TransCanada has discontinued its claim under Chapter 11 of the North American Free Trade Agreement (NAFTA) and will end its U.S. Constitutional challenge.”
The complete TransCanada announcement is available here.
It is reasonable to expect some continued resistance to portions of this project from the various states the pipeline will cross, in addition to the standard-issue harassment the Administration can expect from environmental extremists and their wealthy backers.
But most difficult logjam standing in the way of this vital infrastructure project has been broken.
The completion of Keystone XL will ultimately benefit American consumers by further helping to lower the price of gasoline and fuel oil while actually addressing environmental concerns, given the proven safety record of American pipeline systems over the decades as opposed to the rail transport of crude oil.