Despite Veto, Keystone Battle Isn't Over Yet

President Barack Obama promptly vetoed the Keystone XL oil pipeline bill on Tuesday, but the battle over whether or not the project will go ahead is far from over.

Republicans blasted the President’s decision, saying he was turning down a huge opportunity for job creation; but the President backed up his decision saying it was important to understand the effects of the pipeline before going through with it.

Who Is Against The Pipeline?

Surprisingly, not Obama— not yet. Although the President rejected the Republican bill to move forward with the project, he hasn’t turned his nose up at the pipeline just yet.

Instead, Obama said he is waiting for a State Department review of whether or not the pipeline would be beneficial to the United States to make his decision.

Obama, along with several environmentalist groups, has expressed concern about the pipeline’s environmental effects, saying the carbon emissions created could contribute to climate change.

Companies offering alternative transport options for Canadian crude are also cheering the veto in hopes the project will eventually be killed by political wrangling.

Enbridge Inc (USA) ENB has already completed two projects this year that connect to existing Canadian pipelines and carry the nation’s oil to Gulf producers via Crushing, Oklahoma.

Canadian National Railway (USA) CNI is also hoping the veto will keep the project from advancing as the company does much of its business carrying tar sands oil.

What Next?

Supporters of the pipeline say Obama’s veto won’t stop them from getting their way. TransCanada Corporation (USA) TRP has promised to work together with the State Department to complete the review and prove that the pipeline is beneficial to the US.

However, the company also has another project in the works that will transport tar sands oil to New Brunswick which is set to be built in 2018, so Keystone isn’t its only focus.

Related Link: Investors Begin To Turn Toward Greece

No More Mr. Nice Guy

The Keystone veto comes at a time when Republicans and Democrats were seemingly working together in Washington to get things done. Now, most are expecting the back-and-forth to get sharper as the two sides battle for power.

Republicans say they will try to override Obama’s veto by March 3, though that scenario is unlikely as their majority would be short three votes.

Meanwhile, Obama says he will continue to hold off on a decision until he has the State Department review results, expected in the coming weeks.

The Republican-led congress isn’t likely to step back and let the review process run its course. Angered that the President used his executive power to block the pipeline, lawmakers have threatened to rework the bill and attach it to spending measures that will make it more difficult for the President to veto.

Posted In: NewsPoliticsTop StoriesMarketsGeneralBarack ObamaKeystone XL
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