News / Economy

Canada Loses Patience on Pipeline, Tells US to Decide

Canadian Foreign Affairs Minister John Baird speaks at a U.S. Chamber of Commerce luncheon in Washington, Jan. 16, 2014.
Canadian Foreign Affairs Minister John Baird speaks at a U.S. Chamber of Commerce luncheon in Washington, Jan. 16, 2014.
Reuters
Canada bluntly told the United States on Thursday to settle the fate of TransCanada Corp's proposed Keystone XL pipeline, saying the drawn-out process on whether to approve the northern leg of the project was taking too long.
 
The hard-line comments by Foreign Minister John Baird were the clearest sign yet that Canada's Conservative government has lost patience over what it sees as U.S. foot-dragging.
 
Baird also conceded that Washington might veto the project, the first admission of its kind by a Canadian government minister.
 
The 1,200-mile (1,930-km) pipeline would carry 830,000 barrels a day from the Alberta tar sands in western Canada to the U.S. Gulf Coast. Ottawa strongly backs Keystone XL, which it says would create jobs and provide a secure supply of oil to Canada's closest ally and trading partner.
 
“The time for Keystone is now. I'll go further - the time for a decision on Keystone is now, even if it's not the right one. We can't continue in this state of limbo,” Baird said in a speech to the U.S. Chamber of Commerce.
 
Although the State Department is responsible for ruling whether the pipeline meets the national interest, President Barack Obama has made clear he will make the final decision.
 
The Keystone pipeline under construction in David City, Nebraska. (Courtesy TransCanada)The Keystone pipeline under construction in David City, Nebraska. (Courtesy TransCanada)
x
The Keystone pipeline under construction in David City, Nebraska. (Courtesy TransCanada)
The Keystone pipeline under construction in David City, Nebraska. (Courtesy TransCanada)
Obama is under heavy pressure from environmental activists to veto the northern leg, and Washington seems in no hurry, despite the growing irritation in Ottawa. Canada is the largest single supplier of energy to the United States.
 
The State Department issued a largely favorable initial environmental impact assessment in March 2013, which was followed by a public comment period. On paper, at least, the department should have issued an updated impact assessment and then a final recommendation by the end of 2013.
 
But the timetable has slipped badly, and political observers expect Obama will act later this year, possibly after midterm congressional elections on Nov. 4.
 
White House spokesman Jay Carney referred questions about Baird's comments to the State Department, citing the current review. When a decision is made, it will be announced, he told reporters.
 
Canadian Prime Minister Stephen Harper said earlier this month that Obama had “punted” the decision but expressed confidence that the United States would eventually approve the pipeline.
 
Last September, he told a New York audience that the logic behind the pipeline was “simply overwhelming” and said “you don't take 'no' for an answer.”
 
Keystone Pipeline, existing and proposed sections (Click to expand)Keystone Pipeline, existing and proposed sections (Click to expand)
x
Keystone Pipeline, existing and proposed sections (Click to expand)
Keystone Pipeline, existing and proposed sections (Click to expand)
Green groups say building the pipeline will speed up extraction of oil from the tar sands - a process that consumes more energy than regular drilling.
 
Canada has long promised to unveil rules on curbing greenhouse gas emissions from the oil sands. Obama said last July that Canada could be doing more to curb emissions, which some Canadian politicians took as a hint that he wanted to see the new rules before making a decision on Keystone XL.
 
Baird's comments made it clear this would not be the case.  Harper told the Global News television network last month that he was prepared to work with the United States on a joint regulatory regime to cut emissions and hoped this could be done “over the next couple of years”.
 
A poll by Nanos Research this week said support for the pipeline in Canada had slipped. It said 47.5 percent of Canadians had a positive or somewhat positive impression of the project, compared with 60.1 percent in April 2013.
 
Canadian-born rock star Neil Young this week played a series of concerts to raise money for an aboriginal group which is trying to prevent the expansion of the oil sands.
 
Baird, who is due to meet U.S. Secretary of State John Kerry on Friday, said that if Keystone XL were approved, less oil would have to be shipped by rail.
 
A train carrying crude derailed in eastern Canada earlier this week. On Dec. 30, an oil train hit a derailed car from a grain train in a fiery crash in North Dakota. Earlier in the year, 47 people died in Quebec when a train pulling oil tanker cars derailed and exploded in the small town of Lac-Megantic.

