TransCanada’s (NYSE: TRP) Keystone XL pipeline is on hold.
President Obama reached this decision on Friday, listening to the protests that came mainly out of Nebraska, a state that will most directly feel the risks of the pipeline.
Last Sunday, protestors rallied in front of the White House, appealing to the President to hear their cause.
And he heard it.
It’s an issue that, as the Washington Post reports, has united conservatives with conservationists.
For the conservationists, the real issue is the threat of pollution the pipeline could cause. If there were an accidental burst along the pipeline, land and drinking water would be destroyed.
And there’s also the risk of leaks going unnoticed and poisoning drinking water.
The citizens of Nebraska expressed their worry to President Obama. They are unhappy with the risk the pipeline will pose to the community.
Conservatives are concerned about eminent domain. As the Washington Post reports, this is the government using private property for a foreign company’s product.
Another thing weighing in is the simple fact that it’s a foreign company. Terri Hall told the Washington Post:
“TransCanada has never made any promises that this is going to be domestic energy.”
But analysts expect the project to happen eventually, reported The Star.
One of the main reasons supporters have argued for the pipeline is the number of jobs it will create. Another is that it will reduce foreign oil dependence.
That’s a huge pro, especially now as we strive to break dependence on OPEC.
By transporting the oil through the United States to facilities in Texas and the Gulf Coast, the United States would have access to oil that doesn’t belong to OPEC.
But until the State Department can decide if the pipeline can be rerouted around Nebraska’s grasslands, the $7 billion project is at a halt.
TransCanada was up 2.8% to $40.30 on Friday.
That’s all for now,