Planned U.S.-Canada Oil Pipeline Gets Favorable Report

The U.S. State Department said in a report that the planned Keystone XL pipeline, which would transport crude oil from tar sands in Alberta, Canada, to oil refineries in Texas, is unlikely to have a significant impact on the environment, Associated Press reported.

The State Department released its findings on Friday in its final environmental impact statement.

The pipeline, which would be built by Calgary-based TransCanada Corp., would transport about 700,000 barrels of oil per day on a path through Montana, South Dakota, Nebraska, Kansas and Oklahoma, AP said.

American Trucking Associations said the pipeline will reduce fuel costs for carriers and consumers while creating thousands of new jobs and boosting the economy.



“The State Department’s positive environmental impact statement clears the way for the Obama administration to approve the Keystone XL project, which we urge them to do as quickly as possible,” ATA CEO Bill Graves said in a statement. “In addition to lowering fuel costs, the project will generate billions in economic growth and jobs and improve U.S. energy security by reducing our dependence on Middle Eastern oil.”

The planned pipeline has drawn opposition from environmental groups.

Sierra Club Executive Director Michael Brune said in a statement that Americans don’t want a “toxic crude oil pipeline running through our heartland for the benefit of a foreign oil corporation and they don’t want another oil spill.”