US delivers Keystone XL death blow

19 January 2012

The US’ rejection of the planned Keystone XL oil pipeline could prove a turning point in political and trade relations with Canada

Shaun Polczer, CALGARY: Doubts that the US would reject formally Canada’s Keystone XL pipeline have finally been put to rest. But troubling questions remain over the direction of bilateral energy policies in the wake of the US State Department’s decision to formally kill the project.

Although it was long expected – in November, Petroleum Economist reported Keystone was all but dead  – the shock waves of the 18 January decision to block the $7 billion pipeline from Alberta to Texas were immediately felt on both sides of the Canada/US border.

Canadian prime minister Stephen Harper said he was “profoundly disappointed” with the decision, although he did receive the courtesy of a telephone call from US President Barack Obama before the announcement.

Likewise, Obama said he was “disappointed” and blamed Republican opponents for imposing a deadline of 21 February to make a decision on the pipeline as part of...



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