President Obama announced today plans to fast track the southern part of the Keystone XL Pipeline from Oklahoma to Texas. Although somewhat contradictory, it is speculated that this push is due to the rising gas prices that are affecting countries worldwide.
This is good news for TransCanada as the announcement of delay on the project by President Obama in January seemed detrimental.
In the US, some speculate this move by President Obama is a direct result of Republican criticism of President Obama’s denial of the project. Republicans have overall supported the Keystone Pipeline explaining that the pipeline provides opportunity for an oil transportation solution as well as a multitude of new jobs for the country. Additionally, as this is an election year for the US, this move by President Obama may be a reaction to higher gas prices that are affecting the US, an issue that could plague his re-election. Gas prices rose 30 cents over the last month in the US, leading to many in Congress to call for a domestic oil solution.
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Yesterday, in a speech in Boulder City, NM President Obama explained the country’s upcoming energy policy which highlighted domestic oil production.
“We’re drilling all over the place. That’s one of the reasons we’ve been able to reduce our dependence on foreign oil every year since I took office. In 2010, it was under 50 percent for the first time in 13 years. And you have my word that we will keep drilling everywhere we can -- and we’ll do it while protecting the health and safety of the American people. That’s a commitment that I’m making,” said President Obama.