The Obama administration's decision on the Keystone XL oil pipeline will not be made until at least June, a U.S. official said, which would delay the project for months and frustrate backers of Canada's oil sands.
"We're talking the beginning of summer at the earliest," said the source, who did not want to be identified due to the sensitive nature of the TransCanada Corp project, which has been pending for more than four and a half years. "It's not weeks until the final decision. It's months." ------ The administration may be delaying because the pipeline has become a symbol for both opponents and supporters of development of Canada's vast oil sands.
Environmentalists concerned about the carbon footprint of the oil sands have seen the decision as the most important President Barack Obama will make on climate change. Proponents say the $5.3 billion project would pour capital into the dismal economy, provide thousands of jobs, and hasten North American energy independence. ------ Robert Johnston, the director of energy at risk management firm the Eurasia Group, said he believes Keystone will ultimately be approved, even as Obama has pledged to move ahead with climate initiatives.