Keystone report released: Harper government, environmental groups react

We might have inched closer to a decision on the Keystone XL pipeline.

On Friday afternoon, the U.S. State Department issued what some are calling a favourable environmental impact report about the controversial mega-project that could transport up to 830,000 barrels of oil per day from northern Alberta to the Gulf of Mexico.

One of the key findings of report is that the approval or denial of the project is "unlikely to significantly impact the rate of extraction in the oil sands, or the continued demand for heavy crude oil at refineries in the United States."

According to CNN, the report bodes well for the pipeline proponents.

"I think that this study basically puts this project in the pipeline to approval," Jim Acostas, CNN's Senior White House Correspondent, said on that network.

"It essentially concludes that it would not have a significant impact on green house gas emissions, it would not have a significant impact on climate change. And that was sort of the threshold that the President set forward as to whether he would want to recomend approving or not approving this project. So that is a big blow to environmentalists."

The report also claims that the project would create 42,000 jobs in the U.S..

[ Related: Did Barack Obama signal his Keystone intentions? ]

As explained by Reuters, the release of the environmental review starts the clock on a 90-day review period. Eight US federal agencies — including the Departments of Defense, Commerce, Energy and Interior as well as the Environmental Protection Agency — will now be given three months to comment on whether the pipeline is in the national interest.

Most pundits and analysts believe that the positive report will put pressure on President Obama — who has the final say on the project — to approve it.

Environmentalists, however, aren't giving up. Some are clinging to a finding in the report that criticizes the polluting effects of Alberta oil.

"Despite the industry spin we're seeing in the press right now, the latest State Department report gives President every reason he needs to reject Keystone XL," Jamie Henn, communication director for 350.org, a prominent environmental group in the United States, told Yahoo Canada News.

"The State Department analysis shows tar sands oil is more toxic, more corrosive, and more carbon-intensive than regular crude. If President Obama meant any of the things he said about fighting global warming, his only option is go and reject this project.

"We're going to keep up the pressure to make sure he does."

Other environmental groups are contesting the report on administrative issues. The Sierra club is arguing that a government consultant, involved in penning the report, had previously done some work for TransCanada Corp, the company building the pipeline.

"To think an industry contractor wrote this report and yet they haven't been able to sweep KXL's negative consequences under the rug, tells me that a non-biased review by the White House will find KXL is not in the interest of the American people," Kate Colarulli, of the Sierra Club (USA) told Yahoo.

"I also think it's worth highlighting that the report finds that KXL will create as much pollution 5.7 million cars on our road!

"To give a Superbowl reference, we've come out of the third quarter in a tie. I believe the intensity of our grassroots and landowners ' opposition will carry the day when the decision comes to the President's desk."

According to the Globe and Mail, the conflict of interest allegation is being investigated by department’s inspector general.

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Canada's Natural Resource Minister Joe Oliver, however, is accentuating the positive.

"This is the fifth federal study of environmental impact of the Keystone XL project. Each previous one stated that building Keystone XL will not adversely affect the environment. Today's report confirms once again this result," he said.

"The benefits to the United States and to Canada are clear. We await the timely decision on this project.

"Keystone XL will displace oil from Venezuela and the Middle East with a stable democratic and environmentally responsible continental supply and thereby enhance North American energy security."

President Obama is expected to make his decision on the project before the end of this year.

(Photo courtesy of Reuters)

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