Now that the Nebraska Gov. Dave Heineman has approved an alternate route through his state, the controversial Keystone XL pipeline may have another hurdle to deal with in the form of climate hawk John Kerry who has been nominated to be next U.S. Secretary of State.
Critics of the pipeline, a massive $7-billion plan pitched by Calgary-based TransCanada Corp. to ship oilsands bitumen from Alberta to refineries on the U.S. Gulf coast, are concerned about the project's environmental footprint.
Kerry has been a staunch advocate in the fight against climate change throughout his political career, and environmentalists are emboldened because he's now in a position to put a halt to the project.'
But proponents of the project say they remain confident that Keystone XL will be approved.
"As head of the State Department he’s still charged with taking input from his department and arriving at a decision in the best interest of the nation," Canadian Association of Petroleum Producers spokesman Travis Davies said.
Davies said the pipeline’s infrastructure is not the issue, but rather who the preferred supplier is.
"Americans strongly prefer Canadian oil to oil supplied by other countries," said Davies.
Spencer Knipping, an oil adviser with the Ontario ministry of energy, said a rejection of Keystone could have a major impact on the oilsands industry.
"A rejection of Keystone would erode, to some extent, Canadian oilsands producers’ confidence in America as a reliable market for their oil," Knipping said.
