Obama’s Keystone Move Disappoints Arkansas Democrats and Republicans

President Barack Obama’s refusal to approve construction of the Keystone XL pipeline sparked an intense round of political finger-pointing, with Arkansas’ two Democratic members of Congress also expressing disappointment with the President’s decision.

Facing what he called an “arbitrary” Feb. 21 deadline to approve the more than 1,600 mile oil pipeline, Obama said Wednesday (Jan. 18) he could not approve the project because not enough time is allowed for a full environmental assessment.

“As the State Department made clear last month, the rushed and arbitrary deadline insisted on by Congressional Republicans prevented a full assessment of the pipeline’s impact, especially the health and safety of the American people, as well as our environment,” Obama noted in his statement. “As a result, the Secretary of State has recommended that the application be denied. And after reviewing the State Department’s report, I agree.”

The Keystone pipeline is a 1,661 mile, 36-inch crude oil pipeline beginning at Hardisty, Alberta (Canada), and extending southeast through Saskatchewan, Montana, South Dakota and Nebraska, according to this report from TransCanada, the company pushing the project. The pipeline would use portions of the Keystone Pipeline now in Nebraska and Kansas, and eventually connect at the key terminal of Cushing, Okla., and then extend to the refinery operations in Texas along the Gulf of Mexico.

TransCanada says the pipeline will directly create 20,000 jobs in the U.S., including 7,000 manufacturing jobs. The company also predicts 180,000 spin-off jobs from the project. TransCanada also says the pipeline will help reduce U.S. dependency on overseas oil.

“The U.S. consumes 15 million barrels of oil each day and imports 10 to 11 million barrels per day.  Industry forecasts predict oil consumption will continue at these levels for the next two to three decades, so a secure supply of crude oil is critical to U.S. energy security,” TransCanada noted.

Obama said the merits of the project were not part of his decision.

“This announcement is not a judgment on the merits of the pipeline, but the arbitrary nature of a deadline that prevented the State Department from gathering the information necessary to approve the project and protect the American people,” Obama said in the statement. “I’m disappointed that Republicans in Congress forced this decision, but it does not change my Administration’s commitment to American-made energy that creates jobs and reduces our dependence on oil.”

Responding to an avalanche of criticism from many political sides, the White House issued Wednesday afternoon an “Increased Energy Security” report that outlined the ways the Obama Administration has bolstered energy production since 2008.

One of the first to respond to Obama’s decision was Oklahoma Gov. Mary Fallin (R), who said the pipeline could represent a $1.2 billion investment in Oklahoma.

Fallin said, “The decision by the president to block construction of this pipeline is more evidence this administration is beholden to radical environmentalists and does not care about real job creation or the plight of tens of millions of unemployed Americans. I am outraged by President Obama’s obstructionism, poor judgment and lack of regard for a project that would help secure America’s energy independence, boost our economy and create hundreds of thousands of jobs.”

U.S. Sen. Mark Pryor, D-Ark., and U.S. Rep. Mike Ross, D-Prescott, opposed Obama’s decision.

“I strongly disagree with President Obama’s decision to postpone the Keystone pipeline project. This project will sustain and create jobs in the United States. I also believe that in this day and age it can be done in a way that protects the environment,” Pryor noted in a statement.

Ross issued a much lengthier statement in which he noted union support of the project and asked Obama to reconsider.

“This Canada-to-Gulf pipeline will carry almost one million barrels of oil a day from our North American neighbor and ally in Canada, to refineries on the Gulf, creating jobs here at home and making our nation more energy independent, which is why I’m disappointed the President rejected the project,” Ross said. “The pipeline has so far met all of the environmental standards required for its construction and I strongly urge the President to reconsider his decision.”

Ross said in his statement that the International Brotherhood of Teamsters, the Laborers’ International Union of North America, the International Union of Operating Engineers and the United Association of Journeymen and Apprentices of the Plumbing and Pipefitting Industry of the U.S. and Canada wrote letters to Congress to support the project they said would generate $6.5 billion in income for workers.

U.S. Sen. John Boozman, R-Ark., said Obama’s decision was more about politics than energy independence. Boozman released the following statement after President Obama rejected approving construction of the Keystone XL Pipeline.

“Rejecting the Keystone XL Pipeline kills hundreds of jobs in Arkansas. Our number one priority needs to be job creation and putting Americans back to work. This project is a clear path to providing employment opportunities and creating an energy policy that decreases our dependence on oil from the Middle East. Unfortunately, this decision reflects the President’s top concern is protecting his own job,” Boozman said.

U.S. Rep. Tim Griffin, R-Little Rock, was more direct in his statement.

“Today, President Obama chose to create jobs in China instead of the United States.  Canadian officials made it clear to me that they would prefer doing business in the United States but will ship oil sands to China for refining if necessary. Make no mistake, the President’s decision kills jobs across America and specifically will hurt Welspun in Little Rock. Further, we should be buying oil from our friends in Canada instead of from countries that don’t like us.”

Obviously, not everyone opposed Obama’s decision. The Energy Action Coalition, a youth-focused movement, was one of the groups to thank Obama for standing up to “Big Oil” with his decision.

“President Obama’s decision to stand up to Big Oil and reject the Keystone XL pipeline, despite the bullying of Big Oil, shows a strong commitment to stand with young people fighting for a clean and just energy future, “said Maura Cowley, executive director of Energy Action Coalition.

Michael Tilley with our content partner, The City Wire, is the author of this report. He can be reached by email at [email protected].