Is The Keystone Pipeline Project Dead?

President Barack Obama rejected the massive Keystone XL pipeline in early November 2015, ending seven years of political fighting between environmental advocates and those touting a better economic situation in the United States. Obama claimed the construction project would not serve the interests of America, while advocates for the pipeline believed it would alleviate America's dependence on oil resources.

Ending the Keystone XL pipeline sets up a potential political battle in the 2016 election; Republican presidential candidates support the project, while Democratic candidates do not. Obama and environmentalists may have a short-lived victory.

The proposal could come back up again, as proponents may sue the Obama administration and use the court system to seek approval for the pipeline. Republicans in Congress could pass legislation approving the project anyway; however, the legislative body needs a two-thirds majority to override any presidential veto. A third option occurs in early 2017, when a new president takes office. The Keystone XL pipeline may get a new life if that president is Republican and allows TransCanada to apply for permits again.

Senate Majority Leader Mitch McConnell, R-Ky., says the project could still see life in the future. TransCanada has already spent $2 billion in planning on the project, and the company may seek legal damages against the U.S. government for the unusually long rejection process. Most environmental impact studies for approval or rejection spend five times less in limbo.

The Senate passed legislation on the controversial project 62 to 36 in January 2015. Even with nine Democrats approving the bill, the vote was not enough to override any potential vetoes. Republicans in the House called the Senate's move a "common-sense bill" despite opposition from Democrats.

The Keystone XL pipeline represents an enormous digging project through the center of the United States. TransCanada, the company that proposed the underground pipeline, touted thousands of jobs during construction. Republicans felt as if the proposal had merit for job creation and lower gasoline prices. Democrats noted that TransCanada planned to export most of the oil transported from crude oil beds in Alberta, Canada, after its refinement in the southern United States.

Industry experts believe TransCanada overstates the economic and job-creation benefits of the Keystone XL pipeline, as only 50 permanent jobs would come from the project. Meanwhile, the Obama administration believes phasing out America's dependence on oil comes from other sources of energy, such as electrical, wind and solar. Environmentalists didn't want a massive digging project through the central United States to affect sensitive areas, even though TransCanada touts pipelines as a safer method to transport oil as compared to trains or massive ships.

The Keystone XL pipeline could come up in America's political discourse sometime in 2017. By then, perhaps Americans and Democrats may change their minds. The outcome of TransCanada's big dig may depend on the economic climate and the amount of oil resources available during the November 2016 election cycle.

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