You May Like

Video Iran Nuclear Deal Becomes US Campaign Issue

Voters in three crucial battleground states - Florida, Ohio and Pennsylvania - overwhelmingly oppose nuclear deal with Iran More

With IS in Coalition Cross-Hairs, al-Qaida's Syria Affiliate Reemerges

Jabhat al-Nusra has rebounded, increasingly casting itself as a critical player in battle for Syria’s future More

Lessons Learned From Katrina, 10 Years Later

FEMA chief Craig Fugate says key changes include better preparation, improved coordination among state, federal assistance agencies More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Colombians Flee Venezuela as Border Crisis Escalatesi
X
August 27, 2015 2:08 AM
Hundreds of Colombians have fled Venezuela since last week, amid an escalating border crisis between the two countries. Last week, Venezuelan President Nicolas Maduro ordered the closure of a key border crossing after smugglers injured three Venezuelan soldiers and a civilian. The president also ordered the deportation of Colombians who are in Venezuela illegally. Zlatica Hoke reports.
Video

Video Colombians Flee Venezuela as Border Crisis Escalates

Hundreds of Colombians have fled Venezuela since last week, amid an escalating border crisis between the two countries. Last week, Venezuelan President Nicolas Maduro ordered the closure of a key border crossing after smugglers injured three Venezuelan soldiers and a civilian. The president also ordered the deportation of Colombians who are in Venezuela illegally. Zlatica Hoke reports.
Video

Video Is China's Economic Data Accurate?

Some investors say China's wild stock market gyrations have been made worse by worries about the reliability of that nation's economic data. And some critics say the reports can mislead investors by painting an unrealistically-strong picture of the economy. A key China scholar says Beijing is not fudging ((manipulating)) the numbers, but that the economy is evolving quickly from smoke-stack industries to services, and the ways of tracking new economic activity are falling behind the change. V
Video

Video Next to Iran, Climate at Forefront of Obama Agenda

President Barack Obama this week announced new initiatives aimed at making it easier for Americans to access renewable energy sources such as solar and wind. Obama is not slowing down when it comes to pushing through climate change measures, an issue he says is the greatest threat to the country’s national security. VOA correspondent Aru Pande has more from the White House.
Video

Video Shipping Containers Provide Experimental Housing

Housing prices around the San Francisco Bay area are out of reach for many people, so some young entrepreneurs, artists and tech industry workers are creating their own houses using converted shipping containers. But as VOA's Mike O’Sullivan reports from Oakland, the effort requires ingenuity and dealing with restrictive local laws.
Video

Video Arctic Draws International Competition for Oil

A new geopolitical “Great Game” is underway in earth’s northernmost region, the Arctic, where Russia has claimed a large area for resource development and President Barack Obama recently approved Shell Oil Company’s test-drilling project in an area under U.S. control. Greg Flakus reports.
Video

Video Philippine Maritime Police: Chinese Fishermen a Threat to Country’s Security

China and the Philippines both claim maritime rights in the South China Sea.  That includes the right to fish in those waters. Jason Strother reports on how the Philippines is catching Chinese nationals it says are illegal poachers. He has the story from Palawan province.
Video

Video Technique May Eliminate Drill-and-Fill Dental Care

Many people dread visiting dentists because they're afraid of drills. Now, however, a technology developed by a British firm promises to eliminate the need for mechanical cleaning of dental cavities by speeding a natural process of tooth repair. VOA’s George Putic reports.
Video

Video China's Spratly Island Building Said to Light Up the Night 'Like A City'

Southeast Asian countries claim China has illegally seized territory in the Spratly islands. It is especially a concern for a Philippine mayor who says Beijing is occupying parts of his municipality. Jason Strother reports from the capital of Palawan province, Puerto Princesa.
Video

Video Ages-old Ice Reveals Secrets of Climate Change

Ice caps don't just exist at the world's poles. There are also tropical ice caps, and the largest sits atop the Peruvian Andes - but it is melting, quickly, and may be gone within the next 20 years. George Putic reports scientists are now rushing to take samples to get at the valuable information about climate change locked in the ice.
Video

Video French Experiment in Integrating Roma Under Threat

Plans to destroy France’s oldest slum have sparked an outcry on the part of its Roma residents. As Lisa Bryant reports from the Paris suburb of La Courneuve, rights groups argue the community is a fledgling experiment on integrating Roma who are often outcasts in many parts of Europe.
Video

Video Kenyans Turn to Agriculture for Business

Each year Kenyan universities continue to churn out graduates for the job market despite the already existing high rate of unemployment among youth in the country. Some of these young men and women have realized that agriculture can be as rewarding as any other business or job, and they are resorting to agribusiness in large numbers as a way of tackling unemployment. Rael Ombuor reports for VOA.
Video

Video First Women Graduate Elite Army Ranger School

Two women are making history for the U.S. Army by proving they are among the toughest of the tough. VOA's Carla Babb reports from Fort Benning, Georgia as 94 men and those two women rise as graduates of the difficult Ranger school.

VOA Blogs

World Currencies

EUR
USD
0.8770
JPY
USD
119.68
GBP
USD
0.6414
CAD
USD
1.3265
INR
USD
66.194

Rates may not be current.